. :nbansyh 1J1 y I‘Vvu .g\ .‘A,. , .. .. ,7 EA. Huh: : wan ‘ . \ «a: .u , aha: . i. 2. . . HE. {ersirh fir. , :flwfld 6433......)3‘1... .03) é .. u a} in? :13. . ”.1... In: 4 1L. , , «notifyghw .1 fire? . $2.3,” 6% i 3% .u. 3‘. a. . . . : ‘ . fight: , amh‘. V x III-1e . in.“ 0.11:9 4a. liflul’. 4"- 0: is: [’1‘ {ti-n. n13?! 1.5!. . at... a, lo . wit :2» in»? . . 431 13) d l (#1.. I. {‘5 a , V ’ I 1 El iuwwmflykuh fl. await”? N “I“: .f‘ Qiiuni~zI 31.4. 4:1 f .. “ward“: "Hung a p. , .gwmwrmfi. i 2 rl .r ‘ 1. ‘ . .. 3.2.... I“ ‘ .2 s. 5.3.. .gfimfiu . ammtu Lflnwszxranizzl 5rd? 53...). .lfiuééfiyu 3 ..>t.h.¢$t.a§ . . (fill. $3.5!!! “u . .2533... . z... in”)! . u 10‘. iii-PEH , I!“ t! iynuifiir§.flfl . .5 l2... r... This is to certify that the thesis entitled SOCIAL UPGRADING AND RESIDENTIAL DISPLACEMENT IN THE EFFORT TO PHYSICALLY UPGRADE AND REDEVELOP DETERIORATED INNER-CITY AREAS OF HOUSTON, TEXAS presented by Angelo R. Podagrosi III has been accepted towards fulfillment of the requirements for the MA. e7 in Geography J 'or Profess r’s Signature 0412305 / / Date MSU is an Affirmative Action/Equal Opportunity Institution LIBRARY Michigan State Universuty .-.—--.-¢---a-n-o-.-._.‘.-- 4 SOCIAL UPGRADING AND RESIDENTIAL DISPLACEMENT IN THE EFFORT TO PHYSICALLY UPGRADE AND REDEVELOP DETERIORATED INNER-CITY AREAS OF HOUSTON, TEXAS By Angelo R. Podagrosi III A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF ARTS Department of Geography 2006 ABSTRACT SOCIAL UPGRADING AND RESIDENTIAL DISPLACEMENT IN THE EFFORT TO PHYSICALLY UPGRADE AND REDEVELOP DETERIORATED INNER-CITY AREAS OF HOUSTON, TEXAS By Angelo R. Podagrosi III For over fifty years, the public and private sectors have engaged in various initiatives and programs to physically upgrade deteriorated inner-cities. However, often the by—product of physical upgrading is social upgrading, the displacement of many of the original residents of the central city neighborhoods who are ofien low-income and minority. This thesis explores the various processes of physical and social upgrading— including locally-driven urban renewal, private-sector ‘block-busting’, and gentrification—occurring in the latter 20th century in the city of Houston, Texas. This thesis focuses on the city of Houston because of the extensive resources recently directed towards the revitalization of its downtown and surrounding neighborhoods. This thesis examines the occurrence of different forms of physical and social upgrading, which are taking place simultaneously, but in different combinations, in different areas of the city. The research also examines the neighborhood characteristics and demographic patterns that influence the occurrence of specific upgrading processes. One location of particular interest in this study is Houston’s historic Afiican-American community of Freedmen’s Town which has experienced decades of conflict over land and Space. Most recently, Freedmen’s Town has been at the focus of Houston’s urban revival, where physical upgrading has been accompanied by the displacement of the community’s traditional population and the destruction of a historic neighborhood. Copyright by Angelo R. Podagrosi III 2006 ACKNOWLEDGEMENTS I want to begin by thanking several people that were important in assisting many of the technical aspects of this research project. Acquiring specific datasets of US. Census data is never easy but was made much easier with the help of Kathleen Weessies, the M.S.U. Maps Librarian, and Hui Hua Chua, the M.S.U. government documents librarian, with their assistance in using the always-challenging GeoLytics Census CDs. Dr. Judy Olson provided great assistance regarding the cartographic design aspects of this project and its proper presentation. Dr Bruce Pi gozzi provided invaluable assistance and insight into the statistical analyses of this research and helped to ‘make sense of all the data.’ And lastly I would like to thank Rick Powell who’s ‘basic’ (yet very complex) VisualBasic Excel code helped in the calculation of ‘change’ in Census data and saved me hundreds of hours in manual calculations. Nearly every successful graduate student receives guidance, support, and encouragement from the other graduate students in their department and I was no different. The following people were always of great assistance during this graduate school experience, even if it was only to provide an ear to talk to, or a chance to escape ‘Nat Sci’ for lunch or coffee: Steve Aldrich, Marian Mitchell, Jamie Rudell, Shannon Smith, and most importantly Juliegh Bookout and Meleia Egger. You all helped to make my endless hours and weekends working a lot more bearable. I would also like to thank the M.S.U. Department of Geography for all of the assistance they have provided including a teaching assistantship position my first year as a graduate student. The Wonderful ladies in the office (Marilyn Bria, Judy Reginek, Sharon Ruggles) were always 0fincredible help for everything and anything I might need. iv My entire committee of Dr. Bruce Pigozzi, Dr. June Thomas, and Dr. Joe Darden was of incredible assistance to me during this research and writing process. They provided invaluable critical examinations and critiques of my work that made it better and more insightful while also providing a ‘sounding board’ for various ideas I had along the way. Most important from my committee has been the help of my advisor, Dr. Igor Vojnovic. Throughout my graduate school experience he added an incredibly insightfiil and challenging view to my research and work. Words cannot describe how much I have appreciated his help, guidance, insight, and friendship. He recognized my passion and potential for studying urban issues and encouraged my further pursuit of these issues and ideas in graduate school. And of most importance in my life has been the guidance, help, and encouragement of my family. First