Smart Growth and Urban Revitalization

1. The Brookings Institution Smart Growth and Urban Revitalization Center on Urban and Metropolitan PolicyRobert Puentes, Senior Research Manager Presented to the Virginia Municipal League Urban Section meeting : October 21, 2003

2. Smart growth involves efforts to change the governmental “rules of the development game” that facilitate sprawl and concentrate poverty. Smart growth efforts are designed to slow decentralization, promote urban reinvestment, and enhance access to opportunity.

3. Current Strategy Smart Growth Strategy What’s Wrong What’s Needed Policies are marginal -Microlending, open space protection Policies focus on subsidies -Empowerment zones Policies are fragmented -Housing, schools Policies are geographically limited -Workforce/transportation Focus on the “big stuff” -Identify reforms with systemic effect Fix the fundamentals -Land use, capital access, tax reform Integrate strategies -Connect systemic reforms Think metropolitan -Implement reforms beyond borders

4. Smart Growth Strategies Primary Responsibilities FEDERAL STATE LOCAL Know, Fix, Build Build Wealth Metro Growth - Manage economy - Income redistribution - Regulatory oversight - Homeownership • - Schools • - Local land use • Downtown • Housing • - Governance • - Regional land use • Transportation • Housing

5. The Smart Growth Agenda • Know the context • Land use reform • Infrastructure / spending • Urban reinvestment • Tax reform • Housing • Metropolitan governance

6. 1. Know the Context Understand metropolitan growth dynamics through research Recent Activity 1979Ohio - Urban University Partnership 1997Minnesota - Subsidy Accountability Disclosure Law 1998Maine - Subsidy Accountability Disclosure Law 2002Delaware Valley Regional Planning Commission

7. 1. Know the Context Understand metropolitan growth dynamics through research Ohio Urban University Program • The UUP Program is a state funded collaborative that links the urban centers of 8 universities. • Assists local governments and policy makers by conducting research aimed at addressing Ohio’s urban challenges. • Maintains shared databases, GIS systems, and other information resources.

8. 1. Know the Context Understand metropolitan growth dynamics through research Delaware Valley Regional Planning Commission • Works to foster regional cooperation in a nine-county, two state region focusing on transportation, land use, environmental protection and economic development. • Examines the effects of decentralization and disinvestment in older suburbs. • Produces a series of reports on older suburban trends and policy recommendations.

9. 2. Land Use Reform: Preservation Preserving land threatened by development. Recent Activity 1980 Transfer of Development Rights, Montgomery County, MD 1998 New Jersey Public Question #1 “1 Million Acres” 1998Clean Michigan Initiative 1998 Forever Florida Program 1999 Pennsylvania Growing Greener 2000Issue #1 - The Clean Ohio Fund

10. 2. Land Use Reform: Preservation Preserving land threatened by development. Issue #1 - Clean Ohio Fund (2000) • Voters authorized $200 million in general obligation bonds for environmental conservation and natural areas, open space, farmlands, and other land dedicated to agriculture • $200 million in revenue bonds to remediate urban brownfields to promote economic development

11. 2. Land Use Reform: Preservation Preserving land threatened by development. Transfer of Development Rights Montgomery County, MD Allows owners to transfer the right to develop their property to higher density “receiving areas” in other parts of the County, this program, perhaps the best in the nation, has preserved roughly 47,000 acres of farmland since its creation in 1980.

12. 2. Land Use Reform: Planning Promoting sound land use and strategic development. Recent Activity 1998 Tennessee Growth, Annexation, and Incorporation Law 1999 Wisconsin Comprehensive Planning Legislation 2000Pennsylvania Growing Smarter Law 2002Illinois Local Planning Technical Assistance Act

13. 2. Land Use Reform: Planning Promoting sound land use and strategic development. Pennsylvania Growing Smarter Law (2000) • Clarifies authority of counties and municipalities to create Locally Designated Growth Areas • Encourages transfer of development rights from open space to planned growth areas • Facilitates regional planning • Gives local governments greater ability to withstand legal challenges while planning growth

14. 3. Infrastructure Spending Target state and local spending to support existing communities and leverage public investments. Recent Activity 1980 Transit Oriented Development in Arlington County 1997Maryland Smart Growth Act 1999New Jersey “Fix It First’ Transportation Policy 1999 Illinois $12 billion public works investment 2002 California State Infrastructure Priorities Law

15. 3. Infrastructure Spending Target state and local spending to support existing communities and leverage public investments. Maryland Smart Growth and Neighborhood Conservation Act of 1997 • Targets major state funding (e.g. transportation, housing, state facilities) to Priority Funding Areas. • Priority Funding Areas include municipalities, inner beltway areas, enterprise zones, industrial areas and new planned growth areas.

