Back to Basics: Downtown Development Strategies That Work. Digitally Scanned Analog Edition. Published in the Proceedings of the 2002 American Planning Association National Conference. Authored by Susan Winterberg and Sean Bender

1. Backt aSICS
Susan J. Winterberg & Sean P. Bender

2. Introduction
At the heart of every city economic forces that are already
lies a market. Cities that suffer at work in the city. Experience
from disinvestment do so because has shown that successful plans
there are common barriers to and planners are those that
investment that prevent the capitalize upon those forces to
market from developing. This create new opportunities for
paper describes seven urban reinvestment By focusing
principles that explain why on the basics and applying the
urban revitalization projects seven principles, city revitalization
work while others fail. These strategies are transformed from
seven principles may not an abstract phenomenon into a
encompass every imaginable clear and understandable process
detail of every successful that can happen anywhere.
place. However, they form a In this paper we will first
reasonable model from which identify ahandful ofcommon
we can begin to not only barriers to revitalization, and then
understand revitalization, but we will explain the seven
also make it happen. principles of successful The Seven Principles
For many cities revitalization followed by
of Successful
revitalization has become complimenting case studies. In its
merely facade building. Such closing this paper will leave you Revtilization
solutions give the appearance with the pitfalls ofthe Respect the city's hierarchy
of economic health without revitalization process and of needs
ever addressing the llllderlying methods on how to avoid them.
causes of disinvestment. While Address old before new
there is no "one size fits all"
formula for revitalizing a city, Assemble a critical mass
this paper offers a strategic
framework to help leaders Use streetscaping and
critically analyze their ideas to aesthetics
determine whether or not a
proposed project is 1ikely to Allow the market to work
attract large seale private
investment. We identify Capitalize on the city's
common themes in successful unique assets and
projects and common themes in opportunities
projects that were not
successful. Develop and follow a
"Back to Basics': strategic plan
focuses on the social and
2

3. The Barriers of Revitalization
Creating a revitalization The efforts, when compared to
estimated to cost 200 million dollars.
project that is able to attract the results, are dumbfounding. Since
(4)
reinvestment into a city first requires 1 960, public investments have built
In most, if not all ofthe
that existing barriers to investment highways cormecting the downtown
aforementioned efforts the
be identified and removed. Such to the entire region and super-region.
government's right to take property
barriers can come in a variety of The City has built three stadiums; the
for public investments has weighed
forms including impractical zoning latest two will cost two billion dollars
heavily . Over the past forty years
regulations, rigid building codes and when paid for. The City has a] so built,
City, County or State govermnents
property tax structures that and expanded, a downtown
have come to consume as much as
encourage disinvestment and land- convention center, and is currently
fifty percent of the property in
hoarding. Sometimes projects considering yet another expansion
downtown through purchase or the
implemented with the intention of
revitalizing a city can themselves
become barriers of investment
through the excessive use of public
The Distortion of the·CBD Real Estate Market
subsidies and eminent domain.
Eminent Domain as a
Barrier
Eminent domain has been a
widely used tool ofplarmers and the
"reformers" of our nation's cities for
over a half century now. Urban
Renewal, interstate highways, sports
stad.iwns and a multitude of other
conunon urban redevelopment
projects have depended heavily upon
the forceful taking of private property
for implementation. The implications
of the widespread use of eminent
domain are incredible, as can be seen
by taking a closer look at the city of
Cincinnati.
Since 1960, downtown
..
Cincinnati has seen billions of
dollars in public investments through
highway developments, stadiums
projects, and other significant
Reads & Hl~BVS
economic development schemes_ At
the same time, the downtown area P~v o-~r-r::'d IW Go~t~t.
r.~,· .or, ar 'ft:ro,'!f Df'' tl by
.
has seen tremendous losses in every I;Mittqnl~
category of private enterprise. Even
BL •itdtrt{r.i
further, downtown population has
declined by over 55 percent since
1960, from over 12,600 persons to
just tmder 5,000 persons in 2000. (15) From "Some Proposals to Energize our Community"

4. use of eminent domain. Some of the businesses and residences that cases in downtown Cincinnati,
property was taken for despite compensation closed down government agencies have paid an
redevelopment purposes and has or relocated outside of downto"W!l average of over 1.5 million dollars
been recycled into the market, while a or the City. In the case of the per acre for seized properties.
large percentage remains in public stadiums and highways, thousands Those same properties had an
hands for purposes as parks, of properties were taken, while in average pre-seizure market value of
highways, and stadiums. some of the "smaller" efforts entire just over 63 7,000 dollars per acre.
The demographic analysis blocks have been cleared. In the With such a large economic force
of downtown Cincinnati shows that case of more than one development, consmning properties at above
the aforementioned investments, and property has been taken twice or market rates in a concentrated
the use of eminent domain as a tool more through eminent domain. location, an artificial, if not
for their implementation, have not Even further, the widespread monopolistic, condition is created
improved the CBD. Since 1960 use of eminent domain bas thus destroying the markefs ability
downtown has lost 420 of 595 drastically impacted property to operate without further
retailers. It has lost 118 restaurants, values in Cincinnati's CBD. Since government involvement.
30 hotels, and hundreds of other 1960, as much as 50 percent of the The use of eminent domain,
small enterprises, industrial outfits, land in the CBD has been owned, in corn bination with Cincinnati's big
and professional practices. Even purchased, or forcefully taken by ticket revitalization efforts has led
further, it has lost close to 8,000 City, County, or State governments. to fruitless results. Small
residents. ( 15) Often, the properties In a dozen recent eminent domain businesses struggle for existence,
claimed by eminent domain contained with hundreds disappearing from
the downtown. Larger businesses
have seemingly grown dependent
Attrition in Downtown Cincinnati upon subsidies and other
governmental assistance, often
threatening to leave the downtown
if their demands are not met.
Type of Use Year Downtown Cincinnati has
incredible access to super-
1960 2000 highways, state of the art sports
complexes and arts venues, a major
·1 an u f':v.: lurmg & 113 14 convention center, dozens of high
rise towers containing over ten
V ~!rehousing million square feet of office space,
Vhole~ale Supphers 16f1 1-l and thousands of hotel rooms.
Retail _:C)) )75 However, the overall demographic
Food Retail data suggests that it is anything but
.._...,
I 37 ~"..;:
Restaurants & Bars 24~ 114 an economically or socially vibrant
place. Despite over two billion
Emert~untnent 30 1')
dollars in public investments in the
Hl)tels ~2 1::: CBD over the past half decade,
TrJnsponmion I J2 qg City leaders continue to struggle
Commercial Sen·ices -iX6 210 with maintaining and improving the
Finnncial Sen ices (;Js 3(}3 economic and social vibrancy of
the downtown. (4)
Proressi,mat Sen·ices 745 5(}7
Source: Some Proposals to Revitalize
Our Community

