« Let's really talk about "corporate welfare" | Kenneth Thomas's Blog | The Big Three, Health Care and Tax Havens: Interrelated Issues that Need to be Solved Together »
An Absorbing Look at Urban Decline
University of Iowa historian Colin Gordon has written an outstanding overview of the decline of America's cities in Mapping Decline: St. Louis and the Fate of the American City (University of Pennsylvania Press, 2008). Gordon's focus on a single city allows him to map out, literally, demographic and economic change through the extensive use of geographic information system software, bringing the trends to vivid life.
Of the many themes in the book, I want to highlight three: race, urban redevelopment, and subsidies. St. Louis has a long history of housing discrimination against African-Americans, through practices such as agreements among realtors, restrictive covenants, steering, and exclusionary zoning. Many of the nation's most important court decisions on housing discrimination stem from lawsuits in St. Louis and surrounding suburbs. Blacks were restricted to living in a very few areas of the city, and even fewer parts of neighboring St. Louis County, for many decades. Gordon documents this history through extensive archival research.
The rhetoric of urban redevelopment in St. Louis, as in many other cities, was in removing blight, but the reality was that of reducing the housing stock and using federal funding to establish commercial and tourist developments, rather than constructing new housing. As Gordon tells us, "Although blight was originally understood as a residential problem, urban renewal efforts in St. Louis skirted the worst residential areas and focused increasingly on large-scale industrial and commercial development." In the process, the meaning of "blight" was stretched beyond all recognition, allowing the upscale suburb of Des Peres to blight a mall so it could receive tax increment financing subsidies to attract Nordstrom's. (Since the book was completed, Missouri's Supreme Court ruled that property must be both an economic and a social liability to be declared blighted, blocking the use of eminent domain in the similarly prosperous suburb of Clayton.)
Finally, Gordon shows how the use of subsidies, most recently tax increment financing (TIF), has contributed to sprawl in the St. Louis region. His map of TIF districts illustrates graphically how this subsidy has been used heavily on the periphery of the region, "poaching," as he says, retail activity from the city and inner suburbs. (Missouri is one of the few states that allow sales tax to be TIFd, leading to the subsidized oversupply of retail facilities.) This is facilitated by the lack of targeting in the enabling legislation (that is, its use is not restricted to areas that meet objective criteria of economic deprivation, as are regional subsidies in the European Union).
I can't do justice to this excellent book in a short blog post. I highly recommend it, for its lessons apply to a large number of cities.
Of the many themes in the book, I want to highlight three: race, urban redevelopment, and subsidies. St. Louis has a long history of housing discrimination against African-Americans, through practices such as agreements among realtors, restrictive covenants, steering, and exclusionary zoning. Many of the nation's most important court decisions on housing discrimination stem from lawsuits in St. Louis and surrounding suburbs. Blacks were restricted to living in a very few areas of the city, and even fewer parts of neighboring St. Louis County, for many decades. Gordon documents this history through extensive archival research.
The rhetoric of urban redevelopment in St. Louis, as in many other cities, was in removing blight, but the reality was that of reducing the housing stock and using federal funding to establish commercial and tourist developments, rather than constructing new housing. As Gordon tells us, "Although blight was originally understood as a residential problem, urban renewal efforts in St. Louis skirted the worst residential areas and focused increasingly on large-scale industrial and commercial development." In the process, the meaning of "blight" was stretched beyond all recognition, allowing the upscale suburb of Des Peres to blight a mall so it could receive tax increment financing subsidies to attract Nordstrom's. (Since the book was completed, Missouri's Supreme Court ruled that property must be both an economic and a social liability to be declared blighted, blocking the use of eminent domain in the similarly prosperous suburb of Clayton.)
Finally, Gordon shows how the use of subsidies, most recently tax increment financing (TIF), has contributed to sprawl in the St. Louis region. His map of TIF districts illustrates graphically how this subsidy has been used heavily on the periphery of the region, "poaching," as he says, retail activity from the city and inner suburbs. (Missouri is one of the few states that allow sales tax to be TIFd, leading to the subsidized oversupply of retail facilities.) This is facilitated by the lack of targeting in the enabling legislation (that is, its use is not restricted to areas that meet objective criteria of economic deprivation, as are regional subsidies in the European Union).
I can't do justice to this excellent book in a short blog post. I highly recommend it, for its lessons apply to a large number of cities.
Advertisement





Thanks for the recommend.
Do you know the work of Richard Florida? I find it very intriguing, if you haven't, you might too:
http://www.creativeclass.com/
Also, one of my favorite themes in this regard is to to go straight to a myth too many keep holding onto:
from The Nation; Becoming Unstuck On the Suburbs By HERBERT MUSCHAMP NYTimes Week in Review, October 19, 1997First step for urban planners: convince people that your average American family right now might be a divorcee with an autistic son living with her ne'er-do-well never-married thirty-something brother blogging in the basement, rather than continuing to believe "Leave It to Beaver" still exists and will continue to exist. Americans just want to hang onto that for some reason, demand to see it in their politicians and other leaders, even as they don't see it in their own lives anymore, as if it were still there. It's not, time to see ourselves as we are.
December 1, 2008 6:44 PM | Reply | Permalink
I'm somewhat familiar with Florida's work. Thanks for the link; I took a look at his site and one thing I noticed is that he does a lot of work on Canada, which I do, too.
It's interesting you mention the historic uniqueness of the 1950s-1970s. I'm sure some conservatives would like to recapture the culture of that period, but what I would like to see is for real wages to regain the levels of 1973. Workers have lost ground ever since, but that is obscured for any individual worker because the decline is offset by their increasing experience. Of course, if you are one of the people who has lost a job in the auto industry or other heavy manufacturing, you are likely to see a decline in your individual real wages.
December 3, 2008 12:34 PM | Reply | Permalink
Wonderful post!
December 1, 2008 8:19 PM | Reply | Permalink
Love infrastructure posts!
For an all-you-ever-wanted-to-know about Tax Increment Finance from an industry-friendly source:
http://www.cdfa.net/cdfa/cdfaweb.nsf/pages/tifcbuildingresources.html
For a short expose of TIF in Missouri(written with the help of Dr Thomas):
http://missouri.sierraclub.org/sierranonline/aprjune2005/tif_sprawl.htm
Richard Dye and David Merriman have a concise article about TIF subsidies and their consequences, at the Lincoln Institute of Land Policy. But I think TPM allows us only 3 internal links so I won't link it here. Their conclusions echo Dr. Thomas's: subsidies at the peripheries weaken the core when it comes to retail commercial enterprises.
December 1, 2008 9:10 PM | Reply | Permalink
I love urban policy posts, too. From what I've been reading, the trend is in reverse and may turn "today’s McMansions into tomorrow’s tenements".
December 2, 2008 4:04 PM | Reply | Permalink