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American Society for Public Administration Series in Public Administration and Public Policy LocaL Economic DEvELopmEnt anD thE EnvironmEnt finding Common ground SuSan M. Opp Jeffery L. OSgOOd, Jr. LOCAL ECONOMIC DEVELOPMENT AND THE ENVIRONMENT Finding Common Ground American Society for Public Administration American Society for Public Administration Book Series on Public Administration & Public Policy David H. Rosenbloom, Ph.D. Editor-in-Chief Mission: Throughout its history, ASPA has sought to be true to its founding principles of promoting scholarship and professionalism within the public service. The ASPA Book Series on Public Administration and Public Policy publishes books that increase national and international interest for public administration and which discuss practical or cutting edge topics in engaging ways of interest to practitioners, policy makers, and those concerned with bringing scholarship to the practice of public administration. Recent PuBlicAtionS local economic Development and the environment: Finding common Ground by Susan M. Opp and Jeffery L. Osgood, Jr. case Studies in Disaster Response and emergency Management by Nicolas A. Valcik and Paul E. Tracy Debating Public Administration: Management challenges, choices, and opportunities by Robert F. Durant and Jennifer R.S. Durant Effective Non-Profit Management: context, concepts, and competencies by Shamima Ahmed environmental Decision-Making in context: A toolbox by Chad J. McGuire Government Performance and Results: An evaluation of GPRA’s First Decade by Jerry Ellig, Maurice McTigue, and Henry Wray American Society for Public Administration Series in Public Administration and Public Policy LOCAL ECONOMIC DEVELOPMENT AND THE ENVIRONMENT Finding Common Ground SUSAN M. OPP JEFFERY L. OSGOOD, JR. CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2013 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20121126 International Standard Book Number-13: 978-1-4398-8009-8 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. 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Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Dedicated to Drs. Peter B. Meyer and Hank V. Savitch For being the inspiration for all that we have achieved in our scholarly pursuits. Thank you. Contents Preface.......................................................................................................... xiii About the Authors........................................................................................xvii Contributors..................................................................................................xix Acknowledgments...................................................................................... xxiii Section I  SETTING THE CONTEXT: THEORIES AND CONCEPTS OF ECONOMIC DEVELOPMENT AND SUSTAINABILITY  1 Local Economic Development and Environmental Protection: The Intersection.......................................................................................3 Suburbanization, Economic Decline, and Local Economic Development.......5 Sprawl..................................................................................................5 Local Economic Development......................................................................7 History of Local Economic Development Practice..............................8 Wave One Strategies for Economic Development.......................9 Wave Two Strategies for Economic Development.....................10 Wave Three Strategies for Economic Development...................10 Sustainability and Sustainable Economic Development..............................11 Sustainable Cities..............................................................................11 Conclusion..................................................................................................12 References...................................................................................................13  2 Sustainability and the Built Environment............................................17 Revitalization and Redevelopment: Remedial Efforts.................................18 How Did Cities Evolve?.....................................................................19 Moving Forward in American Cities: Revitalization..........................20 Greenfields, Grayfields, Brownfields, and Infill........................20 Gentrification...........................................................................21 Development and Grayfields....................................................23 vii viii  ◾  Contents Development and Brownfields..................................................25 Anticipatory Development..........................................................................27 Mixed-Use Development...................................................................27 Affordable Housing...........................................................................28 Growth Boundaries...........................................................................28 Low-Impact Development.................................................................28 Conclusions and Concepts in Action: New Hanover County, North Carolina...........................................................................................29 References...................................................................................................35  3 Energy, the Environment, and Economics............................................37 Current State of Energy in the United States..............................................38 Nonrenewable Energy Sources...........................................................39 Petroleum Issues.......................................................................39 Natural Gas Issues....................................................................41 Coal Issues............................................................................... 42 Nuclear Issues.......................................................................... 44 Global Climate Change............................................................45 Renewable Energy Sources: Clean Energy.........................................45 Biomass/Biofuels..................................................................... 46 Water/Hydroelectric................................................................ 