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Economic Development andSmart Growth
8Case Studies on the Connectionsbetween Smart Growth Developmentand Jobs, Wealth, and Quality of Lifein Communities
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Economic Development and Smart Growth8 Case Studies on the Connections Between Smart Growth Developmentand Jobs, Wealth, and Quality of Life in Communities
Editors:
Alex Iams
Pearl Kaplan
August 2006
International Economic Development Council734 15th St. NW, Suite 900
Washington, DC 20005202.223.7800
www.iedconline.org
This report was developed under a cooperative agreement between IEDC and the US
Environmental Protection Agency (PI-83224701-0). The opinions in this report do notnecessarily represent the views of the EPA.
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ACKNOWLEDGEMENTS
EditorsAlex IamsAssociate, Advisory Services & ResearchInternational Economic Development CouncilWashington, DCPearl KaplanSenior Associate, Advisory Services & ResearchInternational Economic Development Council
Washington, DCCase Study AuthorsAlex IamsPearl KaplanAndrea BauerfeindJenifer HuestisKathleen QuillinanContributing authorsMary Kay Bailey
Jessica SchaefferProject AdvisorEd Gilliland, CEcD, AICPVice President, Advisory Services & ResearchInternational Economic Development CouncilWashington, DCCover Photo: Arena District in Columbus, Ohio. Courtesy of Nationwide Realty Investors.
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TABLE OF CONTENTS1
Introduction..................................................................................................................................... 5
Transit-Oriented Development ....................................................................................................... 8The Brewery Blocks, Portland, OR .......................................................................................................... 8
Silver Spring Downtown Redevelopment, Silver Spring, MD...............................................................14Commercial Corridor Revitalization............................................................................................. 20
East Carson Street, Pittsburgh, PA ......................................................................................................... 20Main Street Program, Burlington, IA ..................................................................................................... 24
Targeted Area Redevelopment ..................................................................................................... 29
Arena District, Columbus, OH ............................................................................................................... 29Belmar, Lakewood, CO..........................................................................................................................34
Arts and Entertainment District .................................................................................................... 39Fountain Square, Indianapolis, IN..........................................................................................................39
Artist Relocation Program, Paducah, KY.................................................................................................... 44
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INTRODUCTIONWhy Smart Growth?
Communities are facing new challenges inattaining economic growth, increasing wealth, andimproving quality of life for residents. Economicdevelopment organizations (EDOs) strive to growand improve the communities they serve byattracting and retaining development, residents,and jobs. However, growth and development, ifmanaged improperly, can negatively affect acommunitys quality of life, leading to automobilecongestion, pollution, pedestrian-hostileneighborhoods, and sprawl. To accommodate anincreasing population and demand for housing,
services and infrastructure, local governments areseeking to sustain growth and increase their taxbase without upsetting the qualities that maketheir communities pleasant places to live andwork.Local governments seeking to create quality placesare employing a range of asset-building techniquessuch as targeted area redevelopment, revitalizationof commercial corridors with businesses, shops,and homes, and increasing transportation options.These strategies aim to provide more convenienceand choice for residents and employees and
emphasize quality of life. Increasingly, EDOs arerecognizing that such land development practicesare tied to economic success as well.For communities and businesses, attracting andretaining qualified employees is a major concern.To compete, many communities are employinginnovative development strategies, often referredto as smart growth, that simultaneously supportmultiple economic and quality of life goals. Placesthat thrive in the new economy and attract aneducated workforce are distinctive, attractive and
rich in amenities.1 Existing infrastructure,proximity to employment, and access to transit areamong factors that make communities attractiveto developers, businesses and residents. Smartgrowth is based on mixing land uses, using landandinfrastructure efficiently, creating walkableneighborhoods that are attractive and distinctive,providing transportation and housing choices, and
Principles of Smart Growth1. Mix land uses
2. Use land efficiently3. Create a range of safe, convenient, andaffordable housing opportunities andchoices
4. Create walkable neighborhoods5. Foster distinctive, attractive communities
with a strong sense of place6. Preserve natural lands, farmland, and
critical environmental areas7. Strengthen and direct development toward
existing communities8. Provide a variety of transportation choices9. Make development decisions predictable,
fair, and cost-effective10. Encourage community and stakeholder
collaboration in development decisions
encouraging community and stakeholdercollaboration in development decisions.IEDCs report demonstrates the connectionbetween smart growth strategies and economicdevelopment. Eight case studies present
communities that implemented projects thatincorporate smart growth principles and have alsoexperienced economic development success in theform of increased tax revenue, more jobs, higherincome levels, downtown revitalization, businessgrowth and other economic indicators.How Smart Growth Relates to EconomicDevelopmentIn their classic text on local economicdevelopment, authors Edward Blakely and TedBradshaw note that, industry and business regardlivability as an important locational factor. They
assert that local governments need to identifytheir quality of life attributes, build on them andeffectively promote them to the businesscommunity.2 Failing to invest in these attributescan have negative consequences for a local, stateor regional economy. In 2003, for example, theBrookings Institution found that Pennsylvaniasland development practices, which had the effectof decentralizing growth and weakening the states
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established communities, contributed to the statesloss of young people and its subsequent job andwage stagnation.3
The current economy values proximity andclustering. Placing jobs, homes, shops and
recreation in proximity increases businessopportunities, helps create a sense of place, andcan draw in talented workers. When housing is apart of revitalization, the additional householdscan spur further business demand for nightlife,services and shopping. Creating places withround the clock activity, as opposed to a nine tofive atmosphere, allows businesses to spread outtheir peaks in services. In suburbs and cities alike,the Urban Land Institute and PricewaterhouseCoopers annual Emerging Trends in RealEstate favorably rated 24-hour markets for over a
decade, recognizing the increasing attractivenessof these areas to young professionals and emptynesters.4Clustering of firms also allows for interactionbetween employees, related businesses and evencompetitors. Proximity improves a firms access toideas, suppliers and resources. The traditionaloffice park model, with buildings surrounded byparking and landscaping is inward focused anddoes not easily create opportunities forspontaneous interaction. Many firms are findingthat job sites integrated with other uses likerestaurants, shops and homes provide employeeswith choices and amenities rarely found in officeparks. The desirability for office space in mixed-use settings with access to transportation choiceshas been reflected in higher occupancy rates,property values and lease premiums.5
While most firms do not need to be located nextto rivers or freight railways anymore, manycommunities realize that their traffic conditionscan have an impact on their ability to attractcompanies and workers. Smart growths emphasis
on providing transportation choices so that peoplecan walk, drive, or take public transportation tohomes, jobs, and shopping can help acommunitys competitiveness as well as leveragesignificant public sector investments. In Arlington,VA, for example, a policy decision to run asubway line underground and target densityaround the corridors five stations has changed theeconomic fortune of the county. By using a
transit-oriented development model, over the pastthirty years, 75 percent of the countys roughly 30million square feet of new development has beenconcentrated in this subway corridor. Althoughthe corridor only makes up 7.6 percent of thecountys land area, it contributes 33 percent of the
countys real estate tax revenue.6Economic developers can also improve a city orregions tax base using smart growth practices bytargeting development on idle or underutilizedinfill sites. These properties, rather than being adrain on the citys economy, can be put back onthe tax roles. The national Main Streets program,for instance, uses a combination of buildingrehabilitation and design along with promotionalactivities and volunteer committees to bringeconomic revitalization to less productive
commercial corridors. According to a 2004analysis, since the programs inception in 1980,67,000 new businesses have been established,308,370 new jobs have been created and over$23.3 billion have been invested in the 1,800 or soMain Streets communities.7In addition to the economic gains, each strategypresented in the IEDC case studies alsoencourages positive environmental outcomes. Forinstance, when economic development practicesencourage the re-use of previously developed land,more pristine lands can be conserved,
contaminated sites are restored, and regionalimpervious surface cover and its attendant waterrunoff can be reduced. Similarly, practices liketransit-oriented development can help improve airquality by giving people the option to walk, bike,or take transit to destinations - reducing theamount of emissions from automobile trips.8 About the IEDC Case StudiesAs the IEDC cases illustrate, economicdevelopment activities pursued in tandem withsmart growth strategies can create synergy that
helps communities meet multiple goals. Thisreport highlights the connections between smartgrowth and economic development though theapplication of four smart growth strategies in thefollowing eight communities:
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Transit-oriented development (BreweryBlocks, Portland, OR and Silver SpringStation, Silver Spring, MD)
Revitalization of commercial corridors (EastCarson Street, Pittsburgh, PA and Main Streetprogram, Burlington, IA)
Targeted area redevelopment and infill (ArenaDistrict, Columbus, OH and Belmar,Lakewood, CO)
Creation of arts and entertainment districts(Fountain Square, Indianapolis, IN and LowerTown, Paducah, KY)
In creating this report, IEDC set out to producecase-based research to serve as examples and asource of direction for local government officials,economic development professionals, and allreaders concerned with the future of their
communities. These case studies range from theuse of transit-oriented development in PortlandOregon, where light rail has sparked $3 billion innew development, to commercial corridorrevitalization in Pittsburgh, Pennsylvania where ithas nearly doubled the per capita income in thesouth side of the city.IEDC drew on existing research and focused itsefforts on the gaps in that research. The teamrelied on locally-supplied data and where possiblemeasured job creation, property reuse andrehabilitation, changes in tax base, vacancy rates,income, business growth and the ratio of public toprivate investment. Given the limited amount andvarying state of the data, these case studies aremeant to be illustrative and demonstrate thedirection and magnitude of change associated withthe projects, rather than the projects exact impact.As results from long-term projects develop, theconnections between smart growth and economicdevelopment have become more pronounced.Economic development organizations and localgovernments are realizing that by harmonizing
these approaches they can create and retain jobs,enhance the tax base, and improve quality of lifein the communities they serve.
