This story about plans for an economic development project- a golf course- in Benton Harbor, Michigan, has many of the elements we discussed in class. Economic decay, racial problems, economic class issues, delay in approvals of plans, public participation, federal grants and regulations, and an attempt to make Benton Harbor into a more attractive location for business interests- a small version of the “entertainment machine.” Benton Harbor is about 90 minutes from Chicago, on Lake Michigan.
You can see the relationship of businesses moving, decay of property tax base, plans made by “outsiders” from the community, competition between towns for tax base, and the impact of federal money- even very old federal money.
The Chicago Reader is a free weekly newspaper that does some very good stories on TIF, Chicago politics, and urban development issues. -wdm
http://www.chicagoreader.com/features/stories/theseparts08/bentonharbor/
Chicago Reader
Benton Harbor Michigan
Controversy surrounds a plan to trade prime public parkland for the benefits a deluxe golf course might bring a town on the skids.
By Mick Dumke
May 22, 2008
The dunes rise higher than 100 feet above the wide beach at Jean Klock Park, the only public lakefront park in Benton Harbor, Michigan. In some places they’re almost pure white, glaring and brilliant in the sun, and in others they’re exploding with native trees, grasses, and wildflowers. From the crests you can see miles of beach to the south, more rolling dunes and bluffs to the north, downtown Benton Harbor to the east, and of course the countless shades of blue in Lake Michigan to the west. From certain spots, on certain extraordinarily clear nights, it’s possible to see the tiny sparkling lights of downtown Chicago, some 60 miles across the water.
To many of Klock’s biggest advocates, the dunes are the park: more than any other part of the 73-acre public space, they’re a refuge, a preserve, a salve for the blight that dominates the center of town a couple of miles to the east. “Perhaps some of you do not own a foot of ground. Remember then, that this is your park, it belongs to you,” said John Klock, a local newspaper publisher, when he gave the land to the city of Benton Harbor in 1917 in honor of his daughter.
But from the vantage point of the dunes it’s hard to fathom just how desperate Benton Harbor has become. Once an important regional port and industrial center, over the last few decades it’s become a national symbol of economic decline, best known for factory closures, struggling schools, racial isolation, and violent crime, including several days of arson and rioting that brought international media to town in 2003. Just about everyone around town, from every walk of life, agrees that something needs to be done—something drastic.
In 2005 the community’s most powerful business interests and elected officials unveiled a master plan they’d been working on for years. The Harbor Shores Project would revolve around converting 530 acres of polluted postindustrial land between Klock Park and downtown Benton Harbor into a tourist mecca for Chicagoans and other out-of-towners with money to spend. There’d be hotels, weekend and vacation homes, new businesses, maybe even a water park. And the main attraction would be a world-class golf course designed by Jack Nicklaus.
Hundreds or perhaps thousands of new jobs would be generated, according to the nonprofit organizations behind the plan, and Benton Harbor’s tax base could double. The city of Benton Harbor was all for it, as were the local congressman, federal housing and environmental officials, the governor and several state agencies, and officials in neighboring Saint Joseph, Benton Harbor’s white, middle-class “twin” (where I grew up and where much of my family still lives) across the Saint Joseph River. Millions of dollars in federal and state grants were already on the way, and millions more were coming from appliance giant Whirlpool, the primary economic engine in the area. Most residents responded with some mix of awe and enthusiasm, and over the next couple years even many of Benton Harbor’s most hardened cynics—people frustrated by years of empty promises and community deterioration—came around.
But there remained one snag—a sort of Harbor Shores sand trap. Not everybody felt quite right about turning those dunes in Klock Park into holes seven, eight, and nine of the exclusive new golf course.
One Sunday afternoon in mid-May, a small bus pulled onto the road that runs through the middle of the park. On most days the 19-seat vehicle is part of the Benton Harbor area’s public transit fleet, but today it was being used to shuttle curious locals on guided tours of the Harbor Shores site, compliments of the three nonprofit organizations serving as its developers, all closely tied to and largely funded by Whirlpool.
