the costs of suburban sprawl and urban decay in rhode island

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THE COSTS OF SUBURBAN SPRAWL AND URBAN DECAY IN RHODE ISLAND PREPARED FOR GROW SMART RHODE ISLAND BY H. C. PLANNING CONSULTANTS, INC. AND PLANIMETRICS, LLP

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Page 1: THE COSTS OF SUBURBAN SPRAWL AND URBAN DECAY IN RHODE ISLAND

THE COSTS OFSUBURBAN SPRAWLAND URBAN DECAYIN RHODE ISLAND

P R E PA R E D F O R G R O W S M A R T R H O D E I S L A N D

B Y H . C . P L A N N I N G C O N S U LTA N T S , I N C .

A N D P L A N I M E T R I C S , L L P

Page 2: THE COSTS OF SUBURBAN SPRAWL AND URBAN DECAY IN RHODE ISLAND

GROW SMART RHODE ISLAND, BOARD OF DIRECTORS

SISTER THERESE ANTONE, President, Salve Regina University

SUSAN ARNOLD, CEO & General Counsel, Rhode Island Association of Realtors

WILLIAM BALDWIN, President, Baldwin Corporation

JOSEPH CAFFEY, President, Omni Development Corporation

ROBERT L. CAROTHERS, President, University of Rhode Island

ARNOLD CHACE, President, Cornish Associates

TRUDY COXE, CEO, The Preservation Society of Newport County

PETER DAMON, Vice Chairman, Financial Services, Bank of Newport

ALFRED DEGEN, President, Valley Gas Company

JAMES H. DODGE, Chairman, President and CEO, Providence Energy Corporation

LOUISE DURFEE, Managing Partner, Brown, Rudnick, Freed & Gesmer

MARK J. FORMICA, Vice Chairman, Citizens Bank

J. JOSEPH GARRAHY, President, J. Joseph Garrahy and Associates

E. GORDON GEE, President, Brown University

ROBERT GILBANE, President, Gilbane Properties

STEPHEN HAMBLETT, Chairman of the Board, Providence Journal Company

ROBERT HARDING, President, Slatersville River Properties, Inc.

DEAN HOLT, Chairman, CEO and President, Fleet National Bank

DOUGLAS H. JOHNSON, President, Heritage Consultant Group

DENNIS LANGLEY, Executive Director, Urban League of Rhode Island

MARGARET LEINEN, Dean, University of Rhode Island

FREDERICK LIPPITT, Chairman, Providence Plan

FREDERICK C. LOHRUM, South Region Chairman & CEO, BankBoston

ROGER MANDLE, President, Rhode Island School of Design

JAMES MILLER, Executive Minister, Rhode Island Council of Churches

LAWRENCE REILLY, President, Narragansett Electric Company

ANTHONY SANTORO, President, Roger Williams University

GARY SASSE, Executive Director, Rhode Island Public Expenditure Council

RICHARD SCHARTNER, Owner, Schartner Farms

BEVERLY SCOTT, General Manager, Rhode Island Public Transit Authority

DEMING SHERMAN, Partner, Edwards and Angell

MERRILL SHERMAN, President and CEO, Bank Rhode Island

FATHER PHILIP SMITH, President, Providence College

CURT SPALDING, Executive Director, Save The Bay

JOHN WARREN, President and CEO, The Washington Trust Company

SANDRA WHITEHOUSE, Environmental Consultant

FREDERICK C. WILLIAMSON, Chair,

Rhode Island Historical Preservation and Heritage Commission

JAMES WINOKER, President, Belvoir Properties, Inc.

W. EDWARD WOOD, Independent Consultant

Page 3: THE COSTS OF SUBURBAN SPRAWL AND URBAN DECAY IN RHODE ISLAND

THE COSTS OF SUBURBAN SPRAWL

AND URBAN DECAY IN RHODE ISLAND

EXECUTIVE SUMMARY

P R E P A R E D F O R G R O W S M A R T R H O D E I S L A N D

B Y H . C . P L A N N I N G C O N S U L T A N T S , I N C .

A N D P L A N I M E T R I C S , L L P

D E C E M B E R , 1 9 9 9

The information in this document has been funded in part by the United States EnvironmentalProtection Agency under a Sustainable Development Challenge Grant (Assistance AgreementSD991937) to Grow Smart Rhode Island. It may not necessarily reflect the views of the Agencyand no official endorsement should be inferred.

Additional funding provided by the Rhode Island Foundation.

Printing courtesy of The Providence Journal.

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i Grow Smart Rhode Island | About the Report

This publication contains the Executive Summary ofThe Costs of Suburban Sprawl and Urban Decay in RhodeIsland. The comprehensive, 281-page report was pre-pared by H.C. Planning Consultants, Inc. of Orange,Connecticut and Planimetrics, LLP of Avon,Connecticut. HCPC’s principal Hyung C. Chung,Ph.D., AICP, holds a Masters Degree in City Planningfrom Yale University and a Ph.D. in Planning fromColumbia University. An urban economist andProfessor of Economics and Planning at the Universityof Bridgeport for thirty years until his retirement in1998, he has served as a consultant to the ConnecticutDepartment of Education, the United Nations Centerfor Housing and Planning and numerous towns inConnecticut, Massachusetts and New York.Planimetrics Principal Bruce Hoben received hisMasters Degree in Community Planning from theGeorgia Institute of Technology. A Past President of theConnecticut Chapter, American Planning Association,he served as chief planner for the Connecticut towns ofAvon and Farmington. Planimetrics Principal GlennChalder, AICP, received his Masters in CommunityPlanning from Harvard University, and served asTown Planner in Avon, Connecticut.

The full report is organized in two parts. Part I estab-lishes the conceptual foundation for measuring thecosts of sprawl in Part II. After a brief introduction inChapter 1, Chapter 2 introduces the Circular Model ofSprawl, emphasizing the inseparable link between thesuburban sprawl and urban decay processes. In thesame chapter, Rhode Island’s 39 cities and towns areclassified into four community types—urban core,urban ring, suburban, and rural/emerging suburban.In addition, a number of indicators for growth, subur-banization and sprawl are defined and used to monitorRhode Island’s growth trends over the last 40 years.Chapter 3 analyzes the growth trends for population,housing, employment, and motor vehicles, andChapter 4 describes land consumption rates between1960 and 1995 and projects future land consumptionscenarios through 2020. Chapter 5 conducts case stud-ies for three communities, each representing a majorcommunity type—urban ring, suburban, andrural/emerging suburban. Finally, in Chapter 6, fivedevelopment patterns are introduced as alternatives to

the current sprawl development trend. All five optionsassume that there will be no further population declinein urban communities over the next twenty years andthat a ‘balanced’ growth pattern is desirable rather thanlopsided growth that only occurs in the suburban andrural areas. Among the five alternatives, our consult-ants chose a Compact Core option as the optimalmodel of development because it exhibited the greatestpotential to increase the efficient use of resources com-pared to sprawl development.

In Part II, our consultants measure the costs of sprawl.Chapter 7 projects and compares the gross costs of con-tinued sprawl development with those of compact coredevelopment over the next twenty years (between 2000and 2020). Chapter 8 addresses the issues of diminish-ing farmland, forestland, and other open spaces, andthe disappearance of the state’s ‘rural character’. InChapter 9, calculations are made for the net costs ofsprawl for infrastructure (roads, school, and utilities).Chapter 10 focuses on the social and fiscal impacts ofurban decay, particularly empty buildings, vacant lots,and low-income households all being concentrated inour core cities. Chapter 11 deals with the fiscal impactof sprawl on suburban and rural communities. Finally,Chapter 12 discusses the environmental impact of therapidly increasing number of motor vehicles andmileage driven under sprawl development.

Our consultants differentiated two types of costs inanalyzing the costs of sprawl: one-time costs andrecurring costs. A capital cost is a one-time cost, but anoperating cost such as municipal tax revenues andexpenditures recurs annually. It is usually not the capi-tal costs but the recurring costs that are much moreexpensive in the long run. Accordingly, an innovativeformula called the “Equation of Cumulative Impact”was introduced. This equation has proven to be veryconvenient in calculating the long-term impact ofrecurring costs or benefits.

The Executive Summary contains table source citationswhich refer the reader to tables in the full report.Copies of the full report have been placed in the mainbranches of Rhode Island city and town libraries. Toorder a copy, contact Grow Smart Rhode Island at(401) 273-5711.

ABOUT THE REPORT

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Grow Smart Rhode Island | The High Price ii

The following report looks back 40 years to assessthe costs of suburban sprawl and urban decay inRhode Island and projects through 2020 the costs ofcontinuing our current development pattern.

■ The report estimates that staying on our sprawlcourse over the next 20 years will cost RhodeIsland taxpayers almost $1.5 billion, a figureclose to our total annual state budget.

