The New Green Economy Conference Community Economic Development Strategies David Rouse, ASLA, AICP, PP, LEED AP Principal,...
1.  The Traditional Approach to Economic Development 4.  Case Study: Cumberland, MD 2.  Alternatives / The Restoration Eco...
<ul><li>Communities compete with each other to attract large new businesses using subsidies such as tax abatements, tax in...
<ul><li>Tax abatements and other subsidies divert revenues from essential public services (schools, infrastructure, etc.) ...
<ul><li>Fort Collins, CO </li></ul><ul><ul><li>In 1986 provided a subsidy package worth more than $50 million to attract a...
<ul><li>Invest in (re)training people for jobs in the green economy </li></ul>Alternatives: Workforce Development
<ul><li>…  is a strategy that builds on existing resources—natural, cultural and structural—to create valued products and ...
<ul><li>“ We have the capacity and ability to create a remarkably different economy, one that can restore ecosystems and p...
<ul><li>“ I don’t think most people appreciate or understand how fragile and underfunded our country’s infrastructure is. ...
<ul><li>Institutional barriers </li></ul><ul><ul><li>Traditional economic development practices </li></ul></ul><ul><ul><li...
Case Study: Cumberland, MD
<ul><li>Key road, railroad, and canal junction during the 1800s; was the second largest MD city after Baltimore </li></ul>...
Cumberland: Reinventing a Manufacturing Economy Kelly Springfield Tire Plant to Riverside Industrial Park
<ul><li>In 1993 Cumberland’s Canal Place (the terminus of the historic C&O Canal) was designated Maryland’s first state he...
<ul><li>Sustainable Economic Development Strategic Plan (2005) </li></ul><ul><li>Builds on Canal Place, the Comprehensive ...
<ul><li>Promote economic activity that imports financial capital to Cumberland from outside of the region while sustaining...
<ul><li>Defined not as attracting specific companies, but rather as  business / industry sectors  and  social / occupation...
Strategic Directions <ul><li>Tourism:  Continue to build Cumberland as a center for visitation through cultural / heritage...
Strategic Directions <ul><li>Restoration:  Establish Cumberland and Allegany County as leaders in rehabilitation of the bu...
 
 
Five Years Later: How is Cumberland Doing? <ul><li>Progress has been made, e.g.: </li></ul><ul><ul><li>Canal Place develop...
<ul><li>Albany, NY Comprehensive Plan </li></ul><ul><li>Austin, TX Comprehensive Plan </li></ul><ul><li>Chautauqua County,...
The New Green Economy Conference Community Economic Development Strategies David Rouse, Principal, Wallace Roberts & Todd ...
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Green Economy Presentation

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  1. 1. The New Green Economy Conference Community Economic Development Strategies David Rouse, ASLA, AICP, PP, LEED AP Principal, Wallace Roberts & Todd, LLC
  2. 2. 1. The Traditional Approach to Economic Development 4. Case Study: Cumberland, MD 2. Alternatives / The Restoration Economy 3. Barriers to Community Revitalization What I Will Cover
  3. 3. <ul><li>Communities compete with each other to attract large new businesses using subsidies such as tax abatements, tax increment financing, etc. </li></ul><ul><li>Success is measured by the “size of the kill” (i.e., new jobs provided by new businesses) </li></ul><ul><li>A cost-benefit analysis is rarely conducted to determine if the public benefits outweigh the subsidies and external impacts </li></ul><ul><li>Economic development is conducted in a “silo” separate from other activities such as planning and capital improvement programming </li></ul>The Traditional Approach to Economic Development: Big Game Hunting
  4. 4. <ul><li>Tax abatements and other subsidies divert revenues from essential public services (schools, infrastructure, etc.) </li></ul><ul><li>Large subsidies are required for each local resident employed, particularly when the jobs filled by outsiders are factored in </li></ul><ul><li>Existing local businesses that do not receive subsidies are placed at a competitive disadvantage </li></ul><ul><li>Businesses from outside have little attachment to the community and can reduce their workforce and even leave when the subsidies expire </li></ul><ul><li>In most cases the business would have located there anyway </li></ul>The Traditional Approach to Economic Development: What’s Wrong With This Picture?
