South by Northwest

South by Northwest

Tuesday, September 25, 2007

It's who you lose that counts: The morning began with Derek Gordon, head of the Baton Rouge Arts Council, making this rather profound statement regarding Louisiana being the nation's No. 1 state in retaining its citizens: "We have a reputation for keeping our own, but if you scratch a little deeper you'll find that many of our most talented people have to go elsewhere to pursue their talent."

Shameful history: Though the Portland of today is seen as a Mecca for diversity (despite an 85% white population) and tolerance, John Fregonese of Calthorpe Association says the ugly truth is that the city's history is riddled with racism and political corruption. "It's uncomfortable talking about [it]," he says, "but it's important to understand where Portland came from." Oregon's original state constitution, written in 1857, specifically prohibited blacks from settling in the state, allowing only those there prior to the adoption of the constitution to remain. While the provision stopped being enforced in the late 1800s, it was officially removed from the books in 1926.

Any target will do: Considering the above item, it comes as little surprise the KKK had an active presence in the state in the 1920s. Yet because there were so few blacks for them to hate, the group turned their ire toward another group—Catholics.

By the numbers: Portland had but 2,000 black residents in 1940, a number that grew to 25,000 after World War II. Yet that number declined to only 11,000 by the end of the 1950s, which might help explain why Portland was the last major American city to pass civil rights legislation.

Sound familiar? Portland is known for its planned developments, but the city got off to a shaky start with its first project, a hastily built 1940s project known as Vanport. The problem with the development, built primarily to house its black population, was that it was built along a dike in just about the only flood plane in the region. As you might suspect, a storm blew through the area, the dike failed and the area was obliterated in a flood. Photographs looked eerily similar to New Orleans in the days following Hurricane Katrina. Said Fregonese, "The lasting legacy of that was to stay the hell out of flood planes and not build behind dikes."

Turning a negative into a positive: Despite the devastation at Vanport, the mass evacuation forced blacks to seek refuge in largely white areas of the city. Guess what? Nothing tragic happened, proving to everyone in the city that blacks and whites could live together and Armageddon would not be the result. While racial tension didn't completely disappear, the event was the start of better race relations in Portland.

FYI: The site is now home to several parks and an auto racing facility.

Let's be fair: While Portland has since solved its problem with racism, it's much easier to address the matter when 85% of your population is of a single race. Officials who met with the canvas delegation danced around this statement, but I suspect racism would still be an issue in this Utopia if the black-white demographics were similar to Baton Rouge.

Sounds like home: While Louisiana is known for its colorful political history, Portland, in the 1950s, was declared the most politically corrupt city in America by one national publication. Among the highlights of that time was a sheriff being recalled after it was discovered he lied about being a war hero and playing football at the University of Michigan, and a hooker who ran for office under the banner of giving everyone "a fair shake."

Renovation mania: A significant reason behind the incredible—and highly planned—growth of the Portland area is an agency called the Portland Development Commission, which works with private developers and business owners, as in investor in in-fill, rehabilitation and planned growth projects. The PDC acts as something of a conduit to bring together the private and public sectors in the name of good growth, pumping millions of dollars (and, as important, cutting through red tape) and bundling tracts of land (often abandoned or rundown) for development. One of the PDC's success stories is something called the MLK Boulevard Project, which turned a gang-infested, abandoned area into a thriving residential, retail and office neighborhood. The group is currently working with a private developer to build a new area of town, called South Waterfront, a very hilly area that was approved for new development. The deal is essentially this: Government built the infrastructure, including a tram railway, and then a private developer took over to start mixed-use construction.

Check out this incredible stat: In just seven years, the roads and tram were constructed, more than 1,000 new houses have either been built or are under construction and 1,500 new permanent jobs have been created.

Sound policy: A key to Portland being such a highly rated city is this policy decision enacted in 1968 after residents revolted over a series of planned highways would have torn through the area: Make Portland less car-oriented and more people-oriented. The simple statement has prompted the region to consider land use and transportation into every growth and redevelopment decision it makes. Moreover, as a way to foster mixed demographics living in harmony, the area passed an ordinance in the 1980s requiring every city to have at least 50% of its zoning set aside for multi-family construction. And if the PDC is involved, those multi-family projects must offer both market rate and affordable housing options. In short, Portland's growth plans are based on the concept of creating diversity and equity, and a mandate for every community to plan for a full range of income types.

What is a PDC? No question, a driving force in making Portland one of America's most livable cities is the incredible work of the Portland Development Commission, celebrating its 50th year of operation. The nonprofit uses federal grants, property tax-based tax incremental financing (TIFs) and its own generated income to bring government and private developers together in an effort to bring neglected areas back to life and to smartly grow new areas of development. The PDC encourages growth in targeted areas by getting government to build the roads, infrastructure and public transportation and then working with developers to master plan the area for growth. The PDC, with a $214 million annual operating budget, has a regional focus that not only deals with retail and residential units, but also targeted industries of economic development. Think of it this way: The PDC essentially acts as the government's developer for the Portland region.

Said Fregonese, "Almost every cool thing you see (in Portland), the PDC has been involved. They set the standard. They inspire."

Speaking of property taxes: On average, Portland residents pay $15 in property taxes for every $1,000 in assessed value. The figure is roughly $10 per $1,000 in Baton Rouge. But here's a key difference—and why property tax TIFs work in Portland but are difficult back home: There is no homestead exemption in Portland. So while a homeowner in Portland with a $500,000 home pays approximately $7,500 in property taxes, a person in Baton Rouge with the same valued home pays about $4,250—if the house is properly assessed. Keep in mind Portland has no sales tax, though its income tax rate is about 4% higher than in Baton Rouge.

