Urban Advantage

A task force seeks to bring focus to sprawling state tax incentives

Editorial published in the Akron Beacon Journal | Friday, July 10, 2009

The “greenfield” option, sometimes referred to as the “cornfield” alternative, the lure of open land, fuels new development in affluent suburbs. Among the forces contributing to costly suburban sprawl are state tax incentives, inducements originally intended to spur redevelopment in distressed urban areas. Refocusing and simplifying the state incentives are not the important goals of anew Ohio Cities Task Force.

The group of state legislators, mayors (among them Don Plusquellic of Akron), planners and business and regional development officials has until Sept. 30 to report. State Rep. Mike Foley, the task force chairman and a Cleveland Democrat, is correct to insist on a re-examination of the public policy reasons behind incentives, paying much closer attention to the advantages of existing public utilities and infrastructure, and saving energy.

The creative reuse of urban areas (the so-called “brownfields” option) plays to the powerful role cities havin in driving economic growth across entire regions. With infrastructure in place and a ready work force, urban redevelopment makes better economic sense in the long run. Cities are energy efficient, with shorter commutes and easier access to mass transit. Urban development preservers open green space.

That said, the task force faces obstacles in pursuing needed changes. Gaining a consensus from members representing suburban interests will be difficult, suburban budgets increasingly dependent on tax revenue from commercial and industrial development.

A good place to look for guidance is the Regional Prosperity Initiative, which is working on revenue-sharing and coordinated land-use planning for 16 counties in Northeast Ohio. The effort is funded by the Northeast Ohio Mayors & City Managers Association, the Fund for Our Economic Future and other philanthropic groups. The result being sought meshes will with the focus of the statewide group: Re-align economic incentives to benefit the whole.