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City Context
cks covers five blocks on the
the 1980s and 90s, the area shed its industrial
rewery Blocks added to the districts momentum,
other West Coast cities faced
unding and Economic ImpactBrewery Blocks
a Transportation Research Board study, the Pearl
Brewery Blosouthern edge of Portlands Pearl District, aformer warehouse and light industrial area northof downtown. Having five contiguous blocks of
ownership is a unique real estate opportunity,said Allen. Its the largest project weve seen insometime.Inheritage, welcoming art galleries, boutiques, trendynightspots, and fashionable restaurants, andturning warehouses into loft apartments.Bbringing 1.7 million square feet of mixed-usedevelopment, including renovated office space,
new Class A office space, high-end retaildestinations, and luxury apartments andcondominiums. The district received anotherboost in 2001 when the city installed the PortlandStreetcar line, including stops accessible toBrewery Blocks.
As Portland and
Figure 2:
fLocation oBreweryBlocks inPortlandource:S
portlandstreet
car.com
ECONOMIC INDICATORS:3-sq mile radius from Brewery Blocks
2000 2002 2007 (est.)
Population 132,203 133,287 136,497
Number ofhouseholds
66,359 67,374 69,822
Medianhouseholdincome
$45,771 $50,395
Per capitaincome
$29,455 $34,482
Source: US Census Bureau
Project DevelopmentThe project is located on the former site of theBlitz-Weinhard Brewery, which opened in 1856.The brewery operated until 1999, when its ownerssold the Henry Weinhard brand to Miller Brewing
Company. Miller transferred production offsite,and Portland-based Gerding/Edlen Developmentpurchased the land in January 2000. GBDArchitects designed the blocks to balancecontemporary structures and amenities with anindustrial past, reusing historic buildings andmaintaining a pedestrian-scale streetscape.
economic decline and high unemployment in thewake of the dot.com burst, Gerding/Edlen took asignificant gamble with this project. However,
Portlands growth policy encouraged urban infilland made investments in projects such as theBrewery Blocks attractive. The Pearl Districtscultural amenities, housing options, and transitaccess drew a highly educated, high-incomeworkforce, which in turn brought national retailersand helped the project succeed.FThe total cost of theredevelopment was approximately $300 million.The city of Portland supplied $8 million: a $6million loan for the construction of a three-level,
1,350-space underground parking facility; and a $2million grant for infrastructure improvements.The remaining $292 million came from privatesources, producing a 36:1 private-to-publicinvestment ratio. The project has generated anincrease of over $1.3 million in property taxrevenue for the city of Portland, and the value ofthe land has shot up by 488 percent. According to
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District is the strongest urban retail market inPortland, in terms of high demand and lowvacancy rates.9 Retailers look to positionthemselves in this area because of its expandingresidential base, its relatively affluent population,its access to the Portland Streetcar, and its variety
of historic structures coupled with newdevelopment.
PROJECT FUNDING: SOURCES AND USES
Sources
City loan $6 mil
City grant $2 mil
Comm erical bank land or construction loans $72 mil
Union pension fund (direct investment) $52 mil
Construction loans by Union pension funds $36 mil
Permanent loans (institutional lenders) $53 milPrivate equity/funding $79 mil
TOTAL $300 milUses
Parking facility $6 mil
Improvements $2 mil
Land purchase $19.5 mil
New construction $200 mil
Rehab: brewhouse and cellar buildings $55 milRehab: Armory building $20 mil
TOTAL $300 mil
Investment Distribution
Private $292 mil
Public $8 mil
RATIO 36 to 1
Source for tables: Gerding/Edlen Development
rtland Streetcar Source: Wikipedia.org
cludes aus network, three light rail lines, and the Portland
. The Portland Streetcar route bisects theBrewery Blocks along 10th and 11th Streets, helping
treetcar started running in 2001, Brewery Blocksas under construction and weekday ridership was
spring 2005, weekday ridership rose to 7,837.
uare feet of commercial space: 300,000quare feet of retail and 500,000 square feet of
e blocks. The
Figure 3: Po
ransitTPortlands public transportation system inbStreetcar
it become a transit-accessible, pedestrian-orientedretail and employment center. Introduced in 2001,the city-owned and operated streetcar circulatesaround a 4.7-mile loop, linking the citysnorthwest neighborhoods with the southwaterfront, via the Pearl District and downtown.
The streetcar has had a symbiotic relationshipwith the Brewery Blocks development. When the
ECONOMIC INDICATORS:New and Rehabilitated Space (sq ft)
New Construction %
New residential space 440,000 37.26
New office space 499,000
New retail space 242,000
Total new commercial space 741,000 62.74
Total new construction 1.18 mil 100
Rehabilitated Space %
Rehabilitated office space 29,000 30.13
Rehabilitated retail space 67,260 69.87
Total rehabilitated space 96,260 100
SUM TOTAL 1.27 mil
Breakdown of Uses %
Office space 528,000 41.33
Retail space 309,260 24.21
Residential space 440,000 34.44
Total 1.27 mil 100
sw4,982. Weekday ridership grew to 5,729 in 2003,and 6,899 in 2004, as sections of the BreweryBlocks opened. As the project neared completioninThe Streetcar has been credited with leveraging$1.4 billion in investment around the transit loop.Approximately 5,200 housing units and 3.6 million
square feet of commercial development have beenbuilt in the Pearl District since the arrival of theStreetcar.Commercial DevelopmentThe Brewery Blocks contains approximately800,000 sqsoffice space, divided into fiv
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ECONOMIC INDICATORS: Chang
es in Property Values and Tax evenuesR
1999 2004Net Gain,1999-2004
C99-2004
hange,
Brewery Blocks Assessed PropertyValues $14,550,180 $71141870 $56,591,690 4.88%
B e $253,600 $1,574,207 $1,320,607 6.2%rewery Blocks Property Tax Revenu
City of Portland Property Tax Revenue $$169,557,214 313,770,748 $144,213,534 1.85%
Sources: City of Portland Department of Management 4 n por
(www.portlandonline.org) and City of Portland Maps and Data service (www.portlandmaps.com)
and Finance, 200 Comprehensive A nual Financial Re t
REGIONAL ONTEXTC
Multnomah
Portland County
2000 2003 2000 2003
Total population 529 09 660,4 125,121 526,6 86 661,
Total housing units 237,307 242,629 288,561 295,031
New units built, '00-'03 7,711 9,913
Median household income $40,146 $40,885 $41,278 $40,793
Per capita income $22,643 $24,204 $22,606 $23,595
Unemployment Rate 4.50% 10% 4.40% 10%
*These figures do not include self-employe ls
ral production es, a t gov mpl
d individua , employees of private households,
railroad employees, agricultu employe nd mos ernment e oyees.
Sources: US Census Bureau (www.census.gov) and County Business Patterns (division of
the US Census)
project has 43 com
is
conditionsthe region, eighty-five percent of Brewery
ral
rs are mixed-usetructures with ground-level retail space withnergy efficient and sustainable design features.
mercial tenants: 25 retailers
Residential Development(including restaurants) and 18 office or service-based workplaces. Whole Foods Market, locatedon Block 1, at the corner of 13 th and Burnside,the projects retail anchor. Other retail andrestaurants include Anthropologie, Sur La Table,The North Face, Diesel, Henrys 12th StreetTavern, and P.F. Changs China Bistro.Despite less than favorable economicinBlocks office space was leased within one year, atabove-market rates. The development includes
400,000 square feet of Class A office space.Commercial tenants include Tyco Telecom, whichhouses a communication center, and PortlandEnergy Solutions, which operates the Blocksenergy-efficient cooling systems, as well as sevelaw firms, consulting companies, and an ArmyCorps of Engineers office.
Two new residential towers contain a total of 368residential units. Both towese
Figure 4: Site Map of Brewery Blocks
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Source: Gerding/Edlen Development
One of the projects, the Henry, is a 15-story, 124-
beenrestor
oods Market and up vel office space. Theeinhard Brewhouse consumes
n,
on, daylighting, operable windows, high-, low-flow plumbing, a chiller
pany, LLC
ay Dannen, Portland Streetcar
Gose, Jo t,ta
Gragg, Rn n, 19
cks
unit condominium which sold out before thebuilding opened in 2004; sales prices ranged from$250,000 to $1.4 million.
Adaptive ReuseThe adaptive reuse of three historic structures hasbeen one of Brewery Blocks finest selling points.
On Block 1, the art deco faade of a formerChevrolet dealership, built in 1929, has
ed as the exterior of the ground-level WholeF per-lehistoric Blitz-WBlock Two. The brewery has been renovated intoa mixed-use structure including Henrys 12th StreetTavern and 21,200 square feet of office space.
