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Presented at the 2014 Brand+Aid Marketing and Social Media Conference.
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Black Hats to White Hats: Changing the Brand Image of Parks and Recreation through Economics
John L. CromptonUniversity Distinguished Professor and Regents Professor
Presidential Professor for Teaching ExcellenceTexas A&M University
Brand + Aid: Marketing and Social Media ConferenceJanuary 2014
Present Position
Recreation and park provision is perceived to be a relatively discretionary, non-essential government service. It is nice to have if it can be afforded.
Reposition
Position recreation and park services so that they are perceived to be a central contribution to alleviating the major problems in a community identified by tax payers and decision makers.
Positioning Implications
Positioning is a relative rather than an absolute concept
“We are not identified with major problems which confront our total American Society [which is a] deep concern and disappointment…[The field should] focus park and recreation services on the great social problems of our time and develop programs designed to contribute to the amelioration of those problems.”
Gray and Greben, 1974
The “big idea” associated with repositioning is that funds are invested in solutions to a community’s most pressing problems. The term “investing” suggests a positive, forward-looking agenda with a return on the investments. Elected officials usually have no mandate to fund programs; their mandate is to invest resources into solutions.
Positioning Implications
Positioning is a relative rather than an absolute concept
Legislators’ political platforms represent residents’ concerns
Positioning Implications
Positioning is a relative rather than an absolute concept
Legislators’ political platforms represent residents’ concerns
The challenge is not financial, it is administrative
Politically Important Issues
Economic development (jobs, enhanced tax base, redevelopment)
Health (obesity) Safety (youth crime) Quality of life Education (after-school programs)
Benefits Related to Economic Prosperity
Attracting tourists Attracting businesses Reducing taxes Attracting retirees Enhancing real estate values Stimulation of equipment sales
Benefits Related to Economic Prosperity
Attracting tourists
Business Travel
Recreation and Park Attractions in
a Jurisdiction
Tourism
Opportunities for Local Residents
Visiting Friends and Relatives –
Personal Business
Conference and Convention
TravelPleasure Travel –
Sphere of Interest
Segments of Travel and their Inter-relationship with Parks and Recreation
Recreation and park attractions NOT operated by a public
agency
POPULATIONAbility to Travel
Interest in Travel
TRANSPORTATIONINFORMATION AND
PROMOTION
ATTRACTIONS
Arts Theaters, Art Galleries, Museums, Performing Groups, Music Concerts
Heritage Places Ethnic Cultural Places, Shrines/Churches, Historical Sites and Structures, Educational Instructions, Industry Factory Tours
Parks National, State, Regional, Local, Beaches, Theme Parks
Recreation Events and Festivals, Aquatic and Coastal Areas, Outdoor recreations (e.g. camping, fishing, hunting), golf, tennis, skiing, sailing, softball), Fitness and Wellness Centers
Arenas College Sports, Professional Franchises, Concerts and Exhibitions
Other Gambling Places, Cruise Ships
A Taxonomy of Tourist Attractions
POPULATIONAbility to Travel
Interest in Travel
TRANSPORTATIONINFORMATION AND
PROMOTION
ATTRACTIONS
Tourism is a public/non-profit sector driven business.
Context
1810 players on 133 teams participated in the tournament. All were from out-of-town. Because it was an elimination tournament, the length of time that the teams stayed in the community varied from 4 to 7 nights. 697 players’ parents were interviewed.
Financial Data
Income: Entry fees $300 x 133 $39,900
Tournament costs and staff time $119,617
Net loss($79,717)
A comparison of the Financial and Economic Returns to a City from an Amateur Softball Association Girls 18 & Under Class A National Softball Championship Tournament
Economic Data
Total expenditures in the local area by
the 1810 players and their family/friends$2,039,000
Economic impact on sales $3,731,000
Economic impact on income$1,162,000
Return on investment
For each dollar invested, residents’ income increased by $14.58 (1,162,000/79,717). Facility cost $12 million; payback period to residents is 10 tournaments of this size.