■ Tax revenue losses in decaying urban centersaccount for more than half the projected sprawlcosts. Another 15% of the total costs come fromtax revenue losses in non-urban areas. The cost ofbuilding and maintaining extra infrastructure—local roads, public schools, gas lines, electric util-ity lines, sanitary sewer lines, etc.—to accommo-date sprawl accounts for an additional 30% of the$1.5 billion figure.

■ As large as the estimated costs of sprawl are,they probably understate the real costs ofsprawl for several reasons. First, methodologi-cal obstacles precluded quantifying extra envi-ronmental and public health costs that resultfrom sprawl vs. more compact core develop-ment. Second, the cost estimates are based onlow population growth projections of only 4.4%.If our economy accelerates beyond its tradition-ally sluggish rates, these projections will beeclipsed and the costs of sprawl will increaseaccordingly. Third, the report assumes noincreased spending for state roads under asprawl scenario, a debatable assumption giventhe close historic relationship between sprawland additional road building.

In examining recent development patterns, theauthors found particularly disturbing trends forcities.

■ In the last 10 years, 1988–1998, total propertyvalues in the core cities (Woonsocket, CentralFalls, Pawtucket, Providence and Newport)declined by 24%, a decline of more than $3.3billion. At the same time, their effective taxrates went up by 44%, three times the rate ofincrease in rural communities.

■ As of 1995, there were nearly 11,000 vacantbuildings and lots in our five core cities.According to our consultants, this represents anestimated $1.3 billion in lost property value forthese cities.

■ Between 1980–1997 Rhode Island’s core citieshad a net loss of nearly 5,000 private sector jobswhile the rest of the state registered a net gainof approximately 48,000 private sector jobs.

■ As of 1990 urban core communities had only30% of the state’s families but 61% of all RIfamilies falling below the poverty line.

While sprawl is particularly harmful to cities, it’s notgood for the rest of the state either.

■ Rhode Island developed more residential,commercial, and industrial land in the last 34years than in its first 325 years. Only 65,000acres of residential, commercial, and industrialland was developed between 1636 and 1961, but1-1/2 times that amount—96,000 acres—wasdeveloped between 1961 and 1995. In this 34year-period, residential, commercial and indus-trial land increased at 9 times the rate of popu-lation growth.

■ Between 1964 and 1997 Rhode Island’s farm-land acreage was nearly cut in half, going from103,801 acres to only 55,256 acres.

■ Between 1988 and 1995 Rhode Island lost 11,500acres of farm and forest land, an area almost thesize of the whole city of Providence. The reportprojects that another 3,100 acres of farmlandand 24,000 acres of forestland will be consumedin the next 20 years under the sprawl develop-ment scenario.

THE HIGH PRICE OF URBAN DECAY AND SUBURBAN SPRAWL IN RHODE ISLAND

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iii Grow Smart Rhode Island | Call for Action

This report’s compelling findings present in starkdetail the social, economic, and environmental con-sequences of Rhode Island’s current inefficient useof land and infrastructure. They document the accel-erating consumption of open space in our outlyingareas and the steady drain of jobs, people and taxrevenues from our urban centers. The report is not,however, a call to stop growth. Rather, it is an urgentcall for action to institute the policies and practicesthat will enable Rhode Island to promote growth inthe areas where it can best benefit our citizens.

These changes in policies and practices are critical: If we do not change our current pattern of develop-ment, then we will limit our ability to grow longterm.

We in Rhode Island are fortunate to still have a win-dow of opportunity. A significant amount of ourland remains undeveloped, and we can work to-gether to ensure that a good portion of that land willstay forever green. At the same time, our urban resi-dential neighborhoods and downtown streets havenot yet lost the historic buildings and infrastructurewhich offer such potential for residential and com-mercial use.

There are already promising efforts under way inour cities, suburbs, and rural areas to combat theproblems of urban decay and sprawl. On the urbanfront there are widely acclaimed revitalizationefforts in Woonsocket’s Main Street and itsFairmount neighborhood. In Central Falls, an excit-ing multi-use project is slated for the BlackstoneRiver waterfront. Pawtucket is launching a newtourism center and moving forward with a stronghistoric preservation initiative. In Providence wehave a nationally recognized downtown revival

along with neighborhood initiatives for affordablehousing and community reinvestment and bold newplans to redevelop the Providence Port area. And inNewport a major harbor front renewal plan is gath-ering momentum as the city continues its growth asan international tourist center.

On the land preservation front, twenty-six RhodeIsland communities now have land trusts, under-scoring our commitment to preserving farms, forestsand open space. Regional planning and economicdevelopment initiatives offer additional positivesigns. On Aquidneck Island and in South County,local officials, community leaders and concerned cit-izens are working across town boundaries toaddress common problems through regional cooper-ation and planning.

These efforts cannot be fully successful, however,unless we address two underlying factors that cur-rently undermine our ability to shape our future.The first is Rhode Island’s over reliance on localproperty taxes to fund education. Our dependenceon property taxes puts unfair burdens on our oldercities because they have low property values andnumerous tax exempt properties. It also pits commu-nity against community in the competition to attractnew businesses, leads towns to accept businessdemands for inappropriate siting of new facilities,and—in perhaps the greatest irony for a state thatneeds population growth to help fuel economicgrowth—means that families with children are nolonger welcome additions in many Rhode Islandcommunities. The second underlying problem is theabsence of a coordinated, integrated and clearlyarticulated statewide approach for planning majorland use and conservation initiatives and directingeconomic development to the areas that will bestbenefit the state.

A CALL FOR ACTION

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Grow Smart Rhode Island | Call for Action iv

There are a number of broad directions for public policy indicated by our report’s findings.

■ Let’s commit as a state to actively promote reuse ofthe vacant lots and empty buildings in Rhode Island’surban centers and to turn tax losses into tax revenues.To do so, we need to beef up our existing incentivesand assistance for Brownfields redevelopment andstreamline building rehab codes to promote morereuse of existing homes and buildings. We also needto encourage rehabilitation of the many historichomes in our cities and towns through expansion ofthe state historic preservation tax credit.

■ Let’s ensure that a good portion of Rhode Island’sprime agricultural lands will continue to be activelyfarmed and that Rhode Island will preserve a signifi-cant percentage of forests and open spaces to protectour water supply, preserve our state’s scenic beauty,and provide recreation for our citizens and habitatfor wildlife. To do so, we must commit the state,local and private funds necessary to protect openspace in perpetuity and to fund specific farmlandpreservation efforts. We must also ensure that ourtowns have the planning expertise and resources toconserve open space through creative developmentpractices.

■ Let’s ensure that a range of safe and affordablehousing choices accommodating the varied needs ofall Rhode Islanders is available in all communities.To do so, we need to provide state funding foraffordable housing and to address the danger posedby lead paint in older properties.

■ Let’s plan for a future in which additional growthdoes not make greater traffic congestion inevitableand in which all Rhode Islanders are ensured accessto jobs and community services. To do so, we need amore extensive and efficient mass transit system.

We Rhode Islanders are creative, resilient and pub-lic-spirited. When we recognized the plight of chil-dren without adequate health care, we developed aRITE CARE health program that is a national model.When state and city officials came together to moverivers in downtown Providence, we transformed aneyesore into a national urban showpiece. In the lastdecade, business and labor in Rhode Island have putaside longstanding differences to implement majorreforms in our workers compensation system andsuccessful incentives for targeted economic growthin such sectors as financial services and insurance.

Now we can use our limited window of opportunityand fashion a new, enlightened approach to growth,one that strengthens our cities, protects our specialplaces and expands economic opportunity. GrowSmart welcomes the opportunity to respond to thischallenge, and to work with Rhode Islanders fromall walks of life to ensure that we can shape ourstate’s future by choice rather than chance.

James H. DodgeChairman of the BoardGrow Smart Rhode Island

Scott WolfExecutive DirectorGrow Smart Rhode Island

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v HCPC, Inc. & Planimetrics, LLP | Authors’ Acknowledgements

The first draft was ready within five months of the study’s initi-ation in January of 1999, but it took the remainder of 1999 torefine the report. The nine members of the Grow Smart RhodeIsland Task Force, who are listed below, spent many hoursreviewing the report and provided many constructive com-ments. They also assisted us in obtaining hard-to-get data andshared their intimate knowledge of their communities. Threeindividuals were particularly helpful. Peter Marino, who servedas Chairman of the Task Force for this study, is also the Directorof Policy for the Rhode Island Public Expenditure Council, andhe shared his expertise in public finance and RIPEC’s researchresources. Scott Wolf, Executive Director GSRI, has been a defacto editor in chief and assembled, organized and forwardedthe review comments from task members and many others whovolunteered to review the draft reports. This made theresearchers’ job immensely easier in completing the report.Sheila Brush, GSRI’s Program Director, deserves our apprecia-tion. She provided a great deal of guidance in familiarizing uswith Rhode Island at the inception of the study, continuing to

help us up through the completion of this study. Finally, wewould like to acknowledge Professor Howard Foster,Department of Community Planning, University of RhodeIsland who read our first draft report.