The Portland Armory, a 20,000-square-footstructure located on Block 3, was built in 1889 andis listed on the National Register of HistoricPlaces. In April 2004, Portland Center Stage, anarea theater company, purchased the structure andlaunched a $32.9 million capital campaig
supported by the Portland DevelopmentCommission and the Portland Family of Funds, acommunity investment bank, to renovate thestructure into a state-of-the-art theatre. Accordingto the Portland Development Commission, theArmory project, slated to open in the fall of 2006,will create 300 new jobs, add $80 million to thecitys economy, and generate $2.2 million in city,county, and state tax revenue over the next tenyears.Sustainable Design
Architects and environmentalists have praisedBrewery Blocks environmentally consciousdesign. The project uses high-efficiency heatingand air-conditioning systems, above-codeinsulatiefficiency windowsplant, eco-roofs, and solar panels. The sustainabledesign features increased the overall cost of theproject by about ten percent, but the anticipatedannual savings in energy costs is $58,700.
SummaryBrewery Blocks is emblematic of Portlandsdedication to using smart growth techniques togenerate economic development, drawing millionsof dollars in new investment to a transit accessiblelocation. SourcesInterviews Conducted
Bruce Allen, Portland DevelopmentCommission
Beth Scott, Gerding/Edlen DevelopmentCom
KWor Cks onsulted
e. Fewer Clouds in Pacific Northwesil Traffic, 1 AugRe ust 2002.andy. Building Blocks: Urbanversion, 5 YearsCo Later, The Oregonia
May 2005.
Key Features of Brewery BloBlock
1 Retail and office space Whole Foods on ground floor Preservation of historic art deco
faade Chiller plant on roof
Block2
Retail and office space Henrys 12th Street Tavern Preservation of historic Blitz-
Weinhard BreweryBlock
3
rtland Centerrtland
124-unit residential building (TheHenry)
Future home of the PoStage via preservation of PoArmory building
Block4
Retail and office spaceEco-roof
Block5
244-unit residential building (TheLouisa)
Eco-roof
Figure 5: View of the BlocksSource: Gerding/Edlen
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How Stuff Works: Office Spacey.howstuffworks.com/office-
Kir ess, Retail Traffic,
Lib
eek, 11 May 2005.olleys: In transit,
transit, Atlanta Journal-
Sen Enter a
Stoity, Portland Business Journal, 26
Stra Winssign, Daily Journal of
Tra
er 17: Portlands TODs.
Wikre
Welocks.com
landonline.org
evelopment Company,LC www.ge-dev.com
ds
22 June 2005.
k, Patricia L. Portlands Progr1 May 2004.
by, Brian. Mixed-Use Brewery Blocks,
Architecture WOhland, Gloria. Return of the Tr
the old is new again, Journal of the APA, May2004.
Saporta, Maria. Looking westward: Oregon tripputs focus onConstitution, 6 June 2005.ior, Jeanie. Brewery Blocks Set toNew Era, The Portland Tribune, 13 April 2004.
ut, Heidi J. Project at Former Brewery SiteLinks COctober 2001.
nzl, Justin. Portlands Brewery BlocksAward for Sustainable DeCommerce, 23 December 2004.
nsportation Cooperative Research ProgramReport 102 Transit-Oriented Development in theUnited States: Experiences, Challenges, andProspects. ChaptWashington, DC: Federal TransitAdministration, May 2004.epedia: The Portland Streetcar 27 June 2005.
bsites Brewery Blocks www.breweryb
City of Portland www.port
City of Portland Office of Transportationwww.portlandtransportation.org
Gerding/Edlen DL
Portland Armorywww.portlandarmory.com
Portland Center Stage in the PearlCampaign www.pcs.org/armory
Portland Development Commissi onwww.pdc.us
Portland Family of Funwww.portlandfunds.com
Portland Streetcarwww.portlandstreetcar.org
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TRANSIT-ORIENTED
DEVELOPMENT
Silver Spring Downtown
Redevelopment
Silver Spring, Maryland
Figure 1: Map of Smart Growth StrategySource: Montgomery County
Introduction
Silver Spring (pop. 35,575), one of Washington,DCs oldest suburbs, has used transit-orienteddevelopment to bring new life to its once-ailingdowntown. Anchored by a station that is part ofMetro the DC regions subway system downtown Silver Spring has become a magnet foreconomic activity, linking new businesses and jobs
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with a growing residential market. Residents havewalking access to a cluster of shops, offices, parks,and the train station, which connects Silver Springto Washington, DC and other regionaldestinations.
In 1998, Montgomery County planners andprivate developers targeted four square blocks fordowntown development, coordinating public andprivate funding for projects around the transitstation. The initial project, a $400 million towncenter funded with public and private capital,stimulated a surge of new development: between2000 and 2010, public ($423 million) and privateinvestment ($1.37 billion) will reach $1.8 billion.The development is performing way beyondexpectations, said Mel Tull, Incentives Manager,
Silver Spring Regional Center. The town centerplan led to many new projects, which ultimatelycaught the attention of Discovery.The arrival of Discovery Communications in 2003was the driving force behind 1,554 new jobs indowntown Silver Spring between 2000 and 2005.Montgomery County forecasts 1,246 more newjobs in Silver Spring between 2005 and 2010.Throughout the late 1990s and 2000s, the DCregion experienced significant growth, the effectsof which were also felt in Silver Spring. Thearrival of the new town center and its corporate
anchors significantly contributed to this growth.Prosperity and DeclineSilver Spring originally developed as a stop alongthe Baltimore & Ohio railroad. By 1950, it wasone of the busiest retail markets betweenRichmond and Baltimore. Downtown declinebegan when the suburban Wheaton Mall openedin 1960. Silver Springs last retail anchor, Hechts,moved to Wheaton in the 1980s. Silver Springtried to attract a new mall to stay competitive,finally landing the 400,000 square-foot City Place
Mall in 1992. City Place, however, did not attractquality anchor stores, and ultimately failed to helpstem the downtown exodus.Between 1988 and 1996 more than 220 businessesleft Silver Spring. The city was a shell of its formerself: vacancy rates increased, traffic sped throughdowntown along six-lane boulevards, and the
retail environment was limited to discount stores,tattoo parlors and pawnshops.
Silver Spring %Change
EconomicIndicators
Pre-project Recent Office Space-RentableBuilding Area
6,382,464(1997)
7,185,464(2005)
13%
Office VacancyRate
18.0%(1997)
9.8%(2005)
-8.20%
IndustrialVacancy Rate
6.2%(1997)
2.2%(2005)
-4%
Median HomePrice
$194,250(1997)
$450,000(2004)
132%
MedianHouseholdIncome
$48,910(1996)
$61,940(2003)
27%
At-placeEmployment10
20,425(1997)
22,660(2003)
11%
Property TaxRevenue
$2,792,580(2000)
$3,619,828(2004)
30%
Montgomery CountyEconomicIndicators Pre-project
(1996-2000)Recent(2003-2005)
%Change
Office Space-RentableBuilding Area
48,579,839 57,260,712 18%
OfficeVacancy Rate
7.30% 9.60% 4.7%
IndustrialVacancy Rate
2.60% 7.30% 4.7%
MedianHome Price
$197,000 $395,000 100%
Per CapitaIncome
$40,001 $53,546 34%
MedianHouse-holdIncome
$66,085 $79,115 20%
At-placeEmployment
427,080 489,360 15%
Property TaxRevenue
$610,403,414 $733,215,259 20%
Source (both tables): MNCPPC, Montgomery Co., CB Richard Ellis
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Initial Revival: Downtown Silver Spring TownCenter
In 1998, Montgomery County entered apartnership with Foulger-Pratt Development tobuild the 22-acre Downtown Silver Spring towncenter. The town center promised to bring new
shops, theaters, a civic building, parking garages, apublic square, and townhouses to downtown, withconnections to the transit station and the existingpedestrian streets and sidewalks.Following six months of intensive communitymeetings, Foulger-Pratt attracted businesses thatwould best serve nearby resident needs a grocerystore, hardware store, and other small retail shops.The second stage concentrated on entertainmentwith the addition of an anchor bookstore, atheater, larger retailers, a hotel, and a 3,600-space
parking garage.The project is located within three blocks of theSilver Spring Metro Station, and its retail facadesare oriented toward the street to encouragepedestrian traffic. Construction is in progress onthe third stage, a civic center and public plaza, andthe fourth stage, 160 units of adjacent housing.Contracts, Incentives, and InvestmentMontgomery County assembled the 22 acres ofland and negotiated a contract with Foulger-Pratt
requiring a long-term commitment to the site.After 10 years the city will deed the property tothe developer. Because the county assembled theland and retains ownership, the developer savedseveral years of holding costs typically enduredduring the design and approval processes. Theproposal was designed to return public investmenton the town center within 10 years. Investment inthe town center totaled $367 million: the countydedicated $187 million to infrastructureimprovements, including roads, streetscapes,utilities, anda parking garage; and Foulger-Prattdirected an estimated $180 million to build the
retail structures.As part of the town center project, the countyrehabilitated and modernized the American FilmInstitutes (AFI) historic Silver Theater whilepreserving its 1938 appearance. The AFI SilverTheatre and Cultural Center is a state-of-the-artexhibition, education and cultural center, and isthe countrys preeminent organization dedicated
to advancing and preserving the art of film,television, digital media and other forms of themoving image. The AFI involvement broughtattention and investment to the project.
