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  • Visions of the Rust Belt Future (Part 1)

    “Men often applaud an imitation and hiss the real thing”–Aesop

    There are interesting developments being played out in the Rust Belt. Some cities, like Detroit, seem to be embarking whole hog down the creative class path. Others, like Pittsburgh, have their own thing going on, a thing Economic Geographer Jim Russell has delineated as the “Rust Belt Chic” model of economic development, with no modest amount of success. How a given Rust Belt city reinvests will have a large say in its future.

    Part 1 of this series, below, examines the nascent creative classification of Detroit. Part 2 analyzes whether or not there is a new way forward for post-industrial cities, using the lessons from Pittsburgh and Cleveland as the building blocks to developing an alternative set of strategies for struggling cities.

    Detroit Rock (Ventures) City

    In Detroit, the scene is playing out as such: rampant disinvestment in the core and extreme poverty around it. To help fix this, ties between Rock Ventures head and real estate billionaire Dan Gilbert, urbanist Richard Florida, and the non-profit Project for Public Spaces have been initiated. The goal, laudable enough, is to reinvest in downtown. And while the renewal formula planned is not new, the extent that the milieu is a controlled environment for an urban experiment is perhaps ahistorical, if only because Detroit’s level of disinvestment has created a vacuum that, naturally, power abhors.

    To wit, a recent New York Time’s article entitled “A Missionary’s Quest to Remake Motor City” hints at the level Dan Gilbert—who  has bought $1 billion in downtown property in what has been called a “skyscraper sale”—and his advisors have been handed the keys:

    “My job,” said Dave Bing, the Detroit mayor and former National Basketball Association star, “is to knock down as many barriers as possible and get out of the way.”

    And:

    “Mr. Gilbert met in a conference room for his twice-a-month Detroit real estate meeting, with about a dozen people who work for him, plus a lawyer and leasing agent. If Detroit 2.0, as this group often calls the effort, has a planning committee, this is it.”

    And:

    “[H]e and his staff will apparently have a largely free hand.”

    Now, the plan, and how the plan for Detroit’s future came about.

    A wealthy investor, Dan Gilbert, buys downtown properties. That investor goes on the record as to the importance of reinvesting into the urban core. That investor moves his mortgage company’s employees from suburban office parks into his own downtown real estate. Then, the investor, taking cues from his consultants, throws in something about innovation, which, at its lowest common denominator, means designing your way to a “culture of innovation”. Thus, the investor encourages that Romper Room-style office setting complete with what some would say is tacky décor wholly out of line with the soul of “the D”, but yet which is said to fun-birth inspiration—i.e., “[A] karaoke machine sat in an aisle. Guys threw footballs to one another; one employee shot at colleagues with a Nerf gun”; and “A Quicken promotional video solidifies the company’s attempts at over-the-top marketing, prominently featuring the space’s inexplicable Pac-Man theme”—despite the fact that your primary product line, i.e., mortgages,  needs far less innovation than it does a modicum of conventionality and ethics. Nonetheless, the sentiment of creative destruction is there.


    This basic process, then, is multiplied out from the office setting into strategic urban space, particularly around Gilbert’s real estate. The idea here is to design space so as to create vibrancy so as to galvanize commerce so as to ignite broad economic growth.

    Enter the partnership with the Project for Public Spaces, who is working with Gilbert’s group to do a set of “Lighter, Quicker, Cheaper” placemaking interventions, including pop-up shops. The conceptual girth behind the plan, according to a recent article “Detroit Leads the Way on Place-Centered Revitalization”, is described as such:

    “We proposed developing a Placemaking vision for the major public spaces, and refining the plan through the Power of 10 concept,” says Meg Walker, a Vice President at PPS who worked on the project. “…A lot of developers aren’t as enlightened as Dan Gilbert…they wouldn’t necessarily think about the glue that’s holding this all together.”

    “The Power of 10 framework suggests that a great city needs at least ten great districts, each with at least ten great places, which in turn each have at least ten things to do. Great public spaces produce an energy and enthusiasm that spills over into surrounding areas…

    With the conceptual description as a guide, this is a classic case of the urbanists’ version of trickled-down economics, in which an influx of capital into finite corridors is meant to attract wealth that “spills over” into surrounding areas. Unfortunately, there is little by way of evidence that this works, as was recently admitted by Richard Florida himself. What it may do, however, is fill real estate supply by pursuing a select target market, as placemaking can act as a grease to create pockets of creative class demand to support condos or retail and office space. And while one can certainly argue it beats rampant core disinvestment, it’s not the path of a bold new way that will measurably change the trajectory of Detroit, so says U of M Professor Michael Gordon. In effect, it’s simply shifting people from one set of real estate to another, with nothing undertaken on a systemic level to tackle Detroit’s real problem: poverty and disenfranchisement in its neighborhoods. Worse, re-urbanization as such is likely to exacerbate class and race divides that have plagued Detroit for decades, thus worsening Detroit’s real problem: poverty and disenfranchisement in its neighborhoods.

    Besides, we have been here before. Michigan via its Cool Cities campaign had a plan based off the same Detroit 2.0 premise, switch out the window dressing. Design place, accrue vibrancy, growth wealth. Obviously, the multi-million dollar economic development initiative didn’t work. Neither have similar initiatives across the whole of the Rust Belt.

    So, where’s the beef? What makes Detroit 2.0 different?  

    Naturally, this is where the economic development buzzwords “start-up” and “tech district” enter into the Detroit 2.0 lexicon; that is, creating dense city areas will nurture spontaneous interactions that will foster Detroit’s innovation community, putting it firmly on the path to be the “Silicon Valley of the Midwest”. But every city wants this (or at least they are informed they do)—e.g., “Miami Wants to Be the Next Big Start-Up City”—and so the effort ultimately comes off as anything but visionary, rather visionless, trying.

    Cue the Onion. From an article entitled “St. Louis Mayor Has Sad Little Plan For Turning City Into High-Tech Hub”:

    In what appears to be a completely earnest attempt to revitalize a sluggish local economy, St. Louis mayor Francis G. Slay unveiled Thursday a detailed, ambitious, and truly depressing plan to turn his city into a major technology hub. “We’re going to show America, and the rest of world, just how innovative and cutting-edge St. Louis can be,” said the mayor, who displayed genuine optimism as he outlined a desperate strategy to woo major players in the high-tech sector with a sad little series of subsidies and tax incentives his city cannot afford… The mayor ended his presentation by pleading with reporters to dub the hopelessly untenable project “St. Louis 2.0.”

    In all, the current Detroit economic development approach is copycat urbanism at its finest, as there is nothing inherently “Detroit” about it. Nothing that intrinsically builds off its only true competitive advantage: itself.

    For instance, Motor City is Motor City for a reason: it builds things. It designs things. Like, for instance, cars, which, by last count, are still being used, with over 254 million registered passenger vehicles in the US in 2009 alone. And while technology-based automation is increasing manufacturing output at the expense of jobs, production is still huge business in the Rust Belt, with automotive-related STEM jobs (i.e., science, technology, engineering and mathematics-related employment)—i.e., the creative class before the “creative class” became the “creative class”)—aiding Detroit’s regional resurgence, with its 10.5% STEM job growth leading the country from 2010 to 2012. And no, this is not to say Detroit will recoup manufacturing jobs lost from its heyday. But it’s absurd for Detroit to neglect training and flexing its muscle—or its legacy of concept, design, and production—for a future with no middle between start-ups and baristas. I mean, advanced manufacturing isn’t nostalgia. It exists.


    So, why this path? Why pretty Detroit? Why make it culturally less distinct? Why embark on a plan of hyper-modern ephemerality when your distinction is resilience, making things, and hard work? Why? Where is the evidence that this even works? What in the hell is even going on here?

    To get to the bottom of this you need to be aware of parallel events in Cleveland. There, Dan Gilbert has hands in that city’s Downtown redevelopment as well. But it is not what you think. And therein lies the problem.

    You see, if the Detroit Dan Gilbert is the urbanists’ Dr. Jekyll than in Cleveland he becomes the anti-urban Mr. Hyde. In fact, the Cleveland Dan literally embarks on nearly all the urbanists’ seven deadly sins, including owning and running a casino placed right beside the city’s iconic Public Square, demolishing historic buildings for the creation of a VIP valet center, planning to ruin the iconic Terminal Tower by connecting an enclosed pedestrian tunnel from a parking garage into its face—the Plain Dealer architecture critic stated it was akin to “poking a straw in Mona Lisa’s nose”—and, more generally, pissing off Millennials.

    From a recent Atlantic Cities piece entitled “If Other Cities Are Demolishing Skywalks, Why Does Cleveland Want a New One?”, the author, who omits Dan Gilbert’s name, writes:

    “In the last decades of the 20th century, many American cities built skywalks in a desperate attempt to seem modern, hoping to create a sanitized urban experience that would compete with the sanitized suburban experience of indoor malls.

    For the most part, it didn’t work, and now cities…are tearing down the skywalks…in an effort to return pedestrian life and vitality to the street.

