develop costs revenue - Smart Growth America€¦ · • Millennials especially are trending away from traditional suburbs – 47% would prefer to live in a city or a suburb with

6/24/13

1

Planning for Economic and Fiscal Health

Bill Fulton Vice President, Smart Growth America

Former Mayor, Ventura, CA

The way we design and build our communities has enormous

consequences for our "fiscal and economic health.

FISCAL HEALTH How communities "develop affects "

costs and revenue.

FISCAL HEALTH

Municipal budgets

•  Municipal budgets are feeling pressure •  State and federal funds are disappearing •  Costs are escalating •  Tax bases have shrunk

FISCAL HEALTH

Municipal budgets

•  A large portion of municipal budgets go to infrastructure and services. – building and maintaining roads, bridges, sewer

and water lines, etc – providing fire and police services, trash

removal, paratransit, etc"

FISCAL HEALTH

6/24/13

2

Municipal budgets

•  Costs are not just infrastructure related but also operations and maintenance."

•  Burden usually falls on taxpayers.

FISCAL HEALTH

Municipal budgets

•  You must spend on these things."

•  You need to ensure that you are spending those funds in the most effective and efficient manner."

•  Budgets are not just financial documents – they reveal are goals and what we value.

FISCAL HEALTH

Development affects costs

• When it comes to infrastructure costs… – Urban development is the best deal. – Low-density suburban development rarely pays

for itself.

FISCAL HEALTH

Development affects costs FISCAL HEALTH

Building infrastructure to serve new development on the fringe can cost the city up to three times more per acre than urban infill development.


•  Compact development offers efficiencies in regards to services as well. – Police and fire departments have less area to

cover. – Fewer miles of road to cover for snow removal

and trash pickup.

Case Study: Charlotte, NC Fire Stations


6/24/13

3


$-‐

$100

$200

$300

$400

$500

$600

$700

$800

Sta9on 2

Sta9on 15

Sta9on 14

Sta9on 24

Sta9on 22

Sta9on 19

Sta9on 9

Sta9on 31

Sta9on 31 w/ Shelley

Greater Connectivity çè Less Connectivity

Annualized Per-‐Capita Life Cycle Costs (based on 2-‐apparatus sta9on)

Greater Connectivity çè Less Connectivity

Households per Fire Sta9on

0

5,000

10,000

15,000

20,000

25,000

30,000

Sta9on 2 Sta9on 15

Sta9on 14

Sta9on 24

Sta9on 22

Sta9on 19

Sta9on 9 Sta9on 31

Sta9on 31 w/ Shelley

Case study

Development affects costs

•  Rural, dead-end road

•  Serves a subdivision of 5-acre lots

•  Half of cost is assessed to property owners, other half is paid for by city

FISCAL HEALTH

Payback: 37 years • Based on taxes being paid by the property owners

• Not including additional maintenance and potential reconstruction

(Source: www.strongtowns.org)

Development affects revenue FISCAL HEALTH

• When it comes to revenue… – Urban development is the best deal. – Low-density suburban development generates

much less per acre revenue.


•  The revenue side of things is affected as well.

Multifamily housing in near an area’s center can generate nine times more revenue per acre than traditional large-lot, single-family housing on the fringe.


$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Wal-‐Mart Single-‐Family Residen9al

Crabtree Valley Mall 3-‐4 Story Residen9al 3 Story Office 6-‐Story Mixed Use

Municipal property tax yield (per acre) 2011 Raleigh, NC


Denser development can carry an en9re city financially

6/24/13

4



Can your community continue to "

subsidize inefficiencies of"development patterns, "while not reaping the "

potential reward?

FISCAL HEALTH

DEMOGRAPHIC CHANGES

Your community is changing "

and preferences and the "

market are following.

DEMOGRAPHIC CHANGES

Your community is changing

•  There are two demographic changes that are driving the market and must drive your decision making. – The rise of the Millenials. – The aging of the Baby Boomers.

DEMOGRAPHIC CHANGES

6/24/13

5

•  Millenials make up 30 percent of the population.

•  The number of seniors is growing.

DEMOGRAPHIC CHANGES

Your community is changing DEMOGRAPHIC CHANGES

52%

67%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

1960 2000 2025

households with children

households without children

Households with and without children, 1960-2025

Preferences: Housing •  Millennials especially are trending away from

traditional suburbs – 47% would prefer to live in a city or a suburb

with a mix of houses, shops, and businesses. – 40% would prefer a rural or a small town. – 12% say they would prefer a suburban

neighborhood with houses only.

•  Boomers want to age in their community

DEMOGRAPHIC CHANGES

Preferences: Transportation •  Millenials are driving less

– From 2001 to 2009, the average annual number of vehicle-miles traveled by people ages 16-34 dropped 23 percent. (source: National Household Travel Survey)

– 26 percent lacked a driver's license in 2010, up 5 percentage points from 2000 (source: Federal Highway Administration)

DEMOGRAPHIC CHANGES

Preferences: Transportation •  Baby boomers turning in their keys

– Using local buses and trains more (source: National Household Travel Survey)

– Bike trips increased 64 percent between 2001 and 2009. (AARP)

DEMOGRAPHIC CHANGES

Preferences

•  Americans’ ideal communities have a mix of houses, places to walk, and amenities within an easy walk or close drive. – 77% of Americans want pedestrian-friendly

features. – 88% place more value on the quality of the "

neighborhood than the size of the home.

