A blog for better streets and public spaces in Portland, Maine.
Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Thursday, July 26, 2012

Press Herald: Portland car registrations down 24% since 2004, even as population increases

For the past week, Portland Press Herald reporter Tom Bell has been researching a story on Portland's declining rates of car ownership. The story ran in today's paper, and even I thought that its findings were surprising: the number of registered cars in the city has fallen, Bell found, by 24% in the last 8 years.

And, a corollary: because Portland one of the few places in New England that people can live without the hassles and expenses of car ownership, it's becoming an increasingly attractive as a place to move to: "the city's apartment vacancy rate of 2.5 percent was tied with Minneapolis as the nation's second lowest," writes Bell, "behind only New York City, according to a survey by the National Association of Realtors."

This is a trend we've been hearing about on the national level for quite some time, and particularly where my generation is concerned. But what Tom found locally was particularly striking. Even before the Great Recession began, the number of registered passenger vehicles was declining steadily, even as the city's population has been on the rise:

Source: Portland Press Herald

Bell's article profiles a few Portlanders who have gotten rid of their cars in recent years and don't regret it. They cite the many hassles of car ownership: onerous paperwork, the expense, and the deleterious effects that cars have on the urban landscape and the environment in general. But the cost factor seems to be the most important one. The American Automobile Association estimates that owning a car costs, on average, roughly $9,000 every year. So getting rid of a car can provide a huge boost in a household's disposable income. I personally don't think that it's been much of a coincidence that Portland has gained dozens of new neighborhood-oriented businesses and restaurants in this same 8-year period that car ownership has fallen off a cliff: without the hassles and expenses of babysitting cars, we have more time and money to spend right here in the city. Bell's story alludes to this phenomenon as well:
"The decline of car ownership presents opportunities for the city's economy. Its high population density, mix of services and retail stores, access to public transportation, car sharing services and extensive bicycle network have made it not only possible to live without a car but made the city a magnet for those who want to."
And as more car-free households move here, more businesses will be able to spring up to serve their needs in the neighborhoods where they live. It's a virtuous cycle that's leading us to a more vibrant, prosperous city.

This is a positive trend. But it's happening in spite of the city's housing and transportation policies, which are still focused overwhelmingly on building cheap or free parking.

In the same 8-year period that car ownership went down 24%, the City of Portland sunk millions of dollars into tax-subsidized parking garages in Bayside and the Eastern Waterfront district, while public bus services, which are still frustratingly meager, haven't received any new investments from city government. And in spite of our housing shortages, it's still largely illegal for developers to build new homes without expensive parking spaces; every single "affordable" housing development built by the city's nonprofit developers in recent years has been forced to include expensive and little-used parking garages.

People want to live in Portland without worrying about automobile ownership. The City ought to let them, instead of forcing them to pay exorbitantly for roads and parking we don't use.

Friday, April 22, 2011

Tea Party Pity Party

Here's an entertaining story in today's Portland Press Herald:

PORTLAND - Eric Cianchette plans to sell the Maine Wharf on the city's central waterfront, saying he's tired of trying to come up with a mixed-use development plan that Portland officials will approve.

"I remember my father telling me, 'You can't just go through life saying what you don't want. At some point, you have to tell people what you do want,"' Cianchette said, and city officials "really don't want anything."
Eric is wrong - just like he was wrong about the inflated real-estate value of the wharf when he was suckered into buying it in 2004.

City officials most certainly do know what they want to have on our waterfront. They want successful marine-oriented businesses. They want a prosperous fishery. They want wharf buildings and businesses that take the fullest advantage of Portland's valuable deep-water harbor.

These kinds of businesses aren't easy to grow. They're challenging. They demand smart entrepreneurs who can think creatively.

By his own self-pitying words in this article, I can come to only one conclusion: Eric Cianchette isn't one of those creative businesspeople.

He bought a wharf. He proposed a formulaic, played-out business model instead of doing something challenging and entrepreneurial. And then he got fleeced when the real estate bubble popped. And now - he's blaming City Hall for his problems?

Give.
Me.
A.
Break.

I'm not a hard-assed business guru, but if I were, I'd probably say that this guy needs to stop looking for sympathy, and start looking for success.

There's a lot in common between Eric Cianchette's super sad story and the whole Tea Party zeitgeist of economic frustration. They're all fond of blaming the government. But when I look at those guys, I see a whole lot of failures who are bitterly trying to pin their shortcomings on politicians, instead of owning up to the pathetic reality of their circumstances.

Take, for instance, T.P. Governor LePage's resigning PR flack, Dan Demeritt, a man who made hay by defending businesses against "government regulation," only to succumb to bigger businesses when banks foreclosed on a number of his rental properties earlier this month.

And the Tea Party isn't just failing in business: it's also failing in governance. Just like Eric Cianchette's luxury hotel, the Governor's proposals are going nowhere fast. And true to form, even though he's the Governor now, the government's chief executive, he is STILL blaming the government: "I went on vacation last week because I had nothing to do," the Governor said last week at a Chamber of Commerce speech reported by the Sun-Journal's Steve Mistler. "Because I'm waiting. I'm waiting for legislation. I cannot do anything until the Legislature acts."

These are your tax dollars at work: a vicious cycle of finger-pointing. Who needs leadership when you've got scapegoats?

These guys act as though they hate government. But they need the government more than anyone. If the government weren't there, whom could they blame for their failures? Nobody but themselves.

The bottom line is this: business in Maine - business anywhere - can't thrive until losers like these guys get out of the way. But for the time being, at least Eric Cianchette is getting out of Portland's waterfront.