  5. 5. <ul><li>Fort Collins, CO </li></ul><ul><ul><li>In 1986 provided a subsidy package worth more than $50 million to attract an Anheuser-Busch brewery </li></ul></ul><ul><ul><li>Only 133 of 500 (27%) employees hired by brewery were local residents </li></ul></ul><ul><ul><li>Cost to local taxpayers was $376,000 per local resident employed </li></ul></ul><ul><ul><li>Source: Eben Fodor, Better Not Bigger, 1999 </li></ul></ul><ul><li>Wal-Mart: Any Town, USA </li></ul><ul><ul><li>A 2004 study documented $1.008 billion of taxpayer subsidies provided to 244 Wal-Mart stores and distribution centers in 35 states (average $4 million / facility) </li></ul></ul><ul><ul><li>Over 90% of distribution centers received subsidies (comparable figures not available for stores) </li></ul></ul><ul><ul><li>Source: Good Jobs First, Shopping for Subsidies: How Wal-Mart Uses Taxpayer Money to Finance Its Never-Ending Growth, May 2004 </li></ul></ul>The Traditional Approach to Economic Development: What’s Wrong With This Picture?
  6. 6. <ul><li>Invest in (re)training people for jobs in the green economy </li></ul>Alternatives: Workforce Development
  7. 7. <ul><li>… is a strategy that builds on existing resources—natural, cultural and structural—to create valued products and services that can be sustained for local benefit. </li></ul><ul><li>Appalachian Region Commission (www.arc.gov) </li></ul><ul><li>… is about taking what you already have and maximizing its potential. </li></ul><ul><li>Anne B. Pope, Federal Co-Chair, Appalachian Region Commission </li></ul>Alternatives: Asset-Based Economic Development
  8. 8. <ul><li>“ We have the capacity and ability to create a remarkably different economy, one that can restore ecosystems and protect the environment while bringing forth innovation, prosperity, meaningful work, and true security.” </li></ul><ul><li>Paul Hawken, The Ecology of Commerce, 1993, on the “Restorative Economy” </li></ul><ul><li>Reuse existing buildings </li></ul><ul><li>“ The greenest building is the one already built.” (wwwt.thegreenestbuilding.org). </li></ul><ul><li>“ Could LEED for Existing Buildings Transform the Building Industry?” </li></ul><ul><li>Urban Land Magazine, November/December 2009 </li></ul>Alternatives: The Restoration Economy
  9. 9. <ul><li>“ I don’t think most people appreciate or understand how fragile and underfunded our country’s infrastructure is.  Our roads, bridges, schools, and other public works…are literally crumbling.” </li></ul><ul><li>Buck Denton, The Conservation Report, January 2009 </li></ul>Alternatives: The Restoration Economy
  10. 10. <ul><li>Institutional barriers </li></ul><ul><ul><li>Traditional economic development practices </li></ul></ul><ul><ul><li>Other practices (zoning codes, infrastructure policies, lending practices) that promote sprawl at the expense of older communities </li></ul></ul><ul><li>Lack of integrated thinking </li></ul><ul><ul><li>Economic development, planning, natural / cultural resource restoration, capital improvement programming, etc. addressed separately </li></ul></ul><ul><li>Lack of a shared community vision and direction for true revitalization </li></ul><ul><li>Lack of capacity for implementation </li></ul><ul><ul><li>Public / private / nonprofit sector partnerships (government can’t do it alone) </li></ul></ul>Barriers to Community Revitalization
  11. 11. Case Study: Cumberland, MD
  12. 12. <ul><li>Key road, railroad, and canal junction during the 1800s; was the second largest MD city after Baltimore </li></ul><ul><li>The “Queen City” developed as a manufacturing powerhouse during the 18 th and first half of the 19 th centuries </li></ul><ul><li>Declined after WWII due to a string of industrial plant closures </li></ul><ul><li>In 1987 the Kelly Springfield Tire Plant was the last major manufacturing plant to close (relocated to Akron, Ohio) </li></ul><ul><li>Generous state subsidies enticed parent company Goodyear to retain Kelly Springfield’s corporate headquarters in Cumberland but it closed as well when the subsidies expired in 1998 </li></ul><ul><li>The City’s population has declined from 39,483 residents in 1940 census to 20,495 (estimate) in 2008 </li></ul>Case Study: Cumberland, MD
  13. 13. Cumberland: Reinventing a Manufacturing Economy Kelly Springfield Tire Plant to Riverside Industrial Park
