Turnaround Towns: International evidence · 2018-04-27 · 2 Turnaround Towns: International...

Turnaround Towns: International evidenceJane-Frances Kelly

Turnaround Towns: International evidenceb

ACKNOWLEDGEMENTSI am grateful to the Carnegie UK Trust for the opportunity to undertake this work. Particular thanks are due to Douglas White and Jim Metcalfe for their support and patience as I searched for good case studies in an under-researched field, and to Rebekah Menzies for her work in preparing the paper for publication. We would also like to thank all those officials and others around the world who took the time to fact-check our research and talk to us about their towns – their knowledge and expertise were vital to our efforts.

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Flourishing Towns

Research

Turnaround Towns 2016

1Turnaround Towns: International evidence

Contents

1. Foreword 2

2. Introduction 3

3. ResearchingTurnaroundTowns 6

CaseStudy1:TupeloandHavenAcres,Mississippi 8

CaseStudy2:Douglas,Georgia 12

CaseStudy3:Duluth,Minnesota 15

CaseStudy4:Paducah,Kentucky 18

CaseStudy5:Allentown,Pennsylvania 20

CaseStudy6:Newcastle,NewSouthWales 22

CaseStudy7:Oamaru 24

CaseStudy8:Altena,GermanyandPori,Finland 27

4. Conclusionsfromourresearch 29

5. NextSteps 34

Annex 35

Bibliography 36

Turnaround Towns: International evidence2

TownsareimportantplacesintheUKandIreland.Two-thirdsofusliveinsmallandmedium-sizedtowns.Theplaceswherewelivehaveahugelysignificantimpactonoursocial,economic,environmentalanddemocraticwellbeing.Thehealthofourtownsisthereforeofcriticalimportancetothewellbeingofmany–atbothanindividualandcommunitylevel.TheCarnegieUKTrust,asoneofthelargestpolicyandpracticeinstitutionsintheUKtobetown-based,recognisesthis.WehavetakenthedecisiontofocusontownswithinourcurrentStrategicPlan,tostrengthenourpolicyandevidencebasearoundwhatworksfor‘turnaroundtowns’,andtocontinuetoplayaleadingroleinpracticalapproachestotowns’innovation.

Understanding what works

Thisreportisourfirststeptowardsabetterunderstandingofwhatworksforwhatwearecalling‘turnaroundtowns’.Itseekstostrengthenourresearchandevidencebaseontownsbysettingoutaclearpolicyframeworkforunderstandinganddevelopinganarrativeabouthowthefortunesofatownmightbetransformed.Wehavelookedaroundtheworldtofindexamplesoftownsthathavesuccessfullygonethroughsuchatransformationprocess,drawingkeylessonsfromeightcasestudiesfromacrosstheUS,AustraliaandNewZealand,andEurope.Thisreportaimstohighlightkeylessonsandthemesthatappearacrosstheeightcases,focusingonthemostsalientpointsforpolicymakersandpractitionersintheUK.

Inembarkingonthisproject,wewereclearthatwewerenotseekingthemostglamorousoreye-catchingprojects.Insteadwewantedtofindevidenceofreal,solidprogress,oftenachievedindifficultcircumstanceswheretheanswerswerenotobvious.Insuchprojects,webelieve,themostusefullessonscanbefound,whichhaverealrelevancetotownsexperiencingsimilarlychallengingconditionsintheUK.

Findingthesecasestudieswasnoteasy.Thisisanunder-researchedareaofpublicpolicy,reflectingthehigherprioritythatisoftenattachedtocityorruralissuesinspatialpolicydebates.WeareextremelygratefultoJane-FrancesKellyforherdiligence,energyandskillinfindingtheseeightexcellentexamplesandtellingtheirstories.

Contributing to a global debate

Thisisanopportunetimetobelookingatwhatworkstosupportinnovativepolicyandpracticefortowns.The2016WorldTownsLeadershipSummitandresultingWorldTownsFrameworkhavere-energisedtheglobaldebateandpolicyagendaaroundtowns,whileanumberofpromisinginitiativesareemergingacrosstheUKandIreland.Wehopethatthisreportwillbeavaluablecontributiontothisemerging,highlyimportant,areaofwork.

Martyn EvansChiefExecutive,CarnegieUKTrust

1. Foreword

Thisreportsetsoutsomeremarkablestoriesoftownsfromaroundtheworld.Thesetownshaveexperienceddifficulttimesbuthavemadesignificanttransformations,greatlyimprovingthewellbeingoftheircitizens.



Towns and wellbeing

Theplaceswherewelivehaveasignificantimpactonoursocial,economic,environmentalanddemocraticwellbeing.

IntheUKandIreland,two-thirdsofpeopleliveinsmallandmedium-sizedtowns.Halfofallbusinessesarebasedintownsandalargeproportionofpublicandvoluntaryservicesareprovidedthroughthem.Thestatusofourtownsiscriticaltoourwellbeingandprosperity.

Yettownscanoftenstruggletosecureattentioninthepublicpolicyarena:toattractfundingandinnovation,andbuildpartnershipstosupportreformandprogress.Townscantoooftenbecrowdedoutbypowerfulvoicesrepresentingbothruralandmetropolitaninterests,andthedialoguearoundtownstendstofocuson‘saving’or‘preserving’,ratherthan‘progressing’or‘rethinking’.

TheCarnegieUKTrusthasastrategicpurposetoimprovethewellbeingofpeopleintheUKandIreland,withparticularregardtopeoplewhoaredisadvantaged.TheTrusthasidentified‘FlourishingTowns’asoneofitsthematicprioritiesinits2016-2020StrategicPlanandisinterestedintheinnovation,regenerationandsustainabilityoftowns.TheTrustisoneofthe

largestpolicyandpracticeinstitutionsintheUKtobetown-basedandinrecentyearshastakenstrategicresponsibilityforleadinginnovationfortowns.Since2013,theTrusthasundertakenpracticalinitiativesonenterprisingtownsthroughTestTown,improvingthedataavailableabouttownsthroughUnderstandingScottishPlaces(USP)andhasbeeninvolvedindiscussionsontheScottishGovernment’sTownCentreReviewandsubsequentActionPlan.TheTrustisalsoasignatorytotheTownCentreFirstPrinciple.

Turnaround Towns

ThisreportseekstostrengthentheTrust’sresearchandevidencebaseontownsbysettingoutaclearpolicyframeworkforunderstandinganddevelopinganarrativearoundwhatworksfor‘turnaroundtowns’.

Townscanfallondifficulttimesinarangeofways,including:dilapidation,deprivation,amoribundeconomy,lotsofpeopleleaving,oralloftheabovetogether.Badtimescancomeforarangeofreasons–achangingeconomy,demographicsand/ornaturaldisaster.Awell-knownexampleoftownswhoseraisond’etrehasfadedareBritishseasideresorts,whichusedtobepackedwithholidaymakerswhocannowtakecheaperflightstolessuncertainweather.

2. Introduction



‘Turnaroundtowns’refertocaseswhereatownhadpreviouslyfallenondifficulttimes,butwhereimprovementresultedfromdeliberateeffortstoaddresslocalchallengesacrossanumberofdimensions.Theseincludeenergisinglocaleconomiestoencouragingasenseoflocalplace,identityandsocialconnections–andtheyhavesucceededinbuildingtownsthatarelivelyanddynamicplacestolive,workandvisit.

WiththeWorldTownsLeadershipSummitheldinEdinburghinJune2016,itisanopportunetimetobeginadiscussiononwhatworksfor‘turnaroundtowns’.TheWorldTownsFrameworktouchesonmanyofthesamethemesidentifiedinthisreport,includingtheimportanceofnarrativesaroundplace,collaboration,andstronglocalleadershipasimportantforsuccessfulplace-makingoflocalplacesforlocalpeople.ThisreportmakesadirectcontributiontotheinternationaldebateongoodpolicyandpracticefortownsthathasbeenstimulatedbytheWorldTownsFramework.

The Research Study

Theresearchstudypresentseightinternationalcasestudiesoftownsthatarewidelyrecognisedashaving‘turnedaround’.TheseareshowninTable1.

LookingatturnaroundstoriesfromothercountriescanexpandoursenseofwhatispossibleandraiseourambitionintheUKandIreland.Wecandrawasetoflessonsthatmightbeofassistancetotownshere.Theexperienceoftownsoverseasobviouslycannotbeimportedwholesale,butwherethemesemergeinarangeofplaces,theyareworthpayingattentionto.Weareinterestedinpolicylearning,notpolicytransfer.Ofcourse,usefulinsightscanbebettergleanedfromplacesthataremostcomparabletotheUKandIreland.WehaveconcentratedonNorthAmerica,AustraliaandNewZealand,andmainlandEurope,asplaceswhich–broadly–haveliberaldemocraticpoliticalframeworkssimilartoourown.

Turnaround Town Country Population Turnaround Story

1 Tupelo and Haven Acres

Missippi,USA 36,000 Tupelo1940sonwardsHavenAcresbeganlate1990s

2 Douglas Georgia,USA 11,500 2000–2011

3 Duluth Minnesota,USA 86,000 Mid2000sonwards

4 Paducah Kentucky,USA 26,000 Beganlate1980s

5 Allentown Pennsylvania,USA 118,000 Mid2000sonwards

6 Newcastle NewSouthWales,Australia 288,000 Begins2008

7 Oamaru SouthIsland,NewZealand 13,800 Beginslate1980s

8 Altena and Pori GermanyandFinland 18,000and83,000 Began2008and2003

Table 1

Eachoftheeightcasestudiesincludedanalysisof:

• whatthecontextwasinthetownbeforeturnaroundeffortsbegan(includinganalysisofeconomichistory,demographicshifts,placeinthesurroundingarea,andexperiencesofdecline);

• whattheresultswereoftheeffortstoturnaroundthetown;and

• whattheturnaroundstoryineachtowninvolved–whowasinvolved,whathappened,whatwassuccessfulandwhatwasnot,andhowlongdidtheturnaroundprocesstake.


Whileeachturnaroundtowncaseisunique,therearecommonthemesacrosseachthatcaninformourframeworkforunderstandingwhatworksforturnaroundtowns.Wehavedeliberatelynotincludedtownswherecircumstancessimplycameroundagaintofavouringinherentcharacteristics.Location,orwhereimprovementresultedsolelybecausethetownpossessedauniquelyattractiveasset–suchasbeautifularchitecturewaitingtoberestored–meanonlylimitedlearningforotherscanbedrawnfromsuchexperiences.

However,duetolimitationsofexistingresearchinthisarea(describedfurtherbelow),itshouldberecognisedthatnotallthecasestudiesareperfectexamplesofthekindsofturnaroundwesetoutabove.Someofthetownsbenefitfromexistingassets,likethebeautyofDuluth’snaturalsetting,orthepresenceofOamaru’slittlebluepenguins(thoughboththesetownsalsoputinalotofeffortonotherdimensions).WehavealsobrokenourownrulesaboutthemaximumpopulationofatownwithAllentownandNewcastle,butthoughttheywereneverthelessstoriesworthtelling.ManymoreturnaroundcasesaredocumentedintheUnitedStatesthananywhereelse,andsoourcasestudiesareweightedtowardsAmericantowns.Incontrast,wecouldnotfindanyfullydocumentedturnaroundsinEurope,butwehaveincludedshortoverviewsoftwoEuropeanUnion-fundedtownprojectsthatfeatureanumberofcharacteristicsrelevanttothisstudy.

Itisworthnotingthatthedistinctionbetweentownsandcitiesisdifferentlyunderstoodindifferentpartsoftheworld.Manycountriesdonotdistinguishbetweentownsandcities,andthetermcanbeusedinanumberofways.IntheUS,‘smalltowns’oftentranslatetopopulationsofunder3,000,andevenunder300,while‘smallcities’canhavepopulationsanywherebetween1,000andseveralmillion.Intheeight‘booktowns’oftheInternationalBooktownAssociation,populationsrangefromthe318peopleinFjaerlandinNorway,to3,500inClunes,Australia.Forthepurposesofthisresearch,weprimarilysetouttolookforplaceswithapopulationbetween5,000and95,000,arecognisableidentityandhistory,andwhichhaveoneidentifiablecentre,ratherthanmultipledistrictcentres.

