north minneapolis, south minneapolis: a tale of two cities

ECONOMIC & TERRITORIAL DEVELOPMENT | SCIENCES PO MPA

North Minneapolis, South Minneapolis:

A Tale of Two Cities

Jeremy Dennison

2012-12-20

Jeremy Dennison Economic & Territorial Development Minneapolis North Side

December 20, 2012

Page 1 of 14

I. Introduction

Over the course of the past two decades, half of Minneapolis has prospered. During the 1990s

Minneapolis had earned the undesirable nickname of Murderapolis. Crime was rife, and

authorities seemed at a loss of how to handle it. (Johnson, 1996) Today, the successful halflocated

on the south side of townis inhabited by a relatively urbane population. Its transport

infrastructure is growing, parks are abundant and heavily trafficked, and it has been rated among

the most bike friendly cities for commuters and hobbyists. However, the city is not without its issues.

It is again a city divided. While the South Side flourishes and continues on its path to becoming one

of Americas Most Livable Cities, (Minnesota Department of Employment and Economic

Development, 2012) the North Side flounders. Indeed, The North Side has become synonymous

with urban blight, deprivation, and crime. If this trend were to continue, the city would be greatly at

risk of institutionalizing a permanent underclass.

This paper takes a look at the current problems facing the North Side of Minneapolis. It will analyze

the causes of deprivation and how the city government should address North Minneapolis

segregation from the rest of the city and its resultant inequality. While the areas high crime rate

might be the most visible sign of trouble and obviously important to the discussion, it is but a

reflection of the conditions. The most pressing factors to be addressed are the areas geographic

isolation, the lack of native capital, problems with housing and foreclosures, and poor educational

opportunities. Additionally, the paper will contrast the progressive nature of Minneapolis urban

renewal policies, mostly centered on the South Side of the city and the seemingly perpetuate decline

of the North Side.

Improving Minneapolis North Side requires a long term strategy, comprised of many components to

address the areas underlying troubles. Over the past decade-and-a-half, the citys planners have

embraced a more progressive approach to urban development, better integrating the citys natural

endowments into the urban infrastructure. The South Side has witnessed over recent years the

development of more robust transportation networks, urban housing, the growing support for

businesses and local produce and has evolved in tandem with a trend toward repopulation of the

urban center (Downtown Minneapolis population has grown by nearly one-quarter in the past ten

years). (Rybak, 2012)

The North Side has seen a flight of the white population and the devolution of its native economic

structure. It is encircled by major roadways and poorly served by public transport. Thus, the thrust of

this paper will contrast the two areas of town and look at what can be done to improve the standard

of living on the citys North Side. A case study of Lake Streets renewal will be used to illustrate one

path a formerly deprived area used to successfully reintegrate itself into the urban fabric. The Lake

Street rehabilitation showed that simply putting more police on the street and drawing a cordon

around the North Side is a temporary patch that has proven time and again to be ineffective.

Instead, the areas residents struggle on as the neighborhoods around them continue to deteriorate.

This paper will recommend policy prescriptions that can be implemented on the North Side to foster

positive change and include the North Side in Minneapolis growth and increasing quality of life.


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Situating ones self in Minneapolis

It is difficult to divide the affairs of the Twin Cities of Minneapolis and Saint Paul, Minnesota. The

border between the two is often fuzzy, and their suburbs tend to bleed into one another. When one

sneezes, the other catches cold. For the purposes of this piece, Minneapolis means Minneapolis

proper, with its own mayor and city council and its own municipal regulations and will exclude the

metropolitan area unless otherwise noted.

The map below is presented to help

the reader situate him/herself in

Minneapolis. The colored sections

represent the areas of town which

will be discussed in this paper.

Though it should be fairly obvious,

North and South Minneapolis are

indicated as well. The black lines

indicate the territorial borders of the

City of Minneapolis; the green box

represents North Minneapolis, the

primary area under consideration in

this paper. Additionally, Downtown

Minneapolis has been marked with

by the yellow circle. The final two

lines correspond to important

thoroughfares noted in the paper.