Downtown Silver Spring Business Incentives Access to Metro rail, Metro bus, Ride-
On buses, and taxi stand
CBD Enterprise Zone designationprovides tax credits on expansions,renovation, or improvements
Green Tape Zone gives downtownprojects priority reviews andinspections for permits
Arts and Entertainment Districtwithin CBD provides tax credits forconstruction
Live Near Your Work Program offers$3000 to downtown employeespurchasing homes in Silver Spring orneighboring Takoma Park
Montgomery County maintainsstreetscape, public interest activities,enhances safety of public areas
County sponsored marketing seminarsfor local businesses
Incubator Without Walls Programproviding business owners withinternet and marketing training
County Regional Center advisesbusinesses prior to approval toaddress anticipated difficulties
Dept. of Housing and CommunityAffairs offersfacade/canopy/streetscapeimprovement grants
Downtown Growth: Effects of the Town CenterThe Town Center project helped stimulate private
development throughout downtown Silver Spring.Montgomery County estimates $1.37 billion innew private investment will arrive between 2000and 2010 a private to public investment ratio of7:1. Between 2000 and 2004 the CBD generatedover $3.6 million in property tax revenue (a 30%increase), and 1,052,580 square feet of renovationsof existing buildings.
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Figures 2, 3, & 4: (Left to Right) Silver Spring Innovation Center, Tastee Diner, and Town CenterThe projects corporate anchors, the AmericanFilm Institute and Discovery Communications,were key to bringing in other businesses.Discovery, located adjacent to the town centerand two blocks from the transit station, brought1,500 employees to downtown. The companyexcluded a cafeteria to encourage employees to
patronize downtown establishments, anddesignated 65% of their property as public green-space.Office and RetailOver $668 million, 49 percent of total privateinvestment, has been dedicated to commercialrehabilitation projects, new construction, andbusiness start-ups. Downtown has added 800,000feet of office space since 1997 and reduced itsoffice vacancy rate from 18% to 9.8% in 2005.The American Nurses Association and UllicoIncorporated are Silver Springs largest office
tenants. Retailers have added 80 percent moreshopping center floor area since 2002 to meetrising demand for retail space. The additionbrings total retail square footage in downtownSilver Spring to 4,460,406.ResidentialSilver Spring has traditionally maintained a verylow residential vacancy rate (about 2 percent).With the addition of shopping and employmentcenters, the CBD required additional housing.Almost 2,700 housing units, the equivalent of
$709 million in private investment, have come online since 1998. Many abandoned offices andfactories, like the Canada Dry plant, are beingconverted into housing. The industrial vacancyrate fell from 6.2 percent in 1997 to 2.5 percent in2005.
Pedestrian Improvements and Transportation
While Silver Spring has had a Metro station since1978, it is only recently that development has beenoriented around it and made more convenient forpedestrians. Pedestrian improvements have helpedthe once-failing City Place Mall become part ofdowntowns success. When City Place was
constructed in 1992, it was a boxy, regional mallthat was disconnected from the transit station andfrom the downtown streets. The ground floor,formerly inaccessible and monolithic, now has amain entrance as well as individual storefrontsalong Ellsworth Street for retail and restauranttenants. The main entrance of City Place isoriented toward Town Center.
Figures 5 & 6: Adaptive Re-Use of Vacant Canada Dry Plant
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http://www.montgomerycountymd.com/14/history.asp
Finucan, Karen. 1997. Thumbs down onAmerican Dream. Planning. V.63, I.1, P.23.
Hooker, Meredith. 2004. Silver Spring TriesHarder. Planning. V.70, I.2, P.32.
Ogorzalek, Tom. 2004. On Its Way Back.Journal of Housing and Community Dev. V.61, I.1,P.28.
Ridlington, Elizabeth, Brad Heavner, MaryPIRGFoundation, 2004. Transit OrientedDevelopment: Strategies to Promote VibrantCommunities.http://marypirg.org/reports/TODreport.pdf
Silver Spring-A 21st Century Renaissance. 2003.http://www.montgomerycountymd.gov/mcgtmpl.asp?url=/content/pio/news/silverspring/silver.asp&v=false
Silver Spring Regional Center,www.montgomerycountymd.gov/govtmpl.asp?url=/Content/RSC/Silsprng/welcome.asp
The New Downtown, Montgomery County. 2005.http://www.montgomerycountymd.gov/mcgtmpl.asp?url=/content/rsc/silsprng/DowntownDevelopment/what1.asp
Lockwood, Charles. The Mall Meets MainStreetwww.icsc.org/srch/sct/current/sct0901/index.php?region=
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COMMERCIAL
CORRIDORREVITALIZATION
East Carson Street
P ittsburgh, Pennsylvania
Figure 1: Revitalized East Carson Street Storefronts
IntroductionThe decline of American manufacturing has leftmany cities with neighborhoods in transition.With fortunes tied to heavy industry, the city ofPittsburgh acutely felt the impact as steelproduction waned. Between 1950 and 2000, thepopulation dropped from 676,806 to 334,563,with residents relocating to suburbs or leaving thearea entirely. While the new economy financial,
healthcare and other service based fields hashelped the region recover, a tremendous challengeremains: rebuilding the citys industrial areas.As the main commercial street, East Carson wasthe backbone of South Side residentialneighborhood, home to many steel millemployees. Once a prosperous industrialcommunity, the South Side fell into physical and
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economic decline during the 1970s and many ofthe younger and wealthier residents left. Desertedstreets and dilapidated storefronts were common,and the corridor needed a lift. In 1982, the SouthSide Local Development Company (SSLDC) wascreated to encourage reinvestment in the corridor
and throughout Pittsburghs south side.A long-term rehabilitation effort has revived EastCarson, which is lined with 18 blocks ofVictorian-era storefronts, offices, and homes.Much of the renewed activity is between 10th and24th Streets, where East Carson meets the newlyrestored South Side Works. Once an active steelmill, the Works is now a growing center foremployment and a catalyst for area businessdevelopment. Residents from the steel mill daysstill call the South Side home, while sharing the
neighborhood with new arrivals who have movedin to enjoy the art galleries, music venues, andcoffeehouses.
Over 23 years, SSLDC has leveraged $16 millionin funding for housing and businessredevelopment in the area. Between 1985 and2005, revitalization efforts resulted in 3,500 newjobs and 225 improved structures. Thecommercial vacancy rate dropped from 60 percentto 4.5 percent. In addition, SSLDC teamed withthe Urban Redevelopment Authority (URA) tostrengthen the surrounding residential
neighborhood with new homes and apartments.The South Side neighborhood is now a populardestination for residents, employers, and visitors.
A New Beginning
In 1985, The National Trust for HistoricPreservation selected East Carson Street as anUrban Main Street Demonstration Program site.The Main Street model promotes self-reliance andthe rebuilding of traditional commercial districtsthrough organization, promotion, design, andeconomic restructuring.
With funds from Pittsburghs generousfoundations, SSLDC improved historicstorefronts, made streetscape improvements, andbrought in new businesses consistent withconsumer demand. One hundred and thirty-fourbusinesses received technical assistance to addressstartup needs and everyday operations. The URAcreated a Streetface program that supported the
renovation of over 225 storefronts along EastCarson since 1985. Funded primarily by the state,Streetface offers up to half of reconstruction costsup to $52,800.We saw 18 continuous blocks of Victorian
architecture that constituted a major cultural assetand a significant economic asset as well. Byrestoring the buildings, attracting small businesses,and promoting the area as the unique shoppingexperience that it could be, the merchants,residents, and SSLDC embarked on a programthat became a tremendous success, said ArthurZiegler, Chairman of the Pittsburgh History andLandmarks Foundation.11
Figure 2: Ukrainian Presbyterian Church Converted intoHalo Restaurant and Night ClubSource: http://www.spotlightonmainstreet.com
Economic Indicators (1985-2005)
Businesses Assisted 134
New Construction 1,100,000 sq ft
Improved Commercial/Industrial/ public space 225 structures
Public Investment $119 million
Private Investment $368 million*
Private-Public Investment Ratio 3 to 1
Jobs created/retained 3500**
Total New Residential Units 785
* Does not capture private investment in East Carson Streetindependent of public funding
** South Side Works expected to create an additional 3900 jobsat full build out
Source: URA, www.southsideworks.com
The URA has partnered with SSLDC on manynew housing projects. Using state funding, CDBGgrants, and mortgage revenue bonds, the groupshave developed over 100 market-rate housingunits since 1995. Private developers built
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Per Capita Income $10,717 (1990) $20,455 (2000) $12,580 (1990) $18,816 (2000)
Street Level Commercial Vacancy 60% (1985) 4.50% (2005) 7.50% (2005)Median Property Value $32,300 (1990) $77,100 (2000) $67,120 (1990) $59,700 (2000)
Pittsburgh
Recent Figures
(2004)Property Tax Revenue at the South
Side Works site$3 mil* $122,500,000
South Side
Historic Figures
Economic Indicators for South Side and City of Pittsburgh
Source: URA, SSLDC, US Census Bureau, * Tax revenue only measured for SSW site
$0*
Historic Figures
(1985)
Recent Figures
(2004)
an additional 330 lofts, condos, and townhouses.Many of these units are former office buildingsand churches rehabilitated for residential use.In all, the public sector has directed $119 millionto the neighborhood since 1985. The investment,said SSLDC executive director Rick Belloli, ispaying off. Private investment reached $368
million; property tax revenue in the East CarsonStreet business district increased by about $1million; and the activity has created or retained3500 jobs, with 3900 additional jobs coming toSouth Side Works.The renewed East Carson corridor boasts 85restaurants and bars, 250 businesses, and six turn-of-the-century banks on a two-mile stretch. EastCarson Street has won numerous awards includingthe Great American Main Street Award, thePennsylvania Historical Award, and the Museum
Commission Statewide Historical PresidentialAward.South Side Works Extending the South SideRevivalOn the western edge of the South Sideneighborhood, the 123-acre LTV Steel South SideWorks (SSW) site sits between the MonongahelaRiver and East Carson Street. The URApurchased the site when the plant closed in 1993,and held community meetings to elicit ideas forredevelopment. Following the meetings, the URAsecured a developer that would execute the
community vision a mix of residential,commercial, light industrial and public uses,connected to the river with trails and to thesurrounding neighborhoods on the existing streetgrid.
