Sprawled Out: The Search for Community in the American Suburb

A Small Business Bailout--Maybe

From Entrepreneur Magazine:

For small-business owners who have run into financial trouble, a new Small Business Administration loan program offers relief. But the America's Recovery Capital (ARC) loan will only help businesses that meet certain strict criteria.

ARC was funded with $225 million to provide five-year, zero-interest loans of up to $35,000 per qualified business. To qualify, businesses must demonstrate that sales are down, expenses are up or they are having trouble paying current loans or suppliers. Owners also must provide two years of cash-flow projections and explain their game plan for returning to profitability.

The program is not for new startups--to qualify, you must have been in business at least two years, and profitable for at least one of the past two years.

The SBA is working on building support from banks, which get just 2 percent interest over prime and can't charge a fee. Many national banks that make other SBA loans declined to participate. After a slow first month with just $16.4 million in loans approved by mid-July, $96.5 million in ARC loans had been made by early October. The program runs until September, or until funds are exhausted.

Working with a participating community bank where you already do business is helpful, says Neal Gordon, principal at the loan-intermediary firm Business Borrowers Alliance. That worked for Jim Brunberg, owner of recording studio Mississippi Studios in Portland, Ore., which needed help paying a loan for an ill-timed expansion. Brunberg worked with Albina Community Bank in Portland, where Mississippi has accounts, and said his ARC loan process was a breeze.

Not so for Auburn, Ala.-based decor-store owners Ingrid and Frank Brown, who sought an ARC loan from a national bank in June after sales sank 30 percent. Ingrid Brown says the bank was making ARC loans mostly to existing loan customers and turned the pair down. They reapplied and were approved for only $13,300. They passed on it to apply to a community bank where their businesses, The Villager and Auburn Art.com, have accounts. They got $15,000 of the $45,000 they wanted.

"We still need money to buy merchandise for the holidays," she says.

In the same issue, From Entrepreneur Magazine identifies LOCAL BUSINESS as the 5th ranked hot trend for 2010:

Demand is exploding for locally grown and made products--which means more support for mom-and-pop stores. The dividend: For every $100 spent at a locally owned business, $68 comes back to the community. Only $43 recirculates from national chain stores.

The "buy local" ethos has its roots in the farmers markets movement: There are almost 5,000 farmers markets across the country, the result of more than 5 percent annual growth for the past five years, according to the Department of Agriculture. Nearly 60 percent of consumers say they try to shop at a farmers market. Wal-Mart and Safeway recently added "Locally Grown" sections to their produce departments, and the USDA launched a "Know Your Farmer, Know Your Food" marketing campaign.Programs that promote community shopping, like Buy Local Orlando, are also popping up all over the country. About 40,000 Orlando shoppers have participated since May. "We like to appear that we're not just consuming for the sake of consuming," says Don Boudreaux, an economics professor at George Mason University. "It makes us feel good to show that we're socially conscious." --K.O.

Read the rest at: A Small Business Bailout--Maybe and 2010 Trends

Movie theaters in corn fields and empty grocery store shells: Time for a more proactive Economic Development Council?

This is a four year-old picture, but nothing has changed. Located across from the Northwestern Mutual campus on 27th and Drexel; 1.200 employees headquartered across the street(!) couldn't keep a restaurant in business here.

Communities can be shaped by choice, or they can be shaped by chance. We can keep on accepting the kind of communities we get, or we can start creating the kind of communities we want.

— Richard Moe, National Trust for Historic Preservation

After enduring fairly alarming comments by fellow commissioners at Thursday's meeting, I'm compelled to prepare a presentation for the next gathering of the Economic Development Commission on how principles of Smart Growth drive economic development and sustainability.

Our discussion -- held with three members absent -- regarded possible incentives for developers wanting to build in Franklin. I am generally against subsidies; however, I brought up the idea of offering certain incentives in exchange for "placemaking" considerations by a potential builder or developer. Locating in the City Civic Center district, for instance, rather than out on the outskirts of town; adding neighborhood-access amenities; creating an innovative site plan; revitalizing an empty property; etc.

More than one of my fellow commissioners disagreed out of hand, riffing on the "Business will tell you where it wants to go" mantra. In other words, Let the chips fall where they may; let developers build where and how they see fit.

And how's that worked for us so far?

Well, Franklin's unofficial motto remains "there's no 'there' there." So much for a "sense of place."

