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Wrong Diagnosis Underlies Post's
Pessimism on Smart Growth |
[A letter printed in
The Montgomery County Sierran, October-November 2004.
Reprinted from GroundSwell, May-June 2005]
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We would be amused if Martian observers, seeing people with crutches,
concluded that crutches had crippled these folks. Analysts cited in the
Washington Post's recent series on sprawl are not from Mars, but many
confused the crutches localities fall back upon as the cause of our
region's crippling growth pattern.
Montgomery and other counties around the District of Columbia are
blamed in Post writer Peter Whoriskey's articles for pushing residential
growth to the Eastern Shore and West Virginia by inviting job growth
while curtailing home construction. These policies do accelerate sprawl
but they are crutches. Counties like Montgomery and Fairfax use these
crutches to defend against severe fiscal burdens of upgrading
infrastructure to serve their residents who fled the region's core or
who avoided settling there. People who chose to reside in the lower-tax
and lower-housing-cost counties support these crutches when they sense
that these advantages are in jeopardy.
The Post paints a seemingly hopeless picture because it fails to
recognize the real engines of sprawl -- high land values, land
speculation, and subsidies for development on greenfield sites. Wasteful
scattershot development will continue to defeat Smart Growth until
officials and voters confront these matters.
High Land Values and Speculation.
High land values stem from: 1) regional population growth, 2) public
works like roads and schools, 3) special natural features like
waterfronts, and 4) the totality of private and public activities that
make our area productive and attractive to those who live, work, and
visit here. For example, a 1980 Congressional study found that Metro,
still unfinished, had already generated $2 billion in new land values.
The study found that "the biggest share of these new values is
going to people lucky enough to own land within easy access of Metro
stations," not to all taxpayers via governmental units that
financed Metro or to the subway authority.
Sprawl starts at the center of the metropolis and radiates outward.
Smith owns a vacant site in downtown D.C. If he builds offices, housing
or a mixed use building, he invites risks, headaches, and sizeable
property tax increases, so he keeps his site idle or in minimal use like
a parking lot. Brown, seeing the productive potential of Smith's
location, offers to buy it. Yet Smith who is getting something for
nothing -- his rising land values -- asks for a price so high that
Brown's venture can't fly. Brown approaches owners of other first-class
sites, meets the same hurdle, and finally buys a less ideal second-class
site he can afford. More "Browns" do the same.
By the time Jones and other enterprisers come along, owners of second-
and third-class sites have also boosted their lot prices. Owners get
away with this because "land hoarding" in the core creates an
artificial scarcity of affordable sites. Many "Joneses" are
driven farther into tile hinterland. Developers who invade open space in
a sense are "refugees," denied entry by inflated land prices
from close-in sites better suited for their ventures. This unending race
to beat speculators to cheap land expands leapfrog growth patterns over
increasingly large areas.
The amount of potential infill sites in D.C. withheld by speculation
was seen in the count of over 11,000 vacant lots and 7,000 boarded-up
housing units several years ago. The District is far from unique.
One-quarter of all privately-owned land in the nation's 100 largest
central cities was vacant two decades ago, a "Compact Cities"
study by Congress revealed.
Subsidized Sprawl
Federal and state spending on misplaced highways, utilities, schools,
and the like subsidize premature urbanization of outlying areas,
magnifying chaotic growth. Tax abatements for malls in the middle of
nowhere lay waste to cornfields and forests, sapping the vitality of
older communities, especially the heart of the metropolis.
The Post quoted sprawl defenders who typically and incorrectly call the
mini-ranch the epitome of the American dream. If affordable, many
families would choose reasonably compact walkable neighborhoods with
charm, amenities, variety, and mixed uses. People in our region pay
premiums to live in places like Capital Hill, Alexandria's Old Town,
Lees-burg, Ellicott City, and Georgetown. Increasingly popular are New
Community Design (NCD) and the New Urbanism - -which are not new, but a
rediscovery of the virtues of old American cities and towns. A 2001
nationwide survey by the National Association of Realtors found that 60
percent of the sample favored smaller lots to save open space, 77
percent wanted neighborhoods close to town squares, 86 percent wanted
trails and bike paths. Remarkable findings these, considering the
barrage of pro-sprawl propaganda over the past half century.
As inflated land costs (and perceptions about crime and schools) drive
middle income families far from choice central neighborhoods, their new
localities must duplicate the police, water systems, and schools left
behind, plus roads to get back to work places, shops, restaurants, and
theaters. High taxes required to construct and maintain our
over-extended public facilities and services encourage new home seekers
to go even farther afield.
It is easy to blame land speculators. But the real culprits are the
upside-down property tax incentives, inappropriate infrastructure
investments, and land-use policies that spur speculation. These
incentives make it profitable to keep prime locations in cold storage,
to board up rental housing, and to block the path of normal growth in
appropriate city and town centers.
The challenge is to take the profit out of sprawl so the massive
inventory of skipped-over prime locations, cited above, can be put to
optimal use. Jurisdictions can deflate high land and housing costs by
altering current taxes that favor land holding rather than land using.
Then the counties' crutches, short-term palliatives at best, can be
discarded. Only then can Smart Growth proceed, saving both our
countryside and our communities.
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