Sports stadiums and white flight

How the Atlanta Braves and Atlanta United went about procuring their stadiums hints at the city’s racial divides:

Accompanying the announcement, the team released a map showing where, precisely, Braves Country was—and, notably, where it wasn’t. That view of the greater Atlanta area was speckled with red dots, each one indicating the home of a 2012 ticket buyer, including season-ticket holders. Only a smattering of red appeared to the east, west and south of Turner Field, while thousands of dots congealed into a ribbon above downtown that expanded into a wide swath in the half-dozen suburban and exurban counties to the north. The new stadium would be closer to the middle of that mass, which happened to embody an older, whiter and more conservative population than the city proper. Those northern suburbs were fast diversifying, yet many in Atlanta—particularly in its black population—felt slighted by the decision, their perspectives colored by decades of racial and political tension between city and sprawl.

Five months later MLS commissioner Don Garber, Falcons owner Arthur Blank and then-mayor Kasim Reed proclaimed in their own press conference that downtown Atlanta would be home to MLS’s 22nd franchise, and the new club, Atlanta United, would take the pitch in 2017, the same year the Braves headed to Cobb. The soccer team would play in the same new $1.6 billion stadium the Falcons would soon call home, but United would be no afterthought. The facility would be designed to accommodate the beautiful game from the start. Pushing back against skepticism and pointing to an influx of young professionals near Atlanta’s urban core, Blank assured MLS’s leaders he could fill the massive venue, even in a market known for lukewarm enthusiasm toward pro sports. Reed boasted that his city’s foreign-born (and, seemingly implied, soccer-loving) population was growing at the second-fastest rate in the U.S. Garber himself insisted these factors combined to make downtown an ideal MLS incubator. The city “embodies what we call a ‘new America,'” he said, “an America that’s blossoming with ethnic diversity.”

Fast-forward five years, and Atlanta United’s ticket-sales map, while not a direct inverse, is considerably more centralized than Braves Country (or even, says United president Darren Eales, a depiction of the Falcons’ fan base). United, meanwhile, aided no doubt by winning the 2018 MLS Cup, has led MLS in attendance in each of its three seasons, averaging 53,003 fans in ’19, among the highest in the world. This echoes the success the Braves found when they chased their audience to the north, the farthest any MLB team had ventured from its city center in 50 years. The Braves’ average home attendance, aided too by on-field success, reached 32,779 fans this season, up 31% from their last year at Turner Field…

Kruse, the Princeton history professor, is blunt in his assessment of such feelings. “These ideas about downtown being a dangerous place are really about the people downtown,” he says. For years he thought that “suburbanites want nothing to do with the city except to see the Braves.” But today? “That last connection has been severed. I see this movement of the stadium as the culmination of white flight.”

Trying to connect with particular fan bases or contributing to decades-long processes of residential segregation and white flight? How about both?

Three additional thoughts:

  1. More could be made here of the public money the Braves received from Cobb County. Plus, they could develop land around the new stadium, now a common tactic to generate more revenue beyond fan attendance. Yes, fan attendance is important but the long-term money may be in investing money in land surrounded by whiter and wealthier residents. Stadium development then just continues the process of limited capital investment in neighborhoods that could really use it and concentrates it in places where wealth is already present.
  2. Baseball is widely regarded as having an older and whiter fan base. Soccer is said to have a more diverse and younger fan base. In addition to the demographics of the Atlanta area, the sports themselves try to appeal to different audiences (even as they might work to reach out to different groups).
  3. It will be interesting to see how many sports teams in the next few decades move to more niche locations while still claiming to be from the big city. Civic identity is often tied to sports teams as most metro areas can only support one team from the major American sports. Can big city politicians still lose when the team from the area decides to move to a suburb (see a recent example in the Las Vegas area) but takes that revenue out of the big city? Can a team that locates in one particular area of the metropolitan region still easily represent the entire region?