5. Business Subsidies the 1980's half of a city block riverfront. Financed with a
containing a department store and combination of corporate and city
as Ba.rriers offices was cleared for a new high money, the Renaissance Center was
rise mixed use development. Several designed with the intentions of
Many public leaders assume portions of the mixed use high rise creating a renaissance in a city that
the reason the urban core is fell through due to low demand for was plagued with riots, racial tension,
disinvested is because govennnent office space and the project was uncontrolled arson and vandalism
subsidies are required to bring halted for nearly a decade. In the mid and among the highest rates of
investors to the city. To this end, 1990's theprojectfmally came to abandonment and suburban flight in
cities have poured billions of dollars fruition as a three story facility the country.
into subsidies to attract and maintain containing Lazarus, Tiffany's, Brooks The project cost $3 57
businesses in the downtown. Brothers and a restaurant. (20) Million in 1977. During its first five
Cincinnati, for example, recently Other cities have tried the years it ran at an operating loss of
pushed a plan to subsidize subsidy approach to attracting $130Million(9). Now, twenty-five
Nordstrom Department Stores to investment back into downtown and years later, and after the city has built
locate within the CBD. Within this have been met with similar numerous other attractions including
plan the city offered nearly 60 million ambiguous, if not disappointing a new opera house, a people mover
dollars of subsidies to develop and results. The City of Detroit has also (an elevated monorail built around
maintain the store for an invested billions in taxpayer dollars downto111), and two new stadiums,
undetermined number of years. In over the last three decades in an Detroit's population is still declining.
addition, the City cleared half a block attempt to revive their downtown. In Further, the city still remains among
(containing a 15 story tower and 1977 the city embarked on what was the highest rates of abandonment,
garage filled with offices and lower to become the epitome of failed crime, and poverty in the nation, and
scale retail) and paid millions to revitalization attempts with their among the lowest in downtown
relocate numerous existing investment in the Renaissance property values.
businesses. Ultimately, N ordstrorn Center, a complex oftubular office
pulled out of the deal due to market towers and retail space on the Detroit
conditions and the City still has an
empty block near its most vital CBD
properties, and is in the process of
clearing part of another block to
relocate a displaced drug store. (17)
Cincinnati has developed a
track record of subsidies that stretch
beyond the Nordstrom fiasco. Saks
Fifth Avenue, across the street from
the failed Nordstrom site, was
recently granted 6.6 million dollars to
refurbish the interior of its not quite
20 year old facility. The latest
subsidy also restructured previous
subsidies originating from 1996 and
the early 1980's when the store was
first constructed as a part of a larger
development. ( 17)
Across the street from the
failed Nordstrom site is the infamous
FountainPlace West Development. In 5th & Race Streets Cincinnati, site ofthefailed Nordstrom project

6. Sports Stadiums as businesses aroWid them (a few bars
and restaurants~ souvenir shops, a
Barriers hotel or two). (23) However, their
total economic impacts appear to
Almost every major city in have been grossly overestimated. A
America has built a "renaissance 1997 study conducted by the
center" of their own with the promise Brookings Institution titled Sports,
of a magical transformation of an Jobs and Taxes examined the
abandoned and largely under utilized proposed economic impacts of new
doMltown into a bustling twenty- stadiums in cities across the country
four hour community with new includingBaltimore,NewYork, Twin
places to shop and places to eat. Cities, Cincinnati and Cleveland and
During the last decade, one of the their actual results. The research team
most common forms of these found that reports commissioned by
"renaissance centers" has been the cities or sports teams intended to
new sports stadium. However, the persuade public opinion on the
ability of such a project to attract construction of new stadium facilities
investment into nearby have incorporated a variety of
neighborhoods is highly methodological discrepancies
questionable. including equating new spending
With increased pressure from with spending diverted from other
teams to relocate if their host city did locales within the city, attributing all
not provide them with newer and out-of-town spending as being
bigger facilities, cities across related to the sports stadium
American have scram bled to win regardless of the reason of the visit,
over public support, levy taxes, and as well as a number of manipulations
issue the debt necessary for the in calculating the multiplier effect,
hundreds of millions of dollars ignoring the opportunity cost,
required to provide sports teams with additional infrastructure costs and
their new facilities. In an effort to negative effects of applying the taxes
raise public support, studies were to the stadium.
commissioned indicating that After considering the various
investment made on the new facility studies, the Brookings Institution
would be recovered multiple times concluded that sports stadiums did
over by increased jobs and towi.sm. not significantly promote the
Further, as was claimed by many economic development of a
stadium supporters, and most metro}X>litan area, did not
recently by supporters of the new significantly assist in maintaining the
Yankees stadium that was to be built vitality of an urban center, nor did
in the Bronx neighborhood ofNew they promote micro-enterprise
Yark, the stadium when combined development within a small defmed
with other large city investments district of the city. In fact, the
such as the expansion of a nearby overwhelming consensus of these
convention center, would serve as a studies revealed that «the local
catalyst for reinvestment in the economic effect of a sports facility is
nearby neighborhoods (23 ). between nonexistent and extremely
It is true that sports stadiums modest." (18)
do attract a certain number of new

7. Large Investment residence in the urban center or
invest in property Olllership there.
Total Impact These projects are typically designed
to cater to loyal suburban dwellers,
On the whole, large public some of whom, research bas revealed
investments have proven to be an have a fear of the city ( 11 ) . These
ineffective method to revitalize a city. attractions target suburban visitors
However, this should not be by providing them a drive·in
interpreted as building such projects controlled environment divorced
is wrong, or that cities ought not from the rest of the city.
prioritize the building of stadiums and A true revitalization project,
other fonns of entertainment or retail in contrast, raises the livability of a
venues if it is the voters' will to do city as well as the economic
so. Rather, such evidence indicates attractiveness of investment there.
that claims that these large public While what one might call a drive-in
investments will attract people to live attraction certainly does add value to
in the city and spark large scale a city, it cannot, by its mere
reinvestment into dilapidated presence, transform a neglected and
neighborhoods is illlproved. abandoned downtown into a
There is clearly a significant degree desirable place to live. The
of popular support for the public challenge then becomes developing a
financing of stadiums, retail and method by which leaders will be able
office complexes, and other public to evaluate whether a proposed
projects as can be inferred from the revitalization project will become
wide scale political support and only another drive-in attraction or a
proliferation of such projects across project actually capable of bringing
the coillltry. However, while citizens investment back to the city.
may support the use of their tax
dollars to finance such projects, it
appears these projects do not provide
a sufficient economic incentive for
these same individuals to relocate
their residence or to invest in the
areas surrounding the project in the
form of property ownership and
micro·enterprise development.
Here a distinction arises
between what is merely a "drive-in
attraction" and what is a true
revitalization project. A drive-in
attraction is a development that may
attract individuals to visit the city a
few times a month or a few times a
year (for example, to see a sports
game or a play or to shop at a
particular retail center) but carmot by
its own merit entice a significant
number of individuals to locate their Foutain Place West, Downtown Cincinnati

