Category Uncategorized

Local Greenhouse Gas Rules Likely to Backfire

Next week the Cambridge City Council will consider a petition to require new or newly renovated buildings of 25,000 square feet or more to be net-zero emissions. Under the rule, any energy that buildings use beyond what they produce must be sourced from approved, renewable energy sources. While intended to reduce greenhouse gas emissions, the rule would have some easy to foresee side effects: Jeff Roberts, a land use and zoning project planner for the city, said the cost of developing what is being called “net zero” buildings could be passed on to tenants, and could drive away new development. “There’s always the possibility that this would create a shift–that the cost might cause development that would otherwise occur in Cambridge to occur in other communities that don’t have similar requirements, such as Boston or Somerville or suburban areas,” Roberts said. With this rule, Cambridge would follow in the path of other cities that have attempted to reduce greenhouse gas emissions at the local level. Santa Monica has been one of the municipalities leading the way on  attempts to reduce greenhouse gas emissions since 1994. The city has adopted its own standards for greenhouse gas reduction, but has made little progress toward its defined targets, today using 35% more electricity per household than the average California household does. While the environmental activists that support these local-level rules surely realize that greenhouse gases do not recognize political jurisdictions, local greenhouse gas emissions reductions in cities like Santa Monica and Cambridge miss the real opportunities to reduce reliance on fossil fuels. It’s unsurprising that very left-leaning cities have pioneered these types of rules, but in doing so, these cities are missing the real opportunities they have to reduce emissions. Santa Monica is one of the most walkable places in the Los Angeles area, offering […]

Urban-Rural Political Alliances Hurt Cities

While House Republicans have stripped food stamp benefits from the farm bill to get enough votes to pass the bill’s agricultural supports,  the Supplemental Nutrition Assistance Program may be added back into the bill in conference with the Senate. The farm bill get its strength because it aligns the interests of urban Democrats and rural Republicans in Congress, facilitating log-rolling where the majority of congressmen are willing to support the bill because it directly benefits their districts. While the food stamp program has in the past made up a large portion of the bill’s costs, with these these funds flowing primarily to urban residents, urbanists should be leery of the urban-rural alliance that facilitates continued support for the farm bill. Aside from the primary cost drivers including nutrition programs and farm supports, the bill also includes measures like rural broadband and rural utilities services loans designed to subsidize living in areas where providers do not find it profitable to provide services. Unlike SNAP benefits, which are available for rural and urban residents based on income, rural infrastructure support is allocated to locations rather than individuals. Providing subsidies based on location is hugely attractive to Congress because it allows members to provide concentrated benefits directly to their constituents. However, subsidizing individuals’ choices to live in areas where building infrastructure is inefficient limits economic growth potential. Cities provide better job opportunities and are centers of innovation, so policies that subsidize rural living don’t make sense. While the farm bill is a clear example of an urban-rural alliance that facilitates these subsidies, many programs similarly subsidize infrastructure in rural areas from USPS providing flat-rate delivery to the Essential Air Service program that subsidizes service to 163 airports that would otherwise not be profitable. Because all senators represent states with rural post offices and most […]

Detroit’s art is not the key to its revival

Detroit’s art assets have made news as Emergency Manager Kevyn Orr is evaluating the city’s assets for a potential bankruptcy filing. Belle Isle, where Rod Lockwood recently proposed a free city-state may be on the chopping block, but according to a Detroit Free Press poll, residents are most concerned about the city auctioning pieces from the Detroit Institute of the Arts’ collection. I’ve written previously about the downsides of publicly funding art from the perspective of free speech, but the Detroit case presents a new reason why cities are not the best keepers of artistic treasures. Pittsburgh’s Post-Gazette contrasts the Detroit Institute of Art’s situation with the benefits of a museum funded with an endowment: As usual, Andrew Carnegie knew what he was doing. The steel baron turned philanthropist put the City of Pittsburgh in charge of operating the library he gave it in 1895, but when he added an art museum to the Oakland facility just one year later, he kept it out of city hands. “The city is not to maintain [the art gallery and museum],” Carnegie said in his dedication address. “These are to be regarded as wise extravagances, for which public revenues should not be given, not as necessaries. These are such gifts as a citizen may fitly bestow upon a community and endow, so that it will cost the city nothing.” Museums and other cultural amenities  are a sign of a city’s success, not drivers of success itself. The correlation between culturally interesting cities and cities with strong economic opportunities is often mistakenly interpreted to demonstrate that if cities do more to build their cultural appeal from the top down, they will encourage job growth in the process. Rather, a productive and well-educated population both demand and supply these amenities. While an art museum may increase tourism on the margin, […]

