Tag Archives: local government

Getting big companies to pay more for local infrastructure

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The mayor of Cupertino, California wants Apple to pay more for local roads and other services:

Many people in Cupertino, a 60,000-person town in the heart of Silicon Valley, are beginning to organize around their overburdened city. They claim the region is struggling with aging infrastructure and booming companies whose effective tax rate is often quite low. Frustrated by traffic and noise, some in Cupertino are trying to put a stop to more development, which they argue brings more congestion on the roads, parking and train system. But Chang says limiting new development would damage the regional economy and that the real solution should be higher taxes on the wealthy and companies such as Apple…

Convincing local politicians to battle Apple is hard, Chang said. He recently proposed that Apple – which is building a massive new campus its own employees nicknamed the Death Star, or more favorably, The Spaceship – should give $100m to improve city infrastructure. To move on the proposal, Chang only needed to get a single vote ‘yes’ among the three other eligible council members. He failed to get that vote…Meanwhile, the mayor of Cupertino plans to keep pushing Apple to contribute more to the town. Apple paid $9.2m in tax revenue to Cupertino in 2012to 2013, which was about 18% of the city’s general fund budget, according to an economic impact report. Coincidentally that was also exactly the same amount CEO Tim Cook was paid in 2014.

Chang is now working on proposals for a business employer tax that would make companies with more than 100 workers pay $1,000 per employee. Chang argues the employer tax is less regressive than the competing program: a higher sales tax.

Local politicians are often in a tough position in situations like this. Large companies provide prestige and jobs. Many communities would love to have white-collar offices that contribute property taxes and opportunities for local residents. These are such desirable facilities that states and communities race to the bottom in providing tax breaks. (See an example here as well as contrast this to a rural town rejecting a meat processing plant.) Yet, large companies may make heavy use of local services as well as be perceived as sending most of their profits out of the community. So, what do you do when your town needs to pay for roads or the police department or schools and the majority of residents don’t want to pay higher taxes?

I’m guessing that Cupertino has little leverage, particularly if fellow officials and residents are unwilling to go against the big company. Yet, perhaps sustained pressure and some negative publicity might help; one Chicago suburb and its large hospital reached an agreement to help the community meet basic infrastructure needs.

Cut LA planning staff and expect more McMansions

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Critics suggest that cutting several city employees will lead to more McMansions in Los Angeles:

Garcetti’s 2016-2017 budget calls for cutting two staff jobs in the seven-member Neighborhood Conservation division.

The division helps prepare historical designations — or Historic Preservation Overlay Zones (HPOZs) — for neighborhoods with distinctive architectural or cultural features. An HPOZ designation can help a neighborhood from overdevelopment by setting strict building guidelines, such as requiring that homes have a similar exterior look.

HPOZ designations are in place in dozens of neighborhoods, including Hancock Park, Van Nuys and University Park.

The mayor’s proposed Planning Department budget — released last week as part of his overall $8.7 billion spending plan for next fiscal year — comes at a crucial time for the Neighborhood Conservation division, advocates say. The office is racing to finish HPOZ designations for six areas before a law outlining teardowns of homes in those neighborhoods expires.

Usually such jobs in local government draw little attention, particularly when the city employs over 45,000 people and Los Angeles County has more than 100,000 employees. Yet, a relatively small set of city employees can oversee relatively large or influential projects. And the battle over McMansions in Los Angeles is not over as this tidbit later in the article suggests:

The AIDS Healthcare Foundation is leading a March 2017 ballot measure initiative that would temporarily halt construction of so-called mega-projects in the city.

In Los Angeles, the competing forces of an expensive housing market plus property rights will be fighting the forces of historic preservation for a while yet.

What to do if “a McMansion is going up next door”

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If a McMansion is built next to existing houses, what can neighbors do?

“It’s built so much higher than my house, virtually every window looks out into my backyard,” she says. Desperate to protect her privacy, she planted Italian cypress trees as a natural barrier. She tried to reason with the builder, whose unsympathetic response was: “Shouldn’t everyone be able to build their dream home?”

What’s going on in Mountain View is an extreme version of a problem cropping up all over the country: Huge houses are being built on plots of land originally meant to accommodate smaller dwellings, sparking a heated debate over what’s best for the community. Some argue that owners of larger homes pay more taxes, which can benefit all. But if your home happens to have its air and light blocked by a behemoth next door, you would likely be very, very upset — and can most likely kiss the idea of cashing out on your home sale goodbye…

A similar drama is playing out in Arcadia, CA, where more than 30 homes larger than 5,000 square feet (some as large as 8,000 — 9,000) have been proposed in the 850-home community over the past six years. In response, a group of longtime residents formed Saving Arcadia, which is currently battling the municipal government and City Council. Its argument: Overly lenient rules for developers have led to the proliferation of McMansions on lots that were zoned back in the 1950s for smaller homes. Plus, these oversize dwellings overburden the city’s water, gas, electricity, and other utility services…

Another option is finding a creative solution. One example is building downward (if a property is set on a hill) in order to increase square footage while preserving neighboring views, which is increasingly happening in various areas near Newport Beach. So maybe there’s hope that we can all play nice after all?

