Transforming Legacy Cities for the Next Economy

TRANSFO

RMING C

ITIE

S

FOR T

HE NEXT

ECONOMY:

WHERE W

E ARE A

ND CRIT

ICAL

NEXT STR

ATEG

IES

L AV E A B R A C H M A N

J U LY 4 2 0 1 4

L A FA B R I Q U E D E L A C I T E - I N T E R N AT I O N A L

S E M I N A R

CA

SE

ST

UD

I ES

FR

OM

OH

I O’ S

LE

GA

CY

CI T

I ES

ABOUT GREATER OHIO POLICY CENTER

A non-partisan NGO based in Columbus, Ohio that champions revitalization and sustainable redevelopment in Ohio through policy and practice:

• Revitalize Ohio’s urban cores and metropolitan regions

• Achieve sustainable land reuse and economic growth

GREATER OHIO’S RECENT REPORTS

SETTIN

G THE S

TAGE

LE

GA

CY

CI T

I ES

& P

AR

AD

I GM

S F

OR

TR

AN

SF

OR

MA

TI O

N

LEGACY CITIES

Formerly industrial cities that have experienced significant population and/or job loss since 1960

LEGACY CITIES UPDATE: MIXED RETURNS

18 cities with population of at least 50,000 in 2010 & loss of at least 20% from peak

City

Akron

, OH

Baltim

ore,

MD

Birmin

gham

AL

Buffal

o, N

Y

Camde

n NJ

Canto

n OH

Cincinn

ati,

OH

Cleve

land

, OH

Dayto

n, O

H

Detro

it, M

I

Flint

, MI

Milwau

kee,

WI

Newar

k, N

J

Phila

delp

hia,

PA

Pitts

burg

h, P

A

St. L

ouis,

MO

Syra

cuse

NY

Youn

gsto

wn, O

H0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Population Change 2000-2010

20002010

INDICATORS OF RELATIVE STRENGTH

Indicators used to rank relative strength of the 18 selected legacy cities:

• Unemployment rate• Percent with BA/BS degree or higher• Crime rate• Percent foreign born population• Population loss from peak to 2010• Population change 2000-2010• Percent of population in poverty• Household dependency ratio• Median house sales price

• Change in median house price

2006-2010• Mortgage ratio• Housing vacancy rate• Grad students as percent of city

population• Total research funding• Change in number of jobs 2002-

2009

Detr

oit

Cle

vela

nd

Bu

ffalo

Bir

min

gh

am

Pit

tsb

urg

h

St.

Lou

is

Ph

ilad

elp

hia

Balt

imore

-50

-40

-30

-20

-10

0

10

20

TOTAL

CITIES FOLLOW DIFFERENT TRAJECTORIES

Some legacy cities showing signs of a turnaround, including Philadelphia, Pittsburgh, Baltimore, and Syracuse. (2000-10)

• Can we identify the factors that have led to greater regeneration in some cities?

• Can we apply lessons of success (or failure) elsewhere?

• What can cities do in an age of limited state and federal support?

OPTIMIZING ASSETS IN THREE AREAS TO CREATE A COMPETITIVE ADVANTAGE

Downtown Mansfield, Mansfield Ohiofrom http://www.hivelocitymedia.com/cities/Mansfield/

Physical Assets

Institutional and Economic Assets

Leadership and Human Capital Assets

MAKING P

ROGRESS…

SO

ME

OF T

HE

RI G

HT

ST

RA

TE

GI E

S

I MP

L EM

EN

TE

D I

N L

EG

AC

Y C

I TI E

S

LEVERAGING ASSETS: STRATEGIES THAT ARE MAKING AN IMPACT

• Target resources in viable neighborhoods

• Focus on rebuilding the downtown

• Repurpose vacant land for new uses

• Leverage economic assets to build competitive advantage

VACANCY RATES STILL INCREASING

2007 20129.0%

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

13.0%

13.5%

Akron, OH

Cincinnati, OH--KY--IN

Cleveland, OH

Dayton, OH

Detroit, MI

Toledo, OH--MI

Youngstown, OH--PA

Housing Vacancy Rates in Legacy Cities

ENCOURAGING STATE POLICIES

• Brownfields Cleanup Fund (grants/loans)

• Land banks• Expedited foreclosure• New Market Tax Credits/State

historic tax credits

TARGET RESOURCES IN VIABLE NEIGHBORHOODS

Maximizes the impact of available scarce resources.

Over-the-RhineCincinnati, Ohio

Slavic VillageCleveland, Ohio

Green and Gold Asset and Place-Based Investment StrategyDayton, Ohio

TARGET RESOURCES IN VIABLE NEIGHBORHOODS

• Cincinnati Center City Development Corporation (3CDC), a non-profit that is leading revitalization of the area

• Acquiring and rehabilitating abandoned properties within 110 square blocks of Over-the-Rhine

• Over 90% of the rehabilitated residential and commercial spaces are now occupied. Over-the-Rhine

Cincinnati, Ohio

TARGET RESOURCES IN VIABLE NEIGHBORHOODS

TARGET RESOURCES IN VIABLE NEIGHBORHOODS

Slavic Village Recovery Model – a holistic redevelopment approach

1. Select properties for demolition and rehab in target areas through a thorough property analysis.

2. Complete a critical mass of renovations and demolitions, one block at a time, to shift the market on that block.

3. The sale price of the initial homes reached the target amount of approximately $60,000, received an appraisal value above the sale price, and sold quickly.

