Tag: Wichita Downtown Development Corporation

  • For Wichita city government, open records are not valued

    As a condition of renewing its contract with the Go Wichita Convention and Visitors Bureau, I asked that the Wichita City Council require that the agency comply with the Kansas Open Records Act. As has been the case before, the city council and city staff say they are in favor of open records and government transparency, but their actions indicate that they are not.

    After my remarks, which are presented below, City manager Bob Layton said that my attack on the city attorney was unfair, that it was not he who made this decision not to comply with the Kansas Open Records Act. Instead, he said the decision was made by the Convention and Visitors Bureau’s own attorney. John Rolfe, the Bureau’s president, said he believes that his organization has been open in their explanations of how they spend their funds, at least to the City.

    Rolfe also repeated his mistaken belief that I’ve discussed with the Bureau’s attorney how I might gain access to the information that I’ve requested. These discussions have not happened. That’s not the way the Kansas Open Records Law works. Citizens do not negotiate with agencies to gain access to records. The law says that citizens make requests, and agencies comply.

    Furthermore, the duty of the Bureau’s attorney is to protect and advance the interests of his client, not the interests of the public. The fact that the city council and the city manager are comfortable with this arrangement is disturbing.

    Any member of the city council could have followed my suggestion to make a motion that the city ask that the Convention and Visitors Bureau to simply agree that they are in fact a public agency as defined in the Kansas Open Records Act. But none of them did.

    Council member Jim Skelton asked questions several times seeking to find out how the agency spends its funds, but he did not give “how” a specific meaning. The city and most agencies would like to present simple and broad budgets or income statements to account for their spending. But this level of disclosure, which is what the Convention and Visitors Bureau provides to the public, is not sufficient.

    Here’s an example why: Last year a trustee for Labette Community College noticed that a check number was missing from a register. Based on his inquiry, it was revealed that the missing check was used to reimburse the college president for a political contribution. While it was determined that the college president committed no crime by making this political contribution using college funds, this is an example of the type of information that citizens may want regarding the way public funds are spent.

    This is the type of information that I have requested. It is what is needed to perform effective oversight. Three agencies — Go Wichita Convention and Visitors Bureau, Greater Wichita Economic Development Coalition, and Wichita Downtown Development Corporation — have all refused to comply with requests like this. The city council members and staff have agreed with their positions.

    This is not transparency. This is not accountability.

    When citizens believe that agencies are not complying with the Kansas Open Records Act, they have three options. One is to ask the Kansas Attorney General for help. But the policy of the Attorney General is to refer all cases to the local District Attorney, which is what I have done. The other way to proceed is for a citizen to pursue legal action at their own expense.

    The Sedgwick County District Attorney has had my case since December 17 of last year. That office has been working on the case, and a decision is expected soon.

    No matter which way the District Attorney decides, the City of Wichita, its quasi-governmental taxpayer-supported agencies, and their hostility to open records is a matter that the Kansas Legislature should notice. We need a better records law.

    Following are remarks I delivered today to the Wichita City Council regarding the city’s compliance with the Kansas Open Records Act.

    I’m recommending that the city not renew its contract with the Go Wichita Convention and Visitors Bureau until that organization decides to follow Kansas law, specifically the Kansas Open Records Act.

    I’ve requested records from this agency. Its response is that the agency is not a “public agency” and therefore is not subject to the open records law.

    Here’s why the Go Wichita Convention and Visitors Bureau is a public agency subject to the Kansas Open Records Act. KSA 45-217 (f)(1) states: “‘Public agency’ means the state or any political or taxing subdivision of the state or any office, officer, agency or instrumentality thereof, or any other entity receiving or expending and supported in whole or in part by the public funds appropriated by the state or by public funds of any political or taxing subdivision of the state.”

    The Kansas Attorney General’s office offers additional guidance: “A public agency is the state or any political or taxing subdivision, or any office, officer, or agency thereof, or any other entity, receiving or expending and supported in whole or part by public funds. It is some office or agency that is connected with state or local government.”

    According to its 2008 annual report, 89% of Go Wichita Convention and Visitors Bureau’s revenue came from the transient guest tax. I suggest that this qualifies as supported “in whole or in part” by public funds.

    The Kansas Open Records Act has an exception, but that does not apply to this agency. There’s no rational or reasonable basis for the this agency’s assertion that it is not a public agency subject to the Kansas Open Records Act.

    Mr. Mayor and council members, look at the plain language of the Kansas Open Records Act, as I’ve explained. Look at the intent of the Kansas Legislature as embodied in the statute: “It is declared to be the public policy of the state that public records shall be open for inspection by any person unless otherwise provided by this act, and this act shall be liberally construed and applied to promote such policy.”