46 Geothermal..............................................................................47 Wind........................................................................................47 Solar.........................................................................................47 The Intersection of Economic Development and Energy: Using Clean Energy for Local Economic Development...................................................48 Manufacturing..................................................................................48 Grayfields, Brownfields, and Clean Energy Manufacturing........48 Incentives...........................................................................................50 Conclusions and Concepts in Action: Portland, Oregon.............................50 References...................................................................................................62  4 Green Transportation: An Amenity Approach......................................67 Green/Sustainable Transportation..............................................................68 Existing Infrastructure Techniques....................................................69 Public Bus................................................................................70 Light Rail.................................................................................71 Walking and Biking.................................................................72 Efficient Vehicles......................................................................75 Conclusions and the Concepts in Action: Tucson, Arizona.........................76 References.................................................................................................. 90 Contents  ◾  ix Section II  IMPLEMENTATION: THE SUSTAINABLE ECONOMIC DEVELOPMENT TOOLKIT  5 The Greening of Public Administration................................................95 History of the Environmental Movement...................................................96 Regulation for Environmental Protection..........................................96 Efficiency-Based Reform....................................................................97 Market-Based Policies...............................................................98 Effects of Market-Based Policies...............................................99 Focus on Sustainability....................................................................100 Sustainability and Public Administration........................................101 Sustainable Communities: Greening of Local Governments.....................102 Local Government Sustainability Toolkit........................................103 Direct Action..........................................................................103 Indirect Action.......................................................................103 Green Procurement and Human Resource Management.................105 Green Procurement................................................................105 Green Human Resource Management...................................106 Indicators of Sustainability..............................................................108 Santa Monica’s Sustainability Plan.........................................108 Types of Indicators.................................................................108 Resource Conservation...........................................................109 Economic Development.........................................................109 The Importance of Indicators................................................. 110 Conclusions and Concepts in Action: San Antonio, Texas, and Philadelphia, Pennsylvania........................................................................ 110 References.................................................................................................124  6 Public–Private Partnerships for Sustainable Economic Development.......................................................................................129 Characteristics of Public–Private Partnerships..........................................130 Types of Public–Private Partnerships........................................................131 Degree of Shared Risk and Responsibility.......................................131 Twelve Models of Public–Private Partnerships.................................132 Building Agreements..............................................................132 Contract Agreements..............................................................133 Leasing Agreements................................................................133 Advantages, Disadvantages, and Common Pitfalls...................................134 Advantages of PPPs..........................................................................134 Disadvantages of PPPs.....................................................................135 Common Pitfalls of PPPs.................................................................136 Practical Issues in PPP Formation.............................................................137 Understanding the Regulatory Environment...................................138 x  ◾  Contents Defining Project Goals and Meeting the Public Interest..................139 Determining Responsibility.............................................................139 Sustainability and Public–Private Partnerships......................................... 141 Wastewater Treatment in Santa Paula, California............................ 141 Heating and Cooling Improvement in Nashville, Tennessee............142 Conclusions and Concepts in Action: Cookeville, Tennessee....................142 References.................................................................................................150  7 University–Community Partnerships for Sustainable Economic Development.......................................................................................153 History of University–Community Partnerships......................................154 Establishing University–Community Partnerships................................... 155 Identifying the Partners...................................................................156 Stages of the Process........................................................................ 157 Engagement............................................................................ 157 Deliberation...........................................................................160 Implementation...................................................................... 161 Challenges to University–Community Partnerships.................................162 Communication..............................................................................162 Relationship Management...............................................................163 Capacity Planning...........................................................................163 Federal Efforts at University–Community Partnerships...........................163 Partnerships for Sustainability and Economic Development.....................164 SmartStreet, Grand Rapids, Michigan.............................................165 Sustainable City Year, University of Oregon.................................... 165 Conclusions and Concepts in Action: University of Illinois at UrbanaChampaign’s Smart Energy Design Assistance Center..............................166 References.................................................................................................177  8 Seeking Economic Development through Eminent Domain, Environmental Remediation, and Redevelopment..............................181 The Legal Environment of Eminent Domain............................................182 Eminent Domain Interpreted..........................................................182 Kelo v. City of New London..............................................................183 State-Level Eminent Domain Legislation after Kelo...............185 Municipal Ordinances and Eminent Domain....................... 