• The Housing Crunch in Charlottesville-Albemarle

    Affordable and accessible housing is the Achilles heel of the smart growth movement. The latest demonstration of that fact is a report from the Thomas Jefferson Planning District, authored by researchers at Virginia Techโ€™s Center for Housing Research. As summarized by the Daily Progress: “The Charlottesville area has a ‘severe’ dearth of affordable housing – and the problem is likely to grow worse.”

    According to the report, the region has a shortage of at least 4,200 apartments that are affordable for families earning less than 50 percent of the areaโ€™s median income, or about $28,500.

    The top five jobs in the Charlottesville region – including cashiers, restaurant workers and retail employees – all have an annual average salary of less than $25,000, according to the report.

    In a now-familiar pattern, workers find less expensive housing in outlying areas and drive long distances to work, adding to traffic congestion on the arterials serving the region. Charlottesville’s solution is to add another layer of regulation over the layer of regulation that caused the housing shortage in the first place. The city, reports the newspaper, is seeking authority to ask developers to contribute cash proffers for affordable housing funds.

    Dumb, dumb, dumb. The solution isn’t forcing developers to subsidize “affordable” housing for a handful of lucky low-wage earners, it’s to allow developers more latitude to build housing of whatever type is in demand. That will require allowing more density, more townhouses, more apartment buildings and more condos to the extent supported by market demand. Ideally, these places would be located where roads, utilities and other infrastructure already exist.

    Of course, the conversation will come down to schools. More families mean more school children, and lower-wage earners will mean insufficient tax revenues to cover their costs… as if public schools were a profit center, not a public service.


  • Chippenham Place: The Right Project in the Right Place

    One of the most encouraging development projects in the Richmond region is the recently announced plan to redevelop the dilapidated Cloverleaf Mall in Chesterfield County. Crosland LLC, based in Charlotte, N.C., has purchased the mall from Chesterfield County for $9.2 million. Crosland proposes to raze the old mall by 2008, build 200,000 square feet of commercial space and erect more than 500 residences by 2011. (See the article by the Times Dispatch.)

    Cloverleaf, built in 1972, was one of the region’s first malls but it fell into decline as Chesterfield’s growth frontier pushed south. As with so many malls built in the 1970s, the retail complex had nothing to offer but its newness. It was architecturally undistinguished, and it was surrounded by strip shopping-center dreck, which has outlived its planned obsolescence as well. Rather than integrating with the surrounding community, the mall stood apart from it, separated by vast parking lots, unwalkable roads and physical barriers. Meanwhile, the old, 60s- and 70s-era housing in the region, paragons of early “suburban sprawl,” had failed to create the sense of place, or character, that inspires homeowners to reinvest and upgrade. Instead, the middle class abandoned the area for bigger houses on the development frontier, and they were followed by lower-income residents who couldn’t keep them up.

    Despite its prime location at the intersection of Midlothian Turnpike and the Chippenham Parkway, Cloverleaf has been plagued by the loss of tenants and business traffic. Just since 2000, retail sales have declined from $45.3 million to $11.7 million. Seeing potential for a major re-development project, Chesterfield County acquired the property in 2004 with the aim of stimulating private-sector interest.

    The beauty of this new Chippenham Place project is that it will move 500 people closer to the Richmond New Urban Region’s core. They will be served by existing infrastructure — water, sewer and superb road access. There is no need (I think, but have not confirmed) to build new schools, police stations and fire stations. Although Chesterfield County is preparing an unspecified “economic development package” for Crosfield, anything the County spends is likely to be a fraction of what it would cost to provide infrastructure and services to the huge new projects sprouting along Rt. 288 on the region’s southern growth frontier.

    If Chippenham Place accommodates the population growth of the Richmond region by 500 households, that’s 500 households that the Commonwealth of Virginia doesn’t have to provide new transportation infrastructure for. Question: What does the state transportation plan do to encourage more re-development projects like Chippenham Place? Instead of dumping money on new roads in fast-growth counties in a hamster-in-a-treadmill effort to keep up with new growth, why isn’t the state doing everything it can to bolster revitalization projects all around the state?


