Naturally Occurring Arts Districts

Oftentimes, when people are busy making the big plans, everyone else is working on the little plan.

Over the decades, a number of brainstorming sessions were held by our city's Convention and Visitors Bureau to see if a cultural district could be created somewhere in the downtown area. Overall, a great discussion to have, and one that sparked a lot of thought in the community about the importance of supporting local artists.

Initial discussion revolved around a large cultural arts center that would serve as an anchor to the area. Later discussions focused on how to create an area akin to Granville Island in Vancouver. Of course, Granville Island was a former industrial site into which the federal government poured nearly $20 million in development funds.

Granville Island

Although Granville is a wonderful destination for tourists and locals alike, not every city has the resources to create something on this scale. In fact, it could be argued that large, complex developments such as this are extremely risky to the developers or the municipality investing in the project.

We were all thinking big but it as it turns out, thinking small may have been the key to the success of our new arts area downtown--the North Village Arts District.

Lately, a lot of talk in the arts community has centered around Naturally Occurring Cultural Districts. Urbanonmibus.net interviewed two people highly involved in helping these types of arts districts develop organically.

According to Tamara Greenfield, Executive Director of Fourth Arts Block in NYC:

A Naturally Occurring Cultural (or Arts) District is distinguished by both its origins and organization. A NOCD (for lack of better term) supports existing neighborhood cultural assets rather than imposing arts institutions somewhere new. Traditional cultural districts are often used as a promotional tool to import visitors to a downtown shopping or commercial district and are generally centered on large institutions. The difference is important because each idea represents a distinct set of public values about what’s important to cities and what’s worth supporting. Understanding NOCDs can provide a framework to recognize and support a more inclusive, equitable vision of a neighborhood’s culture.

Caron Atlas, organizer with the Arts + Community Change Initiative, points out that:

If a cultural district has emerged 'naturally,' then it grows from, builds on and validates existing community assets rather than importing assets from outside a community.

Instead of developing a master plan for the creation of an arts district centered around a large-scale cultural institution, ours got off the ground through a combination of market forces and dedicated individuals. About the time Mark Timberlake purchased an abandoned roofing warehouse on the north edge of The District, I had been fielding calls from local artists looking for affordable studio space. He listened to this crazy idea and immediately set out to research it more--talking to artists and other groups to determine if it was actually feasible. Turns out, it was.

Orr Street Studios

Mark's efforts spurred the arts community to action as well as inspired other property owners in the area, namely John Ott, to develop arts-related spaces and to recruit artists and creative professionals to the area. These folks have become the core influencers of the arts district and are largely responsible for its current success.

The Berry Building

The result is that our downtown has an arts district that occurred naturally, and in a way that truly reflects our community. We have artist studios and galleries but the area is also home to a number of creative professionals as well as a grocery specializing in local foods and several live music venues. It's unclear if a larger master plan could have predicted what the community needed as well as the community itself did. And most importantly, the fact that it's grown organically over time bodes well for its long term success.

Restoring the Downtown Street Grid

Sometime in the next year, Austin will be adding nine new streets to their downtown, restoring the street grid and fixing what is called a "transportation dead zone." According to the Austin American Statesman:

(Director of the Downtown Austin Alliance Charlie) Betts noted that adding streets reverses what has been a sporadic trend of the downtown grid losing pieces of streets over the past several decades, including Colorado Street in front of the Governor's Mansion, East Ninth Street between Trinity Street and San Jacinto Boulevard at a federal office complex, and San Antonio Street at the Travis County Courthouse and just east of what will be the new federal courthouse. 

"The expansion of the grid has high value to the community," Betts said. "It gives some additional options for people to come into and exit from the central business district."

We have a similar problem here in Columbia where the traditional downtown street grid has been slowly deconstructed, usually for development projects that seem worthy at the time. Or, put differently, for projects that make sense only within the confines of the property line.

This is especially true on the northern side of downtown. A rail line running into downtown effectively shuts off the northeast quadrant from the surrounding neighborhoods. A large-scale federal housing project shut down more streets to the north under the mistaken belief that the residential neighborhood would be better off without people passing through to reach the city's central core. A later development project closed an entire city block to create a public square. The few streets that are still open dead end at a college. Now, people exiting downtown to the north must travel down a narrow, one-way road through a residential block.

A narrow, one-way residential street serves as one of the few
northern exits from downtown.