I want to thank my parents who first helped me to realize the economic and social inequalities that exist in society and that something can and must be done to alleviate and overcome those inequalities. I hope that this work can be a tribute to them and can help in the continual battle to raise awareness about poverty and inequality. Lastly I must recognize my loving and supportive wife who has truly provided the strength and support that I needed to make it through this graduate school process. They say that behind every successful man is a strong wife to support him. I was no different as my wife made even more sacrifices than I to allow me to finish graduate school. She did everything from working multiple jobs, making my meals, giving up the free time and weekends of our early years of marriage and much more, all so that I may be a successful graduate student. For all of the people that have helped me along this long journey I thank you from the bottom of my heart. I could not have made it to this point without your help. vi TABLE OF CONTENTS LIST OF FIGURES ........................................................................................................... ix LIST OF TABLES ........................................................................................................... xix 1 INTRODUCTION ...................................................................................................... l The City of Houston ........................................................................................................ 1 Background ..................................................................................................................... 4 Statement of Problem ...................................................................................................... 5 Research Objectives ........................................................................................................ 7 Outline of Thesis ............................................................................................................. 9 2 CONCEPTUAL FRAMEWORK ............................................................................. 12 Introduction ................................................................................................................... 12 Explaining the New Demand for Inner-City Living ..................................................... 13 Urban Renewal/Land Clearance ................................................................................... 20 Displacement ............................................................................................................. 22 Use of Urban Renewal in Ethnic and Racial Areas .................................................. 23 Locally-Driven Urban Renewal Tactics ................................................................... 26 Private-Sector ‘Block-busting’ ..................................................................................... 29 Gentrification ................................................................................................................ 31 Causes of Gentrification ........................................................................................... 32 Characteristics of Neighborhoods Experiencing Gentrification ............................... 35 Displacement ............................................................................................................. 36 Commentary on Physical and Social Upgrading .......................................................... 38 3 HOUSTON ............................................................................................................... 41 Introduction ................................................................................................................... 41 Brief History and Development of Houston ................................................................. 42 Economy .................................................................................................... 46 The Laissez-Faire City .................................................................................................. 49 Growth Coalitions ......................................................................................................... 51 Government Involvement in Business .......................................................................... 53 Postmodern Transition .................................................................................................. 56 Houston’s Modernist Roots ...................................................................................... 57 Houston’s New Postmodern Direction ..................................................................... 59 Local Economic Development Strategies: Focusing on Houston’s Central City ......... 67 The Main Street Management District and TIRZS ................................................... 70 Main Street and Infrastructure Projects .................................................................... 74 Entertainment Venues: Stadiums, Hotels, Conventions, Performing Arts ............... 81 The Role of Subsidies ............................................................................................... 91 Tax Breaks and Subsidies for Residential Developments ........................................ 96 Conclusion .................................................................................................................... 97 vii 4 DATA ANALYSIS ................................................................................................... 98 Variable Selection and Data Preparation ...................................................................... 98 Geographic Limits of Analysis ................................................................................. 