the river as economic development

Ashley Sarver ED I -- 4/30/13

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The River as Economic Development

Introduction

An increasing trend in economic development is the use of the river as a

commodity to promote development and re-development of various kinds. While these

efforts may be in part due to the public’s general desire revitalize their downtown

riverfront areas, they also may feel the need to reconnect with nature. The conflicting

goal of maximizing the income from the commodity of the river exists amongst private,

public, and citizen stakeholders. Remediating land in post-industrial cities that abuts the

river for re-use to contribute to the tax base and diversity of the economy may impact the

river and community in harmful ways. Looking at examples of efforts in Milwaukee, WI

and Rockford, IL will guide the analysis of riparian development and the environmental,

economic, and social issues that arise in the different locales. Finally, the report will

address which community may have more successful redevelopment efforts along their

river as it relates to the environmental quality of the respective river.

Industry along the river

I choose to focus on Milwaukee, WI and Rockford, IL due to their histories of

industry along the river. Both of these cities, though different in size, once thrived on

their ability to manufacture and transport goods to other cities for a strong export-based

economy. In Milwaukee, the many breweries, the exporting of wheat, and the steel and

iron industry established intensive industrial uses along the Milwaukee River (Milwaukee

Timeline). In Rockford, the furniture industry was their strong export that made the city

prosper in northern Illinois (Browne & Rowe, 1891). Additionally the added advantage


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of being able to transport these items via rail and river added to the ability to export these

items, building the local economy. As Harris and Ullman state:

Cities are the focal points in the occupation and utilization of the earth by man. Both a product of and an influence on surrounding regions, they develop in definite patterns in response to economic and social needs. Cities are also paradoxes. Their rapid growth and large size testify to their superiority as a technique for the exploitation of the earth, yet by their success and consequent large size they often provide a poor local environment for man…As Adam Smith stated, the land must produce a surplus in order to support cities.

(Harris & Ullman, 1945) As the above passage shows there is a conflict between supporting a city and the

environment that is created by the industry that supports the size and ability of the city to

develop. Industries all over the country sent various pollutants into the air and water of

the communities they occupied in order to prosper and support the laborers and their

families. In the name of economic prosperity and the wealth of the nation, the

environment was seen as something to extract from so as to support human activity.

Transition

The 20th century changed things for production in the United States. Most of the

cities that were thriving on industry and production saw these same companies shifting to

overseas labor and the once-polluting lands became vacant and underutilized. Throughout

this, a shift in the global awareness of sustainability started to arise. At the same time,

global economics and changing technologies shifted these heavy industrial uses along

rivers to different countries or they were phased out altogether as technology advanced.

In addition to more advanced and cleaner technology, there were more regulations put on

the amount of pollutants that an industry could release into the air and water.


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Also in the 20th century, more research was done and people began to become

more familiar with some of the issues of sustainability that arose from intensive industrial

production and the form in which that production took place. In 1962, Silent Spring was

written which revealed research on toxicology and ecology, showing that agricultural

pesticides were having real effects on the health of humans and animals. Earth Day was

established in 1970 and peaceful demonstrations across the U.S. revealed the public’s

interest in the planet’s health. Especially important was the Federal government’s

intervention in 1972 to outline water quality goals with the Federal Water Pollution

Control Act that was meant to “restore and maintain the chemical, physical, and

biological integrity of our Nation’s waters” (Duda et al, 1982). In the 1980s some of the

first reports on global warming appeared and the United Nations and other NGOs began

focusing on a more sustainable future for the developed and developing nations. Al

Gore’s An Inconvenient Truth debuted and the issues of global warming and

sustainability began to set in the U.S. public mindset (The Sustainable Development

Timeline, 2010). All of these events led the public to think of how sustainability could be

achieved given an increasing population and new forms of production.

Where we are now

As trends in economies shifted in the U.S. from more industrial to service-based,

some of the intensive riverine industrial uses shut down and left vacant and contaminated

lots. Pollution studies have shown that “changes in the overall level of pollution as the

share of manufacturing in GDP waxes and wanes” as does the composition of the

pollution depending on what commodities are being manufactured (Auty, 1997). That


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being so, it can be expected that the river qualities in both Milwaukee and Rockford

increased as their percent share of manufacturing in their GDP decreased over time.

