Call number PA578-001 MW 10:00 - 11:15
PA578-002 MW 01:50 - 03:05
PLANNING AND POLICY MAKING AND THE BUILT ENVIRONMENT
Spring, 2008
Monday-Wednesday 10:00 to 11:15 AM or 1:50 to 3:05 PM
Main Campus- Room
Instructor: Bill Markle cell: 312-953-9225 e-mail: markle@iit.edu
This course is intended to introduce students to governmental planning and policy making and their impact on the built environment. Using Chicago and nearby municipal areas as examples, the course acquaints students with the basic theories of urban and regional planning and development, and the regulatory tools and techniques used by government to impact the built environment. The course also includes material on housing, environmental protection, brownfields, historic preservation, neo-urbanism and growth management, and various policy making processes that determine governmental policies intended to influence the built environment.
Course requirements:
This course will consist of lectures and discussion. Attendance is highly recommended, since participation is part of the grade for the course.
Students will be required to prepare one paper of 6 to 10 pages in length, on a topic to be arranged with the instructor in advance, and participate in a group planning project. Results from the project will be presented to the rest of the class during the last class period or two. Please note that the customary prohibitions on plagiarism apply. Papers found to have plagiarized segments will result in a grade of "F" for the course.
I would appreciate your participation in tours of development in Chicago, which I will arrange for one of the Friday seminars. At least two more of the Friday seminars will be related to the material of this course- a visit to the Northeastern Illinois Planning Commission (NIPC- or as it is now known, the Chicago Metropolitan Agency for Planning- CMAP), and presentations on planning for police, fire, education, and health care, which Scott Peters will arrange. The Friday tours would encompass a visit to a Chicago small business industrial incubator facility, residential real estate projects, public-private partnership projects in Chicago, and a visit with a Chicago non-profit social service agency. I hope to have speakers on various aspects of the course topic, but speaker selections are subject to change.
Grading will be based on the following:
Class participation, quizzes, and midterm exam 25%
Paper 25% Project 25% Final exam 25%
There are no prerequisites
Text is Contemporary Urban Planning, 7th Edition, by John M. Levy (Prentice Hall, 2005) and a set of readings taken from recent journal articles, which should be available on a CD I will provide. Other readings will be assigned and available online or distributed by the instructor. For most (but not all) of the readings provided to you on the CD, I have indicated that they are optional. If you have the time and interest, read these at your leisure. Try to glance at the title and first couple of paragraphs of optional readings, so you know the main idea of the article. These articles are there to give you additional information and to place American planning in the context of American culture, law, and economics. Your answers on exams will be more insightful if you read these articles.
With regard to readings for the course- there are many readings, as you know, and some are complex. Some are academic in nature; most are professional in nature. Some are merely magazine articles or press releases, but these provide you with some useful information. The readings are selected for you to get some understanding of American ways of doing things, or to demonstrate the complexities of real estate and urban issues, or suggest that experts do not all agree.
Please do not worry about reading all articles in great detail, unless it appeals to you. Given the complexity of the subject matter, and the large amount of reading listed for the course, I have marked most of the online readings as optional. I would like you to get the main ideas of each article, not be able to reproduce the arguments. We have too much material to cover to spend six hours a night reading closely. Read the optional readings if you have time and interest, but try to get the main idea of the article even if you do not read it all.
My plan for the course is to provide some background stories in class, some of my experience, and some explanation to complement the readings. I do not expect to discuss the readings in class in any great detail. Please feel free to ask
questions and ask for explanations, but I do not want to spend time analyzing the usefulness of a particular academic argument in class.
Some articles will have a brief explanation at the beginning, or, in the case of articles in .pdf format, a brief explanation may be nearby with the title of the article and ‘”Student Note” in the title. Have fun reading.
–wdm
PLANNING AND POLICY MAKING AND THE BUILT ENVIRONMENT
SYLLABUS
Class No. Assignment
Sessions 1 and 2- Chicago Overview
01-23 Syllabus read through; some Chicago history and planning; location,
location, location; timing, timing, timing; railroads; steel; farming
tools; trade; pre fire, post fire- parks, sewers, water supply; 1893
Columbian Exposition; Burnham Plan, density and travel times;
expressways and suburbs; towns without people. Race, TARP, federal
anti-urban policies
01-28 Continuation of 01-23; models of urban politics- city as a growth machine, city as an entertainment machine; the Party and the government; Quiz #1
Required Reading for sessions 1 and 2:
Levy, Chapters 1 through 6. Do not read closely. Get the general
idea. Better to read quickly twice than slowly once.
On the CD provided to you- some links to plans and planning agencies
in the Chicago area- you can learn a great deal by looking at these
web sites on your own.
What is Planning? - notes from the American Planning Association
Optional Reading for sessions 1 and 2:
World Facts Index- Chicago, @ http://worldfacts.us/US-Chicago.htm
Some Background on the Burnham Plan. David Takesuye, Urban Land
Institute, 2000.
Terry Nichols Clark and Richard Lloyd, The City as an Entertainment Machine. Draft prepared for annual meeting of the American Sociological Association, 2000. Research report #454.
Terry Nichols Clark, editor. Trees and Real Violins: Building Post Industrial Chicago. Summary as prepared by wdm.
Metropolitan Decentralization in Chicago. Chicago Case Study
Working Group, Great Cities Institute, University of Illinois.July, 2001.
Manufacturing Industrial Decline: The Politics of Economic Change in
Chicago, 1955-1998. Joel Rast. Journal of Urban Affairs, 23:2,
(2001) pages 175-190.
Session 3- Federal, State, and Local Government Agencies and
Programs
01-30 Background on government levels and branches pertinent to
planning and land use, including a brief introduction to federal
government agencies whose policies affect local land use.
Housing and Urban Development, Department of Transportation,
Environmental Protection Agency, Economic Development
Administration; some Illinois and Chicago web sites
Keep in mind that China has what we call a unitary government- all
power ultimately comes from Beijing. The US has a federal system of
government- states are (to some extent, in some ways) independent
of the federal government in Washington, D.C. Federal agency
regulations generally have the force of law, and generally are binding
on states and local governments (environmental laws, highway design
standards, definitions of people eligible for housing assistance). But
federal agency grant programs- grants that provide funding for
planning, infrastructure, transportation, and housing- are generally
discretionary on the part of the federal government. There is nothing
in the US Constitution that requires the federal government to assist
states or local governments with infrastructure or planning or housing.
Local governments have the most control over local land use. But local
government derive a large share of their income from taxes that are
related to real estate (property taxes, sales taxes), and the pressure
from citizens to keep taxes low is very high. Mayors, governors, and
legislators lose their jobs if they don’t appear to make efforts to keep
taxes low or reduce them. The pressure is so high that, in a curious
way, US local governments are much more dependent on the federal
government for regulations and infrastructure financing than local
governments are dependent on Beijing in China. In the US, it seems,
local independence and tax opposition has led to local dependence on
Washington, D.C. for big projects.
Required Reading:
Summary of Notable Federal Housing Programs and Initiatives.
Northeast- Midwest Institute, 2006
Summary of Notable Federal Infrastructure Programs and Initiatives for
Water and Transportation. Northeast- Midwest Institute, 2006
Summary of Notable Federal Brownfield and Vacant Property Programs
and Initiatives. Northeast- Midwest Institute, 2006
Optional Reading:
On the CD are some descriptions of federal government agencies,
showing subagencies and administrations within each agency. Read
these only if you are interested.
US Department of Transportation, from US Government Manual
(description of the US DOT administrations and functional agencies)
Also- Departments of Housing and Urban Development, Commerce,
Energy, Environmental Protection Agency, Treasury, Agriculture,
National Science Foundation, Farm Credit Agency, and Consumer
Product Safety Commission.
Important Federal Legislation Relating to Urban Transportation
Interstate Highway General Information (US DOT, FHWA)
Federal Transit Administration (FTA) Programs (US DOT, FTA)
Also- the State of Illinois Transportation Plan
Web sites for Illinois and City of Chicago departments
Sessions 4, 5, and 6- Markets, Market Failure, Limitations on
Government Planning in the US
Required Reading: Levy, Chapters 5 and 6.
Chapter 1 of The Mystery of Capital- Why Capitalism Triumphs in the
West and Fails Everywhere Else, by Hernando de Soto, @
http://www.ild.org.pe/tmoc/cp1-en.htm A short Chinese language
version is also available.
The planning function in the US is almost completely concerned with
physical planning for land use, and planning of most any kind
(including environmental, water resources, and economic) is seldom
performed at a scale greater than that of the region- meaning a small
group of counties.
What is called planning at the level of the state, multistate
region, or federal level is most often simply a compilation of plans
derived from lower levels, or the plan consists of goals and policies
which still depend on local actions to be implemented.
Planning for other than land use- health, health care, social services,
schooling, environmental concerns, economic development- cannot be
said to be done in any meaningful way. There is no federal
government planning for economic development,
industrial development, rural development, science policy,
technology policy, or for investment of any sort. You may find
articles that talk about planning for these areas of interest, but such
articles are really proposals for future action from interested groups,
projections of need from the government, or present a case for
needed government spending. The links between plans and
implementation are very weak, unless accompanied by federal
government regulations. There are policy plans- either
proposals or actual government plans- that contain policy statements,
but without the ability to change local land use, and with levels of
government that are independent of each other, policy plans often do
not mean much. Policies generally affect internal government
administrative actions, rather than private land use. Government
regulations, however, can and do affect private land use, especially
with regard to environmental laws. Policy statements that are not in
the form of government regulations are not law, just proposals.
02-04 Markets in real estate; changing preferences over time; niche markets
and niche developers. Dominant trends- developers, users, investors
02-06 Market failure and government failure- externalities, lack of perfect
neoclassical free market conditions, lumpiness, long run and short
run; competition between governments, lack of uniformity in law,
knowledge asymmetry problems; low income housing and festival
marketplaces as examples of government distortion of markets
The concept of private property in real estate is fundamental to all
considerations of planning, economic development, and public policy
in the US.
One can view nearly all planning conflicts in the US- and many larger
public policy questions as well- as conflict over the continuing
balancing act between the private right to do with property what one
wishes, and the desire and need for the public to have some influence
over that right. What is the corresponding Chinese conflict?
How local governments make their money- and why local
government interests are similar to those of real estate developers.
02-11 Appraisal of property value
What influences market values for real estate
Real estate markets are lumpy, and do not approximate theoretical
free market conditions. Externalities are very important in real
estate.
The concept of value in real estate- appraisal and income valuation
Sessions 7, 8 and 9- Major Planning Tools at the Municipal (Local
Government) Level
Required Reading: Levy, Chapter 8 (The Comprehensive Plan) and
Chapter 9 (Tools of Land Use Planning)
Optional Reading:
Comprehensive Planning Fundamentals. Mike Koles. University of
Wisconsin Extension. 2001.
Planning 1-2-3. Metropolitan Mayors' Caucus, 2006.
The Planning Commissioner's Book, Parts 1-4. California Governor's
Office of Planning and Research. No date.
Zoning and the Comprehensive Plan. James A. Coon Local
Government Technical Series. New York State Department of State,
December, 1999.
Eight Illinois Supreme Court Zoning Decisions.
Transportation Planning Resource Guide. Wisconsin Department of
Transportation. March, 2001.
Evaluating Plan Implementation. Lucie Laurian, Maxine Day, et.al.
Journal of the American Planning Association (70,4) Autumn, 2004.
CDOT: Chicago's Transportation Infrastructure Manager. Joan Berry,
Northwestern University. March 4, 1996. A good description of
transportation planning and implementation in Chicago.
Brett Baden and Don Coursey, An Examination of the Effects of Impact Fees on Chicago’s Suburbs. Heartland Institute, 1998.
Market-Oriented Planning: Principles and Tools for the 21st Century.
Samuel R. Staley and Lynn Scarlett. Planning and Markets, 5:1 (1999).
Market-Oriented Land-Use Planning: A Conceptual Note. Hans Lind.
Planning and Markets, 5:1 (1999). @
http://www-pam.usc.edu/volume5/v5i1a5print.html
02-13 Quiz #2; Four things government can do with real estate. Preparation of a comprehensive plan. Elements of a plan. What is in the plan and not in the plan. When you look at comprehensive plans, either at the municipal or regional level, please note what is not included- any mention of land use economics, or housing prices, or land use capacity.
02-18 Zoning
Note- there really are no physical planning tools at the state level.
With the exception of some environmental regulations and some
housing related laws, all zoning and land use decisions in the US are
made by local (municipal) governments.
02-20 Other tools- subdivision regulations, site plan review, how individuals
and community organizations and elected
representatives (aldermen, in Chicago) affect the development
process. The concepts of eminent domain and taking.
Local financing for local projects – TIF and bonds and federal grants
Session 10, 11 and 12- Neighborhood Planning
Required Reading: Levy, Chapters 10 (Urban Design), 11
(Urban Renewal and Community Development), and
13 (Economic Development Planning)
WDM notes on community development
Please look at the Chicago Department of Planning web site
"Rogers Park neighbors oppose Devon/Rockwell project." By Angela
Caputo. Pioneer Press online News Star (March 22, 2006)
Also, the follow up article from October of 2007.
Optional Readings:
Taken for Granted. Casey Sanchez. The Chicago Reporter (September-
October, 2005), @
http://www.chicagoreporter.com/2005/9-2005/contract/contractprint.htm
Disconnect in the Hollow State: The Pivotal Role of Organizational
Capacity in Community Based Development Organizations. Patricia
Fredericksen and Roseanne London. Public Administration Review, (60:3)
May June 2000.
Is There a Dark Side to Government Support for Nonprofits? Arthur C.
Brooks. Public Administration Review, (60:3) May June 2000.