    Meanwhile, in Cleveland, the owners of the year-old Horseshoe Casino downtown are planning to build a brand-new skywalk…For many of the young people moving to Cleveland in search of a 21st-century urban experience – pedestrian-friendly, with lots of people out and about – it seems like a step backward in time.”


    Why is Gilbert going all anti-urban in Cleveland, then? In a word: money, as Moody’s just issued a report saying a walkway would help the casino reach predicted income streams, as it has been underperforming. Obviously casino ownership is a no frills money-making operation, as is real estate. With each: immediate financial return trumps the nurturing of human and community capital to support a vision of long-term economic growth.

    But Detroit Dan is different, right? He is a walkability guru’s guru. One of the “enlightened developers” as was stated above.

    Well, you be the judge. Here’s a blog post excerpt covering the recent Placemaking Leadership Council hosted in Detroit, with Detroit 2.0 taking center stage.

    Dan Gilbert, head of Rock Ventures and Quicken Loans, genuinely seemed to defer to Kent [the Project for Public Spaces head] when it came to his part of the presentation Thursday. Gilbert, who has millions of hours of public-speaking practice behind him, often turned to Kent to fill in the details on the upcoming renovations to Campus Martius, Cadillac Square, Capitol Park, Grand Circus Park and Paradise Valley.

    “Genuinely seemed to defer” is right. Or just bored as hell.

    And then there is this. This. Courtesy of a Curbed Detroit blog post called “Development In Downtown Detroit Is Playing Out Like A Huff Po Blog Post From 2009”. The referenced Huffington Post piece is by Detroiter Toby Barlow that is called “How a Billionaire Can Make a Billion Dollars”. The strategy? Buy Detroit, not “metaphorically” but “literally”, yet do it “very quietly, so as not to inflate any prices”. Then, according to Barlow, since a billionaire owns thing, he moves his employees to his buildings and gives them “incentives to live down near their work so that they’ll buy your residential property”. Barlow concludes:

    So, I don’t have to spell out the rest, do I? Real estate values will quickly soar as other companies, encouraged by your brazen move, make similar leaps into what will still be an incredibly affordable market. The momentum will build as the ever-frenzied media piles on.

    Yes, Detroit’s plan for the future pre-dated by a Huff Po blog entry from 2009.

    The big revelation here?

    Look, in the end, the Dan Gilbert’s of the world are in their line of work for one reason and one reason only: to make money. They will don whatever mask they need to play the part, be it the urban-loving Jekyll or the anti-urban Hyde. That’s the problem with creative class urbanism. It is dependent on developers who could care less. It is a means to an end for those who implement it.

    Too bad this end is not the beginning of a true path forward for a real Rust Belt recovery.

    Detroiters, like most Rust Belters, have been through enough. They deserve better.

    Richey Piiparinen is a writer and policy researcher based in Cleveland. He is co-editor of Rust Belt Chic: The Cleveland Anthology. Read more from him at his blog and at Rust Belt Chic.

  • Job Dispersion in Major US Metropolitan Areas: 1960-2010

    The continuing dispersion of employment in the nation’s major metropolitan areas has received attention in two recent reports. The Brookings Institution has published research showing that employment dispersion continued between 2000 and 2010, finding job growth was greater outside a three mile radius from central business districts between 2000 and 2010 in 100 metropolitan areas Note 1). This assessment probably underestimates the extent of job dispersion, since it includes some suburban centers as central business districts (such as West Palm Beach, FL and Palo Alto, CA).

    Recently I showed that employment dispersion has reached a point that there is a virtual balance of jobs and housing in suburban areas, which contrasts with the continuing excess of jobs in core municipalities relative to resident workers. After that article was published, Richard L. Forstall forwarded me research he presented to the Southern Demographic Association in the 1990s that examined employment trends in core municipalities and suburban areas between 1960 and 1990. At the time, Forstall was at the United States Bureau of the Census. He also spent years supervising Rand McNally international metropolitan area population estimates (Note 2).

    Major Metropolitan Job Dispersion: 1950 to 2010 and

    Forstall provides detailed information for the 35 major metropolitan areas as of 1990 (over 1,000,000 population). This article augments the Forstall research with data from the 2010 census (Note 3).

    Consistent with both national and international trends, the half century between 1960 and 2010 indicated significant dispersion in metropolitan areas. This, of course, was a continuation of a trend that accelerated from the first quarter of the 19th century, when early mass transit systems allowed people to live in larger spaces, farther away from their work.

    The movement of residents from the urban core to the suburbs followed the even greater exodus from small towns and rural areas. But it was not long before residents of the homogeneous bedroom suburbs of the 1950s began to find more nearby employment opportunities.

    In 1960, 54% of the employment in the 35 major metropolitan areas was in the historical core municipalities, with the balance of 46% of the jobs in suburban and exurban areas. By 2010, the corner municipality share had dropped to 30%, while suburban and exurban areas contained 70% of the employment (Figure 1). Between 1960 and 2010, 88% of the new jobs were in the suburbs and exurbs, leaving only 12% of the growth in the core municipalities (Figure 2).

    Dispersion Greater in Metropolitan Areas with Pre-War Non-Suburban Cores

    However, even this distribution appears to mask an even greater dispersion. Among the metropolitan areas with "Pre-war non-suburban core municipalities," (such as San Francisco, Baltimore, Providence, New York, etc.) a full 102% of job growth was in suburban and exurban areas. Core city employment accounted for a minus two percent of employment growth (in other words, it declined). These are metropolitan areas with core cities that were virtually fully developed before World War II and which have added little to their land areas by annexation.

    The other metropolitan areas have core cities with large swaths of suburbanization and some, like Phoenix and Sacramento are virtually all suburban. In these metropolitan areas, approximately 25% of the job growth since 1960 has been in the core cities (Figure 3).

    Pre-War Non-Suburban Core Municipalities Losses and Gains

    Among the 18 metropolitan areas with "Prewar non-suburban" core municipalities, two thirds experienced losses in their core cities. The Rust Belt "ground zero" core cities of Detroit, Cleveland, and Buffalo all lost 40 percent or more of their employment, and were joined by second tier Rust Belter St. Louis. The core city of Pittsburgh, typically one of the Rust Belt’s big four, did much better, losing only five percent of its employment. Across the state, however, the core city of Philadelphia did much worse, dropping 23 percent of its employment. The core city of Chicago lost 20 percent of its employment.

    Perhaps most notable was the core city of Hartford, which lost 9 percent of its employment between 1960 and 2010. According to data in the Brookings Institution Global Metro Monitor, Hartford has emerged as the world’s most affluent major metropolitan area (measured by gross domestic product per capita) over the same period. All of Hartford’s job growth was in the suburbs and exurbs.

    The core city of New York did the best among the metropolitan areas with "Pre-War non-suburban" cores, attracting 16 percent of the employment growth over the half-century. Washington (DC) also did well, with a 12 percent share of new employment.

    Urban Dispersion and the Quality of Life

    The dispersed metropolitan area, along with its comprehensive roadway networks, has served the US well, especially in two important measures of the quality of life — housing affordability and mobility. Major metropolitan areas in the United States have some of the most affordable housing in the high-income world. The US has shorter work trip travel times than Canada or Western Europe and much shorter than the major metropolitan areas of Japan (with the most comprehensive rail systems in the world) and East Asia.

    This advantage was reiterated with the recent release of the Tom Tom Congestion Index, which showed traffic congestion in the metropolitan areas of Australia and New Zealand to be far worse than in US metropolitan areas of similar size. For example, Sydney is as congested as Los Angeles, despite having only one-third the population. Auckland (New Zealand) has worse traffic congestion than any US metropolitan area of similar size.

    Peter Gordon and Harry W. Richardson spotted this advantage nearly two decades ago (See Are Compact Cities a Desirable Planning Goal?), before there was international traffic congestion comparison data. Based upon their review of national travel surveys, they concluded:

    Suburbanization has been the dominant and successful mechanism for reducing congestion. It has shifted road and highway demand to less congested routes and away from core areas.

    Wendell Cox is a Visiting Professor, Conservatoire National des Arts et Metiers, Paris and the author of “War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life.

    ——-
    Note 1: The Brookings Institution report indicates that employment within a 3 mile radius of downtown (the central business district) increased in number and share only in the Washington, DC metropolitan area. However, this may not indicate an increase in central business district (downtown) employment. The large, nearby, but suburban employment centers of Rosslyn, Crystal City and downtown Alexandria may be located within the three mile radius (the report does not indicate the point from which the radius is drawn). The three mile radius used in the report is useful and represents the best reported data. However, it may not be representative of central business district employment encloses a huge area (28 square miles), which is more than 25 times the typical central business district geographical size and larger than the land areas of the core cities of Providence and Hartford and nearly two-thirds the size of the core city of San Francisco. Transit commuting to such nearby employment centers is routinely far lower than the share that ride transit to downtown.