8. The Case for Revitalization
Revitalization and economic businesses are now able to locate selection was "quality of life." The
development are two terms that are virtually anywhere they choose, free primary considerations of quality of
frequently used interchangeably. of the typical constraints of life companies were seeking (and
While there are many overlaps geography. (8) This has meant new hence their potential hires were
between the two concepts, there are opportunities for vast wealth creation seeking) were good housing options,
some clear differences that must be in certain areas of the country, able to easy commuting, and overall visual
understood before attempting to attract these high paying jobs attractiveness of the place.
evaluate a revitalization project. including most notably the Silicon Secondary factors under quality of
Economic development is the Valley/ San Francisco Bay area, the life were access to public institutions
process of building upon and Research Triangle of North Carolina such as libraries, museums and sports
expanding the economic base of a and Boston. Many other cities have venues (19).
city. While economic development is launched campaigns in an effort to Iterns such as housing
critical for the long-tenn health of attract these types of companies. options, quite naturally, vary
any metropolitan region, it must be Some have been successful, while depending on the individual's
understood that the economic many others have not. It appears that preferences, his income, and the
development process cannot be the over all quality of the living needs particular to the current stage
equated with the revitalization of the experience in the city itself plays an of his life. For some employees good
inner city. Increasing the number of important role on a city's ability to housing options may mean suburban
companies located in the downtown, attract these new forms of economic style housing. For others
the number of jobs, or even development. (particularly young new hires who
attracting higher paying jobs to the In a 1997 study conducted by the company is trying to target with
downtoTI is no guarantee that the the Real Estate Research Institute, their location) good housing options
city will experience increased information age companies from may mean rental or condominium
livability or reinvestment in the form across the country were interviewed style housing in an urban setting (8).
of property ownership. Such a and asked to describe the process In any instance, a boarded-up
paradigm of revitalization can be they use in making site selection downtown is not an attractive selling
seen in the all too common "office decisions for their company. Among point for any potential relocation.
slums'' in American cities that the factors they considered were Thus new strategies are needed to
become abandoned after 5 p.m. and typical economic factors such as address the decaying core of the city.
on weekends. While increased local property taxes, income taxes,
economic development may not be a cost of office rents, and cost and
reliable method to revitalize a city, availability of land. However, the
there is evidence to suggest that most important criterion in site
revitalization can play a significant
role in increasing a city's potential for
economic development.
In recent years the economy
While increased economic
has gone through a transformation development may not be a reliable
from being focused on
manufacturing and production to one method to revitalize a city, there is
that has been focused on the setvice
sector and on knowledge-based or evidence to suggest that revitalization
information age products.
Subsequently, business location is
can play a significant role in increasing
becoming less dependent on the local
geography, on the availability of
a city,s potential for economic
natural resources, waterways and development.
pools of cheap labor. Instead
8

9. Getting Back to Basics
At the heart of every city particular the local residential market.
lies a market. Cities that suffer from Leaders must come to accept that the
disinvestment do so either because city is not the most desirable living
there are barriers to investment that arrangement for many people.
prevent the market from developing, However, there is a market for city
or because the private sector has not living. It is those people that live
yet discovered an opportunity to outside the city, but show an interest
develop profitably in the city. Most in city living that should be targeted
often, these two scenarios find their with revitalization initiatives.
basis in a lack of understanding Marketing firms that research
about the city, in the basic social and trends for real estate developers use
economic forces already at work a statistical tool called lifestyle
there and in a lack of understanding cluster analysis in identifying market
of the potential to capitalize on these opportunities for urban housing. This
forces to create surplus value. technique, which involves
conducting market research on
The Market Based individuals who live outside a city's
urban core, but show a strong
Strategy affinity for the urban environment (a
gee-demographic group termed
The market is the lifeblood of "suburban urbanites") identifies what
the city. Whether it be a market for the determining factors were for
housing, a market for commercial these clusters of the population to
space, or a market for goods and choose to live outside the city.
services being offered by the city's Research in various
entrepreneurs, a successful and metropolitan regions has revealed the
balanced marketplace is both what choice was based on factors such as
keeps a city going and what makes it easy availability of parking, security,
attractive to potential residents and and increased privacy (11 ). Having
potential new sources of business. gained this type of information
Yet policy geared towards the specific to their own region, real
economic revitalization of a city is estate developers and policy makers
often divorced from this basic are then able to target their products
principle. Elected officials in City and their initiatives based on the real
Halls often vote on appropriations to market potential of their city.
developers and retailers without any
real consideration for whether a
market exists locally for such
products or whether their policy
initiatives will be an effective
attraction for further investment in
the city. Revitalizing a city is a
complex process, but it is based on
basic principles of economics and
sociology. Before attempting to
construct a revitalization program,
leaders must first have a solid
understanding of the local market, in

10. The Seven Principles of Revitalization
needs are met, it must offer a feeling
economically healthy habitats for of safety and then have a variety of
Once the city's demographic
their individual human beings. Cities
trends and potential market places for people to work and e~
opportunities have been identified, it that are abandoned, and have money. Then. it must have a vanety
is then necessary to find ways in experienced serious disinvestment of entertainment options and be
which to capitalize upon these are suffering on the lowest levels of aesthetically pleasing.
the hierarchy . When one approaches Just as we as individuals
opportunities. Aga~the city is a
the problems of the city in the
complex envirorunent. Yet its cannot pursue our need for high
complexity derives from a few basic context of revitalization and aesthetics or entertainment ifwe
attracting residents and other lnck more basic needs like food,
social and economic principles. For
investment back to the city, he must shelter, and safety so is a city not an
the purpose of evaluating a proposed
revitalization program, the following begin where the city currently is on attractive habitat if it has only these
the hierarchy and work upwards. higher level needs present. Cities
seven principles may be used as a
When approaching that have experienced revitalization
guiding framework for identifying
revitalization projects, it is important have targeted their policies and
opportunities to capitalize on the
to keep in mind that while luxuries
market potential in the city. their financial resources towards
like new stadiums and cultural addressing these more basic needs
Respect the City's centers can add value to a place that first, such as reuse ofthe salvageable
is already a great place to live, they
Hierarchy of Needs cannot, by their own accord, make a
abandoned housing and places of
business, and incentives for starting
city a desirable place to live. The small consumer-directed businesses
In the 1950's, psychologist reason is simple. For a city to be
Abraham Maslow developed a such as grocery stores, small shops
livable, it must have the basic and restaurants as well as
theory about hwnan motivation. In necessities we need to live. It must
Maslow's theory, all humans are implementing strategies to reduce
have a variety of housing options. It crime. Ifthis can be accomplished,
motivated by general categories of
must have easy accessibility to food the natural market will take care of
needs that can be arranged in a
markets and restaurants. Once these
hierarchical pyramid. On the base of
the pyramid was the need for basic
physiological survival such as food
and shelter. On the next level was
safety, followed by social belonging.
On the higher levels include such
needs as the pursuit of esteem,
entertainment and high aesthetics.
One's ability to be motivated by
higher level needs is ftrst dependent
on his lower level needs being met.
Thus, one who is starving, lacks
shelter or is constantly running away
from a~als threatening his life will
have no time or interest in learning
about golf or abstract art.
A city is nothing more than
a society of individual humans. And
like individual humans, cities too
have a hierarchy of needs they must
advance upon over the course of time The Urban Socitrpsychological Hiearchy of Needs
if they are to become strong