A new vision for the river

As many cities shift from industry to service-based economies with the added

factor of sustainability on the forefront of many people’s minds, many places are seeking

out to revitalize their riparian downtowns. Local governments and park districts,

including in Rockford and Milwaukee, are seeing the river as a public good that should

be made accessible to the public as made obvious by Rockford’s River District

Framework Plan (2003) and the Milwaukee Downtown Area Plan (2010). Urban dwellers

still are seeking out opportunities to interact with nature and in these places the river is

the most immediate connection. As people want more interaction with nature, they

become increasingly aware of the environmental state of that attribute. Additionally,

developers and the private sector are aware of the unique commodity that the river

presents. Rivers present a unique view, perhaps some tranquility, and a recreational

access point. There are limited acres in a community and in a region that abut this

resource, making the opportunities to capitalize on the asset more restricted and that

much more desirable.

Rockford’s River

Rockford, Illinois is a city of 152,222 people along the Rock River in northern

Illinois (U.S. Census Bureau, 2011). Rockford’s River District Framework Plan outlines

changes to occur in the downtown that support an area for their residents to live, work,

and play. The plan states that: “The river itself is the community’s greatest asset and


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should be the focus of future revitalization efforts” (Rockford’s River District Framework

Plan, 2003).

The plan addresses the issue of many vacant buildings, mostly former industrial uses,

that are difficult to redevelop due to the contaminated nature or brownfield status

of these lots. Additionally

they note existing difficulty

in accessing the Rock River

due to the fact that private

entities are currently abutting

the river in the downtown,

whether single family

residential or office use.

Some of the

principles that guide their recommendations are to: Capitalize on the River, Reinvent the

River District as a Premium and Diverse Residential District, and to Create a New Image.

These recommendations invoke a sense of a vibrant, well-kept community with public

and private investment guiding the changes.

A more recent plan from 2006, the Rockford Riverwalk Vision Plan specified

projects that could catalyze development downtown. As exists with many development

plans for communities that have a river flowing through their downtown, the plan

encourages river access and mixed-use development as well as a new feature such as a

bridge that acts to attract people downtown and to the river.

Source: Google maps


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Economic Development Tools in Place for Rock River

There are various economic development tools in place to help assist the riverine

efforts in Rockford. Firstly, the Illinois Department of Commerce and Economic

Opportunity (DCEO) has established the River Edge Redevelopment Zone (RERZ)

program that designated the zone along the Rock River in Rockford, as well as river

edges in three other cities, to achieve the goals of redeveloping the river’s edge through

various incentives. These incentives include: sales tax exemption, property tax

abatement, investment tax credits, jobs tax credits, environmental remediation tax credits,

dividend income deductions, interest income deductions, and building materials sales tax

exemptions (Illinois Department of Commerce and Economic Opportunity). Additionally

TIF districts have been established along the river’s edge downtown to help support these

redevelopment efforts as well (City of Rockford, 2006).

Milwaukee’s River

Milwaukee is a city five

times the size of Rockford at a

population of 597,867 and has

been developed in a more dense,

urban format. This city in

southeastern Wisconsin abuts

Lake Michigan and also has the

Milwaukee River meandering

through its center (U.S. Census

Buraeu, 2011). Milwaukee’s most recent downtown plans focus heavily on the river as an

Source: Google maps


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asset for development, especially the three RiverWalks; the Downtown RiverWalk,

Beerline RiverWalk, and Third Ward RiverWalk. These three RiverWalks are already

rather successful in terms of attracting private investment and providing open space along

the river. The 1999 plan where these RiverWalk linkages were first emphasized included

objectives to increase river usage as well as to promote continued improvement in the

river’s water quality (City of Milwaukee, 1999).

Economic Development Tools in Place for Milwaukee River

In order to fund development along the Milwaukee River, especially along its

RiverWalks, a few economic development tools have been established. First, much of

the area along the river downtown is within tax-increment districts (TIDs) in order to help

fund development and redevelopment (City of Milwaukee, 2010). Additionally, a

Business Improvement District (BID) has been established for RiverWalk properties so

as to help maintain the appearance of the RiverWalk and keep it in a functioning,

aesthetically pleasing condition (City of Milwaukee, 2013). On top of the financial tools

in place, the City has established design guidelines to ensure that future development

meets the standards of excellence that they put forward. These guidelines encourage

developing in a sustainable manner and in a way that provides public access. They go

even further to outline four kinds of access: physical, psychological, visual, and

economic. This public document emphasizes the health of the river as well as people’s

health as it relates to the river to the same degree it addresses the need for economic

revitalization and investment along it (City of Milwaukee, 1992).


