<<  <  >  >>

may be a catalyst for subsidies to develop-

tax-increment financed subsidies from the

ment, it is not itself a catalyst for development.

Portland Development Commission. The

North Macadam District, which received at

least $289 million of these subsidies, is also

Myth #4:

the location of the aerial tram. It is fair to say

Portland Curbed Sprawl

that the subsidies played a much larger role

in redevelopment than a 7-mile-per-hour

streetcar line or 13-mile-per-hour tram.

Even if Portland's integrated land and

Other subsidies include Federal Transit

transportation planning is not changing

Administration grants to transit-oriented

people's travel habits, planning advocates

developments; U.S. Department of Transpor-

content themselves with the thought that

tation grants for "congestion mitigation," and

Portland is at least preserving farmland and

(as previously mentioned) below-market land

curbing sprawl. After all, according to the

sales and 10-year tax waivers for high-density

Census Bureau, between 1990 and 2000, the

housing.46 When tax-increment finance dis-

population density of the Portland urbanized

area increased by 10.6 percent.50

tricts aimed at supporting new light-rail lines

are added, subsidies to Portland-area transit-

One problem with this reasoning is that

oriented developments probably come close to

many urban areas that have no urban-growth

$2 billion, not counting the cost of light rail,

boundaries increased their densities by even

Rail transit is not

streetcars, or other transit projects.

more than 10.6 percent. During the 1990s,

a catalyst for

Portland's story of spending $90 million

Kansas City's density increased by 39 percent;

development; it is

on a streetcar line to get $2.3 billion of devel-

Phoenix's by 34 percent; Dallas-Ft. Worth's by

opment, or $57 million on an aerial tram to

33 percent; San Antonio's by 26 percent;

a catalyst for

get $1 billion of development, sounds attrac-

Houston's by 20 percent; and Orlando's by 13

subsidies to

percent.51 One reason for these increases is

tive to officials from other cities. It might not

development.

sound so attractive if Portland admitted that

that the Census Bureau changed its definition

it really had to spend $665 million, in addi-

of urbanized area so as to eliminate vacant

tion to the cost of the streetcar line and tram,

lands that had previously been included.

not to mention 10-year tax waivers on at least

Another reason for Portland's increased

$100 million of development, to get that $2.3

density is that much of the growth took place

billion worth of development.

as "infill" on prime farmlands, such as

"It is a myth to think that the market will

Orenco, that happened to be inside the

take care of development along transit corri-

region's urban-growth boundary. This sug-

dors," said Portland City Commissioner

gests that planners are not so much protect-

Charles Hales in 1996, when he proposed to

ing farmlands as determining which farmers

subsidize such developments.47 "The $55

get to enjoy windfall profits because they are

inside an imaginary line.

million streetcar line has sparked more than

At the same time that newcomers

$1.5 billion (and growing) in new develop-

increased the Portland area's density, large

ment," said consultant Charles Hales 10

numbers of other people escaped Portland's

years later, working to sell streetcars to other

planning system by moving to Vancouver,

cities and conveniently forgetting about the

Washington; Salem, Oregon; and other com-

subsidies he promoted when he was on the

city council.48

munities outside the reach of Portland plan-

ners. As land-use rules drove up housing

"Look at all the cranes in the city," says

prices, many people with Portland-area jobs

developer Homer Williams. "Outside of two or

moved to communities outside the bound-

three exceptions, it's all because of the street-

car."49 Yes, because of the streetcar and the

ary. "Middle-class people are moving to the

suburbs for bigger houses," admits Portland

hundreds of millions of dollars in subsidies in

city commissioner Erik Sten.52

the areas served by the streetcar. While transit

9