FOSTERING ECONOMIC GROWTH, ENSURING ECONOMIC JUSTICE:  BOSTON'S CHALLENGE

Remarks of Boston Mayor Raymond Flynn
September 26, 1985

        WHEN I WAS TRYING TO FIGURE OUT WHAT I MIGHT SAY TODAY ABOUT OUR EFFORTS TO ENCOURAGE ECONOMIC GROWTH THAT BENEFITS EVERYONE, I THOUGHT ABOUT A WELL-KNOWN STORY ABOUT JAMES MICHAEL CURLEY AND THE BANK OF BOSTON.  I THINK THE STORY WILL TELL US SOMETHING ABOUT THE PROGRESS THAT WE'VE MADE IN THE CITY OF BOSTON.

        AS MANY OF YOU KNOW, JIM CURLEY WAS THE ESSENTIAL BIG CITY, IRISH-AMERICAN MAYOR. HIS STYLE AND HIS POLICIES WERE THE PRODUCT OF A WORKING-CLASS POPULATION, MOST OF IT IRISH, THAT HAD COME OF AGE AS A POLITICAL AND ECONOMIC FORCE IN THE LIFE OF THE CITY.

        BUT IN THE 1930'S AND 40'S, BOSTON WAS A VERY DIFFERENT PLACE THAN THE RENAISSANCE CITY WE KNOW TODAY.  THE OLD INDUSTRIES WERE FAILING AND THE ECONOMY WAS GENERALLY STAGNANT.  FOR REASONS THAT WENT BEYOND THE REALITIES OF THE GREAT DEPRESSION, DOWNTOWN BOSTON WAS A SCRUFFY AND SAGGING AREA, WITH ONE FOOT PLANTED FIRMLY IN THE NINETEENTH CENTURY.

        IN THIS ENVIRONMENT, THE BANKERS WERE NOT VERY INTERESTED IN JIM CURLEY'S GRAND SCHEMES TO USE THEIR MONEY TO BUILD UP THE INFRASTRUCTURE OF THE CITY.  AND THE FLAMBOYANT CURLEY, IN TURN, SAW THE BANKERS AS MUSTY OLD YANKEES WHOSE IMAGINATIONS WERE AS LIMITED AS THEIR LOVE FOR THE IRISH.

        WELL, ONE DAY JIM CURLEY LOST HIS PATIENCE WITH THE BANK. WHEN THE BOARD OF DIRECTORS REFUSED HIM A LOAN THAT WOULD RESCUE THE CITY FROM THE EDGE OF BANKRUPTCY, HE GAVE THEM AN ULTIMATUM. WITH A FLOURISH OF ORATORY AND A THEATRICAL EXIT, HE TOLD THEM THAT HE WOULD HAVE HIS LOAN OR THEY WOULD HAVE A VAULT FULL OF WATER. HE TOLD THEM AN ACCIDENTAL RUPTURE OF THE WATER MAIN INTO THE BANK'S BASEMENT WOULD BE IMMINENT IF THE WORKING FAMILIES OF THE CITY WERE SPURNED BY THE BANK.

        WELL, CURLEY GOT HIS LOAN, AS THE LEGEND GOES, AND HIS BOYS IN THE PUBLIC WORKS DEPARTMENT WERE ABLE TO AVERT THE IMPENDING ACCIDENT.

        AND IN 1985, THE STORY STILL SERVES AS A POINT OF DEPARTURE, TO SHOW HOW FAR WE'VE COME IN THE INTERVENING YEARS.

        TODAY, WE ARE STILL A CITY WITH PROBLEMS. BUT, IN CONTRAST WITH THAT GREY PERIOD IN THE 1930'S, OUR CONTEMPORARY CHALLENGES ARE THOSE ASSOCIATED WITH GROWTH RATHER THAN DECLINE.  AND WE HAVE ESTABLISHED A HIGH LEVEL OF COOPERATION BETWEEN THE PUBLIC AND PRIVATE SECTORS.

        BOSTON, 1985, IS THE DEFINITION OF GROWTH, AND IT WILL REQUIRE INCREASED COOPERATION TO MAKE GROWTH WORK FOR EVERYONE.

        FOR THE FIRST TIME IN 15 YEARS, THE CITY'S POPULATION IS ON THE RISE.  BY SEVERAL DIFFERENT MEASURES, IT IS CLEAR THAT WE ARE AGAIN WELL ABOVE THE 600,000 MARK IN POPULATION, WITH SIGNIFICANT GROWTH IN ALL CATEGORIES OF ETHNICITY: WHITE; ASIAN; HISPANIC, AND BLACK. IN FACT, WE ARE ONE OF THE ONLY SNOWBELT CITIES THAT IS EXPERIENCING GROWTH IN POPULATION.

