Author: Michael Scott

  • The Digitally Connected City

    We are witnessing an explosion in digital technology that is reshaping cities… and resulting in a fundamental shift in the way people move and interact within the built environment.

    New innovations have always had a profound impact on the evolution of cities, supporting commerce as well as addressing lifestyles. Making sense of the prevailing trajectory requires a new paradigm for city residents, visitors and those who govern.

    In recent times, computers and phones have become a must for navigating the vast ecosystem of urban options. New digital technologies support activities such as the ability to use forms of mobility other than cars. From digital apps such as RideScoutApp.com to local amenity rating services like Yelp.com, digital tools abound to guide both local residents and city visitors to where they want to go. These developments provide the backbone of sustainable economic development.

    Public and private initiatives are deploying tech solutions to interests and demands. The AT&T Smart Cities Initiative, which is being rolled out in urban centers like Chicago, Atlanta and Dallas, is just one example of a tool for citizens to stay abreast of developments locally and regionally. For example, consumers can receive live updates on their phones if a traffic signal isn’t working. And they can remotely access information on parking meters to reserve a space in advance. In addition, transportation updates in the form of digital signage allow commuters to be advised in real-time of arrival and departure schedules. These digital tools also allow them to rent electric bikes at stations populated throughout these host cities.

    The fuel for this movement? Rapid momentum in the deployment of high-speed Internet technology in cities and regions. This is the “juice” that fuels mobile technology adoption and the use of city-based apps, providing consumers with connectivity and the ability to have their data delivered fast. Leading the race in this push is Google Fiber, which is on board to offer warp speed Internet to a growing number of cities across the U.S., including Charlotte, Kansas City, Provo, Raleigh-Durham, Salt Lake City and San Antonio. While the full implications are still a ways off, it promises to serve as a lightening-rod of possibilities for igniting the new digital economy.

    Google’s catalytic spark has created a groundswell of public/private interest in boosting the gigabit landscape of cities and regions. A prime example of this is in Longmont, Colorado which has created an experimental laboratory of sorts around what they have coined the GigaBit City. Called NextLight, this venture is a plan to deliver warp-speed broadband to local residents and business. Seen as an economic development game-changer for this city of nearly 90,000, located about 45 minutes northwest of Denver, it is scheduled to be available by 2016. And the monthly price, which is reported to be around $49, is destined to raise some eyebrows among intrigued city planners. Viewed as a quasi-public utility, the ultimate goal of the city is to provide the fastest-speed at the most affordable price of any city in the nation.

    Greater access to reliable and fast Internet services allows city locals and visitors to efficiently navigate business and lifestyle options. It also helps citizens to engage more deeply with their communities and provide data-driven feedback on ways in which improvement can take place. Growing numbers of city governments are embracing the benefits as they bring more people online, which helps bridge the digital divide that often exists in their locales. While laws and compliance will always be the primary raison d’etre for public entities, there is a reason for optimism in their willingness to acknowledge and celebrate new technologies.

    The key drivers of citizen engagement are phones and other mobile tools. Anthony M Townsend expresses this theme eloquently in his book, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia. He writes:

    “We are witnessing the birth of a new civic movement, as the smartphone becomes a platform for reinventing cities from the bottom up. Every day, all across the globe, people are solving local problems by this increasingly cheap consumer technology… And smartphones are just the start – open government data, open-source hardware, cities of the future that are far smarter than any industry mainframe. And so, just as corporate engineers fan out to redesign the innards of the world’s great cities, they’re finding a grassroots transformation already at work. People are building smart cities much as we built the Web – one site, one app, and one click at a time.”

    The proliferation of phones and other mobile devices are the tipping point of a new digital normal for cities. Ridesharing tools like Uber and Lyft, community building sites like Meetup.com, dining apps like OpenTable.com, and even new digital currency apps like Airbitz.com open the door for civic engagement and local economic activity.

    And what about access to power sources for these mobile devices? We’ve all had times when our phone batteries have gone dead, leading us to a frantic search and rescue mission for an electrical outlet. This is the reason why ChargeIt (chargeitspot.com) stations are becoming available in growing numbers of cities.

    In the end, this mashup of tech infrastructure, consumer tools, and government engagement are fostering an exciting evolution in how we interact with our built environments. It signals the next wave of innovative solutions driving the connection between technology and the economic development of cities and regions.

    Michael Scott is a Denver-based journalist specializing in disruptive themes fueling today’s emerging digital economy. More on his work can be found on his blog site, BITDisrupt.

    Flickr photo by Adam Fagen: Texting Congress in support of medical research; Washington, D.C.

  • The New Geography of Apartment Rentals

    “Supply and demand” describes the interaction between the available amount of a resource and the need for it by consumers. In the world of community development, nowhere is this dynamic more pronounced than in the rental housing market.

    Recessionary times have combined with barriers to homeowner financing to spark a surge in rental demand within many U.S. cities and regions. At the same time, erosion in worker salaries over the past decade has led to a record number of households devoting a disproportionate amount of their income towards rental payments. An uptick to increase the supply of rental units and keep pace with an escalating demand needs to occur, but instead, there’s been slow movement in rental housing construction. Where are we seeing the most profound results of this combination of factors – and how can communities best accommodate the new flood of renters?

    According to a study conducted by the Harvard Joint Center for Housing Studies in conjunction with the MacArthur Foundation, participation in the home rental market is at its highest level in more than a decade for all age groups. The US now has 43 million renter households, representing 35 percent of all households. This report also found that housing affordability issues have soared, since nearly half of renters possess annual incomes below $30,000, including 22 percent with incomes below $15,000. More than half of all renters — 21 million households — dole out more than 30 percent of their income for housing. These figures represent the greatest number of cost-burdened renters on record.

    The Colorado Front Range and the Bakken Region of North Dakota and Montana are examples of areas where high levels of population growth have led to meteoric shifts in the rental housing markets. Over the last three years or so, the influx of new residents has driven monthly rates to unprecedented heights.

    The Front Range refers to the most populous areas of Colorado: cities like Boulder, Fort Collins, Castle Rock, Colorado Springs, and Denver, which have become the primary hotspots for new resident growth. Much of the development there is a result of incoming highly educated workers, who are arriving in droves from California, Ohio, Texas, Florida, and the Dakotas. Denver has had the distinction of being ranked first among U.S. metros for total population gain in the 25-34 age range between 2008 and 2010, and the Census Bureau estimates that by 2020 Metro Denver’s population will soar from 2.9 to 3.2 million.

    Northeast of Colorado is a region that has seen explosive growth due to an oil boom, with a population that now includes thousands of migrated workers filling the numerous jobs. This sudden movement to lucrative location is reminiscent of the California gold rush era. According to the U.S. Energy Information Association, oil production in this region is expected to top one million barrels a day by year-end 2013.