  • A New Dynamic In Play in the 2007 Session

    It looks like Gov. Timothy M. Kaine’s growth-control legislation is going nowhere. One day after a Senate committee rejected the Kaine plan, which would give localities power to reject rezoning requests in the absence of adequate transportation infrastructure, a House panel tabled it as well. Republicans seem to determined to press forward with their own package of reforms. As Tim Craig and Amy Gardner report for the Washington Post:

    “Kaine had his opportunity last year, and he didn’t do anything to push it, and the Republicans now have a package,” said Michele B. McQuigg (R-Prince William), chair of a subcommittee of the House Counties, Cities and Towns Committee, which voted not to act on Kaine’s bill. GOP lawmakers still could use Kaine’s bill as a bargaining tool.

    With the GOP-dominated House and Senate working together for the first time in years, an interesting new dynamic appears to be at work in the General Assembly. For years, Democrats have been criticizing Republicans for their failure to devise a comprehensive approach to transportation policy — in effect, a failure to govern. It seemed such a sure-fire recipe for electoral victory that Kaine threw down the gauntlet, setting up the 2007 legislative session as a major issue in the fall House and Senate elections.

    As public policy the GOP package — especially the funding piece — is an abomination, the hideous offspring of the legislative process. But as politics, it just may work.

    First of all, this may be the test that hardens House Speaker William J. Howell, R-Stafford, into a powerful political force. During his first years as House Speaker, Howell was seen as likeable but weak, unable to enforce discipline in his ranks. He was outmaneuvered by Gov. Mark R. Warner in the 2004 tax debate, and he played defense during the transportation debate last year.

    It is evident to me that Howell has grown in confidence and stature. He was the critical player in forging the GOP compromise, bridging the gaps that had divided House and Senate, and he is pulling out all the stops to push it through the legislature. His Senate counterpart, Senate Finance Chair John H. Chichester, R-Northumberland, who was so visible in last year’s confrontation, has been exceedingly quiet — marginalized, dare I say? — this year as other Senators take the lead in making the compromise work.

    The other dynamic is that, for once, its not the Republicans cast in the role of naysayer. House Minority Leader Franklin D. Hall, D-Richmond, is counseling caution. “This plan has sweeping public policy changes in the area of taxation, in the area of land use, in the areas of state-local relationships,” the Post quotes him as saying. “Let’s immediately take this out to the people in an attempt to let the public know what’s in this bill so that they can have a say.” Translation: Whoah, let’s put on the breaks.

    For the moment, the Dems appear to be in a box. If they acquiesce to the GOP package, they lose the big campaign issue they’ve been hoping for this fall. They’ll have nothing. If they oppose it, they deprive the GOP of a legislative victory — but they stand to be accused of sabotaging the best chance in a generation to “solve” the transportation crisis. High stakes indeed.


  • Bacon Speaks!

    I’ll be addressing the Richmond First Club next Thursday (Feb. 1) on the topic of Virginia’s transportation policy. The title: “A Train Wreck for the 21st Century: Dissecting the Transportation Policies of Gov. Kaine and the General Assembly.”

    The meeting will be held at the SunTrust building in downtown Richmond on the 10th floor. The public is invited. However, if you want lunch, you’ll need to contact Allen Trosclair at (804) 564-0630.


  • Clear Thinking at the Legislative Black Caucus

    I may have my disagreements with the Legislative Black Caucus over the Apologizing-for-Slavery issue, but I have to commend the group for clear thinking about transportation funding. According to Michael Hardy with the Times-Dispatch, the Caucus proposed a two-year, $2 billion road-financing plan that relies primarily upon a 10-cent-a-gallon increase in the gas tax, supplemented by $500 million from budget surpluses, an increase in vehicle registration fees and revenues from the tax on auto-insurance premiums.

    It is axiomatic that I oppose dumping more money into Virginia’s transportation system until that system is fixed. However, if you’re going to dump money into a broken system, do in a way that causes the least damage possible. The Black Legislative Caucus plan is vastly preferable to the Republican plan in that (a) it is transparent — for the most part, people are aware how they’re paying the tax and what it goes to, and (b) it is a user-pays tax.