11. Address Old Before developers fmding buyers and
businesses fmding a large enough
New customer base is highly uncertain.
There is an old saying that An investor's ability to earn a
three things matter when it comes to reasonable return and hence his
investing in real estate-location, willingness to invest in the project is
location, and location. Yet there is a dependent almost entirely on the
tendency when thinking about property values around him rising
revitalization to focus only on and the neighborhood coming back
getting new buildings built and to The Detroit Opera House & the as a whole. If one person goes into a
completely ignore the "location," Ruins of the Madison Theatre (By dilapidated neighborhood of 100
that is the condition of the existing Lowell Boileau) buildings and purchases one bui Iding
properties in the city! and rehabilitates it, the chances of
Tax credits and other market values! New construction can the value of the building ever rising
subsidies will be provided for new be subsidized, but if the condition of enough for him to recover his
construction, while everything else is the buildings around it are in such a investment are slim. Similarly a
left to rot. This may seem hannless state of disrepair, ultimately, the housing initiative implemented
on the surface, but for most cities, value of the new building will be without taking care ofbusiness
this ends up being their fatal flaw. brought back down. owners' needs or a corrunercial
Despite the widely held belief that Successful revitalization district revitalization plan
matters relating to urban vitality are takes advantage of the "location" implemented without a housing plan
the responsibility of elected officials, source of value of real estate and to provide customers can quickly
revitalization happens primarily by targets existing buildings frrst. If it become a recipe for disaster. This
investment from the private sector, can be made feasible to bring back "spot revitalization" approach does
and the role of the public sector is what is existing, then the area as a not work. A critical mass of
reduced to a bare minimum. To make whole will become desirable and investment in both residential and
revitalization successful, one has to investors of new construction will commercial properties must be
be able to think like private sector come of their own financial interest. established at one period in time to
investors and understand their bolster confidence in other investors
that their investment will be
interests and effectively address Assemble a Critical worthwhile.
them in the planning process.
Investors in real estate are Mass Consider the case of two
looking for opportunities to increase Cincirmati streets shown in the
Real estate development in
the value of their properties. Real pictures below. The street on the left
dilapidated neighborhoods is a high-
estate derives its value from two is Vine Street. A sole entrepreneur
risk business. Rehabilitation costs of
sources. A bui Iding derives value has purchased this solitary building
existing buildings can greatly exceed
first from itself-its materials, its and rehabilitated it. It is surrounded
acquisition costs many times over
design quality, its size. Yet a by dilapidated buildings and tax-
and the probability of residential
significant amount of its value
derives from what is around it, it's
"location" and the amount residents
or businesses are willing to pay to
locate themselves where that building
stands.
Obviously. identical
buildings in uptown Manhattan and
in a dilapidated Detroit
neighborhood do not have similar Vine Street - No Critical Mass Main Street- Critical Mass

12. foreclosed properties. Just two city became no longer able to
blocks east is the picture on the right, subsidize the insufficiently profitable
Main Street. The buildings on Main entity or it reprioritizes its allocations
Street were once in a very similar elsewhere. In most instances, their
condition to the buildings on Vine investment was lost almost totally
Street. However, in the mid 1990' s a lost. In addition to being ineffective
group of local developers worked in revitalizing the city, this approach
together to buy out entire blocks of has proven quite costly both to the
the street at one time. The taxpayers and to the developer. ( 17)
rehabilitated building shown in the Successful revitalization
picture of Vin~ Street has an assessed utilizes the most powerful economic
market value of $30 per square foot force in existence-the free market.
after its rehabilitation. The remainder City and private investment is
of the buildings on the block have an new urbanism commwrity of Seaside, targeted towards helping new
average value of $16.77 per square Florida, aesthetics plays a powerful businesses get started and existing
foot. In contrast, the average value of role in raising the desirability of a businesses expand. However, the
a building on that same block of place and in increasing property choice of what these businesses are is
Main Street just two blocks east is values_ left for the local marketplace to
$56.75 per square foot(22). Investors who Wlderstand the decide. The burden of understanding
Critical mass can make or economic power of aesthetics realize the market, and making the strategic
break a revitalization attempt both in the difference that simple business decisions about what types
terms of making a project financially investments such as burying utility of goods and seiVices should be
feasible and in terms of making an lines, planting new trees, narrowing offered is transferred away from
area of the city feel safe and be an streets, planting medians in policy makers in City Hall, and into
attraction to potential customers and boulevards and successfully the hands of individual entrepreneurs
residents. designing the zoning and design who will ultimately bare the
guidelines for infill construction can
Use Streetscaping and make on the success of a city.
accoWl.tability for the success or
failure of the business. Successful
Aesthetics revitalization is not an effort to
create an artificial market, but
Good aesthetic treatment of Allow the Market to instead to help stimulate a market
the surrounding spaces is one of the
easiest ways to boost the desirability Work that does exist and that will be able
to exist on its own in the future
of an area. Whether it be the gracious
Many public leaders assume without further public subsidy.
squares and towering oaks lining the
that subsidies are needed to attract
narrow streets of Savannah or the
businesses to locate in the city. To
interesting street furniture, lamp
this end city governments have
posts, and sidewalk designs of the
subsidized high end retailers,
shopping malls, and other
commercial entities in an effort to
compete with suburban shopping
centers. Often times, these
appropriations are made as a result of
political pressure with no real
consideration to whether a market
actually exists for the businesses
being subsidized. What normally
Waterplace Park, Providence
happens in the long run, is that the
(Before) (By Sandor Hobo)

