The Economic Impact of Livable

Communities

John Marron
Indiana Association for Community
Economic Development
 Indiana Association for Community
Economic Development (IACED)
Dedicated to serving those who build strong Indiana
communities

Works to strengthen both the community economic

development industry and local organizations through:
 Public policy advocacy,
 Member collaboration,
 Training and professional development,
 Technical Assistance
Our nearly 300 members across the state rehabilitate and
construct housing, create jobs, develop real estate, support
small business development and deliver social services

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 A note on language…
Livable Communities (S. 1619, AARP)
Healthy Communities (Center for Disease Control,
Robert Wood Johnson Foundation)
Sustainable Communities (LISC, HUD-EPA-DOT)
Comprehensive Community Economic
Development (IACED)
Comprehensive Community Initiatives (MacArthur
Foundation, National Housing Institute, Institute
for Comprehensive Community Initiatives)
Neighborhood Partners (Annie E. Casey)
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 The TRIPLE BOTTOM LINE…
Healthy Environment Environmental Justice

Preventing and
Equity
Limiting Pollution

Community
Building
Preserving
Economic Inclusivity
Opportunity for
Future
Asset Building
Generations
Workforce
Energy Efficiency
Development

Subsidy for
Access to
Reducing Use of
Economic
Natural Resources
Opportunity

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 In short…
“We all want economic prosperity and a high quality of life for our
families, regardless of where we live or what we do for a living.
Across America, a new movement is emerging as citizens work
together to build more quality into their lives and make their
communities more livable. What are livable communities? People
want neighborhoods with safe streets and good schools. They
want good jobs that aren’t hours away from home. They want
housing they can afford and neighborhood parks where children
can play. They want to get to work or run errands without
spending hours in traffic. They want clean air to breathe and
clean water to drink. They want to live in a place that feels like a
community.”
-Vice President, Al Gore (2000)

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 Comprehensive Community Economic
Development is….
“An inclusive, holistic, asset- and community-
based process by which a shared vision for
an enhanced quality of life is created and
articulated in a results-based plan”
Urban Examples: Rural Examples:
Chicago McDowell County, West Virginia

Indianapolis Floyd County, Virginia

South Bronx, New York City Moscow, Idaho

Duluth, Minnesota Murray, Kentucky

Richmond, Virginia Dubuque, Iowa

San Diego Sparks, Nevada

Washington DC Fayette County, Pennsylvania

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 So what does a process look like?
Organize
Organize and get involved in the
neighborhood: Community Building
Decide
Decide collectively on the priorities for the
neighborhood: Quality of Life Planning
Act
Act on those priorities to implement change
in the neighborhood: Comprehensive
Community Economic Development

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 That’s great but…
What role does Comprehensive Community
Economic Development in promoting public
health???
The process is predicated on a resident-led planning process…

As these planning processes have played out around the state

– residents often articulate that they want sidewalks, multi-
use paths, bike lanes, access to healthier food, access
to locally-grown food, more walkable neighborhoods,
more destinations within walking distance of their
homes, safer streets, better access to transit, better
access to health care…

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 Okay, that’s fine, but you’re still a long
way from discussing the economic impact
of livable communities…
Multiple Choice Question:
At this point you think…
A. I totally see the connection; in fact, I could be giving this
webinar.
B. I believe this guy is going to get to the point, but I’m not
sure when
C. I wonder what I can find on YouTube

D. What?!?

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 ASSET BUILDING
Asset-building is an anti-poverty strategy that helps low-income people
move toward greater self-sufficiency by accumulating savings and
purchasing long-term assets. An example of an asset-building strategy
is the use of Individual Development Accounts, or IDAs, are special
matched savings accounts designed to help low-income people
accumulate savings for investment in a long term asset.

Asset Building strategies help low-income residents to purchase or rehab a

home, capitalize a small business, or invest in an education. BUT…

Asset Building strategies require participants in the program to make

monthly (or more frequent) financial contributions to participate in the
programs. MEANING…

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 ASSET BUILDING
IT’S EXTREMELY DIFFICULT TO TALK SERIOUSLY ABOUT
MEANINGFUL ASSET-BUILDING STRATEGIES IF LOW-
INCOME RESIDENTS CANNOT GET TO WORK!

In other words, Walkability, Bikeability and Transit are extremely

important to economic vitality; which in turn, enables families to
build assets.

According to the 2006-2008 American Community Survey, more than

13.35 million Americans get to work by some means other than
automobile.

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ASSET BUILDING

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 ASSET BUILDING
Multiple Choice Question:

According to the 2006-2008 American Community

Survey, how many Indiana residents get to work by
some means other than automobile:
a. 53,253
b. 98,742
c. 135,215
d. 153,992

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 ASSET BUILDING
Multiple Choice Question:

According to the 2006-2008 American Community

Survey, how many Indiana residents get to work by
some means other than automobile:
a. 53,253
b. 98,742
c. 135,215
d. 153,992

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 ASSET BUILDING
Don’t try this at home, but…

If you were to multiply the number of Indiana residents

that are non-automotive commuters (135,215) with
the median household income ($48,675) for the State
of Indiana, you would find more than $6 billion in
wages earned by non-automotive commuters.