Xi Zhang. Comparison Between American and Chinese Community Building. Prepared for course in Urban and Regional Development Process, Illinois Institute of Technology, Spring, 2004. @ http://comm-org.utoledo.edu/papers2004/zhangxi.htm
Howard Husock. "Don't Let CDCs Fool You." City Journal, Summer 2001 | Vol. No. 3
@ http://www.city-journal.org/html/11_3_dont_let_cdcs.html
Alan Ehrenhalt. "Community and the Corner Store." The Communitarian Network, @ http://www.gwu.edu/~ccps/pop_corner.html
Arthur Evenchik. "the local initiatives support corporation." Civnet Journal, october-december 1997 ï vol. 1, no. 4 @
http://www.civnet.org/journal/issue4/creaeven.htm
Jane Shull. "The Case for Community Development." ( 1977) from Institute for Civic Values website, @
gopher://gopher.civic.net:2400/00/cdiscv/cmtyandneighb/case
Yuan Ren. NGOs, Public Participation and Urban Community Development:
Social Reform in Local Urban Governance in China, OPTIONAL @
http://mumford.cas.albany.edu/chinanet/conferences/Yuan.doc
Federal Policy Ideas for Community Revitalization. Matt Kane, Charlie
Bartsch, and Barbara Wells. Northeast-Midwest Institute. April, 2006.
02-25 Quiz #3; Concept of a neighborhood plan, planning by whom for
whom, role of community organizations; special districts and SSA.
Please look at the City of Chicago Department of Planning web site -
http://egov.cityofchicago.org/city/webportal/portalEntityHomeAction.do?entityName=Planning+And+Development&entityNameEnumValue=32
Look at one of the community plans featured on this site. Please
note what is not included on this web site- any mention of
economics, or capacity of the land as zoned, or any relationship
between the capacity of retail uses to serve the nearby residential
population and their incomes.
02-26 Dealing with community groups and neighborhood issues; who
represents the
community; organizational structures and boards of directors; concept of turf and public involvement; community based and welfare based. Examples of good and bad ways of involving groups in project definition and evaluation (CTA Howard Street El Station, Park District Lincoln Park Plan, etc.) Public participation models- ward congress, informal neighborhood group approvals; parking, on and off street; what happens when people can't pay their taxes?; abandoned properties and government rights and duties; how interests of government, community, and developer are similar and different; ways of bringing about change
Also- in preparation for the presentation on Friday, January 29 by Jim Ford, review of some Chicago area regional planning agency names and acronyms-
NIPC, CATS, CMAP, MWRD, RTA, Pace, CTA, Metropolitan Mayors’ Caucus, MPC, Civic Federation, Metropolis 2020, IDOT, Commercial Club
03-03 Community control of the community; radical planning; unintended
consequences. TIF and municipal bond introduction- public financing
tools
Note: Presentation on Friday, February 29, by Jim Ford, former director of the
Northeastern Illinois Planning Commission (NIPC), now the Chicago
Metropolitan Agency for Planning (CMAP). Jim will tell you everything there is
to know about regional planning in the US.
Session 13- Questions and Comments; Introduction of Course Project
03-05
Quiz #4 and
Major Team Assignment:
The project is a team assignment, requiring students to provide recommended planning processes and a general development plan for an area near the campus. Time to work in teams will be provided with instructor assistance available on several Friday mornings. Product required includes written planning process recommendation and written proposal to guide the development in the selected area. Papers will be due the third week in April and the last class or two will be devoted to presentations.
Please note: Bus tour on Friday, March 7. Theme is industrial development in Chicago the past and future. This is a tour of the south side of Chicago and one or two incubator projects.
Session 14- Midterm Exam
03-10
Note- spring break 03-17 through 03-22 no class this week; St. Patrick’s Day is 03-17- check on date for parade downtown
Sessions 15, 16, and 17- Regional Planning
Required Reading: Levy, Chapters 12 (Transportation Planning), 13
(Economic Development Planning), and 16 (Planning for Metropolitan
Regions)
Following are sections from the approved regional plan and from a
privately prepared regional plan. Please look at these, without reading
them in detail.
2040 Regional Framework Plan. Chapters 5 and 7. Northeastern
Illinois Planning Commisison, 2005. This is the approved regional
plan for the northeastern Illinois region.
Common Ground- Preview of the 2040 Regional Framework Plan.
Northeastern Illinois Planning Commission, October, 2004.
Chicago Metropolis 2020: Preparing Metropolitan Chicago for the
21st Century. Elmer Johnson. The Commercial Club of Chicago,
January, 1999.
2020 Community Life Report. The Commercial Club of Chicago (no
date). This is a background report prepared as part of the Chicago
2020 plan.
Dreams, Plans, and Reality: A Critique of Chicago Metropolis 2020.
Edwin S. Mills. Heartland Institute, Heartland Policy Study No. 97,
February 1, 2002.
Bonnie Lindstrom, "Regional Cooperation and Sustainable Growth: A Study of Nine Councils of Government in the Northeastern Illinois Region." UIC Great Cities Institute Working Papers, November 1997. @
http://www.uic.edu/cuppa/gci/publications/working%20papers/pdf/Regional%20Cooperation.pdf
scroll to paper from this site
Optional Readings: (You really should look at some of these)
Chicago Metropolitics: A Regional Agenda for Members of the US
Congress, by Myron Orfield. A Report to the Brookings Institution,
February, 1998.
The Metropolitan Transportation Planning Process: Key Issues- A Briefing
Notebook for Transportation Decision-makers, Officials, and Staff. A joint
publication of the Federal Highway Administration and the Federal Transit
Administration of the US Department of Transportation, @
http://www.planning.dot.gov/documents/BriefingBook/BBook.htm
The above article is a very good description of the metropolitan
transportation planning process throughout the US, including public
participation, modeling, and the relationship of transportation planning to
federal funding of projects and other regional planning.
Shared Path 2030- The Regional Transportation Plan for Northeastern
Illinois. Chicago Area Transportation Study (updated occasionally) @
http://www.sp2030.com/
The above article is the approved transportation plan for northeastern
Illinois. Note that it was not part of the accepted plan by NIPC. Now that
NIPC and CATS are combined in one agency, it is possible to do actual
comprehensive planning.
For those of you who are interested, I have additional materials on
population forecasting models and transportation planning models, and on
more specific areas of planning, such as air quality, wastewater, water
supply, solid waste disposal, and river quality. Ask me about this material if
you wish.
03-12 Role of regional planning in the US; what regional planning means; lack
of relationship between local plans and regional plans; functional and
comprehensive plans; turf wars. Regional planning reflects both federal
regulations and local desires.
planning as a public and private activity- Metropolis 2020 and the NIPC
plan; who funds planning
03-24 forecasts of population, households, jobs, and the economy
03-26 The transportation planning process; multi-state planning
Please note: Bus tour on Friday, March 28. Real estate projects and the Rogers Park Community Council, a non-profit community organization that is also a social service agency for the State of Illinois and the City of Chicago.
Sessions 18 and 19- Brownfields, Environmental Protection, and
Energy
03-31 Quiz #5; What are brownfields? How can we return them to
productive use? What government funds are available?
04-02 Some market and non-market based approaches to environmental
protection and energy conservation.
Required Readings: Levy, Chapter 15 (Energy and Environmental
Planning)
Optional Readings:
If you are interested in this topic, the articles below will be useful.
Brownfields Redevelopment. International Economic Development
Council. Chapters 1-7. You may skim this entire report. (no date-
approximately 2003), @
http://www.iedconline.org/?p=Brownfields_Resource_Center
Guidelines for Preparing Economic Analyses. US Environmental Protection
Agency, September, 2000. This is a long document. Skim as you wish.
Lessons from the American Experiment with Market-Based Environmental
Policies. Robert Stavins. Harvard Kennedy School of Government Working
Paper Series, April, 2002.
Creating Markets for Ecosystem Services. Greg Murtough, et. al. Australia
Productivity Commission, Canberra, 2002.
Integration of Planning and NEPA Processes. Federal Highway Administration
and Federal Transit Administration. Internal Memorandum. February 22,
2005.
The Chicago Climate Exchange. Michael Walsh, Environmental Financial
Products, LLC, 2002.
Capital Pollution Solution? Jeff Goodell, New York Times (July 30, 2006).
David Gelernter. "The Immorality of Environmentalism." City Journal. Autumn 1996
Vol. 6, No. 4, @ http://www.cityjournal.org/html/6_4_the_immorality.html
"City Approves 'Carbon Tax' in Effort to Reduce Gas Emissions." Katie Kelley.
November 18, 2006. New York Times Online @
http://www.nytimes.com/2006/11/18/us/18carbon.html?_r=1&th=&oref=slogin&emc=th&pagewanted=print
Session 20- Preservation- Areas, Landmarks, and Old Buildings
04-07 Historic preservation has become almost as sacred as the right of
developers to demolish old buildings. In addition, the rehabilitation
of old buildings for new uses has been critical to the redevelopment
of cities. How does the federal government assist?
Readings: Levy- nothing
Please read or review some of the following readings:
National Trust for Historic Preservation 2005 Annual Report. National Trust for Historic Preservation web site.
Glossary of preservation related terms. National Trust for Historic Preservation web site.
Historic Rehabilitation Tax Credits. National Trust for Historic Preservation web site.
Main Street Program. National Trust for Historic Preservation web site.
National Trust Community Investment Corporation (NTCIC). National Trust for Historic Preservation web site.
State Tax Incentives for Historic Preservation. National Trust for Historic Preservation web site.
Preservationists in Chicago Fear Losing Ground to Condos. Libby Sander. New York Times, November 7, 2006, @
file:///Users/bill/Desktop/PA567001%20Pl,%20Pol,%20Built%20Environ/Session%208-%20Preservation/Preservationists%20in%20Chicago%20Fear%20Losing%20Ground%20to%20Condos%20-%20New%20York%20Times.html
Session 21 and 22- Neo-Urbanism, Growth Management, and the
Return to the Cities
04-09 Quiz #6; Discusses public and professional reaction to the low
04-14 density urban development that has occurred in the U.S. during the period of the 20th century after World War II (sprawl) and the newer theory and practices designed to increase urban densities and avoid sprawl. Why are people returning to Chicago and New York and Boston?
Required Readings:
Levy, Chapter 14 (Growth Management Planning)
Optional Readings:
Containment Policies for Urban Sprawl. M. Mason
Gaffney. From Approaches to the Study of Urbanization.
Governmental Research Center, University of Kansas, 1964.
Connecting the Dots. Remarks by Richard Benner. 1000 Friends of
Oregon, 2002 Conference, December 7, 2002.
Attitudes Toward Growth Management in Florida. Timothy Chapin
and Charles Connerly. Journal of the American Planning Association,
70:4 (Autumn, 2004)
The Successful Few. Pierre Filion, Heidi Hoernig, Trudi Bunting, and
Gary Sands. Journal of the American Planning Association,
70:3 (Summer, 2004)
New Urbanism in the Central City: A Case Study of Pittsburgh.
Sabrina Deitrick and Cliff Ellis. Journal of the American Planning
Association, 70:4 (Autumn, 2004)
Urban Containment and Central City Revitalization. Arthur Nelson,
et. al. Journal of the American Planning Association (70:4) Autumn,
2004.
Is Urban Planning "Creeping Socialism?" Randal O'Toole. The
Independent Review, IV:4 (Spring, 2000).
Downtown Revitalization in Urban Neighborhoods and Small Cities.
Barbara Wells. Northeast-Midwest Institute. (no date).
Governors' Smart Growth Initiatives. Barbara Wells. Northeast-
Midwest Institute. July, 2001.
Smart Growth and the Clean Water Act. James L. Mcelfish and
Susan Casey-Lefkowitz. Northeast-Midwest Institute, 2001.
Smart Growth and the Clean Air Act. Curtis Moore. Northeast-
Midwest Institute, 2001.
This Land is Our Land: A Call to Arms for State and Federal Policy
Reform. Bruce Katz. Northeast-Midwest Institute. March 9, 2005.
Comment: Where the Oregon Trail Meets the Silk Road: Why China's
Path to Sustainability Should Bypass Oregon. Samuel A.
Rodabough. Pacific Rim Law and Policy Journal. January, 2004.
Sessions 23, 24, and 25- Housing Markets, including Condominiums
The next three sessions will discuss housing in the US,
focusing particularly on low income housing as supported by the
federal government. A presentation by Rick Gentry of the
National Equity Fund is tentatively scheduled for Friday, April
18. The National Equity Fund is a syndicator of low income federal
income tax credits, which are sold to large private corporations in
exchange for money to invest in low income housing projects.
4-16 Introduction to low income housing in the US; distinction between public
housing, low income housing tax credit projects, section 8 housing, and
other local plans
04-21 Housing markets generally; cyclical nature, relation to interest rates, developers as herd animals; funding sources for bigger projects
04-23 Secondary financing markets and the current crisis in housing in the US
Required Readings: (for next three sessions)
Levy, Chapter 7 (Social Issues)
Summary of Notable Federal Housing Programs and Initiatives. Northeast Midwest
Institute. 2006.
Optional Readings: (You really should look at some of these)
The Evolution of Low Income Housing Policy, 1949-1999. Charles Orlebeke.
Housing Policy Debate, 11,2. Fannie Mae Foundation, 2000. @
www.fanniemaefoundation.org/programs/hpd/v11i2-orlebeke.shtml
Obstacles to Regional Housing Solutions: A Comparison of Four Metropolitan
Areas. Victoria Basolo and Dorian Hastings. Journal of Urban Affairs, (25, 4)
2003
Homes for a Changing Region. Chicago Metropolis 2020 and the Metropolitan
Mayors Caucus, September, 2005.
Recommendations for Developing Attainable Workforce Housing in the
Chicago Region. Metropolis 2020, Summer, 2002.
Present Realities, Future Prospects: Chicago's Low Income Housing Tax Credit
Portfolio. Summary Report 2002. Chicago Rehab Network.
Affordable Housing in the Chicago Region: Perspectives and Strategies.
Roosevelt University Institute for Metropolitan Affairs and Loyola University
Center for Urban Research and Learning, 2003.
2003 Advocates Guide to Housing and Community Development Policy.
National Low Income Housing Coalition, 2003.
Introduction to the Housing Voucher Program. Center on Budget and Policy
Priorities. July 6, 2007.
Affordable Housing: The Suburban Solution. Andrew Rice. New York Times,
March 5, 2006.
" We Don't Need Subsidized Housing." Howard Husock. City Journal, VII, 1
(Winter, 1997), @
http://www.city-journal.org/html/7_1_we_dont_need.html
The State of the Nation's Housing- 2002. Joint Center for Housing Studies of
Harvard University, 2002.