The Rhode Island Statewide Planning Program staff was partic-ularly helpful. Kevin Nelson served as a member of the TaskForce and provided careful review comments and insightfulsuggestions. Other staff planners to whom we owe thanks forsharing various planning data and reports include: JohnO’Brien, Chief of the Statewide Planning Program, Mark G.Brown, George W. Johnson, Walter Slocomb, and JohnStacklehouse.

In addition, many public and nonpublic agencies providedvaluable data for our study. Without their assistance, the studycould not have been conducted in its present form. These agen-cies are listed below.

City of Cranston, Department of Planning & Development(Kevin Flynn)City of Providence, Department of Planning & Development(Jon Ozbek)Cities and towns of Rhode Island, Finance Departments andTax Assessors’ OfficesNational Center for Health StatisticsProvidence Energy Corporation (James Dodge)The Providence Plan (Jim Vandermillen)Providence Public LibraryRhode Island Association of Realtors (Susan Arnold)Rhode Island Builders Association (Roger Warren)R. I. Department of Administration, Office of MunicipalAffairs and Division of Planning (Phyllis Ferreira)Rhode Island Department of Elementary and SecondaryEducation (Dr. Dennis Cheek)Rhode Island Department of Environmental ManagementRhode Island Department of Health, Office of Health StatisticsRhode Island Department of Labor & Training, Labor MarketInformation Unit (Mary M. Cooper, Phillip Gay, MariaFerreira)Rhode Island Division of Motor Vehicles (Thomas Harrington)Rhode Island Department of Transportation, GIS (Robert A. Shawver)

Rhode Island Economic Development Corporation, ResearchDivision (Vincent Harrington, Beth Ashman Collins)Rhode Island Geographical Information SystemRhode Island Housing (Jean Burritt Robertson)Rhode Island Public Expenditure Council (Peter Marino)Rhode Island Public Transit Authority (James Eagan) Rhode Island State LibraryRhode Island State Planning CouncilUniversity of Rhode Island, Graduate Curriculum inCommunity Planning and Area DevelopmentSouthern New England Forest Consortium, Inc. (ChrisModisette)Town of South Kingstown, Planning Department (Anthony W.Lachowicz)Town of Smithfield, Planning Department (Jeanne Tracey-McAreavey)United Way of Southeastern New England United States Department of AgricultureLastly, several staff members of HCPC and Planimetrics whoassisted the researchers with data collection, data entry, map-ping, word processing, and editing deserve acknowledgment.

AUTHORS’ ACKNOWLEDGEMENTS

PETER MARINO, The Rhode Island Public ExpenditureCouncilDAN BAUDOUIN, The Providence FoundationJUDY BENEDICT, The Nature ConservancySUSAN BODDINGTON, Rhode Island Housing JEANNE BOYLE, City of East Providence

BETH COLLINS, Rhode Island Economic Policy CouncilDOUGLAS JOHNSON, Heritage Consultant GroupKEVIN NELSON, Rhode Island Office of Statewide PlanningDAN VARIN, Retired, former head of RI Statewide PlanningOffice

GROW SMART RHODE ISLAND GROWTH IMPACT STUDY TASK FORCE MEMBERS

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HCPC, Inc. & Planimetrics, LLP | Executive Summary 1

This executive summary presents highlights of acomprehensive study that was prepared for GrowSmart Rhode Island. Grow Smart Rhode Island is anot-for-profit organization representing a statewidecoalition of public and private-sector individualsand organizations who share a common concernabout the current pattern of development in RhodeIsland. The coalition’s purpose is to educate RhodeIsland’s citizens and leaders about patterns of devel-opment that can accommodate economic growthwhile at the same time conserving natural resources,preserving the traditional character of our communi-ties, and ensuring that all Rhode Islanders haveequitable access to affordable housing, jobs andcommunity services.

The purpose of this study was to estimate the poten-tial costs of suburban sprawl and urban decay in thestate. The summary of our findings is presented intwo parts. Part I analyzes past growth trends inRhode Island and growth projections over the nexttwo decades (2000–2020). Part II presents the esti-mated costs of sprawl.

SPRAWL DEFINED

The term “suburban sprawl” refers to a low-density,large-lot, and scattered pattern of development that,in this study, is characterized as “an inefficientdevelopment pattern.” Sprawl describes land devel-opment trends and patterns which are wastefulbecause they tend to consume an unnecessarily largeamount of natural resources, require redundant capi-tal investments (public facilities and infrastructures),and waste considerable human resources by makingpeople commute unnecessarily long distances.Sprawl is also wasteful because it causes the under-utilization of sizable investments already made inurban areas.

The report contends that sprawl is not only wasteful,but that it also limits individual choices and encour-ages a segregated society that in turn creates socialand economic chasms between urban and suburbancommunities.

Suburban sprawl, which has been taking place inRhode Island for the past 50 years, can be explained

by a Circular Model of Sprawl, which is depictedgraphically on page 2. The model consists of twosubmodels, a suburban sprawl model (Fig. 1A) andan urban decay model (Fig. 1B).

Suburban Sprawl Model: Lured by cheaper outlyingland, lower property taxes, ample open spaces, newpublic facilities and schools and also encouraged bygovernmental subsidies for home ownership andhighway construction, an increasing number of fam-ilies with children have settled in inner and outersuburban areas. The growing number of familiesmoving into these areas has placed increased bur-dens on municipal services, public facilities, infra-structure, and schools. The result of such trends ishigher municipal expenditures and a need forincreased tax revenues.

In the hope of holding down tax rates, suburban andrural towns often seek to expand their tax base bybringing more industries and businesses into theirtowns. However, additional commercial and indus-trial employment attract even more residents. Thesuburban growth cycle is now complete and readyto repeat itself. Some residents may find their townsare getting too “crowded” and are ready to move tomore rural areas.

Urban Decay Model: Between 1940 and 1990, whilethe state’s overall population increased by morethan 40%, Providence’s population declined by morethan a third (-36.6%), from 253,504 in 1940 to 160,728in 1990, one of the steepest mid century rates of pop-ulation loss among American cities. As the suburbanpopulation grew, businesses and industries began tolocate their offices, stores, and plants in the suburbs,which aggravated the existing urban decay.

This depopulation of the cities deprived them oftheir ability to rejuvenate themselves by redevelop-ing old properties and facilities through the market.Thus, urban centers have been left with many agingand deteriorating properties, facilities and infra-structures. As a result, some properties have beenabandoned by their owners with city taxes leftunpaid. This has produced a decline in these cities’property values and tax revenues.

INTRODUCTION

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Figure 1A, Suburban Sprawl

While the urban tax base has declined, the need forpublic services and investments in many cities hasmultiplied. Since the non-poor are those most likelyto leave the cities, urban areas are left with a dispro-portionate concentration of low income groups. Thisrelatively high concentration of low-income groupsobliges cities and the state to expand their servicesto the needy. Because many private properties incities cannot attract private investments for redevel-opment, cities are increasingly called upon to makepublic investments through city-sponsored urbanrenewal programs that offer subsidies to entice pri-vate investments.

This increased demand for government interventioncomes only after property values and property taxrevenues have already dwindled. Thus, numerouscities are forced to increase their taxes. This patternis evident in Rhode Island where a recent (1998)Rhode Island Public Expenditure Council reportshows that the average effective tax or mil rate in thestate’s 10 urban communities was 30.70 ($30.70 per$1,000 equalized property valuations) compared to18.15 for the 29 non-urban communities. In otherwords, the owner of a $100,000 home must pay anaverage property tax of $3,070 in urban areas butonly $1,815 in non-urban areas.

Many remaining city residents who own homesmeanwhile find that they must pay higher taxes andyet live with a decaying urban environment. Thus,the decaying cities push the non-poor out as much asthe suburbs pull them in. The full cycle of suburbansprawl is complete, and another new cycle begins.The predicament of urban decay sends more peopleto the suburbs, which exacerbates the sprawl processalready occurring there. In this circular process, itdoes not matter whether the suburban sprawl or theurban decay came first: once the process has been setin motion, it keeps going.

Figure 1B, Urban Decay

CLASSIFICATION OF RHODE ISLANDCOMMUNITIES

In order to analyze the impacts of suburban sprawland urban decay in Rhode Island, we have classifiedthe state’s 39 municipalities into four groups: UrbanCore, Urban Ring, Suburban, and Rural/EmergingSuburban. For the sake of brevity, we will refer tothose groups as Core, Ring, Suburban, and Rural.Figure 2 on page 3 shows the classifications.

