Encouraging Growth within the Boundaries 2

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Encouraging Growth within the Boundaries 2

• ESP 171 Urban and Regional Planning
• S. Handy
• 5/15/08

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Recap Efficient Development

• Higher density development
• Mixed-use development

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Recap Types of Development

• Infill Development using unused land
• Redevelopment reusing previously used land
  and/or structures
• Brownfield
• Grayfield
• Adaptive Reuse

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Question Can redevelopment happen without
gentrification?
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Question What happens to parks and open space
when communities densify?
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Question Can this kind of development reduce
how much people drive?
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Question How can a city make it happen?
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Degrees of Effort

• Regulation to enable or require certain
  features when development happens
• Incentives to encourage development to happen
• Action to make development happen
• Economic Development
• Redevelopment Programs

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Economic Development

• A process by which local governments seek to use
  planning to guide private investment and business
  activity toward the goals it wants to achieve. -
  Fulton

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Economic Devt Situations

• Community is not growing
• encourage growth
• Community is growing
• encourage upward not outward

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Economic Devt Approaches

• Targeted public improvements
• e.g. repair streets
• Location of public facilities
• e.g. government agency office building
• Subsidies for businesses and developers
• e.g. build infrastructure or provide land
• Tax credits and regulatory streamlining
• But no break from CEQA!

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fiscalization of land use

• Sources of tax revenues for cities
• Sales tax controlled by state, 1 for local
• Property tax capped by Prop. 13, about 15 goes
  to cities

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fiscalization of land use

• Tax revenues vs. cost of providing property with
  public services
• e.g. shopping center lots of property tax,
  sales tax but few service demands
• e.g. residential subdivision little property
  tax, no sales tax but lots of service demands

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fiscalization of land use

• Cant increase tax rates but can increase tax
  base
• Sales tax Encourage businesses with big sales
• Property tax Encourage more valuable
  development

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Redevelopment

• A financial tool designed to facilitate real
  estate investment in targeted areas - Fulton

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California Community Redevelopment Law (CRL)

• Enacted in 1945 to eliminate urban blight
  conditions created by decades of depression, war,
  and neglect
• Enables city (or county) to create a
  Redevelopment Agency for specified
  redevelopment area
• Acquire property by eminent domain
• Create tax-increment financing districts

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• The mission of the Redevelopment Agency is to
  stimulate positive change, build a vibrant retail
  sector, a prestigious office address, diverse,
  high-quality residential neighborhoods, and to
  provide quality employment opportunities for all
  residents.
• The Redevelopment Agency facilitates
  redevelopment within the project area by
  encouraging investment by private developers and
  property owners, aggregating development sites
  and planning and entitling properties for
  development. Other activities include assisting
  in the financing and installation of public
  facilities and attracting and retaining
  businesses and targeted industry facilities.

Source http//www.ci.west-sacramento.ca.us/cityha
ll/departments/redev/default.cfm
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Tool 1. Eminent Domain

• Power of government to appropriate private
  property for its own use without owners consent,
  based on Fifth Amendment
• Just compensation
• Public use
• Condemnation is act of government exercising
  its right of eminent domain

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Eminent Domain

• Traditional Use acquire land for public
  projects like freeways

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Eminent Domain

• Use in Redevelopment
• Reassemble land that has been subdivided into
  larger parcels under single ownership
• Parcels may be sold to private developer at a
  loss as incentive for development

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http//www.sunnyvale.ca.gov/community-dev/planning
/draftdowntowneir/4.5.jpg
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http//www.drcog.org/documents/Land20Assembly20p
resentation.pdf
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Kelo vs. New London what constitutes public
use?
"concern for the economic welfare of New London."
stop the use of eminent domain to take away
their most sacred and important of possessions
their homes."
NLDC- PurposeThe New London Development
Corporation (NLDC) is committed to creating
public-private partnerships that act as an engine
for economic development in New London. The goals
of this private, not-for-profit organization are
to increase the city's tax base, to promote an
increase in the number of jobs available in the
city and to enhance the quality of life for New
London's residents.
Susette Kelo received notice of condemnation from
the NLDC (New London Development Corporation) the
day before Thanksgiving 2000.
Source http//www.ij.org/private_property/connect
icut/ and http//www.usatoday.com/news/nation/2004
-09-28-justices-property_x.htm
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Fort Trumbull Work Plan One of the biggest and
most exciting developments in New Londons
history is well underway in the Fort Trumbull
area of the city. The 90-acre peninsula
surrounding the historic Fort Trumbull on the
Thames River shoreline is being redeveloped into
a vibrant commercial and residential area that
will be an anchor for a new and improved New
London. The successful completion of the Fort
Trumbull Project will lead the way for the New
London Development Corporation to achieve our
goals of a higher tax base, more jobs, and a
higher quality of life for all who live and work
in New London.
Source http//www.nldc.org/business/fttrmbll.htm
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How do planners feel about Kelo?