The Cost Effectiveness of the Low Income Housing Tax Credit Relative to
Vouchers: Evidence from Six Metropolitan Areas. Lan Deng, Housing Policy
Debate, Fannie Mae Foundation, (XVI, 3/4) 1999.
Housing in the 21st Century. Urban Land Institute and Center for Housing Policy.
March, 1999.
Session 26- Project Work
04-28 You should have done some significant work on projects
by this time. Class time will be used for questions, advice,
comments.
Session 27- Class Project Work and Where Does Public Policy Come
From?
04-30 Quiz #7; Some review- in the US, how does public policy get
made? Who makes public policy- Congress? The President?
executive branch agencies? States? The "people"? Tools of
government, implementation, negotiation, power, and decision-
making individually and in groups.
Readings: The New Governance and the Tools of Public Action: An
Introduction. (Pages 1-22) by Lester Salamon. Chapter 1 of The
Tools of Government- A Guide to the New Governance, edited by
Lester Salamon. New York: Oxford University Press, 2002.
Notes on government branches and policy making
Optional Readings:
Policy Formation- links to think tanks and other non-profit
Organizations
Public Policy Web notes. Wayne Mayes. Various dates. These notes
are quite simplistic, and not really at graduate level of sophistication.
Nevertheless, they may be useful for some of you who need some
refreshing of your notes from the Policy course. The notes discuss
policy formation, agenda setting, implementation, and evaluation.
There are 20 short readings in this folder.
Power at the Local Level: Growth Coalition Theory. G. William
Domhoff, in Who Rules America? @
http://sociology.ucsc.edu/whorulesamerica/power/local.html
The Ford Foundation in the Inner City: Forging an Alliance with
Neighborhood Activists. G. William Domhoff, in Who Rules
America?, @
http://sociology.ucsc.edu/whorulesamerica/power/ford_foundation.html
The Practice of Deliberative Democracy: Results from Four Large
Scale Trials. Edward Weeks. Public Administrative Review, 60:4
(July-August, 2000) OPTIONAL
notes on decision-making (wdm)
Note: Presentation on Friday, May 2, by Peter M. Rub, a CPA (certified public accountant) on housing markets generally- irrational exuberance in US housing prices, secondary markets, and using your house as a credit card.
Session 28- Evaluation
05-05 How do we evaluate public programs? How much evaluation do we
really do?
Required Readings: Notes on policy analysis- Stuart Nagle, University of Illinois
Optional Readings:
Policy Impact, Evaluation, and Change. Chapter 7 in Public
Policymaking, by James E. Anderson. 5th edition. Boston: Houghton
Mifflin, 2003. Pages 245-276. WDM HANDOUT
Evaluation Linkages: Assessing Implementation Scenarios. Chapter 8 in The Politics of Policy Implementation, by Robert Nakamura and Frank Smallwood. New York: St. Martin's Press, 1980. WDM HANDOUT
Putting More Public in Policy Analysis. Lawrence C. Walters, James Aydelotte, and Jessica Miller. Public Administration Review (60:4) July-August, 2000.
Seeing Through the Fog: Policymaking with Uncertain Forecasts. Henry J. Aaron. Journal of Policy Analysis and Management (19:2) Spring, 2000.
Timothy Bartik and Richard Bingham. “Can Economic Development Programs Be Evaluated?” Upjohn Institute Staff Working Paper 95-29, @ http://www.upjohninst.org/ecdevhub.html Scroll to paper from this site.
An Assessment of the Costs, Benefits, and Overall Impacts of the State of Ohio's Economic Development Programs. Final Report. May 28, 1999. Urban Center, Cleveland State University. This is a very long report, which you may skim as you wish.
Community Development Block Grant, HUD Self Assessment.
HUD Budget for 2005.
A Brief Guide for Performance Measurement in Local Government.
National Center for Public Productivity, @
http://www.andromeda.rutgers.edu/%7Encpp/cdgp/teaching/biref-manual.pdf
W.K. Kellogg Foundation Evaluation Handbook. Kellogg Foundation, January 1998.
US EPA External Evaluation Links
Evaluation Games: The Political Dimension in Evaluation and Accountability Relationships. Vic Murray, School of Public Administration, University of Victoria, Canada.
Types of Evaluation: Choosing the Right One for You. Vic Murray, School of Public Administration, University of Victoria, Canada.
Measuring Public Policy: The Case of Beer Keg Registration Laws. Alexander Wagenaar, Eileen Harwood, Cindy Silanoff, and Traci Toomey. Evaluation and Program Planning, 28 (2005).
The Management Performance of US States. David King, Richard Zeckhauser, and Mark Kim. Harvard University Faculty Research Working Paper Series. July, 2004.
Session 29- Project Presentations
05-07
Final Exam
05-12 or 05-14 (see schedule)
Sunday, May 18, 2008
PA 577 Syllabus and Course Information
call number PA577-077 MW 11:25-12:40
PA 577-077
THE URBAN AND REGIONAL DEVELOPMENT PROCESS- Spring, 2008
Monday-Wednesday 11:25 to 12:40 PM
Instructor- Bill Markle cell: 312-953-9225 e-mail: markle@iit.edu
The purpose of this course is to provide an overview of real estate and economic development processes, public and private, for public administrators. An understanding of development and real estate is important not just for planners and engineers. Real estate is also the focus of much social policy and police work. Police officers involved in community policing now must know something about getting buildings torn down. Social workers and educators find their work influenced greatly by the physical conditions in which people live. Obviously, engineers, agency administrators, and planners deal with real estate issues every day.
The course will provide an introduction to public and private elements of development, including government influence at the federal, state, regional, and local levels; dealing with community groups and developers; and the means by which local governments can influence what gets built and what does not. There will be some discussion of real estate finance, but this is not the focus of the course. Given the presence of our honored guests from China, we will discuss issues of economics and globalization not normally covered in this course.
This course consists of two parts. Part A, sessions 1 through 9, are about real estate and real estate development. Part B, sessions 10 through 28, are about development, broadly construed.
This is a synthesis course, in the sense that you should start putting together some of the ideas from the earlier core courses. We will draw on public finance, introduction to public administration, and other courses in our discussions.
Students will be required to prepare one paper of 18 pages in length, or one 12 page and one 6 page paper, or three papers of six pages in length, on a topic to be arranged with the instructor in advance. Papers will be presented to the rest of the class during the last class period or two. In your paper, please write for your fellow students. Tell them what they need to know of your topic. Please note that the customary prohibitions on plagiarism apply. Papers found to have plagiarized segments will result in a grade of "F" for the course.
I would appreciate your participation in tours of development in Chicago, which I hope to arrange. The tours would encompass a visit to a Chicago small business industrial incubator facility, residential real estate projects, public-private partnership projects in Chicago, and visit with a Chicago non-profit social service agency staff. I hope to have speakers on various aspects of the course topic, but speaker selections are subject to change.
Text for this course is The Competitive Advantage of Nations, by Michael E. Porter. Porter is the business professor who popularized the concept of industry clusters, and his business oriented approach will contrast nicely with the other government focused economic development articles. Porter's book is national or international in focus, even though much of this course will have a distinctly local or regional focus.
Grading will be based on the following:
Class participation, including quiz results 25% Note- the quiz will always be based on material covered in previous lectures
Midterm exam 25%
Paper 25%
Final exam 25%
There are no prerequisites.
For some readings, I have indicated that they are optional. If you have the time and interest, read these at your leisure. Try to glance at the title and first couple of paragraphs of optional readings, so you know the main idea of the article. The readings are selected for you to get some understanding of American ways of doing things, or to demonstrate the complexities of real estate and urban issues, or suggest that experts do not all agree.
My plan for the course is to provide some background stories in class, some of my experience, and some explanation to complement the readings. I do not expect to discuss the readings in class in any great detail. Please feel free to ask questions and ask for explanations, but I do not want to spend time analyzing the usefulness of a particular academic argument in class.
Some articles will have a brief explanation at the beginning, or, in the case of articles in .pdf format, a brief explanation may be nearby with the title of the article and 'Student Note" in the title. Have fun reading.
-wdm
URBAN AND REGIONAL DEVELOPMENT PROCESS
PA 577-077
Spring, 2008
SYLLABUS
Class No. Assignment
Sessions 01 and 02 Development and Real Estate Overview
01-23 syllabus read-through; why cities exist; how Chicago came to look as it
does; changes in processes and politics; some Chicago history is provided
in readings; growth machine and entertainment machine
01-28 distinguish growth, development, and innovation; define competitiveness;
some big ideas about development in the US;
Why governments like real estate; real estate as a focal point of public policy issues and private plans; why real estate is so burdened with paperwork; private property rights; regulating and taking; history of planning; planning theory; cleavages between theory and practice (people vs. place prosperity, plans vs. money, class divisions, how meaning is made in development); economic view of the world and the biologic view of the world (individuals vs. systems, growth vs. evolution)
Required Reading:
Porter, Competitive Advantage of Nations, Chapter 1, The Need for a New Paradigm.
Student note- why is a new paradigm suggested by Porter?
Terry Nichols Clark and Richard Lloyd, The City as an Entertainment Machine. Draft prepared for annual meeting of the American Sociological Association, 2000. Research report #454. Skim this article.
Terry Nichols Clark, editor. Trees and Real Violins: Building Post Industrial Chicago. Summary as prepared by wdm. Skim this article.
Optional Reading:
Metropolitan Decentralization in Chicago. Chicago Case Study Working Group, Great Cities Institute, University of Illinois. July, 2001.
Manufacturing Industrial Decline: The Politics of Economic Change in
Chicago, 1955-1998. Joel Rast. Journal of Urban Affairs, 23:2,
(2001) pages 175-190.
Sessions 3, 4, 5, and 6 Real Estate Definitions, Concepts, Law, and Markets
01-30 Short Quiz #1; Definitions- real estate; improvements; title; bundle
of rights; fee simple; tenant; mortgage; note; others
02-04 Processes- surveys, subdivision, recording, easements; eminent domain
02-06 Appraisal, condominium, cooperative; review of documents
02-11 Short Quiz #2; Property taxes, markets, and local knowledge
Required Reading:
(Handout) - Bankability Glossary (Community Development Research Center, New School for Social Research, New York, no date)
(Handout) - Glossary of Words and Terms Relating to Real Estate
(Handout) - some real estate documents - we will discuss in class
notes on condominiums and cooperatives
Brief articles on Illinois and Cook County Property Tax System
A brief note on property appraisal by the county for property taxes- wdm
Hernando de Soto, The Mystery of Capital- Why Capitalism Triumphs in the West and Fails Everywhere Else- Chapter 1, The Five Mysteries of Capital, @
http://www.ild.org.pe/tmoc/cp1-en.htm NOTE: this article is also available in Chinese. You should read this article.
Optional Reading:
Press Release - The Sveriges Riksbank (Bank of Sweden) Prize
in Economic Sciences in Memory of Alfred Nobel The Royal Swedish Academy Of Sciences, 15 October 1991 @
http://www.nobel.se/economics/laureates/1991/press.html
The item above is a description of the work by Ronald Coase that led to the Nobel Prize in Economics. Coase's work showed that transactions costs are not negligible, which leads to businesses deciding what work will be done within the company and which work will be done outside.
Robert Maurer and Anne Paugam. "Reform Toward Ad Valorem Property Tax in Transition Economies: Fiscal and Land Use Benefits," World Bank Land and Real Estate Initiative, Number 13 (Background Series), June, 2000, @
www1.worldbank.org/wbiep/decentralization/library9/Esw-tax2.PDF
Felicity Barringer. Property Rights Law May Alter Oregon Landscape, New York Times, November 26, 2004, @
http://www.nytimes.com/2004/11/26/national/26property.html?ex=1102473096&ei=1&en=0b254123e36afb2b
Commercial Real Estate and Construction Lending- Comptroller's Handbook. Comptroller of the Currency, Administrator of National Banks, 1998. Note- this is an reading, for those of you interested in how the US government regulators look at commercial lending for real estate.
The Historical Evolution of State and Local Tax Systems. Edward Howe and Donald Reeb. Unpublished.
Alternative Perspectives on Property Taxation. Joan Youngman. Lincoln Institute of Land Policy. Unpublished, available online.
Program on the People's Republic of China. This is a portion of the Lincoln Institute web site that describes their work in China.
@ http://www.lincolninst.edu/aboutlincoln/prc.asp
An Analysis of the Graded Property Tax. Robert Schwab and Amy Rehder Harris. October, 1997.
Preferential Property Tax Treatment of Land. Jane Malme. Lincoln Institute of Land Policy. 1993. Unpublished, available online.
The Impact of Urban Land Taxation- The Pittsburgh Experience. Wallace Oates and Robert Schwab, Lincoln Institute of Land Policy. November, 1996. Unpublished, available online.
Session 07, 08, and 09 Real Estate Pro Formas, Financing, and Bonds
02-13 Short Quiz #3; Capitalization rate; mortgages and collateral; time
stream of income flows
02-18 What is a building worth? How do we decide on a price? Cash flow,
interest rates, discounted cash flow. Income producing properties and
development businesses (condominiums)
02-20 Government bonds for financing
Required Reading:
Real Estate Finance Textbook. National Development Council, 1990. Chapters 1-4 and 6. This will be handed out in class. Read this.
Bond Financing Notes
Small Business Start-Up Information. Federal Reserve Bank of New York, @
http://www.newyorkfed.org/education/addpub/credit.html
Pekin, Illinois, Water Works articles, 1st one @
http://www.historicpeoria.com/select.cfm?chose=130
Optional Reading:
Financial Intermediation. Gary Gorton and Andrew Winton. Warton Financial Institutions Center, University of Pennsylvania. March 1, 2002.
Paul Seidenstat. Organizing Water and Wastewater Industries to Meet the Challenges of the Twenty-First Century. Public Administration and Management: An Interactive Journal. 8,2 (2003), pages 69-99, @
http://www.pamij.com/8-2/pam8-2-3.htm
Jones Lang LaSalle Hotels (Press Release) Hotel Online Special Report:
Convention Center Financing - Public Entities / Private Entities -Who Should
Take the Risk? @
http://www.hotel-online.com/News/PR2003_1st/Feb03_CCFinancing.html
Powerful Reason for Choosing Public Power. Area Development Online, December 2003, @ http://www.area-development.com/Pages/Features/Feature8A.html
Competitive Era Fails to Shrink Electric Bills. David Cay Johnston. New York Times, October 15, 2006.
