Lafa Lafa Lafayette Lafayette y ette ette February 10, 2014 February 10, 2014 February 10, 2014 February 10, 2014 @StrongTowns @StrongTowns StrongTowns StrongTowns StrongTowns @clmarohn StrongTowns @clmarohn StrongTowns StrongTowns clmarohn clmarohn #STChat clmarohn clmarohn clmarohn clmarohn #STChat STChat STChat STChat STChat STChat STChat
The mission of Strong Towns is to support a model for growth that allows America's towns g to become financially strong and resilient.
Curbside Chat Curbside Chat BI G Concepts BI G Concepts The current path cities are on is The current path cities are on is 1 1. not financially stable. The future for most cities is not The future for most cities is not 2. 2 going to resemble the recent past. p The main determinant of future 3. prosperity for cities will be the ability of local leaders to transform their communities.
Investment in the community…. y Powerful Incentives • Initial cost to the public for new growth: minimal • Benefit to the public budget for new …creates new growth… growth: substantial …which increases The catch is that the public agrees to tax revenue. maintain the improvement forever. maintain the improvement forever.
The critical assumptions to this strategy: p gy Either growth continues at ever accelerating g g 1. rates, or The pattern of development ultimately generates 2. more revenue than it costs to maintain.
Road Improvement Project • $6,600 cost per property • 50% of costs assessed 50% of costs assessed • 37 years to recoup public contribution from adjoining tax base j g Local Street Project Local Street Project Local Street Project Local Street Project
Road Maintenance Project • $354 000 total cost • $354,000 total cost • 79 years to recoup public expense from tax base from tax base • To break even requires a 46% increase in property tax rates p p y Local Road Rehabilitation Local Road Rehabilitation Local Road Rehabilitation Local Road Rehabilitation
Industrial Park Development • $2 1 million inflation adjusted total cost • $2.1 million inflation ‐ adjusted total cost • $6.6 million in improvements induced • Payback from current conditions happens in Payback from current conditions happens in 29 years if all revenue devoted only to debt I ndustrial Developm ent I ndustrial Developm ent I ndustrial Developm ent I ndustrial Developm ent
Grow th Ponzi Schem e Grow th Ponzi Schem e
Grow th Ponzi Schem e Grow th Ponzi Schem e
Grow th Ponzi Schem e Grow th Ponzi Schem e
Se Serious im plications for the future ous p ca o s o e u u e The “Mechanisms of Growth” we have become accustomed to are waning. Local governments are going to be forced to absorb the local costs of the current development pattern. d l t tt This can’t be done in the current pattern of development without large tax of development without large tax increases and/ or large cuts in services. I m plications I m plications I m plications I m plications
W hat’s the solution? W hat’s the solution? W hat s the solution? W hat s the solution?
B ild it B ild it Build it and they w ill com e…. Build it and they w ill com e…. d th d th ill ill
B ild it B ild it Build it and they w ill com e…. Build it and they w ill com e…. d th d th ill ill
High Return I nvestm ents High Return I nvestm ents High Return I nvestm ents High Return I nvestm ents
$ 1 ,1 3 6 ,5 0 0 $ 8 0 3 ,2 0 0
Auto Oriented $ 0 .6 Traditional Pattern m illion/ acre $ 1 .1 m illion/ acre High Return I nvestm ents High Return I nvestm ents High Return I nvestm ents High Return I nvestm ents
Need to m easure the public’s Need to m easure the public’s REAL REAL return on investm ent return on investm ent ?
Need to account for the second life Need to account for the second life cycle costs. cycle costs. Fi First Life Cycle t Lif C l Second Life Cycle
Property Tax / Land Tax Property Tax / Land Tax Property Tax / Land Tax Property Tax / Land Tax
Property Property $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - - - - Land $ $ $ $ $ $ $ $ Property Tax / Land Tax Property Tax / Land Tax Property Tax / Land Tax Property Tax / Land Tax
Innovation that happens from the top-down tends to be orderly but dumb. Innovation that Innovation that happens from the bottom-up tends to bottom up tends to be chaotic but smart.
Curbside Chat Curbside Chat BI G Concepts BI G Concepts The current path cities are on is The current path cities are on is 1 1. not financially stable. The future for most cities is not The future for most cities is not 2. 2 going to resemble the recent past. p The main determinant of future 3. prosperity for cities will be the ability of local leaders to transform their communities.
Now Available… Now Available… www.StrongTowns.org www.StrongTowns.org www.StrongTowns.net www.StrongTowns.net m em bership.strongtow ns.org m em bership.strongtow ns.org
Recommend
More recommend
