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Is
The American Dream Endless Sprawl?
I
. Introductory Remarks
Oregon is where citizens first voted for term limits and then, after seeing the results, voted to allow physician assisted suicide. (It is only a matter of time before we authorize lawyer assisted suicide.) Oregon (or at least Western Oregon) is the place where there are attorneys who wear Birkenstocks and schools close if an inch of snow falls. In other words, we all understand that Oregon is not Minnesota. So I am not here to tell you to shed your parkas and air conditioning for gore-tex and sandals, to transform yourself into Oregonians. I am not here to admonish you to copy our methods of managing growth. Instead, consider me a friend from out of town, who has dropped by to chat about a little problem we both have. So while you warm up the hot dish and fold the marshmallows and carrots into the jello salad, let's talk about our common problem, sprawl. II. What America's Sprawl Says About America's Values America is an urban nation. Three-fourths of our people live in metropolitan areas, like the Twin Cities. And these urban areas are sprawling. Between 1960 and 1990, the population of America's 213 urban areas increased by 47% but the urbanized land area increased by 107%. In Minneapolis-St. Paul the metropolitan area's population grew by 51% during the same period while its land area grew by 89%. Between 1960 and 1990 Chicago's metropolitan population grew by 14% but its land area grew by 66%. In Kansas City, the metro population grew by 29% while the land area grew by 110%. And alas, in Cleveland, the metro population fell a few percentage points, while the land area grew by 20%. Ever-expanding metropolitan areas are consuming huge amounts of farmland, forestlands and natural resources. Between 1982 and 1992, 8.3 million acres (net) of farm and range lands, 5.4 million acres (net) of forests and 160,000 acres of wetlands and deepwater habitats were developed. And while we were wasting lands and resources on the urban edge we were abandoning people, places and private investments at the center, in the hearts of our cities and in our older suburbs. Between 1950 and 1990 the population of the City of Detroit declined by more than 800,000; more than 50,000 housing units were demolished. Low-density urban development is very expensive to provide with roads, sewers, water, and services like police and fire protection, a consequence felt by the taxpayers, who, judging from the election results, are not feeling particularly generous right now. What do these patterns say about our values as a nation? First, our growth pattern expresses our wastefulness. We are throwing away neighborhoods and downtowns at the centers of our urban regions; communities that were once vital, desirable places to live. Meanwhile, at the urban edge, we are destroying the productive lands that provide us with food and fiber. And we are wasting taxpayer's money to provide the low-density suburban sprawl with services and infrastructure. However frugal we may be in our private habits, as an urban nation, we are wastrels. Second, our metropolitan development patterns demonstrate an unhealthy overemphasis on individualism and personal consumption at the expense of community and civic responsibility. Does this sound like an overstatement? If so, consider how our postwar suburban development has omitted sidewalks and parks and neighborhood stores, the places where people interact and form a community. Instead we have emphasized the private domain; big back yards, three-car garages, cul-de-sac subdivisions. In many suburbs, if our neighbor has an automatic garage door opener, we may never meet her. The same separation of individuals from the community is reflected on a larger scale too. Today, there are about seven times as many Americans living in private communities, usually gated, as there are Minnesotans. The way we have sprawled expresses a profound contempt for the idea of community. Third, we have turned our back on our origins, on nature. Instead of tending the garden god gave us, we are destroying it. We may not embrace waste, contempt for community and disrespect for nature as individuals, but that is how we live as urban Americans. I want to be very clear that these criticisms are not directed at the suburban dream. The core or the American suburban dream were green spaces, decent housing, good schools and public safety. These are not bad things, they are good things. But Smart Growth means these things - good housing and schools, public safety and green spaces - are to be shared by everyone in our metropolitan areas and not reserved just for the minority who live on the suburban edge. There are better, smarter, ways to grow. But those better ways require planning, and effective planning requires regulation of the use and development of land. There are many arguments against the planning and land regulation which is part of Smart Growth. Let's consider the best known among them; that it violates Americans Constitutionally protected property rights, that planning amounts to social engineering and interference with the free market, that local control is more democratic, that urban growth boundaries and land use regulations drive up home prices and hurt the economy. III. The Arguments Against Planning for Growth A.
