MORRISON INSTITUTE FOR PUBLIC POLICYH I T S AN D M I S S E S : FAST GROWTH IN METROPOLITAN PHOENIXMORRISON INSTITUTE FOR PUBLIC POLICY SEPTEMBER YEAR TWO THOUSAND 1This document is copyrighted ©2000 by the Arizona Board of Regents for and on behalf of Arizona State Universityand its Morrison Institute for Public Policy.FUNDERS:APSBlue Cross and Blue Shield of ArizonaCity of ChandlerCity of GlendaleCity of MesaCity of PeoriaCity of PhoenixCity of ScottsdaleCity of TempeEast Valley PartnershipGreater Phoenix Chamber of CommerceGreater Phoenix Economic CouncilGreater Phoenix LeadershipMaricopa CountyMotorola, Inc.Salt River ProjectStarDust FoundationScottsdale Chamber of Commerce/ Scottsdale PartnershipWESTMARCADVISORSJulie Alvarado, MotorolaJohn Benton, Benton-Robb DevelopmentSteven Betts, Gallagher & KennedyJerry Bisgrove, StarDust CompaniesRichard Bowers, City of ScottsdaleGary Brown, City of TempeWayne Brown, Mayor, City of MesaJay Butler, College of Business, Arizona State UniversitySam Campana, Mayor, City of ScottsdaleFrank Fairbanks, City of PhoenixJoanie Flatt, East Valley PartnershipEd Fox, APSGrady Gammage, Jr., Gammage & BurnhamNeil Giuliano, Mayor, City of TempeTerry Goddard, U. S. Department of Housing & Urban DevelopmentAndrew Gordon, Coppersmith & Gordon, PLCPhil Gordon, City Council Member, City of PhoenixLloyd Harrell, City of ChandlerTimothy Hogan, Center for Business Research, Arizona State UniversityJohn Keegan, Mayor, City of PeoriaMichael Kelly, City of PhoenixPaul Koehler, Peoria Unified School DistrictDiane McCarthy, WESTMARCSharon Megdal, MegEcon ConsultingChris Mulholland, Scottsdale Chamber of CommerceMargaret Mullen, Urban Realty PartnersJohn Ogden, SunCor Development CompanyKevin Olson, Steptoe & JohnsonA. J. Pfister, School of Public Affairs, Arizona State UniversityCharles Redman, Center for Environmental Studies, Arizona State UniversitySkip Rimsza, Mayor, City of PhoenixMark Schnepf, Mayor, Town of Queen CreekElaine Scruggs, Mayor, City of GlendaleTom Simplot, BRS GroupFrederick Steiner, School of Planning and Landscape Architecture, Arizona State UniversityMartin Vanacour, City of GlendaleRick Weddle, Greater Phoenix Economic CouncilMike Welborn, Bank One ArizonaKeven Ann Willey, The Arizona RepublicREVIEW CADRERichard Bowers, City Manager, City of ScottsdaleR. Thomas Browning, Executive Director, Greater Phoenix LeadershipRobert Bulla, President, Executive Division, Blue Cross and Blue Shield of ArizonaJohn DeGrove, Director, Joint Center for Environmental & Urban Problems, Florida Atlantic UniversityFrank Fairbanks, City Manager, City of PhoenixEd Fox, Vice President, Environmental, Health, Safety & New Technology Ventures, APSGrady Gammage, Jr., Attorney, Gammage & BurnhamTerry Goddard, State Coordinator, U. S. Department of Housing & Urban DevelopmentJohn Hall, Professor, School of Public Affairs, Arizona State UniversityLloyd Harrell, City Manager, City of ChandlerEdward W. Hill, Professor, Maxine Goodman Levin College of Urban Affairs, Cleveland State UniversityLinda Hollis, Senior Research Associate, Solimar Research GroupJim Holway, Assistant Director, Arizona Department of Water ResourcesBruce Katz, Director and Senior Fellow, Center on Urban and Metropolitan Policy, The Brookings InstitutionRobert Lang, Director, Urban and Metropolitan Research, The Fannie Mae FoundationDiane McCarthy, President, WESTMARCFrank Mizner, Planning Director, City of MesaRolf Pendall, Assistant Professor, City and Regional Planning, Cornell UniversityA. J. Pfister, Distinguished Research Fellow, Arizona State UniversityLuther Propst, Executive Director, Sonoran InstituteCharles Redman, Director, Center for Environmental Studies, Arizona State UniversityJudy Richardson, First Vice President, School Finance Consulting Services,Peacock, Hislop, Staley & Given, Inc.Ethan Seltzer, Director, Institute of Portland Metropolitan Studies, Portland State UniversityFrederick Steiner, Director, School of Planning: Landscape Architecture, Arizona State UniversityMartin Vanacour, City Manager, City of GlendaleRick Weddle, President, Greater Phoenix Economic CouncilAcknowledgments Many people and organizations contributed to the preparation of this report.The work of scores of people and the support provided by public-and private-sector organizations are acknowledged gratefully. Nevertheless, the views expressed here remain solely those of Morrison Institute for Public Policy. Any errors of fact or interpretation are the responsibility of Morrison Institute. The Institute specifically thanks the following people and organizations.Morrison Institute for Public PolicySchool of Public Affairs | College of Public Programs | Arizona State UniversityP. O. Box 874405, Tempe Arizona 85287-4405 Voice (480) 965-4525 Fax (480) 965-9219 http://www.asu.edu/copp/morrisonMary Jo Waits, Associate Director - Morrison Institute for Public PolicyRebecca L. Gau, Senior Research Analyst - Morrison Institute for Public PolicyMark Muro, Senior Research Analyst - Morrison Institute for Public PolicyTina Valdecanas, Senior Research Analyst - Morrison Institute for Public PolicyTom R. Rex Research Manager, Center for Business Research - Arizona State UniversityLeonard