Tuesday, November 6th, 2012
[ George Mattei is a long time reader and frequent commenter on the blog. I find his comments are very insightful. One in particular really caught my eye and I asked him to turn it into a full blog post. Thankfully he said Yes so here it is - Aaron. ]
How Physical, Cultural and Political Differences Shape Development and Economic Growth
I was recently asked to make a comparison living in New England versus the Midwest-specifically how cultural and political differences impact the economic and physical development framework of the two regions. This is something that I have at least a modest knowledge of, given that I have lived and worked in both areas (Born and raised in Hamden, CT near New Haven, attended college near Boston and now live near Columbus, OH). As a real estate developer and planner specifically I have paid quite a bit of attention to these differences.
I moved to Columbus from Connecticut nearly 15 years ago to attend grad school. I must admit the cultural differences between these two areas were a bit surprising at first. The basic differences were obvious-different land development patterns, different industries and even different landscapes. However, after living in Ohio for several years, I came to understand on a personal level the cultural and political differences and how they have -and continue to- shape and form these regions.
These differences show up in subtle ways that are also telling. In New England, my experience was that residents have a much more territorial, parochial view of their communities, and are more likely to resist change and development. In contrast, in many Midwest metro areas the residents have a more metro-focused view of their region, and better understand how the different communities interact. This does not mean that they always cooperate, but by nature some of the governmental functions are already done on a regional basis, making it easier to collaborate on certain tasks and be more open to change.
It’s perhaps deceptively simple, yet revealing, to pick a typical resident in a community in each area, ask them a simple question, and read into their response. Let’s pick two fairly standard metro area cities – Hilliard, OH and Attleboro, MA – and compare them on several levels. First some background information.
Hilliard is a suburb about 10 miles northeast of Columbus that was founded as its own small railroad community in the mid 1800’s. It had less than 1,000 people until the 1960’s, when it began to grow exponentially with the construction of the I-270 outerbelt around Columbus. Today it is a middle to upper-middle income community of about 28,000 residents sandwiched between Columbus, other suburban communities and the rural farm fields of western Franklin County.
Attleboro, MA is a city about 10 miles northeast of Providence, just over the border into Massachusetts, and 30 miles southwest of Boston. It was founded in the late 1600’s and steadily grew in population to the nearly 45,000 people it has today, but was a community of about 25,000 people in 1950 prior to the time when it would have been absorbed into the larger metroplex. It is now part of the Providence Metropolitan area, located right on I-95 between Boston and Providence, and is also linked to the two via the MBTA Boston-Providence commuter line. It was once known as the “Jewelry Capital of the World” due to the presence of several jewelry manufacturers in the city in the early 1900’s. Today Attleboro has transitioned from a manufacturing-dominant self-contained city into a quasi-suburban middle income community that has melded into the surrounding metropolis.
Now that we have a background on the two communities, let’s pose our simple question from someone unfamiliar with these areas-“Where are you from?” The answers each give would be subtly different, but telling in how they view their community and its relationship to the surrounding region. From my personal experience, here’s how each resident would answer this question:
Hilliard: “I’m from Columbus Ohio.”
Attleboro: “I’m from Attleboro, MA.” (Sometimes, they will abdicate this and say “I’m from Massachusetts”, but that’s just for convenience so they don’t need to go into a lengthy description of where Attleboro is).
The differing level of detail reveals not only how they view their community, but allows us to look at where these views come from. Clearly the Hilliard resident considers him/herself more a part of the metropolitan area. The Attleboro resident sees him/herself as a resident of the town first, and then the State, with no mention of the metro area.
Why would this be? There are several physical, cultural and political factors that play a role:
1. Municipal Borders. Municipal borders in New England were fixed long ago, well before metro areas became the main economic unit. In much of the rest of the country, including the Columbus area, communities continue to change their boundaries through annexation (more on the legal aspects of this in a moment). The borders of New England cities and towns were fixed hundreds of years ago and have rarely changed since.
2. Proximity of Metro Areas. New England has numerous small (except Boston) metros that bump up against one another. As a result, you get an agglomeration of established communities that sit between metro areas. In the Midwest, communities are spread farther apart. In Ohio, a state with several metro areas, many counties still have a modest sized county seat and a few villages. There is still quite a bit of country between many of the metro areas, and the spacing gets farther as you go west into other states.
In our example, it’s pretty clear that Hilliard would still be a small village of less than 1,000 people if Columbus hadn’t sprawled out to meet it and envelop it within its metro footprint. Many residents probably work in Columbus, and the ones that don’t work in one of the other suburban communities that owe their growth to Columbus, just as Hilliard does. When residents want a night out on the town, Columbus is the only game in town without a long trip.
