smart growth · smart growth is smart business boosting the bottom line & community prosperity...

SMARTGROWTHis Smart BusinessBoosting the Bottom Line & Community Prosperity

NALGEP and Smart Growth Leadership Institute • 2004

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N A L G E P

National Association of Local GovernmentEnvironmental Professionals (NALGEP)Founded in 1993 by a group of local officials, NALGEP is a nonprofitnational organization representing local government professionalsresponsible for environmental compliance and the development andimplementation of local environmental policy. NALGEP’s membershipincludes more than 150 local government entities located throughoutAmerica. NALGEP brings together local environmental officials tonetwork and share information on innovative practices, conductenvironmental policy projects, promote environmental training andeducation, and communicate views on national environmental issues.NALGEP is conducting projects on a wide range of environmental issues,including brownfields, smart growth, USTfields, clean air, transportationinnovation, and clean water. NALGEP is managed by Spiegel &McDiarmid, a national law and government affairs firm based inWashington, DC. Please visit NALGEP’s websiteat www.nalgep.org.

Smart Growth Leadership InstituteThe Smart Growth Leadership Institute, a project of Smart GrowthAmerica, was created by former Maryland Governor Parris N. Glendeningto help state and local elected, civic and business leaders design andimplement effective smart growth strategies. The Smart Growth LeadershipInstitute (SGLI) is dedicated to helping communities achieve diversifiedemployment, a broadened tax base, more choice in housing andtransportation, convenience, healthier neighborhoods, and quality of life.SGLI believes that growth and prosperity can be achieved without many ofthe growing pains associated with sprawl—crushing traffic congestion, car-dominated neighborhoods, the loss of farmland and open space, crowdedschools, and rising taxes to pay for services and ever expanding rings ofnew infrastructure. Please visit SGLI’s website at www.sgli.org.

Contributors to this report include:Jessica Cogan, Smart Growth Leadership InstituteDannielle Glaros, Smart Growth Leadership InstituteKen Brown, NALGEPMatt Ward, NALGEPDavid Dickson, NALGEPBridget Thorsen, NALGEPPeter Fox, NALGEPHannah Lambiotte, NALGEP

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Acknowledgements

NALGEP and SGLI wish to convey our sincere appreciation toseveral people who helped make the Smart Growth Business Partner-ship and this Smart Growth is Smart Business report a success.

We commend and thank the 44 members of the Smart Growth BusinessPartnership Advisory Council. The Advisory Council represents nationalleaders from business, local governments, and non-profit organizationswho are blazing new trails through their work to promote smart growthstrategies in their communities and nationwide. The Council’s expertiseand input helped shape the profiles, findings, and recommendationsincluded in this report. Special appreciation goes to the Silicon ValleyManufacturing Group, especially Carl Guardino and Laura Stuchinsky, fortheir ongoing leadership and innovation on smart growth and for theirsupport of this project.

We are very grateful to the sponsors who supported this project and report.Many thanks to the U.S. Environmental Protection Agency Development,Community, and Environment Division, particularly Geoff Anderson andTim Torma. The folks at this EPA “Smart Growth” office are key partnersto local communities and businesses alike, and they have providedoutstanding guidance to our organizations throughout this project.

We thank The David and Lucile Packard Foundation for its generousfunding support for the Smart Growth Business Partnership Project. Wethank former Packard Foundation staff member Ned Farquhar and currentstaff member Dana Robson for their support, advice, and assistance.

We also appreciate the Bank of America’s funding support for this projectand for its ongoing commitment to smart growth. Special appreciationgoes to Bank of America’s Randy Muller and Candace Skarlatos for theirleadership on smart growth.

The folks at NALGEP are proud and grateful for our partnership with theSGLI, particularly Jessica Cogan and Governor Parris Glendening. We alsothank SGLI’s Harriet Tregoning for her longstanding leadership on smartgrowth, her early recognition of the critical importance of the private sectoron these issues, and her ongoing support and assistance to NALGEP. We also

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thank David Goldberg of Smart Growth America and Brad Rogers forcontributing to the report.

Special thanks to the NALGEP Board of Directors for their support andguidance in the development of this project and their commitment to smartgrowth innovation. We appreciate the involvement and leadership of BoardMember Doug MacCourt on this report as well as on NALGEP’s 1999report on these issues.

Thanks to our editor Steve Glaros for his tremendous contribution tothis report.

Thanks as well to William H. Ewen, Jr. for his impressive photographs.Finally, a great hurrah for Freehand Press and designer Holly Mansfield fortheir excellent design of this report.

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Steven Austin, Bluegrass Tomorrow,Lexington, KYCharles Bartsch, Northeast MidwestInstitute, Washington, DCFrank Beal, Chicago Metropolis 2020,Chicago, ILPeter Bell, Metropolitan Council,St. Paul, MNBill Bishilany, Smart Growth EducationFoundation, Chagrin Falls, OHJon Campbell, Wells Fargo Bank,Minnesota, St. Paul, MNChristina Casgar, Global Insight,Washington, DCJohn DeVillars, BlueWave Strategies,Boston, MALaurence M. Downes, New JerseyNatural Gas, Wall, NJJim Durrett, Urban Land InstituteAtlanta, Atlanta, GAElizabeth Ferguson, Bay Area Family ofFunds, San Francisco, CARichard Gilbert, BellSouthCorporation, Atlanta, GADavid Goss, Greater Cleveland GrowthAssociation, Cleveland, OHKevin Green, Metro Atlanta Chamberof Commerce, Atlanta, GACarl Guardino, Silicon ValleyManufacturing Group, San Jose, CAAnn Habiby, Initiative for a CompetitiveInner City, Boston, MAStephen Holbrook, Envision Utah,Salt Lake City, UTElizabeth Humstone, Vermont Forumon Sprawl, Burlington, VTJim Jacoby, Jacoby Development, Inc.,Atlanta, GABruce Katz, Brookings Institution,Washington, DCAnn Lang, CEOs for Cities, Boston, MADoug Luciani, Traverse City AreaChamber of Commerce, Traverse City, MI

Doug MacCourt, National Associationof Local Government EnvironmentalProfessionals, Portland, ORAndrew Michael, Bay Area Council,San Francisco, CAToby Millman, Eakin-Youngentob, Assoc.,Arlington, VAJoe Molinaro, National Association ofRealtors, Washington, DCRandy Muller, Bank of America,Environmental Services, Atlanta, GAJohn Parr, Alliance for RegionalStewardship, Denver, COMichael Pawlukiewicz, The UrbanLand Institute, Washington, DCRoger Platt, Real Estate Roundtable,Washington, DCMichael Porter, Initiative for aCompetitive Inner City, Boston, MAPaul Radcliffe, Electric Power ResearchInstitute, Palo Alto, CAReba Raffaelli, National Associationof Industrial & Office Properties,Herndon, VALee Ronning, 1000 Friends ofMinnesota, St. Paul, MNMichael Ryan, Narragansett Electric,Providence, RIJim Sayer, Sierra Business Council,Truckee, CAJesse Silverstein, DevelopmentResearch Partners, Littleton, COCandace Skarlatos, Bank of America,San Francisco, CAC. William Struever, Struever Bros.Eccles & Rouse, Inc., Baltimore, MDLaura Stuchinsky, Silicon ValleyManufacturing Group, San Jose, CALisa M. Ventriss, Vermont BusinessRoundtable, South Burlington, VTPaul Weech, Fannie Mae, Washington, DCScott Wolf, Grow Smart Rhode Island,Providence, RITom Wolf, Better York / WolfOrganization, York, PA

Smart Growth Business Partnership Advisory Council

Communities can be shaped

by choice, or they can be shaped

by chance. We can keep on

accepting the kind of

communities we get, or we can

start creating the kind of

communities we want.

— Richard Moe, National Trust

for Historic Preservation

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Contents� Introduction ................................................................................................... 1

� The Costs of Sprawl .................................................................................... 5

� Business Strategies for Smart Growth ............................................... 9

� Profiles of Business Leadership on Smart Growth ....................... 21

Bank of America: Commitment to Community Development .......................... 22

The Bay Area Council: Funding Fiscally Sustainable Growth .............................. 24

BellSouth: Metro Consolidation Enhances Employee Productivity .................... 26

Envision Utah: Quality Growth Plan Moves into Action ..................................... 28

Johnson Development Corporation: Investment inInner Cities Scores Big ........................................................................................ 30

Metro Atlanta Chamber of Commerce: CEOs Lay Tracksfor Smart Growth Transportation Planning ......................................................... 32

New Jersey Natural Gas: Providing Smart Growth Infrastructure ..................... 34

ShoreBank Corporation: Shoring Up Underserved Communities ..................... 36

Sierra Business Council: Growing Jobs and Communitiesin Rural America ................................................................................................. 38

Silicon Valley Manufacturing Group: Affordable HousingCritical to Regional Economic Growth ............................................................... 40

Struever Bros. Eccles & Rouse, Inc.: Tapping Benefitsof the Smart Growth Movement ........................................................................ 42

Traverse City Area Chamber of Commerce: Charting NewDesigns for Growth in Michigan Communities ................................................... 44

Vermont Business Roundtable: CEOs Boost the Benefitsof Managed Growth ............................................................................................ 46

Whole Foods Market: Growing Healthy Communities and Lifestyles ................ 48

Wisconsin Realtors Association: Building Better CommunitiesHelps Sell Homes ................................................................................................ 50

Zipcar and Flexcar: Car Sharing Capitalizes on the Urban Lifestyle ................... 52

Smart Growth Resources .............................................................................. 57

Increasingly, businesses are

recognizing the benefits of

investing in well-planned

livable communities.

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Introduction

A cross America, communities are grappling with the economic,environmental, and civic impacts of sprawl, including trafficcongestion, crowded schools, pollution, loss of open space, and

decaying infrastructure. Community leaders and local government officialshave been on the front line, trying to manage the enormous changesaffecting their hometowns. Many local officials have discovered that strongpartnerships with the private sector, particularly with businesses that arepromoting “smart growth” alternatives to sprawl, can be critical toaddressing the challenges of sprawling development.

The National Association of Local Government EnvironmentalProfessionals (NALGEP) and the Smart Growth Leadership Institutepartnered to produce this report, Smart Growth is Smart Business. Thereport profiles 17 businesses and business groups that are putting smartgrowth into action in communities across the nation. It outlines the reasonswhy these business leaders are supporting smart growth policies andprojects, and it puts forth five key smart growth business approaches.

Smart Growth is Smart Business follows a study originally published byNALGEP in 1999, Profiles of Business Leadership on SmartGrowth: New Partnerships Demonstrate the EconomicBenefits of Reducing Sprawl (see www.nalgep.org). Thisgroundbreaking work profiled how business leaders such asProvidence Energy, the Greater Cleveland GrowthAssociation, and the Commercial Club of Chicago, werebeginning to take steps in their communities to curb sprawland promote smart growth in their communities. Citing anumber of significant ways sprawl is undercutting businessprofitability and competitiveness, the study identified thebeginnings of a major attitude shift in the business communityaway from resisting growth control initiatives and towardsupporting efforts to channel the pattern and character oflocal economic development. That study identified 19examples of businesses across the country that wereaddressing the threat of sprawl, and it examined how andwhy they were championing smart growth locally. One threadwas found throughout the case studies – businesses were

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Smart Growth isgrowth that achievessix goals:

❚ Neighborhood livability

❚ Better access, less traffic

❚ Thriving cities, suburbs, andtowns

❚ Benefits for all residents

❚ Lower costs, lower taxes

❚ Keeping open space open

The nation and

the economy

have changed

dramatically…Yet

smart growth is as

strong as ever.

Smart Growth is Smart Business • Introduction

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taking action on smart growth because it was good forbusiness, that is, good for their bottom line.

In this new study, Smart Growth is Smart Business,NALGEP and the Smart Growth Leadership Institutesought to determine whether the private sector’s interest insmart growth had increased or whether it was merely apassing fad. We wanted to learn whether business leaderswould still promote smart growth during times ofeconomic downturn, declining profits, and downsizing.We sought to identify additional successful and profitablebusinesses that brought vitality and prosperity to theircommunities. We expanded our Advisory Council ofbusiness and local government leaders. We conductedsubstantial research to identify new businesses engaged insmart growth, and we interviewed a broad cross section of

business leaders, including manufacturers, developers, retailers, real estateprofessionals, utilities, and financial institutions.

Here is what we found:

❚ Quality of Life Is Still Critical to Business – Business leaders continue toemphasize that quality of life directly affects their bottom line and thatsprawl undercuts their employees’ quality of life. For example, the SiliconValley Manufacturing Group and BellSouth have a commitment to smartgrowth strategies that provide transportation and housing choices for theiremployees, because they know that they must improve local quality of lifeto attract and maintain a highly qualified workforce. “For us, business andenvironmental issues go hand in hand. We care about protecting theenvironment because the health of the environment directly affects thequality of life for our associates, our customers and our communities,”says Kenneth Lewis, Chairman and CEO of Bank of America.

❚ Reinvestment in Established Communities Makes Business Sense –Businesses are promoting reinvestment in established communities andexisting infrastructure over the costly approaches of providing newinfrastructure to new growth areas. These investments are reducingcosts and boosting profits over the short- and long-term. For example,New Jersey Natural Gas is working in partnership with the City ofAsbury Park and the State of New Jersey to encourage therevitalization of older urban and suburban communities by creatingnew models for upgrading existing infrastructure.

❚ Smart Growth Is an Emerging Market Opportunity – Retailers,developers, and other businesses are pursuing emerging smart growth

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Smart Growth is Smart Business • Introduction

market opportunities to gain competitive advantage, tap new customerdemand, and increase profits. The Whole Foods Market food chainnow has an aggressive strategy to locate new stores in transitionalneighborhoods on the verge of revitalization. By specializing inbrownfields redevelopment, infill and transit-oriented development,and other smart growth strategies to reuse historic areas andproperties, Struever Bros. Eccles & Rouse, Inc. has grown from a smallcompany to a $150 million real estate development and generalcontracting company ranked among the top five in Baltimore.

❚ Leading Businesses Seek to Improve Growth Management in TheirRegions – Business leaders are joining with localities, states, and grassroots organizations to encourage smart growth planning andmanagement. The Wisconsin Realtors Association, for example, is anactive supporter of the state’s 1999 Comprehensive Planning Lawbecause as the Association’s Tom Larson remarks, “nobody has alarger stake in quality of life issues or a greater awareness of what isgoing wrong within communities than realtors.”

❚ Smart Growth Sells in Both Up and Down Economies – Businesses aremaking long-term investments in smart growth because smart growthmakes economic sense in both growing and slowing economies. Smartgrowth projects are often stable investments, smart growth servicessell, and smart growth public policies help avoid the costs andinefficiencies of sprawl. Despite the slowing of the economy in recentyears, Bank of America has expanded its commitment to smart growthprojects, dedicating $350 billion to community development over a 10-year period. Likewise, 275 employers in the San Francisco Bay Areahave raised more than $150 million to invest in brownfieldsredevelopment, affordable housing and other smart growth projects.

When NALGEP released its Profiles of Business Leadership on Smart Growthreport in 1999, the American economy was at an extraordinary peak. Thenation and the economy have changed dramatically since 1999. The country isstruggling to recover from a major economic downturn. State and localgovernments are facing declining tax revenues and increasing demands forservices. Businesses have been downsizing and streamlining. Yet, smart growthis as strong as ever. The businesses profiled in our earlier report havemaintained and expanded their efforts. Many new companies and whole newsectors are now engaged in smart growth. Business leaders are reaping thereturns of smart growth strategies. This Smart Growth is Smart BusinesS

report shows how building better communities boosts the bottom line. Weexpect that the smart growth movement will continue to grow, and thatprivate sector leaders like those showcased here will help make smart growththe standard way of doing business in communities across America. ●

Sprawling development patterns

increase traffic, impact air and

water quality, and threaten the

fiscal health of cities, suburbs,

and the private sector.

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The Costs of Sprawl

In more and more American communities, people are experiencingsprawl each day – retail establishments are located miles away fromthe customers they serve, housing is separated from recreational

opportunities, and employment centers are distant from workers. Becauseland uses are separated, sprawl fosters an overwhelming dependence oncars and SUVs, because the automobile is usually the only way to get fromhome to work, school, or the grocery store.

As people and businesses move further out from the urban center, theyabandon cities and older suburbs, and shift investments to themetropolitan fringe. Improvements to our nation’s air quality have beenundermined because sprawling development patterns create an increase invehicle travel and associated air pollution. Increases in contaminatedrunoff from roads, parking lots, rooftops, and driveways threaten ourwater resources. Housing that is reasonably priced is difficult to find nearretail and employment centers. Schools are crowded and communityinfrastructure and institutions are overwhelmed.

The inherent inefficiency of sprawl threatens the fiscal health of cities,suburbs, and the private sector alike. New roads and highway interchangesneed to be built. Schools, firehouses, and police stations need to beconstructed and personnel need to be hired. Sprawling growth also requiresthe costly expansion of infrastructure and utilities into new areaswhich depletes resources for maintaining aging, existing systems.

