How Civic Infrastructure Creates Shared Prosperity
Quality of place is a proven economic development strategy
While many of us know that public spaces are good for local economies, what most policymakers and public space practitioners do not understand is how strategic investments in public space can perform much better than conventional economic and community development practices often focused on targeting tax incentives toward large businesses and employers. At the Civic Commons Studio #7 in Macon, Georgia, a presentation of research and a subsequent panel discussion of experts — Amanda Weinstein from the University of Akron, Rhett Morris of Common Good Labs and Mitchell Silver, formerly the City of New York Parks Commissioner and now a principal at McAdams — was facilitated by Alexa Bush, program officer with The Kresge Foundation. The wide-ranging discussion expanded attendees’ understanding of the beneficial economic impacts of civic infrastructure.
Weinstein’s research with Michael Hicks and Emily Wornell focuses on helping policymakers, public space practitioners and economic development officials understand how the power of place can become an effective economic development strategy. At the Studio, she encapsulated how traditional economic development strategies have failed to attract, retain and grow talent, companies and jobs, while showcasing the communities where leaders have decided to invest in quality of place as a way to stimulate more effective economic growth.
In Weinstein’s data, the factors that determine the quality of a place — for example, unique geography, opportunities for recreation, quality green spaces and public spaces, good schools, markets and restaurants — have attracted people, grown businesses and produced more economic activity than things like tax incentives in Midwestern communities. Weinstein defined this as a “virtuous circle,” where initial investments in the quality of a community stimulate economic activity that allows communities to continue to grow civic infrastructure investments. While companies may make short term decisions in response to economic incentives, economies grow and talent remains in high quality places.
Morris’ work has used data science to help communities find new solutions to growing local economies inclusively. Because neighborhoods of concentrated poverty exist in every kind of American community, around one in 15 people in the United States (more than 20 million people) lives in one, including nearly one in five Black people and one in eight Latino or Hispanic people. These places have lifelong and damaging impacts on people’s lives, including a reduced lifespan, an increased chance of interacting with the justice system and drastically reduced economic mobility.
By focusing their research on neighborhoods of concentrated poverty — places where census data shows at least 30% of residents live in poor households — and using new analytical tools, Morris and his co-author Rohit Acharya were able to identify the characteristics of almost 200 neighborhoods where positive economic growth happened without displacing residents. Morris and Acharya’s ‘eight indicators’ of this kind of inclusive economic growth include factors like low homicide rates, higher housing density, and the presence of community organizations and nonprofits. They demonstrate that this type of inclusive prosperity is possible, and identify the places where it is already taking place, in communities where this type of investment is most needed.
It’s time for Superman to retire
In her presentation, Weinstein revealed how data shows people’s preferences for locations and amenities. People are willing to pay higher prices for housing and accept lower wages if they really like living somewhere, an experience borne out by the Midwestern description of Traverse City, Michigan, where residents laugh about getting “half the pay for a view of the bay.” The data Weinstein presented also included correlations between quality of life and higher population growth and more business startups, a trend that accelerated during the pandemic when many began to work virtually and could do so from nearly any location.
Communities should “lean in” to their comparative advantages — amenities like a natural environment, recreational opportunities or a specialty product (Weinstein mentioned Lawrenceburg, Kentucky’s splash pad with a bourbon barrel that sprays water on kids) to keep and attract people. Weinstein contrasted these findings with the traditional view of most economic development professionals, which holds that companies (usually large ones) must be wooed with tax incentives and other economic enticements, that in the end do not do much for local economic growth and on average, do more harm than good for the economy.
For too long, most communities have relied on this approach, with leaders expecting “Superman,” (the big company wooed by lower taxes) to save them. “I tell leaders all the time that there is no Superman coming to save us,” said Weinstein. “We have to be the super heroes.”
Morris pointed to established surveys of entrepreneurs that showed traditional economic development incentives were not a motivating factor in moving or locating their companies somewhere. Less than 2 percent of those surveyed mentioned business incentives, but many mentioned connections to people and quality spaces. “Companies that grow are led by people who could live anywhere,” said Morris. “People who can be anywhere want to live in great places.”