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Larger Sustainability Commitments

Rockford

In order to look more into how these plans protect the health of the river, a quick

review of the cities’ commitment to larger sustainability issues will help inform the

overall inclusion of environment in development and redevelopment.

Rockford is known as “The Forest City” and includes in its planning documents

that the quality of the river should be promoted. In addition, one private not-for-profit

organization, the River District Association promotes the use but mostly development

along the Rock River (River District Association). The overall goals and events are more

similar to a Chamber of Commerce for the area; promoting new businesses, involvement

in the group, events to sponsor, etc.

When it comes to environmental organizations promoting the Rock River, there

exists one regional group, the Rock River Trail Initiative. This group produced a

document which focuses on the entire watershed of the Rock River from southern

Wisconsin to Moline, Illinois where the Rock meets with the Missisissippi to create a

network of riparian paths, rural and urban (Rock River Water Trail – Illinois and

Wisconsin – Inventory, Analysis, and Plan, 2012). The focus is not sustainable

development but rather a promotion and plan for access to the river. The group has goals

that aim for high water quality but their efforts are not focused in the downtown

Rockford area, nor do their initiatives have teeth by which development should occur in

urban areas to promote the water quality and ecology. One promising aspect for the

riparian development in the River District of Rockford is that the City of Rockford has


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signed on as a partner to this document they produced, showing they have some stake in

the future of the River.

Milwaukee

Milwaukee has made some more public commitments to promoting sustainable

development practices as they affect the river as well as their soil and carbon footprint.

The Milwaukee Energy Efficiency program (Me2) provides resources for homeowners,

businesses, and contractors to make more sustainable decisions with how they build. The

homeowner program provides rebates to homeowners who take various energy-saving

investments in their home, whether that by means of LED light bulbs, building materials,

or rain barrels. The website shows that buildings are incentivized through loan and grant

programs to take sustainable measures while building their establishments and they

provide a list of contractors familiar with sustainable building practices (Milwaukee

Energy Efficiency).

Additionally, the current mayor of Milwaukee, Mayor Tom Barrett has signed on

to participate in the Better Buildings Challenge, a program from the Department of

Energy that turns to corporate and civic leaders “to reduce their portfolio-wide energy use

by 20 percent by 2020 and showcase the solutions they use and the results they achieve”

(Milwaukee Better Buildings Challenge). One of the buildings that boasts its

participation in this program is City Center at 735, a commercial and office building right

on the Milwaukee River.

Private and community organizations have also jumped on board to support the

Milwaukee River. In addition to the public support for sustainability, organizations such

as the Milwaukee River Greenway Coalition, the Milwaukee Environmental Consortium,


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the Milwaukee Riverkeeper, and the River Revitalization Foundation are all

organizations promoting the ecologic health of the Milwaukee River (Milwaukee River

Greenway Organization).

The presence of organizations and institutions in place does not necessarily reflect

the quality of the water of the rivers in their respective cities. However, I argue that the

existence of more stakeholders puts more pressure on the City to ensure that sustainable

practices are in place; whether that be through rehabilitation rather than tearing down and

building new, reducing storm water runoff into the river through more efficient

technology, or including public access with open green space. These elements would

guide the way development is permitted by the City to take place along their sacred

resource of the river.

In Milwaukee, there are organizations in place separate from economic

institutions that focus on the health of the Milwaukee River and the public’s access to it.

In Rockford, only private institutions that support the economic vitality of the River

District are in place to support the area. The one Rock River Initiative group that

promotes access to the Rock River is not a group that focuses on the health of the river

specifically downtown Rockford, though their efforts may be enough to help guide future

development.

Milwaukee being a larger city with a more expansive metro area means there are

more people who utilize the river as a resource in a concentrated spot. Rockford does not

have the population that Milwaukee does and perhaps for this reason lacks institutions

that lobby for the environmental health of the river. General economic circumstances

may lead to this factor as well. A city, able to be more specific about the type of


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development they want also puts them in a position to require more stringent guidelines

for the projects that are approved. Milwaukee boasts an increase in retail, restaurant, and

public improvement projects along its RiverWalks.