Wendy Dant Chesser stood at the front of the bus, gracefully keeping her balance as it bounced over rough pavement and then pulled off the road. Chesser heads the Cornerstone Alliance, one of the nonprofits, and serves as a top officer in another, the Alliance for World-Class Communities. Speaking with a friendly Kentucky lilt, she directed everyone’s attention toward the dunes.
Jack Nicklaus had been in town just the day before to look over the site again; he’s personally designing much of the course and has insisted from the start that it needs the grand lake views offered by the dunes.
“We don’t want this to be just another golf course—we need it to be spectacular,” Chesser said. “This is not a golf course project. It’s a community transformation project that uses golf as a driver.”
If the project goes through as planned, the dunes would no longer be open to the general population. The course would technically be public, but it’s expected to be expensive, more so than other high-rated courses in the area. On the other hand, the dunes wouldn’t actually be destroyed, Chesser pointed out—they’d be incorporated into the course. In return, Harbor Shores would donate land to the park—farther away from the lake—to make up for the lost acreage. It would also cover the park’s maintenance expenses and pay the city of Benton Harbor $30,000 a year in rent.
Several people on the bus, most of them white, middle-class couples from surrounding towns, murmured their approval. “You mean there are actually people in Benton Harbor opposed to this?” said one man, shaking his head.
Chesser smiled and nodded. “I will try to characterize the opposition,” she said. “They say they’re preservationists.” But the park is rarely used, she went on, because it’s a couple miles from residential neighborhoods and poorly maintained by a city government strapped for funds. “They say the park is supposed to be forever reserved for the children of Benton Harbor. Well, my argument is that the children of Benton Harbor are not using it today.”
Just a couple hours after Chesser’s bus made its stop near the dunes, Carol Drake was standing at the foot of them amid a multiracial group of golf course opponents. Drake, a wiry woman with a scratchy smoker’s voice, was toting a binder full of court records and planning documents related to Harbor Shores. “Four generations of my family have used the park,” she said. “It’s a part of me.”
A couple years ago Drake helped start Friends of Jean Klock Park and launched an accompanying Web site compiling historical records and documentation about the Harbor Shores plan. In recent weeks she’d been advertising her own tours in one of the local newspapers: “Would you like to take a tour of the Harbor Shores project to have a balance [sic] perspective?”
“Would I like to see something change around here?” she asked her group. “Absolutely! Absolutely! But not this.”
Her allies offered their amens. “They say nobody uses the park, but the trash needs to be picked up. I don’t get that,” said Clellen Bury, a retired factory worker and a cofounder of Friends of Jean Klock Park.
The sun was so bright that Larry Streeter was squinting, even though he wore his ball cap low. Streeter, a former electrical repairman, is the kind of guy who’s bursting with big ideas and happy to think through them aloud with whoever will listen: Benton Harbor could be brought back to health by filling its abandoned industrial land with wind turbines and creating an environmentally friendly power plant. The Harbor Shores people could build an environmental museum on the old industrial lands. Or how about a convention center in the middle of the wetlands? They could construct a planetarium—or maybe an aquarium. Why not both?
But Streeter can’t get behind any big idea that involves turning the dunes into a golf course. “When I stand on that dune, it’s not worth anything,” Streeter said. “But when Jack Nicklaus stands on it and raises his golf club like Moses raising his staff, it’s invaluable.”
Waterfront access and Chicago money have always steered Benton Harbor’s fortunes. The town was built around a naturally protected harbor just upstream from the mouth of the Saint Joseph River, and by the late 19th century it was thriving, particularly as a shipping center for fruit grown on Michigan farms and destined for Chicago and elsewhere. In 1911 in Saint Joseph, brothers Frederick and Lou Upton, along with their uncle Emery, invented an electric washing machine that sent clothes through a wringer to squeeze out the excess water. With $5,000 in seed money from a Chicago businessman, they founded the Upton Machine Company and within a few years were making wringer washers for Chicago retail giant Sears, Roebuck and Company. By the 1940s Upton had created the first automatic spin washer, which Sears sold as part of its Kenmore appliance line.
