The paper examines the impact of tax increment financing (TIF) on the value of industrial properties in Chicago. Because TIF designation may be self-selected, a two stage procedure is used to estimate the influence of TIF. The authors find that the value of industrial parcels located in mixed-use TIF districts (i.e. those that also contain commercial or residential properties) is higher than that of similar parcels that are not located in a TIF district. However, the value of industrial parcels that are located in homogeneous industrial use TIF districts is no higher and in some specifications is lower than that of similar parcels not located in a TIF district. These divergent results may be best explained by industrial parcel owners' desire to convert their properties to non industrial uses.
D o investments in transportation infrastructure provide long-term economic benefits? That question has generated an enormous research output over the past decade, mostly produced by economists. The question is of central importance to planners who must often argue for (or against) transportation infrastructure projects. This article does not provide an unambiguous answer to the question but rather reviews and summarizes the recent empirical literature that addresses the question. Given that so much of that literature has appeared in academic journals of economics, many planners have not been aware of the findings. Planners interested in the question but disinclined to wade through the econometrics so heavily employed in that literature will find this review article useful.One of the defining features of planning, as a discipline, is its explicit recognition and utilization of spatial-political boundaries within which policies are implemented. Thus, while there are many planners who are interested in aggregate geographical units such as states or the nation as a whole, there are far more who focus on local consequences of place-specific projects, namely, planners with metropolitan planning organizations (MPOs). But given that local transportation projects often depend on funds from higher levels of government (Lewis and Sprague 1997; Voith 1998), it is relevant for all planners interested in transportation to understand the nature of economic impacts of transportation at both the local and aggregate levels. The literature reviewed in this article, therefore, includes local-as well as state-and national-level studies, even while distinguishing between these different perspectives.The economic benefits of transportation improvements seem obvious when reading newspaper stories about trucks waiting two hours to cross the Peace Bridge linking Buffalo and Erie, Ontario, or of hellish conditions and dangers on former roads in the Congo where a thirty-mile journey may take more than one day by truck. But the measurement of such benefits is not obvious, nor is it easy. There are two broad classes of economic benefits that might arise as a consequence of public investment in transportation: short-run benefits and long-run benefits. Short-run benefits are the employment, earnings, and spending stimuli that spread from the construction industry to suppliers, workers, and retailers. Multipliers from input-output tables are used to estimate the industry-by-industry effects of a transportation project. This review excludes AbstractThis article reviews the recent literature on the long-term economic benefits of public investments in transportation. It organizes the literature into six groups according to the type of benefit being measured, namely, output; productivity; production costs; income, property values, employment, and real wages; rate of return; and noncommercial travel time. The central question addressed by the papers reviewed is whether public investments in transportation yield long-term economic benefits. While the...
We estimate the probability that a residential building in a gentrifying neighborhood will be demolished, situating the decision within a context of consumer preferences, neighborhood change, and public policy. We perform a logit analysis of address-level data for every privately initiated demolition permit issued in three Chicago community areas between 2000 and 2003. We find that smaller, older, frame buildings with less lot coverage had a greater probability of being demolished during this period. Political jurisdiction and socioeconomic factors, other than the change in Hispanic population, were less important than expected. Demolished structures were located in appreciating areas, further away from Tax Increment Financing districts. We speculate that this popular redevelopment tool has been used in areas with primarily commercial land uses on the periphery of residential neighborhoods and that rent gaps are reduced by the negative externalities associated with conflicting land uses. put the city up; tear the city down put it up again; let us find a city. Carl Sandburg, ''The Windy City''Despite the fact that demolitions remake the urban landscape on a daily basis, little scholarly attention has been directed toward understanding this form of creative destruction. 1 The lack of attention is due partly to the fact that demolitions are rarely treated as an end unto themselves, but more as a prelude to redevelopment or vacant land, both of which have been studied more extensively. As Bender (1979) pointed out, the long-run equilibrium models of housing production favored by economists tend to ignore the shortterm removal of suboptimal stock.The incidence of demolition, however, is important in and of itself. Demolition has the potential to eliminate buildings of historic, cultural, and architectural importance, some of which are viewed as playing a role in maintaining the physical coherence of neighborhoods. To witness an act of demolition is to watch the built environment change shape in
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