    The policy of the state is that records should be open. Governmental bodies shouldn’t be looking for excuses to avoid complying with the law, as has the City of Wichita and this agency, and has two other similar agencies. Especially when the reasons the city legal staff has used are wrong, both in terms of the letter of the law and its intent.

    Now I realize that Mr. Gary Rebenstorf, the Wichita City Attorney, disagrees with my contention that this agency is in fact a public agency as defined by the Kansas Open Records Act. Mr. Rebenstorf has been wrong several times before when issuing guidance to this council regarding the Kansas Open Meetings Act, which is similar to the Open Records Act. He’s taken the blame and apologized for these violations. He was quoted in the Wichita Eagle as saying “I will make every effort to further a culture of openness and ensure that like mistakes are avoided in the future.”

    But with regard to my records requests, he’s advised this council to keep records closed when the law and the public policy of this state says they should be open.

    He, or perhaps whoever is instructing him as to what opinions to write, is hostile towards towards open records and citizens’ right to know.

    Mayor, you’ve spoken about “building public trust in government” and working to achieve greater transparency. Manager Layton has as a goal “Promoting transparency by providing timely, accurate and relevant information.”

    This is a chance for the political leadership of this city to make a decision: does the city promote transparency by deciding itself what information to release, or does it agree to citizen-driven accountability, where citizens are in charge?

    It’s not only this agency. The Wichita Downtown Development Corporation and the Greater Wichita Economic Development Coalition are similarly situated.

    As a condition of renewing the city’s contract with the Go Wichita Convention and Visitors Bureau, I ask that this council instruct the Bureau to follow the Kansas Open Records Act.

  • Wichita downtown plan focused on elite values, incorrect assumptions

    One of the themes of those planning the future of downtown Wichita is that the suburban areas of Wichita are bad. The people living there are not cultured and sophisticated, the planners say. Suburbanites live wasteful lifestyles. Planners say they use too much energy, emit too much carbon, and gobble up too much land, all for things they’ve been duped into believing they want.

    It’s an elitist diagnosis, and Wichita’s buying it. Well, we’ve already paid for it, but we can stop the harmful planning process before it’s too late.

    Consider the attitudes of Goody Clancy, the Boston planning firm the city hired to lead us through the process. At a presentation in January, some speakers from Goody Clancy revealed condescending attitudes towards those who hold values different from this group of planners. One presenter said “Outside of Manhattan and Chicago, the traditional family household generally looks for a single family detached house with yard, where they think their kids might play, and they never do.”

    David Dixon, the Goody Clancy principal for this project, revealed his elitist world view when he told how that in the future, Wichitans will be able to “enjoy the kind of social and cultural richness” that is only found at the core. “Have dinner someplace, pass a cool shop, go to a great national music act at the arena, and then go to a bar, and if we’re lucky, stumble home.”

    These attitudes reflect those of most of the planning profession — that people can’t be relied on to choose what’s best for them. Instead they believe that only they — like the planners at Goody Clancy — are equipped to make choices for people. It’s an elitism that Wichita ought to reject.

    Besides this, many of the assumptions that planners rely on are wrong, like the purported demographic shifts planners rely on. Consider the recent article Urban Legends: Why Suburbs, Not Dense Cities, are the Future by journalist and geographer Joel Kotkin. While Kotkin’s article focuses a lot on mega-cities like Mumbai and Mexico City, there’s a lot to be learned by smaller cities like Wichita.

    One of the issues Kotkin addresses is the effort of cities to appeal to the “creative class.” This is a hot issue in Wichita, where it is thought that we can’t attract young urbanites and their energy and upward economic mobility. Therefore, we must invest in arts, culture, and “hipness.” Kotkin responds:

    The hipper the city, the mantra goes, the richer and more successful it will be — and a number of declining American industrial hubs have tried to rebrand themselves as “creative class” hot spots accordingly. But this argument, or at least many applications of it, gets things backward. Arts and culture generally do not fuel economic growth by themselves; rather, economic growth tends to create the preconditions for their development. … Sadly, cities desperate to reverse their slides have been quick to buy into the simplistic idea that by merely branding themselves “creative” they can renew their dying economies; think of Cleveland’s Rock and Roll Hall of Fame, Michigan’s bid to market Detroit as a “cool city.” … Culture, media, and other “creative” industries, important as they are for a city’s continued prosperity, simply do not spark an economy on their own. It turns out to be the comparatively boring, old-fashioned industries, such as trade in goods, manufacturing, energy, and agriculture, that drive the world’s fastest-rising cities.”