As communities struggle to pay for these additional costs,taxes often are increased for residents and businesses alike.The Urban Land Institute (ULI) studied the cost to taxpayersto provide new or upgraded streets, utilities, and schools toservice new homes. ULI found that the average home 10 milesfrom downtown on a lot that is a third of an acre coststaxpayers $69,000. A home near downtown on a compact lotcosts taxpayers $34,500 – half the amount of the home 10miles from downtown.1 In Loudoun County, Virginia, a fast-growing Washington, DC, suburb, property taxes have

On average, a new

home 10 miles from

downtown costs

taxpayers twice as

much as one near

downtown.

2

Sprawl development dominates the

American landscape, and is

characterized by scattered, poorly

planned growth on the fringe of

established communities in which

jobs, homes, schools, and shops are

segregated over long distances.

1 James E. Frank, The Costs of Alternative Development Patterns: A Review of the Literature(Washington, DC: The Urban Land Institute, 1989).

Smart Growth is Smart Business • The Costs of Sprawl

6

increased by $764 per house between 2001 and 2003 just to coverinfrastructure costs related to the new development, including agrowing county debt.

Other costs to businesses include the clogged roadways that reduceemployee reliability and productivity. According to the TexasTransportation Institute’s 2003 Urban Mobility Study, 59% of majorroadways systems were congested in 2001.2 The study found thathighway congestion cost the nation $69.5 billion in wasted fuel andlost time last year – $4.5 billion more than the previous year.3 Freightcompanies that use the nation’s busiest roads also are losingproductivity as these clogged roads limit the number of possibledeliveries. The efficiency of the entire freight distribution system ishindered, resulting in higher costs to businesses and their customers.4

Poorly managed growth increases pollution levels, which can resultin regulatory costs and burdens to businesses. Poor air qualityaffects worker productivity as employees miss work to care for

themselves or their children with health problems such as asthma. In somecases, very bad air quality over an extended period of time can result in theloss of federal transportation funding.

In sprawling areas, there are typically few opportunities for people to walkto destinations, limiting employees’ choices to get exercise in their dailyroutine. Poorly designed growth decreases the ability of citizens tomaintain their health through walking, which increases employeeabsenteeism and lost productivity.

These trends are making some communities take drastic measures to curbrunaway growth and escalating costs. In some cases, the costs and impactsof sprawl can lead localities to issue strict regulations or even moratoria ongrowth. The rapidly growing suburb of Carroll County, Maryland, forexample, recently issued a moratorium on all new development.

None of these trends bode well for business success. Fortunately, buinessesare discovering that there are better ways to manage growth and keep costsdown, and communities across the country are leading efforts to fostersmarter growth. ●

2 Texas Transportation Institute, 2003 Urban Mobility Study (College Station, Tex.: Texas TransportationInstitute, September 2003), p 17.

3 Ibid.4 Department of Transportation, Federal Highway Administration, 2002 Status of the Nation’s Highways, Bridges,

and Transit: Conditions and Performance: Report to Congress (Washington, D.C.: GPO, 2003), chapter 22.

None of these trends

bode well for

business success,

and all of these

challenges call for

smarter ways to grow

our communities.

Strong partnerships between

the public and private sector

are critical in addressing the

challenges of sprawling

development.

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There is growing recognition that smart growth encourageseconomic development that can simultaneously promote fiscalhealth, protect environmental assets, and build community livability.

Ultimately, smart growth creates more and better choices for our communities– more options in housing, transportation, community amenities, andemployment opportunities – as well as greater efficiency and convenience.Although much as been written about the links among smart growth, qualityof life, and environmental protection, relatively few publications describe thebenefits of smart growth for the economy and businesses.

The profiles in this report demonstrate that more and more businesses areputting smart growth into action because it is good for business – that is,good for their bottom line. Most importantly, businesses are engaged insmart growth for business reasons first and the environment andcommunity livability second. Increasingly, business leaders are recognizingthat smart growth is smart business.

A wide variety of business sectors are joining in smart growth efforts –including developers, realtors, utilities, bankers and financiers, chambers ofcommerce, technology companies, industrial manufacturers, retail andservice companies, tourism businesses, transportation companies, andnumerous others. Many companies, including those profiled in this report,are integrating smart growth into their daily business operations.

Companies are seeking to protect and enhance the quality of life andincrease the vitality of their local communities, in order to increase thevitality of the places in which they do business. These companies arefinding creative ways to meet a growing demand for convenience andchoice in transportation, housing, services and products, for bothemployees and customers. Some companies are engaged in efforts topromote reinvestment in established communities and existinginfrastructure rather than demanding new infrastructure to serve newareas of development. Other businesses are using smart growth attributesto competitively market their products and tap new opportunities. Stillothers are aggressively investing in infill development, brownfieldsrevitalization, and development near public transit. And more private

Business Strategies for Smart Growth3

Smart Growth is Smart Business • Business Strategies for Smart Growth

10

sector leaders are joining with their state and localgovernments to promote better growth management.Together, these examples show how smart growthcan boost the bottom line for business and broadenbusiness opportunities in the twenty-first centuryAmerican economy.

Based on our interaction with the Smart GrowthAdvisory Council convened for this project and ourresearch, NALGEP and the Smart GrowthLeadership Institute have profiled 16 examples ofbusiness leadership on smart growth. These profileshighlight five key strategies that American businessesare using to pursue smart growth and boost theirbottom line. We encourage other business leaders toreview these strategies, follow the examples, andlikewise seek to profit from these smart growth andsmart business approaches.

Business Strategy � – Enhance Quality of LifeBusiness leaders recognize that quality of life affectseconomic prosperity, that sprawl undercuts quality of life,and that smart growth approaches can boost quality of lifefor communities, customers and employees.

Businesses increasingly recognize that quality of life isa key economic asset, and they seek locations in“livable communities” where people want to live,work and play. In 1999, Arthur Andersen Consultingasked business executives why they located where theydid. A majority cited high quality of life.5 Smallbusinesses recently reported that open space and parkswere among their highest priorities when decidingwhere to locate.6 In a survey of Sierra Nevada areabusiness owners, 82 percent identified high quality oflife as one of the most significant advantages of doingbusiness in the region.7 Considerations such as “fewerregulations than urban areas” and “lower costs ofdoing business” were ranked by only eight percentand 11 percent as a significant advantage.

5 Steve Lerner and William Poole, The Economic Benefits of Parks and Open Space: How Land ConservationHelps Communities Grow Smart and Protect the Bottom Line. Trust for Public Land, 1999.

6 John L. Crompton, Lisa L. Love, and Thomas A. More, “An Empirical Study of the Role of Recreation,Parks and Open Space in Companies’ Location Decisions.” Journal of Park and Recreation Administration(1997), 37-58.

7 Sierra Business Council website, www.sbcouncil.org.

� Enhance Quality of LifeBusiness leaders recognize that quality oflife affects economic prosperity, thatsprawl undercuts quality of life, and thatsmart growth approaches can boostquality of life for communities, customers,and employees.

� Reinvest in EstablishedCommunities

Businesses are promoting reinvestment inestablished communities and existinginfrastructure over the costly approachesof providing new infrastructure to poorlyplanned new growth areas.

� Tap Emerging MarketsBusinesses are pursuing emerging smartgrowth market opportunities to gaincompetitive advantage, tap new customerdemand, and increase profits.

� Plan for Community GrowthBusiness leaders are joining with localitiesand states to encourage growthmanagement and enhance housing andtransportation choices.

� Use Smart Growth inGrowing and SlowingMarkets

Businesses are finding that investing in smartgrowth makes economic sense in growingand struggling economies.

Business Strategiesfor Smart Growth

11


In today’s global marketplace, where capital and employees are extremelymobile, quality of life is especially important for attracting andmaintaining a highly qualified workforce. Businesses hope to gain acompetitive edge by attracting employees to communities with a uniqueidentity and a high quality of life. Attributes such as cultural amenities,restaurants, subway or light rail systems, and open space and parks attracteconomic growth in part because they appeal to highly educated, highlymobile “knowledge workers.”8

There is growing evidence that smart growth strategies can enhanceemployee productivity. For example, economists have shown that averagelabor productivity increases with the employment density of counties.9

Higher productivity levels can be found in cities that are compact andserved by efficiently integrated transportation systems.10 In addition, apositive association between the presence of growth management and theimprovement of a metropolitan area’s overall personal income levels hasbeen found.11

Sprawling development, however, can drain the energy and life fromexisting communities. Deteriorating quality of life can, in turn, undercutthe business climate of a community. In some of the fastest growingmetropolitan areas, companies are slowing down their business expansionplans or opting to move elsewhere because traffic congestion and adeclining quality of life are stifling worker productivity. For instance inAtlanta in 1998, Hewlett-Packard delayed plans to build a second 20-story tower for some 1,700 workers because the metropolitan region hada mobility crisis. The average driver traveled 34 miles daily – more thanany other major metro area in the country – and workers complainedabout commute times. 12 At the time, Atlanta was consuming an acre ofland for every two new arrivals and traffic was unpredictable. Unplannedgrowth and a poor public transportation network were destroying thecity’s potential economic growth and hampering business expansion.Worsening air quality threatened regulatory gridlock and costly burdenson business. The result? The business community supported the creationof a regional super-agency, the Georgia Regional TransportationAuthority, to coordinate land use, build new transit lines, and maintaineconomic growth in the region.13

8 Antonio Ciccone and Robert E. Hall, “Productivity and the Density of Economic Activity.” American EconomicReview 86 (1): 54–70, 1996.

9 Robert Cervero. “Efficient Urbanization: Economic Performance and the Shape of the Metropolis.” WorkingPaper, Lincoln Institute of Land Policy, 2000.

10 Nelson, Arthur C., and David Peterman, “Does Growth Management Matter: The Effect of GrowthManagement on Economic Performance.”Journal of Planning Education and Research19: 277–285, 2000.

11 Richard Florida, “Competing in the Age of Talent: Quality of Place and the New Economy. Pittsburgh:R.K. Mellon Foundation, Heinz Endowments, and Sustainable Pittsburgh, 2000.

12 Urban Roadway Congestion Annual Report-1998, Texas Transportation Institute.13 Keith Schneider, “Think Your Commute is Bad,” New York Times, October 20, 1999.

Traffic congestion, poor

schools, lack of

affordable housing, and

a degraded

environment make it

tough for companies

competing to attract

and retain high

performing employees.


12

Traffic congestion, poor schools, lack ofaffordable housing, and a degraded environmentmake it tough for companies who are competingto attract or retain high performing employees.As businesses move away from the urban core toareas that are not served by transit, they arefinding it increasingly difficult to attract entry-level workers to low- wage jobs.14 In HowardCounty, Maryland (approximately 20 miles fromdowntown Baltimore), so little housing isaffordable to working families that shuttle busesrun into downtown Baltimore to pick up servicesector workers and deliver them to Howard

County malls.15 This geographic mismatch also is occurring for companiesseeking employees right out of college. Fidelity recently built a big, new2,500-employee facility in northern Rhode Island, only to discover that theyoung financial employees they wanted to attract wanted to work in the cityrather than in a suburban campus.16

In response to these concerns, business leaders are increasingly promotingsmart growth as a strategy to preserve and enhance quality of life for theiremployees and their communities. In metropolitan areas of Californiastruggling with the impacts of sprawling growth, business associations havestepped forward to help lead the charge to smarter growth. The Bay AreaCouncil, representing 275 major employers in the San Francisco area, hasestablished the Bay Area Smart Growth Fund to make financial investmentsin smart growth real estate projects with the goal of providing a “naturalenvironment that is vibrant, healthy and safe, where the economy is robustand globally competitive, and where all citizens have equal opportunities toshare in the benefits of a quality environment and prosperous economy.”Projects qualify for funding consideration if they are part of a mixed-useproject in one of the Council’s 46 designated target areas.

The Silicon Valley Manufacturing Group, which represents 180 companiesemploying 225,000 people, has helped lead a campaign to extend anexisting half-cent local sales tax to build transit and improve roadwaysbecause worker time is being wasted in traffic.17 The Group also has ledefforts to create affordable housing for all Silicon Valley employees whoare facing the challenges of excessive commutes and high-priced housing.

14 Kaid Benfield, Matthew D. Raimi and Donald D.T. Chen, Once There Were Greenfields: How Urban Sprawlis Undermining America’s Environment, Economy and Social Fabric. Natural Resources Defense Council(1999) 124-125.

15 Jacqueline E. Burrell, “County Jobs for City Workers.” The Business Monthly, December 1999.16 James H. Dodge, “Business Interests and Smart Growth,” NJ Future Newsletter v21 Summer 2000. James

H. Dodge is the former chairman, president and chief executive officer of Providence Energy Corporation.17 Silicon Valley Manufacturing Group website www.svmg.org.

13


In Stamford, Connecticut, a coalition of business leaders, including PitneyBowes, Inc., have joined with the local government to seek expansion ofcommuter transit facilities and programs, because they fear the gridlockon Interstate 95 will make their region uncompetitive in regional,national and global markets.

When BellSouth decided to avoid a headquarters office campus on theurban fringe and, instead, merged its employees into three office locationsnear transit in downtown Atlanta, it integrated smart growth into thedesign and location of the new offices. The firm decided to invest inparking at transit centers, rather than build additional parking atindividual office locations, giving employees more choice on how theytravel to work. The company also decided to strategically design theiroffices to connect to the existing community to maximize walkability andcreate a lively interaction with the neighborhood.

Similarly, when Bank of America decided to build a new technology centerin Charlotte, the company designed a space that not only supported a high-tech office, but also included retail, residential, parking, and public greenspace. The center is within walking distance of an elementary school andthe rest of downtown Charlotte. Other business decision-makers areproviding smart growth choices to employees, including alternatives toauto-dependent commuting, such as transit benefits and subsidies, cash-outof employer-paid parking, and ride-sharing programs.

These business leaders know that if our cities and towns fail to combatsprawl, they will fail to create a climate in which business can thrive.

Business Strategy � – Reinvest in Established CommunitiesBusinesses are promoting reinvestment in established communities andexisting infrastructure over the costly approaches of providing new infra-structure to poorly planned new growth areas.

One key to smart growth is reinvesting in central cities, older suburbs, andestablished communities and improving existing infrastructure; rather thanspending limited resources on new infrastructure and development in far-flung places. This approach makes sense both for public sectorexpenditures and private sector investment.

Sprawl creates economic inefficiencies by increasing business operatingcosts as well as costs for local governments, because new infrastructure andservices – roads, schools, utilities, water and sewer, and police and fireprotection – must be provided to support the new development. Theburden of these major infrastructure costs on local, state, and federal


14

governments is likely to increase as budget pressuresmake it difficult to help fund the tremendousbacklog of infrastructure improvements and otherpublic sector needs. The costs of providing andmaintaining new infrastructure, while stillmaintaining the old infrastructure, are passed on tobusinesses as well as residents.

Grow Smart Rhode Island’s Costs of Sprawl studyfound that over the next 20 years, building accordingto the current development pattern would cost thestate about $1.43 billion more than building in amore compact and efficient pattern.18 According toFederal Reserve Vice Chairman of the Board of

Governers, Edward Gramlich, a well-known economist, “the application ofsmart growth strategies over the next twenty-five years could save as muchas $250 billion, mainly in the form of infrastructure investment.”19 A March2004 study by the Brookings Institution concluded that more compactdevelopment patterns and investments in the urban core could savetaxpayers money and improve overall regional economic performance. Itfinds that smarter growth patterns over the next 25 years could savegovernments 11.8 percent, or $110 billion from road-building costs, 6percent or $12.6 billion from water and sewer costs, and 3.7 percent or $4billion from annual operations and service delivery.20 Likewise, theResearch Institute for Housing America found that $15.5 billion could besaved in land costs and $145 billion in housing-related expenses.21

Businesses are taking action in response to these costs of sprawl. Someutilities, including New Jersey Natural Gas Company and NarragansettElectric, have found that providing utility infrastructure to a compactpopulation would result in lower operating costs than building newinfrastructure that encourages sprawl. Envision Utah found that bygrowing smart – investing in public transportation, supporting walkablecommunities, and encouraging housing at various price points – theregion around Salt Lake City, Utah, could save $4.5 billion ininfrastructure costs.22

18 H.C. Planning Consultants, Inc., and Planmetrics, LLP, “The Costs of Suburban Sprawl and Urban Decayin Rhode Island: Executive Summary,” December 1999.

19 Governor Edward M. Gramlich at the Federal Reserve Bank of Cleveland Conference “LivableCommunities: Linking Community Development and Smart Growth,” Cincinnati, OH November 7, 2002.

20 Mark Muro and Robert Puentes, “Investing in a Better Future: A Review of the Fiscal and CompetitiveAdvantages of Smarter Growth Development Patterns,” The Brookings Institution Center on Urban andMetropolitan Policy, March 2004.

21 Robert W. Burchell and David Listokin, Linking Vision with Capital: Challenges and Opportunities in FinancingSmart Growth (Washington, D.C.: Research Institute for Housing America, September 2001).

