BALANCING THE ECONOMY AND THE ENVIRONMENT IN DEVELOPING THE LONG BEACH SUPERBLOCK

Several recent issues facing the City of Long Beach illustrate the continual tension between economic development and the enjoyment of environmental and other amenities. The Superblock hotel, the west end McDonald's, Chauncy's Bar, and the incinerator have all produced heated battles.

Similar struggles have been fought throughout the metropolitan region and the nation over the past thirty years. Redevelopment proposals for Times Square, Downtown Brooklyn, The Coliseum, Riverside South, and the West Side Highway were each delayed by conflict for more than 20 years, perpetuating blight and suboptimal uses, and delaying the creation of jobs, even as the metro area lost 660,000 jobs in the last recession. Nationally, battles over mining near national parks, logging in Oregon, emissions of air pollutants, global warming, and depleted fishing areas represent just a few illustrations of ongoing tensions between the economy and the environment.

Proponents of alternatives have offered many valid arguments on behalf of their causes. Economic development can create jobs for worthy individuals needing to support their families, generate tax revenues which can reduce burdens placed upon the rest of us, enhance the vitality of our city, offer consumers and tourists more choices, and allow investors who have risked their money to reap rewards. On the other hand, development often creates congestion, noise, and air pollution. Construction precludes use of the land for a park, which allows us to enjoy more natural surroundings and to pursue recreational activities without driving long distances.

Theoretically, our elected representatives, should balance these competing interests in a manner most suited to the welfare of their constituents. Failure to do so could cause them to get thrown out of office. However, representative democracy does not always produce the best outcomes.

Throughout all levels of government campaign contributions and other favors from interests who stand to make huge sums of money can overwhelm the interests of the average citizen. On the other hand, a project might win out because it produces small benefits for many people despite the fact that it might cause enormous distress for some members of a community--resulting in "tyranny of the majority". In addition, the interest of our children's children may not be adequately represented by politicians seeking to win the next election. Furthermore, as in the case of the West End McDonald's, existing zoning laws and other statutes, rather than the community's wishes, may determine outcomes. Finally, representatives get elected for a wide variety of reasons, and thus their votes on a specific project may not be consistent with the will of the community.

Recent legislation, executive orders, and judicial decisions at the state and federal levels mandate "cost benefit" analyses to resolve these difficulties. Cost benefit analyses translate advantages and disadvantages into a common denominator--dollars and cents--and then present a formal tally. Dollar values are derived through a variety of techniques ranging from carefully worded survey questions to statistical analyses of changes in property values around comparable developments.

A crude cost benefit analysis comparing a hotel and a park might look something like this

DISCOUNTED PRESENT VALUES

These numbers are merely illustrative, representing slightly educated guesses regarding benefits to the citizens of Long Beach, excluding gains to outsiders. These estimates can be vastly improved through surveys, detailed financial projections, and inferences from existing studies. Perhaps a more careful study would show that the costs arising from congestion, noise and air pollution generated by the hotel, and the benefits from recreation, are far greater to the people of Long Beach than those estimated above, tipping the balance in favor of a park.

In any case such a format can permit a more rational, more informed discussion of the issues as well as more just and beneficial results than the emotional rage and political machinations that typically determine the outcomes of such controversies. Virtually every choice has benefits and costs. This framework can help us to make them explicit, and to better resolve differences. Long Beach can lead the way in utilizing these modern tools, and in setting an example for other communities.