The red line is Lake Street, which will

be discussed in reference to its

former deprivation and gradual

renewal. The purple line is Hiawatha

Avenue, the citys newest transit

corridor and the home of its first

light rail line.

Much of the recent upscale development in the city has taken place at the intersection of Downtown

Minneapolis along the Mississippi River, which cuts through the center of town. Also to be noted in

the map is that the southern border of the city extends ten blocks further south than indicated on

the map. The city of Saint Paul lies directly to the east of the represented area; suburbs ring its other

sides. Finally, the city runs six miles across along Lake Street and roughly twelve miles north-south

from the eastern edge of the green box to the southern border of the city.

Understanding North Minneapolis in the context of the city

Minneapolis began its life as an industrial city. Located along the banks of the Mississippi River, the

city played a role as an important transportation hub in the Upper Midwest. The citys development

centered on the river and developed outward.


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Up through the first half of the 20th century, the North Side was the nicer side of town and the

destination for the citys immigrant arrivals, as well as home to the working class and upper-middle

class merchants. Many businesses were started along West Broadway and Washington Avenues at

the turn of the century and large and ornate brick and clapboard homes were built for these

successful merchants in what is now called Old Highland; an area just north of Plymouth Avenue and

west of Lyndale. (Northminneapolis.net, 2012) North High and Patrick Henry were the best high

schools in town, and even before World War II, the neighborhood was integrated with large African-

American and Jewish populations. (Goldberg, 2007) This integration broke down in the period after

the war, and in 1967frustrations ignited into a riot on Plymouth Avenue. Minneapolis joined the

list of cities, including Los Angeles, Detroit and Newark, in which the civil rights movement sparked a

rebellion. (Goldberg, 2007)

The riot accelerated the speed of white flight from the area, and over the course of the following

decades, many of the locally owned business pulled up stakes and either closed or moved from the

area. People sold their homes, and rental properties became the norm; poverty became embedded.

Today, North Minneapolis embodies the racial inequality found across Minnesota. MinnPost lays out

a disturbing list of statistics: Poverty rate, 36 percent among blacks. Among whites, 7.4 percent.

Home ownership among blacks, 32 percent. Among whites, 74 percent. (Grow, 2011) Although

Patrick Henry High is still well-regarded and offers the successful International Baccalaureate

program, and North High has a version of the open enrollment program that South High offers,

South High and Southwest High are now regarded as some of best schools in the state and the

preference of local families. In fact, Southwest High is considered on par with, or better than, a lot of

the private schools in the city, reflecting the flight of many of Norths residents to the South Side and

adjacent suburbs.

Concurrently, the industry along the Mississippi began to dry up. Minneapolis has long served as a

hub of industry in the Upper Midwest, and its location along the river stimulated the citys growth.

However, as was the case in many second-tier cities in the regionCleveland, Milwaukee, Cincinnati,

Kansas City, Indianapolis, Detroitindustry moved out and the cities had to deal with the often

uncomfortable transition to a service economy. The decline of Minneapolis North Side can be

understood as a consequence of the citys deindustrialization through the latter half of the twentieth

century. Although Minneapolis has weathered the transition better than many of its peers, the shift

has not led to renewed inequalities with the citys demographic makeup.

While several areas of Minneapolis remained underdeveloped (one, along Lake Street will be

discussed in this paper), the deprivation remains most apparent today on the North Side. In the end,

the city was left with the North Minneapolis we know today. It should be noted here that North

Minneapolis is not a hole of ceaseless deprivation; it is home to hardworking, honest men and

women who raise families and live normal lives. However, it is a part of the city facing more serious

problems that most other areas. The North Side has a higher home foreclosure rate than the rest of

Minneapolis, a higher crime rate, and in the first decade of the 21st century, the area lost more than

10% of its population. (Rybak, 2012)


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II. The issues affecting Minneapolis now and looking forward

The problems of urban poverty, increasing social exclusion, and inequality are far from unique to

Minneapolis. Increasingly, the poorer areas of American cities lack outlets for adequate education,

business, and even nutrition. The effects are wide-ranging. The Economist notes in a recent article

that, Social mobility in America, contrary to conventional wisdom, is lower than in most European

countries. The gap in test scores between rich and poor American children is roughly 30-40% wider

than it was 25 years ago. (The Economist, 2012) These findings threaten the establishment of a

permanent underclass, where crime, deprivation and inequality become institutionalized.