22 Information on Envision Utah’s Quality Growth Strategy can be found at: www.envisionutah.org.

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Moreover, companies across the nation are directing their resources and effortsback to established communities. For example, Magic Johnson established theJohnson Development Corporation to foster local economic growth inunderserved urban and inner-ring suburban neighborhoods. By developingnew coffee houses, restaurants, movie theaters, and retail centers, theCorporation supports smart growth by locating in existing neighborhoods andstimulating local economic growth. Many businesses, such as the corporatecoalition represented by Chicago Metropolis 2020, are promotingreinvestment in formerly developed, but now abandoned or under utilized,properties such as brownfields and vacant shopping centers. DiscoveryCommunications’ new building in Silver Spring, Maryland, was built withouta cafeteria specifically to encourage employees to visit local restaurants.

ShoreBank, founded in Chicago and now located nationwide, has found thatits investments in established communities have yielded business success andprofits as well as social benefits to the communities in which these bankers liveand work. ShoreBank’s investment strategy has been to build a powerfulfinancial institution by entering markets where traditional banks are afraid toinvest, focusing on redevelopment and business investments in downtroddenneighborhoods, and establishing a competitive advantage in key emergingmarkets. ShoreBank is now a corporation that includes a venture capital fund,a real estate development firm, and a worldwide consulting group.

As a key part of your local community, you too can support downtownrevitalization, infill development, brownfields redevelopment, and well-designed mixed-use projects.

Business Strategy � – Tap Emerging MarketsBusinesses are pursuing emerging smart growth market opportunities to gaincompetitive advantage, tap new customer demand, and increase profits.

Today, many businesses engaging in smart growth are doing so to gain acompetitive advantage, maximize shareholder value, and tap unmet marketdemand for goods and services. Our nation’s urban centers and oldersuburbs offer untapped market demand. The Initiative for a CompetitiveInner City (ICIC) estimates that approximately 25 percent of inner cityretail demand is unmet by retailers. ICIC also estimates that 54 percent ofworkforce growth over the next 10 years will come from minoritycommunities, which are heavily concentrated in cities and older suburbs.

Communities investing in smart growth strategies are creating newopportunities for businesses. Leading economists such as Robert Lucas,Paul Romer, and Edward Glaeser describe how in the “knowledgeeconomy” the clustering of talented people or “human capital” acts as a


16

prime driver of economic growth in urban areas. Citiesare prime locations for the sharing of ideas,information, and technology because they takeadvantage of “agglomeration” efficiencies and becausethey provide easy access to suppliers and a regionallybased labor pool.23

Niche markets are opening up for innovative businesseslooking to take advantage of the lifestyles that springfrom smarter patterns of growth and development. Somebusinesses are using lifestyle issues as a matter of brandidentity. Businesses such as Starbucks and Kinkos arelooking for the next revitalizing neighborhood, hoping tofind the ideal location and increase their business asinvestment follows them into these areas. Flexcar andZipcar, two private car-sharing companies, have

discovered a previously untapped national market – a desire for short-termcar access where people live or work, without the expense and hassles ofownership. The success of these companies and the rising interest in lifestyleissues are changing the way universities, businesses, developers, andindividuals think about mobility, parking, and development opportunities.

In Baltimore, Mark Foster created Second Chance, an architecturalantiques and salvage group, to provide historical, period pieces forpeople investing in historic restoration, and now cities across the countryare contacting the business to start similar enterprises in their owncommunity. The Whole Foods Market Corporation has become thenation’s largest natural and organic food supermarket chain, in part bytargeting retail space in transitional neighborhoods, attracting newresidents to them, and becoming a centerpiece of community interaction.

Communities that encourage smarter growth are creating new markets andcompanies are taking note of the competitive advantage that can be obtainedby investing early. Even “big box” retailers, such as Wal-Mart and Target,who have typically steered away from downtowns, have recently developednew store prototypes to fit on Main Street. At the “Quarry” redevelopmentproject in Minneapolis, a shopping center developer reclaimed a brownfield,and established design plans in cooperation with the community, to produceone of the most profitable shopping centers in the state. Other corporations,such as Struever Bros. Eccles & Rouse, Inc. and the Brownfields RecoveryCorporation, have developed competitive niches by reclaiming brownfieldsand investing in infill and mixed-use development projects.

23 Mark Muro and Robert Puentes, “Investing in a Better Future: A Review of the Fiscal and CompetitiveAdvantages of Smarter Growth Development Patterns,” The Brookings Institution Center on Urban andMetropolitan Policy, March 2004.

17


Business Strategy � – Plan for Community GrowthBusiness leaders are joining with localities and states to encourage growthmanagement and enhance housing and transportation choices.

Even businesses that invest in existing communities and take advantage ofemerging market opportunities realize that they cannot avoid the costs ofsprawl on their own. Because the bottom line for businesses can beimpacted by sprawling growth, many business leaders are joining forceswith local government, state government and other key allies to proactivelydecide where and how their communities should grow and develop. Morespecifically, these businesses are engaging in regional planning activities toprotect open space, enhance transportation and housing choices, reducepollution, and channel growth in ways that will protect quality of life andensure long-term economic prosperity.

Recognizing the economic benefits of growth management, the VermontBusiness Roundtable worked with the Vermont Forum on Sprawl, to draft aset of smart growth principles and five new models for development using atest sample of three sites that they hoped could foster new approaches tocommercial and industrial development in Vermont. The BusinessRoundtable and the Forum will use the lessons learned from the project toeducate local planners and regional and state economic development officialson identifying specific ways land use regulations can be improved toencourage rather than discourage smart growth. Likewise, the Envision Utahinitiative, which includes corporations as major participants, is promotingfuture development approaches for this fast-growing region that include newtransit choices and transit-oriented development, compact developmentdesigns, and mixed-use and affordable housing investments.

In Michigan, the Traverse City Area Chamber of Commerce is promotinglocal land use planning in order to maintain the quality of life, tourismeconomy, and positive business climate that have long been their keyeconomic assets. Realtors, like those represented by the Wisconsin RealtorsAssociation, are advocating for smart growth planning approaches, becausethese real estate professionals know that they are selling quality of life, notjust houses. The Sierra Business Council is helping the rural communities inthe Sierra Nevada region develop new planning strategies that protect theirunique character and landscapes, while also ensuring that local economiescontinue to grow and prosper. Another example of business leadership onsmart growth is the CEOs for Cities organization, a national alliance ofmayors, corporate executives, university presidents and other nonprofitleaders with a mission of advancing the economic competitiveness of cities.CEOs for Cities undertakes policy projects designed to foster public-privatecollaboration on urban economic development. For example, CEOs haspartnered with the Brookings Institution on a vacant land reform project,including a 10-step agenda for urban land use reform.


18

Business leaders also can educate their customers about thebenefits of smart growth and can support local officials whomake tough decisions to support smart growth over sprawl.Business leaders can help their trade associations and chambersof commerce get involved in smart growth activities, and theycan support business-to-business education on the issues ofsprawl, smart growth, and better development practices.

Business Strategy � – Use Smart Growth inGrowing and Slowing Markets

Businesses are making long-term investments in smart growthbecause smart growth makes economic sense in growing andstruggling economies.

Businesses are increasingly recognizing that smart growthpractices create the right economic conditions to survive adownturn in the economy as well as help businesses to profitin a growing market. Reinvestment in existing communitiescreates healthy business climates and yields a variety of

positive returns. For example, smart growth generates jobs. A recent studyreleased by Good Jobs First indicates that metropolitan areas engaged insmart growth generate more construction related jobs than areas withoutgrowth management policies.24 Well-designed, walkable communities withamenities and transportation choices are good investments in all economicconditions. Concentrating development also creates new synergies andbusiness opportunities. Moreover, smart growth investments can helpbusinesses avoid the most costly impacts of sprawl, including deterioratingor overwhelmed infrastructure, overcrowded schools, tax increases, andregulatory and political gridlock. These cost efficiencies are particularlyimportant when the economy is stressed and resources are limited.

Even in a tighter economic environment, companies are moving to andinvesting in communities with a high quality of life. According to EmergingTrends in Real Estate 2002, investments in established downtowns andneighborhoods “hold their value better in bad times and show greaterappreciation in the good.” The report also continues to confirm that areaswith mixed uses, green space, and street grids with sidewalks will agebetter than sprawl. They also are better financial investments.25

For example, when Denver’s Alexan City Center apartment complex wassold, it commanded a $5,000–$10,000 premium per unit because it was

24 Emerging Trends in Real Estate 2002, PriceWaterhouseCoopers and Lend Lease Real Estate Investments,LLP, 2002.

25 The Jobs are Back In Town; Urban Smart Growth & Construction Employment, Good Jobs First, 2003.

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within walking distance of a light-rail station.26 In fact, land valuesadjacent to planned – but still unbuilt – light-rail stations in Charlotte,North Carolina, have gone up 10 percent beyond comparable properties inthe past year. Charlotte developers are already building transit-orienteddevelopment projects in anticipation of the rail lines.27

Although the economy has slowed in recent years, companies are still willingto pay a premium to be in prime locations – locations that offer amenities, a24-hour live/work/play environment, and quick access to transportation.Boston Properties surprised many in the real estate sphere with its decision, insummer 2003, to purchase two office buildings in the Reston Town Center ata price of $205 million, a local record. The deal came even as many lower-priced vacant office buildings were available throughout the region.

Reston Town Center is the commercial center of a planned community inNorthern Virginia, one of the fastest-growing areas in the country. But unlikethe broader Reston-Herndon high-tech enclave, which has a 23 percentvacancy rate, Reston Town Center has a vacancy rate of less than five percent.The low commercial vacancy rate reflects people’s willingness to pay apremium to be in a town center. It is considered a prime location because of its24-hour environment, nearby residential areas, proximity to prime restaurantsand nationally known retailers, and proximity to major commuting routes.

According to Jon Kaylor, a senior vice president at Boston Properties,“Even in a soft market, there’s a flight to quality. Tenants want to be asclose as possible to amenities, the restaurants and retail.” He is convincedhis firm’s purchase was a wise decision, saying that, if the buildings werenot in Reston Town Center, “either we wouldn’t have done it, or we wouldhave had many more concerns.”

Other indications of the business commitment to smart growth, even in aslow economy, can be seen in the increased smart growth activity of majorfinancial institutions in the past few years. Banking institutions such asShoreBank are demonstrating that investing in urban communities yieldspositive financial gains. Fannie Mae has expanded their smart growthproducts since NALGEP’s smart growth business report was issued in 1999.

Smart growth is an approach to simultaneously achieving a strongeconomy, enhanced quality of life, and superior environmental quality. Asmore and more business leaders come to understand the link between theireconomic success and the quality of life experienced by their employeesand their clients or customers, more and more businesses will beginpromoting smart growth in their communities. Expect to see additionalleadership from the business community in the years to come. ●

26 “Proximity to Light-Rail Helps Boost Sale Price of Englewood’s Alexan City Center Apartment Complex,”Rocky Mountain News May 2, 2003.

27 “Property Values Rise Along Charlotte’s Light-Rail Route,” Charlotte Observer, July 7, 2002.

Business innovation on smart growth is taking

place in more ways and in more communities

than ever before. This section provides 16

profiles of private sector leaders whose business

strategies promote smart growth. These strategies

demonstrate a range of activities: from efforts to boost

local quality of life and employee choices to

reinvestment in established communities and existing

infrastructure; from strategies to tap new markets for

smart growth to collaboration with local and state

governments to plan and manage future growth. By

highlighting these examples of business smart growth

innovation, NALGEP and the Smart Growth Leadership

Institute hope to encourage even more businesses to

explore how sprawl may be impacting their bottom line

and to consider smart growth strategies as a promising

alternative approach.

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Profiles� Bank of America: Commitment to Community Development

� Bay Area Council: Funding Fiscally Sustainable Growth

� BellSouth: Metro Consolidation Enhances Employee Productivity

� Envision Utah: Quality Growth Plan Moves into Action

� Johnson Development Corporation: Investment in Inner Cities Scores Big

Metro Atlanta Chamber of Commerce: CEOs Lay Tracks for Smart GrowthTransportation Planning

New Jersey Natural Gas: Providing Smart Growth Infrastructure

� ShoreBank Corporation: Shoring Up Underserved Communities

� Sierra Business Council: Growing Jobs and Communities in Rural America

Silicon Valley Manufacturing Group: Affordable Housing Critical to RegionalEconomic Growth

� Struever Bros. Eccles & Rouse, Inc.: Tapping Benefits of the SmartGrowth Movement

� Traverse City Area Chamber of Commerce: Charting New Designs for Growthin Michigan Communities

� Vermont Business Roundtable: CEOs Boost the Benefits of Managed Growth

� Whole Foods Market: Growing Healthy Communities and Lifestyles

� Wisconsin Realtors Association: Building Better Communities Helps Sell Homes

� Zipcar and Flexcar: Car Sharing Capitalizes on the Urban Lifestyle

4

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Bank of AmericaCommitment to Community Development

Bank of America, the largest provider ofcommercial real estate finance in thecountry, continues to provide corporate

leadership on smart growth issues facing localcommunities. Originally profiled in 1999 inNALGEP’s Profiles of Business Leadership on

Smart Growth for its early recognition thatsprawling, poorly planned development threatenslong-term economic prosperity, Bank of Americahas continued to help communities pursuesustainable development practices.

Through community development lending,contaminated properties redevelopment, andinner city revitalization, Bank of America hasmade a commitment to support sustainable,managed growth that promotes the overalleconomic vitality of the nation’s metropolitanareas. Speaking before the International City/County Management Association’s nationalconference in September 2003, Bank of America’sVice Chairman and Chief Financial Officer, JamesHance, Jr., pointed out, “At Bank of America, ourobjective is to achieve superior growth — but alsogrowth that is predictable, consistent andsustainable. Neither investors nor taxpayers wantto invest in episodic growth.”

“Our commitment recognizes that, for us,business and environmental issues go hand inhand. We care about protecting the environmentbecause the health of the environment directlyaffects the quality of life for our associates, ourcustomers and our communities,” says KennethLewis, Chairman and CEO of Bank of America.“For Bank of America, that means commitment tothe communities in which we do business.Community involvement is built into the natureof our business because we can only thrive wherethere are thriving, healthy and growingcommunities.”

Providing the Financial Toolsto Drive Urban RenewalBank of America recognizes that investing incommunities and creating a climate for investmentand growth in urban centers is critical to the long-term success of the bank’s investment strategy.Therefore, it is working proactively to encourageinvestment in urban centers by removingimpediments to revitalization. Because smartgrowth projects are often misperceived as risky anddifficult to finance, they often require uniqueinvestment models. The Bank of AmericaCommunity Development Bank stimulatesinvestment in low- and moderate-income areasthrough debt and equity lending for affordablehousing and new business construction. To makethese investments attractive, the division capitalizeson various public sector incentives, such as thefederal historic preservation tax credit, whichprovides a 20 percent tax credit for the rehabilitationof certified historic structures and a 10 percent taxcredit for the rehabilitation of any nonhistoric,nonresidential buildings built before 1936.

In addition, Bank of America’s EnvironmentalServices Division helps loan officers assess andquantify environmental risks associated withbrownfield sites before the initial propertytransaction. The Environmental Services Divisioncan suggest ways to mitigate these risks, amortizecosts and find appropriate insurance orindemnification for local governments as theyattempt to revitalize existing infrastructure andattract redevelopment.

Developing Partnerships forCommunity RevitalizationBuilding on the success of the company’s $350million investment in Gateway Village, a 15-acretechnology, retail, and residential center indowntown Charlotte, North Carolina, Bank of

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America has expanded its revitalizationefforts nationwide. A few examples of theseefforts include:

❚ In Kansas City, Kansas, Bank of Americapartnered with City Vision Ministries andDouglass National Bank to support Turtle HillTownhomes, providing $1.25 million inconstruction financing and an additional$167,000 in equity for this 58-unit mixed-income housing development. The project isthe first new multi-family residential projectin Kansas City’s Northeast Corridor in 30years and has revitalized this once blightedand neglected urban neighborhood.

❚ Bank of America has made a substantialinvestment in California’s EnvironmentalRedevelopment Fund, a statewide resource tofinance the investigation and cleanup ofcontaminated properties that could beredeveloped.

❚ In Baltimore, Maryland, the Bank worked withmore than 60 partners to spur theredevelopment of an abandoned publichousing site, which now contains the fullyleased Parren J. Mitchell Business Center andthe Lexington Terrace mixed-income housingdevelopment, immediately adjacent todowntown Baltimore.

❚ Promoting collaboration among manystakeholders, Bank of America alsoestablished a partnership with the Urban Land

Institute to provide leadership training andnational policy forums on smart growthissues facing local communities.

❚ The Dynamic Metals project in southwestAtlanta, Georgia was also done in partnershipwith the Bank’s Community DevelopmentCorporation and the Historic DistrictDevelopment Corporation of Atlanta, aminority-owned corporation. Remediationcosts for this site were $700,000 over fivemonths, and it will become a $10 millionmixed-use building, including 9 first floorretail units and 39 residential units.

A Lasting Commitment to Smart GrowthIn May 1998, Bank of America formally launched a10-year, $350 billion commitment to communitydevelopment, exceeding all previous industrystandards. At the end of 2003, Bank of America hadalready fulfilled over half of this pledge,making over $232 billion available for smallbusiness financing, affordable housinginvestments, and consumer lending to promoteeconomic development and smart growth practices.In January 2004, the bank announced a new goalof $750 billion over ten years, beginning in 2005.