8

8

6

7

2

34 5

1

North America

Europe

Australia and New Zealand


Thisisimportant.Ifweknowmoreaboutwhatworks,scarceresourcescanbespentonprovidingsupportthathasmorechanceofworkingthanpiecemealprojectsorfallingforthelatestfadinurbanregeneration.Well-documentedstoriesoftownsthathaveturnedaroundcanalsoprovideinspirationthatcanhelpwhenthegoinggetstough.

reports,thinktanks,andnationalorstate-levelorganisationsfocusedonissuessuchasplanningandeconomicdevelopment.WealsolookedatjournalismsuchastheAtlantic’sAmericanFuturesproject,whilelocalmediawasusefulforinterviewswithlocalleaders.Allsourcesaredocumentedinthefootnotesandinthebibliography.

b) There is extremely poor availability of data about towns.Thisisintermsofscale,timeframeandissue.Becausedataarecollectedinlinewithinstitutionalorgovernmentboundaries,dataareoftennotgatheredorreportedatthetownlevel.Robustdatacollection,suchascensuses,occurrelativelyinfrequently,andmanyofthethingswecareabout–suchassocialconnectionorsenseofplace–arenoteasilyquantifiable,andthereforetoofrequentlyareignored.

c) Towns research is plagued by terminology issues.Duetothelackofclarityaboutthedifferencebetweentownsandcitiesindifferentcountries,researchmarkedasbeingabout‘towns’oftenturnsouttobeaboutsettlementsmuchlargerthanourdefinition.Sincegovernancearrangementsareapoorguidetotherealcommunitytoday(theyinvariablyrelatetohistoricalcircumstances),carefulexaminationisnecessaryofpopulationstatisticsandmapsshowingtheextentofbuilt-upareas.

d) Whereresearchiscarriedout,ittendstofocus on one particular dimension,egretailmanagementintowncentres,environmentalsustainability,orparticipatoryplanningprocesses.Indeed,thefocuscansometimes

3. Researching Turnaround Towns

Thestudyprocessidentifiedthatthereisnointernationally-recognisedprocess,systemorframeworkfortownsresearch,particularlyforresearchonturnaroundtowns,tocaptureandrecordhowandwhypositivechangeoccurredandwhattheimpacthasbeen.

Atpresent,thereareanumberofcriticalquestionswherefurtherexplorationanddatawouldbevaluable,including:

• whatarethenecessaryconditionsforsuccessfullocalleadershipintowns?

• howcriticalistheinvolvementofthecommunity?

• whatgovernancemodelsbestfacilitateinnovation,regenerationandsustainability?

• whatinter-townrelationshipsandpartnershipshaveworked?

Weidentifiedanumberofreasonsbehindsomeofthechallengesindemonstratingtheimpactofturnaroundtownsinternationally:

a) Turnaround towns are significantly under-researched. Thisisparticularlythecaserelativetoworkoncities,whichappearstohave‘crowdedout’researchontowns.Veryfewbookshavebeenwrittenaboutturnaroundtownsandverylittletraditionalacademicworkfitsourcriteria.Thismeantthatourprimarysourceofinformationwas‘greyliterature’,thatis,materialsandresearchpublishedoutsideacademicchannels.Thisincludes,butisnotlimitedto:Government


beonveryminorinterventions,suchastheimportanceofyourcommunity’sflag.1

e) Researchalsooftenreflecteddistinct preoccupations,differingbycountry.IntheUnitedKingdom,asignificantproportionoftowns-relatedresearchconcentratesonretailmanagementandonenvironmentalsustainability.IntheUnitedStates,downtownrevitalisationisoftenafocus,andbroaderturnaroundsoftenstartwithattentiontothedowntownarea,whichhadoftenbeenhollowedoutbypopulationshiftstothesuburbsand‘bigbox’out-of-townretail.Inanexampleofhowsomepreoccupationscanbe‘supply-driven’,theNationalTrustforHistoricPreservationMainStreetAmericaprojecthasco-ordinateddowntown-revivalprojectsinover2,000UScommunities(seeAnnex1fortheMainStreetFour-PointApproach).InAustraliaandNewZealand,thelittleresearchthatiscarriedoutconsiderstheconsequencesoflong-termurbanisationtrends,andthe‘seachange’and‘treechange’phenomena,wherebytheonlytownsthataredoingwellarethoseattracting‘downshifters’throughtheirnaturalamenitiesandsufficientproximitytobigcities.Outsidetheseareas,townsaregenerallyexperiencingageingpopulations,populationstagnation,and/ordecline.2InEurope,townsarealsounder-researched,andwhereworkiscarriedout,ittendstobeatahighlevelofabstraction,focusesprimarilyonenvironmentalsustainability,orreflectstheconcernsofprogrammeofficialsandresearchersratherthanthoseofresidents.

f) Critically,turnaround towns must be able to describe the results of their efforts.Duringourresearch,wecameacrossmany

1 Flags:HowVexillologyCanAidInYourEconomicDevelopmentInitiatives,DavidClark,April2016,EconomicDevelopment.org

2 SpongeCitiesandSmallTowns,ANewEconomicPartnership,TrevorBudge,LaTrobeUniversity,Bendigo2005

descriptionsofprogrammeswhichareeitherstillinprogressornotyetstarted,andsowecannotknowwhatkindofeffectsucheffortsmayormaynotmake.Storiesofsuccesscanonlybetoldwhensomethinghashappenedandhasworked:prediction,extrapolation,enthusiasmand/orhopearenotenough.

Tohelpaddresssomeofthesechallengesinthefuture,weofferthefollowingframeworkforunderstandingandrecordingturnaroundsintownsaroundtheworld.

Ingredients of turnaround stories

1. Whatwasitlikebefore?Recognisetownsasadataunitandincludebaselinedatawhereavailableonarangeofdimensions.• contextaboutthetown,economic

history,populationovertime,pastandcurrentroleinsurroundingregion,whatdeclinelookedlike,reasonsfordecline;

• descriptionsshouldbebothqualitativeandquantitative.

2. Giveanaccountofhowthetowngotfromstarttofinish,includingwho, what, when• Tellitasastory,foraswidean

audienceaspossible,notjustexpertsoracademics;

• Includedifficultiesalongtheway,whatwentwrongaswellaswhatwentright;

• Includeviewsontransferabilityofapproach.

3. Whatweretheresults,bothquantitativeandqualitative,overwhattime-period?Considerthecounterfactual:whatmighthavehappenedifdeliberateeffortshadnotbeenundertaken?

Turnaround Towns: International evidence8 Turnaround Towns: International evidence8

TupeloWhat the situation was

TupelowasonceoneofthepoorestpartsofthepooreststateintheUS,aMississippiofwhichWilliamFaulknerwrote:‘The past isn’t over; it isn’t even past.’

In1936,Tupelosufferedamajornaturaldisasterwhenatornadolevelled48blocksandover200homes,killingatleast216peopleandinjuringmorethan700.Thedeathtollwaslikelyhigher,asofficialnumbersonlyincludedthenamesofwhiteresidents.3AmongthesurvivorswasElvisPresley,thenababy.

In1940,theaveragefamilyincomeinTupelowasaquarterofthenationalaverage,andtherewerehighlevelsoffunctionalilliteracy.Eightypercentofthecountypopulationwasengagedinagriculture,butcotton,themaincrop,hadbeendecliningfor40years.Theregionhadneithernaturalbeautynornaturalresourcesuponwhichtobuilditsfuture.

What it became

LeeCountyisnowamongthemostprosperousintheSouth-EasternUnitedStates,withadiverse

3 10DeadliestTornadoesinUSHistory,TimeMagazine,May21,2013

localeconomythathasremainedremarkablystable.4Aswellasalargefurniture manufacturing industry–Tupeloisknownastheupholsterycapitaloftheworld–thetownishosttoalargehealthcaresector,theheadquartersoftwobankswithapproximately$22billioninassetsbetweenthem,afabricindustry,andaToyotamanufacturingplant.Tupelo’sNortheastMississippiMedicalCenteristhelargestnon-metropolitanhospitalinthenation,andthetownhostssatellitecampusesoftheUniversityofMississippi,ItawambaCommunityCollege,andtheMississippiUniversityforWomen.Morerecently,despitebeing‘not an especially pretty town’,5 ithasdevelopedatourismindustrybasedonitstwomainattractions,theElvisPresleybirthplaceandNatchezTrace,ascenicforesttrail.

The‘TupeloStory’isthesubjectofnumerousbooks,studiesandarticles,detailingthetown’sremarkableexperienceinbringingnewbusinessestotheareaovermanydecades.

Tupelohassomeofthebestpublicschoolsanywhere,withhighschoolgraduationratesthatarenotonlyamongthehighestinMississippi,butare18percentagepointsbetterthanthenationalaverage.Afull98%ofthetown’sschool-agedchildrenattendpublicschools.Halfofthetown’sprimaryschoolshavenationalblue-ribbon

4 ATownTransformed,VanderbiltBusiness,Fall2008.

5 BetterTogether:RestoringtheAmericanCommunity,Putnam,FeldsteinandCohen,SimonandSchuster,2004

Case Study 1: Tupelo and Haven Acres, Mississippi

TupeloissituatedinNorth-EastMississippi,betweenMemphis,TennesseeandBirmingham,Alabama.Ithasapopulationofaround36,000,andservesLeeCounty,which,includingTupelo,hasatotalpopulationof83,000.TupelowasthefirstcitytobeelectrifiedbytheTennesseeValleyAuthority,andPresidentRooseveltevencametovisitin1935.Bytheearly20thcentury,thetownhostedmanycottontextilemills,whichprovidedjobsforresidentsofthemostly-ruralarea.Tupeloalsoservedasaregionaltransportationhubduetoitslocationatarailroadintersection.

https://en.wikipedia.org/wiki/Furniture

https://en.wikipedia.org/wiki/Manufacturing

https://en.wikipedia.org/wiki/Industry

status,andTupeloHighSchoolhasreceivedaUSDepartmentofEducation’sExcellenceinEducationAwardtwice.6

Aswellasawholeraftofotherawards,TupelohasbeennamedaNationalCivicLeagueAll-AmericaCityfivetimes,in1967,1989,1999,2011and2015.7Thisawardisgivenannuallyto10communitiesintheUS,torecognisecommunitieswhosecitizensworktogethertoidentifyandtacklecommunity-widechallengesandachieveuncommonresults.

How it happened

LocalspointtotwostartingpointsfortheTupeloStory.First,the1936tornadomarkedaturningpointofsorts,andbroughtthecommunitytogethertorebuild.Second,anewspapereditorcalledGeorgeMcLeanboughtthealmost-bankruptlocalDailyJournal,andfocuseditonpromotingTupeloandthesurroundingarea.

McLeanrealisedthatthefortunesofthetownanditssurroundingruralareawerecloselyintertwined.

6 Ibid.TheNationalBlueRibbonSchoolsProgramrecognisesschoolsforoverallacademicexcellenceortheirprogressinclosingachieve-mentgaps.Seehttp://www2.ed.gov/programs/nclbbrs/index.html

7 NationalCivicLeague

HisfirstinitiativewastopersuadeTupeloleadersandbusinessownerstojoinforceswithfarmcroppingfamiliestofigureoutwhythefamiliesremainedpoordespitetheirhardwork.Cropfarmingrequiresfarmerstotakeoutlargeloansatplantingtime,thenlivefrugallyuntilharvest.Theywereriskaverse,andspentlittle.TheTupelogroupdiscoveredthatdairyandpoultryfarmershadadifferentproductioncycle,producingmilkandeggsdailyandsellingthemeveryweek,providingincomeallyear.Thegrouplaunchedanefforttohelpconvertthecropfarmersintodairyandpoultryfarmers.Communityresourceswerepooled,bringingartificialinsemination(andaprizebullfromEurope)totheregionlongbeforesuchinnovationwascommonintheUS.Theeffortproduced$2millioninnewincomefortheregionoverthenextfewyears.Farmfamiliesdidbetter,andbecausetheynowhadmoremoneytospend,sodideveryoneintown.8

RuralCommunityDevelopmentCouncilswereestablished,whichthenfosteredwidelydistributedlocalleadership.Neighbourhoodgroupsof10to12familiesweresetup,drawingvirtuallythewholecommunityin.Monthlymeetingscombineddiscussionsoffarmingtechniquesandplansforlocalimprovementwithsociablemealsand

8 Hand in Hand: Community and Economic Development in Tupelo. Aspen Institute, 1999.

Turnaround Towns: International evidence 9

http://www2.ed.gov/programs/nclbbrs/index.html


groupsinging.Inadditiontosharingknowledgetoimprovefarmproductivity,membersjoinedinprojectstofixuptheircommunities,paintingchurchesandschoolsandcleaninguppublicspaces.Eachruraldevelopmentcouncilwaspairedwithatowncivicclub.

