As published in the December 1, 2008 Toledo Business Journal
Tom Crothers
Downtown Toledo Improvement District, Inc. (DTID)
Greater Downtown Business Partnership (GDBP)
New downtown Toledo initiative advancing
Arena Neighborhood Development Initiative (ANDI)
to aid growth
Toledo Business Journal recently interviewed Tom Crothers, executive director, Downtown Toledo Improvement District, Inc. (DTID) and president of the Greater Downtown Business Partnership (GDBP). He shared the following thoughts.
Toledo Business Journal: Can you discuss trends during the past five to ten years concerning vacancy rates and employee levels in downtown Toledo?
Tom Crothers: I don't think this is a trend only in the last ten years. This [issue] has been going back to the late 1970s and 1980s; it's been happening not only in Toledo, but also all across our nation.
During this period, there has certainly been a trend to move out of central cities, which was accelerated by a number of factors. The City of Maumee, for example, very wisely put together a district out there, built the infrastructure, and set up income tax incentives — which were unique at the time, but now less so — to lure businesses in the region to Arrowhead Park.
As a result, about 18,000 workers left downtown Toledo for Arrowhead Park and other developments during that period of time. We had about 36,000 people working in downtown then, and we have roughly 20,000 now. So, most of those folks went to work in outlying areas.
Now, why did that occur? It occurred because we have a very mobile workforce, a very mobile society. We had cheap gasoline, and we no longer have that. And one of our greater assets in northwest Ohio is [people] saying, "I can get anywhere in Toledo in 20 minutes." It's a wonderful thing.
That has been an advantage for us as a community and it has allowed us to have a lot of great neighborhoods. But, what ultimately happened is that the jobs and businesses left downtown, which should really be the epicenter of our region.
We're fortunate in that we still have about 18-20,000 people working in greater downtown; we have roughly 18,000 in the core and another 2,000 in the periphery.
Having said that, there's a new trend in America, which is starting to turn downtowns around, which is explained in The Brookings Institution's research brief, Turning Around Downtown: 12 Steps to Revitalization. With higher gas prices and with younger folks wishing to live, work, and play in a more urban environment, we find folks starting to gravitate back to the central cities. That's a recent phenomenon over the last two to three years.
These people are generally younger folks and empty nesters. Because of this, you are now starting to see viable market rate residential living opportunities being built in and around our downtown and other downtowns.
We do have a challenge here, but we also have a lot of capacity in some very historic buildings downtown. There's an opportunity here for folks to live and start businesses very affordably in downtown Toledo.
TBJ: Can you compare Toledo's downtown situation with downtown areas in other Ohio cities?
TC: Most other cities are in this boat. Ohio as a state has lost so many of its manufacturing jobs. We're remaking our economy, and we're now starting to see there's an opportunity in green manufacturing and developing non-traditional energy resources. We've got a leg up in that regard. We still make products; it's just higher-tech products, and we have a great workforce for that.
The bad news is that we've all lost many workers in our downtown. This has led to a relatively high commercial and office vacancy rate in our city center with the result that the "critical mass" — which makes any downtown vibrant and appealing to visitors, customers, business owners, and prospective investors — is adversely affected.
We are not unlike any other city in Ohio or the Midwest. That's the good news. To a greater or lesser extent, each city in Ohio is faced with most of the same challenges. Further, these problems are not caused solely by recent events.
As I indicated, the "move to the suburbs" by downtown businesses has been aided by policies put in place by suburban communities to create just this result, and one can't fault them for doing so. Business parks, shopping malls, and other commercial developments have been built in suburbia and prospered for many years with historically cheap gasoline, excellent roadways, and the spurious offer of "free parking".
While this has created a significant reduction in the number of businesses located in downtown Toledo, fortunately many of these workers are still employed by firms located throughout our region.
The facts surrounding these issues are irrefutable. The real question is, "What are we going to do about it?"
Arena Neighborhood Development Initiative (ANDI) "visioning concept"
TBJ: What organizations are working to transform Toledo's downtown? Can you discuss the strategy these organizations are undertaking?
TC: The Greater Downtown Business Partnership (GDBP) and its member organizations: Downtown Toledo Improvement District, Downtown Toledo Parking Authority (DTPA), and the Toledo Design Center (TDC) are committed to working closely with other economic and community development organizations to undertake the challenge of revitalizing greater downtown Toledo.
I think it is everybody's responsibility to redevelop northwest Ohio. When I say that, I mean the large corporations to medium and small business to government and to the individuals who live and work here.
We need to change people's attitudes; from the individual all the way up to the corporate level. We simply need to understand that we have a marvelous opportunity here to do some great things.
We've suffered some great hits, because one of our greatest strengths is manufacturing and we don't build as many things in this country anymore. So, as we now start to ramp up other industries, businesses, and services, we'll remake our economy. We just need to get together, decide we can do it, and get moving.