200 Just Compensation: The Other Constitutional Requirement................... 200 Valuation of Contaminated Properties.............................................201 Eminent Domain, Economic Development, and Environmental Remediation.............................................................................................203 Conclusions and Concepts in Action: San Diego, California................... 204 References.................................................................................................216 Contents  ◾  xi  9 Tax Increment Financing for Sustainable Economic Development....219 What Is Tax Increment Financing?.......................................................... 220 Key Questions to Consider When Exploring TIF.....................................221 The Importance of Analysis.............................................................223 Private Sector Considerations..........................................................223 Political Considerations...................................................................224 Tax Increment Financing Laws.................................................................224 State Restrictions.............................................................................224 Statutory Conditions.......................................................................225 “But For” Requirements........................................................225 Public Hearings and Cost–Benefit Analysis........................... 226 Blight.................................................................................... 226 Other Requirements........................................................................227 Project-Specific versus District-Wide TIF.................................................239 Project-Specific TIF.........................................................................239 District-Wide TIF............................................................................239 Common Steps in TIF Creation..............................................................240 General TIF Creation Steps.............................................................241 TIF Creation in Illinois...................................................................242 Tax Increment Financing and Sustainable Development..........................243 Atlantic Station, Atlanta, Georgia....................................................243 Buzz Westfall Plaza, Jennings, Missouri......................................... 244 Lessons Learned.............................................................................. 244 Conclusions and Concepts in Action: Fort Worth, Texas........................ 244 References.................................................................................................255  10 Grant Administration and Project Analysis........................................259 Intergovernmental Grants to Help Pay for Sustainable Economic Development............................................................................................259 Locating and Applying for Federal Government Grants................. 260 Applying for a Federal Grant...........................................................262 State to Local Government Grants..................................................265 Rules and Regulations for the Newly Awarded City........................265 Performance Tracking and Reports: Program Evaluation and Fiscal Impact Analysis....................................................................................... 266 Performance Reports and Information Gathering........................... 266 Fiscal Impact Analysis.................................................................... 268 FIA in the City of Upper Arlington, Ohio.......................................270 Conclusion................................................................................................271 References.................................................................................................271 xii  ◾  Contents  11 Federal and State Resources for Sustainable Economic Development Efforts............................................................................273 Federal and State Environmental Remediation/Redevelopment Programs...................................................................................................273 RCRA and CERCLA......................................................................274 RCRA....................................................................................274 CERCLA................................................................................275 RCRA, Superfund, and Brownfields......................................277 Federal and State Programs for Remediation and Brownfield Redevelopment................................................................................278 State Remediation Programs...................................................278 Green Technology and Energy Efficiency................................................ 280 State Energy Efficient Programs.......................................................281 Conclusion................................................................................................282 Note..........................................................................................................282 References.................................................................................................283  12 Finding Common Ground: Local Economic Development and the Environment........................................................................................285 Economic Development versus Economic Growth.................................. 286 Institutions and Sustainable Economic Development...............................287 Experiences with Economic Development and Sustainability...................288 Strategies for Sustainable Economic Development....................................289 Key Challenges and the Future.................................................................291 References.................................................................................................291 Appendix......................................................................................................293 Preface Setting the Context: Theories and Concepts of Economic Development and Sustainability Public officials, nonprofit administrators, and policymakers are often presented with arguments that sustainability and economic development are opposing goals. This, however, need not to be the case. Section I of this book provides an introduction to the academic and practical intersection of the environment and local economic development. Chapters in Section I address questions, such as: ◾◾ What exactly is sustainable economic development? Is it something that local administrators can engage in? ◾◾ How can development be pursued while worrying about protecting the natural