“We care about diversity, community development,and environmental responsibility because we knowfrom experience that doing the right thingcontributes to our success,” says Chairman andCEO Lewis.

“Community involvement is built into the nature of our business because we can only thrive where there

are thriving, healthy and growing communities.”

—Kenneth Lewis, Chairman and CEO, Bank of America

For more information, please contact Randy Muller, Vice President and Manager of Environmental Services at (404)607-4173 or Candace Skarlatos, Senior Vice President, Public Policy, by email at [email protected], orvisit www.bankofamerica.com/environment.

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The San Francisco Bay area has been one ofthe nation’s fastest growing regions sincethe end of World War II. Poor land use

planning that resulted in the development of primefarmland fueled sprawling development patterns,forcing workers to live farther from work centers,creating longer commutes, compounding trafficcongestion, increasing air pollution, and affectingcritical environmental habitats. When the Bay AreaCouncil was established in 1945 by 275 prominentemployers in the San Francisco Bay region, theyaspired to create a successful, affluent andinnovative region. Since that time, the Bay AreaCouncil is focusing on these issues by promotingregional public policy that addresses the challengesto economic well-being and quality of life caused bysprawling development.

The Bay Area Council developed the Bay AreaFamily of Funds to tackle issues such as affordablehousing, traffic congestion and employeerecruitment and retention in the urban core andinner-ring suburban neighborhoods. The Family ofFunds works to simultaneously reduce povertyand promote smart growth in existing urban areaswhere there is a persistency of poverty. The Familyof Funds, now worth more than $150 million,receives support from private investors, banks,foundations, and individuals, including Bank ofAmerica, Washington Mutual, and the HeronFoundation. Market feasibility studies wereconducted to demonstrate to investors that thecreation of the fund, and its investments in smartgrowth projects, would yield a sound return. Thesestudies highlighted the fact that real estatetrends called for mixed-use, mixed-incomedevelopments with access to a variety oftransportation choices. The Family of Fundsincludes the Bay Area Smart Growth Fund, a realestate development fund; the CaliforniaEnvironmental Redevelopment Fund (CERF), abrownfields clean-up fund; and the Bay Area

Equity Fund, a business equity fund to supportprojects with “double bottom line” returns(defined as investments producing both long-termmarket returns for investors and significant socialand environmental benefits for the community).

The Bay Area Smart Growth Fund invests inmixed-use and mixed-income real estatedevelopment projects that have potentialcommercial viability, but are not yet sufficientlyattractive to private developers and financiers. Toavoid the common problem of gentrification oflong-neglected areas, the Smart Growth Fundrequires that projects benefit, rather thandisplace, the people who live in theseneighborhoods. In August 2003, the SmartGrowth Fund, in partnership with the Marin CityCommunity Land Corporation, announced thepurchase of the Gateway Retail Center in theheart of Marin City, a small, predominantlyminority community of 2,500 whereapproximately 25 percent of residents live inpoverty. In addition, the Council’s CommunityCapitol Investment Initiative draws on the talentof the private sector, providing catalystinvestment funds to yield double-bottom linereturns with social and environmental priority toneighborhoods and their residents.

The California Environmental RedevelopmentFund is a bank-funded company that lends moneyfor the remediation of contaminated sites inCalifornia, and it has committed 25 percent of itsfunds for use in the Bay Area. Analysis inCalifornia showed that lack of financing has beena major barrier to brownfields redevelopment andhas indicated that there was a special niche for afund like CERF. The Bay Area Council is nearlyhalfway to its goal of raising $75 million tosupport the brownfields efforts of CERF. Forexample, CERF recently lent $1 million to a non-profit developer for site remediation and

The Bay Area CouncilFunding Fiscally Sustainable Growth

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construction, which will provide eight low- andmoderate-income housing units to families nowliving in substandard housing.

The Bay Area Equity Fund invests in growingbusinesses capable of substantial job creation inlow-income neighborhoods. The Equity Fund,which will make its first investment in 2004, worksto bring together traditional venture capitalistswith community and government leaders toimprove the overall sustainability of the Bay Arearegion by extending the reach of venture capital tolower-income areas.

A key component to the success of the Bay AreaCouncil is the extensive outreach done to connectbusiness leaders with community groups on smartgrowth principles. Multi-stakeholder councilmeetings sponsored by the Bay Area Council onsmart growth deals are showing the double

bottom line sought by these businesses. OtherBay Area Council efforts focus on ensuring thatcurrent residents are involved in the planningprocess for their neighborhoods.

Overall, the Bay Area Council is striving to providea “natural environment (that) is vibrant, healthyand safe, where the economy is robust and globallycompetitive, and where all citizens have equitableopportunities to share in the benefits of a qualityenvironment and a prosperous economy.” TheCouncil is reaching its goals by educating localand state elected leaders, providing a frameworkfor future investments in infrastructure, sharingthe best land management practices, and pursuingbroad public outreach and education. Although theCouncil’s smart growth investment funds arerelatively new and just beginning theirinvestments, these resources are bound to havelong-term positive impacts on the community.

The Bay Area Council has developed the $150 million Bay Area Family of Funds to address

issues such as affordable housing, traffic congestion and employee recruitment and retention

in the urban core.

For more information, please contact Andrew Michael at (415) 981-6600 or visit www.bayareacouncil.org.

26

When BellSouth, an Atlanta-basedtelecommunications corporation,announced an ambitious plan in 1999 to

consolidate 10,500 employees scattered in 25different suburban offices to three urban centersadjacent to transit, the decision was praisedlocally for its foresight. “Corporate Atlanta isfinally getting it,” wrote Atlanta Journal-

Constitution columnist Maria Saporta. Then-Governor Roy Barnes was effusive, “BellSouth’sinnovation is a model for responsible action. Thisplan means fewer cars, less pollution andcongestion, and a greater reliance on publictransportation. That’s good for Georgia.”

For Atlanta’s second-largest employer to undertakethis smart growth plan was good news for a regionwith three of the nation’s fastest growing countieson its exurban fringe. In the Atlanta metropolitanarea, one acre of land is consumed by developmentfor every two new residents who move to the region.Furthermore, metro Atlantans drive 34 miles perday per person – more than any other majormetropolitan area in the country.

Quality of LifeBellSouth Chairman and CEO F. Duane Ackermaninsisted that the socially and environmentallybeneficial aspects of the plan were secondary tothe business implications. At the time theconsolidation plan had been announced, thecompany had grown into a $23-billion-a-yeartelecommunications powerhouse. Meanwhile, theincreasingly dicey traffic situation led tounpredictable travel times to work and between itsscattered sites. Both costs and employeefrustrations had been growing.

With many of its leases set to expire, BellSouthbegan to consider consolidating its many offices.Consolidation was expected to improve productivity

by easing those frustrations and taking advantageof the “synergies” possible with proximity. In makingthe announcement, Ackerman said, “We havebusiness issues to fix, and, while doing that, we arelooking ahead to tomorrow to help with Atlanta’spollution problem and also help move our people.”

In 1998, about 6,500 of BellSouth’s roughly18,000 metro area employees worked in the cityof Atlanta. By 2004, up to 17,000 of thoseemployees will be located within the Interstate-285 beltway surrounding the city. In 1998, only 30percent of workers had access to transit. Thatwill grow to more than 80 percent when the planis fully implemented in 2004.

The company built 2.7 million square feet of officespace in six buildings, two at each of the threesites – Lindbergh, Midtown, and Lenox Park. At theLindbergh site, BellSouth’s broadband unit is theprime tenant in a transit-oriented developmentbuilt on ground that was formerly a mass transitparking lot. The BellSouth towers overlook theLindbergh MARTA (Metropolitan Atlanta RapidTransit Authority) Station, a regional rail system.In Midtown, BellSouth’s network services arelocated across the street from the North AvenueMARTA Station, which can be accessed from theBellSouth Center building. In Buckhead, the city’ssilk-stocking district on the north side, a mixed-use development on a former golf course about amile from the Lenox MARTA Station houses thecompany’s customer and marketing operations. Ashuttle service transports employees to theMARTA station. All three sites have a variety ofhousing options close by to encourage workers tolive within walking or biking distance of the office.

Developing the Consolidation PlanIn devising its so-called “Metro Plan,” BellSouthconsidered several key questions: What is the best

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design for the telecom workplace of the future?What is our part in helping Atlanta’s congestionand air quality problems? Where do our employeeslive, where are they likely to live in the future, andhow will they get to work?

The company began by plotting the geographicaldistribution of its employees’ home addresses ona map. As they suspected, workers werecommuting from every direction, but a majorityof employees lived slightly to the north ofdowntown Atlanta. However, the temptation to goto the city’s northern fringe was tempered by twoadditional factors: (1) the tenuousness ofhighway capacity and lack of rail service beyondthe downtown core and (2) the knowledge thatmany of the young, highly skilled knowledgeworkers they hoped to attract preferred an urbanenvironment.

Attracting and retaining employees, travel times,and quality of life issues all factored intoBellSouth’s decision on where and how toconsolidate. For instance, at the Midtown site, thebuildings are built to the sidewalk, with a smallerscale façade, so that the office towers are set backand do not overshadow pedestrians below. Apocket park and plaza are incorporated into thebuilding design. BellSouth’s redesign of this areainto a transit-oriented development represents anopportunity to replicate and extend the moderate-

density design of Midtown north along thecommuter rail line.

Encouraging Mass TransitBy design, the three business centers do notprovide parking for the entire workforce. Instead,based on employees’ preferences, BellSouthconstructed 3,000 parking spaces at four end-of-line MARTA transit stations. According toBellSouth spokesman Joe Chandler, “We believethat as time goes on, the ability to have a morepredictable trip to work will come to be seen as anadvantage to the workers and to the company, inthe form of better productivity.”

On any given day, BellSouth expects about a third ofits employees will arrive by MARTA. Employees whouse MARTA will be assured of a parking space at oneof the four remote parking facilities, which will befree and secured. Those who park at the corporatecenters will expect to pay up to $60 a month for theprivilege. The company also heavily subsidizesMARTA passes, which cost about $50 per month, butare sold to employees at $20 on a pretax basis.

Richard Gilbert, the lead director of the MetroPlan, is delighted, “The move has produced all thebenefits anticipated. The new facilities arefantastic, and we are proud to be helping toimprove air quality and reduce congestionin Atlanta.”

“We have business issues to fix, and while doing that, we are looking ahead to tomorrow to help

with Atlanta’s pollution problem and also help move our people.”

— BellSouth Chairman and CEO F. Duane Ackerman

For more information, please contact Richard Gilbert at (404) 249-5766.

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By 2020, the population of Salt Lake Cityand the surrounding area is expected toincrease by one million residents.

Nevertheless, Utah’s business leaders and electedofficials are helping the region to prepare to facethese growth challenges. In fact, through theEnvision Utah partnership, they have developedmultiple scenarios to manage the demands oninfrastructure and natural resources that thispopulation expansion will bring to the GreaterWasatch Area.

Envision Utah is an innovative public/privatepartnership that promotes economic vitality whileprotecting quality of life in the metropolitan SaltLake City region. Recognizing that increaseddevelopment is inevitable, this coalition of businessleaders, elected officials, and citizens set out togauge the Greater Wasatch communities’ concernsregarding growth. Citizens evaluated differentdevelopment scenarios and a majority preferreddevelopment scenarios with smaller lot sizes, slowland consumption, multiple transportation choices,and low infrastructure costs.

By examining local public opinion in this way andworking closely with local governments, planningorganizations, and state agencies, Envision Utah ishaving a significant impact on regional landmanagement decisions. Since 2002, Envision Utahhas helped 36 communities adopt newtransportation approaches and implement qualitygrowth principles. The organization is also anactive voice on the Transit 2030 Committee,formed in 2002 to review and develop the state’sLong Range Transportation Plan.

“Without Envision Utah and a high level ofcommunity cooperation and involvement, Utah willcontinue to move forward on an uncharted course.Preparing to meet future challenges will help us

preserve the quality about living in Utah and mayeven help us avoid serious and costly pitfalls,” saysRobert J. Grow, Founding Chair of Envision Utahand former COO of Geneva Steel Mill.

Identifying Transportation Choicesthat Promote Livability andEconomic GrowthPartnering with Utah’s Department ofTransportation, the metropolitan planningorganization (MPO) for the 10-county GreaterWasatch Area, Wasatch Front Regional Council,several local governments, and other concernedstakeholders, Envision Utah has continuedengaging communities in a dialogue about whattypes of transportation choices they would like tohave in 2030 and how land use planning can helpto achieve these goals.

Throughout 2003, Envision Utah held sixworkshops in communities located along theMountain View Transportation Corridor, which isthe last corridor that could provide a second majortransportation connection between Salt Lake Cityand northern Utah counties. According to theGovernor’s Office of Planning and Budget, thepopulation in this area is expected to increasefrom 267,000 to 635,000 and employmentopportunities will rise from 82,000 to 268,000 by2030. The current transportation network isclearly inadequate to support this projectedgrowth and commercial expansion. Envision Utah’sworkshops have helped these communitiesunderstand the potential economic impacts ofvarious land use choices and developtransportation plans that can meet their needs.

Having previously assisted Layton, South SaltLake, and Murray, Envision Utah is now helpingadditional communities located along existinglight-rail and proposed heavy-rail commuter

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lines to prepare comprehensive transit-orienteddevelopment plans. In West Valley City, thestate’s second largest metropolitan area,Envision Utah helped integrate transit-orienteddevelopment into the city’s master plan forfuture commercial development at theirproposed 3500 South TRAX light-rail station. InSandy, Envision Utah is working with keystakeholders to develop the area surroundingtheir 9400 South TRAX light-rail station in away that ensures continued economicdevelopment in the immediate vicinity andenhances the overall quality of life for residentsand employees in the area.

As a member of the Transit 2030 Committee,Envision Utah has been highly involved inassessing regional transit needs, evaluatingproposed projects, identifying potential fundingresources, and expediting the constructiontimetable for approved new projects. EnvisionUtah has been granted membership in theWasatch Front Regional Council andrepresentation on the Metropolitan PlanningOrganization’s Regional Growth Committee. Mostimportantly, Envision Utah has developed acollaborative relationship with the Wasatch FrontRegional Council and continues to have a directeffect on long-range transportation planningin the region.

Realizing Tangible Results andIncreased Commercial ActivityIn June 2003, Envision Utah held its third annualGovernor’s Quality Growth Awards to furtherpromote the benefits of transit-orienteddevelopment. Former Governor Mike Leavitt, nowthe Administrator of the U.S. EnvironmentalProtection Agency, bestowed the GrantAchievement award to the Utah Transit Authorityfor its rail corridor preservation. Other recipientsinclude Midvale Junction, a major land/leasedevelopment that includes 106 affordable housingunits and 8,000 square feet of ground-floor retailspace adjacent to a light-rail station, andEmigration Court, a retail and residential infilldevelopment in Salt Lake City with 428 apartmentsand 5,000 square feet of commercial space withinwalking distance of a key downtown transit center.

Given this record of success, it is no surprise thatbusiness leaders across the state applaud EnvisionUtah’s sensible approach to long-range land useplanning. Spencer Eccles, Chairman of Wells FargoIntermountain Banking Region and EnvisionUtah’s Honorary Co-Chair, says, “I’ve been a bigsupporter of Envision Utah because it supportsproperty rights and local control while helpingcitizens, developers and local elected officials seewhat ideas can enhance our quality of life and stillmaintain a vibrant economy.”

For more information, please contact Lorena Riffo-Jenson, Esq., at (801) 303-1452 or by email at [email protected] or visit www.envisionutah.org.

“Without Envision Utah and a high level of community cooperation and involvement, Utah will

continue to move forward on an uncharted course. Preparing to meet future challenges will help us

preserve the quality about living in Utah and may even help us avoid serious and costly pitfalls.”

—Robert J. Grow, Founding Chair of Envision Utah and former COO of Geneva Steel Mill

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Known worldwide for his tremendous abilityon the basketball court, Earvin “Magic”Johnson is now scoring profits and

delivering assists to underserved communities byinvesting in new business ventures in America’sinner cities. Through the Johnson DevelopmentCorporation and the related Canyon-JohnsonUrban Fund, Magic and his partners aredemonstrating the many financial and quality oflife benefits of pursuing a smart growth approachto development that focuses on investing inentertainment, housing, retail, and restaurants inAmerica’s long-neglected urban neighborhoods.

In the 1980s and early 1990s Magic Johnson ledthe Los Angeles Lakers to five NBAChampionships, appeared in 12 all-star games, wasvoted the league MVP three times, and won anOlympic gold medal at the 1992 Barcelona games.When he retired from professional basketball,Magic Johnson sought to use his wealth, notoriety,and business acumen to revitalize underservedurban communities. In 1993, the JohnsonDevelopment Corporation (JDC) was formed to“serve as a business stimulus fostering localeconomic growth and financial empowerment inlong-neglected minority urban and suburbanneighborhoods.”

JDC recognizes that over the past 20 years, majorretailers, restaurants, supermarkets and developershave helped encourage sprawl by abandoningventures in urban areas and relocating in rapidlygrowing and expanding suburban communities. As aresult, urban residents were forced to travel tosuburban areas for shopping, entertainment, andother services. As some suburban communitiesbegin to impose land use restrictions to slowunchecked growth, the company has keenly notedthat urban areas are once again a financially wiseand socially responsible investment.