TBJ: Can you discuss the role of the Downtown Toledo Improvement District and explain the funding that this entity provides?
TC: I currently wear two hats. On one level, I'm the executive director of the DTID. DTID is a special improvement district also known as a business improvement district. These districts are created when the property owners in a specific district believe that the government is no longer able to provide a number of essential services due to budgetary constraints. At the very least, these services aren't being provided to the levels that property owners consider adequate to protect their investment or that can create a business friendly environment.
These business improvement districts can undertake a lot of things — such as capital improvements, the delivery of value-added services, and more — depending upon the work plan that has been adopted.
In DTID's 38-block district, our property owners signed petitions to assess themselves to provide the services that they felt were essential if we are to create a wholesome, business friendly environment in downtown Toledo.
Basically, our district is bordered by the Maumee River on the east, 10th and 11th Streets on the west, Monroe Street on the south, and Adams Street on the north. We also take in Owens Corning and One SeaGate along the riverfront.
Our services primarily include those delivered by our Clean & Safe Ambassadors. They tour our district several times each day to create a neighborhood that is clean, safe, and welcoming.
We work in the rights of way, but we don't get into the streets where the street sweepers operate, because that's "City work." We handle the right of way from the façade of a property owner's building to the curb. We clean up all the debris within that area and clean the alleyways. We also have a special projects component, which power washes the sidewalks and removes all the graffiti we encounter from public and private structures.
Our property owners provide about $550,000 a year for us primarily to fund the Clean & Safe team, which takes up about 60% of that money. The balance is used to implement an overall marketing plan for the district, which includes enhancing communication and helping people market their businesses in a general sense.
Part of that is helping folks to take advantage of the great economic development opportunities that will be provided by the arena, Fifth Third Field, and the SeaGate Convention Centre.
We're basically an economic development organization like others in northwest Ohio; we just deliver our services on the streets of downtown Toledo. Other organizations — like the Regional Growth Partnership (RGP), Lucas County Improvement Corporation (LCIC), Toledo-Lucas County Port Authority, the City, and the County — work together on a different level and have a more global focus.
My other hat is the Greater Downtown Business Partnership (GDBP). We think that there is a role for an organization like ours with a philosophy that extends well outside the DTID. We believe that, what happens in uptown, the warehouse district, and the business corridors in east Toledo, plays a large role in the well-being of downtown.
It is our belief that it is the private business community — for-profit and not-for-profit — that will ultimately revitalize greater downtown Toledo. Is there a role for the County and City? Absolutely, look at all the money that each has expended on facilities and infrastructure in downtown. Nevertheless, we believe the private business community will be the driving force behind the redevelopment of downtown.
TBJ: What opportunity does the planned opening of the new downtown arena provide for downtown revitalization?
TC: About a year ago, the County came to GDBP in its role of being perceived as the voice of the private business community in greater downtown Toledo. The commissioners indicated that they had built the number one ballpark in the minor leagues in Fifth Third Field but didn't believe that the redevelopment around this great facility had been as coordinated and sustainable as they had hoped.
They believe that the community has a one-time opportunity to leverage their $105 million investment in the new arena to bring about a true redevelopment of the one to two-block area around this wonderful facility. We're very pleased that they came to us with the opportunity to get involved in this project.
The timing for our undertaking this effort couldn't be better. It is our belief that the "urban trifecta" created by the confluence of the new arena, Fifth Third Field, and the SeaGate Convention Centre will allow us to begin to create a year-round destination for entertainment, cultural, and leisure activities in downtown Toledo. Unlike in Columbus, our entertainment district will be located directly in our city center rather than one mile away.
In close collaboration with Lucas County, the City, and other stakeholders — public and private — GDBP has created the Arena Neighborhood Development Initiative (ANDI) to manage this redevelopment process in what we call "the arena neighborhood".
GDBP has created a conceptual vision, which is intended to spawn the creation of a mutually beneficial, coordinated, and sustainable redevelopment plan for the area surrounding the arena.
GDBP has introduced the ANDI vision concept to the commissioners and several key downtown stakeholders and groups, all of whom have enthusiastically endorsed it. These leaders have requested that additional meetings should occur to create a development plan, which is supported by the entire neighborhood before it is "rolled-out" to the community at large.
This process will continue throughout 2008 and beyond with the goal that the creation of the ANDI private sector redevelopment plan keeps pace with the construction of the arena itself.
Ultimately, our role will be to work with folks who are stakeholders in downtown, like the building owners and their tenants to attract as customers the people who will want to come downtown to enjoy a great entertainment experience. We hope that our vision is one which these stakeholders can rally behind so that they choose to redevelop the available retail spaces in so many of these historic buildings in downtown Toledo.