    Del. Kenneth R. Melvin, D-Portsmouth, explained the logic: “If you use the roads, you pay for their construction and maintenance,” he said. The proposal also would capture dollars from out-of-state motorists traveling in Virginia.

    I’ve said it over and over, and I will say it until I’m blue in the face: By increasing the cost of driving in a very transparent way, the gas tax doesn’t just fund new construction: It creates creates a concrete incentive for people to drive less. The impact on driving may be modest, but it beats subsidizing driving, which the GOP plan would do.

    In the long run, as hybrids, electrics and fuel-cells enter the marketplace, the gas tax is not viable. But of all the road-financing schemes on the table, it is the least bad. And it establishes a precedent — the user pays — that could lead to a mileage-based user fee and congestion tolls down the road.


  • The Sins of their Fathers

    I had planned to drop the Apology for Slavery theme — let’s talk about what we can do to improve the lives of all Virginians now instead of wallowing in the past — but the Times-Dispatch published a story yesterday that was so outrageous, I have to respond. Here is the lede paragraph of a story written by Olympia Meola and Pamela Stallsmith:

    Del. Frank D. Hargrove Sr., who recently disparaged blacks and Jews with comments about apologizing for slavery, had a great-grandfather who owned a slave.

    Unbelievable. Where do we begin?

    Let’s start with the “scoop” that Hargrove’s 22-year-old ancestor owned a slave, a 60-year-old woman — a fact revealed by “a search by librarians at The Times-Dispatch and the Library of Virginia.” What does that have to do with anything? Does this fact somehow de-legitimize what Hargrove has to say about apologies for slavery? If so, does it de-legitimize anything that everyone whose ancestors once owned slaves have to say? According to family lore, one of my ancestors, living in Delaware, did own slaves but manumitted them in his will. Does that mean my views carry less weight — four generations after the offense — than the views of someone whose ancestors never owned slaves?

    Even the T-D writers are vague about why it matters. They wrote (my italics):

    Still, the family connection to slaves did not sway the lawmaker’s opinion. He maintains that he will not support a proposed resolution for a state apology for slavery because he did not own any slaves.

    What’s the implication here? That, even though he decries the evils of slavery, Hargrove should be racked with guilt for the actions of a great grandparent? There are people in this country who seriously argue that certain criminals shouldn’t be held fully accountable for their own actions, as in, say, killing someone, on the basis of the He-Was-Depraved-Because-He-Was-Deprived defense. The result: One class of citizens should not be held accountable for crimes they themselves commit, while Del. Hargrove should be morally accountable for an offense that his great grand-father committed.

    Then there’s the notion that Hargrove “disparaged” blacks and Jews. No, he did not “disparage” anyone. The T-D lede implies that he made remarks that were insulting, degrading or invidious. He didn’t do that: He made comments that some blacks and Jews from the opposing political party made a loud protest of finding offensive. You can disagree with the notion that blacks should “get over” slavery, but only someone who uses moral indignation as a political weapon would characterize it as “disparaging” of blacks.

    Hargrove also likened apologizing for slavery akin to the idea of Christians asking Jews to apologize “for killing Christ.” How does that “disparage” Jews? The clear intent of his message was that Christians should, in fact, “get over it,” that the Jews did not owe an apology. Del. Yet David Englin, D-Alexandria, a Jew, misconstrued Hargrove’s statement as to suggest that he was repeating the charge of Jews as Christ Killers — the absolute opposite of Hargrove’s crystal clear meaning.

    Of course, in his era of exquisite political correctness, the matter of historical fact need not even enter the debate. There is not one Christian who reads the Bible or recites the Nicene Creed who would deny that Jesus died at the hands of Pontius Pilate, the Roman procurator of Judea. The slander of Jews as “Christ killers” derives from the fact that the High Priests of the Jerusalem temple arrested Jesus, interrogated him, delivered him to Pontius Pilate and then demanded that the Romans, who held the power of capital punishment, execute him. The early Jews never disputed this account. Within a few decades, as we can deduce from the rhetoric of the early Christian Jews, Pharisaic Jews were characterizing Jesus as a fraud and a sorcerer who had it coming. A few centuries later, the Jewish scholars who compiled the Talmud recorded oral accounts in which Jews within the Pharisaic tradition were quite happy to take full credit for executing Jesus — eliminating the intermediary role of Pontius Pilate altogether!

