Proposed new funding source could help out downtownsDate: 11/6/2023 Recently I wrote a story about the economic impact of the arts in Springfield. Before that I wrote a story about the economic impact of the Thunderbirds hockey team on the region.
(If you missed them, go to www.thereminder.com. They are there.)
The bottom line to both stories is that arts and entertainment in Springfield truly are economic engines.
Now, economic impact stories tend to be annual stories. We expect economic impact reports for Westover Air Reserve Base and the civilian airport as well as the Eastern States Exposition. Earlier this year, MGM Springfield released a report that it had an impact of $56 million regionally with $405 million paid to local communities in taxes and payments.
In an era in which we are trying to keep or encourage manufacturing in the region, it’s positive to note there have been great strides taken in the tourism/arts/entertainment sector.
In Springfield, several of these entities have played a key role in the revitalizing of downtown. For years much hand-wringing has happened about how to reverse the effects of a continually diminishing downtown.
Boomers, such as I, can remember a far different downtown scene in the 1960s and 70s. And there have been many complaints about how downtown isn’t as it used to be.
While much has been said about Springfield’s downtown, both Holyoke and Chicopee have been in a similar boat. I attended meetings many, many years ago in Chicopee at which downtown businesses listened to a consultant and asked how Chicopee center could be like downtown Northampton. The answer was it can’t. It must find its own way.
The question is how does a community do that? In Springfield’s case, having a state-funded civic center and a privately funded casino have really helped but that can’t happen everywhere.
There are several communities that have hung at least part of its hopes for the future on key developments. In Holyoke, for example, since the late 1980s the restoration of the Victory Theater has long been described as a project that would help its downtown area.
I bring this up because the State House New Service recently reported about a new bill that encourage downtown development. Colin Young wrote, “The bills (H 228 / S 130) filed by Rep. Antonio Cabral of New Bedford and Sen. John Cronin of Fitchburg would establish a Downtown Vitality Fund managed by the Executive Office of Economic Development. The fund would get 5% of the sales tax revenue generated by online retailers to be used for matching grants to support staffing and operations of business improvement districts, main street associations, state-designated cultural districts and parking benefit districts, especially in gateway cities and other low-income communities.
“Catherine Feerick, the economic development director for Attleboro, said she wanted to point out to the committee ‘just how elegant’ of a solution the bill presents.
“‘You’re taking a source that has, for the last several decades, really detracted from our downtowns and our main streets, and you’re using a source of funding coming from that detrimental impact and you’re using it to try to heal some of the wounds,’ she said. ‘I really look forward to seeing where this legislation ends up because I think it could be, really, a model for other states.’”
Downtowns used to be principal shopping districts, and while that can still happen, such as in Northampton, it’s a difficult issue to resurrect. Attracting new businesses is not easy.
And while I think it’s great to funnel more money to communities for downtown development, I will note that wiser people than me, The Urban Land Institute, concluded in its 2007 report about Springfield that one of the key factors to the success of a new downtown is making downtown an actual neighborhood.
With more people living there, more businesses would be encouraged to be there.
Yes, since 2007, there has been an increase in housing downtown with developments such as Silver Brick and the renovated Willys Overland building among others, but it’s clear we need more. With the various buildings now on the market owned by the New England Farm Workers Council downtown Springfield has greater potential for more apartments.
Think of how downtown Chicopee would be with the housing potential of the Cabotville industrial complex was ever fully realized.
Since we have a housing shortage in Western Massachusetts developing housing with these funds may well be the best way to continue the development of our downtowns.
I like the idea of a new funding stream, but it has to be used effectively.
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