    The black gold hotspot is the Bakken Region, which extends from parts of North Dakota into Montana, encompassing 12 counties. The Bakken Region has seen its working population swell by 70% since 2010. While the economic trend has been a boost to fortunes, a chronic shortage of living accommodations for transient workers has led to a serious imbalance in the housing supply/demand equilibrium. The result: home and rental housing costs that boggle the mind and terrify the wallet, sending many arriving workers into hysterics as they try to find a place to rest their heads at night. There is frequent talk of workers that are forced to live in their cars while earning $100,000 a year. Trailer parking spots can be found for rates that have escalated to $800 a month, and hotel prices are even higher; a one-night stay can be $300, or even more.

    The operative question for city leaders and planners in these regions is how to build large swaths of new housing without the supporting infrastructure to accommodate the expansion. Michael Leccese, Executive director of Urban Land Institute Colorado (ULI), notes that during the recession the area’s boom in apartment living has played a crucial role in keeping real estate development afloat. “The pace of apartment construction has provided needed housing for the region’s growing population of Millennials, as well as for empty nesters and those shut out of the for-sale market for whatever reason,” says Leccese. “Many of these apartments have been constructed in walkable, urban infill and transit-accessible locations, and often feature innovative, green building designs.”

    The massive push to expand housing supply has raised the question of whether the market is being overcorrected to the point that supply will exceed demand. As construction begins on more and yet more new apartment buildings, will the Front Range and the Bakken Region continue to see the massive growth that has characterized the last few years?

    Leccese asserts, “There is no doubt that we are seeing some concern on the part of our ULI members in terms of this overbuilding, as well as the lack of diversity in product type and price point. Some are, in fact, wondering whether this might be the new housing bubble.” If growth does slow, this will mean good news for renters, who will likely see more affordable rental rates. For rental housing companies, however, it would not be a call for celebration.

    Along with the Colorado Front Range and the Bakken Region, cities throughout the nation with growing populations will be facing similar challenges as they strive to insure an appropriate supply of reasonably priced rentals to accommodate regional housing needs. The issue shows no sign of abating in cities and regions possessing rich harvests of jobs that attract new entrants to their area.

    Age and cultural demographics also factor in. It’s estimated that the number of renters 65 and older will increase by 2.2 million between 2013 and 2023. Hispanics are also projected to account for a substantial share of renter growth over this period.

    Addressing this issue will require thoughtful decision-making based on sound information about demographic shifts and job availability — and a firm understanding of trends in regional supply and demand.

    Michael Scott is a writer, speaker and researcher specializing on the interconnection between people and their community environments. He can be reached at urbanvisionary@gmail.com

    Flickr Photo by Sam Mooney – Rental Sign: Are cheap rents soon to be history?

  • How Libraries and Bookstores Became the New Community Centers

    Bookstores and libraries have long played a central role in fostering a deeper appreciation of knowledge, and in lifelong learning. Increasingly, these places are also filling another critical need in our communities, by providing a haven for those seeking a communal connection in an ever-more isolated world.

    Ray Oldenburg, author of The Great Good Place, coined the term “third place” to describe any environment outside of the home and the workplace (first and second places, respectively) where people gather for deeper interpersonal connection. Third places include, for example, places of worship, community centers, and even diners or pubs frequented by the “locals.”

    Third places, according to Oldenburg, are vitally important to the social fabric of communities because they facilitate the healthy exchange of ideas and provide a public venue for civil debate and community engagement.

    Libraries and bookstores clearly are long-time ‘third places’ That shouldn’t be a surprise, given that books serve as the lingua franca of new ideas. Notice, though, that these establishments frequently provide coffee bars, meeting rooms, Wi-Fi access, public computer terminals, and other amenities. They serve as accessible retreats for community groups and clubs, offices for transitioning job-seekers or home-based business owners, logical meeting places for children’s literacy organizations, havens for latchkey kids, and bases of operation for homeless men and women as they try to reintegrate into the community. These are the features, probably more so than the rows of books and racks of periodicals, which grant libraries and bookstores their ‘third places’ status.

    Libraries have been hit hard by the proliferation of home-based Internet access and digitized material. The impact is exacerbated by state and local budget cuts that place some libraries in a vicious downward spiral — reduced foot traffic from those with other options often is held out as “evidence” of library irrelevance, leading to more budget and staff cuts and further reduced access for those who need it.

    Large libraries in major urban centers are particularly vulnerable, with their cavernous buildings and row upon row of books that are rarely touched. If libraries are to survive, city leaders and library boards must continue to explore creative solutions for the changing needs of their patrons. As economists would put it, they must “drive demand” for expanded library services.

    A great example of success with this approach is the Martin Luther King, Jr. Library (www.sjlibrary.org) in San Jose, California. It purports to be the only institution of its kind: It serves as the primary library for both a major university and a major city. This joint partnership between the city of San Jose and San Jose State University was announced in 1997, and the primary building opened in 2003. It boasts over 7 floors and 1.6 million books. There are also dedicated rooms for quiet study sessions, teen activities and multimedia access. In effect, SJSU students have access to all the popular features of a typical public library, while the public has access to all the academic resources of a university library. The entire community is well served by this far-sighted collaboration.

    It represents the convergence that is taking place between the traditional role that libraries have long played and the virtual world. According to a study funded by the American Library Association in conjunction with the Bill and Melinda Gates Foundation, the number of U.S. libraries nationwide offering public Internet access has ballooned from under 13% in 1994 to nearly 100% today. What this suggests is that the role of libraries as technology hubs is increasingly supplanting their function as simply a repository of books.

    The use of community space in libraries to access technology is particularly vital for low-income residents and for individuals in small towns where the library may be the only connection point for free Wi-Fi access.

    Bookstores are confronting the dual challenge of staying both vital and profitable. The most successful brick and mortar bookstores have evolved into third places. Once just exclusively retail outlets, they now are quasi-library/community gathering spots with onsite coffee shops and free Wi-Fi access. While bookstores have always attracted those who wish to browse and kill time, they now also draw others, laden with backpacks, to research, write, and study. Bookstore-based reading groups abound.

    But even when a bookstore embraces its role as a third place institution, its viability is not guaranteed. The bankruptcy and closure of more than 600 outlets of Borders Books nationwide is evidence of a shakeout in the retail book industry, amid the proliferation of electronic book portals such as Amazon, Apple and Google. Independent bookstores especially have struggled to maintain their niche in the marketplace (although they may have more flexibility to quickly embrace third place-related amenities).

    The lesson in this case is that capitalism can be harsh. For example, Amazon’s controversial price comparison tool allows shoppers to scan bar codes to check prices at rival brick and mortar and online stores. But capitalism also encourages differentiation. As every good business owner knows, becoming a commodity dealer and competing only on price usually is a recipe for failure.

    Rather, libraries should be more like bookstores, creating an inviting, leisurely environment. Bookstores should be more like libraries, providing community rooms and programs.

    Both should think creatively about how to provide the things that online sellers cannot. That includes, of course, the pleasures of shelf browsing as opposed to web-based browsing. But beyond that, the most successful libraries and bookstores will embrace the opportunities for relevance that their special third place status enables.


