Cultural Interpretation of Regional Landscapes
Cultural Interpretation of Regional Landscapes LARC 560
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The Valley County Bioregional Atlas Section 11 Economics Introduction A bioregional take on economy goes beyond the regular demographics and economic numbers and looks at what imports a region depends on what base economic activities finance these imports what natural and cultural resources the region has to drive its economy Natural resources encompass everything from the weather and topography to land minerals and ecosystems Cultural capital describes how the region is shaped by its population roads and infrastructure education and general culture government and politics Natural and cultural resources together determine the region s competiveness relative to other regions Just like a diverse investment portfolio is more able to weather economic downturns by mixing different investment types stocks bonds and CDs so can a region balance its economic activities to be more resilient Ideally a region would like to produce some of its own internal needs energy raw material and food as well as consume some of its own exports to reduce vulnerability for outside factors In This Section 0 The principles of a regional economy 0 Understanding the County s output 0 Reduce dependency on input Utilization of the County s natural capital 0 Politics and the use of natural resources 0 Planning Property rights and personal Freedom Infrastructure and locality o The graying of the population 0 Affordable Housing 0 City and County rules and regulations104 0 Summary University of Idaho Sustainable Communities Initiative Economics The Valley County Bioregional Atlas The Principles of a Regional Economy Imagine a region large enough to be self reliant its population would use the available natural capital feitile land timber and water perhaps minerals to produce all of the needed energy food and supplies As long as the natural capital is managed wisely and weather and disease are cooperating the region s economy is stable Of course no modern region in our global economy is self reliant We gladly trade in goods that we cannot make ourselves or not as cheaply against items for which we have a competitive advantage In short we give up some independence in exchange for greater wealth 7 a win win situation Even though Valley County may not have the population size to expect or entirely justify a regional approach it is nonetheless useful since the County s economy is fairly contained and isolated A regional approach also points out the limitations of looking at economic development of a single city where the gain of a gas station in one city is the loss of business in another 7 not necessarily adding a single penny to the region Looking at trade in trade out and the region s assets the combined natural and cultural resources we can ask pertinent questions about the overall economy and how to keep it resilient 0n the input side How much independence are we willing to give up The need or want for greater wealth can sometimes push a region to give up too much 0n the output side Are we having all our eggs in one basket How vulnerable does that make us Asset resource management Can we sustain the output or are we consuming our future What do we need to do to maintain our competitive edge to prevent competing regions to drive down our income 50000 daho Valeycounty 40000 y 36 s 29952 30000 20000 1998 2000 2002 2004 2006 Figure111 Valley County s relative wealth This graph shows Per Capita incomel It represents the total income divided by the total population and is a good representation for wealth This indicates that Valley County is 24 more wealthy than average Idaho Tablelo1The County s Economy in a nutshell Regional tradein Input being purchased Food and Supplies Construction materials Energy Gasoline Propane Electricib Regional tradeout Output creating revenues Using renewable Capital crops forestry products game Before 2001 lumber Cascade mill or logs Emmet Before 1990 farming with true export dating back to the 195039s and earlier Before 1940 trapping with the bulk of it before 1830 Using Finite Capital open space scenery backcountry Professional Services to non residents Recreation and hospitalib services to non residents ski snowmobile hunt amp fish hike etc Finished construction to second home owners and retirees Using Finite Capital minerals Before 1960 mining minerals there is still some activity but negligible in scale Regional assets Natural capital finite and renewable resources Cultural capital towns infrastructure regulations and localib n University of Idaho Sustainable Communities Initiative The Valley