Property Rights The problem today is that property rights arguments have been carried to an extreme that fails to recognize that the way we use our property affects other people's property. And what better example of that than the continuing controversy over hog farming operations? The way one property owner uses his or her land can have a big impact on the use and enjoyment of other people's land. Consider the same issue from the perspective of farmers. The value of their property, used for farming, is diminished when urban neighbors make it unwise for them to use chemicals or object to the noise of midnight harvesting. It was a lot easier, and a lot more practical, to be a property rights purist when the next neighbor was five miles away than when they are 500 feet or 50 feet away. A philosophy from the time of covered wagons and buffalo migrations is no longer suited to a nation whose population will pass one-third of a billion early in the next century. We also need to recognize that land values can also be increased by regulations that restrict development. What do you think would happen to the property values in a neighborhood if a regulation prohibiting fast food restaurants or factories was repealed? Planning helps to reconcile competing property rights in ways that can protect everyoneís land values while balancing individual and community interests. A community requires some sacrifice. A good community makes that sacrifice worthwhile. B.
"Social Engineering" and Interference with the "Free Market" Here is a partial list of current government policies which constitute our current social engineering and market interference programs in America:
Let's
face it. We have social engineering and a lot of interference with the
free market at all levels of government and to serve a wide variety of
purposes. Unless opponents of Smart Growth are willing to say that all
existing government incentives and disincentives are unacceptable because
they are "social engineering," or improper interference with
a free market, then they are hypocritical to attack proposed new regulations
incentives and disincentives as "social engineering" or market
interference. But what is the reality? The reality is that many Americans who express support for "local control" cannot even name the city or town councilor or county commissioner who represents them. The reality is that the highest number of votes cast is for the Presidency and the lowest is for local officials. As for town hall meetings, what percentage of Minnesotans do you think have ever attended a local government meeting or hearing on a land use planning matter? And finally, exactly what does "local control" mean when so many decisions affecting a community are made by entities they do not control? When a bypass is built around a metropolitan area and it reshapes commercial development patterns and commutes, do the affected cities have "local control" over those changes? When one city gets the benefit of a new regional mall or new plant and gets the jobs and tax revenues, do the other communities have "local control" over the effects these changes have on their own community? When Wal-Mart builds a new megastore just outside the city limits of a town, and guts the historic mainstreet, does that city have "local control" over Wal-Mart's effects on their downtown? At the metropolitan level, the phrase "local control" is a silly fiction. As the nighttime view from space reveals, our metropolitan regions are the fundamental unit of economic and social organization in the United States. They operate as organic unities, where residents live in one community, shop in another and work in yet another. Yet they are governed by an insane patchwork of local governments designed in and for the era of the buggy whip, not the silicon chip. This fragmentation of authority means that there is no one in charge, and no one is responsible for these metropolitan areas. "Local control" certainly does not mean democracy when there is no democratic institution with the capacity and responsibility for dealing with our metropolitan regions, the fundamental unit of social organization. If Los Angelenos in 1950 whether had been show how their region would appear and function in 2000, do you think they would have chosen that future if they had been allowed to vote on it? Only by creating regional, democratic, institutions with real power to plan a common future, can citizens of our metropolitan areas exercise choice about their common futures. But when, God forbid, someone dares to even suggest that it is time to reconsider our structures of governance, such ideas are immediately classified as outlandish, beyond the pale. Yes, the Soviet Union can collapse, South Africa can integrate and elect Nelson Mandela President and China can permit free enterprise, but Americans can't possibly dream of modifying local governments!!! If they were good enough for Martin VanBuren then by golly they are good enough for us today! To
which I say: "Bunk!" How would the voters in any city, township
or county in Minnesota respond to the question; "If you had to choose
between keeping all of the existing structures of local government or
protecting the quality of life from sprawl, which would you choose?"