99 Data Selection ......................................................................................................... 101 Variables of analysis ............................................................................................... 104 Data Collection ....................................................................................................... 104 Data Aggregation for Comparison .......................................................................... 106 Changes Occurring in Harris County ......... ' ................................................................. 110 Principal Components Analysis & Clustering ............................................................ 147 Areas of Houston Experiencing Redevelopment ........................................................ 153 Independent Municipalities ..................................................................................... 158 The Heights ............................................................................................................. 165 Rice Military/Magnolia Grove ................................................................................ 171 Freedmen’s Town ................................................................................................... 182 Conclusion .................................................................................................................. 1 92 5 F REEDMEN’S TOWN .......................................................................................... 193 Brief History of the settlement of Freedmen’s Town area ......................................... 193 Development and Success of F reedmen’s Town ........................................................ 198 Early Conflicts of Space ............................................................................................. 201 Declining State of the Community ............................................................................. 212 Recent Pressures for Development & Conflicts of Space .......................................... 216 Allen Parkway Village ............................................................................................ 217 Historic Structures & Preservation Attempts .......................................................... 219 Issues Regarding Various Land Holdings ............................................................... 233 HISD in the Fourth Ward ........................................................................................ 236 Physical and Social Upgrading of Freedmen’s Town ................................................. 240 Discussion of Data and Trends ............................................................................... 240 Current Upscale Developments .............................................................................. 244 Conclusion .................................................................................................................. 250 6 CONCLUSION ....................................................................................................... 252 Reflecting on the Robustness of Urban Revitalization Initiatives .............................. 252 Physical and Social Upgrading ................................................................................... 253 The Houston Context .................................................................................................. 256 The Data Analysis ....................................................................................................... 258 Freedmen’s Town ....................................................................................................... 261 Research Contribution and Future Directions ............................................................. 263 7 APPENDIX ............................................................................................................. 270 LITERATURE CITED ................................................................................................... 295 viii LIST OF FIGURES Images in this thesis are presented in color Figure 2.1 — Rent gap diagram .......................................................................................... 17 Figure 3.1 —- Union Station as entrance to Minute Maid Park (baseball stadium) (Source: Author) ...................................................................................................................... 63 Figure 3.2 — Interior of renovated Union Station (Source: Author) ................................. 63 Figure 3.3 -— Hogg Palace (Source: Author) ...................................................................... 64 Figure 3.4 — Rice Hotel (Source: Author) ......................................................................... 64 Figure 3.5 — Rice Hotel (Source: Author) ......................................................................... 65 Figure 3.6 — Orientation map of the Houston area and F reedmen’s Town ....................... 68 Figure 3.7 — Locations of downtown sites and recent redevelopment projects ................ 69 Figure 3.8 — Locations of Tax Increment Reinvestment Zones in the City of Houston 71 Figure 3.9 — Highly-successful Midtown area southwest of downtown redeveloped with a TIRZ. (Source: Author) ............................................................................................ 73 Figure 3.10 — Remaining land in the Midtown area prepared for development. (Source: Author) ...................................................................................................................... 73 Figure 3.11 — Improved streetscape designs and street integration with the light-rail line. (Source: Author) ....................................................................................................... 76 Figure 3.12 — Facade improvements and new streetscape designs along Main Street in downtown. (Source: Author) .................................................................................... 