G. Bower, EconomistElizabeth Burns Professor, Department of Geography - Arizona State UniversityLisa DeLorenzo Assistant Professor, School of Public Affairs - Arizona State UniversityWilliam Fulton, President - Solimar Research GroupPatricia Gober, Professor, Department of Geography - Arizona State UniversityJohn Hall Professor, School of Public Affairs - Arizona State UniversityAlicia Harrison, Research Associate - Solimar Research GroupKent Hill, Assistant Research Professional, Department of Economics - Arizona State UniversityGlen Krutz, Assistant Professor, Department of Political Science - Arizona State UniversityScott Smith, Support Systems Analyst - Information Technology Research Support Lab GIS Services, Arizona State UniversityJamie Goodwin-White, Graduate Assistant - Morrison Institute for Public PolicyChristina Kinnear, Graduate Assistant - Morrison Institute for Public PolicyLaura Valenzuela, Graduate Assistant - Morrison Institute for Public PolicySEPTEMBER 2000Research Team:With Assistance From:Rob Melnick, Morrison Institute for Public PolicyKaren Heard, Chalk DesignNancy Welch, The Insight GroupCherylene Schick, Morrison Institute for Public PolicyH I T S AN D M I S S E S : FAST GROWTH IN METROPOLITAN PHOENIXHits and Misses: Fast Growth in Metropolitan Phoenix is the first productof a comprehensive effort to describe and analyze the region's growth. TheBrookings Institution Center on Urban and Metropolitan Policy inWashington, D. C. presented the opportunity for this project to MorrisonInstitute for Public Policy.The Brookings Institution has been engaging leading local scholars tostudy the role of government policies in growth and development patternsin various metropolitan areas in recent years. As part of this urban agenda,the Brookings Center invited Morrison Institute to prepare a case study ofthe Phoenix region to supplement reports on the other five cities alreadyinvolved in the national research. Soon thereafter, Morrison Institute invit-eda number of metropolitan Phoenix cities, businesses and civic alliancesto provide financial support for this new investigation. The supportingorganizations were eager to obtain fresh, quality information about growthin the area at a time of increasing anxiety about the topic. They also saw thebenefit of showcasing metropolitan Phoenix' sometimes surprising storywithin Brookings' larger set of case studies.The formal Phoenix case study will appear next year as a chapter in aBrookings Institution book with national distribution. However, the pressingpublic debate about growth issues in metropolitan Phoenix obliged Morrison Instituteto make its findings available locally now. This detaileddocument offers significant data and discussion not included in the formalBrookings case study. It also features a finer-grained local focus for localaudiences. Morrison Institute hopes the analyses and recommendations willfoster a better understanding of the dynamics at work in this region andsupport wise decisions in the future.Some readers will wonder why Hits and Misses does not take a specificstand on the growth management measures on the November 2000 ballot.The two measures represent a key moment in both Phoenix' and the state'sgrowth history, so this report's silence on the proposals may seem peculiar.However, in keeping with this study's purpose to identify the causes ofgrowth patterns, the Morrison Institute team chose to pass over discussionof particular ballot items in favor of offering fresh data and new options forthinking about the challenges and opportunities of rapid growth. Such anapproach sacrifices topicality in favor of a potentially longer-lasting effecton the region's future.The story of growth in metropolitan Phoenix is a complicated, oftensurprising, tale. There is much to be proud of in the region. Yet there is alsomuch to worry about, and much that needs to be done. Hits and Misses willhave been successful if it becomes a catalyst for getting started.A NOTE ABOUT DATA Any study of this kind depends on accumulating acomprehensive and up-to-date body of research that can inform regional policy making.Fortunately, many cities in the region as well as the Maricopa Association of Governments (MAG),the Central Arizona-Phoenix Long-Term Ecological Research Project at Arizona State University,the state of Arizona and the federal government maintain large bodies of useful data on the region'sjob market, population, land-use and transportation trends. However, assembling a comprehensivestatistical picture of the region remains problematic. Differences in collection efforts amongmetropolitan Phoenix cities and agencies make the assembly of consistent, city-by-citydatabases difficult. Hard figures do not exist for numerous topics. Or, relevant numbers dateback a number of years. The U. S. Bureau of the Census most detailed statistics covering smallgeographic divisions, for example, date to either the 1990 census or the MAG 1995 special census,precluding more up-to-date accountings. Clearly this lack of timely data createsdifficulties when speaking of a fast-changing region such as metropolitan Phoenix.Nevertheless, Morrison Institute remains confident the trends it highlights here hold for the region.1 MORRISON