Greater Greater Washington. The Washington, DC area is great. But it could be greater.

Posts about Regionalism

Development


New coalition aims to improve regional planning

A new coalition of elected officials, planning professionals, and engaged citizens is hoping to improve coordination of regional planning in the DC area, with the goal of fostering more complete and accessible communities.

Last month, the Region Forward Coalition (RFC) held its inaugural meeting. The coalition is sponsored by the Council of Governments (COG) and is charged with providing policy guidance on regional planning matters, and with advancing the goals set forth in COG's Region Forward plan. The plan was adopted in January, 2010, and is an aggressive vision of regional Smart Growth.

I serve as a coalition member representing Greater Greater Washington, and will report on the group's progress from time to time. GGW was invited as a member because of our ability to reach people who care deeply about regional development. The selection is a testament to the hard work and insight of our community.

The Region Forward report identifies goals in several categories with specific targets relating to accessibility, sustainability, prosperity, and livability. The goals range from minimizing economic disparities and achieving balanced growth throughout the region to maximizing connectivity and walkability.

The report's land use goal sums up the overarching theme very succinctly: "We seek transit-oriented and mixed-use communities emerging in Regional Activity Centers that will capture new employment and household growth."

The purpose of the RFC is to oversee the implementation steps recommended in the Region Forward report, and to advise the COG Board on future regional planning activities. The RFC consists of 80 members representing area jurisdictions, planning committees, and advocacy groups. Prince George's County Council Vice Chair Eric Olson serves as the RFC chair, and Arlington County Board Member Mary Hynes and District of Columbia Planning Director Harriet Tregoning serve as vice chairs.


The author discusses the regional activity center of Woodbridge with Mary Hynes and Robert Brosnan of Arlington County, Bob Chase of the Northern Virginia Transportation Alliance, Greg Goodwin of COG, and other members of the RFC.

Our kickoff meeting offered excellent opportunities for RFC members to engage with each other on a variety of topics, including the question of what's included in the concept of "complete communities." What surprised me the most was the fact that there was a great deal of agreement among participants about the essential elements. These included a variety of transit options to integrate activity centers into the region, a mix of land uses to enhance walkability and livability within the community, and the presence of a variety of economic and social opportunities nearby.

I was also impressed by the initial focus on transit-oriented affordable housing. Too often, large scale planning exercises like this pay only lip services to things like public safety, education, and affordable housing. I look forward to a process that ensures these priorities are factored into planning in a meaningful way.


Alicia Lewis of COG moderates a panel on transit-oriented affordable housing programs

The next step will be to organize working subcommittees that will consider the definition and identification of "regional activity centers," taking baseline measurements of those centers, and developing future planning approaches to help them grow according to the goals identified by the Region Forward plan.

As with any diverse coalition, the goals and needs of members will not always align, but everyone involved is committed to the vision in the Region Forward report. I am excited to be serving with so many outstanding public servants and representatives from such diverse communities, but I am even more excited about strengthening the dialogue between these groups and the GGW community.

It was obvious from the kick off meeting that there is great potential for GGW to have an impact on regional planning through the course of the RFC's work. In the future, we envision live chats, guest posts and other forums to ensure that your voices are heard as we continue planning the future of the greater Washington region.

Government


Give me a break: Tax incentives should be regional, not local

Yesterday, the DC Council approved a $6 million tax break for CoStar to move from downtown Bethesda to DC.


Photo by oooh.oooh.

To address criticism from small businesses and nonprofits that moving CoStar wouldn't actually create new DC jobs since Bethesda is right on the Metro, the Council added several amendments to the deal. They now have to add 100 new jobs for DC residents, hire DC residents for at least half of all new jobs over the 10 years, and give at least 35% of their buildout work to DC small businesses. The total dollar amount also decreased from about $7 million to $6.1 million.

Nevertheless, this doesn't benefit the region as a whole. The overall amount of business happening here won't increase, nor will the total jobs. CoStar shareholders get some more money and residents lose a little. Meanwhile, small businesses like retailers and service businesses are finding it difficult to stay in business at all. Tax breaks would be much better spent on them, or spread out more fairly among businesses that create jobs whether or not they happen to have a personal chat with Mayor Fenty.

Northrop Grumman is also planning to move to the Washington area, and intends to play local governments off each other to get the best incentive package. But they've already decided to move here. If our region should give incentives to businesses to relocate, it should give them to woo the businesses to the area, not just to get them to locate in Tysons Corner instead of downtown, or the Capitol Riverfront instead of Silver Spring.

Ryan Avent suggests some jurisdictional cooperation:

The destination city would be better off if the local governments could agree not to compete for the new arrival, and to adopt some sort of transfer payment to share the gains from the relocation — the "winning" jurisdiction could pay a higher share toward multi-jurisdictional infrastructure investments, for instance. The failure to prevent this competition means that economic gain which would accrue to the metropolitan population, broadly speaking, is instead retained by the relocating firm.
Right now, each jurisdiction essentially 'bids' for how much of a break and what other incentives it can offer. What if the jurisdictions agreed to bid in an internal marketplace instead, with the winning bidder getting the exclusive right to negotiate with the company? In exchange, the winning bidder could agree to split any difference between their bid and the final incentive package with the others proportional to their (losing) bids.

For example, say DC is willing to offer $6 million in incentives, Montgomery and Fairfax $5 million, Prince George's $3 million, and Arlington $1 million. DC wins but wins the deal away from Los Angeles for only $4 million. That $2 million could then share among the others, with DC keeping $600K in addition to the benefits they get, Montgomery and Fairfax getting $500K, Prince George's $300K, and Arlington $100K. Then DC is sharing $1.4 million of the $2 million they "saved" through this compact with the others.

The savings could go to general small business tax breaks that benefit the other businesses not large enough to otherwise win special treatment from local governments. Or, as Ryan suggested, DC could just agree to pay the $1.4 million in extra capital contributions to, say, WMATA, from which all jurisdictions benefit.

Ryan is also skeptical about whether the District itself really benefits from these breaks:

Property tax breaks are particularly costly for the [District], given the many restrictions on land uses it faces (from public land ownership to the height limit). And there is no way for the District to ensure that employment will go to [DC residents], rather than suburbanites who will pay their income taxes elsewhere. Lucky Virginia might end up with much of the income tax gain without having to shell out incentives.

The city would be better off spending the money on investments that improve quality of life in the District — among them, measures to make it easier to open small businesses, including retail and service firms people want but which are often constrained by foolish government policies (limits on uses, high property tax rates, and so on).

People are currently moving into the city by the thousands. Why is that? It certainly isn't because the city has been using incentives to attract prestige headquarters.

The suggestion earlier to limit tax breaks outside downtown makes a lot of sense, since it's the other parts of the District that have empty commercial buildings, and where some office investment now could support growing mixed-use districts in the long run.

Economic development calculations ought to assume that as soon as the tax break ends, the business leaves for somewhere else with a larger tax break. If that happens, will the city be better off or not? If having a company in, say, Fort Totten for ten years helped turn that into a more thriving area and attracted other businesses, it could be great even if we never make a dime off the incentivized business.

The extra requirements to create jobs for DC residents are nice, but why not spread it around to anyone who adds jobs for DC residents? Why shouldn't a new bakery that employs 4 DC residents not get at least 4% of the tax break that CoStar will get for 100?

DC Maryland Virginia Arlington Alexandria Montgomery Prince George's Fairfax Charles Prince William Loudoun Howard Anne Arundel Frederick Tysons Corner Baltimore Falls Church Fairfax City
CC BY-NC