The CityScape Gamble

CityScape. For most cities of its size, this downtown development would be considered modest, especially with its first phase, which will apparently comprise a 27-story office tower and a retail arcade. For Phoenix, it's a big deal, especially for downtown and the central city. It could provide some answers as to "what next?" in the nation's fifth (for now) most populous city. Unfortunately the odds are long.

When the project was first hyped in the mid-2000s, it was supposed to be a game-changer, with iconic, soaring towers that included offices, hotel and 1,000 condo units. It took over the dismal Patriot's Square, which had been created by tearing down a block of historic, irreplaceable buildings, as well as adjoining vacant lots, which also once held viable commercial structures. Yet when the real renderings came out, the buildings looked very conventional and short (yeah, yeah, FAA…ask San Diego, Boston, etc.). The retail was inward-facing, risking another Arizona Center mistake. When the economy collapsed, even these modest plans were heavily cut back. An anchor tenant, Wachovia, died in the merger with Wells Fargo. The lack of inspiring architecture, a lively streetscape and pleasing spaces is no small thing.

This is a bad time to be bringing new office and retail space on the market, whether you're in thriving downtown Seattle or in a Phoenix which has faced special, self-inflicted wounds to its old core. The commercial real-estate bubble remains a danger. Still, RED Development has stuck with the more modest first phase and continues to roll out announcements of new restaurants, a comedy club and, importantly, a pharmacy. On the other hand, Eddie Basha, in bankruptcy reorganization, couldn't fulfill his desire to locate a grocery there,

Arizona, unstimulated

The political faith of the Kookocracy is not just that government "is the problem," but that government is outright evil. Without the socialist Jan Brewer restraining them, they dream of a state with a government out of the Coolidge years (without that pesky Herbert Hoover as Commerce Secretary). I'll never forget giving a speech to some Phoenix Young Republicans. A woman in her twenties said all aid to the less fortunate should be terminated. If they protest? "Shoot them in the streets," she said, chillingly serious.

Of course, in the reality based world Arizona is a government creation, and takes more in government services than it pays in taxes. It is a welfare queen. Despite all the cries of "SOCIALISM," it has taken federal stimulus money. Nevertheless, the faith persists. Low taxes, little regulation and a continuing battle to stifle any "activism" (such as funding Science Foundation Arizona or that Don Budinger and his efforts to improve impoverished schools) will produce the best "business climate" in the country. Anybody in need, well, deserves their lot. Best-practices used around the world for economic development are SOCIALISM!!

So how's that working out for you?

Arizona gets an F grade in the new Assets and Opportunities Scorecard from the non-partisan (and backed by big business) CFed. Arizona is one of only five states to get the lowest grade in this report that tracks 92 measures of well-being. Its peers are all in the South. You don't need a report to know the depression that is ravaging Phoenix. One out of four residents is uninsured.

Valley of denial

ASU's Morrison Institute has always labored under two Sisyphean tasks. First, its public-policy scholarship necessarily antagonized the state's ruling elites — hence, it was forced to pull its punches to avoid losing funding, and, even then, the elites wouldn't accept its work. Second, it was treated in the media as the "liberal" equivalent of the (Bob) Goldwater Institute. This, even though the "Goldwater" Institute is an arm of the national right-wing advocacy machine, not a genuine think tank that engages in open-minded, peer-reviewed research. With the loss a few years ago of my sometime collaborator Mary Jo Waits, author of Morrison's most prescient and important works (Five Shoes, Meds and Eds), the institute became even more marginalized. Now Morrison is trying once again to become part of the conversation under the leadership of Sue Clark-Johnson, retired Arizona Republic publisher and close friend of ASU President Michael Crow.

Good luck. Unfortunately, the first effort, Forum 411, seems destined for the dustbin of forgotten, well-intended reports at an even faster speed than its predecessors. It is brief, as to be expected from an entity now headed by a former Gannett executive, and strives to be inoffensive. Think of a pep talk. Anthony Robbins on economic development. It states two broad themes: the obvious (Arizona needs to diversify its economy) and the untrue (which I will deal with momentarily). Worst of all, it leaves critical information entirely out. The loss of Waits' intellectual heft is obvious. So, too, is the continued bowing before the Real Estate Industrial Complex (the report's sponsor is the suburban mall developer, Westcor).