Public investment in SSW totaled $103 million,drawing $300 million in private investment. Newdevelopment includes 1,193,000 square feet ofnew construction, a 200-room hotel, an open-airtown center, a 10-screen movie theater, and 354urban living residential units. The site, formerlytax exempt, now produces $3 million annually inproperty tax revenues; once development is
complete, revenues will top $8 million. The site ishome to 1,500 new jobs, with 5,400 expectedupon completion
Many of the new jobs are in bioengineering andbiotechnology. Located across the river from thePittsburgh Technology Center, SSW is anattractive site for the expansion. Since 1998, SSWhas attracted the University of Pittsburgh MedicalCenter (UPMC) Sports Medicine Facility, UPMCDistribution Center, and a biomedical incubatorcalled the Life Sciences Center.
Shane Tulloch, chief executive of SEEC Inc., ismoving his software development company to theSouth Side Works for its energy and pedestrianenvironment. He told the New York TimesthatSEEC needs an environment where people areexcited about being at work and going out afterwork." The area, said Tulloch, has a sense ofvitality and beautiful surroundings, andeverythings within walking distance.12
SSW New Construction (sq. ft.)
Commercial 300,000Industrial 150,000
Office 400,000
Residential 343,000
Total 1,193,000
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Back in BusinessThe South Side, capitalizing on its compact urban
design and charming Victorian features, hasovercome economic hardship. As Beth Marcello,former SSLDC Board of Directors President,explained Carson Street was one of thoseneighborhoods where there was no reason to betherebut now it has a wonderful walkablebusiness district with almost everything you couldwant, a high rate of ownership, and a lot of pridefrom the past.
Distribution of Public and Private Investment(1985-2005)
Commercial Corridor $16milSSW $103mil
Public Total $119 mil
Commercial Corridor $68 mil
SSW $300 mil
Private Total $368 mil
TOTAL $487 mil
Source: URA
Incentives South Side Local Development
Corporation Programs and Services Neighborhood Assistance Program:
Ten-year $2.5 million state funded
initiative designed to fund programs ineducation, human services, jobdevelopment, drug and crimeprevention, housing, and leadershipdevelopment
Technical assistance to business andproperty owners attempting tomaintain historic and architecturalintegrity
Streetface Program provides subsidiesfor business faade improvements
Sign Grant Programoffers a 50percent matching grant up to $500 forsignage
Regional marketing of East CarsonStreet businesses
Neighborhood design standardsprotect investments
SSLDC advocates community issues(zoning, regional development,transportation, etc.)
SourcesInterviews Conducted:
Rick Belloli, Executive Director, South SideLocal Development Company
Beth Marcello, Former President of Board of
Directors, South Side Local DevelopmentCompany
Robert Rubinstein, Director BusinessDevelopment Center, Urban RedevelopmentAuthority of Pittsburgh
Works Consulted:Fuoco, Michael A. 2002. How the South Side got
its Groove Back. Pittsburgh Post Gazette. 7/7.History of South Side-
http://www.southsidepittsburgh.com/about.asp?navid=2
Holland, Dan. 1998. Historic Preservation ofPittsburghs Neighborhood BusinessDistricts. The National Main Street Center,www.danielholland.com/mainstreet.html
National Trust for Historic Preservation MainStreet Program, www.mainstreet.org
OToole, Christine H. 2005. Arts and ScienceRemake the Steel City New York Times. 7/20.Pittsburgh Metropolitan Statistical Area Economy,
http://www.artsnet.org/aaco/economics_pdfs/Chapter%20Three%20Pittsburgh%20MSA%20Economy.pdf
South Side Local Development Company,www.southsidepgh.com/SSLDC/index.htmSchooley, Tim. 2002. URAs faade program,
Streetface, helps neighborhoods maintaincharacter. Biz Journals, June 14.
Streetface Program Summary, UrbanRedevelopment Authority of Pittsburgh,www.ura.org/pdfs/mainstreets/Streetface.pdf
Urban Redevelopment Authority of Pittsburgh,About the URA Showcase Projects: South SideWorks, ura.org/showcaseProjects_ssWorks3.html
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COMMERCIALCORRIDOR
REVITALIZATION
Main Street Program
Burlington, Iowa
Figure 1: Revitalized business districtSource: burlingtoniowa.com
IntroductionTraditional Main Street commercial corridors,where a variety of daily needs are close at hand,are a hallmark of smart growth in small and largetowns alike. These corridors were originally
designed with a mix of shops, restaurants, offices,and housing, allowing people to walk, take transit,ride their bikes, or drive to reach theirdestinations. As the movement toward moreauto-oriented, regional retail centers grew, manyof these commercial corridors suffered. However,towns and cities are seeing the value in having astrong and vibrant Main Street. Revitalization of
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ECONOMIC INDICATORS: Downtown Burlington, 1986 2005*
Net gain in business starts, relocations, and expansions 212
Net gain in new jobs 500
Building rehabilitations 396
Buildings sold 145
Total private investments in rehabilitation $28,849,151Total private investments in downtown property acquisition $8,335,573
Increase in property values (1986-2004) $117,807,005
Percent increase in property values (1986-2004) 23.7%
Increase in property tax revenues (1986-2004) $1,930,487
Percent increase in property tax revenues (1986-2004) 33.9%
Source: Main Street Iowa these areas is reaffirming community identity anddelivering investment, jobs, and tourism dollars.
Over the past 20 years, Burlington, Iowa hasreestablished its downtown as the citys primaryactivity center. Since the Main Street programbegan in 1986, the central business district hasattracted scores of new businesses and 500 newjobs. The private sector has invested $33 millionin downtown projects, including the restoration of396 historic buildings.Burlingtons progress has drawn national acclaim.In 2004, Burlington earned the National Trust forHistoric Preservations Great American Main
Street Award, an honor given to five communitieseach year for excellence in preservation-basedrevitalization.
Source: DPI
Burlington in ContextFounded in 1833, Burlington (pop: 26,839) wasonce a prosperous transportation andmanufacturing hub. Its location on theMississippi River and major railroad routes madethe city a Gateway to the West, rivaling St Louis
during the nineteenth century. Burlingtonmaintained a healthy economy into the twentiethcentury, but faltered after World War II.
Downtown businesses could not compete withsuburban shopping centers, and highwayconstructionled to the demolition of nearly onehundred businesses and historic homes. Attemptsat urban renewal in the 1960s and 1970s, includinga pedestrian mall on Jefferson Street, wereineffective. By the 1980s, many downtown facadeswere covered by aluminum siding; storefrontvacancy rates exceeded 80 percent.Downtown Partners, Inc.The Iowa Department of Economic Development
and the National Trust for Historic Preservationdesignated downtown Burlington as a NationalMain Street Community in 1986. The Main Streetprogram, adopted in communities across thecountry, is designed to gradually over 10 to 20years, for instance bring economic developmentand community activity back to downtown.
Source Amount
Self-supporting municipal
improvement district
contribution $64,000
City of Burlington $15,000
Sponsorship, fundraising,
private donations $121,000
TOTAL $200,000
Downtown Partners, Inc. Annual Budget
Downtown Partners, Inc. (DPI), a non-profit
Figure 2: View of downtown Burlington Photo courtesy of DPI
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organization, operates the Main Street program inBurlington. It promotes the downtown as a placeto do business and hold events; provides design,regulatory and networking services for existingbusinesses; markets downtown properties; andrecruits new businesses.
igure 3: This map outlines the 32-block municipalr, at right.
PI is a small organization, operating with several
conomic Growth
ram has facilitated significant
he city and DPI have collaborated on a number
daptive Reusehistoric buildings has been a key
1, Hotel Burlington was once among
iverPark Place is a mixed-use development in a
Fimprovement district. It borders the Mississippi RiveMap courtesy of DPI
Dstaff, strong volunteer participation, and a$200,000 annual budget. It is funded in part by a32-block municipal improvement districtestablished by the city. Property owners within thedistrict contribute three dollars per one $1,000 oftaxable valuation. In return, DPI advocates fordowntown investment, provides training andresources, and organizes events that bringcustomers to local businesses.E
The Main Street Progchanges during its nearly 20 years in operation.The private sector has invested $33 million indowntown since 1986, including $29 milliontoward rehabilitation projects. The citys propertytax revenue has increased 33.9 percent, with muchof the increase generated from propertiespreviously vacant, abandoned or otherwise off thetax rolls. Two hundred and twelve business starts,
relocations, or expansions and 500 new jobs havecome to downtown.Tof physical improvements over the years, creatinga more business and people-friendly environment
downtown. The pedestrian mall was removed infavor of upgraded street features, includingsidewalk renovations, historic light postinstallation and on-street parking in front ofmerchant entryways.