The company’s first venture was a shopping centerin west Las Vegas. In 1994, JDC opened its first moviemultiplex in an underserved section of Los Angeles.The Magic Johnson Theater proved to be wildlysuccessful, and the company has since openedmultiplexes in four more minority communities inTexas, New York, Georgia, and Ohio. The theatresserve as a business stimulus, fostering localeconomic growth, job development, and financialempowerment in the communities they serve.

JDC parlayed its success and was able to convinceStarbucks to join them in a partnership to develop“Urban Coffee Opportunities” in disadvantagedareas. To date, JDC is the only outsider to form apartnership with the Starbucks Corporation. JDCnow owns 42 Urban Coffee Opportunity/Starbuckscoffee shops, 90 percent of which are located inminority urban communities. The shops haveproven to be very profitable and have becomesocial centers in their communities. JDC has alsojoined with the Carlsons Restaurant Company toopen Magic Johnson’s TGIFridays in Atlanta,Georgia and Los Angeles, California.

The Johnson Development Corporation is now a$500 million company. In 1999, JDC joined withCanyon Capital Realty Advisors, a moneymanagement firm based in Los Angeles, to formthe Canyon-Johnson Urban Fund. The mission ofthe fund is to invest in the acquisition,development, and redevelopment of urban areaswhile fostering employment, shopping, andentertainment opportunities for underservedresidents. According to Johnson, “the viability ofinner city neighborhoods and their surroundingmetropolitan areas is a critical issue to building astrong America. Canyon-Johnson will deploynationally the expertise and capital necessary toredevelop these urban neighborhoods, providingjobs and business opportunities.”

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The Canyon-Johnson Urban Fund is now one of thelargest urban real estate investment firms in thecountry and is prepared to facilitate the investmentof over $1 billion in America’s distressed urbanareas. It is currently pursuing several smart growthredevelopment projects in inner city neighborhoodswith mixed incomes where the demand to live andshop is not met, including:

❚ Midtown Center in Milwaukee, Wisconsin:Canyon-Johnson is partnering with BoulderVenture to redevelop the Capital Court Mall indowntown Milwaukee. In the early 1990s, theurban mall had declined and major tenantssuch as Target and Sears abandoned the site tofocus on stores outside the urban core. Canyon-Johnson recognized that the populationdensity around the mall was five times themetropolitan Milwaukee average with nearlydouble the purchasing power of themetropolitan average, but the community hadonly one-third of the retail choice. With morethan half of the mall redeveloped already andrenamed Midtown Center, the development’sanchor tenants, Wal-Mart and Pick-n-SaveSupermarket, are exceeding sales expectations.The project has generated 1,500 new jobs andsignificant tax revenues for the community.

❚ Sunset and Vine in Hollywood, California:Fifty years ago, the corner of Sunset and Vinewas a key location during Hollywood’s goldenera. It housed the ABC Network, CapitolRecords, and Merv Griffin Studios, and itmarks the start of Hollywood’s “Walk ofFame.” However, as the surrounding

neighborhood began to decline, the site wasabandoned and set on fire by homelessdrifters in the 1990s. Canyon-Johnson is nowleading an effort to turn the site into amodern urban village with housing,neighborhood retail and historic preservation.The project is the largest new residentialproject undertaken in Hollywood in 50 years.

❚ Park Place Condominiums in Brooklyn, NewYork: Canyon-Johnson has launched a mixed-use development in Brooklyn’s Park Slopecommunity with 47 condominiums, street-level retail space, and an underground parkinggarage. The proposed eight-story building isbeing built on the former site of the BrooklynTabernacle auditorium and will integrate thedesign of the auditorium into the building’sfacade. The project is a model of smartgrowth, located near two subway stops andthe historic Prospect Park and within walkingdistance to the many retail businesses andrestaurants on Seventh Avenue, the BrooklynZoo and the Botanical Gardens.

The success of the Johnson DevelopmentCorporation lends support to one of the coretenants of smart growth – that businesses do nothave to continue to build further and furtheroutside of the urban core to be profitable. Assuburban communities begin to implement landrestrictions to rein in sprawling developments andtheir negative impacts, Magic Johnson’s companyis leading an effort to remold the business world’sview of urban communities as attractiveinvestment opportunities.

For more information, please visit www.johnsondevelopmentcorp.com.

“The viability of inner city neighborhoods and their surrounding metropolitan areas is a critical issue

to building a strong America.”

—Earvin “Magic” Johnson, CEO, Johnson Development Corporation

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Since 1980, the Atlanta metropolitan areahas doubled in population, making it hometo more than half the residents of the State

of Georgia. With this dramatic growth has comeunintended consequences, such as reduced openspace, sprawling development, diminished air andwater quality, and traffic congestion that ranksamong the worst in the nation. Over the next 25years, Atlanta’s population is expected to increaseby an additional 2.5 million.

According to the Census Bureau, Atlanta currentlyhas the least dense urbanized area of the nation’stop 15 metropolitan areas. This low-densitydevelopment has strained the capacity of theregion’s infrastructure, and analysis hasincreasingly demonstrated that further investmentin new infrastructure investments alone will notpreserve the quality of life and economiccompetitiveness of Atlanta. The low density of theregion’s growth patterns must be addressed.

Recognizing the range of impacts unmanagedgrowth can have on economic vitality andquality of life, the Metro Atlanta Chamber ofCommerce launched a multistakeholder effortto encourage development that makes use ofexisting infrastructure, protects theenvironment, and invigorates the metropolitanregion. “I think there’s great concern that thekind of growth we’ve experienced, whileeconomically successful, is going to threatenour quality of life and [will], in turn, threatenour economic success,” said Metro AtlantaChamber President Sam Williams.

The Metro Atlanta Chamber’s leadership onregional coordination in planning for growth haspaid-off, leading to the creation of the GeorgiaRegional Transportation Authority (GRTA) in 1999and the Metro Atlanta Quality Growth Task Forcein October 2003.

Regional Transportation PlanningAs Atlanta’s population grew exponentially inrecent decades, unmanaged growth led to low-density housing and employment centersstretching out along once rural highways andfarmland. Lack of appropriate transportationalternatives left much of the area’s populationdependent on cars to get around. As of 2001,Atlanta residents drove an average of 34 miles aday, more than anywhere else in the country. Morethan 50 percent of the area’s workforce commutesto a different county from the one where they live.

Apart from the economic costs associated withdelay, fuel consumption, and loss of workforceproductivity, these trends also threaten publichealth. Atlanta’s smog level is among the worst inthe nation, and the city was designated as beingin severe non-attainment with federal air qualitystandards for ground level ozone. In the late1990s, the region’s failure to have atransportation plan that conformed to clean-airstandards prompted the U.S. EPA to shut offfederal funding for highway and roadconstruction until a transportation plan thatconformed to clean air standards was adopted.

Atlanta’s business leaders saw the writing on thewall. According to Kevin Green, Vice President ofEnvironmental Affairs for the Chamber, “When theregion fell out of conformity with national airquality standards, threatening our transportationfunding, this was the train wreck that really gotthe attention of the business community.”

The Metro Atlanta Chamber of Commerceimmediately convened the Metropolitan AtlantaTransportation Initiative, to identify solutions tothe region’s infamous traffic congestion. Theinitiative recommended overhauling thetransportation planning process and strengtheningpublic and private sector involvement in crafting

Metro Atlanta Chamber of CommerceCEOs Lay Tracks for Smart Growth Transportation Planning

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transportation solutions. In particular, theInitiative’s report recommended the creation of astate authority with broad powers to deal withtransportation and development issues.

Cited as a key legislative priority for then-Governor Roy Barnes, the 15-member GeorgiaRegional Transportation Authority (GRTA) wascreated in spring 1999. GRTA was charged withplanning and implementing a multimodaltransportation system that will improve mobilityand reduce congestion; encouraging land usepolicies that make efficient use of existinginfrastructure; and improving overall air quality.GRTA is currently developing the Regional TransitAction Plan to guide improvements to Atlanta’stransit system over the next 30 years. One notableaccomplishment of GRTA is the creation of anenhanced regional express bus system for 11counties within the Atlanta metropolitan area.Counties pay the operating costs for the service inreturn, GRTA purchases the buses and makesnecessary road improvements.

Linking Transportation and Land UseAlthough GRTA and the Atlanta RegionalCommission are addressing the manytransportation needs of the region, businessleaders also recognize that building anddevelopment patterns must change toaccommodate the area’s projected growth withoutreducing quality of life. “You can’t separatetransportation and land use, because it’s achicken-and-egg question,” said Sam Williams.“The whole issue of [traffic] congestion is abouthow we accommodate future growth.”

With clear goals in mind, the Metro AtlantaChamber convened the Quality Growth Task Force, agroup of 47 leaders representing local government,state government, business, academia, civic leaders,and advocacy groups. In the Task Force’s firstmeeting in October 2003, members laid out adetailed plan to: 1) select specific growth strategiesand focus on making them action-oriented; 2)identify policies and tools necessary to achievethese key strategies in ways the market wouldsupport; and 3) marshal the business, public andpolitical momentum necessary to drive the requiredchanges to the region’s current growth trends.

By its third meeting, the Chamber had hiredtransportation and land use consultants tomodel the effect of different land use patternson transportation performance and landconsumption. The results of the modeling wereeye opening. By directing a greater share offuture growth into the region’s existing centersand transportation corridors, the amount oftime residents spend stuck in traffic in 2030could be less than it is today, even afteraccommodating an additional 2.3 millionresidents. At the same time, the region couldaccommodate employment growth while saving107,000 acres of green space.

“No region exists in an equilibrium. It is eithergetting better or getting worse. The goal of theQuality Growth Task Force is not to limit growth.It is to better plan for inevitable growth, takingcare to preserve the desirability of the regionfor our employers, their workforce, and families”said Kevin Green.

For more information, please contact Kevin Green, Vice President, Environmental Affairs, Metro Atlanta Chamber ofCommerce at (404) 586-8544 or by email at [email protected].

“The goal … is not to limit growth. It is to better plan for inevitable growth, taking care to preserve

the desirability of the region for our employers, their workforce, and families.”

—Kevin Green, Vice President, Environmental Affairs, Metro Atlanta Chamber of Commerce

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When developer James Bradley first cameto the New Jersey shoreline in 1869, hefound a beautiful, undeveloped beach

within close range of both Philadelphia and NewYork City. He quickly saw its potential as avacation resort and purchased the property. Soonhe was building the town’s original boardwalk.

By the 1930s, Asbury Park was one of New Jersey’spremier resort destinations, drawing visitors tothe beach, the boardwalk, and its manyentertainment venues. The town boasted manygrand buildings, with names like the Santanderand the Berkeley-Carteret, and it was famous forits bathing pools, the paddleboats on Wesley Lake,and the big band music that filled the air.

Like many resort towns, however, Asbury Park fellinto decline after World War II. By the 1970s, raceriots and economic decline sent the town into adownward spiral of disinvestment. Thanks to thetitle of Bruce Springsteen’s debut album,Greetings from Asbury Park, NJ, the town wouldeventually come to symbolize the struggle toreclaim a faded glory.

Sowing the Seeds of ChangeIn 1994, New Jersey identified Asbury Park as apriority area for smart growth and reinvestment.The town was designated an Urban Enterprise Zone,which provides a series of state tax benefits,including a 50 percent reduction in the state salestax. In 2002, the town approved a 10-year, $1.2 billionwaterfront redevelopment plan proposed by OceanFront Acquisitions. The plan calls for up to 3,000new townhouses and condominiums and as much as450,000 square feet of commercial space. Toaccelerate redevelopment, the New JerseyDepartment of Community Affairs even establisheda local office to speed the processing of permitsand provide other assistance.

In the face of such a massive project, the town’saging infrastructure presented a major barrier toredevelopment. Although Asbury Park may havebeen the first seaside town in America to install asewer system and the second town in the entireUnited States to build an electric trolley, these were19th century advances. By the end of the 20thcentury, the eroding tax base had made it nearlyimpossible to update and maintain the publicinfrastructure necessary to support redevelopment.

More recently, the state has been focusing onplanning for future growth in the state and thosestatewide efforts have included the redevelopmentof urban areas. In conjunction with that focus, theNew Jersey Board of Public Utilities (NJBPU) hasbeen working on a pilot program where utilityinfrastructure can be upgraded through theinstallation of pipelines with the increasedcapacity needed to serve anticipated growth.

Partner in the CommunityNew Jersey Natural Gas (NJNG) has been an activepartner in the rebirth of Asbury Park for manyyears through its involvement in variouscommunity initiatives and programs that supportthe educational system and local economy. Forexample, by partnering with local organizationsand schools, NJNG works to provide properties forfirst-time homebuyers, improve the technologyavailable in the public libraries, and support amiddle school mentoring program.

Now, NJNG is putting its resources into urbanrevitalization. In support of the state’sredevelopment goals and plans for the futuregrowth of the state, NJNG submitted a proposal in2003 to the NJBPU and the Division of theRatepayer Advocate (RPA) to initiate an innovativeprogram to provide the necessary infrastructurein Asbury Park and in the nearby community of

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Long Branch to spur redevelopment. In AsburyPark, this means replacing 15.6 miles of low-pressure, cast iron natural gas mains at a cost of$7 million. To support these smart growthexpenditures, the NJNG has asked NJBPU to allowthe company to increase customer prices byapproximately 0.5 percent annually to recover thecompany’s infrastructure investment through thispilot program.

The smart growth pilot program proposed byNJNG to the NJ BPU and the RPA would providefor new infrastructure that typically requires alarge capital investment. It puts NJNG’s resourcesand effort into community revitalization, a betterapproach than focusing on infrastructureconstruction in open and agricultural spaces. Ifapproved, this project would allow NJNG to

provide service to its new and existing customersin both these towns more quickly and efficiently,hopefully speeding up the pace of redevelopment.If this program is approved, all of the partners —the state, the NJBPU, the RPA, NJNG, Asbury Park,and Long Branch — will have created an economicenvironment where land use planning,regulations, and public infrastructure are allcoordinated to help encourage private sectorredevelopment.

Discussions among NJNG, the NJBPU, and the RPAare in progress and resolution is anticipated soon.If this pilot project is successful, NJNG plans toexpand the program to other older, urbancommunities in its service territory that wouldbenefit from this innovative approach to growthand redevelopment.

“The boarded up windows/ The empty streets/ While my brother’s down on his knees/ My city of ruins/

My city of ruins/ Come on, rise up!”

—Bruce Springsteen, “My City of Ruins” (from The Rising)

For more information, please contact Roseanne Koberle from New Jersey Resources at (732) 938-1112 or by [email protected].

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Once known throughout Chicago for fineboutiques, the South Shore neighborhoodfell victim to steady disinvestment during

the 1960s. A symptom of the area’s economicdecline was the South Shore Bank, which wasfloundering in the face of tremendous economicand demographic changes.

In 1974, however, four friends took over the tinySouth Shore Bank (now ShoreBank) and sought tobuild a powerful financial institution. They createda strategy to enter markets where traditionalbanks were afraid to invest, and to turn around theSouth Shore and other low-income urbanneighborhoods by giving local businesses thecapital they need to flourish.

Building a New Way of BankingWithin two years, ShoreBank was growing. Itbegan investing in small businesses, mortgages,and the rehabilitation of apartment buildingsthroughout the South Shore neighborhood.Through these investments, the bank began toalmost single-handedly rebuild the neighborhood’shousing stock and profit from a segment of themarket in which traditional lenders refused tocompete. As its assets expanded, ShoreBank’scapacity to finance innovative redevelopmentprojects grew, and, by the 1980s, the bank wasattracting national attention. America’s firstcommunity development bank, ShoreBank haddeveloped a competitive advantage in marketsthat traditional lenders had ignored.

ShoreBank also created a series of affiliateorganizations, including a minority venture capitalfund, a real estate development firm, and aworldwide consulting firm. These profitableentities empowered ShoreBank to provide anexpanding network of financial services todistressed communities.

As a “triple bottom line” company, ShoreBankevaluates its investment performance not only onearnings, but also on its ability to revitalizepriority communities and create a healthierenvironment. In the Pacific Northwest andMichigan’s Upper Peninsula, ShoreBank links theeconomic well-being of communities andenvironmental health, particularly communitieswhose economies are based on logging, fishing ormining. In these communities, ShoreBank fosterseconomic growth by assisting businesses thatdiversify the local economy, provide local jobs, anduse natural resources in sustainable ways.

Investing in Existing InfrastructureIn urban areas, ShoreBank places emphasis onrenovating existing structures, mainly nearpublic transportation, to increase the local taxbase and shift perceptions that theneighborhood is in decline. Rehabilitatingresidential real estate not only changes theperception of that community, but, as the valueof the rehabilitated property increases, theowners’ net worth also increases.

In addition, ShoreBank finances the cleanup andredevelopment of brownfields into vibrantcommercial and residential areas. They have helpedurban neighborhoods address the abandoned gasstations and manufacturing sites that lie vacant,degrade the tax base, pose health risks, depress thevalue of surrounding real estate, and add to theperception of neighborhood decline.