    The problem (from our perspective) is not that the temple priests were culpable to some degree for Jesus’ death (a historical fact) but that later generations of Christians use the offenses of long-dead priests, who presided over a temple that had been destroyed by the Romans long before, to tar the entire Jewish faith. In other words, the Christians declared the Jews guilty for the sins of their ancestors.

    Hargrove said that’s wrong. In a supreme irony, the T-D now implies that Hargrove is somehow guilty for the sins of his ancestors.


  • The Transportation Tax Panic of 2007

    The first of a series of comments on the Republican Transportation bills in the Virginia General Assembly.

    The Republican majority in the Virginia General Assembly created the Transportation Tax Scam of 2002. It was the wrong plan, with the wrong tax, for a wrong, un-elected, unaccountable Regional Government. This year the Republican majority created the Transportation Tax Panic of 2007 in HB 3202.

    The Tax Panic is supposed to protect the Republican majority in 2007. It marries good reforms (from a Hampton Roads perspective) with the wrong plan, wrong taxes, and wrong, un-elected, unaccountable Regional Government. The wrong is really bad.

    This time the Republicans arenโ€™t letting the peasants vote on the Tax Panic at the polls. They will call it the Great Compromise, pat themselves on the back and expect the voters to be really thankful in November 2007.

    Except, the Tax Panicโ€™s actual solution to transportation in Hampton Roads is the Tax Scam dressed up. Itโ€™s rearranging the deck chairs on the Titanic.

    In 2002, the plan for Hampton Roads was ten transportation projects which could be called pour concrete 1, pour concrete 2, pour concrete 3โ€ฆ. pour concrete 10. (The same kinda plan which addressed and failed for all of Los Angelesโ€™ problems since the 1950s.) In 2002 there were 571 โ€˜congestedโ€™ miles in Hampton Roads. At the end of 20 years, after construction delays, accidents and deaths, there would be 670 โ€˜congestedโ€™ miles. Thatโ€™s an increase of 91 congested miles.

    If six of the old transportation projects are built, how many congested miles will there be in 20 years?

    There is absolutely no indication that this bill will reduce congestion in Hampton Roads. None.

    The new unelected, unaccountable, unchecked or balanced Regional Government, The Hampton Roads Transportation Authority, has the power to impose tolls for congestion management or just for fun, but no quantifiable and achievable goals are set for โ€œThe Authorityโ€. None.

    So, the biggest headache in congestion, the Hampton Roads Bridge Tunnel, is ignored in the Tax Panic bill. A new bridge will be built miles away to dump more traffic, mainly trucks from the Port of Norfolk, 20 miles up on the same road โ€“ I-64. But, no lanes and tubes are added where the bottleneck actually is.

    Ask the Republicans pushing the Tax Panic of 2007:

    โ€ข How many miles of congestion will be reduced each year for the next 20 years? Cite the reference.

    โ€ข What other quantifiable and achievable goals will the unelected, unaccountable, undivided Regional Government, The Authority, have to meet? Cite the reference. Why are these metrics in the bill?

    โ€ข Why do you want to raise taxes and create another layer of government if it doesnโ€™t actually fix the transportation problems across Hampton Roads?

    James Atticus Bowden

  • Details on the Regional Transportation Plans

    The leadership of the House of Delegates has released the details of its regional transportation-funding packages for Northern Virginia and Hampton Roads. You can read the press release and the fact sheets on both regions here.

    I don’t have time this morning to analyze this is any details, so I will make only a couple of quick observations and then turn it over to the piranhas.

    First, I have nothing good to say about the way these plans are funded. They violate the basic maxim that there needs to be a link between how much people pay in taxes/tolls/fees and how much they use the transportation capacity, and when and where they use them. Other than the abusive driver fee, any links between taxes/fees and the use of the roads is negligible.

