The Economic Impact of Livable Communities

The Economic Impact of Livable Communities

John MarronIndiana 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

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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)

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The TRIPLE BOTTOM LINE…

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Asset Building

Equity

Workforce Development

Access to Economic

Opportunity

Community Building

Environmental JusticeHealthy Environment

Inclusivity

Preserving Economic

Opportunity for Future

Generations

Energy Efficiency

Subsidy for Reducing Use of

Natural Resources

Preventing and Limiting Pollution

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.”

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-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”

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Urban Examples:Chicago

Indianapolis

South Bronx, New York City

Duluth, Minnesota

Richmond, Virginia

San Diego

Washington DC

Rural Examples: McDowell County, West Virginia

Floyd County, Virginia

Moscow, Idaho

Murray, Kentucky

Dubuque, Iowa

Sparks, Nevada

Fayette County, Pennsylvania

So what does a process look like?

OrganizeOrganize and get involved in the

neighborhood: Community Building

DecideDecide collectively on the priorities

for the neighborhood: Quality of Life Planning

ActAct 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…

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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 whenC. I wonder what I can find on YouTube

D. What?!?

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ASSET BUILDINGAsset-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…

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ASSET BUILDINGIT’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.

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ASSET BUILDING

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ASSET BUILDING


According to the 2006-2008 American Community Survey, how many Indiana residents get to work by some means other than automobile:

a. 53,253b. 98,742c. 135,215d. 153,992

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ASSET BUILDING


According to the 2006-2008 American Community Survey, how many Indiana residents get to work by some means other than automobile:

a. 53,253b. 98,742c. 135,215d. 153,992

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ASSET BUILDINGDon’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.

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ASSET BUILDING

So the point is…

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.

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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.

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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’.

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COST OF LIVING

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Housing costs are less than 30 percent of household income

Housing costs exceed 30 percent of household income

Source: H + T Affordability Index

COST OF LIVING

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

Combined housing and transportation costs exceed 45 percent of household income

Source: H + T Affordability Index

WORKFORCE DEVELOPMENT

Sprawling patterns of development reduce opportunities for low-skill workers to participate in the economic mainstream and contribute to the geographic concentration of poverty.

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.

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WORKFORCE DEVELOPMENTDue 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 cityReduced access to services, including education (the foundation of workforce development)Higher transportation costsAging infrastructureExacerbated inequalities within a regionReduced economic competitiveness of a regionConcentrations of poverty

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WORKFORCE DEVELOPMENTBest 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)

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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 Collaborationb. Cluster Analysis and Mappingc. Surveying and Analyzing Survey Datad. Putting the each shoe on the correct foot with

your eyes closed24

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.

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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.

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

communities?

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

communities?

28Source: Keiffer and Reischmann “Contributions of Community Building to Achieving Improved Public Heath Outcomes” Final Report (2004)

In Short…

29Source: Keiffer and Reischmann “Contributions of Community Building to Achieving Improved Public Heath Outcomes” Final Report (2004)

“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.”

TRADITIONAL ECONOMIC DEVLEOPMENT

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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.

GETTING THE TYPES OF BUSINESSES YOU WANT…

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Site Selection Considerations for Businesses:

Access to Transportation NetworkAdequate InfrastructureAccess to an Adequately Skilled WorkforceEase of Obtaining Site Control, Permitting, etc.Location among Industry ClustersQuality of Life ConsiderationsSubsidies

GETTING THE TYPES OF BUSINESSES YOU WANT…

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ATTRACTING THE TALENT YOU WANT…

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Locational Considerations for Knowledge Workers:

1. High Quality of Life

2. Adequate Jobs

3. Other

ATTRACTING THE TALENT YOU WANT…

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SO WHAT GOES INTO A HIGH QUALITY OF LIFE?

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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

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ECONOMIC VALUE OF WALKABILITY

SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)37


SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)38

Asset Building:

ECONOMIC VALUE OF WALKABILITYAccessibility – Especially for the transportation-disadvantaged

39SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)


Consumer Cost Savings – Percentage of household income spent on transportation



Externalities Borne by the Public:



Land Use Efficiencies:



Community Livability:The environmental and social quality of an area as perceived by residents, employees and visitors.

Social Capital:

The quality of relationships among people in a community, as indicated by the frequency of positive interactions, the number of neighborhood friends and acquaintances, and their sense of community connections, particularly among people of different economic classes and social backgrounds.



Public Health:Heart disease, stroke, hypertension, diabetes, obesity, osteoporosis, depression, some types of cancer, and other diseases have been identified as being directly attributable to physical inactivity.

Health-Related Cost Savings Attributable to Walkability:



Other Areas:

•Economic Development

•Equity


TRANSIT-ORIENTED DEVELOPMENT (TOD)

TOD Defined:

“Transit-oriented Development (TOD) is moderate to higher-density development, located within an easy walk of a major transit stop, generally with a mix of residential, employment and shopping opportunities designed for pedestrians without excluding the auto. TOD can be new construction or redevelopment of one or more buildings whose design and orientation facilitate transit use.” (State of California)

46SOURCE: City of Calgary, “Best Practices in Transit-Oriented Development” (2004)

HEALTH & TRANSIT-ORIENTED DEVELOPMENT

Appropriate Land Uses: Transit stops tend to generate pedestrian trips; and therefore, support neighborhood-scale commercial districts which also encourages pedestrian activity.

Dense, Compact, and Mixed Use Development Pattern: A dense, compact development pattern with a mix of uses supports the development and viability of commercial uses with a ready market present throughout the day.

Pedestrian Connections & Balanced Transportation: The number of pedestrians in a well-designed transit-oriented development ensures the needs of the pedestrians are balanced with other modes of transportation.


TRANSIT-ORIENTED DEVELOPMENT & LOCAL ECONOMIES

Definitive research regarding the economic impact of TOD is inconclusive at this point. With that being said, the following are usually cited as opportunities about which advocates for TOD can be excited:

Reinvestment in central cities

Connecting residents to jobs

Avenues for affordable housing strategies

Brownfield redevelopment possibilities

Reduced costs of maintaining and adding automobile infrastructure

Affordable transportation

Placemaking


QUESTIONS?

Contact InformationIndiana Association for Community Economic Development

2105 N. Meridian Street, Suite 102

Indianapolis, Indiana 46202

(317) 920-2300

www.iaced.org

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John Marron

Program Manager, IACED

Chair, Health by Design

[email protected]

The Economic Impact of Livable Communities

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