        THE INVESTMENT CLIMATE IN THE CITY IS VERY FAVORABLE.  MOODY'S INVESTOR SERVICE UPPED OUR BOND RATING FROM NONINVESTMENT TO INVESTMENT GRADE THIS YEAR.  A LARGE PART OF THE REASON FOR THE IMPROVED GRADE WAS THE IMPROVED MANAGEMENT PRACTICES IN CITY HALL. AND THAT CONFIDENCE WAS BORNE OUT IN THE MARKETPLACE WHEN OUR $65 MILLION SPRING BOND ISSUE SOLD OUT IN RECORD TIME: WITHIN FOUR HOURS ON THE FIRST DAY OF SALE.

        COMMERCIAL DEVELOPMENT, FOCUSED AT PRESENT IN THE DOWNTOWN SECTION OF THE CITY, IS RESHAPING THAT AREA WITH AN UNPRECEDENTED SURGE IN INVESTMENT. IN 1984-85, WE WILL HAVE SEEN A TOTAL DOLLAR VALUE OF $1.69 BILLION INVESTED IN NEW COMMERCIAL PROJECTS. THIS INVESTMENT IS EXPECTED TO CREATE 21,000 CONSTRUCTION JOBS AND 35,000 NEW PERMANENT JOBS.

        AS MANY OF YOU HAVE READ RECENTLY, HOUSING PRICES ARE INCREASING AT THE GREATEST RATE OF ANY CITY IN THE U.S.  WE SAW A 37 PERCENT RISE IN HOUSING PRICES IN THE PAST YEAR.  THESE RUNAWAY HOUSING PRICES CAN BE ATTRIBUTED TO SEVERAL FACTORS, INCLUDING POPULATION GROWTH, A SURGE IN COMMERCIAL INVESTMENT AND THE NEW PHENOMENON KNOWN AS THE INVESTOR CONDOMINIUM.  AT THE MOMENT, DEMAND FAR OUTSTRIPS THE SUPPLY OF HOUSING IN BOSTON.

        PROGRESS ALSO CAN BE MEASURED INSIDE CITY HALL, IN THE LESS GLAMOROUS CHORES SUCH AS IMPROVED FINANCIAL MANAGEMENT AND EXPANDED REVENUE SOURCES.  WE HAVE ACCOMPLISHED A LOT OF THESE TASKS OVER THE PAST 21 MONTHS.  AS I AM SURE YOU KNOW, THE HIGH POINT OF THIS EFFORT CAME THIS SPRING WITH THE ENACTMENT BY THE LEGISLATURE AND THE GOVERNOR OF NEW REVENUE SOURCES FOR THE CITY:

        ON ANOTHER FRONT, IT WILL BE RECORDED THAT THE 1970'S WERE A PERIOD WHEN POLITICAL LEADERSHIP SLID INTO THE HANDS OF THE COURTS ON THE STATE AND FEDERAL LEVELS.  JUDGES AND COURT-APPOINTED RECEIVERS SUPERVISED THE

        OPERATION OF THE PUBLIC SCHOOLS AND PUBLIC HOUSING AND THE HIRING OF POLICE AND FIREFIGHTERS.

        1985 WILL BE RECORDED AS THE YEAR IN WHICH THIS PROCESS WAS REVERSED, AS CONTROL OVER PUBLIC HOUSING AND PUBLIC EDUCATION WAS RETURNED TO THE MAYOR AND OTHER ELECTED LEADERSHIP.

        NOW FOR THE BAD NEWS.

        FOR TOO LONG, JUSTICE IN THE ECONOMY MEANT "JUST US".  IN THE MIDST OF ALL THIS POTENTIAL PROSPERITY, WE ALSO SAW THOUSANDS OF FAMILIES SINKING DEEPER BELOW THE POVERTY LINE.  WITH THOUSANDS OF FAMILIES LIVING BELOW OR NEAR THE POVERTY LINE, IT'S CLEAR THAT WITH THE OLD POLICIES, THE RISING TIDE WILL NOT LIFT ALL BOATS.

