The Economic Impact of Livable Communities

Transcript The Economic Impact of Livable Communities

The Economic Impact of Livable Communities

John Marron

Indiana Association for Community Economic Development

Indiana Association for Community Economic Development (IACED)

Dedicated to serving those who build strong Indiana communities Works to strengthen both the community economic development industry and local organizations through:

   

Public policy advocacy, Member collaboration, Training and professional development, Technical Assistance Our nearly 300 members across the state rehabilitate and construct housing, create jobs, develop real estate, support small business development and deliver social services 2

A note on language…

Livable Communities

(S. 1619, AARP)

Healthy Communities

(Center for Disease Control, Robert Wood Johnson Foundation)

Sustainable Communities

(LISC, HUD-EPA-DOT)

Comprehensive Community Economic Development

(IACED)

Comprehensive Community Initiatives

(MacArthur Foundation, National Housing Institute, Institute for Comprehensive Community Initiatives)

Neighborhood Partners

(Annie E. Casey)

The TRIPLE BOTTOM LINE…

Healthy Environment Environmental Justice Preventing and Limiting Pollution Equity Preserving Economic Opportunity for Future Generations Community Building Inclusivity Asset Building Energy Efficiency Workforce Development Subsidy for Reducing Use of Natural Resources Access to Economic Opportunity 4

In short…

“We all want economic prosperity and a high quality of life for our families, regardless of where we live or what we do for a living.

Across America, a new movement is emerging as citizens work together to build more quality into their lives and make their communities more livable. What are livable communities? People want neighborhoods with safe streets and good schools. They want good jobs that aren’t hours away from home. They want housing they can afford and neighborhood parks where children can play. They want to get to work or run errands without spending hours in traffic. They want clean air to breathe and clean water to drink. They want to live in a place that feels like a community.” -Vice President, Al Gore (2000)

Comprehensive Community Economic Development is….

“An inclusive, holistic, asset- and community based process by which a shared vision for an enhanced quality of life is created and articulated in a results-based plan”

Urban Examples: Chicago Rural Examples: McDowell County, West Virginia Indianapolis South Bronx, New York City Duluth, Minnesota Richmond, Virginia San Diego Washington DC Floyd County, Virginia Moscow, Idaho Murray, Kentucky Dubuque, Iowa Sparks, Nevada Fayette County, Pennsylvania 6

So what does a process look like?

Organize

Organize and get involved in the neighborhood: Community Building

Decide Act

Decide collectively on the priorities for the neighborhood: Quality of Life Planning Act on those priorities to implement change in the neighborhood: Comprehensive Community Economic Development 7

That’s great but…

What role does Comprehensive Community Economic Development in promoting public health???

The process is predicated on a resident-led planning process… As these planning processes have played out around the state – residents often articulate that they want sidewalks, multi-

use paths, bike lanes, access to healthier food, access to locally-grown food, more walkable neighborhoods, more destinations within walking distance of their homes, safer streets, better access to transit, better access to health care…

Okay, that’s fine, but you’re still a long way from discussing the economic impact of livable communities…

Multiple Choice Question:

At this point you think… A. I totally see the connection; in fact, I could be giving this webinar.

B. I believe this guy is going to get to the point, but I’m not sure when C. I wonder what I can find on YouTube D. What?!?

ASSET BUILDING

Asset-building is an anti-poverty strategy that helps low-income people move toward greater self-sufficiency by accumulating savings and purchasing long-term assets. An example of an asset-building strategy is the use of Individual Development Accounts, or IDAs, are special matched savings accounts designed to help low-income people accumulate savings for investment in a long term asset.

Asset Building strategies help low-income residents to purchase or rehab a home, capitalize a small business, or invest in an education. BUT… Asset Building strategies require participants in the program to make monthly (or more frequent) financial contributions to participate in the programs. MEANING…

ASSET BUILDING

IT’S EXTREMELY DIFFICULT TO TALK SERIOUSLY ABOUT MEANINGFUL ASSET-BUILDING STRATEGIES IF LOW INCOME RESIDENTS CANNOT GET TO WORK!

In other words, Walkability, Bikeability and Transit are extremely important to economic vitality; which in turn, enables families to build assets. According to the 2006-2008 American Community Survey, more than 13.35 million Americans get to work by some means other than automobile.

ASSET BUILDING

Multiple Choice Question:

According to the 2006-2008 American Community Survey, how many Indiana residents get to work by some means other than automobile: a. 53,253 b. 98,742 c. 135,215 d. 153,992

ASSET BUILDING

Multiple Choice Question:

According to the 2006-2008 American Community Survey, how many Indiana residents get to work by some means other than automobile: a. 53,253 b. 98,742 c. 135,215 d. 153,992

ASSET BUILDING

Don’t try this at home, but…

If you were to multiply the number of Indiana residents that are non-automotive commuters (135,215) with the median household income ($48,675) for the State of Indiana, you would find more than $6 billion in wages earned by non-automotive commuters.

Disclaimer: Due to the extremely suspect methodology represented here, the economic impact stated should not be used as a meaningful figure in any way, shape or form, You especially should not use it while operating heavy machinery, It is meant for educational purposes only; and of course, it is void where prohibited.

So the point is…

ASSET BUILDING

There are a number of Indiana residents who are able to earn money and build assets without commuting to work in an automobile. Collectively, this group has a significant economic impact on the state.