    Note 2: Forstall is co-author (with Richard P. Greene and James B. Pick of seminal research that estimated the population densities of the largest metropolitan areas in the world (Which Are the Largest: Why Lists of Metropolitan Areas Vary So Greatly). Normally, metropolitan area densities cannot be validly compared because of widely varying criteria between nations. Further, in the United States, metropolitan area densities are nonsensical, because their building blocks vary in size too much. With its County-based definitions, US metropolitan areas include building blocks ranging from half the size of Orlando’s Walt Disney World (New York County, or Manhattan borough) to the size of the nation of Costa Rica (San Bernardino County). The use of such a crude building block results in the inclusion of huge amounts of rural territory that is outside the labor market or the commuting shed (metropolitan areas are typically defined as labor markets). Forstall and his coauthors applied criteria that was both consistent and rational. This exhaustive process limited the number of metropolitan areas for which they were able to make estimates to 28.

    Note 3: This analysis differs from Forstall’s approach in defining core cities using the historical core municipality classification. It should be noted that there have been changes in metropolitan definitions over the 50 years.

    Photo: Suburban employment in Chicago (by author)

  • The Sound and the Fury In Chicago

    The Second City syndrome is alive and well. An anti-Chicago essay masquerading as a book review in the New York Times provides the latest example of the truth of that.  Rachel Shteir, a former New Yorker now living in Chicago, notes the various ills in the Windy City that should come as a surprise to no one, least of all residents:

    “Poor Chicago,” a friend of mine recently said. Given the number of urban apocalypses here, I couldn’t tell which problem she was referring to. Was it the Cubs never winning? The abominable weather? Meter parking costing more than anywhere else in America — up to $6.50 an hour — with the money flowing to a private company, thanks to the ex-mayor Richard M. Daley’s shortsighted 2008 deal? Or was it the fact that in 2012, of the largest American cities, Chicago had the second-highest murder rate and the ­second-highest combined sales tax, as well as the ninth-highest metro foreclosure rate in the country? That it’s the third-most racially segregated city and is located in the state with the most underfunded public-employee pension debt? Was my friend talking about how a real estate investor bought The Chicago Tribune and drove it into bankruptcy? Or how 15-year-old Hadiya Pendleton, who performed at Barack Obama’s inauguration, was shot dead near the president’s Kenwood home?"

    Illustrating the rule that criticizing Chicago is something that is Simply Not Done, this piece sent locals into collective apoplexy. Huffington Post Chicago provides a roundup of the “epic backlash.”  The Atlantic Cities chimes in with its own roundup of “Everything You Need to Know About Why Chicago Is Furious With Rachel Shteir and The New York Times,” noting that “We don’t have to wait for the angry letters to be printed in the next Book Review. The counter-manifestos are already here! In the past few days, it seems, everyone from Gary to Milwaukee has read Shteir’s ‘Chicago Manuals’ piece, resulting in a groundswell of angry rebuttals.” An army of angry tweeters spoke out.  And even the mayor addressed the issue. Not a bad day’s work for a theater professor at Depaul (Shteir’s day job).

    In a sense Shteir is right. I’ve long noticed that Chicago is basically an echo chamber of boosterism in which everyone is terrorized about deviating from the party line lest they be excommunicated from polite company, a fate that may well indeed await Shteir. And Chicago clearly has manifest problems as a city, many of which she notes, though many of her list such as the perennial disappointment of Cubs fans are clearly more snark than substance.

    However, what Shteir and Chicago both miss is the real value proposition of the city. Taken on its own terms, Chicago is a simply fantastic place to live. It has a magnificent lakefront setting, a stunning skyline, fantastic cultural institutions, incredible opportunities to consume (from designer clothing to world class dining), and much more. It may be true that these great things largely benefit those from more affluent precincts with vast tracts of the city left behind in segregated, entrenched poverty, but it’s tough to name a place where that isn’t likewise true. Much of Brooklyn, for example, remains mired in poverty, but no one in New York seems to care and criticisms of it as such are simply shrugged off.

    Chicago also has perhaps – at least in my view – the best blend of the best of the elite urban center with much of the best of cities further down the food chain. You can have genuinely walkable neighborhoods, take transit to work, and eat food that would be impressive in any city in the world while simultaneously having a spacious and affordable condo with parking that allows you to drive to a conveniently located Target or Costco to stock up when you need to. It’s car oriented when you need it and walkable when you need it, all at a reasonable price. Now that’s certainly something that many cities lower down in the hierarchy will also claim – big city amenities with a high quality of life. But Chicago is the most elite city in America that can plausibly make that claim.

    What Chicago is not, despite its pretensions, a truly global tier one city like New York, London, or Paris. That is what the booster culture can’t abide. It is an article of faith that every Chicagoan must believe, or at least pretend to believe, that Chicago is worthy of being spoken of in the same breath as any city in the world. Even a critic like Shteir seems to evaluate it on that basis.

    But the reality is that Chicago is a “1B” city like Frankfurt or Toronto not a “1A” city. There’s nothing wrong with that. In fact, I happen to believe Chicago’s value proposition is arguably better than most of the 1A cities for everyone who isn’t in the 0.1%. But both local boosters and critics can’t look at Chicago for what it is, but rather what it isn’t and never will be. Chicago will never be New York. But neither will New York ever match the best of Chicago on the Windy City’s own terms with a comparable quality/price/ease mix.

    In this sense, Chicago might be seen as the leader of a wave of other emerging would be 1A cities – Houston, Dallas, San Diego – that are making the cut from a second tier city. Being the leader and something of a role model for a wave of rising cities may not be bad positioning at all.

    Aaron M. Renn is an independent writer on urban affairs and the founder of Telestrian, a data analysis and mapping tool. He writes at The Urbanophile.

    Photo by Doug Siefken.

  • Genealogy Of Rust Belt Chic

    Some people don’t like the term “Rust Belt”. Others absolutely hate the word “chic”. Please don’t call the shifting mesofacts of dying Great Lakes cities “Rust Belt Chic”. Given the reaction, a lot of it negative, I decided to blog about how I came up with Rust Belt Chic. Way back in 2006, Shittsburgh was associated with a kind of urban chic. The South Side Slopes celebrated in the New York Times:

    “If Pittsburgh’s market were on steroids like New York’s, this would’ve happened a long time ago,” said one developer, Ernie Sota, referring to the recent spark of interest here. “But Pittsburgh’s kind of like an eddy. Things move slowly here.”

    Mr. Sota, 56, is a prolific local developer who is constructing a series of nine ‘green’ town houses, called Windom Hill Place, into a lush hillside here. He was drawn to the Slopes by the views and villagelike feel, which, for him, conjure memories of visits to Prague and Budapest.

    “It’s just kind of quirky, funky and real, more organic, built by Europeans and other immigrants,” he explained. “The only other American cities that I find as geographically interesting are maybe San Francisco and Asheville, N.C.”
    Emphasis added. At the time, I thought of Sota’s sense of Pittsburgh place as unique to the city. I’m not from Pittsburgh. I don’t live in Pittsburgh. I didn’t go to school there. I’m a geographer. Pittsburgh appeals to my sensibilities. Pittsburgh is my Paris.

    The geographic scope of Pittsburgh urban chic became Rust Belt Chic upon meeting Phil Kidd and John Slanina in Erie, PA for a Rust Belt Bloggers summit. They introduced me to Youngstown. I was hooked.

    Rust Belt Chic always will be ironic. People are attracted to shrinking city hellholes. However, the hellhole part is misunderstood. What I mean is seeing opportunity hiding in a community struggling with survival. There’s just something about Youngstown that stirs passion in me. I’m not gawking at ruin porn or glossing over everything that is wrong. I love Rust Belt cities. I love Rust Belt culture. I’m proud to be from the Rust Belt. That’s what Rust Belt Chic now means to me. It’s personal. It’s who I am.

    For Pittsburgh, I could sense the tide turning. I see the same transformation taking place in other Rust Belt cities. A pejorative, Rust Belt-ness is an asset. It’s a starting point for moving forward, not a finish line or a civic booster campaign. Rust Belt Chic is in the same vein as rasquache:

    Rasquache sensibility that has become an important component of Chicana and Chicano art. The word, rasquache can be used in several senses. Its most common use is negative and relates to an attitude that is lower class, impoverished, slapdash and shallow. For this reason Tomás Ybarra Frausto who has written the cogent essay “Rasquachismo: A Chicano Sensibility” begins by stating, “One is never rasquache, it is always someone else, someone of a lower status, who is judged to be outside the demarcators of approved taste and decorum (in Richard Griswold del Castillo and others, Chicano Art: Resistance and Affirmation, 1965-1985. Los Angeles: Wight Gallery, UCLA, 1991, p. 155)

    However, as the case of several other terms and concepts (most notably the term and concept Chicano itself, which traditionally had a negative sense), the Chicano movement has turned the traditional notion of rasquache on its head. This important Chicano cultural sensibility has been particularly used to address, by means of a stance of resistance that is humorous and ironic rather than confrontational or hard-edged, the harrassments of external authorities such as the police, the immigration service, government officials, social services bureaucrats, and others. Chicano art that is rasquache usually expresses an underdog, have-not sensibility that is also resourceful and adaptable and makes use of simple materials including found ones, such as Luján’s cardboard, glue, and loose sand. 