    Michael Scott is a speaker and co-host of the Internet radio show Bookmark Radio. He can be reached at michael@bookmarkradio.com. Photo by the author of the Tattered Cover bookstore in Denver, Colorado.

  • Car Wars: Should Autos Rule The Road? Part I

    We’ve decided to become a one car family. Denver has proven to be the ideal locale for this experiment, of sorts. The “Mile High City,” and particularly our new neighborhood, provide a range of mobility options beyond the four-wheel variety for trekking from place to place.

    The metropolitan area is naturally blessed with a mobility-favorable landscape. It is approximately 10 miles by 10 miles. More importantly, our neighborhood possesses what I affectionately refer to as “accessible proximity” to local amenities such as grocery stores, coffee houses, parks, and specialty shopping centers. The immediate area is not only safe, it’s engaging in its physical and social makeup, with stately homes and troves of dog-walkers along suburban style streets.

    Recently, our daughter, who is eight, remarked “Ya know, at our old home it seemed like we always needed a car to go places, while here in Denver, we can actually walk places and enjoy the clean air.”

    The website Walkscore, an online index, which ranks communities nationwide based on access by foot to restaurants, coffee houses, schools, businesses and other frequent destinations. Denver’s score provides tangible evidence of my daughter’s contention: According to the site’s analytics, our Denver address registers a whopping 88 out of 100, defined as ‘very walkable,’ meaning that “one is able to accomplish most errands by foot. Our residence in Folsom, California — from which we recently relocated — stumbled in at a paltry 48 out of 100, defined by Walkscore as ‘car dependent’.

    Why is this such a big deal to us, as well as to growing numbers of Americans? I would contend that it is affordability. As Americans continue to struggle financially amid the worst economic times since the great depression, the argument could be made that location efficient neighborhoods offer a cost effective alternative to those that are exclusively auto-centric. In an era where expenses associated with automobile ownership, maintenance and fuel represent a significant slice of our household budgets, policy makers would be wise to expand options that encourage alternative forms of mobility.

    Automobiles are still the transportation mode of choice for most working commuters, and for good reason, as most Americans still live a reasonable distance from where they work. But alternative forms of transportation are gaining momentum, as many struggle with insurance and other automotive related expenses.

    According to the U.S. Census Bureau’s recently released American Community Survey (ACS), bicycling is becoming a viable option for Americans willing to pump the pedal on their way to work. Portland leads the U.S. in terms of the most bike commuters, with almost six percent of its residents using a bicycle as their primary mode of transportation to work in 2009. Minneapolis (3.86%), Seattle (2.99%), San Francisco (2.98%), and Oakland (2.53%) round out the top five.

    Denver is one of a handful of cities that is actively promoting the use of bicycles as a viable short-run commute option. This year, the city introduced the first large-scale bike-sharing program in the U.S. A partnership between Humana, Trek Bicycle and the advertising agency Crispin Porter + Bogusky, this initiative flows from the shared belief that bicycles should serve as vehicles for positive health and environmental change, as well as important parts of a community’s transportation ecosystem. It’s this latter point that has gained the attention of Denver hotels and the convention center, which are seeking to provide visitors with mobility tools that compliment the downtown’s free bus system and walkable grid.

    The dilemma continues to be how to efficiently travel short distances that are too far to walk. Like Pavlovian dogs, many of us are conditioned to reach for the car keys, even for the shortest of trips. This behavior is deeply embedded in our consciousness;, an auto-centric mindset that has been nurtured in us for years.

    Chris Wiggins of the Folsom, California based Glide Electric Cruiser believes that a huge demand exists for short-range transportation options. His invention is ideal for short commutes and has virtually no impact on the environment. What is it? A series of motorized electric scooters with top speeds of up to 38 miles per hour. Currently in a first production run stage, these “cruisers” have attracted a wide swath of interest, from law enforcement agencies to senior groups. “I personally believe they have the potential to revolutionize short-range commuting in the U.S. and beyond,” says Wiggins. “My greatest hope in developing them is that they will have a meaningful impact on the quality of life, as well as improve the environment.”

    Recognizing that car-based travel will continue to be a reality for most Americans, innovative companies like Zip Car and Car2Go have adroitly positioned themselves for where I believe the auto market is headed: Short-term, just-in-time rentals that eliminate the expense of owning a car. And since my family has only one car, I personally am exploring these and other options to assist with those commutes beyond my immediate, local area.

    There are many factors affect the viability of a mobility option. Density currently receives the greatest amount of air-time. I’m often reminded of a business trip several years ago to the wonderful island community of Bermuda. I was intrigued to discover that because of its dense configuration and its size, cars weren’t allowed on the island until 1946. Today, only residents are permitted to drive cars on the island, and only one car is allowed per household. As Bermuda is a heavily trafficked tourist destination, I wondered what forms of transportation were available. An amused hotel bellman directed me to a lot full of mopeds and scooters.I discovered that these low-power transporters were the predominant form of transportation for residents as well as visitors to the island.

    While it could be argued that population density is the raison d’etre for alternative mobility options, there are other factors that should be taken into consideration. Much talk of late has centered around a concept called “intersection density,” which refers to the number of intersections in an area. The greater the intersection density, the shorter the blocks, and it is these short blocks that are the main contributing factor to neighborhood walkability. In Travel and the Built Environment: A Meta Analysis, which appeared in the summer 2010 issue of the Journal of the American Planning Association, Reid Ewing and Robert Cervero, urban planning academics at University of Utah and U.C. Berkeley respectively, found that of all the built environment measurements, intersection density has the largest effect on walking — more than population density, or distance to a store or to a transit stop, or jobs within one mile. According to the authors, it’s this ease of accessibility that spurs walkable foot-traffic to high destination nodes such as shopping and recreation.

    Density, unfortunately, is often associated exclusively with large urban environments that possess tightly packed, downtown center-cities. This undermines the enormous advantages of many suburban style cities such as Naperville, Illinois; Traverse City, Michigan; and Glenwood Springs, Colorado, all of which offer a plethora of local amenities within walking distance of their adjacent neighborhoods.

    Our deeply ingrained auto-centric habit makes it hard to say if any of these lessons in metropolitan mobility will gain traction, and if so, where they are likely to lead us. But one thing is for certain: A new narrative for how to approach short-distance trips is fostering a debate that is, at the very least, a carbon footprint in the right direction.

    This is the first of a two-part series in which different writers examine the centrality of the automobile in urban and suburban life. Tomorrow, read a very different viewpoint in Part Two.

    Photo by Michael Scott of the author’s Denver neighborhood.

    Michael P. Scott is an associate with Centro, Inc, a Denver-based consulting firm focused on the future of our city centers. He can be reached at michael@becentro.com

  • Health Care: Booster Shot for Jobs?

