What downtown Pittsburgh really needs is a
good 5 and dime, a variety store like another G.C. Murphy or H.L. Green. In 2015 those stores are called Target or Big
Lots or even TJ Maxx to some extent. And dare I mention WalMart? Those types of stores fill the daily needs of
the broadest swath of incomes and tastes, commuters and residents. But instead, many years ago, Pittsburgh got a
solution for which there was no problem.
It’s taken some time but the proof of that contention has appeared.
Macy’s announcement to close its downtown
store points out more than just the evolution of the local, or even national
retail environment. The fact that the
closing was not met with howls of anguish from Pittsburgh politicians and pages
of copy in local newspapers analyzing the, surely negative, ramifications
speaks volumes about Pittsburgh’s newfound self confidence. The closing’s shock was mitigated in the same
announcement with plans that the former Kaufmann’s building will become an
upscale mixed use development which in turn supports recent assertions of Pittsburgh’s
attractiveness as an investment locale.
But here I call attention to the case for
remembering recent history – and hopefully not repeating it. Ever again.
It wasn’t so long ago in the administration of Mayor Tom Murphy that the
City taxpayers were committed to provide subsidies to May Department Stores so
they could desecrate the architectural gem that was the former Mellon Bank
building across from Kaufmann’s in order to insert a Lord & Taylor
department store. At the time I believed
those types of subsidies were folly and time has proven me correct, not that
it’s a reason to take satisfaction. The
important point is that the high gloss veneer provided by upscale retail is not
a basis for economic development. I am
not opposed to government subsidies when they help increase employment or
social wellbeing in an area. But
taxpayers deserve a real return on government investment. For economic development projects, this means
recruiting businesses that provide jobs with wages that are higher relative to
the local norm and will also return tax revenues to the subsidizing government
entity. Consumer retail outlets have historically
shown they are not economic growth engines.
Instead of pouring public monies into retail
and real estate schemes, the City’s past Administrations would have been more
productive to partner with our universities and hospitals to help expand infrastructure
needed for their growth initiatives which in turn would have added high income
jobs.
During the Richard Caliguiri administration I
recall there was an effort to recruit a Macy’s department store to Pittsburgh
in a downtown mall development, City Center, proposed for the Grant Street
corridor. I remember at the time
comments made about how Pittsburgh would enter the big leagues if we had a
Macy’s. Guess what? The Universe always gives you what you ask for, just not
usually in the way you expect. We got
our Macy’s and in fact Pittsburgh is getting back to the economic big leagues –
but the two are unrelated. Retail
follows income; retail does not create income.
Income creation is the key to economic and social development. And Pittsburgh still sits woefully low on per
capita income rankings for major metros.
Pardon a little dig. After Mayor Murphy’s pyrrhic success at
recruiting Lord & Taylor to downtown [as well as his failure to bring
Nordstrom to downtown’s Fifth Avenue Place – he did love a good department
store project], did His Honor move on to other development projects within
Pittsburgh? Why no; he moved to that
income producing freight train that is Washington, D.C. and the Urban Land
Institute, while leaving behind what became an architecturally damaged
structure in the very heart of our downtown.
Experience is the best teacher and we usually learn more from failures
than successes. I hope those City
officials involved in these retail fiascos remember their lessons when
expounding on solutions for America’s urban areas from well located think tank
pedestals such as the ULI.
No comments:
Post a Comment