A comparison of the Financial and Economic Returns to a City from an Amateur Softball Association Girls 18 & Under Class A National Softball Championship Tournament
The Conceptual Rationale For Undertaking Economic Impact Studies
FINISH START
For community residents who
pay taxes
Community residents & visitors pay
taxes
To a city council
Which uses them to subsidize
development of recreation
programs and facilities
That attract out-of-town visitors
Creating income and jobs in the
community
Who spend money in the local economy
Inflow of Revenues
Outflow of Funds
Parks attract non-resident visitors to the area
These visitors spend money in the local area
This new money creates income and jobs for area residents
State Parks as “Economic Engines”
Mustang Island State Park (145,711 visitor days)
Salaries and operating expenses 809,500
Revenue 632,000
Net Loss 177,500
Example of a Park as an Economic Engine
New money into the county:
$809,500 + $698,500 $1,508,000 Impact on Sales (1.71):
$1,384,000 + $1,190,000 $2,574,000 Impact on Personal Income
$753,000 + $631,000$1,384,000
Impact on Employment 25 jobs + 21 46 jobs
Average pay for each job is $30,088
So:
Every $1 of net state funds invested in Mustang Island State Park yields $7.83 in income for Nueces County residents. That is: $1,384,000 / $177,500
The cost of the state of each job created is $3,850 i.e. $177,500 / 46
Analogous to retail stores Investment in services and amenities
More Visitors
More Per Capita Expenditures
More Jobs and Income to Local Residents
Economic Success Depends on What Happens Inside a Facility
Cost to the council of staging the festivalIncome to the Council from admission fees,
Vendor concessions, etc.Net loss to the city
Income accruing to city residents outsidethe festival gates from visitor spendingin the community
Net gain in income to community residents:
Return on investment to residents on their $400,000 investment
Economic Return to a Community From a Festival
$400,000$170,000
$230,000
$343,000
$113,000
28%
Benefits Related to Economic Prosperity
Attracting tourists Attracting businesses
Conventional wisdom is that development is the “highest and best use” of vacant land for increasing municipal revenues.
Developers claim their projects “pay for themselves and then some” BUT
Conventional wisdom is that development is the “highest and best use” of vacant land for increasing municipal revenues.
Developers claim their projects “pay for themselves and then some” BUT
If a private company had a business plan that looked only at revenues and ignored costs, it would be quickly out of business. Why should the public tolerate such one-sided accounting by local governments?
Fiscal impact analyses frequently demonstrate that the public costs associated with new residential development exceed the public revenues that accrue from it. BECAUSE
The people who reside in developments require services. IN CONTRAST
Fiscal impact analyses frequently demonstrate that the public costs associated with new residential development exceed the public revenues that accrue from it. BECAUSE
The people who reside in developments require services. IN CONTRAST
Natural parks and open space require few public services – no roads, no schools, no sewage, no solid waste disposal, no water, and minimal fire and police protection.
1. Allocate total municipal expenditures into service categories and assign them to selected land use categories (Residential, Commercial/Industrial, Farm/Forestry/Open Space)
1. Allocate total municipal expenditures into service categories and assign them to selected land use categories (Residential, Commercial/Industrial, Farm/Forestry/Open Space)
2. Categorize municipal revenues by sources and allocate them to the selected land use categories
1. Allocate total municipal expenditures into service categories and assign them to selected land use categories (Residential, Commercial/Industrial, Farm/Forestry/Open Space)
2. Categorize municipal revenues by sources and allocate them to the selected land use categories
3. Compare revenues to expenditures for each land use category
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00Commercia
l & Industrial
$0.27
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00Commercia
l & Industrial
Farm/Forest Open Space
$0.27$0.35
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00Commercia
l & Industrial
Farm/Forest Open Space
Residential
$0.27$0.35
$1.16
Write down the place you would like to Write down the place you would like to live, given your druthers (i.e., your live, given your druthers (i.e., your preferred place, ignoring practical preferred place, ignoring practical concerns such as a job, family, language, concerns such as a job, family, language, and heritage).and heritage).
