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THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM A Transformative Agenda for U.S. Cities Wingspread Conference February 10, 2005 Metropolitan Policy Program Bruce Katz, Director The Brookings Institution

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Page 1: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

A Transformative Agenda for U.S. Cities

Wingspread ConferenceFebruary 10, 2005

Metropolitan Policy ProgramBruce Katz, Director

The Brookings Institution

Page 2: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

There are profound demographic, market, and social forces affecting the United States

A New Transformative Agenda for U.S. Cities

I

These forces dramatically improve the competitive prospects of citiesII

Despite these promising trends, cities have yet to realize their true economic potential III

Local, state, and federal policies shaping cities are mixed IV

A Transformative Agenda for U.S. CitiesV

Page 3: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

There are profound demographic, market, and social forces affecting the United StatesI

Page 4: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

33 mil.

22 mil. 23 mil. 24 mil.

-

5

10

15

20

25

30

35

1960-1970 1970-1980 1980-1990 1990-2000

1970

6% 4% 2% - 2% 4% 6%

<5

85+Male Female

2020

6% 4% 2% - 2% 4% 6%

<5

85+Male Female

Population Growth

Major demographic change is taking place in the U.S.

34.7%

65.3%Net ImmigrationNatural Increase

Components of population change, 1990-2000

Aging

Immigration

Internal Migration

Millions of persons

Share of Population in Age Groups

New Sunbelt

Melting Pot

Heartland

Page 5: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

1315

18

02468

101214161820

1998 2003 2006

Globalization

At the same time, the country is going through a period ofunprecedented economic transformation

Knowledge industries

Deindustrialization

Rapid innovationFrom R&D to Market (Months)

22% 19%

32%

11%

0%

5%

10%

15%

20%

25%

30%

35%

Manufacturing Services

19702000

U.S. Employment Shares

20

220

420

620

820

1,020

1,220

1,420

1990 1992 1994 1996 1998 2000

Exports of GoodsExports of ServicesImports of GoodsImports of Services

Bil. Constant 2000 Dollars

0%

5%

10%

15%

20%

25%

30%

35%

1990 1992 1994 1996 1998 2000

Share of Real Investment

Share of Real GDP

Share of RealInvestmentand GDP in New EconomyIndustries

Page 6: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

$250

$500

$750

$1,000

1993 1995 1997 1999 2001 2003

GDP Growth

In the 1990s, steady growth and prudent fiscal policy kept interest rates low, fueling development

Interest Rates

Budget Surplus

DevelopmentConstruction Put in Place (Bil. Current $)

1.9%

-0.2%

3.3%2.7%

4.0%

2.5%

3.7%

4.5%4.2%

4.5%

3.7%

0.8%

-1%

0%

1%

2%

3%

4%

5%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

0%2%4%6%8%

10%12%14%16%

1980 1984 1988 1992 1996 2000

3-Month Treasury Bills

-$400

-$300

-$200

-$100

$0

$100

$200

$300

1990 1994 1998 2002

Budget Surplus or Deficit(Bil. Current $)

Page 7: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Delayed marriage

Social change drove (and was a response to) demographic and economic change

Declining segregation

Smaller families

Dispersed social networks

202122232425262728

1900 1920 1940 1960 1980 2000

Men

Women

10% 10%

80%

65%

18% 17%

0%

20%

40%

60%

80%

100%

No children 1 child 2+ Children

19762002

Median Age at MarriageBirths Ever to Women Age 40-44

• Local ties now make up only 2-5 percent of an average North American’s social network

Wellman (1996)18%

62%45%

23%

0%

20%

40%

60%

80%

<1% 1-10%

Perc

ent o

f All

U.S

. Tra

cts

19602000

African-American Share of Population in U.S. Census Tracks

Page 8: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

These forces dramatically improve the competitive prospects of citiesII

Page 9: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Aerial Image of dense city here

The dense physical layout of cities gives them a competitive and fiscal advantage

Density contributes to innovation by attracting young educated workers

Dense labor markets and high clustering of jobs lead to knowledge spillovers, both within and across industries

Average labor productivity increases with employment density

Compact development is more cost-efficient

Page 10: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Density has made cities multicultural centers of creativity,commerce, and cultureCenters of Tolerance & Creativity

Centers of CultureCenters of Commerce

• Ports• Airports • Other Transportation Networks• Financial and other business services