Building Florida’s Metropica around retail

A new development in Florida is built around a shopping mall:

Once safely inside, Kavana returned to explaining what that vision amounts to. Turns out it’s an Instagram-friendly mall that you can live in—one that happens to be smashed up against the side of an enormous swamp…

Approved for construction in 2014, the first residential tower of Metropica’s 4-million-square-foot planned community is set for move-in soon. On opening day, there will be a DJ spinning as buyers (and prospective ones) check out tennis courts and a state-of-the-art gym while enjoying gourmet popcorn. All this, Kavana said, is to showcase the conveniences and amenities that come with living inside a shopping center. He’s well aware that traditional retail is on the decline, but hopes he can buck the trend by bringing online players like Casper Mattress, which is heavily advertised by podcast hosts and Instagram influencers, to a brick-and-mortar location across from Tower One. Although Casper has yet to sign a lease, he hopes to court them and other retailers who might appeal to those millennials who hate malls but love “experiences,” as he put it…

Still, while it’s true that building your own jewelry at a Kendra Scott store is technically an experience, millennials are the most financially beleaguered generation in modern American history, and the only one to prefer urban environments to suburban and rural ones. Meanwhile, units at Metropica start in the mid six figures, and its $1.3 million penthouse overlooks two vast expanses, the juxtaposition of which defines the weirdness of South Florida’s bedroom communities. In full view is the Everglades Wildlife Management Area—facilitating regular clashes with wild animals—but also the parking lot of the BB&T Center, the arena where a different kind of wild animal, the Florida Panthers, battles visiting teams in professional hockey. With student housing, a building for active seniors, and an assisted living center also in the works, it might one day be possible to spend an entire lifetime in Metropica.

The question, however, is whether anyone will want to do that, or if the master-planned community will go the way of other Florida development boondoggles that were also advertised as utopias before falling into disrepair. Kavana is far from the first person to come to Florida and try to build something out of nothing, and perhaps as a result, the state has a long history of producing what sociologists call non-places. As the theory goes, there are three categories to describe where people spend their time in an ideal society: work, home, and a so-called third place where conversation is the main activity. In his book The Great Good Place, a guy named Ray Oldenburg said that might be a bar, a coffee shop, or the prewar concept of “Main Street”—no matter what form it takes, the third place has to be cheap (if not free), easy to get to without a car, and old enough to be embedded in the community.

Three quick thoughts:

  1. The rest of the article provides a quick overview of multiple large-scale Florida developments that did not work out as intended. At the same time, is it safe to say that development in Florida might have always been on a big scale? I remember visiting the Edison and Ford Winter Estates years ago and reading about how so few people lived on the Gulf Coast of the state then compared to now.
  2. The article does not say much about the funding for this project. As long as not much or any public money is on the line, the project going belly up may not be too harmful. (Of course, there are still environmental costs and partially developed land might be harder to develop in the long run.)
  3. It is also not clear who would move into Metropica outside of the appeal to millennials. Is this intended for Florida residents or people moving to the state? How does it compare to other developments in the area they could choose from? When I see major developments like this in urban areas that have more expensive housing, I always wonder who will move and/or invest in the property. (The Miami area is known for an interesting set of investors.)

Defining “blight” still matters for urban redevelopment

The term “blight” might conjure up the urban renewal of the post-World War II era where the application of the term to poorer and non-white areas could lead to redevelopment. Yet, the term is alive and well: funding for the proposed Lincoln Yards project in Chicago is tied to the concept.

But the clock also was ticking for another reason. If Emanuel and Sterling Bay had waited much longer, the development no longer would have qualified for its record-high taxpayer subsidy, a Tribune analysis has found.

To get the money, the area had to meet at least five state standards to be considered “blighted.” The city could then designate it as a tax increment financing district. At the time of the vote, the area met the bare minimum.

Less than six weeks later, new property assessments were completed. The rising values of the Lincoln Yards land meant the TIF district no longer met one of the five standards, according to the Tribune analysis of the values of hundreds of parcels…

The Tribune’s finding comes as community groups are asking a judge to reverse the City Council’s decision. They say the area is not blighted and would be redeveloped without the taxpayer assistance, given that it’s centered on the Chicago River just west of Lincoln Park.