Write down the place you would like to Write down the place you would like to live, given your druthers (i.e., your live, given your druthers (i.e., your preferred place, ignoring practical preferred place, ignoring practical concerns such as a job, family, language, concerns such as a job, family, language, and heritage).and heritage).
Write in one sentence, why you picked Write in one sentence, why you picked that place.that place.
Write down the place you would like to live, Write down the place you would like to live, given your druthers (i.e., your preferred given your druthers (i.e., your preferred place, ignoring practical concerns such as place, ignoring practical concerns such as a job, family, language, and heritage).a job, family, language, and heritage).
Write in one sentence, why you picked that Write in one sentence, why you picked that place.place.
More than 80% of participants will cite More than 80% of participants will cite some park, recreational, cultural, or some park, recreational, cultural, or environmental ambiance dimension in their environmental ambiance dimension in their responses.responses.
Business Relocation Business Relocation ContextContext More than 10,000 economic More than 10,000 economic
development groups are development groups are competing to attract businesses.competing to attract businesses.
Footloose IndustriesFootloose Industries ““Information Factories” whose Information Factories” whose
main asset is highly educated main asset is highly educated professional employees.professional employees.
Parks, Trails and Recreation: An Indicator Species
American Heritage Dictionary:
“The presence, absence, or relative well-being in a given environment is indicative of the health of its ecosystem as a whole.”
DriversDrivers
Beyond a threshold salary level, Beyond a threshold salary level, people are persuaded to relocate by people are persuaded to relocate by quality of life factors rather than quality of life factors rather than money.money.
DriversDrivers
Beyond a threshold salary level, Beyond a threshold salary level, people are persuaded to relocate by people are persuaded to relocate by quality of life factors rather than quality of life factors rather than money.money.
No matter how “quality of life” is No matter how “quality of life” is defined, parks, recreation, and open defined, parks, recreation, and open space are part of it.space are part of it.
DriversDrivers Beyond a threshold salary level, people are Beyond a threshold salary level, people are
persuaded to relocate by quality of life persuaded to relocate by quality of life factors rather than money.factors rather than money.
No matter how “quality of life” is defined, No matter how “quality of life” is defined, parks, recreation, and open space are part parks, recreation, and open space are part of it.of it.
There are no great cities in this world that There are no great cities in this world that do no have a great park (recreation and do no have a great park (recreation and culture) system.culture) system.
DriversDrivers Beyond a threshold salary level, people are Beyond a threshold salary level, people are
persuaded to relocate by quality of life factors rather persuaded to relocate by quality of life factors rather than money.than money.
No matter how “quality of life” is defined, parks, No matter how “quality of life” is defined, parks, recreation, and open space are part of it.recreation, and open space are part of it.
There are no great cities in this world that do no There are no great cities in this world that do no have a great park (recreation and culture) system.have a great park (recreation and culture) system.
““Disamenity compensation” – companies located Disamenity compensation” – companies located where there is only mediocre quality of life have to where there is only mediocre quality of life have to pay higher wages to attract the same quality work pay higher wages to attract the same quality work (and vice-versa). (and vice-versa).