INSTITUTE FOR PUBLIC POLICYTable of ContentsEXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5THE SHAPE OF FAST GROWTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7Population is Booming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Metropolitan Phoenix is Becoming Denser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Employment Remains Concentrated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Road Building is Accelerating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14The Fringe is Exploding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16The Phoenix Region is Using a Lot of Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18The City of Phoenix' Resources are Balanced Compared to Its Largest Suburbs . . . . . . . . . . . . . . . . . . . . . . . . . 20The Region is Becoming More Diverse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Schools are Divided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24Aggressive Annexation is a Metropolitan Phoenix Tradition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26WHAT'S BEHIND THE TRENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Timing and National Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29Coming of Age in the Auto Era . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29The Advent of Air Conditioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29Local Circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Topography and Climate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29The Real Estate Crash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29Government Land Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Policies and Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29Water, Land and Transportation Choices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30Securing Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Holding onto Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Delaying the Freeways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32What this Means . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Growth Management Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33Paying for Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34Keeping the Center Vital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Protecting Open Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36What this Means . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37Western Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Strong Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37Weak Regional Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37Polarized Civic Agendas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37Spotty State Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38What this Means . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38WHAT TO DO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40Understand the Full Range of Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40Overcome Near Catch-22's . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40Be Alert to Upcoming Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42THE FUTURE AT A GLANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43Notes and Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46HITS AND MISSES: Fast Growth in Metropolitan PhoenixPhoenix is often viewed as the quintessential Sunbelt metropolis: young,fast-growing, auto-centered, and sprawling. While some facets of the stereo-typeare accurate, the complete picture of metropolitan Phoenix is morecomplex. In some notable ways, metropolitan Phoenix' story is one of success.For example, compared to other urban regions, the Phoenix metropolitanarea is fairly compact with relative equity between its core city and its suburbs.Prospectively, however, the challenges are great. The desert landscape ischanging and some educational and economic divides are obvious, plus themechanisms available to cope with problems may be insufficient to handlemany rapidly-evolving situations.Hits and Misses is based on a wide-ranging set of projects undertakenby scholars at Morrison Institute for Public Policy (School of Public Affairs,Arizona State University) during the past year. Overall, this research providesan updated and expanded view of regional growth and development trendsand the pressures that will challenge the region's residents and policy makersin the future.This has been a complicated inquiry, given the tangle of events, trendsand circumstances that affect and shape any region. Still, two things standout about metropolitan Phoenix' growth experience.1) Metropolitan Phoenix has grown differently from other urban regionsand in ways that defy conventional wisdom.° Density is increasing. Given residents' dependence on cars, mostpeople would not expect the Phoenix region to be showing increasesin population density from its core to its edges. But it is Ð makingit one of only a handful of large areas in the country to do so.Population grew 263 percent between 1960 and 1990, while theurbanized area expanded 199 percent during the same period. Bycontrast, metropolitan Chicago gained 4 percent in population whileurban land area increased 47 percent. Metropolitan Atlanta consumednearly twice as much land as metropolitan Phoenix to accommodateapproximately the same number of people.