DEMOGRAPHIC CHANGES

Source: Consumer survey conducted for the National Association of Realtors

6/24/13

6

Preferences DEMOGRAPHIC CHANGES

The market: Housing DEMOGRAPHIC CHANGES

The market: Transportation DEMOGRAPHIC CHANGES

How can your community "

better meet the needs of "

millennials and seniors? "

DEMOGRAPHIC CHANGES

ECONOMIC HEALTH The rise of the millennials "and the global economy

are driving the economy.

ECONOMIC HEALTH

6/24/13

7

The labor force

ECONOMIC HEALTH

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

Greatest Genera9on Baby Boomers Gen X Millenials

POPULATION

LABOR FORCE

The labor force

•  Millenials choose where to live before finding a job. – 64% looked for a job after they chose the city

where to live. (Source: U.S. Census)

•  How people want to work is changing and where they want to work is changing.

ECONOMIC HEALTH

The labor force ECONOMIC HEALTH

From office space….

The labor force ECONOMIC HEALTH

….to office settings.

Research Triangle Park, Raleigh, NC

Kendall Square, Cambridge, MA

Businesses respond to "changing preferences

•  Across the country corporations are responding to employee preferences and moving to the talent.

•  They are choosing to relocate from suburban offices to downtown locations.

ECONOMIC HEALTH

Businesses respond to "changing preferences

ECONOMIC HEALTH

Zappos, Las Vegas, NV

Hillshire, Chicago, IL

6/24/13

8

What does your community "need to do to grow a "

healthy economy?

ECONOMIC HEALTH

The big questions

•  Can your community continue to subsidize inefficiencies of development patterns and not reap the potential reward?

•  How can your community better meet the needs of millennials and seniors?

•  What does your community need to do to grow a healthy economy?

PLACE MATTERS How your community "

develops determines its "

fiscal and economic future.

Solutions for an"

economically bright future.

Strategies for economic health

•  Create economic development strategies that work.

•  Invest in place.

STRATEGIES

6/24/13

9


1.  Leverage existing assets to support new goals.

2.  Garner citizen input, and cultivate support for the community’s vision.

3.  Invest in and commit to planning efforts. 4.  Foster leadership.

STRATEGIES


5.  Create and leverage incentives and grants to support community goals.

6.  Make it easy for developers and "businesses to invest in the community.

7.  Use public-private partnerships strategically.

STRATEGIES

1. Leverage existing assets to support new goals.

•  Build on what you have. – Natural resources – Higher education – Existing industry – Historic downtown

STRATEGIES

2. Garner citizen input, and cultivate support for the community’s vision.

•  Collects the community’s desires and goals •  Generates support for the plans •  Helps with implementation and follow-

through •  Provides consistency through election

cycles and staff turnover

STRATEGIES

3. Invest in and commit to planning efforts.

•  Planning is important •  Coordinate and integrate the various plans

STRATEGIES

-  comprehensive plans, area master plans, economic development plans, etc.

4. Foster leadership.

•  Leadership can come from a wide range of people – Elected leaders – Civic groups – Businesses

STRATEGIES

6/24/13

10

5. Create and leverage incentives and grants to support community goals.

•  Use federal and state grants and incentives. •  Create your own incentives.

– Tax deferments – Matching grants – Low-interest loans

STRATEGIES

6. Make it easy for developers and businesses to invest in the community.

•  How to help developers – Create clear rules (nashville variances) – Streamline permitting – Provide technical assistance and information

STRATEGIES

6. Make it easy for developers and "businesses to invest in the community.

•  Support and leverage local businesses – Up to 80 percent of job growth is from existing

businesses. – Workplace strategies should focus on existing

concentrations of workplaces and targeted industries should relate to a city’s existing assets.

STRATEGIES

7. Use public-private partnerships strategically.

•  Helps to raise funds. •  Gets local businesses involved in the

community’s redevelopment.