    The things the Wichita plan is designed to foster: increased density, increased real estate values, decreased use of the automobile, and prescription by cultural elites of what may be built in which locations — these things drive away many people, Kotkin says: “Nor is the much-vaunted ‘urban core’ the only game in town. Innovators of all kinds seek to avoid the high property prices, overcrowding, and often harsh anti-business climates of the city center.”

    The sprawl and the alleged unsustainable lifestyle of the suburbs that elites like the Goody Clancy planners clearly disdain — here’s what Kotkin says: “Consider the environment. We tend to associate suburbia with carbon dioxide-producing sprawl and urban areas with sustainability and green living. But though it’s true that urban residents use less gas to get to work than their suburban or rural counterparts, when it comes to overall energy use the picture gets more complicated.” He cites examples in the article.

    But the planning process might not be all bad, Kotkin concedes, noting that “To their credit, talented new urbanists have had moderate success in turning smaller cities like Chattanooga and Hamburg into marginally more pleasant places to live.” Chattanooga is one place that Wichita planners and their acolytes have visited recently.

  • Downtown Wichita demographics not favorable

    “Uber-geographer” Joel Kotkin wrote in the Wall Street Journal recently: “Pundits, planners and urban visionaries — citing everything from changing demographics, soaring energy prices, the rise of the so-called ‘creative class,’ and the need to battle global warming — have been predicting for years that America’s love affair with the suburbs will soon be over.”

    As Wichita considers adoption of the plan for the revitalization of its downtown, urban planners — both local and out-of-town — tell us that there’s a big demand for downtown living. People are tired of suburban living, they say. Presentations by the city’s planning firm Goody Clancy have contained bullet points like “who favor living and working in vibrant downtowns” and “and they are part of broad demographic trends that are much more ‘downtown friendly’ …e.g., almost two-thirds of Wichita’s households include just one or two people.”

    This purported shift from suburban to urban lifestyles is one of the primary underlying memes for the downtown Wichita planners. Is this shift in preference real?

    Not according to Kotkin: “But the great migration back to the city hasn’t occurred.”

    Kotkin cites some figures showing the decline in the market for downtown condos in a few cities, and concludes “Behind the condo bust is a simple error: people’s stated preferences.” He shows some figures that support his contention that “Demographic trends, including an oft-predicted tsunami of Baby Boom ’empty nesters’ to urban cores, have been misread.”

    These demographic trends are behind the analysis that Goody Clancy uses to promote its vision for downtown Wichita. Kotkin’s research ought to give us concern that downtown visionaries are leading Wichita down a path that really isn’t there.

    Kotkin issues a note of caution for urban planners: “The condo bust should provide a cautionary tale for developers, planners and the urban political class, particularly those political ‘progressives’ who favor using regulatory and fiscal tools to promote urban densification. It is simply delusional to try forcing a market beyond proven demand.”

    What does this mean for Wichita? Wichita’s planners and leaders are promoting a light-handed approach to downtown development, saying, for example, that public financing will be only for public purposes. But Wichita has a history of heavy-handed interventionism using economic development tools of all types. They wish for more. And as the mayor said at a council meeting earlier this year, he’s recently learned of new types of incentive programs that other cities are using. Other council members and some city staff believe that Wichita doesn’t have enough “tools in the toolbox” for shoveling incentives on companies for economic development purposes.

    So I think Wichita’s leaders definitely will use the “regulatory and fiscal tools” that Kotkin warns of. It’s only without government intervention that we’ll know whether Wichitans really prefer suburban, downtown, or other forms of living. Urban planners and city hall bureaucrats can’t tell us that.

    The Myth of the Back-to-the-City Migration

    The condo bust should lay to rest the notion that the American love affair with suburbia is over.

    Pundits, planners and urban visionaries—citing everything from changing demographics, soaring energy prices, the rise of the so-called “creative class,” and the need to battle global warming—have been predicting for years that America’s love affair with the suburbs will soon be over. Their voices have grown louder since the onset of the housing crisis. Suburban neighborhoods, as the Atlantic magazine put it in March 2008, would morph into “the new slums” as people trek back to dense urban spaces.

    But the great migration back to the city hasn’t occurred. Over the past decade the percentage of Americans living in suburbs and single-family homes has increased. Meanwhile, demographer Wendell Cox’s analysis of census figures show that a much-celebrated rise in the percentage of multifamily housing peaked at 40% of all new housing permits in 2008, and it has since fallen to below 20% of the total, slightly lower than in 2000.

    Continue reading at the Wall Street Journal (subscription required) or at Kotkin’s website.