Meanwhile,thegroupofcommunityandbusinessleadersinTupelobecametheCommunityDevelopmentFoundation(CDF)9,whichhasmaintainedarelentlessfocusonlocaleconomicandeducationdevelopment.Earlyon,civicleadersagreedthatastrongsystemofpubliceducationwouldbecriticaltothearea’sdevelopment.OneoftheCDF’sfirstinitiativeswastobuildchildcarecentrestogiveparentstheopportunitytotakeliteracyclasses.Localleaderspledgedtosendtheirchildrentopublicschools.Oneofthenation’sfirstprivatefoundationswasestablishedtoraisemoneyfortheschools.

Justasitdoestoday,theCDFcoordinatedcouncil,business,andeducationalbodiestoattractitsfirstindustryin1947.Sixtyyearslater,inFebruary2007,ToyotaannouncedthatitwouldbuilditseighthNorthAmericanassemblyplantinTupelotoproducethePrius.TheopportunitytoreapotherbenefitsofToyota’spresenceisnotlostonlocalleaders.AstheprefacetotheTupeloCityCouncil’s2025comprehensiveplan,‘Tupelo:TheStoryContinues’putsit:

The CDF demonstrated that it, and the community it represents, belong at the cutting edge of the 21st century economy... one of the critical themes of competitiveness in that economy [is] clear: energy efficiency. We are now in position to learn how the most sophisticated manufacturer in the world uses its resources.

9 SeetheCDFwebsiteforanextensivelibraryofdata–http://www.cdfms.org/cdf/data-library

Haven AcresHavenAcresisanAfrican-Americanneighbourhoodonthesouth-westedgeofTupelo.Theareadevelopedinthe1960sasTupelo’smanufacturingindustriesgrew.

What the situation was

Becauseofneglectfromthecountyandthefailuretobuildacommunitythatcaredforitself,HavenAcresgraduallybegantodeteriorate.Youthgangsanddrugswereprevalent.Residentswereafraidtoreportcrimesforfearofrepercussionsfromgangmembers,andinanycasepolicenolongeralwaysrespondedtocallsforhelp.Evidenceofneglectpervadedtheneighbourhood,withdilapidatedhousing,overgrownlots,rubbishand‘ForSale’signs.Someresidentsconcededthatthesituationwashopeless.Theycouldnotselltheirhomesbecausenoonewantedtomoveintothegang-infestedneighbourhood,andthevalueoftheirpropertyhadsunkfarbelowwhattheyhadoriginallypaid.10

What it became

Localleadershavetransformedacrime-riddledneighbourhoodintoamodelforneighbourhooddevelopment.Theyhavereceivednumerousnationalawardsfortheirgrassrootsleadershipandpartnershipsbetweenresidentsandthepublicsector.11TheHavenAcresNeighbourhoodAssociationbecamethemodelforallsuchorganisationsinTupelo.Membersvisitedotherneighbourhoodsandhelpedthemorganisetheirowngroups.TodaymorethanadozensuchgroupsexistacrossTupelo.

10 ExtraordinaryResultsinOrdinaryCommunities,VaughnGrisham,KetteringInstitute,2010

11 JamesC.HowlandAwards,NationalLeagueofCities,October20th,2003–GoldWinner


How it happened

TheresidentsofHavenAcresapproachedthemayorofTupelo,RobertHall,toaskforhelptoturnaroundtheirtown.Intheearly1990s,theneighbourhoodwasincorporatedintoTupelotownlimits,andthemayoraskedthetown’schiefoperatingofficer,PhilSullivan,tomakeHavenAcresapriority.

In1998,theHavenAcresNeighbourhoodAssociationwasformed,andbegantocleanupcommonareasandencourageresidentstoupgradetheirproperties.Theyheldweekendclean-upsinwhichhundredsofvolunteerscametogethertoremovelitterandotherrubbish.Thetownprovidedgarbagetrucksforthefirstfewweekends.

Withthetownandresidentsworkinghand-in-hand,significantimprovementsweremade,beginningwiththetownworkingdirectlywiththearea’spowercompanytohavebrighterstreetlightsinstalled.Drainageditcheswerecleaned,treelimbshangingoverstreetrights-of-waywere

trimmedandanaggressivecodeenforcementprogrammewasimplemented.Duringa24-monthperiod,afteradopting‘zerotolerance’forcrimes,theneighbourhoodsawan86%reductionincrime.

Theynextturnedtheirattentiontobuildingacommunitycentre.Thecommunityraised$100,000andobtainedamatchingamountfromthetown.PhilSullivanmetwiththeleadersofalargenumberoforganisations,includingcitydepartments,foundations,religiousandcivicgroups,andpersonallytooktheirleaderstoHavenAcres.Thecommunitycentreopenedin2003andhousesHeadStartprograms,aBoysandGirlsClub,aseniorcitizensclubandaneighbourhoodpoliceoffice.MattieMabry,whofundraisedformanyyearsforthecentre,wasappointeddirectoroftheBoysandGirlsClub.Shetakesgreatpridethatnoneofthechildreninherprogrammehavebeenintroublewiththelaw.12


COMMUNITY CENTRE



Douglas’‘turnaround’perioddatesbackto the1980s.WhileDouglashasbeensuccessful atattractingemployerssincethistime,itisfarfromimmunefromeconomicshocks,experiencinganumberofchallengesacrossthedecades.Inparticular,inMay2009,alocalchickenprocessingplant–Pilgrim’sPride–shutdowncostingCoffeeCounty2,200jobsover12monthsindirectlayoffs,andlossesfromsmallpoultrybusinessesthatsuppliedtheplant.Thecounty’sunemploymentratesoaredto19%andatleastonelocalbankwasatrisk.Shortlyaftertheclosingoftheprocessingplant,thecommunity’scongressman,JackKingston,cametoDouglastosurveythedamage.AccordingtoJoAnneLewis,PresidentoftheDouglasChamberofCommerceandEconomicDevelopmentAuthority,hisassessmentwas:‘This is an economic Katrina.’13

What it became

Douglasenjoys20%growthandhasbecomearegionalhubforjobs,retail,entertainmentandmedicalservices.Between2001and2011atleast800netjobshavebeencreatedandmorethan345,000squarefeetofpreviouslyvacantspacehasbeenoccupiedbysmallbusinessexpansionsandstart-ups.Several

13 Douglas,CoffeeCountyStayingtheCourse,GeorgiaTrend,December2012

majoremployershavebeenrecruitedintotown,includinganewchickenprocessortotakeoverthevacantplant.TheaveragemonthlyChamberofCommercemeetingattendanceisupnearly100%since2001.14

How it happened

Downtown revitalisationInthelate1980s,downtownDouglashadahighvacancyrate,andpeoplefromthecommunityrarelyvisited.AMainStreetProgrammewasstartedin1987torevitalisethearea.Atotalof$10,000fromthetownandtheEconomicDevelopmentAuthorityprovidedmatchinggrantsfor20façadeimprovements,and20morewereimprovedadecadelater.Thecityalsocarriedoutaone-yearstreetscapeupgrade,addingtrees,patternedbrickworksidewalks,pedestrianlighting,andlandscaping.Aftercompletionofthedowntownstreetscapeprojectin1995,thedowntownvacancyratestartedfallingfromitshighof25%,achangethattownofficialsattributedtostreetscapeimprovements.Attheendof2012,12newlyopenedbusinessesdroppedthevacancyrateto6%.15

14 SmallTowns,BigIdeas:CaseStudiesinSmallTownEconomicCom-munityDevelopment,WillLamb,UniversityofNorthCarolinaSchoolofGovernmentandNorthCarolinaRuralDevelopmentCentre,2008

15 HowSmallTownsAndCitiesCanUseLocalAssetsToRebuildTheirEconomies:LessonsFromSuccessfulPlaces,EPA,2015

Withapopulationofaround11,500,Douglasisaboutathree-hourdrivefromAtlantaandtwohoursfromJacksonville,Florida.ThecountyseatofCoffeeCounty,population32,332,itsitsbetweentheOkefenokeeSwamptothesouthandopenfarmplainstothenorth.Smallbusinessandretailoutletsattractshoppersandclientsfromacrosstheregion.Douglasishometotworegionalcolleges,EastCentralTechnicalCollegeandSouthGeorgiaCollege.

Case Study 2: Douglas, Georgia

Economic Development approachDouglas’strategyforeconomicdevelopmentisgroundedinco-operationbetweenthetown,county,businesscommunity,educationinstitutions,andcivicleaders.Whilethetowncouncilsupportsandco-sponsorsevents,itisnottheprimarydriverofthetown’seconomicdevelopmentstrategy–thatisledbytheDouglas-CoffeeCountyChamberofCommerceandEconomicDevelopmentAuthority,whoshareofficesandstaff.TheEDAboard’ssevenmembersconsistofthreeappointedmembersfromtown,threefromthecounty,andthechamberdirector.

Amajorchallengehasbeenreorientingtheapproachsothatitincludessmallbusinessesandentrepreneurs.‘The biggest change in the past 10 years has been our shift in focus within economic development,’saidJoAnneLewis.

Big box recruitment was the primary focus in the 1980s and 90s, but today, diversity in economic sectors has become more and more critical. Off-shoring has created a demand to broaden our vision and think globally. 16

16 SmallTowns,BigIdeas:CaseStudiesinSmallTownEconomicCom-munityDevelopment,WillLamb,UniversityofNorthCarolinaSchoolofGovernmentandNorthCarolinaRuralDevelopmentCentre,2008

Douglas’strategyisthree-pronged:supportandnurturesmallbusinessentrepreneurs;recruitadiverserangeofindustrialemployers;anddevelopanewgenerationofleaderswhoareversedineconomicdevelopment.

1. Supportandnurturesmallbusinessentrepreneurs Douglasbalancesattractinglarger employerswithrealsupportforsmallerbusinesses,rangingfromsimplethank-youvisitsfromChamberandEDArepresentativesfortheircontributionstothetown’svitality, tointensivefinancialandinfrastructuresupport.Theyconnectsmallbusiness ownersandentrepreneurstoresources,andmaintainanetworkofmentorswhocommittimeandskillstohelpingnewbusinessessurvive.Douglasalsodevelopedaretailincubatorwhereentrepreneurscanleasespacebythemonthtotesttheirideas.Iftheyfindtheirconceptworks,thetownhelpsthemmoveintoapermanentspaceintown.Douglasofferstaxabatementpackagestosmallbusinessentrepreneurssimilartothosegiventraditionalindustryprospects,andencouragesanycompanythatreceiveslocalincentivestouselocalcontractorsforconstructionprojects.



2.Recruitadiverserangeofindustrialemployers LocalleadershavebeenbuildingnetworksfarbeyondDouglasfordecades.ConnectionswitheconomicdevelopersinAtlantaareabridgetohigh-levelbusinessprospects,andtheserelationshipsarecarefullymaintained.17

Whenrecruitingpotentialemployers,thetownplacesheavyemphasisonnon-cashincentives.Duringanegotiationwithaprospect,localtechnicalschoolsdescribetrainingopportunities,localbusinessleadersmakethemselvesavailabletosellthesupportivecultureinDouglas,andtheChambercoordinatesthe‘softtouch,whichinvolvesthewholecommunity.WhenAmericanInsulatedWirewassearchingforanewsitein2006,theChamberorganised

17 ibid

awelcomingeventforvisitingexecutives.Withonly24-hours’notice,thetowngot500Douglasresidentstotheairporttowelcometheexecutivesastheywalkedofftheplane.Accordingtoacompanyexecutive:‘What sold us on Douglas was the people.’

3.Developanewgenerationofleaderswhounderstandeconomicdevelopment Thestrategy’sthirdpillaristodevelopnewleaderswithanunderstandingofeconomicdevelopmentinthe21stcentury.TheNewCenturyLeadershipProgrammestartedinthemid-1990s,andgivesparticipantshands-onlearningineducation,Government,andthepracticeofeconomicdevelopmentatlocal,regionalandstatelevels.Graduatesbecomekeyleadersonlocalboardsandcommissions.AYoungProfessionalsNetworknowbringsmoreyoungpeopleintothefold.


