March - April 2004
               
Business Bedrock: Re-Developing Downtown  
 

Since World War II, America has built farther and farther out from its core cities and our daily life has increasingly revolved around commuting. As the population centers have moved outward, urban centers have often suffered. As some of the disadvantages of sprawl become more apparent, and combine with the problems of aging infrastructure, cities of all sizes are now facing the challenges of how to revitalize downtown areas.

All too often in the past, solutions have either favored ‘livability’ or ‘economic development’. Proponents of each have faced off in battles which often leave both sides dissatisfied. Cities everywhere are in search of solutions which can make everyone winners…and most of all bring life back into downtown. While each city can look and learn from others, each situation may vary considerably depending on geography, existing social climate, and economic opportunities.

Most communities have concluded that a successful plan involves mixed-use development and most revolve around tourism, sports, entertainment, and housing. Beyond that, the programs to implement change vary considerably. It seems ironic that a key for most revitalization programs is to attract residents back into the city center after so many years of pushing residential areas farther and farther out. What many cities have found, however, is that big commercial projects alone can’t sustain sufficient downtown retail, dining, and entertainment life.

While mixed-use development makes sense in the abstract, efforts to create these projects often meet stiff resistance. Anything that changes the status quo is met with suspicion by those who will be affected the most. Some worry that it is simply a re-allocation of tax money without clear benefit. Often the new housing created is too upscale for existing residents to afford so the plans must often include low-income and subsidized housing, but the overall purpose is to attract young educated professionals and empty nesters with dollars to spend.

Tucson is not the only city facing these issues! In Hartford, CT, massive downtown development has been spurred through a use of public capital investment to create what Governor Rowland calls an economic “ripple effect” – meant to encourage matching private investment. The state has committed more than $600 million, primarily into the Adriaen’s Landing project, but also for the renovation of the Hartford Civic Center and the development of housing. Adriaen’s Landing is a 30 acre development along the Connecticut River which will contain a massive convention center, hotel, and Market Square – high-end apartments, retail shops, restaurants, and nightclubs.

Overall, more than 3000 housing units are planned or under construction in the downtown area - with the idea that apartments will help push commercial development. While the project has met many bumps along the way, outside investors are committing more funds into the surrounding areas - for housing, hotels, and retail. An added benefit is that many of these projects involve extensive renovations and re-purposing of buildings which have long been empty.

In totally different circumstances, Tucson, AZ has also embarked upon an amazingly similar downtown revitalization plan that combines public and private investment and also emphasizes housing – over 2000 new residential units. Tucson’s Rio Nuevo Plan encourages private development with tax incentives and land use code revisions. Like Hartford, the plan includes improvements to its convention center. Tucson’s project has also benefited from its designation as a Federal ‘empowerment’ zone which gives employers major tax incentives.

The plan recently received a big boost by the University of Arizona’s decision to build a Science Center downtown. The Center will not only serve the University but will also include many public attractions. The city estimates it will bring 420,000 visitors to the area annually. Even more importantly it is expected to spark additional investment interest in the downtown area. Interestingly enough, a science center has also been considered in the Adriaen’s Landing Project in Hartford.

Wherever the projects are, to be successful, they must mobilize the public, business, and development communities with a focus on how changes can benefit all. While specific ‘dreams’ vary, we all want improved quality of life and an opportunity to make a good living. Developers and those in the construction industry often find that there are substantial tax benefits and other financial incentives in re-development as cities push to achieve their goals.

At present there are no magic wand solutions but cities everywhere are getting into the trenches and attempting to bring life back into downtown areas which have long been silent. In most cases, it’s way too early to see the end results, but there is definitely increasing interest in life ‘downtown.’



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