County Bloregional Atlas Economics 20055 estqr data Output 39niilli ni General Services 1 Professional serv ces 2 Construction 3 Government 4 Trade Logging and FlSl ill ig Misc Manufacturing Mining Ranching and Farming f total 297i4 521 Tablel 12 Output analysisa Revenue and base output new money generated per sector in 2006 this shows that 98 of construction revenue translates into new money 1192 million for the county as opposed to only 7 of professional services revenue The magic multiplier tracing the money When the construction supervisor went to the local hospital for a flu shot bought groceries and a ski pass for the winter he recirculated new money from the construction sector The ski resort paid the ski lift operator with the money who then used it to buy new skis from the local ski shop This recirculation of money multiplies the effect of new money on region and jobs The resort ski lift operator and ski shop owner were all partially paid by construction The higher the snowball effect the higher the multiplier 72096 sector gate Employment multiplier General Service51 1908 1 3 I Professorial ServlCeS 2 1167 7 1 3 If Constructon3 1062 17 Government4 1078 14 I Trade 39 803 1 3 I Logging and Fishing 97 2 3 I Misc Manufacturing 76 1 9 Mining 33 2 2 I Ranchan and Farming 112 1 6 total 6336 13 Table113 employment analysis8 A multiplier of 17 for Construction means that for every construction job another 07 jobs elsewhere in the community is affected mainly in hospitality and real estate a ie the services Dro services sector Understanding the County s Output Output trade out is anything that the region sells to an outsider it brings in new money New money can come from selling second homes to Boise residents the US Forest Service paying its employees or retirees drawing from their savings accounts This money may subsequently be spent at a doctor s office a gas station or grocery store that merely recirculates the money and does not generate new money Recirculation of money as opposed to new money can be very good however it gives depth to the economy where otherwise these services need to be brought in from the outside trade in Tradeant new money provides wealth and creates a snowball e ect demanding new services arpradticts How do we know how much new money an economic activity say construction generates A specialized Inputantput analysis takes trade out into consideration and finds out what new money an economy generates see insets The used data for this analysis are from 2006 this was at the height of the building boom of Tamarack resort and shows how it can skew a local economy It is probably no surprise that construction had a disproportionate impact on the region it generated 40 of all the new money for the region and directly or indirectly employed 1700 people Other interesting conclusions from this analysis for Valley County are 0 Even though the General Services sectar hotels resorts restaurants etc generates the largest revenue only half of it is new money Almost all revenue from the C anstructian sectar is new money As expected the Prafessianal Services Sector real estate lawyers healthcare is almost exclusively financed by recirculated money from the other sectors 0 In 2006 about 4100 or 65 of all jobs in Valley County were generated by tourism 2750 jobs directly with another 1350 through recirculated money in service areas like grocery stores doctor s offices real estate and other hospitality sectorsv 3 NOTES to table 2 and 3 General Services Sector hotels results restaurant and tourist activities account for 76 of revenue and 68 of employees 2 Professional Services Real estate architecture and insurances account for 45 of revenues and 48 of employees 3 Construction 87 of revenues and employees for tourist related construction Other 4 The Forest Service accounts for 40 of the Government Sector schools for 25 Source IMPLAN 2006 IMPLAN is an institute that collects data from all regions in the US to calculate the true output ietradeaout of a region University of Idaho Sustainable Communities Initiative m Economics The Valley County Bioregional Atlas Reduce Dependency 0n Input1 Any input into Valley County s economy trade in is ultimately paid for by trade out when trade in goes up trade out needs to follow So when in the second half of the 20th century the food supply for Valley County shifted away from regional farming the region s trade out needed to increase to keep the economy going at the same pace Not only does that give up independence but it makes the region s economy more vulnerable simply because it needs to maintain a higher level of trade out Valley County s trade in is substantial and includes most or all of the