ADMINISTERING

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ADMINISTERING

• David Levinson,

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• These problemsfiscal imbalance, traffic
  congestion, air pollution, the movement of jobs
  away from minority groupsare susceptible to
  rather precise formulation and study alternative
  ways of coping with them can be conceived and
  evaluated with a certain rigor the obstacles to
  remedial action are primarily political (and to a
  certain degree economic)what is most important,
  something can be done.
• -- James Q. Wilson (1970)

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After all

• How many homebuyers would be interested in cheap
  houses without roads, water, sewers, schools,
  parks and other urban amenities?

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What is growth management?

• Growth management is about affordable housingbut
  it is also about environmental protection,
  efficient provision of infrastructure,
  coordinated patterns of land use and
  transportation, adequate revenues to finance
  development needs, and healthy preservation of
  open space.
• It is about doing each of the above in accordance
  with goals that the public has chosen.
• Close and well coordinated actions between land
  use control (and planning) and capital
  investment.
• Distinguished from more traditional plans by
  their intent and scope rather than by the
  implementing techniques they use.

Ultimately, growth management is about regulating
the Amount, timing, location, character of
development
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Waves of growth management

• concern over how much growth would be allowed,
• where and when growth would be permitted, and who
  would pay for it,
• what kind of growth is allowed or encouraged.

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Growth ManagementApproaches Levels

• Regulations
• Incentives
• Spending
• Information/education

• Federal
• State
• Regional
• Municipal

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Issues?

• Is growth management all motherhood and apple
  pie?
• Together, identify at least three instances in
  which there may be negative consequences of
  growth management programs.

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Costs of Growth Management

• Housing affordability
• Inflation?
• Artificial constriction of supply
• Other?
• Open space
• Diversion to other areas
• Exclusion of certain populations
• Other?

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Montgomery County, MD Motivation

• Desire for Adequate Public Facilities
• Limited Public Resources
• Congestion
• Balance Jobs Houses
• Focus Development Around Transit
• Constrain Growth in Corridor
• Later - Support Affordable Housing

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The Complexity of the Problem

• Infrastructure capacity absorption depends on
  underlying technology and a developments
• location,
• timing,
• density, and
• character
• Infrastructure serves multiple uses and users
• Multi-dimensional bundle of attributes
• A flow not a stock
• May have a capacity or a standard

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Planning Process

• Monitoring should be linked to
• Master plans
• Capital Improvement Programs
• Financing System
• Development Regulation

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Decision Frameworks

• Proactive vs. Reactive
• Categories vs. Continuum
• Single vs. Multi-Dimensional
• Incremental vs. Comprehensive
• Coordinated vs. Fragmented

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Map
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Historical Overview

• 1974 APFO, Report recommending Staging Policy
  For Each Area
• 1970s Series of Policy Reports
• 1980 Comprehensive Staging Plan ltfailedgt
• 1981-6 Comprehensive Planning Policies (Planning
  Board)
• 1986 Interim Growth Plan
• 1987-Present Annual Growth Policy (Planning
  Board County Council)
• 1997 Alternative Review Procedures

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Carrying Capacity Model
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Externality Theory

• An externality is a commodity bundle that is
  supplied by an economic agent to another economic
  agent in the absence of any related economic
  transaction between the two agents. (Spulber).
• Arise from lack of property rights.
• May be positive or negative. Positive include
  consumption externalities and network
  externalities. Negative include congestion,
  pollution, accidents, etc.
• First Best Solution Internalize Externality
  Polluter Pays Principle.
• Transactions costs may make internalization
  difficult.

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Desired Outcomes of the Transportation System
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Measures of Effectiveness (MOE)

• Second-Best Solution Regulate Developer
• Infrastructure Has Multiple Attributes - A Doctor
  Looks at More Than Temperature, Planners Should
  Consider More Than Capacity
• The Right MOEs Vary Based on Facility Being
  Analyzed,
• MOEs Should Consider Not Only Current Status of
  System, but also Its Direction of Change.

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Attributes of Good MOEs

• Complete
• Aggregates Well
• Aligns with User Experience
• Measurable
• Predictable
• Useful in Regulatory Context

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Criteria for Selecting MOE

• It aids in identifying opportunities to increase
  the systemwide net benefits through public
  investment in improvements or changes in
  management,
• It minimizes the cost to achieve necessary
  measurement accuracy, and
• It produces the right incentives.

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Data Sources and Collection

• Supply Data
• Measured - Engineering Cost Study
• Predicted - Statistical Cost Study (Many
  Projects)
• Demand Data
• Measured - Operating Agency Utilization Data
• Predicted - Statistical Forecasts

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Setting Staging Ceilings
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Financing Alternatives

• Developer Funded Roads
• Trip Mitigation
• Impact Fees or Taxes
• Development Districts
• Development Approval Payment

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Model of Transportation and Land Use
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Second Best Development Regulation

• Minimizes the Cost of
• Prevention
• (Build) The cost of infrastructure required to
  maintain the performance indicators (Engineering
  or Statistical), or
• (Manage) The cost of demand and supply management
  to maintain the performance measures.
• Damage
• (Accept) The cost to the community of worsening
  the performance indicators in the absence of the
  infrastructure.

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Lessons Learned

• Dividing Responsibility
• Categorizing the Continuous
• Single Dimensional Standards
• Measures of Effectiveness
• Rational Planning
• Bringing Distant Dangers Near

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Summary

• Externalities Provides Underlying Rationale for
  Development Regulation
• Unfortunately, First Best Solution (PMC) is
  Not Always Feasible
• Regulating Supply is a Second Best Solution
• Multiple Measures of Effectiveness are Required
  to Understand Impact of Development on Capacity
  Utilization

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Conclusions

• Select Measures of Effectiveness
• Collect and Forecast Data
• Establish Standards (Absolute or Relative)
• Open System to Peer Review and Public Scrutiny
• Answer Not Whether Development, But How
• Implement Monitoring System in Regulation

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Problems inherent to Talk of growth management

• Excessive talk about height, bulk, scale, or
  volume-to-capacity ratios. Rather than experience
  or quality of life.
• Tend to talk in terms of incomes, mixing incomes,
  and bringing more of "that" income into my
  neighborhood. In turn we talk less of where the
  school teacher is going to live?
• We tend to talk in terms of regulationforcing
  people to do things. Rather, can we not make
  and do the right thing at the same time?
• We tend to focus on the supply of public services
  for me and my community. This in turn steers
  conversations away from the supply of public
  services for a more common good

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MOE for Transportation Consumers Surplus
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• Low density zoning
• Building permit caps
• UGBs
• APFO
• moratoria

Land use controls
Slower growth
Shift toward Single-family
Fewer rentals
Lower rental affordability
Racial exclusion
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Action taken Effect
Restrict/limit allowable uses Slows pace of development and diverts
Specify certain size restrictions Increase cost, make exclusionary
Restrict rate of development Diverts to other areas
One community adopts, another does not Inconsistency b/w jurisdictions
Regional growth management Spreads development outfurther dispersion
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What is land use planning?

• public sector planning for privately owned land
  and privately managed land markets. The
  preparation of plans for cities, city fringes,
  and rural areas that indicate the future
  development pattern of those areas.
• also included is the development and management
  of legal mechanisms such as zoning regulations,
  subdivision controls, and differential tax
  programs to induce and facilitate private land
  owners to bring about the land use pattern
  broadly outlined in the land use plans. (Harvey
  Jacobs 89)