Measuring Local Government Credit Risk and Improving Creditworthiness. George E. Petersen. The World Bank. March, 1998.
Mobilizing Domestic Capital Markets for Infrastructure Financing: International Experience and Lessons for China. Anjali Kumar, et. al. World Bank Discussion Paper No. 377, September,1997.
Fiscal Federalism and Economic Reform in China. Roy Bahl and Jorge Martinez-Vasquez. International Studies Program, Working Paper 03-13, Andrew Young School of Policy Studies, Georgia State University. May, 2003.
The System of Equalization Transfers in China. Jorge Martinez-Vasquez and Zhihua Zhang. International Studies Program, Working Paper 03-12, Andrew Young School of Policy Studies, Georgia State University. July, 2003.
Sessions 10, 11, and 12 The Concept of Economic Development
02-25 Short Quiz #4; Definitions of economic growth, development, and
innovation; some history and current theories of national
development, from Solow to Romer.
02-27 The Porter model of national competitive advantage - the diamond
03-03 US federal agencies involved in development- HUD, EDA, SBA.
There is a lot of reading here, and I know you probably cannot do it all. Skim what you can. The Porter diamond is on page 127 of my text.
Required Reading:
Porter, Competitive Advantage of Nations, Chapter 3- Determinants of National Competitive Advantage. (pp 69-130)
Chapters 3, 4, 5, and 16 in Economic Development, by Michael P. Todaro and
Stephen C. Smith. 8th Edition. New York: Addison Wesley, 2003. Read chapters 3, 4, 5 and 16 at your leisure. This book is a widely used regional and international development text. You will find many chapters in this book of interest to you. A copy is available from me.
Definitions of Economic Development on the Web
Economic and Cultural Requirements for Markets to Operate Efficiently. From Economic Development, Todaro and Smith (8th edition, 2003, pages 698-700)
Summary of Notable Federal Business and Economic Development Programs and Initiatives. Northeast-Midwest Institute, 2006
Optional Reading:
New Growth Theory, Technology, and Learning: A Practitioner's Guide. Joseph
Cortright. Reviews of Economic Development Literature and Practice, No. 4.
(2001).
Matt Kane, Public Sector Economic Development: Concepts and Approaches, Northeast-Midwest Institute, November, 2004. @
www.nemw.org/econdevelopment.pdf
The Effects of State and Local Public Policies on Economic Development: An
Overview. Katherine Bradbury, Yolanda Kodrzycki, and Robert Tannenwald.
New England Economic Review, Federal Reserve Bank of Boston, March-April,
1997.
The Effects of State and Local Public Services on Economic Development.
Ronald Fisher. New England Economic Review, Federal Reserve Bank of Boston,
March-April, 1997.
State Regulatory Policy and Economic Development. Robert Tannenwald. New
England Economic Review, Federal Reserve Bank of Boston, March-April,
1997.
Taxation and Economic Development: State of the Literature. Michael
Wasylenko. New England Economic Review, Federal Reserve Bank of Boston, March-April, 1997.
Tax and Spending Incentives and Enterprize Zones. Peter Fisher and Alan Peters. New England Economic Review, Federal Reserve Bank of Boston, March-April, 1997.
Policy Implications: A Panel Discussion. Moderated by Patricia Flynn. New
England Economic Review, Federal Reserve Bank of Boston, March-April,
1997.
Agency Description, Department of Housing and Urban Development. Federal
Government Manual. This is a good description of HUD Program Areas.
Programs of HUD. Major Mortgage, Grant, Assistance, and Regulatory Programs.
2005. This is a long document, but thorough.
Frequently Asked Questions, US Small Business Administration. Contains
clickable directions to specific programs of the SBA.
SBA Technical Assistance, Financial Assistance, Contracting Assistance, and
Disaster Recovery Assistance. Clickable.
Programs of the Economic Development Administration. US Department of
Commerce, Economic Development Administration. January, 1999.
Sessions 13, 14, and 15 Local Economic Development and Tax Increment Financing
03-05 Dealing with community groups and neighborhood issues; who represents
the community; organizational structures and boards of directors; concept
of turf and public involvement; community based and welfare based.
Examples of good and bad ways of involving groups in project definition
and evaluation (CTA Howard Street El Station, Park District Lincoln Park Plan,
etc.) Public participation models- ward congress, informal neighborhood
group approvals; parking, on and off street; what happens when people can't
pay their taxes?; abandoned properties and government rights and duties;
how interests of government, community, and developer are similar and
different;
03-10 local government actions; people prosperity and place prosperity; dealing
with an exogenous world; principal-agent theory; ICNC
03-12 Short Quiz #5; Tax Increment Financing
Required Reading:
Porter, The Competitive Advantage of Nations, Chapter 10- The Competitive Development of National Economies (pp 543-573). Please note that this chapter does not have much bearing on the topic of local economic development and TIF.
Community Economic Development in the US- Some Notes. William D. Markle, August, 2005 (unpublished). Read this.
Optional Reading:
Timothy Bartik. Local Economic Development Policies. Upjohn Institute Staff Working Paper No. 03-91. January 2003. @ http://ideas.repec.org/e/pba76.html
Peter Gordon and Harry W. Richardson. "Hayek and Cities: Guidelines for Regional Scientists." University of Southern California, April 1999,
HYPERLINK "http://www.rcf.usc.edu/~pgordon/hayek.html"
http://www.rcf.usc.edu/~pgordon/hayek.html
Urban and Regional Development Process Page 9
Bill Steigerwald, Death by Wrecking Ball- Pittsburg and the Politics of Eminent Domain. Reason Magazine, June 2000, @
http://reason.com/0006/fe.bs.death.shtml
Tax Increment Financing. A Civic Federation Issue Brief. November 12, 2007
Edward L. Glaeser. "Why Economists Still Like Cities," in City Journal, Spring
1996, Vol. 6, No. 2, @
http://www.cityjournal.org/html/6_2_why_economists.html
Edward Glaeser. "Public Ownership in the American City." Harvard Institute of Economic Research, Discussion Paper 1930. October, 2001. @
post.economics.harvard.edu/hier/2001papers/HIER1930.pdf
William J. Stern. "The Unexpected Lessons of Times Square's Comeback." City Journal, IX, 4 (Autumn, 1999), @
http://www.city-journal.org/html/9_4_the_unexpected.html
(no author cited). "Key Principles: A Discussion of the Programs' Guiding Principles." US Department of Housing and Urban Development." also the subsequent material on Empowerment Zones and related programs. US Department of Housing and Urban Development, @
http://www.hud.gov/offices/cpd/economicdevelopment/programs/rc/businesses/successstories.cfm
Goldhirsh Group, Inc. "Going Underground- Opportunity In the Shadow Economy." Part 2 of article. May, 1994. Web site presence no longer available.
Howard Husock. " Enterprising Van Drivers Collide With Regulation." City Journal, VI, 1 (Winter, 1996). @ http://www.city-journal.org/html/6_1_enterprising_van.html
Samuel R. Staley, Howard Husock, David J. Bobb, H. Sterling Burnett,
Laura Creasy, and Wade Hudson. "Giving a Leg Up to Bootstrap Entrepreneurship: Expanding Economic Opportunity in America's Urban Centers." Reason Public Policy Institute Policy Study No. 277, February 2001, @ http://www.rppi.org/ps277.html
Urban and Regional Development Process Page 10
Please note: Bus tour on Friday, March 7. Theme is industrial development in Chicago the past and future. This is a tour of the south side of Chicago and one or two incubator projects.
No class March 17-22. Note- St. Patrick’s Day is March 17. Check schedules for downtown parade.
Session 16 Midterm Exam
03-24
Urban and Regional Development Process Page 11
Sessions 17, 18, and 19 Economic Geography and Regional Development
03-26 A little location theory to go along with the policy.
03-31 There are few regional economic development efforts in the US. Groups of
counties may cooperate on projects or programs; sometimes states
cooperate with each other; there are a few organizations, like the TVA,
that are multi-state that have economic development as a top priority.
04-02 Short Quiz #6; why economic geography doesn’t tell us much about
business development
Required Reading:
Chapters 18, 19, and 20 in Regional Economic Development in the European Union and North America, by Morris L. Sweet. Westport, CT: Praeger Publishers, 1999. This is a very nice summary of US programs and is worth reading.
Rethinking Federal Policy for Regional Economic Development. Mark Drabenscott. Federal Reserve Bank of Kansas City, Economic Review, First Quarter 2006.
Who Really Makes the iPod? Hal R. Varian. New York Times, June 28, 2007.
Optional Reading:
Please look at (don't read in detail) some of the following articles or reports-
From Regional Development to Local Development: On the Life, Death, and Rebirth(?) of Regional Science as a Policy Relevant Science. Mario Polese. Canadian Journal of Regional Science, XXIII, 3 (1999) @ www.lib.unb.ca/Texts/CJRS/Autumn99/Polese.pdf
State Strategies for the New Economy. National Governors' Association, 2000.
The Political Economy of Gubernatorial Smokestack Chasing: Bad Policy and Bad Politics? Robert Turner, 2003. (unpublished).
Regional Economic Development in the United States. Janis Purdy.
Presentation to the Joint Conference on Regionalism Below the State-Level
in Germany and the United States, Speyer, Germany, March 31 - April 2, 1998.
Urban and Regional Development Process Page 12
Greg LeRoy, "Eight Concrete Ways to Curtail the Economic War Among the States" Prepared for "Reigning in the Competition for Capital," Humphrey Institute of Public Affairs, University of Minnesota, Minneapolis, Minnesota, February 27-28, 2004. @
www.hhh.umn.edu/projects/prie/leroy_paper.pdf
Peter Fisher, "The Fiscal Consequences of the Competition for Capital." Prepared for "Reigning in the Competition for Capital," Humphrey Institute of Public Affairs,
University of Minnesota, Minneapolis, Minnesota, February 27-28, 2004. @
www.hhh.umn.edu/projects/prie/fisher_paper.pdf
Urban and Regional Development Process
Tennessee Valley Authority (TVA) description from Federal Government Manual
The Illinois Jobs through Competitiveness Act (EDGE Program) June,
1999, @ http://www.redco.org/data/edge.html
State of Illinois Enterprise Zone Program, @
http://www.redco.org/data/ezone.html
I-Street archive readings (three) i-Street, @
http://www.i-street.com/magazinearchive/yr2002
An Energy Plan for the Great Lakes. Dick Munson, Northeast-Midwest Institute, September, 2005, @ http://www.nemw.org/Great%20Lakes%20energy.pdf
Trade Patterns and the Economy of the Northern Great Plains: A Baseline Report, Northeast-Midwest Institute, July, 2001.
An Overview of Transportation Infrastructure and Services in the Northern Great Plains.
The Northeast-Midwest Institute, July 2000.
Please note: Bus tour on Friday, March 28. Real estate projects and the Rogers Park Community Council, a non-profit community organization that is also a social service agency for the State of Illinois and the City of Chicago.
Urban and Regional Development Process Page 13
Sessions 20, 21, 22 and 23 Industrial Development
04-07 US trade policy, science policy, subsidies to industry at federal, state, and
local levels - smokestack chasing and extortion; MEP
04-09 Science and tech parks, CRADA
04-14 Small Business Investment Companies (SBIC)
04-16 Discussion of the Porter chapter
Required Reading:
Porter, The Competitive Advantage of Nations, Chapter 12- Government Policy (pp 617-682)
Industrial Development Policy in the US- Some Notes. William D. Markle, 2006.
Optional Reading:
Industrial and Regional Clusters: Concepts and Comparative Applications. (Chapter 2)
Edward M. Bergman and Edward J. Feser. Web Book of Regional Science, @ http://www.rri.wvu.edu/WebBook/Bergman-Feser/chapter2.htm
Cluster-based Economic Development, Part 2: An Overview of Growth Theories and Concepts. Krishna M. Akundi. Texas Economic Development Business and Industry Data Center. (undated, probably 2000)
A Governor's Guide to Cluster Based Economic Development. National Governor's Association, 2002.
Trends in Rural Manufacturing. Chad Wilkerson. The Main Street Economist. Federal Reserve Bank of Kansas City, December, 2001.
Regional Differences in the Competitive Characteristics of US Machine Tool Companies. Ronald Kalafsky and Alan Macpherson. Growth and Change (33:3) Summer, 2002.
Seed and Venture Capital- State Experiences and Options (May, 2006) National Association of Seed and Venture Funds
SBA Size Standards
Urban and Regional Development Process Page 14
Small Business Investment Company (SBIC) Program- Frequently Asked Questions
Small Business Financing Sources - notes
Some notes on small business incubators, from the National Business Incubation Association
David Hearn, Deborah Markley, and Kevin McNamara. "Local Jobs and Income Growth: The Decatur Industry and Technology Center Impacts." Purdue University, Center for Rural Development, October, 1994.
A National Benchmarking Analysis of Technology Business Incubator Performance and Practices. National Business Incubation Association. September 30, 2002.
Sessions 24 and 25 Rural Development
04-21 Short Quiz #7; How do federal and state governments support
infrastructure, housing, social services, and economic development in rural
areas?
04-23 How does the federal government support farms and ranches?
Required Reading:
Federalism, Farm Policy, and Rural Economic Development. William D. Markle (2006) Read this as best you can. Some of the farm policy programs will probably be unintelligible to you (as they are to most Americans).
Urban and Regional Development Process Page 15
Sessions 26 and 27 Globalism and the Information Revolution
04-28 The US is a mixture of free market and controlled market philosophy.
04-30 Development, both public and private, is affected by federal government
policies, tax policies, macroeconomic policies, and trade policies as well as
by local conditions. There are underlying conditions (location, location,
location!) that, over time, can dwarf the ebb and flow of politics and policy.
Chicago has been the beneficiary of politics and policy, the butt of policy,
and now seems the beneficiary again. Most planning efforts seem like
icing on the cake, or worse, rearranging the deck chairs.