With World War II vets home and eager to set up house, the late 1940s and the 1950s were excellent years to be in the appliance business. The company, which by 1950 would become Whirlpool, expanded into refrigerators, dryers, air conditioners, and stoves. Its manufacturing plant on the border of Saint Joseph and Benton Harbor employed 1,400 workers. Other manufacturers in the area made parts for Detroit’s Big Three, which were trying to feed unprecedented demand for new cars.
As in other northern cities, the demand for labor helped fuel a massive migration of African-Americans from the south. Saint Joseph, historically the grittier of southwest Michigan’s twin cities, was known for being hostile to blacks, so they typically stayed away; Benton Harbor was the better choice.
By the early 1960s African-Americans made up 25 percent of Benton Harbor’s population of 19,000—the largest population in its history. But the city was struggling with its new diversity. Public housing and local schools were strictly segregated, and tensions often flared up when lines were crossed. In August 1966 police attempted to break up a group of several dozen teenagers as they walked from a black neighborhood toward downtown. The youths responded by throwing rocks, and a scuffle broke out that turned into five days of rioting. When a black teen was killed by a shot from a passing car, Governor George Romney (father of recent presidential candidate Mitt) dispatched nearly 1,800 national guard troops to patrol the streets.
Whites and their businesses started to migrate to Saint Joseph and other nearby communities. By 1970 African-Americans outnumbered whites in Benton Harbor, and by 1980 they made up nearly 90 percent of the population, which had fallen by more than a quarter from its peak. At the same time, the regional economy was undergoing a major transition. To save labor costs, manufacturers began moving jobs to the south, then overseas. By 1974 Benton Harbor’s unemployment rate had risen above 10 percent. It hasn’t been in single digits since.
Whirlpool’s corporate headquarters remain in Benton Township, just outside city limits, and the company still employs about 275 people at a Benton Harbor manufacturing facility. But in the mid-80s the company shuttered its large Saint Joseph assembly plant—just one of many blows the twin cities, with a combined population under 25,000, sustained during a year-and-a-half period during which 5,500 jobs were lost. Over the next decade the trend continued. Some departing companies left behind hundreds of acres of polluted brownfields and wetlands, including a 17-acre Superfund site contaminated by radioactive paint while it was occupied by parts supplier Aircraft Components.
The response from area political and business leaders was halting when there was a response at all. Most of the industrial land was deemed unusable and therefore sat unused. In Benton Harbor, crime rates surged and graduation rates fell. By 2000, a third of all families there were led by single mothers, and half of households with children were below the poverty line. As more families turned to public aid to get by, lots of people in Saint Joseph and neighboring communities—including former residents—dismissed the town with racial stereotypes. “Benton Harlem,” they said, had been overrun by welfare queens and dangerous criminals. Downtown retailers like Sears and JCPenney left for the new mall outside of town. Even the YMCA pulled out to build new digs in the middle of farmland just south of Saint Joseph. It got hard to find a Whirlpool product for sale in the city of Benton Harbor.
Saint Joseph’s trajectory was far different. Many of the families and businesses that fled Benton Harbor ended up there or in the nearby townships that are part of the same school system. Graduates almost all went on to college or skilled trades. As the Berrien County seat, Saint Joseph supported scores of government employees, while its courthouse and hospital brought lawyers and doctors. Despite the loss of low-skill manufacturing work, unemployment remained low as people moved into service jobs or simply left the area. The town’s permanent population, still more than 90 percent white, continued a long trend of slowly shrinking but becoming more affluent: it was down to about 8,800 in 2000 from 9,200 a decade earlier, and its median household income climbed to just below the national average. Tourism never took off there as it had in other lakefront towns to the south and north—a fact some locals blamed on Benton Harbor’s proximity and others on the town’s reputation for racial intolerance. But visitors gradually started to account for more and more of the Saint Joseph economy. Many of the working-class houses near the lake were bought by out-of-towners looking for a getaway, and the old furniture and clothing stores downtown gave way to gift shops and cafes.
Across the river there were numerous attempts to turn things around. In the mid-80s Michigan State University sent experts from its Center for Urban Affairs to work in the community and come up with solutions, but the effort fizzled. In 1986 the state began offering ten years of tax breaks to businesses that would set up shop in Benton Harbor; that helped slow the pace of decline but didn’t provoke any kind of major renewal. Whirlpool helped fund Cornerstone, a nonprofit development organization, starting in 1988, and a new arts district lured more outsiders downtown than anything in years. Private foundations and the state and federal governments offered millions of dollars in grants for schools, social services, and infrastructure.