    Rust Belt Chic turns the traditional notion of Rust Belt on its head. The Rust Belt is lower class, impoverished, slapdash, and shallow. At least, that’s how it looks from the coast, in New York City. Rust Belt Chic as a place to be is a form of resistance. It’s also a hot new trend and a threat to those neighborhoods that make my heart beat faster. From San Antonio:

    “I see a lot of progressiveness happening lightning quick now. When I came from Los Angeles as a visitor in 1992, I saw all these magic spaces you could rent for 300 or 400 a month. But I would laugh because there was little or nothing going on. I could get together some event with a friend or two and everybody thought it was so cool and innovative – I was just copping what I had seen in LA.

    San Antonio has gotten a lot more popular with Austin and California types discovering what a jewel this town is. Eclectic little restaurants and coffee places and shops growing up along Broadway and throughout Southtown. We’re being seen by a lot more cutting edge people by being open to contemporary signage and logos and creative design. With that, unfortunately, comes more expensive retail spaces and taxes are going up.

    There is a charm and real-ness to San Antonio I hope we don’t lose in the process. San Antonio is a non-materialistic town; people aren’t looking at your shoes or what kind of car you drive. When I leave San Antonio, it’s that real-ness that brings me back, every time. I left LA, and I left Austin because I got so tired of the trendy-ness. We’re growing fast, we’re drawing an eclectic market that will support artists. However, there will be a compromise. I don’t want to see it get too uptight.”

    –Robert Tatum

    Pittsburgh is Rust Belt Chic Paris. San Antonio is Rasquache Paris. When Richey Piiparinen and I were in San Antonio to do fieldwork, we were both struck by the Rust Belt Chic qualities of the city. At the time, we weren’t familiar with rasquache. We are now. I see a lot of similarities between Pittsburgh and San Antonio, particularly the way both places are under-appreciated. They enjoy a cult following. Hopefully, neither one will become the next Austin or Portland.

    Rasquache is further along, much further, than Rust Belt Chic. In fact, Rust Belt Chic is rasquache:

    This called to mind a passage I’d read in Have You Seen Marie? It’s an unusual book for a writer whose work has been at turns bawdy, avant-garde, and politically trenchant. Entirely autobiographical, Marie is a short, illustrated story with a childlike tone about Cisneros searching the streets of King William for a friend’s lost cat while mourning the loss of her mother, who died in 2010. I read Cisneros the passage I’d thought of: “ ‘King William has the off-beat beauty of a rasquache, and this is what’s uniquely gorgeous about San Antonio as a whole.’ ”

    She smiled. “Rasquache is when you make or repair things with whatever you have at hand. You don’t go to Home Depot. If you have a hole in your roof, you put a hubcap on there. Or you fix your fence with some rope. That’s rasquache. And then there’s ‘high rasquache,’ which is a term the art critic Tomás Ybarra-Frausto coined. He lives here. Danny Lozano knew high rasquache. He’d serve you Church’s fried chicken on beautiful porcelain and use Lalique crystal for flowers he’d cut from an empty lot.”

    “And that was one of the qualities that drew you to King William?”

    “Not just King William but San Antonio. A kind of elegance of found things. San Antonio has that soul. It’s not, ‘We gotta copy what we saw in New York.’ No! It’s going to come out of our own idea of what we think is beautiful.” She stared at me as if to make sure I understood. “But that’s also what’s getting lost. People feel like the city’s got to look like someplace else. Our mayor needs a stylist. He thinks he has to dress like a Republican. Pues, he’s Chicano! He’s got this gorgeous indigenous look, and he would look so cool if Agosto Cuellar, one of our local designers, dressed him, or someone like Franco, or Danny, or John Phillip Santos—he dresses totally San Antonio cool. He should do a style column for Texas Monthly.”

    I allowed that Santos, who is a regular contributor to this magazine, does have singular style (the last time I saw him, in December, he was wearing a horsehair charro tie and ringneck python boots) but joked that there might be a preponderance of leather pants in his fashion advice. Cisneros waved the joke aside.

    “Our problem is that we can’t recognize or celebrate what we have. We have this inferiority complex in Texas that we have to look elsewhere. Well, who knows more about inferiority than Chicanos? We grew up being ashamed because the history that is taught to us makes us ashamed. The whole colonial experience surrounding the Alamo is meant to make you feel ashamed.”

    In writer Sandra Cisneros, I sense a kindred spirit. As a Rust Belt native, Erie no less, I felt ashamed. I come from failure. I have no culture worth celebrating. Anywhere else must be better. That’s why we leave. Brain drain.

    I, too, was drawn to King William while in San Antonio. It is New Orleans (creole) and Pittsburgh (parochial). It’s like nothing I’ve experienced before. I get that boom town vibe of a place that is cool before anyone knows it is cool:

    Russell has seen what’s coming before. “When the buzz starts – when San Antonio embraces the brain gain, goes in the right direction on the talent economy and hipsters start to get wise to the neighborhood assets that are here – once the hipsters get wind of it – you’ll have to beat them away with a stick,” he said.

    I think that’s the concern of Robert Tatum. About a year ago, such a notion was unfathomable to Cleveland. What will the compromise with gentrification look like in Ohio City? Will somebody utter the words, “He dresses totally Cleveland cool”?

    Danny Lozano knew high rasquache. He’d serve you Church’s fried chicken on beautiful porcelain and use Lalique crystal for flowers he’d cut from an empty lot.

    Rust Belt Chic is served.

    Jim Russell is a talent geographer with particular interest in the Rust Belt. Read his blog at Burgh Diaspora, where this piece originally appeared.

  • The 2012 Metro Year in Jobs

    Last month the BLS put out the first official release of annual job data for metropolitan areas, so I wanted to take a brief look at this for large metro areas (more than one million in population, based on old metro area definitions that the BLS still uses). Here are the top 10 cities for percentage job growth. Nashville takes the crown. I’m also personally glad to see Indy bounce back after a couple tough years.

    Rank (Best) Metropolitan Area 2011 2012 Pct Change
    1 Nashville-Davidson–Murfreesboro–Franklin, TN 756.7 786.2 3.90%
    2 Houston-Sugar Land-Baytown, TX 2592.1 2691.4 3.83%
    3 Austin-Round Rock-San Marcos, TX 795.0 823.2 3.55%
    4 Salt Lake City, UT 620.0 641.0 3.39%
    5 San Jose-Sunnyvale-Santa Clara, CA 876.4 905.2 3.29%
    6 San Francisco-Oakland-Fremont, CA 1917.2 1977.8 3.16%
    7 Charlotte-Gastonia-Rock Hill, NC-SC 825.1 850.3 3.05%
    8 Raleigh-Cary, NC 506.9 521.9 2.96%
    9 Dallas-Fort Worth-Arlington, TX 2932.2 3016.0 2.86%
    10 Indianapolis-Carmel, IN 888.6 913.8 2.84%

    Here are the bottom ten performers. The federal slowdown already appears to be hitting DC:

    Rank (Worst) Geography 2011 2012 Pct Change
    1 St. Louis, MO-IL 1298.7 1298.8 0.01%
    2 Rochester, NY 510.1 513.2 0.61%
    3 Providence-Fall River-Warwick, RI-MA – Metro 544.8 548.3 0.64%
    4 Buffalo-Niagara Falls, NY 543.5 547.0 0.64%
    5 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 2707.4 2725.2 0.66%
    6 Milwaukee-Waukesha-West Allis, WI 815.5 821.4 0.72%
    7 Virginia Beach-Norfolk-Newport News, VA-NC 737.7 743.8 0.83%
    8 Hartford-West Hartford-East Hartford, CT – Metro 538.2 542.7 0.84%
    9 New Orleans-Metairie-Kenner, LA 525.1 529.7 0.88%
    10 Washington-Arlington-Alexandria, DC-VA-MD-WV 3007.6 3039.8 1.07%

    And here is the complete list:

    Row Metropolitan Areas 2011 2012 Total Change Pct Change
    1 Atlanta-Sandy Springs-Marietta, GA 2306.0 2349.9 43.9 1.90%
    2 Austin-Round Rock-San Marcos, TX 795.0 823.2 28.2 3.55%
    3 Baltimore-Towson, MD 1292.6 1317.8 25.2 1.95%
    4 Birmingham-Hoover, AL 493.6 501.4 7.8 1.58%
    5 Boston-Cambridge-Quincy, MA-NH – Metro 2459.5 2499.2 39.7 1.61%
    6 Buffalo-Niagara Falls, NY 543.5 547.0 3.5 0.64%
    7 Charlotte-Gastonia-Rock Hill, NC-SC 825.1 850.3 25.2 3.05%
    8 Chicago-Joliet-Naperville, IL-IN-WI 4305.1 4369.2 64.1 1.49%
    9 Cincinnati-Middletown, OH-KY-IN 990.1 1002.4 12.3 1.24%
    10 Cleveland-Elyria-Mentor, OH 1001.2 1016.6 15.4 1.54%
    11 Columbus, OH 926.0 950.4 24.4 2.63%
    12 Dallas-Fort Worth-Arlington, TX 2932.2 3016.0 83.8 2.86%
    13 Denver-Aurora-Broomfield, CO 1213.6 1246.1 32.5 2.68%
    14 Detroit-Warren-Livonia, MI 1785.7 1826.8 41.1 2.30%
    15 Hartford-West Hartford-East Hartford, CT – Metro 538.2 542.7 4.5 0.84%
    16 Houston-Sugar Land-Baytown, TX 2592.1 2691.4 99.3 3.83%
    17 Indianapolis-Carmel, IN 888.6 913.8 25.2 2.84%
    18 Jacksonville, FL 586.8 595.6 8.8 1.50%
    19 Kansas City, MO-KS 980.6 996.8 16.2 1.65%
    20 Las Vegas-Paradise, NV 808.2 823.6 15.4 1.91%
    21 Los Angeles-Long Beach-Santa Ana, CA 5165.8 5264.6 98.8 1.91%
    22 Louisville/Jefferson County, KY-IN 598.0 610.9 12.9 2.16%
    23 Memphis, TN-MS-AR 593.8 600.9 7.1 1.20%
    24 Miami-Fort Lauderdale-Pompano Beach, FL 2228.6 2278.2 49.6 2.23%
    25 Milwaukee-Waukesha-West Allis, WI 815.5 821.4 5.9 0.72%
    26 Minneapolis-St. Paul-Bloomington, MN-WI 1735.0 1766.4 31.4 1.81%
    27 Nashville-Davidson–Murfreesboro–Franklin, TN 756.7 786.2 29.5 3.90%
    28 New Orleans-Metairie-Kenner, LA 525.1 529.7 4.6 0.88%
    29 New York-Northern New Jersey-Long Island, NY-NJ-PA 8418.2 8554.3 136.1 1.62%
    30 Oklahoma City, OK 580.1 593.4 13.3 2.29%
    31 Orlando-Kissimmee-Sanford, FL 1014.9 1040.3 25.4 2.50%
    32 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 2707.4 2725.2 17.8 0.66%
    33 Phoenix-Mesa-Glendale, AZ 1715.6 1757.1 41.5 2.42%
    34 Pittsburgh, PA 1144.9 1158.6 13.7 1.20%
    35 Portland-Vancouver-Hillsboro, OR-WA 987.8 1006.6 18.8 1.90%
    36 Providence-Fall River-Warwick, RI-MA – Metro 544.8 548.3 3.5 0.64%
    37 Raleigh-Cary, NC 506.9 521.9 15.0 2.96%
    38 Richmond, VA 610.9 623.4 12.5 2.05%
    39 Riverside-San Bernardino-Ontario, CA 1128.8 1151.6 22.8 2.02%
    40 Rochester, NY 510.1 513.2 3.1 0.61%
    41 Sacramento–Arden-Arcade–Roseville, CA 808.6 822.5 13.9 1.72%
    42 Salt Lake City, UT 620.0 641.0 21.0 3.39%
    43 San Antonio-New Braunfels, TX 858.4 877.9 19.5 2.27%
    44 San Diego-Carlsbad-San Marcos, CA 1233.4 1258.8 25.4 2.06%
    45 San Francisco-Oakland-Fremont, CA 1917.2 1977.8 60.6 3.16%
    46 San Jose-Sunnyvale-Santa Clara, CA 876.4 905.2 28.8 3.29%
    47 Seattle-Tacoma-Bellevue, WA 1671.3 1711.5 40.2 2.41%
    48 St. Louis, MO-IL 1298.7 1298.8 0.1 0.01%
    49 Tampa-St. Petersburg-Clearwater, FL 1129.7 1155.7 26.0 2.30%
    50 Virginia Beach-Norfolk-Newport News, VA-NC 737.7 743.8 6.1 0.83%
    51 Washington-Arlington-Alexandria, DC-VA-MD-WV 3007.6 3039.8 32.2 1.07%

    Aaron M. Renn is an independent writer on urban affairs and the founder of Telestrian, a data analysis and mapping tool. He writes at The Urbanophile, where this piece originally appeared.

    Get a job photo by Bigstock.

  • Fracking Offers Jerry Brown a Watershed Moment

    The recent announcement that Jerry Brown is studying "fracking" in California, suggests that our governor may be waking up to the long-term reality facing our state. It demonstrates that, despite the almost embarrassing praise from East Coast media about his energy and green policies, Brown likely knows full well that the state’s current course, to use the most overused term, is simply not politically and economically sustainable.

    Although largely a prisoner of basic green dogma, Brown also is a former Jesuit, with that order’s sense of rationality, order and, well, philosophical flexibility. Unlike many of his progressive idolaters and legislative allies, Brown may well be intelligent enough to look past the rhetoric of the environmental movement and consider its often unexpected ill-effects.

    Brown needs to balance "California comeback" stories – including one that gushingly describes "California beaming" – with the actual realities. Good times, and the current technology bubble, may be blessing Silicon Valley, but as Walter Russell Mead points out, this comeback is being pushed "over the heads of the poor and the jobless." This, he adds, "is not how progressives used to think."

    The chasm between the effects of "noble" green politics and the interests of most Californians is becoming evident, if not widely recognized in the mainstream media. Editorial writers at the New York Times may believe we are losing our need for oil and gas, but this transition should be more difficult than they suggest and, if achieved through often-thoughtless Draconian measures, could have profound impacts on the overall economy.

    Let’s start with the supposed "up" side of the purist renewable policies hitherto embraced by Brown. The governor’s 2010 election promise about creating 500,000 "green jobs" – his economic rationale for his energy and other environmental policies – increasingly looks far-fetched. With electric car maker Fisker, backed by well-connected Democratic venture capitalists and Al Gore, now perhaps ready to follow solar-panel maker Solyndra into bankruptcy, the pitch about a green economy seems unlikely, even bizarre.

    The state-driven "green" policies have also created huge losses for the giant state-employee retirement fund CalPERS, one of whose managers at a recent conference confided that renewable–energy investments have negative returns approaching 10 percent.

    Certainly, neither green energy nor even the current Silicon Valley bubble are creating enough jobs to make up for the enormous shortfall in employment since the recession. This is particularly evident in urban areas like Los Angeles and Oakland – where Brown was mayor from 1999-2006 – as well as most of the state’s interior. Overall, the state vies for last-place honors with the likes of Rhode Island, Nevada and Mississippi for the nation’s highest unemployment rate. The damage is greatest in the state’s more blue-collar interior. Working-class Stockton just was allowed to enter bankruptcy and other municipalities seem likely to join the queue.

    Progressive journalists, eager to pronounce the state’s comeback to justify their ideology, seem utterly unaware of the seriousness of the overall situation in the state. One wonders what they would say if Pete Wilson or Meg Whitman were governor. Compare Texas, which is 550,000 jobs ahead of its 2007 number, to California, which, despite recent gains, remains down 560,000 jobs from its peak. Perhaps unemployment is not a big issue in the progressive reserve of Palo Alto, where the jobless rate is about the same as in North Dakota, but it is a constant in much of Los Angeles, San Jose and Santa Ana, as well as the Central Valley. If this suggests a "comeback" to New York Times columnist Paul Krugman, perhaps we need a new definition for that word.

    These comparisons seem particularly relevant to the discussion of fracking – oil and gas extraction using a technique called hydraulic fracturing. In the environmental scheme of things, oil and even natural gas, once widely favored by progressives, now constitute an utter evil. This is true even though gas has been the primary reason for the country’s reduced carbon emissions by replacing coal as a source for generating electricity. Some of the state’s well-heeled greens would like to ban the process entirely.

    Brown must be aware he is not just governor of the public sector or of his admirers among the coastal rich. He has to consider the unimaginable: removing mandates that force the state to rely on expensive, often-unreliable renewables, notably, solar. These have helped push California electricity prices well above the national average, and much higher than in prime economic competitors such as Washington state, Utah, Texas, Arizona and Nevada. Economist John Husing suggests this is one reason why California not only completely missed the recent national revival in manufacturing jobs – 500,000 the past two years – but actually lost 10,000 more such jobs.

    We are clearly missing the party here. California’s energy policies reflect what is already happening in Europe, where anti-fracking ideology, sometimes supported by the no-doubt-disinterested Russians, have largely won the day. But the costs of green policies have already convinced hard-pressed Spain to abandon its widely praised renewable program.

    Far more economically healthy Germany also is rethinking its renewables mandates. One reason: German companies like Bayer and BASF consider moving to cheaper locales, such as along the U.S. Gulf Coast, where electricity is one-third the price. Texas, Utah and Arizona are to California’s hard-pressed manufacturers what the Gulf Coast is to Germany’s.

    And, then, there are the effects of the budget. Unlike his East Coast admirers, Brown must know that the budget situation is hardly rosy over the longer term. The state auditor recently released a report showing the state’s net worth to be negative by some $127 billion, in large part due to often out-of-control pension costs. There are already indications that the return from last year’s hike in income taxes may not be as large as expected and that what was, during the election, promised to schools will likely end up, as widely predicted, covering rising pension obligations.