Global investment requires global thinking. Understanding of current
thinking about global development is necessary for sound regional and even
municipal planning. But "globalism" is not all good, and not even all that
well understood. Some perspectives are provided in the readings.
changing technologies, lock-in, increasing returns to scale
Required Reading: Porter, Chapter 13 - National Agendas skim this
Optional Reading:
Read these articles at your leisure. They will be of interest to you in thinking about the future of cities. For these course sessions, try to read some of what follows-
Readings: Peter Eisinger and Charles Smith. "Globalization and Metropolitan Well-Being in the United States." A paper prepared for presentation at the meetings of the International Sociology Association, Montreal, July 26-August 1, 1998, @
http://www.src.uchicago.edu/depts/faui/Eis_Smi.doc
Robert Batterson and Murray Wiedenbaum. The Pros and Cons of Globalization. Center for the Study of American Business, Washington University in St. Louis. January, 2001.
Amartya Sen. "How to Judge Globalism." The American Prospect, 13-1 (January 1, 2002), @ http://www.prospect.org/print/V13/1/sen-a.html
Urban and Regional Development Process Page 16
Joseph E. Stiglitz. Review- A Fair Deal for the World. The New York Review of Books, May 23, 2002, @ www.nybooks.com/articles/15403
George Reisman. "Defending Capitalism Against a Capitalist." The Free Radical, 27, October/November 1997, @ www.capitalism.net/articles/soros3.htm
Joseph Stiglitz. "Thanks for Nothing." in The Atlantic Monthly, October 2001, @
http://www.theatlantic.com/issues/2001/10/stiglitz.htm
Timothy Taylor. "The Truth about Globalization." The Public Interest, rr-rr, Spring, 2002, @ http://www.thepublicinterest.com/
Thomas P. Rohlen. Cosmopolitan Cities and Nation States: Open Economies, Urban Dynamics, and Government in East Asia. Asia Pacific Research Center, Februrary, 2003, @ http://APARC.stanford.edu
Ronald J. Sider. "Escaping Global Poverty." Review of Development as Freedom. By Amartya Sen (Knopf), in First Things 109 (January 2001): 45-48, @
http://www.firstthings.com/ftissues/ft0101/reviews/sider.html
Peter F. Drucker. "Beyond the Information Revolution." in the Atlantic Magazine, October 1999, @ http://www.theatlantic.com/issues/99oct/9910drucker.htm
Building the Microeconomic Foundations of Prosperity: Findings from the
Business Competitiveness Index. Michael E. Porter. Chapter 12 of
Global Competitiveness Report, 2006-2007. World Economic Forum, @,
http://www.weforum.org/pdf/Gcr/GCR_2003_2004/BCI_Chapter.pdf
(no author cited) Part Two: Strategic Implications of Electronic Commerce for Business Management (CIAO Conference Proceedings) CIAO DATE: 11/99 (The Global Advance of Electronic Commerce- Communications and Society Program, August 1997, The Aspen Institute) @ http://www.ciaonet.org/conf/asp05/asp05d.html
James Fallows. "What is an Economy For?" in the Atlantic Magazine, January, 1994, @ http://www.theatlantic.com/politics/ecbig/whatecon.html
Jacqueline Kasun. "Doomsday Every Day: Sustainable Economics, Sustainable Tyranny." Independent Review, IV, 1, Summer 1999. @ www.independent.org/archive/environment.html
Urban and Regional Development Process Page 17
Deepak Lal. "Does Modernization Require Westernization?" Independent Review, V, 1, Summer, 2000. @ www.independent.org/tii/content/pubs/review/tir51_lal.html
Globalization and Political Conflict: The Long Term Prognosis. Lloyd Gruber and Brian Gaines. American Political Science Association 2001 Annual Meeting. August 30-September 2, 2001.
Goodbye Washington Consensus, Hello Washington Confusion? Dani Rodrik, Harvard University, January, 2006.
Session 28
05-05 Catching Up and Summation
Session 29
05-07 Paper Presentations
05-10 or 12 Final Exam check schedule
Urban and Regional Development Syllabus
PA 577-077
The Urban Development Process
Following are some suggestions for paper topics. Suggestions are based on 18, 12, and 6 page requirements.
I am looking for you to review the source material in your paper, but provide some of your own experience (especially with regard to China) or your own interpretation of the recommendations or the policies proposed. In other words, I do not want to know just what is in the resource (book or article) but also what your ideas are. Your ideas are as important, or more important, than those of the authors of the papers. Your papers will be presented to the rest of the class near the end of the course. Each of you will take about 5 to 7 minutes. Tell your fellow students what they need to know about the source material as well as your own view.
A. Some Sample Paper Topics- Not Directly from Course Readings. You should use internet resources, local newspapers, or interviews with local officials for this paper. Such a topic would be suitable for a twelve or eighteen page paper.
01. Zoning in Illinois- Current Legislation and Case Law
02. Zoning in Chicago- Varieties of Land Use Controls
03. When are Planned Manufacturing Districts Going to be Ruled as Takings?
04. Chicago Building Department- Interviews
05. Chicago Planning and Development Department - Interviews
08. Getting A Building Permit in Chicago - Stories and Interviews
09. Regional Planning in Chicago - Interviews and Plans
10. The Chicago Building Commission and Illinois Capital Development Board
11. UIC Expansion- Process and Politics
12. Pilsen - NIMBY's vs. Outside Agitators
13. Bid Bonds, Performance Bonds, Payment Bonds- who, what, why, when, how much?
14. Real Estate Management for Public Facilities
Urban and Regional Development Syllabus, 16/19
B. Some Sample Paper Topics - Reviews of books and articles from the syllabus, and a few articles not from the syllabus. Suitable for a twelve or eighteen page paper.
In a book review, I want to know something about what is in the book, but also your evaluation of the ideas in the book. Do the ideas make sense from a Chinese perspective? Are there changes in the economy that will make the ideas in the book less, or more, valid? Where is the author wrong in assumptions or conclusions or analysis?
01. Jane Jacobs The Economy of Cities Vintage Books, 1970 There certainly are newer editions in paperback.
This is one of the Jane Jacobs classic works, describing how development takes place at a fundamental level. Draws the distinction between development and growth. Jane is much admired by American urban planners and urban theorists, but is not widely quoted in the academic literature because she is not herself an academic and she has challenged much of the once prevalent academic thinking about economic growth and development. On the other hand, much recent "world cities" literature is fundamentally based on her worldview, although the researchers in that field would probably deny it.
02. Jane Jacobs Systems of Survival New York: Vintage Book, 1994
Drawing on Plato's categorization of the ideal society into (broadly) a merchant class, a warrior class, and a ruling class, Jane describes how trader and guardian morality prescribe different actions, all of which are considered morally good from within the respective paradigm. This is a very useful book for those concerned about separation of government and private roles in the economy.
. This topic was selected last year by Chen Yanqin from Zhejiang. You may use her paper as a resource if you select this topic.)
03. Downs, Anthony New Visions for Metropolitan America Brookings Institution, Washington DC (1994) ISBN 0-8157-1925-6 (paperback)
Presumes reader knows of the American "urban crisis," particularly as defined by wealth differentials between city and suburb and transportation and environmental costs of sprawl. Provides some suggestions for future American urban and regional development. Downs is a much respected urban scholar.
04 Drier, Peter, Mollenkopf, John, and Todd Swanstrom Place Matters University Press of Kansas (2001) ISBN0-7006-1135-5 (paperback)
In an era in which place is said to matter less and less, Drier makes the point that for many Americans, place still matters a great deal, particularly if they do not have options to relocate. Makes some of the same regionalization arguments as Downs, but from a social policy perspective rather than a public cost perspective. Note: See review by Bill Pitkin in Critical Planning, Summer, 2002 (see me for copy)
This book was selected by some students from two years ago.
Urban and Regional Development Syllabus
05. Frederick Hayek, Road to Serfdom (this is a classic libertarian warning against planning, written in the 1940ís for consideration by policy makers in England. Hayekís view does not preclude government involvement in the economy, but it will provide a nice alternative viewpoint. )
06. Harrison and Huntington, editors, Culture Matters (this book makes the argument that culture does matter in economic development. This book was also reviewed two years ago. )
07. article from syllabus- Giving a Leg Up to Bootstrap Entrepreneurs (from sessions 5/6 of syllabus)
08. articles on Israeli and German land use law (see me to e-mail articles)
Land Use Law in the Face of a Rapid Growth Crisis: The Case of Mass Immigration to Israel in the 1990s, and Urban Planning: It's Time for a Foreign Concept to Hit Home in the U.S.
09. article on Chinese Insurance market- China Insurance Market Review (see me to e-mail article)
10. Legal Articles in Association with Chinese Real Property Law (see me to e-mail articles)
11. Terry Nichols Clark, Trees and Real Violins in the Post-Industrial City (article discussed changes over time in political culture in Chicago, as discussed briefly in class)
12. articles from journal Planning and Markets (how to use markets to better conduct urban planning- see me to e-mail articles)
Market-Oriented Land-Use Planning: A Conceptual Note, and
Market-Oriented Planning: Principles and Tools for the 21st Century
13. Chicago Climate Exchange articles (articles on the Chicago Climate Exchange, a new market in carbon dioxide emissions allowances- see me to e-mail articles)
The following resources may be used as source material for a 12 page paper-
articles from syllabus that are labeled ""-
14. Glaeser: Future of Urban Research: Non-Market Interactions, and
Glaeser: Why Economists Still Like Cities (from sessions 5/6 of syllabus)
15. Glaeser: Benefits of the Home Mortgage Interest Deduction (from session 7/ 8 of syllabus)
16. More than Bricks and Sticks- Five Components of CDC Capacity (from session 7/8 of syllabus)
17. Evolution of Low Income Housing Policy (from session 7/8 of syllabus)
18. Illinois Assisted Housing Research and Action Project (from session 5 of syllabus)
Urban and Regional Development Syllabus
19. Going Underground- Opportunity in the Shadow Economy, and
Enterprising Van Drivers Collide With Regulation (from sessions 5/6 of syllabus)
other articles, not from syllabus-
20. TECHNICAL NOTE: Planning by Markets (Geonomics), and
The Costs and Benefits of Fragmented Metropolitan Governance and the New Regionalist Policies (see me to e-mail articles)
The following resources may be used as source material for a 6 page paper-
21. The Place Without Roads (article on roads through Siberia in Russia-from Harper's Magazine- see me for copy of article)
22. Libertarian Critique of Labor Unions- see me for copy of article
23. Complexity: An Appropriate Framework for Development? and
Implications of Adopting A Complexity Framework for Development (from sessions 12/13 of syllabus)
24. Cities, Regions, and the Decline of Transport Costs (from sessions 12/13 of syllabus)
25. Globalization and Metropolitan Well-Being in the United States (from sessions 12/13 of syllabus)
26. Joseph Stiglitz, Globalism's Discontents (from sessions 12/13 of syllabus)
27. Peter F. Drucker, Beyond the Information Revolution (from sessions 12/13 of syllabus)
28. Part Two: Strategic Implications of Electronic Commerce for Business
Management (from sessions 12/13 of syllabus)
Urban and Regional Development Syllabus
You may also review three chapters (other than those we have discussed in class) in the book Economic Development, by Michael Todaro and Stephen C. Smith, 8th edition (Addison Wesley, 2003). This would be suitable for an 18 page paper. See me for the table of contents of the book so you can review possible chapters.
You may also review chapters in the book Regional Economic Development in the European Union and North America, by Morris L. Sweet (Praeger Publishers, Westport, CN, 1999). See me for details. Suitable for an 18 page paper.
Other topics are, of course, acceptable. Please see me in any case before selecting a paper topic.
PA 577-077
THE URBAN AND REGIONAL DEVELOPMENT PROCESS- Spring, 2008
Monday-Wednesday 11:25 to 12:40 PM
Instructor- Bill Markle cell: 312-953-9225 e-mail: markle@iit.edu
The purpose of this course is to provide an overview of real estate and economic development processes, public and private, for public administrators. An understanding of development and real estate is important not just for planners and engineers. Real estate is also the focus of much social policy and police work. Police officers involved in community policing now must know something about getting buildings torn down. Social workers and educators find their work influenced greatly by the physical conditions in which people live. Obviously, engineers, agency administrators, and planners deal with real estate issues every day.
The course will provide an introduction to public and private elements of development, including government influence at the federal, state, regional, and local levels; dealing with community groups and developers; and the means by which local governments can influence what gets built and what does not. There will be some discussion of real estate finance, but this is not the focus of the course. Given the presence of our honored guests from China, we will discuss issues of economics and globalization not normally covered in this course.
This course consists of two parts. Part A, sessions 1 through 9, are about real estate and real estate development. Part B, sessions 10 through 28, are about development, broadly construed.
This is a synthesis course, in the sense that you should start putting together some of the ideas from the earlier core courses. We will draw on public finance, introduction to public administration, and other courses in our discussions.
Students will be required to prepare one paper of 18 pages in length, or one 12 page and one 6 page paper, or three papers of six pages in length, on a topic to be arranged with the instructor in advance. Papers will be presented to the rest of the class during the last class period or two. In your paper, please write for your fellow students. Tell them what they need to know of your topic. Please note that the customary prohibitions on plagiarism apply. Papers found to have plagiarized segments will result in a grade of "F" for the course.
I would appreciate your participation in tours of development in Chicago, which I hope to arrange. The tours would encompass a visit to a Chicago small business industrial incubator facility, residential real estate projects, public-private partnership projects in Chicago, and visit with a Chicago non-profit social service agency staff. I hope to have speakers on various aspects of the course topic, but speaker selections are subject to change.
Text for this course is The Competitive Advantage of Nations, by Michael E. Porter. Porter is the business professor who popularized the concept of industry clusters, and his business oriented approach will contrast nicely with the other government focused economic development articles. Porter's book is national or international in focus, even though much of this course will have a distinctly local or regional focus.
Grading will be based on the following:
Class participation, including quiz results 25% Note- the quiz will always be based on material covered in previous lectures
Midterm exam 25%
Paper 25%
Final exam 25%
There are no prerequisites.
