Let’s
start in the 1970’s as the benchmark of change altering family, faith and
freedom of today.
Changing
the landscape of our culture has taken decades so stopping the momentum or
finding alternatives will not easy. Let’s briefly review the ‘70’s:
Live: we started to
live further out from urban cores; “nice but not necessary” not practiced;
today, vertical mixed use developments are the modern small town America
located outside of urban cores.
Work: Mom’s and Dad’s
started to both work; today over 50% of mothers and over 50% single parents
with preschool children are employed outside the home; hand held calculators in
the 70’s to iPads now
Shop: Walmart went
national in the 70’s; from the JC Penny catalog and wood floors at Woolworths
to internet shopping
Play: HBO was founded
in 1972 and ESPN in 1979. Today, technology overload. Eyes clued to a screen
rather than play outside.
Learn: Probably 85% of
high school students in the ‘70’s were studying for college as the next step.
College was affordable and students were taught that you would not be
successful if you didn’t go to college. Student loans are in the trillions and
recent graduates can’t find a job.
Energy: In the ‘70’s, we had cheap gas but long lines from the
lack of supply. Gas was
36
cents per gallon before the 1973 oil crisis and jumped to $1.25 per gallon by
the end of the ‘70’s. Today, gas has been over $3.00 per gallon for over
4-years. The oil crisis in the ‘70’s brought energy conservation, solar and
energy related building codes. Not much different now with the same results.
Transportation: V8 to V6 and now
electric cars or cars that will drive you. Mass transit. Bicyclists must wear a
helmet.
Over the past year, I have been thinking
“out of the box” to forecast how the real estate development industry may
change once the economy is back on track. You may think housing is back on
track as the engine of our economy. I believe we are far from that notion.
1. Local governments will be more diligent in directing development patterns
utilizing existing infrastructure facilities i.e. roads, water and sewer.
2. It is only time before the federal government uses incentives for local
governments to force the redevelopment or “urban renewal” of existing urban
core areas.
3. Vertical mixed use projects will become the norm rather than the exception.
If transportation and energy components are included in the plan, the project
will receive density credits.
4. Sustainable projects will have to meet certain standards before moving
forward through the regulatory process.
5. Local government will use eminent domain more as a development tool by directing
the private sector to predisposed land uses. Partnering between developers and
local government may be the next stakeholder alliance.
6. Public facilities and services will be limited to urban core areas.
Government expanding services or facilities beyond an urban limit will not be
common practice.
This is only a short list of
thoughts but the result of the above actions may cause urban gentrification.
Instead of suburban flight of homebuyers with long commutes, we may experience
urban revitalization with families moving closer to employment centers.
Gentrification is the sociocultural change of an area resulting from people
moving back into urban core areas and buying houses in less prosperous areas.
Obviously this will displace homeowners and renters from the area due to rising
housing costs and rents due to re-development, urban renewal or urban
revitalization efforts supported by local government.
Long time residents will be forced to move due to increased property values and
real estate taxes. Lower income residents in these areas will be forced to sell
and move to a more affordable community where ever that may be. As the influx
of middle and upper income wage earners move into neighborhoods experiencing
transformation, the gentrification of the community occurs.
$5.00 per gallon of gas and federal programs will alter local government’s
approval of future development patterns. The result, jobs may have to go to
where the workers are located rather than the workers moving to where the jobs
are located. Job generators will relocate to suburban areas. The result will
make small towns and communities the back-bone of our culture - again.
“Sustainability” is a
reasonable goal but almost impossible for a real estate project to meet.
The last four Presidents have all
supported the conclusions and initiatives outlined at The United Nations
Conference on Environment and Development (UNCED), also called the Earth
Summit, which took place in Rio de Janeiro, Brazil, in June 1992.
I have highlighted certain points of
interest.
President George H. W. Bush
The
President's News Conference in Rio de Janeiro June
13, 1992The
President. “Well, let me first express my thanks and congratulations to
President Collor and the Brazilian people and to all responsible for this
Conference for their hospitality, for their tremendous success in hosting
the Earth summit.
It's
obvious to all who came to Rio that the Brazilians made a special effort to
accommodate so many heads of states and delegates and journalists and
visitors. They managed it flawlessly, and they managed it with grace and
good humor. We've had a very successful visit.We've signed a
climate convention. We've
asked others to join us in presenting action plans for the implementation
of the climate convention.We've
won agreement on forest principles. We found a warm reception among the G -
7 and many developing countries to our Forests for the Future initiative.Many U.S. proposals on oceans and public participation on
the importance of economic of economic instruments and free markets were
included in this mammoth Agenda
21 document and the Rio Declaration.”