    As a former health care human resources executive, I’m often drawn to the local hospital in whatever city I’m visiting. A city’s health care environment reflects its social, cultural and economic state. Because the local medical center complex is often the largest employer in town, it would seem that strong fiscal returns would be rewarded to those cities that strategically aligned their economic development efforts to capitalize on growing this sector. Unfortunately, the health industry has historically been viewed as a local disaster, replete with quality of care issues, bureaucratic inefficiencies and high costs.

    While the spiraling costs, the inefficiencies, and the future of reform are often talked about, little attention is given to health care jobs as springboards to enliven local and regional economies. The steady parade of doctors, nurses, technicians and support staff at our medical establishments provide cities with a huge multiplier effect on nearby housing, restaurants and retail businesses. The trickle-down effect spreads outward to hospital manufacturers, suppliers, pharmaceutical companies, and other ancillary firms that serve as the lifeblood of a functioning health care system. The economic activity of the medical business extends well beyond hospital walls; it’s a high-octane job engine, with the buying power of health professionals helping to sustain struggling communities.

    With current U.S. unemployment rates stagnating at high levels, the robust quantity of workforce activity resonating through hospital corridors is good news for our nation’s cities and regions. According to the U.S. Department of Labor, 1.7 million new jobs have been added to the health care sector since 2001. This figure includes employment gains in health insurance, construction, pharmaceuticals, biotech, the life sciences and other complementary fields. More impressively, the DOL estimates that by 2018 there will be a 21% employment increase in health practitioners (1.6 million jobs) and a 29% increase in health care support roles (1.1 million jobs). Health care also currently boasts the lowest unemployment rate of any industry, and salaries average a respectable $43,700.

    Cleveland, Ohio, is a prime example of a city that has undermined its economic potential by permitting dubious redevelopment efforts – centered on sports complexes and museums – to overshadow assets such as the Cleveland Clinic and the University Hospitals Health System, which together encompass 51,000 employees.

    Like most Rust Belt cities, Cleveland sorely needs an infusion of jobs outside of the long diminished blue collar sector. It could build collaboratively on its health care niche, creating complementary clusters of medically related firms in the life sciences and health information systems that would bring new opportunities and life to the area. The city’s world-class medical establishments could supply the ideal springboard for branding Cleveland as a global medical hub, rather than as the home of the Cleveland Cavaliers and the Rock and Roll Hall of Fame museum.

    One Cleveland-area organization, BioEnterprise, is taking the lead in fueling the growth and commercialization of health care companies in the bioscience sector. A collaborative effort between top medical and higher education institutions in the region, BioEnterprise is a promising attempt to alleviate Cleveland’s persistent difficulties in generating jobs and economic growth.

    The potential economic impact of new health related establishments is also gaining attention in Shawnee, Kansas, where the Economic Development Council is pursuing plans for a Biosciences Development District to attract high-paying job opportunities. And in Solano County, California, local leaders have made savvy use of existing infrastructure, new capital investments and local tax policies to fuel growth in the emerging medical sciences corridor between Sacramento and San Francisco.

    To build a successful future around health care jobs, cities must make creative use of their local and regional assets. For example, a four-year medical school in Spokane, Washington, according to a recent report entitled “America’s Next Great Academic Health Center,” would support more than 9,000 new jobs by 2030 and generate nearly 1.6 billion in new economic activity for the area.

    Here’s a concept of a model for job creation and economic growth: the Medical District Oriented Development (MDOD). These multidisciplinary districts would consist of a cluster of complementary stakeholders: health care entities (hospitals and medical centers, imaging facilities, community health centers, and private and specialty clinics); durable equipment manufacturers and providers, and pharmaceutical and life science research institutions. Livable communities, these districts would include housing, retail, and transportation options operating on the fringe of the medical campus setting.

    Unlike the much discussed Transportation Oriented Development paradigm, MDODs would not be faced with the “cart before the horse” issue; there wouldn’t be a question of whether to create demand before building the infrastructure or vice-versa. The magic behind MDODs would be a health care sector that already possesses a mature yet growing cadre of physicians, nurses, technicians and researchers who would serve as a captive audience for new development initiatives.

    In Sacramento, the U.C. Davis Medical Center campus possesses many of the building blocks of a successful medical district. As the flagship safety-net hospital for Northern California, the Medical Center has successfully collaborated with local task forces and associations to support the redevelopment of nearby neighborhoods, bringing new jobs to the immediate area. It has also spawned new workforce housing, restaurants and other amenities in an area that has faced hard times.

    In addition to collaboration between municipalities and medical institutions, and leveraging a region’s local assets, what else can cities do to manifest economic prosperity through health care centers? Chip and Dan Heath, the bestselling authors of Switch: How to Change Things When Change Is Hard, note that successful transformations begin when this question is asked: What’s working now and how can we do more of it? For city leaders, the question becomes: How can we capitalize on the booming health care sector through new investments in multidisciplinary medical districts, including housing and transportation options?

    When cities and regions choose to create synergies between their communities and their medical campuses, the prognosis is promising for an economic cure.

    Photo: Christiana Care health workers submit Magnet Recognition Program documents to the American Nursing Credentialing Center.

    Michael P. Scott is an associate with Centro, Inc, a Denver-based consulting firm focused on the future of our city centers. He can be reached at michael@becentro.com

  • Can The Suburban Fringe Be Downtown Adjacent?

    For many suburban Americans, the thought of migrating to a center-city environment holds an intriguing appeal, fueled by urbanists who tout the benefits of stunning cityscape views, walkability, proximity to civic and cultural amenities, and street vibrancy. I happen to be among those suburbanites who have harbored a secret fantasy of living in a dense downtown environment, replete with throngs of creative millennials roaming the streets, fancy coffee houses, and close access to fine dining. A decision to move from suburban Sacramento to Denver has been the result.

    The urban/suburban residential conundrum has generated epic debates that match the joys of city living against the benefits of suburbia. Terms such as “sprawl,” “drivable urbanism,” and the “slumming of suburbia” appear in the news regularly, often in an attempt to sway the pendulum in favor of dense city living.

    The tsunami of hoopla around “urban livability” has been of growing interest to my family and me as we prepare to relocate to Denver. I’ve come to believe the accuracy of the assertion, often voiced on this site, that America’s interest in suburbia has not abated. It has become abundantly clear from the brisk interest of potential buyers of our current Folsom, California residence, that living in a suburban locale still holds a special appeal. The environmentalist clamor aside, what people really want from a community is amenities that appeal to their specific interests. Folsom, a city of 72,000 nestled on the outskirts of Sacramento, offers myriad advantages for leisure — such as boating and biking — to basic requirements like low crime rates and quality schools.

    For us, the move to Denver is a transition from suburbia that’s been a challenge. Despite steady buyer interest, our 3100-square-foot house is still on the market. Suburban critics, like Urban Land Institute-fellow Christopher Leinberger, would likely cite a potential cause as being declining interest in what are affectionately known as McMansions, those big cumbersome houses replete with big lawns, big mortgages, and big utility bills. Demographic trends also show a steady rise in the number of adults without children, who are presumably less likely to purchase a big house. And, as a real estate professional pointed out to us, people are holding out for a windfall deal these days amid the abundance of foreclosures in the Sacramento metro area.

