Posted inPhoenix

Say goodnight to CityNorth

The Arizona Court of Appeals is doing Phoenix a favor by essentially killing its $97 million CityNorth project. Phoenix just doesn't know it. The Republic reports:

A major economic-development agreement between Phoenix and the CityNorth development has been ruled unconstitutional, meaning
the project may not grow into the once-envisioned second downtown on
the city's north side.

Part of the problem lies in the thinking encapsulated by that sentence. A real city has one downtown: the economic, cultural and retail heart of the city. By that definition Phoenix doesn't even have one downtown yet — but it wants a "second downtown"? But the bigger problem with CityNorth has always been that it is based on a dead business model. The old land-speculation economy is not coming back. These are problems not unusual to American cities. But Phoenix's case is extreme and instructive.

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Posted inPhoenix

Phoenix diary: Golf, urban Chandler, ‘green leader,’ med-school disaster, the storm

Phoenix and Arizona sleepwalk on. Mesa is giddy about the promise of a big new resort out in the middle of nowhere. It’s fascinating that the metropolitan area and state seem to have no substantial economic development strategy other than to hope that more clones of Scottsdale golf resorts can be birthed. Tourism, of course, brings notoriously low-paying jobs, many part time and lacking benefits. It may be facing structural challenges as American living standards fall and energy prices rise. And considering that golf is a stagnant pastime — as many give it up as take it up every year — well, do the math…

"Chandler shifts to urban focus," the headline proclaims. The story is about studies on what happens when the suburb runs out of greenfield development space. But they know they shoot studies in Arizona. Chandler has been deeply engineered as an automobile suburb, complete with wide highways ("streets"), walled off "communities" and ugly berms to separate land use from highways. It is completely car dependent, without commuter or light-rail links. I doubt there will be much interest by developers in doing anything remotely urban. But it’s rich enough to survive awhile if the growth machine revives and moves elsewhere…

Meanwhile, a "marketing strategy" was launched to tout Phoenix as an "emerging leader" in green and solar technology. Hahahahahahaha. I hope this is better than the "marketing strategy" of Copper Square. I guess anything helps, if the region could lure at least a few California companies. Unfortunately, the Legislature and extreme political climate’s refusal to fund meaningful economic development tools and research will keep metro Phoenix a backwater. A "city" based on endless driving in individual automobile trips while spreading out into the desert without enough water to sustain it can’t be any kind of green leader, emerging or even flaccid…

Then there’s the crackup of the medical school…

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Posted inUncategorized

Charlotte faces its moment of truth

Around 1996, when I was the business editor of the Charlotte Observer, I provoked the ire of the president of the chamber of commerce — as I so often do with such caudillos — by pointing out an inconvenient truth: the city’s economy was too dependent on two big banks. Charlotte was in the middle of a historic boom that turned a sleepy, mid-sized Southern city into the nation’s second-largest banking center.

An Oz-like skyline shoots up dramatically from the flat treeline of the Carolina Piedmont. Signs of fabulous wealth are everywhere, from the expensive cars on the street to the beautiful people shopping at Dean & Deluca. It’s an amazing testmony to what money can do — to what being positioned at the heart of the capital markets can do. And it’s mostly because of the two money center banks, what are now Bank of America and Wachovia, that are improbably headquartered there.

Then came the subprime and credit crises, partly authored by the smartest people in the room in Charlotte. Now, as the Wall Street Journal put it, "Charlotte is fretting over whether it can remain the last great U.S. banking center outside of New York." It should be fretting over more than that.

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Posted inPhoenix Phoenix 101: History

Class, power and downtown development

Back when I was a college right-winger (and in those days we were few and had no pretty girls), I wrote fierce papers demonstrating the murderous fraud that was Karl Marx. A professor gently cautioned me that even if I disagreed with Marx, he offered another way of "seeing through history." He was right, of course. Marx's ideas led to some of the most bloody deeds in history. But his emphasis on class (and this was not original to him) is indeed useful.

I think about this as I watch downtown revivals and their failures. A city such as Seattle preserved most of its core buildings, many businesses and the downtown evolved organically and with all sorts of people. Phoenix and Charlotte, on the other hand, clear-cut most of their downtowns and started from scratch. If you arrived in Phoenix after 1980, you'd think the downtown was always vacant lots, government buildings and a few towers. Of course, Phoenix had a thriving downtown into the 1960s. Charlotte was similar.

Their results have been vastly different. But the class and power undertones are unmistakable and they have shaped the fate of each downtown and city.

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