environment? ◾◾ How does energy and transportation relate to sustainability and economic development? ◾◾ How have some local governments engaged in these aspects of sustainable economic development? Throughout Section I (Chapter 1 to Chapter 4), real-world examples are used to assist the interested local administrator with understanding how these concepts relate in the real world. Wilmington, North Carolina’s, experience with low-impact development provides an excellent example of the cost-savings potential of one type of sustainability initiative: low-impact development. Portland, Oregon, provides an in-depth look at how clean energy can be integrated into a larger community-wide economic development plan. Tucson, Arizona, illustrates sustainable transportation initiatives that spur economic activity. At the end of this section, readers will have a broader understanding of sustainable economic development from an academic and comprehensive perspective. xiii xiv  ◾  Preface Implementation: The Sustainable Economic Development Toolkit While Section I of this book provided a broader, more academic, look at sustainability and economic development, Section II moves to a more practitioner-oriented examination of the tools available for pursuing sustainable economic development. Through these chapters, it becomes apparent that the current economic toolkit need only be slightly tweaked and it too can help to find the common ground between sustainability and economic development. Starting with a review of how public administration and sustainability have come to embody similar ideals and concluding with a review of the financial and technical aspects of implementing sustainable economic development, Chapter 5 through Chapter 12 cover a wide variety of issues related to implementation and tools for sustainable economic development. While certainly not an all-exhaustive listing, the chapters in this section offer concrete explanation and illustration of many of the most common tools used in economic development, but in such a way that they are now elevating the principles of sustainability. Questions this section of the book addresses include: ◾◾ How has the discipline and practice of Public Administration addressed sustainability? ◾◾ What is a public–private partnership? How can it help me? ◾◾ Can my local college or university help in sustainable economic development efforts? ◾◾ Eminent domain: What do I need to know? How is it related to blight and contamination? What did Kelo v. New London mean for a local government? ◾◾ Tax increment financing: Can I use it in my project? Several important examples are used throughout the chapters in this section to help provide illustration of concepts. Cookeville, Tennessee, offers insights into the role that public–private partnerships can play in sustainable economic development. The experience of the University of Illinois at Urbana-Champaign and the Smart Energy Design Assistance Center offers lessons to cities on effective town-gown partnerships. Learning more about San Diego’s experience with their ballpark district redevelopment provides important insights into eminent domain. Finally, the complex Trinity River project in Fort Worth, Texas, illustrates the complexity to some redevelopment projects that utilize tax increment financing, eminent domain, and other tools simultaneously to achieve successful development. Sustainable economic development will often require outside financial and technical support to be successful. The two penultimate chapters in Section II provide readers with a look at the variety of resources available and information on how to best obtain these resources. Important information on grant administration, Preface  ◾  xv funding availability, and grant applications is provided in Chapter 10. Chapter 11 provides readers with an overview of the federal and state resources available for sustainable economic development efforts. Questions addressed in these chapters include: ◾◾ ◾◾ ◾◾ ◾◾ What kinds of grants exist? Where do I look? What does a beginner need to know about finding and applying for a grant? How are regulations and grants connected? What programs exist to assist with remediation and redevelopment efforts directed at contaminated properties? Where do I start? ◾◾ What laws do I need to be concerned with in my remediation/redevelopment efforts? ◾◾ What resources exist for energy efficiency projects to help my community save money while being more resource efficient? About the Authors Susan M. Opp, PhD, is currently an assistant professor of Political Science at Colorado State University, Fort Collins. Dr. Opp’s professional experience cuts across both the academic and practitioner worlds. In her various professional roles, she has served as the director of a NASPAA (National Association of Schools of Public Affairs and Administration)-accredited MPA (Master of Public Administration) program, graduate internship director, faculty steering committee member for the Clean Energy Supercluster at Colorado State University, research associate for the Environmental Finance Center at the University of Louisville, and deputy director of the Center for Public Service at Texas Tech University (Lubbock). Her research has appeared in a number of academic and professional outlets including Economic Development Quarterly, Environmental Practice, International Review of Public Administration, and ICMA InFocus, to name a few. She is also the co-editor of Local Sustainable Urban Development in a Globalized World (Ashgate, 2008). At Colorado State University, Dr. Opp teaches graduate seminars in Public Policy Analysis and Scope and Methods of Political Science. xvii xviii  ◾  About the Authors Jeffery L. Osgood, Jr., PhD, has extensive experience working with state and local governments through a variety of positions over the past 10 years. His areas of expertise include local economic development and program evaluation. He has previously worked at the Center for Local Governments at Western Kentucky University (Bowling Green), and currently serves as director of the Center for Social & Economic Policy Research at West Chester University of Pennsylvania. In his time with the Center for Local Governments, Dr. Osgood worked on projects ranging from wage and benefit studies to pay classification analyses. Currently, as director, Dr. Osgood has been involved with a number of studies ranging from health needs analyses to program evaluations for both public and private organizations, as well as nonprofit foundations. He holds a doctorate in Urban and Public Affairs and a master’s of public administration (MPA). As a faculty member at West Chester University in the Public Administration Graduate Program, Dr. Osgood teaches courses in Research Methods, Public Sector Organization Theory and Behavior, and Foundations of Public Administration. His research has been published in the International Journal of Urban & Regional Research, Journal of Political Science Education, Economic Development Quarterly, Public Personnel Management, and Government & Opposition.
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