Gary Sands

The Successful Few: Healthy Downtowns of Small Metropolitan Regions

Abstract In the face of increasing suburbanization during the past half century, most downtowns have experienced decline, particularly those of small metropolitan regions. A survey of planners (both practitioners and academics) and other urban professionals has sought to identify small metropolitan regions considered to have successful downtowns and the factors associated with this success. Only a small number of such North American metropolitan regions were perceived as possessing a very successful or successful downtown. Factors that characterize such success are described. We conclude that revitalization policies should concentrate on niche markets that show little interest in homogenized suburban activities. More specifically, planners should focus on the retention and enhancement of the distinct physical characteristics that clearly distinguish downtowns from suburban environments. More and more U.S. cities and towns are coming to realize the benefits of greater street connectivity: reduced traffic on arterial streets, more continuous and direct routes, better emergency vehicle access, and improved utility connections. Here is an excellent overview of recent efforts by communities across the U.S. to increase street connectivity. The authors look at the motivation behind such efforts, the wide variety of issues raised, and the different approaches taken to resolve them. Planners, decision makers, and neighborhood residents will gain a better understanding of the concept of connectivity and how it applies in their own communities. Ideally, the jobs available in a community should match the labor force skills, and housing should be J. available at prices, sizes, and locations suited to the workers who wish to live in the area. Some argue that the market is the mechanism that will achieve a balance between jobs and housing. Jerry Weitz researched several types of jobs-housing imbalance and concluded that, in fact, the market failed to achieve such balance in three out of four scenarios. Weitz explains the details of jobs-housing balance– a planning tool that local governments can use to achieve a roughly equal number of jobs and housing units or households, resulting in overall community improvements.

Cultivating the Creative Class: And What About Nanaimo?

Despite widespread adoption of creative class economic development strategies, one of its basic tenets—the connection between community tolerance (running through talented individuals and high-tech employment) and economic health and growth—has not been sufficiently tested. This analysis of 40 midsized Canadian urban areas finds a connection between diversity and gay and creative populations and economic health. Neither high-tech employment nor economic growth, however, was found to be linked to the other measures. Although there is some evidence that amenity- and creative class-based economic development strategies can be effective, they do not appear to be sufficient in themselves. Other local policies (e.g., basic marketing to tourists, infrastructure improvements, and traditional business attraction and retention strategies) combined with a measure of “place luck” seem to be important ingredients as well.

Creative Class and Economic Prosperity: Old Nostrums, Better Packaging?

Much local economic development is driven by fads. Sometimes the fad has been a particular type of economic development project. Successful projects are frequently copied by other municipalities, often with indifferent success. Festival marketplaces and aquariums are two examples that come to mind. Enclosed downtown malls and pedestrian streets are other projects that have not proven portable from one community to another. Local economic development is also driven by theoretical and analytical fads. Tools and strategic visions that have proven effective in some circumstances or that have broad intuitive appeal are quickly adopted and pursued by a wide range of communities. Although these more conceptual economic development strategies have proven to be more portable (and less expensive) than some of the bricks and mortar projects, they have nevertheless failed to provide the silver bullet that would solve the variety of economic development challenges communities face. One example of a popular analytical tool is economic base theory. Economic base theory encouraged communities to concentrate on “export” or “basic” industries, those that produced goods and services for export and, in turn, brought new money into the community. Economic development strategies thus focused on identifying such basic industries and encouraging their growth. Because of its intuitive appeal and ease of calculations, it remains a staple in urban planning curricula. Hans Blumenfeld (1955) provided a detailed critique of the concept that pointed out its limitations. Academics also contributed to implementation by developing more precise measurement techniques for pinpointing desired industries (Isserman, 1980; Tiebout, 1962). Wilbur Thompson (1969) emphasized the potential of services (health care and education in particular) as the key economic base of some communities. He also turned the concept on its head, suggesting that communities concentrate on those industries they were lacking, in effect adopting the import substitution model of international trade to local communities. Meanwhile, state and local officials focused their efforts on basic industries, targeting incentives to manufacturing and other exporting sectors. Although economic base theory continued to be a key way to look at local economies, the “urban dynamics” approach formulated by Harvard Business School professor Jay Forrester