For some readings, I have indicated that they are optional. If you have the time and interest, read these at your leisure. Try to glance at the title and first couple of paragraphs of optional readings, so you know the main idea of the article. The readings are selected for you to get some understanding of American ways of doing things, or to demonstrate the complexities of real estate and urban issues, or suggest that experts do not all agree.
My plan for the course is to provide some background stories in class, some of my experience, and some explanation to complement the readings. I do not expect to discuss the readings in class in any great detail. Please feel free to ask questions and ask for explanations, but I do not want to spend time analyzing the usefulness of a particular academic argument in class.
Some articles will have a brief explanation at the beginning, or, in the case of articles in .pdf format, a brief explanation may be nearby with the title of the article and 'Student Note" in the title. Have fun reading.
-wdm
URBAN AND REGIONAL DEVELOPMENT PROCESS
PA 577-077
Spring, 2008
SYLLABUS
Class No. Assignment
Sessions 01 and 02 Development and Real Estate Overview
01-23 syllabus read-through; why cities exist; how Chicago came to look as it
does; changes in processes and politics; some Chicago history is provided
in readings; growth machine and entertainment machine
01-28 distinguish growth, development, and innovation; define competitiveness;
some big ideas about development in the US;
Why governments like real estate; real estate as a focal point of public policy issues and private plans; why real estate is so burdened with paperwork; private property rights; regulating and taking; history of planning; planning theory; cleavages between theory and practice (people vs. place prosperity, plans vs. money, class divisions, how meaning is made in development); economic view of the world and the biologic view of the world (individuals vs. systems, growth vs. evolution)
Required Reading:
Porter, Competitive Advantage of Nations, Chapter 1, The Need for a New Paradigm.
Student note- why is a new paradigm suggested by Porter?
Terry Nichols Clark and Richard Lloyd, The City as an Entertainment Machine. Draft prepared for annual meeting of the American Sociological Association, 2000. Research report #454. Skim this article.
Terry Nichols Clark, editor. Trees and Real Violins: Building Post Industrial Chicago. Summary as prepared by wdm. Skim this article.
Optional Reading:
Metropolitan Decentralization in Chicago. Chicago Case Study Working Group, Great Cities Institute, University of Illinois. July, 2001.
Manufacturing Industrial Decline: The Politics of Economic Change in
Chicago, 1955-1998. Joel Rast. Journal of Urban Affairs, 23:2,
(2001) pages 175-190.
Sessions 3, 4, 5, and 6 Real Estate Definitions, Concepts, Law, and Markets
01-30 Short Quiz #1; Definitions- real estate; improvements; title; bundle
of rights; fee simple; tenant; mortgage; note; others
02-04 Processes- surveys, subdivision, recording, easements; eminent domain
02-06 Appraisal, condominium, cooperative; review of documents
02-11 Short Quiz #2; Property taxes, markets, and local knowledge
Required Reading:
(Handout) - Bankability Glossary (Community Development Research Center, New School for Social Research, New York, no date)
(Handout) - Glossary of Words and Terms Relating to Real Estate
(Handout) - some real estate documents - we will discuss in class
notes on condominiums and cooperatives
Brief articles on Illinois and Cook County Property Tax System
A brief note on property appraisal by the county for property taxes- wdm
Hernando de Soto, The Mystery of Capital- Why Capitalism Triumphs in the West and Fails Everywhere Else- Chapter 1, The Five Mysteries of Capital, @
http://www.ild.org.pe/tmoc/cp1-en.htm NOTE: this article is also available in Chinese. You should read this article.
Optional Reading:
Press Release - The Sveriges Riksbank (Bank of Sweden) Prize
in Economic Sciences in Memory of Alfred Nobel The Royal Swedish Academy Of Sciences, 15 October 1991 @
http://www.nobel.se/economics/laureates/1991/press.html
The item above is a description of the work by Ronald Coase that led to the Nobel Prize in Economics. Coase's work showed that transactions costs are not negligible, which leads to businesses deciding what work will be done within the company and which work will be done outside.
Robert Maurer and Anne Paugam. "Reform Toward Ad Valorem Property Tax in Transition Economies: Fiscal and Land Use Benefits," World Bank Land and Real Estate Initiative, Number 13 (Background Series), June, 2000, @
www1.worldbank.org/wbiep/decentralization/library9/Esw-tax2.PDF
Felicity Barringer. Property Rights Law May Alter Oregon Landscape, New York Times, November 26, 2004, @
http://www.nytimes.com/2004/11/26/national/26property.html?ex=1102473096&ei=1&en=0b254123e36afb2b
Commercial Real Estate and Construction Lending- Comptroller's Handbook. Comptroller of the Currency, Administrator of National Banks, 1998. Note- this is an reading, for those of you interested in how the US government regulators look at commercial lending for real estate.
The Historical Evolution of State and Local Tax Systems. Edward Howe and Donald Reeb. Unpublished.
Alternative Perspectives on Property Taxation. Joan Youngman. Lincoln Institute of Land Policy. Unpublished, available online.
Program on the People's Republic of China. This is a portion of the Lincoln Institute web site that describes their work in China.
@ http://www.lincolninst.edu/aboutlincoln/prc.asp
An Analysis of the Graded Property Tax. Robert Schwab and Amy Rehder Harris. October, 1997.
Preferential Property Tax Treatment of Land. Jane Malme. Lincoln Institute of Land Policy. 1993. Unpublished, available online.
The Impact of Urban Land Taxation- The Pittsburgh Experience. Wallace Oates and Robert Schwab, Lincoln Institute of Land Policy. November, 1996. Unpublished, available online.
Session 07, 08, and 09 Real Estate Pro Formas, Financing, and Bonds
02-13 Short Quiz #3; Capitalization rate; mortgages and collateral; time
stream of income flows
02-18 What is a building worth? How do we decide on a price? Cash flow,
interest rates, discounted cash flow. Income producing properties and
development businesses (condominiums)
02-20 Government bonds for financing
Required Reading:
Real Estate Finance Textbook. National Development Council, 1990. Chapters 1-4 and 6. This will be handed out in class. Read this.
Bond Financing Notes
Small Business Start-Up Information. Federal Reserve Bank of New York, @
http://www.newyorkfed.org/education/addpub/credit.html
Pekin, Illinois, Water Works articles, 1st one @
http://www.historicpeoria.com/select.cfm?chose=130
Optional Reading:
Financial Intermediation. Gary Gorton and Andrew Winton. Warton Financial Institutions Center, University of Pennsylvania. March 1, 2002.
Paul Seidenstat. Organizing Water and Wastewater Industries to Meet the Challenges of the Twenty-First Century. Public Administration and Management: An Interactive Journal. 8,2 (2003), pages 69-99, @
http://www.pamij.com/8-2/pam8-2-3.htm
Jones Lang LaSalle Hotels (Press Release) Hotel Online Special Report:
Convention Center Financing - Public Entities / Private Entities -Who Should
Take the Risk? @
http://www.hotel-online.com/News/PR2003_1st/Feb03_CCFinancing.html
Powerful Reason for Choosing Public Power. Area Development Online, December 2003, @ http://www.area-development.com/Pages/Features/Feature8A.html
Competitive Era Fails to Shrink Electric Bills. David Cay Johnston. New York Times, October 15, 2006.
Measuring Local Government Credit Risk and Improving Creditworthiness. George E. Petersen. The World Bank. March, 1998.
Mobilizing Domestic Capital Markets for Infrastructure Financing: International Experience and Lessons for China. Anjali Kumar, et. al. World Bank Discussion Paper No. 377, September,1997.
Fiscal Federalism and Economic Reform in China. Roy Bahl and Jorge Martinez-Vasquez. International Studies Program, Working Paper 03-13, Andrew Young School of Policy Studies, Georgia State University. May, 2003.
The System of Equalization Transfers in China. Jorge Martinez-Vasquez and Zhihua Zhang. International Studies Program, Working Paper 03-12, Andrew Young School of Policy Studies, Georgia State University. July, 2003.
Sessions 10, 11, and 12 The Concept of Economic Development
02-25 Short Quiz #4; Definitions of economic growth, development, and
innovation; some history and current theories of national
development, from Solow to Romer.
02-27 The Porter model of national competitive advantage - the diamond
03-03 US federal agencies involved in development- HUD, EDA, SBA.
There is a lot of reading here, and I know you probably cannot do it all. Skim what you can. The Porter diamond is on page 127 of my text.
Required Reading:
Porter, Competitive Advantage of Nations, Chapter 3- Determinants of National Competitive Advantage. (pp 69-130)
Chapters 3, 4, 5, and 16 in Economic Development, by Michael P. Todaro and
Stephen C. Smith. 8th Edition. New York: Addison Wesley, 2003. Read chapters 3, 4, 5 and 16 at your leisure. This book is a widely used regional and international development text. You will find many chapters in this book of interest to you. A copy is available from me.
Definitions of Economic Development on the Web
Economic and Cultural Requirements for Markets to Operate Efficiently. From Economic Development, Todaro and Smith (8th edition, 2003, pages 698-700)
Summary of Notable Federal Business and Economic Development Programs and Initiatives. Northeast-Midwest Institute, 2006
Optional Reading:
New Growth Theory, Technology, and Learning: A Practitioner's Guide. Joseph
Cortright. Reviews of Economic Development Literature and Practice, No. 4.
(2001).
Matt Kane, Public Sector Economic Development: Concepts and Approaches, Northeast-Midwest Institute, November, 2004. @
www.nemw.org/econdevelopment.pdf
The Effects of State and Local Public Policies on Economic Development: An
Overview. Katherine Bradbury, Yolanda Kodrzycki, and Robert Tannenwald.
New England Economic Review, Federal Reserve Bank of Boston, March-April,
1997.
The Effects of State and Local Public Services on Economic Development.
Ronald Fisher. New England Economic Review, Federal Reserve Bank of Boston,
March-April, 1997.
State Regulatory Policy and Economic Development. Robert Tannenwald. New
England Economic Review, Federal Reserve Bank of Boston, March-April,
1997.
Taxation and Economic Development: State of the Literature. Michael
Wasylenko. New England Economic Review, Federal Reserve Bank of Boston, March-April, 1997.
Tax and Spending Incentives and Enterprize Zones. Peter Fisher and Alan Peters. New England Economic Review, Federal Reserve Bank of Boston, March-April, 1997.
Policy Implications: A Panel Discussion. Moderated by Patricia Flynn. New
England Economic Review, Federal Reserve Bank of Boston, March-April,
1997.
Agency Description, Department of Housing and Urban Development. Federal
Government Manual. This is a good description of HUD Program Areas.
Programs of HUD. Major Mortgage, Grant, Assistance, and Regulatory Programs.
2005. This is a long document, but thorough.
Frequently Asked Questions, US Small Business Administration. Contains
clickable directions to specific programs of the SBA.
SBA Technical Assistance, Financial Assistance, Contracting Assistance, and
Disaster Recovery Assistance. Clickable.
Programs of the Economic Development Administration. US Department of
Commerce, Economic Development Administration. January, 1999.
Sessions 13, 14, and 15 Local Economic Development and Tax Increment Financing
03-05 Dealing with community groups and neighborhood issues; who represents
the community; organizational structures and boards of directors; concept
of turf and public involvement; community based and welfare based.
Examples of good and bad ways of involving groups in project definition
and evaluation (CTA Howard Street El Station, Park District Lincoln Park Plan,
etc.) Public participation models- ward congress, informal neighborhood
group approvals; parking, on and off street; what happens when people can't
pay their taxes?; abandoned properties and government rights and duties;
how interests of government, community, and developer are similar and
different;
03-10 local government actions; people prosperity and place prosperity; dealing
with an exogenous world; principal-agent theory; ICNC
03-12 Short Quiz #5; Tax Increment Financing
Required Reading:
Porter, The Competitive Advantage of Nations, Chapter 10- The Competitive Development of National Economies (pp 543-573). Please note that this chapter does not have much bearing on the topic of local economic development and TIF.
Community Economic Development in the US- Some Notes. William D. Markle, August, 2005 (unpublished). Read this.
Optional Reading:
Timothy Bartik. Local Economic Development Policies. Upjohn Institute Staff Working Paper No. 03-91. January 2003. @ http://ideas.repec.org/e/pba76.html
Peter Gordon and Harry W. Richardson. "Hayek and Cities: Guidelines for Regional Scientists." University of Southern California, April 1999,
HYPERLINK "http://www.rcf.usc.edu/~pgordon/hayek.html"
http://www.rcf.usc.edu/~pgordon/hayek.html
Urban and Regional Development Process Page 9
Bill Steigerwald, Death by Wrecking Ball- Pittsburg and the Politics of Eminent Domain. Reason Magazine, June 2000, @
http://reason.com/0006/fe.bs.death.shtml
Tax Increment Financing. A Civic Federation Issue Brief. November 12, 2007
Edward L. Glaeser. "Why Economists Still Like Cities," in City Journal, Spring
1996, Vol. 6, No. 2, @
http://www.cityjournal.org/html/6_2_why_economists.html
Edward Glaeser. "Public Ownership in the American City." Harvard Institute of Economic Research, Discussion Paper 1930. October, 2001. @
post.economics.harvard.edu/hier/2001papers/HIER1930.pdf
William J. Stern. "The Unexpected Lessons of Times Square's Comeback." City Journal, IX, 4 (Autumn, 1999), @
http://www.city-journal.org/html/9_4_the_unexpected.html
(no author cited). "Key Principles: A Discussion of the Programs' Guiding Principles." US Department of Housing and Urban Development." also the subsequent material on Empowerment Zones and related programs. US Department of Housing and Urban Development, @
http://www.hud.gov/offices/cpd/economicdevelopment/programs/rc/businesses/successstories.cfm
Goldhirsh Group, Inc. "Going Underground- Opportunity In the Shadow Economy." Part 2 of article. May, 1994. Web site presence no longer available.
Howard Husock. " Enterprising Van Drivers Collide With Regulation." City Journal, VI, 1 (Winter, 1996). @ http://www.city-journal.org/html/6_1_enterprising_van.html
Samuel R. Staley, Howard Husock, David J. Bobb, H. Sterling Burnett,
Laura Creasy, and Wade Hudson. "Giving a Leg Up to Bootstrap Entrepreneurship: Expanding Economic Opportunity in America's Urban Centers." Reason Public Policy Institute Policy Study No. 277, February 2001, @ http://www.rppi.org/ps277.html
Urban and Regional Development Process Page 10
Please note: Bus tour on Friday, March 7. Theme is industrial development in Chicago the past and future. This is a tour of the south side of Chicago and one or two incubator projects.