        MY ADMINISTRATION HAS BEEN ON THE RECORD MANY, MANY TIMES WITH OUR COMMITMENT TO ECONOMIC JUSTICE.  BUT, WHETHER IT'S POLITICALLY COMFORTABLE OR NOT, WE HAVE, THROUGH OUR STATED COMMITMENT, ENCOURAGED PEOPLE TO HAVE GREATER EXPECTATIONS IN AREAS SUCH AS HOUSING; JOBS, AND BASIC SERVICES.

        A GREATER SENSE OF HOPE ALWAYS.BRINGS WITH IT A GREATER SENSE OF EXPECTATION.

        IN THESE CIRCUMSTANCES, WE MUST HAVE A STRATEGY THAT DOES TWO THINGS: FOSTERS ECONOMIC GROWTH AND ENSURE THAT EVERYONE WHO INVESTS IN BOSTON --WHETHER THEY INVEST THEIR PROFITS OR THEIR LABOR -- GETS A FAIR RETURN IN TERMS OF SERVICES AND A DECENT QUALITY OF LIFE.  AND WITH THE COOPERATIVE RELATIONSHIP WE HAVE BUILT WITH THE BUSINESS COMMUNITY, IT DOES NOT APPEAR THAT WE WILL NEED TO THREATEN TO FLOOD ANYONE'S BASEMENT TO GET THEM TO JOIN IN!

        THE STRATEGY MUST BE INFORMED BY A VISION AND IMPLEMENTED WITH TENACITY.  IN A PHRASE, IT MUST BE BRAINY, BOLD, AND BRAWNY.

        TO ENSURE A FAIR AND REASONABLE SHARE FOR ALL BOSTON RESIDENTS, WE NEED TO EXPAND OUR CAPACITY TO DELIVER IN THREE AREAS: JOBS, HOUSING, AND BASIC SERVICES. THE CITY ENJOYS ONLY PARTIAL CONTROL OVER DEVELOPMENTS IN THE FIRST TWO AREAS.  SERVICES ARE OUR EXCLUSIVE DOMAIN, AND THIS IS OUR POINT OF DEPARTURE.

        OUR CONCENTRATION IN THE AREA OF BASIC SERVICES IS THE BLUEPRINT FOR CAPITAL CONSTRUCTION THAT WE RELEASED EARLIER THIS MONTH.  IT IS A $632 MILLION REINVESTMENT IN FACILITIES FOR IMPROVED POLICING, PUBLIC HEALTH CARE, ROADS AND BRIDGES, PARKS, AND YOUTH PROGRAMS.

        IT IS A VIRTUAL MARSHALL PLAN FOR A CITY WHOSE INFRASTRUCTURE HAS BEEN DEVASTATED BY NEGLECT.

        AS YOU MAY KNOW, BOSTON DID LITTLE CAPITAL BUILDING AND EVEN LESS PLANNING IN THE PAST SEVERAL YEARS.  IF WE ARE TO FOSTER GROWTH AND OPPORTUNITY, WE NEED TO HAVE ROADS THAT WILL GET YOU TO WORK.

        AS WE MOVE FORWARD ON THIS LONG-TERM REBUILDING, WE ARE ALSO STEPPING OUT WITH A PLAN TO RESHAPE THE ECONOMIC GEOGRAPHY OF THE CITY.  THE OLD CONCEPTS OF DEVELOPMENT SAW THE RESIDENTIAL NEIGHBORHOODS HUDDLED IN THE SHADOW OF THE GLEAMING DOWNTOWN SKYSCRAPERS.  OUR VISION SEES CONTINUED DOWNTOWN DEVELOPMENT BUT ALSO SEES A BUILDING UP OF ECONOMIC MUSCLE IN THE RESIDENTIAL AREAS.

        AS DETAILED IN OUR "DOWNTOWN PLAN," WE WANT TO CONTROL GROWTH IN A WAY THAT DOES NOT CONTAIN IT BUT DIRECTS IT. THROUGH THE PIONEERING CONCEPT OF PARCEL-TO-PARCEL LINKAGE, WE ARE TELLING DEVELOPERS THAT IF THEY WANT TO BUILD DOWNTOWN, THEN THEY ALSO SHOULD BUILD ON AVAILABLE LAND IN THE NEIGHBORHOODS. OUR INITIAL EFFORTS ARE CONCENTRATED ON SEVERAL PARCELS OF LAND THAT WERE CLEARED FOR THE CONSTRUCTION OF THE NEW ORANGE LINE ALONG THE SOUTHWEST CORRIDOR IN THE SOUTH END AND ROXBURY.