    Companies and individuals may not leave California in droves, as some have suggested, but investors certainly can put their money someplace more fiscally responsible. A longer-term problem may be that the higher-income earners, who generate the vast majority of income-tax revenue, are also those most likely to change behavior or find effective income-hiding strategies; remember, Facebook paid no income taxes last year.

    Given these prospects, reviving California’s fossil-fuel industry could prove a critical boost to the budget. A deal to raise some energy taxes while allowing more exploration and development would go a long way to filling the state’s coffers.

    Energy taxes play a big role in financing higher education in many states, including North Dakota, Louisiana and Texas. Oil money, ironically, has allowed Texas to fund universities, particularly the main University of Texas campus in Austin, as a competitor to the perennially hard-pressed University of California system. An energy boom in California, whose energy resources may exceed those of all these states, might offend most academics, but, my hunch is, they might take the money.

    Perhaps more important, a pragmatic shift on energy would also help, as columnist Tim Rutten puts it, "jump start" the state’s economy, particularly in central California. In the past decade, Texas has created almost 200,000 energy-related jobs, while California has generated barely 20,000. These jobs provide good wages to many blue-collar workers, the very people losing out the most in our progressive-minded state.

    There are other signs of pragmatism from the governor. Brown has announced support for a peripheral canal that would provide more-reliable water supplies to the state’s huge agribusiness industry. Although some state regulators threaten farmers with ever-tougher regulations, some observers, such as three-term Salinas Mayor Dennis Donahue, now a full-time farmer, say the governor is trying to "walk the line between labor, greens and agriculture."

    Many Republicans and conservatives find the notion of Brown getting on the road to reality itself fundamentally unrealistic. But the past could be prologue. Brown also started off his first term, in 1975, as something of a dreamer, proclaiming a "small is beautiful" agenda. This was, in many ways, ahead of its time, and skeptical of government spending, but Brown’s environmental views, particularly, also offended some business interests. Far worse, he signed off on legislation freeing up public-sector unions, which has turned into something of a disaster.

    But by the time he started running for a second term, Brown readjusted to a new reality. He could claim that, as someone opposed to the growth of institutionalized government, he could live with Proposition 13. Brown had opposed the measure, but, once it passed, in 1978, he chose, unlike many progressives, to embrace it.

    Brown then ran as a centrist, pro-growth governor. He particularly embraced the then-ascendant technology industry, gaining new donors and allies, although the shift toward realpolitick horrified some of his green backers. But the politics worked brilliantly.

    Today’s circumstances, of course, are different. For one thing, Brown faces little pressure from the right, as the Republican Party, at least for now, has deteriorated into near irrelevancy. The once-potent California business community also has lost much influence, with every lobby, basically, trying to make its own deal with the overweening state apparat.

    So, if Brown is to move to the center, he will have to do it largely on his own, and put up with the incessant hectoring of his allies. Yet, Brown’s occasional genius has demonstrated a Machiavellian quality, knowing when to embrace opponents in order to divide or weaken them, or to allow allies to stew. He also, at this stage of life – today, April 7, is his 75th birthday – must wonder if he wants to leave a legacy of fiscal weakness, a fading competitive edge and an ever-expanding class chasm. In the long run, whether on fracking or a host of other issues, Brown’s success will not derive from pleasing progressive writers, but by promoting a better future for the vast majority who live in, and love, this state.

    Joel Kotkin is executive editor of NewGeography.com and a distinguished presidential fellow in urban futures at Chapman University, and a member of the editorial board of the Orange County Register. He is author of The City: A Global History and The Next Hundred Million: America in 2050. His most recent study, The Rise of Postfamilialism, has been widely discussed and distributed internationally. He lives in Los Angeles, CA.

    This piece originally appeared in the Orange County Register.

    Photo: Troy Holden

  • A Lasting Solution to the Transportation Funding Dilemma

    President Obama’s FY 2014 budget request includes $77 billion for the Department of Transportation and an additional $50 billion  "for immediate transportation investments." His next transportation bill to follow the current MAP-21, calls for a 25 percent increase in funding over current levels and assumes a transfer of $214 billion to the trust fund over six years "to maintain trust fund solvency and pay for increased outlays." To offset this spending, the Administration proposes using the "savings" or "peace dividend" from winding down the war in Afganistan. 

    House T&I Committee Chairman Bill Shuster (R-PA) was not impressed.  "The President’s budget," he said,  "repeats his call to increase spending without identifying a viable means to pay for it. …. You can’t just keep on spending money that you don’t have."  "A proposal we have seen three times before," observed Rep. Tom Latham (R-IA), House Transportation Appropriation Subcommittee chairman referring to the $50 billion request. With massive stimulus spending politically out of fashion, the Administration is repackaging it as "transportation investment." Bill Graves, president of the American Trucking Association, spoke for many stakeholders when he remarked, "For five years, we’ve waited for President Obama to clearly state how we should pay for these critical needs and, I’m sad to say, we continue to get lip service about the importance of roads and bridges with no real road map to real funding solutions." As for the "peace dividend," the idea has been dismissed as "budgetary gimmickry"  by congressional Democrats and  Republicans alike.

    In sum, a large segment of congressional and public opinion has pronounced the White House proposals variously as "vague", "repetitive," "unrealistic," "implausible" and "politically unachievable." Even the President’s most loyal supporters in the transportation community, the liberal advocacy groups, seemed disappointed and circumspect in their comments.  

    This said, no one disputes President Obama’s and the infrastructure advocates’ claim that some of America’s transportation facilities are reaching the limit of their useful life and need reconstruction. Nor does any one disagree about the need to expand infrastructure to meet the needs of a growing population. But fiscal conservatives among infrastructure advocates (and we count ourselves among them) contend that this does not rise to the level of a national crisis requiring a massive $50 billion federal crash program as proposed in the President’s budget message, or the expenditure of more than $100 billion per year as recommended by the American Society of Civil Engineers (ASCE) in its latest "Report Card."

    Instead, as we have argued in recent columns, the challenge can be met if each state did its part to progressively bring up its transportation facilities (including its Interstate highway segments) to a "state of good repair," using its own tax revenues and its formula allocation of the Highway Trust fund dollars (which are expected to total $38-41 billion per year over the next decade.)  As numerous news dispatches attest, that’s precisely what is happening (see below). A large number of states are not waiting for the federal government to come to the rescue. They are using their own resources and raising additional revenue to pay for reconstruction and modernization of their aging facilities and to maintain their transportation systems in good working condition. "Governors and state legislatures realize that the level of federal assistance beyond 2014 is highly uncertain and they are acting on a credible assumption that federal funding will remain at current levels or may even be cut back," an association executive who is familiar with the thinking of senior-level state officials, told us.

    What about large-scale reconstruction and system-expansion projects that require billions of dollars—transportation investments that are beyond the states’ fiscal capacity to fund on a pay-as-you-go basis out of annual cash flow? Those investments,  provided they are credit-worthy (i.e. are revenue producing or backed by dedicated tax revenue),  will be mostly financed through long-term credit instruments  and public-private partnerships. The future of capital-intensive infrastructure projects is intimately tied to the financial involvement of the private sector and to a wider use of  tolling, "availability payments,"  and innovative credit instruments such as TIFIA and private activity bonds (PABs), a veteran facilitator of public-private partnerships told us. We list below some of the transportation megaprojects that are being financed (or are planned to be financed) largely with public and private credit rather than with federal dollars out of congressional appropriations.

    ###    

    Lending credibility to the above funding scenario and hastening its adoption are the new realities underlying the federal role in transportation today. Those realities include: (1) a federal program that no longer has a clearly defined mission or purpose and many of whose functions are properly a state and local responsibility;  (2) a  Highway Trust Fund that has lost its capacity to support large-scale transportation investments and that has come to depend for its solvency on periodic injections of  general funds;  (3) a bipartisan absence of political will to raise the federal gas tax and (4) continued inability to identify another credible revenue source  to supplement or replace the gas tax.  

    In sum, having the states assume financial responsibility for fixing their aging transportation facilities and for preserving them in a state of good repair,  while employing public and private financing for major capital-intensive infrastructure investments, offers the best solution to the current  federal funding dilemma.

