Has The Urban Planning Profession Declined? (Like Planners Claim)

As readers know, Market Urbanism has for several years had a strong homepage and Twitter presence. And thanks to Adam, it is getting a stronger Facebook one, both on MU’s official Facebook page, and its chat group. If you enjoy reading substantive things, I recommend following both, but especially the chat group, which is available for anyone to join.

Many of its updates feature links from around the web posted by MU readers, informing us about the world’s biggest urban issues, with everything from mainstream news clips, to esoteric working papers and book chapter pdf’s. We would love to have more of you join and begin posting! This doesn’t mean the group is open to trolls; we don’t want to hear your grammatically-tortured vitriol. But we do like potential skeptics who ask questions and start debates, as they have received strong responses in the past.

All that said, here are some of my recent favorite links shared by the group, and let’s raise a Friday night glass for the many more to come.

1. Robert Moses’ 23-page response to The Power Broker. Like the man himself, the letter was angry, rambling, irrational, and condescending, yet had moments of rhetorical flash:

The current fiction is that any overnight ersatz bagel and lox boardwalk merchant, any down to earth commentator or barfly, any busy housewife who gets her expertise from newspapers, television, radio and telephone, is ipso facto endowed to plan in detail a huge metropolitan arterial complex good for a century.

I wonder which “busy housewife” he could have been referring to…

2. Richard Sennett comes from a school of sociological thinking–alongside academics like Saskia Sassen and Mike Davis–who criticize global capitalism and urbanization. But here is his rather balanced review in 1970 of Jane Jacobs’ The Economy Of Cities (you can access the review through a Facebook post via Anthony Ling).

3. This is an old Economist article that aims to define “rule of law.” It cites a study arguing that “a country’s income per head rises by roughly 300% if it improves its governance by one standard deviation,” with the efficiency and reasoning ability of its legal system playing a huge factor.

4. Here’s yet another article, this time from PlacesJournal, claiming that the growth of conservative economic theory in the 1940s, followed by the failures of 1950s urban renewal, led to the death of central planning and rise of “market urbanism” (his usage) in America. “By the ’70s and ’80s,” writes architect Anthony Fontenot, “the discipline of planning had come under such sustained attack that in many design schools the planning programs were jettisoned altogether and relocated — banished — to schools of policy and administration.”

I read this charge about the decline of American city planning frequently from architecture/planning writers. But can anyone please tell me what the hell they are talking about? The fact is that land use regulations–the most essential planning tool– have grown substantially in America in the last century, and even more so in recent decades. Zoning has transformed from merely separating incompatible uses to policing the design, coloration, placement, shape, density and “form” of buildings. Lots that years ago would have been subdivided in suburbia, or built upwards in cities, are now, respectively, preserved. Practically every city of minor significance has a planning department (not to mention an urban development corporation and design review board). Whereas America’s great legacy cities–New York, San Francisco, DC, Chicago, Boston, Philadelphia–adopted their built pattern during the relatively laissez faire industrial era, and thus in a manner that was dense, walkable, and attractive, land use controls often prevent them from furthering these goals today–and prevent newer cities from mirroring the old ones.

I thus can’t agree with Fontenot and similar-thinking architects and planners. Their profession has not declined in the U.S.; it has metastasized, only to inhibit many of the outcomes that they seem to want. Market Urbanism, meanwhile, is still an ideology confined to the internet, and not even close to being practiced today in any major U.S. city.

Travel Update: Miami Is Denser Than When I Left It

Miami, FL

I’ve been busy this week writing, but still carved out time to walk Miami. The first thing that hit me was how much denser it got since I last visited in 2011. The downtown, once caked in human waste, is only halfway like this now; a few square blocks of cafes and bars have emerged just off the waterfront. New condos in nearby Brickell have turned it into a legitimate 24/7 neighborhood, with unique cultural status as a playground for young bankers. And just north, Wynwood–Miami’s arts neighborhood–is making strides.

My observations are confirmed by the data. From 2010-2013, the city grew by 20,000 (or 5%) and there has been similar growth in key adjacent suburbs like South Beach, Hialeah, and Coral Gables (where I’m staying). Since that visit, Miami’s Walk Score went from the nation’s 8th- to 5th- best, behind only New York, SF, Boston, and Philly–and ahead of Chicago!

But as MU reader Chris Harlan noted, the city hasn’t built the pedestrian infrastructure to keep pace. Added density always brings more of two traditionally conflicting uses: cars and pedestrians. If traffic engineering is not changed to encourage their graceful interaction, then cities will have public safety disasters. And this has happened in Miami, which is the nation’s 4th most dangerous city for pedestrians (trailing only the other 3 major ones in Florida). Walking around, it wasn’t hard to see why: people here drive aggressively, encouraged by wide roads, long blocks, and a lack of side-street parking to encourage slower speeds. Long blocks mean fewer cross-walks, and because waits at intersections take forever, many people choose to cut across mid-block, with cars speeding by in both directions. I found myself behaving the same way; after waiting long enough for things to clear, I would literally just sprint across busy roadways. But those more accustomed would mozy out halfway and wait at the yellow stripe–with dozens of cars going past in each direction–until the other half cleared. It seemed like practical suicide, but is a common form of jaywalking here. Solving this would be as simple as building medians, but there are precious little of these in Miami.