Community Success ANDFinancial SuccessAlthough ShoreBank rarely uses the words “smartgrowth” in discussing their financing interests, byinvesting in existing communities, diversifyingthe local economy, cleaning up brownfields, andsupporting local homeowners and businesses, it

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has helped to create communities that arewonderful places to live, work, and play.

Thirty years after it was taken over by four friends,ShoreBank is a profitable and powerful agent ofeconomic change. With more than $1.4 billion inassets, it offers loans for multifamily, commercial,and individual home projects; provides financialmanagement to companies, nonprofitorganizations, and religious institutions; andprovides a wide array of traditional retail bankingservices. Recently, ShoreBank’s lead bank, based inChicago/Detroit, was listed in Independent Banker

magazine as 17th for its return on equity for bankswith over $1 billion in assets. In fact, the return onequity of their lead bank often rivals that oftraditional banks.

As Mary Houghton, one of the founders ofShoreBank reminds us, “If you want yourcommunity to grow steadily over the next 20years, invest in small businesses andrehabilitation of real estate—support localentrepreneurial activity that builds the basis of

your community’s economy. Think long-term, notshort-term.”

With offices in Illinois, Michigan, Ohio, Oregon,and Washington, ShoreBank has become anational force for economic and, increasingly,environmental change. Its affiliated consultingbusiness, ShoreBank Advisory Services, nowoperates in international markets such asRomania and the Republic of Georgia. Even moreimportantly, the ShoreBank has paved the way fora new generation of community developmentfinancial institutions (CDFIs), which are enteringuntapped markets and unlocking previouslyignored economic value. As of 2001, there weremore than 500 CDFIs operating around thecountry, managing assets of more than $8 billion.The net loan loss rate for these companies hasbeen less than one percent. FollowingShoreBank’s lead, CDFIs are becoming a powerfulagent of community change, revitalizingneighborhoods and making them attractivealternatives to expensive new growth on thesuburban fringe.

“If you want your community to grow steadily over the next 20 years, invest in small businesses and

rehabilitation of real estate – support local entrepreneurial activity that builds the basis of your

community’s economy. Think long-term, not short-term.”

—Mary Houghton, ShoreBank Founder

For more information, please contact bank co-founder Mary Houghton by email at [email protected] or visitwww.sbk.com.

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Rural communities have a unique challenge:embracing new growth and jobs whileprotecting the very qualities that make

these communities attractive. In the ruralmountainous areas of eastern California andwestern Nevada, the Sierra Business Council ishelping small communities meet this challenge.

The economic boom of the 1990s placed greatstrain on the Sierra Nevada region, bringing newresidents and overwhelming local planningdepartments with new development proposals.Growth for this region shows no sign of abating,and three of the fastest growing counties inCalifornia are in the Sierras. The picturesquenatural surroundings have made tourism andsecond home development the major economicdrivers, whereas traditional industries such asmining and timber have declined dramatically .Although growth brings many advantages to thearea, it also can undermine rural communities andtheir quality of life. Unchecked sprawl will bringtraffic congestion, a loss of open space, elevatedhousing costs, and the degradation of air andwater quality to rural and small communities.

At a time when many communities in the regionbegan to recognize the need to plan for growth, theSierra Business Council (SBC) was launched in 1994.The SBC works with more than 500 businesses,agencies, and individuals to “secure the social,natural, and financial health of the Sierra Nevada.”The SBC publishes books and develops tools that caninform decision makers about the threats andopportunities facing the region. Their most recentpublication, Investing for Prosperity, features tacticsfor building vibrant rural communities withdiversified economies, all of which are backed up by40 real-life case studies of people and communitieswho have achieved genuine success in rural settings.They also publish the Sierra Nevada Wealth Index, an

analysis of the social, natural, and financial capitalthat sustain the Sierra region. The Index helpsbusiness owners and community leaders trackimportant trends regionwide, from the quality ofschools to health care access, water and air quality,job growth and personal incomes. The SBC and itsmembers throughout the Sierras are committed tofinding solutions that maintain economicrevitalization and environmental quality in the region.

Key Partnerships Preserve RanchlandThe SBC has launched an innovative partnership topreserve the health of rural ranches and nativespecies in the Sierra Valley, the largest alpine valleyin California. Over the past two years more than20,000 acres have been protected throughconservation easements mostly by working withranchers to help protect their way of life. Partneringwith ranchers and environmental organizationssuch as the Feather River Land Trust, the CaliforniaRangeland Trust, and The Nature Conservancy, theSBC is demonstrating that the economic vitality ofranches is a critical component to maintaining thebeauty and environmental health of the region andits many wetlands.

Old Timber Mills May Provide New JobsThe timber industry has been a stronghold in theSierra Nevada region for over 150 years, but mostmills have closed in recent years. The SBC isworking to help both Truckee and Loyaltoncapitalize on old mill sites. In partnership withthe town of Truckee and the California Center forLand Recycling, the SBC developed a successfulfunding request for a brownfield redevelopmentproject on the old Truckee Mill site and railyard.In November 2002, the town was awarded$350,000 through California’s Pollution ControlFinancing Authority to plan for development andnegotiate with Union Pacific, the current owner.Truckee was the only rural community to receive

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a grant. This development project will contributeto a more vibrant downtown, promote affordablehousing, generate more tax revenue for the town,and provide an alternative to further expansioninto natural habitat. A similar process isunderway in Loyalton to help revitalize theeconomy by securing an improved sewage systemthat would enable a mill to be converted into asmall business park.

Although smart growth is usually associated withurban areas, its principles are equally important to

“The Sierra Business Council is to be congratulated – and heeded – for its thoughtful work in trying

to measure and safeguard the Sierra’s resources. Clearly, this is a business group that knows how its

bread gets buttered.”

—Sacramento Business Journal

For more information, please visit www.sbcouncil.org or call (530) 582-4800.

rural areas. As these communities continue togrow, it is critical that they prepare for the impactsof growth and do not lose the quality of life andopen space that make them attractive places tolive. The SBC is helping the rural communities inthe Sierra Nevada protect their unique character,historic town patterns, and rural livelihoods, whileencouraging increased diversification of the localeconomies. The SBC, with its publications andongoing programs, is a stellar model for assistingsmall and rural communities with growthchallenges.

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In Silicon Valley, business leaders recognizethat quality of life matters when you arestriving to attract and retain a talented

workforce as well as generate a vibrant economy.The Silicon Valley Manufacturing Group (SVMG),first profiled for its efforts in the 1999 Profiles of

Business Leadership on Smart Growth, hascontinued to campaign vigorously on behalf ofquality of life issues, including regional growthchallenges. Representing 180 of Silicon Valley’smost respected employers, including Bank ofAmerica, General Electric, and MicrosoftCorporation, SVMG has a strong track record ofdeveloping partnerships to tackle challengingregional issues such as transportation, housing,education, energy, and the environment.

Affordable Housing Is CriticalBetween 1990 and 2000, residential rent costs inthe Silicon Valley increased at a rate that was morethan double that of median household incomegrowth. Although rental rates have begun to fall inrecent years as the economic growth in the area hascooled, it is estimated that nearly 170,000 new jobswill be created between 2003 and 2010, creating theneed for more than 56,000 new housing units. Asthe economy rebounds, the rental market isexpected to resume an upward trajectory.

Silicon Valley businesses recognize thepotentially damaging effects that a lack ofaffordable housing in a region can create. Withaffordable housing in the area difficult to find,many workers in Santa Clara County are forced tolive far from their workplace and commute threeto five hours a day. Longer commutes not onlyincrease air pollution, they also create trafficcongestion, increase employee stress, andundermine worker productivity. Unreliablecommutes also affect morning meetings andbusiness meetings outside the office.

Because housing opportunities are limited,companies must increase their costs by payingmore in salaries and incentive packages to attractand retain employees. Furthermore, workers who arecritical to the community, such as teachers, nurses,entry-level physicians, firefighters, police officers,and transit operators, have difficultly findingaffordable housing the Valley. As a result, key socialservices suffer and some businesses choose torelocate outside the region.

Unique Trust Funds Provide HousingOpportunities for Local WorkforceTo tackle the housing shortages in the region,SVMG has taken many proactive steps. Theorganization has a Housing & Land Use Committeethat is currently co-chaired by Larry Burnett(Cisco Corporation) and Gregory Hines (SolectronCorporation). The Committee works to expand thesupply of affordable homes; encourage compactdevelopment near transit and services; andadvocate for stable funding streams for housingat the local, state, and federal level.

In addition, the Housing Leadership Council, anexecutive-level policy development partnershiporganized by SVMG, has helped launch a localhousing trust, Housing Trust of Santa ClaraCounty (HTSCC). The HTSCC is a unique revolvingloan fund and grant-making program thatencourages the development of affordablehousing projects to promote smart growthprinciples. “By having affordable housing close toemployment, companies can improve employeemorale, productivity and commitment toexcellence,” says Daniel Perez, Corporate VicePresident and Chief Administrative Officer forSolectron Corporation.

Using a thorough evaluation process, the HTSCC isthe only housing trust in the country that ties

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each dollar it loans to smart growth criteria toensure that homes are linked to transit, schools,parks, and other vital services. Unlike the other 140housing trusts nationwide, the HTSCC was createdentirely through voluntary donations—not throughadditional fees or taxes on local citizens. Morethan half of its resources are derived from theprivate sector, with corporate donations fromAdobe, AMD, Applied Materials, Cisco Systems,Hewlett-Packard, Intel, and other corporationsbased in Silicon Valley.

Leveraging both corporate and communityinvestments, the HTSCC has exceeded its initial$20 million investment goal. As of December 2003,the Trust has leveraged investments of over $400million for affordable housing projects and helped

“By having affordable housing close to employment, companies can improve employee morale,

productivity, and commitment to excellence.”

—Daniel Perez, Corporate Vice President and Chief Administrative Officer for Solectron Corporation

For more information, please contact Laura Stuchinsky by email at [email protected] or visit www.svmg.org orwww.housingtrustscc.org.

create 2,778 housing opportunities. Specifically,852 loans were granted for single-family, first-timehome ownership; 11 loans were made for thecreation of 741 multifamily rental units; and 524new units were built for people who are homelessor have special needs across Santa Clara County.Looking forward, the SVMG is committed toestablishing a consistent revenue stream for theHTSCC. They are also supporting efforts for asimilar housing trust in San Mateo County.

By taking action to increase the availability ofaffordable housing, SVMG is seeking to maintainSilicon Valley’s high employment rate and promoteeconomic growth, while also preserving thequality of life and healthy environment that is thehallmark of the region.

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For more than 25 years, Struever Bros. Eccles& Rouse, Inc. (SBER) has revitalized urbanneighborhoods in Baltimore and other

communities on the East Coast by rehabilitatingexisting buildings and initiating new infillprojects. Since their first major venture in 1976, inwhich 40 vacant storefronts on Cross Street inBaltimore were transformed into specialty foodshops, retail, and restaurants, SBER has developedan extensive portfolio of successful commercialand residential projects.

According to SBER Development Director AmyBonitz, the company has effectively tapped intothe economic benefits of smart growth andbrownfields revitalization, “discovering hiddenvalue where no one else sees it.” Their strategy hascreated an anomaly in the city of Baltimore — 98percent of SBER properties are currently leased ina market with a 16 to 20 percent vacancy rate.According to Bonitz, “we’ve succeeded in projectsno one else wanted to do.” By specializing in theadaptive reuse of historic areas and properties,SBER has grown from a small company to a $150million real estate development and generalcontracting company ranked among the top fivecompanies in Baltimore.

The use of creative financing techniques is one ofthe things that make SBER’s business strategyunique. The company has used federal and statehistoric preservation tax credit programs andbrownfields funding and incentives to put defunctindustrial property back into active use. Bybuilding strong partnerships with the publicsector, the company has been able to carry outimportant projects that would not have beeneconomically viable otherwise. “The state inparticular has been very responsive, enabling ourbusiness to minimize risk and meet projecttimelines,” says Bonitz.

Transforming BrownfieldsIn eastern Baltimore’s Canton neighborhood,SBER utilized Maryland’s brownfields program torevitalize an abandoned can manufacturing plant.The property of the American Can Company,which shut its doors 15 years ago, required anextensive cleanup because of lead contamination.The site was the first Maryland property toreceive approval under the State’s BrownfieldsVoluntary Clean-Up Program (VCP). Under theprogram, the state certifies that a property hasbeen cleaned up sufficiently to protect publichealth and the environment.

The state’s brownfields program and historicpreservation tax credits helped SBER redevelopthe Baltimore waterfront site, transforming it intoa thriving business center. Now home to more than40 new businesses, including restaurants,bookstores, cafes and high-tech companies, theCan Company has generated more than 700 jobsand helped propel Canton’s rate of homeownership to new heights. A centerpiece of theproject is a 50,000 square foot business incubatorfor high-tech companies called the EmergingTechnology Center. Run by the non-profitBaltimore Development Corporation, the incubatorwas funded by federal, state and local grants. TheCan Company project has earned SBER numerousawards, including the Maryland Economic Growth,Resource Protection and Planning Commission’sSmart Growth Redevelopment Award in 1998 andthe National Commercial Builders Council’s GrandAward in 2000.

Revitalizing Inner City NeighborhoodsIn a June 7, 2002, article “Like Spreading a GoodVirus,” Builder Online praised SBER’s plans tobuild a new residential community in a previouslydeteriorating section of Harrisburg,Pennsylvania’s, Midtown District. The proposal

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aims to revitalize an area of empty lots and todraw the middle class back into the city. Bill Zahler,Director of Struever Rouse Homes, said, “We gointo an area, create a critical mass of good thingsand build out.” The strategy contributes to anationwide trend of movement back into cities.“People are tired of traffic and sedentarylifestyles,” says Zahler. “This is a trend of peoplewho want a vibrant lifestyle.” Block by block, SBERis helping Harrisburg redevelop its community byrevitalizing a neglected urban neighborhood.

Preserving and ModernizingIn a south Baltimore neighborhood rich incharacter and history, SBER has transformed theformer Procter & Gamble soap factory into “TidePoint,” a 15 acre, 400,000 square foot corporateoffice campus. By extending the city’s waterfrontpromenade to the campus, the $67 million projecthas helped reinvigorate south Baltimore, whichhad lost 10,000 jobs. The project provided muchneeded public access to the waterfront, which hasspectacular views of the scenic Inner Harbor, FellsPoint, and Canton. Tide Point was also one of thefirst projects to benefit from a brownfields tax

credit program that is coordinated by Baltimore.Tenants of the five buildings at Tide Point enjoy astate-of-the-art day care center, an athletic club,and an on-site cafe, housed within carefullypreserved buildings with original facades from theonce thriving manufacturing plant. The newcomplex, which won various awards including aMaryland Smart Growth Award in 2001, nowhouses SBER’s corporate headquarters.

Commitment to Smart GrowthWorking with partners in the public and privatesectors, SBER has created development solutionsthrough adaptive reuse, mixed-use, and urban infillstrategies. By recognizing opportunities inexisting communities that are often overlookedand using critical incentives that makechallenging urban projects viable, the companyhas led the way in revitalizing landmark propertiesin the Baltimore area and beyond. Because of theirforward-looking smart growth strategies in boththe commercial and residential redevelopmentspheres, SBER has helped make commercialgrowth and quality metropolitan living not onlyfeasible, but also rewarding.

“People are tired of traffic and sedentary lifestyles. This is a trend of people who want a

vibrant lifestyle.”

—Bill Zahler, Director of Struever Rouse Homes

For more information, please contact Amy Bonitz at (443) 573-4000 or by email at [email protected] or visitwww.sber.com.

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Dense forests, towering dunes, and crystalclear lakes and streams are just a few ofthe unique natural landscapes that have

drawn residents to settle in northwest Michigan.Over the past decade, however, this region hasexperienced vast commercial expansion, as theinformation technology boom combined with analready thriving tourism industry to create rapidpopulation growth in the five-county areasurrounding Traverse City. Faced with tremendousgrowth pressures, community leaders were leftasking: how do we continue to strengthen ourregional economy without destroying the naturalresources that draw people to live and work herein the first place?

Interested in balancing economy and environment,the Traverse City Area Chamber of Commerceformed a coalition of concerned business leaders,government officials, and communityorganizations. So far, their work has resulted in aunique strategy for land management andplanning that has gained attention fromgovernment leaders in Lansing. At the NationalCherry Festival this past July, Governor JenniferGranholm praised the region’s land use practices,saying, “We are modeling our statewide efforts onwhat you have done in the Traverse City area.” Byproviding technical assistance to townshipplanning departments, training programs for localleaders, and necessary funding for open spacepreservation, the Traverse City businesscommunity is promoting managed growth and, atthe same time, ensuring continued economicdevelopment for the area.

Education and Technical AssistanceThe Traverse City Area Chamber realizes that theadverse consequences of unmanageddevelopment, such as increased traffic congestion,reduced open space, and diminished water quality,can threaten the unique sense of place and quality

of life that makes northwest Michigan anattractive and vibrant commercial center. In orderto help the region face these challenges, theChamber launched a dynamic community-basedplanning effort in 1992 called New Designs forGrowth. Directed by Keith Charters, a formerrestaurant owner; Marsha Smith, executivedirector of Rotary Charities; and Ralph Bergsma,owner of the Waterfront Inn, this organizationbegan its work with the publication of a Grand

Traverse Bay Region Development Guidebook,which still serves as a practical, visual resource forlocal townships seeking to incorporate smartgrowth principles into their development plans.