needed food energy supplies and construction materials inset options to reduce Valley County s trade in Any conversion of the region s tradein back to self reliance will therefore not only make the County s economy more resilient but also import the related jobs and income that goes along with that trade Utilization of the County s Natural Capital Just like a company carefully governs and maintains its assets like land machinery and know how a region has natural capital to use to its advantage and to maintain Some of this the natural capital like the weather soil composition and topography can be utilized but not used in trade Most others can be used in trade and it is useful to distinguish between finite semi finite and renewable resources inset Classes of Natural Resources Options to reduce Valley County s tradein Energy some Valley County citizens already explored geothermal energyz a lower price for energy would make the fixed cost for the hospitalib industry more manageable and would create a sustainable employmentbase Food all tourists need to eat and almost all food consumed by the Valley is traded in If traditional farming is uneconomical in the valley perhaps smallscale farming may be an option ifthe Counb creates a market for trade Better still if geothermal energy is a viable option glasshouse farming to supply the local economy as well as the hospitalib industry could be strategically very beneficial Construction materials most construction materials are being imported but perhaps local building codes and a thorough architectural analysis could spur substitution of some of the imports with local materials Classes of natural resources 0 Renewable resources like forestry products fish and game fresh water geothermal energy can be a resource for all generations provided that the use matches the replenishment Then there is capital of which the use is very difficult and costly to reverse semifinite resources like landuse water sheds and hot springs open space and scenery ecosystems amp wildlife habitat Finite resources like minerals are lost for the region once they are extracted and exported Using them is a onetime shot University of Idaho Sustainable Communities Initiative The Valley County Bioregional Atlas Economics Table 114 Historic use of the Valley County Natural Capital2 1700 I 1800 1900 2008 ValleyCountyyear round population 739 750 1370 2500 3500 4000 4300 3700 4500 6500 7500 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 l l l l l l l l l l l l l l l l l l Trapplngi 7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 l l l l l l l l l l l l l l quotfur desertquot lUl appg 18205 Francois Fayette traps in the Valley namestt e lake 19305 Huskey and Rourke the last twotrappers to roam the area 1 l l l l l l l l l l l 1 1 1 1 1 1 1 1 1 1 g 1 1 r 1 1 1 1 l l l l l l l 1 l l l l t a 21 l l l l l l l l l l l l 1862 1890395 panning old in places like Gold Fork Deadwood etc 19021908 Thunder Mountain gold 19141990 stibnite mine gold antimonytungsten 1914 1940 Meadow Creek Gold 9211966 Cinnabar Mercury 19241947 Dead Wood lead and zinc 391933 19905 Pistal Creek ridge mines Lucky lad F anlin D etc 194045 ww11 supply 195090 Mine closings Cattle 1 1 111 late 1800s sum ner grazing on unclaimed land 1910 the Valley is completely claimed 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Farming 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 l l l l l l l l l l 1874 Warrent39llmes publishes article about the beauty of the area 188039s first settlers 1910 the Valleyis completely claimed 1quot mpletion tiieiaiiiuau Donnely 1947 r 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Tim her 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 l l l l l l l l l 1 188039s mill1ngformines and local development 900 larger scale logging 191440 railroad logging of most of LongValley39s old growth 1926 increased timber needs for mining 1930 lowervalley cleared basecamp moves to Doelly area 1940 upper valley cleared basecamp to lVledows Valley 1940605 ww11 supply and baby boom 64 the McCall mill sells outto Boise Cascade 77 Boise Cascarle closes in lVlCCall 4001 last lli closes l l l l l l l l l l l l l l l l l l l l 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Tourism 1 1 1 1 1 1 1 1 1 1 1 1 1 l l l l l l l 1883 First 14 tourist campers on record at Fayette Lake 1906 summer cabins along Fayette Lake 1914 completion of the railroad connecting lVlCCaII to Boise 1924 Winter Carnival founded 1937 Little Ski Hill opened 1961 Brundage Mountoun openstor skiing 04 Tamarac resort starts building 1800 1900 2 Graphic depiction ofthe size ofthe economic activity is illustrative only and not necessarily to scale University of Idaho