Wicked Smart ECO-nomic Development Strategies: March 2011

Sunday, March 27, 2011

Uneven gains made on jobs | CapeCodOnline.com

Employers have added 1.3 million jobs nationwide from February 2010 through the end of last month with Texas and California leading the way. Michigan's economy also improved last month when unemployment rates dropped from 13.5 percent to 10.4 percent. However, much of this decline reflects a large drop in the state's workforce, of which many people are no longer counted since they have stopped looking for work. Overall, these statistics looks promising for the nation as a whole and for California and Michigan, which were some of the states hardest-hit during the "great recession".

Thursday, March 24, 2011

Behind census numbers

Glaeser's Op-Ed piece on the demographic change in Massachusetts via the 2010 U.S. Census Data was well-crafted: Although Massachusetts as a whole showed slow growth between 2000 and 2010 (3.1%), Boston and Cambridge grew more rapidly compared to the rest of the state based on the high demand to live there. He stated housing demand is based on an area's income, quality of life, and the supply of livable space. Glaeser insinuated that areas which haven't grown as rapidly (yet also show a high demand for growth) are caused by overly strict land-use regulations which limit housing supply (such as Middlesex County). His comment on select areas of the state enacting overly-strict land-use laws is causing a ruckus with local planners (Have you read the MassPlanners Listserve?).

"The shape of our state and the nation is now formed by the most parochial local land use policies that make it impossible for the new building that would allow the state to grow in the areas where people most want to live. We should rethink the local regulations that push growth to other states."

Next question... Cape Cod and the Berkshires have an "abundant" supply of housing (do they?) but lack a strong housing demand since Boston is the state's economic engine (with job growth) and the Cape and the Berkshires act as a vacation-land (which therefore doesn't lead to growth). I agree, to a point, but feel that the Cape no longer has an abundant supply of housing. Therefore, the Cape and Berkshires are lacking in demand based on jobs, which is a slightly different variation from the "income" category, while ranking high in quality of life and livable space.

Tuesday, March 22, 2011

Future tax revenue will finance downtown improvements

Is a Purchase Model the new TIF?

Quincy is using a new financial strategy to redevelop their downtown improvements called a purchase model. Rather than fund $227 million dollars upfront, these costs will initially be paid by a private developer and later paid back by using new tax revenues generated by the project. The overall cost of the redevelopment is $1.3 billion and will include a historic and cultural center adjacent to a four-acre park.

Are private TIFs the new financial strategy for redevelopment amid municipal spending cuts and reduced federal and state funding for redevelopment projects? Maybe, as municipalities and private developers face hardships in this great recession to keep development projects moving forward. Unfortunately, these projects seem to put more cash in the hands of developers and can further strap the municipality financially if the project doesn't get the returns it anticipates. Additionally, the increased value of the area in the form of increased tax revenues and such aren't going back into the municipal "pot" for things like schools and other infrastructure and services for the city. Although I don't know the details of the redevelopment plan and design, I support the municipality's risk of using a creative financial strategy for the funding to redevelopment a city with a lot of potential, Quincy Massachusetts.

Solar project would be region’s largest

The Town of Canton, Massachusetts will save municipal costs by building one of the largest solar-powered facilities in New England. The project is being built on the town's landfill and is expected to save the town at least several hundred thousand dollars per year. A lease agreement (through Southern Renewable Energy of Boston) and rebates from NSTAR (on electricity not used by the municipality) will add to the revenue of the town.

Monday, March 21, 2011

Mapping the Nation’s Well-Being

According to this study, Massachusetts residents polled are not very satisfied with their job environment, experience a good amount of stress during the day, and do not feel a lot of happiness during the day. However, Massachusetts residents reported having adequate money to spend on food and shelter. Which is better, being poor and happy or rich and miserable?