Figure 4: Newly renovated Hotel Burlington Photo: DPI
ARehabilitation ofdriver for revitalization, accounting for 87 percentof all private investment going into downtown.Historic landmarks have become new businesses,residential spaces, and retail and restaurantlocations.
uilt in 191B
the Midwests top hotels. The hotel was closed bythe time the Main Street program arrived in the1980s. Supported by $1.2 million in funds fromthe citys tax increment financing program, theten-story structure has been restored as aresidential development, including 75 units ofmixed-income housing for older residents. Priorto redevelopment, the city collected $7,480 (1998)in property taxes on the hotel property. After
redevelopment, the tax collection jumped to$115,296 (2003).Rformer hospital building overlooking theriverfront. The structure, completed in 2003 withthe help of a $1 million Chamber of Commerce
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ECONOMIC INDICATORS: Burlington Before and After
Historic Figures Recent Figures
City per capita income* 1980 $10,117 2000 $19,450
Downtown commercial vacancy rate 1986 16.8% 2004 7.0%
Downtown taxable property value 1986 $497.12 million 2004 $614.93 million
Downtown property tax revenue 1986 $5.69 million 2004 $7.62 millionCity retail sales 1988 $157.44 million 2003 $262.30 million
City unemployment rate* 1986 9.0% 2004 6.5%Source: City of Burlington, US Census
*Income and unemployment figures cannot be directly attributed to the Main Street program. These figures are more likely linked to regionaltrends and macroeconomic conditions
grant, houses local businesses, condominiums, andan upscale restaurant. RiverPark generatedapproximately $60,000 to $65,000 in property taxrevenues during its years as a hospital building.With the new project online, the city estimatesthat it will collect between $80,000 and $90,000
each year.Schramms Corner is located in the historicSchramms Department Store, the former retailanchor of downtown Burlington; the companyclosed in 1997. The building is now a $2 millionmixed-use development that contains retailestablishments, upscale condominiums andapartments, and Burlingtons business incubationcenter. In 1998, the city collected $4,494 in taxesfrom the three properties at Jefferson and SecondStreet. Redeveloped as Schramms Corner, the
properties account for $16,792 (2003) in annualproperty taxes.
Figure 5: Snake Alley map Source: www.snakealley.com
Special Events and AttractionsA regular series of special events has helped bringpeople downtown and encouraged support forlocal businesses. DPI promotes a spring openhouse in March, customer appreciation days inApril, sidewalk sales in July, extended openinghours in the fall, Trick-or-Treating on Halloween,and a holiday open house in November. TheRiverfront Farmers Market takes place on thewaterfront on Thursday evenings in summer, anddraws up to 1,500 customers on its busiest nights.TheAnnual Living Windows event, in whichretailers open up their storefront window spacefor local non-profits, families, or other businessesto decorate, draws visitors from all over southeastIowa each December. Permanent attractions, suchas the historic Snake Alley, bring in additional
retail and tourism dollars. Snake Alley is awinding stretch of North Sixth Street, marketed asthe most crookedest street in the world. It is one
of Burlingtons most famous landmarks.With the Main Street program as a guiding force,downtown Burlington has steadily turned around.Its historic features, pedestrian-scale andcommunity gathering places have madedowntown an attractive location for business.New projects are returning old buildings toproductive use, while returning thousands ofdollars to the tax rolls.
SourcesInterviews Conducted:
Janine Clover, Director, Small BusinessDevelopment Center
Val Giannettino, Executive Director,Downtown Partners, Inc.
Dennis Hinkle, Vice-President ofEconomic Development, Grow GreaterBurlington
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Janet McCannon, Former ExecutiveDirector of Main Street Burlington
Jane Seaton, Main Street Iowa
Doug Worden, City of BurlingtonFinance Officer
Des Moines County Treasurers OfficeWorks Consulted:Fields, Ron. Downtown Partners Faces Staff
Cuts, The Burlington Hawk Eye, 25 March 2005Fields, Ron. Farmers Market a Big Hit with Area
Producers, The Burlington Hawk Eye, 6 March2005.
Fields, Ron. Main Street Gets Expected Nod, TheBurlington Hawk Eye, 30 January 2005.
Fields, Ron. Main Street Honors Breuck, TheBurlington Hawk Eye, 9 May 2005.
Miller, Randy. Housing Funds Coming, The
Burlington Hawk Eye, 2 March 2005.Quirk, James Jr. Boat Boosts Project, The
Burlington Hawk Eye, 15 May 2004.Quirk, James Jr. Developer Says Complex Will
Work Only if it Offers Something Different,The Burlington Hawk Eye, 23 October 2003.
Troute, Rex L. Giannettinos Energy Spurs DPISuccess, The Burlington Hawk Eye, 20 February2005.Websites: Burlington Convention and Tourism Bureau
www.visit.burlington.ia.us Burlington-West Burlington Area Chamber of
Commerce www.growburlington.com City of Burlington website
www.burlingtoniowa.org Downtown Partners, Inc.
www.downtownpartnersinc.com The Hawk Eye Newspaper
www.thehawkeye.com Iowa Department of Economic Development
www.iowalifechanging.com Iowa Small Business Development Centers
www.iowasbdc.org National Main Street Center
www.mainstreet.org Snake Alley Website www.snakealley.com Southeastern Iowa Regional Planning
Commission www.seirpc.com U.S. Census Bureau www.census.gov
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TARGETED AREAREDEVELOPMENT
Arena District
Columbus, OH
IntroductionParcel-by-parcel redevelopment can be a slowprocess and a tough sell. Assembling contiguousparcels of underutilized, vacant, or blightedproperty for redevelopment as a district canaccelerate and encourage investment in urbanareas.
Area redevelopment creates a marketable realestate opportunity, as well as an opportunity forsmart growth. Existing infrastructure, proximityto employment, and access to transit are factorsthat make urban land assembly projects attractiveto developers, businesses and residents. InColumbus, an area redevelopment initiativeproduced the Arena District, a 75-acre, $500million mixed-use district adjacent to downtown.
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The districts centerpiece is the 18,000-seatNationwide Arena, which hosts the NHLsColumbus Blue Jackets and other big-ticket eventsthroughout the year. Designed on a conventionalstreet grid, the district features wide sidewalks andcozy alleyways to encourage pedestrian traffic
between residential, retail, and office spaces.
Figure 2: Nationwide Arena
Figure 1: View of the Arena District
The Arena District has had a significant impacton the revitalization of downtown Columbus,bringing the first new multi-use projects to thecentral business district in many years, said BrianJ. Ellis, president of Nationwide Realty Investors(NRI). Our goal has been to create a new andexciting place for people who want to bedowntown. And we've accomplished that. Ourentertainment venues draw large crowds, officespace has filled up, and the residential component
is a success.Since its creation in 2000, the Arena District hasintroduced 3,600 jobs and 40 new or relocatedbusinesses to the heart of Columbus. Once-barren real estate is now a center for round-the-clock activity.Project DevelopmentFor years, surface parking lots and a crumblingstate penitentiary dominated the project area.NRI initiated the revitalization process, targeting a23-acre tract of city-owned land, a six-acre parcel
owned by American Electric Power (AEP), and ahandful of properties owned by surface parkinglot operators. The city agreed to sell its propertyto NRI for $11.7 million, and AEP sold its site for
$11 million. The Franklin County ConventionFacilities Authority used its condemnation powersto acquire the land being used for parking lots.
The authority subsequently leased the land to NRIprovided that the company would construct anarena on the grounds. NRI financed constructionof the arena with assurances that the NationalHockey League would locate a franchise team inColumbus.
NRI retained MSI, a firm specializing in urbanplanning and design, to create a master plan forthe district around the arena. Working with NRI,MSI laid out pedestrian ways and design elementsthat give the district its charm and identity.Bricked alleyways link the arena with nearbyrestaurants, offices, and residential uses, and theplan establishes seamless connections between thedistrict and downtown. The Downtown
Commission of the Columbus Department ofDevelopment approved the plan, which NRI usedto guide project implementation.Costs, Funding, and IncentivesNRI invested $450 million in construction costsand land acquisition, including $100 million forarena construction. The Dispatch PrintingCompany, owners of Columbus largestnewspaper, contributed $10 million and privateinvestors contributed $40 million (through thepurchase of box seats and other forms of
sponsorship) toward arena construction. The cityput $16 million toward road improvements andinfrastructure and utility development in thedistrict, and an additional $19 million on roads,infrastructure, and utilities in adjacent areas. Intotal, the district has a private to public investmentratio of over 14 to one.
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The city is using tax increment financing (TIF) tosupport the districts capital improvements. Thecity sold over $30 million in bonds, which will berepaid by the property tax increment generatedover 30 years. The district is running behind itsbond repayment obligations because it is limited in
the amount of increment it can capture. Under theTIF, only 27 percent of the increment goes to thedistrict, while the remainder is directed to the cityschool district. NRI is covering the shortfallthrough annual payments of $1 million, which willbe reimbursed as the district matures. The Arena District benefits from two downtowntax incentive programs. The first, introduced in2002, allows a 10-year property tax break for newresidential projects in the downtown. The secondis the Downtown Office Incentive Program,
which provides a yearly payment to employerswho bring new office jobs downtown. Thepayment is equal to 50 percent of the income taxwithholding from each new job for a period ofbetween one and five years.Economic ImpactThree thousand six hundred employees work inthe Arena Districts 40 businesses, which includefinancial consultants, creative companies, lawfirms and legal services, restaurants, andgovernment offices. Before development of theArena District in 1998, the project area was
generating nearly zero property tax revenue.Seven years later, property tax collection exceeds$4.4 million.Commercial DevelopmentThe 685,000-square foot Nationwide Arenaopened in September 2000. In its first year, 1.2million visitors attended 203 events at the arenaincluding music performances as well as hockeygames. The Arena District also houses thePromoWest Pavilion, an indoor/outdoor concertvenue that can hold up to 5,000 fans. NRI
estimates that 2.75 million people visit thedistricts restaurants and entertainment venueseach year.