76 Figure 3.13 — District signage as part of downtown revitalization. (Source: Author) ...... 77 Figure 3.14 — Cotswold Streetscape Improvement Project (Source: Author) .................. 77 Figure 3.15 — Main Street Improvement Project with the construction of the li ght-rail line along Main Street in downtown. (Source: Author) ................................................... 79 ix Figure 3.16 - Main Street Improvement Project with construction of light-rail line (Source: Author) ....................................................................................................... 79 Figure 3.17 — Completed light-rail line integrated with Main Street. (Source: Author) .. 80 Figure 3.18 — Completed light-rail line integrated with Main Street. (Source: Author) .. 80 Figure 3.19 — New 1,200 room Hilton Americas-Houston hotel. (Source: Author) ........ 82 Figure 3.20 — Close proximity of new Hilton hotel and George R. Brown Convention Center as viewed from Minute Maid Park. (Source: Author) ................................... 82 Figure 3.21 — The redeveloped, historic Lancaster Hotel in the downtown Theatre District. (Source: Author) ......................................................................................... 83 Figure 3.22 — George R. Brown Convention Center (Source: Author) ............................ 84 Figure 3.23 — Minute Maid Park (formerly Enron Field) (Source: Author) ..................... 86 Figure 3.24 — Interior of Minute Maid Park (formerly Enron Field) (Source: Author)... 86 Figure 3.25 —- Toyota Center (Source: Author) ................................................................. 87 Figure 3.26 — Reliant Stadium under construction, October 2001 (Source: Author) ....... 87 Figure 3.27 -— Reliant Stadium (Source: Author) .............................................................. 87 Figure 3.28 — Wortham Center (Source: Author) ............................................................. 89 Figure 3.29 — Jones Hall (Source: Author) ....................................................................... 89 Figure 3.30 — Alley Theatre (Source: Author) .................................................................. 90 Figure 3.31 -— Hobby Center for the Performing Arts. (Source: Author) .......................... 90 Figure 3.32 - Bayou Place entertainment complex. (Source: Author) ............................. 90 Figure 3.33 — Bayou Place entertainment complex. (Source: Author) ............................. 91 Figure 4.1 — 2000 US. Census Tracts of Harris County and Houston City Limits ........ 100 Figure 4.2 — Location of the City of Houston and the counties it occupies .................... 102 Figure 4.3 — Independent Municipalities of the Houston area ........................................ 103 Figure 4.5 — Orientation map of the Houston area .......................................................... 1 1 1 Figure 4.6 — Map of the change in total population - Harris County, 1980-2000 .......... 113 Figure 4.7 —- Map of the change in the White population — Harris County, 1980-2000. 114 Figure 4.8 — Map of the change in the percentage of census tract that is White — Harris County, 1980-2000 ................................ . ................................................................. 115 Figure 4.9 —- Map of the percentage of census tract that is White — Harris County, 2000 ................................................................................................................................. 1 16 Figure 4.10 — Map of the change in the Black population — Harris County, 1980-2000 117 Figure 4.11 — Map of the percentage of census tract that is Black — Harris County, 2000 ................................................................................................................................. 119 Figure 4.12 — Map of the change in the Hispanic Population — Harris County, 1980-2000 ................................................................................................................................. 120 Figure 4.13 — Map of the change in the percentage of census tract that is Hispanic — Harris County, 1980-2000 ...................................................................................... 121 Figure 4.14 — Map of the percentage of census tract that is Hispanic — Harris County, 2000 ......................................................................................................................... 122 Figure 4.15 — Map of the change in the percentage of census tract population (age 25+) that are college graduates —- Harris County, 1980-2000 .......................................... 123 Figure 4.16 — Map of the percentage of census tract population (age 25+) that are college graduates — Harris County, 2000 ............................................................................ 124 Figure 4.17 — Map of the change in the percentage of census tract families that are below the poverty level — Harris County, 1980-2000 ........................................................ 125 Figure 4.18 - Map of the percentage of census tract families that are below the poverty level -— Harris County, 2000 .................................................................................... 126 Figure 4.19 — Map of the change in the percentage of census tract households that are female-headed - Harris County, 1980-2000 ........................................................... 127 Figure 4.20 — Map of the percentage of census tract households that are female-headed - Harris County, 2000 ................................................................................................ 129 Figure 4.21 — Map of the change in the percentage of census tract households receiving public assistance income — Harris County, 1980-2000 ........................................... 