But Benton Harbor’s tax base had eroded badly. There were times in the late 90s when low pay and chronic staff turnover left only three police officers patrolling the entire town of 11,000 at any given time. The Saint Joseph fire department began responding to calls in Benton Harbor because the Benton Harbor force was often short-staffed. The city commission, fractured by bitter political feuds, was simply unable to confront the town’s problems. Talented young people—including comedian Sinbad, several basketball stars, and countless top students—finished school and started their professional lives elsewhere, given few reasons to return.
In the late 90s, after Alex Kotlowitz published his book The Other Side of the River, about the racial divide between the twin cities, community leaders formed groups to get people talking about ways to turn the area’s diversity into a strength. There was a sense that the tide might be about to turn.
Then the riots broke out.
Early on the morning of June 16, 2003, police pursued a 28-year-old black motorcyclist through some of Benton Harbor’s poorest neighborhoods. The chase ended fatally when the rider, Terrance Shurn, crashed his bike into the side of an abandoned building. It wasn’t the first time a young Benton Harbor man had been killed during a scrape with local cops—in retrospect maybe it’s surprising that few previous incidents ever escalated into more violence.
That night furious residents showed up at the Benton Harbor city commission meeting and demanded reprisal against the cop involved in the chase. Afterward a group of people walked to the scene of the accident a few blocks away, and when police ordered them to disperse they turned rowdy. Someone set an abandoned house on fire. The group grew to dozens, then hundreds, and other buildings were torched. The four police officers on duty were outnumbered and, according to a later account from the police chief, poorly equipped and rattled by the anger and size of the crowd. Rocks and bricks were thrown; the police weren’t able to do much except wait it out.
Crowds the next night were larger and surlier. Cars were set afire, along with more buildings. Police were shot at, passersby were jumped and roughed up, firefighters were targeted with bricks. A photojournalist told local reporters that after he was attacked he hid in the bushes until the mob moved away. More than 200 police from surrounding areas showed up to help, and camera crews from around the country put the whole thing on TV. It was about 4 AM before the neighborhood was calm, but the following evening rain and fatigue seemed to keep the rage off the streets.
It could have been worse: only a handful of people ended up hurt, none critically, and all of the 20 or so buildings burned were abandoned or empty at the time. Long afterward police maintained that the violence had been instigated by a few “gangsters” itching for a fight. Investigators later determined that at least some of the perpetrators didn’t even live in Benton Harbor—they’d driven in from surrounding areas.
Many Benton Harbor residents argue that coverage of the “civil disturbance”—the word riot almost immediately fell out of favor locally—grossly distorted its scope. “I’m sitting in my home working on my computer about four blocks from where that’s all going on and I didn’t even know it was happening,” says Larry Streeter. “I get a call from California: ‘What the hell’s going on in Benton Harbor?’ I went outside and saw a couple of houses on fire. . . . Trust me, it was way overblown, and I was in the middle of it.”
But the damage was done. Lots of out-of-towners were already wary of Benton Harbor; after hearing stories that people just driving through had been caught up in a race riot, who’d want to come within a mile of the place?
Business leaders fretted about the possibility of a complete collapse in the area. Locals wondered what the next round of bad news would be. More riots when the summer heated up? A state takeover of the town? An announcement from Whirlpool that it was pulling the plug?
None of that happened, in part because Governor Jennifer Granholm moved quickly, sending a team of advisers to Benton Harbor to help community leaders create a 23-member “task force” charged with mapping out a turnaround for the town. Over the next few months the group, made up of area politicians, police, business leaders, and teenagers, met regularly, held public discussions, and visited communities in other parts of the state.
In October 2003 the task force issued a 103-page report listing dozens of suggestions and goals related to criminal justice, public health, education, and diversity, from the abstract and obvious (“Reducing the high school drop-out rate in Benton Harbor is central to improving the life chances of area youth”) to the ultraspecific (“Increase the capacity of the community access [TV] channel in Benton Harbor”).