° The region's center is holding. Employment remains concentrated inthe metropolitan Phoenix core, unlike in many other urban regions. Jobsin the area's center account for 32 percent of the region's employment.In addition, both population and employment rose in the heart of themetropolitan area in the 1990s, although the rate of expansion was lessrobust than in other parts of the region. Still, these healthy signs belie the"hollowing out" that has plagued many other regions.° The region's core city and its major suburbs are quite balanced. Inkeeping with the vitality of its center, metropolitan Phoenix is alsofortunate to retain a measure of balance among its major cities. Theabsence of glaring disparities between the center and the next largestcities Ð at least in terms of housing values, jobs and retail activity Ðstands in contrast to other metropolitan areas and bodes well for thefuture of the core and the entire region.° People and businesses keep coming. To stay the same in today'sworld usually means going backward. Metropolitan Phoenix still isexperiencing phenomenal growth with nearly 700,000 new residents(31 percent more) and approximately 500,000 more jobs in just lessthan 10 years. Between 1997-1998 alone, approximately 1,300 newbusiness establishments were counted in metropolitan Phoenix. Theregion now ranks 13th in high-tech jobs.2) Metropolitan Phoenix faces extraordinary challenges because of localcircumstances and the effects of past public policy decisions.° Residential development is moving outward very swiftly. Overallin the last five years, the urban edge has advanced nearly one-half mileper year. In the southeast, the fringe pushed out an average of three-fourthsof a mile each year. The region's heaviest home building isnow occurring in a ring some 18 to 21 miles from downtown Phoenix.It is fair to ask: How far out will the ring of development need to bepushed to accommodate the 1.6 million additional residents projectedin the region by 2020?° Metropolitan Phoenix is using up its agricultural and desert land.Calculations from aerial photographs show that between 1975 and1995 some 40 percent of all agricultural land and 32 percent of allundeveloped desert land was lost to urbanization. The vivid SonoranDesert is what makes metropolitan Phoenix unique and gives it aspecial character. Losing huge tracts of land threatens the region withthe loss of its most famous lifestyle and environmental asset.° A regional divide exists by race, poverty and schools. For years, thesections north and northeast of downtown Phoenix, includingScottsdale, have been affluent areas with attractive housing, goodschools, and enviable amenities. Also for years, poor whites andlow-income minorities have been concentrated in neighborhoodsin the central and southern portions of the city of Phoenix. Thedemographic divide plays out in schools as well, with few poor andminority students in high-achieving school districts.° The region's rapid growth disturbs the majority of residents. Since itsinception three years ago, the Morrison Institute quality of life surveyhas documented the breadth and depth of residents' discontent withgrowth. In 1999, 80 percent of residents said they were "concerned" or"very concerned" with the region's growth. Most dramatically, nearlyhalf reported that they would leave Phoenix tomorrow if they could.Two-thirds added that the region was doing a "poor" or "fair" job ofpreserving the desert and open space.THE RESPONSE: THREE STRATEGIC RECOMMENDATIONSAs the region's leaders and residents decide what to do next, actions in threestrategic areas seem imperative.First, the Phoenix region needs to understand the full range of issues thatshape its growth and development patterns. The region's emerging divisions,transportation challenges, loss of desert lands, and the many other growthissues that threaten metropolitan Phoenix' quality of life are inextricablylinked and cut across jurisdictional boundaries.The smartest regions today have embraced the "four E's" of a strongeconomy, healthy environment, social equity and civic engagement as aframework for analyzing problems and building regional advantages. Theyrecognize that everything is connected.Metropolitan Phoenix' leaders can disregard the relationships amongthe region's education, social, economic and environmental challenges andhope for the best. But they would do better if together they "connected thedots" among the issues and created new partnerships capable of respondingto growth's problems and paradoxes.Second, the Phoenix region must overcome the near "Catch-22s" thatare rooted in its history. These Catch-22s will not succumb to old ideas or bigideas borrowed from a Seattle or a Denver. Bold, innovative policy decisions,based on the region's circumstances, will be needed. The Catch-22s include:° Looming transportation and land use conundrums. In contrastto other regions, highway building in metropolitan Phoenix hassupported the region's central area. The present round of suburb-to-suburbfreeway extensions, however, could create problems. By makingjobs and homes away from the center more accessible, the presence offreeways will intensify land consumption on the fringe. But shouldemployment remain concentrated in the cores and home buildingcontinue to move outward, commute times could worsen. The chal-lengeto unraveling this Catch-22 will be finding transportation andland-use initiatives that create dispersed mixed-use clusters of greaterresidential and employment density that do not detract from thevitality of downtown Phoenix, the region's signature core.