Thursday, April 12, 2012

If I had a million dollars . . .

Come on, now. Admit it. We've all thought about what we'd do if we had a spare million or so. I'd be willing to be some of us gave it some thought recently when the MonsterMillions, or whatever it was, paid out obscene amounts of money to a few lucky winners.

Central Business Improvement District, Knoxville, Spring 2012

I think about such things, though I'm one of those who can't win because I don't play. I'm reconciled to the fact that I'll never have a major windfall. But what if I did - or you did? What if someone gave you a half million dollars and said they'd give you the same amount next year? You are in complete charge of the money, but there is one little catch: you have to spend it in the best way you can determine to help make downtown Knoxville a better place for residents, businesses and visitors.

Ideas immediately springing to mind? How much will you spend on buildings? How much will you spend on events to bring people into the city? Will you have a staff to encourage businesses to locate in Knoxville? Will you print brochures, buy street lights, fix sidewalks, remove graffiti? Would you spend it the same way over the years or change as the city changes? Watch out, you may burn through a half million dollars before you know it.

I've come to realize this is a pretty difficult task made more difficult by several factors I hadn't anticipated. You see, it turns out this is exactly the situation in which the Central Business Improvement District finds itself. It started in 1992, though with fewer funds, charted a course of using the money to promote downtown and now finds itself in a very different city - to some degree of its making. Who would argue that the center city hasn't made massive strides since 1992? No one who walked the streets during that era.

CBID Board, Knoxville, Spring 2012
After the CBID recently granted $125,000 to improve the facade at 1 Market Square a debate erupted over issues related to the expenditure of their money. What percentage of the total budget should go to improving facades downtown? Staffing currently uses $175,000 of the money. At a recent workshop proposals were made for $100,000 of the operating budget going forward to be spent on events. Another 100,000 was suggested to be designated for the facade grants with a limit of $25,000 for a single grant. That means there would be no more large grants like the ones given to 1 Market Square and the Arnstein Building. It would also leave only $125,000 for large projects.

As difficult as it is to determine the right mix of allocations for the budget, the job is complicated by competing interests and relationships. Each constituency group would likely have a different answer to the question. A resident and a business owner might share some common goals, but diverge on particular uses of this money. A developer wants to make their projects as lucrative as possible and grants help, but which developer and which project deserves the help at a particular time? What basis helps you determine who gets the grant money? Does it matter if they have a track record? Does it matter if they are a new, struggling developer versus an established, wealthy developer who may not really need the money? What if the project is likely to bring in a business that is redundant downtown - or what if it is exceptionally cool  - does that matter?

The large projects present another set of questions. What is a large project worthy of receiving $125,000 or some large portion of it? One item under discussion is a parking garage. What if someone wanted to resuscitate the J.C. Penny building which is a prominent eyesore in our most developed portion of downtown? What about the McClung Warehouses? Why wouldn't a vision like Marble Alley be worthy of a large grant. I also wonder if the board should give themselves some flexibility to decide that, in a given budget year, events and facades would be cut in favor of a large opportunity or significant need.

List of Services engendered debate

Complicating matters more are the personal relationships in a town this size. What if you are on the board and your friend wants a grant? What if the person asking for money may be your partner in a future project? What if they are a competitor? What if they once rejected a grant for your company when they were on the board? What if their company is a client of your company? Does any of this effect your decision making?

This is our situation at this time. Developers rotate through the board - and maybe that's a good thing because they understand what it takes to make a project happen - but that leads to complicated relationships. Residents on the board know many of the developers, as well. Often board members are residents as well as developers or friends of those asking for money. One board member is a resident and a city commissioner. How does he vote when the city wants the board to invest in a project? Do other loyalties influence votes? I think it would be very difficult in this context to remain completely objective.

People stood as the intensity increased during the workshop

So, at the recent workshop, new applications for grants were frozen for three months, which led to one local developer storming out of the meeting. During the hiatus, deliberation will continue regarding allocation of resources. It's great theater on one level, but it is also very important. Currently, downtown Knoxville enjoys tremendous, undeniable momentum. The choices this small group of people make will have a large impact on whether that momentum continues or stalls.

I'd encourage you to attend as many meetings as possible and at least be aware of the conversations, if not join the dialog. You'll find a list of upcoming meetings here. I'll see you at the evening meetings as I'm unable to attend the meetings in the middle of the day. In the meantime, consider how would you spend a half million dollars a year. It's complicated, isn't it?

Labels: , , , , ,

Monday, January 23, 2012

Central Business Improvement District: An Organization You Should Know

Michele Hummel leads CBID sponsored resident meeting November 2011
I've mentioned them before. It's the kind of name for an organization that makes people momentarily scratch their heads before moving onto the next channel. As a concept, the CBID is pretty simple: It's an organization funded by an extra tax on downtown residents and businesses whose purpose is to improve downtown. The devil is, as always, you know where. What gets funded, whose project gets funding and how much funding they get is where matters get sticky.

The board that makes the decisions is supposed to be representative of all the various groups who would have an interest in such matters. It's a pretty diverse group in some ways, not so much in others. Some of the same names pop up in all the lists of decision makers. Marshall Stair, for example, who I happen to like quite a bit, is on City Council and CBID. The other names on the board are generally familiar to people who follow downtown goings on. You can see a full list here if you scroll down the page.

One of my concerns as a downtown resident who isn't particularly connected, is that the board makes all the decisions and the board meets at 11:30 AM each month to make those decisions. My money is being spent at a time of day when I cannot be present. Businesses and developers can be present, but how many residents are able to be there at that time of day. I expressed my concerns to Michele Hummel the Director, who is also a downtown resident. She was very patient and seemed to understand my concern. I'm not sure that had anything to do with the fact that the August board meeting was subsequently scheduled at night, but it was and it was very well attended.

CBID Board members meet downtown residents, November 2011
In November they had the first of what they are billing as a series (though I can't find a schedule on the webpage) of Residential/Quality of Life Meetings. This was a meeting for residents to have input and it was also very well attended. First on the agenda was the announcement that four of the board meetings for 2012 would be held at night. The first of these will be January 23 at 5:30 at 17 Market Square. You can find the full schedule for the year here. I'm excited this is happening and hope those of you who are interested will attend. The meetings are open to everyone interested in downtown.

Other topics on the agenda included Downtown Knoxville Gift Cards (which were a subsequent success), parking, a downtown map and guide (still coming) and a stakeholder survey which they encouraged people to complete online. The more interesting portion of the evening came when discussion was opened to the residents. Here are some of the topics and opinions expressed:

  • Dog bags and posts are important.
  • There need to be more KPD patrols, particularly in the Old City.
  • A listserv/message board for downtown residents would be nice.
  • Panhandling continues to be a problem. Persons can be told to call 211 24 hours a day for needs.
  • Concern was expressed over bicycle and pedestrian safety. Bicycles on sidewalks are an issue for some people.
  • Events were discussed. Most people supported continuing major events but some people question whether we may be reaching a saturation point and the suggestion was made that events be scattered around downtown.
  • A young man presented a call for more park space claiming that our downtown falls far behind other cities in a per capita comparison. Possible spaces were discussed for green space. Some of the parents of young children noted that it would be nice to have green space that is pet-free.
So, it was a good meeting and more like it are promised. In the meantime, why not try to make the board meeting tonight? If you are a downtown resident, you are a member of CBID. If you are reading this blog post you are an interested party and you are welcome.

Labels: , , , , ,