    Finding a family home in Denver has been even more interesting. While the downtown Lo-Do District has great appeal to us because of its vibrancy, civic amenities, and proximity to Coors Field (Rockies Baseball), Invesco Field (Broncos Football) and the Pepsi Center (Nuggets Basketball and Avalanche Hockey), it simply doesn’t strike my wife and me as the ideal environment for raising our seven-year-old daughter. The questionable schools in the city-center core were the deal breaker, and the catalyst for our decision to explore quasi- suburban areas on the fringe of downtown.

    As is the case with many downtowns across the country, real estate values in central-city Denver have taken a severe beating. With tepid demand, large inventories of condos have sat vacant for months, leading some developers to convert them into rentals.

    After several exploratory trips and careful consideration of our options, particularly since our house in California is still on the market, we elected to rent in a neighborhood called Cheeseman Park. An eclectic, diverse enclave just on the outskirts of downtown, the area offers the hybrid urban/suburban environment that we were seeking. It also has a top-notch elementary school for our daughter.

    Our choice of location within the Denver area seems to support a national trend that was much discussed at the recent Urban Land Institute Summit/ Spring Council Forum in Boston; namely, that the vast majority of population growth in U.S. urban regions will occur not in downtown cores, but in suburbs, and of those, most notably the close-in suburbs exuding an urban feel.

    This is something that leaders in our current home region of Sacramento failed to grasp recently. The City Council made the decision to pursue a mixed-use project with 256 housing units in the downtown core, over a more ambitious proposal outside of downtown featuring a complex with live music, a year-round farmer’s market, and a venue showcasing California’s rich agricultural history. The choice seems ill-advised, since previous downtown housing projects have failed, in part due to tepid residential demand.

    In the end, urban living has its benefits, although decisions to reside in a denser environment should be sprinkled with a dose of pragmatism. The large population is one factor that maintains Denver’s robust spectator sports scene, which is a huge draw for me personally. And, like many bigger cities, it also offers a wider selection of social and cultural activities than that of the Sacramento region. While urban housing has captured the imagination of many Americans, downtowns may be best suited for the role of civic and cultural centers – places that people come to visit, rather than where they reside.

    Photo by Michael Scott of a “suburban” neighborhood in Denver.

    Michael P. Scott is a Northern California urban journalist, demographic researcher and technical writer. He can be reached at michael@vdowntownamerica.com.

  • Denver Relocation: The Search for Higher Ground

    In 2003 our family relocated to Folsom, California from Carson City, Nevada, after my father-in-law was diagnosed with Parkinson’s disease, to help with his care. In many ways the transition felt like an immersion into what Joel Kotkin calls the “city of aspiration.” Folsom, a Sacramento region suburb of 50,000, was notable for its robust economy, impressive K-12 schools, world-class bike paths, and low crime. It offered a favorable environment for families and upwardly mobile professionals.

    Seven years later, the landscape has certainly changed. My father-in-law has passed on, and California’s high cost of living continues to have a profound impact on our personal finances. This scenario, coupled with the currently dire economic picture, gave my wife and I pause to again rethink our future path. After many long nights of thoughtful dialogue, we came to the realization that it was time to break ties with the Golden State. In early summer, Denver will become our next home.

    This pending relocation offers our family an opportunity to embrace what I call “the geography of place”— the merging of what one wants to do with where one wants to live. As a process, it embodies a deep exploration into our values and upbringing, hopes and fears, past and future. And while a move of any distance can be daunting, it’s this deeper journey of self that makes the experience rich and meaningful.

    Our plans come at a time of decline in nationwide domestic relocation. Prominent demographer William Frey, in conjunction with the Brookings Institution, led a recent study on migration trends. He found that in 2007-08, the overall U.S. migration rate reached its lowest point since World War II, particularly for long-distance moves and renters. His study also indicated that migrations to exurban and newer suburban counties dropped substantially, simultaneously bringing unanticipated population “windfalls” to many large urban centers. The overall rate of decline is largely attributed to the economic slowdown crippling many parts of the nation, leading to job and income loss as well as upside down mortgages.

    Deciding where to settle down during these uncertain times required a well-thought-out process grounded in a clear set of criteria. After much discussion, we developed the five-C approach to classify our optimum home locale:

    1. Culture: Our ideal environment should have a rich, culturally diverse set of demographics. As a biracial family, social acceptance in our community is paramount.

    2. Charm: Our perfect residential picture is a neighborhood that represents a hybrid of walkable urbanism, housing affordability, safety, and community, which are often found in more suburban environs.

    3. Community: We both enjoy opportunities for civic connection. Proximity to hubs of social connection – such as coffee houses and universities – is a must.

    4. Convenience: By choice we are a one-car household, which makes bicycle, light-rail and walkable accessibility to centers of city activity and conveniences key.

    5. Climate: As a native Midwesterner married to a Southern Californian, we found common ground in a locale offering a change of seasons with generally moderate temperature.

    The upshot of our vetting process had some correspondence with a recent Best Cities for a Fresh Start list compiled by relocation.com. Topping that list is Austin, Texas, an impressive city that I recently visited as a part of my urban research study tour. The Dallas/Ft. Worth area came in second, followed by Charlotte, North Carolina. Denver was fourth, with Columbus, Ohio (my hometown) and Indianapolis tying for fifth on the list.

    Our personal list yielded five locations:

    Portland, Oregon: This Pacific Northwest jewel has received much media attention for its progressive urban practices. And for good reason. It boasts strong community and civic vibes, great neighborhoods, a transportation system ranked among the best in the nation, and a hip, urbane population base. In the end, though, the overcast, rainy climate was too much to overcome in a transition from ever-sunny California.

    Ft. Worth, Texas: For economic vibrancy Ft. Worth, with its sister-city, Dallas, tops the list. It also has good reputation for housing options, schools, civic pride, and decent weather. On the downside, property taxes are a bit high (we estimate 6 to 10 times higher than Denver). And as a bi-racial couple we had some reservations since, as one area resident put it, “Texas is still the South.”

    Boise, Idaho: Despite concerns about Boise’s diversity, the area has extremely low housing costs. Its strong university presence (Boise State) and vibrant downtown were also appealing. On the downside, the airport would have posed some travel limitations. Moreover, the area lacks the depth of social and cultural options common in more urbanized settings.

    Indianapolis, Indiana: Having lived in the Indianapolis area in the early ‘90s, this state capital has always held a special place in my heart, with its strong African-American communities, myriad array of spectator sports, and low cost of living. While I’ll always be a Hoosier at heart, the advantages of this Midwestern city were outweighed by its bleak winter climate. My wife’s need for sunshine booted it out of contention.

    And then there was Denver.