According to an Illinois government website, “blight” is not the only word used to describe land that might be eligible for TIF districts:

Funds may be used for costs associated with the development or redevelopment of property within the TIF, allowing blighted, declining and underperforming areas to again become viable, and allowing these areas to compete with vacant land at the edge of urban areas.

Not surprisingly, this is about money: how much public money would the developers get as they went about the project? As the article notes, such use of public money is contentious. In this particular project in Chicago, the location and size of the property is particularly valuable. Does a developer need much public money when there is so much that could be made on the project? Or, thinking in terms of opportunity costs, could such public monies be used to spur development in locations that are initially less attractive to developers?

More broadly, this gets at foundational questions about development in general. Who ultimately benefits from development: local residents, the city/municipality, and/or the developer? The growth machines model suggests development benefits local business leaders working with officials and other leaders who benefit from growth (and the status and revenues that come with that). Local residents could see some improvements through new development but the developers and business leaders are the ones who truly profit financially.

(See an earlier post regarding the term blight and its application to Foxconn’s development in Wisconsin.)

A fight over potential Hasidic residents in a proposed new suburban subdivision outside New York City

Residents and local officials in the New York City suburb of Chester have concerns about who might move into a proposed development:

In a peaceful corner of the Hudson Valley, a broad expanse of land sits at the ready for hundreds of homes ranging between 2,500 and 3,400 square feet, with views of the surrounding hills. There will be a recreation center and tennis courts, and nearly half of the development’s 117 acres will be kept as open space.

But if it were up to town officials, the houses would never be built. They openly fret about the size and density of the 431-unit development, the Greens at Chester, and even confess wariness about the likely intended home buyers: Hasidic Jews…

Angry residents at the meeting talked of how school taxes could rise, and public resources could be stretched in the town, about 60 miles north of New York City. They spoke of fears that the development would one day resemble Kiryas Joel, a Hasidic village about nine miles away that is overcrowded and has ranked among the poorest communities in the nation.

The developers, Greens at Chester, L.L.C., cite these statements and others in a federal lawsuit that accuses the town, Orange County and individual local officials of discrimination, contending that they assume that the home buyers will be Hasidic because some of the developers are.

The concerns expressed by residents and public officials are common ones levied at sizable new subdivisions: more strain on public services (though developed property could bring in more money through property taxes and money could be spent in the community) and a change in the community’s character. Even though growth is generally good in American communities, many places want to restrict what kind of growth is possible (and who new residents are).

What makes this more unique is the expressed concern about who exactly might move into these new suburban homes. Concern about suburban residents about the movement of Hasidic Jews in the New York City region is an ongoing one. Because they tend to move in sizable numbers together to particular locations, suburban residents feel they can be overwhelmed by a local change in population and lifestyle. This is not a new issue in suburbs in the New York City region. As Hasidic Jews have looked for housing and communities in which they can live, they have encountered opposition from at least a few suburbs concerning where they wish to worship.

Because local officials and residents have been so open about their opposition to a particular group moving in, I imagine this will not end well for the community. If the lawsuit does not side in favor of the plantiffs, this suburb will join others in having a reputation of not wanting certain kinds of residents. Many suburbs do this through a variety of methods but do so without explicitly naming who they are referring to (think of efforts to limit the number of poorer residents or minority residents). The residents and leaders of Chester may want to preserve some type of character of the community but doing so at the cost of naming and excluding specific residents is a dubious strategy.

Suggestion that Hudson Yards and other urban megaprojects threaten suburbs

The glitz of the new Hudson Yards in New York pushes one theater critic to argue such spaces threaten suburbs:

A problem faced by suburbs becomes all too clear at Hudson Yards. Affluent Americans are almost all going to live in cities, starving urban centers of affordable housing just as they’ll choke up the traditional suburban resources. No suburb, I kept thinking, can compete with this. And Hudson Yards, or Lincoln Yards, or whatever comes next, are far from done.

Such large developments in significant urban neighborhoods are worth keeping an eye on because of all the change that comes at once plus what is included in the new spaces.

