This whole discussion begs the question: HOW DO WE DECIDE WHAT ATTRACTIONS OR ANCHORS TO SUBSIDIZE? Any chance I could be assigned the responsibility? No?

Well, as far as I can see, the Kelly administration is focusing on the key question of how and when to subsidize development. Given the economic climate, that is more important now then ever. Stadia aside, a public discussion is in order on just this topic.

Consider. Our previous administration seemed eager to subsidize individual retailers. For example, to make the Lawson project work, our former Mayor found himself subsidizing Fhima's, Kinkaid's, and Rivertown Market (which was to replace Applebaum's, which the Lawson project displaced). Politically, Lawson was a pressing imperative. But at the same time, the Lowry condo conversion sat floundering for years, literally across the street from Lawson. Last summer, the city provided financial assistance to get the Lowry project going; instead of subsidizing the retailers, we could have done the same years ago. When we get new housing online, we're expanding the actual market for retail. But when need to find a short-term success and therefore fill retail slots quickly, you simply give millions directly to the stores. In the long term, subsidizing individual stores is usually not the ideal public policy.

As a corollary, the City's and Capitol City Partnership's study of Wabasha Street retail in 1999 concluded that one of the most important things in expanding the market for retail in that corridor was to build more housing near Wabasha Street. One of the study's most solid conclusions. But almost all of the recent construction has been several blocks away in Lowertown. We want retail in both places, and thus, in the coming years, we should prioritize developing more housing near BOTH locations.

To refine my last contribution to this forum, a full grocery store opening downtown seems to be in the offing soon, and seems like it may happen without subsidy. Excellent! I'm optimistic that other pieces will begin to fall in place on their own too. That said, I don't want to leave the impression that everything will happen without some City planning or even financial assistance. I do think it may make sense to seek after (and eventually subsidize if absolutely necessary) a couple key anchors...

The City is presently re-evaluating how and when to subsidize. Here are a few observations, which I think complement the ongoing discussions.

A) GET THE BIGGEST BANG FOR THE BUCK. Do we heavily subsidize a single nightspot, or do we subsidize a small movie theater that will spin off or help several nightspots? Do we provide small subsidies to new housing, that will create demand for new retail, or do we subsidize the new retail directly? Weigh costs and benefits carefully.

B) GENERALLY INVEST IN ANCHORS OR HOUSING, NOT INDIVIDUAL STORES. Subsidize Marshall Fields? Maybe, if they'd otherwise flee. Subsidize yet another coffee shop? Probably not.

C) CONSULT AND INVOLVE THE FULL DOWNTOWN COMMUNITY! Its understandably easy to listen to just a few voices downtown, but there are plenty of people who aren't as often consulted by leaders, and have just as much insight. And I don't just mean you should consult me, but I won't complain if I'm asked...

As an example, I'll bring it up one last time..should the City have spent $1 million in subsidies and loans for a small downtown grocery store that has no parking, isn't open evenings, and was the last nail in the coffin of a community co-op that was open at night? Flatly no. As a result of that bad decision, the store's owners have come back for more money within just a few years! Would community input have produced a better result? You betcha! I just ask that we learn from our past errors.

A cost-effective submarine is certainly worth considering as an amenity, and I appreciate the creativity. But in addition, I think we need to keep coming back to the priorities established by the growing downtown population. A theme that will be continued in my next post.

Bob Spaulding
Downtown

PS Any other thoughts on how to prioritize development?

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