The city budget shortfall, strained by the demands of sprawled infrastructure, requires service cut after service cut - including possible public safety cutbacks.

We have a newish movie theater complex built out in the middle of a cornfield in proximity to... nothing. Go catch a flick - then get back in your car.

The city is dotted with roads that end with no rhyme or reason. "We're waiting for a developer to eventually ..."

We've allowed a regionally-owned grocer (Wyndham Village Sendik's) to be driven out of business in under a year.

There is no "support local businesses" initiative in place.

The former Sentry grocery store, a huge building, is vacant. Walgreens next door is threatening to tear it down to facilitate a drive-thru window.

Children who live less than the length of a football field away from Pleasant View Elementary have to take a bus to a building they can see from their back yard. The school is nearly 50 years old, and the problem has yet to be solved.

Franklin is home to a single coffee shop, Moondance (with great food, by the way), which is unfortunately located on 27th street rather than "inside" the city.

Franklin's single "inside the city" local coffee shop and meeting space, 5-Star, remains vacant next to an also-vacant martini bar in a brand new building.

The "City Civic Center" is devoid of any manner of "third place" development that would augment and invigorate the Public Library and/or spur further investment there. (I had to actually debate my fellow commissioners in order to simply pass a motion, at the mayor's request, recommending that the city consider a vacant site next to the library for a coffee shop/co-working facility concept I'd advocated. Even though the concept originated in the EDC (via me), there was still one "nay" vote and an attempt by a commissioner to add a superfluous "spend no money on this" amendment to a mere recommendation to the council motion!)

And on and on ...

The simple truth regarding "business will tell you where it wants to go" is that any land a developer happens to own or have access to is always the best place to build, as far as the developer is concerned (see Shoppes at Wyndham Village). The developer then hires a site consultant to work backwards from the fait accompli. 

That's why we have a movie theater in the middle of a corn field, and why we had two Sendik's grocery stores within spitting distance of each other.

And why, in Franklin, we have none of the multi-use public space amenities and "third places" that are on the wish lists of home buyers and businesses looking to take root.

In their well-regarded book on local economic development, Planning Local Economic Development: Theory and Practice, authors Edward Blakely and Ted Bradshaw note that “industry and business regard livability as an important locational factor.” and that local governments need to “identify their quality of life attributes, build on them and effectively promote them to the business community.” *

That means "incentivising" developers to think outside their strip-mall comfort zone (again, see Shoppes at Wyndham Village) so they'll work with the city to create inspiring, interconnected places and spaces that will, in turn, attract further investment. That's how you strengthen the tax base and lower your citizens' property taxes.

The current economy places great value, for instance, on proximity and clustering. Placing jobs, homes, shops and recreation in walkable proximity increases business opportunities, helps create a much-needed sense of place, and can attract talented workers.*

Failing to invest in acknowledged quality of life attributes like walkability and placemaking can have dire consequences for a local, state or regional economy. In 2003, for example, the Brookings Institution found that Pennsylvania’s land development practices -- which, like Franklin's, had the effect of decentralizing growth and ignoring community-building -- contributed to the state’s loss of young people and its subsequent job and wage stagnation.*

The laissez-faire approach has been tried, and it failed. Time to be proactive.

* [See http://www.iedconline.org/ for the report, Economic Development and Smart Growth]

Rise of the Aerotropolis?

This past Thursday's Economic Development Commission meeting - a fairly frustrating experience; more on that later - featured a presentation by Tom Rave, executive Director of Gateway Milwaukee, on the AEROTROPOLIS concept. As the topic wasn't included on our agenda (i.e. we could do no advance research), I was taken by surprise as I heard described what is essentially a giant FedEx-based city plan that radiates outward from the airport.

John Kasarda [creator of the "aerotropolis" concept] obviously sees the aerotropolis as key to America's competitive agility, and a critical one at that. Implicit in his thinking is a coming world of exponential population increase and cutthroat competition for resources and profits. His vision may evoke everything Americans find terrifying about globalization--a civilization cast in quick-drying cement, packed with worker drones--but if you grant Kasarda's seemingly implacable logic, you have to ask: How willing or able are we to adapt?

Aerotropolis?

Read the rest at: Rise of the Aerotropolis | Fast Company

Alex Marshall: "Community--the network of formal and informal relationships that binds people together--is a thin, tepid brew in this country."

"Downtown" Franklin, Wisconsin.

