In 2005, the Brookings Institute published a study on downtown revitalization efforts throughout the nation. If you have the time, check out the full report here. The report mentions a number of things which are directly applicable to the market here in Alexandria, and it also debunks many misconceptions about downtown revitalization efforts– who pays for these projects, who benefits from these projects, and why this is a complicated and challenging issue.
One of the most oft-repeated misconceptions about downtown revitalization efforts is that they are top-heavy with publicly-financed projects. Of course, there are a handful of things that a city can do to improve its downtown, primarily regarding infrastructure and traffic, but the majority of the work done by a city is conceptual and organizational.
The study found that most of the funding behind downtown revitalization is spurred by private industry: “In fact, successful downtown turnarounds have shown that for every $1 of public investment, there will be $10 to $15 of private money. The bulk of the public investment must be made in the early years, however, in order to set the stage for private development.” Believe it or not, cities spend much more on suburban developments, in part, because their shelf lives are much shorter. Still, the dynamic is different; suburban developments, the report states, peak in value after about ten years; developers then move out– and so does value. Downtowns, however, retain value significantly longer because of their locations and because of their accessibility to resources.
Fortunately for Alexandria, we have already invested in most of those important, “early” projects; traffic flow and parking continue to be a problem, but I believe a viable solution to this is forthcoming. The key infrastructure is already there. Most of the work that remains to be done is conceptual and organizational. No doubt, the biggest task ahead for downtown revitalizers is convincing private industry that this is a worthy cause.
The conversation that is occurring right now in Alexandria has occurred in almost every city that has decided to revitalize their downtowns. It’s not unusual. The most common criticism is that downtown has been “dead” for nearly thirty years, so why is there any reason to believe that it will rebound now? And on a related note, why should we invest any energy toward this effort?
Well, put simply, the report concludes that healthy downtowns can become an economic engine that drives commerce, gives people an alternative, walkable community (an untapped and unrealized market in Alexandria), and that downtowns increase value and quality of life. Despite what has been said, a revitalized downtown doesn’t just benefit a small segment of the population; research clearly shows that revitalized downtowns are utilized (and even lived in) by people all across the demographic spectrum. Certainly, “early adopters” tend to be “young, urban pioneers” (not my term), but over time, others move in, and value increases. Indeed, rental property in revitalized downtowns tend to “float to the top of the market.”
Another criticism leveled against downtown revitalization is that “it takes too long.” The Brookings report showed that a successful revitalization can take as long as twenty years, during which time citizens may become frustrated. However, if you follow the steps and recognize what has already been done here in Alexandria, you’ll likely conclude that Alexandria has probably already committed over ten years to this effort. In other words, most of the work has already been done and what remains, again, is conceptual and organizational– changing zoning codes, implementing a marketing study and plan, and consolidating efforts, among other things.
These are the twelve steps identified by the Brookings Institute. Not every downtown is the same, of course, and Alexandria has some unique demands.
STEP 1 : Capture the Vision
STEP 2: Develop a Strategic Plan
STEP 3: Forge a Healthy Private/Public Partnership
STEP 4: Make the Right Thing Easy
STEP 5: Establish Business Improvement Districts and Other Non-Profits
STEP 6: Create a Catalytic Development Company
STEP 7: Create an Urban Entertainment District
STEP 8: Develop a Rental Housing Market
STEP 9: Pioneer an Affordability Strategy
STEP 10: Focus on For-Sale Housing
STEP 11: Develop a Local-Serving Retail Strategy
STEP 12: Re-create a Strong Office Market
Let us also consider something else, perhaps an unpopular truth to some, but one that bears repeating: Despite the fact that Alexandria has engaged in a conversation about downtown revitalization for the past ten years, most of our collective efforts and more of our tax dollars have been spent in expanding infrastructure.
As previously stated, sprawl developments cost the city more, both in the short and the long term, because sprawl keeps sprawling. Much has been said about the explosion of the 28 West corridor. Rod Noles even predicted this year that the land out on 28 West would be the most expensive land in all of Alexandria. I don’t doubt it. And this is great for some. There is definitely a market out there.
But we should ask: What created this market? What made it valuable? Is the land itself inherently that valuable? Or is the value due, in part, to the investments that taxpayers have paid for– the Links Golf Course, the Johnny Downs Sports Complex, the roads and infrastructure? Certainly, you’d to admit that the city’s willingness to spend millions of dollars on infrastructure and facilities on land that epitomizes sprawl has contributed to the high property value. One can also argue that the high cost of land and homes on this corridor are prohibitively expensive and therefore inaccessible to most Alexandrians.
When you consider inclusive growth for the city in its entireity, you’re not necessarily taking away from this area; the movement of people into this corridor will necessitate other improvements and added infrastructure in order to ensure that traffic flows more efficiently. But you must change perogatives.
Downtown isn’t the only area in need of attention, but it’s definitely important. And if it is revitalized correctly, it will create a destination for everyone in town, something that we can all be proud of, a place that can bring people together and attract visitors, conventions, concerts, and much more.
There is one other point that needs to be made: Downtown revitalization isn’t about the city getting into the real estate business. It’s primarily about shifting perspectives, changing codes, and enforcing those codes. If developers want to take advantage of incentives to help them renovate property, then, I believe, they should look at the federal renewal zone incentives, not at the City of Alexandria.
CenLamar 
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