UNIVERSITY OF CINCINNATI Date:___________________ I, _________________________________________________________, hereby submit this work as part of the requirements for the degree of: in: It is entitled: This work and its defense approved by: Chair: _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ ECONOMIC DEVELOPMET POLICIES FOR DOWNTOWN REVITALIZATION: APPROACHES FOR SUCCESS IN THE NEW ECONOMY A thesis submitted to the School of Planning of the University of Cincinnati in partial fulfillment of the requirements for the degree of MASTER OF COMMUNITY PLANNING in the Department of Planning of the College of Design, Architecture, Art, Planning 2004 by Michelle R. DiGuilio-Matz B.A., University of California, San Diego, 1992 B.A. University of Cincinnati, 1997 Committee Chair: Dr. Carla Chifos Committee Member: Dr. Michael Romanos Committee Reader: Dr. Judith Jones ABSTRACT One of the responsibilities of any public sector authority is to explore and implement policies that stimulate economic development within city boundaries. Communities throughout the United States are continuously exploring new ways to encourage economic growth within city limits and often look to the success of other communities as a means to guide them in their quest for economic success. One option that has found resurgence and proven to be economically viable for various communities of all sizes is that of downtown redevelopment/revitalization. But what makes for successful economic development in downtown urban areas and what role do public sector policies play in directing successful resurgence of a community’s downtown? This thesis first seeks to answer the question, “What are successful economic development policies that (1) go beyond the public sector’s traditional approach to economic development and (2) take into account the major shifts impacting how business is conducted in today’s economy?” The second part of this thesis is an application of the first question to a case study community as a means to determine the potential success or failure of the community’s economic development policies. Ultimately, this creates a resource for planners and local government officials to understand the factors influencing economic success in urban areas and provides strategies for economic development approaches geared to the characteristics of place that are the most attractive to the people and the businesses operating in the new economy. Through the creation of a framework of successful economic development characteristics, and the review of a case study community – that of Stockton, California – in which to apply such characteristics, economic development approaches can be better understood and utilized by public officials. The research conducted in this thesis offers an option for government officials to improve the chances of achieving success in their economic development policies for downtown revitalization. The resulting framework of successful development approaches provides planners and government officials with a means to leverage economic development policies for maximum economic gains in urban areas. ACKNOWLEDGMENTS I would first like to thank the members of my committee for their support and professional guidance throughout this process. To my Committee Chair, Dr. Carla Chifos, for her ultimate patience and gentle encouragement in ensuring this thesis’ completion. And for being a source of academic inspiration from the first course through the final defense. To Dr. Michael Romanos for his enthusiasm and leadership in topics of economic development and academic endeavors. And for providing the opportunities to explore intellectual and international experiences. To my friend, colleague and mentor, Dr. Judith Jones. For believing in me, pushing me to finish and serving as a role model in what can be accomplished with a busy life and family obligations. To my friends and family, especially my parents, who started me on this journey of higher education, and never doubted my ability to undertake this challenge. Your faith in me and insistence that I finish (even through the maternal uncertainties of actual completion) have served as an unending source of strength. And to my husband, Lou Matz, whose belief in me far surpassed anything I could envision. Words cannot begin to express the level of support, love, and patience you have given that has allowed me to complete this journey. Without you, Sunbear, I truly would not have had the strength to finish. I love you deeply. This thesis is dedicated to my son Jared and the future children of our family. May you realize the beauty of intellectual pursuits, both small and large. And may you always find a way to meet the challenges that come your way. TABLE OF CONTENTS Table of Contents……………………………………………………………………………... 