Comparison of the Perceptions of Comparison of the Perceptions of the Relative Importance of General the Relative Importance of General Elements in Location Decisions Elements in Location Decisions Between Decision Makes in Large Between Decision Makes in Large and Small Companiesand Small Companies
ElementsElements Small CompanySmall Company
MeansMeans
(n=38)(n=38)
Large CompanyLarge Company
MeansMeans
(n=42)(n=42)
Government Incentives Government Incentives 3.93.9 14.214.2
Quality of LifeQuality of Life 33.333.3 14.714.7
LaborLabor 10.310.3 24.024.0
Proximity to CustomersProximity to Customers 28.428.4 11.611.6
Operating CostsOperating Costs 17.217.2 24.324.3
TransportationTransportation 6.76.7 7.77.7
Comparison of Perceptions of the Comparison of Perceptions of the Relative Importance of Quality-of-Relative Importance of Quality-of-Life Elements in Location Decisions Life Elements in Location Decisions in Large and Small Companiesin Large and Small Companies
ElementsElements Small CompanySmall Company
MeansMeans
(n=38)(n=38)
Large CompanyLarge Company
MeansMeans
(n=42)(n=42)
Primary/Secondary Primary/Secondary EducationEducation
19.419.4 18.018.0
Recreation/Open SpacesRecreation/Open Spaces 26.426.4 12.112.1
Cost of Living/HousingCost of Living/Housing 23.023.0 34.534.5
Personal Safety/Crime Personal Safety/Crime RateRate
12.912.9 13.213.2
Cultural OpportunitiesCultural Opportunities 10.610.6 9.59.5
Health/Medical ServicesHealth/Medical Services 7.17.1 9.29.2
SignificanceSignificance
““Companies that are 5 years old Companies that are 5 years old or younger account for all the or younger account for all the country’s net job creation.”country’s net job creation.”(i.e. 2.7 million jobs in 2012)(i.e. 2.7 million jobs in 2012)
On average, they produce 5 jobs On average, they produce 5 jobs eacheach
SignificanceSignificance
Most new business growth comes Most new business growth comes from small companies.from small companies.
90% of businesses in the U.S. 90% of businesses in the U.S. employ 10 or fewer people.employ 10 or fewer people.
Small business owners often Small business owners often “satisfice” rather than “optimize” “satisfice” rather than “optimize” their profit potential.their profit potential.
A Business Leader’s A Business Leader’s LamentLament
““What’s the greatest problem a What’s the greatest problem a business has today? Workforce. If you business has today? Workforce. If you interview 50 businesses at random, I’ll interview 50 businesses at random, I’ll bet 49 would say that my biggest bet 49 would say that my biggest problem is getting qualified workers. To problem is getting qualified workers. To get workers, you have to get people get workers, you have to get people who want to be in your community who want to be in your community because they love the community, it’s because they love the community, it’s got things to offer. got things to offer.
A Business Leader’s A Business Leader’s LamentLament
As the incoming CEO of [a local] As the incoming CEO of [a local] company said, I’ve got 80 people company said, I’ve got 80 people making over $100,000 in this operation. making over $100,000 in this operation. All of them are young, aggressive, All of them are young, aggressive, highly compensated people. They went highly compensated people. They went to the best schools in the country, they to the best schools in the country, they could go anywhere they wanted, they could go anywhere they wanted, they are the A players in the business world. are the A players in the business world. I need things that A players want.I need things that A players want.
People working in high tech companies are used to there being a high quality of life in the
metropolitan areas in which they live. When we at Dell go and recruit in those areas, we have to be
able to demonstrate to them that the quality of life in Austin is at least comparable or they won’t
come. It’s not just about salary. It’s about what’s the community like where I’m going to live.