In addition, New Designs for Growth’s Peer SiteReview Committee, comprised of planners,developers, real estate agents, and land usespecialists, reviews 10 to 14 development proposalsper year and has recommended modifications tothe project plans that meet the Guidebook’s smartgrowth development principles. By fall 2003, NewDesigns for Growth will have helped integrate theGuidebook’s principles into the long-range landmanagement plans of 86 of the 97 local governmentunits in the Grand Traverse Bay region.

Building on this momentum, the Traverse CityArea Chamber has continued to refineLeadership Grand Traverse, a local trainingprogram for business leaders, to provide thestrategies and tools necessary for the successfulimplementation of smart growth principles.

“In our region, an important part of being abusiness leader is understanding how to achievethe right balance between economic developmentand preservation using smart growth practicesand environmental design,” says ChamberPresident, Doug Luciani. With more than 600graduates, Leadership Grand Traverse serves as avital tool for local leaders who must coordinate

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sustainable land management decisions acrossmultiple government jurisdictions.

Evidence of the impact of these efforts can befound in the recent completion of the West M-72Corridor Study. Made possible through fundingfrom the Traverse City Area Chamber and theKellogg Foundation’s People and Land Grants, theWest M-72 study, which spans seven localities,created a long-range development plan for thecorridor aimed at preserving both communitycharacter and existing natural landscapes.

Support for Open SpaceAnother major achievement of the Traverse CityArea Chamber is its work to structure aninnovative land deal that will place the lastprivately owned parcel on the West Arm of GrandTraverse Bay in public ownership. A former SmithBarney investment office situated on a half-acreparcel along the picturesque Lake Michiganwaterfront is the last piece of the puzzle neededto create a two-mile stretch of open space acrossfrom Traverse City’s vibrant Front Street and OldTown district, an area that has come alive in recentyears with unique dining and shoppingopportunities.

Working with the Grand Traverse Regional LandConservancy and the Traverse City Convention and

Visitors Bureau, the Traverse City Area Chamberagreed to help fund a $200,000 exclusive 2-yearoption that will allow the community to raise the$2.6 million needed to purchase the Smith Barneyproperty. As part of the proposal, voters mustapprove the formation of a new park that will levyproperty taxes to raise the amount necessary tomeet the purchase price and place the valuableland in public trust. Business leaders understandthat their initial investment will reap financialbenefits into the future through increasedcommercial activity in the downtown districtacross from the new recreational area along theLake Michigan waterfront.

In this relatively small midwestern city, businesseshave placed themselves on the front lines of thegrowth debate. With 95 percent of the commercialactivity in the region driven by small business, theprivate sector commitment to smart growthstrategies is truly unique. With its potential forreplication, the Traverse City Area Chamber ofCommerce provides a useful model for othercommunities across the nation who face similardevelopment challenges. By recognizing thatcontinued economic growth for the regiondepends on responsible land use managementdecisions, businesses can protect their bottomline while protecting their quality of life andnatural resources.

For more information, please contact Chamber President Doug Luciani at (231) 947-5480 or by email [email protected].

“We are modeling our statewide efforts on what you have done in the Traverse City area.”

—MIchigan Governor Jennifer Granholm

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With increased traffic congestion andhaphazard commercial expansion eatingup farmland and open space, sprawl has

become a hot topic in Vermont in recent years. A2003 poll conducted by the Center for RuralStudies for the Vermont Forum on Sprawl reportedthat seven in 10 Vermonters believe action needsto be taken to avert sprawl and that 80 percentbelieve current development trends only reinforcethe growing problem. Another recent surveysuggests that three quarters of the populationwould seriously consider moving to a downtown,urban neighborhood, or village center if there waslow traffic, if properties were well cared for, and ifthe area was quiet.

As a result, the Vermont Business Roundtable(VBR) has become interested in developingstrategies to address sprawl. Like other businessorganizations throughout the country, VBRunderstands that a strong regional economythrives on the vitality and uniqueness of localcommunities and rural areas. Furthermore, theseobjectives depend on planning and land usedecisions made at the state and local level. However,current regulatory policies and ordinances tend tomake smart planning decisions neither desirablenor feasible for developers.

Created in 1987, the Vermont Business Roundtableis a non-profit, public interest organization thatincludes 120 CEOs from the most active industrysectors in the state. This committed group seeksto craft thoughtful solutions to vexing policyissues that affect the business climate of thestate—one of which is low-density, fragmenteddevelopment that is stretching out into Vermont’squaint rural areas.

“Vermont has great natural beauty, butcommercial expansion will go where it is easiest to

develop. If you want to influence these types ofbusiness decisions, you must make smartdevelopment choices more attractive to theprivate sector,” says VBR’s President Lisa Ventriss.“It is inherently a financial decision. If it is afraction of the cost to build in a cornfield ratherthan in a railfield or village center, this one factorwill drive the decision. We must level the playingfield to promote the variety and types ofdevelopment that are good for the overall futureof our state.”

Forging Unique Partnerships to ConfrontSprawl and Encourage Urban DevelopmentWhen approached four years ago by the VermontForum on Sprawl (VFOS), a non-profit dedicated topreserving Vermont’s working landscape, qualityof life, and existing community centers, theBusiness Roundtable immediately recognized thevalue of a partnership between Vermont’sbusiness and smart growth communities toaddress various growth issues in the state.

By focusing on shared goals, these organizationsworked together to draft a set of smart growthprinciples they hoped could foster newapproaches to commercial and industrialdevelopment in Vermont. As part of thispartnership, project leaders selected threepotential development sites, Waterbury, SouthBurlington, and Bennington, to test thefeasibility of their smart growth criteria withinVermont’s existing land use policies.

“We looked at development from an outcomestandpoint. What are the objectives we hope toachieve for transportation, reuse of existingstructures, and open space or historicpreservation? How can we craft our regulatorypolicies to meet these goals?” says Jay Kenlan,land use attorney and VBR Board Member.

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From the site analysis, VBR and VFOS learnedthat the new models would be difficult toimplement without changes to the regulatoryframework, better financing mechanisms, andbetter planning. The costly delay and uncertaintyassociated with fragmented municipal zoningand state permitting guidelines are one ofseveral hurdles discouraging development withinexisting town centers and encouraginggreenfield development.

One proposed solution involves pre-qualifyingareas within urban centers for certain types ofdevelopment in accordance with an overall masterplan that is preapproved by state and localregulators in a coordinated process. According toKenlan, this provides more certainty and lessprocess and encourages public/privatepartnerships to facilitate smart developmentchoices. In November 2003, the two groupsreleased additional findings from the three casestudies in a report titled, New Models for

Commercial and Industrial Development.

Moving forward, VBR and VFOS hope to use thelessons learned from the project to educate localplanning boards and regional and state economicofficials and to identify specific ways land useprovisions and financing mechanisms can beimproved to encourage rather than discouragesmart growth. “There must be an educationcomponent for local officials. If you want toattract private development, here are the zoningordinances you need to tweak,” argues Ventriss.Working with the VFOS, VBR will also helpcommunity leaders draft new zoning policies andutilize innovative public/private financingstrategies to attract the types of growth to towncenters that meet local development goals.

Building on their work with the New Modelsproject, VBR and VFOS can help Vermont movebeyond “the cookie-cutter approach” to land usedecisions, says Kenlan. This unique partnershipprovides a valuable example of smart growth andbusiness communities coming together to achievea common vision for sustainable growth.

“Vermont has great natural beauty, but commercial expansion will go where it is easiest to develop. If

you want to influence these types of business decisions, you must make smart development choices

more attractive to the private sector.”

—Lisa M. Ventriss, President, Vermont Business Roundtable

For more information, please contact Lisa M. Ventriss, President, Vermont Business Roundtable at (802) 865-0410, orby email at [email protected], or visit www.vtroundtable.org.

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The phenomenon of Whole Foods Market,and its dramatic effect on olderneighborhoods, is now well known across

the country. What began as a small food market inAustin, Texas, has become the largest natural andorganic food supermarket in the world. With morethan 145 stores in the US and Canada and morethan 27,000 employees, Whole Foods Market nowboasts some $2.7 billion in annual sales. Theseimpressive figures are built not just on high-quality natural and organic foods and products,but also on an aggressive and innovative strategyfor growth.

Community Building and Quality of LifeAre Competitive AdvantagesBecause growth in the food industry is generallydriven by population expansion, typical grocerystores have chased exurban consumers to far-flung suburbs. Although Whole Foods does have astrong suburban presence, it also has activelysought out retail space in transitional urbanneighborhoods that have the capacity forrevitalization. By anchoring these neighborhoods,attracting new residents to them, and becoming acenterpiece of community interaction, WholeFoods has actually built new consumer marketsfor itself. This allows it to achieve strong marketpenetration in neighborhoods where other storeshave no presence.

In addition, Whole Foods has been an innovator inthe adaptive reuse of historic buildings. This is notso much an aesthetic decision as it is a carefullymeasured business strategy, helping the companyto brand itself not just through its products, butalso through an entire sensory experience.Through its buildings, store layout, and printedmaterials, Whole Foods projects an entire lifestyle,one that is socially conscious, community-oriented, and environmentally responsible. As CEO

John Mackey acknowledged in a recent Fortune

magazine article, “It’s not all altruistic. Ourcustomers want us to act in an environmentallyresponsible way. To maximize shareholder value,you’d better be a positive force in the community.”

Whole Foods Market’s attention to aesthetics,quality of life, and community building has alsohad positive implications for employee attractionand retention. For six consecutive years, Fortune

has cited Whole Foods Market as one of the “100Best Companies to Work For.” Whereas mostsupermarkets have approximately 25 percent oftheir workforce employed full-time, 80 percent ofWhole Foods Market’s employees are full-time.

Logan Circle: An Urban Success StoryWhole Foods Market has an aggressive strategy tolocate new stores in transitional urban neighbor-hoods on the verge of revitalization. A primeexample of this strategy is the Whole Foods store inWashington, DC’s, Logan Circle neighborhood.

In the mid-1990s, Whole Foods Market (under thename of Fresh Fields) began exploring sites innorthwest Washington, DC. Although the companyhad originally been looking at a site in anotherpart of the city, a group of residents near LoganCircle began a crusade to bring the store to theirneighborhood. After more than 3,000 letters tothe company and a 52-page demographic study,they managed to convince Whole Foods Marketthat their community represented a viableeconomic opportunity.

When the new store broke ground in 1999, at 14thand P streets, it was designed to reflect thesurrounding neighborhood. Reaching back intohistory, the architect designed a glass-frontedbuilding that mirrored the auto showrooms thathad defined 14th Street in the 1940s. Rather than

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setting the building behind a sea of parking, thenew store maintained the existing street wall, andactually enlivened the pedestrian experience withoutdoor tables. Although it is very urban in itsdesign, the store is still one of the largest WholeFoods Market stores in America, with 37,000square feet of retail space and enough parking for151 vehicles. The store, which employs 300 people,received more than 2,300 employmentapplications before it opened its doors. The newWhole Foods Market has also sparked additionalneighborhood redevelopment, including severalnew residential buildings and other retailestablishments. This surge in residential and retailactivity is attracting even more customers to thestore, solidifying its customer base and sales wellinto the future.

The Next Phase: Whole FoodsMarket HeadquartersIn July 2003, Whole Foods Market broke ground onits new corporate headquarters and landmarkstore in Austin, Texas. Located just across thestreet from the company’s previous headquarters,the site was little more than an empty lot that satvacant for more than a decade as the owners triedin vain to develop the site. Now the land, whichconstitutes an entire block on the western edge ofdowntown, will host a six-story office tower with200,000 square feet of space and an 80,000square foot flagship store.

Teaming up with Schlosser DevelopmentCorporation, which owned the site, Whole FoodsMarket has designed much more than a traditionaloffice complex. It will house a community andeducation center, where the company will havecooking demonstrations and where local residentswill be able to hold meetings. In addition, there willbe a 25,000 square foot roof garden, completewith an amphitheater, and areas for indoor andoutdoor eating. The site will even contain threelevels of underground parking, accessible throughspecially designed escalators capable ofcarrying shopping carts.

The project may eventually become thecenterpiece of what Schlosser is now callingAustin’s “Market District,” a four-block retaildestination. The company, which is alreadyplanning to redevelop the site of the previousheadquarters, hopes to create an active pedestrianenvironment in the Market District, complete withpublic art, landscaping, and historical markers.

But even before the Market District takes hold,the new headquarters will have a dramatic effecton the city of Austin. When it opens in 2005, thedevelopment will bring some 900 jobs todowntown, a number that is projected to growto 1,200. Austin’s leaders also expect the projectto attract new residents, and new development,to downtown.

“It’s not all altruistic. Our customers want us to act in an environmentally responsible way.

To maximize shareholder value, you’d better be a positive force in the community.”

—Whole Foods CEO John Mackey

For more information, please contact Amy Hopfensperger, at (512) 477-4455 or by email [email protected], or visit www.wholefoods.com.

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When purchasing a new home or signing alease, several factors come into play —factors that go far beyond mortgage

rates, property taxes, and loan applications.Although these are important details, manyindividuals and families ask — Where is thenearest grocery store? Are there good schoolsnearby? How long is my commute? Can I walk to atransit line or bus stop?

Recognizing that both homeowners and tenantsseriously consider these issues, it is no surprise thatrealtors across the nation are beginning to embraceland use planning, open space preservation, newchoices for public transportation, and affordable,diverse housing opportunities — all key elements ofa smart growth development strategy. “Manyrealtors have figured out that smart growth appealsto a certain niche of buyers,” says Joe Molinaro,Manager of Smart Growth Programs for theNational Association of Realtors (NAR).

By supporting policies that help localgovernments plan for growth, the real estateindustry can accelerate and expand the housingand commercial real estate market. Controllingwater and air pollution, providing transportationoptions, preserving historic buildings, andallowing for adequate parks and recreational areasare all ways to promote the quality of life thatattracts potential purchasers. However, localofficials often need both technical and financialassistance to develop the long-term land use plansthat manage growth and foster livable,economically vibrant communities.

Helping Communities Plan for GrowthIn Wisconsin, realtors have taken an aggressiveapproach to encouraging sensible land use, bysupporting the state’s controversial 1999Comprehensive Planning Law. Mobilizing a diversegroup of stakeholders, the Wisconsin Realtors

Association (WRA) helped convince statelawmakers to pass “one of the most significantpieces of planning legislation in Wisconsin’slegislative history,” says Tom Larson, Director ofLand Use and Environmental Affairs for WRA.

This landmark “smart growth” law requires thatcommunities regulate land use by developing acomprehensive land management plan thatconsiders nine main areas, including housing,transportation and economic development, toensure quality of life. During the 2003 budget cyclealone, the state provided $6 million in the form ofcomprehensive planning grants to help localcommunities meet the requirements of the new law.With an emphasis on individual community needsand public participation, the Wisconsin law takes abalanced approach to the planning process in aneffort to build consensus and help communitiessuccessfully manage their growth challenges.

Despite criticism from those who argue the lawstifles development and private property rights,WRA has not backed down. For WRA, it is morethan a simple property rights issue. Landmanagement planning can have a significanteffect on the vitality of the real estate industry.As Larson points out, “Realtors now recognizethey have a broader perspective on land use.Realtors don’t just sell individual homes. They sellquality of life, the entire community. No one has alarger stake in quality of life issues than realtors,or a greater awareness of what is going wrongwithin communities.”

Realtors know that accessible transportationoptions, proximity to schools and commercialcenters, and availability of parks and open spaceare all factors that enhance quality of life anddrive up property values. They also understandthat poor planning can result in haphazarddevelopment that can degrade property values and

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impact landowners, as well as increase publicinfrastructure costs for local governments andtaxpayers. Long-range land use plans stabilizelocal and regional development patterns, providingproperty owners, potential homebuyers, andcommercial interests with more certainty abouthow an area may evolve and grow over time.

It is also the simple fact that “good planning isgood for the housing market,” says Larson.Present in every city and county across thenation, realtors can send a strong messageto policymakers that managed growth makessense for both communities and the realestate industry.

For more information, please contact Joe Molinaro, Manager of Smart Growth Programs, at (202) 383-1175 or visitwww.realtor.org/smartgrowth. For more information on Wisconsin’s comprehensive planning law and the Wisconsin RealtorsAssociation, please contact Tom Larson, WRA Land Use and Environmental Affairs Director, at (608) 241-2047 or by emailat [email protected].

“Good planning is good for the housing market.”

—Tom Larson, Wisconsin Realtors Association, Director of Land Use and Environmental Affairs

❚ On Common Ground, a magazine on smartgrowth and community issues targeted to stateand local public officials;

❚ Expanding NAR’s federal lobbying efforts toinclude quality of life issues;

❚ Involvement in national policy and outreachreports on smart growth;

❚ A survey research program for state and localassociations to gauge public opinion on landuse policies;

❚ An online clearinghouse of research on growthissues at www.realtor.org/smartgrowth;

❚ The Land Use Initiative, which provides analysisof proposed land use measures for realtorassociations;

❚ Providing technical assistance to state realtorassociations seeking to draft smart growthlegislation; and

❚ Participation in the national Smart GrowthNetwork.