Minneapolis North Side is just one area where this trend plays out.

While Minneapolis as a whole has dealt well with social and economic changes, the North Side faces

a multitude of problems, mostly stemming from the flight of capital in the last several decades. The

area has fallen deeply behind on quality of life indices. In this section, we will take a look more

specifically at the primary areas in which the North Side is lagging. While again there are no short-

term solutions, directing policy to these areas will serve to fix many of the problems; it will set the

groundwork to build a community that can thrive. The processes that undid the city must be

countered and it will take long-term commitment from policymakers

Breakdown of the problems and their relevance to the equation

The problems of North Minneapolis can be broken down into five different categories, as detailed

below. Crime is the common theme that runs through this, but this paper wont take it on directly;

instead we will look at the underlying factors that lead to crime. In a depressed community, crime is

a symptom of depression more so than a cause.

Deindustrialization and geographic isolation: The North Side is surrounded by major highways. The

configuration of these roadways encircles the area and doesnt lead into the neighborhoods. This

isolation discourages business that might otherwise pass through the area and stymies the North

Sides economic development. Similarly, North Minneapolis is comparatively more poorly served by

public transportation. (Rybak, 2012)

The process of deindustrialization brought the closure of the areas factories and local businesses.

Driving through the North Side, one is greeted by a swarm of disused factories and vacant buildings.

When the factories closed, local business left the area, as did the areas capital. What was left

behind is what the area must contend with today.

Lack of native capital: Related to the last point is North Minneapolis lack of native capital. During its

heyday, the area was home to many businesses owned and operated by the local residents. (Grow,

2011) The money generated by the people in the area is from jobs that are located outside of North

Minneapolis, and because of the lack of local options, is spent outside of North Minneapolis.


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Home foreclosures: The lack of native capital has compounding effects. For example, the citys rate

of home foreclosures is highest on the North Side. Minnesota Public Radio reports that, On some

streets in North Minneapolis, vacant homes almost outnumber occupied ones. (Mador, 2009) Out

of the 14,000 homes that have

been foreclosed on since

2006, 6,000 of them are on

the citys North Side. (Rybak,

2012)

The map to the left shows the

locations of loan assistance

provided by Minneapolis

Advantage, a program

designed to boost home

ownership and stop

foreclosures. The area of most

intense implementation, that

is the area most at risk for

foreclosures, corresponds

almost directly to the

boundaries of the citys North

Side used in this paper.

The lack of housing security

has a negative influence on

the development of stable,

nurturing communities. Even

more so, it has an effect on

revenue that can be generated

through property taxes, which

in turn affects economic

development and the funding

of local schools.

Education: The lack of money from property taxes is only part of the problem facing education on

the North Side. Another part of the decline in education can be attributed to the advent and

popularity of charter schools in Minneapolis. With their open enrollment policies, they have been

drawing students away from public schools. (Post, 2012)

Secondly, the Bush-era No Child Left Behind is responsible for the restructuring of several North Side

schools and the closure of one. (Mitchell, 2011) Many children are now bused out to the

surrounding suburbs, further inhibiting the development of community and leaving officials with

even less to invest in.


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Food desert: Lastly, the lack of native capital and the absence of strong community ties affect the

health of the community. The departure of local business has led to a scarcity of healthy food

options. This dearth of options is common in economically depressed areas. North Minneapolis is

overrun with convenience stores, fast food restaurants, and liquor stores, but there are few grocers.

Poor health raises health care costs in an already poverty-stricken area, and negatively affects well-

being. Though the food desert might seem like a minor point compared to what has been described

above, the next section will show that tackling this problem can have far reaching effects that can be

combined to ameliorate the other factors.