What the situation was18

Duluth’scurrentturnaroundstorybeginsin2008,followingeconomicshocksthroughoutthedecades,inparticularduringthe1970sand1980s.However,Duluth’sturnaroundhasbeenfacilitatedbyspecificactionsthathavebeentakentotransformthetownsincethemid-1950s.

A1997bookdescribedDuluthas:‘A frontier city surrounded by open space, [it] has the warmth and charm of an older city, the comfort of a small town, and the economic problems of a steel city.’19Thirtyyearsago,itwas,likeFlint,Michigan,andGary,Indiana,oneofthemostdistressedtownsinAmerica.Manyindustriescollapsedduetointernationalcompetition.For60years,asteelproductionfacility,fedbynearbymines,employedupto5,000people.Thefacilityclosedin1979,leavingbehinda640-acrecontaminatedsite.Downtownbusinessesshuttheirdoors.Bytheearly1980s,unemploymentinthetownwasnearly20%.Duluth’spopulationpeakedat106,884in1960,thendroppedby20%overthenext30yearsasemploymentopportunitiesinsteelandheavymanufacturingdeclinedandresidentsmigratedtoMinneapolis,SaintPaul,andbeyond.20

18 OnceATroubledRust-BeltCity,DuluthTurnsItsFinancesAround,MarkRuff,GovernmentFinanceReview,Dec2014

19 CityscapesandCapital:ThePoliticsofUrbanDevelopment,ByMichaelA.Pagano,AnnO’M.Bowman,1997,JohnsHopkinsUniversityPress

20 OnceATroubledRust-BeltCity,DuluthTurnsItsFinancesAround,MarkRuff,GovernmentFinanceReview,Dec2014

Therewerealsofiscaltroubles.In2008,whenMayorDonNesstookoffice,Duluthhada$4.4mbudgetdeficit.Revenueswereflatordeclining,andontheexpenditureside,retireemedicalcostsaccountedforalmost15percentofthetown’sgeneralfundbudgetandwereprojectedtorise$1millionperyear.Moody’sputthetown’sbondratingonanegativeoutlookin2009,citingstructuralimbalancesinitsbudget.21

What it became

In2000,Duluth’spopulationwasolderthanthatofthestate’sasawhole.Nowitisgettingyoungerandwealthier.Between2000and2010,thenumberofpeoplebetween20and34yearsoldroseto15%.MayorNesshassaidthisyoungerspirithasbeenneededinatown‘on the fringes of the American economy’.22Despitetherecentrecession,Duluthcontinuestodowell,withindustriesincludingaerospace,engineering,educationandhealthcare.Newbuildingandeconomicdevelopmentproposalscomeonaregularbasis.Inthefirsthalfof2015,thetown’stourismrevenueincreasedby11.6%,whichputitoncourseforarecordyear.Thetown’sfinanceshavestabilisedandtheeconomyisstrong.Nodrawsonreserveswererequiredinthe2014budget,andbondratingsareup,withAAfromStandard&Poor’sandAa2fromMoody’s.23

21 ibid

22 OnTopoftheHillWithDonNess,TwinCitiesBusinessMagazine,September30th2015

23 ibid,Duluthfindstherightformula:Naturalbeauty,strongworkforcebringsinthebusiness,MinnesotaRealEstateJournal,March23rd,2015

Case Study 3: Duluth, Minnesota

Situatedatthesouth-westcornerofLakeSuperior,Duluthhasapopulationof86,000.ThetownhasbeenamajorseaportonLakeSuperior’swesternshoressincethemid-1800s.Eventoday,DuluthisthebusiestportontheGreatLakes:ironoreandwoodfromnorthernMinnesota,grainfromNorthDakota,coalfromWyoming,andwindturbinesfromaroundtheworldpassthroughDuluthontheirwaytoandfromUSandinternationalports.18


How it happened

In1956,Duluthcitizensvotedtoradicallyreformitsoldformof‘commissioner’government,wherethemayor’spositionwasnotmuchmorethanpublicrelations.Theyturnedtoa‘strongmayor’system.TherearetwoprimaryformsoflocalgovernancestructuresinAmericantownsandcities:strongmayorsystems,wherethemayorisdirectlyelectedbycitizens;andweakmayorsystems,wheremayorsareelectedfromwithinthecouncil.Strongmayorsystemscentraliseexecutivepower–themayoroverseesthedailyoperationofthetown,directingtheadministrationandappointingandremovingdepartmentheads.Whilethecouncilhaslegislativepower,themayorhasvetopower.Inweakmayorsystems,thecouncilispowerful,withbothlegislativeandexecutiveauthority,andthemayorhaslimitedpower.

TheadvantagesofastrongmayorsystemcanbeseeninturningaroundafiscalsituationlikethatfacedbyDuluth.Hardchoicesonbothrevenueandtheexpendituresidesofthebudgetrequired

aclearplan,strongpoliticalleadership,andgoodcommunication.Perhapsmostimportantinastrongmayorsystem,underMayorNessDuluthhadamayorcommittedtoaddressingthe2008fiscalcrisiswhilecontinuingtotransformtheeconomyandnurturetourism.

A clear propositionThetownhastoldaclearstoryaboutitself,asaplacethathasbeen‘battle-tested’, and has a clearrelationshipbothtoitshistoryanditsfuture.MayorNesscommented:

People see our industrial heritage as something that makes Duluth feel authentic... We’ve never turned our back on [it]. That’s something that’s core to the feel of our city.

YoungpeoplearecomingtoDuluthtoliveandwork,pullingemployersthatwanttoattractthetalentintheirwake.MayorNessappealedtoayoungdemographicthathetargetedinrebuildingthetown’simagebypromotingmusic(Duluthishometoalargenumberofbands),thearts,andthetown’sparksandtrailsforhiking,


bikingandotheroutdooractivities.24Homegrownentrepreneursreflectthis‘new’Duluth.Agrowingnumberofbusinessstart-upsaredrawntoatownthatletsthembuildabusinesswhileenjoyingnature,culture,andamorecasuallifestylethanthatfoundinabigcity.Flavouredgins,vodkasandaquavitsaredistilledinthetown,complementingnewcraftbreweries.Localrestaurantsarethriving.

Bothestablishedcompaniesandlargerhome-grownbusinessesaremakingcommitmentsinDuluth.ClothingretailerMaurices,whohaveover900storesacrosstheUSandCanada,isbuildinganewheadquartersbuildingthatwillstand11storiesandtakeupanentirecityblock.Meanwhile,ahomegrowngroupofcompanies,GoodSheet,includesLollDesigns,amanufacturerofoutdoorfurniturefromrecycledplastic,andEpicurean,whichmakescuttingboardsandotherkitchenwarefromwoodfibberandotherrecycledmaterials.Establishedin2002,LollandEpicureansellDuluth-madeproducts

24 FirstelectedtotheDuluthCityCouncilatage25,atonepointin2011MayorNessenjoyedan86%approvalrating.DuluthMayorDonNesswon’trunagain,StarTribuneOctober12th,2014

worldwide.Epicureansaw15%growthlastyear,andLollDesignsgrew30%.ThoughDuluthisn’tthemostcentrallocationforagrowingmidsizebusiness,the100employeesenjoytheoutdoorlifestyleandeasycommutes.‘You can have success around the country and globally,’GregBenson,oneoftheirprincipals,says.‘[Being in] Duluth doesn’t hinder that...’25

EffortstodiversifyDuluth’seconomywillremainimportant.Today,healthcare,airlinemaintenance,educationandtourismareallattheirhighestlevelsever,whichcanhelpcompensateforotherindustries,suchasthelocaltaconiteminingindustry,whichmaybelikelytoexperienceamorechallengingeconomicfuture.Butwhileit’sanimportantpartofDuluth’seconomy,particularlyforitsbanking,legalandengineeringsectors,Duluthreliesmuchlessonitthan30yearsago.26

25 OnTopoftheHillWithDonNess,TwinCitiesBusinessMagazine,September30th2015

26 ibid

http://tcbmag.com/Opinion/Columns/Northern-Exposure/On-Top-Of-The-Hill-With-Don-Ness



AsPaducah’spopulationgrewinthe1950s,theoutskirtsstartedtosuburbanise,andthedowntownareabegantolosepopulationandstruggleeconomically.InasituationreplicatedacrosstheUnitedStates,ashoppingmallbuiltontheoutskirtsofPaducahintheearly1980sfurtherhurtdowntownretail.Withthedeclineoflocalindustry,Paducahsufferedfrombothalossoftheeconomythathadhelpeditprosper,andfromsuburbanflight.Bythelate1980s,LowerTown,downtown’shistoricformerresidentialarea,wasblightedbycrimeandneglect,anditscommercialcentrehada70%vacancyrate.

What it became

LowerTownisnowlistedontheNationalRegisterofHistoricPlacesandhostsathrivingartsandsmall-businesscommunitythatattractsmorethan$200millioninannualtourismincome.Paducah’sresultsareimpressiveandwelldocumented:1,000netnewjobs;234netnewbusinesses;119buildingsrenovated;27newbuildings;vacancyratedownfrom70%to14%.

Nearly400,000peopleattendedartseventsinPaducahduring2007,40%ofwhomcamefromoutofstate.Notcountingadmissionfees,theseout-of-statevisitorsspentmorethanfivetimesasmuchaslocalresidentsonlodging,meals,transportation,andshopping.A2009AmericansfortheArtsstudyfoundthatin2007,non-profitartsandcultureorganisationsgenerated$40

millioninlocaleconomicactivity,supporting819full-timejobsandgenerating$3.6millioninlocalandstategovernmentrevenue.In2013,UNESCOdesignatedPaducahtheworld’sseventhCityofCraftsandFolkArt.

How it happened

Downtown revitalisationIn1989,themayorofPaducahhelpedlaunchthePaducahRenaissanceAlliance,anorganizationdedicatedtodevelopingPaducah’s‘RenaissanceArea’,whichincludestheLowerTownArtsDistrict,thehistoricdowntown,and,later,theriverfront.27 ThemethodwasbasedontheMainStreetFour-PointApproach(Annex).

Manybuildingsdowntownhavenowbeenrenovatedandnewconstructionhastakenplaceinemptylots.TheDowntownStreetscapeProgrammemovedpowerandutilitylinesunderground,plantedtreesandgardensalongthepavements,investedinpublicsculpture,andclearedoutoldcementpavements,replacingthemwithmoreattractivebrickwork.Asinvestorsandentrepreneurssawhowthetowncentreimproved,theymadeinvestmentsoftheirown.Todaythetownauthoritiescontinuetosupporttheareathroughprogrammessuchasmicro-grantsforfaçaderepairsandanupperstoryresidentialgrantprogramme.

27 HowSmallTownsAndCitiesCanUseLocalAssetsToRebuildTheirEconomies:LessonsFromSuccessfulPlaces,EPA2015

Case Study 4: Paducah, Kentucky

Withapopulationofaround26,000,PaducahliesinWesternKentucky,attheconfluenceoftheTennesseeandOhiorivers.SituatedhalfwaybetweenNashvilleandSt.Louis,Paducahbecameanindustrialrailandsteamboatcentre,andenjoyeddecadesofsteadypopulationgrowthleadingintothe20thcentury.ThePaducahGaseousDiffusionPlantwasbuiltin1952andproducedenricheduraniumfornuclearpowerplantsuntil2013,employingasmanyas2,200peopleasrecentlyas2010.


An arts-focused approachThetownwasalreadyhometotheWilliamClarkMarketHouseMuseumandMarketHouseTheater,bothhousedina1905structurethatisaniconofdowntownPaducah.AlocalquiltingenthusiastcoupleledanefforttoestablishtheNationalQuiltMuseum.In1991,themuseumopenedthedoorstoanew$2.2millionbuildingindowntownPaducah,whichdrawsabout40,000visitorsayear.

