Smart Communities

Speedway Economics

Currently the focus in on the American automakers and how they can survive. We know however that cities and towns whose economy has been focused on one industry like the auto industry have suffered when the company moves or downsizes. We can look to Flint, MI, or for Fort Wayne, IN, or Martinsville, VA almost daily and see what happens when the jobs leave. Those that emerge find a niche or a hook to build the new economy. 

One that is doing just that is Martinsville. After losing 10,000 jobs in the last decade, it is trying to rebuild its future on cars and a track--racing that is. While it has not replaced the textile and factory jobs that were loss, it is building momentum for new industries, tourism, and hope. Racing is so big in the United States that this may be the ticket for Martinsville long-term. It will need a diversified tax base to be sure but there are lots of spinoff companies that can emerge from this industry. Take a look at Charlotte and Concord, NC, to learn the impact of racing receipts on an economy. I would just encourage the city mothers and fathers not to repeat the past and put all their economic eggs in one basket. Work as hard as you can in establishing the racing industry in Martinsville but work on your educational system and quality of life and business placement at the same time.

Reinventing Our Cities

More than one person has said that this time of pain that we are feeling as a nation will lead us to a better place. People are more cautious about their spending, articles abound on how to do more with less, and the often petty complaints about the workplace have given way to a thankfulness to have a workplace. What I tell communities is that the time has come to fix what needs to be fixed--while we still can. An article by Nicolai Ouroussoff in yesterday's New York Times echoes this sentiment with astounding clarity. Using four cities as examples--New Orleans, Los Angeles, The Bronx, and Buffalo, the articles previews what has been done and what must be done. While I might haggle around the edges on some points, on balance this article gets it right. Somehow we always convince ourselves that things will get better without hard choices (a little like most weight-loss programs) but of course they never do. 

Take a look also at Richard Florida's article in The Atlantic about the repositioning of American cities. I have more argument with this than the former but he raises some excellent points particularly about the winners and losers of all our financial woes.

A Hesitant Portland

I always like to end the week on a high note for the blogs. Yesterday's entry on sustainable communities in Rhode Island was certainly that. But today we get a reality check. One of the community field's real success stories--Portland, OR--was profiled in the New York Times today clicking off the impact of the economic downturn. While there is grim news reported about job layoffs and the decision by famed Powell Books not to expand, there is as you might guess somewhat of a silver lining. For the last quarter of a century at least we have been sliding--even great communities like Portland. Because despite the many positive things about the city including a thriving downtown, sustainability, innovative public transportation, and a real haven for the creative class, there have been problems, real problems. Poverty, school performance, and the implications of the those issues have been in Portland all along. This is Portland's time and our time to put on a new set of glasses going forward. 

One of the real surprises I have found as I have spoken around the country is that people really don't want to hear any bad news. The story line that is most popular is how their community is better than others. Forget that and start right now on a different ending. The silver lining of the Portland story is it is a wake-up call for that great city and all others that we need to position ourselves differently as we come out of this recession. I am not suggesting fear or reticence but rather boldness and reality. Many years ago urbanist Lewis Mumford spoke at the Economic Club of Portland. He asked people in Portland if they were up to the task to do what was needed to be great. They were...and they are still. 

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Sustainable Communities--What a novel idea

In the latest edition of the Boston Federal Reserve's publication, Community and Banking, the lead article written by Joe Vaughn describes a LISC-initiated project in two cities in Rhode Island--Olneyville and Woonsocket-- that moved community development investing to a new level. In what is now a fairly widely accepted view that community development does not begin and end with housing, LISC has launched efforts here and in other cities to have a more holistic view called the New Communities model. It has five major tenets: 1) expand investment in housing and other real estate; 2) increase family income and wealth; 3) stimulate economic activity locally and regionally; 4) improve access to education of all varieties; and 5) foster livable safe, and environmentally sound environments.

These pilot sites put a fine point on the importance of all these factors in sustainable communities and in my view changed the conversation. Equally important, these five factors are the obvious ones. We have deluded ourselves that we could do one or the other but this project speaks clearly to the need for all at once. This requires partnership and collaboration and a recognition that the five tenets are interrelated. Read more about Woonsocket from the LISC website.

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Shantytowns--Is this our country?