And this is not the only example. People exiting to the east--many of them students from the university--must also take a narrow, one-way road out, this time one that passes by a busy elementary school.

Even with this logistical nightmare, two other plans to close off streets connecting to the north side of downtown were proposed by government officials--one to create another public square and another to build a large parking garage. Thankfully, plans for the first were abandoned and city officials were persuaded to build a parking garage that spanned the street in the case of the second.

Unfortunately, it's easier to identify problems with the street grid than to fix them. Austin is building the new streets through land occupied by a newly decommissioned power plant and water treatment facility, solving the sticky problem of land acquisition. Still, the construction itself will hit nearly $25 million.

That said, I'm still fairly convinced that restoring our street grid starts with major downtown institutions gaining a larger understanding of the fabric of downtown, and an understanding of how people actually travel into and across our central city. All too often, large institutions--government, university and even private property owners--create plans that end at the property line, failing to understand that a single piece of property is a merely link in a much larger chain.

Urban Archaeology and Ghost Hotels

If you've ever remodeled your kitchen, you may have an inkling what it's like to renovate an historic building. Rehabs often take longer than planned because you simply don't know what you're going to find once you remove the drywall.

But what if the thing you find is a historic hotel?

In Orange, California, just west of the Plaza, stands an unassuming stucco storefront with a sign announcing the offices of "Ex-Mormans for Jesus." It's definitely not a historic storefront. In fact, much of the block lacks the historic character of the others radiating out from the Circle. What makes this section of the block different, however, is that a 125-year-old hotel lies hidden, like a Russian nesting doll, within the more modern building.

Passersby don't notice the hotel--I grew up in Orange and as many times as I walked through the Plaza, I certainly never did.  The folks at Haunted Orange, though, show that the rooftop is just visible from across the street.

Why has this hidden gem come to light now?  Wahoo's Fish Tacos has purchased the space--and the hidden Vineland Hotel--and plans a full renovation. They'll eventually use the building for corporate offices.

According to a report from their architect, Martin Eli Weil, the Vineland was originally built in 1886 as a private residence and was converted to a boarding house in 1888. It underwent numerous additions including, in 1917, the addition of the commercial storefronts in the original front lawn. (Okay, so it appears that these stucco storefronts have, at minimum, met the age requirements for a historic building. That said, it's still not enough to save them from the wrecking ball.)

The new owners certainly have their work cut out for them (check out Haunted Orange's website for some truly scary before photos.) No matter what they expect, those of us who've done remodels of our own know that there might be much more than a hotel hidden under all that siding and drywall. Regardless of what they may find, we wish them the best of luck with their project.

The Changing Face of Historic Renovation

When I first started as director of a downtown organization over a decade ago, my predecessor gave me one piece of advice: stay away from historic preservation. Apparently, she had once tried to establish a historic district but had been shot down by the board fairly handily.

It only took 2 years for everything to change.  Since 2002, our city has seen 24 historic tax credit projects that created 392 jobs, 180 housing units and generated over $75 million for the local economy. On top of that, we've seen some adaptive reuse projects that have given new uses to aging properties--a roofing company into art studios, a laundry facility into a coffee shop and ballet, and a grocery warehouse into loft apartments.

Why the turnaround?

I think part of the problem was a lack of understanding about historic preservation--what it entailed, what it required, and what it could do for the community. I quickly realized that most people thought that a National Historic Register Listing meant that the federal government automatically placed restrictions on a building, limiting the types of changes you could make to it and even prohibiting you from tearing it down. The reality is very different. Listing on the National Historic Register does not mean that you have to do anything to your building. You can even, heaven forbid, tear the thing down. Once we explained that federal and state renovation guidelines only applied if you were using a government incentive in the form of state and federal tax credits, property owners became much more comfortable listing their building on the Historic Register. In fact, once they realized they could use government tax credits to help fund their projects, many saw no problem meeting federal guidelines for their buildings.

Education is certainly important but the real reason for the turnaround, I think, was the work of one father/son team who took on the first Historic Preservation Tax Credit project in our downtown. The building spanned half a block and had been covered with metal siding back in the era where people were trying to solve their "downtown problem" by embracing a poor version of modernity. In fact, the upper cornices had been offhandedly chipped away in order to install the siding. To make matters worse, they covered all the windows as well. When the first section of siding was removed and the historic brick underneath was finally exposed, I think half of downtown stood out on the sidewalk marveling. The final result was the restoration of a beautiful historic building and the reclaiming of a section of Ninth Street that had been lost when the siding went up.