° State trust land questions. Large tracts of state-owned trust land nearthe urban fringe constitute an irreplaceable asset for the region's qualityof life. This land could serve as a growth boundary that provides a vastreservoir of open space. However, the state constitution requires thatthese lands be managed to maximize revenues for Arizona's educa-tionalneeds. The mandate bars wholesale conservation of the landsand increases the likelihood of future land sales to developers. Thechallenge for the region will be to amend the Arizona constitution andstate enabling act to allow for trust land to be dedicated to open spacewhile maintaining the ability to fund schools.° Growth agendas in the smaller cities. Eighteen less-populous citieson the urban fringe now control nearly as much land as the city ofPhoenix and the five largest suburbs combined. These areas also lagbehind the region in open space protection and use of growth man-agementtools. This means that the municipalities in the region leastequipped to deal with the effects of fast growth will soon be makingdecisions with enormous implications for the entire region. The chal-lengewill be to bring a regional perspective to the planning efforts ofall cities while respecting the region's tradition of local control.° Fixing the schools of the core. The region has reason to worry aboutthe education of children in central Phoenix and the southwest portionof the region. Individual economic success correlates particularly witheducation attainment (the number of years of school completed). Theweak schools of the center present a powerful impetus for decentral-ization.Schools with high proportions of low-income, minority orunderachieving students may influence where people and businesseschoose to locate. This increases the viability of the fringe at the expenseof the core. Ironically, though, the region and its cities possess limitedauthority to address the unique problems of schools. The challengewill be encouraging more effective collaboration between schooldistricts and city leaders and including education issues in both fringegrowth management and core revitalization strategies.° Conflicting views on sprawl and density. Residents of metropolitanPhoenix decry sprawl, but they also dislike density. Unfortunately, con-trollingone usually means encouraging the other. To confront thisCatch-22, regional leaders and residents will need to find an acceptableway to promote greater density with "quality" development that fostersconvenience, diversity, transit options and access to open spaces. Oneapproach will be to re-evaluate traditional zoning ordinances with theirrigid and segregated land uses and consider new rules that fosteracceptable combinations of residential and commercial uses.° Regional authority dilemma. Although valuable, especially as the 18less-populous communities become a stronger force in the regionaldynamics, city-to-city coordination will only go so far. However, thecreation of a binding regional authority has been rejected so often thatimplementation of such a concept appears unrealistic for metropolitanPhoenix. The challenge will be to reap the benefits of regional "gover-nance"without having to adopt a formal "regional government" structure.° An on and off relationship with Washington. The region historicallyhas benefitted from federal assistance with water and public worksprojects that have sustained a growing population. In recent years,state leadership Ð executive and congressional Ð has disdained federalhelp with similar projects, believing that the state should be moreindependent from Washington. This stance handicaps the region'sability to finance major growth management initiatives, such as lightrail or open space acquisition, that neither the state nor any singlemunicipality can afford on its own. The challenge will be to get backto a long-term regional agenda so compelling that it would beunthinkable for any elected official not to support it.° Tensions that surround state support of metropolitan Phoenix. Intoday's economy metropolitan regions are increasingly overtakingstates as the drivers of growth. The situation in Arizona is noexception; the metropolitan Phoenix region currently accounts for 70percent of the state's total personal income and is responsible for over70 percent of new job growth. Thus, ensuring a viable metropolitanPhoenix should be a top priority of state government. However, othercommunities across Arizona have needs that also must be addressed atthe state level. The challenge will be to support the Phoenix region ina way that does not neglect the needs of other localities, but acceptsthat prosperity brought forth by a strong regional driver benefits thestate as a whole.