The River as Economic Development
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Transcript of The River as Economic Development
Ashley Sarver ED I -- 4/30/13
1
The River as Economic Development
Introduction
An increasing trend in economic development is the use of the river as a
commodity to promote development and re-development of various kinds. While these
efforts may be in part due to the public’s general desire revitalize their downtown
riverfront areas, they also may feel the need to reconnect with nature. The conflicting
goal of maximizing the income from the commodity of the river exists amongst private,
public, and citizen stakeholders. Remediating land in post-industrial cities that abuts the
river for re-use to contribute to the tax base and diversity of the economy may impact the
river and community in harmful ways. Looking at examples of efforts in Milwaukee, WI
and Rockford, IL will guide the analysis of riparian development and the environmental,
economic, and social issues that arise in the different locales. Finally, the report will
address which community may have more successful redevelopment efforts along their
river as it relates to the environmental quality of the respective river.
Industry along the river
I choose to focus on Milwaukee, WI and Rockford, IL due to their histories of
industry along the river. Both of these cities, though different in size, once thrived on
their ability to manufacture and transport goods to other cities for a strong export-based
economy. In Milwaukee, the many breweries, the exporting of wheat, and the steel and
iron industry established intensive industrial uses along the Milwaukee River (Milwaukee
Timeline). In Rockford, the furniture industry was their strong export that made the city
prosper in northern Illinois (Browne & Rowe, 1891). Additionally the added advantage
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of being able to transport these items via rail and river added to the ability to export these
items, building the local economy. As Harris and Ullman state:
Cities are the focal points in the occupation and utilization of the earth by man. Both a product of and an influence on surrounding regions, they develop in definite patterns in response to economic and social needs. Cities are also paradoxes. Their rapid growth and large size testify to their superiority as a technique for the exploitation of the earth, yet by their success and consequent large size they often provide a poor local environment for man…As Adam Smith stated, the land must produce a surplus in order to support cities.
(Harris & Ullman, 1945) As the above passage shows there is a conflict between supporting a city and the
environment that is created by the industry that supports the size and ability of the city to
develop. Industries all over the country sent various pollutants into the air and water of
the communities they occupied in order to prosper and support the laborers and their
families. In the name of economic prosperity and the wealth of the nation, the
environment was seen as something to extract from so as to support human activity.
Transition
The 20th century changed things for production in the United States. Most of the
cities that were thriving on industry and production saw these same companies shifting to
overseas labor and the once-polluting lands became vacant and underutilized. Throughout
this, a shift in the global awareness of sustainability started to arise. At the same time,
global economics and changing technologies shifted these heavy industrial uses along
rivers to different countries or they were phased out altogether as technology advanced.
In addition to more advanced and cleaner technology, there were more regulations put on
the amount of pollutants that an industry could release into the air and water.
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Also in the 20th century, more research was done and people began to become
more familiar with some of the issues of sustainability that arose from intensive industrial
production and the form in which that production took place. In 1962, Silent Spring was
written which revealed research on toxicology and ecology, showing that agricultural
pesticides were having real effects on the health of humans and animals. Earth Day was
established in 1970 and peaceful demonstrations across the U.S. revealed the public’s
interest in the planet’s health. Especially important was the Federal government’s
intervention in 1972 to outline water quality goals with the Federal Water Pollution
Control Act that was meant to “restore and maintain the chemical, physical, and
biological integrity of our Nation’s waters” (Duda et al, 1982). In the 1980s some of the
first reports on global warming appeared and the United Nations and other NGOs began
focusing on a more sustainable future for the developed and developing nations. Al
Gore’s An Inconvenient Truth debuted and the issues of global warming and
sustainability began to set in the U.S. public mindset (The Sustainable Development
Timeline, 2010). All of these events led the public to think of how sustainability could be
achieved given an increasing population and new forms of production.
Where we are now
As trends in economies shifted in the U.S. from more industrial to service-based,
some of the intensive riverine industrial uses shut down and left vacant and contaminated
lots. Pollution studies have shown that “changes in the overall level of pollution as the
share of manufacturing in GDP waxes and wanes” as does the composition of the
pollution depending on what commodities are being manufactured (Auty, 1997). That
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being so, it can be expected that the river qualities in both Milwaukee and Rockford
increased as their percent share of manufacturing in their GDP decreased over time.
