An economic perspective on life in Ames: a tragicomic discourse Peter F. Orazem April 20, 2009

Hobby: Research on the Ames Economy

Hobby: Comedy Hobby: Research on the Ames Economy

IowaStory Total Nonfarm2.3%<3.3% Total Private2.0%<6.9% Goods Producing-8.6%<22.2% Service-Providing5.3%>0.7% Private Service Providing5.6%>2.9% Government4.2%>-1.5% Federal Government-9.8%<10.0% State Government2.4%>-4.9% Local Government6.7%= A comparison of Story County and Iowa Employment Growth by Broad Industry Category, January 2000 – January 2009 Source: Iowa Workforce Development Notes: 9 of the 13 largest employers in Ames are in govt./nonprofit. U.S. added 4.1% employment over the period

Ames Should Grow Faster than Iowa Average Urban County Adjacent to Metro Contains Interstate Contains a Research I University

Suitable comparisons Counties in the Des Moines Metro area Midwestern counties with Research 1 Universities

Source: Liesl Eathington, SETA Boone 71% Jasper 49% Story 156% Polk 159% Dallas 266% Madison 87% Marion 111% Warren 186% AGGREGATE INCOME GROWTH,

Source: Liesl Eathington, SETA Boone 28% Jasper 12% Story 38% Polk 42% Dallas 88% Madison 45% Marion 24% Warren 48% AGGREGATE INCOME GROWTH,

Source: Liesl Eathington, SETA Boone 42% Jasper 14% Story 105% Polk 114% Dallas 252% Madison 55% Marion 108% Warren 124% AGGREGATE EMPLOYMENT GROWTH,

Source: Liesl Eathington, SETA Boone 26% Jasper 4% Story 18% Polk 27% Dallas 100% Madison 28% Marion 29% Warren 22% AGGREGATE EMPLOYMENT GROWTH,

1990

Economic Expansion in the Des Moines Metro is moving farther away from Ames Ames growing appreciably slower after 1990

Suitable comparisons Counties in the Des Moines Metro area Midwestern counties with Research 1 Universities

1990

Iowa vs Iowa State We should use the same ‘slow growth’ strategy they use in Iowa City

SUMMARY INFORMATION ON GROWTH

Conclusions Ames is growing more slowly than almost any comparable community Prospects are worse in the future Slow growth has a cost Loss of 500 students from Ames schools Loss of entertainment options in Ames Loss of retail options in Ames Ames may be less appealing to nonresident students Ames cannot help employ spouses

Conclusions Ames is growing more slowly than almost any comparable community Prospects are worse in the future Slow growth has a cost Loss of 500 students from Ames schools Loss of entertainment options in Ames Loss of retail options in Ames Ames may be less appealing to nonresident students Ames cannot help employ spouses To attract new investment, Ames has to be more welcoming than other communities in the Des Moines Metro Ames cannot afford to retard the growth of its existing employers

Does slow growth save the environment? Where do we work? Where do we shop?

Eathington, Liesl. “Characteristics of Growth and Change in Iowa’s Workforce: Issues for Families and Communities” % working outside the county Story county 16.4% 20.3% Ames 13.9% 18.5%

2000: the year real aggregate sales peaked in Ames

Shopping in Ames is an inferior good Local option sales tax as a source of local public amenities?

Source: Liesl Eathington, 2005 Retail Trade Analysis Reports for Ames,Iowa AMES SALES ARE LOW RELATIVE TO POTENTIAL SALES BASED ON POPULATION AND INCOME STATE NORM

Ames business climate is not attracting or retaining investors

Do regulations discourage investors?

Iowa State vs Kansas Why does Lawrence Kansas have such a great downtown compared to Ames?

Do Ames Regulations on Land Use Make Things Better or Worse?

Land Use Policy Ames has stressed “village development” using high density housing and mixing businesses and homes to make walkable neighborhoods to prevent sprawl. Note that in many cities, the “village” would be the size of Ames.

Original Plan for Somerset Development Northridge 414 homes Bloomington Heights Lots of houses

In places with cheap land…. Families don’t want to raise their children next door to a bar They want a house with a yard

Bloomington Heights and Northridge represent the fastest growing area in the Gilbert school district

If we select priority growth areas correctly, shouldn’t they grow more rapidly?

Southwest Growth Priority Area Ames Land Use Plan Priority Growth Areas U.S. 30 South Dakota Ontario

If Ames wants to maintain student numbers, Ames needs to… Add jobs for young families Have housing that young families want ….not Potemkin apartment complexes