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Economic Development

Federal Policy for Community Revitalization -  Community Development Block Grant Program -  Brownfields and Vacant Properties - Fact Sheets on the Proposed Federal Budget for Fiscal 2008 - Federal Appropriations Fact SheetsPublic-Sector Economic DevelopmentEnergy and Economic DevelopmentReportsBriefings, Roundtables, Summits, and Other Events


Overview of Economic and Community Development

The Northeast-Midwest Institute researches federal economic and community development programs and opportunities as part of its mission to encourage economic vitality for the region and the nation.  The Institute explores strategies for federal economic development initiatives, analyzes legislation, tracks trends, and distributes information to educate and inform congressional staff, federal policymakers, and state officials.  Institute efforts have addressed a range of federal policies, including the Community Development Block Grant program, the Manufacturing Extension Partnership, community infrastructure, brownfields redevelopment, housing, business development, and industrial energy efficiency,

Federal Policy for Community Revitalization

Federal policy can and does help the nation's older core cities and close-in suburbs face challenges that impede their economic vitality, but federal efforts have not kept pace with growing challenges.  Many older communities, especially those located in the Northeast and Midwest, lag behind the nation when it comes to population growth – a trend that has adverse implications for the upkeep of existing infrastructure, the effectiveness of traditional revitalization strategies, and the flow of federal funds from programs that allocate dollars based on population.  Sluggish markets and falling populations undermine the economic vitality and strain the municipal resources of older communities.  Some cities and suburbs face difficulties with brownfields and vacant properties, aging infrastructure, housing, commercial and industrial activity, and declining tax bases.  Many older core cities and close-in suburbs need the federal government as a partner in their revitalization efforts.

In response to a growing interest in federal action, the Northeast-Midwest Institute is working with members of the Northeast-Midwest Congressional and Senate Coalitions to explore how federal policy can help older core cities and suburbs with community revitalization challenges. With funding from the Surdna Foundation, the Institute is highlighting federal options for a range of economic and community development issues.

The Northeast-Midwest Institute presents some 40 specific policy options in its report on Federal Policy Ideas for Community Revitalization: Suggestions from Congressionally Hosted Roundtable Discussions of Federal Policies for Older Core Cities and Close-in Suburbs. The report highlights findings from 2005 roundtable sessions with Sen. Jack Reed of Rhode Island, Rep. Thaddeus G. McCotter of Michigan's 11th district, and Rep. Stephanie Tubbs Jones of Ohio's 11th district on federal policy for brownfield and vacant property redevelopment, housing, water and transportation infrastructure, business and economic development, and energy. The Institute report, funded by a Surdna Foundation, compiles ideas from the roundtables and offers them for consideration by members of the Northeast-Midwest Congressional and Senate Coalitions and others. The Northeast-Midwest Institute will build upon the suggestions and ideas from these roundtable sessions to engage in ongoing work on critical issue areas and policy efforts important to the quality of life in older communities.  

The Northeast-Midwest Institute produced a summary about the proposed change in the allotment formula for the Clean Water State Revovling Loan Fund as called for in the Water Quality Financing Act of 2007 (H.R. 720).  Click here to read the summary.

As a follow-up to a Capitol Hill roundtable discussion of predatory lending and federal policy, the Northeast-Midwest Institute, with support from the Surdna Foundation, produced an issue brief on A Federal Suitability Requirement for Home Loans.

In summary reports, the Institute also has highlighted existing federal programs important to community revitalization efforts for older communities.  The reports feature information about:

The Community Development Block Grant Program

The federal Community Development Block Grant program provides funding to cities, urban counties, and states for a wide range of activities focused on economic opportunity, development, neighborhood revitalization, and housing.  Not less than 70 percent of CDBG funds must be used for activities that benefit low- and moderate-income persons, and other CDBG activities must prevent or eliminate slums or blight or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to health or welfare.  The current funding formula is structured to ensure dollars for communities with older infrastructure and lagging population growth or declining population.

In recent years, funding for the CDBG program has declined and several proposals have been introduced to eliminate this important program, scale it back, consolidate it with other federal initiatives, or change the federal funding formula.  In each case, the suggested changes weaken the program or shift funding in ways that adversely affected many communities in the Northeast-Midwest and elsewhere.  Northeast-Midwest Institute research has highlighted the importance of the CDBG program to older communities and identified problems with many proposed changes.  The Institute also has provided important information about the CDBG program to the Northeast-Midwest Senate and Congressional Coalitions on Capitol Hill.  Click here to read a Senate Coalition letter -- with signatures from 58 senators -- requesting restored funding in fiscal 2007 for the Community Development Block Grant (CDBG) program, which helps to revitalize neighborhoods.