With more than 980,000 members and 1,600 local associations nationwide, NAR is one of the largest andmost influential voices in the political and business community. Hoping to maintain the active housing

market experienced in recent years, NAR expanded its efforts to promote sensible development strategiesthrough its Smart Growth program. This initiative includes publications, research, networking and technicalassistance for state and local realtor associations, and federal legislative advocacy on quality of life issues.Specific initiatives include:

National Association of Realtors Embraces Smart Growth as Key Policy Issue

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Zipcar and FlexcarCar Sharing Capitalizes on the Urban Lifestyle

Anyone who has lived in an urban areaknows that it can be very expensive to owna car when you live downtown. Insurance

rates are higher. Parking is nearly impossible tofind, unless you are willing to pay exorbitantgarage fees. Furthermore, congested city trafficoften makes owning a car the least efficient wayto travel. As a result, many urban dwellers haveconsidered giving up their cars and walking,biking, or taking public transit to remain mobile.

However, people often are hesitant to take thatleap because there are situations where it helps tohave a car. Maybe you have to move some personalbelongings or go shopping. Maybe you want tovisit a friend who does not live near a transit line.Or maybe you just want to take a day tripsomewhere. In each case, having a car — just forthe day, not for a lifetime — would be a great help.Two companies, Flexcar and Zipcar, haverecognized this as an emerging businessopportunity and are seeking to meet the needs ofurban residents with “car sharing.”

Share and Share AlikeThe idea behind car sharing, which started inSwitzerland in the 1980s, is very simple: if you donot need a car all the time, then it makes nosense to buy one. Instead, just pay for thespecific times that you need it, like a time-sharecondominium. The service is now popular acrossEurope, with more than 150,000 customers in 450different cities. Although only recentlyintroduced in the United States, there are now agrowing number of private and nonprofit carsharing companies, with more than 20,000members nationwide and counting.

The King County, Washington, transit agency,Metro, was looking for an innovative program toadd value to its bus service. Neil Peterson, the

former director of the Los Angeles CountyTransportation Commission and former head ofSeattle Metro, had heard about the widespreadsuccess of car sharing in Europe and decided totry it in the United States. In 1999, Petersonfounded Flexcar through a public-privatepartnership with King County. Now a fully privatecorporation, Flexcar operates in 20 different cities,spread across five states and the District ofColumbia, with 18,000 paying members. Flexcar’sfleet is composed of environmentally friendlyvehicles, including hybrids, sedans, light pickuptrucks and minivans.

Zipcar, another car-sharing company with morethan 2,000 members in three cities, was startedin 2000 and emphasizes the user experience tomarket car sharing. Zipcar’s fleet includes MiniCoopers, pickup trucks, Mazda Miataconvertibles, Volkswagen Beetles, BMW 325s,and Honda Civics — to cater to all of theirmembers needs. In addition, Zipcar designed anew technology to make car sharing easy —members (who pay a monthly fee) each receive a“Zipcard”, which is the size of a credit card.When they need a vehicle, they can simplyreserve one online or over the phone. Afterwalking down the street to the local Zipcar lot,their personalized Zipcard automaticallyunlocks and turns on the car.

Car sharing is simpler, faster, and cheaper forshort trips than traditional rental cars. The carsare generally available at a moment’s notice, andthey can be used for as long as they are needed.Once customers have signed up for the service,there is no paperwork to fill out. Because manycompanies insure their cars, customers often don’tneed insurance. The hourly fee car-sharingmembers pay usually covers gas, maintenance,insurance, and parking.

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“Flexcar allows people to leave their car at home and still be mobile at work to handle many

business and personal tasks.”

—Carrie Blanco, Bank of America Tower Assistant Property Manager, Operations, Seattle, Washington

Car sharing has public benefits as well. Becauseeach shared car serves between 15 and 30customers, the service frees up parking spaces androad capacity. Furthermore, because drivers pay peruse, they have an immediate financial incentive todrive only when it is the cheapest alternative. Theavailability of car-sharing services in the US hasreduced car ownership. Fifteen percent of Zipcarcustomers decided to sell their own cars, and onethird of Flexcar customers either sold or consideredselling theirs. Forty percent of Zipcar customersdecided not to buy a car, and 57 percent of Flexcarcustomers delayed a car purchase.

Filling a Niche, Building a MarketCar sharing serves a previously untapped sectionof the market: urban dwellers who typically driveunder 7,500 miles per year. This has proved to be avery attractive demographic, given that nearly 40percent of Zipcar members earn more than$80,000 per year, and 95 percent have been tocollege. Many are students, whereas others areyoung professionals.

In addition to urban residents, a fast-growingsegment of the car sharing market are largeinstitutions such as corporations, universities,governments, and hospitals. Universities, especiallythose with urban campuses, are discovering thatcar sharing is a great tool to decrease congestionand minimize parking needs on campus. Forinstance, the University of Washington provides anumber of free parking spaces to Flexcar, in orderto discourage students and faculty from bringingcars to campus. At MIT, located in the congestedCambridge, Massachusetts neighborhood, Zipcaruse has helped the university address concernsabout rising parking costs and traffic. MIT now hasover 1,000 Zipcar members.

Car sharing has even found a powerful new ally inprivate sector developers. Developers are turningto car sharing to help their projects move forward.Traffic and parking are often major barriers toredevelopment projects, particularly on smallerinfill sites that cannot accommodatecontemporary parking standards. Recognizing thevalue of car sharing, the Boston RedevelopmentAuthority, a planning and economic developmentagency, listed Zipcar as an option to mitigatetraffic and parking created by every new majordevelopment project. Since then, every newdevelopment in Boston has included Zipcar in itsproposal. Because each shared car removesbetween six and ten cars from the road, developersin Boston and elsewhere have quickly discoveredthat car sharing makes their projects easier todesign and more likely to win approval.

Car sharing can also increase the profitability of adevelopment project. For instance, Spaulding &Slye Colliers is including six Zipcar spaces in FanPier, a new 3.1 million square foot, mixed-use,waterfront development project in Boston. Giventhe high cost of underground parking and thateach Zipcar serves 20 to 30 people, Zipcarestimates that the addition of these vehicles willsave the developer $1.7 million by decreasing thenumber of underground parking spaces thatneed to be built.

Furthermore, aside from the few parking spacesthat must be reserved for shared vehicles, carsharing adds no additional cost to the developer.In fact, the cars become an additional amenitythat is useful in attracting tenants. Equity OfficeProperties Trust, the largest real estateinvestment trust in the nation, uses Flexcar to helpmarket its commercial properties, including the

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Bank of America Tower in Seattle’s financialdistrict. As Carrie Blanco, Assistant PropertyManager–Operations explains, “We wanted toassist companies in conducting their business andgetting their employees in and out easily. Flexcarallows people to leave their car at home and stillbe mobile at work to handle many business andpersonal tasks.” For many companies, car sharingis like having a “company car” without actuallyhaving to lease one. Car sharing often represents asignificant cost savings over employee tripreimbursements, monthly parking, fleet cars, orother mobility options.

As car sharing grows, more markets are emergingin the private sector. Zipcar has developed apartnership with Toyota Rent a Car to offer carsharing as an option for customers who need a carwhile the one they own or lease is being serviced.Flexcar provides car sharing to Starbucks’ corporateoffice, so that their employees, especially those whodo not drive alone to work, can have a car at theoffice to conduct daily business.

A Private Sector ComplementA Private Sector ComplementA Private Sector ComplementA Private Sector ComplementA Private Sector Complementto Public Transportationto Public Transportationto Public Transportationto Public Transportationto Public TransportationAlthough car sharing is not a substitute for publictransportation, it complements and improvesexisting transit systems. King County Metro was

the first transit agency in the US to facilitate carsharing when it partnered with Flexcar nearly fouryears ago. In 2001, the Washington, DC Metrosystem followed that lead and partnered withFlexcar to offer car sharing at selected transitstations. More than 3,000 people have sinceenrolled in the program, which helps people to runerrands and attend meetings just beyond thereach of the Metro train system. To their surprise,the DC Metro has found that the service hasactually increased transit ridership. Plans are nowin the works to expand Metro’s existing “SmarTrip”debit card service to include car sharing.

The growth of car sharing in the United Statesshows that the business opportunities areoutstanding for this “simple” concept. Carsharing complements smart growth byincreasing the range of transportation optionsavailable to commuters. Moreover, car sharingremoves some of the barriers for developersinterested in building quality, mixed-use, infillprojects. As John Williams, Director of Marketingat Flexcar, said, “We overwhelmingly believe thatthere is no ‘silver bullet’ to reducing congestion,pollution and sprawl. Rather, the presence of amultitude of transportation options, includingcar sharing, is the best way to create a moresustainable future.”

Zipcar and Flexcar (cont.)

i For more information, please contact John Williams at (206) 332-0330 or by email at [email protected]. For moreinformation on Zipcar, please contact Nancy Rosenzweig at (617) 491-9900 or by email at [email protected].

“The viability of inner city

neighborhoods and their

surrounding metropolitan areas

is a critical issue to building

a strong America.”

—Earvin “Magic” Johnson, CEO,

Johnson Development Corporation

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Resources

Businesses

Bank of AmericaSan Francisco, CA(415) 622-8150www.bankamerica.com

BellSouth CorporationAtlanta, GA(404) 249-5383www.bellsouthcorp.com

Brownfields Recovery CorporationBoston, MA(617) 267-8585www.brownfields-recovery.com

Development Research PartnersLittleton, CO(303) 991-0070www.developmentresearch.net

Eakin-Youngentob Assoc.Arlington, VA(703) 525-5565www.eya.com

Fannie MaeWashington, DC(202) 752-7000www.fanniemae.com

Global InsightWashington, DC(202) 481-9300www.globalinsight.com

Jacoby Development, Inc.Atlanta, GA(770) 399-9930www.jacobydevelopment.com

Narragansett ElectricProvidence, RI(401) 784-7000www.narragansett.com

New Jersey Natural GasWall, NJ(732) 938-7977www2.njng.com

Struever Bros. Eccles & Rouse, Inc.Baltimore, MD(443) 573-4000www.sber.com

Wells Fargo Bank MinnesotaSt. Paul, MN(612) 667-7271www.wellsfargo.com

GovernmentOrganizations/Agencies

US Environmental ProtectionAgency, Smart Growth ProgramWashington, DC(202) 566-2878www.epa.gov/smartgrowth

US Environmental ProtectionAgency, Office of BrownfieldsCleanup and RedevelopmentWashington, DC(202) 566-2777www.epa.gov/brownfields

Smart Growth is Smart Business • Resources

58

Metropolitan CouncilSt. Paul, MN(651) 602-1140www.metrocouncil.org

Local/RegionalOrganizations

1000 Friends of MinnesotaSt. Paul, MN(651) 312-1000www.1000fom.org

Alliance for Regional StewardshipDenver, CO(303) 477-9443www.regionalstewardship.org

Bay Area CouncilSan Francisco, CA(415) 981-6600www.bayareacouncil.org

Bay Area Family of FundsSan Francisco, CA(415) 981-6600www.basgf.com

Better York / Wolf OrganizationYork, PA(717) 852-4800

Bluegrass TomorrowLexington, KY(859) 259-9829www.bluegrasstomorrow.org

Chicago Metropolis 2020Chicago, IL(312) 332-2020www.chicagometropolis2020.org

Envision UtahSalt Lake City, UT(801) 303-1450www.envisionutah.org

Greater Cleveland GrowthAssociationCleveland, OH(216) 621-3300www.clevelandgrowth.com

Grow Smart Rhode IslandProvidence, RI(401) 273-5711www.growsmartri.com

Metro Atlanta Chamberof CommerceAtlanta, GA(404) 880-9000www.metroatlantachamber.com

Sierra Business CouncilTruckee, CA(530) 582-4800www.sbcouncil.org

Silicon ValleyManufacturing GroupSan Jose, CA(408) 501-7864www.svmg.org

Traverse City Area Chamber ofCommerceTraverse City, MI(231) 947-5075www.tcchamber.org

Vermont Business RoundtableSouth Burlington, VT(802) 865-0410www.vtroundtable.org

Vermont Forum on SprawlBurlington, VT(802) 864-6310www.vtsprawl.org

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National Organizations

American Farmland TrustWashington, DC(202) 331-7300www.farmland.org

American Institute of ArchitectsCenter for Livable CommunitiesWashington, DC(202) 626-7300www.aia.org

American Planning AssociationWashington, DC(202) 872-0611www.planning.org

Association of MetropolitanPlanning OrganizationsWashington, DC(202) 296-7051www.ampo.org

Brookings InstitutionWashington DC(202) 797-6000www.brookings.org

Center for NeighborhoodTechnologyChicago, IL(773) 278-4800www.cnt.org

CEOs for CitiesBoston, MA(617) 451-5747www.ceosforcities.org

Congress for the New UrbanismChicago, IL(312) 551-7300www.cnu.org

The Conservation FundArlington, VA(703) 525-6300www.conservationfund.org

Electric Power Research InstitutePalo Alto, CA(800) 313-3774www.epri.com

The Enterprise FoundationColumbia, MD(410) 964-1230www.enterprisefoundation.org

Environmental Law InstituteWashington, DC(202) 939-3800www.eli.org

Initiative for a CompetitiveInner CityBoston, MA(617) 292-2371www.icic.org

International City/CountyManagement AssociationWashington, DC(202) 289-4262www2.imca.org

Joint Center on SustainableCommunitiesWashington, DC (202) 942-4224www.naco.org/programs/special/center/index.cfm

Local Government CommissionSacramento, CA(916) 448-1198www.lgc.org

Local Initiatives SupportCorporationNew York, NY(212) 455-9800www.liscnet.org

National Association of CountiesWashington, DC(202) 393-6226www.naco.com


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National Association ofHomebuildersWashington, DC(202) 266-8200www.nahb.org

National Association of Industrialand Office PropertiesHerndon, VA(703) 904-7100www.naiop.org

National Association of LocalGovernment EnvironmentalProfessionalsWashington, DC(202) 638-6254www.nalgep.org

National Association of RealtorsChicago, IL(800) 874-6500www.realtor.org

National Neighborhood CoalitionWashington, DC(202) 429-0790www.neighborhoodcoalition.org

National Trust for HistoricPreservationWashington, DC(202) 588-6000www.nationaltrust.org

Natural Resources Defense CouncilNew York, NY(212) 727-2700www.nrdc.org

Northeast Midwest InstituteWashington, DC(202) 544-5200www.nemw.org

Real Estate RoundtableWashington, DC(202) 639-8400www.rer.org

Scenic AmericaWashington, DC(202) 543-6200www.scenic.org

Smart Growth AmericaWashington, DC(202) 207-3355www.smartgrowthamerica.org

Smart Growth Leadership InstituteWashington, DC(202) 207-3348www.sgli.org

Smart Growth NetworkWashington, DC(202) 962-3623www.smartgrowth.org

Surface TransportationPolicy ProjectWashington, DC(202) 466-2636www.transact.org

Sustainable Communities NetworkWashington, DC(202) 962-3623www.sustainable.org

Trust for Public LandSan Francisco, CA(415) 495-4014www.tpl.org

The Urban Land InstituteWashington, DC(800) 321-5011www.uli.org

National Association of Local GovernmentEnvironmental Professionals

1333 New Hampshire Avenue, NWWashington, DC 20036Phone: 202-638-6254

Fax: 202-393-2866Web: www.nalgep.org

Smart Growth Leadership Institute1200 18th Street, NW Suite 801

Washington, DC 20036Phone: 202-207-3348

Fax: 202-207-3349Web: www.sgli.org

"When businesses and government work together to pursue quality growth, we act asstewards of both our economy and our environment. By showcasing Envision Utah andother business-led initiatives, the ‘Smart Growth is Smart Business’ report demonstratesthat quality of life, environmental progress, and prosperity can go hand in hand."

—Administrator Michael Leavitt, U.S. Environmental Protection Agency

"When job providers work with elected officials and community stakeholders to increaseinvestment in affordable housing, transportation choice, environmental protection, andworld-class education, we improve the quality of life and enhance economicopportunities for job providers and working families."

—Carl Guardino, President & CEO Silicon Valley Manufacturing Group

“Communities facing sprawl have learned the hard way, that growth for growth’s sake is notsustainable, and that investments in smart growth are essential for economic progress. Weare proud that the Atlanta business community’s leadership to promote new growthmanagement approaches is featured in the ‘Smart Growth is Smart Business’ report.”

—Sam A. Williams, President Metro Atlanta Chamber of Commerce

“Local communities are eager to partner with business to create a climate for investment,jobs and growth. As this report highlights, smart growth is a key to success for our citiesand businesses.”

—Mayor Dan Malloy, City of Stamford, Connecticut

“We can have a strong, growing economy without sacrificing the environment andproducing sprawl. This groundbreaking report shows that now, more than ever, smartgrowth can produce fiscal and economic advantages for communities and businesses alike.”

— Parris Glendening, former Governor of Maryland andPresident Smart Growth Leadership Institute

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