  • At Wichita planning commission, downtown plan approved

    At last week’s meeting of the Wichita Metropolitan Area Planning Commission, members were asked to approve the Goody Clancy plan for the revitalization of downtown Wichita. I appeared to make sure that commissioners were aware of some of the highly dubious data on which the plan is based.

    Listen to my remarks to the planning commission.
    [powerpress]

    In particular, I presented to the commission the Walk Score data for downtown Wichita, and how Goody Clancy relied on this obviously meaningless data in developing plans for downtown Wichita.

    Walk Score is purported to represent a measure of walkability of a location in a city. Walkability is a key design element of the mster plan Goody Clancy has developed for downtown Wichita. In January, David Dixon, who leads Goody Clancy’s Planning and Urban Design division, used Walk Score in a presentation delivered in Wichita.

    Walk Score is not a project of Goody Clancy, as far as I know, and David Dixon is not responsible for the accuracy or reliability of the Walk Score website. But he presented it and relied on it as an example of the data-driven approach that Goody Clancy takes.

    Walk Score data for downtown Wichita, as presented by planning firm Goody ClancyWalk Score data for downtown Wichita, as presented by planning firm Goody Clancy. Click for a larger view.

    The score for 525 E. Douglas, the block the Eaton Hotel is in and mentioned by Dixon as a walkable area, scored 91, which means it is a “walker’s paradise,” according to the Walk Score website.

    But here’s where we can start to see just how bad the data used to develop these scores is. For a grocery store — an important component of walkability — the website indicates indicates a grocery store just 0.19 miles away. It’s “Pepsi Bottling Group,” located on Broadway between Douglas and First Streets. Those familiar with the area know there is no grocery store there, only office buildings. The claim of a grocery store here is false.

    There were other claimed amenities where the data is just as bad. But as Larry Weber, chairman of the Wichita Downtown Development Corporation told me a while back, Walk Score has been updated. I should no longer be concerned with the credibility of this data, he told me through a comment left on this website.

    He’s correct. Walk Score has been updated, but we should still be concerned about the quality of the data. Now for the same location the walk score is 85, which is considered “very walkable.” The “grocery store” is no longer the Pepsi Bottling Group. It’s now “Market Place,” whose address is given as 155 N. Market St # 220.

    If Mr. Weber would ever happen to stroll by that location, he’d find that address, 155 N. Market number 220, is the management office for an office building whose name is Market Place.

    It’s not a grocery store. It’s nothing resembling a grocery store. Now I’m even more concerned about the credibility of this data and the fact that Goody Clancy relied on it. I’m further concerned that Weber thinks this is an improvement, and that he feels I should not be concerned.

    As I reminded the commission members, David Dixon and other Goody Clancy staff did not create the Walk Score data. But they presented it to Wichitans as an example of the data-driven, market-oriented approach to planning that they use. Dixon cited Walk Score data as the basis for higher real estate values based on the walkability of the area and its surrounding amenities.

    But anyone who relies on the evidence Dixon and Goody Clancy presented would surely get burnt unless they investigated the area on their own.

    And since this January reliance on Walk Score was made after Goody Clancy had spent considerable time in Wichita, the fact that someone there could not immediately recognize how utterly bogus the data is — that should give us cause for concern that the entire planning process is based on similar shoddy data and analysis.

    A member of the planning commission asked that Scott Knebel, a member of the city’s planning staff who is the city’s point man on downtown planning, address the concerns raised by me.

    Knebel said “In terms of the Walk Score, I suspect Mr. Weeks is absolutely right, it probably is a relatively flawed measurement of Walk Score.” He added that the measurement is probably flawed everywhere, downtown and elsewhere. He said that Goody Clancy used it “as an illustration of the importance of walkability in an urban area.” He added, correctly, that Goody Clancy tied it to premiums in real estate values in areas that are mixed use and walkable.

    In the end, all commission members voted in favor of accepting the plan. The Wichita City Council is scheduled to hear this matter on December 14th.

  • Good intentions, and planners, can sap a city’s soul

    The following article by Kansas City writer Jack Cashill, courtesy of Ingram’s Magazine, explains some of the problems with city planning of the type Wichita is undertaking at this time.

    There are two connections to Wichita in this article. The first connection is the Power & Light District in downtown Kansas City, a meticulously planned — and heavily subsidized — redevelopment that has been mentioned by Wichita Mayor Carl Brewer as a model for Wichita. It’s also been featured heavily on the city’s television channel.