16. 3. Infrastructure Spending Target state and local spending to support existing communities and leverage public investments. Transit Oriented Development Arlington County, VA Sector plans around each metro station establish land use and development guidelines to ensure a mix of commercial residential and office uses. One third of all Metro transit riders get on or off in Arlington County.

17. 4. Urban Reinvestment Promote urban reinvestment and build communities of quality and distinction. Recent Activity 1995Vermont Downtown Program 1998 New Jersey Rehabilitation Subcode 1998Living in Downtown Denver 1999 Oregon Livable Community Initiative 2000Maine fund to locate state agencies downtown

18. 4. Urban Reinvestment Promote urban reinvestment and build communities of quality and distinction. New Jersey The Rehabilitation Subcode of 1998 • Smart codes reduce the cost of redeveloping in older areas. • Newark experienced a 60% increase in such rehab projects in the first year after smart codes were in place. • Also in place in Maryland and Rhode Island.

19. 4. Urban Reinvestment Promote urban reinvestment and build communities of quality and distinction. Growth in Downtown Living The Denver Story • Denver made living downtown a political and business priority in the 1990s. Major reforms were undertaken to make downtown clean and safe, to preserve and reuse old buildings, and to streamline and support residential growth.Efforts resulted in a fifty percent growth in residents.

20. 5. Tax Reform Reducing fiscal disparities between jurisdictions by reducing the competition for tax dollars. Recent Activity 1971Minnesota Fiscal Disparities Law

21. 5. Tax Reform Reducing fiscal disparities between jurisdictions by reducing the competition for tax dollars. Minnesota Fiscal Disparities Law • Each city in the seven county region contributes to a regional pool: 40% of the growth in property tax revenues arising from the area’s commercial and industrial development. • About $400 million in 2000 was redistributed based on jurisdictions’ tax capacity. • Reduced fiscal disparities in some communities from 50:1 to 12:1.

22. 6. Balanced Housing Strategies Expanding housing opportunities for middle-class and low income families 1969Massachusetts Anti-Snob Zoning Law 1974Montgomery County Moderately Priced Dwelling Unit Ordinance 1996Washington State Affordable Housing Element 1998California Housing Element Law 1999Cuyahoga County Housing Enhancement Loan Program Recent Activity

23. 6. Balanced Housing Strategies Expanding housing opportunities for middle-class and low income families Inclusionary Zoning Montgomery County, MD • The Moderately- Priced Dwelling Unit Ordinance (MPDU) requires new developments of >35 units to set aside 12.5% - 15% of the units for low and moderate income households. • Return is a 22% density bonus • Almost 11,000 units since 1973

24. 6. Balanced Housing Strategies Expanding housing opportunities for middle-class and low income families Housing Enhancement Loan Program (HELP) Cuyahoga County, Ohio • Participating banks allow homeowners to borrow money to repair or remodel their homes or rental property at interest rates 3% below the lowest rate a bank would normally offer. • Loans can be used for code violation compliance, property upgrades, general maintenance, repair, remodeling, landscaping, etc.

25. 7. Metropolitan Governance Implementing reforms beyond borders 1978Greater Portland Metropolitan Service District 1983Chesapeake Bay Program 1994Minneapolis/St. Paul Metropolitan Council 1999Georgia Regional Transportation Authority Recent Activity

26. 7. Metropolitan Governance Implementing reforms beyond borders Georgia Regional Transportation Authority (1999) • Combats air pollution, traffic congestion and sprawl development • Mandates approval of major highway and development projects that affect the metro Atlanta region • Requires local governments to cooperate with GRTA or face the loss of state and federal transportation funds

27. 7. Metropolitan Governance Implementing reforms beyond borders Central City Older Suburb Retail Housing Schools Rural Area Newer Suburb Farm Preservation Quality of Life Conservation Congestion

28. The Smart Growth Agenda • Know the context • Land use reform • Infrastructure / spending • Urban reinvestment • Tax reform • Housing • Metropolitan governance

29. www.brookings.edu/urban

30. Organize for Success Organize coalitions around state reform • Build regional and statewide political coalitions that reflect their unique set of issues and challenges • Identify funding to staff and support coalitions • Partner with university and research organizations for independent research analysis and policy positions

31. Organize for Success Organize older suburban coalitions around state reform • Northeastern Ohio First Suburbs Consortium • Informally created in 1997 by a group of older suburban officials from the east and west sides of Cleveland to discuss their common strengths, needs, and problems. • Works to encourage the establishment of similar organizations in the state’s other metropolitan areas and helped develop a "Smart Growth Agenda for Ohio" focusing on reinvestment in older suburban jurisdictions. • Have initiated major cooperative projects that address economic development and housing revitalization.