1 List of Tables..............................................................................................................................5 List of Figures…………………………………………………………………………...……. 6 List of Images ………………………………………………………………………………… 6 Chapter 1 – Introduction.............................................................................................................8 1.A. Background.............................................................................................................8 1.B. Problem Statetment ..............................................................................................10 1.C. Methodology.........................................................................................................11 1.D. Conclusion............................................................................................................14 Chapter 2 – Literature Review .................................................................................................16 2.A. The New Economy .............................................................................................. 16 2.A.(1) Concepts of a Technology Based Economy……………………..…….…..16 2.B. Geography in the New Economy………………………………………………..21 2.B.(1) Human Capital and Quality of Life……………………………………….22 2.B.(2) The Argument for the Urban Core………………………………………. 24 2.B.(3) Characteristics of the People in the Urban Core (“New Urbanites”)……….28 2.C. The Creative Class………………………………………………………………32 2.C.(1) Defining the Creative Class………………………………………………33 2.C.(2) The Evolution of the Creative Class and its Place in the Economy………35 2.C.(3) Attracting the Creative Class …………………………………………….39 2.C.(4) Measures of Successful Communities: Indexes…………………………..42 2.C.(4.a) Creativity Index………………………………………………….……42 2.C.(4.b) Cultural Amenities Indexes………………………………………..….44 2.C.(4.c) The Composite Diversity Index…………………………………….…49 2.D. The Entrepreneurial State ……………………………………………………….53 2.D.(1) Supply-Side Policies, Demand-Side Policies and the Entrepreneurial State…..54 2.D.(2) Policy Implications ……………………………………………………….57 2.D.(3) Entrepreneurial Activities: Venture Capitalist …………………………....59 2.D.(4) Anticipating and Creating Markets…………………………………….…60 1 2.E. Conclusion…………………………………………………………………….....62 Chapter 3 – Stockton, California Data .....................................................................................64 3.A. Stockton’s Historical Background........................................................................64 3.B. City Government ..................................................................................................67 3.C. Stockton Demographics........................................................................................67 3.C.(1) General Statistics …………………………………………………………67 3.C.(2) Ethnic Diversity………………………………………………………..….69 3.C.(3) Age Breakdown …………………………………………………………..69 3.C.(4) Income and Housing Statistics …………………………………………...70 3.D. Economic Profile………………………………………………………………...71 3.D.(1) Work Force ………………………………………………………………..71 3.D.(2) Wage Rates…………………………………………………………….….72 3.D.(3) Economic Incentives……………………………………………………...72 3.E. Higher Education Resources…………………………………………………….73 3.F. Transportation Links…………………………………………………………….74 3.G. Downtown Specific Information………………………………………………..74 3.G.(1) Downtown Demographics……………………………………………..…75 3.G.(1.a) Public Safety……………………………………………………….…76 3.G.(1.b) Downtown Business and Employee Profile…………………………..77 3.G.(1.c) Economic Incentives………………………………………………….77 3.G.(2) Resources Available in the Area …………………………………………78 3.G.(2.a) The Downtown Built Environment…………………………………...78 3.G.(2.b) The Waterfront…………………………………………………….….79 3.G.(2.c) Government Center…………………………………………………...80 3.G.(2.d) Cultural Diversity……………………………………………..…..…..81 3.G.(3) Conclusion…………………….. …………………………………………81 Chapter 4 – Case Study: Stockton Data………………………………………………………83 4.A. The Actors…………………………………………………………………..…..83 4.A.(1) The City of Stockton………………………………………………….......84 4.A.(2) Downtown Stockton Alliance……………………………………………..86 2 4.A.(3) San Joaquin County Partnership……………………………………….….89 4.A.(4) Art Organizations (Stockton Arts Commission & Cultural Heritage Board)……….89 4.A.(5) Other Players: Chamber of Commerce & Council of Governments……....90 4.B. The Documents…………………………………………………………...…..92 4.B.(1) City of Stockton General Plan and Policy Document…………………….92 4.B.(2) Urban Land Institute Report…………………………………………...…93 4.B.(3) Downtown Stockton Strategic Action Plan ……………………………...94 4.B.(4) Waterfront Plan………………………………………………………...…95 4.B.(5) City Council Plan for 2002-2003…………………………………………96