° Water's changing role. Although the region has ample water for itscurrent population, water management will be more important giventhat there are no potential projects on the scale of the Central ArizonaProject to increase the future supply of water. As such, water manage-mentwill be increasingly related to growth management, as waterbecomes an invaluable regulator by influencing where homes andbusinesses may locate. However, discussions on water managementand growth management currently take place in entirely separatespheres. The challenge will be to bring together the water mavens andthe urban planners to come to an understanding of how water policiescould be used to manage growth.This report's final suggestion is for the region to be alert to the demo-graphic,technological and cultural trends that are shaping the nextmetropolitan era. New faces, a new economy, and a new geography ofamenities may be as profound a determinant of the size, shape and prospectsof cities and their surroundings in the coming years as the post-war suburbanboom was. How a region chooses to take what it has and put it into playamid these emerging trends will determine the region's competitiveness andhow it will grow.4 HITS AND MISSES: Fast Growth in Metropolitan PhoenixThen and Now: How the Metropolitan Phoenix Region Has Changed1970s 1990s* FAST GROWTH AND INCREASING DENSITYTotal Population 971,228 2,783,779Population Density (people/ square mile urbanized area) 2,228 2,707Average Lot Size for New Homes (square feet) 7,500 6,677MAJOR CHANGES IN LAND USE Percent Urbanized Area 15 41Percent Agriculture Area 32 19Percent Desert Area 49 33Distance of Fringe from Downtown Phoenix (miles) 10-11 18-21STRONG CENTER Employment Concentrated in Two Central Areas 32% of jobs are on 4% of land areaPopulation Remaining in Core Percent in the city of Phoenix 60 43Percent in the five largest suburbs** 25 39Percent in the balance of the county 15 18MORE EXTENSIVE ROAD SYSTEM Total Lane Miles per 1,000 Residents (freeways, major arterial roads, minor arterial roads) 3.5 4.1Vehicle Miles Traveled (per person per day) 14 24Transit Miles (per capita) n/ a 7BALANCE BETWEEN THE CORE AND THE FIVE LARGEST SUBURBS HousingHousing value in the city of Phoenix $48,500 $76,700Housing value in the five largest suburbs $59,400 $92,600Employment Number of jobs for every 100 residents in the city of Phoenix n/ a 58Number of jobs for every 100 residents in the five largest suburbs n/ a 49Retail Sales Retail sales per capita in the city of Phoenix $8,600 $7,500Retail sales per capita in the five largest suburbs $8,500 $10,600INCREASING DIVERSITY Percent of Ethnic Minorities in Metropolitan Phoenix 19 28DEEPENING DIVIDE Concentration of MinoritiesPercent of population in south Phoenix that is minority 47 77Percent of population in the city of Phoenix that is minority 22 36Percent of population in the five largest suburbs that is minority 13 22Concentration of Poverty Percent of persons in poverty in central and south Phoenix 24 36Percent of persons in poverty in Phoenix 12 14Percent of persons in poverty in the five largest suburbs 9 10Schools Performance (Stanford 9 reading score percentile rank) Percent of students nationwide scoring above the average score of students in central Phoenix n/ a 67Percent of students nationwide scoring above the average score of students in the northwest quadrant n/ a 61Percent of students nationwide scoring above the average score of students in the northeast quadrant n/ a 27Percent of students nationwide scoring above the average score of students in the southeast quadrant n/ a 41Percent of students nationwide scoring above the average score of students in the southwest quadrant n/ a 66* NOTE: Except for the following, data is given for 1970 and 1998. Data for population density in the 1990s is based on data for 1990; land use compares percents in 1975 and 1995; housing values compare median figures for 1970 and 1990 (in 1990 dollars); employment figures are for 1995; retail sales comparisons are for 1980 and 1995; overall ethnic minoritycomparison is for 1980 and 1995; poverty comparison is for 1969 and 1989; minority concentration for central and south Phoenix is for 1980 and 1995; and minority concentration for Phoenix and the region is 1980 and 1995.** The five largest suburbs are: Chandler, Glendale, Mesa, Scottsdale, and Tempe.5 MORRISON INSTITUTE FOR PUBLIC POLICYCities are the ultimate embodiments of their times, and metropolitanPhoenix is no exception.Nothing has determined the shape and tenor of metropolitan Phoenix'development more than the fact that it has taken place almost entirely in thepost-World War II era of cars. The Phoenix region, in a word, has grown inthe largely suburban, horizontal way it has because that is how virtually allcities grew during the past 50 years. The strengths and problems of thePhoenix region are in that sense very much of their time.Yet now a new time is beginning to shape metropolitan Phoenix and thechoices open to it. This era is the era of the Internet and the new economy.So the region that came of age in the auto era is now sensing that new valuesand new ways of living are going to rearrange the metropolitan fabric asthoroughly as the suburban