A new vision for the river
As many cities shift from industry to service-based economies with the added
factor of sustainability on the forefront of many people’s minds, many places are seeking
out to revitalize their riparian downtowns. Local governments and park districts,
including in Rockford and Milwaukee, are seeing the river as a public good that should
be made accessible to the public as made obvious by Rockford’s River District
Framework Plan (2003) and the Milwaukee Downtown Area Plan (2010). Urban dwellers
still are seeking out opportunities to interact with nature and in these places the river is
the most immediate connection. As people want more interaction with nature, they
become increasingly aware of the environmental state of that attribute. Additionally,
developers and the private sector are aware of the unique commodity that the river
presents. Rivers present a unique view, perhaps some tranquility, and a recreational
access point. There are limited acres in a community and in a region that abut this
resource, making the opportunities to capitalize on the asset more restricted and that
much more desirable.
Rockford’s River
Rockford, Illinois is a city of 152,222 people along the Rock River in northern
Illinois (U.S. Census Bureau, 2011). Rockford’s River District Framework Plan outlines
changes to occur in the downtown that support an area for their residents to live, work,
and play. The plan states that: “The river itself is the community’s greatest asset and
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should be the focus of future revitalization efforts” (Rockford’s River District Framework
Plan, 2003).
The plan addresses the issue of many vacant buildings, mostly former industrial uses,
that are difficult to redevelop due to the contaminated nature or brownfield status
of these lots. Additionally
they note existing difficulty
in accessing the Rock River
due to the fact that private
entities are currently abutting
the river in the downtown,
whether single family
residential or office use.
Some of the
principles that guide their recommendations are to: Capitalize on the River, Reinvent the
River District as a Premium and Diverse Residential District, and to Create a New Image.
These recommendations invoke a sense of a vibrant, well-kept community with public
and private investment guiding the changes.
A more recent plan from 2006, the Rockford Riverwalk Vision Plan specified
projects that could catalyze development downtown. As exists with many development
plans for communities that have a river flowing through their downtown, the plan
encourages river access and mixed-use development as well as a new feature such as a
bridge that acts to attract people downtown and to the river.
Source: Google maps
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Economic Development Tools in Place for Rock River
There are various economic development tools in place to help assist the riverine
efforts in Rockford. Firstly, the Illinois Department of Commerce and Economic
Opportunity (DCEO) has established the River Edge Redevelopment Zone (RERZ)
program that designated the zone along the Rock River in Rockford, as well as river
edges in three other cities, to achieve the goals of redeveloping the river’s edge through
various incentives. These incentives include: sales tax exemption, property tax
abatement, investment tax credits, jobs tax credits, environmental remediation tax credits,
dividend income deductions, interest income deductions, and building materials sales tax
exemptions (Illinois Department of Commerce and Economic Opportunity). Additionally
TIF districts have been established along the river’s edge downtown to help support these
redevelopment efforts as well (City of Rockford, 2006).
Milwaukee’s River
Milwaukee is a city five
times the size of Rockford at a
population of 597,867 and has
been developed in a more dense,
urban format. This city in
southeastern Wisconsin abuts
Lake Michigan and also has the
Milwaukee River meandering
through its center (U.S. Census
Buraeu, 2011). Milwaukee’s most recent downtown plans focus heavily on the river as an
Source: Google maps
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asset for development, especially the three RiverWalks; the Downtown RiverWalk,
Beerline RiverWalk, and Third Ward RiverWalk. These three RiverWalks are already
rather successful in terms of attracting private investment and providing open space along
the river. The 1999 plan where these RiverWalk linkages were first emphasized included
objectives to increase river usage as well as to promote continued improvement in the
river’s water quality (City of Milwaukee, 1999).
Economic Development Tools in Place for Milwaukee River
In order to fund development along the Milwaukee River, especially along its
RiverWalks, a few economic development tools have been established. First, much of
the area along the river downtown is within tax-increment districts (TIDs) in order to help
fund development and redevelopment (City of Milwaukee, 2010). Additionally, a
Business Improvement District (BID) has been established for RiverWalk properties so
as to help maintain the appearance of the RiverWalk and keep it in a functioning,
aesthetically pleasing condition (City of Milwaukee, 2013). On top of the financial tools
in place, the City has established design guidelines to ensure that future development
meets the standards of excellence that they put forward. These guidelines encourage
developing in a sustainable manner and in a way that provides public access. They go
even further to outline four kinds of access: physical, psychological, visual, and
economic. This public document emphasizes the health of the river as well as people’s
health as it relates to the river to the same degree it addresses the need for economic
revitalization and investment along it (City of Milwaukee, 1992).