Now for the links:

1. I wrote 4 articles this week for Forbes: on the private gift that will fund another iconic park in Lower Manhattan; on how beach towns cope in the slow months; on Newark’s idiotic idea to fund vertical farming; and on Los Angeles’ government-manufactured housing crisis.

2. For brevity’s sake, I’ll save this subject for next week, but would like to know: is there a Market Urbanist position for how governments should invest the money in their employee pension systems? Although I haven’t studied the issue, it seems that having government-run management boards invites disaster, since they have less incentive to seek high returns (and often don’t, falling well under their predicted 7-8% returns, thus leading to under-funded systems). I’ve already heard of the phenomenon of “social divestment,” in which boards steer money away from companies that the left finds offensive, like gun and oil manufacturers. As Governing Magazine finance writer Liz Farmer has noted, this can lead to under-performance or even huge losses. Is the answer to privatize city governments’ asset management? Anyone with expertise on this issue, feel free to weigh in…

How Hong Kong Pulls Off Transit Oriented Development

Integrating rail and property development is the cornerstone of the MTR’s success. In the U.S., coordination between transit authorities and developers tends to be mediocre at best. In Hong Kong, however, the MTR is both the transit authority as well as the property owner, and this makes all the difference.

Coordination Problem

Most attempts at transit-oriented development in the U.S. involve multi-party negotiations. The agency responsible for the transportation system haggles with different developers interested in undertaking projects along the line. Instead of implementing a unified plan, the transit agency has to negotiate specific agreements with each developer. And, because the priorities of the transit agency and the developers are never perfectly aligned, development agreements become subject to second-best compromises. Further, any disputes that arise once significant capital has been committed are costly to resolve.

This arrangement makes leveraging land values difficult as well. Developers frequently get tax breaks as an incentive to undertake projects. Whether abatements on property tax or straight-forward rate reductions, tax incentives typically preclude the use of land values to help fund transit. And, even without special incentives, major property owners who stand to benefit from proximity to a transit system have every reason to resist tax increases of any kind if there’s a chance of free-riding.

Kowloon_Station

The MTR, on the other hand, uses the integrated rail-property development  approach which combines the two roles of landlord and transit developer. The MTR owns the right-of-way as well as the surrounding properties. This removes the necessity of extended negotiations, having to settle for second best solutions, and the potential downside of disagreements partway through a project.

By combining the functions of landlord and transit developer, the MTR is also able to internalize land values. The rail line drives up the value of the MTR’s properties and that value covers the capital costs of the MTR’s rail lines.

Coase On Mass Trasnit

In 1937, the economist Ronald Coase asked why, if market exchange is such a good way to allocate resources, do firms even exist?

The short answer? Transaction costs.

Participating in a market comes with a price, and in some instances, the cost of participation is more than it’s worth. When transaction costs are too high, firms avoid them by internalizing specific functions and allocating resources at the discretion of management. This is not unlike the way in which socialist command economies deployed resources, albeit on a much smaller scale, and within an organization that’s actually responsive to external price information.

In many industries, falling transaction costs have brought about a wave of decentralization, supplanting the old paradigm of Fordist vertical integration. Younger companies now specialize in a narrower range of core competencies and outsource the rest. Apple, for example, is really a design firm that uses a global network of manufacturing and logistics partners to get its products into consumer hands.

In the case of transit development, however, transaction costs remain high. Technological innovation hasn’t made construction much less capital intensive or shortened time horizons for investment. This means that the costs of coordinating transit and property development mentioned above have remained persistent. What the integrated rail-property development model suggests in theory, and the MTR demonstrates in practice, is that a little centralization could bypass these costs entirely. To paraphrase Coase, there’s a price to pay for using prices; and in the case of transit development, that price may still be far too high.

Part 2 of 2 covering the policies and institutions behind mass transit in Hong Kong

Why No One Drives to Work in Hong Kong

Need to get 4 million people to the office every day? Hong Kong has you covered.

The Mass Transit Railway (MTR) is a rail system in the city of Hong Kong, currently managed by the Mass Transit Railway Corporation Limited (MTRL). The system opened in 1979 and now operates over 135 miles of track as well as more than 152 stations in Hong Kong. The average trip costs somewhere between .50 cents and $3 USD, and the system makes back 186% of its operational costs on fares alone.

Hong Kong Metro

Much of the system’s success can be attributed to urban density. Denser development means people live, work, and play in smaller geographic areas, meaning that more people are travelling between a fewer number of points. This is a huge plus for a fixed-route system like a railway. The MTR, however, hasn’t been a passive beneficiary of its environment.

The MTR owns real estate around each station in the system and integrates rail and property planning so that the development of one supports the development of the other.

Construction around each MTR station is incredibly dense, so it can put as many potential riders as close to a station as possible. Over 41% of the population in Hong Kong (2.78 million people) lives within a half-mile of a station. Additionally, the company’s real estate strategy emphasizes walkability; some residents of MTR owned properties can walk from their homes to a station entrance without ever even going outdoors. Clustering potential riders around each station–and making sure passengers have an easy time getting there–helps support high levels of ridership.

While fares cover the costs of operations, it’s really property development that pays for maintenance and expansion. The rail line, in turn, increases the property values of parcels adjacent to each station. This augments the land rents which are siphoned off to cover capital costs.

Ultimately, building effective mass transit is all about embedding the system within a friendly urban environment. High-density, mixed-use development is a must, but so is the ability to leverage land values as a means to finance capital investment and outlays.

Part 1 of 2 covering the policies and institutions behind mass transit in Hong Kong