Buildingontheseculturalassets,acriticalpartofthedowntownrevitalisationwasaninnovativeArtistRelocationProgramme.Createdin2000byMarkBarone,alocalartist,andThomasBarnett,thetownplanneratthetime,itsetouttoattractartistsaspioneerstoliveandworkintheneighbourhood.Barnetthascommented:

Artists are the kind of folks who see what can be. They see potential, and we knew that was what it was going to take when they came in to see the neighbourhood in its current condition. 28

Thetownacquired80propertiesviacondemnationorforeclosureina30-square-blocksectionofLowerTown.Theythensoldthemtoartistsaroundthecountryforaslittleas$1,withtheprovisionthattheartistsrenovatethebuildingsintofirst-floorstudioswithsecond-floorlivingspaces.PaducahBankofferednodownpayment,low-interestloansforthefullcostofrepairingthedilapidatedpropertiesandagreedtooffermortgageloansatwellabovetheappraisedvaluessonewownerscouldaffordrenovations.Inanareawherepropertyvalueshadfallensofarbelowrenovationcosts,thisdecisionbythelocally-ownedbankwascriticaltotheprogramme’ssuccess.‘When you’re going into these blighted areas, the incentive package has to be good enough where [the artists] can overlook the blight,’saidBarone.‘And if it’s not, you’re not gonna get anyone to come.’29

Theopportunitytoownahomewasamajorattractiontotheartists.Otherplacesthat

28 HowtoSavetheCities–SendintheArtists,TheFiscalTimes,June4th,2010

29 NewYork,Paris,Paducah?KentuckyAttractsArtists,ABCNews,December23,2006

hadusedartisthousingtohelpupgradeneighbourhoodsgenerallybasedtheapproachonrenting.Whenpropertyvaluesinevitablywentup,sodidtherentsandeventually,mostpioneerswerepricedoutofthemarket.

Theincentivesworked.Inthefirstyear,eightartistsmovedtoLowerTown.Inyeartwo,thenumberincreasedtoaround20.Inthefirstfiveyears,thetownspentabout$3m,whileheartistsinvestedapproximately$35mintheirbuildings.Morethan100artistseventuallymovedtoliveandworkintheneighborhood,whichisnowfilledwithgalleries,shops,andrestaurants,andthenewPaducahSchoolfortheArts.

DiversificationFromicecreamandhealthcaretolocomotivesandbargeoperations,Paducah’slocaleconomyisvaried.Theseotherindustriescombinewiththeartiststoformavariedsetoflocaloptions:

Paducah is a regional hub for health, education, and business. But Paducah also is a creative community with a variety of artists ranging from internationally-known painters to students who are just learning a craft,’ said Mayor Gayle Kaler. ‘Without a doubt, the arts mean business in Paducah. 30

30 InterviewinPaducahLife,January/February2014



Allentownstruggledeconomicallyfordecades.LargeemployerslikeBethlehemSteelandMackTruckshadclosedorleft,andmanyresidentsmovedtoneighbouringtowns.Inthe1960s,downtownAllentownwashometoHess’s,oneofthemostpopulardepartmentstoresinthecountry.ButthecreationofsuburbanmallscausedHess’sandmanyotherbusinessestocloseorfollowtheircustomerstothesuburbs.Theareawasleftdesertedandunsafe,fullofpawnshops,boarded-upbuildingsandcheck-cashingoperations.32

What it became

Atotalof4,000jobshavereturneddowntownalongwith$1billionofnewdevelopment.Asnewbusinessesmoveintodowntown,theybringmorejobswiththem,rangingfromentry-leveljobsinthenewMarriotthotelandretailoutletstoprofessionalandmanagerialjobsatLehighValleyHealthNetwork,CrossAmericaPartners,andBB&TCorporation.33 DowntownAllentownisnowathrivingmixed-usedestination.Alocalresidentrecentlyremarked:

31 AllentownCityHalliscurrentlythesubjectofanFBIcorruptioninvestigation.DespitethecurrentcoverageovershadowingthesuccessesofAllentown’sturnaroundstory,thecasestudystillofferssignificantinsights.

32 “When the malls got built, it sucked everything out like a giant vacuum,”MayorPawlowski.TheAtlantic’sJamesFallowscomments:“By the way, the more we travel, the more we come to regard these malls as Public Enemy No.1 in the mis-shaping of late 20th century America”. Allentownbetsbigtosheditsformerimage,MarketplaceNPR,September11,2014

33 ReachingfortheFuture:CreativeFinanceforSmallerCommuni-ties,UrbanLandInstitute,2016

I used to come here as a kid, but there was never any reason to come back unless you had jury duty... they’ve really cleaned it up. I can’t believe this is Allentown. 34

CrimehasbeenreducinginAllentownsince2007,butperceptionsarenowbeginningtofollow.Thegrowthinpedestriantraffic,busyrestaurants,andanincreasedpolicepresencedowntownhaveledtoarenewedsenseofsecurity.Asaresult,thecityhasbeenabletointroducearangeofculturalevents,fromartwalkstoconcertsandsportsevents,furtheraddingtodowntownactivitylevels.

USNewsandWorldReportincludedAllentowninitsmostrecent‘BestPlacestoLive’report,whichconsidersfactorslikequalityoflife,jobmarket,valueofliving,netmigrationandpeople’sdesiretoliveinthelocationsitreviewed.AllentownbeatplaceslikePhiladelphia,NewYorkCity,NewHavenandProvidence.

How it happened

Fiscalpolicy,intheformofaninnovativestate-fundingprogramme,wasusedtocatalysemassiveredevelopmentinthecentreoftheAllentown.Asaresultofthecombinedeffortsofthelocalbusinesscommunity,developers,andlocalandstatelegislators,theNeighbourhoodImprovementZone(NIZ),passedthePennsylvaniaStatelegislaturein2009.Thegeneralconceptofusingstatetaxincentivesand

34 PPLCenteropeningshowcasesthenewAllentown,TheMorningCall,September12th,2014

Case Study 5: Allentown, Pennsylvania

Withapopulationof118,000,Allentownlies90mileswestofNewYorkCityand60milesnorthofPhiladelphia.Establishedin1762,AllentownisoneoftheoldesttownsintheUnitedStates,andwasthehidingplaceoftheLibertyBellduringtheAmericanRevolution.TodayitistheservicesandretailhubfortheLehighValleyregion.LikeDuluth,Allentownoperatesastrongmayorsystem.31


incrementfinancingisnotnew:theAmericanrailwayswerebuiltonasimilarmodelinthe1860s.

Neighbourhood Improvement ZoneTheNeighbourhoodImprovementZone(NIZ)isaspecialtaxingdistrictthatencouragesdevelopmentandrevitalisationindowntownAllentown.AlltaxesgeneratedwithintheNIZ(withtheexceptionofschooldistrictandcitytaxes),canbeusedtoservicedebtonanyimprovementswithintheNIZ.SeventeenPennsylvaniastatetaxesandfourlocalAllentowntaxesqualify.Thestatetaxesincludestateincometax,corporateincometax,andsalestax:ifabuildingisbuiltintheNIZ,thedevelopercangetbackthesalestaxonanypurchasemadeinthatbuildingfor30years.Thestateandalocal,independentauthorityoverseethedistributionofthetaxrevenues,andifthetaxbreaksexceedwhatthedeveloperspentonthebuilding,theremaindergoestothestate.35

Onestrengthofthemodelisthatitdependsonthedeveloper’sabilitytoattracttenants.AccordingtolocaldeveloperJ.B.Reilly:‘If the developer can’t attract tenants, then the developer’s going to be on the hook for repaying [their development] loans.’36Butaidedbytaxdollarsthatwouldotherwisegotogeneralfunds,developerscanoffer20to30%discountsonmarketrents,andtheprogrammehasworkedwell.

TheNIZlegislationisnotonlyrepayingAllentown’sdebtonloansandbonds,butalsobreakingevenandwillsoonbeaccretiveforthestate.NIZtaxreturnsaresteadilyincreasing,allowingthestatetoberepaid.UndertheNIZstructure,baseNIZtaxrevenuesremainwithintheNIZduringbuildout.Surplustaxrevenuesoneachprojectthenreverttothestate.Thestatecollectedanadditional$2min2012,about$16min2013asnewprojectscameonline,andabout$18min2014.37

35 Allentownbetsbigtosheditsformerimage,MarketplaceNPR,September11,2014

36 CityofAllentown,“NeighborhoodImprovementZone(NIZ)”,www.allentownpa.gov/Neighborhood-Improvement-Zone.

37 ReachingfortheFuture:CreativeFinanceforSmallerCommuni-ties,UrbanLandInstitute,2016

Inarecentreport,theUrbanLandInstitute(ULI)attributesthesuccessoftheprogrammetooutstandingpublic-privatecollaborationwithaclearvision:‘That partnership’s strength was fueled by the leaders’ commitment to one common mission: to drastically improve Allentown.’37ThereportconsidersAllentownalongsidefiveotherplacesthathaveusedinnovativepartnershipsandfinancingtoturntheircommunitiesaround.Onceacommunitymakesanintentionaldecisiontochange(aprerequisite),theULIlistsasetofingredientsthatmustinplaceforaplacetosucceed:

• Aclearunderstandingofacommunity’scompetitiveadvantages;

• Strongleadershipbyboththepublicandprivatesides;

• Astrategicvision;• Anentrepreneurialspirit;• Apublic/privatepartnershipculture;• Knowledgeofpublicfinancingtools;• Acommitmenttodesignexcellence;• Organisationalandstaffcapacity.



ThecentreofNewcastlewasbadlyhitbytheconstructionofsuburbanshoppingcentres,sothattheold‘citycentre’wasnolongeradesirableretaildestination.Therewereover150visiblyemptybuildings,whichattractedvandalismandstreetcrime.Newbusinesseswerereluctanttoopeninareasthathadbeeninaspiralofvisibledeclineforovertwodecades.

How it happened

RenewNewcastleconnectspeoplewithspaces,supportinganeighbourhoodofcreativeentrepreneurstoincubatetheirendeavoursinthepublicarena.RenewNewcastlehaslaunched236creativebusinessesandcommunityprojects,reopened80emptyproperties,andoverseena60to90%dropinvacancyrates.In2008,Newcastle’sHunterStreetMallwasmorethanhalfempty–by2014,itwasthecity’ssecondmostpopulartouristattractionbehindNobby’sBeach,withtourisminNewcastleupby25.5%.

Forthecity,RenewNewcastleprojectshavegeneratedanewstory,bothforthelocalcommunityandfurtherafield,givingthecityanewsenseofitself.ThelocalNewcastle Herald wrote:

After years of depression and desperation about Newcastle’s decay... young and creative people have helped make the Renew Newcastle project the signature move to get the city thinking positively again. 38

StoriesaboutRenewNewcastleandthepromotionoftheCentralBusinessDistrict(CBD)asadistinctiveandinterestingplacehaveappearedininternationalmagazines,websitesandnewspapers.WhenLonely Planet listedNewcastleasoneofthetop10citiesintheworldtovisitin2011,theyreferredtothe‘dozens of disused city-centre buildings occupied by photographers, fashion designers, digital artists and more as part of the inner-city regeneration scheme, Renew Newcastle.’

How it happened

RenewNewcastlewasestablishedin2008,togetcreativeprojectsintosomeoftheemptyshopsandofficesintheCBD.Despitethehighnumberofemptypremises,therewasstillacomparativelackofaffordablespaceswhichcreativeprojectscoulduse.Meanwhile,somebuildingswereworthmoretotheirownersasaccountinglossesthanasgoingconcerns.RenewNewcastleworksdirectlywithpropertyownersto‘borrow’buildingsthatmightotherwisebesittingvacant,andmakesthemavailabletoartists,creativeprojectsandcommunitygroups.

38 SettingthePace,NewcastleHerald,26December,2009

Case Study 6: Newcastle, New South Wales

Located100milesnorth-eastofSydney,theNewcastleareawastraditionallyoccupiedbytheAwabakalandWorimipeople.Withapopulationof288,000,Newcastleisthelargestcoalexportingharbourintheworld.Itseconomichistorywasdominatedbyheavyindustries,particularlycoalandsteel.Recentchallengesincludeanearthquakein1989killed13people,injured162anddestroyedorseverelydamagedanumberofprominentbuildings.Adecadelaterin1999,thesteelworksclosedafter84years.


Inlegalterms,RenewNewcastledoesnotleasebuildingsbutrathernegotiatesalicenceagreementthatallowstheprojectstoaccessthem.Thisisimportant,asitdoesnottriggerthestatutoryobligations,rights,costsandresponsibilitiesforeitherpartyrequiredbyalease.Thedefaultlicenceagreementallowstheprojecttouseabuildingonarolling30-daybasis.Theownercangive30days’noticeatanytimetoendthearrangement,addressingconcernsaboutmissingoutifacommercialofferweretocomealong.