Sustainable Communities Initiative Economics The Valley County Bioregional Atlas Politics and the use of natural resources The Boise Cascade company cited environmental politics under the Clinton administration as the major reason for closing their last two Idaho timber mills in 20012 But even under the recent 8 years of an administration highly favorable to extractive economy the environmentalist approach has not changed and is certainly not expected to shift in the coming years For Valley County with an abundance of natural resources it is therefore important to find ways to work with rather than against that reality Most people including many environmentalists agree that a region should use its natural capital to its advantage as long as this is under responsible stewardship What has changed dramatically over the last hundred years is the definition of responsible stewardship maybe best described by the foremost reasons for civic environmental actionszz The activity like logging or fishing takes out more than the natural replenishment and is therefore considered unsustainable The activity has undesirable downstream effects on communities wildlife or ecosystems The activity is a windfall at the expense of communal or future natural resources When starting up a new activity in a sensitive area regions and industries have had good results with up front collaborative definition of the activity3 where the local government environmental groups and industry jointly define the expected stewardship Even though at the surface this appears time consuming and inefficient it is proven to be very effective and yield results Train logging Source Library of congress Washington DC not dated Planning Property rights and personal Freedom The best steward of a region is the person who lives there one who has a long term interest in the land and knows it well But increasing population pressure and related economic opportunities can put companies and individuals at odds with the long term interest of the region especially when it comes to land use Solving these con icts and in general stewardship of a region s natural resources can result in a win win but does require a regional initiative Land in particular is an important resource in regional economy since reversing land use is dif cult and very costly any land use commitments shape the County s future and economic outlook for decades if not centuries 102 University of Idaho Sustainable Communities Initiative The Valley County Bloreglonal Atlas Governing Valley County landuse Con icting economic use The tourist industry benefits from scenic views access to trails wilderness and lakes walkable and compact towns with shaded trees and inviting shops However given traditional single purpose zoning and no infrastructure planning the economic incentives for developers is to go counter most of this and will spread out on cheaper quotGreenfieldsquot or build quothobby farmsquot with exclusive access to wilderness or water 1 Snow mobile recreation represents a very profitable sector within tourism as does crosscountry and skate skiing The two activities draw separate crowds and Valley Counb should cater to both groups But cross country skiers don39t want snow mobiles around and vice versaThe same goes for Hiking and ATV recreation Preserving regional resources Geothermal Energy could be a strategic activity for the Valley as already identified by citizens This would be especially true if combined with greenhouse farming Next to starting a pilot project a careful assessment of where these activities are going to be best located is essential for success As discussed under inputs bringing back small farming to the Valley in an economically sustainable manner would benefit the regional economy Preserving the fertile land for that use would be a senice for all generations to come I Valley Cou nty 4 2 natural migration Figure 112 Population change in 2005 Source 2005 census1 Infrastructure and Locality A computer can be assembled in Boise Los Angeles or Shanghai 7 assuming there is an educated workforce The deciding factors for a business location then become cost and transportation access and finally locality a broad term that covers the general attractiVeness of a region Idaho under GOVernor Kempthorne has established a Rural Economic Development InitiatiVe in 2001 dedicating 12 regional professionals to guide regional development 39 in Valley County this initiative is supported by ValleyBoise County McCall Cascade Donnelly and the I 0 Department of Commerce and executed by John Blaye The initiative coVers crucial infrastructural aspects like hotel capacity telecommunications roads and airport infrastructure Rather than