13. Use the City's Unique city is revitalized or not depends on investors to evaluate for themselves
the ability of leaders to find these or to present to their stakeholders to
Assets and opportunities and work together in a boost their confidence that the
Opportunities timely fashion to act upon them. neighborhood really will come back.
Strategic plans are needed
to jump-start investment efforts, but
Successful revitalization is Develop and Follow a long term, they wi11 also prove to be
not a result of any one formula but crucial to a city's continued success.
instead of taking advantage of the Strategic Plan
Everything in the city is
unique opportl..Ulities present in one interconnected in a giant jumbled
given place. Cities that have had Revitalization is a many step web. If some aspects of the city are
successful revitalization projects process, however there is no faster able to be brought back up, while
were able to identify unique way to guarantee failure than to take others are weighing it back down,
opportunities for investment in their a step-by-step approach. ultimately, the city as a whole will
community such as unmet housing Implementing individual projects come back down. If dwing your
needs for demographic groups that (small business loans, housing plans, revitalization process you displace
have an affmity for city living- aesthetic improvement plans, etc.) large numbers of people into worse
young people, the elderly, although they may be good projects, conditions, or if you have a poor
immigrants, artists, small business cannot be successful when school system, or poor
owners. Projects are selected based implemented sporadically and environmental planning, all of your
on market research and local without the guidance of an overall other efforts can be brought back
demographic trends rather than long-term plan. down.
speculation about who might be The objective of all The plan helps you
interested in living in that particular revitalization planning must be to prioritize your efforts as your work
city and what that group's needs are. attract a large number of private your way up the hierarchy of needs.
Further, successful sector investors. To do this, a critical But it also serves the purpose of
revitalization requires utilizing mass must be established and integrating everyone's interests into
existing resources and existing stores individuals' must have their one picture. Cities without these
of leadership talent unique to a confidence boosted that entire types of plans in place can become
particular city. Successful neighborhoods where their property easily fragmented as special interest
neighborhood revitalization efforts would be located will come back. groups compete for political power
have been led by for-profit There is no worse message to send and resources without any real
developers, mayors, city council investors seeking to decrease the consideration ever given to the
members, citizen groups, and historic amount of WlCertainty in their return quality of the urban environment as a
preservation non-profits alike. Who than random city appropriations. whole. The planning process, when
is leading the efforts is not so With no long term plan in place, properly done, brings these special
important as the ability of those investors cannot feel confident that interests together and causes people
leaders to leverage talent and the commitment to bringing the to see them selves as interconnected,
resources where they already exist, neighborhood back is there for the and understand their group's success
and bring leaders from public and long haul. Such random acts on the as being dependent on the success of
private organizations together to part of city government send a others. Having strong political and
work towards common goals. Every message to private investors that says citizen support for a revitalization
city has unique opportunities for revitalizing that area is yet another project is crucial for its success, and
reuse of the downtown and existing one of their many current ideas, and the strategic plan is the document
stores of leadership within its stock that next year they might very well that demonstrates how everyone is a
of elected officials and organizations reprioritize to focus on something stakeholder in this process.
that can coordinate activities and act else and leave them hanging. Further,
on these opporttmities. Whether a there is no strategy in place for

14. The Seven Principles in Practice
All successful revitalization revitalization efforts have been led by Oregon has been particularly
projects have multiple aspects to private or non-profit groups. and successful in its efforts to create a
them and involve partnering with leaders from city government were customer-setvice oriented culture.
numerous public and private brought in as partners in the planning The city began its efforts
institutions. While no single template and implementation process. The with a competition to develop a motto
can guarantee success anywhere, most important principle that must be for the city government. The winning
certain principles can be extracted on kept in mind, regardless of who is motto, "The City that Works," was
how to best integrate the many leading the efforts, is that city then plastered onto every city vehicle
aspects of the planning process and government must be 'treated as a and other publicly visible items. To
what roles each partner needs to partner in the revitalization process, live up to their new title, the city
play. A variety of innovative and and not as the sole provider of continually encourages individual
creative solutions-far too many to funding, ideas, and other resources. departments to develop new
describe in detail in a report of this When the revitalization efforts initiatives to slash red tape and
size-have been developed by city are being led outside City Hall, improve customer service. The goals
governments, non-profits, real estate public leaders need to be approached and results of the departments are
developers, and citizen groups alike from the earliest planning stages to published every year in a document
that have been able to lift the barriers gage what type of political and other available for all citizens and other
of investment in their city and bring fmancial support might be available city employees to review (5).
back residents and large scale to supplement the privately led The most critical success
investment into the urban core. efforts. Effective advocacy and factor for city governments leading
Developing a successful public education of the project also revitalization programs though has
revitalization program requires that play an important role in gaining the been including private sector
leaders are able to construct a political support needed to gain city· investors in the revitalization
revitalization partnership of multiple backing of the efforts. planning and decision making
organizations and develop roles and When the revitalization efforts process. The political process,
responsibilities for each of the have been successfully led by elected particularly as it relates to matters of
revitalization partners. Effective officials then several key changes economic development or
solutions for each of the main usual1y have been implemented in revitalization, has a tendency to
partners of govenunent, for-profit the organizational culture of the city become easily divorced from the real
and not·for profit leadership are government. The most effective of issues and needs of the private sector
described in this section along with a city governments tend to operate developers and businesses. To help
description of a few city's successful more like private organizations than alleviate this tendency. cities need to
revitalization programs and the like the government services create initiatives to include the
principles that can be attributed with monopolies that they are. They have feedback of local business owners,
their success. visions and mission statements, property owners and developers into
along with specific goals, plans and the economic development decision-
timetables for achieving those goals making process to ensure that the
Effective Uses of City and clearly defmed accountability steps the city is taking are indeed
Government (See Case Study: Transforming City lifting current investment barriers
Hall). (24) and are facilitating private
The role that city government Such cities also tend to have investment back into the city.
plays in the revitalization process customer service high on their list of
varies from city to city. In some priorities. For city leaders this means
situations the mayor or city council fmding ways to slash red tape and
members have spearheaded create an organization whose culture
revitalization efforts, implementing is entrepreneurial and focuses on
the stages through the operations of attaining quality outputs as well as
the city government In other places, reducing costs. The city of Portland,

