The Obie Companies' 5th Street Market Expansion. (my photo)
Multiple
online articles regarding the future of the downtowns of U.S. cities piqued my
interest this past week. The thread common to all is whether we should attribute
the weakening of the nation’s most important urban centers to the persistence
of work-from-home practices, the concomitant increases in office and storefront
vacancies, and an attendant decline in property tax revenues. Despite their
focus upon much larger cities (among them New York, San Francisco, Portland,
and Seattle) these articles offered considerable food for thought here in
Eugene.
One of the pieces, by architecture critic Aaron Betsky for ARCHITECTURE
magazine, questions whether empty downtowns are here to stay. He goes on to argue
that rather than worrying about how to reanimate the corpse of the central city,
we should accept the realities of the American landscape—the downtowns as well as the suburbs. In promoting his thesis, Betsky cites another article
by New York Times opinion writer Thomas Edsall.
Edsall’s provocative supposition is that the downtowns of major cities are
facing an “urban doom loop” because of now-entrenched WFH habits and office
spaces not operating at full capacity. A resultant and accelerating
disinvestment in those areas exacerbates the downward spiral.
The
fact of the matter is that downtown Eugene’s woes are far from unique. As
countless sources report, shuttered storefronts, an absence of people, sparsely
populated offices, hobbled restaurants, and concerns about public safety are
common across the country.(1) City officials work with local business leaders
in a search for solutions, but many of the ideas they pose fail to yield
appreciable gains. The emptier downtowns reflect broader economic and
demographic changes that were in play before the pandemic accelerated the trend
of remote work and e-commerce. That said, the fate of each city’s downtown area
is influenced by a unique combination of local factors.
I reported last week on recent developments here in Eugene, two of which have
implications of consequence for our downtown. For the sake of this blog entry, assume
that negotiations between the City and the Eugene Water and Electric Board for
the purchase of the former EWEB headquarters and its conversion to become the
new city hall will be fruitful. Also assume the City of Eugene will amend the Skinner
Butte Height Limitation Area, thereby allowing the Obie Companies to build taller
on the parcels they own. Additionally, factor in the Riverfront Development project. Absent a magic bullet, you can picture that either a
further deterioration or transformation of the historical urban core (the area
roughly defined by the current boundaries of the Downtown Urban Renewal
District) has been set in motion. Together, these actions may irretrievably shift
Eugene’s de facto core northward toward the river and deal a mortal blow to
downtown’s critical mass and stature as the city's center of gravity.
But
what if we accept this fate for downtown Eugene and instead reframe its future
differently? What if we abandon efforts to resurrect downtown founded upon a
flawed vision of what it should and is destined to be? What if we accept reality
and stop worrying about reanimating the corpse as Aaron Betsky suggests we
should? Conversely, does the post-COVID condition present a once-in-a-generation
chance to revive our downtown? Is downtown Eugene’s fate further deterioration
or transformation?
Rather
than attempt to fully resurrect our downtown core along the lines of what it
once was—a center for commerce, government, and culture—I believe we should emphasize
the development of housing of all types at various levels, both market-rate and
subsidized, at mid-to-high levels of density. With such a focus, housing would
supplant investments in commercial office or retail space, which have not
materialized and increasingly do not appear likely to in the foreseeable
future. Downtown would never be what it once was, but it could become a vibrant
neighborhood of a different, evolved type. If housing becomes a dominant
building form, supporting services and vibrant streets will follow.
According
to City staff, at only 8.2 units per acre, Eugene’s downtown current housing
density is discouragingly low relative to its peers around the country. This
drops even lower to only 2.4 units per acre in the immediate, 16-block vicinity
of the Broadway and Willamette Street intersection (within the green square in the diagram above),
perhaps downtown’s most troubled area. For comparison, this density is exceeded
by the areas of the Bethel, Friendly, and River Road neighborhoods zoned R-1. Increasing
the population housed downtown can help lessen crime (more eyes on the street),
vagrancy (if housing options for the most disenfranchised are developed), and pollution
(fewer trips by car).
Critically,
the City of Eugene’s Downtown Urban Renewal District has reached a crossroads. The
Downtown Renewal Plan does not prescribe a specific sunset date for the District,
but rather the District’s division of tax will stop when the total maximum
indebtedness (i.e. the spending limit) for the District has been issued and
paid. Currently, the Downtown Urban Renewal District is expected to have
sufficient tax revenues to reach its spending limit this coming December, meaning
it would cease the collection of tax increment funds at that time and
effectively expire.
To
help guide the future of the city core, staff compiled a draft list of downtown
priorities and projects organized into six categories: Housing, Public Safety, Social Services,
Community Activity & Development, Public Spaces & Mobility, and Events
& Culture. They compiled the possible projects following input from the
community, their own work, and existing plans. An interdepartmental team is
evaluating criteria such as cost, potential funding sources, feasibility,
effectiveness, and alignment with City policies. The Urban Renewal Agency
(comprised of the members of the Eugene City Council) discussed the list of priorities
and projects this past Wednesday in a work session. The Agency voted at the conclusion
of the session to have staff proceed with drafting a proposal to amend the
Downtown Urban Renewal Plan.
Moving
forward, a key decision for the Urban Renewal Agency to make is whether to expand
the Downtown Urban Renewal Plan’s financial capacity and add additional
projects. If they choose to do so, a measure may appear as soon as on the
November 2023 ballot. If passed, taxes collected within the District would continue
to be used on eligible capital projects.
Assuming
voters approve continuation of the collection of taxes for urban renewal purposes
in the Downtown District, I first and foremost believe the additional funds
should be applied toward acquiring properties for offer at reduced cost to
developers to build housing or to otherwise help make housing projects pencil
out. Assisting social service providers and increasing public safety and
cleanliness will also be important.
The
relocation of City Hall to the former EWEB headquarters building, the growth of
the Obie Companies Market District, and the Riverfront Development mark a
tipping point for the future of Eugene’s downtown. City Hall will not occupy the
Town Square on the historic Park Blocks. The retail segment south of 7th Avenue
will further fade. Focusing upon the creation of new housing and greatly increasing
the downtown population will move our urban center away from what it once was
and what up until recently we hoped it could again become. This shift will take
time but carries with it the possibility for a positive transformation. What
downtown Eugene means to everyone will be different. It can become the new home
and neighborhood for many people, in addition to being a place to work, access
government services, and share in community.
(1) These reports may be overstated and politically
motivated in some instances, purposely suggesting a more dire situation than exists.
Nevertheless, perception is reality, and a negative perception can amplify the
effect by having an influence on the process that gave rise to it—a positive
feedback mechanism that contributes to the “urban doom loop.”
**2-22-23 edit** Eric Brown, the City of Eugene's Downtown Manager with Planning and Development, reached out to me to clarify one point I made: City Council can vote to extend the Downtown Urban Renewal District without referring it to the ballot. The City is leaving enough time for that to occur, but it is not legally required.