• Importance of planning as basis for use of
  eminent domain, BUT
• Challenge of protecting the little guy from big
  business
• Potential backlash from property rights groups

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Tool 2. Tax Increment Financing

• Future growth in property tax revenues generated
  within redevelopment area used to finance
  redevelopment program itself, through bonds.

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http//www.realtor.org/smart_growth.nsf/docfiles/T
IFreport.pdf/FILE/TIFreport.pdf
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Tax Increment Financing Implications

• City gains control of tax revenues otherwise
  split with other jurisdictions
• 1993 legislation requires 25 pass through to
  county and school districts
• Required 20 set aside for low- and
  moderate-income housing (on-site or 2x off-site)

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Key Blight

• Redevelopment is a tool created by state law to
  assist local governments in eliminating blight
  from a designated. area, as well as to achieve
  the goals of development, reconstruction and
  rehabilitation of residential, commercial,
  industrial and retail districts. California
  Redevelopment Association

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Blight?

• Must focus on neighborhoods were blight is so bad
  that it constitutes a serious physical or
  economic burden on the community which cannot
  reasonably be expected to be reversed or
  alleviated by private enterprise or governmental
  action, or both, without redevelopment.

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http//bombit-themovie.com/blog/?p149akst_action
share-this http//www.danhagerman.com/images/Br
onx20Ghetto.jpg
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Blight?

• existence of buildings that are unsafe or
  unhealthy to live or work in,
• factors that prevent economically viable use of
  buildings,
• subdivided lots that are irregularly shaped and
  undersized and under multiple ownership,
• depreciated or stagnant property values,
• abnormally high business vacancies,
• abnormally low lease rates,
• high turnover,
• abandoned buildings or excessive vacant lots,
• the lack of necessary commercial facilities
  (e.g., grocery stores),
• residential overcrowding,
• an excess of bars and liquor stores
• a high crime rate that constitutes a serious
  threat to public safety and welfare.

Source http//www.msandr.com/resource_article.ph
p?articleID24
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San Jose Redevelopment AgencyWhat counts as
blight?
The SJRA's Downtown program is modeled after the
San Jose of 1900-1950 - a 24-hour city where
people lived, worked, and shopped. Today's
Downtown is a thriving urban center, offering an
amalgamation of cultural, professional, and
residential amenities.
2005 court case ruled that 30 acres declared
blighted without sufficient evidence
Source http//www.sjredevelopment.org/downtown.h
tm
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City officials could soon find themselves
defending contradictory claims On one hand, as
San Jose Mayor Ron Gonzales often says, San
Jose is a safe, livable city, but on the other
hand, it has concluded that 20 neighborhoods are
so blighted they burden the community.- Mike
Zapler, San Jose Mercury News - Aug 11, 2002
Source http//www.coalitionforredevelopmentrefor
m.org/references/index.php
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Source http//www.coalitionforredevelopmentreform
.org/a_ima/crr_message.pdf
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Redevelopment Process, in brief

• Redevelopment agency established by city or
  county
• Agency selects large survey area and hires
  consultant to determine areas that qualify as
  blighted agency must make finding of blight
• Agency selects proposed project area, prepares
  redevelopment plan map of area, development
  standards, financing scheme, plan to involve
  property owners
• Environmental Impact Report (EIR) prepared,
  property owners notified, public hearings held
• If residential areas, project area committee
  made up of citizens of area must be created.
• City Council adopts the plan must be consistent
  with General Plan.

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More Points About Redevelopment

• Manipulationsas described in Fulton and Shigley
  fewer since 1993
• Up to 10 of property tax revenues in the state
  diverted to redevelopment agencies! Dwarfs all
  other economic development efforts.
• Redevelopment plans are subject to CEQA! Adopted
  as ordinance by city.

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More Points About Redevelopment

• There is simply no other planning tool in
  California that gives local governments such
  sweeping power to operate pro-actively. - Fulton

417 Redevelopment agencies in California! 772
Redevelopment projects!
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Pasadena
Source http//www.cityofpasadena.net/planningandd
evelopment/development/redevelopment.asp
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Source http//www.mainstreet.org/
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Seattles Rainier Valley
Rainier Court Project3700 Rainier Avenue
SouthSeattle WA
Source http//www.seedseattle.org/development/cur
rent/index.htm
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Community Development Corporations (CDC)

• What they are
• Non-profit entity characterized by community
  based leadership and work primarily in housing
  production and/or job creation.
• Formed by residents, small business owners,
  congregations and other local stakeholders to
  revitalize a low and/or moderate income
  community.
• Produce affordable housing and create jobs for
  community residents, may provide a variety of
  social services to their target area.
• What impact theyve had
• 3,600 CDCs across the United States in 1998.
• Since their emergence in the late 1960s, CDCs
  have produced 247,000 private sector jobs and
  550,000 units of affordable housing.

Source http//www.ncced.org/aboutUs/faqs.html
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Suburban blight?
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Coming up

• Monday Section
• Midterms!
• Propositions 98 and 99
• Tuesday Lecture
• Matching growth to infrastructure
• Chapters 19 and 10
• Papers due!
• Office hours today at train station from 230 to
  4, in office from 415 to 500