Progressive Zoning
Description and History
By strategically allocating land use, promoting mixed-use development, and integrating considerations for infrastructure, environmental sustainability, and cultural preservation, progressive zoning aims to create inclusive urban environments. This approach not only shapes the physical landscape of communities but also influences the distribution of economic opportunities and resources, thereby promoting Community Wealth Building and equitable development.
Traditional enterprise zones, originating in the late 1970s in the United Kingdom and later adopted in the United States, are designated geographic areas where specific tax incentives, regulatory relaxations, and other public support measures are provided to stimulate private sector economic growth and job generation. While their primary objective is to rejuvenate economically distressed areas by attracting businesses, they have faced criticism for often benefiting large corporations over small local businesses. This focus can lead to gentrification, driving up property values and displacing long-standing residents and small enterprises, which exacerbates inequalities and undermines the intended community benefits.
In contrast, social enterprise zones represent a progressive alternative within the broader context of progressive zoning. These zones aim to foster the growth of social businesses that prioritize community well-being and equitable development. Social enterprises focus on the "double bottom line" of profitability and social impact, or even a "triple bottom line" that includes environmental benefits. By supporting enterprises that reinvest profits into community initiatives and promote sustainable practices, social enterprise zones address the negative outcomes of traditional enterprise zones, such as corporate dominance and gentrification, and contribute to more inclusive and resilient local economies
Progressive Zoning, Just Use of Land and Property, Inclusive and Democratic Enterprise, and the Community Wealth Building Wedge
Progressive zoning, including social enterprise zones, can support inclusive and democratic enterprises by recognizing the pivotal role of ownership in economic power dynamics. Traditional economic structures often concentrate ownership and decision-making within a narrow subset of the population, exacerbating inequalities and limiting opportunities for marginalized groups. Progressive zoning policies can foster alternative ownership models such as worker cooperatives, consumer cooperatives, social enterprises and other community-owned enterprises. These models promote economic democracy by empowering workers and communities to have greater control of their work environments and share in the profits that their labor produces, thereby fostering greater equity and resilience within local economies.
Moreover, the concept of just use of land and property encompasses a broader understanding of land as a community asset rather than a speculative commodity. Unchecked speculation and gentrification contribute to displacement and housing insecurity. By mobilizing land and property assets for community benefit, progressive zoning strategies help mitigate the disruptive effects of speculation, preserve affordable housing, and foster inclusive, mixed-income neighborhoods.
By harnessing the potential of alternative ownership models and community-driven land use strategies, progressive zoning offers a promising pathway toward building more equitable, vibrant, and sustainable cities.
Examples
Union Square Redevelopment, Somerville, Massachusetts
Somerville, Massachusetts, showcases another example where progressive zoning has significantly contributed to community wealth building. The redevelopment of Union Square involves zoning reforms that prioritize affordable housing, local business support, and community spaces. The city's zoning policies were amended to include inclusionary zoning, which requires developers to include a certain percentage of affordable housing units in new developments.
Furthermore, the zoning changes support small, locally-owned businesses by providing incentives for mixed-use developments that integrate commercial and residential spaces. This approach helps maintain the character of the neighborhood, supports economic diversity, and prevents displacement due to gentrification. By focusing on inclusive development, these zoning policies help ensure that the economic benefits of redevelopment are broadly shared among residents.
Equitable Growth Initiative, Newark, New Jersey
Newark, New Jersey, has implemented progressive zoning policies as part of its Equitable Growth Initiative. The city has revised its zoning code to support community land trusts and affordable housing projects. These zoning changes aim to stabilize neighborhoods by providing permanent affordable housing and preventing displacement through gentrification.
The initiative also includes zoning incentives for developments that offer community benefits, such as local hiring requirements and the provision of community spaces. By integrating these progressive zoning practices, Newark is promoting equitable development and ensuring that growth benefits the local community. This approach aligns with the principles of community wealth building by fostering economic inclusion and shared prosperity.
Challenges and Limitations
Challenges and limitations of progressive zoning include potential resistance from entrenched economic interests, the complexity of implementing new regulatory frameworks, and the need for substantial initial investment to support infrastructure and development projects. Additionally, ensuring that the benefits of progressive zoning reach the intended marginalized communities requires careful planning and ongoing community engagement.
Taking it Forward
From a progressive, democratic economy perspective, various stakeholders—including local governments, community organizations, and private entities—can take several actions to support and incentivize initiatives within designated zones. These actions can focus on fostering equitable development, sustainability, and Community Wealth Building through progressive zoning practices:
Policy Development: Develop and implement policies that prioritize inclusive growth and sustainability. These policies should facilitate the establishment and operation of socially responsible enterprises, mixed-use developments, and affordable housing projects within designated zones.
Financial Support: Allocate funding to support progressive development initiatives. This could include grants, loans, or subsidies for projects that align with CWB goals, such as local cooperatives, green infrastructure, and affordable housing.
Capacity Building: Provide training, technical assistance, and capacity-building programs to help local entrepreneurs, community organizations, and residents develop the skills and knowledge necessary to succeed. This can include workshops on business planning, sustainable practices, and community organizing.
Public Procurement: Use procurement processes to support local enterprises by giving them preferential consideration in contract awards. Prioritizing the purchase of goods and services from businesses operating within designated zones can provide a steady revenue stream and help them scale their operations.
Tax Incentives: Offer tax incentives to businesses and developments that meet specific social, economic, or environmental criteria. This could include tax breaks or reductions for projects that provide significant community benefits, such as affordable housing, job creation, or environmental sustainability.
Infrastructure Investments: Invest in infrastructure improvements to support development within designated zones. Upgrading utilities, transportation networks, and public spaces can help these areas better support development and improve the quality of life for residents.
Data Collection and Reporting: Collect and analyze data on the social and economic impact of initiatives within designated zones. This information can inform policy decisions, measure progress, and build transparency and accountability. Reporting requirements can ensure that projects are meeting their intended goals and providing community benefits.
By adopting these strategies, stakeholders can leverage progressive zoning to create vibrant, inclusive, and sustainable communities that promote equitable economic growth and CWB.
Additional Resources