duplicating their analysis7 this Atlas will therefore only highlight a few issues that haVe consequences for county and city planning The graying of the population The 2005 census on population change summarizes a trend of perpetual graying of the population Whereas migration into Idaho and Valley County exceeds natural population growth population growth in Valley County is almost exclusiVely through migration This will ultimately haVe an impact on workforce and infrastructure and thus the economy s resilience University of Idaho Sustainable Communities Initiative 103 Economics Economics The Valley County Bioregional Atlas Affordable Housing 50000 Income per capita Figure 101 considers the idah regional wealth for the entire population including Va ey county retirees etc and indicates that Valley County is relatively 40000 81 wealthy compared to Idaho State Average earnings per 3 77 job focuses on the economic well being of the community s workforce and tells a more nuanced story From 1978 to 1998 average earnings per job steadily sso ooo decreasedviii compared to Idaho State but then in 2004 started to narrow the gap with Idaho Figure 103 mainly due to the higher pay in construction jobs This 20000 trend combined with a higher entry price in the housing market Figure 104 follows a development seen in many reson economies The su porting jobs in the hospitality sector usually provide relatively low earnings per job income at the same time the home market is crowded by second home buyers and seasonal renters causing prices to spiral upward The end result is that housing becomes unaffordable for the community s workforce This housing gap has not yet reached the problematic levels observed in older resort towns Sun Valley Jackson Hole rents for example are still stable Without pro active planning from county and cities and with continued growth of the Tamarack resort this imbalance is bound to escalate however City and County rules and regulations A periodic evaluation of county rules and regulations based on broad community input is one of the strongest tools for economic progress and can be equally effective in giving the region a competitive edge as is any physical infrastructure improvement Con icting interests in land use and resources make it difficult for individuals or single corporations to shape a region s economic future guidance through regional policies can make all the difference In this case no planning or regulation is also planning the existing traditional single purpose zoning with no or little infrastructural plans cause developers to spread out on cheaper Greenfields or build hobby farms ix 1 7 an undesirable outcome from an economic point of view 1998 2000 2002 2004 2006 Figure 113 Average earnings per job1 Average earnings per job are estimated by dividing the total earnings by total employment 50 40 30 20 49 at 9 o o 5 o 6quot 9 i539 i 1 1 1 o 3 t 4 96 Iquot 3 59 55 392 i 9 s i 9 391 393 5 19 i 5 49 5amp9 5 0 Figure 114 Year 2000 housing cost in Idaho and Valley County Source 2000 Census1 Traditional rules that can stifle business A new trend in highend tourism is cottage sze bed andbreakfast accommodations attractive homes in scenic locations that cater to a few guests at a time Traditional do or camp regulations as in Valley Counw often prevent this from flourishing simply because they require excessive road parking or building conditions that are geared for hotels and motels If the Counw would try to restart small farming it may encounter similar regulation issues do the county39s regulations allow a farmer39s market agricultural tourism cheese production at the farm or mobile abattoirs to allow local slaughtering University of Idaho Sustainable Communities Initiative The Valley County Bioregional Atlas Summary State of the region s economy 0 Valley County s wealth measured as capita income is about 20 higher than Idaho State The large proportion of hospitality jobs in the county however brings down the average workforce wages to below state average This lower wage average combined with increased prices in the housing market show the beginnings of a resort economy where affordable housing becomes a scarce 0 Three activities sponsor 85 of the wealth in the County in order of impact construction in the tourism sector the hospitality business hotels resorts and restaurants government primarily the education and forest service 0 Tourism generates 65 of all jobs in the county two thirds through new money with the rest multiplied through recirculation of that money The economy s resilience This seetian facnses 0n vulnerabilities and rabnstness 0f the regianal eeanamy Vulnerabilities are nnavaidable but ance recagnized can be