Reinventing the Rust Belt in Kokomo

I’ve written about Kokomo, Indiana before and also posted a podcast with its mayor. It’s a small manufacturing city in Indiana, far from glamorous and with its own set of challenges, that has been seeking to reinvent itself for the 21st century. My latest City Journal article is a look at Kokomo and what it’s been up to.

Today, Kokomo is in the midst of a multiyear transformation that’s dramatically reshaping it. Downtown is home to new co-working spaces, retailers, restaurants, and a brewery. More than 200 upscale apartments have been built across several developments, along with new senior housing and upgraded public-housing developments. Renovators are working on single-family homes in near-downtown neighborhoods. The city is expanding parks, trails, and bike lanes, and has built a downtown baseball stadium, home to a collegiate summer-league team. Every stoplight was removed from the core of downtown, every one-way street converted to two-way, and numerous intersections were redesigned with attractively landscaped pedestrian-friendly bump-outs and decorative flower-planters on streetlights. There’s a sparkling new YMCA, a central parking garage, new firehouses, and a refurbished city hall. After several decades without public transit, the city restarted bus service, which now operates five routes, all fare-free.

The catalyst for all this change has been Mayor Greg Goodnight, in alliance with the Chamber of Commerce, the school corporation, and other community groups. Goodnight is arguably the most dynamic Democratic politician in Indiana. He’s a union blueblood—he was previously president of the local United Steelworkers, and his father was formerly the regional president of the Teamsters. But he’s also a fiscal hawk who has tussled with local public-employee unions, including a bruising multi-month standoff with the firefighters. And he’s a strong proponent of creative-class-style place-making as well. Goodnight, who does not hold a college degree, gave himself a master class in urbanism by reading classics in the field from authors including Jane Jacobs, Edward Glaeser, and Ed Speck. Books on cities line the shelves behind his desk, and he’s internalized them better than many planners. Kokomo’s infrastructure projects, in particular, are well designed, with great attention to detail. Goodnight’s leadership is arguably the model of the working-class/creative-class, blue-collar/white-collar synthesis that many believe we need today.

Click over to read the whole thing.

from Aaron M. Renn
https://www.urbanophile.com/2018/11/30/reinventing-the-rust-belt-in-kokomo/

A Look at Lordstown

With news that GM is closing its Lordstown assembly plant near Youngstown, I thought back to a short film I saw in grade school that made such an impression on me at the time that I never forgot it. In the wake of a strike at the plant in 1972, film makers interviewed workers at the plant and created a short documentary from it. Note at the scenes inside the plant are not from Lordstown. In fact, I think they are from a Ford plant. GM refused to cooperate with the film crew in any way, so they used other footage to give a look at life inside the plant in that era. If the video player doesn’t display for you, click over to watch on YouTube.

Another GM plant that’s closing is the one in Detroit’s former Poletown neighborhood. Steve Malanga at City Journal takes a look back at the senseless destruction of a city neighborhood carried out to build this plant that will now just become another hulking ruin in Detroit.

Cover image credit: Mary Beth Eastman BY-NC-ND 2.0

from Aaron M. Renn
https://www.urbanophile.com/2018/11/29/a-look-at-lordstown/

Talent and Economic Development

I met economic development consultant Kevin Hively of Ninigret Partners when I was living in Rhode Island. This week I was able to get him down here into my studio for a podcast that included his collaborator Scott Page of Interface Studio. We actually recorded two podcasts about economic development, including this one devoted entirely the matter of talent, why it matters, and how to attract it. If the audio player doesn’t display for you, click over to listen on Soundcloud.

Subscribe to podcast via iTunes | Soundcloud. Please be sure to leave a rating for my podcast on iTunes because that helps people to discover it. Thanks!

Cover photo credit Rober Scoble, CC BY 2.0

from Aaron M. Renn
https://www.urbanophile.com/2018/11/28/talent-and-economic-development/

Louisville Bridges Project Is the Biggest Transportation Boondoggle of the 21st Century

Photo Credit: Bart Evans, CC BY 2.0

I have been a steadfast critic of the project to build two new bridges across the Ohio River in Louisville for over a decade. In fact, my first critical post on the bridges proposal was put up in 2007 less than six months after starting my original Urbanophile blog.

