The Economic Reset: Is Minnesota’s Future at Risk?

Housing and employment trends only underline the current reset of the economy—and it will be reflected in how our region and state grow. Should Minnesotans be worried?

On the housing side, check out the numbers from MPR’s MinnEcon blog.

The article points out that housing isn’t pulling the economy out of the recession. As foreclosures continue, adjustable ARMs this year will lead to even more, hurting developing suburbs and exurbs the most.

Calculated Risk compares housing starts and unemployment in this chart.

On the employment side, Calculated Risk's article points out that employment is dragging because there is a mismatch between workers' skills and employers' needs. It’s unlikely that there will be re-employment with anything close to the same pay, even when job growth returns.

The implications are that a lot of people in the market for housing won’t be able to buy homes at all (instead they'll rent), and the homes they can buy are not going to be big houses on big lots out on the urbanizing edge. Even with the discounting of prices in the market, housing will shift to more rentals and smaller homes because of income considerations.

What effect will this reset have on a region that continues to make substantial investments in sewers and roads based on a plan to locate 70% of its growth out on the edge?

New Business or Modern Planning? Can't We Have it All?

Apparently not, at least when it comes to Crate & Barrel's chic home-furnishing brand, CB2. The new Uptown store, which will begin building this spring, is getting under the skin of urban planners because of the retail spot's poor land use. The building plan is a one-story store—24 feet high.

Calhoun Square's planning committee calls for buildings to build multistory buildings, but due to a "loophole" there's nothing requiring it.

Is CB2 to blame?

Read the Star Tribune’s report on the story.

What Does Meaningful Living Mean for Developers?

Information from Tyler Cowen’s e-book, “The Great Stagnation,” has people talking. The New York Times editorial, “The Experience Economy” by David Brooks, calls attention to highlights from the book and discusses the shift from acquiring wealth to acquiring meaning in our culture. It touches on what it means for the economy and certainly should capture the attention of developers who are planning for what the future housing consumer is going to more likely search out.

Fewer Parking Spaces = Less Auto Emissions

Simple math, right?

A new study from Scientific American studies European cities and how reducing parking spots, in one way or another, led to a significant drop in the number of miles driven in those cities—with people choosing biking and public transit as more convenient ways of commuting.

And according to Donald Shoup, a professor of urban planning at the University of California, Los Angeles, the same thing could work in America.

Would making parking difficult really result in less driving in the US? Or just more road-rage?

Read the Time article online.

Green Model Home Gives Virtual Tour

If you're interested in green remodeling and are looking for market-ready, affordable solutions to achieve those goals, check out the BUILDER Concept Home 2011 virtual tour.

The BUILDER Concept Home 2011 virtual tour precisely replicates the 2,667-square-foot suburban house designed and built by KB Home in partnership with lifestyle expert Martha Stewart that achieved a net-zero energy balance and a LEED for Homes Platinum rating from the USGBC.

In the virtual tour you can personalize your route through the house, jump around the floor plan and return as often and for as long as you like.

Take the virtual tour.

Downtown Minneapolis Seems to be Thriving

The Downtown Council's annual meeting earlier in February included these optimistic highlights about downtown:

• Hospitality and mass transit usage were up from last year.
• Commercial real estate vacancy rates declined.
• Crime and homelessness is down (thanks, in part to new DID liaisons).
• Businesses are on the rebound and employers are hiring.
• The arts-and-entertainment industries are booming.

Things are looking up for Minneapolis. Read the Star Tribune article online.

Celebrate Life in the Twin Cities--Watch This Video

Why We're Here: Twin Cities from Seven and Sixty Productions on Vimeo.

LandOf.org wants to preserve what we have and even make it better by planning what's next for Minnesota. Get involved--sign up!

The Aging of America

This year baby boomers began turning 65.

In 2010 there were about 41,155,000 people age 65 and older in America. In 2050, there is expected to be 87,129,000 people age 65 and older. See the interactive graphic at NYTimes.com.

What does this mean for development patterns?

Smarter Transportation Priorities = More Jobs

Read the new report by Smart Growth America on how smart transportation priorities can create jobs. For example, did you know public transportation projects get 31% more jobs per dollar than building new roads and bridges? And road repair and maintenance gets 16% more jobs per dollar than new roads and bridges?

Download the report, "Recent Lessons from the Stimulus: Transportation Funding and Job Creation."

Uptown MoZaic Making Some Upset

A new project is starting in Uptown—and causing a bit of a stir.

MoZaic, a 10-story commercial building, is being developed by Ackerman Group in the heart of Uptown, in the area of Lagoon Cinema and the former Walker Library.

The $45 million project will be part high-end offices, restaurants and public plaza—and six levels of parking. While obvious pros are that the building will add offices to attract more businesses and jobs—as well as connect the area to the Midtown Greenway and bike trail—we’ve got to stop and ask ourselves if Uptown can really handle the amount of traffic that comes along with a six-level parking ramp, and what it will do to pedestrian-friendliness.

Not to mention how an over-sized glass building will look in the Uptown neighborhood.

Supporters of MoZaic say that the area is in need of parking and office space is vital for future jobs.

Is this the answer?

Read the Star Tribune article online. >>

Keeping Money Close to Home

Locally owned businesses tend to buy their supplies close to home and spend their profits close to home instead of repatriating them back to out-of-region corporate headquarters and into dividends paid mostly outside the region. Buying more locally helps to plug this kind of economic “leakage” from the region.

A new study from Civic Economics ranks metros by the vitality of their independent businesses.

In comparison to other similarly sized regions, Twin Cities does not do well. Even in the upper Midwest, the region with the worst ranking overall, we fall into the middle. Some of the poor showing may reflect the fact that Target is home-grown but considered big box retail and counted against local business.

Still, the report suggests we are up to our wallets in big boxes that siphon cash out of region.