Newest Offering from Fundrise Goes Live on Monday

On Monday, Fundrise will make their newest offering at 906 H Street NE in DC available to investors. Many real estate journalists have covered this innovative investment company’s crowdsourcing strategy, with Urban Turf naming Fundrise a top real estate trend of 2012. This development is the company’s second crowd-sourced project and their third property on H Street. Without special approval, publicly advertised offerings can only seek funding from accredited investors, but Fundrise has has gone through a cumbersome process through DC, Virginia, and federal securities regulators to permit any individual to invest in their newest offering with a $100 minimum investments. Because of the high regulatory hurdles standing in the way of marketing public offerings to a broad audience, Fundrise is currently the only group in the country doing so. Daniel Miller, Co-Founder of Fundrise, explained that he thinks crowdfunding has significant potential to improve incentives for focusing on the long run in development. From an urban development perspective, one benefit of crowdsourcing is that small companies do not face the same pressure to post quarterly profits that larger, publicly-traded firms do. Because real estate is a long-term investment that doesn’t always demonstrate profits on a timetable that’s attractive to Wall Street investors, crowdsourcing provides an opportunity for development financing that will not have a short-term bias. The difficulty in getting legal approval for small investors, however, demonstrates the regulatory bias in favor of large firms. Daniel said: When you’re invested in a broader portfolio like a REIT that owns 400 or 500 malls, it’s very difficult to measure success because there are only financial indicators. But if you’re invested in a single property — the tenant is open, he’s paying rent, he has good sales — it’s much easier to measure success. There’s transparency in reporting. A lot of these big companies […]

Meetup this Saturday

This weekend Anthony Ling who writes the blog Rendering Freedom (and has previously written here) will be in DC. Stephen Smith will also be in town, and we’re planning a meetup on Saturday. Anthony is an architect in São Paolo. He writes about architecture, economics, and urbanism, and I’m excited to learn more about his experiences studying and working in Brazil. If you’re in the DC area, I hope that you can join us. Details: Saturday, December 1st at 1:00 p.m. Burger Tap and Shake (at Washington Circle in Foggy Bottom) Please email me at emilybwashington@gmail.com if you have any questions.

Irrelevant real estate trends

Earlier this week Wendell Cox wrote a piece at New Geography arguing that projections for increasing demand for multifamily housing relative to single family homes are incorrect. He was criticizing a study by Arthur Nelson that predicts increased demand for multifamily housing relative to single-family housing in California between 2010 and 2035. So far, Cox points out that this hypothesis is not being fulfilled; between 2000 and 2008 slightly over half of newly occupied housing units were single-family homes on conventional lots (larger than 1/8 acre), not indicative of a shift in preferences toward multifamily housing. Cox emphasizes that his data is based on revealed preferences rather than forecasts or surveys which may indicate a false preference for denser housing. However, he does not acknowledge that these preferences he cites are not revealed in a free market. The mortgage interest tax deduction biases home buyers toward larger homes, the complex entitlement process for dense infill development restricts supply of denser housing, and the the zoning and parking requirements that regulate development all shape revealed consumer decisions. Both Cox and Nelson seem to base their views of consumer preferences heavily on introspection, assuming that over time more Americans will come to share their preference for suburban or urban living respectively. And they both take the same approach of looking at the real estate trends aggregated across the entire state. This is an interesting question for academics, but not a particularly relevant area for real estate markets. Real estate is local, and state trends are not likely to apply to many cities and neighborhoods. The average home sold in California went for $309,000 at $195 per square foot last month. However this statistic is meaningless for West Hollywood residents where the  average sale price was $378 per square foot. It’s equally meaningless […]

Campaign season is over links

Stephen had great twitter coverage of urbanist election issues last night, but here are a few more links to significant outcomes: 1. Washington state and my home state of Colorado voted to legalize marijuana possession, private use, and in Colorado limited production. Drug policy liberalization is a huge win for cities, as arrest rates among users are higher in urban areas. However, given the current administration’s intolerance for medical marijuana dispensaries that are legal under state laws, I see little reason to hope that the feds won’t prosecute drug users  who are in violation of federal but not state laws. 2. In Alexandria, VA voters reelected democratic Mayor William Euille and elected an all democratic city council. This has ramifications for the city’s waterfront redevelopment plan; opponents of increased development have sued, and the case will be heard by the state supreme court this spring. Opponents allege that the zoning change required supermajority support from the city council, but the new democratic plurality makes supermajority support likely. 3. In Escondido, CA voters passed upzoning with Proposition N which will allow increased downtown housing development as well as allow more commercial and industrial development. The city’s conservative leadership supported Proposition N for economic development. 4. Kirk Caldwell was elected mayor of Honolulu. The opposing candidate Ben Cayetano ran on an anti-rail platform. Rail in Oahu is already under construction, but a lawsuit has stalled progress. The elevated 20-mile HART project has a projected $5.2 billion price tag, $1.55 billion of which local officials say will come from the federal government.  I don’t know enough about the project to have an opinion on whether or not it’s a good idea. 5. Virginia voters said “yes” on Question 1, requiring authorities to demonstrate public use to employ eminent domain (as opposed to the Kelo public benefit standard). 6. I won my […]

