Posts Tagged ‘redevelopment’

Jane Jacobs is perhaps the most influential writer on urban redevelopment in our time.   Her book, The Death and Life of Great American Cities, is a bible to many on what works and doesn’t in urban revitalization.   In it, she argues that the infusion of large sums of government money into revitalization projects is cataclysmic.  Instead, gradual money that ebbs and flows, fails and succeeds, is what is needed.

The very premise that a large infusion of government money into downtown Trenton will help, no matter how tempting, is fundamentally flawed.   We don’t have to re-read Jacobs to understand this.   Over $150,000,000 in government funds were spent in Trenton 20 years ago to build what Messer’s Palmer and Prunetti called the “Opportunity Triangle”:  The ballpark, the arena and the hotel.   The promise was that these large government investments (yes, our hotel was owned by the city) would stimulate other development in Trenton.

IT NEVER HAPPENED!

Palmer and Prunetti were wrong, way wrong.   They proved how wrong politicians can be at great public expense (the hotel went bankrupt). Bob Prunetti, defended another government project, Thomas Edison State College’s development of Glen Gairn Arms site, by claiming that the patrons at the ballpark were stimulating development as late as 2014.   There is no evidence of this at all.  He was making up a conclusion that was not founded in fact.   Palmer, as late as 2013 told me that he always wanted to sell the hotel to a private owner, yet he never did. After he left office, the hotel, that was built for $60,000,000, was sold in a fire sale for $5,000,000.   Trenton taxpayers lost millions.

So why is it that the Trentonian thinks these two should have an audience regarding the use of public funds in Trenton redevelopment?  (Guest Oped: Palmer and Prunetti: Trenton needs to follow successful examples from other cities)

They shouldn’t.

They had their chance and don’t have anything to show for it.  In the 90s, when they were in power, the country grew economically while Trenton slid backward.   They simply failed to position Trenton to ride the wave of growth that swept the country and  therefore set the city up for the current trend in urban re-population.

Even one of the examples of success they reference in their Op-Ed,  an expensive but uncompleted project in Atlantic City is dubious.   A project that hasn’t even been completed can’t, by definition, be called an economic development success story.  Spending money with no results isn’t success. Who would think otherwise?

Governor Christie’s plan for Trenton has already been roundly criticized by citizens that actually live and work in downtown Trenton.   It’s a tone-deaf proposal that Ms. Jacobs would have railed against.

Prunetti and Palmer propose to change the investment a bit and morph it in to different mixed use project.   However, this still represents a big, risky government directed project.  It’s fundamentally predisposed to have cataclysmic results like stifling streetscapes, crowding out other projects or simply failing (like the hotel).

Who knows why these two former politicians decided to pitch this specific plan.  Perhaps they are somehow connected to it?   Perhaps they haven’t learned the lessons of cataclysmic government money and really think this will work?   I don’t know.  What I do know, and all rational Trentonians should know, is that their track record has been disastrous for Trenton.   The Trentonian has done a disservice to Trenton in publishing their Op-Ed and giving it the credibility that comes with “print”.

The fundamental reason Trenton has abandoned / vacant properties in Trenton is that it costs more to rehab a property than it would be worth once completed.   We can help developers and potential homeowners by lowering their financial cost, establishing a more fluid market for vacant / abandoned properties and creating a marketing message that includes more people who might be interested in living in Trenton.

I estimate the number of abandoned / vacant properties to be over 3,300.

In general Trenton will have to attack the problem of revitalization of abandoned / vacant properties one neighborhood at a time starting with downtown.   We don’t have the resources, yet, to address the entire city at once.

Our efforts will address both city owned and privately owned abandoned, vacant and underused properties.   For city owned property our goal will be to get them on the tax rolls, not make money from selling them.

1) Lower the cost of revitalization

Enhance our tax and subsidy package for redevelopment

• A standardized Revenue PILOT for large projects reduces risk for developers and provides transparency for all taxpayers into how the city works with large developers
• A graduated abatement on improvements of up to 15 years.  This includes the existing 5 year abatement plus a new abatement in redevelopment areas as per NJ law
• We will add an additional subsidy on improvements in the downtown district

Reduce risk for redevelopers by

• Improving the public safety situation while development is going on
• Increasing code enforcement on adjacent buildings in focus areas

Launch Homesteading in a few neighborhoods

• Properties will be sold to homeowners for $1
• Abatement Programs will apply
• Buyers will be matched with local contractors and architects where needed
• Neighborhoods will apply to participate and will be required to show support

Demolition: where a buyer wants it and our professionals agree it’s appropriate, we will sell a property to a developer, cleared.

2) Establish a more fluid market.

Use the NJ Abandoned Properties Act in Trenton for the first time.  It’s been used now in Jersey City

Track all vacant properties with help from

• Efforts from non-profits like Isles, TCCA
• Expanded responsibilities in our economic development and inspections department to track and identify vacant properties (our proposed budget will include funding for this)
• Making a city-wide ticketing system available that allows residents to report abandoned properties

Outside Legal help on Closings to speed up a process that has been woefully slow and disorganized

4 hour inspections appointments instead of the current practice of allowing 22 days to review simple plans

3) Create demand by

Establishing a public / private marketing entity “Trenton Sells” co-founded with realtors and developers. This group will be the conduit for our marketing efforts.  It will:

• Publish a web site and newsletter
• Target Millennials along the Northeast corridor
• Publish our vacant property inventory on the web site
• Hold regular Open houses for the city

Matching up homebuyers with architects and contractors.   We can make renovation easier for buyers buy helping them find local development help that knows how to work in Trenton

Developing a neighborhood level branding plan. Neighborhoods will have the opportunity to sell their neighborhoods by establishing the right message. Hopefully the Master Plan includes this work

Pitching to New Urbanist Developers. There are developers who specialize in building urban neighborhoods.  They are part of a large and growing national trend.  A revitalization-minded Economic Development department will seek out these developers and invite them to Trenton.

Key Reorganization tactics

Reorganize inspections under the Economic Development Department. This will focus inspections on the job of meeting our goals

Set measurable goals that require us to put property back on the tax roles

• Increase our ratables by 10%
• Increase our population to 90,000
• Track our progress on reducing abandoned properties

State regulatory Asks

The job of a Mayor is to make sure the State is working for us, not against us.  A Trenton Mayor should work with our legislative team and urban Mayors across the state to enact pro-redevelopment legislation.

Land Banks: Potential enhancements to our ability to use Land Banks beyond what is currently in the Abandoned Properties Act.  We want to provide mechanisms engage for-profit firms to help and to make sure our laws help us deal with quiet deeds and that they don’t prefer subsidized housing.

Land Value Tax: A two tier tax system can be used to make it harder to hold on to vacant land and profitable to develop it.  Land Value Tax legislation would provide a cleaner mechanism to encourage redevelopment than tax abatements as it would be available to all property owners.

Urban Income Tax Zone: Push to have Trenton become a test city for an urban income tax zone.  The maximum income tax bracket in Trenton would be set at 2% instead of 5% making it very attractive for higher income New Jerseyeans to move to Trenton.

Economics is all about the choices humans make and in the aggregate human societies (micro economics and macro economics).  Negotiating can be thought of as a specific case of micro economics closely linked to the core concepts of marginal utility and marginal value.  Therefore, Reinvent Trenton is taking this opportunity to explain basic concepts in negotiation and the role of eminent domain in them. Read the rest of this entry »