• Universities• Museums• Theaters• Restaurants

Metropolitan AreaMilken

Tech-Pole Gay IndexBohemian

IndexSan Francisco 1 1 8Boston 2 8 9Seattle 3 6 1Washington, DC 4 2 6Dallas 5 19 15Los Angeles 6 7 2Chicago 7 15 20Atlanta 8 4 13Phoenix 9 22 24New York 10 14 3

43%

38%

30%

35%

40%

45%

Hispanic Asian

Centers of ImmigrationPercent change in population, 1990-2000100 largest cities

Page 11: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Population Growth

The new positioning of cities has driven an urban resurgencein the United States

Increase in Jobs

Revitalized Downtowns

Declining Poverty

9.8%6.3%

-1.6%-2%

2%

6%

10%

14%

1970s 1980s 1990s

50 largest cities, 1970-2000

-20%

-10%

0%

10%

20%

30%

40%

Atlanta Baltimore Cleveland Philadelphia

City

Downtown

Percent change in population, 1990-2000

17%

19%

14%

16%

18%

20%

1990 2002

26.6mil.

31.2mil.

242526272829303132

1992 2001

Mill

ions

of J

obs

Jobs located in 114 large cities, 1992 & 2001

Page 12: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Innovation

Cities, in particular, have gained a strong footing in the New Economy

Economic BaseEconomic Activity in Old and New Economy Sectors, 114 Cities and their Suburbs, 2000

60%46%

40%54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

City Economic Base Suburb Economic Base

New Economy Old Economy

25%

23%

20%

22%

24%

26%

New Firms New Jobs

50 Largest Cities, Share of New U.S. Firms & Jobs, 1996-97

Page 13: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Despite these promising trends, cities have yet to realize their true economic potential III

Page 14: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Concentrated poverty

The historic legacies of racial and class segregation persist

Parasitic economies

Racial disparities

38% 37%

14%10%

0%

10%

20%

30%

40%

Asian White Black Latino

Percent Age 25 and over with Bachelors Degrees (100 Largest Cities), 2000

Failing schoolsResearch shows low income households pay hundreds more each year for:

900k

1 mil.

6 mil.

0 1 2 3 4 5 6

Central City

Suburbs

NonMetropolitan

Popoulation (in millions)

Population of high-poverty neighborhoods by location, 2000

Educational achievement rates, fourth grade students

33%25%

67%67%

0%10%20%30%40%50%60%70%80%

Reading Math

Perc

ent a

t "Ba

sic"

Lev

ell

High-PovertySuburban

• financial services• insurance• utilities• appliances• food

Page 15: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Population decentralization

These problems fuel uneven growth everywhere; in some regions, they continue to cripple central cities

Employment decentralization

Weak central cities

-7%

-11%-12%-13%-15%

-16%

-18%

-16%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

St.

Loui

s

Bal

timor

e

Cin

cinn

ati

Pitt

sbur

gh

Det

roit

Phi

lade

lphi

a

Population change, 1990-2003

4%

19%

9%

44%

16%

6%

37%

18%

0%

10%

20%

30%

40%

50%

Atlanta Chicago Denver Top 100

City

Suburbs

Population change, 1990-2000

35%

22%

65%

0%

20%

40%

60%

Within 3 miles Within 10 miles Beyond 10miles

Share of jobs within 3-, 10-, and greater- than-10-mile radius of center, 1996

Page 16: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Local, state, and federal policies shaping cities are mixedIV

Page 17: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Local

At every level, urban policy is beginning to get some things right

Federal

• School reform/governance

• Community policing

• Vacant land

• Government reinvention

• Innovative financing

State

• EITC/CHIP

• Childcare

• HOPE VI

• CRA

• GSE Goals/Homeownership

• Investment in medical research

• ISTEA/TEA-21

• Brownfields

• Fix it first transit

• Workforce/higher education

• Growth management

• Investment in medical research

Page 18: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

19

34

22

22

0

10

20

30

40

50

60

New Centers Expanded Centers

Num

ber o

f Citi

es

Planned or inconstruction Built since 2000

Cities often make the wrong bets (e.g. convention centers)

2

2.5

3

3.5

4

4.5

5

5.5

6

1990 1992 1994 1996 1998 2000 2002 2004

Atte

ndan

ce (M

illio

ns)

Tradeshow Week200 Events

Source: Heywood Sanders. “Space Available: The Realities of Convention Centers as Economic Development Strategies,” Brookings. January 2005.

