Money Making
The trend that could change everything
Those of you who are regular readers of my column know I love to share the history and architectural uniqueness of our downtown and its buildings, and can talk at length about the irreplaceability of what downtown has to offer. (Yes, they really did build them to last a century ago.) It’s no secret Shreveport has limited financial means; there is simply not enough money to do everything we would like, and in some cases, it takes amazing creativity even to do those things that are required. This is another reason why downtown development is absolutely vital. Downtown development equals money.
A few years ago, Joseph Manicotti, a former city planner, former head of the Asheville, Tenn., Downtown Association and current owner of a consulting company called Urban3, began crunching numbers in a way that challenged people to look differently at city centers.
He did something remarkably simple but wholly transformative. He compared taxes paid on buildings downtown versus big box stores in the hinterlands in a way that changes how we should think about development. His numbers show that not only does downtown rehabilitation enhance quality of life for citizens it generates significant revenue to address municipal budget gaps. “It’s simple math.” Manicotti said. “Downtown pays.”
Let’s look at how it pays by going through the numbers comparing a typical big box store and a downtown multistory building. Manicotti uses Asheville numbers because that is where he lives and works.
One of Asheville’s Walmart stores sits on 34 acres of land. When you divide their property tax bill by their acreage, you see they are paying $6,500 per acre in property taxes. Conversely, one of Ashville’s downtown mixed-use buildings that sits on a mere 00.2 acre of land pays the equivalent of $634,000 per acre in property tax. It’s the same in Shreveport.
We crunched the numbers for the Bert Kouns Walmart and downtown’s American Tower.
The Walmart is 21.3 acres, American Tower is .298 acres. The Walmart pays $6,726 per acre, American Tower pays the equivalent of $314,651 per acre. If you look at it in property tax paid per square foot, the numbers are shocking once again. The Walmart, at 927,828 square feet, pays the equivalent of .15 cent per square foot. American Tower, at 184,898 square feet, pays $1.97 per square foot. Let’s change it up slightly. Since most downtown buildings go up instead of out, if you look at just the footprint of American Tower – 13,000 square foot – then they are paying $7.21 per square foot.
Not only are tall downtown buildings – and downtown buildings in general – tax-revenue generating machines, they are also located where the infrastructure is, in the urban core.
Water and sewer lines don’t have to be run to them and city or parish dollars don’t have to be spent on roads, trash pickup or building additional fire stations.
“The more valuable downtown properties become,” Manicotti said, “the more revenue the city can generate to address its budget gaps, while also serving the best interests of the citizens.”
Manicotti; author Jeff Speck;
Donovan Rypkema, an expert in the economics of preserving historic structures and the owner of PlaceEconomics, and others are part of a fascinating documentary DDA is bringing Aug. 6 to Robinson Film Center.
“Urban Century: America’s Return to Main Street” shows the national paradigm changes that are creating renewed interest in downtowns. “It is an alignment of market forces,” Brad Segal of Progressive Urban Management Associates, said, “a significant trend that is changing everything.”
The description of Urban Century may say it best. “After decades of decline due to suburban sprawl, downtown communities all across the country are once again becoming vibrant, desirable destinations to live, work and play.
This isn’t a story about saving Main Street, but about how Main Street just might save us.”
We hope you’ll join us 5:30 p.m. Aug. 6 at Robinson Film Center for 69 minutes that just might change the way you look at downtowns.
Liz Swaine is the executive director of the Downtown Development Authority. She can be reached at [email protected].