The section on economic development was no less sprawling than the rest of the report, recommending things like a summer-jobs program for youth and an expansion of job-training services. But at its center was a proposal to stake Benton Harbor’s future on tourism. Considering “Benton Harbor’s proximity to Chicago, Indianapolis, and Detroit, the Berrien County market is within a four-hour drive of millions of people,” the report read. “The ability to grow tourism can create job opportunities ranging from entry level wait staff to hospitality management professionals.” The ideas for making Benton Harbor more tourist friendly included building an amusement park, creating a “fishing village” to attract second-home buyers, and starting a “golf course and first tee program that affords Benton Harbor residents preferred opportunities in conjunction with the influx of tourism.”
Yet the specific plan that emerged over the next two years wasn’t part of the report. And it became increasingly clear that the task force wasn’t the only forum for discussion about Benton Harbor’s future—or even the most important one.
In August 2003, even as the task force was meeting, Granholm’s office announced that Whirlpool and the state department of transportation were giving the city of Benton Harbor 29 acres of unused land as part of a new project to develop an area between downtown and Klock Park. Granholm announced that it would eventually include new condominiums and recreational areas along the polluted Paw Paw River.
Almost two more years passed before leaders began to share significant details about the project with the public. They emphasized that it would turn unused, contaminated land into new housing, retail, and possibly a Jack Nicklaus-designed golf course while generating millions of dollars in tax revenues and hundreds of jobs. And it would include a set of “community benefits” plans to provide literacy programs, job training, parenting classes, improved housing, and other social services to Benton Harbor’s neediest residents.
“We’ve already asked, ‘If not this, what?’ and ‘If not now, when?’” Jeff Noel told the Herald-Palladium in May 2005. Noel, Whirlpool’s corporate vice president for communications and public affairs, headed the Cornerstone Alliance before Wendy Dant Chesser. “Now we’re ready to ask, ‘Are there any better ideas out there?’” The Benton Harbor city commission agreed that June to proceed with additional planning, though some commissioners had concerns about the lack of information they’d received. Project leaders promised more information would be forthcoming.
Not until drawings of the development began circulating that summer did it become clear that chunks of Klock Park—about 22 of its 73 acres—would be surrendered to Harbor Shores development. Drake and other park advocates vowed to fight the plan; its proponents said the plan wasn’t final and emphasized that the dunes would only be leased out, not given away or sold.
In truth the golf course had become more than an engine for developing Benton Harbor—it was at the center of negotiations whose outcome would affect hundreds of workers in Michigan and beyond.
Granholm was elected governor in 2002, and for much of the time since then, Michigan has had one of the worst economies in the nation, a result primarily of the staggering decline of the Detroit auto industry. From mid-2000 to the end of 2007 the state lost more than 400,000 jobs, mostly in manufacturing, and consistently had the country’s highest unemployment rate. Last year even the Onion took a poke at the situation, under the headline “Thousands Lose Jobs as Michigan Unemployment Offices Close.”
Whirlpool was having its own problems, though they weren’t obvious from the outside—in 2003 and 2004 the company reported record sales, including sizable increases in Europe and Latin America, and posted healthy earnings. But word around the twin cities was that the company feared it couldn’t recruit and keep the diverse, smart young people it needed to run a Fortune 200 company when they had the choice to live in places like New York, San Francisco, or Chicago.
Whether Whirlpool ever directly threatened to leave Benton Harbor is a matter of dispute—the Detroit Free-Press reported last year that it did, but Jeff Noel says that’s not true. “The answer is unequivocally no,” he says. “We did not threaten to leave this area.” Either way, it’s clear the company sought and received Granholm’s help with plans to make the area attractive to its executives and visitors from out of town. Some Whirlpool leaders, including David Whitwam, the CEO from 1987 to 2004, were talking about turning its vacant land and nearby contaminated property into a “resort-type development”—possibly including a golf course—as early as the 1980s, according to Chesser. But it never happened. Whitwam used to say the costs of cleaning up the land were too high. But then he never worked out a deal where the public would pick up part of the tab.