Disclaimer: Due to the extremely suspect methodology represented here, the economic impact
stated should not be used as a meaningful figure in any way, shape or form, You especially
should not use it while operating heavy machinery, It is meant for educational purposes only;
and of course, it is void where prohibited.

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 ASSET BUILDING
So the point is…

There are a number of Indiana residents who are able to

earn money and build assets without commuting to
work in an automobile. Collectively, this group has a
significant economic impact on the state.

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 ASSET BUILDING
DID YOU KNOW…

According to the 2000 Census, there are 22 cities and

towns in Indiana with populations greater than 10,000
where more than 10 percent of the population fifteen
and over live in a car-free household.

East Chicago, Gary, Evansville, South Bend, Marion, Richmond, Hammond, Terre Haute,
Crawfordsville, Frankfort, Bedford, LaPorte, Bloomington, Michigan City, Vincennes, Muncie,
Speedway, Kokomo, Elkhart, Anderson, Washington, and New Albany.

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Okay, maybe you have a point… What else
can you teach me?
COST OF LIVING:
Traditionally, cost of living has been determined by the cost of
housing-related expenditures. A household spending more than
30 percent of its income on housing related expenses is
considered to be ‘cost-burdened.’

The Center for Neighborhood Technology issued a 2010 report

detailing the costs of housing and transportation together and
considered spending more than 45 percent of a household’s
income on housing and transportation combined to be ‘cost-
burdened’.

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 COST OF LIVING
Housing costs are
less than 30 percent
of household income

Housing costs
exceed 30 percent of
household income

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Source: H + T Affordability Index
 COST OF LIVING
Combined housing and
transportation costs are
less than 45 percent of
household income

Combined housing and

transportation costs
exceed 45 percent of
household income

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Source: H + T Affordability Index
 WORKFORCE DEVELOPMENT

Sprawling patterns of development reduce

opportunities for low-skill workers to participate in the
economic mainstream and contribute to the
geographic concentration of poverty.

It has been argued that if unchecked, sprawl will

continue to undermine the basic systems necessary
for residents of inner cities and suburbs to gain skills
and jobs.

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 WORKFORCE DEVELOPMENT
Due to sprawl, many entry level jobs have relocated
to suburbs and led to a number of difficulties for
central cities:
Diminished tax base for the central city
Reduced access to services, including education (the foundation of
workforce development)
Higher transportation costs
Aging infrastructure
Exacerbated inequalities within a region
Reduced economic competitiveness of a region
Concentrations of poverty

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 WORKFORCE DEVELOPMENT
Best practices to reduce the negative impact of
sprawl on workforce development include:

Regional approaches to tax policy (see Minneapolis)

Asset-based Community Development (see Kretzmann, McKnight)
Cluster-Based Economic Development (see Michael Porter)
Targeted Philanthropic Efforts (see Kalamazoo Promise)
Microenterprise Strategies (see Urban Institute)
Subsidies for new businesses that are ‘location efficient’ (see Good Jobs
First)
Transit Oriented Development (see various)
Mixed Use zoning districts (see Smartgrowth America and others)

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 So Back to Comprehensive Community
Economic Development for a minute…

MULTIPLE CHOICE QUESTION:

Which of the following are important aspects of a
Comprehensive Community Economic
Development process?
a. Community Building and Collaboration
b. Cluster Analysis and Mapping
c. Surveying and Analyzing Survey Data
d. Putting the each shoe on the correct foot with
your eyes closed
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 COMMUNITY BUILDING
The process of developing resident leadership
and viable neighborhood institutions which
can produce tangible improvements for the
community.

This occurs through leadership training,

relationship development among leaders, and
targeted collaborative action.

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 COLLABORATION
Denotes a durable and pervasive relationship.
Collaborations bring previously separated
organizations into a new structure with full
commitment to a common mission.

Such relationships require comprehensive

planning and well-defined communication
channels operating on many levels.

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 So what do community building
and collaboration have to do with
the economic impact of healthy
communities?

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 So what do community building
and collaboration have to do with
the economic impact of healthy
communities?

Source: Keiffer and Reischmann “Contributions of Community Building to Achieving Improved Public 28
Heath Outcomes” Final Report (2004)
 In Short…
“Community building strategies are believed to create or increase the
capacity and connections between individual, organizations and the
community-at-large and to those outside of the community that will lead to
growing community awareness of the causes and methods for prevention or
amelioration of health problem, and readiness and empowerment to engage
in change. These processes also lead to development of, and increased
access to, resources necessary to successfully implement and sustain
programs, policies, and related activities designed to reduce behaviors and
conditions in the social and physical environment that are detrimental to
health, and to improve or increase behaviors and environments that promote
health. Sustainability is essential, given the duration of effort needed to
achieve lasting change in most public health outcomes. The mission of
achieving equity and social justice underpins both community building and
public health strategies and outcomes.”

