An economic perspective on life in Ames: a tragicomic discourse

Peter F. OrazemApril 20, 2009

Hobby: Research on the Ames Economy

Hobby: ComedyHobby: Research on the Ames

Economy

Iowa Story

Total Nonfarm 2.3% < 3.3%

Total Private 2.0% < 6.9%

Goods Producing -8.6% < 22.2%

Service-Providing 5.3% > 0.7%

Private Service Providing 5.6% > 2.9%

Government 4.2% > -1.5%

Federal Government -9.8% < 10.0%

State Government 2.4% > -4.9%

Local Government 6.7% = 6.7%

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 CountyAdjacent 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

Boone71%

Jasper49%

Story156%

Polk159%

Dallas266%

Madison87% Marion

111%

Warren186%

AGGREGATE INCOME GROWTH, 1969-2006

Source: Liesl Eathington, SETA

Boone28%

Jasper12%

Story38%

Polk42%

Dallas88%

Madison45% Marion

24%

Warren48%

AGGREGATE INCOME GROWTH, 1990-2006

Source: Liesl Eathington, SETA

Boone42%

Jasper14%

Story105%

Polk114%

Dallas252%

Madison55% Marion

108%

Warren124%

AGGREGATE EMPLOYMENT GROWTH, 1969-2006

Source: Liesl Eathington, SETA

Boone26%

Jasper4%

Story18%

Polk27%

Dallas100%

Madison28% Marion

29%

Warren22%

AGGREGATE EMPLOYMENT GROWTH, 1990-2006

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” http://www.seta.iastate.edu/library.aspx?lmode=2&ltopic=3

% working outside the county2000 2007

Story county 16.4% 20.3%Ames 13.9% 18.5%

2000: the year real aggregate 2000: the year real aggregate sales peaked in Amessales 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 http://www.seta.iastate.edu/retail/publications/2005rta/

AMES SALES ARE LOW RELATIVE TO POTENTIAL SALES BASED ON AMES SALES ARE LOW RELATIVE TO POTENTIAL SALES BASED ON POPULATION AND INCOMEPOPULATION AND INCOME

STATE NORM

Ames business climate is not Ames business climate is not attracting or retaining investorsattracting or retaining investors

Do regulations discourage Do regulations discourage investors?investors?

Iowa State vs Kansas

Why does Lawrence Kansas have such a great downtown compared to

Ames?

Do Ames Regulations on Land Use Do Ames Regulations on Land Use Make Things Better or Worse?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 Original Plan for Somerset Somerset DevelopmentDevelopment

NorthridgeNorthridge

414 homes414 homes

Bloomington Bloomington HeightsHeights

Lots of housesLots 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 If we select priority growth areas correctly, shouldn’t they grow correctly, shouldn’t they grow

more rapidly?more rapidly?

Southwest Growth Priority Area

Ames Land Use Plan Priority Growth AreasAmes 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