Saying no to something is saying yes to something else
Former New York City Parks Commissioner Mitchell Silver reminded attendees during the panel discussion that too much focus on attracting businesses can undermine the effort put into other important issues. “We often focus on the cost, but not the value of public space investments,” said Silver. “What makes a great place is the value of that place to people, but too often, those who make the decisions focus only on the cost.”
Silver also reminded leaders to remember that saying no to something has real life consequences. “When you say no to something, you’re saying yes to something else,” said Silver. “People say no to multifamily housing, but that means they are saying yes to excluding veterans, families, people of color. When you say no, you have to share what you’re saying yes to,” he said. Alexa Bush of The Kresge Foundation agreed: “There’s also the cost of doing nothing. By doing nothing, ask yourself: do things get better or worse?”
Green gentrification isn’t the problem
Rhett Morris provided details about the characteristics of neighborhoods that experienced inclusive economic growth over 15 years, without displacement of neighbors, and where existing communities of color were maintained or even grew. The result of these characteristics were dramatic: there were higher rates of residential resident retention, increased home values and more lending to small businesses.
Of the eight characteristics of inclusive prosperity growth in neighborhoods of formerly concentrated poverty, there are three external characteristics: positive economic growth in the local metropolitan area, lower homicide rates in the local county, and low risk of displacement from the surrounding area. There are also five internal characteristics: higher rates of homeownership, lower levels of residential vacancy, increases in housing density, greater rates of self-employment and the presence of community-building organizations.
Mitchell Silver agreed that inclusive prosperity is a realistic goal, and talked about his reaction to the term “green gentrification,” a term he first heard as New York City Parks Commissioner. “My department was responsible for 2,000 parks and I knew that if I did nothing for many of those parks I’d be accused of neglect, but if I decided to invest and transform one of these community assets I would be accused of gentrification,” he said.
In the discussion, Mitchell pushed back against the concept of ‘green gentrification,’ arguing that doing nothing in the public realm because of a fear of gentrification means neglecting communities that may have lacked a vibrant public realm for decades.
Prepare for the long game
Weinstein reminded attendees that it is important to take a long run perspective, even though that does not align naturally with elected leaders’ timelines. “They’re looking at what can be done in 2 to 4 years, before the next election, but the benefits of their decisions may not come until 7 or 10 years down the road. That’s when you see the real job creators, not at the ribbon cutting. You may have to invest up front, but you’re saving money down the road,” she said.
Silver agreed with taking the long view. “I lived and worked in Raleigh, North Carolina, which was a growing market with a general policy to not offer any incentives. Our incentive was to create a quality place where people wanted to live,” he said. That focus on things like quality parks, greenways, and public services worked, Silver said. “If you’re a place people want to invest in, you’re a place people want to live in.”
Remember who benefits from the work
The people who have the means to move can move in and out of an area, said Silver, but it’s important to remember that many people do not have the option to move. “As leaders, we have to pay attention to historically underserved and under-resourced communities in our work,” he said. Weinstein believes this can be done by paying attention to the right information. “There’s a fairness in data,” she said, as opposed to city council meetings where a loud — but non-representative — group of people often show up. “Everyone shows up in the right data points,” said Weinstein, pointing out that local parks boards tend to be male-dominated, but women may rely on parks more in their roles as caretakers of family. “If any demographic isn’t showing up to meetings, you need to seek them out,” said Weinstein.
The mixture of data and decades of experience evident in this lively discussion of experts reinforces the need for strategic investments in civic infrastructure — the parks, community centers, libraries, and other places we share as members of a community. These shared places can and should become a part of a data-driven, long-term approach to growing local economies that contributes to the physical, mental and economic well-being of all residents.
Reimagining the Civic Commons is a collaboration of The JPB Foundation, the John S. and James L. Knight Foundation, The Kresge Foundation, William Penn Foundation, and local partners.