Source: Keiffer and Reischmann “Contributions of Community Building to Achieving Improved Public 29
Heath Outcomes” Final Report (2004)
 TRADITIONAL ECONOMIC
DEVLEOPMENT

Economic development generates community

wealth for the well-being of inhabitants.

Economic development improves quality of life for a

community by creating and/or retaining jobs and
supporting or growing incomes and the tax
base.

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 GETTING THE TYPES OF BUSINESSES
YOU WANT…

Site Selection Considerations for Businesses:

Access to Transportation Network
Adequate Infrastructure
Access to an Adequately Skilled Workforce
Ease of Obtaining Site Control, Permitting, etc.
Location among Industry Clusters
Quality of Life Considerations
Subsidies

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GETTING THE TYPES OF BUSINESSES
YOU WANT…

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ATTRACTING THE TALENT YOU WANT…

Locational Considerations for Knowledge

Workers:
1. High Quality of Life

2. Adequate Jobs

3. Other

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ATTRACTING THE TALENT YOU WANT…

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 SO WHAT GOES INTO A HIGH QUALITY
OF LIFE?
PRINCIPLES OF HEALTHY NEIGHBORHOODS
Civic
Leadership, Vision, Collaboration
Social
Services, Education, Culture
Physical
Safety, Environment, Housing
Economic
Business Diversity, Economy,

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 HEALTH ASPECTS OF A HIGH QUALITY
OF LIFE
Walkable & Bikeable
Neighborhoods
Access to Transit
Access to Recreation &
Entertainment
Access to Services
Mix of Uses
Safe, Decent, Affordable
Housing
Economic Vibrancy

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 ECONOMIC VALUE OF WALKABILITY

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SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)
 ECONOMIC VALUE OF WALKABILITY
Asset Building:

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SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)
 ECONOMIC VALUE OF WALKABILITY
Accessibility – Especially for the transportation-disadvantaged

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SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)
 ECONOMIC VALUE OF WALKABILITY
Consumer Cost Savings – Percentage of household income spent
on transportation

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SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)
 ECONOMIC VALUE OF WALKABILITY
Externalities Borne by the Public:

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SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)
 ECONOMIC VALUE OF WALKABILITY
Land Use Efficiencies:

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SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)
 ECONOMIC VALUE OF WALKABILITY
Community Livability:
The environmental and social quality of an area as perceived by
residents, employees and visitors.

Social Capital:
The quality of relationships among people in a community, as
indicated by the frequency of positive interactions, the number of
neighborhood friends and acquaintances, and their sense of
community connections, particularly among people of different
economic classes and social backgrounds.

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SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)
 ECONOMIC VALUE OF WALKABILITY
Public Health:
Heart disease, stroke, hypertension, diabetes, obesity, osteoporosis,
depression, some types of cancer, and other diseases have been
identified as being directly attributable to physical inactivity.

Health-Related Cost Savings Attributable to Walkability:

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SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)
 ECONOMIC VALUE OF WALKABILITY
Other Areas:
•Economic Development
•Equity

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SOURCE: Litman, Todd P., “Economic Value of Walkability.” Victoria Transportation Policy Institute (2010)
 TRANSIT-ORIENTED DEVELOPMENT (TOD)
TOD Defined:
“Transit-oriented Development (TOD) is moderate to higher-density
development, located within an easy walk of a major transit stop,
generally with a mix of residential, employment and shopping
opportunities designed for pedestrians without excluding the auto. TOD
can be new construction or redevelopment of one or more buildings
whose design and orientation facilitate transit use.” (State of California)

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SOURCE: City of Calgary, “Best Practices in Transit-Oriented Development” (2004)
 HEALTH & TRANSIT-ORIENTED
DEVELOPMENT
Appropriate Land Uses: Transit stops tend to
generate pedestrian trips; and therefore, support
neighborhood-scale commercial districts which also
encourages pedestrian activity.
Dense, Compact, and Mixed Use Development
Pattern: A dense, compact development pattern
with a mix of uses supports the development and
viability of commercial uses with a ready market
present throughout the day.
Pedestrian Connections & Balanced
Transportation: The number of pedestrians in a
well-designed transit-oriented development ensures
the needs of the pedestrians are balanced with
other modes of transportation.

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SOURCE: City of Calgary, “Best Practices in Transit-Oriented Development” (2004)
 TRANSIT-ORIENTED DEVELOPMENT &
LOCAL ECONOMIES
Definitive research regarding the economic impact of TOD is inconclusive at
this point. With that being said, the following are usually cited as
opportunities about which advocates for TOD can be excited:
Reinvestment in central cities
Connecting residents to jobs
Avenues for affordable housing strategies
Brownfield redevelopment possibilities
Reduced costs of maintaining and adding automobile infrastructure
Affordable transportation
Placemaking

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SOURCE: City of Calgary, “Best Practices in Transit-Oriented Development” (2004)
QUESTIONS?
 Contact Information
Indiana Association for Community Economic Development
2105 N. Meridian Street, Suite 102
Indianapolis, Indiana 46202
(317) 920-2300
www.iaced.org

John Marron
Program Manager, IACED
Chair, Health by Design
jmarron@iaced.org

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