President William J.
Clinton
Introduction
The President's Council on Sustainable
Development (PCSD) was established by President Clinton in June 1993 to advise
him on sustainable development and develop "bold, new approaches to
achieve our economic, environmental, and equity goals."
"In the United States, the PCSD was
conceived to formulate recommendations for the implementation of Agenda
21"
Formally established by Executive
Order #12852, the PCSD was administered as a federal advisory committee
under the Federal Advisory Committee Act.
I The President's Council on Sustainable
Development states that -
"In April 1997,
President Clinton asked the council to advise him on: next steps in building a new environmental management system for the
21st century... and policies that foster U.S. leadership on sustainable development internationally. The council was also charged to ensure that social
equity issues are fully integrated..."
” government using the
guidelines outlined in Agenda 21.
President George W. Bush
"Sustainable" means to
create and maintain conditions, under which humans and nature can exist in
productive harmony, that permit fulfilling the social, economic, and other
requirements of present and future generations of Americans...
President George W. Bush
January 24, 2007
(Executive Order
#13423)
Section 2 of the E.O.
directs Federal agencies to implement sustainable practices for:
Energy efficiency and reductions in greenhouse gas emissions.
Use of renewable energy.
Reduction in water consumption intensity.
Acquisition of green products and services.
Pollution prevention, including reduction or elimination of the
use of toxic and hazardous chemicals and materials.
Cost-effective waste prevention and recycling programs.
Increased diversion of solid waste.
Sustainable design/high performance buildings.
Vehicle fleet management, including the use of alternative fuel
vehicles and alternative fuels and the further reduction of petroleum
consumption.
Electronics stewardship.
President Barack H. Obama
President Obama issued Executive
Order #13575 on June 9, 2011.
This executive order established THE
WHITE HOUSE RURAL COUNCIL and in part:
Executive Order
By the authority vested in me as
President by the Constitution and the laws of the United States of America and
in order to enhance Federal engagement
with rural communities, it is hereby ordered as follows:
Section
1. Policy. 16% of the American population lives in rural counties. Strong, sustainable rural communities are essential to winning the future and ensuring American
competitiveness in the years ahead.
These communities supply our food,
fiber, and energy, safeguard our natural resources, and are essential in the
development of science and innovation. Though rural communities face numerous
challenges, they also present enormous economic potential.
The Federal Government has an important role to play in
order to expand access to the capital necessary for economic growth, promote
innovation, improve access to health care and education, and expand outdoor
recreational activities on public lands.
To enhance the Federal Government's efforts to address the needs of rural America, this order
establishes a council to better coordinate Federal programs and maximize the impact of Federal investment to promote economic
prosperity and quality of life in our rural communities.
And in part: (d)
identify and facilitate rural economic opportunities associated with energy
development, outdoor recreation, and other conservation related activities.
What is Agenda 21?
“This largest-ever world meeting brought Heads of State and
government officials together with international organizations and
representatives of non-government organizations (NGOs) from around the world.
A 700 page global plan of action called Agenda 21 was produced as a result of
the Earth Summit: it represents the consensus reached by 178 States on how we
can secure our future.
Agenda 21 is like a blueprint for global partnership aiming
at a high quality environment and a healthy economy for all peoples of the
planet.
Agenda 21 addresses the critical issues we face as a global community:
continuing damage to ecosystems, the worsening of poverty, hunger and ill
health, increasing world population and illiteracy.
Agenda 21 is composed of 40 chapters that identify each
challenge and propose simple realistic solutions towards sustainable
development which is: meeting the needs of the present without compromising the
ability of future generations to meet their own needs.
Around the world, governments, businesses, non-governmental and other
organizations are already putting the ideas from Agenda 21 to work. It is
crucial to maintain the momentum of the Rio process and implement the
agreements that were reached. This task will require not only the leadership
and funding of governments and business, but also the vision, cooperation and
work of every citizen. Sustainable
development cannot be achieved without all sectors of society working
together.”
Permission
granted to use the illustration by: International Council
for Local Environmental Initiatives (ICLEI)
The
Local Agenda 21 Planning Guide:
An
Introduction to Sustainable Development Planning
ICLEI-funded city
projects promote “sustainability.” They draw their inspiration from the Rio
Earth Summit, the 1992 United Nations environment conference held in Brazil.