Implementing Tax Abatements in Michigan: A Study of Best Practices

Because the use of tax abatements to foster local economic development is widespread despite uncertainty about their effectiveness, is it possible to allocate abatements in a way that increases the likelihood that tangible benefits will result? This research suggests that few municipalities place conditions on abatements, most never evaluate the performance of firms granted abatements, and abatement requests are seldom or never rejected. The project focuses on the implementation of tax abatements, explores the use of tax abatements over a relatively long time period, and makes explicit policy recommendations for more effective policy implementation. Changes in state enabling legislation targeting abatements to distressed areas and adding requirements for evaluation may produce more effective use of abatements at the local level.

MEASURING THE CREATIVE CLASS: DO WE KNOW IT WHEN WE SEE IT?

ABSTRACT: Looking across the growing creative class literature, several methodologies for measurement have been employed: analysis of census data and other economic, business, and quality of life indicators; case studies and other descriptive efforts; and surveys of business leaders and other experts. These methods have provided little overall sense of relative validity. This research examines the nature of the creative class using a variety of measures: occupational and demographic profiles, talent and diversity, an expert survey of successful downtowns, creative class accoutrements, and case studies. Specific research questions include the following: Are rankings on different indicators correlated? Do the same municipalities come up high on all indicators of the creative class? How do the different measurement systems relate to overall economic health and growth? Which measurement or combination of measurement systems appears most reliable?

A Vacancy Transfer Model of the Structure of the Local Housing Market

Household mobility data derived from vacancy chain or turnover studies may be used to develop a Markov model of the local housing market. Such a model based on empirical data from the Detroit metropolitan area indicates a strong tendency for households to substantially increase their housing expenditures when they move. This finding is consistent with the filtering model of local housing market dynamics. However, these data do not support the hypothesis that more expensive new housing will produce the greatest number of indirect housing opportunities. New units at every cost level generated about the same total of turnover vacancies. The model also indicates that all types of new construction ultimately have their greatest impact on lower cost housing in established communities. Copyright American Real Estate and Urban Economics Association.

Assessment Inequity in a Declining Housing Market: The Case of Detroit

We examine the degree to which assessment practices in the City of Detroit have created substantial inequities in property tax payments across residential properties. Two key contributions of this article include: (1) inequities created by assessment practices are examined in a collapsed real estate market, and (2) quantile regression techniques are used to determine how assessment practices have altered assessment distributions within and across property value groups. Results show that current practices have created a wide range of property tax payments across properties with similar value (horizontal inequity), and similar tax payments for properties of differing values (vertical inequity).

Tax Base Erosion and Inequity from Michigan's Assessment Growth Limit: The Case of Detroit

We examine the degree to which Michigan’s property value assessment growth cap has eroded the tax base and created substantial differences in effective tax rates among residential properties within the City of Detroit. While the analysis focuses on a specific city with significant tax base erosion challenges, it is relevant to other cities in Michigan and across the nation, particularly in states that impose assessment growth limits. Using quantile regression techniques, we examine how an assessment growth cap alters effective tax rate distributions within and across property value groups. Results show that the cap creates a wide range of effective tax rates across properties of similar value (horizontal inequity) and similar tax payments for properties of differing values (vertical inequity).

Michigan's Renaissance Zones: Eliminating Taxes to Attract Investment and Jobs in Distressed Communities

The Michigan Renaissance Zone initiative provides a virtual total exemption from state and local property and income taxes both for businesses and for residents of limited areas of distressed communities. During its first three years, the program has been successful in attracting investment of US

Tips for TIFs: Policies for Neighborhood Tax Increment Financing Districts

367 million and claims responsibility for some 3750 jobs. Whereas some of the designated areas have experienced significant gains, for others the radical reductions in tax liability have provided insufficient incentives to attract new activity.