    The second connection to Wichita is Cashill’s description of Louisville. That city is the hometown of Wichita Downtown Development Corporation President Jeff Fluhr, not that this fact means anything substantive regarding public policy. But Louisville was one of four cities praised in a case study that is part of a Wichita-produced document that makes the case for downtown revitalization. Also, Visioneering Wichita has a trip to Louisville planned for October.

    I recently spent some back-to-back time in two cities, one run by merchants and one run by planners. The difference between the two is that the planners’ city, a veritable clone of Kansas City, does not work. The merchants’ city does.

    Since 1955, my family has been spending a chunk of every summer in and around the wonderfully vulgar New Jersey burg called Seaside Heights.

    “Vulgar” has several basic meanings. In this case, all of them are apt, and none is necessarily bad. One is “deficient in taste, delicacy, or refinement,” and that certainly fits. So too, in spades, does “offensively excessive in self-display.” It is the third and original definition — “associated with the great masses of people” — that makes the other two come to life in so fruitful a way. Yes, at Seaside, great masses of indelicate people wander about in excessive self-display, but, writ large, it is all glorious to behold.

    If the natives are excessive, it is because they can be. An ethnic hotbed since its inception, Seaside Heights educates international visitors in one visual sweep on the difference between their working classes and ours. If theirs shuffle, heads down, ours strut, swagger even, heads up, plumage on full display. Ours believe in themselves and their futures.

    It was not without calculation that MTV chose Seaside Heights as the locale for its improbable hit, “Jersey Shore,” a show that captures the larger gaudiness of the place and distills it to its truly vulgar essence. Vulgar or not, when my brother-in-law and I spotted two cast members on the beach, we were the envy of every female in our 50-member family compound, almost all of whom have college degrees. Vulgarity sells.

    Seaside Heights works in ways that most cities don’t. Each summer evening, its main thoroughfare, the boardwalk, is jammed from end to end with throngs of people of all ages and stripes spending goo-gobs of money at miscellaneous shops, many of which have no parallel in the free world.

    On the mile-long commercial stretch of the boardwalk, there is not a single vacancy. I don’t remember there ever being one. The Seaside chamber boasts, only a little bit grandly, of thrill rides, a water park, fun-filled amusements, action-packed arcades, Ferris wheels, merry-go-rounds, an overhead chair lift, ski-ball, frog bog, squirt-gun games, balloon darts, ring toss, mini golf, go-karts, old-time photo shops, tattoo parlors, trendy boutiques, massage parlors, bars, discos, numerous Italian restaurants, pizza shops, Philly cheesesteak restaurants, a Mexican Cantina, an Irish Pub, frozen custard and soft-serve ice cream shops, saltwater taffy and fudge shops, a new bakery, and, of course, shops that serve “Seaside Heights staples like the Fried Oreo.”

    Of the above services, how many can you find in the Power & Light District? City planners would hock their first-born to create this kind of pedestrian traffic, but they don’t know how. They can no more plan “fun” than they could anticipate a popular demand for a fried Oreo. This hodgepodge of stuff was driven by the consumers as gauged and tweaked by savvy, on-site merchants over decades.

    Seaside represents America’s money culture at work. There is no public transportation anywhere near the town. There is not a single sign on the boardwalk in any language other than English. There is nothing even resembling a dress code. There is no convention center, no hotels, no buildings higher than three or four stories, no parking garages, no subsidies, no strip clubs, no “adult” book stores. Nothing is free, including the beach. And yet each weekend, 100,000 or so people speaking a dozen or so different languages find their way to the boardwalk.

    After a week at Seaside, I flew out of Newark to Louisville, a city I had not yet visited. To round out my New Jersey experience, I sat across from Dominic Chianese, a.k.a. Junior Soprano, on the little express jet. I struck up a conversation, never letting on that I knew who he was. I am sure I had him fooled.

    I arrived on a Sunday evening for a conference at the convention center. Had I not known any better, I would have thought the plane had been diverted to KC’s Power & Light District. Other than the occasional horse statue, there was nothing remotely indigenous about Louisville’s downtown. It had all the stultifying cookie-cutter charm of a place that had been planned and heavily subsidized precisely for the benefit of ungrateful visitors like me.

    My hotel was nice enough, but aren’t all hotels? On Sunday eve, my little group and I wandered up Fourth Street to the city’s entertainment district. I passed a Border’s, a Panera’s, an Einstein Brothers, and a Hard Rock Café. The street was blocked off, and a rock band was playing loudly and badly in the created space. The only problem was that there was little foot traffic and even less audience.