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Larger Sustainability Commitments
Rockford
In order to look more into how these plans protect the health of the river, a quick
review of the cities’ commitment to larger sustainability issues will help inform the
overall inclusion of environment in development and redevelopment.
Rockford is known as “The Forest City” and includes in its planning documents
that the quality of the river should be promoted. In addition, one private not-for-profit
organization, the River District Association promotes the use but mostly development
along the Rock River (River District Association). The overall goals and events are more
similar to a Chamber of Commerce for the area; promoting new businesses, involvement
in the group, events to sponsor, etc.
When it comes to environmental organizations promoting the Rock River, there
exists one regional group, the Rock River Trail Initiative. This group produced a
document which focuses on the entire watershed of the Rock River from southern
Wisconsin to Moline, Illinois where the Rock meets with the Missisissippi to create a
network of riparian paths, rural and urban (Rock River Water Trail – Illinois and
Wisconsin – Inventory, Analysis, and Plan, 2012). The focus is not sustainable
development but rather a promotion and plan for access to the river. The group has goals
that aim for high water quality but their efforts are not focused in the downtown
Rockford area, nor do their initiatives have teeth by which development should occur in
urban areas to promote the water quality and ecology. One promising aspect for the
riparian development in the River District of Rockford is that the City of Rockford has
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signed on as a partner to this document they produced, showing they have some stake in
the future of the River.
Milwaukee
Milwaukee has made some more public commitments to promoting sustainable
development practices as they affect the river as well as their soil and carbon footprint.
The Milwaukee Energy Efficiency program (Me2) provides resources for homeowners,
businesses, and contractors to make more sustainable decisions with how they build. The
homeowner program provides rebates to homeowners who take various energy-saving
investments in their home, whether that by means of LED light bulbs, building materials,
or rain barrels. The website shows that buildings are incentivized through loan and grant
programs to take sustainable measures while building their establishments and they
provide a list of contractors familiar with sustainable building practices (Milwaukee
Energy Efficiency).
Additionally, the current mayor of Milwaukee, Mayor Tom Barrett has signed on
to participate in the Better Buildings Challenge, a program from the Department of
Energy that turns to corporate and civic leaders “to reduce their portfolio-wide energy use
by 20 percent by 2020 and showcase the solutions they use and the results they achieve”
(Milwaukee Better Buildings Challenge). One of the buildings that boasts its
participation in this program is City Center at 735, a commercial and office building right
on the Milwaukee River.
Private and community organizations have also jumped on board to support the
Milwaukee River. In addition to the public support for sustainability, organizations such
as the Milwaukee River Greenway Coalition, the Milwaukee Environmental Consortium,
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the Milwaukee Riverkeeper, and the River Revitalization Foundation are all
organizations promoting the ecologic health of the Milwaukee River (Milwaukee River
Greenway Organization).
The presence of organizations and institutions in place does not necessarily reflect
the quality of the water of the rivers in their respective cities. However, I argue that the
existence of more stakeholders puts more pressure on the City to ensure that sustainable
practices are in place; whether that be through rehabilitation rather than tearing down and
building new, reducing storm water runoff into the river through more efficient
technology, or including public access with open green space. These elements would
guide the way development is permitted by the City to take place along their sacred
resource of the river.
In Milwaukee, there are organizations in place separate from economic
institutions that focus on the health of the Milwaukee River and the public’s access to it.
In Rockford, only private institutions that support the economic vitality of the River
District are in place to support the area. The one Rock River Initiative group that
promotes access to the Rock River is not a group that focuses on the health of the river
specifically downtown Rockford, though their efforts may be enough to help guide future
development.
Milwaukee being a larger city with a more expansive metro area means there are
more people who utilize the river as a resource in a concentrated spot. Rockford does not
have the population that Milwaukee does and perhaps for this reason lacks institutions
that lobby for the environmental health of the river. General economic circumstances
may lead to this factor as well. A city, able to be more specific about the type of
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development they want also puts them in a position to require more stringent guidelines
for the projects that are approved. Milwaukee boasts an increase in retail, restaurant, and
public improvement projects along its RiverWalks.