    However, there are aspects of these packages that save them from being unmitigated disasters:

    Congestion tolling. The legislation allows for tolling (a) to pay for new facilities, and (b) for congestion tolling. At last, the concept of congestion tolling has entered the lexicon of our legislators and has been introduced into legislation. That’s a small breakthrough. The fact that such a tool exists, however, does not mean that it will be employed.

    Performance standards. The Northern Virginia regional plan (but apparently not the Hampton Roads plan) includes this provision: “Projects undertaken by the [Northern Virginia Transportation Authority] must be contract out to private entities and meet performance measure standards. These projects will be determined by the NVTA based on even distribution between regional localities and projects that move the most people or the most commercial traffic in the most cost-effective manner.”

    Wow — funding projects based on cost-effectiveness. How about that? That does represent a breakthrough. …. It also makes you wonder why the same verbiage is not included in the Hampton Roads package. Could it be that certain projects are fore-ordained not to be cost effective?

    Should you be interested in what the legislation says, as opposed to what legislators say it says, go to the bills here:

    House version
    Senate version

    Rail to Dulles. Finally, note this language tucked away in the House bill: “… no agreement or contract to transfer responsibility from an agency or institution of the Commonwealth for control, maintenance, or operation of any toll facility that was operated by such agency or institution of the Commonwealth on July 1, 2006, to any other public or private entity shall be entered into by the Commonwealth or any agency, instrumentality, or political subdivision thereof without prior legislative authorization from the General Assembly.

    In other words, the bill would block the transfer of authority over the Dulles Toll Road to the Metropolitan Washington Airports Authority, scuttling the Kaine administration’s plan for managing the Rail-to-Dulles heavy rail project.


  • Power Play

    In previous posts on this blog, I have developed the theme that Virginia’s energy infrastructure needs to evolve from “Big Grid,” an industrial-wave system of giant power plants and transmission lines, toward a knowledge-wave approach that incorporates (a) “distributed generation,” allowing a greater role for decentralized power sources located close to customers, and (b) variable pricing tariffs that encourage people to conserve.

    Virginia may soon face a critical decision point. Concluding that Virginia’s brief experiment with electric deregulation was a failure, Dominion has suggested that the state re-regulate the company. It wouldn’t be the same kind of regulation as before — the company proposes building in incentives for efficiency and conservation. The ideas sound good, as far as they go. The question is, do they go far enough?

    The Commonwealth doesn’t get many chances to re-think how it wants to structure the electric power industry. It’s really important to get this right. In that light, it’s worth following the controversy over a high-voltage transmission line that Dominion wants to build through the northern piedmont — a classic case of the “Big Grid” approach. The need for electricity is real. If Dominion does nothing, Northern Virginia could face rolling blackouts by 2011. But if it builds the transmission line, the company could destroy incalculable value of farms and estates along the route.

    In my latest column, “Power Play,” I ask if there’s not another way. Electric power is not a subject I know much about, but I did get some help from William W. Berry, former Dominion CEO, who recently served as chairman of ISO New England, a regional organization that makes the market for wholesale electricity. My hopeful conclusion: a combination of conservation measures combined with construction of mid-sized power facilities might buy enough time until solar energy kicks in and transforms the economics of the power industry.

    As one of the earliest champions of electric deregulation, Berry also had some insightful comments about Dominion’s move back to re-regulation. In a word, he’s OK with it — but not because it’s the best thing for Virginia. He simply says that Virginia lacks the political will to create a truly competitive electricity marketplace. That’s a topic for a follow-up column if I have time.


  • The Changing Relationship Between Worker and the Workplace

    Virginia’s transportation crisis is largely a commuting crisis: traffic congestion encountered along the routes, and during the time of day, that people drive between home and work. This crisis is as much an artifact of late 20th-century social arrangements as it is a shortage of road capacity and dysfunctional land use patterns. As long as Virginia has a service-based economy in which most economic activity takes place in centralized places called “offices” at uniform times of day — usually 8:00 to 5:00 — congestion is inevitable.

    Commuting habits arguably have gotten more uniform in recent decades, not less. Back when Virginia had a strong manufacturing sector, factories worked according to different shift schedules than the service sector. I remember living in Martinsville some 25 years ago when the American Furniture Company whistle would blow every 3 p.m. Growing up in Norfolk, I also remember how the streets would fill at 3 p.m. during shift change at the Navy Base. Those off-hour shifts may persist in places, but they are less prevalent than they once were. A large majority of Americans have settled into service-sector hours, crowding the same roads at the same time of day.