  14. 14. <ul><li>In 1993 Cumberland’s Canal Place (the terminus of the historic C&O Canal) was designated Maryland’s first state heritage area </li></ul><ul><li>In 1996 the City adopted a new Comprehensive Plan with a vision statement to guide revitalization efforts: </li></ul><ul><li>An excellent place to live, an enjoyable place to visit, and a supportive place to build a profitable business. </li></ul>Cumberland: Reinventing a Manufacturing Economy
  15. 15. <ul><li>Sustainable Economic Development Strategic Plan (2005) </li></ul><ul><li>Builds on Canal Place, the Comprehensive Plan, and other initiatives to promote development of a “new economy” for the 21 st century </li></ul><ul><li>Objectives </li></ul><ul><ul><li>Establish principles and criteria for sustainable economic development </li></ul></ul><ul><ul><li>Define target market niches based on Cumberland’s physical, economic, and social assets </li></ul></ul><ul><ul><li>Define strategic actions to promote development of the target niches through partnerships </li></ul></ul>Cumberland: Reinventing a Manufacturing Economy
  16. 16. <ul><li>Promote economic activity that imports financial capital to Cumberland from outside of the region while sustaining natural, social and human capital as measured by: </li></ul><ul><ul><li>Environmental (natural and historic) resource preservation </li></ul></ul><ul><ul><li>Viability of social and cultural institutions </li></ul></ul><ul><ul><li>Economic access and opportunities for city residents </li></ul></ul>Sustainable Economic Development Principles Sustainability Economy Environment Society
  17. 17. <ul><li>Defined not as attracting specific companies, but rather as business / industry sectors and social / occupational groups related to Cumberland’s assets </li></ul><ul><li>Priority business / industry sectors </li></ul><ul><ul><li>Tourism </li></ul></ul><ul><ul><li>Restoration / rehabilitation </li></ul></ul><ul><li>Priority social / occupational groups </li></ul><ul><ul><li>Technological entrepreneurs </li></ul></ul><ul><ul><li>Artists </li></ul></ul>Target Market Niches
  18. 18. Strategic Directions <ul><li>Tourism: Continue to build Cumberland as a center for visitation through cultural / heritage tourism, outdoor recreation, and special attractions / events. </li></ul><ul><li>Artists: Establish Cumberland as a regional arts destination and residential center for artists, linking to a strategy of improving quality of life for residents and attracting visitors. </li></ul><ul><li>Technology: Establish Cumberland as a center of technology-based entrepreneurial activity by attracting “teleworkers” and “telebusinesses” to the City and by increasing the computer skills of residents </li></ul>
  19. 19. Strategic Directions <ul><li>Restoration: Establish Cumberland and Allegany County as leaders in rehabilitation of the built and restoration of the natural environment. </li></ul><ul><li>Outreach: Initiate an outreach program to city residents and regional institutions to build support and involvement in plan implementation. </li></ul>
  20. 22. Five Years Later: How is Cumberland Doing? <ul><li>Progress has been made, e.g.: </li></ul><ul><ul><li>Canal Place development / completion of the Allegheny Highlands Trail </li></ul></ul><ul><ul><li>Artist relocation program / Allegany Arts Council facility </li></ul></ul><ul><ul><li>AllCoNet internet partnership: Cumberland is a “wifi” community </li></ul></ul><ul><li>Some initiatives have not progressed as rapidly </li></ul><ul><ul><li>The proposed Historic Preservation Institute lost momentum when its main “champion” passed away </li></ul></ul><ul><ul><li>Restoration training has progressed at Allegany Community College </li></ul></ul><ul><li>Limited organizational capacity has been an issue </li></ul>
  21. 23. <ul><li>Albany, NY Comprehensive Plan </li></ul><ul><li>Austin, TX Comprehensive Plan </li></ul><ul><li>Chautauqua County, NY Comprehensive Plan </li></ul><ul><li>Donegal Region (Lancaster County, PA) Comprehensive Plan </li></ul>Current Projects
  22. 24. The New Green Economy Conference Community Economic Development Strategies David Rouse, Principal, Wallace Roberts & Todd CONTACT INFO: drouse@ph.wrtdesign.com

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