130 xi Figure 4.22 — Map of the percentage change in median gross rent —— Harris County, 1980- 2000 ......................................................................................................................... 131 Figure 4.23 — Map of the percentage change in median value of owner-occupied housing units - Harris County, 1980-2000 ........................................................................... 132 Figure 4.24 — Map of the median value of oWner-occupied housing units — Harris County, 1980-2000 ............................................................................................................... 133 Figure 4.25 — Map of the percentage change in median household income — Harris County, 1980-2000 ................................................................................................. 134 Figure 4.26 — Map of the percentage change in per capita income — Harris County, 1980- 2000 ......................................................................................................................... 136 Figure 4.27 — Map of the change in percentage of census tract employed population whose occupation is considered ‘professional’ — Harris County, 1980-2000 ........ 137 Figure 4.28 — Map of the percentage of census tract employed population whose occupation is considered ‘professional’ — Harris County, 2000 ............................. 138 Figure 4.29 — Map of the change in total number of households — Harris County, 1980- 2000 ......................................................................................................................... 139 Figure 4.30 — Map of the change in total number of housing units - Harris County, 1980- 2000 ......................................................................................................................... 140 Figure 4.31 — Map of the change in the total number of occupied housing units — Harris County, 1980-2000 ................................................................................................. 141 Figure 4.32 — Map of the change in the total number of vacant housing units — Harris County, 1980-2000 ................................................................................................. 142 Figure 4.33 — Map of the change in the total number of owner-occupied housing units — Harris County, 1980-2000 ...................................................................................... 144 Figure 4.34 — Map of the change in the total number of renter-occupied housing units — Harris County, 1980-2000 ...................................................................................... 145 Figure 4.35 - Map of the change in the percentage of total housing units lacking complete plumbing facilities — Harris County, 1980-2000 .................................................... 146 Figure 4.36 — Graph of Change in Incremental F-Values based upon K-Means Clustering Process .................................................................................................................... 152 xii Figure 4.37 — Map of the Harris County census tracts that clustered with Freedmen’s Town in experiencing Similar characteristics of redevelopment from 1980 to 2000 ................................................................................................................................. 154 Figure 4.38 - Zoomed-in map of the near-downtown cluster of redevelopment census tracts. ....................................................................................................................... 159 Figure 4.39 - A ‘teardown’ in progress within the separate municipality of Bunker Hill Village. Notice the smaller housing next door. (Source: Author) .......................... 161 Figure 4.40 - Example of some of the original housing that occupied these areas. Houses of this Size and style are often what are being torn down to be replaced by larger homes. (Source: Author) ......................................................................................... 161 Figure 4.41 - A new, larger home being built to replace a smaller home torn down in the separate municipality of Hunters Creek Village. (Source: Author) ........................ 162 Figure 4.42 - A new, larger home being built to replace a smaller home torn down in the separate municipality of Hunters Creek Village. (Source: Author) ........................ 162 Figure 4.43 - Older housing stock that has been renovated and gentrified in The Heights. (Source: Author) ..................................................................................................... 166 Figure 4.44 - Older housing stock that has been renovated and gentrified in The Heights. (Source: Author) ..................................................................................................... 167 Figure 4.45 - Older housing stock that has been renovated and gentrified in The Heights (on the right) with new two-story construction on the left. (Source: Igor Vojnovic) ................................................................................................................................. 167 Figure 4.46 - New upscale housing being constructed in The Heights. (Source: Igor Vojnovic) ................................................................................................................ 168 Figure 4.47 - Architecturally-unique housing being physically upgraded in the gentrifying area of The Heights. (Source: Author) .................................................................... 169 Figure 4.48 - Architecturally-unique housing being physically upgraded in the gentrifying area of The Heights. (Source: Igor Vojnovic) ........................................................ 169 Figure 4.49 - New, upscale townhomes being built in the Rice-Military area. The remaining house next door is typical of original housing of this area that has largely been replaced. (Source: Author) ............................................................................. 