An excerpt from HOW CITIES WORK: SUBURBS, SPRAWL, AND THE ROADS NOT TAKEN by Alex Marshall. See if you agree (more excerpts here):

Coming Home

It's a Saturday night and my house is filling with people. Some carry musical instruments. Some have sheets of poetry or fiction by their sides. Some carry nothing, but are prepared to stand up before a crowd of people and dance, perform theater, or tell a story.

We call it the Coffeehouse. We've been doing it now for seven years. The first Saturday of every month, friends and friends of friends come to our house to entertain and be entertained. Usually about fifty people show up. It's a great time.

This coffeehouse is the highlight of the month, both for me and many of the people who attend. It's not just the music, poetry, and other acts that bring people back, although these are good. It's the chance to meet, connect, and talk with other people during the breaks. Through it, my wife and I have met many of our now good friends, and other people have made similar friendships and bonds. In a city where people come and go, it provides us a mechanism to make new friends as older ones leave town.

Why do I mention it? Because our coffeehouse is a replacement for what does not exist in the outer world. And the fact that it does not exist says a lot about our society at this stage in its history. I would prefer that a corner tavern or bar be down the street, where I could magically meet my friends and make new ones. I would prefer to be held up in a naturally emerging web of friends and family, growing out of the physical place where I live and the work that goes on there.

Our situation is ironic, because if anyone should have community "naturally," it's my wife and I. We live in Norfolk, Virginia, a port city on the Elizabeth River, the Chesapeake Bay, and the Atlantic Ocean. Huge carriers make their home here, as do huge cargo ships that freight millions of tons of coal all over the world.

It's been the home of my family on my father's side for five generations. My great-grandfather came here before the Civil War. He was the first publisher of the newspaper where I started my career in journalism, The Virginian-Pilot. My father grew up one block from where I write this. My wife is a native of the area as well. My newest niece lives down the street.

Looking at my background, one might think that I live a life rich in contacts with the past and the world that molded me, a place where an intricate and perhaps suffocating web of family and friends who have centuries of combined experience support, argue with, and love each other. Which is not the case. I have no close friends from my childhood or high school years that still live in this town, or even the state. Most of my siblings have scattered themselves around the country, as is the wont of professional people these days. Various relatives--second cousins once removed and so forth--do live near me. I know none of them well. As one commentator remarked about Europeans in contrast to Americans, "They still have cousins." Americans do not.

Various forces operating in the country and world today have pulled apart my "natural" community and scattered it to the winds. My own more cosmopolitan bent figures into this. I lived in Europe for a few years, attended college and graduate school in Pittsburgh and New York City. I am not able, nor do I desire, to sink back into the old-boy culture that does still exist here to a degree. I have a community around me, but it is one that I created or sought out, more than one I was born into. My community is in my coffeehouse, in the arts organizations I belong to, and in the civic work I do.

Community--the network of formal and informal relationships that binds people together--is a thin, tepid brew in this country. It has declined to the point where improving it, saving it, nurturing it have become slogans of a variety of movements in different, seemingly unrelated fields. In urban planning, New Urbanism promises to revive community through building subdivisions more cohesively. In political theory, Amiti Etzioni hopes to reduce crime and improve social health through his philosophy of Communitarianism. In journalism, the philosophy of Public Journalism, sometimes labeled Community Journalism, promises to rebuild community and a newspaper's circulation base by having the press foster public dialogue and political participation. Our politics, our places, our press--all of these things run across power lines that jolt us with the message that something is missing in too many of our lives, some sense of cohesion and togetherness.

This desire many people have for richer, more connected lives is a valid one. I believe that a society grows out of its social, religious, and political compacts, on which ultimately even market relationships depend. But like the construction of coherent physical places, the construction of coherent communities is not something to be attempted directly. Rather, one has to understand what produces both places and communities, and what weakens them, and address those forces.

Most of what we call community in the past has been produced as a byproduct of other things: making a living, shopping for food, keeping ourselves and our families well, protecting them and our society from physical harm, educating them. We shopped for groceries, served in the military, and went to a doctor and along the way got to know the butcher, the fellow soldier, and the local doctor. All of these actions have become less communal, and so our society has become less community-minded. We buy our food at the warehouse-style supermarket, do not serve in the military unless we volunteer, and go to the impersonal HMO to get our cholesterol checked. If we want to revive community, then we should look at the trade-offs involved in making some of our decisions more communal again.

