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New Downtown Partnerships: Local Governments, State Leagues, and State Governments

By Doyle G. Hyett and Dolores P. Palma
HyettPalma, Inc.
Making Downtown Renaissance a Reality

Some of the most aggressive, progressive, results-driven Downtown enhancement programs today are being brought about by new three-way partnerships among local governments, state municipal leagues, and state governments.

As noted in the December 1, 2003, issue of Downtown Idea Exchange, the America Downtown® program — designed and offered at the national level since 1992 by the National League of Cities (NLC) and HyettPalma — has fostered the creation of three state Downtown enhancement programs, including the Indiana Downtown® program, Blueprints for Michigan Downtowns program, and the most recently launched Blueprint for Pennsylvania’s Downtowns program.

In each of these three new partnerships, the roles are very much the same.

  • State municipal leagues provide technical assistance to their membership in the preparation of Downtown enhancement strategies, consistent with the tried and tested methodology designed for and employed by the America Downtown® program, as is the case in Indiana and Pennsylvania, with the Michigan Municipal League serving as the conduit that introduces its members to the Michigan Blueprints program;
  • State governments provide partial funding, as is the case in all three states through different programs and grant sources, and technical assistance, which is the case in Indiana and Michigan; and
  • Local governments provide leadership, partial funding, and initiate partnerships with Downtown businesses, the non-profit communities, and the general public, as is the case in all three states.

These new partnerships are emerging because all three entities — local government, state government, and state municipal leagues — are realizing that Downtown revitalization is local economic development. All realize that there are fewer industries to chase and courting those industries is very expensive, most often beyond the means of small cities and towns, and, in most cases, fruitless exercises since most industry is contracting, not expanding.

The reason that these critical economic development players have looked to the America Downtown® model is obvious. It works. And, it works because it is market-driven, implementation-oriented, inclusive, and builds constituency for both Downtown and local government.

When HyettPalma coined the term “market-driven” approach in the early 1980s, to us this meant rather than simply working to enhance the aesthetic of Downtown, we should be just as concerned with the economic posture of Downtown as we were with the look and ambiance of Downtown. Until this time, the mantra of the Downtown revitalization business was to mostly dwell on the look and feel of a place. Not that the look of Downtown was not important in the 1980's, just as it is today, but while Downtowns should be attractive, if they were not economically viable it appeared to use pretty meaningless to continue propping up declining real estate with, in many unfortunate cases, good money chasing bad ideas.

NLC, representing both local governments and as the “mother ship” of all state municipal leagues, liked the fact that the market-driven approach to Downtown revitalization engaged constituents through visioning and market analysis at the start of discussion. To NLC, this was the real essence of how economic development should work at the local level. Rather than telling people what they needed, or rather what it was thought they needed, the market-driven approach necessitated asking them what they wanted in Downtown (through visioning) and determining what they had the ability to support in Downtown (through an analysis of the marketplace.) This was a simple but, at the time, different way of thinking — from a professional and city hall-driven perspective. It was constituent building, which elected officials understood, regardless of their field of expertise or lack thereof. In fact, it was a reversal of thinking. Rather than the professional being the expert in what should be done, the roles were reversed. The people — read constituents to the elected person — were the experts in what should be done. The professional’s job was transformed to expeditor charged with empowering constituents to think as consumers and consumators (implementors.)

The market-driven approach is very transparent and not at all mystic. It works because those who do rather than plan or talk about doing are involved at the start. And, participants are not asked to follow a template for revitalization. Those involved are the people of the community. And, the enhancement strategy resulting from the market-driven approach is based on the values, character, aspirations, and abilities of the community.

The market-driven approach entails:

  • Envisioning Downtown’s future with those in the marketplace;
  • Completing a market analysis to define and refine Downtown’s market desires and potentials;
  • Crafting aggressive strategies to attain the vision for Downtown and capture Downtown’s market opportunities;
  • Forming a committed Downtown partnership to oversee the implementation of enhancement actions; and
  • Identifying a dependable stream of funding to implement actions, garnered from those who stand to benefit from a better Downtown.

The benefits of the state government/municipal league/local government Downtown revitalization partnerships include:

  • Tangible results in a short amount of time;
  • Increases in government, lender, and investor confidence in Downtown;
  • Increased private sector investment;
  • Re-inventing Downtown’s economy;
  • Long-term economic sustainability for Downtown;
  • Reversal of negative local attitudes (skepticism and defeatism); and
  • Leadership, communication, cooperation, and mutual respect among private and public sectors.

As Tip O’Neill once said, “All politics are local.” Maybe the same holds true for economic development. This certainly seems to be the case with Downtowns. And, the state government/state league/local government partnership approach to Downtown revitalization is proving the point that Downtown revitalization is local economic development in its truest form.

About the Authors

Doyle G. Hyett and Dolores P. Palma are the founders of Hyett Palma, Inc., the only national consulting firm specializing in the economic renaissance of Downtowns and older business districts. Since being formed in 1985, the firm’s work has restored confidence and stimulated private investment in hundreds of Downtowns nationwide. In addition, HyettPalma provides all technical assistance for the America Downtown® program (offered by the National League of Cities) and the Indiana Downtown® program (offered by the Indiana Association of Cities and Towns). The firm was recently selected to complete 10 Downtown economic enhancement strategies in Michigan in association with the Michigan Economic Development Corporation’s new Blueprints for Michigan Downtowns, which was collaboratively created in association with the Michigan Municipal League and the Michigan State Housing Development Authority.

For more information about HyettPalma, please visit www.hyettpalma.com.

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