Attleboro is a different case. It was a small city in its own right before it ever became part of a larger metro area. It sits 10 miles from Providence and 30 from Boston, and probably has many residents that work in both cities, plus in several other suburbs in the area that have the same fractured allegiance to multiple metros. Cultural opportunities abound in both cities, which can result in many visits to both.
3. Small Box Government. Although both regions tend to have a “small-box” governmental structure, it is actually far stronger in New England than in the Midwest. This is codified in the governmental structure of the areas in numerous ways:
a. First, New England “towns” are essentially the equivalent of “townships” in other parts of the country. However, there are significant differences. In Ohio, townships are considered semi-autonomous extensions of the County government. They are not incorporated as their own municipalities. They are run by their own elected officials, but have only limited powers as delegated to them by the Ohio Constitution. In legal-speak, they are not full “home rule” governmental entities. For example, townships can have zoning (if they jump through certain hoops), but they cannot approve subdivisions-that’s a County function. Incorporated municipalities in Ohio are full home-rule entities.
New England towns are also not incorporated. However, this is a virtually meaningless designation. They do have home rule, and function in virtually every way just like an incorporated city. They cannot be annexed by a city. A friend of mine that’s heavily involved in my home town’s local government once said to me, “we looked into incorporating ourselves as a city, but it didn’t mean much and required us to pay higher fees to the State.”
b. Speaking of counties, New England has a fractured form of county government. Connecticut, Rhode Island and Vermont do not have any county governments, only lines on a map. Massachusetts has abolished some counties, while some having merged and other still function independently. Only New Hampshire and Maine have what appear to be fully operational county governments. In areas without counties, each town or city provides most of its own services. For example, in Connecticut, each town has its own elected clerk that just handles document recordation in that town. Only services that absolutely can’t be run on a local level are done regionally, such as the judicial system-however this is run by the State via districts that roughly correspond to the county boundaries.
In the Columbus area, each county has a robust governmental structure that provides a number of services that are more easily provided on a regional level, such as courts, auditor and recorder and Sherriff services. In Indiana, their Unigov system merged the City of Indianapolis and Marion County to even further expand the box.
c. In Ohio, Townships can also lose land to municipalities that swallow up territory through annexation. The City of Columbus essentially controlled development in Central Ohio for 50 years through buying up the water and sewer systems and only agreeing to provide service to developers if they annexed to the City or a suburb with which the City had an agreement in place. This was a “big box” approach that was put in place in the 1950’s, and has worked well for Columbus over the years. In New England, the borders were fixed a few hundred years ago, and they don’t change-only “small boxes” available.
4. Population Density. New England is more crowded already than many other parts of the country. This furthers resistance to new developments, resulting in higher real estate prices. This, along with the lack of economic activity that would draw many new residents to the area, means that-outside of Boston- many New Englanders were born and raised there. Not much fresh blood to re-think the way things are done.
5. Local Taxation. The manner in which local taxes were levied in Connecticut is very different than in Ohio. In Ohio, income tax (charged where you work, not live) funds much of the local revenue for cities and townships, with property taxes going to fund school districts which are operated as separate governmental subdivisions. In Connecticut, property taxes support most of the local level spending, so property value is king. In a majority (although not all) of the communities the school district is only semi-autonomous and is funded directly as a line item in the municipal budget.
The impact of this is actually quite dramatic. In Ohio it pays to cram as many jobs as you can into your community. Many communities welcome every office, strip mall and warehouse they can get. In Connecticut, many people tend to react the opposite way-they don’t want these uses. They bring traffic and pollution, which can bring property values down (at least that’s the fear), thereby weakening the municipal coffers. Exclusivity pays when keeping out more intense uses to preserve the bucolic countryside atmosphere leads to wealthy residents building large estates that pay lots of taxes. There is likewise much less of an incentive for local leaders to welcome the newest strip mall into their community, especially when they need to provide more police services and bigger roads. In Ohio, almost every highway exit, even the ones in high-end communities, has several commercial establishments near them. In Connecticut, many exit onto leafy drives that run to quiet residential areas.
6. Terrain. Physical landscape plays a role-if you get 20 feet off the ground in Hilliard, the Columbus skyline is in full view, due to the flat terrain. I guess that it would take a much higher point to be able to see Providence from Attleboro, given the rolling terrain. Out of sight-out of mind.
7. History New England has a very rich history. Pilgrims, founding fathers, settlement in the 1600’s, historic town centers, fishing villages, former industrial powerhouses, Ivy League universities – all of these things contribute to a culture where the past is revered. Here in Columbus, people’s self-worth is in the future. It’s a young, relatively anonymous, but up-and-coming city. It has a history, but most people don’t hang their self-identity hat on it (in fact, I would argue that there is an unhealthy self-angst about Columbus’ past by its residents). Many other Midwest metros also have a slightly older history characterized by the manufacturing boom in the early 20th century-which is still within the memory of many of its residents, and so doesn’t hold the gravitas of New England’s founding fathers.