Page 19: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

States set rules of the development game that continue to favor suburban development

• Major state spending programs have skewed funding to greenfields

• State tax systems are biased against cities

• In many states, local zoning ordinances do not conform to local or regional plans

• Barriers to brownfield development hinder their productive reuse

• Greater government fragmentation correlates with more sprawl

• Many state constitutions prevent government from using gasoline tax on transit

Picture of greenfield

Page 20: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Anemic policies

Federal policies are at best anemic; at their worst,they also favor suburban development

Biased policies• Federal work benefits fail to support

eligible working families – more than 20 states have waiting lists for child care programs - several states have stopped accepting applications from eligible families

• In contrast, Britain devoted an extra 1 percent of GDP to reducing child poverty -$100 billion U.S. a year in added spending

• Blair’s program reduced child poverty from 23% in 1997 to 13% in 2001

• The increase is more than our final child poverty budget, $60-76 billion

• Subsidized housing policies reinforce concentrated poverty

• Homeownership tax expenditures favor suburban buyers

• Environmental regulation pushes growth outward

• Despite improvements, transportation funding is still geared toward highway building

Page 21: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

A Transformative Agenda for U.S. CitiesV

Page 22: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

In the 21st century, cities will have an opportunity to redefine their role in metropolitan America

• Strong middle-class families

• Quality neighborhoods of choice

• Common and inclusive civic identity

• A commitment to serving and developing residents with greater needs

• Concentration of regional business activity

• An innovative highly skilled workforce

• Strength in sectors with a competitive advantage

• Dynamic arts and culture sector reflecting urban diversity

• Efficient government services

Physical Economic Social• Walkable and well

defined mixed-use neighborhoods

• Transportation infrastructure tailored to the modern city

• Renowned recreational amenities and institutions

• State-of-the art schools

• Clean and healthy urban ecosystems

Page 23: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

To recap: Cities have real assets that are highly valued by the New Economy

Underutilized Waterfronts Downtowns

Universities Active Neighborhoods Infrastructure

Human Capital

Page 24: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

While recent trends are positive, legacies from the past are preventing cities from fully leveraging these assets

Positive Trends Historical Legacies

• Population growth

• Immigration

• Aging population

• Investors looking to tap underserved urban markets

• Certain positive state and federal programs

• Concentrated poverty

• Substandard housing

• Aging and outdated infrastructure

• Fiscal disparities

• Ossified bureaucracies

• Fragmented governance

• Racial and class separation

Page 25: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Increasingly cities are recognizing and leveraging these assets by carrying out transformative efforts

Transformative Effort

Creating Neighborhoods

of Choice

Growing a Middle class

Modernizingthe CBD

Reclaimingthe Waterfront

Channeling Land Usewith Transit

DevelopingGreen Infrastructure

Landscape

Physical

Economic

Social

ReformingGovernance

SupportingInnovation

ReducingDisparities

Page 26: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

In the past, cities used zoning and infrastructure placement to cut neighborhoods and residents off from the waterfront

Reclaimingthe WaterfrontPhysical

Underutilizing the asset:

Leveraging the asset:Cities recognize the passive and active recreational value of waterfronts, as well as their attractiveness to developers interested in generating new mixed-use urban environments

Page 27: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

The Milwaukee Freeway Demolition

• Removal of a little-used spur of the never-completed Park East Freeway began in 2002 to reclaim 11 blocks of downtown land

• Renewal project will add commercial and residential development of mixed types, taking advantage of the unique features downtown(e.g. the river, entertainment venues, etc.)

Reclaimingthe WaterfrontPhysical

Before After

The Milwaukee Freeway Demolition

Page 28: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

In the past, cities built transit to service existing residential development

Physical

Underutilizing the asset:

Leveraging the asset:

Cities realize that transit can generate value by promoting denser, more efficient growth patterns

Channeling Land Usewith Transit

Page 29: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

The Milwaukee Freeway Demolition

Channeling Land Usewith TransitPhysical

Transit oriented development in Arlington County, VA

• In 1972, sector plans were created around each metro station to establish land use and development guidelines and ensure a mix of commercial residential and office uses

• The Rosslyn-Ballston corridor now contains 18,000 housing units and 14 million square feet of office space

• 73,000 jobs are located within a third of a mile of the corridor

The Vision The Outcome

Page 30: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

The Milwaukee Freeway Demolition

Channeling Land Usewith TransitPhysical

Denver FasTracks will encourage smarter growth patterns

• $4.7 billion project; financing provided by sales tax (4 cents per $10)

• TOD around stations designed to accommodate 900,000 anticipated new residents over next 20 years