In August 2005 Whirlpool announced that it would acquire its longtime rival Maytag. If there were ever a convenient time for the company to pull out of Benton Harbor, this was it. But as the acquisition moved to a close over the next few months, Granholm worked to ensure that wouldn’t happen. The following May Whirlpool announced that the change would eliminate 3,000 old Maytag jobs in Iowa, Illinois, Canada, and Mexico—but bring 1,100 to Ohio and 400 to Saint Joseph and Benton Harbor.
“When we acquired Maytag, people asked us, ‘If you’re going to be expanding, would you expand here?’” says Noel. “And we looked around like any good business would and asked, ‘Where would it be best for us?’ We needed to have the best package we could. In the end, in fact, it was an offer from the governor, saying, ‘We certainly hope you will bring the jobs here [to the twin cities]. And we know you want to see the Harbor Shores project come together, so why don’t we do it all together?’”
Within the week Granholm’s office announced it was awarding Whirlpool $10.4 million in tax credits. And that wasn’t all. The state was also finding more than $10 million more for the Harbor Shores project, mostly for environmental cleanup and road construction. The governor promised to help the developers with environmental permits and other regulatory assistance, and she delivered. Three threatened plant species grow within the project boundaries, according to the Michigan Department of Environmental Quality, but officials there ruled that the development wouldn’t seriously affect them. The MDEQ also dismissed questions from some residents about the effects of fertilizer runoff on the lake. And while acknowledging opposition to the use of dunes for the golf course, a department official wrote that “we accept the tenet that the City most directly represents its people.” As the Benton Harbor commission had approved the deal, the department had no objections.
Meanwhile Whirlpool agreed to pitch in another $12 million. More help came from area congressman Fred Upton—who’s Frederick’s grandson and, according to his most recent economic disclosure statement, holds at least a million dollars’ worth of Whirlpool stock. After the congressman’s lobbying, several federal agencies offered Harbor Shores grants worth millions of dollars more. The bulldozers went to work clearing land and removing contaminated debris—more than 100,000 tons of it in the first few months.
While the use of the dunes remains the central focus of most of the project’s opponents, some also wonder if the jobs it creates really will help Benton Harbor residents. “I know the project could be a catalyst. But as it is designed right now, it is not,” says Juanita Henry, the lone Benton Harbor city commissioner who’s been openly skeptical about Harbor Shores. Local residents, she believes, don’t need the kind of jobs created by a golf course. “Getting us to clean the trash, showers, bathrooms, doing menial work. . . . These are all low-end jobs and very seasonal. I just want to make sure our citizens get something to help them right now.”
Drake points to a pair of studies commissioned by Harbor Shores that together suggest a fair amount of guesswork is involved in predicting the project’s economic benefits. The first, conducted in 2005, estimates that Harbor Shores could create more than 2,500 permanent jobs and $78 million in annual personal income by 2012; the second, completed this year, puts the figures at 700 jobs and $29 million in annual personal income by 2020. “The majority of home owners in the city are single mothers,” Drake says. “Their daily struggle is to survive every day. And there’s not going to be one job created by this project that will change somebody’s lives.”
That’s not the right way to look at it, says Marcus Robinson, who’s directing the community-benefits portion of the project. Robinson says Benton Harbor only has about 5,000 adults, so even though its unemployment rate is about 17 percent, that only works out to about 850 people—and that’s a number that can be lowered quickly.
“When you wrap your head around that, you say, ‘We can do something about this once and for all,” he says, adding that the possibilities aren’t limited to seasonal work on the golf course—there are already training programs that can help people move into jobs in health care and the trades, for example. “Your personal trajectory is totally up to you—if you want to get trained for $10- or $12-an-hour jobs and that’s all you want to do for yourself, that’s fine,” he says. “But when we talk about job creation, we’re not just talking about the golf course itself. If we have the course we’re supposed to have some homes built, and we’re going to need some laborers to build them. Those are good-paying jobs. They won’t last forever, and they won’t be for everybody, but we’re talking about a couple of hundred of them. And once this thing is done, they’ll have some skills they can take with them.”