In the end, the above factorsisolation, absence of community and security, poverty and the lack of

capital, and poor educationdo increase the level of crime in North Minneapolis. For example, a

recent study shows the connection between home foreclosures and the local crime rate. The

Atlantic cites the studys findings, Crime did increase about one percent following a

foreclosurebut only after three or more foreclosure notices were issued to a particular block. In

other words, home closures may lead to crime, but not until a block passes a threshold of housing

stress. They also found that the effects of this closure-crime relationship were greater in

neighborhoods with higher levels of crime in general. (Jaffe, 2012) The statistics do indeed indicate

that the North Side has a higher crime rate than the Minneapolis average. (City of Minneapolis,

2012) The area is responsible for half of the citys murders. (Williams, 2010)

The instability has also led to growing social inequality. Any policy must address the five factors

described above. The goal is to better integrate those who are at a high risk of being left behind and

denied the fruits of progress in Minneapolis. Policy must be used to bring them into the fold and

empower them with skills and a sense of belonging, and above all, sources of income to mitigate

what could be an increasing divide between different communities. Minneapolis is a patchwork

community and proud of this fact. Setting policy to integrate all Minneapolitans will strengthen and

enrich the city and its denizens.

III. How do we address the problems to make Minneapolis and more

equitable, safer, and livable city?

The solutions to North Minneapolis problems require long-term consideration. Policy must also be

comprehensive, taking into account the factors outlined in the last section. The key is to apply policy

smartly, rather than broadly. It is not necessary to regulate everything: some improvements will

trigger other improvements, a multiplier effect of sorts. However, the city does need an integrated

strategy of many overlapping components over the course of a decade or morenot a simple list of

short-term solutions. Naturally, policy must be implemented to alleviate the blight as quickly as

possible, and there should be some measures that have an effect in the short-term. However, these

should not be mistaken as end goals. And a lack of quick improvement must not be viewed as a sign

of failed policy.

Policy prescriptions will attempt to take a holistic view in addressing the most pressing issues

described in the last section. Policies currently in place will also be noted. Essentially,

recommendations will need to answer two questions:


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How can the city mitigate the dearth of business on the North Side?

How can the North Side become less isolated and have a healthier environment?

Though difficult, the city has succeeded before in turning a destitute area around and seen it

flourish. The city of Minneapolis has turned around the area along Lake Street, a major east-west

corridor south of Downtown. Lake Street still has many problems, several of them are the same as

those on the North Side, but it is also unmistakably on a better path than it was 10-15 years ago.

Addressing North Minneapolis

In some ways, things are already looking better in North Minneapolis, though it has a long way to go.

In a speech in June 2012, Minneapolis mayor RT Rybak pointed to dramatic improvement,

including the implementation of housing programs and a reduction in crime. (Rybak, 2012) However,

the area has a long way to go. If followed, the policy recommendations in this section would

stimulate development and inclusion on the North Side.

The following dimensions were laid out in the previous section. Here we will discuss policies that can

be used to address specific problems.

Development and inclusion: There are a great number of social services and work centers for the

underclass, but few of them located on the North Side. Theyre located along Franklin Ave and Lake

Street. Their location has helped to stimulate development around those two corridors, and opening

offices or establishing outreach to the North Side would go a long way in bolstering that areas

economic development.

One of the organizations that work with economically depressed areas is the Department of

Employment and Economic Development (DEED). DEED has connections to groups like

WomenVenture that give out grants to small businesses trying to open in areas not typically

considered business-friendly. One such program is called the Urban Loan Initiative Program. Through

the program, DEED support[s] the growth of minority owned and operated businesses and to

create jobs in economically distressed areas of the Twin Cities. DEED provides grant funds to a

network of nonprofit lenders which use these funds for loans to start-up and expanding businesses.

(Minnesota Department of Employment and Economic Development, 2012) While this is exactly the

sort of program needed, it remains relatively unknown.

The city government should work more closely with DEED, a state agency, to promote and provide

training to potential entrepreneurs and connect them with organizations helping advance local small

business growth in areas that have been identified as needing development, such as on the North

Side. It could help open field offices in that part of town and channel owners to programs like the

Urban Loan Initiative.

Proximity to a public transport corridor: The second part of the equation involves accessibility.

