THE BEHAVIOR OF RURAL LANDOWNERS IN RESPONSE TO LOCAL ECONOMIC DEVELOPMENT: THE CASE OF WEST GREENWICH, R.I.

Abstract

Rhode Island, like most of the United States, has experienced a shift in population and settlement patterns from the central city to less developed suburban and rural communities. This pattern within the state is expected to continue and to be amplified by an industrial extension of development which follows the major inter-state highway south to West Greenwich. This area has the lowest population density in the state. Digital Equipment Corporation, the world's largest maker of minicomputers, is expected to construct a new facility in this area on a 147 acre site acquired from the state Port Authority and Economic Development Corporation for $1,673,314. (Providence Journal 7/29/80). The State acquired the land in October of 1978 for ten thousand dollars per acre to forestall speculation and/or the increase in land value until such time as Digital could finalize the plan to locate in Rhode Island (Providence Journal 7/2/80). In addition to an attractive price, the State gave Digital a strong commitment to public improvements. The State's entire 1978 federal public works allotment, $3.9 million, was used to extend sewers to the site. A project to provide better access to this site is underway costing three million dollars, which will build a Route 95 interchange at Hopkins Hill Road (Evening Bulletin 4/16/81). The State's policymakers obviously expect Digital to provide a significant boost to the state's economy. The new facility will be designed for research, engineering and administrative purposes. It is expected to employ up to 700 persons within a year after its projected completion in late 1983 (Evening Bulletin 4/16/81). The location of Digital establishes a new node of employment which may lead to further development. The Town of West Greenwich has proposed to rezone 100 acres on the west side of Hopkins Hill Road from farming-residential to industrial (Evening Bulletin '1/16/81). Satellite companies and service firms are expected to capitalize on the opportunities initiated by Digital and supportive public policies. Demand for residential development is likely to increase in the surrounding areas. Clearly, the market demand for residential, commercial, and industrial purposes will compete for land which is presently allocated to rural uses. This process of urban growth has been condemned for the unnecessary loss of agricultural land, timber stands, and open space, the ugliness of sprawled development and its inefficiency (e.g. Clawson 1962, Real Estate Research Corporation 1974, Wallace 1970, Whyte 1968). On the other hand, proper management of