STRATEGIC FRAME WORK FOR COMMERCIAL REVITALIZATION
Part II of an Exploratory Study to Establish a Special Improvement
District on Springfield and South Orange Avenues, Newark, NJ
Report to the Corinthian Housing Development Corporation and New Community Corporation
May 11, 1998
Government Programs and Resources
As mentioned earlier, the City of Newark is involved in many programs that serve as potential revitalization resources. Despite this fact, there are a few statewide programs that are not currently being utilized by the city. The Neighborhood Preservation Program and the Main Street Program are possible resources for the West Side Park neighborhood.
The Neighborhood Preservation Program
On October 30, 1975 Governor Brendan Byrne signed into law The Maintenance of Viable Neighborhoods Act and The Neighborhood Housing Preservation Housing Rehabilitation Loans and Grants Act of 1975. Thanks to the establishment of these two laws, for 22 years the Department of Community of Affairs' Neighborhood Preservation Program (NPP) has been revitalizing threatened but viable communities across the entire state. NPP utilizes a unique, comprehensive approach, focusing less on bricks and mortar and more on community involvement. With the aid of state-awarded grants, the program mobilizes neighborhood residents to restore their community through the formation of partnerships with local municipal leaders and private sector investors. This local cooperative approach affords the neighborhood the opportunity for self-directed planning, leading to rehabilitation of housing and infrastructure and restored neighborhood spirit. Considering the project area, the efforts of PSE&G in developing a Neighborhood Preservation Program could be a useful public private partnership.
As described in the early legislation, if Neighborhood Preservation was to be successful, each participating neighborhood would be free to tailor its plans to the community's individual needs. The new legislation was the first to encourage a three-way partnership between the key groups who shape the character of a community: municipal and state officials, private lenders and neighborhood residents. By 1986, nearly 80 communities received assistance from the Neighborhood Preservation Program and in the 1990's realizing the success, the program has been expanded to include the assistance of the Departments of Environmental Protection, Transportation and the Economic Development Authority (Schrider, 1998). Rehabilitating housing stock, revitalizing commercial corridors and restoring neighborhood pride are difficult goals that the Neighborhood Preservation Program has succeeded in reaching.
The spirit of cooperation between the local governments and the NPP community provides hope that these distressed neighborhoods will improve. With limited funds in West Side Park, hope and enthusiasm can only go so far. Following an initial six-month planning period, a NPP community is awarded a grant averaging $90,000 for each year of the program. The program runs for a three to five year period depending upon the scope of redevelopment. These funds are dedicated to housing rehabilitation, commercial corridor revitalization, social and youth programs, neighborhood amenities, etc. These initial monies provide leveraging for private investment, and many communities succeed in raising an additional half a million dollars per year from other government programs, municipal funds, banking partnerships, and investments from property owners and local businesses (NPP, 1997). This is a 500% return on the NPP programs investment. This can be a significant source of capital that our project area desperately needs and has identified as an immediate goal.
Specific applications of the Neighborhood Preservation Program that have affected positive change in similar center cities include Englewood's Armory Neighborhood and the Borough of Highlands Bay Avenue Neighborhood. In 1993, in order to lessen the amounts of drug trafficking, illegal commercial operations, zoning violations, fatal fires, and even two murders, the Armory Neighborhood turned to the Neighborhood Preservation Program for assistance. Using NPP funds as leveraging, the City of Englewood began aggressively purchasing vacant or dilapidated houses with capital funds in order to be able to package the properties for prospective developers. In addition, the City demolished some of the unsafe and illegal commercial properties on the block. In 1996, 200 volunteers from corporations in Bergen County came together side by side with neighborhood residents to paint apartments, remove litter, and plant a community garden. The NPP program manager, a city employee, brought this group together. Also participating in the Adopt-a-Neighborhood Program run by the Department of Community Affairs, the investment firm of Smith Barney fulfilled another NPP goal by building a neighborhood playground. All together leveraged funds totaled $1,275,346. As a result of participating in the NPP program the neighborhood residents and the city government were not only able to bring needed funds into the community but to establish a team mentality.
The Bay Avenue Neighborhood of the Borough of Highlands experienced a similar success story. This target area is significantly larger than Englewood's with a total of 800 commercial, waterfront, and residential structures. This area was particularly challenged because of its large size, high unemployment rate, and flood hazards. Among the many improvements brought about by the NPP partnerships were a sign and facade program developed by a comprehensive business improvement program between the NPP, the Highlands Chamber of Commerce and the New Jersey State Economic Development Authority. This partnership funded a commercial loan program. In addition to the $70,000 funded by the NPP, the program leveraged $292,700 in private sector loans producing $320,861 in commercial reinvestment. Other relevant programs sponsored by the NPP included streetscape improvements, installation of the first municipal parking lot for the commercial corridor and extensive street reconstruction (Schrider, 1998).
It is surprising that the City of Newark has never tapped into the Neighborhood Preservation Program and all that it affords. It seems like a logical place to start. Although the NPP program is intended for "threatened but viable" neighborhoods, most of the distressed communities (see prior section on Englewood's Armory Neighborhood) assisted through NPP, deal with the same neighborhood stabilization and economic development issues as the West Side Park neighborhood. It is important to note that the NPP does require city involvement; the city makes the application to the Department of Community Affairs and is required to hire at least a part time employee to administer the program. The community based organizations, more on target with the community's needs, can prepare the application in consultation with the city, have the city sign and forward the application to the DCA, and then upon award, the city could sponsor a community-based organization to administer the program. This can help keep government bureaucracy to a minimum. It is further possible that given the talents of PSE&G, they could certainly partner with a community-based organization to develop the master plan, administer the program, and help leverage funds.
The Main Street Program
In 1977 the National Trust for Historic Preservation, concerned about continuing threats to Main Street's historic commercial architecture, launched a pilot program - the Main Street Project. It sought to develop a comprehensive revitalization strategy that would stimulate economic development within the context of historic preservation. This program, also operated through the Department of Community Affairs, is unlike the Neighborhood Preservation Program in that it is a for-profit entity that charges for its consulting services. Despite the fact that this program is typically directed toward communities in less distress than West Side Park, the comprehensive strategy employed coupled with the program's resources is a useful tool for exploring revitalization strategies.
The Main Street Program's four point approach targets design, organization, promotion and economic restructuring in order to provide a comprehensive plan that stimulates deteriorating commercial corridors. The program seeks to enhance the physical appearance of the commercial district, to build consensus and cooperation between community stakeholders, as well as to market the traditional district's assets to both customers and potential investors. Using these tactics, the Main Street Program has been successful in several New Jersey communities including West Orange, Englewood, South Orange, Bridgeton, Wildwood and Merchantville.
As stated previously, the Main Street Program along with Downtown New Jersey, Inc. is targeted at smaller communities experiencing the beginning levels of decline. The Newark project area is beyond this point, but the Main Street Program can offer assistance in the form of conferences, training materials, and technical assistance. The National Town Meeting on Main Street and the National Main Street Network are also offered and could help the target area gather information as to the revitalization strategies used by other communities nation-wide. The four-point approach will help the West Side Park neighborhood to develop a comprehensive strategy that copes with the area's problems and accentuates its assets.