Mayor Rybak, in a recent speech, stressed the importance of connecting the North Side to the rest of

Minneapolis, We can have a safe neighborhood with good places to live, good jobs and good

employers, but North Minneapolis can't grow like it should or like the rest of Minneapolis needs it

to grow until it has better physical connections to the rest of the city and the rest of the

regionNorth Minneapolis is surrounded by three important physical assets the Mississippi River,


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Wirth Park and Downtown Minneapolis but when you are here you could not feel further away

from all three.

Again, promoting the use of public transportation and even the implementation of bus lines better

connecting the North Side are fundamental. The city government might also want to look at

subsidizing the cost of bus passes for residents below a certain income threshold or for small

business owners in the area.

The economic implications of access are clear. A research report produced by the Cooperation for

Urban Mobility in the Developing World (CODATU) notes that, There is a strong link between

mobility and income. The creation of wealth requires that earners be able to move about quickly and

easily. The relationship between the number of trips made per day and per capita income is very

significant. (CODATU, 2009) The group also found that subsidizing transport can pay for itself by

increasing business for local shops and services, and increasing productivity whilst reducing costs

for consumers, business activities and public administrations. Moreover, land near the transport

corridors is put to better use, with increased land value giving rise to new urban developments, or

new ways to use the land. (CODATU, 2009)

Food Deserts: Addressing food deserts has surprisingly far-reaching effects on urban development:

they help inclusion, local business, and transportation links, as well as the general health of the area.

As noted, North Minneapolis is overrun with convenience stores, fast food restaurants, and liquor

stores but has few quality outlets for healthy food.

Sasha Hulsey, a policy analyst with the think tank Minnesota 2020, notes that [i]ncreased urban

farming opportunities may have notable benefits to community health and economic development,

and that policymakers have identified North and Northeast Minneapolis as areas that could benefit

the most from urban farming. (Hulsey, 2012) The practice has already gained a foothold in areas of

the North Side. The organizers have turned disused factories and parking lots into community

gardens and farming areas to help generate income and reverse the effect of the food desert.

However, none of the projects are directly funded by the city; these projects instead tend to be

community funded.

The City of Minneapolis has only recently legalized urban farming, though with many restrictions.

(Hulsey, 2012) The government could further show its support by better promoting these gardens as

a tool of economic development and community empowerment. Urban farms help repurpose vacant

areas and blot out the blight of the deindustrialized landscape.

Urban farms and the resulting farmers markets bring people who wouldnt ordinarily go to the area

as well, lessening exclusion, and drawing a typically young, urbane crowd who want to spend money

locally. The farms generate native capital and make space greener and more livable while providing

local nutritional outlets. Milwaukee, a city comparable in many ways to Minneapolis, has had some

success with its own urban farming programs.

Home foreclosures: To combat home vacancy, since 2008, the city of Minneapolis has been running

a program called Minneapolis Advantage, wherein the city government assists homebuyers in

neighborhoods with high foreclosure rates. The map on page five shows where the program has

given out favorable loans to buyers. (City of Minneapolis, 2012) The housing market in the area is a


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victim of the national downturn, but suffers doubly from the economic weakness and isolation of the

area. Minneapolis Advantage is a good start to incentivizing people and making it feasible for

residents to buy homes in North Minneapolis. Further economic development will speed up this

process. When people have a reason to take up a stake in the community, they will do so.

Education: Education can play a role in integrating students. But instead of merely busing North Side

children out of the area, the establishment of after-school programs in key areas would better

incorporate children from various parts of the city. These programs would let immigrant children mix

with native-born students and draw South Side kids to the North Side. Here a robust transportation

network would also be needed. For high school aged and older students, the following steps could

be taken to improve their education and give them skills to help employment:

Reintroduce technical programs back to the citys public high schools

Develop centralized afterschool tutor and sports programs to integrate immigrant/North

Side children and teens, especially those deemed at risk, to provide academic

enrichment and safe activities as well as mix children from different socioeconomic

demographics

Liaise with the main technical college and university to foster training programs,

scholarships, and internships for high-performing students

What Lake Street did and what can be generalized from that approach

As noted, the area of Minneapolis

along Lake Street recently faced many

of the same problems the North Side

now deals with. A big part of

improving Lake Streets rehabilitation

was bringing it closer to the rest of

Minneapolis. Drawing people from

other areas of town onto Lake Street

increased exchange, and

transportation development made it

easier for people living along Lake

Street to move around the city. To some degree, this was easier due to Lake Streets relatively

central position. However, the placement of the light rail station at a key point on Lake and the

construction of a transit station as part of the Midtown Exchange project made a difference. The

growth of local businesses was vital to building an inclusive, vibrant business and residential district.