Urban Core, characterized by high gross populationdensity and population decline: Central Falls, Newport, Pawtucket, Providence,Woonsocket (5 communities)

Urban Ring, characterized by medium gross densityand very slow or no growth:Cranston, East Providence, North Providence,Warwick, West Warwick (5 communities)

Suburban, characterized by low gross density and slow growth:Barrington, Bristol, Cumberland, East Greenwich,Jamestown, Johnston, Lincoln, Middletown,Narragansett, North Kingstown, Portsmouth,Smithfield, Warren, Westerly (14 communities)

Rural/Emerging Suburban, characterized by verylow gross density and rapid growth:Burrillville, Charlestown, Coventry, Exeter, Foster,Glocester, Hopkinton, Little Compton, NewShoreham, North Smithfield, Richmond, Scituate,South Kingstown, Tiverton, West Greenwich (15communities)

2 The Costs of Suburban Sprawl and Urban Decay in Rhode Island

More Homes

More Commerce & Industry

Greater Spending

Needs

Less Open Space

LowerPropertyValues

Less Homes

Higher Tax Rates

Higher Tax

Rates

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HCPC, Inc. & Planimetrics, LLP | Executive Summary 3

Figure 2Classification of Cities and Towns in Rhode Island

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4 The Costs of Suburban Sprawl and Urban Decay in Rhode Island

PART I

RHODE ISLAND GROWTH TRENDS

Rhode Island is the smallest state in the Union,encompassing 1,214 square miles and inhabited byapproximately a million people as of 1998. Thewhole state may be considered as a metropolitanarea, most of which can be reached within an hourof driving from its capital, the City of Providence(population, 151,000). Rhode Island’s populationdensity is the second highest in the nation after NewJersey’s.

Between 1980 and 1997, the total population ofRhode Island grew by 4.2% compared with an over-all growth in the United States of 18.2%. During thesame period, the number of jobs in Rhode Islandalso increased slowly. The private nonfarm establish-ment employment in Rhode Island rose by only 13%compared to 36% in the United States. However,Rhode Island’s estimated numbers of housing unitsand motor vehicles have grown at much faster ratesthan its population and employment, rising by 17%in the past two decades. The relatively faster growthof housing and motor vehicles underscores the rapidsuburbanization in the state.

Table 1Growth of Total Population, Jobs, Housing and MotorVehicles, Rhode Island, 1980, 1997, 2000, and 2020

(in thousands)

1980– 1980– 1980–1980 1997 2000 2020 1997 2000 2020

Proj. Proj. Proj. Proj.(%) (%) (%)

Pop. 947 987 1,012 1,057 4.2% 6.9% 4.4%

Jobs* 328 371 — — 13.1% — —

Housing 373 430 437 462 15.3% 17.2% 5.7%

Motor V. 623 710 725 831 14.0% 16.4% 14.6%

Source: Tables 3.3, 3.6, 3.8, 3.9 and 3.10. * Covered private establishmentemployment. — = not available.

According to the population projections prepared bythe Rhode Island Statewide Planning Program,Rhode Island’s total population is expected to growover the next twenty years at an even slower ratethan it has in the past two decades. However, inspite of the continued slow growth in the popula-tion, the numbers of housing units and motor vehi-cles are still expected to continue increasing fairlyrapidly.

HOUSING LOCATION TRENDS

Table 2 shows the past and expected future growthin the number of housing units by community type.Note that roughly 64,000 new dwellings are project-ed for Rhode Island between 1980 and 2000, butonly 30% of these housing units are forecast forurban (core and ring) areas while the remaining 70%are projected for non-urban (suburban and rural)areas.

The projected change in housing units over the nexttwo decades is even more skewed away from theurban core areas. Rhode Island is forecast to registera net gain of 25,000 housing units between 2000 and2020. However, the net gain includes a loss of 9,000in the five core cities and a gain of 34,000 units in thering, suburban and rural areas. In other words, non-urban areas are projected to gain housing units inthe next twenty years equivalent to 130% of thestatewide net gain in housing units.

Table 2Projected Growth and Distribution of Housing Units by Community Type, Rhode Island, 1980, 2000, and 2020

(in thousands)

Housing Units Units to be Added 20–YearAdded 1980–00 2000–2020 Growth Rate

Number % Number % 1980–00 2000–20

Core 3,200 5% –9,000 –36% 2.3 –6.5%

Ring 16,300 25% 1,700 7% 16.2 1.4%

Suburban 25,300 40% 15,700 63% 29.0 13.9%

Rural 19,200 30% 16,600 66% 38.7 24.2%

State 64,000 100% 25,000 100% 17.1 5.7%

Source: Appendix Table 3.3

In sum, of 34,000 new housing units, all but 1,700will be built in suburban towns (15,700 units) andrural towns (16,600 units). Clearly, this trend will bea threat to the conservation of natural resources insuburban and rural areas and will aggravate exist-ing urban decay.

LAND CONSUMPTION TRENDS

Although Rhode Island has experienced very slowpopulation growth rates over the last forty years,development in its suburban and rural areas has stillconsumed a considerable amount of land.

As shown in Figure 3 on the following page,between 1961 and 1995 land consumption in termsof average acres per housing unit increased consid-erably for all areas, but especially in rural and sub-urban towns.

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Figure 3Land Consumption Trends in Rhode Island, 1961–1995(Acres per Housing Unit)

Furthermore, while Rhode Island’s total populationincreased by only 16% during this thirty-four yearperiod, the state’s land consumption for residential,commercial and industrial uses increased by 147%,nine times faster than the population growth rate.Even more striking is that between 1961 and 1995,Rhode Island developed far more land (96,000 acres)for residential, commercial and industrial purposethan in the previous 325 years of the state’s existence(65,000 acres).

Table 3Developed Land* by Community TypeRhode Island, 1961, 1995, and 2020

Total Developed Land*Land (Acres) 1961-1995(Acres) Change

1995 1961 1995 2020 Amount %

Core 28,757 12,108 18,612 18,654 6,504 54%

Ring 59,315 14,358 31,941 33,086 17,583 122%

Suburb 176,509 20,996 56,421 67,422 35,425 169%

Rural 425,476 17,997 54,951 73,129 36,954 205%

State 690,057 65,459 161,925 192,290 96,466 147%

Source: Tables 4.4, 4.6, and 4.17. * Includes only residential,commercial, and industrial uses.

The land consumption rate was particularly high innon-urban areas: the amount of developed landincreased by 205% in rural towns and 169% in sub-urban towns. Even in urban areas, the total landconsumption increased by 122% in ring areas and54% in core cities.

Figure 4, on page 6, compares the location andextent of developed land in 1995 with that projectedfor 2020.

PART II

COST OF SPRAWL DEFINED

The (net) cost of sprawl is calculated to be the differ-ence between the gross costs of sprawl and the grosscosts of the best alternative to sprawl. In our study,we hypothesized that compact core developmentwould be the best alternative to sprawl. Compactcore development is a development scenario inwhich projected future growth is redirected amongthe four community types (core, ring, suburban, andrural). It is assumed that there will be no furtherpopulation decline in urban areas over the next twodecades, while there will be a considerable reductionin the growth rate of non-urban areas, as shown inTable 4. Thus, the cost of sprawl is:

Gross Costs of Sprawl– Gross Costs of Compact Core Development

Net Costs of Sprawl

It must be noted that (net) costs of sprawl may bealternately called (net) benefits of compact coredevelopment.

Table 4Number of Housing Units to Be Added under Sprawl andCompact Core Scenarios between 2000 and 2020

Sprawl Trend Compact CoreH. U. Percent H. U. Percent

Urban Core –9,000 –36% 5,000 20%

Urban Ring 1,700 7% 3,750 15%

Suburban 15,700 63% 6,250 25%

Rural/ES 16,600 66% 10,000 40%

State Total 25,000 100% 25,000 100%

Source: Table 6.4

LOSS OF FARMS AND FORESTLAND

Scattered large-lot residential development con-sumes a large amount of land including farms andforests. Between 1964 and 1997, the United StatesDepartment of Agriculture estimates that RhodeIsland’s farmland was roughly halved, from 103,801acres in 1964 to 55,256 acres in 1997. More recently,during the seven-year period between 1988 and1995, Rhode Island lost approximately 11,500 acresof farm and forest lands (1,500 acres of farmland andanother 10,000 acres of forestland). Put another way,

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6 The Costs of Suburban Sprawl and Urban Decay in Rhode Island

Figure 42020, Developed Land

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in seven years Rhode Island developed farm andforestland that was almost equal to the total landarea of the City of Providence (12,029 acres.) Thisloss of land has been taking place in spite of therelatively slow population growth documented inthis study. If the actual future population growthexceeds modest current projections, the landresources may be consumed all the sooner.