• 119 miles of new light rail and commuter rail

• 18 miles of bus rapid transit service

• 21,000 new parking spaces at rail and bus stations

Page 31: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

In the past, cities paved over or neglected parks and open space

Physical

Underutilizing the asset:

Leveraging the asset:

Cities are building and designing active programming for parks and other recreational spaces

DevelopingGreen Infrastructure

Page 32: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

The Milwaukee Freeway Demolition

DevelopingGreen InfrastructurePhysical

• Continuous “green streets” – streets with adequate sidewalks and tree canopies –connecting neighborhood main streets, schools, and recreation centers to parks

• Citywide and regional trail connectors –connecting parks and creating longer walking and cycling routes

• Healthy and accessible waterways –extending and increasing open space along city rivers

Denver’s plan for “A City in A Park”

“Green Street” Ideal

A Plan for the “City in A Park”

Page 33: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

In the past, cities planned downtowns for concentrations of office space

Underutilizing the asset:

Leveraging the asset:Cities recognize that work/live downtowns support the mix of retail and commercial activities desired by both businesses and urban residents

Modernizing the CBDEconomic

Page 34: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

The Milwaukee Freeway Demolition

Modernizing the CBDEconomic

Albuquerque is making long-term investments in its downtown

• Vision – A cooperative partnership led by Arcadia Land Company and the McCune Charitable Foundation. HDIC will make investments that will serve as catalysts for development leading to a vibrant mixed-used downtown

• Design – “Bury the box” is major design focus, large footprint uses, such as a new 14-screen movie theater and a 180,000 sf parking structure, have been hidden by pedestrian-friendly buildings with ground floor retail and office or residential above

• Financing – HDIC’s committed $200 million in “patient equity” matched by $8 million in City backed infrastructure improvements; HDIC will repay city with project revenues

• Mixed-Income – HDIC is working to create a mixed-income downtown. Share of profits will go to Downtown Albuquerque CivicTrust, a local nonprofit affordable housing developer

Historic Downtown Improvement Company Agenda

A Vision

Progress

Page 35: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Economic

The NJ Performing Arts Center enlivens downtown Newark

• $187 million investment in downtown Newark

• Built on 12 acres fronting the Newark River

• Leverages $60 million in private financing

• Facility includes a 3,000-seat opera house, a 2,500-seat concert hall, a 1,800-seat music theater, and a 600-seat dance and drama theater

• Center has spurred ancillary commercial and retail activity

Modernizing the CBD

Page 36: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

In the past, large bureaucracies made cities slow and inefficient

Underutilizing the asset:

Leveraging the asset:

Cities are using technology and economies of scale to make transactions smoother and faster

Economic ReformingGovernance

Page 37: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Economic

Fort Wayne is training Six-Sigma black belts to increaseefficiency in city government

• Water main replacement costs were reduced from an average of $61.00 per foot to $50.00 per foot

• Number of days to receive an Improvement Location Permit was reduced from an average of 51 days to 12 days

• Cost per change order for transportation engineering projects was reduced by 50%

•Fire code re-inspections were increased by 23% and the average number of days to a re-inspection was reduced from 51 to 34 days

•Missed trash pick-ups were reduced by 50%

•Responses to pothole complaints were reduced from an average of 21 hours to 3 hours

ReformingGovernance

Page 38: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

In the past, cities used placeless economic development strategies to attract knowledge economy industries

Underutilizing the asset:

Leveraging the asset:

Cities are leveraging the competitive advantages provided by thebuilt environment to compete in the new economy

Economic SupportingInnovation

Page 39: The Brookings Institution · 2005. 2. 10. · THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM $250 $500 $750 $1,000 1993 1995 1997 1999 2001 2003 GDP Growth In the 1990s, steady

THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM

Economic SupportingInnovation

Wireless internet access throughout Philadelphia will maximize the potential of residents, businesses and visitors

• Wireless Philadelphia is a $7-10 million plan to turn the entire city into a wireless internet hotspot by June 2005

• Wireless Philadelphia will introduce high-speed internet to areas currently beyond the reach of broadband. Businesses will be able to take advantage of tiered levels of service

• Philadelphia will work to provide educational opportunities and other city services over the wireless network

“…creating a truly digital city that supports economic development, social development and helps close the digital divide in this knowledge-based world “

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Economic SupportingInnovation

Richmond partnered with Virginia Commonwealth Universityto create the Virginia Bio-Technology Research Park

• 27,000 square feet of state of the art laboratories ideal for biotech start-ups in downtown Richmond

• More than 50 companies have started in the incubator, including 18 originating from VCU research

