In the decade or so up to the pandemic, revitalising historic downtowns was the big hope of many leaders of struggling cities in America’s rustbelt. And to a remarkable extent they were succeeding
“If we don’t have a thriving urban core… we don’t have tax revenue to fix potholes, to pay police officers more, to hire more folks to pick up trash and do recycling,” he says. “The urban core of any city is its heart and the soul.” It “feeds all of the arteries” that keep other neighbourhoods alive.
Yet the pandemic has been a terrible setback. The wealthy office workers whom developers hoped to coax into cities with walkable commutes now have the option of working from home. In Cleveland, only around three-fifths of office workers are regularly back at their desks, according to data from the Cleveland Downtown Alliance, a local lobby group. Shopping centres and restaurants are reeling, even as their competitors in the suburbs thrive.
Mr Gilbert’s idea is, in essence, that scale allows you to internalise spillover benefits. Restoring a single derelict skyscraper on its own might not be profitable enough to be worth it. But when you bring a building back to life, the ones next to it also go up in value. If you own those buildings too, perhaps the project becomes profitable. In Detroit, “we knew that an influx of investment in the city core would attract additional capital”, he says.
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