Bothpartiesbenefitfromthearrangement.Fortheartistsandcommunitygroups,themodelworksbestasalow-riskwayoftryingoutnewideasandactivities.InareportpublishedbyArtsNewSouthWales,thefounderofRenewNewcastlewrites:‘[The] aim is to give projects long enough to determine if what they are doing is viable. Experience shows that realising that something isn’t viable in a way that doesn’t cost a lot can be highly valuable to fledging creative initiatives.’39 The tenancies alsoprovideimmediatebenefitsforpropertyowners,reducingvandalism,squattingandotherproblemsassociatedwithemptybuildings,

39 CreatingCreativeEnterpriseHubs:AGuide,MarcusWestbury,ArtsNSW,2010

whichinturnlowersmaintenanceandinsurancecosts.Newcastlehasseena25.6%decreaseincommercialpropertycrimeeachyearsinceRenewNewcastlebegan.Activityleadstoincreasedtraffic,andmorepeopleonthestreetsprovidespassivesurveillanceandimprovessafety.Allthesefactorscanincreasethelong-termvalueofproperty.

Focusingonsmall,achievablegoals,theRenewNewcastlestoryisasanexampleofhowordinaryresidentscantakecontrolwithoutwaitingfortop-downsolutionsfromGovernment,developers,orindustry.Monoclemagazineco-founderDanHillwrites:‘I can think of few more positive examples of how to quickly make a genuine difference in cities ie not just at the surface layers of urban design, as important as that is, or festivals, or marketing, but at the very core of economic, cultural and social sustainability, with all the ensuring knock-on effects for repairing urban fabric and civic confidence... to have addressed this aspect directly, with literally no funding, is thoroughly inspirational.’40

40 EmergentUrbanismofBottom-UpPlanning,CityofSoundblog,February2010



Oamarufounditselfhardhitbytheclosureoftheportinthe1970stogetherwithageneraldownturnintheNewZealandeconomy.ThelandaroundOamaruisdrought-prone,‘we have two good years, one average year and then two dreadful ones’,42andfurtherrecessioninthe1980scombinedwithabaddrought.Itnolongerseemedclearwhatthetownwasfor.

What it became

Oamaruhasasteadypopulation,andthere’sabuzzandoptimismaroundtown.Theruraleconomyisonamuchmoresecurefootingasaresultofirrigationinvestment,whichbenefitsthetown’sagriculturalservicebusinesses.Thetownalsoseesgreatlyincreasedincomefromtourism,afterbecomingoneofthefirstNewZealandtownstorealiseitsbuiltheritagewasanasset.Theyalsodevelopedsignificantvisitorinfrastructurearoundalocalpenguincolony,whichnowdraws75,000visitorsayear.There’saVictorianthemeintown,overlaidwithamorerecent‘steampunk’flavour.43Thisyear

41 Landmarks,KennethCumberland,1981

42 InterviewwithHughPerkins,DeputyMayorofOamaru

43 Steampunkisasubgenreofsciencefictionorsciencefantasythatincorporatestechnologyandaestheticdesignsinspiredby19th-centuryindustrialsteam-poweredmachinery.

thetownisaimingfortheworldrecordofthelargestnumberofsteampunkersgatheredinoneplace.

How it happened

Oamaru’sstoryinvolvesirrigationinvestment,economicdiversification,smallpenguins,Victorianbuildingsandsteampunk.Thecombinationoftheseaspectsmeansthatatownthatmighthavebecomeadeadendisdoingwell,andlocalsfeelthatinthelastdecadeorsoOamaruhas‘really got its mojo back’.44MayorGaryKircherisontherecordassaying:‘We simply don’t accept that our population will decline.’

Local government and private sector partnership for irrigation investmentIn2004,WaitakiDistrictCouncil,basedinOamaru,investedalmost$10mtodoubletheamountofirrigatedlandinthedistrictto25,000hectares.Theinvestmentwasintheformofaloan,butwithnoprincipalorinterestpayableuntil10,000hectareshadbeenwatered.TheinitialfinancialcommitmentallowedPhaseIinfrastructuretobeoverbuilttoaccommodatePhaseIIexpansionatalaterdate.ToinitiatePhaseII,theCounciltoppedtheirrigationscheme

44 Localtalkaboutinfrastructure:NorthOtago.InfrastructureEvi-denceBaseRefresh–ProductiveWaterNationalInfrastructureUnit,NewZealandGovt,March2015

Case Study 7: Oamaru

Oamaruhasapopulationof13,750,withanadditional8,000orsoresidentsinthebroaderWaitakiDistrict,theruralareaservicedbythetown.SituatedontheSouthIsland’sPacificcoast,itis155milessouthofChristchurchand75milesnorthofDunedin,andisconnectedtobothbyStateHighway1andtheMainSouthLinerailway.EuropeansettlersarrivedintheOamaruareainthe1850s.Thetowngrewasaservice-centrefortheagricultural/pastoralhinterlandbetweentheKakanuiMountainsandtheWaitakiRiver,andrapidlybecameanimportantport.NewZealand’spastoralismandassociatedfrozen-meatindustryfirstdevelopedjustsouthofthetown,andOamaruflourished,biggerinitsdaythanLosAngeles.Oamaruhasbeencalled‘Kiwitown’,anarchetypalregionalservicingcentre,withitsshops,stockandstationagencies,railwayanditsharbour.


loanupto$17m.WaitakidistrictmayorGaryKirchersaidsupportingirrigationwouldhavemoreeconomicbenefitthananythingelsehiscouncilcoulddo.45Aswellasthewidereconomicbenefits,theloan,whichcomesfromCouncildepreciationreserves,earnstheratepayerahigherreturnthaniftheinvestmentwasdepositedinabank.Thoughcontroversialatthetime,hebelievesthemajorityofthecommunitynowseesthebenefitstheirrigationhasdelivered.

Well you can see the new houses on the farms, the new people in the supermarket, the schools growing, sports numbers increasing – it’s obvious!

ASocial and Economic Benefits StudywascommissionedbytheWaitakiDistrictCouncil.Itindicatedarisingpopulationwithhigherproportionsofyoungeragegroups,andhouseholdandpersonalincomefortheareain2013significantlyhigherthanitwasin

45 CouncilFundsMoreOtagoIrrigation,RadioNewZealandNews,6August,2014

2001.Thedistrict’sGDPhasbeenestimatedtohavebenefitedby5%,or$48mperyear,andemploymenthasgrownby274jobs.Theirrigationhasalsohelpedthedistrictavoidtheworstoftherecentglobaleconomiccrisisandhasbroughtalevelofsecurityandresiliencetoanareatraditionallyaffectedbycyclicdroughts.46

Thebenefitscanbeseeninthenumerousstart-up,orexpanded,businessesassociatedwithfarmingandsupportindustries.ButOamaru’seconomyhasfurtherdiversifiedbeyondagriculturalservices,withfoodprocessingcontinuingtoexpandandlargelocally-basedrubbermattingandstock-handlingequipmentbusinesses.

Anothersourceofoptimismaboutthetown’sfuturehasbeenthegrowthofincomefromtourism.Thebiggestdrawisacolonyoflittlebluepenguinswhichlivesinadisusedquarrynotfarfromthehistoricprecinct.Thepenguinsestablishedthemselvesthereintheearly1990s,

46 StudyRevealsPositiveIrrigationSpin-Offs,OamaruMail,July18th,2014


andin1992agroupofvolunteersstartedtohelpmaketheareasuitableasabreedinghabitatandprovideguidedtours.AvisitorcentreandtwograndstandswerecompletedbytheDistrictCouncilintheearly2000s,andtodaytheOamaruBluePenguinColonyisthetown’slargesttouristattraction,welcomingover75,000visitorsayear.

OamaruhasalsodevelopedVictorianandsteampunk-themedattractions,whichhelptouristsspendmoneyduringtheday(thepenguinsonlyperformintheevening).Ontherecommendationofacouncil-fundedfeasibilitystudy,theOamaruWhitestoneCivicTrustwasformedin1987,andworkbeganonrestoringthehistoricprecinctbesidetheharbour.47TheTrust’sbuildingswerebuiltaroundthe1870sandareNewZealand’smostcompletestreetscapeofVictoriancommercialbuildings.Thelocallimestonelentitselftocarvingandtheelaborateneo-classicalstylepopularwiththeVictorians.Bythetimeofthedepressionofthe1880s,Oamaruhadbecomethe‘bestbuiltandmostmortgagedtowninAustralasia’.Thebuildings

47 OamaruWhitestoneCivicTrust

fellintodisrepairinthe1930s,asthecentreofthetownshiftedupthestreet.Untilthemid-1980stheywereusedaslow-gradestorage.

TheVictorianhistoricalquarterofOamaruisnowanexampleofsuccessful‘micro-agglomeration’.Inastreetofwhitestonebuildings,artists,bookdealersandVictorianmerchantshavebecomeacommercialcommunity.There’salsoatransportmuseum,anantiquefurnitureshops,antiqueclothingshops,andabookbinder.TheVictorianthemehasbeenembracedbyotherlocalshopsandgalleries.48

MorerecentlyalocalbuilderandentrepreneurestablishedSteampunkHQ,alargeartprojectcelebratingsteampunkculture.Noweventheplaygroundsattheharbourhavejoinedinthesteampunktheme,withagiantPennyFarthingstructuresupportingtheswings,andseveralothersteampunk-styledplaygroundfeatures.49

48 TheDeathandLifeofSmallNewZealandTowns,QuintinHow-ard,NewZealandTransportAgency,15thApril2015

49 AVisittoSteampunkHQ,BoingBoingJanuary12th,2015

Turnaround Towns: International evidence

Altena, Germany50

Altenahasapopulationof18,000,andissituatedontheriverLenne,25milesfromDortmundinhighlyindustrialisedSouth-Westphalia.Ithasa12th-centurycastlebuiltonahilltop,whichwashometotheworld’sfirstyouthhostel.Thetown’sothermainfeatureisitssteelwireindustry,anditishometotheGermanMuseumofWire.Altenasupplies18%oftheworld’ssteelwire,andproducesspecialsteelsheetsforAirbusandtheArianeRocket.


Altenawashithardbydeindustrialisationandthe2008economiccrisis.Overanumberofdecades,majorbusinesses,includingNokia,leftthetown,andthepopulationbegantodecline.Thehousingmarketdeteriorated,andthereweremanyemptypropertiesinthetowncentre.

What it became & how it happened

Altenaalreadyhadatouristattraction,itshilltopcastle.Butofthe100,000peoplewhovisitedthecastleeachyear,only10,000madetheshorttrip

50 AllmaterialistakenfromURBACTIIProjectResults,SecondEdition,November2013,EuropeanUnion

downthehilltothetown.SotheTownCouncildecidedtobuildanelevatorlinkingthecastlewiththemoribundtowncentre.Thiswascomplementedbyaplantofill20emptyshopstoturnthetowncentreintoacraftsvillage.Anassociationwasfoundedin2011tomanagerealestateinthecitycentre,andGundulaSchulzefromthemayor’sofficesaysthatprogressisalreadybeingmade:

For 10 years, shops in the centre were empty – no-one was buying. And now, something is changing. During the last two years, about 10 buildings with shops have been sold... everyone knows something is changing in our town.

Case Study 8: Altena, Germany and Pori, Finland

TheevidencearoundsuccessfulturnaroundtownsinEuropeislimited.However,thecasesofAltena,GermanyandPori,Finlandfeatureanumberofcharacteristicsthatarerelevanttothisstudy,sowehaveincludedthemasillustrativeshortoverviews. PoriandAltenaaretwoofthetownsinvolvedintheEuropeanCommission’sURBACTIIprogramme,whichaimstofostersustainableandintegratedurbandevelopment.AltenawaspartoftheOp-Actproject,whichfocusesonthestrategicpositioningofsmallandmedium-sizedcitiesfacingdemographicchanges.PoriwasinvolvedintheSURE,Socio-EconomicMethodsofUrbanRegenerationinDeprivedUrbanAreasproject.50



Othersuccessfulinitiativesincludetheestablishmentofamedievalmarket,whichnowattracts25,000visitorsayear.

Councilworkinggroupsondevelopingtouristinfrastructureweregalvanisedbyatargettomaketourismthesecondlargestcontributortothelocaleconomy.Thegroupsthemselveswerebroadenedtoincluderesidents,representativesofcivicforums,chambersofcommerce,journalists,shop-ownersandothergroups.