"Local control" sounds good in theory but we have to judge the
system by its results. It is the system of unbalanced, hyper-balkanized
ìlocal controlî and the absence of effective planning that
has given America sprawl and urban decay. Local control is what produced
Southern California and New Jersey and Detroit. Smart Growth forces us
to recognize that we have outgrown "local control." The fact is that while home prices in the Portland area are notably higher than in the Twin Cities, we don't have unusually high homes prices compared to other places in the West. The statistics from NAHB's own website show the median price for a Portland home in late 1998 was $155,000, compared to $150,000 in Denver, $157,000 in Salt Lake City, $186,000 in Seattle, $193,000 in San Diego and $350,000 in San Francisco. If
sprawl and unlimited land supplies assured affordable housing, why are
home prices in Los Angeles $24,000 more than in the Portland region? Why
are homes in sprawling Orange County $80,000 more expensive than in the
Portland metro region? The median price in supposedly more affordable San Jose is four times the median household income, compared to Portland where the ratio of price to income is 3.2-to-1. NAHB ranks Portland 16 places below Salt Lake City in affordability, even though Salt Lake Cityís income is slightly lower than Portlandís and its home prices are slightly higher. Incidentally, Portland has moved up six places in the NAHB affordability rankings in the last two years or so--without adding a single acre to its urban growth boundary. In February the Oregon Housing Cost Study was released. The research was sponsored by several groups with an interest in affordable housing including the Oregon Building Industry Association, Marion-Polk Building Industry Association, Oregon Association of Realtors and various units of government. The report noted that according to the NAHB's "Housing Opportunity Index" only 35% of the houses for sale were affordable by the median household income in the Portland area. But the report noted: "Despite the poor HOI, a separate analysis conducted for this study indicated that in 1998, households classified as having median incomes (as defined by HUD) could still afford the median house price in Portland, Salem, Eugene-Springfield, and Medford." (pages iii, 37) Three case studies, included as part of the study, examined the costs of building a house in the early 1990s with the cost of building the same house in 1997, to quantify the sources of the big increase in prices. The case studies suggested that the price of raw land remains a modest part of final sale price; 14% in 1997 in the Portland case study, and 3% in 1997 in the Salem and Eugene-Springfield case study areas. In the Portland area, where the price of land rose the most, the total increase in land costs between 1993 and 1997 was $15,704, less than the $25,317 increase in hard and soft land costs (e.g. installing water and sewer lines, utilities, system development charges, architecture fees.) Finally, if you think urban growth boundaries cause rising home prices, do a little thought-experiment. Imagine a long line of people in the Portland area, all waiting in line to pay developers $155,000 for a new house. Then imagine that the urban growth boundary is greatly expanded, dropping the developers' land costs. What do you think will happen? Will they automatically lower prices because their costs decreased - even when there is a long line of people willing to pay $155,000? Rising home prices are and should be a cause for concern. Urban Growth Boundaries are not the source of the problem, and as part of a balanced system of Smart Growth efforts, they can be part of the solution. E.