FOCUS ON REBUILDING THE DOWNTOWN

Washington Avenue

Downtown St Louis MO

Many downtowns have success stories…

FOCUS ON REBUILDING THE DOWNTOWNMany cities are seeing downtown population growth

Baltimore Cleveland St.Louis Cincinnati0

5000

10000

15000

20000

25000

20002010

POPULATION CHANGE IN ST. LOUIS 2000-2010

Downtown

St. Louis University

Barnes Jewish Hospital

NORTH

SOUTH

CENTRAL

FOCUS ON REBUILDING THE DOWNTOWNMany cities are seeing growth around major

universities and medical centers

Historic Building in the West End, Cincinnati, OhioPhoto from http://www.hamiltoncountylandbank.org/portfolio-items/1201-linn/Hamilton County Land Reutilization Corporation currently accepting redevelopment proposals for the space.

RE-PURPOSE VACANT LAND FOR NEW USES

- Alternative/green uses

- Brownfields to productive reuses

- Landbanks hold properties and clear delinquent taxes, liens

LEVERAGE ASSETS: ANCHOR INSTITUTIONS DRIVE MUCH LEGACY CITY REGENERATION

Wayne State University Detroit

University Circle Inc. Cleveland

LEVERAGE ASSETS TO BUILD COMPETITIVE ADVANTAGE

University Circle

Cleveland, Ohio Cincinnati, Ohio Dayton, Ohio

Uptown Consortium

Dayton Tech Town

University Circle in Cleveland, Ohio:

• Anchor district in Cleveland, Ohio with over 26 anchor institutions

• $1.1 billion investment in the neighborhood leading to a 30:1 return

• 5,000 new full-time jobs since 2005 (15.5% increase). An additional 8.6% increase expected by 2015.

• $14 billion in overall annual economic output, according to University Circle Inc.

• 11% population growth in University Circle while there was a 17% decline in overall city population

Anchor District = vibrant city center, strong anchor institutions, multi-anchored district, community service corporations

LEVERAGING ASSETS TO BUILD COMPETITIVE ADVANTAGE

Uptown Consortium in Cincinnati, Ohio

• 6 anchor institutions

• Established in 2004 and in 10 years has:

• leveraged +$400 million in private development• Induced +$1 billion in development• Generated 3,300 jobs• Created and retained ~400,000 sq.

feet of office and retail space• Developed 500+ residential units

• 10% of Consortium members’ workforces live in Uptown

LEVERAGING ASSETS TO BUILD COMPETITIVE ADVANTAGE

CITIES ARE EXPLORING OTHER ECONOMIC ENGINES

ENTERTAINMENT AND TOURISM

TECHNOLOGY

What potential do thesesectors have to generatejob and business growthin legacy cities?

WHAT

’S C

HANGED?

WHAT

’S N

EXT?

WHILE THERE HAS BEEN OVERALL POPULATION LOSS IN OHIO’S LEGACY CITIES…

LEGACY CITY POP GROWTH IS LARGELY DRIVEN BY THE MILLENNIAL GENERATION

Baltimore Philadelphia Pittsburgh St. Louis0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

City share of state population

City share of 25-34 year old college graduates

City share of 2000-2011 INCREASE in 25-34 year old college graduates

REMAININ

G CHALL

ENGES

OPPORTUNITY TO LEVERAGE & ATTRACT THIS POPULATION

• Some legacy cities are attracting increasing numbers of Millennials

• Ohio’s cities will need to do more to attract this population in order to compete

• What are the barriers? What still needs to be done?

CRITICAL CHALLENGES

Equity

Solving the regionalism conundrum

• Rising legacy costs, declining tax base

• Aging infrastructure

LEGACY CITIES HAVE AN INCOME/POVERTY GAP

Cam

den

Cle

vela

nd

Detr

oit

Gary

San F

ranci

sco

Seatt

le

Port

land

Bost

on

0

10

20

30

40

50

60

70

80

% below poverty level

% of population below poverty levelcompared to % ofpopulation in households earning2X poverty level

RACIAL DISPARITIES IN INCOME ARE GROWING

Baltimore Buffalo Cincinnati Cleveland Pittsburgh St. Louis0

20

40

60

80

100

120White medianBlack median 2000

Median income Of African-AmericanHouseholds as a Percentage of white Non-Latino median

WHY REGIONS MATTER FOR ECONOMIC REGROWTH

• Cities and their regions are economically interdependent

• Collaborations and new governance structures can increase fiscal efficiency and economic attraction.

TOO MUCH LOCAL GOVERNMENT ADDS TO RESOURCE CONSTRAINTS86% of states have fewer governments per 100 square miles than Ohio

Source: Greater Ohio Policy Center, Census of Governments; Government Organization, 2007

16 14 12 11 10 8 6 5 4 3 2 1 <00

2

4

6

8

10

12

14

Number of Governments per 100 miles

Nu

mb

er

of

Sta

tes

Ohio

Less than Ohio (43)More than Ohio (6)

Cleveland

Akron

Canton

Youngstown

Lorain

Northeast OHIO: five legacy citiesembedded in a single region ofover 5,000 mi2

NEED FOR GREATER REGIONALISM

Urban centers are embedded in larger regions

WHERE D

O WE G

O

FROM H

ERE?

CRITICAL NEXT STRATEGIES

• Use economic growth to increase community and resident well-being overcome forces leading to increased economic and

racial inequalities?

• Build stronger local governance and partnerships create multifaceted public/private partnerships

capable of driving sustained regeneration?

• Increase the ties between cities and their regions build effective regional linkages to foster stronger

economic growth throughout the region?

CRITICAL NEXT STRATEGIES

• Make change happen through strategic incrementalism• taking incremental steps grounded in a coherent

vision of the future

• Consider a special paradigm for smaller/medium-sized cities:• Distinguish between those that are too big to fail and

others

QUESTIONS?

Lavea Brachman,Executive Director, Greater Ohio Policy Centerlbrachman@greaterohio.org

Conta

ct u

s at

Gre

ater

Ohio

Pol

icy

Cente

r