Pori, FinlandPoriissituatedontheKokemaenjokiRiverabout12milesfromthecoastoftheBothnianSea,andishometooneofFinland’slargestcommercialports.Thetownhasapopulationof83,000.Asevererecessioninthe1980spromptedalevelofeconomicdiversificationthatenabledPoritofarereasonablywellduringtherecenteconomiccrisis.Since2003,arenovatedcottonfactoryhashostedtheUniversityConsortiumofPorianddozensofmedia,communications,andotherstart-ups.


Porineededalong-termdevelopmentvisionforthecity’soldindustrialdistrictofKarjaranta,whichtheywantedtodevelopasamixed-use

area.ALocalActionPlan(LAP)waspreparedtoaddressawiderangeofaspectsofKarjaranta’sevolutionfromindustrialareatoresidentialneighbourhood.

What it became & how it happened

Recognisingthatlocalresidentsandbusinesspeopleknowtheirownenvironmentbest,Poricouncildevelopedaparticipatoryplanningprocess,focusingon‘user-expertise’.TheresultantLocalActionPlancoveredthefollowingareasoffocus:increasingservicesandactivities;improvingtrafficconnections;makingrecreationalareasmorevaried;andstrengtheningthesenseofcommunity.Thefirstandlastofthesecametogetherin apop-upphotoexhibitionofthearea’slocalhistoryin2011.Itwasheldinalong-emptyofficebuilding,which,sincetheexhibitionfinished,hascontinuedtobeoccupiedforotheruses.

DuringthedevelopmentoftheLocalActionPlan,PoriofficialsvisitedotherSUREcities.DanielNagy,Pori’sPlanningArchitect,recalls:

Examples seen in [other places] demonstrated the beneficial results of cross-sectorial cooperation and the contribution of creative ideas and voluntary activity.


Thisreportsetsoutlearninggainedfromareviewofeightinternationalcasestudiesof‘turnaroundtowns’.WedonotadvocatedirectlyimportingtheapproachestakeninternationallytotownsintheUKandIreland,butwebelievethecasesdooffersignificantinsightsthatcaninformtheapproachesthatwetaketotowndevelopmenthere.Importantthemesinclude:

1. Having a story that residents – and others – know

Thetownswelookedatallhaveasenseofpurposewhichiscleartothecommunity.Thisthentranslatesintoa‘story’aboutthetownthatisheldincommonbyitsresidentsandothers.DuluthappreciatesitslocationonLakeSuperior,andis‘justtherightsize’toattractyoungprofessionalstobasethemselvesthere(andalsothebusinessesthatwanttoemploythem).Allentown’sstoryisthatitisintheprocessofrevivingitsdowntownanditspost-industrialriverbank.Paducahhaseffectedamajorturnaroundbyturningitselfintothehomeofavibrantartsandsmallbusinesscommunity.The‘TupeloStory’becameinternationallyknownastheunlikelypoorMississippitownthat,withdecadesoffocusedeffort,beatallthetrendsandstereotypestobecomesustainablyprosperous.

TheseexamplesaligncloselywiththeprinciplesestablishedinthenewWorldTownsFramework.Thefirstoftheseprincipleshighlightsthe‘uniquenessofplace’andcommitstosupporting‘the unique characteristics of each town and

urban district, the “DNA of place”, to engage communities, business and institutions in driving forward their future, and to address the plural and distinctive set of challenges facing these unique places’.

Theenthusiasmcanshinethroughinthetellingofthesestories.Onelocalresidentdescribedhistownasfollows:

Oamaru is a bustling little town. The cafes and restaurants are busy, and, even with winter approaching, there are still some tourists roaming the streets, lined with their extraordinary collection of Victorian stone architecture. It’s not just the buildings, there are the little blue penguins and steampunk. Oamaru, New Zealand capital of steampunk! But many people believe that what’s really making this town buoyant is irrigation....water makes this town tick. 51

51 Oamaruresident,InfrastructureEvidenceBaseRefresh–Nation-alInfrastructureUnit,NewZealandGovt,March2015

4. Conclusions from our research

Theplaceswherewelivehaveasignificantimpactonourwellbeing.IntheUKandIreland,wheretwo-thirdsofpeopleliveinsmallandmediumsizedtowns,thestatusofourtownsisimportant.


Alsocleartoresidentsisthetown’shistory,itspurposeandroleovertime,andhowthathaschanged.ThreeyearsintohisAmerican FuturesjourneyaroundthetownsofAmerica,theAtlantic’sJamesFallowswrote:‘Successful [towns] have stories... as with guiding national myths, the question is not whether these assessments seem precisely accurate to outsiders. Their value is in giving citizens a sense of how today’s efforts are connected to what happened yesterday and what they hope for tomorrow.’52

Thesestoriesmorphintowhatthetownis‘knownfor’,andintohowitsellsitselftovisitors.Someplacestrytogostraightforthelatter,whichmightincreasetourism,butwhichrarelytransformstheoverallfortunesofthetownonitsown.53

2. Addressing economic challenges

Wefoundthatthemostsuccessfultownshavearealisticapproachtothesustainabilityoftheireconomicbase,andworkthrougheconomicchallengesratherthanaroundthem.Wefoundmanystoriesthatfocusedexclusivelyon,forexample,environmentalsustainability.However,iflocaleconomicsustainabilityisnotsecured,locallivelihoodsarenotsafeguarded.

It’simportanttonoteherethatnotownfocusedsolelyontheireconomy–theyalsoworkedonimprovingtheexperienceoflivinginthetownforresidents.Toprovideforboththematerialandpsychologicalneedsoftheirresidents,athrivingtownhastodomanythingsatonce,fromofferingreasonablysecurelivelihoods,tocreatingasenseofidentityandsocialconnection.

However,ignoringeconomicchallengesdoesnotgiveasustainableanswertowhere

52 ElevenSignsaCityWillSucceed,TheAtlantic,March2016

53 RevivingSmallTowns:AmericatheCreative,TheEconomist19Dec2006:“In1992Hidalgo,asouthTexastown,decidedtocapitaliseonitssiteinthemigrationpathofthedreadedAfricankillerbees.Thetownboldlyerecteda20-foot-longstatueofabee,madefromfibreglassandsteel,andwaspromptlydubbedthe‘KillerBeeCapitaloftheWorld’.Touristsflockedin.”

people’slivelihoodsaregoingtocomefrom,inthenearormedium-term.Ourcasestudytownsunderstoodchangingconditionsandworkedtoreinventtheireconomicbasesifnecessary.TupeloandDouglasareclearexamplesofthesuccessofthisapproachinthefaceofeconomictrendsthatcouldhaveleftthetownsbehind.Tupelo’srelentlessfocusoneconomicdevelopmentisnowmanydecadeslong,backedupbyafocusoneducationandskills.Douglashasathree-prongedeconomicdevelopmentapproach:recruitingadiverserangeofindustrialemployers;supportingandnurturingsmall-businessentrepreneurs;anddevelopinganewgenerationofleaderswhounderstandeconomicdevelopment. Whenitcomestorecruitingspecificindustries,thetown’sgoalistoattractadiverserangeofcompaniesthatpayreasonablelivingwages.‘We don’t go out of our way to land minimum wage jobs,’saidLukeMorgan,EconomicDevelopmentAuthority(EDA)president.54

Manyofourcasestudytownsalsodeliberatelysoughttodiversifytheirlocaleconomytohelpmakeitresilientagainsteconomicshocksordownturns.Douglasworksonhomegrownbusinessentrepreneurship,aswellasseekingtoattractemployersfromoutofthearea,andDuluthis‘now a full-fledged business hub, attracting tech companies, medical providers, law firms and companies of all kinds’.55TheDeputyMayorofOamaruwaskeentoemphasisethattheirlocaleconomyhadtransformedinthepast10to15years,fromrelyingonjustthreecompanies,toawiderrangeoflocally-basedbusinessesandnewtourismincome.Allentownisworkingonits‘walkablemanufacturing’andincubators,aswellasdrawingbigemployerstothenewly-revitaliseddowntown.MayorGayleKalerofPaducahdescribeshertownas:‘A regional hub for health, education, and business. But Paducah also is a creative


55 Duluthfindstherightformula:Naturalbeauty,strongworkforcebringsinthebusiness,MinnesotaRealEstateJournal,March23rd,2015


community with a variety of artists ranging from internationally-known painters to students who are just learning a craft.’56

3. Local leaders driving change

Ourturnaroundshappenedbecauselocalpeopleusedlocalassetstomakethingshappen.AccordingtoVaughnGrisham,whohasstudiedtheTupeloexperienceindepth,thiscontrastswithanothertypeofeffortthatisrarelysuccessful–wheresmalltownleadersexpectsolutionstocomefromgovernment.‘Usually, that is going to sit on some bureaucrat’s desk, and nothing happens... if something gets done, it is going to be because you do it. No-one cares that much about the community except those people who live there or used to live there.’ Backinthe1950s,localnewspapereditorGeorgeMcLeandistributedaleafletwhichincludedthephrase:‘There is no Santa Claus at the State Capital, State College, or Washington. If you want the job done, you will have to do it yourself.’ 57

Localleaderscanaccessanduseexternalresources,butinnoneofourcasestudiesdidthestorystartoutsidethetownitself.

Theselocalleadersdonotneedtoconformtotraditionalnotionsof‘leadership’.VaughnGrisham,writingabouttheTupelostory,referstothemas‘catalysts’,whosemostimportantskillwasmakingconnectionsbetweenpeople.Grishamalsofoundthattheyoftencomeinpairs,makingthemmoreresilient:‘These individuals provided support in the most trying of times. When burnout affected one, the other was there to be a cheerleader.’58

Grishamarguesthatcommunityleaders–orcatalysts–neednotbecharismatic,politicallysavvy,orexceptionallycreative.HegivestheexampleofanaccountantwhotooktheTupelostorytohishometownofMorrilton


57 SmallTownSuccessStoriesCanServeasModelsforOthers,MississippiBusiness,October2004


andbecameoneofthecommunityleadersthere:‘Shy and low-key, Barry McKuin seems an unlikely crusader. His wife still remembers how his excitement surprised her when he came home and told her about hearing Grisham for the first time. “It was striking,” she says, because “he never gets excited about anything.” Nevertheless, he has been able to draw others to the vision in Morrilton. He has no charisma but everyone trusts him.’59 Meanwhile,inDuluth,MayorDonNesssaidina2012profilethathehadalwaysbeenalittleawkwardand‘too boring’ forhigheroffice,jokingthat:‘I have the nerd vote locked down.’60

Theseleadersmaynotsetouttobehigh-profile,butpeopleintowncannamewhotheyare.TheAtlantic’sAmericanFuturesproject’sJamesFallowscomments:‘A standard question we’d ask soon after arrival [in a town] was: “Who makes this town go?” The answers varied widely. Sometimes it was a mayor or a city-council member. Sometimes it was a local business titan or real estate developer. Sometimes a university president or professor, a civic activist, an artist, a saloon-keeper, a historian, or a radio personality. In one city in West Virginia, we asked a newspaper editor this question, and the answer turned out to be a folk musician who was also a civic organiser. What mattered was that the question had an answer. And the more quickly it was provided, the better shape the town was in.’ 61

Inmanycases,localleadershipwascomplementedbystronglocalengagement.InTupelo,thisgoesrightbacktothebeginningwhenRuralCommunityDevelopmentCouncilswereestablished,whichthenfosteredmorewidelydistributedlocalleadershipbysetting


60 DuluthMayorDonNesswon’trunagain,StarTribuneOctober12th,2014.WhenNessannouncedhewouldnotseekathirdterm,hewrotethatheplannedtoturnoffhisphoneandheadtothewoodswithhiswifeandthreeyoungchildren,andwouldnotbeavailableforcomment…If I thought for a moment that my role was necessary for our continued success, I would run again. But it’s not. The progress we’ve made as a city continues because it’s based on the strengths of our city and efforts of thousands – the mayor is just one of many…”

61 ElevenSignsaCityWillSucceed,TheAtlantic,March2016


upneighbourhoodgroupsof10to12families,drawingvirtuallythewholecommunityin.InDouglas,whenAmericanInsulatedWirewassearchingforanewsite,theChamberofCommerceorganisedawelcomingeventforthevisitingexecutives.Withonly24hours’notice,thetowngot500Douglasresidentsouttothelocalairporttowelcometheexecutivesastheywalkedofftheairplane.ThecompanydecidedtosettleinDouglasand,accordingtoacompanyexecutive: ‘What sold us on Douglas was the people.’62

Thesetwotownsalsounderstandtheimportanceoftrainingfuturelocalleaders:‘Similar to a sports team, every community must have bench strength.’63Douglas’s‘LeadershipCoffee’programmegivesparticipantshands-onlearningexperienceingovernment,educationandthepracticeofeconomicdevelopmentatthelocal,regionalandstatelevels.Graduatesoftheprogrammebecomeleadersonlocalboardsandcommissions.InTupelo,theJimIngramCommunityLeadershipInstitutetrainstheirnextgenerationofleaders.Theprogrammeprovidesorientationissuesincludingeconomicandcommunitydevelopment,education,healthcareandlocalgovernment,aswellastraininginleadershipskills.

