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Restoring Prosperity the State Role in Revitalizing America’S Older Industrial Cities

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Restoring Prosperity the State Role in Revitalizing America’S Older Industrial Cities The State Role in Revitalizing America’s Older Industrial Cities The Brookings Institution Metropolitan Policy Program Restoring Prosperity The State Role in Revitalizing America’s Older Industrial Cities T HE B ROOKINGS I NSTITUTION M ETROPOLITAN P OLICY P ROGRAM © 2007 Acknowledgements The Brookings Institution Metropolitan Policy Program is grateful Johnson (William Penn Foundation); John Weiler (F.B. Heron to the many people who have supported this project with their Foundation); and Hal Wolman (GWIPP). Jeremy Nowak (The expertise, insight, and resources. Reinvestment Fund), Diane Bell-McKoy (Associated Black First and foremost, we would like to thank the Surdna Charities), and Sharmain Matlock-Turner (Greater Philadelphia Foundation for their generous support of this effort. We particu- Urban Affairs Coalition) also provided very helpful advice early on larly want to acknowledge the tireless contributions of Kim in the development of the project and report. Burnett, whose knowledge and enthusiasm have helped this proj- We also want to thank Professor Anne Power and her team at ect grow from a single report to a major organizing and research the London School of Economics (LSE) for stimulating our think- effort. We also want to express our gratitude to the F.B. Heron ing about the revival of industrial cities. This project has benefited Foundation and the William Penn Foundation for providing addi- tremendously from the trans-Atlantic exchange of innovations tional funding for this report, as well as the Fannie Mae and ideas our partnership has fostered. We also thank the HM Foundation, the Ford Foundation, the George Gund Foundation, Treasury and the Office of the Deputy Prime Minister for support- the Heinz Endowments, the John D. and Catherine T. MacArthur ing our participation in the European City Reformers Group Foundation, the Charles Stewart Mott Foundation, and the meeting at the LSE in September 2006. 2 Rockefeller Foundation for their general support of our work. Finally, we want to note that the Metro Program is lucky to be The Metro Program also wishes to show its appreciation to part of a fabulous team of people and organizations that are work- Hal Wolman, Kimberly Furdell, Nancy Augustine, and Pamela ing to build an initiative focused on the revitalization of America’s Blumenthal of The George Washington Institute of Public Policy older industrial cities. This includes, at the national level, Don (GWIPP), and Ned Hill of Cleveland State University, for develop- Chen and Smart Growth America; Radhika Fox and PolicyLink; ing the methodology used to identify the 65 older industrial cities Matt Kane and the Northeast-Midwest Institute; Alan Mallach and discussed in the report, as well as for collecting and analyzing the National Housing Institute; Ben Starrett, Ann Fowler Wallace, much of the data cited throughout. Their work is a vital part of and the Funders' Network for Smart Growth and Livable this project. We thank, too, David Eichenthal (Community Communities; and Paul Brophy (Brophy and Reilly, LLC), as well Research Council); Julie Wagner (Brookings Institution as, at the state level, Lavea Brachman, Gene Krebs, and Greater Nonresident Senior Fellow); Jillian Barrick Jones, Rachel Barkley, Ohio; George Hawkins and New Jersey Future; Diane Sterner and and Scott Quehl (PFM); and Travis James and Jon Hockenyos the Housing and Community Development Network of New Jersey; (TXP) for their valuable contributions. and Janet Milkman, Todd Vonderheid, Julie Lalo, and Renew PA. Numerous other people offered important guidance and advice These groups, and a growing number of other organizations, have that helped improve the report as it progressed. First, we are been essential in building support within target states for the grateful to the many people who attended multi-day meetings in agenda presented here, and will be key to the project’s success in THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS ACKNOWLEDGEMENTS Washington, D.C. and Philadelphia to discuss the draft report, the years to come. including the nonprofit, foundation, government, and business leaders and practitioners from older industrial cities who shared their wisdom and experience from working in these communities. About the Author Their input was critical to the development of the final product, Jennifer S. Vey, a senior research associate with the Brookings particularly the policy recommendations. We also want to single Institution Metropolitan Policy Program, is the principal author of out those who provided written comments on the draft, including this report. Alec Friedhoff, David Warren, and