Place has something to do with all this as well. Walking to a neighborhood cafe for breakfast is a more communal thing than using the drive-through at a McDonald's for an Egg McMuffin, although relationships can occur at either place. Driving on the freeway is less likely to generate relationships than riding a streetcar. Living in an older neighborhood fashioned around the foot is more communal than living in a contemporary one fashioned around the car. But the physical makeup of our places is just one factor in this trend.

John Perry Barlow, computer sage and former Grateful Dead lyricist, commented once that community is largely generated by shared adversity. This gets at the notion, true I believe, that our social ties, while beneficial, are not necessarily produced by situations we would choose. Although many of us miss community, we don't miss poverty, disease, and war, things that produce community with some regularity. The problem for contemporary Americans is that enhancing social cohesion may mean giving up some things we really like, like personal mobility, low taxes, and a footloose economic structure. We have not figured out yet that creating wealth is not the same as creating community.

I speak without any sentimentality or nostalgia for the past. I believe, however, that the generally fragmented lives so many of us lead break up marriages, disturb childhoods, isolate people when they most need help, and make life not as much fun. We live, to speak frankly, in one of the loneliest societies on earth. If we are to change that, then we should look more closely at the various relationships in our society--political, social, economic, and others--and attempt to construct them in more communal ways. Deciding how to structure these relationships comes back to what I increasingly believe is our most fundamental relationship--politics.

Suburbs must reassess the "growth" concept - USATODAY.com

Time for a re-think:

Housing bust halts growing suburbs - USATODAY.com.

Bedroom communities now must rethink their future and become "a little less sprawly, a little more village-like with clustered development, denser housing," Lang says. "The irony is that if they want to keep growing, they must grow as cities, which is diametrically opposite of how they got so big in the first place."

Cheaper than dinner for two at Olive Garden: The implications of Franklin's new tax levy

Much as I regularly lament the lack of comprehensive local coverage of municipal issues in a new newspaper-depleted era, I have to give credit to FranklinNow for their clear explanation of the ramifications of the City of Franklin 2010 Budget's 2.9% tax levy increase.

The new levy is $5.94 per $1,000 of assessed property value, which is reportedly the lowest in Milwaukee County.

Far from hiding it inside the story, FranklinNow included a "By the Numbers" pull quote that did the math for those who may not understand the personal ramifications of a 2.9% tax levy increase (though they did not do so online).

So, a family living in a home in Franklin with an assessed value of $250,000 faces an annual property tax bill increase of... $27.

Twenty-seven dollars.

To keep the increase from rising over the price of dinner for two at Olive Garden, cuts had to be made. In addition to an across-the-board, 1.7% cut in the overall operating budget (from FranklinNow):

The budget reduces funding to the July 4 celebration and St. Martin's Fair by 50 percent, leaves open a highway worker and custodial position and cuts funding for an intern in the planning department.

Tax dollars to other areas, including the library and street improvement funds, were frozen.

Not great news from an Economic Development standpoint.

How, with community amenities and services dwindling, do you attract to Franklin the sorts of companies that will drive down personal property taxes?

Indeed, the cost of a dinner for two at Olive Garden is not so bad, you may argue, but what about business's aversion to taxes? Conservative dogma states that "high" taxes scare business away; Franklin is a "tax hell," and that's hinders its attractiveness to business and commercial development.

Really?

Robert Ady was a longtime executive at the Fantus Company, the legendary site location business that virtually invented the process. Now the head of his own company, Ady International, Robert Ady is said to have assisted in more site locations than any living person.

Based on hundreds of face-to-face dealings with companies deciding upon the best place to locate or relocate, here are some of Ady's observations:

“[I]n the facility location process, taxes are not relatively important when compared with other cost factors such as labor, transportation and utility and occupancy costs. . . . In summary, site selection data do not suggest any correlation between low taxes and positive economic growth, or between high taxes and slow growth. The location requirements are too many, the process too complicated, and other factors too important to justify a strong relationship.”

As further reported by author Greg LeRoy:

Ady’s finding is consistent with those of others: tax-rate differences and tax incentives are too small to make a difference. Subsidies cannot make a bad place a good place. Good places are competitive because they have the long-term business basics that a company needs to produce supply to meet demand. So if cities and states want to grow good jobs, instead of cooking up more tax breaks, they should focus on improving their business basics—the valuable inputs and linkages they have.