Future Loss of Farm and Forestland: How muchmore farm and forestlands Rhode Island will lose inthe future will depend on the pattern of develop-ment the state follows. If the current sprawl trendscontinue, as much as 3,100 acres of additional farm-land and 24,000 acres of forestland will most likelybe consumed by 2020. However, the acreage of farm-land consumption under the compact core develop-ment pattern is estimated at 1,600 acres, approxi-mately one-half of that resulting from the sprawldevelopment pattern. Thus, the compact core devel-opment model could preserve as much as 1,500 acresof farmland. Similarly, 14,000 acres of forestlandwould be developed under the compact core sce-nario, resulting in a savings of 10,000 acres of theseimportant natural resources.

Economic Value of Farmland: Farming adds to therural character of a town, but it is also a business.This report estimates that an additional 1,500 acresof farmland will be lost under the sprawl develop-ment scenario versus the compact core developmentmodel. The economic value of the agricultural prod-ucts that would be produced on those 1,500 acres isestimated at $13.6 million.

Loss of Rural Character: Many suburban and ruralresidents value the rural character of their towns.For example, West Greenwich’s ComprehensiveTown Plan states that its first development goal is to:“Promote preservation of the Town’s rural charac-ter…”. (Town of West Greenwich Comprehensive Plan,p. VI-30.) Unfortunately, at the rate that land con-sumption is occurring in suburban and rural towns,many towns are going to lose their rural character.The projected population growth indicates that threemore rural towns will become suburban towns overthe next two decades. This means that in the year2020, there will be only 12 rural towns left, and atthe current rate of development, all of these 12 ruraltowns will become suburban towns over the next 80years (12 rural towns converted at the rate of 3towns every two decades). In short, by the year2100, the entire state of Rhode Island may not haveany rural towns at all.

INFRASTRUCTURE COSTS

Capital costs of infrastructure such as roads, sewersystems, and schools are more expensive in a sprawlpattern than in a compact development pattern.

Local Roads: Rhode Island Department ofTransportation (RIDOT) data shows that as of 1995rural towns had on average 16.5 miles of local roadsper 1,000 housing units, or almost three times asmany as urban core communities (6.1 miles per 1,000housing units). At this rate, under sprawl develop-ment, over the next two decades 228 miles of localroads could be constructed at the cost of $182 mil-lion vs. 130 miles at a price of $104 million under thecompact core development scenario. In short, ifRhode Island develops in a compact developmentpattern, $78 million or 43% of projected local roadconstruction costs could be saved during the nexttwenty years.

State Roads: RIDOT officials believe that there willbe little need to expand the existing state highwaysystem in the near future. However, with sprawl,more travel mileage by drivers will necessitate morefrequent repairs, resurfacing, and rebuilding of theexisting systems.

School Facility Expansion Costs: This study projectsthat the K–12 public school students in the state willincrease by 8,900 students in two decades, or onaverage 445 students per year. As shown in Table 5,although the statewide increase is projected to be8,900 students, this figure masks the projected gainof 11,800 students in non-urban towns (5,200 stu-dents in suburban towns and 6,600 students in ruraltowns) because the core cities are projected to lose3,400 students while ring areas will gain only 500students under the sprawl (trend) scenario.

In contrast, under the compact core scenario, thecore cities are also forecast to gain students (1,900students), while enrollment growth in rural and sub-urban areas will be considerably reduced.

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8 The Costs of Suburban Sprawl and Urban Decay in Rhode Island

Table 5Public School Enrollment Growth andProjected Costs of School Expansion, Rhode Island 2000–2020

Sprawl Compact Core

Enroll- Costs of Enroll- Costs of Netment School ment School Costs ofChange Addi- Change Addi- Sprawl2000–20 tions 2000–20 tions ($MM)

($MM) ($MM)

Core -3,400 - 1,900 $19 -$19

Ring 500 $5 1,100 $12 -$7

Suburban 5,200 $52 2,000 $21 +$31

Rural 6,600 $66 4,000 $40 +$26

State 8,900 $123 9,000 $92 +$31

100% 74% 26%

Source: Table 9.9

The enrollment changes will be reflected in the capi-tal costs of school expansion programs faced by vari-ous communities. Under sprawl development, corecities will be faced with excess school capacitieswhile suburban and rural areas will have to addmore school facilities. On the other hand, under acompact core development model, the enrollmentgrowth should be more evenly spread among thefour community groups leading to many fewerschool expansion programs. As shown in Table 5,over the next two decades sprawl will cost an esti-mated $123 million as a result of school expansionscompared to $92 million under the compact core sce-nario. In sum, the statewide savings from adoptinga compact core development plan could be $31 mil-lion. The savings are particularly pronounced insuburban and rural communities: suburban townscould save $31 million and rural areas, $26 million.Meanwhile, urban core cities could incur an extra$19 million and urban ring communities could spend$7 million more for school expansion programs.

Utility Lines Installation Costs: The lengths of‘composite’ utility lines (sanitary sewers, water sup-ply, storm drainage, natural gas pipeline systems,and electricity and telephone lines) were estimatedat 308 miles under the sprawl development and 173miles under the compact core development model.Thus, sprawl development would require 133 moremiles of utility lines (43% more) than the compactcore devlopment model. (These estimates factor inthe impact of potential in-fill development and thepercentage of new homes likely to have septic sys-tems and/or wells.)

Table 6Capital Costs of Composite Utility LinesUnder Trend and Compact Core Development ScenariosRhode Island, 2000–2020

Sprawl Compact Core Costs ofLength Costs Length Costs SprawlMiles $MM Miles $MM $MM

Urban Core 0 $0 3 $4 -$4

Urban Ring 5 $7 11 $16 -$9

Suburban 117 $131 46 $52 $79

Rural 187 $168 112 $101 $67

State 309 $306 172 $173 $133

Source: Table 9.10

As shown in Table 6, the costs of composite utilitylines under sprawl development are estimated at$306 million vs. $173 million under compact coredevelopment. Thus, the net costs of sprawl or thebenefits of the compact core development optioncould be potentially $133 million, or 43% in savings.

Since utility-line installation costs are generallyassumed by the utility companies, they will eventu-ally be reflected in a higher utility rate structure forall customers.

Operating Costs of Infrastructure: Capital costs areone-time costs over the useful life of facilities; how-ever, operating costs of these facilities are annuallyrecurring costs whose cumulative sum over the nexttwenty years should prove considerable. It is esti-mated that Rhode Island could spend as much as$181 million more in operating infrastructure underthe sprawl development than the core developmentmodel over the next twenty years.

• Local Roads …. ……………. $14 million• School Facility Management $19 million• Pupil Transportation……….. $ 6 million• Public Sewer System……….. $142 million

Total $181 millionSource: Tables 9.13, 9.15, 9.17 and 9.18

SOCIAL COSTS OF DECAYINGURBAN CENTERS

Poverty in the Core Cities: Decaying urban centersare an undesired effect of suburban sprawl. As thecore cities experienced an exodus of mostly middleand upper income households, many low-incomefamilies moved into the core cities. The 1990 U.S.Census of Population data indicate that whereas thefive core cities had 30% of the state’s total

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number of families, they had 61% of the familiesbelow the poverty level. (See Figure 5 below.)

Figure 5 Distribution of Families Below Poverty Level

Similarly, the core cities had a high concentration ofpopulations needing public aid:

• 69% of the state’s total Family IndependenceProgram (formerly known as AFDC) cases in 1997

• 64% of the state’s total food stamp cases in 1995

• 71% of the state’s total number of students eligible for free/reduced lunch in 1998

Loss of Jobs from Core Cities: The core cities notonly lost many people to the suburbs, but they alsolost jobs. Between 1980 and 1997, the five core citieslost 4,600 private covered jobs (-3%) while the non-core communities gained nearly 48,000 jobs asshown in Figure 7. Jobs are now less accessible tolow-income families living in core cities.

Figure 6Covered Private Job Growth in Urban Core and Non–coreAreas, Rhode Island, 1980–1997*

*Including urban ring, suburban and rural areas.

Social Stratification: The flight of the mostly non-poor to non-urban areas and the concentration of thepoor in central cities has accentuated an urban-sub-urban contrast. Social stratification is clearly exhibit-ed by geographical separation of society by incomelevel, ethnicity and race. We list the following statis-tics that highlight the contrast between suburbancommunities and inner cities:

• 82% of all minority students in the state are con-centrated in the five core cities, with only 10% inring, 5% in suburban, and 3% in rural areas.

