New Research Reveals “Key Drivers” to Propel Urban Economies
AEC’s Growth Monitor
Researchers at Northwestern University have just published some interesting research, about “The universal pathway to innovative urban economies.” The researchers analyzed industrial employment and population changes in 350 U.S. cities between 1998 and 2013, including over 100 million workers.
Key conclusions from the research include an observation that innovative economies start to emerge when an urban population reaches about 1.2 million people. Along with this scale inference, the researchers noted that the transition to an innovative economy depends upon a a city’s ability to attract and retain certain “superlinear industries.” Superlinear industries include the arts, entertainment, professional services, science, and information technology, each of which can grow out of proportion to underlying population growth.
As reported in SciTechDaily, one of the researchers wonders if the remote work promulgated by the COVID-19 virus and distancing may slow down the rate of innovation, in general. The thinking is that innovation may require the spontaneous and serendipitous insights that come with incidental human interactions. This insight certainly rings true for those that have managed collaborative and creative teams; sometimes the best ideas emerge even as the linear ideation and problem-solving proceeds.
An excellent review of the research is available at SciTechDaily, HERE. The research as published is available for full review on the website of the American Association for the Advancement of Science, by clicking here: AAAS Research – The Universal Pathway to Innovative Urban Economies.
Transfer of Development Rights Programs as a Revenue Tool for Local Governments
As local governments explore means to enhance their fiscal situation, transfer of development rights (“TDR”) programs may offer one worthy tool for immediate consideration. TDR Programs are, simply, a voluntary and incentivized (typically) means to sell all or a portion of the development rights associated with a particular property, to a third-party who can use these development rights at another property.
Successful TDR Programs will have specific objectives for “transfer out” properties (such as conservation easements) along with specific objectives for the “transfer in” properties (such as enhanced densities to increase feasibility). The “transfer out” property owner can still use the property in perpetuity (such as for agriculture or public park) for without the right to raze and further develop the “transfer out” property.
It is conceivable that local cities and counties, even states and state agencies, to create comprehensive TDR Programs that create local government TDR banks of considerable value. Particularly at a time when municipal zoning and its objectives are ripe for discussion. Consider – if “single family” residential neighborhoods are being evaluated for all manner of housing inserts, presumably for affordability, diversity, and equity purposes, … why not explore how general plan updates might include public/private (P3) partnerships across public parks where portions of parks are granted P3 development rights (fabricating new TDR’s of actual value). Such fabricated TDR’s can then be used in place, used to offset public asset operating costs, or, fully transferred as TDR’s to a “transfer in” site. With this fabricated land value that had not already existed, the local government achieves a new revenue source for sound public purpose.
The Growth Monitor is Back; Tracking Local Economic Development Policies & Practices
StoneCreek Partners has re-launched a legacy brand from the earliest days of its predecessor company, StoneCreek Advisors. Albeit with a a new name, The Growth Monitor.
The Growth Monitor will take the work of “Southern California Growth Monitor” to a national and international level, tracking regulations, incentives, policy and program tools, as well as lessons learned in implementing local economic development.
Southern California Growth Monitor was first established as a client resource publication by Phillips Brandt Reddick, the mega-scale master land use planning and development organization, and later acquired by StoneCreek Advisors upon its formation. StoneCreek Advisors is a predecessor organization to StoneCreek Partners and several other companies.
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