The area also benefited from the establishment of social

services and work centers for the underclass around Franklin

and Lake. These organizations were able to engage local

entrepreneurs and connect them with investment that

brought native capital into the area.

Lake Streets development employed a powerful symbol to

spur development and attract funding. For over a decade,

local leaders rallied around the long-vacant Sears building at


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the corner of Lake Street and Chicago Avenue and pushed for the buildings renovation and

transformation into commercial and residential space. (Midtown Community Works, n.d.) The

building served as a visible, tangible symbol of the areas renewal. North Minneapolis has many

buildings that could serve as a similar symbol. Getting the private sector involved would be crucial,

and its involvement would defer some of the cost. The city must first build the foundation and the

infrastructure for renewal and then court organizations interested in investing in the area.

How will the city pay for these polices?

Money is of course always the issue. There are some different avenues to explore to make the

necessary renewal of North Minneapolis more affordable.

A recent paper by economists Lawrence Summers and Brad DeLong look at the role of stimulus

spending in depressed economies. Their findings show that stimulus money will trigger the multiplier

effect and that, combined with currently low interest rates, these programs can begin to pay for

themselves. (DeLong & Summers, 2012) Economic growth will also generate more money through

the increased value of property, though greater employment, and from additional business.

Another option deals with state money through the Local Government Assistance program (LGA).

The previous Republican governor had slashed LGA funding to communities, (Perry, 2009) but

Minnesota still has excess bonding capacity to work with. LGA money could be used to support

educational and afterschool programs. Additionally, Minnesotas borrowing rates are at historic

lows, (Dennison, 2012) so again, the borrowing has the potential to pay for itself.

Finally, one last avenue to explore to generate revenue is betterment taxation. Betterment is

generally defined as the increase in value of land which results from actions other than those of the

land owner i.e. the increase in land which is created by the community and which can be positive.

(Plimmer & McGill, 2003) Originating in the UK, it is a tax on the value added to the land rather than

the land itself, which incentivizes the community to put it toward a more beneficial use. While

deriving the exact added value, as well as its source, can be a difficult process, the city would do well

from trying to leverage this form of taxation.

Naturally there would be opposition from the implementation of such measures. Conservatives

complain about any government spending, and many Minneapolitans would object to their money

being spent on the other side of town. However, as this paper has outlined, the money in the North

Side would generate a great deal of local revenue and bring prosperity and security to many in the

city. Expenses can be offset in the long-term through the revenue generated by this growth,

progressive taxation, and drawing revenue from betterment. The business community, if it were to

look at the long-term, should have no reasonable objection to building an inclusive and vibrant

North Minneapolis.


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IV. Closing: Summary / A look to the future

Sadly, much of the current discourse revolves around stronger law enforcement. As a community,

Minneapolis must overcome the desire to shift its underclass into an effective ghetto, which can

then be roped off by a strong police line. More policing presents a great cost to the community with

no hope of payback. Strong, progressive policy and moves toward inclusive growth on the North Side

go hand in hand with development and reduction in crime.

Several non-profit and community organizations work with the North Side to bring about positive

change to the community. The city government must now take a stronger role in tackling the areas

exclusion and deprivation. Following the policy prescriptions laid out in this paper will present an

important first step in addressing the underlying issues on the North Side. Minneapolis, like any

other city, will never rid itself of poverty. However, a long-term view of the causes of the poverty

and deprivation currently afflicting the citys North Side will go far in stopping the development of a

permanent underclass before it becomes institutionalized.


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north minneapolis, south minneapolis: a tale of two cities

Documents

south minneapolis

north minneapolis segregation

citys north

half of minneapolis

urban development

s minneapolis

economic development

urban housing