172 xiii Figure 4.50 - Deteriorated housing in the Rice Military area mostly likely awaiting demolition to be replaced with upscale housing. (Source: Author) ........................ 172 Figure 4.51 - New, upscale townhomes being built in the Rice-Military area. (Source: Author) .................................................................................................................... 173 Figure 4.52 — Sign advertising the newly-built townhomes in the Rice-Military area. (Source: Author) ..................................................................................................... 173 Figure 4.53 - Older housing stock remaining in the redeveloping Rice-Military area. (Source: Author) ..................................................................................................... 174 Figure 4.54 - Older deteriorated commercial property remaining in Rice-Military. Next door encroach the construction of new upscale townhomes. (Source: Author) ..... 174 Figure 4.55 — Deteriorated housing, most likely awaiting demolition, in the Rice-Military area with upscale townhomes in the background. (Source: Author) ...................... 175 Figure 4.56 - Older housing in Cottage Grove area similar to what is being demolished for newer upscale construction. (Source: Author) .................................................. 178 Figure 4.57 - Older housing awaiting demolition in the Cottage Grove area. (Source: Author) .................................................................................................................... 178 Figure 4.58 - Older housing and newer construction in the Cottage Grove area experiencing forces of urban renewal and private-sector ‘blockbusting’. (Source: Author) .................................................................................................................... 179 Figure 4.59 - Older, deteriorated housing remaining next to a large empty lot awaiting development. (Source: Author) ............................................................................... 179 Figure 4.60 - Older housing dwarfed in size by new townhome construction in Cottage Grove. (Source: Author) ......................................................................................... 180 Figure 4.61 - Older housing dwarfed in size by new townhome construction in Cottage Grove. (Source: Author) ......................................................................................... 180 Figure 4.62 - New townhome construction next to older trailer-style housing in Cottage Grove. (Source: Author) ......................................................................................... 181 Figure 4.63 — Newly constructed two-story, single-family rowhouses in Cottage Grove. (Source: Author) ..................................................................................................... 1 81 Figure 4.64 — Boarded homes awaiting demolition in Freedmen’s Town. (Source: Igor Vojnovic) ................................................................................................................ 187 xiv Figure 4.65 -— Boarded homes awaiting demolition in F reedmen’s Town. (Source: Igor Vojnovic) ................................................................................................................ 187 Figure 4.66 — Newly-constructed homes across the street from deteriorating ‘shotgun- style’ homes in Freedmen’s Town. (Source: Igor Vojnovic) ................................. 188 Figure 4.67 — Upscale lofts of the ‘Urban Lofls’ development being constructed in Freedmen’s Town. (Source: Author) ...................................................................... 188 Figure 4.68 — Boarded housing awaiting demolition in Freedmen’s Town. (Source: Author) .................................................................................................................... 189 Figure 4.69 — Boarded housing adjacent to a bumed-out shell of a home and newly- constructed, upscale townhomes in Freedmen’s Town. (Source: Author) ............. 189 Figure 4.70 — Early stages of construction of new housing adjacent to deteriorating housing in Freedmen’s Town. (Source: Author) .................................................... 190 Figure 4.71 — New housing being constructed across from the historic 1926 Gregory School building in F reedmen’s Town. (Source: Author) ........................................ 190 Figure 5.1 —- Map of original Houston wards. ................................................................. 195 Figure 5.2 — Freedmen’s Town ‘shotgun-style’ housing (Source: Author) .................... 197 Figure 5.3 — F reedmen’s Town Housing (Source: Author) ............................................ 197 Figure 5.4 — Picture of the Houston Black Chamber of Commerce established in the Fourth Ward. (Source: http://www.houstonhistory.com/erhnic/history2blacks.htm) ................................................................................................................................. 200 Figure 5.5 — Snapshot of active daily life along W. Dallas Avenue in the Fourth Ward from around the 19403. (Source: http://houstonhistory.com/decades/historySk.htm) ................................................................................................................................. 200 Figure 5.6 — Map of Fourth Ward and downtown expansion projects ........................... 204 Figure 5.7 - City Hall (Source: Author) ......................................................................... 205 Figure 5.8 — Sam Houston Park, west of City Hall (Source: Author) ............................ 205 Figure 5.9 - Sam Houston Coliseum (site of the current Hobby Center for the Performing Arts built in 2002) (Source: http://www.houstonhockey.net/page9.htrnl) .............. 