    We ducked into an elaborately fake British pub. To say the least, there was no wait. Our waitress was tarted up to look like Twiggie, but happily, her inner cracker showed through. She was delightful even when botching our order. “Y’all wanted a shepherd’s pie?” My younger comrades wanted to hit the Hard Rock Café next, but I ducked out to watch the season premiere of Mad Men. I had watched not a minute of TV at Seaside.

    There was a time, not that many years ago, when Kansas City competed against the likes of Chicago and Denver and Atlanta. Today, we compete — often unsuccessfully — with Louisville. The reason Louisville can compete with us is because we have become Louisville and Louisville has become us.

    We have taxed our distinctive merchant-driven centers like the Country Club Plaza and Westport — and cannibalized their customer base — to subsidize a soulless, planner-driven Downtown.

    Only four years after its creation, city officials now project that the allegedly self-sustaining Power & Light District will require long-term life support to the tune of $10 million to $15 million in an annual cash subsidy.

    It may be time to scrap all plans, exile all the planners and embrace the fried Oreo.

    The link to the original article is Good Intentions, and Planners, Can Sap a City’s Soul.

  • Wichita downtown boom could be over before it starts

    As Wichita moves towards the release of the plan for the revitalization of its downtown, urban planners — both local and out-of-town — tell us that there’s a big demand for downtown living. People are tired of suburban living, they say. The recent draft presentation by the city’s planning firm Goody Clancy contained bullet points like “who favor living and working in vibrant downtowns” and “and they are part of broad demographic trends that are much more ‘downtown friendly’ …e.g., almost two-thirds of Wichita’s households include just one or two people.”

    Or, as “uber-geographer” Joel Kotkin wrote in the Wall Street Journal this week: “Pundits, planners and urban visionaries — citing everything from changing demographics, soaring energy prices, the rise of the so-called ‘creative class,’ and the need to battle global warming — have been predicting for years that America’s love affair with the suburbs will soon be over.”

    But as Kotkin later writes: “But the great migration back to the city hasn’t occurred.”

    Kotkin cites some figures showing the decline in the market for downtown condos in a few cities, and concludes “Behind the condo bust is a simple error: people’s stated preferences.” He shows some figures that support his contention that “Demographic trends, including an oft-predicted tsunami of Baby Boom ’empty nesters’ to urban cores, have been misread.”

    These demographic trends are behind the analysis that Goody Clancy uses to promote its vision for downtown Wichita. Kotkin’s research ought to give us concern that downtown visionaries are leading Wichita down a path that really isn’t there.

    Kotkin issues a note of caution for urban planners: “The condo bust should provide a cautionary tale for developers, planners and the urban political class, particularly those political ‘progressives’ who favor using regulatory and fiscal tools to promote urban densification. It is simply delusional to try forcing a market beyond proven demand.”

    What does this mean for Wichita? Wichita’s planners and leaders are promoting a light-handed approach to downtown development, saying, for example, that public financing will be only for public purposes. But Wichita has a history of heavy-handed interventionism in markets, using economic development tools of all types. And as the mayor recently said at a council meeting, he’s recently learned of new types of incentive programs that other cities are using.

    So I think Wichita’s leaders definitely will use the “regulatory and fiscal tools” that Kotkin warns of. It’s only without government intervention that we’ll know whether Wichitans really prefer suburban, downtown, or other forms of living. Urban planners and city hall bureaucrats can’t tell us that.

    The Myth of the Back-to-the-City Migration

    The condo bust should lay to rest the notion that the American love affair with suburbia is over.

    Pundits, planners and urban visionaries—citing everything from changing demographics, soaring energy prices, the rise of the so-called “creative class,” and the need to battle global warming—have been predicting for years that America’s love affair with the suburbs will soon be over. Their voices have grown louder since the onset of the housing crisis. Suburban neighborhoods, as the Atlantic magazine put it in March 2008, would morph into “the new slums” as people trek back to dense urban spaces.

    But the great migration back to the city hasn’t occurred. Over the past decade the percentage of Americans living in suburbs and single-family homes has increased. Meanwhile, demographer Wendell Cox’s analysis of census figures show that a much-celebrated rise in the percentage of multifamily housing peaked at 40% of all new housing permits in 2008, and it has since fallen to below 20% of the total, slightly lower than in 2000.

    Continue reading at the Wall Street Journal (subscription required) or at Kotkin’s website.

  • Wichita downtown master plan meetings scheduled

    Recently planning firm Goody Clancy presented the master plan for the revitalization of downtown Wichita. This plan is in “draft” form, meaning that input is being solicited, with revisions appearing in the final version expected to be ready in September.