We've got one, too! The canvas crowd was buzzing as officials discussed how the PDC operated. Moved by the euphoria, John Spain, of the Baton Rouge Area Foundation, stood up and announced the legislature earlier this year approved a bill allowing the parish to create a similar agency. The new venture will have a five-person board, with BRAF and the Chamber each selecting a member and the mayor's office appointing three individuals. While the plan still needs approval from the Metro Council, Spain said John Noland would be BRAF's appointee.

Happy birthday: Uber traffic engineer Mike Bruce of ABMB celebrated his 51st birthday while in Portland. So how did Bruce let what's left of his hair down? He touted the benefits of the mayor's loop proposal. Giddy up!

A frequent destination: Private developer Homer Williams, an incredible individual who has played a key role in the construction of Portland, says that more than 75 cities have visited Portland over the past three years to study the region's growth and transportation plans. "We do a lot of things well," he said, "but most of it started 30 years ago, and some of it started more than 100 years ago."

Williams' key to a livable city? Great leadership from past mayors. "We had incredible leadership in the 1970s and that, along with infrastructure decisions, are benefiting us today."

For example, Williams was initially skeptical of Portland's fascination with streetcar lines, but he's a believer now as his company has done more than $1 billion in construction projects along those lines. "It's really become an economic engine."

Positive news alert! Fregonese, after studying population and economic growth patterns, predicts there will be 10 high-growth areas in this country over the next 25 years. Portland is one of them, but so too is Louisiana's 10/12 corridor. Fregonese heaped praise on the cities of Baton Rouge and Lafayette, saying the two will become Louisiana's economic engines. The strengths for Baton Rouge: LSU as a research institution, a high 20-34 population (thanks to LSU and Southern) and the continued rebirth of the downtown area. The key, of course, if getting those LSU and Southern graduates to remain in the area and not move out-of-state.

"Baton Rouge is now the largest and most economically important region in Louisiana," he says. "All the ingredients to become the next great American city are present in Baton Rouge."

Be careful what you ask for: Canvas attendee Collis Temple, after repeatedly hearing how Portland's elected officials were so instrumental in the planned growth of the region, asked why local leaders don't get bogged down in parochial squabbles? The answer was direct: "Our commissioners are all elected at-large." Hearing that the room burst into applause, prompting Temple to reply, "I'm sorry I asked."

Intel city: The city of Hillsboro, which distance-wise is as close to Portland as Denham Springs is to Baton Rouge, has seen incredible growth over the past three decades, fueled by Intel's decision to invest heavily in the area. Intel, which started out in the area operating out of a shuttered fast-food restaurant, has grown into a seven-campus operation in Hillsboro, and its top researchers and engineers are based there. Moreover, there has been significant technology investment from a host of Japanese-based companies in the area.

Evidence of Hillsboro's rapid growth is the fact more than 10,000 housing units have been constructed over the past three years. And that growth is highly planned by city officials, who determine where construction will take place and what types of industry will be allowed into the area. "We're not regulators," said one Hillsboro official. "We're facilitators."

Why Hillsboro? A spokesman for Intel said the company made the decision to invest so heavily in Hillsboro for three key reasons: available, affordable housing, inexpensive power and available land for expansion. The other factors, said Intel's Bill MacKenzie, who once worked for Louisiana Sen. John Breaux, were an educated work force, decent public schools and a "welcoming environment."

Intel now has 16,000 employees in the area with an annual payroll of $1.5 billion. The 10,000 employees and their families who live in Hillsboro represent 30% of that city's population.

Wow factor: Jaws dropped in stunned silence when MacKenzie matter-of-factly said the average annual salary of an Intel employee is $101,000, including bonuses and restrictive stock options. Whispered one member in the canvas audience (tongue planted firmly in cheek), "That's just a tad more than the salaries paid by all those call centers we land in Baton Rouge."

All not rosy: While Intel is happy with being in the Portland region, there are concerns that the area's highly educated work force isn't educated enough. The reason? While undergrads and master's graduates are plentiful, the company is in desperate need of researchers and engineers with PhDs. Said MacKenzie, "Over the last four years only seven of our research engineers came from Oregon universities." There's also concern over rising energy costs.

Mad at Miles: Oregon legislator Ryan Deckert says folks in the area, home to Pac-10 members Oregon and Oregon State, are still upset over LSU coach Les Miles' preseason comments about USC having an easier road to the BCS championship game because it plays in a conference weaker than the SEC. Deckert pointed out a recent CNNSI.com article that declared the Pac 10 and SEC are the nation's two best conferences through the first quarter of the season. But he didn't stop there, "After every win (by nationally ranked Oregon) we say, 'Coach Miles.' "

The comment brought the canvas crowd to life as members fired back retorts. So here's what brought the biggest responses from the delegation after the first full day of the trip: Intel paying an average salary of $101,000, and someone insulting LSU football.


Comments

Posted by jaybee on September 25, 2007 at 12:40 p.m. (Suggest removal)

Why push forward with Project Green Light and a loop around Baton Rouge when cities across the country are solving their traffic problems by investing in public transportation, bikeways, etc.?? The cynic would say it's big money for developers and consultants who coincidentally contribute heavily to the mayor's race.

Let's hope our area officials will start acting like leaders instead of preachers/politicians.

keep up the good work!

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