boom did.Laptop gypsies with blue hair writing code at the Starbuck's; "yuppieseniors" wired for semi-retirement; new immigrants and smaller firms: Allthese are coming, and they will influence the layout and priorities of metro-politanPhoenix as surely as did all those Chevy-driving defense workers ofthe 1950s. Yet how, precisely, the newcomers will do this, and to what degree,remains a riddle. Moreover, it remains unclear how the region that rose toprominence by mass production will adapt its form to the new era of clus-tering,networks and "quality of place." Change is everywhere. The world ischanging; cities are changing; and so are the possible solutions to the problemsfaced by metropolitan areas.This report, in order to help make sense for policy makers and thepublic of this extraordinarily dynamic moment, endeavors to detail thetrends that are now shaping metropolitan Phoenix. Along the way, it identifiesthe side effects of rapid growth that threaten the region's future. And it pondershow the region may ensure it prevails as a competitive, high-quality regionin its next era.Yes, cities embody their times, but that does not mean they need beconfined to the forms and problems of just one era. A new time is alwayscoming, and the trick for metropolitan Phoenix is to begin adaptingcreatively and quickly to the new imperatives of region building.Fortunately, as the following pages make clear, the region begins this evolutionfrom a position of surprising strength.BY THE NUMBERS:Snapshot of the Metropolitan Phoenix RegionC O U N T YThe metropolitan Phoenix region is contained within MaricopaCounty. At 9,226 square miles, the area of the county is largerthan New Jersey and four other states.J U R I S D I C T I O N SThe region consists of only 24 cities and towns. The totalpopulation in 1998 was almost 2.8 million.C E N T R A L C I T YThe city of Phoenix is the central city. With a populationof nearly 1.2 million, it covers 470 square miles.L A R G E S U B U R B SChandler, Glendale, Mesa, Scottsdale, and Tempe are hometo 39 percent of the region's residents.L E S S -P O P U L O U S M U N I C I PA L I T I E SThe 18 municipalities house only 11 percent of the populationand have grown 446 percent since 1970.6 HITS AND MISSES: Fast Growth in Metropolitan PhoenixWilliams GatewayLitchfield ParkApache JunctionFountain HillsSalt River Indian Community Paradise ValleyPeoriaGuadalupeMesaChandlerGilbertQueen CreekGlendaleSurpriseGoodyearBuckeyeAvondaleEl MirageYoungtownScottsdaleTempeCarefreeTollesonCave CreekFort McDowell Indian CommunityLuke AFBFalcon FieldScottsdale AirportDeer Valley AirportNorth Mountain PreservePhoenix Mountains PreserveSouth Mountain PreserveS a l t R i v e rGlendale AirportSuperstition MountainsTonto National ForestWhite Tank Mountain PreserveChandler MunicipalMARICOPA COUNTYPINAL COUNTYBuckeyeGila BendWickenburgGila River Indian CommunityInterstate HwysProposed HwysState HwysUS Hwys 0 510Miles0 10 Kilometers1950 or earlier1970 or earlier1971 or later Map prepared by Arizona State UniversityIT Research Support Lab -GIS ServicesData Sources: Maricopa County Dept of Transportation; Arizona Land ResourceInformation System; U. S. Dept of Transportation.Landmarks in Metropolitan Phoenix 107 MORRISON INSTITUTE FOR PUBLIC POLICYThe Shape of Fast GrowthGrowth affects every dimension of the region's identity, including its population, employment,transportation arrangements, land-use patterns and social landscape. This section tells whatchanges are unfolding and what those trends might mean for the Phoenix region.Guide to Official Descriptions of Metropolitan PhoenixDATA NOTE According to the U. S. Bureau of the Census, the "Phoenix metropolitan area"consisted only of Maricopa County until 1990 census results became available,when Pinal County was added. For historical consistency,and because little of Pinal County is part of the Phoenix urbanized area,references in this report to the Phoenix metropolitan area equate toMaricopa County unless otherwise noted. Other geographic unitsoccasionally referred to include (1) Phoenix urbanized area.This geography closely follows the developed area, but onlydecennial census data are produced for urbanized areas. Discussions of populationdensity use this geography, which in 1990 was only 8 percent of the county's land area.(2) The Maricopa Association of Governments defines a planning area that includesthe current developed area plus land projected to be largely developed by 2020.It is about one fifth of the county's land area. (3) The Central Arizona-Phoenix Long-TermEcological Research project defines a study area larger than the MAG planningarea, but still substantially smaller than Maricopa County. It is used in discussions of land use.CAP-LTER Project Area 4,422 square milesMAG Planning Area 1,768 square milesMaricopa County 9,226 square milesU. S. Census Bureau Urbanized Area 741 square milesPhoenix Metropolitan AreaCAP-LTER Project AreaMaricopa CountyBasically, these pages show that the region's story conforms to neitherthe "traditional" model of urban development, nor the popular image ofSunbelt growth.Under the traditional model, associated most often with older east coastand midwestern cities, metropolitan areas