• Although minority students constituted only 27%of core cities’ public school enrollment in 1981, by1997, they represented nearly 60% of all publicschool students in core cities.

Over the next twenty years, the urban-suburbandichotomy is likely to become more pronounced ifthe current sprawl trend continues.

ECONOMIC IMPACTS ON DECAYINGURBAN CENTERS

While social changes in core cities have necessitatedgreater state and municipal expenditures to providecommunity services and assistance to needy fami-lies, the tax base (property value) of core cities hasdiminished because of a deteriorating physical envi-ronment.

Vacant Buildings and Lots: The continued exodusof people and businesses from the core cities pro-duced a large stock of empty (often abandoned)buildings and vacant lots. As of 1999, 560 buildingswere vacant in Providence alone. Vacant lots inProvidence covered 934 acres of land in 1998, nearly8% of the citywide acreage.

As of 1995, there were approximately 10,788 vacantlots in the five urban core communities, consisting of8,723 residential vacant lots and 2,065commercial/industrial vacant lots. These vacant lotsrepresented an estimated loss of $1.3 billion worthof assessed valuations in the five core cities.

If the current trends continue, core cities are project-ed to lose an additional 9,000 residential units andan unknown number of commercial/industrialestablishments by 2020. Thus, under a sprawl pat-tern, it is certain that more vacant buildings andempty lots will materialize in core cities, which willin turn cause a further depreciation of inner city

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10 The Costs of Suburban Sprawl and Urban Decay in Rhode Island

property values. However, if the current trend isreversed and the core cities gain more households,core cities will not only stop the increase in vacantlots but will also be able to redevelop many of thevacant lots currently existing, thus converting non-tax producing lots into tax-paying properties. It isestimated that over the next twenty years compactcore development will benefit core cities by reclaim-ing $400 million more in taxes, consisting of $183million from residential redevelopment and $217million from commercial/industrial development.(These figures represent the net tax revenue increaseafter calculating the costs of providing communityservices to an increased number of households.)

Citywide Effects on Core City Property Values: Thenegative impacts on decaying cities are not confinedto vacant buildings and lots. These impacts are city-wide for two major reasons: (1) a decline in housingdemand and an excess housing supply tend toreduce the property values throughout core cities;and (2) vacant buildings and lots scattered through-out cities negatively affect the property values ofentire neighborhoods. (The value of a well-main-tained building will decrease if the building next toit is a boarded-up building.)

As shown in Table 7, the full or equalized propertyvalue (in 1998 dollars) of Rhode Island declined by1% between 1988 and 1998 while the statewide popu-lation declined by 0.4%. However, such statewidedata mask the fact that urban core cities lost over $3.3billion worth of property values, a decline of 24% ina decade. Similarly, urban ring communities lost $1.5billion in property value, a decline of 10%. In con-trast, suburban towns’ property values increased by$1.9 billion or 12%, while rural areas experienced again of $2.1 billion in property values or 24%. Thesechanges in property values paralleled very closelypopulation changes in these communities.

It must be noted that the decrease in property valua-tions in urban areas was due largely to the deprecia-tion of existing properties, while the increase inproperty values in non-urban areas was largely dueto the addition of new homes. Here is another rea-son why purchasing a home in urban areas has oftennot been a good investment, and why some whocould afford to leave cities have done so.

Table 7Changes in Full (Equalized) Property ValuesRhode Island, 1988-1998

Changes in Property Changes in % ChangeValues 1988–1998 Population in Effective

1988–1998 Tax Rate

$Billion Percent Persons Percent Percent

Core -$3.26 -24% -21,800 -7% +44%

Ring -$1.46 -10% -5,700 -2% +31%

Suburban +$1.93 +12% +11,100 +4% +19%

Rural +$2.11 +24% +12,700 +5% +15%

State -$0.68 -1% -3,700 -0.4% +24%

Source: Tables 10.17, 10.18 and 10.22

Increasing Tax Rates in Urban Areas: Since thevalue of the urban tax base has declined, centralcities have had to increase tax rates in order to main-tain tax revenues. Between 1988 and 1998, the effec-tive tax rates of central cities increased nearly threetimes faster than those for the rural towns. Overalleffective tax rate increases were 44% in core cities,31% in ring communities, 19% in suburban towns,and 15% in rural towns (see last column of Table 7).

Core Cities’ Tax Revenue Loss under Sprawl: Given that sprawl has been present for some time,what impacts do we project for core cities under thesprawl and compact core scenarios?

It is estimated that during the next two decades thefive core cities will lose 22,200 persons and $3.3 bil-lion in total property values if the current sprawltrends prevail. In contrast, core cities could add9,000 persons and increase their property values by$1.3 billion under a compact core development sce-nario. In other words, if the compact core scenario isrealized, the core cities’ property values could havea net increase of nearly $4.7 billion, which consistsof not losing more than $3.3 billion combined with again of more than $1.3 billion in extra property val-ues resulting from the redirected population growth.The nearly $4.7 billion in extra net property valuescan be translated into cumulative tax revenues of$782 million over the next twenty years, or annualtax revenues of $39 million per year at the currenteffective tax rate.

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FISCAL IMPACT OF SPRAWL ONNON-URBAN AREAS

In spite of increased tax bases, why have suburbanand rural towns been experiencing tax rate hikes?

The answer lies in the circular model of suburbansprawl. According to past studies, four Rhode Islandtowns (Hopkinton, West Greenwich, Little Compton,and North Kingstown) spend on average $1.17 forevery $1.00 collected from residential properties. Inother words, residential development is a net taxburden to towns because expenditures to serve theseresidences exceed the town revenues resulting fromresidential development. Therefore, as moredwellings are built, a higher tax liability develops,producing tax rate hikes. (Southern New EnglandForest Consortium, Inc., Cost of Community Servicesfor selected New England towns; Town of NorthKingstown, Cost of Community Services, Study; and astudy of Little Compton by Houston L. and D.Wichelns)

It was also found that commercial/industrial land aswell as open spaces provide tax benefits to townsbecause towns spend only 43 cents per one-dollar ofproperty tax revenue from commercial/industrialland uses, and 38 cents per one-dollar of revenuefrom open spaces. As more farms, forestlands andopen spaces are consumed for residential develop-ment, net tax benefits turn into net tax liabilities.

In order to minimize the potential tax rate hikes dueto residential development, many towns are activelyseeking new commercial and industrial develop-ments. However, the dilemma of sprawl is thatmore employment opportunities brought by commer-cial and industrial development attract more house-holds into towns. Thus, the commercial/industrialdevelopment itself can set off another cycle of morehomes, less open space, tax hikes, and more com-mercial/industrial developments.

Fiscal Impact of Various Land Uses: A comparisonof the fiscal impact of various land uses under thesprawl and compact core scenarios is summarized inTable 8. Note that

• Under the compact development scenario, resi-dential land uses produce $23.1 million lessinmunicipal revenue shortfalls to suburban andrural communities than sprawl developmentdoes.

• The sprawl development model could produce$3.4 million more in tax benefits to the suburbanand rural towns from commercial and industrialsources than would be generated by the compactdevelopment model, but not enough to offset thetax revenue shortfalls resulting from increasedresidential construction.

• Farms, forests and open space in suburban andrural communities generate net tax surpluses aslong as they are not developed residentially. Withcompact development, less tax money ($0.48 mil-lion) will be lost from farm, forest, and openspace land uses than under sprawl development.

Table 8Municipal Revenue Surplus or Shortfall by Land Use under Sprawl and Compact Core DevelopmentRhode Island, 2020

Revenue Surplus or Shortfallin the Year 2020 Difference in

Land Use Trend Compact Tax Surplus(Sprawl) Core or Shortfall$Million $ Million $Million

Residential -$47.1 -$23.9 -$23.1

Commercial/Industrial +$6.7 +$3.3 +$3.4

Farms, Forests & Open Spaces -$1.1 -$0.6 -$0.5

Total -$41.5 -$21.3 -$20.2

Source: Table 11.6

Suburban and rural towns are likely to experiencerevenue shortfalls under both the sprawl and com-pact scenarios. However, overall annual revenuedeficits are projected to be greater under the sprawlscenario than under compact development. By 2020,the potential annual deficit of $41.5 million under asprawl scenario could be as much as $20.2 millionmore than the deficit of $21.3 million under a com-pact scenario. The cumulative impact over the twen-ty years could be as much as $212 million, or, onaverage, $10.6 million per year.

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12 The Costs of Suburban Sprawl and Urban Decay in Rhode Island

TRANSPORTATION AND TRAVEL COSTS

As sprawl development trends continue, more carsare purchased and more miles are driven. Accordingto the Federal Highway Administration, as of 1997Rhode Island had a total of 709,680 motor vehiclesincluding 515,446 automobiles, 1,745 buses, and192,489 trucks. There were also 17,741 motorcycles.