No class March 17-22. Note- St. Patrick’s Day is March 17. Check schedules for downtown parade.
Session 16 Midterm Exam
03-24
Urban and Regional Development Process Page 11
Sessions 17, 18, and 19 Economic Geography and Regional Development
03-26 A little location theory to go along with the policy.
03-31 There are few regional economic development efforts in the US. Groups of
counties may cooperate on projects or programs; sometimes states
cooperate with each other; there are a few organizations, like the TVA,
that are multi-state that have economic development as a top priority.
04-02 Short Quiz #6; why economic geography doesn’t tell us much about
business development
Required Reading:
Chapters 18, 19, and 20 in Regional Economic Development in the European Union and North America, by Morris L. Sweet. Westport, CT: Praeger Publishers, 1999. This is a very nice summary of US programs and is worth reading.
Rethinking Federal Policy for Regional Economic Development. Mark Drabenscott. Federal Reserve Bank of Kansas City, Economic Review, First Quarter 2006.
Who Really Makes the iPod? Hal R. Varian. New York Times, June 28, 2007.
Optional Reading:
Please look at (don't read in detail) some of the following articles or reports-
From Regional Development to Local Development: On the Life, Death, and Rebirth(?) of Regional Science as a Policy Relevant Science. Mario Polese. Canadian Journal of Regional Science, XXIII, 3 (1999) @ www.lib.unb.ca/Texts/CJRS/Autumn99/Polese.pdf
State Strategies for the New Economy. National Governors' Association, 2000.
The Political Economy of Gubernatorial Smokestack Chasing: Bad Policy and Bad Politics? Robert Turner, 2003. (unpublished).
Regional Economic Development in the United States. Janis Purdy.
Presentation to the Joint Conference on Regionalism Below the State-Level
in Germany and the United States, Speyer, Germany, March 31 - April 2, 1998.
Urban and Regional Development Process Page 12
Greg LeRoy, "Eight Concrete Ways to Curtail the Economic War Among the States" Prepared for "Reigning in the Competition for Capital," Humphrey Institute of Public Affairs, University of Minnesota, Minneapolis, Minnesota, February 27-28, 2004. @
www.hhh.umn.edu/projects/prie/leroy_paper.pdf
Peter Fisher, "The Fiscal Consequences of the Competition for Capital." Prepared for "Reigning in the Competition for Capital," Humphrey Institute of Public Affairs,
University of Minnesota, Minneapolis, Minnesota, February 27-28, 2004. @
www.hhh.umn.edu/projects/prie/fisher_paper.pdf
Urban and Regional Development Process
Tennessee Valley Authority (TVA) description from Federal Government Manual
The Illinois Jobs through Competitiveness Act (EDGE Program) June,
1999, @ http://www.redco.org/data/edge.html
State of Illinois Enterprise Zone Program, @
http://www.redco.org/data/ezone.html
I-Street archive readings (three) i-Street, @
http://www.i-street.com/magazinearchive/yr2002
An Energy Plan for the Great Lakes. Dick Munson, Northeast-Midwest Institute, September, 2005, @ http://www.nemw.org/Great%20Lakes%20energy.pdf
Trade Patterns and the Economy of the Northern Great Plains: A Baseline Report, Northeast-Midwest Institute, July, 2001.
An Overview of Transportation Infrastructure and Services in the Northern Great Plains.
The Northeast-Midwest Institute, July 2000.
Please note: Bus tour on Friday, March 28. Real estate projects and the Rogers Park Community Council, a non-profit community organization that is also a social service agency for the State of Illinois and the City of Chicago.
Urban and Regional Development Process Page 13
Sessions 20, 21, 22 and 23 Industrial Development
04-07 US trade policy, science policy, subsidies to industry at federal, state, and
local levels - smokestack chasing and extortion; MEP
04-09 Science and tech parks, CRADA
04-14 Small Business Investment Companies (SBIC)
04-16 Discussion of the Porter chapter
Required Reading:
Porter, The Competitive Advantage of Nations, Chapter 12- Government Policy (pp 617-682)
Industrial Development Policy in the US- Some Notes. William D. Markle, 2006.
Optional Reading:
Industrial and Regional Clusters: Concepts and Comparative Applications. (Chapter 2)
Edward M. Bergman and Edward J. Feser. Web Book of Regional Science, @ http://www.rri.wvu.edu/WebBook/Bergman-Feser/chapter2.htm
Cluster-based Economic Development, Part 2: An Overview of Growth Theories and Concepts. Krishna M. Akundi. Texas Economic Development Business and Industry Data Center. (undated, probably 2000)
A Governor's Guide to Cluster Based Economic Development. National Governor's Association, 2002.
Trends in Rural Manufacturing. Chad Wilkerson. The Main Street Economist. Federal Reserve Bank of Kansas City, December, 2001.
Regional Differences in the Competitive Characteristics of US Machine Tool Companies. Ronald Kalafsky and Alan Macpherson. Growth and Change (33:3) Summer, 2002.
Seed and Venture Capital- State Experiences and Options (May, 2006) National Association of Seed and Venture Funds
SBA Size Standards
Urban and Regional Development Process Page 14
Small Business Investment Company (SBIC) Program- Frequently Asked Questions
Small Business Financing Sources - notes
Some notes on small business incubators, from the National Business Incubation Association
David Hearn, Deborah Markley, and Kevin McNamara. "Local Jobs and Income Growth: The Decatur Industry and Technology Center Impacts." Purdue University, Center for Rural Development, October, 1994.
A National Benchmarking Analysis of Technology Business Incubator Performance and Practices. National Business Incubation Association. September 30, 2002.
Sessions 24 and 25 Rural Development
04-21 Short Quiz #7; How do federal and state governments support
infrastructure, housing, social services, and economic development in rural
areas?
04-23 How does the federal government support farms and ranches?
Required Reading:
Federalism, Farm Policy, and Rural Economic Development. William D. Markle (2006) Read this as best you can. Some of the farm policy programs will probably be unintelligible to you (as they are to most Americans).
Urban and Regional Development Process Page 15
Sessions 26 and 27 Globalism and the Information Revolution
04-28 The US is a mixture of free market and controlled market philosophy.
04-30 Development, both public and private, is affected by federal government
policies, tax policies, macroeconomic policies, and trade policies as well as
by local conditions. There are underlying conditions (location, location,
location!) that, over time, can dwarf the ebb and flow of politics and policy.
Chicago has been the beneficiary of politics and policy, the butt of policy,
and now seems the beneficiary again. Most planning efforts seem like
icing on the cake, or worse, rearranging the deck chairs.
Global investment requires global thinking. Understanding of current
thinking about global development is necessary for sound regional and even
municipal planning. But "globalism" is not all good, and not even all that
well understood. Some perspectives are provided in the readings.
changing technologies, lock-in, increasing returns to scale
Required Reading: Porter, Chapter 13 - National Agendas skim this
Optional Reading:
Read these articles at your leisure. They will be of interest to you in thinking about the future of cities. For these course sessions, try to read some of what follows-
Readings: Peter Eisinger and Charles Smith. "Globalization and Metropolitan Well-Being in the United States." A paper prepared for presentation at the meetings of the International Sociology Association, Montreal, July 26-August 1, 1998, @
http://www.src.uchicago.edu/depts/faui/Eis_Smi.doc
Robert Batterson and Murray Wiedenbaum. The Pros and Cons of Globalization. Center for the Study of American Business, Washington University in St. Louis. January, 2001.
Amartya Sen. "How to Judge Globalism." The American Prospect, 13-1 (January 1, 2002), @ http://www.prospect.org/print/V13/1/sen-a.html
Urban and Regional Development Process Page 16
Joseph E. Stiglitz. Review- A Fair Deal for the World. The New York Review of Books, May 23, 2002, @ www.nybooks.com/articles/15403
George Reisman. "Defending Capitalism Against a Capitalist." The Free Radical, 27, October/November 1997, @ www.capitalism.net/articles/soros3.htm
Joseph Stiglitz. "Thanks for Nothing." in The Atlantic Monthly, October 2001, @
http://www.theatlantic.com/issues/2001/10/stiglitz.htm
Timothy Taylor. "The Truth about Globalization." The Public Interest, rr-rr, Spring, 2002, @ http://www.thepublicinterest.com/
Thomas P. Rohlen. Cosmopolitan Cities and Nation States: Open Economies, Urban Dynamics, and Government in East Asia. Asia Pacific Research Center, Februrary, 2003, @ http://APARC.stanford.edu
Ronald J. Sider. "Escaping Global Poverty." Review of Development as Freedom. By Amartya Sen (Knopf), in First Things 109 (January 2001): 45-48, @
http://www.firstthings.com/ftissues/ft0101/reviews/sider.html
Peter F. Drucker. "Beyond the Information Revolution." in the Atlantic Magazine, October 1999, @ http://www.theatlantic.com/issues/99oct/9910drucker.htm
Building the Microeconomic Foundations of Prosperity: Findings from the
Business Competitiveness Index. Michael E. Porter. Chapter 12 of
Global Competitiveness Report, 2006-2007. World Economic Forum, @,
http://www.weforum.org/pdf/Gcr/GCR_2003_2004/BCI_Chapter.pdf
(no author cited) Part Two: Strategic Implications of Electronic Commerce for Business Management (CIAO Conference Proceedings) CIAO DATE: 11/99 (The Global Advance of Electronic Commerce- Communications and Society Program, August 1997, The Aspen Institute) @ http://www.ciaonet.org/conf/asp05/asp05d.html
James Fallows. "What is an Economy For?" in the Atlantic Magazine, January, 1994, @ http://www.theatlantic.com/politics/ecbig/whatecon.html
Jacqueline Kasun. "Doomsday Every Day: Sustainable Economics, Sustainable Tyranny." Independent Review, IV, 1, Summer 1999. @ www.independent.org/archive/environment.html
Urban and Regional Development Process Page 17
Deepak Lal. "Does Modernization Require Westernization?" Independent Review, V, 1, Summer, 2000. @ www.independent.org/tii/content/pubs/review/tir51_lal.html
Globalization and Political Conflict: The Long Term Prognosis. Lloyd Gruber and Brian Gaines. American Political Science Association 2001 Annual Meeting. August 30-September 2, 2001.
Goodbye Washington Consensus, Hello Washington Confusion? Dani Rodrik, Harvard University, January, 2006.
Session 28
05-05 Catching Up and Summation
Session 29
05-07 Paper Presentations
05-10 or 12 Final Exam check schedule
Urban and Regional Development Syllabus
PA 577-077
The Urban Development Process
Following are some suggestions for paper topics. Suggestions are based on 18, 12, and 6 page requirements.
I am looking for you to review the source material in your paper, but provide some of your own experience (especially with regard to China) or your own interpretation of the recommendations or the policies proposed. In other words, I do not want to know just what is in the resource (book or article) but also what your ideas are. Your ideas are as important, or more important, than those of the authors of the papers. Your papers will be presented to the rest of the class near the end of the course. Each of you will take about 5 to 7 minutes. Tell your fellow students what they need to know about the source material as well as your own view.
A. Some Sample Paper Topics- Not Directly from Course Readings. You should use internet resources, local newspapers, or interviews with local officials for this paper. Such a topic would be suitable for a twelve or eighteen page paper.
01. Zoning in Illinois- Current Legislation and Case Law
02. Zoning in Chicago- Varieties of Land Use Controls
03. When are Planned Manufacturing Districts Going to be Ruled as Takings?
04. Chicago Building Department- Interviews
05. Chicago Planning and Development Department - Interviews
08. Getting A Building Permit in Chicago - Stories and Interviews
09. Regional Planning in Chicago - Interviews and Plans
10. The Chicago Building Commission and Illinois Capital Development Board
11. UIC Expansion- Process and Politics
12. Pilsen - NIMBY's vs. Outside Agitators
13. Bid Bonds, Performance Bonds, Payment Bonds- who, what, why, when, how much?
14. Real Estate Management for Public Facilities
Urban and Regional Development Syllabus, 16/19
B. Some Sample Paper Topics - Reviews of books and articles from the syllabus, and a few articles not from the syllabus. Suitable for a twelve or eighteen page paper.
In a book review, I want to know something about what is in the book, but also your evaluation of the ideas in the book. Do the ideas make sense from a Chinese perspective? Are there changes in the economy that will make the ideas in the book less, or more, valid? Where is the author wrong in assumptions or conclusions or analysis?
01. Jane Jacobs The Economy of Cities Vintage Books, 1970 There certainly are newer editions in paperback.
This is one of the Jane Jacobs classic works, describing how development takes place at a fundamental level. Draws the distinction between development and growth. Jane is much admired by American urban planners and urban theorists, but is not widely quoted in the academic literature because she is not herself an academic and she has challenged much of the once prevalent academic thinking about economic growth and development. On the other hand, much recent "world cities" literature is fundamentally based on her worldview, although the researchers in that field would probably deny it.
02. Jane Jacobs Systems of Survival New York: Vintage Book, 1994
Drawing on Plato's categorization of the ideal society into (broadly) a merchant class, a warrior class, and a ruling class, Jane describes how trader and guardian morality prescribe different actions, all of which are considered morally good from within the respective paradigm. This is a very useful book for those concerned about separation of government and private roles in the economy.
. This topic was selected last year by Chen Yanqin from Zhejiang. You may use her paper as a resource if you select this topic.)
03. Downs, Anthony New Visions for Metropolitan America Brookings Institution, Washington DC (1994) ISBN 0-8157-1925-6 (paperback)
Presumes reader knows of the American "urban crisis," particularly as defined by wealth differentials between city and suburb and transportation and environmental costs of sprawl. Provides some suggestions for future American urban and regional development. Downs is a much respected urban scholar.
04 Drier, Peter, Mollenkopf, John, and Todd Swanstrom Place Matters University Press of Kansas (2001) ISBN0-7006-1135-5 (paperback)
In an era in which place is said to matter less and less, Drier makes the point that for many Americans, place still matters a great deal, particularly if they do not have options to relocate. Makes some of the same regionalization arguments as Downs, but from a social policy perspective rather than a public cost perspective. Note: See review by Bill Pitkin in Critical Planning, Summer, 2002 (see me for copy)
This book was selected by some students from two years ago.