Now, nearly a decade later, historic preservation is a given in our community. It's added some traditional beauty to our cityscape, helped our local economy, opened up some underused sections of our downtown, added more retail and restaurant options, and even lead the way for other types of development incentives, such as TIF. When it comes to successful government initiatives, I don't think you can ask for much more.

The Limits of the Built Environment

Is it smart people that make cities thrive or is it a great built environment?

From Witold Rybczynski's Slate article on Edward Glaeser's Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Greener, Healthier, and Happier:

Glaeser defines the city as a "mass of connected humanity." His emphasis on human capital is important because politicians and planners tend to overvalue the physical environment. They encourage cities to look for the Next New Thing, whether it's pedestrian malls, downtown stadiums, iconic museums, or light rail. It is as if 13th-century European cities, envious of Venice's great commercial success, had said "Oh, that's the trick—we just have to turn our streets into canals." 

A New Downtown Hotel

We spend a lot of time here trying to make The District more attractive and more vital, but how often do we think about our gateways? They are the doors to downtown and create a first impression in the mind of a visitor.

The gateway at Providence and Broadway could use some improvement--and the consultants who put together the Downtown Columbia Planning Charrette tend to agree. Rangeline, our entrance from the north, is currently undergoing a major face lift thanks to efforts by Columbia College and the city. Coming into The District from the east is an attractive route, traveling past Stephens Lake Park and through the Stephens College campus. Until of course, you hit the Regency Hotel. It's one of the first downtown buildings you see and its 40-year old facade and crumbling parking lot can't make a great impression.

The current owners have done everything they can to improve this hotel but even they understand that the best solution is to build a new one. Hotelier Dave Parmley wants to do just that--build a Hotel Indigo, an upscale hotel designed for downtowns. He's applied to the city for TIF funding to make this happen and received the go ahead from the TIF Commission. On Monday night, he brings his appeal to the Council. The Board of the Columbia Special Business District supports this project and looks forward, not just to a new downtown hotel, but a more attractive gateway into The District.

An Arts District Comes Into Its Own

Last week I had the pleasure of sitting down with several of the movers and shakers in the North Village Arts District at a Tourism Breakfast hosted by the Columbia Business Times and I have to give them all kudos for what they've helped create.

Most of us remember when the area north of Broadway was more warehouse than art house. I even remember when we started calling it the North Village Arts District and the often tortured explanations as to what it was.  (Well, there's these new art studios...) Now, thanks to a lot of  hard work, artist recruitment efforts and property redevelopment, we're seeing a snowball effect in this area. The addition of PS: Gallery and Pure Exposure in the Berry Building is only helping build momentum. (Take a look at their Facebook page to get a sense of how many creative businesses have located there recently.)

If you look at master plans for downtowns across the state--and the nation, for that matter--many include an arts district with studios, galleries and a community of creative people. It's not just a development goal, it's an economic development one as well. While our arts district is progressing so well, other towns have not been so lucky. It takes a lot of things to make that happen--a vital and energetic center city, a wealth of city and non-profits who support the arts, affordable and eclectic studio and galley space, and a community of people willing to support the arts through their purchases.

So next time you're strolling along Broadway, take a quick walk up to Walnut and Orr and check it out for yourself.

Tax Increment Financing

There's been a lot of talk of a new development program called Tax Increment Financing (TIF). I've put together this overview designed to describe how this program works and highlight what TIF can do for a downtown.

TIF Overview.
Tax Increment Financing (TIF) is a way to help encourage the development of catalytic projects,particularly in a downtown area where lack of economic investment could eventually lead to blight.It's also reserved for projects that would not occur without this assistance.Any project can be submitted for review by the TIF Commission and to date, two projects have--a mixed use development on the corner of Tenth & Locust and the Tiger Hotel.The Tenth & Locust project is a combination of retail (possibly a grocery store) on the ground floor, offices on the second, and apartments on the upper floors.

The Tiger Hotel, a Columbia landmark, is currently unused save for a few offices and meeting rooms. (Bleu Restaurant is not in the Tiger building.) The project would rehab the
building as a boutique hotel.

What is TIF?
A TIF leverages the future taxes a project will create in order to help fund the project. How exactly does this work?

First, a property owner secures a bank loan for 100% of the project costs backed by his or her own collateral--the city does not guarantee the loan. If the project fails, the developer is on the hook for the entire amount.