The end result was even worse than I anticipated. The project has proven to be a money waster of the highest order, and in fact by far the biggest American transportation boondoggle I can identify in the 21st century so far.

Part of the agreement between Indiana and Kentucky to build the bridges was that they would do official before and after surveys of traffic to determine the impact of the new bridges on traffic flow. The study was published in August of this year.

The result? The two states spent $1.3 billion dollars to build a parallel I-65 span in downtown Louisville that doubled the capacity of that crossing. After spending that money, traffic fell by 50%.

Let me repeat that: Indiana and Kentucky spent $1.3 billion to double the capacity of a road while traffic levels were cut in half.

Here’s a chart showing the before and after traffic levels on the bridges.

And here’s a percent change look.

The project doubled the size of the I-65 crossing and built a new East End crossing that didn’t previously exist. Each of these were around $1.3 billion separately.

What happened is that to pay for (part) of the bridges, a toll was added to the previously free I-65 bridge, and a new crossing in the East End was also tolled. This simply led to a diversion of traffic to the other two bridges that didn’t have tolls.

Total cross-river traffic has actually fallen since 2013, albeit only slightly. But traffic on the Clark Memorial (2nd Street) Bridge is up 75%. This is traffic choosing the free route to get to downtown. This happened even though the Clark Bridge has seen its number of lanes cut in half due to a lengthy repainting project. Traffic on the I-64 bridge increased by 23%.  There’s no percent change on the East End bridge since it didn’t previously exist.

I have always said that the East End bridge made sense conceptually because it added a crossing where one did not exist previously and where traffic would otherwise have to go many miles out of the way to get across the river. The actual bridge was too expensive (also $1.3 billion or so), in part because of a ludicrous tunnel built on the Kentucky side, but at least the basic bridge was a sound project.

But an expanded downtown crossing never made sense. Not only has it proven to be a transportation waste, it is a negative in other ways. For example, the project doubled the width of interstate overpasses through downtown Louisville, creating a bigger barrier between downtown and the booming NuLu district to the East.

Most gallingly, Louisville decided to double down on freeways at a time when most cities are looking at ways to reduce the negative impact of freeways on downtowns and even tear them out entirely in some cases. A very viable proposal to do just that in Louisville called 8664 was rejected by policymakers, who insisted on spending $1.3 billion on this disaster.

Not only was this project a colossal waste of $1.3 billion. Not only did it harm the urban fabric of downtown Louisville. But there’s also reason to believe it  diverted economic activity away from Louisville.

Looking at the numbers in table 3.1., it looks like truck traffic across the river has fallen by almost a third since 2013. Here’s the chart:

20% of 224,700 is 44,940. 14% of 220,200 is 30,828.  That’s 14,112 trucks (i.e., commercial traffic) gone. Where did they go? If you are a region that’s banking on the distribution industry for a big part of your future blue collar employment growth, the tolls on these bridges can’t be good news.  That’s particularly true when no surrounding competitor city has tolls.

I don’t generally like to say “I told you so” – but in this case I’ll make an exception. My analysis of this bridge project was known to decision makers well in advance of the project moving forward. I know that for a fact. What’s more, probably nothing harmed my standing in certain political circles more than this reportage. The 8664 idea was very widely circulated and understood by everyone in Louisville leadership.

This boondoggle didn’t happen by accident. It wasn’t a result of ignorance. It was well known in advance that it was a bad idea. It was a deliberate, conscious choice.

The fact that these states found $1.3 billion to spend on this downtown bridge is one reason why I will never again accept the “there’s no money for that” excuse on anything again. States keep finding plenty of money to spend on things of little to no value – like this bridges project.

