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Urban Agriculture:
Interim Highest Best Use
Edward J. Dodson
[Reprinted from
GroundSwell, January-February 2001]
Here in the United States considerable public attention is finally be
paid to the enormous amount of land being parceled out to a relatively
small number of higher income households whose parents a generation
ago participated in the building of what are now called "inner
ring suburbs." Large lot zoning in the suburbs remains the norm,
if under attack by the adoption of "smart growth"
regulations at the state level. In the meantime, there is little
relief from the daily loss in time and resources consumed as people
commute from home to wherever and back. Roads and highways are jammed
with automobile traffic going in all directions from early in the
morning until late at night.
Statistics tell us that personal wealth in the United States is
highly concentrated. That is clearly true. At the same time, the
number of households with incomes high enough and liquid assets
sufficient to purchase a home selling for $300,000 or more is also
huge by historical standards. Millions of people are living their
dream, owning an asset that is a visible demonstration of their
financial success and a wealth-building asset. Constructing such a
house in most established neighborhoods would be considered by
financial institutions as an "over-improvement," the cost to
construct not always reflected in the market value of the property if
resold. Of course, every metropolitan area has older neighborhoods
that have remained enclaves for the very well-to-do, although large
landed estates are increasingly acquired by developers who subdivide
excess acreage into building lots. Fewer are the number of riding
stables within eyesight of downtown skyscrapers.
The first stage of out-migration from cities occurred after the
Second World War at a time of dramatic change in the nation's
population demographics. War created a full employment society and a
great migration of rural poor to the cities to work in the wartime
industries. Despite inflation, working people saved at a level never
before experienced. Banks were flush with assets to lend, and the
postwar boom in new family formations created an enormous potential
demand for housing not yet available. The U.S. Congress responded with
legislation that made it possible for people to obtain long-term
mortgage financing from the banks, repayment guaranteed by the Federal
Housing Administration under a special insurance policy paid for by
the homeowner. The cities were already overcrowded, so developers
started building in the adjacent communities. Federal funding of new
highway construction added additional fuel to the fire, and soon new
housing subdivisions arose where these highways intersected. Two-lanes
roads were expanded into four lane divided highways. Building and
maintaining roads became a major component of local, state and federal
expenditures.
Fast forward to 2001. The oldest cities in the United States (with
the exception of New York City, the point of entry for many immigrants
every year) have much lower populations than they had at their peak in
the late 1950s. Manufacturing companies closed down or moved elsewhere
in search of less expensive land on which to construct modern
facilities. They were also attracted to a regions where workers were
not unionized and local government imposed fewer taxes on profits. The
buildings they left behind, if still standing, are likely to be
vacant, vandalized and partially burned out by arson. Nothing new has
been constructed, in many cases, because the land was left poisoned by
toxic chemicals, and the clean-up costs are so large that a profitable
enterprise is not possible without huge public subsidies. The
companies responsible for the poisons may or may not have been in
violation of laws in effect at the time. Many no longer exist and
their owners are no longer living. There is no one to bring to court
from whom damages might be obtained. Taxing the remaining residents
and businesses to clean-up the problems only contributes to the
exodus.
As businesses departed, those who could left in search of employment.
Housing that was already at the end of its normal life cycle was
turned over to investors who divided homes into small apartments to
maximize rental cash flow while making minimum repairs, or was sold to
households with lower incomes who could not keep up with the
replacement of deteriorating roofs, heaters, plumbing and other
essential systems. The Federal government in collaboration with local
civic leaders hastened the process of abandonment by massive
demolitions under the guise of "urban renewal." People who
could not afford to leave were moved to high rise apartment buildings
constructed in parts of the city where there was the least organized
resistance and political influence. People were provided with housing.
They no longer lived in neighborhoods. There were few shops or stores
or employment opportunities. The interaction and interdependence that
make for community were destroyed.
Beginning in the 1970s a modest rebirth of some city neighborhoods
began. A sizeable minority of the new generation of mostly
college-educated professionals, earning higher incomes and
disenchanted with the suburban lifestyle chosen by their parents
returned to the cities as "urban pioneers." The worked for
the financial service companies, insurance and law firms, and they
brought consumer spending to the central city. Stately old town homes
were readily available and remained affordable for some years.
Developers responded by constructing new condominium buildings, and
when this market was largely satisfied entered the competition for
purchasing older homes that could be substantially renovated and sold
to the new arrivals. On the plus side, crumbling buildings in historic
neighborhoods, damaged by decades or even centuries of haphazard
changes and neglect were brought back to their original beauty. Thus
began the process that has come to be known as "gentrification."
Properties returned to owner-occupants who could afford to maintain
them - and pay rising property taxes. Lower income owners sold out and
moved on in search of less expensive housing. Renters did the same.
They went to neighborhoods less likely to become gentrified but which
were already suffering from overcrowding and a housing stock in even
worse condition. There the poor have aged in place, with few options
and still few opportunities to improve their economic condition. Some
of their children rose above their circumstances, doors opened for
them, and they departed.
Into some of the declining neighborhoods came new arrivals -
Hispanics from Puerto Rico and other parts of Latin America, and
Asians. Their arrival was not altogether welcomed by existing
residents. The ideal of the melting pot has not really materialized in
this country. Someone described our what we have built as more of a
salad bowl. We increasingly work with one another and even live in the
same neighborhoods but our social interaction with people of other
races and ethnic backgrounds is minimal. But, despite the not
infrequent conflict - even violence - the arrival of people stopped
the hemorrhaging in neighborhoods still clinging to survival. Even so,
a large number of formerly working-class neighborhoods lost most of
their population. As elderly residents died or were forced by health
concerns to leave their homes too often remained vacant. There was no
resale or rental market because no one wanted to live there. Block
after block of vacant properties have been leveled and the land
cleared.
In many urban neighborhoods, vacant lots have been used for illegal
dumping because there is little or no governmental response. For
police there are more pressing problems. Resident complaints are
registered and filed away because government just does not have the
resources for prevention. Some neighborhoods groups have had success
in getting control of vacant lots and turning them into community
gardens or monitored playgrounds. The perpetrators simply move on to
more fertile ground, so to speak.
In recent years, some enterprising people have realized that if they
can gain legal title to the numerous small lots that once contained
attached houses, warehouses or factories, and aggregate them into one
larger parcel, the land might be profitably developed - for
agriculture.
Without manufacturing, many residential neighborhoods will not be
viable communities for decades to come. The downtown business
districts do not have enough employment to support all of the people
who need employment. And, the reality is that a large percentage of
the jobs that do exist are held by people who live in the suburbs.
Land that no one else wants all of a sudden becomes a financially
viable location for raising cash crops for sale to restaurants and
area grocery stores or establishing a nursery for trees, shrubbery and
(in specially-constructed buildings) decorative plants for the city's
homes and office buildings. Agriculture and horticulture are beginning
to provide employment for people in the city who never thought of
where they lived as a part of nature.
Clearly, under the circumstances, bringing this land into
agricultural production is highest and best use in the market. What
would happen to this industry if cities decided tomorrow to begin
taxing location rent at something approaching full value, while
exempting property improvements? We are certain to see the downtown
and adjacent neighborhoods experience a boom in new construction and
property renovation. Increased employment opportunities will bring
more residents into the economy, and the cities will have more public
revenue to invest in schools, libraries, parks, recreation centers and
other public amenities. I will end my comments here and invite
GroundSwell readers to offer your thoughts on how development would
proceed. What is happening in your town or city?
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