- Vice President, Dell Corp., Austin
Benefits Related to Economic Prosperity
Attracting tourists Attracting businesses Reducing taxes
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00Commercia
l & Industrial
Farm/Forest Open Space
Residential
$0.27$0.35
$1.16
Section G – last underdeveloped part of a city available
Section G – last underdeveloped part of a city available
Original master plan - 7,711 population of which 1,820 would be school age. 125 acres of open space
Revised master plan – 205 acres of open space; reduction of school age population to 1,104 (716 fewer)
Section G – last underdeveloped part of a city available
Original master plan - 7,711 population of which 1,820 would be school age. 125 acres of open space
Revised master plan – 205 acres of open space; reduction of school age population to 1,104 (716 fewer)
Result: 1 less school to build and operate Cost savings substantially greater than
revenues from residences on the additional 80 acres available in the original plan would have generated
Fiscal Impact Analysis revealed If do nothing, taxes for an average
homeowner will increase $250 per year to support growth
Break-even value of a new home was over $300,000
Breakeven cost for the town to purchase development rights on farms and other open space was $10,000 per acre, i.e., annual cost of servicing bonds for this purpose equals annual costs accruing town residential use
Protected 2000 acres, i.e., 2/3 of remaining open space in the town by:Purchasing development rights on 1,200 acresIncentive zoning (TDRs) on 200+ acresMandatory clustering protecting 600+ acres
Annual cost of purchasing development rights was $50 per year (cf. $250 from development). Over the life of the bonds the average homeowner saved $5,000
Benefits Related to Economic Prosperity
Attracting tourists Attracting businesses Reducing taxes Attracting retirees
Retirement RelocationRetirement Relocation
The new clean growth industry in The new clean growth industry in AmericaAmerica
Target MarketTarget Market
GGrowing number of rowing number of RRetired etired
AActive ctive MMonied onied PPeople eople IIn n
EExcellent xcellent SShapehape
Target MarketTarget Market
GGrowing number of rowing number of RRetired etired
AActive ctive MMonied onied PPeople eople IIn n
EExcellent xcellent SShapehape
G.R.A.M.P.I.E.S.
Life Expectancy at Age 65 and Life Expectancy at Age 65 and Age of Exit from the Labor Age of Exit from the Labor
Force (Medians)Force (Medians)
Age of Exit from
the Labor ForceLife Expectancy
at 65
Males Females Males Females
Early 1950s 66.9 67.6 77.8 80.1
2011 61.6 60.5 82.8 85.4
5.3 7.1 5.0 5.3
Economic ImpactEconomic Impact
Annual inflow of 100 retired Annual inflow of 100 retired households with $40,000 annual households with $40,000 annual income = a new $4 million annual income = a new $4 million annual “payroll”“payroll”
Median Net Worth of Households, and Homeownership and Equity in Different Age Groups in 2011
Head of Household Age
Median Net Worth ($)
Homeownership (%)
Equity in Own Home ($)
All 68,828 66.9 80,000
Under 35 6,676 39.1 20,000
35-44 35,000 65.0 40,000
45-54 84,542 73.5 70,000
55-64 143,964 79.0 97,000
Over 65 170,516 80.5 130,000
65-69 194,226 81.6 125,000
70-74 181,078 82.4 130,000
Over 75 155,714 78.9 130,000
Median Income of Households 1980-2011 in 2011 Adjusted Dollars
Age of Head of Household 1980 1990 2000 2011
% Change 1980-2011
Mean Size of
Household in 2011
Per Capita Income in
201115-24 33,033 30,031 36,370 30,460 -8% 2.82 10,801
25-34 50,252 50,644 58,007 50,774 1% 2.85 17,815
35-44 61,400 64,327 70,216 61,916 1% 3.35 18,482
45-54 65,283 69,934 75,283 63,861 -2% 2.81 22,726
55-64 50,798 53,991 58,580 55,937 10% 2.18 25,659
65 and over 22,840 28,117 30,148 33,118 45% - -
65-74 N/A 33,851 36,767 41,598 1.91 21,779
75 and over N/A 21,997 24,572 26,277 1.60 16,423
National average
50,854 2.55 19,943
GRAMPIES Are an Appealing GRAMPIES Are an Appealing Economic Target Market Economic Target Market Because:Because:
Social Security and Private Retirement incomes are Social Security and Private Retirement incomes are stable – not subject to the vicissitudes of economic stable – not subject to the vicissitudes of economic business cyclesbusiness cycles
““Positive” taxpayers i.e., generate more tax revenue Positive” taxpayers i.e., generate more tax revenue than the cost of serving them (e.g., schools, criminal than the cost of serving them (e.g., schools, criminal justice)justice)
Contribute to development of the health care industryContribute to development of the health care industry