I’m not hostile to road spending, so my opposition to this project was never based on an ideological opposition to cars but because it make no transportation or financial sense. It doesn’t make sense to build new roads in stagnant or shrinking places and we should be cautious about speculative projects in an age where we don’t know what the pending possible disruption of driverless cars might bring, but I’m a big advocate of building more roads in rapidly growing places. Unfortunately, the project selection process in most states seems to filter for the worst projects while the best go unfunded.

Is there another place in the country where somebody spent $1.3 billion to double the capacity of a road whose traffic then fell by half? I can’t think of another example remotely like this. It may well be that something like the MTA East Side Access in New York has seen cost overruns that dwarf this. But at least that project will be useful when it’s done. This is a total waste. That’s why the Louisville downtown bridge is the biggest transportation boondoggle of the 21st century to date.

By rights I should be writing this for a major national publication instead of putting it on my personal web site. But I love Louisville and Southern Indiana (my hometown) and don’t want to create negative press for them. I just want it known for the record that this did not have to happen.

from Aaron M. Renn
https://www.urbanophile.com/2018/11/26/louisville-bridges-project-is-the-biggest-transportation-boondoggle-of-the-21st-century/

Tulsa, Oklahoma Will Pay You $10,000 to Move There

Tulsa, Oklahoma. Photo Credit: Jordan Michael Winn

Tulsa is joining the parade of places that are providing economic development incentives to people who are willing to relocate there. I previously mentioned Vermont’s program and also that of a Cincinnati suburb.

I’ve been pretty critical of these. They have the whiff of desperation about them even though these places should be positioned to attract people. Tulsa in fact is growing right in line with the US average population growth rate.

I’ve never been to Tulsa so won’t comment on them specifically. I just find it curious that so many places are turning to this approach to try to lure talent.

There are so many other traditional ways to market your city to outsiders that haven’t yet been exhausted in these places. My recent paper on civic branding talks about how cities overwhelmingly try to sell themselves using generic descriptors rather than stake out a unique place in the market.

I’ve been puzzling over why this is for a long time. It’s probably multi-factoral. At some levels many of these places don’t actually want to attract outsiders because that would threaten the status quo. (Though cities going to far as to offer $10K to someone to move must mean it). It’s also the case that civic marketing is often overseen by committee and is handled by the agency responsible for, at the end of the day, booking conventions not luring residents. And also maybe that the real primary audience for this material is internal.

There are definitely a lot of places in America that face legitimate challenges and where convincing someone to move there is going to be a tough sell. But there are many other places that have all the potential in the world but don’t seem to be interested in achieving it. For those that do want it, I’m not convinced a generic financial incentive to relocate is the right answer.

Posting will resume after the Thanksgiving Day holiday.

from Aaron M. Renn
https://www.urbanophile.com/2018/11/20/tulsa-oklahoma-will-pay-you-10000-to-move-there/

Inner Ring Suburban Challenges in Dolton, Illinois

Last year I published a Manhattan Institute study suggesting that struggling inner ring suburban communities should consider merging with the next door central city.

One of the suburbs I highlighted in my report was Dolton, Illinois. The Better Government Association in Chicago has a big, detailed piece on Dolton that gives you a sense of its challenges. It’s important to understand that this is happening all over the south suburbs of Chicago, and in many other places around the country.

Here’s an excerpt:

This is the story of how one small town became trapped in a downward spiral that poverty experts say follows a well-worn pattern of deindustrialization that leads to a disenfranchised economic class. Communities of color inherit a legacy of decline and then lack the resources, both financial and political, needed to turn things around.

It was no one single thing, but a cascade of events that changed the fortunes of Dolton and its neighbors. The decline of manufacturing led to a loss of job and pay opportunities, which in turn fed a wave of white flight as longtime residents left and were replaced by African-American city dwellers lured by better, yet not too expensive, housing.

But luring new investment to now majority black communities proved a challenge and housing values began to fall, taking down with them the tax revenues needed to keep up public services. Next came widespread foreclosures and an invasion of real estate scavengers who bought houses on the cheap, transforming a community of homeowners with a deep financial stake in their town into one of renters with looser bonds.