In summation, the numerous groups active in Milwaukee supporting the ecology

of the Milwaukee River make this water source a less likely candidate for future

contamination from point sources within the Milwaukee city boundaries. Rockford’s

smaller population and focus on the health of the Rock River from citizen and

environmental groups puts the Rock River at greater danger for pollutants to enter its

waters from point sources in Rockford.

What river development means for the community

Social

A study from the University of Maryland shows “that water quality has a

significant effect on property values” (Leggett & Bockstael, 1999). While their study

focuses on Chesapeake Bay properties, it is possible, without access to other more river-

specific studies that one can apply the same logic to riverine properties in both urban and

rural contexts. The study does address the possibility of problems in their study due to

multicollinearity when considering neighborhood variables, such as undesirable

neighbors that are emitting the pollutants to the air and water. Regardless, they conclude

that “these collinear variables does little harm to the intent of the regression” (Leggett

and Bockstael, 1999).

If we assume that as the water quality increases, that property values will also

increase along the river, then it is quite possible the residents currently living alongside

the river would have more difficulty affording the homes or apartments in which they


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were residing. If they cannot afford it and must move elsewhere, the character of the

riverine developments in downtown Milwaukee and Rockford will effectively change.

As housing stock is either rehabilitated or built new in downtowns and along the river, a

goal cited in the plans for development in the downtowns and river districts of

Milwaukee and Rockford, higher-income earners will occupy the area (Brueckner &

Rosenthal, 2009). “Yuppy” or the young urban professionals that can afford the property

along the river. The property that caters to their preference of living close to a resource

for recreation may be highly sought out, increasing demand, and consequently housing

prices and rents.

This phenomenon is likely to occur in both study areas and is an element that both

locales should pay heed to as their redevelopment efforts continue along the river.

Thinking now of what guidelines are in place to minimize the number of people impacted

and displaced is a measure worth taking.

Stormwater

The area along the two study area rivers differ in terms of their adjacent uses.

Just north of the Rockford downtown, adjacent uses along the Rock River are

predominantly single-family residential with large yards and a mature tree canopy. Any

changes in the future to this area to make it increasingly dense will mean increased

impervious surfaces and increased stress on the stormwater management system.

Stormwater runoff may enter the river, increasing the pollutants that are able to enter the

river flow as they are unable to soak into the green space in the large yards of the single-

family residences (Bedient et al, 1980). However, if the old industrial buildings are

rehabbed or the brownfields are remediated to implement low-impact development


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practices that decrease the amount of storm water run off into the river, some of the

negative aspects of development can be mitigated.

The City of Milwaukee’s adjacent uses are predominantly mixed-use higher

density buildings in their downtown. The density there has been established so any future

efforts would only be able to reduce storm water runoff by implementing more

impervious surface and low impact development.

Future development and redevelopment efforts will be more impacting to the

Rock River than to the Milwaukee due to its current status of adjacent uses. More

density will mean more strain on Rockford’s water managements system and could cause

more runoff containing pollutants into the water source, the Rock River. However,

increasing density or rehabbing older buildings in Milwaukee, an already dense area, is

unlikely to introduce new strain on the City of Milwaukee and the quality of its river

water.

Conclusion

Various factors will affect the quality of the Rock and Milwaukee Rivers as their

respective cities work on riverine development plans. Though both cities have industrial

backgrounds and may be considered “post-industrial” cities, their future development

along their rivers and the quality of the water of their rivers may differ.

The factors at hand in Milwaukee reflect the possibility for the Milwaukee River

to suffer less environmentally at their future efforts in redevelopment due to their limited

single-family residential possible conversions, the prevalence of environmental

organizations focusing on the river, and the design guidelines they have in place that

specify development and access standards.


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To contrast, Rockford currently has a prevalence of single-family residential uses

along its river, has only one regional environmental group that focuses on the river, and

does not have supplemental design guidelines for development along the property

adjacent the river. Dangers of increased housing values and consequent gentrification are

strong for Rockford with a large housing stock along its riverbanks.

In final summation, using the river as an economic development technique has the

possibility bettering public access to the river as well as the quality of the water of the

river. Guidelines should be put in place at the same time as the riverine development

plans so as to mitigate some of the problems that may arise. When guidelines are clearly

established, the quality of the river water may have a greater chance of improving as the

land adjacent is redeveloped.


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the river as economic development

Documents

respective river

postindustrial cities

iron industry

furniture industry

histories of industry

economic prosperity

local economy

consequent large size