Another reason why you can't force economic development
From Cyburbian mgk920: Chicago Tribune article:
Suburb's 'shattered dream'
The much-celebrated new subdivision in Ford Heights becomes another example of the forces battering the village
By Lolly Bowean | Tribune reporter
January 30, 2008
All along Seeley Avenue in Ford Heights, empty windows stare out from bright, colorful houses onto lifeless streets.
"For sale" and "auction' signs dot the yards of new frame houses that sit abandoned. When the Beck's Corner subdivision broke ground two years ago, it was a sliver of hope in a town that did not have a lot of it. Village leaders celebrated Ford Heights' first community of new homes in more than 50 years'and its modern amenities: Whirlpool appliances, cable and Internet hookups.
But today, it's a raggedy neighborhood of new houses that have been broken into, vandalized and gutted of anything of value. Of the 10 houses, only one resident remains. Most lost their homes to a combination of bad decisions, subprime mortgages and skyrocketing tax bills that turned out to be mistakes."
(see link for rest of interesting article)
(South suburban Chicagloand Ford Heights, IL is a tiny Illinois version of nearby Gary, IN.)
Once again, something that I learned long ago - you cannot 'force' an economic development idea into an area where the economic numbers do not add up - no matter how well-intentioned or 'visionary' it might be.
Speaking of photos, you can go to Google Maps, zoom in on Ford Heights, IL and see images of the place using the 'STREET VIEW' option (now, working in that 360 degree camera car has got to be the dream college job for a planning major!).
Mike
This same thing happened in the Detroit suburb of Highland Park (which is surrounded by the City of Detriot on three of four sides). This is a city that is in recievership and has effectively passed all municipal responsibilities to the county (city police, library, management, etc.). Then some erstwhile developers thought there would be some easy bucks made by building a bunch of ticky-tacky frame houses on scattered vacant lots throughout the city. Well, it wasn't. The houses are now in the same position as the ones in Ford Heights.
Here's a link to some photos of the houses in Highland Park, MI
I think that this area is in the image:
http://maps.google.com/?ie=UTF8&ll=42.416289,-83.096992&spn=0.004119,0.007296&t=k&z=17&om=0
Mike
There's documentation of the same phenomenon in Buffalo on the excellent Fix Buffalo blog.
http://fixbuffalo.blogspot.com/2007/12/vinyl-foreclosure-sale.html
http://fixbuffalo.blogspot.com/2007/11/suburban-newsin-city.html
http://fixbuffalo.blogspot.com/2007/11/sycamore-village-neighborhood.html
From one of the articles:
The first one here at 404 Madison is just a block away from the new suburban dreamscape at Sycamore Village. Originally sold in 1994 for $86000. It's currently assesed by the City for 65K and today the asking price is $27,000. Expect it to finally sell in the mid to high teens.
Talking about new housing as "economic development" doesn't really make sense, but often local governments don't make much sense either.:r:
Failed subdivisions are one thing, but what of failed commercial projects, especially larger projects which received millions of dollars in public subsidies.:-o Anybody know of any examples of these and how the communities dealt with the fallout?
Excellent point Hilldweller! On the face of it, residential development is not a direct factor to economic development, but an indirect factor. New housing developments do not pay for themselves in taxes, but they do start to change demographics. New houses, generally, are of higher price, therefore bringing in higher wage earners. As a critical mass starts to build (i.e. gentrification) then the business sector starts to improve as they see market opportunities to provide goods and services to this new clientele.
Certainly, a failed subdivision will not allow any of this to happen. Some of this may have more to do with the dismal housing market that seems to have impacted the post-industrial Midwestern states pretty hard rather than their attempt to add new construction in their community.
i has need bizness pwan?
You betcha housing starts are a leading economic indicator!
And the auto industry too!
No surprise here that those two industries are ill equipped to sustain longterm our national economic engine.
I wish i had a 15 yr fixd. Have a new 30yr fixd that I am hard pressed to find extra $ to pay down principal.
I would love to buy r/e right now, a big old building, install multi uses and light up the street!
Feelgood planning
There are differences between the residential development in Highland Park and Buffalo. Highland Park was once a middle-class community, and the 1920s-era housing stock, although deteriorated, reflects it. The new houses built in Highland Park are teeny-tiny houses that are intended for occupancy by poor occupants. The East Side of Buffalo was primarily working-class, with an original housing stock consisting of small frame "telescoping houses" built in the late 1800s and early 1900s. Those houses, typically with awkward floorplans, are almost always sited on very narrow but relatively deep lots. The intended market of the new infill houses are lower-middle-class to middle-class families.
In the case of Highland Park, existing houses can probably be renovated and made suitable for modern living patterns; many have good bones, and some cosmetic work and minor updating would result in some rather nice homes. In the case of Buffalo, it's nearly impossible to update a telescoping house for modern living. Think of it this way: you can restore a 1968 Pontiac Tempest and it'll be perfectly suitable for day-today driving; it'll even turn some heads. You can also restore a Model T Ford, but can it be used as a practical everyday driver?
I have a term for this that I just use when thinking about such projects: feelgood planning. These are projects with laughable cost-benefit ratios that are destined to fail or at least underwhelm, but which are promoted and implemented because they bring a feeling of hope to the surrounding community. "At least they're doing something."
Agreed. Especially if the development is a straightup single-family development. Those are always a loss, in terms of services to taxes comparisons.
This same thing happened in the Detroit suburb of Highland Park (which is surrounded by the City of Detriot on three of four sides). This is a city that is in recievership and has effectively passed all municipal responsibilities to the county (city police, library, management, etc.). Then some erstwhile developers thought there would be some easy bucks made by building a bunch of ticky-tacky frame houses on scattered vacant lots throughout the city. Well, it wasn't. The houses are now in the same position as the ones in Ford Heights.
Here's a link to some photos of the houses in Highland Park, MI