    NOTE: States that recently have undertaken to raise additional funds for transportation include: Virginia and  Maryland (broad transportation funding overhaul  that includes a dedicated sales tax applied to the wholesale price of gasoline.  A sales tax, it has been argued, is no less a "user fee" than the gas tax since every consumer who pays a sales tax also is served by or "uses"  the highway system for goods delivery );  Arkansas (one-half cent sales tax increase to back a $1.3 billion bond issue to fund highway construction over the next ten years);  Illinois (six-year $12.6 billion statewide construction program to improve roads and bridges);  Massachusetts ($13.7 billion bond-financed transportation plan); Maine ($100 million transportation bond proposal) Michigan ( $1.5 billion road plan funded with vehicle registration fees and a tax on fuel at the wholesale level); Missouri (proposal for a dedicated one-cent sales tax for transportation; the tax is expected to raise $7.9 billion over ten years); New Hampshire (12-cent hike in the gas tax over three years approved by the House; Senate approval uncertain);  Ohio (turnpike toll-backed $1.5 billion bond issue for highway and bridge improvements);  Pennsylvania ($2.5 billion Senate transportation funding plan; House approval uncertain); Texas (statewide tolling);  Wisconsin ($824-million boost to the state transportation fund);  Wyoming (10-cent fuel tax increase, the first in 15 years); and California, Oregon and Washington (exploring new mechanisms for project finance through the cooperative West Coast Infrastructure Exchange). In addition, several states which derive significant revenue from their tollroads have raised toll rates. See also, "State Transportation Funding Proposals,  AASHTO Center for Excellence in Project Finance, April 2013

    Recent major transportation infrastructure projects largely financed,or to be financed, with long-term credit instruments rather than federal dollars include: the I-495 Beltway HOT lanes project in Northern Virginia; New York’s Tappan Zee Bridge replacement; the San Francisco Bay Bridge Eastern Span replacement; the I-5 Columbia River Crossing;  the Highway 520 floating bridge and the Alaskan Way Viaduct in Seattle, the Midtown tunnel linking Norfolk and Portsmouth, VA; East End Crossing over the Ohio River near Louisville; and the PortMiami Tunnel. Please note that, except for the California High-Speed Rail venture, there are no transportation megaprojects currently being planned whose construction would depend primarily on federal appropriations.

  • CSI Switzerland: Anatomy of an iPod Theft

    When my seventeen year old son was mugged this year, coming home on a late weekend tram, he lost his iPod along with his Beats headset. I felt sympathetic, but not shocked, that he had been shaken down, even though we live in a quiet village on the outskirts of Geneva.

    The city has been experiencing a crime wave—at least by the standards of the Swiss countryside—with about 700 house break-ins a month. Unemployment for youths under 25 in nearby France, about a mile from our house, is now more than 25%, but more than double that for illegal immigrants, for whom house burglaries in Geneva are one of the few growth industries.

    Nor is it unusual to hear that a teenager has had something stolen or been roughed up. In my son’s case he wasn’t badly hurt; he took some punches to the head. Most of his wounds were to his childhood sense of security.

    He reported the incident to the police, who picked him up at the tram crime scene, drove around looking for the muggers, and dropped him back at home. A few days later he filed a more substantial report with a detective, who promised to look at the security tapes on the tram. We expected the matter to end there.

    Under the sway of late-night television, I was for staking out the tram on weekend nights, a proposal my wife dismissed as worthy only of Charles Bronson (Yeah? Well, what if the cops can’t handle this?). My wife rolled her eyes.

    A few weeks later, however, the Geneva police called to say that they not only had apprehended the muggers—all local Swiss, not Lyonnais gangsters—but had gone to the house of one of them and found a stash of loot, including my son’s iPod and his Beats.

    Equally incredible, that night two detectives came to our house close to midnight and returned the robbed goods. The detectives explained to my son that he had the option to press charges against the three, and give testimony in court, which he agreed to do, and that he could claim damages from the incident.

    We showed up at the appointed hour and were led into a wood-paneled, sparely furnished courtroom, locally called “Le Tribunal des Mineurs.” The only police officers were sitting outside in a waiting room, next to one of the defendant’s parents.

    As if called to the principal’s office, the three attackers were seated on small chairs directly in front of the judge, who sat alone behind a long desk. They looked like other teenagers I see on the street — jeans, sneakers, varsity jackets, and vacant expressions — but without iPhones. Behind the defendants sat three lawyers, testament that the muggers came from some means.

    Dressed casually, without robes or a necktie, the judge began by asking my son what happened. In Swiss cases, the judge hears the witnesses and dictates a summary to a court reporter. There was no jury.

    My son went over how these three kids, about sixteen- or seventeen-years-old, had sat behind him on a bus, and followed after him when he changed to a tram. When they were the only ones left on the street car, they asked him for a cigarette (he said he didn’t smoke).

    When the tram reached the end of the line, my son chose to sit tight in the bright lights under the surveillance cameras, rather than to make a run for the doors. He’d been unable attract the attention of the driver. When he finally decided to make a break, the gang of three surrounded him, shoved him back into his seat, hit him with their fists, and made off with his gear.

    The judge asked my son what he did next, and he said, “I called 117” (the police). The judge responded quickly, “But how?” My son described how, when the kids sat down behind him on the empty train, he managed to slip his phone and wallet into his underwear. The judge almost whistled when he said, “Bravo.”

    Then he questioned the attackers professionally, sternly, and, often, incredulously. He asked them if the testimony was true, and they said it was. He asked if they wanted to “say anything to the victim.” From their three mouths came stuttered, awkward apologies.

    The judge ended the court session by asking the three muggers what they would do if they saw their victim on the street (my son chuckled when one said he would “shake his hand”). The three were forced to go on the record, before a judge, that they would do him no additional harm if they met by chance.

    The court reporter printed out the transcript, my son signed three copies, and the judge explained that because it was a juvenile court the sentencing would not be made public.

    As juveniles, the three will not be sentenced to jail, but to a court program dealing with youthful offenders. I can imagine them attending anger-management classes, unless they were part of some larger, more violent crime syndicate, although I doubt that is the case. The pros don’t roll their victims under security cameras and stash the loot in bedrooms decorated with soccer posters.

    When the judge excused us, he walked over to my son, and said, “It took courage for you to come here today.” He shook his hand.

    I felt as if it were 1935 and I was listening to a justice of the peace lecture three kids about delinquent behavior. He wasn’t looking to send them up the river, but he spoke for a society that does not condone personal violence, especially in public places against strangers. I sensed the three got his message. At least, they were forced to hear it.

    In the annals of crime, this mugging means nothing, except to those involved. The prosecution did nothing to reduce the wave of house burglaries; those are the work of gangs operating out of Lyon and elsewhere in France. But the Geneva judge treated this matter as if he had the fate of several lives in his hands, and, in my view, he handled those lives with professionalism and care.

    Matthew Stevenson, a contributing editor of Harper’s Magazine, is the author of Remembering the Twentieth Century Limited, a collection of historical travel essays. His next book is Whistle-Stopping America.

    Flickr Photo by Alain Rouiller- rouilleralain — a street in a village near Geneva.

  • Richard Florida’s Federal Fantasy

    Urbanist Richard Florida, in a New York Daily News op-ed, has called for President Obama to define his legacy not only by focusing on gun control, immigration and climate change, but by zeroing in on an even more important issue: America’s urbanization.

    This is because today, he explains, the nation’s 50 largest metros contain two-thirds of US population, produce three-quarters of its economic output, and are home to a great concentration of its innovations. Florida, author of Rise of the Creative Class and one of New Urbanism’s prime theoreticians, believes that these metros have been neglected by a government that romanticizes suburbs and small towns, while ignoring the greater productivity of dense areas. The answer to this misallocation of resources, he writes, would be for Obama to form a Department of Cities.

    According to his proposal, this would fold into the now-dated Department of Housing and Urban Development (HUD), and would represent a shift in how government approaches cities. While HUD was “created to mitigate poverty at a time of wide-scale suburban flight” by providing housing and jobs for vulnerable populations, this new department would enact reforms more in fitting with urban America’s renewed prosperity. That would include redirecting infrastructure money back into city centers, and funding bike lanes, mass transit and pedestrian zones. Zoning and building codes would be modified to allow for greater densities.

    What’s wrong with this idea? It’s hard to know where to begin.

    The proposed department would tread beyond just growth and infrastructure, and become a comprehensive bureaucracy. Its modifications to zoning laws, for example, would interfere with traditionally local police power. And the department would “absorb pieces” from a half-dozen agencies, like the Departments of Commerce and the Interior. That way, it could deal with climate change, immigration and gun control, as well as crime, education, and inequality. The department’s bipartisan advisory board, which would include mayors, developers, and academics, could even dabble in foreign affairs, by demonstrating how “urbanism and sustainability should underpin a new US ‘grand strategy’.”

    Florida justified such a department by saying it would make government leaner, through the better coordination of different agencies. That, in turn, would help it streamline economic vitality and job creation in cities, using a “cut to invest” approach. But Florida didn’t note that such a department would only be possible if approved by the Obama administration that would be forming it. And that seems unlikely, given that the president’s current urban vision is little different than the old HUD model Florida bemoans. Obama’s choice for HUD secretary was Shaun Donovan, a former New York City housing commissioner who launched the city’s “inclusionary zoning” program, making it available even for six-figure households.

    Obama, after all, came of age in Chicago, a city long mired in that department’s policies. He has continued funding some of its more anachronistic programs, like Community Development Block Grants, and started Choice Neighborhoods, which is an expanded version of the old Hope VI program. Meanwhile, the economic benefits of his new HUD measures are no more evident than past ones. The Strong Cities Strong Communities Initiative gave grants to six declining cities, including Detroit, which has received gobs of federal money before, but has failed to improve largely because of problems within city hall. Both the Neighborhood Revitalization Initiative and the Promise Neighborhoods grants are all-encompassing attempts by the federal government to solve poverty, going beyond just housing, to include schools, policing, and health care.