15. Case Study: the City were based off local to shut down drug houses and resell
demographic trends and market them to frrst time homebuyers.
Transforming City research. Further, to ensure his By basing their initiatives
Hall policies were meeting the needs of on facilitating private investment,
private sector investors, Menino complemented by having a clear set
This case study established a Mayor)s Advisory ofpriorities with a market-driven
demonstrates how changes in the Panel of local developers and other strategy and implementation plan
management philosophy and private citizens who advise him and for achieving their goals, Boston has
organizational culture in city his staff on how city policy can better been able to bring life back to all
government can help facilitate facilitate private investment in twenty-one of the city 's
private investment in a city. Boston. Facilitating private neighborhoods, has reached a thirty
investment remained a: top priority year crime low, and has become one
When Mayor Tom Menino throughout the various programs of the top places in which to Jive and
took office in 1993 he found himself implemented by the City and city locate a business in America (14).
faced with the same problems that employees were continually
affect most major cities including encouraged to find new ways to
decaying neighborhoods and crime. attract private investment through
Mayor Menino began his their initiatives.
administration by establishing a few To help minimize the
simple priorities that were to guide ineffective use of revitalization
every decision that is made by the funding by non-profits> property
City of Boston including: reviving owners and developers, Boston
neighborhoods and business districts. minimized its use of direct subsidies
ensuring that the public schools can and instead focused on making
give each student the education he matching grants and helping property
needs and deserves, creating more owners and businesses achieve
housing working people can afford, fmancial sustainability. Rather than
and building quality of life (16). subsidizing unprofitable entities, the
These priorities then City helped establish a network of
translated into specific action plans twenty -one neighborhood Main
with overall and intermediate goals. Street non-profit organizations that
To avoid the inevitable delays in provide technical assistance to small
implementation, reasonable deadlines businesses and make grants and
were set for each phase of a project loans for fa~ade improvements and
to be completed. For example, in the rehabilitation. Homeowners and
city )s three year housing plan one property owners seeking city
long term goal was defined to be to fmancial assistance are either offered
create 2100 units of city-assisted low interest loans or are required to
affordable housing. An intermediate raise matching funds through other
goal was set to have all 2100 units sources in most programs before they
identified by June 30,2001 and the are eligible to receive city funding.
long-term goal for completion was set Boston has also developed
for June 30, 2003. Further, a person several programs to find new uses for
within the department was '(dead assets)' including an
established as being accountable for aggressive marketing campaign for
meeting the goals (12). the private sale of city-owned
Housing and economic abandoned properties and a program
development programs designed by

16. Effective Uses of that moved in as a result of the
downto'Ml coming back. It was a win-
Public Policy win situation for all involved (3).
Making effective use of
For public policy to be an public policy requires that elected
effective tool in revitalization, it and city officials leave their offices
must be enacted within the context of and go out and meet the citizens,
a strategic market-based plan. The business owners, and real estate
goal of public policy as it relates to developers and learn about their
revitalization is to facilitate the needs. There is no greater expert
private sector in making investments about what the city needs to improve
into the community. 1bis requires than the people who live there and
that policy makers have an have invested interests there already.
understanding of what investors Sometimes there are barriers to
needs are, and how existing investment that public policy can
legislation can be modified and new relatively easily overcome such as
policies can be enacted to better modified building codes for
serve their needs. rehabilitation, zoning changes, or
Yet public policy can itself new sources of gap financing. Other
also be considered an investment. times far more collaborative
Mayor Vincent Cianci, while solutions will be needed beyond this,
speaking of the revitalization of as was the case in Providence. In any
Providence, Rhode Island described situation, engaging current and
the approach to policy he has used potential investors, and fmding ways
during his two and half decades in to work together towards mutual
office as a strategic investment of goals is where effective public policy
public funds. In the revitalization of begins.
Providence's downtown core,
officials had passed legislation
exempting artists living in the
downtown area and om.ing galleries
there from paying state sales and
income taxes (See Case Study:
Creating a Critical Mass of Private
Investment). On the surface such an
exemption might have seemed
arbitrary. However the move was
strategically calculated, and when
combined with the city's other
revitalization programs, became a
catalyst for the city's transformation.
For each dollar the city Jost in tax
revenues from the artists, the Mayor
calculated, they would get back
many times over from the resulting
boost in hotel taxes, restaurant taxes,
and other sales taxes from tourism,
conventions, and new businesses

17. Case Study: Creating Preservation Society, also started a the best places to live in America in
revolving loan fund from a less than a decade.
a Critical Mass combination of city and private funds
to help developers acquire and
This case study describes rehabilitate abandoned properties.
how public policy can be used to The result was the Downcity
create a cn"tical mass ofprivate Arts District. The artists began
investment in a disinvested urban moving into the newly renovated
neighborhood in a manner that is galleries and upper floor loft
able to attract other outside apartments. The critical mass was
investment. then established. Seeing that the area
was becoming a chic and artsy place
Once a thriving and wealthy to be, other residents, as well as
19th century seaport, Providence fell restaurants and other places of
into a state of decay in the post- business soon moved in.
World War II era like many other Providence also took great
U.S. cities. In the 1970's and 1980's care to ensure that the streetscaping
Providence's downtown was largely and public spaces in the city were of
abandoned. Then in the early 1990's, the highest quality. In 1995, a local
city leaders realized they had a great architect was hired to uncover the
opportunity. The city was home to city's two rivers that had been buried
one of the nation's fmest design beneath pavement for the last 50
schools: the Rhode Island School of years. They built small arching
Design, and culinary schools, bridges over the river and landscaped
Johnson & Wales University. Many walkways the length of the river
young people who were graduating throughout the downtown area. Just
from these schools chose to stay in five years later, dol!ltown
the Providence area. However, there Providence has risen to an 89%
was a lack of suitable housing for rental occupancy rate and property
them. values are still rising (21 ). In 2001,
Realizing that young people Money Magazine awarded
starting out, in particular artists, liked Providence with the title "Best Place
inner city living, the city realized it to Live on the East Coast." The city
had an opportunity to bring back its is currently implementing its
abandoned downtown. In 1996, aggressive marketing plan to compete
legislation was passed exempting for corporate relocations with nearby
artists living in the downtown area Boston, whose office rents are two to
from paying state income tax and three times higher. By targeting city
from paying sales tax on the sale of and state legislation towards
their artwork in downtown attracting existing demographic
galleries-quite a nice incentive to a profiles with an interest in the inner
young, starving artist! They also city, and creating an environment
offered a generous 30% state tax that was not only financially
credit on top of the 20% federal tax attractive to private investors but
credit to developers willing to also aesthetically pleasing and safe,
purchase existing buildings and Providence has been transformed
significantly rehabilitate them. A from an old industn"al town to one of
non-profit group, the Providence