62 SmallTowns,BigIdeas:CaseStudiesinSmallTownEconomicCommunityDevelopment,WillLamb,UniversityofNorthCaroli-naSchoolofGovernmentandNorthCarolinaRuralDevelopmentCentre,2008

63 DavidRumbarger,CDFpresidentandCEO,quotedinYoungLeadersCarryOntheTupeloStory,Livability.Com.May122014

4. Cross-sector collaboration

Cross-sectorcollaborationwasapparentrightacrossthecasestudies.InhismanyyearsoftellingtheTupelostory,VaughnGrishamfrequentlymadeadistinctionbetweenleadersandleadership:aleaderisthepersonandleadershipinvolvestheirrelationships,andthe‘TupeloSpirit’isfoundintherelationships.InDouglas,theEconomicDevelopmentAuthoritysharesofficeswiththeChamberofCommerce,andtheEDA’sboard’ssevenmembersconsistofthreeappointedmembersfromthetown,threefromthecountyandtheChamberofCommerce’sexecutive.InPaducah,artistsgottogetherwiththetown’splannersandthelocalbanktocomeupwiththeArtistRelocationProgramme.InOamaru,theDistrictCouncilco-fundedirrigationandtourisminvestmentswiththeprivatesector.InAllentown,localandstatepoliticiansworkedwithdeveloperstosetuptheNeighbourhoodInvestmentZone.

TheselasttwolessonsarereflectedintherecentWorldTownsAgreement,whichincludestheprinciple: Great Relationships with Blurred Boundaries: We recognise that great towns and urban districts have great economic and social relationships. These relationships foster collaboration, based on shared outcomes. We recognise that successful places will embrace the blurring, bridging and fusion of the traditional boundaries between public, commercial, and community sectors.64

Commoncauseacrossboundariesoftenresultsinastrongsenseofpragmatism,particularlywheremayorshavealotofexecutiveauthority. MorecommonintheUS,theseareknownas‘strongmayor’systems.ThepowerofmayorslikeMichaelBloomberginNewYorkandRahmEmanuelinChicagotocarryoutmajorchangeisnowwell-known(thecongestionchargeinLondononlybecamepossiblewhenamayorcoulddoit).Thisisnotlimitedtobigcities,

64 WorldTownsAgreement,WorldTownsLeadershipSummit,2016


though.TheformermayorofDuluthsaidhecould‘justgetonwithit’:

Being a mayor, especially in a “strong mayor” system, gives you tremendous opportunities... It’s a job that requires – and allows – you to create and implement a tangible agenda. You can carry that out in a way that most positions in American politics just don’t permit.

TouringtownsaroundAmerica,includingDuluthandAllentown(whichalsohasastrongmayorsystem)JamesFallowswrotethat,atthetownlevel,politicsandpolicy-making ‘can seem practical-minded, non-ideological, future-oriented, and capable of compromise’.65

5. Beingflexibleandfindingtherightpath to success

Thoughallthejourneysstartedwithinthetownsthemselves,theyallfolloweddifferentroutes.Tupelofocusedhardoneducationandeconomicdevelopmentinthetownandthecountyovermanyyears,whilethesituationinHavenAcresturnedaroundasaresultofgrassrootscommunityactivism.Thisledtoproductivepartnershipsbetweentheresidents,thecouncilandthepolice.Douglasbalancesrecruitinglarge,out-of-townemployerswithnurturinghome-grownentrepreneurs.A‘strongmayor’inDuluthhadtofocusonfiscalmatterstogetthecity’sbudgetbackonasustainablefooting,whilesellingthetown’scomparativeadvantagestoemployers,entrepreneursandtourists.

ApartnershipoflocalpoliticiansandbusinessleaderspersuadedPennsylvaniatomakeexceptionstoitstaxlawstoallowittoattractbusinessdowntownagain.Paducahworkedtorevitalisederelicthistoricdowntowndistrictandinvitedartistsintohelpupgradethearea.Theyhavebeenrewardedwithtourismincome

65 TheAtlantic:WhyCitiesWorkEvenWhenWashingtonDoesn’t,TheCaseforStrongMayors.

andaUNESCOdesignation.InAustralia,asmall,non-profitorganisationinNewcastleexaminedtenancyregulationsandfiguredoutawaytogettheemptyCentralBusinessDistrictbuzzingagain.IthastransformedNewcastle’ssenseofitselfintheprocess.InNewZealand,realisingthatOamaruwouldonlythriveifthesurroundingruralareadidwell,thedistrictcouncil,aswellasinvestingintourisminfrastructureintown,wentintopartnershipwithfarmerstoinvestinirrigation.

6. Committing to the long term

Manyofourcasestudytownshavebeenworkingonthesustainabilityoftheirtownsformanyyears.Itisover30yearssinceDuluthsawitspopulationhitrockbottomandstarttorecover.TheDeputyMayorofOamaruspeaksofa20yeartimescale.AllentownandNewcastlearestillinprocess.Tupelostarteditsjourneyinthelate1930s,andisstillworkinghardtochange.

Tupelo has been at this for decades and probably did not have very much to show for its efforts in the first five years. Persistence is key. 66

66 BetterTogether:RestoringtheAmericanCommunitybyPutnam,Feldstein,andCohen,SimonandSchuster,2004


Theresearchalsoidentifiedanumberofchallenges,particularlyaroundtheevidencebaseforturnaroundtowns.Theglobalevidencebaseforturnaroundtownsisnotrobust,withlittleavailableacademicresearch,andsignificantgapsindatacollectionandavailability.TheWorldTownsLeadershipSummitrecognisedsimilarissues,andidentifiedtheneedtocreatesharedspacesfordataonplacesandpractices,governedcollectively,andmanagedregularly.

ThisreportmarksanewphaseintheCarnegieUKTrust’sworktostrengthenourpolicyand

evidencebaseonwhatworksforturnaroundtowns.Overthecomingmonths,theTrustwillbesharingthefindingswithpolicymakersandpractitionersacrosstheUKandIreland,andexamininghowandwhendifferentleversmightbedevelopedtoenableUKandIrishtownstoapplythelearningsfromsuccessfulturnaroundstoriesfromoverseas.

TheTrustiskeentoworkinpartnershipwithlike-mindedorganisations.Ifyouwouldbeinterestedinexploringanyofthethemesexaminedinthisreport,theTrustwouldbedelightedtohearfromyou.

5.NextSteps

Thisreportcontributestoagrowingbodyofinternationalevidencearoundwhatworksforturnaroundtowns.ManyofthethemesdrawnoutfromthecasestudiesalignwiththoseidentifiedbytheWorldTownsFrameworkthatemergedfromtheWorldTownsLeadershipSummitearlierthisyear.Theseincludetheimportanceofnarrativesaroundplace,collaborationtodealwithuncertaintyandchangingcontexts,andstronglocal,collaborativeleadership.

Way Ahead


The Main Street Four-Point ApproachTheNationalTrustforHistoricalPreservationhashelpedmorethan2,000communitiesofvarioussizesrevitaliseslumpingcommercialareasthroughitsMainStreetFour-PointApproach.OndesignationasaMainStreetcommunity,theco-ordinatingprogrammeintheirstate,cityorregionprovidesadviceandinformationaboutplanning,executingandfunding.TheMainStreetApproachismosteffectiveinplaceswherecommunityresidentshaveastrongemotional,social,andcivicconnectionandaremotivatedtogetinvolvedandmakeadifference,andwhereexistingassets—suchasolderandhistoricbuildingsandlocalindependentbusinesses—canbeleveraged.Itencouragescommunitiestotakestepstoenactlong-termchange,whilealsoimplementingshort-term,inexpensiveandplaced-basedactivitiesthatattractpeopletothecommercialcoreandcreateasenseofmomentum.

1. OrganisationOrganisationestablishesconsensusandco-operationbybuildingpartnershipsamongthevariousgroupsthathaveastakeinthecommercialdistrict.Withthislevelofcollaboration,yourMainStreetprogrammecanprovideeffective,ongoingmanagementandadvocacyforyourdowntownorneighbourhoodbusinessdistrict.Agoverningboardofdirectorsandstandingcommitteesmakeupthefundamentalorganisationalstructureofvolunteer-drivenrevitalisationprogrammes.Volunteersareco-ordinatedandsupportedbyapaidprogrammedirector.

2. Economic RestructuringStrengthenexistingeconomicassetswhilediversifyingeconomicbase.Successfulcommunitiesaccomplishthisbyevaluatinghowtoretainandexpandsuccessfulbusinessestoprovideabalancedcommercialmix,sharpeningthecompetitivenessandmerchandisingskillsofbusinessowners,andattractingnewbusinessesthatthemarketcansupport.ManyMainStreetprogrammesalsoachievesuccessthroughcreativereuseofhistoricproperties.Thegoalistobuildacommercialdistrictthatrespondstotheneedsoftoday’sconsumerswhilemaintainingthecommunity’shistoriccharacter.

3. PromotionPromotiontakesmanyforms,butthegoalistocreateapositiveimagethatwillrenewcommunityprideandtellyourstorytothesurroundingregion.Promotionscommunicateacommercialdistrict’suniquecharacteristics,itsculturaltraditions,architecture,andhistoryandactivitiestoshoppers,investors,potentialbusinessandpropertyowners,andvisitors.

4. DesignDesignmeansgettingMainStreetintotopphysicalshapeandcreatingasafe,invitingenvironmentforshoppers,workers,andvisitorswhilepreservingaplace’shistoriccharacter.Anappealingatmospherecreatedthroughattentiontoattractivevisualelements,conveysapositivemessageaboutthecommercialdistrictandwhatithastooffer.

Annex


BetterTogether:RestoringtheAmericanCommunitybyRobertD.Putnam,LewisFeldstein,DonaldJ.Cohen,SimonandSchuster2004

CityscapesandCapital:ThePoliticsofUrbanDevelopment,ByMichaelA.Pagano,AnnO’M.Bowman,JohnsHopkinsUniversityPress1997

CreatingCreativeEnterpriseHubs:AGuide,MarcusWestbury,ArtsNSW,2010

ExtraordinaryResultsinOrdinaryCommunities,VaughnGrisham,KetteringInstitute,2010

Hand in Hand: Community and Economic Development in Tupelo. Grisham and Gurwitt. Aspen Institute, 1999.

HowSmallTownsAndCitiesCanUseLocalAssetsToRebuildTheirEconomies:LessonsFromSuccessfulPlaces,EPA,2015

ReachingfortheFuture:CreativeFinanceforSmallerCommunities,UrbanLandInstitute,2016

ResilientDowntowns:ANewApproachtoRevitalizingSmallandMediumCityDowntowns,MichaelA.Burayidi,Routledge,2013

SmallTowns,BigIdeas:CaseStudiesinSmallTownEconomicCommunityDevelopment,WillLamb,UniversityofNorthCarolinaSchoolofGovernmentandNorthCarolinaRuralDevelopmentCentre,2008

SmallTownSustainability,PaulL.Knox,HeikeMayer.BirkhauserVerlagAG,2013

URBACTIIProjectResults,SecondEdition,EuropeanUnion,2013

Bibliography

TheCarnegieUKTrustworkstoimprovethelivesofpeoplethroughouttheUKandIreland,bychanging

mindsthroughinfluencingpolicy,andbychanginglivesthroughinnovativepracticeandpartnershipwork.

TheCarnegieUKTrustwasestablishedbyScots-AmericanphilanthropistAndrewCarnegiein1913.

Andrew Carnegie House

Pittencrieff Street

Dunfermline

KY12 8AW

Tel: +44 (0)1383 721445

Fax: +44 (0)1383 749799

Email: [email protected]

www.carnegieuktrust.org.uk

ThisreportwaswrittenbyJane-FrancesKelly

November2016

Carnegie United Kingdom TrustScottish charity SC 012799 operating in the UK and IrelandIncorporated by Royal Charter 1917

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