intern Albena Paul Brophy (Brophy and Reilly, LLC); Cris Doby (C.S. Mott Assenova provided invaluable research assistance to the project. Foundation); William Ginsberg (Community Foundation of Greater Alan Berube, David Jackson, and Mark Muro each offered impor- New Haven); John Hanger (PennFuture); Eric Hoddersen tant suggestions and contributions throughout the final stages of (Neighborhood Progress, Inc.); Paul Levy (Center City District of the report, and Matthew Fellowes, Chris Leinberger, Robert Philadelphia); Alan Mallach (National Housing Institute); Janet Puentes, and Howard Wial provided helpful advice along the way. Milkman (10,000 Friends of Pennsylvania); Joseph Schilling Bruce Katz, in particular, was a critical partner in the development (Virginia Tech); Gerry Wang, Shawn McCaney, and Andrew of this project and the ideas discussed in the report. ■ Contents Executive Summary 4 I. Introduction 8 II. Older Industrial Cities in the U.S. 10 III.The Origins and Challenges CONTENTS of Older Industrial Cities 20 3 IV. Seizing the Moment 34 V. A State Agenda for Revitalizing America’s Older Industrial Cities 44 VI. Organizing for Success 64 VII. Conclusion 68 Appendix 69 Endnotes 77 RESTORING PROSPERITY: THE STATE ROLE IN REVITALIZING AMERICA’S OLDER INDUSTRIAL CITIES IN REVITALIZING ROLE PROSPERITY:RESTORING THE STATE Executive Summary he evidence is clear. On the whole, America’s central cities are coming back. Employment is up, populations are growing, and many urban real estate markets are hotter than ever, with increasing numbers of young people, empty-nesters, and others T choosing city life over the suburbs. Unfortunately, not all cities are fully participating of leaders, where great architecture and parks 4 in this renaissance. An examination of the perform- became public goods, and where glistening down- ance of 302 U.S. cities on eight indicators of eco- towns grew up within blocks of walkable, tree-lined nomic health and residential well-being reveals that neighborhoods where the middle-class swelled and 65 are lagging behind their peers. Most of these thrived. They were, in short, physical testaments to cities—and their larger regions—are older industrial the innovation and spirit that shaped the nation and communities that are still struggling to make a suc- its citizens. cessful transition from an economy based on routine And so they can be again. This report provides a manufacturing to one based on more knowledge- framework for understanding how to restore prosper- oriented activities. Some others are simply dominated ity in America’s struggling cities, particularly those in by the low-wage employment sectors that today char- the Northeast and Midwest. Targeted at state and acterize much of the American economy. But the out- local government, business, and civic leaders comes are largely the same: While many of these Restoring Prosperity: The State Role in cities have strong pockets of real estate appreciation Revitalizing America’s Older Industrial Cities and revitalization, on the whole they remain beset by describes the challenges facing these communities, THE BROOKINGS INSTITUTION METROPOLITAN POLICY PROGRAM INSTITUTION METROPOLITAN THE BROOKINGS EXECUTIVE SUMMARY slow (or no) employment and business growth, low the unprecedented opportunity that exists to leverage incomes, high unemployment, diminishing tax bases, their many assets, and a policy agenda to advance and concentrated poverty—remnants of five decades their renewal. of globalization and technological change, and the The report underscores three central messages: dramatic shift of the country’s population away from the urban core. ●1 Given their assets, the moment is ripe for the These cities weren’t always in such a tenuous posi- revival of older industrial urban economies. Older tion. To the contrary, they were once the economic, industrial cities possess a unique set of characteris- political, and cultural hubs of their respective tics and resources that, if fully leveraged, could be regions, and the engines of the nation’s economic converted into vital competitive assets. These include growth. They were vibrant communities where new distinctive physical features—including waterfronts, ideas and industries were conceived and cultivated, walkable urban grids, public transit, and historic where world-class universities educated generations architecture; important economic attributes—such as dense employment centers, universities and medical facilities (often referred to as “eds and meds”), and, for some cities, proximity to more economically robust metropolitan areas; and rich social and cultural ameni- ties—like public art, theater, sports, and museums. Moreover, older industrial cities are still important cen- ters of regional identity, inspiring a sense of pride and place, which, while needed to thrive. It has helped
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