Communities that adopt Agenda 21 projects get ICLEI’s help in creating
“sustainability inventories” and they pass resolutions affirming that they will
pursue the “three E’s” of sustainable development:
Environment
Economy
Equality
Their
explanation of each of these categories is much different than our real estate
development approach which is controlled at the local level within a fragmented
industry.
In many respects, the above overview
of Agenda 21 outlines reasonable and attainable goals. However, it is
important to read the fine print! It is my intent to clearly illustrate how
the UN, our federal regulations and federal funding have altered the lens in
which real estate development is viewed. Is it reversible? I would say YES.
In fact, the basic notion of freedom
is in our land and land ownership. If our vision of freedom is altered and
Agenda 21 initiatives continue to be implemented our basic rights will forever
be violated.
We must become aware of the Agenda
21 initiatives implemented at the LOCAL LEVEL ---- where the real estate
development industry is directly affected and quickly changed!
Introduction
The President's Council on Sustainable Development (PCSD) was established by
President Clinton in June 1993 to advise him on sustainable development and
develop "bold, new approaches to achieve our economic, environmental, and
equity goals." Formally established by Executive Order 12852, the PCSD was
administered as a federal advisory committee under the Federal Advisory
Committee Act.
Mission
The Mission of the PCSD was to:
- Forge
consensus on Policy by bringing together diverse interests to identify and
develop innovative economic, environmental and social policies and
strategies;
- Demonstrate
Implementation of policy that fosters sustainable development by working
with diverse interests to identify and demonstrate implementation of
sustainable development;
- Get
the word out about sustainable development; and
- Evaluate
and report on progress by recommending national, community, and enterprise
level frameworks for tracking sustainable development.
National Goals
The following goals express the shared aspirations of the President's Council
on Sustainable Development. They are truly interdependent and flow from the Council's understanding that it is
essential to seek economic prosperity, environmental protection, and social
equity together.
Goal 1: Health And The Environment
Ensure that every person enjoys the benefits of clean air, clean water,
and a healthy environment at home, at work, and at play.
Goal 2: Economic Prosperity
Sustain a healthy U.S. economy that grows sufficiently to create meaningful
jobs, reduce poverty, and provide the opportunity for a high quality of life
for all in an increasingly competitive world.
Goal 3: Equity
Ensure that all Americans are afforded justice and have the opportunity to
achieve economic, environmental, and social well-being.
Goal 4: Conservation Of Nature
Use, conserve, protect, and restore
natural resources -- land, air, water, and biodiversity
(note
– see map posted) -- in ways that help ensure long-term social, economic, and
environmental benefits for ourselves and future generations.
Goal 5: Stewardship
Create a widely held ethic of stewardship that strongly encourages individuals,
institutions, and corporations to take full responsibility for the economic,
environmental, and social consequences of their actions.
Goal 6: Sustainable Communities
Encourage people to work together to create healthy communities where
natural and historic resources are preserved, jobs are available, sprawl is
contained, neighborhoods are secure, education is lifelong, transportation and
health care are accessible, and all citizens have opportunities to improve
the quality of their lives.
Goal 7: Civic Engagement
Create full opportunity for citizens, businesses, and communities to
participate in and influence the natural resource, environmental, and economic
decisions that affect them.
Goal 8: Population
Move toward stabilization of U.S.
population.
Goal 9: International Responsibility
Take a leadership role in the development and implementation of global sustainable development policies,
standards of conduct, and trade and foreign policies that further the
achievement of sustainability.
Goal 10: Education
Ensure that all Americans have equal access to education and lifelong learning
opportunities that will prepare them for meaningful work, a high quality of
life, and an understanding of the concepts involved in sustainable development.
CONCLUSION:
Fast
forward 20-years from when The
President's Council on Sustainable Development (PCSD) was established.
Has the real estate development
industry been guided by regulations toward the goals created by the UN and
followed by the last four Presidents? YES.
The problem is government’s momentum
on implementing regulations design to save government jobs but destroy the real
estate industry – among many other industries.
The EPA has not and will not stop implementing
regulations that control industries because they have a mandate to follow. We
have to stop the federal government’s momentum on many fronts and dial back
regulations before there is no return. Repealing regulations is almost
impossible to do but a true leader can accomplish it by downsizing the federal
government.