Planning Hurts The Economy Nonetheless, the repeal measure was decisively defeated by the voters. Starting a few years after repeal was defeated at the polls, Oregon's economy began to blossom and then boom. On Monday of this week, I read that in 1997 Oregon lead the nation in job growth in the manufacturing sector. In fact we have had so much growth lately, that anti-growth advocates blame land use planning for facilitating and accelerating the economic boom. But you don't have to take it from me that planning and urban growth boundaries donít hurt your economy or cripple development. Listen to the Real Estate Research Corporation. Each year ERE/Yarmouth which manages a real estate portfolio worth more than $10 billion, commissions the Real Estate Research Corporation to produce a report entitled Emerging Trends in Real Estate, which is based on interviews with hundreds of real estate professionals. Here are some extracts from the 1998 edition of Emerging Trends in Real Estate:
IV. Smart Growth, Not Boundless Sprawl, Is The New American Dream Having
examined the depressing aspects of American sprawl and responded to the
usual criticisms to making changes to our pattern of development, we need
to consider the alternative, Smart Growth. What exactly is Smart Growth? I would define Smart Growth first in terms of a good neighborhood. And I define a good neighborhood as one that has these things:
Smart
Growth at the Regional Level In the Twin-Cities region, between 1982 and 1996, your population increased by 28%, you added 400 line miles of freeway (a 34% increase) but the vehicle miles traveled on your freeways increased by 103%! As Met Council Chairman Ted Mondale said earlier today, to build enough freeways to avoid congestion would cost you $12 billion and require you to bulldoze the sculpture garden next to the Capitol. Increasing
transportation options By the way, you can expect a continuing barrage of detailed criticism of the inefficiencies and subsidies for light rail that will get lots of play in the press. Don't ignore it, because it may help you to improve your projects, but remember that very few highways, especially those built through farmland or poor neighborhoods ever had to withstand that level of scrutiny. A
regional infrastructure investment strategy A regional strategy for affordable housing, to make sure that people can find housing in the same community where they work. This means breaking down zoning barriers that stop people from moving to opportunity. It means making sure local governments are all working hard at attracting the resources needed for affordable housing and promoting local land trusts and assisting nonprofit housing developers. A regional strategy to promote economic and social vitality in the poorest parts of the region: There are too many examples in cities big and small in America of slums and barrios and ghettos. You can see this hollowing out process now in places as small as DesMoines. Thanks to the work of people like Minnesota's own Myron Orfield and john powell, we are learning that the concentration of poverty is powerfully aided by the structure and powers of local and state government. We are now understand how devastating this pattern or urban decay is not only to the individuals, but also to the property owners and the neighborhoods. Professor Manuel Pastor of the University of California has provided the best research to date that regions that are highly polarized between rich and poor simply do not compete as well as other metropolitan regions where the burdens and benefits of growth are more evenly distributed. Your region here is already the best known example in the nation of an effort to pool local tax bases so that the benefits and burdens of growth are shared more equally so that older poorer parts of a region share in the revenues generated by growth. Smart
Growth At the State Level
What Smart
Growth Requires of Individuals The first step is to publicly admit, as this Conference is doing, that boundless sprawl is not the American dream and that our pattern of growth is unworthy of a great nation and a great state like Minnesota. The second step is to stop telling each other that sprawl is inevitable and that Growth Smart is politically impossible. If Atlanta can create a powerful new regional agency to govern transportation investments, if the citizens and business community in Utah can embark about a regional planning effort and if the citizens of Southern California can vote to adopt urban growth boundaries, then Smart Growth is possible anywhere. (By the way, do you know which county in Southern California voted in urban growth boundaries? Ventura County.) Third and foremost, we need to expect more of average citizens and nongovernmental organizations. They can, and should be asked to do a lot more than stick colored dots onto butcher paper or react to slides. I have watched a struggling cattle rancher explain the intricacies of the local land use appeal process, to his amazed neighbors. I watched a school teacher assemble information on the relationship between lot size and forest management that ultimately reshaped state policy governing 9 million acres of forestland. On Sunday I watched an activist display and manipulate data his neighborhood collected through volunteer efforts, using a IS program he taught himself. Officials
need to respect and promote the contributions these citizen experts can
provide, even when they disagree with them, (which ought to be easier
for Minnesotans to do than say, New Yorkers.) As a friend of a friend
once said, "Activists may be hell to live with, but they make great
ancestors." My organization's founder, Governor Tom McCall, said,
"Heroes are not statues framed against a red sky, they are people
who say: 'This is my community and its my responsibility to make it better.'" This
Conference and the impressively broad Minnesota Smart Growth Network that
has formed, demonstrates your determination to redefine the American dream
so that it is not represented by endless sprawl. Your new dream is Smart
Growth, a new way of growing that assures livable communities and lovable
landscapes. This new way of growing will keep Minnesota a place your children,
and your children's children, will be proud to call home. ABOUT ROBERT
LIBERTY
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1000 Friends of Oregon | 534 SW Third Ave., Suite 300, Portland, OR 97204 503-497-1000 | fax: 503-223-0073 | info@friends.org © 2006, 1000 Friends of Oregon, All Rights Reserved |