18. Commercial Disctrict Over 1600 comrn unities
across America have Main Street
Revitalization Programs. Main Street has become
one of the most successful economic
Creating a successful development models in the nation,
commercial district, like any other leveraging on average $3 9.22 in new
aspect of revitalization, is dependent investment for every dollar of
on assembling a critical mass of comnnmity investment. (2) Most
investment. This includes both participants in the program are small
critical mass of other businesses as to-115, however, the program has
Street Four Point
r·.~ain
well as critical mass of customers. been used successfully as part of a
Commercial District
Creating strong commercial comprehensive plan for revitalization
Revitalization Strategy
districts is essential to the health of in larger cites. The first City to
any city. Yet in a time of increasing implement a city-wide Main Street
Organization: Bu:lc ,....;g
competition from big-box suburban Program was Boston. Boston Main
consensus and c.ooper at1on
retailers, small businesses face an Streets is a city-initiated program that
anx.1r1g put·lrc: and pr vate gr:)ups
enorrnous number of challenges just is implemented locally through non-
and rndi'v'iclua:s. Jnd idt:nrifylnp
to survive. Having a doVntOTI profit organizations in each of the
sources of fundmg f:x
commercial district that is successful city's twenty-one neighborhoods.
re·/it;:;~>izatlon activ·::ies
requires that business owners have a The program began in 1995
clear plan for how to compete in the with a citywide competition in which
Design: Ennancmg the d1stnct"s
local market and that their businesses four districts were selected to receive
physical appeat·anc:e thrcugr--;
can become sustainable over a short funding for the program. Each district
bLJildin:;; tehabilitat;on. cornpatt1ie
period of time without subsidiest. received technical assistance and
ne•V construc:ion, ;::;ublic:
Forming the critical mass intensive training from both the City
imprO:ernents. and design
needed to sustain a commercial of Boston Main Streets Office and
mana·;Jetrlen: systerr1s
district often requires collaboration the National Main Street Center in the
among small business o-1lers and four-point economic development
Promotion: r,/arketin;] he
other public and private groups in the strategy and in non-profit
commercia' distl1c:t throu~ni events
city. One model for commercial organizational management. Each
and advertismg to attact
district revitalization that has yielded Main Street organization then hired a
custot:1ers, potenta: rn-...:estcrs
great results is the National Trust for full time Executive Director, raised
ne,.-,,. businesses residents. and
Historic Preservation's Main Street matching funds, incorporated their
v1srtors
Program. organization and implemented its
Main Street Programs all use program according to an annual work
Economic Restructuring:
the same four-point strategy for plan. Districts selected in the
Strengt'lenin~ the a~str·icts
commercial district revitalization that competition received six years worth
economic base anc cr·eatng neN
includes forming collaborative of city funding to help start their
opportunities tnrough CcHeful
partnerships among the public and organizations. The program expanded
nalysrs and aprxcpr1ate mixed-
private sectors, expanding the over the next five years to include
use de.:e·rop;nent
districts existing economic base by twenty-one Boston neighborhoods.
helping current businesses become Programs are managed locally in
stronger and recruiting new individual neighborhoods but all
businesses, improving the physical twenty-one programs are overseen
appearance of the commercial by the city's Main Streets Office,
district, and promoting the district to which facilitates the exchange of
current residents, investors, and information and ideas among the
visitors. organizations.

19. The program focuses on Successful commercial revitalization
helping small, usually sole proprietor is not a result of big ticket public
or family owned businesses by projects, but instead a result of
making grants and loans for starting minimizing city investment to the
up, building restoration, and fayade level of gap financing, improving
improvements. They also sponsor overall aesthetics and infrastructure
seminars on starting and managing and creating an environment fuat is
small businesses, as well as a number favorable for private entreprenems to
of district promotional events such as create and expand their businesses.
festivals and historical tours. The
program is funded largely through
city money and federal grants, but
includes a Corporate Buddies
program, to encourage large
corporations in Boston to become
fmancially committed and involved
with improving the quality oflife in
their city. Corporate Buddies are
partnered with a Main Street
neighborhood organization and
commit $10,000 a year for a four-year
period towards that organization' s
operating expenses as well as
providing technical assistance and
resources such as office equipment
(1).
During the program's first
five years of existence from 1995-
2000,356 businesses were created or
expanded, 2555 new jobs were
directly created, 203 storefronts were
revitalized, and 349 businesses
received technical or design
assistance. The truly amazing part
though, is that the City only spent
$7.5 Million of public money and an
additional $1.7 Million of privately
raised money to make it happen (2).
One of the most common
myths about revitalization is that
increased economic impact is directly
proportional to the amount spent in
revitalization projects. Yet as Boston,
and the more than 1600 communities
nationwide that have experienced
successful commercial district
revitalization have demonstrated, it is
the opposite case that is true. Boston Main Streets (Courtesy of Boston North End)

20. Housing & Like all good investment HomeCenter, a one-stop organization
ftmd, revolving funds must have for homeowners and home buyers
Revitalization strategic investment criteria used offering courses and information on
when evaluating potential projects. financing and how to purchase a
Market Rate Housing Many revolving funds invest only in home in a Boston neighborhood.
the rehabilitation of existing Market rate housing
buildings. Further. they usually limit development, whether for
Similar to successful the geographic area they will invest rehabilitation or new construction,
commercial revitalization, for a in at one time to one particular needs to be based in local market
market-rate housing plan to be neighborhood of a city to help researc~ and cities must learn to
successful, cities must learn to avoid establish a critical mass of resist the temptation to directly
the tendency to directly subsidize investment. and increase the subsidize housing developers.
developers and instead work on desirability of investment there for Instead, financing should be limited
fmding new ways to stimulate the other private investors. Further. they to gap fmancing after all other
local market In many cases, limit their investment to a certain potential funding sources have been
additional incentives have been percentage of total funding sources exhausted, and even then, the city
needed either to attract interest in to maintain a minority stake in the should be a very small stakeholder in
investing in the city or in making project. any given project. If local public
projects financially feasible. In such Investment decisions are funds are going to be allocated to
cases~ cities have successfully made by a committee of usually 6~10 housing developers, the most
assisted by providing gap financing. people including neighborhood successful method has been to
Gap ftnancing is a fmancing of last residents, and local professionals channel the money through a fund
resort though, and developers must with expertise in real estate, that combines funding from other
provide proof that they have architecture, law, and banking/ privately raised sources. Allocations
exhausted additional fundraising fmance. The organization employees of funding should be made on the
efforts through lending institutions, one executive director, and basis of a set of strategic criteria
equity investors, federal grant and depending on the size of the fund, a which seek to raise the attractiveness
loan sources and tax credits. small staff. Cities as diverse as of an area of a city to private
Perhaps the most successful Providence, Pittsburgh and investors to such a level that ftnther
and widely used method for Charleston have successfully used public investment will no longer be
providing gap fmancing is the revolving funds as a part of a needed.
revolving fund. A revolving fund is a comprehensive strategic plan to
fund nonnally held by a non-profit successfully revitalize entire
corporation that may combine several neighborhoods.
revenue sources including privately Numerous other successful
raised funds, corporate gifts, and city programs have been established to
appropriations. The fund may be help current homeowners improve
used as equity or as low cost debt for their property and new homeowners
a project that othetwise would be to fmd a suitable home within the
fmancially infeasible. Some city and fmance it. The City of
revolving funds also purchase Boston Homeworks Program, for
existing buildings, contract out the example, offers low cost loans and
rehabilitation~ and then sell the grants up to one third of the total cost
building to a private owner. In all for homeowners to make exterior
instances, the proftt earned from the improvements to their home and
investment is revolved back into the property that will have a positive
fund and is reinvested into other visible impact on the neighborhood.
projects. The City also operates Boston