All the while, the political fabric vital to turning things around continued to fray. Government stumbled amid patronage and gridlock, rendering even more challenging the task of drawing needed new investment.

The composite property tax rates faced by Dolton homeowners are now more than triple those in Chicago. In 2017, Dolton taxpayers paid nearly $25 for every $100 of assessed valuation of their property, about double what the rate had been prior to the recession. In Chicago, which starts just north of the Dolton village limits, the most recent rate is a little more than $7 for every $100 in assessed valuation.

All of which contributes to an ever steeper downward spiral, with businesses finding it a more expensive place to operate and homeowners a more expensive place to live. Vacant and abandoned homes multiply, real estate values sink and vital services are rocked by attrition and layoffs.

Dolton Police Chief Robert Collins said staffing shortages have become so chronic that his department has been reduced to sometimes running “ridiculously unsafe” skeleton crew shifts of three officers and a supervisor.

Click over to read the whole thing.

from Aaron M. Renn
https://www.urbanophile.com/2018/11/19/inner-ring-suburban-challenges-in-dolton-illinois/

International Organizations in an Urban World

We hear a lot about the importance of cities. Yet the international system is built entirely around states. How does that world of international organizations intersect with an urbanizing planet?

Ian Klaus at the Chicago Council on Global Affairs has a new study out looking at that very matter. It’s called “Invited to the Party: International Organizations Evolve in an Urban World.”

After World War II, dozens of international organizations (IOs) were created to structure international relations and alleviate causes of poverty and insecurity. Today, tectonic shifts in demography, technology, and diplomacy are testing these institutions, forcing them to adapt. In particular, the role and influence of cities on the international stage is growing, as urban leaders have made significant strides in making their voices heard on issues of international importance, from climate change to terrorism.

The research, governance, and partnerships of IOs have evolved to some extent. Most major international organizations now work on urban issues at the municipal and national levels, building local relationships and integrating policies vertically—which has complemented many cities’ work to organize their own collaborative efforts and to participate in and serve as leaders of the international dialogue. But many IOs are behind in adapting to the “century of cities” that is already underway, and their adaptations thus far have been largely ad hoc and subject to slow bureaucratic evolution.

Click over to read the whole thing.

Cover image credit Fidel Gonzalez, CC BY-SA 3.0

from Aaron M. Renn
https://www.urbanophile.com/2018/11/16/international-organizations-in-an-urban-world/

Amazon’s Silver Lining for the Other 235 Cities

Hudson Yards, under construction

I already wrote a bit here about how cities could have benefitted from the Amazon process even without winning it. I expanded on that theme in an article for the Atlantic, “Cities That Lost Amazon’s HQ2 Contest Can Still End Up Ahead.” Here’s an excerpt:

Oklahoma City is not the only place that’s won for losing. New York City was one of five finalists to host the 2012 Summer Olympics that ultimately went to London. But New York benefitted enormously from that disappointment. To prepare the city for the Olympics, local government proposed several major civic improvements that went forward anyway, including the redevelopment of the Far West Side of Manhattan. This required changes such as rezoning the area for high-rise development and construction of an extension of the 7-train.

Dan Doctoroff, who spearheaded New York’s Olympic bid and served as deputy mayor under Michael Bloomberg, wrote in his book Greater Than Ever, “I don’t think the Hudson yards rezoning, the subway extension, and all the other investment would have happened if the Olympic catalyst and its strict timetable…hadn’t existed.” Doctoroff’s team also focused attention on the East River waterfront, which helped catalyze development in Long Island City. Yes, Long Island City, where Amazon is now locating its New York HQ2. So in a sense there’s a connection between New York losing the 2012 Olympics and winning the HQ2 competition.

The pressures of an Olympics bid created the conditions under which far-sighted leaders could create and push through changes faster than would otherwise have been possible. And guess what? There’s already evidence that the just-concluded HQ2 competition had the same effect.

