April 2004
How Developers Fund Sprawl
by Eben Fodor
Eben Fodor is a community planning consultant based in Eugene, Oregon and author of the book, Better, Not Bigger: How to Take Control of Urban Growth and Improve Your Community (New Society Publishers, 2001).
Ever wonder why the pro-growth/pro-sprawl forces always seem so influential at the city and county level? Part of the answer can be found in a rare glimpse into who funds local political campaigns, provided by The Register Guard newspaper (Eugene, Oregon) in a recent article titled “Old Growth Money” (12/21/03). Some analysis of the reported data shows that there is a second story that could be headlined: “New Growth Money.”
The newspaper’s report compiled all campaign contributions in Lane County, Oregon, over the past five years and grouped them according to business affiliation. The newspaper took advantage of Oregon’s campaign finance reporting laws that require the business affiliation of every contributor of more than $50 to be reported. The affiliations of smaller contributions could not be identified and were therefore not included in the totals.
The newspaper found that the Forestry Related category was the area’s largest political funding influence, at 22 percent of the total. This was hardly surprising, since timber has always played a big role in the Lane County economy.
The real story is revealed by combining all the land development businesses into a single category. This new Land Development Industry category includes those businesses that profit directly from new construction and land development, such as construction, gravel, heavy equipment, financing and real estate.
As shown in the graph, the Land Development Industry represents by far the largest political interest group: the source of 42 percent of all identifiable local campaign funding. The primary economic interests shared by this group are regional growth and unfettered land development.
In order to get the complete picture, the interests of the Forestry Related category must also be considered. This group includes many business owners who, in addition to selling lumber to construction markets, are also land developers and real estate investors. Therefore, a large portion of the spending in this category should actually be included under the Land Development category. While a precise total is not possible, a rough estimate is that half, or more, of all local political campaign funding is on behalf of land development interests.
Land Development Interests Have Extra Clout
Campaign spending doesn’t guarantee outcomes, but it certainly influences the results. This is especially the case when “pro-business” candidates can raise record amounts for their campaigns and outspend opponents five to one. With so much clout, the land development industry can virtually ensure that a majority of local politicians are “growth friendly.” Typically, these elected officials favor expediting and streamlining land development. They tend to support government subsidies and investments that stimulate growth, but think that government taxes and land use regulations are excessive and overly burdensome.
No other single-interest group comes close to this degree of dominance in local politics. And the situation is certainly not unique to Lane County. Cities and counties across the country are under the thumb of the land developers and their coalition of growth profiteers. This campaign financing data illustrates what I have come to believe: the land development industry is the most powerful political force in America today, at the local level.
This “behind-the-scenes” view of local campaign financing helps explain why citizens have to work so hard to achieve any reforms for responsible land use, growth management and environmental protection. It also shows why local campaign finance reforms are needed to restore true balance and democracy to the public policy process. §
©2004 by Eben Fodor
Notes on Data
This information is based on an analysis by The Register-Guard newspaper (Eugene, Oregon) of 4,800 campaign contributions of more than $50 over a five-year period to local races and ballot measures for Lane County and the major cities of Eugene and Springfield. Contributions to state and federal campaigns are not included. The “land development industry” category comprises 42 percent of all identifiable contributions and includes:
•Real Estate $ 175,940
•Heavy Equipment and Gravel $ 93,510
•Construction $ 86,370
•Financial Services $ 53,270