    That’s why I harp upon the incipient revolution between worker and workplace made possible by cell phones, wireless laptops, virtual private networks and related technology. We’re seeing the early signs of reversal of the lemming-like rush hour migration. Organizations are becoming more flexible about where their employees work and when. I’ve written about this trend in a couple of places, including WORK magazine here in Richmond, as well as an electronic newsletter I produce for AgilQuest Corporation.

    AgilQuest produces software and systems that measure office utilization and handles the scheduling for office sharing. Office surveys consistently show that the typical office desk is less than 50 percent utilized at any given time. Increasingly, people are spending their time in collaborative sessions in meeting rooms — or they’re not in the main office at all.

    With AgilQuest’s permission, I am republishing three Q&A features I produced for the company’s newsletter, “Network of Space.” The first Q&A featured Mark Dixon, CEO of Regus Corporation, a company that offers hyper-flexible office space, including single cubicles and “hot desks” for people requiring one-man offices for very short periods of time.

    This week’s Q&A features Jim Young, CEO of the RealComm conference company and an apostle of change in the real estate sector. Young, who takes people on intelligence-gathering trips to Europe and the Far East, says that the U.S. commercial real estate industry is a global laggard in adopting new technology. He believes that rising energy prices will accelerate the shift to tele-work and hoteling.

    The implications of this tectonic societal shift both ominous and hopeful. Much of the office space being constructed today may soon become obsolescent. That’s bad news both for the property owners and the local governments that depend upon revenues generated by those properties for their tax base. But it may be good news for commuters. Not only is technology liberating many knowledge workers from the centralized workplace, but organizations are increasingly flexible about when they need to be in the office. Furthermore, visionary developers are providing entirely new categories of office product that cater to the mobile workforce.

    The predictable consequence of these changes is that many people will alter their commuting patterns to avoid peak-period congestion. They have more flexibility than ever before to work at home, at the neighborhood Starbucks, at a client’s office, or in a new-generation tele-work center. Should Virginia ever adopt a regime of congestion pricing, Virginians would have greater flexibility than at any time in their history to alter their commuting behavior.

    But public policy in Virginia has largely overlooked these changes. The state has made a nod to telework with some minor pilot programs. But the big money, as demonstrated by the latest GOP legislative compromise, continues to be funneled into massive road- and transit-building projects funded by taxes instead of tolls. There is minimal interest in congestion pricing. Politicians prattle about building a transportation sector for the 21st century but they employ the top-down, tax-and-spend methods of 20th-century socialism.


  • The MSM, Blogs and the Perpetuation of Misinformation

    Sam Clay and his friends at the Fairfax County library system, compilers of our “Nice & Curious Questions,” column have departed from their usual deep dive into the offbeat, curious and eccentric in Virginia to recount their own bizarre tale. The Washington Post published an article inaccurately implying that library officials were purging their stacks of literary classics to make room for trendier stuff. An outraged reader wrote a post on the National Review blog, and from there, the misinformation disseminated literally around the world.

    In the old days, exacting a correction from the Washington Post would have sufficed to quell the controversy. These days, once the horse is out of the barn… er, the book is out of the library, er, whatever… it is exceedingly difficult to correct the misinformation. The Fairfax library controversy is a fascinating warning about the perils of the Internet. The Post made the original mistake, but at least the mistake was correctable. Once bad information breaks into the blogosphere, it can circulate endlessly.


  • Fan the Flames, Spread the Rebellion

    The Jan. 22, 2007, edition of Bacon’s Rebellion has been published. Don’t miss a single issue —click here to get it delivered free into your inbox.