The process helped local leaders in Indianapolis, one of Amazon’s 20 finalist cities, accelerate changes in their approach to economic development. Michael Huber, CEO of the Greater Indianapolis Chamber of Commerce, told me that “Amazon’s process forced us to throw out the traditional rule book for attracting business investment and talent—traditionally a cost- and incentive-focused process. Their process forced us to think more creatively about human capital and the workforce of the future. We used the Amazon process to add a sense of urgency to the new tools and partnerships (workforce/talent, land use, transit) we are developing as a region.”

Click through to read the whole thing.

from Aaron M. Renn
https://www.urbanophile.com/2018/11/15/amazons-silver-lining-for-the-other-235-cities/

Nashville Gets 5,000 Job Amazon Operations HQ

Photo Credit: Rober Scoble, CC BY 2.0

As expected, Amazon has announced that New York City and Northern Virginia would be its two HQ2 winner sites. But also added was the twist that Nashville will be getting a 5,000 person operations HQ. From the Tennessean:

“This is the largest jobs announcement in the history of the state of Tennessee,” Gov. Bill Haslam said, adding that Amazon gave them the news a month ago. “This is a huge win.”

The announcement comes more than a year after Amazon said it was scoping cities for a second headquarters and received 238 bids for the designation. Amazon chose Northern Virginia and New York City for second headquarters sites, but the smaller investment marks a significant jobs gain for Nashville.

“We realized that it would make a lot of sense for us to have an Eastern United States regional hub for our operations business and Nashville just really impressed us in the HQ2 process,” said Amazon Senior Vice President Jay Carney. “It’s a city pointing toward the future. It made itself very appealing for investment. It’s a place where, if people don’t already live there, they are excited about moving there. That’s always an important issue for us.”

The Nashville jobs will include management and tech-focused jobs, including software developers, with earnings expected to average $150,000, Carney said. He said he expected Amazon to recruit locally and from outside of the area.

The new site, dubbed the Operations Center of Excellence, will be responsible for the company’s customer fulfillment, transportation, supply chain, and other similar activities.

That national pipeline of talent continues to pay dividends for Nashville. Though I think there are very serious questions about the city’s ability to scale its infrastructure to keep up with growth.

from Aaron M. Renn
https://www.urbanophile.com/2018/11/14/nashville-gets-5000-job-amazon-operations-hq/

Monrovia, Indiana, Idyll or Elegy?

Frederick Wiseman turned his documentary filmmaking lens to the Midwest in his new work Monrovia, Indiana. My review of the film is now online at City Journal. Here is an excerpt:

Wiseman spent ten weeks filming in this small Indiana town of about 1,500 people, creating a fair and insightful portrait of a section of the rural Midwest. He shows us quotidian aspects of life in Monrovia that are likely exotic to a typical big-city documentary-film audience: corn and hog farming, locals holding court at the town diner, a mattress-sale fundraiser for the local school, a farm-equipment auction, a Lion’s Club board meeting, and more. For urban audiences, the lives of service-class workers in the groceries and restaurants of their own cities, while differing in details, are likely just as foreign as the ones shown in Monrovia.

Most brilliantly, Wiseman captures the collision between Monrovia’s past and future. He shows how Monrovia, like so much of the Midwest, is dominated by a pervasive, smothering sense of nostalgia, which goes far beyond healthy community pride. In an early scene, a schoolteacher explains the town’s storied history of sports success. Legendary UCLA basketball coach John Wooden, winner of 10 NCAA championships, was born in Hall, about five miles away. Branch McCracken, a two-time NCAA championship-winning basketball coach at Indiana University, hailed from Monrovia proper; the high school named its gym in his honor. The teacher chronicles how, in the 1920s, Indiana was one of three major basketball hubs, and recounts the many tournaments won by local teams in that era. Afterwards, as if instructing the kids in their local culture, he notes how difficult it is to change any aspect of the school’s football field, because so many families either donated or have some personal tie to it.

Click through to read the whole thing.

 

 

from Aaron M. Renn
https://www.urbanophile.com/2018/11/13/monrovia-indiana-idyll-or-elegy/