Volunteer pool – active in churches, service Volunteer pool – active in churches, service organizations, and philanthropic organizationsorganizations, and philanthropic organizations
Stimulate housing and retail, but do not put pressure Stimulate housing and retail, but do not put pressure on local job markets or social serviceson local job markets or social services
Key RequirementKey Requirement
Amenity rich community Amenity rich community especially recreation: especially recreation: socialization; active lifestylesocialization; active lifestyle
Key RequirementKey Requirement
Amenity rich community Amenity rich community especially recreation: especially recreation: socialization; active lifestylesocialization; active lifestyle
Sun City and Leisure World Sun City and Leisure World communitiescommunities
Key RequirementKey Requirement
Amenity rich community Amenity rich community especially recreation: especially recreation: socialization; active lifestylesocialization; active lifestyle
Sun City and Leisure World Sun City and Leisure World communitiescommunities
Retention is as valuable as Retention is as valuable as recruitment recruitment
Survey: 270 Recently Survey: 270 Recently Relocated GRAMPIES in the Relocated GRAMPIES in the Lower Rio Grande ValleyLower Rio Grande Valley Top 3 out of 40 reasons for moving Top 3 out of 40 reasons for moving
away from the previous residence away from the previous residence were:were:– Desire to live in a more recreationally Desire to live in a more recreationally
enjoyable areaenjoyable area– Desire to get away from cold weatherDesire to get away from cold weather– Desire to live in a place where Desire to live in a place where
recreation opportunities are plentifulrecreation opportunities are plentiful
Benefits Related to Economic Prosperity
Attracting tourists Attracting businesses Reducing taxes Attracting retirees Stimulation of equipment sales
Twelve years ago there was almost no pleasure driving in New York. There are now at least ten thousand horses kept for pleasure driving.
Frederick Law Olmsted, 1870
…to enjoy the use of the park, within a few years after it became available, the dinner hour of thousands of families was permanently changed, the number of private carriages kept in the city was increased tenfold, the number of saddle horses a hundredfold, the business of livery stables more than doubled, the investment of many millions of private capital in public conveyance made profitable.
Frederick Law Olmsted, 1886
Economic Partners’ Support GroupTo lobby for better funding for the recreation and park agency
Comprised of:
- Recreation equipment retailers
- Department suppliers
- Concessioners
c.f. State and National Tourist Associations
Recreation Coalition at the Federal level
Armed forces and defense contractors
Benefits Related to Economic Prosperity
Attracting tourists Attracting businesses Reducing taxes Attracting retirees Stimulation of equipment sales Enhancing real estate values
1,300 acres total150- acres for a golf course
Cost of golf course development = $4 million
1,300 acres total150- acres for a golf course
Cost of golf course development = $4 million
College Station sub-division lots = $30,000
Pebble Creek averages 3 lots per acreGolf course replaced 450 lots
450 lots at $30,000 = 13.5 million
1,300 acres total150- acres for a golf course
Cost of golf course development = $4 million
College Station sub-division lots = $30,000 Pebble Creek averages 3 lots per acre
Golf course replaced 450 lots 450 lots at $30,000 = 13.5 million
Total cost of the golf course - $17.5 million
Pebble Creek lots = $40,000 on average
($10,000 more per lot because of golf course)
Pebble Creek lots = $40,000 on average
($10,000 more per lot because of golf course)
1,150 remaining acres X 3 lots per acre = 3,450 lots
3,450 x $10,000 premium = $34.5 million
Nash established as the central principle of his plan: “that the attraction of open Space, free air and scenery of Nature, with the means and invitation of exercise on horseback, on foot and in Carriages, shall be preserved in Marylebone Park, as allurements or motives for the wealthy part of the public to establish themselves.”
At Regent’s Park, Nash brought to the urban landscape the principles of picturesque landscapes that had been developed by Capability Brown in country estates half a century earlier, and his erstwhile partner Humphry Repton
Liverpool City Council (1837):The Council is well disposed to provide a public park and the subject has been discussed, but the value of the land is so great in the vicinity of Liverpool and the council have had so many demands upon it that they do not consider justified in incurring such an expense.
