Kitsap Peninsula Business Journal
9-6-2002
Author debunks the myth of “Smart Growth”
   According to Randall O’Toole, senior economist with The Thoreau Institute, the concept of “Smart Growth” would be a good thing — if it worked.

O’Toole says defying the laws of supply and demand by trying to force people to live in small homes on small lots in urban areas has proven to do nothing more than drive up the cost of housing, create more traffic, and in the end does little more than create new urban slums.

“Smart Growth” is the latest buzzword used by urban planners who favor building tightly packed communities, such as Poulsbo Place, in areas where jobs and mass transit are nearby. Commissioner Tim Botkin has promoted the concept heavily in Kitsap County. However, exactly “what” “Smart Growth” actually is has yet to be clearly defined.

O’Toole recently preached his brand of gospel to an audience made up largely, but not completely, of believers — people critical of growth management in general, our state’s Growth Management Act (GMA) in particular, and zoning the way it’s practiced in most communities — and especially Kitsap County. His talk, which was open to the general public, was sponsored by the Kitsap Alliance of Property Owners (KAPO); a group that is generally at odds with the county over the way it manages growth.

O’Toole, author of the book, The Vanishing Automobile and Other Urban Myths, believes market-driven solutions make for much better planning. He cites his hometown of Portland, Ore., considered by some to be a model of urban planning, as just the opposite. O’Toole points out — unarguably — that as Portland has severely limited its urban growth, housing costs have skyrocketed and affordable housing is now nothing more than a faded memory.

The law of supply and demand has also put Portland commercial property in the same fix, with it selling and renting for much more than premium prices, which has stifled business growth and job creation.

Meanwhile adjacent Vancouver, Wash., once the fastest growing community economically in our state, has drawn Portland people in droves, “…because it’s outside the clutches of Oregon and people can afford to buy a home with a back yard, in Vancouver,” according to O’Toole.

However, since Clark County is handcuffed by the GMA and can’t grow at a pace to keep up with the demand, Vancouver is rapidly losing its affordability as well.

In contrast, he points out that Las Vegas is growing outward at a rate three times faster than Portland, but that housing is still extremely affordable.

Business growth there has also exploded and brand new, 1,200 to 1,500 square foot homes in many communities are selling for around $100,000, with some under that figure. The average price of a home in Kitsap County exceeds $165,000 — without Bainbridge Island factored in. Adding Bainbridge to the equation pushes the average price to more than $200,000 — twice what it costs in Las Vegas.

O’Toole noted that there are many couples without children and single people that actually do want the kind of urban housing “Smart Growth” favors, but that they want other options as well.

He also pointed out that it’s no coincidence that “Smart Growth” neighborhoods have some of the highest vacancy rates in the nation, while traffic congestion continues to grow near them because no matter where people live, they still drive to work.

In Portland, which a decade ago taxed it citizens billions for a light rail system, people still drive to their destinations — because in its dogged determination to get people out of their cars, Portland failed to build parking anywhere near the train stations because land costs were so high.

O’Toole pointed out that farmland within Portland’s urban growth boundaries is also rapidly disappearing — along with parks and other areas set aside specifically for open space — because it’s the only land left available that can legally be built on due to the fact the urban growth boundaries can’t be expanded.

He also went on to minimize the main concern about growth — protecting rural areas — challenging the notion by saying that what’s actually at risk is urban open space.

O’Toole passionately believes the solution lies in stopping the government from dictating people’s choices and allowing free market forces to prevail — something that resonated strongly with his audience.

He openly admitted it costs local governments more for people to live in rural areas, and suggested creating toll roads going there as well as charging people more during rush hour as a method of reducing traffic congestion, saying perhaps buses and carpools could travel free.

He was also adamant about getting rid of transportation monopolies like Kitsap Transit so private companies could compete with one another for riders. That way market forces could determine the cost of the fares and if taxpayers want to subsidize certain users, such as the elderly, they could.

He said the truth of the matter is that “Smart Growth” isn’t all that smart and benefits no one except those who don’t want to see any kind of growth.

He advocates doing away with government planning and zoning, pointing out it would save millions of taxpayer dollars. Instead he would prefer that neighborhoods plan their own futures based on the desires of local residents who could implement their decisions through covenants on property deeds and enforce the agreed upon rules through neighborhood associations.

“I trust my neighbors more than the bureaucrats miles away,” O’Toole said. Judging from the reaction of the crowd, they do too.