At What Price Economic Development?

Yesterday the headline of a story from NPR caught our attention: “Should the city of Venice allow Benetton to open a shopping mall along the Grand Canal?”

While that specific conundrum isn’t one that Tacoma is likely to face anytime soon, it is a situation that raises a number of questions that Tacomans may face as we tackle budget gaps in coming months and years.

Tacoma and Venice aren’t exactly twin cities, but there are some similarities. Historic buildings and aging infrastructure are characteristics of both places – albiet of different eras. Both cities face the perpetual challenge of waterfront space: working waterfronts vs tourism, local wants vs tourist attractions, etc. Both cities are also facing challenging economic times. As NPR reports, Venice is under pressure to make significant budget cuts and decrease its debt… sound familiar?

To briefly summarize the NPR story, Venice has seen big name companies buy and restore some of its historic buildings. This has been good in that it has taken the costly job of maintaining historic buildings off the city’s hands when it can least afford to be pouring money into their repairs. With the renovations, these companies also bring in new jobs and economic activity, particularly in the form of tourist dollars.

Many residents of the city, however, feel that the city is catering too much to the interests of upscale foreign tourists and ignoring its own residents. Small businesses have suffered and residents have left.

While Tacoma is unlikely to face the threat of a Benetton shopping mall anytime soon, we might face the same challenges of economic activity vs neighborhood character and small local businesses (Walmart anyone?). Or historic preservation at the cost of the public will. Would you sell your heritage to save it?

We probably won’t be hearing about any offers from Gucci or Prada to take over the Old City Hall project. We might, however, conceivably face a situation in which a big developer did come in to “save” the building, but with plans that compromised either the building’s historic integrity or the character of the neighborhood. What if Walmart or a casino had offered to buy the Luzon? Would you have it, if it brought jobs and dollars, while saving the building from further decay?