Like, for instance, walkability, which has been shown to increase property values in communities that embrace the concept. This is why the National Association of Realtors is a vocal proponent of Smart Growth and Sustainable Development practices - specifically walkable, less car-dependent communities.

Simply put, it's easier to sell houses in - and attract CEOs to - communities that invest in long-term amenities like non-vehicular connectivity. Even if it costs TWO dinners at Olive Garden per year.

LeRoy explains the importance of creating attractive communities:

There are often personal factors in location decisions. Executives especially like to create a short commute for themselves. They may also locate for amenities such as golf courses or good schools for their children. The smaller the company, the more likely it is that such factors will come into play, but they are sometimes evident at bigger companies, too. For example, a study of 38 companies that left New York City found that 31 moved closer to their chief executive’s home, reducing the average CEO commute to eight miles.6 When the founder of Kinko’s sold the company to a group of New York investors, the company moved its headquarters in 2000 from Ventura, California, to Dallas, where the new CEO lived.

Back to the tax boogie-man. Robert Ady's chart of site location cost factors for an office project puts "Labor" at 72% and "Taxes" at a mere 5%.

Again, Greg LeRoy:

Federal tax statistics suggest that even Ady’s low ranking of taxes is overweighted. They provide even stronger evidence on why taxes—and therefore tax breaks—can rarely influence corporate location decisions. Internal Revenue Service statistics show that all state and local taxes make up only 1.2 percent of the typical company’s cost of doing business, far less than labor, materials, marketing, overhead, transportation—the business basics. And then companies get to deduct those state and local taxes when they file their federal tax returns, so Uncle Sam actually foots up to 35 percent of the bill. The bottom line: after federal deductibility, state and local taxes make up only 0.8 percent of the average company’s costs.

And, in Franklin, we have an alderman wishing on a star that a property tax freeze will fill public safety positions, create a sustainable community, and somehow increase the quality of life for local families.

I'll bet him dinner at Olive Garden that he's wrong.

(Greg LeRoy's book is called THE GREAT AMERICAN JOBS SCAM, and is highly recommended for it's solid research and excellent sourcing.)

UPDATED with new "conservo-math": Suburban City Budgets: Having your cake and eating it, too - The kind of math that brought us here

Recent night table reading material: Get out the red pen and highlighter...

The local conservative-for-hire blogger regularly carries water for one particular city alderman. As per routine, he dutifully reprints this particular alderman's letter to constituents asking for support of a (surprise!) property tax freeze even as our community faces numerous shortfalls and staff cuts, and unfilled public safety positions in the police and fire departments.

This particular alderman is (surprise!) up for re-election soon; who can blame an unabashed conservative for banging on the tax freeze drum?

The blogger's somewhat wishful distillation, however, is priceless:

"I wholeheartedly support [alderman] Olson and the idea of a property tax freeze that will restore unfilled police and firefighter public safety positions in the 2010 City of Franklin budget."

I think I can safely assume the blogger wasn't trying to be arch or ironic.

11/17/09 UPDATE: New post with additional conservo-math...

"Adopt a Scott Walker-like budget that prioritizes police and fire protection but also protects the taxpayer by a 0% property tax levy increase.

"If anyone doesn’t think that’s a great idea, they haven’t paid attention to the past two rallies that brought out a couple thousand supporters of Walker at the Italian Community Center."

... And some bonus schoolyard taunts aimed at a commenter as well.

As years of sprawl development practices come home to roost, some people still cling to the magic of "addition by subtraction."

Particularly when an election is close ....

[City of Franklin proposed budget HERE. Public hearing on the proposed budget is scheduled for Tuesday evening, 6:30pm at City Hall.]

Alternate realities: Midwest conservative radio inveighs against imaginary rail while real rail succeeds elsewhere

In one "reality," we hear conservative radio squawkers warn against the evils of light rail here in the midwest.

In other, more quantitatively measurable realities, commuter rail more than delivers on its promise.

In Minneapolis, the Hiawatha line is now five years old:

Five years and 43 million passenger rides later, the Hiawatha line is coping with success.

Metro Transit spokesman Bob Gibbons says ridership for the line, which connects downtown Minneapolis with the Mall of America, is already 20 percent ahead of what ridership was expected to be 11 years from now.

In Phoenix, a commuter line less than a year old is already catching on:

The Phoenix light rail line, which opened at the end of 2008, drew over 1.1 million riders in October, according to the East Valley Tribune, eclipsing the previous record set in September. The light rail drew an average of 41,077 riders per weekday during the month, compared to 40,772 a month earlier. Local officials attributed the increase to more visitors, cooler weather, and more special events.