frequently feature a distressedcentral city confined to its boundaries by fast-growing suburbs. There in thecenter, the old downtown becomes a catch basin for the region's poor andminority residents, while middle-class families, corporations and jobgrowth migrate to the suburbs.Popular views of the Sunbelt, by contrast, constantly assume metropolitanPhoenix exemplifies the unpopular word "sprawl." Phoenix in this view isdenounced as a vast, auto-centered collection of retirement communitiesand a sea of red-tiled roofs. Or worse, it is portrayed as a low-density urbanbehemoth that lacks both a center and an "edge," as the architectural criticMichael Sorkin had it in a 1997 review in Architectural Record. "Phoenixhas become the dreaded polycentric automotive metropolis," Sorkin wrote. 2To be sure, aspects of both of these accounts of metropolitan Phoenixgrowth hold true. But for the most part the picture of the region's develop-mentthat emerges from the research reported below is subtler than eitherthe traditional or popular view.In this fashion, the trends that follow belie easy preconceptions.Concepts and labels continue to be tossed about like footballs in thegrowth debates. However, the data and other information presented herestick closely to what is actually happening as metropolitan Phoenix getsbigger and challenge the region's discussions with a number of surprises.These pages show that the region's story conforms to neither the"traditional" model of urban development, nor the popular image of Sunbelt growth.The trends that follow belie easy preconceptions.8 HITS AND MISSES: Fast Growth in Metropolitan PhoenixPopulation is BoomingTREND: Growth driven by vast in-migration is occurring almost everywhere inmetropolitan Phoenix even near the core. But the most dramatic gains areat the outer edges of the current urbanized area.Metropolitan Phoenix grew faster than anyother large metropolitan region between 1970and 1998.* From just 1990 to 1998, the region'spopulation increased 31 percent thanks in largepart to the arrival of an average of 57,000 newresidents a year.** Among the 25 largest metro-politanareas in the nation only Atlanta grewsimilarly (27 percent) during the 1990s.About one-third of the region's populationgrowth between 1990 and 1998 occurred in thecity of Phoenix. Another fifth went to cities closeto the core - Tempe, Scottsdale and Glendale.Tempe grew by 18 percent, Phoenix by 21percent, Glendale by 32 percent, and Scottsdaleby 50 percent (see Table 1). The city of Phoenixadded 210,000 residents from 1990 to 1998.Tempe, Scottsdale and Glendale together added137,000 residents.At the same time, 8 out of the 24 cities in thePhoenix metropolitan area experienced a popu-lationincrease of more than 50 percent from1990 to 1998. Cities with the fastest populationgrowth are at the urban edge. Avondale, Carefree,Chandler, Fountain Hills, Gilbert, Goodyear,Peoria and Surprise all extend along the metropolitanarea's outer ring. Map 1 shows these areasin light blue and dark blue. The cities with over50 percent growth accounted for about 200,000new residents to the region during the 1990s.The city of Phoenix' share of the regionalpopulation dropped from 60 percent in 1970 to43 percent in 1998 (see Figure 1).The growth rate in the southern and centralportions of the city of Phoenix trailed thenumbers recorded elsewhere in the region.South and central Phoenix (indicated in red onMap 1) added only about 15,000 people (9 per-cent)between 1990 and 1995. The metropolitanarea's largest pockets of population decline werealso in these areas.WHAT THIS MEANSExplosive population growth has enriched metropolitanPhoenix' talent pool and enlarged its local markets, but it is also challenging theregion's infrastructure and natural resources,particularly in the areas of the metropolitanfringe. More traffic, longer commutes, air pollution,and crowded schools all result from theregion's phenomenal influx of drivers and homebuyers. Local governments may be capable ofonly minimal planning and may struggle toprovide basic services. Communities that arerelatively small and inexperienced, or wheregrowth outpaces the rate at which tax rolls andcensus counts can be updated to ensure variousrevenue flows, have been the hardest hit. Hence,the potential for regional problems is great.That the city of Phoenix and other "inner-ring"cities are still growing at a rate relativelyclose to the regional average suggests theregion's center is not "emptying out" as it is inmany other metropolitan areas. Between 1970and 1999, for example, the city of Atlanta'spopulation decreased 14 percent compared tothe region's increase of 114 percent. 3 The city ofPhoenix' growth rate was 105 percent between1970 and 1998, while the region gained 187 percent.However, slower growth in south and centralPhoenix points to an emerging problem. Pocketsof population decreases caused primarily bythe demolition of housing units - cluster in anarea close to the region's core.Over the last 30 years, an average of 127 new residentsmoved to the Phoenix region every day.Figure 1: Metropolitan Phoenix' Population Grew by187 Percent, adding 1.8 Million People from 1970 to 19980200,000400,000600,000800,0001,000,0001,200,000