    Denver, our city of choice, impressed us with its myriad quality-of-life intangibles. While not on the order of California, it is culturally diverse with a strong sense of civic vibrancy. The area offers a wealth of housing options that fit our parameters: semi-urban, walkable, affordable, and safe.

    Culturally, the city has a young, active vibe to it. People are involved in varied outdoor activities and events, which underscore the recognition of Denver as one of the most physically fit cities in the U.S. Many have also described it as unpretentious. It has a progressive political structure, as well as a strong economic development platform for the future.

    With a population of nearly 600,000, Denver is the 24th most populous city in the U.S. and the 16th most populous metropolitan area in the nation. Geographically, it’s located in the center of the U.S., nestled in a mountain range that makes harsh cold weather and winds a rarity. While the city gets its fair share of snow, the winter months are rarely bleak. In fact, a draw for many residents is the 300-plus days of sunshine the city receives each year.

    We stand to gain immeasurably moving from über-expensive California. And in terms of intangibles, several are prominent. We’re looking to capitalize on Denver’s new urbanist-influenced walkability. The city has lots of options, from the hip and trendy Lo Do District to the established community of Capitol Hill. A key requirement of our ultimate housing choice will be a quality school district, along with proximity to transportation, coffee houses, grocery stores, fine dining venues, and even co-working sites. In our current residence in Folsom, California, it’s a challenge to stroll by foot to area amenities.

    As intellectually inclined individuals, it was also exciting to find that Denver holds the distinction of being the most educated city in the U.S. with the highest percentage of high school and college graduates of any U.S. metropolitan area. According to census estimates, 92% of the metro area population has a high school diploma, and 35% has at least a bachelor’s degree, compared to the national average of 81.7% for high school diplomas and 23% with a college degree.

    And finally, as a former resident of Indianapolis, a city that fed my obsession for spectator sports, Denver’s robust athletics scene certainly raised my heart rate. The hub of professional franchises in football, basketball, baseball, and hockey, it is one of the nation’s top sports meccas. It has certainly sparked a picture in my mind of hanging out at sporting events, beer in hand, enjoying the scene.

    In the end, relocating to a new geographical locale is never smooth. It requires a great deal of thoughtfulness, conversation and patience. My family views it as the ultimate “Mile High” climb for higher ground amid the economic unsettledness currently affecting California. If well-orchestrated, the payoff will be significant: a better quality of life and a rich existence. That’s our hope; that’s our goal for 2010.

    Photo of Denver’s Lo Do district by Michael Scott

    Michael P. Scott is a Northern California urban journalist, demographic researcher and technical writer. He can be reached at michael@vdowntownamerica.com.

  • College Towns: High Marks For Lifestyle

    At a time when many cities are struggling to spur civic vitality, places that are home to major colleges or universities are percolating along robustly, often with healthy job growth, low costs of living and rising property values. Fueling this rise is the massive influence academic institutions have on their regions in terms of economic impact, civic connections, and innovative mindsets. Diverse spots — Columbia, Missouri; College Park, Pennsylvania; Raleigh-Durham, North Carolina and Chico, California, just to name a few — attract families, retirees, and the academically-minded. The migrants are drawn to the intellectual stimulation and community vibe.

    Universities have long served as incubators for fresh thinking and new research. They also provide a solid economic base for area residents, allowing college towns to hold the distinction as areas of low unemployment. The economic activity trickles down into the host city, influencing the ethos of its civic life, from outdoor leisure pursuits to the performing arts.

    For evidence, look at Columbus, Ohio’s capital city. In “Buckeye Nation,” the words ‘The Ohio State University’ mean one thing: football. Saturday afternoon crowds at Ohio Stadium are often in excess of 100,000; a major phenomenon. The steady fan base yields benefits for Columbus, the university’s home, in economic and cultural diversity: OSU has students from all 50 states and over 100 foreign countries, making it the largest student population of any single campus in the nation.

    The two-mile stretch of High Street in the university district presents an energetic cross-section of students, college professors, local residents and visitors, all drawn to the energy for which collegiate communities are known. Areas like the university district in Columbus are also robust real estate markets, as they attract steady streams of academics and students who seek housing.

    Even as the state of Ohio has been ravaged economically, Columbus recorded an unemployment rate of 8.9%, according to second quarter stats released by the Columbus Chamber of Commerce. That’s nothing to brag about, but certainly below the 11.2% and 9.4% rates, respectively, for the state and nation.

    This fact is consistent with recent studies which suggest that cities with a university presence have lower unemployment rates than in other locales. According to June 2009 U.S. Census bureau figures, Manhattan, Kansas, home of Kansas State University, came in at an unemployment rate of 4.6%, the second lowest small city rate in the nation. Iowa City, Iowa, where the University of Iowa is located, recorded a respectable 6.2%.

    University cities often experience strong job growth from start-up companies seeking to capitalize on readily available talent. The Research Triangle in North Carolina — Raleigh, Durham, and Chapel Hill – is perhaps the most striking example of a region benefiting economically from the presence of three major universities: North Carolina State University, the University of North Carolina, and Duke University. These three institutions are adjacent to regional research and technology firms that are on the cutting edge of important innovations. Emerging start-up companies in particular serve in essence as potential feeder systems for new graduates.

    Toward Virginia’s eastern border lies Charlottesville, an eclectic city of 40,000 and of the University of Virginia. It has a deep historical legacy as the home of three U.S. presidents (Jefferson, Madison, and Monroe) and is the locality of Monticello, Jefferson’s residence and a heavily visited tourist attraction. The university’s influence on Charlottesville is most notable in the faculty and student presence in the downtown district, which features a walkable mall as well as trendy restaurants. There’s also a bustling local arts movement.

    Charlottesville is also one of eighty-plus cities nationally that features college linked retirement communities: senior enclaves affiliated with education institutions that allow residents to audit classes and participate in other local learning opportunities. Students over sixty who have lived in-state for at least a year can also audit courses at the University of Virginia for free.

    According to Tom Wetzel, founder and president of the Retirement Living Information Center in Redding, Connecticut, the development of retirement communities near colleges and universities is a trend that is gaining momentum nationally. “Our information suggests that learning opportunities, as well as cultural, entertainment and sporting events, are attracting growing numbers of seniors’ to university cities,” says Wetzel. “These seniors tend to be intellectually curious.”

    Blacksburg, Virginia, is a another example of a city whose university serves as a catalyst for community vitality and economic growth. Home of Virginia Polytechnic and State University, Blacksburg offers the quintessential small-town collegiate environment. Nestled in a picturesque pleat between the Blue Ridge and Allegheny mountains, it boasts a moderate climate, reasonable cost of living and abundant leisure activities, many derived from its natural surroundings. Outdoor enthusiasts are drawn by the easily-accessible Appalachian Trail and Washington-Jefferson National Forest. Downtown Blacksburg features brick streetscapes, and unpretentious restaurants, coffeehouses, and watering holes, all within walking distance of the college. With its unique mix of local and regional amenities, Blacksburg is often among the top-rated cities for livability and outdoor activities.