Brownfields and Vacant Properties

For many older cities, vacant properties and brownfield sites constitute a significant portion of the land available for development.  Brownfields are abandoned or underused properties where redevelopment is complicated by actual or suspected environmental contamination.  Other properties may stand vacant in locations where changing economic circumstances, deteriorating infrastructure, or weak markets have undermined private investment.  Brownfields and vacant properties depress property values, discourage investment, foster blight, and dampen tax revenues for local governments.  Older communities need to promote the redevelopment of vacant properties and brownfield sites as a way to revitalize their economic base and in order to offer viable alternatives to development that might otherwise occur outside their borders in newer locations.  As part of its Surdna-funded federal policy project, the Northeast-Midwest Institute is continuing research and education efforts that focus on the challenges of brownfields and vacant properties.  Click here for information and materials from a July 2006 Capitol Hill briefing on brownfield and vacant property issues.  For more about the Institute’s brownfields program, go to http://www.nemw.org/brownfields.htm.   

Fact Sheets on the Proposed Federal Budget for Fiscal 2008

The Northeast-Midwest Institute produced a collection of fiscal 2008 budget day fact sheets on selected federal community and economic development programs (FY08 Federal Budget Proposal). The fact sheets use text, graphs, and data to present information about the president’s fiscal 2008 federal budget proposal for about a dozen programs relevant to revitalization efforts in older cities and close-in suburbs.  The fact sheets also look at inflation-adjusted appropriations levels over time and include summary information about each program.  The featured federal programs in the report are among those that were cited in congressionally hosted roundtable discussion sessions, which were organized around community and economic development challenges for older core cities and close-in suburbs.  The Surdna Foundation provided support for this research effort.  The programs covered include:

           

            Brownfields Categorical Grant

            Brownfields Projects

            Clean Water State Revolving Fund

            Drinking Water State Revolving Fund

            Brownfields Economic Development Initiative

            Community Development Block Grant Formula Program

            HOME Investment Partnerships Program

            HOPE VI

            Housing Choice Vouchers

            Amtrak

            Federal Transit Administration

 

Fact Sheets on Appropriations Trends for Selected Federal Programs

With support from the Surdna Foundation, the Northeast-Midwest Institute produced brief fact sheets that use text, graphics, and data tables to present information about inflation-adjusted federal appropriations levels back as far as fiscal 1981. The featured federal programs are among those cited in congressionally hosted roundtable discussion sessions, which were organized around community and economic development challenges for older core cities and close-in suburbs.  The fact sheets look at appropriations levels over time, comparing current to past levels after taking inflation into account.  The fact sheets also include summary information about each program. 

Public-Sector Economic Development

Economic development increases a regional economy's capacity to create wealth for local residents. Development depends upon the deployment of a region's building blocks -- labor, financial capital, facilities and equipment, know-how, land, other physical resources, and public and private infrastructure. The Northeast-Midwest Institute report on Public-Sector Economic Development: Concepts and Approaches offers a framework for local, regional, and state policymakers to use as they assess economic development prospects.

Energy and Economic Development

Reliable, affordable energy is critical to the economic well-being of cities and regions. Energy is fundamental to powering commercial businesses, retail establishments, manufacturing plants, transportation, and everyday life. Energy prices affect profit margins and influence business location decisions. High energy expenditures reduce the money that consumers and businesses spend on other purchases and, within the dynamics of the local economy, may pull dollars out of metropolitan areas for payments elsewhere to energy producers or retailers. The Northeast-Midwest Institute explored the topic of energy and economic development at a July 2005 roundtable discussion session in Pawtucket, RI, hosted by Sen. Jack Reed (D-RI), co-chair of the Northeast-Midwest Senate Coalition. The opening presentation from Skip Laitner, a senior economist for technology policy with the U.S. Environmental Protection Agency, spelled out the links between energy efficiency and economic impacts and highlighted their importance to economic development. Download Laitner’s PowerPoint presentation here

Reports

For centralized access to Northeast-Midwest Institute reports on economic and community development, click here.  For access to reports and presentations on brownfields, click here.  To review profiles of recent economic data for each of the 18 northeastern and midwestern states, click here.
 