We can now go back and look at why our two residents answered our question the way they did in the context of the above differences. The Attleboro resident answer Attleboro for two overarching reasons-1) they have more than one metro area with which to identify and 2) the historic, political and physical geography of the area fosters an overreliance on the city/town as the dominant cultural, political and social institution in the region. The Hilliard resident answered Columbus for exactly the opposite reasons-1) Hilliard clearly falls within only the Columbus metro area and 2) there is no dominant physical and cultural reason, and much weaker political reasons, to answer Hilliard to someone else.
Cumulative Effect on Regional Culture
The cumulative result of these cultural, physical and political structures is a significantly different approach to development, both physical and economic. New England has a much stronger resistance to change. Why would a community that prides itself on its historic past want to demolish some of it to build new, modern facilities? They don’t. Even in Boston, the economic powerhouse of the region, many people still deride the skyline as “turning Boston into New York”. Their true pride is placed in the Back Bay, North End, the Commons, Southie, etc.
This also extends to greenfield development. While many areas have residents that resist change, New Englanders have a particularly powerful argument-the history of place. After all, the heritage of the area is small, dense nodes with pastoral, rolling hills in between. A colonial-style home on a 10-acre exurban lot preserves much of that look. A relatively dense subdivision of 4 units an acre does not. Local officials tend to listen to this argument more in New England than in other parts of the country, because their self-worth is strongly tied to their history and their tax base to property values.
Even in a loss, the impact on the local psyche is not as significant. When UPS moved their offices out of southwest Connecticut in the early 90’s, no one felt like the true character of the region was threatened. Sure, jobs were lost, and that was hard, but it didn’t make the region any less proud of itself. Contrast that to many Midwest metros, who keep a scorecard of Fortune 500 companies in their pocket to show outsiders, and who feel real reputational angst whenever a company leaves.
Furthermore, the “small box” view tends to stifle larger economic development goals that would be beneficial to the region as a whole. Today it’s virtually impossible to get an even modest expansion of the obsolete Tweed-New Haven airport, for example, even though it sits in the middle of one of the largest underserved air markets in the nation. It straddles the border of two municipalities that fight over it incessantly (to be fair it is near a number of single-family neighborhoods). Meanwhile many Midwest cities have actively expanded their airports to nurture these crucial links to the external economy.
Without new greenfield development and modern buildings, airports and other facilities, it can be difficult to attract new companies to the area. The communities in New England that do have a number of these newer facilities (such as those off of the fabled Route 128 near Boston) often have them because their sense of history was ripped apart by the momentary fervor for building interstate highways in the area-one which has faded in New England but which still runs strong in the Midwest. Midwestern cities still develop scads of suburban office buildings and shopping centers-often too many- while the relative dearth of development in New England results in some markets being highly overpriced relative to other areas of the country. Surprisingly, although Boston has a very dense core, the area around the I-495 outerbelt (one of the largest outerbelts in the nation) is only very thinly developed in many areas.
Beyond the development aspect, New England has a regional mindset that is from my experiences fairly unique. In some ways the Northeast, with New England as a part of that area, is worldly-a gateway to America, home to several large world-class cities, a history of immigration and a density that make this region feel busy, prosperous and cosmopolitan. It often sets trends that the rest of the world follows.
On the other hand, it is also a region of small boxes, one that lives in the past as much as the future and one that resists change fairly aggressively. The view is not forward-looking in many cases. It’s somewhat inward-looking. The identities are fragmented and parochial. The bottom line is that outside of a few business cluster locations like Cambridge or Wall Street, or a few high-society locations like the Hamptons or Greenwich, the Northeast doesn’t want to necessarily be a trend-setter, even though it often is. It’s not that interested in climbing the ladder to “world class” or the “big time”- partly because it thinks it’s already there, but partly because it would have to sacrifice part of its identity. It’s just fine with its leaf-strewn rolling hills, historic downtowns, fairly moribund economic performance and proximity to world-class New York and Boston.
As a final note-it may sound that I am bashing this mindset. I don’t necessarily think it’s all bad. I do believe that New England could do more to promote more job growth and think regionally about its future. Some forward, big box thinking here would be welcome. On the other hand, not many places in America have the rich history and scenic beauty that New England has, and this is exactly the kind of “authentic brand” of which Aaron Renn has spoken so often of late. Indeed, tourism has become a big part of the New England economy over time as many people recognize this brand and want to experience it for themselves. Artists, authors and creative types, at least the highly successful ones that can afford it, tend to flock to the area to live and work in relative seclusion and anonymity. This lifestyle, in my opinion, should be preserved and nurtured in a nation where so many places do seem like every other place.