    The Sustainable Communities Initiative is meant to centralize the various municipalities within a given metro area. While the strategy can have advantages, it has been used by Obama merely to advance a far-left agenda: its been known to restrict suburban development.

    So how likely is it that Obama would fill this new Department of Cities with the market-oriented appointees suggested by Florida, like economist Edward Glaeser, and Tony Hsieh, founder of Zappos, the online shoe retailer? Probably less so than Obama filling it with ones who, like himself, seem to believe the government can solve every urban problem if only given more money. Such thinking has led to continued wastefulness within HUD, and might inhibit a new city department from its stated goal of spurring growth.

    Even if such a department did spur growth, it might, like other top-down entities, do so abusively—a point that seems lost on Florida. While discussing the article on MSNBC, he explained that “HUD was great for its time,” as “the bulwark of both urban renewal…and providing affordable public housing,” and that the new department would simply need to adapt to modern conditions. But the “renewal” he celebrates caused the widespread destruction of neighborhoods—and arguably cities altogether—in the 1950s and 1960s, while the public housing that replaced them was crime-ridden.

    There’s no reason to think that those who ran a Department of Cities would learn from these mistakes. Yesterday’s urban renewal exists today merely in different forms. There has been a vast expansion of eminent domain powers because of 2005’s Kelo v. New London, which legalized taking private property for other private uses, and is now being used for local economic development strategies, particularly in New York City. Under Mayor Michael Bloomberg—Florida thinks he would make a great cabinet member—there have been attempted condemnations of large areas, including the Atlantic Yards project underway in Brooklyn. Property would be confiscated from thousands of owners, while reshaping whole swaths of the city into master-planned projects. Who is to say a Department of Cities wouldn’t implement this method nationwide, wiping out poor neighborhoods to build yet more “redevelopments”—aka convention centers, malls, and stadiums—that perform even more poorly than the original neighborhoods did?

    Florida ends his article about federalizing urban policy by, ironically, repeating a quote Bloomberg once made about the virtues of local governance: “While nations talk, but too often drag their heels—cities act.”

    This just summarizes the problem with a “Department of Cities.” It would concentrate power at a level of government that is known for sluggishness in some cases, and arbitrariness in others. While a department that focused only on redirecting infrastructure into dense areas might be beneficial, the comprehensive one described by Florida would prove politically toxic, since it would veer into multiple other issues. And it would be controlled by someone who, like Obama, might use it not for economic growth, but to further propagate the growth—and wastefulness—of the federal bureaucracy.

    Flickr photo by Anthony Fine: Atlantic Yards construction, Brooklyn.

    Scott Beyer is traveling the nation to write a book about revitalizing U.S. cities. His blog, Big City Sparkplug, features the latest in urban news. Originally from Charlottesville, VA, he is now living in different cities month-to-month to write new chapters.

  • The Evolving Urban Form: Nanjing

    Nanjing is one of China’s most historic cities. It is one of the four great ancient capitals of the nation, along with Beijing, Chang’an (Xi’an) and Luoyang. Its name means southern capital (Nan=south, Jing=capital), while the name of the current capital, Beijing means Northern capital. Nanjing was the national capital at various times, however generally for periods of no more than a few decades. Upon the establishment of the People’s Republic of China, the national capital was moved permanently to Beijing, where it had been for most of the previous five centuries.

    Nanjing is the capital of Jiangsu, which is China’s fifth most populous province. It has twice as many people as California (80 million) and a land area the size of Virginia. Nanjing is also one of the "four furnaces" of China, a title derived from its humid summers. The others include Wuhan (Hubei), Chongqing and sometimes Changsha (Hunan) or Nanchang (Jiangxi).

    Nanjing is reputed to have the world’s longest, though not the oldest surviving city wall, which was built in the 14th century (Photo).  The city is also the site of the second bridge ever built over the lower Yangtze River (Photo), opened in 1968 (the first was at Wuhan). The bridge carries both automobiles and trains. There are now five Yangtze River crossings in Nanjing.


    Nanjing City Wall


    Yangtze River (toward suburban Pukou qu)

    Yangtze Delta Megalopolis

    Nanjing is a big city in one of the world’s great urban mega-regions. It serves as the Western anchor of the Yangtze Delta region, a megalopolis (string of metropolitan areas) which consists of a string of sometimes adjacent urban areas, stretching through Suzhou to Shanghai and Hangzhou to Ningbo, with a population of approximately 60 million (plus additional millions in rural areas, outside the urban areas). This is at least a third more than live in the longer Washington-New York-Boston corridor, the original megalopolis.

    A trip through the Yangtze Delta corridor demonstrates only comparatively short sections that are not urbanized. One of the longest is the 10 mile (16 kilometer) section from the eastern urban fringe of Nanjing to the western fringe of Zhenjiang (location of the Pearl S. Buck Museum). Further, Nanjing’s southern fringe now meets that of Maanshan, in Anhui province (not a part of the Yangzte Delta).

    The Nanjing Urban Area

    Nanjing has grown rapidly. In 1950, the urban area population was approximately 1.0 million (see "Definition of Terms Used in the Evolving Urban Form Series"), a population some sources say was exceeded in the 15th century. The urban area has now reached 5.8 million. Nanjing is the world’s 59th largest urban area and the 13th largest in China. It is projected to have a population of more than 8 million by 2025 (Figure 1). The Nanjing urban area (Figure 2) covers approximately 440 square miles (1,140 square kilometers). This results in a population density of approximately 13,100 per square mile (5,100 per square kilometer).

    Consistent with the general principle that cities become less dense as they get larger, Nanjing’s population density has fallen significantly over the last 60 years, even as its geographical size has more than quintupled (Figure 3). Older historic land area data is not readily available, but if it is assumed that virtually all of Nanjing’s United Nations reported 1,000,000 population in 1950 lived within the 17 square mile (44 square kilometer) periphery of the city walls, the population density would have been more than 60,000 per square mile (more than 23,000 per square kilometer). The area within the city walls is indicated by green shading in the urban area representation (Figure 2).

    By 1970, the population had increased to over 1.4 million and if this population was contained inside the city walls, the population density would have approached 90,000 per square mile (35,000 per square kilometer).Indicating a similar density, the 2010 population of the most densely populated district (Golou qu), much of which is located inside the Wall 86,000 per square mile (33,000 per square kilometer).

    The Nanjing Metropolitan Area

    Nanjing is a prefecture (regional municipality) with 11 districts, of which nine are in the metropolitan area (Note 1). The core of Nanjing continues to grow, from 2.5 million in 2000 to 3.4 million in 2010, an increase of 34 percent (Note 2). But in comparison, the suburban districts grew from 2.3 million to 3.8 million, an increase of 64 percent (Figure 4). For the first time, suburban Nanjing has a larger population than the urban core. The suburbs accounted for 64 percent of the metropolitan area’s growth over the past decade, compared to 36 percent in the urban core (Figure 5).

    Pukou, a suburban district across the Yangtze River from the historic location of Nanjing, was by far the fastest growing part of the metropolitan over the past decade. By 2010, the population had risen to 710,000 from 225,000 in 2000, when it was largely rural. Two metro lines are planned to connect Pukou to the rest of the urban area, which is likely to encourage further suburban development.

    The Nanjing Economy

    Nanjing, like other cities in China, has been a beneficiary of China’s unprecedented poverty reduction, first launched by the economic reforms started by Deng Xiao Ping in the early 1980s. It is estimated that in 2012, Nanjing’s gross domestic product per capita (purchasing power parity adjusted) was approximately $25,000 annually. Nanjing’s GDP per capita is compared to that of other Chinese metropolitan areas and examples from the developed world in Table 6 (Note 3).

    A Strong Future

    Nanjing seems likely to continue its strong growth. This and Nanjing’s geographic location in one of the most vibrant mega-regions in the world should guarantee a continuing and strong contribution not only to the development of the Yangtze Delta megalopolis, but also to economic progress of China as a whole.

    Wendell Cox is a Visiting Professor, Conservatoire National des Arts et Metiers, Paris and the author of “War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life.

    —-

    Note 1: The districts (qu and counties) designated as urban by Nanjing prefecture (regional municipality) authorities Entire peripheral districts are designated when they begin to receive urban development. The "urban" designation in China, however, does not indicate continuous urbanization and is thus not an urban area in the internationally defined sense. The Chinese urban definition is thus similar to a metropolitan area (labor market).

    Note 2: The urban core includes the following districts (qu): Xuanwu, Biaxia, Qinhaui and Gulou.

    Note 3:  Estimated the Brookings Institution Global Metro Monitor, and other sources. See "World’s Most Affluent Metropolitan Areas: 2012" including the "Note."

    Top Photo: Zifeng Tower (all photos by author)