21. Affordable Housing, housing stock into below-market rate rehabilitation becomes a more viable
Gentrification & housing provides a substantial means for affordable housing.
Displacement challenge to developers. Even with In the mean time, several
gap fmancing sources and other solutions have been developed at the
Affordable housing is a federal subsidies such as the Low local level to successfully
critical part of any city's revitalization Income Housing Tax Credit, many incorporate affordable housing into
plan. In the past, affordable housing other factors can outweigh the rapidly appreciating neighborhoods.
has been ignored during revitalization rehabilitation of existing buildings for In many places, the need for
planning and was left to be the large scale new construction. The subsidized affordable housing is a
problem of the federal government overall cost of construction of units result of zoning restrictions that
and local slumlords outside the is often greater in rehabilitation prohibit market-driven affordable
boundary of interest. What often projects than in new construction living arrangements (1 0). Under the
resulted was cities with areas of high where the construction can be asslUllption that permitting
concentrations of poverty, standardized. Developers that seek affordable living arrangements
interspersed with highly gentrified rehabilitation projects for affordable decreases neighboring property
areas. housing also report difficulty values, many cities have outlawed
To avoid future blight and obtaining the Historic Tax Credit such affordable arrangements as
disinvestment in neighborhoods and because of the failure of their project boarding houses, single room
future flight from areas being targeted
to meet the "economic substance" occupancies, subdividing single
clause for the credit in the IRS code family homes into apartments and
for revitalization, low income housing
(13). other owner-occupied rental
needs to be acconnted for from the
Further, affordable housing arrangements like basement and
beginning stages of the revitalization
process. There are two general rules projects that involve rehabilitating garage apartments. However, such
for making affordable housing a existing structures are more difficult arrangements, in addition to
successful part of the city's to attain critical economics of scale. decreasing the need for housing
Rehab projects are usually much subsidies, provide numerous other
revitalization process. First, it must
smaller in scale, are less predictable, benefits including decreasing the
be deconcentrated, and dispersed
have more stakeholders, and require concentration of low-income
among middle and upper income
more administration and property housing, allowing people of limited
market rate housing. Second, it needs
management, all of which adds to the means to live in clean, safe
to be similar in appearance to nearby
middle income housing to decrease costs of the developer (13). A recent neighborhoods as well as providing
study published jointly by the income to homeowners who
the stigmatism and resulting
disinvestment that is created from National Trust for Historic otherwise may not be able to afford
Preservation and the U.S. the mortgage payments on their
low income housing (6).
Department of Housing and Urban horne.
Affordable housing is also an
Development titled Barriers to the Successful city or housing
important tool for helping current
Rehabilitation of Affordable authority projects have used a similar
residents prevent nnwanted
Housing discusses these challenges strategy of reducing the
displacement in neighborhoods
in further detail and proposes concentration of affordable housing
prone to gentrification and massive
changes in policy at the federal level units. Stanley Lowe, Director of the
rent escalations. When properly
to encourage the rehabilitation of nationally respected Pittsburgh
structured, affordable housing
affordable housing and reduce Housing Authority described the key
options can also be used to help
unwanted displacement during the to successful affordable housing as
people of modest means become
neighborhood revitalization process. being individual choice. The poor
homeowners and build wealth.
Several key changes will be have the option in living in
Developing affordable
necessary in federal housing policy practically any neighborhood of
housing in blighted neighborhoods
and in the tax code before Pittsburgh that they like. However,
has proven problematic in many
places though. Converting existing the number of units in any given area

22. is determined by the housing an inspiration to other civic
authority (14). Pittsburgh's leaders across the country,
Housing Authority also and its revitalization models
seeks opportunities to create developed in the 1950's
value in neighborhoods became the basis for many
throughout the city by more recent plans
redeveloping "white Charleston had its share
elephants" into affordable of problems though. The
housing units. (7) city, like so many others, has
Revolving funds have suffered from generations of
also proven to be useful racism and austere social
tools in providing affordable class segregation. During the
housing in middle income 1950's revitalization, the
neighborhoods. By city's poor, large]y black
leveraging funds from population, was uprooted from their
private fundraising and city homes in what would become multi-
appropriations, as well as negotiating million dollar town homes and moved
with banks, and attracting some into housing projects on the outskirts
volunteer labor, non-profits have of the historic districts and into other
played a powerful role in significantly highly distressed once middle class
reducing the purchase price of historic neighborhoods . What
rehabilitated structures and reducing resulted was a city ofvery highly
unwanted displacements in rapidly priced homes next to disinvested
gentrifying neighborhoods (See Case poor communities, and almost no
Study: Balancing Revitalization with middle class housing. Community
Gentrification and Displacement). leaders wanted to fmd a way to
Above all else, for affordable provide opportunities for middle
housing to be successful it must be income residents to live in
included it in the early planning Charleston, while at the same time
stages. If affordable housing is not improving the condition for the city's
addressed as a priority from the current lower income residents.
beginning, after the local housing
The result was a new use
market begins to take off, it can
become considerably more of an old project caned The
challenging to make such projects Neighborhood Impact Initiative.
feasible. A local non-profit organization,
Historic Charleston Fotmdatio~
Case Study: Balancing had a then twenty-year-old
Revitalization revolving fimd for the purchasing
While the rest of America was of distressed buildings. They used
This case study describes how
busy razing their neighborhoods in
revolving funds can be used to the ftmd to acquire a building,
Urban Renewal projects during the
encourage private reinvestment in
1950's, Charleston was fighting to contract out the rehabilitation,
low disinvested neighborhoods, and would then sell the building in
save theirs. What resulted in the
while preventing displacement and
helping low-income residents
decades that followed was one of the the ever~appreciatingCharleston
most desirable ten blocks of real housing market and reinvest the
become homeowners and build
estate in America. Charleston became
wealth. profit back into their fund. (26)