Growth of Motor Vehicles during the Past 20 Years:In the United States and Rhode Island, the numberof motor vehicles is projected to have increased twoand one-half times faster than the populationgrowth during the last 20 years (1980–2000). Whilethe population of the state as a whole is projected tohave grown by only 6.8% between 1980 and 2000,both numbers of housing units and motor vehiclesare projected to have increased by approximately17%. The growth of motor vehicles in rural areas isparticularly pronounced: while the population of therural areas is projected to have increased by 23%between 1980 and 2000, the number of motor vehi-cles is projected to have increased by 48%. The pro-jections show that this trend may continue over thenext twenty years.

Growth of Motor Vehicles Over the Next 20 Years:Future land use development patterns (e.g., sprawlvs. the compact core option) will have considerableimpacts on the growth of motor vehicles in RhodeIsland.

As shown in Table 9, the current sprawl trend couldlead to an addition of nearly 58,100 motor vehiclesin twenty years. If the Compact Core plan is imple-mented, an estimated 47,500 new motor vehicles areprojected. Thus, under the Compact Core plan, therecould be 10,600 (18%) fewer new motor vehiclesthan there would be with sprawl. This is expectedbecause under the Compact Core option, fewer peo-ple will live in the suburban and rural areas wherecar ownership per capita is greater than in the cities.

Table 9Estimated Growth of Motor Vehicles under Trend (Sprawl)and Compact Core Development ScenariosRhode Island, 2000–2020

Trend (Sprawl) Compact Core

Number # of # of # of # of of Motor H.U. M.V. H.U. M.V.Veh. Per to be to be to be to beDwelling Added Added Added Added

Urban Core 1.32 -9,000 -11,900 5,000 6,600

Urban Ring 1.87 1,700 3,200 3,750 7,000

Suburban 1.98 15,700 31,100 6,250 12,400

Rural 2.15 16,600 35,700 10,000 21,500

State Total 1.80 25,000 58,100 25,000 47,500

Source: Table 12.4

Vehicle Miles Traveled: Sprawl generates moretotal miles of vehicle travel per car than compactforms of development do. In the United States,the daily commute length increased by 36.5%between 1983 and 1995. Similarly, dependency onpersonal automobiles for travel has increased.77% of travel was done by automobiles in 1970,but this percentage increased to 87% by 1990. Incomparison, Rhode Islanders are using automo-biles at an even higher level than the rest of theUnited States. In 1970, 82% of all travel in RhodeIsland was done by automobile and in 1990, thisfigure had increased to 90%. Furthermore, 78% ofwork trips in Rhode Island were done in single-occupant automobiles. Single occupant commut-ing travel time had also increased from 18.3 min-utes in 1970 to 19.6 minutes by 1990.

Table 10Total Mileage Driven Per Year in the Year 2020 for RhodeIsland under Trend (Sprawl) and Compact CoreDevelopment Scenarios with 25,000 New Housing Units

Annual Trend (Sprawl) Compact Core

Vehicle # of Total # of TotalMiles of H.U. Mileage H.U. MileageTravel per to be Driven to be DrivenDwelling Added Per Year Added Per Year

Million MillionMiles Miles

Urban Core 12,936 -9,000 -117 5,000 65

Urban Ring 14,081 1,700 24 3,750 53

Suburban 15,290 15,700 240 6,250 96

Rural 18,710 16,600 311 10,000 187

State Total * 25,000 458 25,000 400

Source: Table 12.9 * State total varies according to future development patterns.

Note that in Table 10, the annual mileage drivenby all new households under sprawl developmentis estimated at 458 million miles in the 20th year(Year 2020) when all 34,000 units have been built,including a reduction of 9,000 units from the corecities. This number will be 400 million milesunder the Compact Core scenario. In short, RhodeIslanders are projected to drive 13% (58 millionmiles) more under sprawl development thanunder a compact core development scenario in theyear 2020 alone. Cumulatively, the additionalmileage driven by 25,000 households over the nexttwenty years is calculated to be 609 million milesas a result of sprawl development.

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Negative Impact on Environment: The redundantgrowth of cars (10,600 motor vehicles) and addition-al cumulative mileage (609 million miles) to be driv-en over the next 20 years as a result of sprawl devel-opment suggest that a considerable quantity of pol-lutants is likely to be added to the Rhode Islandenvironment if sprawl continues. We can surmisethat the growing number of cars is likely to produceroad congestion and impacts on the environment. Itis generally believed that freeway congestion causeslower worker productivity, more accidents, wastedfuel, and increased auto maintenance. Increasedautomobile emissions result in acid rain, chronichealth problems, and even forest damage. Sincesprawl development is projected to generate 18%more motor vehicles and 13% more vehicle milestraveled than a compact core development scenariowould, we may surmise that sprawl developmentproduces roughly 13% to 18% more negative effectson our environment than the compact core develop-ment would.

COSTS OF SPRAWL SUMMARIZED

Rhode Island has incurred substantial costs from thesprawl development patterns of the past 50 years.However, the past costs are sunk costs and have nodirect bearing on future investment decisions.Therefore, we have focused on projected future costsin this report. The highlights of the findings are:

Total Net Costs of Sprawl: Over the next twentyyears (2000–2020), sprawl development will costapproximately $1.43 billion ($71.6 million per year)more than the Compact Core development option.The costs are summarized and compared in Table 11.

Less Property Tax Revenues: Most of these costs are potential property tax losses to Rhode Islandcommunities. Estimates are that the five urban corecommunities in Rhode Island stand to lose $782 mil-lion in property tax revenues due to urban decaywhile the twenty-nine suburban and rural communi-ties could lose $212 million in property taxes overthe next twenty years if they do not redirect theirgrowth into a compact core development pattern.

Table 11Summary of Costs of Sprawl in Rhode Island(Costs of adding 25,000 housing units in 20 years)(In 1998 dollars)

Net Cost Net Cost Cost Items of Sprawl of Sprawl

(20 Yrs.) per Year $ Million $ Million

A. Capital Cost of InfrastructureLocal roads (Table 9.3) 78 3.9Schools (Table 9.9) 32 1.6Utilities (Table 9.10) 133 6.7Subtotal $243 $12.2

B. Operating Cost of Infrastructure Local roads (Table 9.13) 14 0.7State roads (see p. 9-4) * *School Facility Management 19 0.9(Table 9.15)School Transportation (Table 9.17) 6 0.3Utilities (Table 9.18) 142 7.1Subtotal $181 $9.1

C. Value of Agricultural Products Lostdue to disappearing Farmlands (T.8.5) $14 $0.7

D. Decaying Urban Centers: Tax Revenue Loss due to Depreciated Properties (Table 10.21) $782 $39.1

E. Tax Revenue Loss due to Sprawlin Non-Urban Areas (Table 11.7) $212 $10.6

F. Total Expenditure (A+B)** 424 21.2G. Total Revenue Loss (C+D+E)*** 1,008 50.4H. Total Costs (F+G) $1,432 $71.6

* Considered insignificant; ** Includes capital and operating costs ofinfrastructure. Minor part of these costs may be considered as privatecosts. For example, part of local roads may be constructed by privatedevelopers; *** Potential tax revenue losses from urban and non-urbanareas.

More Expenditures for Redundant Infrastructure:While suburban sprawl could cost Rhode Island hugepotential property tax losses, suburban sprawl andurban decay could also result in $243 million in addi-tional capital expenditures to finance redundantschool expansions, road construction, and utilityinstallation, costs which should not be necessary if thestate develops in a compact core pattern.Communities could also incur an additional $181 mil-lion in costs to operate this redundant infrastructure.

Higher Property Tax Rates: Between 1988 and 1998,effective tax rates increased by 44% in urban core,31% in urban ring, 19% in suburban, and 15% inrural/emerging communities in Rhode Island.Under sprawl development, many communities arelikely to experience significant losses in their proper-ty tax base and/or a rise in municipal propertytaxes.

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14 The Costs of Suburban Sprawl and Urban Decay in Rhode Island

Intangible Costs: Finally, the most important cost ofsprawl is what we cannot easily measure in mone-tary terms: the loss of what we value a great dealsuch as natural resources, rural character, culturalheritage, environmental quality, and the freedom tochoose from a wide variety of living environments.

It is important to note that costs were calculatedassuming that 25,000 housing units will be added inRhode Island over the next twenty years.

This assumption is consistent with the modest pop-ulation growth projections prepared by the RhodeIsland Statewide Planning Program. If the actualgrowth in the state turns out to be greater than theprojections, the benefits and advantages of compactcore development will be proportionately greaterthan those from sprawl and conversely, the net costsof sprawl will be far greater.