• 16 have graduated from the incubator – 3 are now publicly traded – creating hundreds of new jobs in the Richmond area

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In the past, cities concentrated poor families in high-rise public housing in neighborhoods surrounding their downtowns

Underutilizing the asset:

Leveraging the asset:

Cities are creating mixed-income communities of choice in neighborhoods in close proximity to central business districts

SocialCreating

Neighborhoodsof Choice

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SocialCreating

Neighborhoodsof Choice

In St. Louis, the Vaughn high rises were transformed intoa new mixed-income neighborhood of choice

• Four nine-story buildings• 656 units• Typical of 1950s-era,

urban renewal public housing towers

Vaughn High Rises in 1995 Murphy Park Homes

• Townhouses, garden apartments and single-family homes

• 413 units• “New Urbanist” design

and “defensible space” technique

Jefferson Elementary

• Leverages $5 million in corporate and philanthropic money

• Technologically advanced educational facilities

• New principal with wider control over teachers and curriculum

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Murphy Park and Jefferson Elementary are enjoying success

Murphy Park Residents Income distribution, 2003

Source: Richard Baron, James W. Rouse Lecture on the American City, 2003

0%

20%

40%

60%

80%

1999 2000 2001 2002 2002

Share of Jefferson Elementary students reading at grade level, 1999-2002

• The median household income rose by 18 percent between 1989 and 1999, compared to four percent regionally

• Unemployment fell by 35 percent from 1989 to 1999, compared to a 3.7 percent city wide increase

• Private investment in the form of residential and commercial development has since located in the surrounding area

Income Bracket Percent

Under $10,000 31%

$10,000 to $30,000 44%

$30,000 to $50,000 16%

Above $50,000 10%

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In the past, cities tried to attract middle class residents to cities

Underutilizing the asset:

Leveraging the asset:Cities are working hard to leverage federal resources with educational and homeownership opportunities to help low-income families build wealth and enter the middle class

Social Growinga Middle Class

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Social Growinga Middle Class

Chicago is leveraging the value of the Earned Income Creditand helping build a middle class

0

5

10

15

20

25

30

35

1975 1980 1985 1990 1995 2000

Number of Tax Filers Claiming EITC (Millions)

Total Amount of Credit (Billions)

The Value of the EITC Increased Substantially• Outreach partnership between Mayor Daley’s office, employers, business associations, and community groups

• Place information on EITC in bill inserts, paychecks, grocery store bags, McDonald’s tray liners

• Chicago-based Center for Law and Human Services coordinates free tax preparation at 20 sites throughout city

• $16M in EITC claimed at free tax assistance centers in 2001

• South Shore Bank helps EITC claimants without bank accounts to open savings accounts with their refunds

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In the past, cities were to quick to accept failing students

Underutilizing the asset:

Leveraging the asset:

Cities are putting together ambitious efforts to ensure that allstudents get a quality education

Social Reducing Disparities

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• $16 million literacy program that calls for all 97,000 Louisville Public School students to be reading at grade level in just 4 years

• Louisville Public Schools will spend $2 million per year to hire reading specialists, $2.3 million per year to add 23 classrooms to its early increase literacy childhood program, and training for teachers

• Greater Louisville Inc. will raise $2 million per year, get more adult volunteers for schools, encourage agencies that work with children to emphasize reading, and lobby state legislators on behalf of the schools

Social Reducing Disparities

Louisville has committed itself to ensuring that all studentsare reading

Louisville Every 1 Reads Initiative

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Systemic in effect

The common characteristic is that transformative efforts are large, informed, calculated bets

Cognizant of lessons from the past

Tailored to local market realities

Sustained & Scrutinized

The primary project focus may be economic, physical or social, but ultimately a project must generate secondary returns on investment across categories

Appropriate level of public participation

Well distributed benefits

Phasing

Intermittent evaluation

Motivated by sound research and reasoning

Insulated from unreasonable pressure by business and political interests

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How do we make transformative efforts the norm instead of the exception?

