Comeback Cities:Comeback Cities:

A Blueprint for Urban A Blueprint for Urban Neighborhood RevivalNeighborhood Revival

Acknowledgements:Acknowledgements:

AuthorsAuthors• Paul S. GroganPaul S. Grogan• Tony ProscioTony Proscio

Presentation:Presentation:• Brian HatvickBrian Hatvick• Nicole SoboleskiNicole Soboleski• Teri CarriganTeri Carrigan

Comeback CitiesComeback Cities

IntroductionIntroduction The Case for a TurnaroundThe Case for a Turnaround The Grassroots Revival – 1The Grassroots Revival – 1stst Main Pt. Main Pt. Emerging Markets* - 2Emerging Markets* - 2ndnd Main Pt. Main Pt. Public Order* - 3Public Order* - 3rdrd Main Pt. Main Pt. Deregulating the City* - 4Deregulating the City* - 4thth Main Pt. Main Pt. ConclusionConclusion

IntroductionIntroduction

Inner cities are reboundingInner cities are rebounding Bleak picture is not wrong, just Bleak picture is not wrong, just

misleadingmisleading• Something Something differentdifferent is happening is happening• Rusk and Orfield – metropolitanistsRusk and Orfield – metropolitanists• Cities are becoming more livableCities are becoming more livable• Four Trends – Main Pts.!!!Four Trends – Main Pts.!!!• The point is that cities are becoming The point is that cities are becoming

more livable due to the four trends.more livable due to the four trends.

The Case for a TurnaroundThe Case for a Turnaround South Bronx, New YorkSouth Bronx, New York

• Past – Up in FlamesPast – Up in Flames• Present – On FirePresent – On Fire

Mass Exit: A Vision of Urban DoomMass Exit: A Vision of Urban Doom• ““Evacuation bonuses”Evacuation bonuses”• Four WavesFour Waves

A Surprising Convergence of Positives***A Surprising Convergence of Positives***• Grassroots Revitalization/RevivalGrassroots Revitalization/Revival• Emerging/Reviving MarketsEmerging/Reviving Markets• Public Order/Falling CrimePublic Order/Falling Crime• Deregulating the City/Public SystemsDeregulating the City/Public Systems

The Grassroots Revival - #1The Grassroots Revival - #1 The Beginning of CDC’sThe Beginning of CDC’s Today’s CDC’sToday’s CDC’s Recipe “4” SuccessRecipe “4” Success Not Too Much “2” SoonNot Too Much “2” Soon IntermediariesIntermediaries

• Ford Foundation, LISC, & EnterpriseFord Foundation, LISC, & Enterprise• National Community Develop. InitiativeNational Community Develop. Initiative• Three Vital FunctionsThree Vital Functions

PoliticsPolitics• Public Officials, Mayors, & GovernmentPublic Officials, Mayors, & Government• Low Income Housing Tax CreditLow Income Housing Tax Credit• Community Reinvestment ActCommunity Reinvestment Act

When Work DisappearsWhen Work Disappears

Emerging Markets – Part Trois

Sit by the fire, children, grandma’s going to tell you a four-process story…*Success of “comeback cities” is attributed to

1) Public & private investment in housing2) Federal regulations draw big banks into

residences and small businesses3) Businesses tap into the inner-city goldmine 4) Keep residents there and keep the visitors

coming!

(Does this sound familiar? How is it similar to the four things that Brian talked about—the thesis of our presentation…think about this if you want the candy).

Markets Continue to Emerge

A revolution occurs in the inner-cities: The credit is coming, the credit is coming!

*CRA is the acronym of the day! (Community Reinvestment Act…learn it, love it!)

*Other acronyms are not as heroic as our friend c.r.a.