ASSET BUILDING

DID YOU KNOW…

According to the 2000 Census, there are 22 cities and towns in Indiana with populations greater than 10,000 where more than 10 percent of the population fifteen and over live in a car-free household.

East Chicago, Gary, Evansville, South Bend, Marion, Richmond, Hammond, Terre Haute, Crawfordsville, Frankfort, Bedford, LaPorte, Bloomington, Michigan City, Vincennes, Muncie, Speedway, Kokomo, Elkhart, Anderson, Washington, and New Albany.

Okay, maybe you have a point… What else can you teach me?

COST OF LIVING:

Traditionally, cost of living has been determined by the cost of housing-related expenditures. A household spending more than 30 percent of its income on housing related expenses is considered to be ‘cost-burdened.’ The Center for Neighborhood Technology issued a 2010 report detailing the costs of housing and transportation together and considered spending more than 45 percent of a household’s income on housing and transportation combined to be ‘cost burdened’.

Source: H + T Affordability Index

COST OF LIVING

Housing costs are less than 30 percent of household income Housing costs exceed 30 percent of household income 19

Source: H + T Affordability Index

COST OF LIVING

Combined housing and transportation costs are less than 45 percent of household income Combined housing and transportation costs exceed 45 percent of household income 20

WORKFORCE DEVELOPMENT

Sprawling patterns of development geographic concentration of poverty. reduce opportunities for low-skill workers to participate in the economic mainstream and contribute to the It has been argued that if unchecked, sprawl will continue to undermine the basic systems necessary for residents of inner cities and suburbs to gain skills and jobs.

WORKFORCE DEVELOPMENT

Due to sprawl, many entry level jobs have relocated to suburbs and led to a number of difficulties for central cities: Diminished tax base for the central city Reduced access to services, including education (the foundation of workforce development) Higher transportation costs Aging infrastructure Exacerbated inequalities within a region Reduced economic competitiveness of a region Concentrations of poverty

WORKFORCE DEVELOPMENT

Best practices to reduce the negative impact of sprawl on workforce development include: Regional approaches to tax policy (see Minneapolis) Asset-based Community Development (see Kretzmann, McKnight) Cluster-Based Economic Development (see Michael Porter) Targeted Philanthropic Efforts (see Kalamazoo Promise) Microenterprise Strategies (see Urban Institute) Subsidies for new businesses that are ‘location efficient’ (see Good Jobs First) Transit Oriented Development (see various) Mixed Use zoning districts (see Smartgrowth America and others)

So Back to Comprehensive Community Economic Development for a minute…

MULTIPLE CHOICE QUESTION:

Which of the following are important aspects of a Comprehensive Community Economic Development process?

a. Community Building and Collaboration b. Cluster Analysis and Mapping c. Surveying and Analyzing Survey Data d. Putting the each shoe on the correct foot with your eyes closed

COMMUNITY BUILDING

The process of developing resident leadership and viable neighborhood institutions which can produce tangible improvements for the community. This occurs through leadership training, relationship development among leaders, and targeted collaborative action.

COLLABORATION

Denotes a durable and pervasive relationship. Collaborations bring previously separated organizations into a new structure with full commitment to a common mission. Such relationships require comprehensive planning and well-defined communication channels operating on many levels. 26

So what do community building and collaboration have to do with the economic impact of healthy communities?

Source: Keiffer and Reischmann “Contributions of Community Building to Achieving Improved Public Heath Outcomes” Final Report (2004)

In Short…

“Community building strategies are believed to create or increase the capacity and connections between individual, organizations and the community-at-large and to those outside of the community that will lead to growing community awareness of the causes and methods for prevention or amelioration of health problem, and readiness and empowerment to engage in change. These processes also lead to development of, and increased access to, resources necessary to successfully implement and sustain programs, policies, and related activities designed to reduce behaviors and conditions in the social and physical environment that are detrimental to health, and to improve or increase behaviors and environments that promote health. Sustainability is essential, given the duration of effort needed to achieve lasting change in most public health outcomes. The mission of achieving equity and social justice underpins both community building and public health strategies and outcomes.” Source: Keiffer and Reischmann “Contributions of Community Building to Achieving Improved Public Heath Outcomes” Final Report (2004)

TRADITIONAL ECONOMIC DEVLEOPMENT

Economic development generates community wealth for the well-being of inhabitants. Economic development improves quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax

base. 30

GETTING THE TYPES OF BUSINESSES YOU WANT…

Site Selection Considerations for Businesses:

Access to Transportation Network Adequate Infrastructure Access to an Adequately Skilled Workforce Ease of Obtaining Site Control, Permitting, etc.

Location among Industry Clusters Quality of Life Considerations Subsidies

GETTING THE TYPES OF BUSINESSES YOU WANT…

ATTRACTING THE TALENT YOU WANT…

Locational Considerations for Knowledge Workers:

1. High Quality of Life 2. Adequate Jobs 3. Other

ATTRACTING THE TALENT YOU WANT…

SO WHAT GOES INTO A HIGH QUALITY OF LIFE?

PRINCIPLES OF HEALTHY NEIGHBORHOODS

Civic

Leadership, Vision, Collaboration

Social

Services, Education, Culture

Physical

Safety, Environment, Housing

Economic

Business Diversity, Economy,

HEALTH ASPECTS OF A HIGH QUALITY OF LIFE

Walkable & Bikeable Neighborhoods Access to Transit Access to Recreation & Entertainment Access to Services Mix of Uses Safe, Decent, Affordable Housing Economic Vibrancy 36