Day: February 10, 2016

What Can Be Learned from Portland’s Smart Growth Experience?

The annual “New Partners for Smart Growth” conference opens in Portland on Thursday, February 11. “Smart Growth” refers to an amorphous planning theory favoring (or requiring) high urban densities, mixed-use development, and non-auto travel.

Given Portland’s status as the Mecca for this philosophy, it’s likely that the conference will be a love fest of planners, activists, and consultants celebrating the “Portland story.” Unfortunately, the reality of Smart Growth is a lot less glamorous than the PowerPoint slides.

For example, Portland has been a leader in light rail construction for over 30 years, but it hasn’t changed how people travel. According to the Portland City Auditor, in 1997 – when Portland had only one light rail line terminating in Gresham – 12% of Portland commuters took transit.

In 2015, transit use was still only 12% of commuter travel, despite (or because of) a multi-billion rail construction campaign that added a streetcar loop, a new commuter rail line, and five new light rail lines. During that era bus service was reduced by 14%, and buses still account for two-thirds of daily riders.

On the land-use front, planners have succeeded in their goal of densifying the region; but there was collateral damage. Due to density regulations, buildable land is now scarce, driving up the cost of housing. This is incentivizing many property owners to tear down nice homes and replace them with out-of-scale apartment buildings – many with no off-street parking. Some Portland Progressives who supported this planning agenda now wonder why their formerly pleasant neighborhoods are flooded with automobiles.

In the suburbs, most new projects simply have no backyards. It’s hard to remember now, but in 1995, the average lot size for a new home in Washington County was 15,000 square feet. This provided plenty of room for kids.

Those days are over. In the new “South Hillsboro” development, which will be built out over the next decade, most dwellings will be attached units on tiny lots. The larger parcels – averaging only 7,000 square feet – are being marketed as lots for “executive housing.”

Nice backyards that were once common are now only available to the rich, due to the artificial scarcity of land that Smart Growth calls for.

The Portland conference will feature trips to “transit-oriented developments” (TODs) like Orenco Station in Hillsboro. Orenco features a housing project with passive solar design along with urban-scale density near light rail, but both elements required large public subsidies. It would be difficult to replicate those projects elsewhere.

Perhaps the most disappointing fact about regional planning in Portland is that very little effort is being made to learn from the experience. Since 2008, at least four audit reports by the Metro Auditor have criticized agency planners for this failure.

In the 2010 report, the Auditor found that “Metro’s processes to plan transportation projects in the region were linear when they should have been circular. After a plan was adopted, the update process began anew with little or no reflection about the effectiveness of the previous plan or the results of the performance measures they contained.”

It’s clear that this was not an accident; it was by design. As the Auditor noted, “systems to collect data and measure progress towards these outcomes were not in place.”

No measurement means no accountability. That’s not a smart way to plan a region.


John A. Charles, Jr. is President and CEO of Cascade Policy Institute, Oregon’s free market public policy research organization.

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Is Oregon Getting More Business Unfriendly?

Oregon is known as a small business state. Few large corporations are headquartered here, and current policy debates in the legislature and measures headed for the November ballot threaten to make our state even less friendly to business than it already is.

Two recent publications document how bad the outlook for Oregon’s economy is now. The Eighth Annual Rich States, Poor States report from the American Legislative Exchange Council calculates every state’s Economic Outlook based on fifteen public policies under state control such as personal and business tax levels, minimum wage rates, and Right to Work status. On this scale, Oregon has slipped from 35th in 2008 to 45th today.

The Small Business Policy Index for 2016, published by the Small Business and Entrepreneurship Council finds that “Oregon offers the eighth worst policy climate for entrepreneurship and small business growth among the 50 states.” It comes to this conclusion based in part because “Oregon imposes the second highest personal income and capital gains taxes, high unemployment taxes, a state death tax, and a high state minimum wage. Oregon also has a weighty energy regulatory burden.”

In light of such findings, should certain state legislators, union leaders, and political activists be promoting a massive increase in Oregon’s minimum wage rate and a drastic increase in corporate taxes? Of course not. But don’t expect economic reality to always win the day. If it could, Oregon’s economic outlook would be a lot better than it is.


Steve Buckstein is Founder and Senior Policy Analyst at Cascade Policy Institute, Oregon’s free market public policy research organization.

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