HOLC (Home Owner’s Loan Corporation) FHA (Federal Housing Administration) FNMA (Federal National Mortgage Association…

Well, hello Ms. “Fannie Mae”) FHLMC (Federal Home Loan Mortgage

Corporation…or just call him “Freddie Mac”).*A Crew of Mapmakers and Discriminators! Boo hoo!*

HARD EVIDENCE!“The best things in life are free, but you can give them to the birds and bees, I want your money…that’s what I want! –an obscure ’80s song by The Flying Lizards First Union/Corestates: $14 billion, five-year commitment… Wells-Fargo/First Interstate: $45 billion, ten-year

commitment… Chemical/Chase Manhattan: $18 billion, $70 million to charity,

BUT… May 4, 1998: “Citicorp and Travelers Group today made a ten-

year, $115 billion commitment to lending and investing in low and moderate income communities and small businesses” (107, New York headline).

But Most important is the fact that… “The home-ownership rate for native-born young black African American

households increased from 31 percent to almost 44 percent between 1980 and 1990. For native-born young Hispanic households, the rate increased from 38 to 52 percent” (122).

New Stores & Customers on Main Street Why inner-city business is profitable:

*Previous non-existence of good retail to urbanites.*Density vs. Wealth (Take that, you suburbanites!)

Who is taking part in this inner-city retail crusade?

*Rite-Aid: $230 million in investments.*Payless ShoeSource and McDonald’s are experts in sniffing

out safe, but deprived neighborhoods.*And even our friends, The Gap, markets hip-hop artists to

sell their clothing in inner-city, minority neighborhoods.(Remember L.L. and the Misdemeanour decked out in Gap?)

A neatly packaged lesson to take home to the Family… Inner city neighborhoods, previously depressed

are making an economic comeback because—

*Public & private investment in housing*The CRA pressures banks into giving back to

communities.*Businesses have finally tapped into the inner-

city goldmines! *Identify the way to keep residents there and

keep the visitors coming!

Chicago’s Cabrini-Green in its darkest days—crime and poverty ravish the housing development.

Photo source: http://www.chicagohauntings.com/cabrini_green.jpg

Public Order: Part FourPublic Order: Part Four

Stories of Hope—Inspiration for ImprovementStories of Hope—Inspiration for Improvement*Cabrini-Green, Chicago’s worst neighborhood—now *Cabrini-Green, Chicago’s worst neighborhood—now

greatly improved.greatly improved.

*The South Bronx—another success story.*The South Bronx—another success story.

William Bratton: Head of NYPD—sweats the small William Bratton: Head of NYPD—sweats the small stuff and seizes the “Broken Windows” ideology.stuff and seizes the “Broken Windows” ideology.

““Broken Windows” advocates fix up houses, Broken Windows” advocates fix up houses, thereforetherefore

Nicer homes=Feelings of community respectNicer homes=Feelings of community respect

Community respect + Small-crime policing = Better Community respect + Small-crime policing = Better neighborhoods!neighborhoods!

Public Order ContinuedPublic Order Continued

Crime Reduction Statistics:Crime Reduction Statistics:

*New York crime falls 12% in 1994, 16% in *New York crime falls 12% in 1994, 16% in 1995.1995.

Between 1990 and 1996, the homicide rate fell:Between 1990 and 1996, the homicide rate fell:54% in Houston54% in Houston27.9% in Los Angeles27.9% in Los Angeles17.7% in Philadelphia17.7% in Philadelphia15.9% in Washington, D.C.15.9% in Washington, D.C.

*Since 1973, violent crime at its lowest in 1998.*Since 1973, violent crime at its lowest in 1998.*National Homicide Rate is 6 per 100,000 (the *National Homicide Rate is 6 per 100,000 (the

1967 rate).1967 rate).

Deregulating the City - #4Deregulating the City - #4

Public HousingPublic Housing• Community InvolvementCommunity Involvement

Public SchoolsPublic Schools• Breaking up the MonopolyBreaking up the Monopoly

WelfareWelfare• Breaking Down the CycleBreaking Down the Cycle

Conclusion: Four PositivesConclusion: Four Positives

Grassroots RevivalGrassroots Revival Emerging MarketsEmerging Markets Public OrderPublic Order Deregulating the CityDeregulating the City Seize the MomentSeize the Moment

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