A homeowner who doesn’t like the nearby McMansion has a number of options available to them – these are sorted roughly in order of severity:

  1. Talk to the neighbor and builder. Might they be willing to make changes? They don’t have to but perhaps they are also unaware of what neighbors think of their actions.
  2. Modify your own lot or house to avoid having to see the new dwelling (if this is possible given its new size). For example, buy some artificial plants.
  3. Fight for local regulations. Many communities (see examples like Austin and Los Angeles) have considered rules about teardowns in recent decades and try to balance the interests of property owners versus those of neighborhoods. A variety of tools can be used including design guidelines, lot to house size ratios, approval processes, and historic districts.
  4. Buy up the properties that may become McMansions. This requires money but then you can control the fate of the nearby properties. See examples here and here.
  5. Sue your neighbor. You have to have resources to fight this out and it is likely to sour relations for a long time. But, some neighbors choose this option. See an example here.
  6. Move away. This is what the resident in this particular article does. This may be a last resort option or one favorable to those who don’t like open conflict (which is often minimized in suburbia).

In many places, the teardown McMansion cannot be stopped, particularly if there are not existing guidelines which are likely based off earlier cases or if the neighbor is not independently wealthy. Still, the neighbor who does not like it can pursue a number of options and each is likely to affect their relationship with the teardown neighbor.

Chicago suburb that may want to dissolve itself

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Many suburbanites like that local communities protect them from other entities but what if suburban residents want to get rid of their own municipality?

Prospect Heights is a unique suburb — a bedroom community of 16,000 residents, many of whom have homes on lots larger than those in neighboring towns. There’s no overall property tax or major retail shopping centers, and some entities — such as Indian Trails Library and Chicago Executive Airport — are already shared with other towns.

But Prospect Heights is independent and proud of it. Parts of it still get water from wells rather than Lake Michigan. Residents have rejected — many times — petitions to become a home-rule community, which, among other things, would permit city leaders to collect sales taxes — and maybe even property taxes — and develop a reliable stream of revenue with which to run the city…

Comparatively, The Initiative is draconian. It calls for Prospect Heights to be broken up and merged into the bordering towns of Arlington Heights, Mount Prospect, Wheeling and Northbrook — or, if all those towns don’t get on board, to essentially merge Prospect Heights with just one neighbor, Wheeling…

Theoretically, though, even without city leadership on board, a bill currently in the rules committee of the Illinois House would make it possible for residents to lead an effort to dissolve their own town or any other government.

It sounds like this could turn into a fascinating battle between residents who don’t want the local government and local officials who want to keep it. Would cost savings or local control and loyalty win out? In the long run, which direction better serves the residents? It is not a wealthy community; Census figures show a median household income around $62,000 and the community is 30% Latino.

Thinking more broadly, I would think it is rare in recent decades to find cases where suburbanites are willing to give up on the community they chose and be absorbed into other communities.

Opposition to a proposed mosque in suburban Palos Park

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A group wants to convert a former church into a mosque in Palos Park and has encountered opposition:

An anonymous flier circulated in mailboxes and online this month decried plans to open a mosque and community center at the site of a former church in this southwest suburb, roughly a mile from the home of 72-year-old Omar Najib, who intends to pray there.

The Muslim American Society bought the property at 12300 S. 80th Ave. in December and plans to do minor maintenance at the site, with no opening day scheduled yet. The leaflet titled “Save Palos” accused the house of worship of threatening to erode housing values and congest traffic…

Opposition to new mosques has become “almost a given” in the Chicago area as well as throughout the country, a brand of Islamophobia often shrouded in concerns over zoning or urban planning, said Ibrahim Hooper, spokesman for the Council on American-Islamic Relations, based in Washington, D.C.

Residents in Bayonne, N.J., rallied last month against plans for a Muslim community center there, bearing signs that read “Stop the Mosque” and “If the Mosque Comes the Mayor Go’s” (sic). Around the same time, members of a Christian group spoke out against a mosque scheduled to open this spring at the site of a former South Milwaukee, Wis., church. In late November, tempers also flared at a forum over an Islamic center proposed in Fredericksburg, Va.

Even as mosques and other non-Christian religious buildings have become more common in the Chicago suburbs, they still occasionally encounter opposition. See earlier posts about mosques and opposition here, here, here, and here. That there are national discussions about Muslims and ongoing conflict with Muslim groups only adds to typical NIMBY concerns from suburbanites.