STRATEGIES

Case Studies

STRATEGIES

Mt. Morris, New York STRATEGIES

6/24/13

11

Mt. Morris, New York

•  Formerly a bustling commercial agricultural and milling town

•  began a long economic decline as manufacturing jobs left the area

STRATEGIES


•  In 2003 the Livingston County Development Group (LCDG) and the village leadership developed a downtown program – conducted an inventory of downtown buildings – started to provide rent subsidies – began advertising Mount Morris to developers

•  In 2007 a developer from New York City purchased 20 vacant buildings in the village

STRATEGIES


•  To spur redevelopment, the village – applied for state Main Street grants –  instituted a tax abatement program – created a fund to support renovation

•  The village supports small businesses by providing: – classroom instruction – assistance with locating downtown – capital financing

STRATEGIES


•  The village has leveraged assets – SUNY Geneseo – Letchworth State

Park

STRATEGIES


•  Outcomes –  replaced vacant storefronts with several small

businesses, including restaurants and antique dealers

– has led to investments in neighboring downtowns

STRATEGIES

Roanoke, Virginia

STRATEGIES

6/24/13

12

Roanoke, Virginia

•  Historically an industrial town -- prior to the 1980s Roanoke’s economy was largely driven by railroads

•  Sits along the Blue Ridge Parkway and the Appalachian Trail

STRATEGIES

Roanoke, Virginia

•  Created Vision 2001-2020 – a Comprehensive Plan –  Involved a wide range of stakeholders – Recognized that

•  Roanoke’s quality of life and economic development are integrally related.

•  Roanoke is a city built using quality design principles.

•  Roanoke is the heart of the region.

STRATEGIES

Roanoke, Virginia

•  Following the comprehensive plan, the City undertook several economic development initiatives –  redeveloping downtown – developing the outdoors as an economic driver – creating of a biomedical research facility and

technology park

STRATEGIES

Roanoke, Virginia

•  Downtown redevelopment – Worked closely with developers, playing a

facilitative role to developers and businesses. – Recruited Richmond-based developers, as well as

a local developer who was interested in working in the downtown.

– Encouraged businesses and developers to use federal and state resources and the City’s Economic Development Authority created several incentives to help encourage development.

STRATEGIES

Roanoke, Virginia

•  Developing the outdoors as an economic driver – Leveraged environmental assets – Branded Roanoke as “a premier spot for

outdoor recreation” – Used the outdoors as a selling point for

potential employers, especially outdoors-oriented buisnesses

STRATEGIES

Roanoke, Virginia

•  Worked to improve its natural assets

STRATEGIES

-  Invested in Greenways

-  Created bikeways -  Used conservation

easements -  Increased its tree

canopy

6/24/13

13

Roanoke, Virginia

•  Outcomes – One of the country’s top outdoor destinations – Selected to host the 2013 Bike Virginia Tour – Named

•  an All-America City five times by the National Civic League

•  one of “America’s Most Livable Communities” by Partners for Livable Communities

•  Number 2 in Kiplinger’s Best Cities Reader’s Poll award in 2010

•  among best places to open a restaurant per the Restaurant Growth Index compiled by Nielsen Claritas in 2010

STRATEGIES

Paducah, Kentucky STRATEGIES

Paducah, Kentucky

•  Began as an agricultural and trade center – first capitalizing on its waterways and later rail transportation.

•  In the early half of the 20th century Paducah began to have a more industrial-based economy

STRATEGIES

Paducah, Kentucky

•  In 1988 the mayor and several community leaders launched an effort to reinvest in downtown

•  70 percent vacancy rate in the downtown and high crime

STRATEGIES

Paducah, Kentucky

•  Paducah Renaissance Alliance (PRA), a National Trust for Historic Preservation Main Street program, launched in 1989

•  The City and the Main Street program started supporting infrastructure improvements to downtown

STRATEGIES

Paducah, Kentucky

•  The city: – fixed the curbs, gutters, sidewalks, and streets – created a façade loan program funded by the

City –  focused on code enforcement – created a mixed-use strategy for the downtown

area to attract offices, residents, and restaurants to the downtown area

STRATEGIES

6/24/13

14

Paducah, Kentucky

•  Invested in and leveraged cultural institutions – Quilt Museum – Cultural center – School for the "

Arts at Community "College

STRATEGIES

Paducah, Kentucky

•  LowerTown / Artist Relocation Program – bought 55 vacant or foreclosed buildings and

homes in a very depressed downtown neighborhood

– sold to artists at little cost (as low as $1) – public-private relationship between Paducah

Bank and the City allowed for low-interest loans

STRATEGIES

Paducah, Kentucky

•  LowerTown / Artist Relocation Program –  the City spent about $3

million, while the artists invested approximately $35 milli

–  today, over 100 artists live, work, and play in the neighborhood.

STRATEGIES

Paducah, Kentucky

•  Fountain Avenue –  in 2007 the City purchased several homes and

vacant lots in the depressed neighborhood –  The City is selling them to willing buyers – not just

artists – Created a plan and incentives package

•  a loan forgiveness program for home construction and renovation

•  used Home Investment Partnership Program (HOME) grants to help fund the construction and rehabilitation of homes for moderate-income families.

STRATEGIES

Paducah, Kentucky

•  Outcomes –  234 new businesses and 1,000 new jobs –  reduced the downtown vacancy rate from 70

percent to 14 percent –  over $100 million have been invested in downtown

(about half came from public investment and half came from private investment)

–  over 4,000 employees are working and living in downtown and the adjacent LowerTown Arts District

STRATEGIES

Where from here?

Documents

develop costs revenue - Smart Growth America€¦ · • Millennials especially are trending away from traditional suburbs – 47% would prefer to live in a city or a suburb with