Briefings, Roundtables, Summits, and Other Events

As part of its ongoing research and education efforts, the Northeast-Midwest Institute coordinates briefings, roundtable discussions, summits, and other events for Congress, state and local officials, experts, and practioners interested in federal policy for economic and community development.  Past Institute events have included the following:

  • Capitol Hill Roundtable Discussion Session on Federal Policy Issues for Predatory Lending in Older Communities, Washington, DC, September 2006.  For a session summary, click here.
    The Northeast-Midwest Institute and the Northeast-Midwest Congressional and Senate Coalitions hosted a roundtable session with congressional staff and policy experts to discuss predatory lending, its impact on older communities, and proposals and options for federal action to reduce the practice.
  • Capitol Hill Roundtable Discussion Session on Federal Policy Issues for Older Core Cities and Close-in Suburbs, Washington, DC, February 2006
    The Northeast-Midwest Institute and the Northeast-Midwest Congressional and Senate Coalitions hosted a roundtable session with congressional staff and policy experts to discuss suggestions gathered by during a series of 2005 sessions on critical issues for older core cities and close-in suburbs and to hear of specific legislative proposals related to federal policy suggestions.  Participants engaged in discussions about federal policy for 1) brownfield and vacant property redevelopment, 2) housing, and 3) business and economic development challenges in older core cities and close-in suburbs.  The roundtable, sponsored by the Surdna Foundation, explored the value and viability of suggestions from the 2005 roundtable discussions and considered legislative proposals related to the roundtable suggestions. 
  • Roundtable Discussion Session on Federal Policy Issues for Water, Sewer, and Transportation Infrastructure in Older Core Cities and Close-in Suburbs, Cleveland, Ohio, December 2005
    Congresswoman Stephanie Tubbs Jones of Ohio hosted a discussion session on how existing and proposed federal initiatives for water and transportation infrastructure could advance economic revitalization for older cities.  Participants engaged in discussions focused on federal policy options for 1) water and sewer infrastructure upkeep and development, and 2) transportation infrastructure upkeep and development.  The roundtable, sponsored by the Surdna Foundation, explored ways federal policy does and could address barriers and encourage revitalization for older suburbs and cities.  
  • Roundtable Discussion Session on Federal Policy Issues for Housing in Older Core Cities and Close-in Suburbs, Cleveland, Ohio, December 2005
    Congresswoman Stephanie Tubbs Jones of Ohio and Cleveland’s Mayor-elect Frank Jackson co-hosted a discussion session on how existing and proposed federal initiatives for housing could advance economic revitalization for older core cities and suburbs.  Participants engaged in discussions focused on federal policy options for 1) preserving, rehabilitating and constructing housing stock, 2) avoiding foreclosures and abandoned residential properties, and 3) increasing home ownership opportunities.  The roundtable, sponsored by the Surdna Foundation, explored ways federal policy does and could address barriers and encourage revitalization for older suburbs and cities. 
  • Roundtable Discussion Session on Business Development and Brownfield/Vacant Property Redevelopment in Older Suburbs and Cities, Livonia, Michigan, September 2005
    Congressman Thaddeus G. McCotter of Michigan hosted a discussion session on how existing and proposed federal initiatives for business development and vacant property redevelopment could advance economic revitalization for older suburbs and cities.  Participants engaged in discussions focused on federal policy options for revitalization and addressing 1) financial capital needs for business and economic development, 2) federal subsidies, incentives, and grants for business and economic development, 3) redevelopment of brownfield industrial sites, and 4) redevelopment of other abandoned properties.  The roundtable, sponsored by the Surdna Foundation, explored ways federal policy does and could address barriers and encourage revitalization for older suburbs and cities. 
  • Roundtable Discussion Session on Business and Economic Development Issues for Older Metropolitan Areas, Pawtucket, Rhode Island, July 2005
    Senator Jack Reed of Rhode Island hosted a discussion exploring high-priority concerns and federal policy challenges regarding business and economic development for older cities and suburbs.  Participants engaged in discussions focused on federal policy options for revitalization and 1) addressing financial capital challenges for business and economic development, 2) considering current and proposed federal subsidies, incentives, and grants designed to encourage business and economic development for older metropolitan areas, and 3) examining proposals, programs, and suggested changes for federal workforce development initiatives.  The roundtable, sponsored by the Surdna Foundation, explored ways federal policy does and could address barriers and encourage revitalization for older suburbs and cities. 
  • Roundtable Discussion Session on Energy and Economic Development Issues for Older Metropolitan Areas, Rhode Island, July 2005
    Senator Jack Reed of Rhode Island hosted a discussion exploring high-priority concerns and federal policy challenges regarding energy and economic development in older cities and suburbs.  Participants engage in discussions focused on 1) the link between energy and economic development, 2) federal and state policy changes relating to energy supply, demand and efficiency, and 3) electricity restructuring.  The roundtable, sponsored by the Surdna Foundation, explored ways federal policy does and could address barriers and encourage revitalization for older suburbs and cities. 

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