    Here are the highlights:

    Power Play
    Northern Virginia could face blackouts by 2011. But is it necessary to run a high-voltage transmission line through Virginia’s piedmont to avert them? Many questions remain unanswered.
    by James A. Bacon

    Investing for the New Economy
    Meeting the demands of a globally competitive economy isn’t just a Northern Virginia priority anymore. Look what Harrisonburg. is doing.
    by Doug Koelemay

    A Conservative of Conscience
    Jim Gilmore can win the GOP nomination for president because he embraces the conservative positions that appeal to Republican voters.
    by James Atticus Bowden

    Open Letter to GOP Delegates
    Donโ€™t believe for a minute that raising taxes and fees will help you hold on to your majority. As no new roads will be built for years, raising taxes now only guarantees to alienate voters.
    by Phil Rodokanakis

    Into the Fray
    Media, the Web and a Virginia Library
    by Edwin S. Clay III and Patricia Bangs

    The United States as Margaritaville
    This interview with Jim Young is the second of three Q&As with commercial real estate visionaries exploring the changing relationship between workers and the workplace.
    by James A. Bacon


  • Working the System in Loudoun

    The Washington Post has published a must-read article about the nexus of ties between the Loudoun County Board of Supervisors and local developers. Michael Laris and David Fallis deserve major kudos for the kind of investigative journalism that has become all too rare in Virginia today. The article starts out strong and just gets better:

    Six months after they took office in 2004, members of the Loudoun Board of supervisors demonstrated in a single afternoon their ability to help a friend.

    First, they voted 6 to 3 to boost the number of homes that could be built on the family farm of Dale Polen Myers, a former supervisor who had been instrumental in getting many of them elected. The next month, a builder bought the property from Myers’s family for $12.2 million — four times its assessed value before the zoning Decision, records show., the board

    Next, the board agreed unanimously to authorize the county to purchase a different parcel for $13.5 million, once again helping Myers, who was acting as the real estate agent. That earned Myers and her boss a commission that by industry standards would range from $270,000 to $675,000.

    Such coziness has become routine among some Loudoun officials and a group of politically connected developers, landowners and others in the real estate industry, The Washington Post found in a year-long investigation.

    Conservatives, Republicans and others who believe in small government and free enterprise, please take notice. This is not free enterprise. This is not respecting property rights. This is an example of what happens when government intrudes into the economy. It is no accident that the most dysfunctional areas of the United States economy — health care, education and real estate — are also the most heavily regulated and/or subsidized. It is no accident that the sectors most characterized by “rent seeking” activity (the manipulation of public power for personal, corporate or group benefit) are those very same sectors. And it is no accident that the development/real estate industry is the largest source of campaign contributions in Virginia.

    As long as government has the power to redistribute wealth by favoring one person or group over another, people will seek to manipulate the levers of government to their advantage. That has been true across history and across every civilization advanced enough to have a government. It is human nature.

    The answer is not giving local government more power in the hope that elected officials will wield it wisely. The answer is achieving Fundamental Change in our institutions of local governance that (1) reduce the incentive for rent-seeking behavior and (2) align the legitimate functions of government with the components of human settlement where services are most appropriately delivered.

    Update: It gets worse. Here is the Post’s follow-up article.


  • A Breakthrough or a Breakdown?

    Michael Shear with the Washington Post tells the story of the behind-the-scenes maneuvering of Republican leaders in the General Assembly to overcome their differences and cobble together a compromise transportation “solution.” What comes through very clearly: Fear of retribution at the polls drove the compromise. Writes Shear:

    Shocked by George Allen’s loss in last year’s U.S. Senate race and fearful of losing their majority in the elections this fall, the top lieutenants in the House of Delegates and Senate put aside years of philosophical differences and personal hostilities during closed-door meetings arranged and hosted by Attorney General Robert F. McDonnell (R).

    The resulting legislative package, as outlined in this blog, was a bastardized hybrid of incompatible philosophies. The only good thing I can think to say about the financing piece of the compromise is that it avoids a statewide general tax increase. But if the regional components in Northern Virginia and Hampton Roads are enacted, the deal would pump about $1.1 billion a year, plus $2 billion in bond proceeds, into a broken transportation system. Most of that money would be wasted, and the impetus for fundamental reform would be lost.