Urban and Regional Development Syllabus
05. Frederick Hayek, Road to Serfdom (this is a classic libertarian warning against planning, written in the 1940ís for consideration by policy makers in England. Hayekís view does not preclude government involvement in the economy, but it will provide a nice alternative viewpoint. )
06. Harrison and Huntington, editors, Culture Matters (this book makes the argument that culture does matter in economic development. This book was also reviewed two years ago. )
07. article from syllabus- Giving a Leg Up to Bootstrap Entrepreneurs (from sessions 5/6 of syllabus)
08. articles on Israeli and German land use law (see me to e-mail articles)
Land Use Law in the Face of a Rapid Growth Crisis: The Case of Mass Immigration to Israel in the 1990s, and Urban Planning: It's Time for a Foreign Concept to Hit Home in the U.S.
09. article on Chinese Insurance market- China Insurance Market Review (see me to e-mail article)
10. Legal Articles in Association with Chinese Real Property Law (see me to e-mail articles)
11. Terry Nichols Clark, Trees and Real Violins in the Post-Industrial City (article discussed changes over time in political culture in Chicago, as discussed briefly in class)
12. articles from journal Planning and Markets (how to use markets to better conduct urban planning- see me to e-mail articles)
Market-Oriented Land-Use Planning: A Conceptual Note, and
Market-Oriented Planning: Principles and Tools for the 21st Century
13. Chicago Climate Exchange articles (articles on the Chicago Climate Exchange, a new market in carbon dioxide emissions allowances- see me to e-mail articles)
The following resources may be used as source material for a 12 page paper-
articles from syllabus that are labeled ""-
14. Glaeser: Future of Urban Research: Non-Market Interactions, and
Glaeser: Why Economists Still Like Cities (from sessions 5/6 of syllabus)
15. Glaeser: Benefits of the Home Mortgage Interest Deduction (from session 7/ 8 of syllabus)
16. More than Bricks and Sticks- Five Components of CDC Capacity (from session 7/8 of syllabus)
17. Evolution of Low Income Housing Policy (from session 7/8 of syllabus)
18. Illinois Assisted Housing Research and Action Project (from session 5 of syllabus)
Urban and Regional Development Syllabus
19. Going Underground- Opportunity in the Shadow Economy, and
Enterprising Van Drivers Collide With Regulation (from sessions 5/6 of syllabus)
other articles, not from syllabus-
20. TECHNICAL NOTE: Planning by Markets (Geonomics), and
The Costs and Benefits of Fragmented Metropolitan Governance and the New Regionalist Policies (see me to e-mail articles)
The following resources may be used as source material for a 6 page paper-
21. The Place Without Roads (article on roads through Siberia in Russia-from Harper's Magazine- see me for copy of article)
22. Libertarian Critique of Labor Unions- see me for copy of article
23. Complexity: An Appropriate Framework for Development? and
Implications of Adopting A Complexity Framework for Development (from sessions 12/13 of syllabus)
24. Cities, Regions, and the Decline of Transport Costs (from sessions 12/13 of syllabus)
25. Globalization and Metropolitan Well-Being in the United States (from sessions 12/13 of syllabus)
26. Joseph Stiglitz, Globalism's Discontents (from sessions 12/13 of syllabus)
27. Peter F. Drucker, Beyond the Information Revolution (from sessions 12/13 of syllabus)
28. Part Two: Strategic Implications of Electronic Commerce for Business
Management (from sessions 12/13 of syllabus)
Urban and Regional Development Syllabus
You may also review three chapters (other than those we have discussed in class) in the book Economic Development, by Michael Todaro and Stephen C. Smith, 8th edition (Addison Wesley, 2003). This would be suitable for an 18 page paper. See me for the table of contents of the book so you can review possible chapters.
You may also review chapters in the book Regional Economic Development in the European Union and North America, by Morris L. Sweet (Praeger Publishers, Westport, CN, 1999). See me for details. Suitable for an 18 page paper.
Other topics are, of course, acceptable. Please see me in any case before selecting a paper topic.
How is it that the US is a leading economy?
There are plenty of answers to this question that involve regional and international economics. The US developed along with the industrial revolution. There were no cities to tear up and rebuild- they grew with the factories. The US has lots of land, some of the world’s greatest farmland, long seashores for ports, lots of navigable rivers (at least in the east and Midwest), and has large quantities of natural resources- coal, oil, gold, trees, and many other minerals. Land was there to be taken. There were no long histories of civil law or procedures or tribal law or religious requirements. Everything had to be adapted to the new world from somewhere else or made up to fit the new situation. Everything was designed to be practical for the time. The oceans protected the US from some involvement in foreign problems. There was no history of a ruling class or aristocracy. Unions were independent of government and of the business, and could work to protect workers and try to raise their pay and working conditions. Because of free speech protections in the constitution, government schools and universities were free to ask whatever questions they wanted, and answer them any way they wanted, as long as the answers met the standards of reason. There were many ways to make a living, people could choose to do what they wished, and for many people this led to getting rich or at least getting to be middle class. There was no one who could say no to an idea that someone wanted to pursue. It is in this way that freedom and capitalism work together.
A lot of that is now history. We still have rivers and coal, but the US economy is no longer factor driven or investment driven- maybe not even innovation driven. But even a wealth driven economy like the US can still do some innovation. What makes that so easy in the US?
Americans move a lot- across the street, across the town, across the country. One of the reasons we do that is so we can start over. Starting over is very easy in the US. People find life too hard in one place, and they move, thinking that things will be better somewhere else. Sometimes, that is true. Maybe the move gives people more energy, or they need to work harder to find a job and start a new life somewhere else. Bankruptcy laws do not take everything a person owns when they go bankrupt. People are allowed to keep their house (if it is not claimed by the bank in a foreclosure) and personal items. The social shame of going bankrupt certainly exists, but everyone deserves a new chance. Failure is not an opinion about someone’s life- it is only an experiment that didn’t work. Failure is not a collective loss, either. One of the benefits of being an American is that one does not have to feel responsible for actions of the government or actions of one’s business. There is a cost to that- we don’t have much loyalty to the government or to a business or to each other- but America is much more about “I” than about “we.”
The ease of starting over extends to the ease of starting a business- we talked about this in class. Credit is not hard to find. Everyone wants to help someone start a business. Partnerships and corporations are very easy to start. Laws permit partnerships and corporations to isolate their liability in classes of ownership, so that investors can feel free to invest while limiting potential losses. Even small and startup businesses can get credit, even if it is only from their credit cards or from a loan against the value of their house. It is easy to hire people, and easy to fire them or lay them off if work declines. Our strong sense of private property is very important. This means that when someone creates some value, they get to claim the value as their property.
Risk-taking is supported at every step by government policies and by the culture. This doesn’t mean that the government provides money, but that laws and regulations support taking risk by being able to isolate risk, making it easy to fail, easy to start up again, easy to move, easy to obtain credit, easy to fill out the paperwork to start a business, and easy to locate where one wishes.
For businesses and for government, the sense of new ideas and information and change and success flowing from the bottom up rather than from the top down has been essential to innovation. The further down the hierarchy we can push the authority and responsibility, the more ideas there are, the more minds there are to work on a problem. The less respect for authority, the more possibilities for change.
My friend Bob Yovovich interviewed a man holding the most patents in the US at the time- more than two hundred individually held patents. Bob asked him what it took to innovate- what is the source of inspiration. The answer was not that his family inspired him, or his company, or solving world problems. He said that the source of innovation was to be easily annoyed. Now maybe that does not work for everyone, but it fits with what my own experience has been. People who are easily annoyed with the problems they see in their company can simply leave the company and start their own business. People who are free to work on what they wish are more interested in the outcome than people who work on what they are told to work on. People who can see the possibility of making money from some innovation are inclined to work harder. This suggests the importance of small institutions- small businesses- which can be more flexible, more innovative because they don’t have the burden of layers of management or an extensive network of suppliers and customers to satisfy. Bigger is clearly not always better. Sometimes the US can innovate because it has a very large market, and the markets can be very diverse. Products have to be designed to meet the needs of different types of people with different needs. This is not to say that the markets in the US are always the most sophisticated- they are not. But designing for different customs and patterns of use make for more thinking about how people use things, and this is the ultimate pragmatism. “What works” is often quicker, faster, or smarter than trying to figure out “what is the single best solution.” It is the difference between Microsoft and Apple Computer. Microsoft has never been an innovator. It tries to figure out what will appeal to the most people, and comes up with one solution. Apple has always been known as an innovator. It tries to find out how people use things.
We tend not to honor teachers in the US. We think teachers can and should help students learn, but we don’t think the teacher is always right (except for certain professors in certain PA courses at IIT). American pragmatism is always the trump card in any discussion- “If you’re so smart, why aren’t you rich?” is a way of saying, if your idea is really better, then prove it. Everyone gets to conduct experiments every day, and sometimes we find one that works.
This even extends to governments- we refer to state and local governments as “laboratories of democracy,” suggesting that we let state and local governments experiment with policies and programs and when something seems to work, others can adopt it and do the same thing. America tends to not have philosophical movements- the twentieth century movement of existentialism, positivism, and communism never really developed big support in the US, because people didn’t see how talking would help doing. The only really American philosophy is pragmatism, which broadly speaking, simply says, “try things, and do what works.”
That is my answer, in the time I have allowed myself. I am no expert in these matters, but I have some experience, so maybe this will be useful. If it is not, you are free to say so, because I respect your ideas and the only way I can do better is if you show me how what I am doing is incorrect. Feel free to disagree or correct me or improve on the ideas.
A lot of that is now history. We still have rivers and coal, but the US economy is no longer factor driven or investment driven- maybe not even innovation driven. But even a wealth driven economy like the US can still do some innovation. What makes that so easy in the US?
Americans move a lot- across the street, across the town, across the country. One of the reasons we do that is so we can start over. Starting over is very easy in the US. People find life too hard in one place, and they move, thinking that things will be better somewhere else. Sometimes, that is true. Maybe the move gives people more energy, or they need to work harder to find a job and start a new life somewhere else. Bankruptcy laws do not take everything a person owns when they go bankrupt. People are allowed to keep their house (if it is not claimed by the bank in a foreclosure) and personal items. The social shame of going bankrupt certainly exists, but everyone deserves a new chance. Failure is not an opinion about someone’s life- it is only an experiment that didn’t work. Failure is not a collective loss, either. One of the benefits of being an American is that one does not have to feel responsible for actions of the government or actions of one’s business. There is a cost to that- we don’t have much loyalty to the government or to a business or to each other- but America is much more about “I” than about “we.”
The ease of starting over extends to the ease of starting a business- we talked about this in class. Credit is not hard to find. Everyone wants to help someone start a business. Partnerships and corporations are very easy to start. Laws permit partnerships and corporations to isolate their liability in classes of ownership, so that investors can feel free to invest while limiting potential losses. Even small and startup businesses can get credit, even if it is only from their credit cards or from a loan against the value of their house. It is easy to hire people, and easy to fire them or lay them off if work declines. Our strong sense of private property is very important. This means that when someone creates some value, they get to claim the value as their property.
Risk-taking is supported at every step by government policies and by the culture. This doesn’t mean that the government provides money, but that laws and regulations support taking risk by being able to isolate risk, making it easy to fail, easy to start up again, easy to move, easy to obtain credit, easy to fill out the paperwork to start a business, and easy to locate where one wishes.
For businesses and for government, the sense of new ideas and information and change and success flowing from the bottom up rather than from the top down has been essential to innovation. The further down the hierarchy we can push the authority and responsibility, the more ideas there are, the more minds there are to work on a problem. The less respect for authority, the more possibilities for change.
My friend Bob Yovovich interviewed a man holding the most patents in the US at the time- more than two hundred individually held patents. Bob asked him what it took to innovate- what is the source of inspiration. The answer was not that his family inspired him, or his company, or solving world problems. He said that the source of innovation was to be easily annoyed. Now maybe that does not work for everyone, but it fits with what my own experience has been. People who are easily annoyed with the problems they see in their company can simply leave the company and start their own business. People who are free to work on what they wish are more interested in the outcome than people who work on what they are told to work on. People who can see the possibility of making money from some innovation are inclined to work harder. This suggests the importance of small institutions- small businesses- which can be more flexible, more innovative because they don’t have the burden of layers of management or an extensive network of suppliers and customers to satisfy. Bigger is clearly not always better. Sometimes the US can innovate because it has a very large market, and the markets can be very diverse. Products have to be designed to meet the needs of different types of people with different needs. This is not to say that the markets in the US are always the most sophisticated- they are not. But designing for different customs and patterns of use make for more thinking about how people use things, and this is the ultimate pragmatism. “What works” is often quicker, faster, or smarter than trying to figure out “what is the single best solution.” It is the difference between Microsoft and Apple Computer. Microsoft has never been an innovator. It tries to figure out what will appeal to the most people, and comes up with one solution. Apple has always been known as an innovator. It tries to find out how people use things.
We tend not to honor teachers in the US. We think teachers can and should help students learn, but we don’t think the teacher is always right (except for certain professors in certain PA courses at IIT). American pragmatism is always the trump card in any discussion- “If you’re so smart, why aren’t you rich?” is a way of saying, if your idea is really better, then prove it. Everyone gets to conduct experiments every day, and sometimes we find one that works.
This even extends to governments- we refer to state and local governments as “laboratories of democracy,” suggesting that we let state and local governments experiment with policies and programs and when something seems to work, others can adopt it and do the same thing. America tends to not have philosophical movements- the twentieth century movement of existentialism, positivism, and communism never really developed big support in the US, because people didn’t see how talking would help doing. The only really American philosophy is pragmatism, which broadly speaking, simply says, “try things, and do what works.”
That is my answer, in the time I have allowed myself. I am no expert in these matters, but I have some experience, so maybe this will be useful. If it is not, you are free to say so, because I respect your ideas and the only way I can do better is if you show me how what I am doing is incorrect. Feel free to disagree or correct me or improve on the ideas.
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