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To move forward, cities must act with market focus and discipline

Generate empirical diagnostics

Re-imagine the city

Develop an integrated/holistic agenda

Engage a new leadership class

Execute vision

Identify transformative efforts

Use information to drive markets and measure success

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To move forward, cities must be part of majoritarian coalitions to make structural reforms at the state and federal level

OlderSuburb

NewerSuburb

RuralArea

Housing SchoolsRetail

Quality of LifeCongestion

ConservationFarm Preservation

CentralCity

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State Policies

Make Work PayNew York

Regulating PredatoryInstitutions

North Carolina

Knowledge InvestmentCalifornia

“Fix it First”Pennsylvania

Brownfield Remediation

Ohio

Open Space PreservationNew Jersey

Landscape

Physical

Economic

Social

Workforce ReformWisconsin

Targeted InvestmentMassachusetts

School Reform

New city-suburban coalitions can address the need for systemic reform

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Near-term Strategy:

Protect community development spending

Long-term Strategy:

Find ways to leverage larger federal flows

The city-federal relationship needs to be reinvented over time

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Questions:

1.) Is this argument correct?

2.) Do you buy the notion of transformative efforts?

3.) What will it take to make transformative efforts the normal operating procedure?

4.) How do we ensure more systemic and structural change at the state & federal level?

5.) How do we build the coalitions to get there?

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www.brookings.edu/metro

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SourcesSlide 4- Major demographic changeBrookings Metro Program analysis of U.S. Census Bureau Data

Slide 5- Economic transformationGlobalization and Deindustrialization: Bureau of Economic AnalysisKnowledge Industries and Rapid Innovation: Ned Hill. "Innovation and Economic Development." Presentation to the White House Office of Sicence and Technology and the National Governors Association

Slide 6- Steady growthGDP Growth: Bureau of Economic AnalysisAll else: U.S. Census Bureau

Slide 7- Social ChangeMarriage and Families: U.S. Census BureauSegregation: Edward Glaeser and Jacob Vigdor. "Racial Segregation in the 2000 Census." Brookings, April 2001.Social Networks: Barry Wellman. "Are Personal Communities Local?" Social Networks 18, 3, Sept., 1996: 347-354.

Slide 9 - Dense layout

A. Ciccone and Robert E. Hall, 1996, “Productivity and the Density of Economic Activity,” American Economic Review 86: 54-70.G. Carlino and S. Chatterjee, 2001. Aggregate Metropolitan Employment Growth and the Deconcentration of Metropolitan Employment, Journal of Monetary Economics, 48, 549-583.

Slide 10 - Cities as CentersRichard Florida and Gary Gates. "Technology and Tolerance." Brookings, June 2001.

Slide 11 - Urban ResurgenceBrookings Metro Program analysis of data from U.S. Census Bureau and HUD State of the Cities Data System

Slide 12 - Cities in the New EconomyCEOs for Cities and RW Ventures and Shorebank. "Cities and Economic Prosperity." Spring 2001.

Slide 14- WeaknessesConcentrated Poverty: Paul Jargowsky. "Stunning Progress, Hidden Problems: The Dramatic Decline of Concentrated Poverty in the 1990s." Brookings, May 2003.

Brookings Metro Program analysis of data from U.S. Census Bureau Failing SchoolsParasitic Economies: Matthew Fellowes and Bruce Katz. "Roadblock to the Middle Class: The Higher Prices Charged to Philadelphia's Working Families." Brookings, Forthcoming.

Slide 15-Uneven GrowthEmployment decentralization: E. Glaeser. "Job Sprawl." Brookings, May 2001.All else: U.S. Census Bureau

Slide 20-Anemic Policies

Center of Law and Social Policy, http://www.clasp.org/publications/cc_myths.pdfIsabel Sawhill. One Percent for the Kids. The Brookings Institution. 2003.

Slide 27-Milwaukee FreewayCity of Milwaukee

Slide 29-ArlingtonPhilip Langdon. New Urban News. September 2003.

Slide 27-Denver ParksDenver Regional Transportation Districthttp://www.rtd-denver.com/fastracks/

Slide 32-Denver ParksCity of Denver Parks Departmenthttp://www.denvergov.org/dephome.asp?depid=1111

Slide 34-AlbuquerqueHDIChttp://nmdowntown.com/

Slide 35-NJPACNJPAChttp://www.njpac.org/

Slide 37-Fort WayneCity of Fort Waynehttp://www.cityoffortwayne.org/6sigma.htm

Slide 39-Wirless PhiladelphiaWireless Philadelphia Executive Committeehttp://www.phila.gov/wireless/index.html

Slide 40-Virgina Bio-techhttp://www.vabiotech.com/

Slide 43-Murphy ParkM. Turbov and V. Piper. "HOPE VI and Mixed Financed Redevelopment as a Catalyst for Neighborhood Change." Brookings, Forthcoming.

Slide 45-Chicago EITCCity of Chicago

Slide 47-LouisvilleLouisville Business Journal