Richard Vaughn Yates purchased 97 acres for around £50,000: 40 acres for a park
Richard Vaughn Yates purchased 97 acres for around £50,000: 40 acres for a park
Hired Joseph Paxton, the leading botanist-garden in the country based at Chatsworth
“A marketing coup” Paxton’s first venture into
municipal design Assisted by James Pennethorne –
a protégé of Nash – worked with him at Regent’s Park
Joseph Paxton
1843-1850 Cost of land acquisition and development of the park ₤146,619 ($236,057)
Projected income from lot sales ₤155,872
($250,954)
Surplus ₤9,253 ($14,897)
₤1 in 1850 = ₤43 in 2013 (using the retail price index) Contemporary value using the average earnings index: ₤1 in 1850 = ₤699 in
2013
Cost of land acquisition and development of the park ₤103 million ($166m)
Projected income from lot sales ₤109 million
($181m)
Surplus ₤6 million ($15m)
“A perfection that I had never dreamed of. I cannot undertake to describe the effect of so much taste and skill as had evidently been employed…and all this magnificent pleasure-ground is entirely, unreservedly, and forever the people’s own…but you are inquiring who paid for it. The honest owners—the most wise and worthy people of Birkenhead—in the same way that New Yorkers pay for ‘The Tombs’, and the hospital, and the cleaning (as they amusingly say) of their streets.”
Value of Real EstateWard 1856 1873Twelfth 8,149,360 62,457,680Nineteenth 8,041,183
110,519,303Twenty-Second 10,239,022
63,104,530 $26,429,563
$263,081,515
Increase in Assessed Valuation = $209,651,950Tax rate in 1873 was $2.50so Tax revenue on increased AV = $5,241,200
Value of Real EstateWard 1856 1873Twelfth 8,149,360 62,457,680Nineteenth 8,041,183
110,519,303Twenty-Second 10,239,022
63,104,530 $26,429,563
$263,081,515
Increase in Assessed Valuation = $209,651,950Tax rate in 1873 was $2.50so Tax revenue on increased AV = $5,241,200
Total Cost of land and development $13,902,515for Central Park
Annual debt charges $830,158
Value of Real EstateWard 1856 1873Twelfth 8,149,360 62,457,680Nineteenth 8,041,183
110,519,303Twenty-Second 10,239,022
63,104,530 $26,429,563
$263,081,515
Increase in Assessed Valuation = $209,651,950Tax rate in 1873 was $2.50so Tax revenue on increased AV = $5,241,200
Total Cost of land and development $13,902,515for Central Park
Annual debt charges $830,158
Excess of tax revenues over debt charges $4,411,140 (In 2013 dollars $8,110,000,000)
1868 - Writing to the developers of Riverside Chicago: FLO cited “the vast increase in value of eligible sites for dwellings near public parks.”
1868 - Writing to the developers of Riverside Chicago: FLO cited “the vast increase in value of eligible sites for dwelling near public parks.”
1919 – FLO Jr: “It has been established that…a local park of suitable size, location and character, and of which the proper public maintenance is reasonably assured, adds more to the value of the remaining land in the residential area which it serves than the value of the land withdrawn to create it.”
Increase in property value
Decrease in property value
Distance from park
Benefits Related to Economic Prosperity
Attracting tourists Attracting businesses Reducing taxes Attracting retirees Stimulation of equipment sales Enhancing real estate values
Critics who argue there is inadequate evidence to support the potential contributions of these benefits are wrong. There is strong enough empirical support for all of the benefits listed to justify their advocacy in formulating policy.
Credibility of the Evidence
“we have come a long way in essentially less than a half-century and have much to be proud of…In fact, few areas of scientific inquiry have realized such advancements in so short a time.”
Driver, 1999
Presentation available at:
Google “TAMU Crompton” Go to “Recent Presentations”