206 XV Figure 5.10 — Conversion of Gulf Freeway into Interstate 45 (Source: http://www.texasfreeway.com/houston/historic/photos/houston_historic_photos.sht ml) ........................................................................................................................... 206 Figure 5.11 - Un-redeveloped western Section of the former Albert Thomas Convention Center (Source: Author) .......................................................................................... 208 Figure 5.12 — Antioch Baptist Church in the midst ’of the modern glass skyscrapers of the Allen Center (Source: Author) ................................................................................ 208 Figure 5.13 — San Felipe Courts public housing project (currently Allen Parkway Village) (Source: Author) ..................................................................................................... 21 0 Figure 5.14 — Original San Felipe Courts public housing project housing. Currently named the Historic Oaks of Allen Parkway Village (Source: Author) ................... 210 Figure 5.15 - New public housing construction of the Historic Oaks of Allen Parkway Village (Source: Author) ......................................................................................... 218 Figure 5.16 — Historic cottage moved from the Fourth Ward in 2002 by developer Larry Davis in preparation for the construction of upscale housing. The cottage was placed within Sam Houston Park with other historic homes of the area including the home of the Reverend John Henry ‘Jack’ Yates, pastor of the Antioch Baptist Church, whose home was also originally in Freedmen’s Town. (Source: Author) .............. 220 Figure 5.17 - Placard describing the historical importance of the Fourth Ward cottage. (Source: Author) ..................................................................................................... 221 Figure 5.18 — The home of Rev. John Henry ‘Jack’ Yates also moved to Sam Houston Park from Freedmen’s Town. (Source: Author) ..................................................... 221 Figure 5.19 — Cleared residential site at 1713 Lubbock Street in the historic Sixth Ward. (Source: Author) ..................................................................................................... 223 Figure 5.20 —- Burned-out shell of the Bethel Baptist Church in Freedmen’s Town (Source: Author) ..................................................................................................... 225 Figure 5.21 — Construction of upscale lofls surrounding the burnt-out Bethel Baptist Church (Source: Author) ......................................................................................... 226 Figure 5.22 — Construction of upscale lofts surrounding the burnt-out Bethel Baptist Church (Source: Author) ......................................................................................... 227 Figure 5.23 — Construction of upscale lofts surrounding the burnt-out Bethel Baptist Church (Source: Author) ......................................................................................... 227 xvi Figure 5.24 — Remaining original bricks partially covered by recent concrete and destroyed by local developers (Source: Author) ..................................................... 229 Figure 5.25 — Remaining original brick street in Freedmen’s Town (Source: Author). 229 Figure 5.26 — Remaining original bricks partially covered by recent concrete and destroyed by local developers (Source: Author) ..................................................... 230 Figure 5.27 — Remaining original bricks partially covered by recent concrete and destroyed by local developers (Source: Author) ..................................................... 230 Figure 5.28 — Boarded-up Gregory School set to reopen Houston public library branch and Afiican-American Archival & Cultural Center (Source: Author) ................... 232 Figure 5.29 — Back of the boarded-up Gregory School set to reopen Houston public library branch and African-American Archival & Cultural Center (Source: Author) ................................................................................................................................. 232 Figure 5.30 — Land south of the Gregory-Lincoln school acquired for expansion of the current school and construction of a new high school for the visual and performing arts. (Source: Author) .............................................................................................. 239 Figure 5.31 — Land south of the Gregory-Lincoln school acquired for expansion of the current school and construction of a new high school for the visual and performing arts. (Source: Author) .............................................................................................. 239 Figure 5.32 — Map of the locations of the new Urban Lofts townhome construction (Source: www.urbanlofts.com) ............................................................................... 246 Figure 5.33 — Construction of new, upscale townhomes of Urban Lofts. (Source: Author) ................................................................................................................................. 246 Figure 5.34 — New townhomes across the street from a few of the remaining original housing in Freedmen’s Town. (Source: Author) .................................................... 247 Figure 5.35 — New, upscale townhomes of Urban Lofts. (Source: Author) ................... 247 Figure 5.36 — Land held by Camden Property Trust to be used for a $70 million, multifamily complex on the far eastern edge of Freedmen’s Town. (Source: Author) ................................................................................................................................. 