Figure 7 Projected Costs of Sprawl, Rhode Island, 2000–2020In Millions of Dollars

TOTAL COSTS OF SPRAWL—$1.432 BILLION

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HCPC, Inc. & Planimetrics, LLP | Executive Summary 15

This study focuses mainly on the results of redirect-ing a significant portion of the future growth pro-jected for Rhode Island’s non-urban communitiesinto the state’s urban communities. Nevertheless, asignificant amount of growth is still anticipated forsuburban and rural communities. What approachescan urban ring, suburban and rural communitiestake within their own boundaries to accommodategrowth while conserving natural resources and pre-serving traditional community character?

To begin to answer this question, three municipali-ties—Cranston, an urban ring community,Smithfield, a suburban community, and SouthKingstown, a rural/emerging suburban community—were chosen to serve as case studies. These com-munities were chosen because they are at differingstages of their development and still have substan-tial areas of vacant land.

The strategies illustrated in each of the case studiesare as follows:

Cranston—Accommodate a significant portion ofprojected growth by directing growth to existinghigher density areas in Eastern Cranston that areunder-utilized or are in need of re-development andby creating a new higher density node (section) inWestern Cranston.

Smithfield—Expand and re-establish historic villageareas to accommodate a significant portion of pro-jected growth.

South Kingstown—Expand existing multi-use,higher density areas so that they can accommodate asignificant portion of projected growth while ensur-ing that their village character is preserved and landconservation efforts are accelerated.

The development patterns resulting from these“smart growth” strategies were mapped for each ofthe communities, as were the patterns that are cur-rently being followed. When the two alternativedevelopment patterns were compared in each town,significant differences were noted as follows:

Cranston

• Both scenarios accommodate Cranston’s build-out population of 84,282 people. The smartgrowth scenario uses substantially less land areato do so.

• Growth concentrated in higher density nodescreates opportunities to preserve areas for openspace. Growth directed to urbanized areas of thecity provides opportunities for revitalization.

• RIGIS data indicated that portions of undevel-oped land were critical habitats in 1995. A sig-nificant portion of this land could be compro-mised under the trend (sprawl) build out sce-nario. Conversely, a significant amount of thisland could be preserved using an alternatesmart growth strategy

Smithfield

• Both scenarios accommodate the build-out pop-ulation of 30,140. The smart growth scenariouses substantially smaller areas of land to do so.

• Growth concentrated in the areas of Greenville,Georgiaville, and Esmond will maximize the useof existing community facilities and provide forthe continuation of a village pattern of develop-ment as recommended in the ComprehensivePlan.

• Less development in the northern and westernareas of town will permit preservation of rurallandscapes, roads, and scenic vistas, all of whichare recognized in the Comprehensive Plan asimportant cultural and economic resources.

• Smithfield has 930 acres of land suitable foragricultural use. Growth at build out, as illus-trated by Map GS-8, could consume thisresource.

MUNICIPAL CASE STUDIES

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16 The Costs of Suburban Sprawl and Urban Decay in Rhode Island

South Kingstown

• Both scenarios accommodate the build-out pop-ulation of South Kingstown. The smart growthscenario uses significantly less land area.

• Growth concentrated in the areas of Wakefield,Kingston, and URI enhances opportunities for agreater variety of housing within the town.Density levels and compact development pat-terns offer realistic opportunities for moreaffordable housing. The provision of moreaffordable housing is a stated goal in theComprehensive Plan

• The Comprehensive Plan notes that SouthKingstown is the most important single town inRhode Island for rare species and natural com-munities. The compact growth scenario permitsopportunities to preserve areas needed to sup-port such natural resources.

• The compact growth scenario would result inample areas of undeveloped land suitable fordefining a system of greenways to complementthe core and periphery pattern of development.These greenways and the reinforcement of desir-able patterns of development are goalsexpressed in the Comprehensive Plan.

Lessons for Other Communities

The Cranston case study suggests that urban ringcommunities may have more options for dealingwith future growth than other community types. Ingeneral, urban ring communities have the infrastruc-ture in place to support compact growth.Furthermore, they tend to have significant quantitiesof vacant land, and the established housing densitiesare high enough to permit compact development.

The Smithfield case study suggests that suburbancommunities typically have the infrastructure toservice areas of compact development necessary toimplement smart growth strategies. However, to agreat extent, existing development patterns, circula-tion patterns, and water and sewer service areas donot encourage focused growth.

The South Kingstown case study suggests thatrural/emerging suburban communities, as com-pared to other community types, have a betteropportunity to maintain their community character.This is because their character is primarily definedby undeveloped land that is perceived as openspace. This undeveloped land exists throughout thecommunity and is not concentrated in any one area.Rural/emerging suburban communities are at theearlier stages of their development so more choicesand opportunities are open to them.

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HCPC, Inc. & Planimetrics, LLP | Executive Summary 17

There are several important conclusions to be drawnfrom this study.

(1) Sprawl development costs much more than thecompact-core development option and thusleads to escalating property tax rates.

(2) In spite of the current slow economic and popu-lation growth in Rhode Island, sprawl develop-ment is consuming a significantly large amountof irreplaceable natural resources.

(3) Sprawl development diminishes rural characterand relatively low-density living in suburbanand rural towns. The dilemma of sprawl is thatthe greater the number of people who want tolive in a low-density living environment, themore difficult it will become to do so. At thesame time, urban decay makes it difficult forthose who prefer to live in an urban environ-ment to do so as well. Sprawl thus greatly cur-tails the freedom of choice.

(4) Suburban sprawl and urban decay are not twoseparate phenomena but are mirror images ofsprawl development. We cannot solve one prob-lem without solving the other. The circularmodel of sprawl and the empirical data present-ed in this report have demonstrated this point.

(5) Property values in core cities have been declin-ing while property values in suburban/ruralareas have been increasing. At the same time,property tax rates in urban communities havebeen increasing much faster than those in non-urban areas. This partly explains why people aremoving out of core cities and settling in non-urban areas.

(6) The decay in urban centers has lowered housingrentals, making these areas the only residentialoption for many who cannot afford to live insuburban/rural areas. Thus, urban centers haveattracted an increasingly large number of low-income households.

(7) Some form of compact development wouldbe the best alternative to suburban sprawl toaccomplish the twin goals of preserving openspaces/natural habitats and revitalizingurban areas.

(8) The establishment of sprawl is not accidental. Itis largely the unintended effect of the govern-ment’s policies to decentralize the population,encourage home ownership, and mitigate over-crowded urban centers. Reversing the trend ofthe past forty years of de-population in urbancenters will require the concerted efforts of fed-eral, state, and local governments, as well asbusinesses and industries to harness the pow-ers of the market to the public’s advantage.

(9) Transportation and tax policies are two crucialingredients for re-establishing a market envi-ronment for individual households and busi-nesses that will redirect these groups’ locationaldecisions.

(10) At a minimum, the state and local governmentsmust accelerate their land conservation andacquisition programs so that they can set asidea significant part of the state’s land for the pur-pose of establishing a permanent preserve.

(11) Rhode Island may very well find that being ageographically small state will serve as an assetin designing effective strategies to reverse theexisting sprawl trends.

(12) Rhode Island can solve its suburban sprawlproblem only if it solves its urban decayproblem.

CONCLUSIONS

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Incorporated in May, 1998, Grow Smart Rhode Island wasestablished to create a statewide voice for the many organiza-tions working locally and regionally to combat suburbansprawl and urban decay. Our primary objectives are:

■ To help citizens and officials understand the connectionbetween land conservation efforts and urban/town centerrevitalization, and to make the connection between envi-ronmental health, economic vitality, and social equity.

■ To provide a statewide framework for the smart growthactivities that are taking place in individual cities andtowns.

■ To identify and advocate state policies and legislation thatwill promote smart growth and support local and regionalefforts, with particular emphasis on improving the state’sability to perform comprehensive long range planning.

■ To promote cooperative effort and information sharingamong the different organizations addressing sprawl at alocal or special interest level. Through cooperative effort,organizations can maximize limited resources, learn fromeach other’s successes and failures, and identify andobtain new resources.

In less than two years, Grow Smart has established a broadstatewide coalition encompassing more than 50 organizations.Constituents range from business, religious, and universityleaders to builders, realtors, municipal planners, historicpreservationists, environmentalists, architects lawyers, farmers,non-profit housing developers, state agency officials, civilrights advocates and land trusts. We have developed a criticalmass of policy expertise and community support throughrecruitment of a diverse Board and Advisory Council, exten-sive opinion and policy research, co-sponsorship of confer-ences, and briefings for government officials.

A 501(c)(3) not-for-profit organization, Grow Smart RhodeIsland receives funding from private foundations, governmentagencies, and corporate and individual supporters.

18 The Costs of Suburban Sprawl and Urban Decay in Rhode Island

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