Second, the property tax assessments are frozen at current levels. All taxing entities--city, schools,county, the Special Business District--continue to receive the same amount of property tax revenue as they do right now. Only the increase in property taxes goes to the project.

Third, the sales taxes are also frozen at current levels--but the increases are split between the project and the taxing entities. Any taxing entities receiving sales tax will continue to receive their current amount plus 50% of increase in sales taxes generated by the project.

Fourth, the increase in taxes is used to pay off a portion of the loan, usually 15-19%. TIFs usually take between 15 and 23 years to pay off, although a successful project can be paid off even sooner. When the loan is paid off, the tax revenues increase to their new levels and everyone benefits by receiving those additional revenues. The Special Business District benefits because not only do we have those new taxes (to help provide more services and programs) but we also have a new development that will serve as an economic catalyst in an area that sorely needed it.

What TIF is not.
• A TIF is not an added tax. Consumers will not be paying more for goods or services.
• A TIF is not funded by the city. A developer does not simply receive a check from the city nor are any taxes abated.
• A TIF is not secured by the city. A developer assumes 100% of the risk when it comes to the bank loan and the project itself. City bonds are not used.
• Tax revenues will not decrease. All taxing entities will continue to receive their current tax revenues and some will see an additional 50% of new sales taxes. All entities will see an increase in revenues if the tax rate increases.
• TIFs are not just for blighted areas. TIFs can also be used for conservation areas--areas that could become blighted if no action is taken to repair or rebuild the infrastructure, buildings,etc.
• TIFs are not suitable for non-profits. Because TIF is a tax-based incentive,organizations that pay no taxes cannot benefit. A non-profit that wants to use TIF must become a for-profit entity.
• Schools will not be overburdened. The schools will continue to received their current tax revenues and these projects--a hotel and apartments designed for adults without children--will not add more children to the school system.

Why do we need TIFs?
The future economic strength of The District depends on smart development projects--infill development projects built on empty lots, rehabbed older buildings, building up rather than out, and creating space for more residents. Even though the last few years have seen a building boom here in Columbia, very few of these building projects were located downtown. If these projects didn't happen in boom years, how can we expect them to happen now?

We can learn something from the significant increase in historic renovations downtown. This level of development would never have happened if not for the State Historic Preservation Tax Credit. This tax credit helped property owners bridge the gap between what the banks were willing to loan and what the project would really cost. TIF will serve this same function for larger projects, many of which are either new or ineligible for tax credits. Without this new incentive we simply won't see the catalytic projects needed to bring our city to the next level--nor will it help us compete with cities such as Springfield, St. Louis and Kansas City who are already using TIFs to create more exciting, attractive and economically strong downtowns.

Find me at www.discoverthedistrict.com.

From NIMBY to NIICHI

We're all aware of the NIMBY phenomenon--"Not In My Backyard"--but I've begun noticing a new one, NIICHI or "Not If I Can't Have It".

A small but vocal group of business and property owners recently came together in our city to oppose Tax Increment Financing, a new development incentive designed to encourage more downtown infill projects. TIFs are designed to keep the current tax revenue stream steady while using future taxes that will be created from the project to help fund the project. However, these opponents characterized the program a literally taking money away from the schools or the city and giving it to property owners--to the point where the public began to think that the developer was being handed a large check.

Their primary argument, though, was that they didn't have any help when they started their business, so why should someone else get help. Setting aside the fact these are public programs to which any qualified person can apply, it demonstrated a strong emotional undercurrent--a belief that there are limited resources and helping one person necessarily means another will be harmed. (Interestingly, the two projects under consideration were a hotel and an apartment building--both guaranteed to bring new customers into their businesses. In other words, two projects designed to increase the size of the pie.)

Part of this stems from what's happening at the national level. With the downturn in the economy, both the past and the present administration have supported wide-ranging stimulus packages in an attempt to get it back on track. Government stimulus means that future tax dollars are being used to help out certain groups of people today. For someone struggling to support their own family and manage their debt, this is easily seen as a program designed to take money out of their pocket and give it to someone else.

This may be a passing phenomenon--people feeling the pinch of a tight economy--but it's something to watch for. How can we do a better job of explaining a development incentive as something that creates a bigger pie? Better yet, how do we do a better job of designing incentives so that everyone feels the benefit?

Find me at www.discoverthedistrict.com.