Hidden Regulatory costs of Land- Use Planning and Growth Management Samuel R. Staley, Ph.D. DeVoe L. Moore Center Florida State University e. Presented at the American Dream Coalition annual conference, November 7, 2015, Austin, Texas

What Uber tells us about the failure of local regulation Uber’s market capitalization: $40-$50 billion  Revenues on $2 billion City-by-city fight to operate legally Regulation choked competition and innovation  Local regulations prevent entry based comprehensive regulation on the industry Market capitalization represents the potential un- monetized market value in the personal transportation market caused by local regulation 3/9/2016Hidden Costs of Land Use Regulation 2

Shopping Center Permitting Study 3/9/2016Hidden Costs of Land Use Regulation 3

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3/9/2016Hidden Costs of Land Use Regulation 5 A Tower’s Tale: Into the Abyss

A Case Study 3/9/2016Hidden Costs of Land Use Regulation 6

Steps required to secure occupancy permit: 1.First contact 2.Land use compliance certificate 3.Concurrency application 4.Natural Features Inventory 5.Submission of Site Plan 6.DRC meeting 7.Site plan review approval 8.Environmental management permit 9.Building permit application 10.Certificate of occupancy 3/9/2016Hidden Costs of Land Use Regulation 7 What is the purpose of regulation? Nearly 2 years

Implications of uncertainty in the regulatory process Only “big boys” can play Lower overall investment Higher costs (lower quality) Local firms with connections to local government officials have advantage  Cronyism None of this is visible! 3/9/2016Hidden Costs of Land Use Regulation 8

A way out of the abyss? Ideal: Back government out of regulating land use  Anarchy?  The case of Houston  Virtually impossible to pull local governments back Exception: form-based codes Second best:  Remove discretion through transparent administration  Tie administrative decisions to core principles Focus on what people really care about: imacts 3/9/2016Hidden Costs of Land Use Regulation 9

Changing the discussion about regulation 3/9/2016Hidden Costs of Land Use Regulation 10

Where do we go from here? Focus on the long term Focus on equity impacts Educate activists Regulatory mapping studies Constructive engagement with elected officials and regulators 3/9/2016Hidden Costs of Land Use Regulation 11