better cantralled and managed 0 Even though the County s employment is highly dependent on tourism 65 which is exaggerated by the Tamarack construction the region has a diversified all season portfolio of activities within tourism and has recently initiated adding white water rafting to that portfolio 0 The County s competitive edge is being strengthened by ongoing Regional Economic Development efforts these focus specifically on upgrading the Valley s communications infrastructure business in general and transportation infrastructure accessibility as well as diversifying its base industry wider job opportunities 0 There is little land use governance to protect natural resources in general or the seasonal and scenic assets that underlie tourism specifically This may in time erode some of the region s competiveness 0 The Valley County economy is highly dependent on trade in little of the regions own natural resources are used to generate supplies food construction materials and energy and most of it is imported This in itself is not a disadvantage but requires a higher output from the region s economy to pay for the imports and increases vulnerability to outside economic factors The already initiated feasibility study on Geothermal Energy and greenhouse farming could be a great start to reduce this dependence 0 The recent contribution of construction to the economy primarily within Tamarack resort provides 40 of new money since this activity is not long term sustainable this will in time require a gradual but significant adjustment University of Idaho Sustainable Communities Initiative 105 Economics The Valley County Bioregional Atlas Citations Bibliography and Credits 1 The Valley County Geothermal Energy Teamt GEOTHERMAL ENERGY STRATEGIC PLAN FOR VALLEY COUNTY IDAHO httpwwwenergytidahotgovt November 2007 httpwwwtenergytidahot g0valternativeffuelsgeothermalreportsValleinountineoiStrategiciPlaniwithic overiFinaltpdf accessed 10 15 2008 2 Tamarack owners file for bankruptcy K dahoStatesmantcomt 02 02 2008 John De Witt Civic Environmentalism In Environmental Governance Reconsidered by Robert F Durant Daniel Fiorino and Rosemary O39Learyt Boston MIT 2004 O39Leary Rosemary Tina Nabatchi and Lisa Binghamt Environmental Con ict Resolution In Environmental Governance Reconsidered by Robert Durant Daniel Fiorino and Rosemary O Learyt Boston MIT 2004 Thayer Robert L Life Placer Berkeley University of California Press 2003 Blaye John Personal communication October 16 2008 VAPP V alleyAdams County Planning Partnership 2007 Regional Economic Development Strategic Plan Available online at httpirptidahotg0vHomeCommunityiReviewt Access Date October 4 2008 Guaderrama Mr Meyer Ni Harp At Hines St Webb L amp Taylor G 2000 l2 15 The Valley County a regional InputOutput model Departmental Working Paper Retrieved 10 15 2008 from University of Idaho dept of Agricultural Economica and Rural Sociology httpwwwtagtuidahoteduaersPDFAEES2000AEES0009tpdf ix Travis William Riebsamet New Geographies of the American West Land Use and the Changing Patterns of Place Washington DC Island Press 2007 Bibliography Durant Robert F Daniel J Fiorino and Rosemary O39Leary t Environmental Governance Reconsideredt Cambridge The MIT Press 2004 Mitchell Victoria History of the Lucky Lad Franklin D and Mountain Chief Mines Valley County Idaho IdahoGeologytcomt 03 2008 httpwwwtidahogeologytorgPDFStaffRep0rtsS2008StaffReport08 lipdf accessed 11 25 2008 Petersen Duane Lt Lonesome whistle Shay railroad logging in central Idaho Cascade DampD books 2008 Petersen Duane Lt Valley County the way it was Cascade Idaho DampD Books 2002 Peterson Rosst Idaho New York 1976 Rees WtEt Ecological footprints and the appropriate carrying capacity what urban economics leaves out Environment and Urbanisation 4 not 2 1992 121130 Thayer Robert L Life Placer Berkeley University of California Press 2003 US department of commerce Regional Economic Data Bureau ofEconomic Analysis 2006 httpwwwtbeatg0vindexhtm accessed 11 04 2008 US dept of Agriculture Forest Service Intermountain Regional Office Mine cleanup program httpwwwifsfedtusr4minecleanupr47compiprthtml accessed 11 l 2008 US Forest Service Deadwood MineMill cleanupt US Forest Intermountain regionr httpwwwifsfedtusr4mine7cleanupmciprojectsDeadw00d2tpdf accessed 11 25 2008 Credits Dr Phil Watson assistant professor at the Department of Agricultural Economics and Rural Sociology at the University of Idaho He executed the IMPLAN 2006 Inputoutput Analysis from whichI could further derive the necessary data John Blaye Director of Regional Economic Development of Valley and Adams County for his input and timer University of Idaho Sustainable Communities Initiative