    In order that citizens may become familiar with the draft plan, the Wichita Downtown Development Corporation, the City of Wichita, and Visioneering Wichita will present the plan at a series of community meetings. The schedule is:

    July 7: Atwater Neighborhood City Hall (2755 E. 19th St. N.)
    July 8: Evergreen Library (2601 N. Arkansas)
    July 12: Haysville Public Library (210 S. Hays)
    July 13: Bel Aire City Hall (7651 E. Central Park Ave.)
    July 14: Derby City Hall (611 Mulberry)
    July 19: 1st United Methodist Church (330 N. Broadway) Meredith Room
    July 20: WSU Metroplex (5015 E. 29th St. N.) Entrance C
    July 21: Sedgwick County Extension (7001 W. 21st St.)

    All meetings begin at 7:00 pm.

  • Goody Clancy: public subsidy required for Wichita downtown plan

    The recent presentation of the draft master plan for the revitalization of downtown Wichita gave Wichitans a preview of the forms of public assistance that Goody Clancy recommends the city use. The plan may be viewed at the Wichita Downtown Development Corporation website.

    It is a given, according to Goody Clancy, that downtown development will require public subsidy. Here’s an example as to why it is necessary: One of the issues with downtown development, especially in Wichita according to Goody Clancy, is “land acquisition & land lease issues.” It is contended that land ownership is fragmented, and assembling parcels for development is difficult. Therefore, public assistance is required.

    The shakiness of this argument can be seen by examining recent events in Wichita. Earlier this year, a developer wanted to build a hotel in the downtown WaterWalk area. There are no land acquisition issues there. The city assembled that property — using eminent domain as a tool — some years ago. There is one owner. Yet, the hotel still required massive subsidy to make it economically feasible, according to the developer and Wichita city staff.

    In a Wednesday morning workshop on the issue of public funding, a Goody Clancy consultant hinted at a legislative solution to the land acquisition problem. No more details were given, but solutions to problems like this usually involve the use of eminent domain.

    Public assistance is proposed to be used only for those items that have a public purpose. The primary use is likely to be public parking. According to the logic of Goody Clancy consultants, if public funds pay for a parking garage located between an apartment building and an office building, that really doesn’t benefit just those two properties. Instead, it benefits everyone. It’s a public amenity. It’s infrastructure.

    Nevermind that anywhere but downtown, people have to pay for their own parking. Homeowners build garages and driveways at their own expense. Developers build parking lots on their own.

    While “structured parking” — that’s planner-speak for multi-story parking garages — is more expensive to build per parking spot than surface lots, that’s no reason for the public to pay.

    The forms of public assistance mentioned as available for use include, at the state and national level: historic preservation tax credits, low income housing tax credits, new market tax credits, STAR bonds, brownfield grants, livable city grants, and transportation funds.

    At the local level, programs mentioned include capital investment, tax increment financing (TIF), community improvement districts (CID), facade loans/grants, low interest loan pools, and land.

    The last item refers to the fact that Goody Clancy considers it an advantage that the City of Wichita owns a lot of land downtown, as it can control the timing and features of development.

    Missing from this list is any mention of a direct tax to fund downtown redevelopment. But downtown leaders admire the city sales tax used to fund development in downtown Oklahoma City, and some have privately told me that a sales tax would be good for downtown Wichita. I expect to see a sales tax proposed in Wichita, as I don’t believe there is enough funding available through the sources mentioned above to do all that downtown boosters will want to do.

    Supporters of a sales tax for downtown subsidies will use the Intrust Bank Arena as an example of a successful project funded through a sales tax. They’ll say, as did Kansas Governor Mark Parkinson this year, that people didn’t even notice the one cent per dollar sales tax. It’s harmless, they will contend, despite evidence to the contrary. Not to mention that pronouncement of the arena as a sustainable success story is premature.

    Goody Clancy proposes that projects qualify for public assistance through a point system, which is reported on in a Wichita Business Journal article. By meeting established criteria, developers would earn — or not earn — points. Earning a certain level of points would be necessary for the city to consider the application for public assistance, and the number of points earned would help the city justify pouring public assistance into a project. Presumably the point system could help the city rank and prioritize projects that are competing for limited funds.

    Further considerations the city would use in deciding which projects to subsidize include, according to the presentation: team experience, financial qualifications, references, project economics, and public/private leverage ratio.

    The problem is that any point system the city would use would be a system that meets political criteria, not market criteria. We must realize that the incentives and motivations of politicians and city hall bureaucrats are very different from the incentives and constraints that control behavior in markets. As Gene Callahan explains:

    The Public Choice School has pointed out another force … Strong incentives exist for politicians to favor special-interest groups at the expense of the general public. Those upon whom benefits are concentrated are motivated to campaign hard for those benefits.