But, I don’t think Hudson Yards or the proposed megaproject on Chicago’s north side or the development around Staples Center in Los Angeles will threaten suburbs in the long run:

  1. These spaces do not have the same combination of factors that Americans like in suburbs starting with the emphasis on single-family homes and family life. Projects like these have elements of what suburbia can offer but primarily offer a different experience: bustling activity, diversity of dining and cultural options, presumably a greater mix of people. Suburbs can indeed compete with this by offering a different lifestyle.
  2. The housing available in these new projects is primarily for wealthy urbanites, likely appealing to young professionals and older adults who like all the activity and the newness. This may indeed continue to help concentrate the affluent in certain urban neighborhoods but there will be plenty of working to middle-class residents who will be priced out and will find suburban housing more affordable.
  3. Surveys continue to suggest that even young Americans desire a suburban life in the long run, particularly when they reach a certain age or have families. From my vantage point, the emphasis on the rush to the big cities is overplayed.

Both sizable and exciting urban megaprojects can find success alongside suburban life. Perhaps they may even draw on different people groups in the long run, segmented by age as well as resources. And perhaps we should continue to keep paying attention to who has difficulty finding a true home in either type of space.

Housing bubble fallout: lost jobs in land subdivision

The long-lasting consequences of the housing crisis of the late 2000s continues: an analysis of the American industries losing the most jobs by percentage includes the land subdivision sector.

9. Land subdivision

• Employment change 2008-17: -49.3%
• Employment total: 40,207
• Wage growth 2008-17: +35.5%
• Avg. annual wage: $71,744

The U.S. housing market is beginning to return to normal following the Great Recession and housing market crash. Housing starts in 2017 were similar to 2007 levels, before the crash. The land subdivision industry, which divides land into parcels for housing and other purposes, suffered as a result of the market’s struggles. As of 2017, industry employment is just about half of what it was a decade before.

This was never a large sector but a drop in jobs of nearly 50% is substantial.

Since I know little about what land subdivision requires on a daily basis, I wonder if this decrease is primarily because of a slowdown in housing starts or are there other significant changes in the industry such as new efficiencies and approaches?

Ordinances and zoning against dollar stores

With evidence that dollar stores provide poor quality food options and limited jobs, some communities have used certain tools to restrict their presence:

While some local governments continue to lure dollar stores to town with tax subsidies and incentives, others are doing the opposite. A dollar store NIMBY movement has been gaining traction.

In Chester, Vermont, for example, residents argued in 2012 that allowing dollar stores to come to town “will be the beginning of the end for what might best be described as Chester’s Vermontiness,” per the New York Times—a statement that itself perhaps signals the class and race associations dollar stores have come to embody. In Buhler, Kansas, the mayor saw what happened to surrounding grocery stores in neighboring Haven and rejected the dollar store chain, also citing a threat to the town’s character.

“It was about retaining the soul of the community,” he told The Guardian. “It was about, what kind of town do we want?”

More recent efforts have used zoning tweaks to limit dollar stores, whose small footprint usually lets them breeze past restrictions big-box stores cannot. In Mendocino County, California, dollar store foes passed legislation restricting chain store development writ large. And in April, the Tulsa City Council passed an ordinance that requires dollars stores to be built at least one mile away from each other in North Tulsa. It also tacks on incentives for healthy grocers and supermarkets providing healthy food to locate in that area. “I don’t think it’s an accident they proliferate in low socio-economic and African American communities,” Vanessa Hall-Harper, a city councillor who grew up in North Tulsa and shepherded the ordinance, told ILSR. Since then, Mesquite, Texas, has followed suit with a similar move.

Communities have fairly broad powers to encourage or limit the presence of certain kinds of development. If they do not desire the building or the opening of a dollar store, then they can limit or eliminate the possibilities for a dollar store in that community.

Of course, the dollar stores can respond with their own tactics. Here are a few I could imagine (drawing from similar cases involving other businesses):

  1. Building just outside the jurisdiction of the municipality.
  2. Working with a neighboring community who is willing to have them.
  3. Mounting a public campaign against the community to tout the advantages of their business.

While the third option might be more of a nuclear option, the first two mean that another municipality could benefit from sales tax and property tax revenues, the limited number of jobs, and easier access for nearby residents.