1. John Paul Finan Urban Studies Master’s Candidate, Fall 2011 Copyright 2011 by John Paul L. Finan

3. Sources: Marose, 1975; Milwaukee Journal, November 13, 1975; Milwaukee Sentinel, November 17, 1975.

4. The Rise of Local Development Effort in the Milwaukee-Racine Area Source: Author’s calculations

5. Research Question:

6. Common for local incentive studies: Property Values = Controls + Local Policy Common for local development studies: Local Development = Controls + Local Tax Rate

7. Common for local incentive studies: Property Values = Controls + Local Policy Common for local development studies: Local Development = Controls + Local Tax Rate Local Development = Controls + Local Policy

8.  Development Levels: Manufacturing  Jobs  Value Added Non-retail Services  Jobs  Receipts Retail  Jobs  Sales  Development Efforts Cumulative time a CDA has been active Cumulative amount spent on tax increment financed infrastructure

9. Sources: Milwaukee Sentinel October 14, 1994; Milwaukee Sentinel June 18, 1973; Shorewood’s Community Development Authority: promoting and planning local development. … typical result of CDA recommendations:

10. Source: Daykin (1994).

11.  Detroit Model Periods TIF has existed Periods a DDA has existed Property Tax Abatements Industrial Revenue Bonds  Milwaukee Model Per capita TIF spend by industry category Periods an active CDA/RA has existed N/A (not used in WI) Data on WI IRBs not available 1/6 th the size of TIF Effectively even less Very poor reporting Very little media

12.  All measures of local development came from the Economic Census Years 1977, 1982, 1987, 1992: Hard Copy Only Years 1997, 2002, and 2007: Available for Download  Minimum Sizes Incorporated Places (Cities and Villages): 5,000 Unincorporated Towns: 10,000 Total of 55 communities were large enough for 3 or more periods

13.  Structural National Economic Structure  Cyclical National Unemployment Rate  Local Percent African American Housing Age Housing Density Violent Crime Rate

14. Manufacturing Value Added, Selected Cities

15. CDA Inter- actions TIF Inter- actions TIF CDA 1% increase in TIF: 238 fewer jobs $5.6 million additional value added TIF more effective for jobs in denser places, more effective for value in higher crime places 1% increase in CDA time: 2,801 more jobs $1.4 million less value added Difficult to conclude that CDAs are the “silver bullet”

16.  12 relationships tested in total 9 significant  4 positive  All CDA variables  5 negative  Average cum. TIF spending, 2007: $1,689. Milwaukee: $637 Racine:$1,139 Grafton:$4,339 Hartland:$3,547 Sussex:$3,159

17.  Are overall levels of economic development in the Milwaukee Racine metropolitan area affected by municipal economic development efforts? Regarding TIF: maybe, but not positively! Regarding CDAs: apparently yes, and in a positive way which needs more examination.

18. Abravanel, M., Pindus, N., & Theodus, B. (2010). Evaluating community and economic development programs: A literature review to inform evaluation of the New Markets Tax Credit Program. Washington, D.C.: The Urban Institute Metropolitan Housing and Communities Policy Center. Daykin, T. October 7, 1994. “Industrial parks Moving Forward”. Milwaukee Sentinel, p. 1D. Marose, R. (November 5, 1975). “Tax Increment Financing Seen Spur to City Growth.” Milwaukee Sentinel, p. 5. Milwaukee Journal, November 13, 1975. “Downtown aid bill signed by Governor.” Milwaukee Journal, p. 1. Milwaukee Sentinel, November 17, 1975. “Renewal Spur” [editorial]. Milwaukee Sentinel, p. 18. Milwaukee Sentinel. June 18, 1973 “TIF Districts approved by Waukesha Council.” Milwaukee Sentinel, p. 4. Milwaukee Sentinel. October 14, 1994. “Business strip upgrade backed.” Milwaukee Sentinel, p. 6A.