December 1995....TABLE of CONTENTS

Single-bullet theory losing adherents

The real estate industry has an enormous effect on public policy regarding America’s downtowns, especially as a result of urban renewal initiatives it helped to craft in the 1940s and 1950s.

Industry interests are advanced by organizations such as the Urban Land Institute and the National Council for Urban Economic Development (NCUED).

It is news then, when the NCUED, which sponsors conferences on gambling and ‘entertainment malls’ with gambling and mall companies, publishes an article refuting historical industry conventions. Such an article, from the NCUED’s Economic Development Commentary, Summer 1995, is reprinted below.

Demolition and mega-projects get re-evaluated

By Dolores P. Palma

Since the first suburban shopping malls opened their doors, communities all across the country have been concerned with revitalizing their downtowns. Today, a large body of knowledge has been developed–the “do’s and dont’s of the trade”–that can be used to guide local downtown revitalization efforts.
This body of knowledge includes myths about downtown revitalization as well as “secrets of success.” The eight most common downtown revitalization myths are discussed below

Myth # 1: If We Build It, They Will Come

This has become known as the “The Field of Dreams Approach” to downtown enhancement. It centers on the belief that a community only needs to undertake physical improvements for customers and investors to flock to Downtown.

Over the last 20 to 30 years, many communities have proven this to be a myth. They have done so by implementing massive physical improvement projects that often include new sidewalks, landscaping, street trees, planters, benches, facade improvements, etc. Thinking that their work done, community leaders then sat back and waited for customers and investors to return. Unfortunately, these communities learned that physical improvements, made on a grand scale and made in isolation, do not result in renewed vitality.

Myth # 2: If We Demolish It, They Will Come

This is the flip side of Myth #1 and is known as the "Urban Renewal Approach" to downtown revitalization. This myth holds that, if old buildings are torn down and land is cleared, developers will flock to downtown. And, unfortunately, there are communities all across the country that still have vacant land which was cleared in the 1960s and 1970s as part of this revitalization approach.
Since then, it has been learned that clearance does not attract developers to a downtown whose market is weak. Communities also have learned that structurally sound old buildings–no matter how run-down they might look at the time–can often become a tremendous draw if they are renovated and their architectural character is preserved. Older restored structures constitute some of the most valuable commercial real estate today.

Myth # 3: If We Complete One Major Project, They Will Come

This is the “Silver Bullet Approach” to Downtown revitalization. It holds that if a community implements one key, major project then “everything else will take care of itself.” Examples of the Silver Bullet Approach are convention centers, festival marketplaces, parking structures, or pedestrian malls-in isolation Unfortunately, the communities building these have learned the hard way that there is no silver bullet. Instead, successful downtown revitalization requires a multi-faceted effort that addresses all key issues.

Myth # 4: If We Can’t get a Department Store to Come Back Downtown, Downtown Will Never Be Healthy Again

This is known as the “Traditional Anchor Approach” to downtown revitalization. It is true that–except for tremendously healthy downtowns–the chances of attracting a major, national department store to downtown are very slim. However, this fact does not indicate that a downtown is no longer healthy. Instead, the most successful Downtowns are those that have redefined the concept of “downtown anchors.”.

All across the country, downtowns are embracing new anchors These include cultural facilities, government complexes, entertainment facilities, tourist draws, housing units, professional office buildings, and specialty retail shops. By promoting and leveraging these anchors, downtowns can experience renewed vitality, without a traditional department store anchor.

Myth # 5: We Can’t Get a Department Store to Locate Downtown, So Downtown Can No Longer Support Any Kind of Retail Trade

This has become known as the “Big Retail or No Retail Approach.” Again, it is true that the chance of recruiting a major department store to most downtowns is slim. It is also true that few downtowns today can be considered to be primarily retail centers. However, these truths alone do not prove that a downtown cannot support a degree of retail trade.

Many downtown professionals would argue that, by definition, a healthy downtown is one that contains some degree of retail activity. This belief holds that it is retail trade that brings pedestrians to downtown's sidewalks and, therefore, gives downtown a look of activity and health. Therefore, no matter how healthy a downtown's economy actually is, without some degree of retail trade a downtown will look dead.

Myth # 6: Competition Is Bad for Business

This is the “Head-In-The-Sand Approach.” The commercial districts–old and new–that are most successful today are those in which similar and compatible businesses are located side by side.

Rather than providing dangerous competition, the clustering of businesses expands the market from which the cluster–and each of the businesses in it–can hope to draw. This effect occurs because a cluster is more appealing to a customer–in terms of convenience and variety–than is a single, stand-alone business.

Myth # 7: Downtown Retail Businesses Must Keep Uniform Business Hours

This has become known as the “Let’s Pretend We're a Mall Approach” to downtown revitalization. Given the independent nature of business owners, and the large number of business owners in any downtown, this approach has failed dismally.

Recognizing that uniform business hours are difficult to achieve, and possibly not advantageous to the district's retailers as a whole, the most successful downtown enhancement programs are promoting “market-driven business hours.” Retail businesses keep hours that best meet the needs of their targeted customers. By doing this, and by coordinating their hours with each other, these businesses are able to accommodate and share customers.

Myth # 8: If We Had More Parking, They Would Come

This is the “Let’s Find a Scapegoat Approach.” This myth holds that all of downtown's ills stem from a lack of parking. The claim is that customers have left downtown for malls because malls offer seas of parking which is often (but not always) free. Therefore, the reasoning goes, “we need more parking”–this change will make customers return downtown.

Unfortunately, cities that have gone to great expense in creating downtown parking,without making other needed improvements, have learned the fallacy of this myth. Their new parking facilities remain as empty as their downtown stores.

In fact, in the vast majority of downtowns where there is a parking problem, it is one of parking management rather than one of parking supply. This means that the number of parking spaces available is adequate. However, customers are having difficulty finding a parking spot because downtown employees and business owners are parking in spaces nearest to businesses and public parking facilities are often not clearly marked with signs.

This problem can be resolved through better management of the parking supply – and often does not warrant creating additional parking spaces.