In summation, the numerous groups active in Milwaukee supporting the ecology
of the Milwaukee River make this water source a less likely candidate for future
contamination from point sources within the Milwaukee city boundaries. Rockford’s
smaller population and focus on the health of the Rock River from citizen and
environmental groups puts the Rock River at greater danger for pollutants to enter its
waters from point sources in Rockford.
What river development means for the community
Social
A study from the University of Maryland shows “that water quality has a
significant effect on property values” (Leggett & Bockstael, 1999). While their study
focuses on Chesapeake Bay properties, it is possible, without access to other more river-
specific studies that one can apply the same logic to riverine properties in both urban and
rural contexts. The study does address the possibility of problems in their study due to
multicollinearity when considering neighborhood variables, such as undesirable
neighbors that are emitting the pollutants to the air and water. Regardless, they conclude
that “these collinear variables does little harm to the intent of the regression” (Leggett
and Bockstael, 1999).
If we assume that as the water quality increases, that property values will also
increase along the river, then it is quite possible the residents currently living alongside
the river would have more difficulty affording the homes or apartments in which they
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were residing. If they cannot afford it and must move elsewhere, the character of the
riverine developments in downtown Milwaukee and Rockford will effectively change.
As housing stock is either rehabilitated or built new in downtowns and along the river, a
goal cited in the plans for development in the downtowns and river districts of
Milwaukee and Rockford, higher-income earners will occupy the area (Brueckner &
Rosenthal, 2009). “Yuppy” or the young urban professionals that can afford the property
along the river. The property that caters to their preference of living close to a resource
for recreation may be highly sought out, increasing demand, and consequently housing
prices and rents.
This phenomenon is likely to occur in both study areas and is an element that both
locales should pay heed to as their redevelopment efforts continue along the river.
Thinking now of what guidelines are in place to minimize the number of people impacted
and displaced is a measure worth taking.
Stormwater
The area along the two study area rivers differ in terms of their adjacent uses.
Just north of the Rockford downtown, adjacent uses along the Rock River are
predominantly single-family residential with large yards and a mature tree canopy. Any
changes in the future to this area to make it increasingly dense will mean increased
impervious surfaces and increased stress on the stormwater management system.
Stormwater runoff may enter the river, increasing the pollutants that are able to enter the
river flow as they are unable to soak into the green space in the large yards of the single-
family residences (Bedient et al, 1980). However, if the old industrial buildings are
rehabbed or the brownfields are remediated to implement low-impact development
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practices that decrease the amount of storm water run off into the river, some of the
negative aspects of development can be mitigated.
The City of Milwaukee’s adjacent uses are predominantly mixed-use higher
density buildings in their downtown. The density there has been established so any future
efforts would only be able to reduce storm water runoff by implementing more
impervious surface and low impact development.
Future development and redevelopment efforts will be more impacting to the
Rock River than to the Milwaukee due to its current status of adjacent uses. More
density will mean more strain on Rockford’s water managements system and could cause
more runoff containing pollutants into the water source, the Rock River. However,
increasing density or rehabbing older buildings in Milwaukee, an already dense area, is
unlikely to introduce new strain on the City of Milwaukee and the quality of its river
water.
Conclusion
Various factors will affect the quality of the Rock and Milwaukee Rivers as their
respective cities work on riverine development plans. Though both cities have industrial
backgrounds and may be considered “post-industrial” cities, their future development
along their rivers and the quality of the water of their rivers may differ.
The factors at hand in Milwaukee reflect the possibility for the Milwaukee River
to suffer less environmentally at their future efforts in redevelopment due to their limited
single-family residential possible conversions, the prevalence of environmental
organizations focusing on the river, and the design guidelines they have in place that
specify development and access standards.
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To contrast, Rockford currently has a prevalence of single-family residential uses
along its river, has only one regional environmental group that focuses on the river, and
does not have supplemental design guidelines for development along the property
adjacent the river. Dangers of increased housing values and consequent gentrification are
strong for Rockford with a large housing stock along its riverbanks.
In final summation, using the river as an economic development technique has the
possibility bettering public access to the river as well as the quality of the water of the
river. Guidelines should be put in place at the same time as the riverine development
plans so as to mitigate some of the problems that may arise. When guidelines are clearly
established, the quality of the river water may have a greater chance of improving as the
land adjacent is redeveloped.
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