    Specifically, for downtown redevelopment to be successful, we need to have development that is profitable for the private sector, considering all costs. By subsidizing certain developers according to political criteria the city ignores and distorts the dictates of markets, and capital is misapplied. People make decisions for wrong reasons using incorrect information.

    While some city council members openly speak of the “free market” with disdain and other members pay it lip service only, we must remember that the free market consists of, in Wichita’s case, hundreds of thousands of consumers making decisions every day about where they want to live, work, and play. These decisions are made based on the individual preferences of each person, supplemented by the information the price system supplies.

    The price system is the best way we have to communicate the relative value of things. Hayek explains its importance:

    Fundamentally, in a system in which the knowledge of the relevant facts is dispersed among many people, prices can act to coordinate the separate actions of different people in the same way as subjective values help the individual to coordinate the parts of his plan.

    The price system is a wonderful, almost miraculous system that, as Hayek writes, coordinates the actions of millions. It allows for the process of economic calculation which is at the heart of capitalism. The lack of economic calculation based on a price system is the reason why socialism fails everywhere it is tried. Callahan summarizes what Mises showed the world:

    Mises showed that socialism is incapable of achieving an efficient use of society’s resources, because its economic planners have no means by which to perform economic calculation.

    The point system that Goody Clancy proposes to dish out subsidy is a bypass of the price system and economic calculation. It substitutes the judgment of central planners for free people coordinating activities through the price system. Wichitans should reject this idea.

  • Wichita open records intent not what it seems

    At Tuesday’s meeting Wichita City Council, the city may take action that appears to advance the goal of making more information about government available to citizens. The proposed action, however, simply acknowledges intent to comply with one provision of the Kansas Open Records Act (KORA). The city still avoids full compliance with this law.

    The issue at hand is renewal of the city’s contract with the Wichita Downtown Development Corporation. This agency, while structured as a non-profit corporation, is in effect a branch of Wichita city government. Its sole source of funds is property tax, except for some private fund-raising done last year for a specific purpose.

    It’s important that citizens and journalists have complete access to all records that are considered open under the Kansas Open Records Act. An example of why this is important is the case of Mike Howerter, a trustee of Labette Community College in Parsons.

    As reported in the Kansas Watchdog story Labette Community College President reimbursed with tax dollars for political donation, Howerter noticed that a check number was missing from a register. Upon his inquiry, it was revealed that the missing check was used to reimburse the college president for a contribution to the campaign fund for Kansas Treasurer Dennis McKinney.

    While the college president committed no crime by making this political contribution using college funds, this is an example of the type of information that citizens may want regarding the way public funds are spent.

    The action the City of Wichita may take on Tuesday proposes that the WDDC make available a report that will not give citizens and journalists the information they need to do what Howerter did at Labette Community College. But the city will undoubtedly use this report to claim that it and the WDDC are in full compliance with the Kansas Open Records Act, thereby deflecting further records requests and scrutiny.

    It’s a smokescreen, in other words.

    Last fall I asked the WDDC and two other agencies with similar finances and relationships to the city for their check registers and employment contract for their chief executive. All three declined to comply with my request. Their reason was not that their check registers are not considered to be records that are open, but that the agencies are not public agencies as defined in the Kansas Open Records Act. See Wichita Downtown Development Corporation and City of Wichita refuse to follow Kansas Open Records Act for details.

    I have asked the Sedgwick County District Attorney to investigate the refusal of these agencies to comply with what I believe the Kansas Open Records Act says they must do. That office is still working on this case.

    At Tuesday’s city council meeting, I will ask that the city include language in the contract acknowledging that the WDDC is a public agency as defined in the Kansas Open Records Act.

    —-
    The language in the agenda report for Tuesday’s meeting is: “The WDDC contract amendment also provides the procedure for the WDDC to comply with new Kansas Open Records Act reporting requirements for not-for-profit entities receiving public funds.”

    The language in the proposed ordinance relating to the open records act is as follows: “3. KORA. Annually, on or before June 1, the Corporation will file with the City a written financial report for the preceding calendar year, detailing the receipt of public funds and the expenditure of such funds, in a form and format as the City and Corporation may reasonably agree and in the absence of a specified form, in the same format as the SSMID budget. It is the intention of the parties that this filing shall serve to make such report an open public record and to fill the requirements of K.S.A. 40-240.”

    I believe the statute number referred to in this proposed ordinance is a mistake, as K.S.A. 40-240 concerns insurance law. Instead, K.S.A. 45-240 is titled “Recordkeeping requirements for certain not-for-profit entities” and is, I believe, the correct statutory reference.