Houston’s light rail also draws approximately 40,000 daily riders, although its per-mile ridership levels are about three times higher. Phoenix’s light rail extends for about 20 miles, while Houston’s is just over seven miles long, with another 30 miles planned to open around 2012.

The Phoenix light rail also set a new single-day record on October 2 with 50,562 riders. Valley Metro, which operates the system, is also planning several expansion projects to be implemented in the next 20 years.

A number of Phoenix business owners, after witnessing the system’s success, are pushing to expand the system in the hopes of attracting more customers.

Read the rest at: Phoenix light rail continues setting ridership records - Houston Tomorrow

Reality hits home, and McMansions gain saner dimensions

Now that amenities aren't self-contained in each, individual, over-leveraged home, residents will look to their communities for parks, public spaces, pools and other almost-forgotten shared assets.

Property tax freeze? Good luck with that absurd notion. Evolve or die.

By MICHAEL M. PHILLIPS

SMYRNA, Ga. -- For the first time in four decades in the luxury-home business, executives at John Wieland builders are thinking the unthinkable: Maybe houses in the South don't really need a fireplace.

They're also wondering whether new homes require 4,700 square feet of living space. Or private theaters with 100-inch screens. Or super-size-me foyers.

As they draw up blueprints for the house of the post-recession future, builders are struggling to distinguish among what home buyers need, what they want and what they can live without -- Jacuzzi by Jacuzzi, butler's pantry by butler's pantry.

"You have to keep taking things out until you hit a critical point where people reject your product," said Jeff Kingsfield, senior vice president of sales at Smyrna-based John Wieland Homes & Neighborhoods.

It's an experiment brought on by necessity. Two years ago, closely held Wieland was building 1,800 houses a year in posh subdivisions in Georgia, Tennessee and the Carolinas, selling for an average of $650,000 apiece. Today, the company is closing on just 600 homes annually, according to Wieland. It has slashed staff to 330 employees from 1,100.

Read the rest at: Builders Downsize the Dream Home - WSJ.com

The death of sprawl (and the death of editorial responsibility in local news)

New McMansions are demolished in Victorville, CA earlier this year to free the city from liability resulting from possible vandalism, crime and fire danger. (LA Times photo)

I have before me the city of Franklin "Mayor's 2010 Recommended Budget," and it's not a pretty picture. Services are going to have to be cut; fire and police positions unfilled; city staff thinned.

Still think suburban sprawl - "planning" dictated by developers' schemes and their personal ROI - is sustainable? How about another movie theater or gym a mile and a half out of town, standing alone in the middle of a field?

There will be a public hearing on the proposed budget, by the way, on Tuesday, September 17th at City Hall.

Speaking of budget coverage: Another of the unfortunate results of dwindling local coverage by the Milwaukee Journal-Sentinel is the fact that it's become clear that you cannot count on the weekly FranklinNow newspaper to provide clear-eyed coverage of ongoing budget issues. Editor Mark Maley thinks it appropriate, for instance, to reprint in the paper the blog entries of a Republican state senator's aide whose ongoing income and media aspirations are dependent upon maintaining the party line. Even after I successfully forced him to acknowledge his blogger's place of employment in his blog bio (which makes clear his particular bias) Mr. Maley continues to identify this gentleman in print as nothing more than "a Franklin resident," robbing the readers of any manner of context.

When did Mr. Maley relieve himself of his editorial responsibility to his readership?

•••

With our tortured budget in mind, I'm passing along a great two-part post on the connection between our current economic situation and decades of government-aided sprawl.

Some excerpts:

Note the New York Times on November 6 (p.A13):

New research about the recession has also bolstered one of transit's central premises -- that highway-driven sprawl is bad for a city's economic health. Recent studies at the University of Utah, for example, concluded that foreclosure rates in the Washington area were much lower in counties served by the Metro rail system, compared with the next ring of counties farther out, and that home prices in Phoenix had also fallen in direct proportion to the distance from downtown.

...

This is the first time in US history that sprawled low-density suburbs or exurbs have fallen faster in average value than city or inner-suburban areas; suddenly "Smart Growth" is more than a niche market or trend--it will be at the core of financially successful planning and development.

Links:

Death of Sprawl

Death of Sprawl pt 2