Source: Nationwide Realty Investor
Economic Indicators (1998-2005)
Private investment $500 millionPublic investment $35 million
Private-public investment ratio 14:1
Jobs created 3,600
New or relocated businesses 40
Increase in property tax revenue $4.4 million
NEW CONSTRUCTION
Office space 1.2 million sq ft
Retail space 300,000 sq ft
TOTAL COMMERCIAL SPACE 1.5 million sq ft
TOTAL RESIDENTIAL SPACE 350 units
NRI has leased approximately 85 percent of the1.5 million square feet planned for commercialdevelopment. Ten office buildings have beencompleted; each includes Class A office space andground floor retail. The district boasts arestaurant row, featuring a variety of restaurantsand bars that are busy throughout the year. Otherfeatures include an 8-screen movie theatre, a state-of-the-art vision care center, a 10,000-square footfitness facility, two parking garages (1,000 and
1,400 spaces), and a 1,500-space expansion to anexisting parking garage.A three-acre park, McFerson Commons, providesa public gathering space, while bicycle trailsconnect the Arena District with other greenspaces in the Columbus area. The district iswithin walking distance of other downtownColumbus attractions, including the ColumbusConvention Center; the Short North, an arts andentertainment district; the North Market, anhistoric public market; and North Bank Park, a12-acre green space along the Scioto River.
Sources Uses
Nationwide Realty $450 million Land acquisition (purchase of 23 acres owned by city) $11.7 million
Dispatch Printing Co. $10 million Land acquisition (purchase of 6 acres owned by AEP) $11 million
Private Investors $40 million Arena construction $150 million
All other construction $327.3 million
TOTAL $500 million TOTAL $500 million
Source: Nationwide Realty Investors
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Residential DevelopmentNRI has opened a 252-unit, $35 million apartmentproject called Arena Crossing. It is a two-buildingcomplex with 16,000 square feet of ground-levelretail and a three-level, 400-space parking facility.Burnham Square, a 98-unit condominium projectopened in December 2005. NRI plans to add 200more residential units to the district in the future.
Figure 3: Residential Units at Arena Crossing
SummaryThe Arena District turned formerly underutilized,abandoned real estate into Columbus mostpopular sports and entertainment district.Shoppers, office workers, and restaurant-goersprovide a daily stream of pedestrian activity, whilebig crowds pour in for hockey games and rockconcerts. The district, now downtowns northernanchor, is a magnet for community events andeconomic growth.
DEMOGRAPHIC AND ECONOMIC PROFILE
Northwest Quadrant Trends* 1990 1998 2003
Population 223,531 235,301 242,546
Median Household Income $22,976 $30,139 $34,132
Per Capita Income $13,479 $17,607 $20,305
Planning Area 18: Downtown Area ** 1990 1998 2003
Median Household Income $10,604 $15,636 $18,279
Per Capita Income $9,000 $12,094 $13,984
City of Columbus 1990 1998 2003
Median Household Income $26,651 $34,791 $40,042
Per Capita Income $13,151 $17,397 $21,550Source:Columbus INFObase, a community information resource maintained by the Neighborhood Planning Section, Columbus Planning Division(www.columbusinfobase.org). * It divides the city into four sections using the major highways I-70 and I-71. The Arena District is located in thenorthwest quadrant. ** The city is further divided into 30 planning areas; the Arena District is located in planning area 18, the downtown area.
s courtesy of Nationwide Realtyvestors
Marketing, NRI
Chris Hermann, MSI
.cityofcolumbus.org
evelopment
ent INFObase:
U.S. Census Bureau: www.census.gov
Th
e Jackets, www.bluejackets.com, 17
Naustry Association,
Car t forhe Columbus
SourcesAll photoInInterviews Conducted
Michelle Chippas, Director of
Websites
Arena District: www.arena-district.com City of Columbus: www
Downtown Columbushttp://downtowncolumbus.com/
Ohio Department of Dwww.odod.state.oh.us
Columbus Planning Departmwww.columbusinfobase.org
Works Consulted
e Arena District Then, Now, and Beyond,
Columbus BluJune 2005.tionwide Arena District: A New Brick-PavedUrban Village, The Brick Indwww.gobrick.com/pavers.
uso, Doug. Arena District Seen as CatalysDowntown Development, TDispatch, 3 September 2000.
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Pramik, Mike. Arena-Area Condos PlanColumbus Dispatch, 19 February 2004.arin, Randall. Mixed-Use Project inDowntown Col
ned, The
Sheumbus, Ohio, to Reduce Car
2005.the
2001.
Wri s real estatemarket; Columbus, Ohio, Primedia BusinessMagazine, 1 October 2002.
Dependency, Heartland Real Estate Business,October 2003.
Stammen, Ken. Nationwide Offered Incentivesby State, the Columbus Dispatch, 28 June
Weiker, Jim. Nationwide Arena: Year One,Columbus Dispatch, 10 September
Wolf, Barnet D. 150 Downtown Jobs, theColumbus Dispatch, 12 July 2003.ght, Steve. Hello, Columbu
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LAND ASSEMBLY andTARGETED AREA
REDEVELOPMENTBelmar
Lakew ood, Colorado
IntroductionCities throughout the United States aregrappling with how best to redevelopabandoned commercial sites where their localmalls once stood. These sites, known as
greyfields, were once the center of retailactivity and a significant revenue-generatingasset for cities. With approximately 1,200greyfields around the country and the averagesite at around 45 acres13, these sites accountfor a significant source of abandonment,vacancy, commercial disinvestment, and joband revenue loss.
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In the Denver, Colorado suburb of Lakewood,a greyfield site gave the city the opportunity tocreate a downtown it never had. In the late1990s, the Lakewood Reinvestment Authorityand developer Continuum Partners, LLCbegan redeveloping the declining Villa Italia
Mall into Belmar, a mixed-use district of 22 cityblocks with stores, entertainment, office space,and homes. With the $243 million first phasecompleted in 2004, Belmar has emerged as avibrant pedestrian-oriented new city center.
Figure 2: Intersection of Alaska and Teller Streets
The City of Lakewood and Continuum havebeen recognized nationally for their successfuldevelopment. The Belmar developmentreceived the National Award for SmartGrowth Achievement from theEnvironmental Protection Agency in 2005
and the Economic Development PartnershipAward from the International EconomicDevelopment Council in 2004.
Development HistoryThe 1.4 million square foot Villa Italia Mallenjoyed over 35 years as the commercial andsocial center of Lakewood. When opened in1966, the regional mall held the distinction ofbeing the largest indoor mall between Chicagoand the West Coast. However, like similar
Figure 1: Aerial view of former Villa Italia Mallmalls of its size and generation, Villa Italiabegan declining in the 1990s, losing sales to
newer retail centers and providing less taxrevenue to the city.Several years after an attempt to revive themall failed in the mid 1990s, Lakewood Cityofficials decided to intervene. Over the course
of a year in 2000-2001, the city underwent anextensive public process, establishing acitizens advisory committee and invitingmembers of the community to comment onpotential redevelopment options. Initially,
committee members favored only one-storyretail establishments. That mindset changedafter the city distributed disposable camerasand asked members to take pictures of placeswhere they would want to shop andcongregate. They came back with photos ofdowntown Boulder and Denvers LoDo(Lower Downtown) a three-four story,mixed-use, pedestrian-friendly development
with a distinctive sense of place.
In 1999, the city partnered with a developerknown for its ability to create such attractivemixed-use communities, Denver-basedContinuum Partners, LLC. The LakewoodReinvestment Authority (LRA) became thepublic partner for financing theredevelopment. Continuum proposed re-inserting a 22 city-block grid with 3.5 millionsquare feet of development.
Project DevelopmentThe first phase of Belmar opened in May2004. The new downtown district has 650,000square feet of retail, 210,000 square feet ofoffice space, 132 townhomes, 109 apartmentunits, 12 loft condominiums, and three largepublic parking garages. As of early 2006,Belmar already boasted over 60 newbusinesses, including a Whole Foods
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Phase I: Opened May 2004 Complete Build-Out (expected 2010)
8 blocks of retail, entertainment, office, residences 22 blocks of retail, entertainment, office, residences
253 residential units 1,300 residential units
210,000 square feet of office 800,000 square feet of office
650,000 square feet of retail 1.1 million square feet of retail
16 screen theatre 16 screen theatre
250 room full service hotelParking: 2,000 structured spaces, 2,000 street/surface spaces
Parking: 6,000 structured spaces, 3,000street/surface spaces
2 acre park, major public plaza 2 acre park, major public plaza
Art in Public Places; including art gallery, and artiststudios
Art in Public Places; including art gallery, artiststudios, art pieces placed throughout project
supermarket, a Cineplex theatre, art galleriesand studios, and nine acres of public openspace. Phase II of Belmar, launched in the fallof 2005, will offer more homes, offices,stores, and cultural venues. The residential
and retail components will be completed in2010; full build-out may take longer.Cost, Funding, and IncentivesThe city and Continuum formed a strongpartnership with a shared vision of long-termvalue and growth. They set up a complexpublic-private financing structure thatincluded sales tax sharing, publicimprovement fees, tax increment financing,and cost sharing for services. Continuuminvested close to $200 million for Phase I ofBelmar. The total cost of the project is
estimated at around $875 million.Continuum established three MetropolitanDistricts, approved by the City Council, forthe financing, operation, and maintenance ofthe public improvements on the site. Thedistrict structure is used to issue bonds tofund capital improvements and to impose milllevies on commercial and residentialproperties in Belmar.In 2003, the Metropolitan District issued
revenue bonds to help fund Phase Iimprovements. With consent of the city, thedeveloper imposed a 2.5 percent PublicImprovement Fee14 on all retail sales on thesite. The PIF revenue and incrementalproperty taxes will flow to the Metro Districtfor repaying the bonds. The city waived halfof its two percent sales tax on the site toenable retailers to charge the PIF and at the
Sources and Uses of Funds: Phase I
SOURCES
Continuum (Equity) $40,000,000
Brownfields Loan $2,000,000
Metro District Bonds $58,000,000Bank Loan $143,000,000
Total Sources Phase I $243,000,000
USES
Site Acquisition/InfrastructureDev. $85,000,000
Parking Facilities $27,000,000
Vertical Construction $131,000,000
Total Uses Phase I $243,000,000
Sources and Uses of Funds: Buildout (2007)
SOURCESPrivate Investment $752,000,000
Metro District Bonds $120,000,000
Other $3,000,000
Total Sources Buildout $875,000,000
USES
Site Acquisition/InfrastructureDev. $132,000,000
Parking Facilities $63,000,000
Vertical Construction $680,000,000
Total Uses Buildout $875,000,000
same time be competitive with other retailersin the region. Economic ImpactClose to 3,000 people work in Belmars over60 offices, stores, restaurants, andentertainment and cultural venues. More than7,000 are expected to be working in thedistrict by the time it is completed in 2010.