    Legislators can respond that other pieces of the package will “fix” the system and ensure that the money is well spent. The land use reforms are a useful step in the right direction, but they are woefully incomplete. The VDOT reforms also are useful, especially the requirements for performance standards, which would prioritize transportation projects that actually mitigate congestion. But so many aspects of the transportation crisis remain unaddressed, as I’ve enumerated in previous posts, that the “fix” will go only skin deep.

    The question now is how Gov. Timothy M. Kaine and his fellow Democrats will respond. There is much in the compromise they don’t like. It won’t take much opposition for the entire contrivance to collapse. But there is political risk: They won’t have much leverage in the 2007 elections if they torpedo the compromise. In a podcast analysis of the compromise on the Bearing Drift blog, J.R. Hoeft and Brian Kirwin suggest that the Dems have no choice but to go along.

    I suspect that they’re right. Gov. Kaine is enough of a realist that he will hold his nose and go along, especially if he can get concessions on two things. One is a measure that would empower local governments to reject rezoning requests that would overload local transportation networks. Second is a measure that would create a fund for smart road projects.

    But passage of the package is far from inevitable. It is the nature of compromises, that there is something in the package for everyone to dislike. It could unravel quickly if a powerful lobby like the home builders digs in its heels. I’m tempted to say that would be the best thing.


  • REBUILDING THE BIG BARN

    Jim Bacon will be staying on top of the “transportation / land use” issue with blow by blow postings. The MainStream Media and those standing for election in November call this “solving Virginiaโ€™s road crisis.” Others call it “the mobility and access crisis” which, along with “the affordable and accessible housing crisis,” have the potential, if not intelligently addressed, to continue the Commonwealthโ€™s citizen on the path to economic, social and environmental Collapse.

    The scope and details of the proposed “road” solutions will change from day to day during the current “short” legislative session. So will the arguments for and against each part of the ghastly omnibus / compromise package. Perhaps what is most useful at this point is a fresh way to present the true nature of the current “solution.”

    Lets try this:

    Suppose everyone in the Commonwealth depends on the Big Barn to shelter their resources and to provide for continued economic prosperity, social stability and environmental sustainability.

    Lets us further assume that everyone agrees the Big Barn is in grave disrepair and if the political leadership of the Commonwealth does not do something they will be thrown out of office come November.

    Upon careful review it is determined that just making the Big Barn bigger will not solve the problem. The Big Barn needs to be better and more resource efficient, not just bigger. The Big Barn needs a new foundation, better structural components and there must be a way to reduce the amount of stuff the Big Barn is expected to shelter for citizens, their enterprises and their institutions.

    The reasons that these Fundamental Changes are necessary are based on the physical laws of barn construction / capacity, the economic laws of cost / availability of resources and democratic reality:

    In a democracy with a market economy it is not sustainable for the Big Barn to only shelter the resources of those at the top of the economic food chain.

    It turns out that the deterioration of the Big Barn has gone unaddressed because fixing it will gore the ox of those who make a big profit from Business-As-Usual. Anyone who puts forward a proposal for Fundamental Change in Big Barn management faces opposition from the special interests that pay for the political process. (See PROOF POSTIVE posting)

    Any Fundamental Change proposals, and the those who make them, are doomed because education of the voters about the realities of the Big Barn have been thwarted by the Business-As-Usual interests.

    In this context we can see how the legislative compromise to solve the mobility and access crisis looks a lot like a wonder cure for the Big Barn.

    The grand compromise package for fixing the Big Barn is:

    Charge all citizens a lot more money regardless of how much stuff they put in the Big Barn โ€“ a pure case of the tragedy of the commons.

    Use taxes, fines and borrowed money to make the Big Barn bigger, using the same materials and the same designs that are now failing.

    Paint the Big Barn a high tech color so it will look really good in November.

    Add a new roof fabricated by the mobile home industry and paid for with the naming rights acquired by a smokeless tobacco product โ€“ in other words, a real public / private partnership.

    Who will profit from the Big Barn repair job? The ones who have been kind enough to provide the bull for fund raising bull roasts.

    Who will get hosed by the Big Barn repair job? In the long term every citizen of the Commonwealth.

    It is very clear that without fixing the underlying problems and addressing the need to cut demand the whole New Big Barn will collapse. But not to worry, it will happen after the November election.

    EMR