by Bradley Parsons
Staff Writer
When the JEDC announced earlier this month a revamped approach to encouraging economic development, one of its top priorities was to promote a “healthy and vibrant” downtown.
Sounds good, doesn’t it? But first the commission will have to agree what it means.
Like the rest of the draft strategic plan presented Aug. 12 to the Jacksonville Economic Development Commission board, the downtown development strategy is a work in progress. JEDC Executive Director Kirk Wendland will continue to seek input from the board and from his Downtown Advisory Committee as to how to encourage economic growth, and how to measure progress.
“I think there will still be some discussion about what ‘healthy and vibrant’ means,” Wendland told the commissioners when he presented them the plan.
After two months of listening to builders, urban planners, government administrators and other downtown stakeholders, Wendland said general consensus held that the City should pursue more downtown residents, higher office lease rates and more retail sales. Climbing numbers in those areas should reflect well-rounded economic growth he said.
For now, the JEDC will evaluate downtown development projects based on their impact in those areas. Projects that look to boost those numbers will have a better chance to receive City incentives.
The retail and residential components weren’t cause for argument. The commissioners largely agreed with Wendland that reversing a 20-year downward trend in downtown residents would benefit other areas of the downtown economy.
More downtown residents should translate into more retail sales, said Wendland. He said measuring the retail sector would give insight into a fundamental plank of any healthy economy.
“We want to know: Are people coming downtown to spend their money?” he said.
But not all the commissioners agreed that climbing office lease rates should occupy the top of the JEDC’s to-do list. Commissioner Charles Appleby, who led the effort to reform the commission’s finances, said he didn’t see the connection between expensive leases and economic health.
“The fact that it gets more expensive downtown doesn’t necessarily indicate a vibrant downtown,” he said.
Appleby recommended the City instead focus on the amount of leasable office space. He said the JEDC should concentrate on combating a stubborn office vacancy rate that has been stuck around 20 percent since the economy soured late in the last decade.
Wendland countered that lease rates would reflect the availability of office space. As product became more scarce, he said, prices would climb. Low office rents had stalled new office construction, Wendland said.
“When we looked at other cities, we realized the rent premium people pay to rent downtown (in Jacksonville) is very low,” he said. “When lease rates go higher, that’s when you’ll see more office construction downtown, which is something we haven’t seen in some time.”
Wendland said higher lease rates would be a good measurement of downtown’s overall viability. “The more businesses want to be downtown, the more property managers will be able to charge,” he said.
Commissioner Joe Barrow said the plan should include a specific focus on increasing employment. He said lease rates could take years to budge, while job numbers could provide immediate feedback on the effectiveness of the JEDC’s new policies.
Wendland said employment and lease rates would grow in concert.
“You have to consider, how many measurements do we want to have,” said Wendland. “When you look at increasing lease rates, employment would be picked up on that.”