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Source: City of Lakewood and Continuum Partners, 2004 IEDC Award Application
NEW JOBS Phase 1 Jobs Avg. SalaryYr 1 EconomicImpact
Total BuildOut Jobs (2010)
Total EconomicImpact
Office 900 $60,528 $54,475,200 3500 $211,848,000
Retail/Restaurants 2000 $21,028 $42,056,000 3750 $78,855,000
Site Management 75 $69,285 $5,196,375 150 $10,392,750
Total 2975 $101,727,575 7,400 $301,095,750
When the Villa Italia Mall was at its peak inthe early to mid 1990s, it generated between$3 to $4 million in property tax revenue. Asthe mall was declining, property tax revenuedropped to around $1 million in 2000, anddown to $400,000 in 2002.15 With the creationof Belmar, the city collected $2.4 million inproperty tax revenue in 2005. As the projectprogresses, that figure is projected to increase.
Commercial DevelopmentWith the rise of Belmar, the City of Lakewoodwas able to attract a high caliber ofcommercial tenants that the site had not seenin over twenty years. At build-out, the newdowntown district will have one millionsquare feet of retail, 800,000 square feet ofclass A office space, and a full service 250-room hotel. Since its opening, almost 100percent of the office space has been leased.
Art, cultural, and civic amenities drawresidents and visitors to the district. A movietheater, bowling alley, and art galleries havealready opened, and a 15,000 square footcontemporary Art Institute, The Lab, willopen during Phase II. The public space andparks serve as community gathering spots.Belmar hosts a monthly Parisian Street fair, anannual Italian heritage festival, a weeklyproduce market, and other communitycultural and educational events.
Residential DevelopmentIntegrated with its retail, commercial, andentertainment uses, Belmar also has a varietyof housing options. With the completion ofPhase I there are 241 residential units, and atbuild-out that number will reach 1,300.Residential options include urban row homes,
Figure 3: Shops on South Teller Street, Belmar
luxury apartments, condominiums, lofts, townhomes, and live-work units. Many of theresidential units are above retail. Some of thehousing in Phase II will be developed inconjunction with the Lakewood HousingAuthority to accommodate residents atincome levels of 60 to 80 percent of the area
median.
Economic Indicators: Belmar New businesses (2005) 62
Jobs created (2005) 3000
New residential units (2005) 241
Private investment (build-out) $752 m
Public investment (build-out) $120 m
Private-to-public investment ratio 6:1
Increase in property tax revenue: 2002-2005 ~ $2 m
Increase in percent property tax: 2002-2005 ~ 500%
Moving ForwardThe City of Lakewood saw opportunity inVilla Italias decline and transformed theircommunity. With a strong public-privatedevelopment partnership and a clearcommunity vision, the city created an urbandestination for the Denver Metro west side, as
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The Southeast Side NeighborhoodDevelopment (SEND), a non-profitcommunity development corporation, is thelead organization for the Fountain SquareCultural District. It provides a unifiedapproach to developing the commercial
corridor that now comprises more than300,000 square feet of commercial space andtwo arts centers. SEND has also worked toupgrade public infrastructure and amenitiesincluding a $5.5 million community center anda $2.5 million library. SENDs effort, withsubstantial investment from the city,charitable organizations, corporate support,and individual donations, has fostered therevitalization of Fountain Square and itssurrounding residential neighborhood.Increased investment in the commercial
district has attracted investment insurrounding residential areas, with both long-time residents and new homeownersparticipating in improving the quality of areahomes.16
Figure 2: Fountain Block and Fountain Square TheaterBuilding from the roof of the Murphy Art CenterPhoto: Dale Bernstein
Early Fountain SquareFrom 1910 to 1960, Fountain Square was aneighborhood destination and the citysdowntown for the Southside. There weremultiple movie and vaudeville theaters,independent banks, a wide range of retail,churches, and social centers serving a range ofethnicities.
Economic hardship in the 1950s eclipsedFountain Square's long-standing role as theSouthside's commercial district. All of theneighborhood theaters closed, and there was aturnover in the type of businesses housed inthe original commercial buildings. Manybusinesses closed and were replaced by lowerquality ones.
In the 1970s, construction of I-65 cut theunified Southeast into isolated pockets anddestroyed thousands of homes, hundreds ofbusinesses, and many schools and churches.Suburban flight and disinvestmentcompounded the process.
Figure 3: Fountain Block Senior Citizen Housing and
Fountain Square Branch Library Photo: Paul Baumgarten
RecoverySEND worked incrementally on individualprojects in the commercial district for morethan 20 years. If you look at where FountainSquare was twenty years ago, theimprovement is remarkable. Weve seen manysuccesses as we steadily revitalize theneighborhoods commercial center, saidSEND Project Manager Paul Baumgarten.Although the substantial success of the
revitalization of downtown Indianapolis hadsome effect on Fountain Square, it was mostlySENDs long-term commitment thatencouraged confidence in program sponsors.
PROPERTY TAX VALUE, FOUNTAINSQUARE*
TotalProperty Tax
Value
% Change inProperty
Tax Value,1995-2005
1995 $3,695,033.27
2005 $5,186,859.08
40.47%
*Tables prepared by IEDC include 136 out of 150 parcels
for which 1995 and 2005 information was available from
census tracts 3559 and 3571. These tracts include significant
portions of the Fountain Square Cultural District.
SEND is still working to diminish the pastnegative perceptions of people from outsideof the neighborhood, but as more and morepeople have positive experiences in Fountain
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Square, visitation and interest in commercialand residential real estate has increased.SEND and the city energized therevitalization of Fountain Square byredeveloping large, prominent buildings that
served as catalysts for additional reinvestmentand improvement.17 The Murphy Art Centerand Fountain Square Theatre Building weredeveloped through a partnership betweenprivate investors, SEND, and the LocalInitiatives Support Corporation (LISC). Apreviously abandoned 45,000 square footretail complex, the Murphy Art Center,completed in 2001, was developed inpartnership with two artists. The projectcreated six business storefronts primarilyoccupied by arts-related businesses and
galleries, with 32 studios on the second flooroffering affordable workspace for artists. Forthe Fountain Square Theater Building, SENDwas the co-developer with a longtimeneighborhood resident to restore a largelyvacant 1920s movie building into anentertainment complex. The building hosts atheater with cultural, community, andeducational events.
Census Tracts 3559, 3571, 3557, 3562, 3570, 3572
SEND restored an abandoned 1902
commercial building. In 2004, the FountainBlock Building, with 22 upper-floorapartments and a public library branch,became the primary contact point for visitorsto the cultural district. The apartments havebrought extended hours of activity to thecommercial area.
In 2001, the Wheeler redevelopment putFountain Square on the map as a serious artscommunity. The Wheeler Arts Community,an adaptive-reuse 60,000 square footabandoned industrial building, now serves as36 live-work lofts for low-income artists, and
arts program space for the University ofIndianapolis. A mix of federal tax credits,bank investments, grants, and special loanspaid for the $4.4 million redevelopment.
Figure 4: Murphy Arts Center, decorative Terra CottaPhoto: Paul Baumgarten
The four catalyst projects cost a total $9.5million. Project funding sources include local,state, and federal governments, charitablefoundations, corporate donations, andindividual contributions. Significant in-kindcontributions, fundraisers and thousands ofhours of volunteer support furthersupplemented monetary contributions.
Neighborhood Change, 1990-2000
Fountain
Square
Surrounding
Districts
Indiana-
polis
Population -3.5% 7.5% 6.5%
MedianHousehold
Income82.2% 54% 41.8%
Per CapitaIncome
67.7% 67.1% 52.7%
Long-term projects, currently in the planningstages, include upgrades to the streetscape andfountain, developing additional public space,and creating gateways and directional signsthat visually define Fountain Square as aunique neighborhood of Indianapolis.
igure 5: A Fountain Square art gallery Photo: SENDF
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Economic Indicators and Funding
Economic Indicators, 2002-200518
Total jobs crea