        IF WE ARE SUCCESSFUL IN THIS PROJECT, WE WILL SEE JOBS AND ECONOMICALLY VITAL NEIGHBORHOODS, WITHOUT DAMPENING THE OVERALL SURGE OF INVESTMENT.

        I WOULD ADD PARENTHETICALLY THAT THE PLAN ALSO CALLS FOR BETTER MONITORING OF THOSE PROJECTS THAT ARE BUILT DOWNTOWN. WE DO NOT WANT TO SACRIFICE THE UNIQUE ARCHITECTURAL CHARACTER OF BOSTON TO THE GODS OF GLASS AND CONCRETE SLABS.

        AFTER MANY LONG MONTHS OF MEETINGS AND DISCUSSIONS, WE ALSO WERE ABLE TO BRING TOGETHER THE BUILDING TRADES UNIONS, THE DEVELOPERS, AND MINORITY COMMUNITY LEADERS AROUND A POLICY THAT GUARANTEES JOBS FOR BOSTON RESIDENTS ON ALL MAJOR CONSTRUCTION PROJECTS IN BOSTON.

        THIS BOSTON JOBS FOR BOSTON RESIDENTS POLICY WILL MAKE IT POSSIBLE FOR BREADWINNERS IN BOSTON TO SUPPORT THEIR FAMILIES WITH A LIVING WAGE EARNED AT A JOB IN THEIR OWN CITY:

        FINALLY, IF WE ARE TO HAVE A CITY THAT WORKS FOR EVERYONE, WE MUST INCREASE THE SUPPLY OF AFFORDABLE HOUSING.  IN THE 1960'S AND 70'S, THE BULLDOZER AND THE WRECKING BALL TUMBLED THOUSANDS OF UNITS OFF THE MARKET.  IN THE 1980'S, WE HAVE BEGUN TO REPLENISH THE RENTAL HOUSING STOCK, BUT IT STILL IS NOT KEEPING PACE WITH DEMAND.  WE ARE SEEING RISING PRICES, BUT NOT ENOUGH OF THE PROFITS ARE BEING REINVESTED IN NEW HOUSING.

        THESE FACTORS, PLUS A GROWING POPULATION, STRAIN THE HOUSING SUPPLY. AT THE SAME TIME, FEDERAL SUPPORT FOR HOUSING CONSTRUCTION HAS DWINDLED TO THE POINT AT WHICH IT IS BARELY A FACTOR IN THE FINANCING OF NEW HOUSING.

        WE HAVE COMPENSATED SOMEWHAT FOR THE WITHDRAWAL OF THE FEDERAL GOVERNMENT THROUGH THE USE OF PUBLIC-PRIVATE PARTNERSHIPS.  IN FACT, SINCE JANUARY 1, 1984; THROUGH THE USE OF TAX-EXEMPT BONDS, OVER 1300 NEW RENTAL UNITS WERE BUILT IN BOSTON.

        BUT JUST AS THESE PARTNERSHIPS ARE HITTING THEIR STRIDE, THE FEDERAL TAX REFORM PROPOSAL THREATENS TO KNOCK THEM FLYING WITH A CROSS-BODY BLOCK KNOWN AS THE ELIMINATION OF TAX-EXEMPT FINANCING.  IF TAX-EXEMPT FINANCING IS ELIMINATED, WE FACE EVEN GREATER OBSTACLES TO THE PRODUCTION OF NEW HOUSING.

        BUT WHETHER THE FEDERAL GOVERNMENT CHOOSES TO BE AN ALLY OR AN OBSTACLE TO OUR EFFORTS, WE STILL PLAN TO DO EVERYTHING HUMANLY POSSIBLE TO BUILD THE CRITICALLY-NEEDED NEW HOUSING. RIGHT NOW, WE ARE AT THE DRAWING BOARD TRYING TO DEVISE CREATIVE TACTICS TO BUILD HOUSING.

        THE CHALLENGE BEFORE THE CITY OF BOSTON IS TO CRAFT A CITY THAT WORKS FOR EVERYONE.  AS WE TOIL AT THIS PROJECT FROM DAY TO DAY, ONE SELDOM TAKES THE TIME TO WONDER WHAT PEOPLE WILL MAKE OF OUR EFFORTS.  LONG AFTER THE ECHO OF ALL THE WORDS HAS DIED AWAY, I GUESS I CAN ONLY HOPE THAT THEY WILL RECORD THAT NO ONE EVER TRIED HARDER, WITH GREATER TENACITY AND DEDICATION.

        THANK YOU.

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