One hurdle that new religious groups can encounter are local governments which may or may not support their groups. The end of this particular article suggests the mayor of Palos Park “immediately condemned the anonymous leaflet as cowardly.” Yet, would the local government feel the same way if a vocal and sizable portion of the community rallied against the new mosque and community center?

Balkanized suburbs and declining local revenues

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A story about several suburbs outside Philadelphia highlights a problem facing many suburban communities: how can they counter declining revenues when residents and businesses move away?

Pennsylvania’s Delaware County is a crazy quilt of municipalities. Just to the west of Philadelphia, it is home to some of the oldest suburban communities in America. It is dense, with more than half a million people packed into townships and boroughs as small as a half square mile. Such tight confines can make governance difficult under any but the best conditions.

If a neighborhood starts to change in a way its middle-class residents don’t like, they can move a few miles to a newer house, a better school district, and lower property taxes. The communities they leave behind are faced with the impossible math of declining revenues, rising taxes, and an increasingly needy population…

But Hepkins’ most attainable plan is his ongoing effort to lash Yeadon together more tightly with its neighboring municipalities. He dreams of creating a non-profit 311 call center that could cover the six eastern Delaware County municipalities served by the William Penn School District. This centralized office could connect residents with immigration, veteran, and senior services…

The mayors of Lansdowne and East Lansdowne have been receptive to Hepkins’ advances, but his other three counterparts are hesitant. Even if the local politicians do overcome their own parochial interests, it’s an open question how much resource-sharing between six struggling municipalities would accomplish. A system incorporating the region’s more prosperous communities would be far more advantageous, akin to the revenue-sharing policies utilized in the Twin Cities metro region. But nothing like that is being seriously discussed in the Philadelphia area.

Several thoughts come to mind:

  1. This is a reminder that suburbia is much more diverse than the standard image of white and wealthy communities. Suburbs have increasing numbers of non-white and poor residents and there are various types of suburban communities ranging from bedroom suburbs to industrial centers.
  2. Local governments are often very reliant on property taxes. And Pennsylvania has a lot of local taxing bodies though it trails Illinois. Thus, suburban communities are very interested in wealthier residents as well as businesses that can bring in money through property taxes and sales tax revenue. This creates a kind of competition that is difficult for everyone to win.
  3. A number of metropolitan regions and urban communities in the United States have considered ways to band together to tackle common economic and social issues. This can be hard to do because one of the features people like about the suburbs is having more local control. Moving local revenues to another community – even if it is needed or might benefit the region as a whole – can be a hard sell, particularly in better off suburban communities.

I suspect we’ll see more and more stories like this in the years to come.

Fear the growth machine in Flagstaff

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One concerned citizen of Flagstaff, Arizona warns of the actions of a local growth machine:

Even though I bought into Flagstaff a scant nine years ago, the town that I bought into is no more. It was a town of vision and limited growth, of respect for nature and dark skies, with a government that deferred to public over narrow corporate interests.

Today it resembles nothing so much as urban sociologist Harvey Molotch’s famed “City as a Growth Machine.”

Our city government has been captured by outside interests and a mayor who promotes the well-discredited, but widely accepted, falsehood that growth is good for a city, that it brings jobs, wealth, and cheaper housing. Whereas the opposite is demonstrably true: Job opportunities bring increased population which increases unemployment and housing shortages with yet more growth as the alleged cure.

The falsehood originated in Chicago School of  sociology, but look at Chicago today, or Los Angeles, or even Santa Barbara. Now think of these ugly monstrosities coming to Flagstaff with ugly names like Standard, Core, and Tank. Envision the Weatherford just down the street from a looming modern hotel and ask yourself if it’s still the Weatherford. Finally, ask yourself how mindless urban development solves the hot social problem of the moment, gridlock traffic.

And if he wants to continue the critique offered by Logan and Molotch, he might add: who profits the most from new growth, particularly new development and infrastructure? It tends to be corporate interests who use their influence and capital to make money off the growth that is supposedly good for everyone.

I’m not sure I quite understand what is going on with this chain of events: “Job opportunities bring increased population which increases unemployment and housing shortages with yet more growth as the alleged cure.” More jobs leads to more unemployment?

Ultimately, using this growth machine concept to fight particular political candidates might be very effective in local elections as it highlights the actions of the politically powerful and questions their motives. In other words, people who are suspicious of leaders could find this theory complementary to their existing feelings. If faced with such criticism, officials and leaders would likely fall back to arguments about how growth is generally good (as Logan and Molotch note, this is not really up for debate in American cities) and that their actions benefit a broad range of residents. To counter, opponents should find significant projects that didn’t help many – like sports stadiums or big corporate developments –  and highlight the ongoing day to day issues that were not addressed like affordable housing and increased congestion.

