Economic Development reading

The Wall Street Journal published a section this week called "Economic Roundup." Lots of interesting articles, allow us to excerpt from two:

1. Title: The Little Engine That Could: In many cities, the hottest development is taking place along the train lines

...Most successful transit-oriented developments are public-private partnerships. Local governments build or refurbish rail lines and surrounding infrastructure like roads and parking facilities. Private developers then build in the surrounding areas. "There's a lot of research that shows that if the public sector puts money into a transit system, they can expect three to five times that amount in private money" for adjacent development, says Marilee Utter, president of Citiventure Associates LLC, a Denver firm that has worked with a number of cities on development around light-rail systems.

These developments can pay off for cities in several ways. Research shows that the value of commercial and residential properties close to transit stations often rises - and that translates into higher real-estate tax revenues in that area. Economists from the University of North Texas, for instance, found that between 1997 and 2001, office properties near suburban Dallas Area Rapid Transit stations increased in value 53% more than comparable properties not served by rail. Values of residential properties rose 39% more than a control group not served by rail.

2. Title: Safety First: For cities in search of growth, getting rid of crime definitely pays

...It may sound so simple, but city after city has found that getting crime under control is the crucial foundation to stimulating economic development. Indeed, the trend toward placing police sub-stations in apartment buildings and shopping centers took off after cities found that establishing a stronger law-enforcement presence in an area that was once written off established a beachhead for economic growth... Research published in the February issue of Economic Development Quarterly by David Bowes, an economics professor at Southeastern Louisiana University, found that retail developers will to some extent tolerate property crime. (In fact, he founjd that retail developments increase property crimes by acting as a lure to thieves.) However, he also found that retail developers were repelled by violent crime.

"What may be discouraging retail development is not higher costs associated with loss from theft or increased insurance rates but loss of potential customers who are reluctant to to into [violent] areas," writes Dr. Bowes.

Comment: With consultants from Denver, rail systems in Texas, and economists from Louisiana, this isn't just "big-city East Coast" information and thinking. For a whole section on municipal economic issues, including enforcing economic incentives, retaining college graduates, influence of casinos on state economics, and development vital signs, To read the whole section, get to your local library and check out Section R of the Monday 6/11/07 Wall Street Journal.