While I have written about the impact of the economic crisis in several contexts, the situation in Fresno, CA, where 100 or so people have set up a tent city really is deplorable. I know times are hard but we can do better than this. What this crisis has done is created a laser focus on the problems that were there all along but better hidden. In my opinion, this is the situation in Fresno. While certainly some of these folks were working a year ago, you can surmise from the article the jobs were for minimum wage or less. The problem did not start when we thought it did. The increase in poverty, homelessness, and even some of the unemployment was there all along. The worse thing in the world that we could do now is just address the symptoms yet another time and let these problems worsen. No matter what you think about the President's budget or his priorities, he is dead-on right that we have to think long-term and fix our systemic problems. 

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National Service--An Investment in the Future

It looks as if National Service is alive and well and on its way to increased funding. Given our current economic straights I was afraid this might get the ax. Congrats to Senators Hatch and Kennedy for getting this through. We need this work: for the communities that will be served and the civic capacities it will build. You know that I don't believe that volunteers can do what governments must, but we need a strong volunteer and service sector to address our problems in substantive ways. For example, we would never to able to "hire" enough tutors or mentors no that are needed no matter the size of the grants. Programs like Meals on Wheels, Habitat for Humanity, Teach for America, and a whole host of others rely on the volunteer sector.

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Housing Crisis--101

I, like many of you, have had a hard time following what actually happened in the housing crisis. I hear foreclosure and subprime used but that makes it sound like the problem is with poorly prepared buyers and a few gullible lenders. Well read on. This interview with Martin Eakes will give you some background into the depths of predatory lending and the article from yesterday's Atlanta Journal Constitution will shed some light on high deep this problem goes and how greed plays a substantial role. Hope this helps. 

Finally, housing is still a crisis in our country for millions of Americans who cannot get into the market or who can't afford to live in housing that meets even minimum standards. Despite the naysayers who blame the victim or say it is a made-up problem, we must continue to press on the issues as Meizhu Liu writes in today's Washington Post that prevent people from buying homes that are affordable and safe.

Reading Centers

Chattanooga, TN, is one of the cities I profile in my book, Smart Communities. It has a remarkable history of downturn and revival that is a testament to the power of change and civic involvement. Now yet again I am impressed by Chattanooga. The community has established Reading Centers in neighborhoods to encourage and improve reading. Partnerships that include the United Way, local funders, and neighborhood associations have established these centers. This is a great idea and one that we should learn more about.

As many of you know, I hit the ability to read at the early grade levels in my speeches on the dropout crisis. You should take a look at the reading scores in your local schools to get an idea of the extent of the problem on the School Matters website. Schools cannot make up the gap for children often times and thus they are left to try to compete without this essential skill. I think Chattanooga has opened a real window here. 

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Newspapers--Not the Way of Edsal

Despite the dire predictions and the declining profits, I want to support newspapers with a loud and resounding voice. Pretty much all of them have seen declining profits. We are losing some of our long-timers with the Rocky Mountain News and others. You could say "there are so many more what's the difference" or you could know that we are going in the wrong direction. I think the latter. As Nicholas Kristof writes today, we are in danger of talking to ourselves and just getting the news channel or print opinions that we agree with already. This is dangerous stuff. Not to have a back and forth with ourselves and hopefully with others prevents us from developing judgment on an issue. As Hannah Arendt said, "I know what I know and you know what you know but it is what we know together that is important." That is what good journalism allows citizens to do--understand different perspectives. One of the places that understands this best is the Kettering Foundation where I serve on the board. I would encourage you to read this pdf or request a copy of their latest Kettering Review on this very topic to get a full perspective on why a full and open media is critical to the health of a democracy. Then go buy a couple of newspapers of different political persuasions and understand that once again very smart people can disagree. It is out of that disagreement and deliberation that we come to a better vision of what we need to do collectively. Newspapers are a key to that process.

Housing--Going in the Wrong Direction

This is America right? We are the richest nation in the world. Well ask these folks in California how they feel. With the mounting foreclosures and economic downturn, more and more people are taking shelter anywhere they can find it. Of course it is not as if we were doing a red-hot job before this crisis was known widely. The crisis has exacerbated what was already a poor dire situation in the affordable housing arena. I have to believe that we are better than this.