A message to journalists and academics from George Haikalis

I spoke to George Haikalis (trust me, he’s a lot smarter than his HTML looks), a regional planner and former NYCTA official, about the high cost of New York City transit. He had a message to the press and academia: Part of the problem is that we don’t really have a very strong independent technical press, or independent academic community that really understands anything about railroads. We’re pretty much at the mercy of the big engineering firms, and those firms pretty much do the bidding of key bureaucrats, who have a central theme: keep this within their family. “Their family,” or course, being the agency they work for. In the case of East Side Access and the canceled ARC project, which is what we were discussion, this means (/meant) LIRR and NJ Transit getting their own unspeakably expensive deep caverns just so they wouldn’t have to share any of the existing abundant station platforms with other regional railroads.

A Moral Case for More Immigration

This is a post outside of the typical urbanist issues we write about here, but one that I think is very important to cities. At Forbes, Adam Ozimek writes that economics bloggers are failing to make the case for the importance of permitting increased high-skilled immigration: I think it is professional malpractice that economists see trillions of dollars in pareto improvements going to waste and don’t scream about it from the rooftops daily because it’s not as fun to argue about. I don’t think the public has a good sense of the extent to which more high-skilled immigration would help us, and part of the problem is precisely that we don’t scream this from the rooftops with the regularity and fervor it deserves.  As urbanization is a process of migration, the issue should be of prime concern for urbanists as well as economists. Many of the world’s greatest cities were built through immigration, and the variety of cultures in cities creating diverse food, arts, and events are an important factor in making cities interesting places to live. While I’ve been broadly in favor of more immigration as long as I can remember, through a few experiences I’ve become much more passionate about broadly increasing the number of immigrants allowed to move into the United States. High-skilled immigration is an economic no-brainer, but I think from a humanitarian perspective we should be allowing more immigration from all backgrounds. I spent a semester in college in Guadalajara, Mexico. There I worked in a school for niños trabajadores, children who attended school for a few hours a day and also worked in jobs like selling flowers or gum.  The non-profit school was run by some amazing teachers, but it was difficult knowing that the prospects for these students in school and outside of school were difficult. A few […]

David Gunn on Amtrak’s $151bn NEC plan and how he rebuilt the Harrisburg line

First order of business: I wrote two articles for Bloomberg View (the opinion counterpart to Bloomberg News) on the high cost of US transit – one on private-sector gouging, and one on public-sector gouging. Secondly, I’ve been talking to former Amtrak president David Gunn a lot recently – at first for the labor piece I just linked to, but the conversation has veered into other topics. (If you have any burning questions you’d like answered, leave them in the comments.) The other day I got around to asking him what he thought about Amtrak’s $151 billion proposal for the Northeast Corridor and the $7 billion Union Station plan. His verdict? “It’s all a fuckin’ pipe dream.” His response was basically that big, flashy plans never work out, and that the only way to get things done at Amtrak is to do them under the radar. He used the rebuilding Amtrak’s Harrisburg line from Philadelphia to Harrisburg as an example. The Harrisburg line (the eastern half of Pennsylvania’s original Main Line) is the most important stretch of tracks that Amtrak actually owns after the Northeast Corridor, so I think there’s a lot to be learned  Corridor itself. Here is my transcription of what he said about rebuilding the Harrisburg line. Most parts are verbatim, but there are a few sentences that I wrote from memory, and a few things that I probably missed. The Harrisburg line was a wreck. From Paoli on in [towards Philadelphia – i.e., SEPTA’s most important regional rail line], it was a bad 60 mph railroad, and from Paoli to Harrisburg it was a bad 70-80 mph railroad. The signals were ancient, the track was rough, trees were brushing up against the cars, weeds were growing on the ballast. I rode the line with a fellow who’s got a private car, and we […]