Last fall the deal was abruptly put on hold—not because the opposition succeeded but because of a supposedly routine review by a federal agency with little direct involvement in the project.
In the 1970s the city of Benton Harbor had received a grant from the National Park Service to build a public bathhouse at Jean Klock Park. In accepting the $50,000, the city agreed that all of the park had to remain open for public recreational use forever; any conversion of parkland would have to be offset by new land of equal or greater utility.
In October the Park Service nixed the city’s proposal to lease the dunes in return for permanent possession of about 40 acres of wetlands that stretch up to a couple of miles away. The agency’s explanation seemed damning: the city hadn’t properly solicited public comment on the proposal, and the replacement parcels weren’t worth as much as the leased land. Worst of all, the wording of the agreement gave so much park access to Harbor Shores that “it is our opinion that the control and tenure of the entirety of Jean Klock Park and that of all of the proposed replacement lands have also been conveyed from Benton Harbor” to Harbor Shores, according to a letter outlining the agency’s objections.
Supporters of the land swap were shocked. “While it is remarkable that a three decades old, $50,369.75 federal grant for bathrooms at Jean Klock Park . . . has resulted in the minor delay, it is imperative that every ‘I’ is dotted and ‘T’ is crossed on a project of this magnitude that will transform the entire region,” Congressman Upton said in a written statement. The governor vowed to appeal the decision.
She didn’t need to. As work on other parts of the project continued, Harbor Shores and the city of Benton Harbor consulted with parks officials and rewrote their agreement in a way they believe clears up the question of control over Jean Klock Park. The developers have offered a few alternative tracts and promised to outfit them with more amenities, such as hiking trails, but Drake and other park defenders argue that the replacement parcels are polluted and of little use to the public.
All that remains is the public comment portion of the agreement. Dozens of people attended a public hearing in mid-April, according to the Herald-Palladium, and the vast majority expressed support for the project. Both sides encouraged their supporters to submit their views in writing to the city before the comment period ended on May 17. The city is expected to forward these comments, with its own responses, to the Park Service sometime in the next month, and the agency will try to make a final decision by mid-July.
“We’ll have to very carefully read the final documents—we never want to have the appearance of being a rubber stamp for anyone,” said Bob Anderson, chief of the midwest region’s grants division.
But he stressed that his agency isn’t out to determine the worthwhileness of the project—only whether the terms of the grant are being followed. “I feel very badly for everyone who has a personal attachment to this—I wish we could wave a wand and make everyone happy, but we can’t,” he said. “We are neutral on this. We don’t live there and we don’t own the property. It’s one of those situations that when the facts come across our desks we’ll do our best to review them.”
Larry Streeter, the retired repairman, says he can’t get past the feeling that this is all a way for Whirlpool to sweeten the deals it offers its high-paid executives. “I don’t even know if you can call this gentrification—it’s beyond that,” he said. “The deal was made long ago to make this into a French Riviera. This will be their playhouse. . . . But for us, we’re trying to save our lakefront.” Like Juanita Henry, Streeter doesn’t believe jobs that pay living wages will come out of the project.
Noel says it’s “preposterous” to think Harbor Shores is all about entertainment for Whirlpool execs, noting that the company has invested in a range of municipal and social service projects in the community for years. Plus, he adds, golfers don’t need Harbor Shores as much as the city’s tax base does: there are several other renowned golf courses within a short drive of Benton Harbor. “But I would say that they’re right in one respect,” he says. “Whirlpool is interested in this project to help this community achieve sustainability. And yes, if that happens, we too will benefit.”
In the time since the Park Service intervened, Benton Harbor’s needs have again been thrown into stark relief. Last fall a mishap at the city’s antiquated water plant, which sits at the south end of the Klock Park dunes, forced residents to boil their drinking water for several days. And in February the Herald-Palladium revealed that the MDEQ had recently given the water system a “deficient” grade. City officials promised that public health was not at risk, but they said that because they didn’t have the money to make repairs they would seek a $14.5 million loan from the state.
Sunday, May 25, 2008
Sunday, May 18, 2008
PA 578 Syllabus and Course Information
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)
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)
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.
Subscribe to:
Posts (Atom)