    Davis, California is a college town that has formed a niche identity around its university. Known for its forward-thinking, ecologically based emphasis, the University of California Davis attracts a range of global scholar-practitioners who are committed to sustainable living practices. Recognized as one of the most educated cities in the nation (based on its percentage of residents with a graduate degree), Davis has evolved into a close-knit community of intellectuals, researchers and environmental advocates — some with official University affiliation; some not — pursuing advancements in such areas as hydrogen fuel cell technology, green building practices, and viticulture.

    Davis has also played a pioneering role as a bicycling community, featuring extensive bike lanes, paths and crossings, that create the backbone of the city’s social fabric. Thousands of residents, as well as students and professors, use this alternate form of transportation, creating massive daily seas of cyclists who navigate around campus and through the city’s downtown corridor.

    University cities represent a key engine for our nation’s economic emergence. But perhaps more importantly, they serve as vibrant centers of livability, built upon partnerships between higher education institutes and civic institutions; between academic researchers and businesses, and between students and the community.

    Michael P. Scott is a Northern California urban journalist, demographic researcher and technical writer. He can be reached at michaels@vdowntownamerica.com.

  • Downtown Central-Cities as Hubs of Civic Connection

    There’s been a torrent of spirited banter lately about the reemergence of downtown central-cities. Much of this raucous debate is between advocates of urban revitalization, who offer an assortment of anti-sprawl messages as justification for this movement, and those who see suburban growth options as essential to quality of life in America. Adding to the fray are environmentalists who see housing density and alternative forms of transportation as the panacea for confronting our carbon-choked world. Downtown central-cities, they say, will incentivize citizens to relinquish their cars in favor of bikes and walking paths.

    These discussions largely ignore a greater significance to the reemergence of central-cities; namely, the recognition of downtowns as the epicenter of civic and cultural activity. This represents a shift away from the traditional concept – barely a century old and now antiquated – of downtown as predominately an economic and job center hub.

    This primary role for downtowns has been declining since the 1950s. According to Robert Fogelson, professor of urban studies and history at MIT and author of Downtown: Its Rise and Fall, 1880-1950, after World War II, downtowns lost their prominence as places where people “work, shop, do business, and amuse themselves.” As he states in the book, “Downtowns were once thought to be as vital to the well-being of a city as a strong heart was to the well-being of a person.”

    Increasingly the word “downtown” has become associated exclusively with large urban centers, fostering images of traffic, crime, homelessness and other forms of unsavoriness. A closer look, however, reveals a wide range of downtown genres – small and large, central-city and suburban, safe and sketchy, chaotic and peaceful, established and emergent. Some downtowns are situated in major urban regions while others are nestled in small-town communities. The senior demographic is prominent in some, college crowd in others.

    This new assessment of downtown as primarily a center for civic opportunities makes sense and revives the ancient role of the plaza “forum” or “agora” concept–places that H.G. Wells affectionately referred to as ideal for “concourse and rendezvous.” This redefinition may bother some who wish to return to the downtown apex of the 1950s, yet the idea is both viable and sustainable.

    With the traditional town-center model serving as the hub of civic activities, residents and visitors alike are frequenting dining establishments, arts and music venues, and coffeehouses in the spirit of civic connection and community. No longer a phenomenon exclusively associated with young artists, bohemians, and intellectuals, the downtown experience is also drawing unprecedented numbers of older folks who appreciate the history, cultural significance, ambiance and architecture of the old core.

    Downtown planning efforts in many locales are responding to this surge of interest by creating a brand identity for their cities – Austin, Texas, has developed a vibrant music scene, with a number of entertainment venues tucked along its 6th street corridor; Indianapolis promotes itself as a spectator-sports mecca, with its downtown activity infused by a robust fan base frequenting college basketball tournaments, pro and minor league baseball games, and the nation’s largest sporting event: the Indianapolis 500; Chicago touts itself as a tourist destination replete with world-class museums, city and architectural tours, and fine dining in its vast downtown core. Smaller downtowns in cities like Davis, California, Evanston, Illinois, and Iowa City, Iowa, tap into a bustling college crowd from area universities.

    Traverse City, Michigan, with a population of over 15,000 (142,075 in the surrounding metro area) offers another model: the quintessential small-city downtown. Quaintly situated along the Grand Traverse Bay on Lake Michigan, the area is primarily known for boating, kayaking, and sailing, except in July, when the city hosts its annual, week-long Cherry Festival that attracts swarms of people to its historic downtown area.

    According to Rob Bacigalupi, Acting Executive Director of the Traverse City Downtown Development Association, downtown traffic is driven by the office population and events. “Downtown Traverse City has somewhere in the neighborhood of 3,500 office workers. Certainly that’s a small number by any measure, but for a town of 15,000, these workers provide a good base for retailers who otherwise have to rely exclusively on seasonal visitor traffic,” he says.

    In terms of a niche identity for downtown Traverse City, tourism seems to be front and center. The calendar is jammed with events, many of which are designed specifically to attract locals downtown. Other cultural activities, such as the Cherry Festival, Traverse City Film Festival and Horses by the Bay, draw visitors by the tens of thousands. Bacigalupi cites a recent convention and visitor’s bureau survey indicating downtown shopping as one of the main regional attractions. “There’s no doubt,” he says, “that regional tourist traffic is perhaps the largest driver of foot traffic downtown. This says a lot for a region that has a number of other attractions and activities to offer.”

    For many city leaders the potential impact of downtown on regional economics and culture is what’s creating the most buzz. Kansas City (Missouri), Roanoke (Virginia), and Asheville (North Carolina) are among a growing number of cities seeking to capitalize on their unique brand of cultural connection to generate badly needed tax revenues for their downtown areas. Some experts say this is a sound move amid tepid economic times as city and local governments look to draw customers from closer to home.

    This message rings true for economically ravaged Rust Belt cities like Cleveland, Ohio. For years, downtown Cleveland has struggled to survive – beginning in 1960 when manufacturing and heavy industries began their decline and the flight to the suburbs gained momentum. In 1978, Cleveland had the dubious distinction of becoming the first American city to enter into default since the Great Depression. Despite small glimmers of promise, downtown Cleveland has been stuck in neutral, unable to build a cohesive identity and direction.

    There are some successes though: Redevelopment efforts have transformed a downtown corridor along E. Fourth Street into a bustling fine dining and nightlife mecca, demonstrating the appeal that well-constituted areas have on the local populaces and tourists. And the area’s rich ethnic and cultural heritage shows promise as a catalyst for change in the central core. While all of this points to some progress for downtown Cleveland, it still must overcome a heavy stigma associated with crime, poverty, and a declining population base to truly achieve civic vibrancy.