Mexico City changes its name

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Last week, Mexico City officially received a new name:

President Enrique Peña Nieto officially changed the capital’s name to “Mexico City” on Friday as part of a reform to devolve power from the federal government, allowing the city’s mayor to name senior officials including the police chief…

The reform moves Mexico City – the area of nearly nine million people surrounded on three sides by the grungy suburbs of Mexico State – closer towards becoming a state in its own right…
Campaigners – mostly on the left – started pushing for an end to the Federal District after the devastating 1985 earthquake, after an inept federal response left millions to fend for themselves. Leftwing movements rose from the wreckage, achieved political reforms and won the first mayoral and assembly elections in 1997…

Some analysts warned of potential confusion caused by adding a capital called “Mexico City,” to a country already named Mexico, whose biggest state is the “State of Mexico”.

It sounds like nothing may change from the outside. However, relationships between the city government and federal government as well as city residents and other residents of Mexico may be impacted.

Perhaps city residents who live in a major city that also doubles as a national capital have a unique urban experience? This article suggests that Mexico has a centralized system, centered in Mexico City, which may mirror other countries (London in England, Paris in France, etc.) where the most important city is also the capital. In contrast, other countries have capitals outside of their major city with the United States as a prime example with a space away from New York City, Chicago, and Los Angeles.

Maine towns dissolve local governments amid budget issues

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Many Americans want more local control but what if the local government can’t pay the bills? A number of towns in Maine have dissolved their local governments:

At a time of rising municipal costs, local governments around the country are looking for ways to rein in tax bills, pursuing privatization, the consolidation of services, mergers and even bankruptcy…

But in northern Maine, as operating costs have increased, the economy has stagnated and the population has aged and dwindled, a handful of struggling towns have pursued the unusual process of eliminating local government entirely…

Under state law, dismantling a local government takes 12 complex steps, often over at least two years, including legislative approval and a series of local votes. When a town deorganizes, state agencies and the county administer its services, like snow removal, policing and firefighting. Children are assigned to appropriate schools, often in a nearby district. Town-owned buildings and land are sold or held in trust by the state or the county. And every local government job is eliminated…

Other states have unorganized or unincorporated areas, but in Maine about half of the land is Unorganized Territory. The area predates the state itself — it was laid out when Maine was still part of Massachusetts and new settlers were expected to flock there. But the harsh climes of Maine’s wild lands, as they used to be known, never filled out with enough people to self-govern.

This last paragraph may be key: because of particular settlement patterns in Maine (which may be largely due to ecological factors), it is difficult to maintain municipal government. Wouldn’t this be a perfect situation for townships or county governments? For example, the township structure in Illinois is used as an illustration of an unnecessary layer of government in a state that has the most governmental bodies in the country. But, a local government serving a broader geography could be a helpful middle ground that allows residents to feel like they can have input while dispersing the costs over a broader area.

If the local government is officially dissolved, what marks the community? An understanding among local residents? Are there even any municipal boundaries or are these decisions then left to other bodies (like the Postal Service)?

More broadly, it would be interesting to see how many communities have “disappeared” in the United States in recent decades. I have found a few of these in my research on suburbs but it tended to happen prior to the 1970s through annexations and mergers.

More Chicago suburbs hiring staff

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Perhaps this is another sign of a more positive economy (and more tax dollars): some suburban governments are hiring again.

According to a Daily Herald analysis of 61 suburbs, 31 of them added the equivalent of 139 full-time jobs during the fiscal year that ended April 30, 2015, for most suburbs and Dec. 31, 2014, for others.

But 16 suburbs eliminated the equivalent of 46 full-time jobs and 14 towns held the line on the head count from the previous year, the analysis of the suburbs’ most recent audits show…

Still, the vast majority of towns are operating with much smaller staffs than just a few years ago. At its peak seven years ago, employment by the 61 towns was nearly 10 percent higher with the equivalent of 13,251 full-time jobs, compared to a low point of 11,977 full-time equivalent positions two years ago, according to the analysis…

According to the analysis of the audits, the 61 towns in suburban Cook, DuPage, Kane, Lake, McHenry and Will counties first saw significant job reductions in 2010, when they reduced their workforces by 3.8 percent.

While this analysis is interesting, more background might be helpful. Suburban governments today have to balance efficiency (meaning keeping tax increases small or cutting the budget) and quality of life (the suburban life that many of the residents who moved to the community want to continue and enhance). This is not easy to do; residents tend to want more for their money and many might be convinced that government can always cut waste (or at least cut the money they don’t personally care about or benefit from). But, at some point, employees are needed.

This article suggests that a number of the new hires in suburban communities are part-time employees to limit the benefits costs. I’d be interested to see data on whether having more part-time employees in local government leads to better service and community outcomes.