July 14, 2005920-261-5185; Ellen Rulseh 920- 674-7443
Benefits of Riverwalks
And Tax Increment Financing Districts (TIFs) to Downtowns
Chamber of Commerce members in Watertown and elsewhere will tell you that downtowns play a critical role in the health of most freestanding small cities. In Watertown, the riverfront is a complementary, key link to Main Street and, in many ways, comprises the “heart and soul” of the community. Increasingly, communities have recognized that there is a need to revitalize traditional downtown commercial districts since an active, viable downtown district is fundamental to a city’s economic health, heritage and civic pride.
Given the importance of downtowns in contributing to the livability of our communities, how do trails, riverwalks, riverfront plazas and urban parks fit in as key components of downtown revitalization? Research linking parks and economic development has concluded that all great cities, in North America or elsewhere, have great parks, recreational and cultural amenities.
There are many intangible, subtle benefits that result from these amenities. For instance, riverwalks and trails connect people with places and enhance the beauty of urban centers. These “quality of life” features are increasingly seen as means for stabilizing and revitalizing even distressed areas of our communities. In many successful communities, parks, trails and walkway corridors are the primary organizing elements that shape development, create livability, preserve property values, and provide the infrastructure to promote the physical health and fitness of residents and to attract tourists.
Research documents the positive economic impacts from quality of life resources such as riverwalks, trails and urban parks. A survey of commercial and real estate executives has reported that parks and recreation enhancements are very important in attracting new business. Anyone who has visited Fort Atkinson recently has seen evidence of this in the construction of new retail and commercial property redevelopments growing up along the existing Riverwalk, where an old manufacturing plant is being redeveloped adjacent to the Glacial River Trail.
Small business owners in particular rank the proximity of riverwalks, trails and parks as one of the highest priorities in choosing a new location for their business. One reason for this trend is emerging lifestyle changes in our new workforce. This younger workforce is looking for more quality of life features in the cities they choose to work in. Research has shown more demands for ready access to recreation on a “just-in-time” basis for many younger workers, and they want trails and parks to be close at hand. Cities that want to be successful in our “New Economy” are taking notice and taking action.
Waterfront redevelopment case studies in cities you may have visited, or would like to visit, include: Chattanooga Tennessee, which is considered one of the more successful waterfront developments in the country. Here, over $350 million in private funds and $60 million in public funds were invested. The city’s turnaround occurred with the opening of the Tennessee Aquarium and Ross’s Landing Park and Plaza which inspired the development of several private and public developments over the next decade. Tourism has increased substantially and is directly attributed to these improvements on the riverfront. Convention traffic increased 73% between 1995 and 2000. Tourism has increased and employment has increased by 25%. The number of nearby businesses increased from 33 to 128. Property values increased 127%.
In Indianapolis, Indiana an abandoned canal was redeveloped into a lively urban park and greenway. Important elements include pedestrian bridges, walkways, monuments, housing and other infrastructure while serving as a link between urban destinations.
In Louisville Kentucky they created a waterfront park that also served as an economic development tool for attracting new business and residential development. Before the development, the area employed 350 persons in 18 businesses. After development the area supports over 23 businesses employing 5,300. In addition, a residential tower with 20,000 s.f. of retail space has been constructed, plus 78 condominiums and 40 apartments. Source: http://www.principal.com/riverwalk/documents/waterfront_revitalization.pdf
One study, “Understanding the Economic Value of Schuykill River Park” in Philadelphia said, “there are six major types of economic value that can result from riverfront parks: construction benefits, recreational activity, downtown revitalization, tourism, education and research and access and linkages.” http://www.peleast.org/images/Schuylkill_River_Park.pdf
In Wisconsin, many communities, like Baraboo, Sheboygan, Milwaukee, Racine and Kenosha, which once turned their backs to their rivers and waterfronts are now turning that, and their downtown economies, around.
The way many of these communities have made the transition from the Riverwalk talking and planning stage to beginning the implementation stage is through Tax Increment Financing. The City of Watertown has proposed to create a Tax Increment Financing district in the downtown with the primary focus along the Riverfront. The Tax Increment Financing district (TID or TIF) is to implement the recommendations and goals as found in The Riverfront Plan, prepared in 2004 for the City of Watertown by Vandewalle & Associates of Madison.
The plan states: “The Watertown Riverfront Plan presents a redevelopment strategy to transform Watertown’s long neglected riverfront into a vibrant focal point for the community and region.” Implementation of those goals and recommendations will help to realize the successful outcome of this plan.
Tax Increment Financing is used by municipalities to include, but not be limited to: eliminate blight, promote economic development through job creation, tax base increase, recruitment of new businesses and industry, encourage spin-off development and increase consumer spending within the district and surrounding areas. If properly planned and controlled, Tax Increment Financing can be a valuable tool for revitalizing downtowns that have not otherwise blossomed.
The major criteria for creating a TID are “would this development happen without TIF?” If a community can honestly say “no”, then Tax Increment Financing is an appropriate use of new tax revenues. Watertown’s Riverwalk (TID #5) project plan lists public infrastructure improvements as a primary expenditure within the district. The largest expenditures would be for redevelopment of property that is either underutilized, blighted, in need of rehabilitation or for redeveloping an inappropriate use.
Tax Increment Financing uses the tax revenues from new value on properties located within the district to pay off bonding and other types of borrowing for construction of public infrastructure improvements.
In conclusion, success in our downtown areas is strongly correlated with the downtown’s ability to project a strong sense of place. The strategies to keep downtown strong must be multi-faceted, and the provision of a Riverwalk system, linkages with bike trails and urban plaza development are elements through which communities can revitalize and transform.
However, almost all successful downtown vitality strategies require the community to make the downtown more pedestrian-friendly along with attractions which draw visitors and “tourists in their own town” to the recreation, entertainment, retail and other mixed-use activities. In the recent past, an editorial in the Watertown Daily Times summarized the status of the planned Riverwalk expansion project by saying, “ Watertown needs to make the downtown section of the city as attractive to people as possible. Much has already been done, and the expansion of the walkway will be another great step forward.”
Professor Steve Grabow, UW-Extension, Jefferson; Dennis Heling, Executive Director, Jefferson County Economic Development Consortium; and Mark Weaver, National Park Service, U.S. Department of the Interior; and Ellen Rulseh, Community Outreach Coordinator for the Rock River Coalition, contributed to this article. They are members of the Mayor’s Riverwalk Committee.