    Many of our nation’s suburban communities are setting the pace for downtown civic connection. Naperville, a Chicago suburb and the fifth largest city in Illinois, has established itself as a model for suburban downtowns. This city of 142,000 residents features a cornucopia of sophisticated shops, restaurants and entertainment venues that attract foot traffic to the town center-oriented central district. Open space has been integrated into the cityscape through well-maintained walking paths along the DuPage River, which flows through downtown. Thoughtful planning for the provision of abundant, free parking, train accessibility, and bike lockups enables convenient accessibility to the area both day and night.

    Folsom, California, is indicative of a suburban community that fosters civic ties and activities through its historic downtown district. With a population of 70,000 this city located in the eastern portion of rapidly growing Sacramento County draws an eclectic crowd to its old town boardwalk setting replete with saloons, outdoor restaurants, and antique stores. The downtown core also serves as a gathering post for legions of bicyclists who have helped shape Folsom into one of the top bicycling communities in the nation.

    During summer, downtown Folsom hums with activity generated by two weekly events: Thursday Night Market, featuring live music, food and shopping, and the Sunday Farmers Market, where frequenters can purchase fresh, locally grown food from area farmers. Plans are afoot for a street-scape improvement and a storefront restoration – projects that are designed to preserve historic elements while enhancing the city’s tourism desirability. Also in the works are mixed-use housing units and a restaurant that incorporates a railroad roundabout. All of this comes on the heels of a new parking structure and ice-skating rink, which debuted last year.

    In the end, downtown central-cities seem poised to reclaim some of their prominence as magnets of culture and social connection. We may not be witnessing the rebirth of the great economic centers of the 1950s, but a revival of our central space represents a positive development for communities both large and small.

    Michael Scott is a researcher and writer focusing on the growth and sustainability of downtown central-cities. He can be reached at michael@vdowntownamerica.com.

  • Sports Complexes: Economic Prosperity or Pompousness?

    In the heart of downtown Indianapolis lies a recently constructed monolith, the envy of other cities aspiring for new digs for their NFL football team. Lucas Oil Stadium has 63,000 seats and features a retractable roof allowing for comfort control during Indiana’s fickle fall weather season. And for those urban enthusiasts in the crowd, when open, the roof provides a captivating view of an Indy skyline that in years past was barely visible to the naked eye.

    Many of the state’s residents though are asking why a new sports venue was built in Indianapolis. In fact, one only needs to take a drive along I-65, the main interstate bordering downtown, to get a taste as to why this issue keeps surfacing. Namely, if you look directly across the street from Lucas Oil Stadium, you’ll see a much larger structure that appears to be in relatively good condition. While many have confused it with a large spaceship, Indiana sports enthusiasts know it as the infamous RCA Dome.

    Home of the Indianapolis Colts for over 15 years and the site of numerous NCAA basketball regional and national championships, the RCA Dome has in many ways come to symbolize Indianapolis’ distinction as the sports capital of the world. The “Dome” also reflects Indiana’s lore and history as the hotbed of high school basketball, having served as a venue for annual state tournaments, including the highest attended game in our nation’s high school basketball history.

    So part of the argument among Indiana residents is that the RCA Dome was more than adequate (it actually has a larger seating capacity than Lucas Oil Stadium). The other gripe has been the cost: $720 million to be exact, financed by a nine-county food and beverage tax that passed in 2007. In other words, many of the state’s residents are footing the bill.

    Advocates for low taxes would certainly argue that building the new stadium was a pompous act on the part of city leaders, interested in only the local economic and financial implications. The argument can also be made that the stadium only benefits a small segment of Hoosiers, as many state residents, struggling to make ends meet in today’s tepid economic times, can’t even afford to purchase a ticket to the game, let alone a hot dog and parking.

    Indianapolis is not alone in terms of public outcry regarding new sports complex projects. The San Francisco 49ers are currently exploring a move to a yet-to-be built new stadium in Santa Clara, Calif., a city embedded in the ever prosperous environs of the Silicon Valley where money continues to flow like “milk and honey” despite the dot-com bust of several years ago. Recently the Santa Clara City Council put off a public vote on a whopping $916 million stadium initiative for at least a year in order to assess funding options as well as to allay environmental impact concerns raised by local residents.

    In the state capitol of Sacramento, where legislators have spent months grappling over an exploding state budget deficit, the talk of the town for months has been the proposed arena for the NBA’s Sacramento Kings–a movement championed by renegade owners Joe and Gavin Maloof with the support of opportunistic NBA commissioner David Stern.
    Caustic battles have ensued between supporters of the Kings who believe the sports franchise is vital for the city’s economic vitality and state voters who have been historically hostile to taxes for private sports facilities. The latter concern has been further fueled by the Maloof brothers who as millionnaire owners seem willing to cough up only a pittance of the new construction investment.

    Then there is Robert Kraft, owner of the NFL’s New England Patriots, who led the construction of a new shopping complex next to Gillette Stadium that at $300 million ended up costing as much as the stadium itself. Decked out with a football museum, four-star hotel and spa, restaurants and cool stores, “Patriot Place,” as this complex is affectionately named, aspires to provide year round pedestrian foot traffic as a major dining and entertainment destination.

    As the aforementioned examples highlight, there are certainly arguments that can be made against these sorts of expenditures, particularly during uncertain economic times for cities and counties. I would also argue that there may be strong reasons for constructing these sports complexes in terms of the boost they can provide to the economic and social prosperity of an area. Indianapolis is an excellent example of this in terms of branding itself as America’s premier sports city. It is clear that the city’s efforts to attract sports buffs from far and wide is vital to the sustainability of its local economic engine.

    The Colts are not the only game in town here: Indianapolis hosts more Olympic trials and NCAA basketball finals than any other city in the nation. It is also the home of the NBA’s Indiana Pacers, a franchise that plays its games in yet another downtown sports venue–Conseco Fieldhouse. There are also the Indianapolis Indians who play in one of the finest minor league baseball parks anywhere. And not to be overlooked is arguably the largest sporting event in the world, the Indianapolis 500. Mark Rosentraub a Professor at Indiana University, estimates that the speedway generates $36.5 million in state and local taxes annually. It should also be noted that the track is privately owned and races occur without public expenditures beyond local law enforcement.

    So what’s the verdict? A study by Dennis Coates, Professor of Economics at the University of Maryland, Baltimore County sheds some light on the “economic prosperity versus pompousness” argument. First of all his research reveals that there is little evidence that large increases in economic impact, particularly in income or employment, ensue from the construction of new stadiums. He does say however that Downtown stadiums are likely to have larger benefits than suburban stadiums.

    As I see it, this latter point is the magic behind Indianapolis’ efforts to promote sporting events as an economic catalyst — that outside of the Indianapolis Motor Speedway, all of the sports facilities are located in the downtown, central district. The evidence is clear that sports venues in the “Circle City” continue to generate loads of foot traffic and activity in downtown Indianapolis, from the bustling Circle City Mall to burgeoning crowds in downtown restaurants and music venues. One could in fact argue that all of this economic and community vitality in the city’s urban core would have made America’s preeminent urban activist Jane Jacobs proud and maybe even a frequent visitor to the city for a hot dog and a game.