248 Figure 5.37 — Informational flyer of a newly constructed Crosby Lofts for sell on the east side of F reedmen’s Town ........................................................................................ 249 xvii Figure 5.38 — Newly constructed Crosby Lofts (Source: Author) .................................. 250 Figure 7.1— Map of the total population — Harris County, 2000 .................................... 271 Figure 7.2 - Map of the change in the percentage of census tract that is Black — Harris County, 1980-2000 ................................................................................................. 272 Figure 7.3 — Map of median gross rent — Harris COunty, 2000 ...................................... 273 Figure 7.4 — Map of median household income — Harris County, 2000 ......................... 274 Figure 7.5 — Map of per capita income — Harris County, 2000 ...................................... 275 xviii LIST OF TABLES Table 2.1 — Conditions for gentrification schema ............................................................. 34 Table 3.1 — Population growth for the City of Houston (Source: US. Census Bureau) .. 44 Table 3.2 — Facts and Figures — City of Houston 2000 (Source: City of Houston 2003a)45 Table 4.1 — Census Data Variables of Analysis .............................................................. 105 Table 4.2 — Complete List of Variables Used in Principal Components Analysis ......... 148 Table 4.3 — Loadings fiom Principal Components Analysis — Varimax Rotation - 7 Dimensions ............................................................................................................. 1 50 Table 4.4 — Calculations of Incremental F-Values based upon K—Means Clustering Process .................................................................................................................... 152 Tables 4.5 — Change in US. Census data (median values) from 1980-2000 for the tracts that make up the Independent Municipalities. (US. Census Bureau 1983, 1993, 2005) ....................................................................................................................... 164 Tables 4.6 - Change in US. Census data (median values) from 1980-2000 for the tracts that make up The Heights. (US. Census Bureau 1983, 1993, 2005) ..................... 170 Tables 4.7 - Change in US. Census data (median values) from 1980-2000 for the tracts that make up the Rice-Military/Magnolia Grove area. (US. Census Bureau 1983, 1993,2005) ............................................................................................................. 176 Tables 4.8 - Change in US. Census data (median values) from 1980-2000 for the tracts that make up the Rice-Military/Magnolia Grove area. (US. Census Bureau 1983, 1993,2005) ............................................................................................................. 185 Tables 4.9 - Change in US. Census data (median values) from 1980-2000 for the tracts that make up the Rice-Military/Magnolia Grove area. (US. Census Bureau 1983, 1993,2005) ............................................................................................................. 186 Table 5.1 — Early population growth in Houston, TX (US. Census Bureau 1853, 1864, 1872) ....................................................................................................................... 194 Table 5.2 — Population and race data for the Freedmen’s Town census tract, 1970-2000. (US. Census Bureau 1972, 1983, 1993, 2005) ....................................................... 241 xix Table 5.3 -— Education and poverty data for the F reedmen’s Town census tract, 1970- 2000. ("Calculated of the population that is age 25+) (US. Census Bureau 1972, 1983, 1993, 2005) ................................................................................................... 241 Table 5.4 — Housing data for the F reedmen’s Town census tract, 1970-2000. (*** Will not add up to 100% because of the vacant housing units) (US. Census Bureau 1972, 1983, 1993, 2005) ........................................... . ........................................................ 242 Table 5.5 — Income and money data for the Freedmen’s Town census tract, 1970-2000. (US. Census Bureau 1972, 1983, 1993, 2005) ....................................................... 242 Table 7.1 — Principal Components Analysis, Varimax Rotation, 7 Dimensions, Pg. 1.. 276 Table 7.2 - Principal Components Analysis, Varimax Rotation, 7 Dimensions, Pg. 2 .. 277 Table 7.3 - Principal Components Analysis, Varimax Rotation, 7 Dimensions, Pg. 3 .. 278 Table 7.4 - Principal Components Analysis, Varimax Rotation, 7 Dimensions, Pg. 4.. 279 Table 7.5 - Principal Components Analysis, Varimax Rotation, 7 Dimensions, Pg. 5 .. 280 Table 7.6 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 1 of 14. .................................. 281 Table 7.7 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 2 of 14. .................................. 282 Table 7.8 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 3 of 14. .................................. 283 Table 7.9 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 4 of 14. .................................. 284 Table 7.10 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 5 of 14. .................................. 285 Table 7.11 — Data of individual census tracts experiencing characteristics of redevelopment similar to F reedmen’s Town; Table 6 of 14. .................................. 286 Table 7.12 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 7 of 14. .................................. 287 Table 7.13 — Data of individual census tracts experiencing characteristics of redevelopment Similar to Freedmen’s Town; Table 8 of 14. .................................. 288 XX Table 7.14 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 9 of 14. .................................. 289 Table 7.15 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 10 of 14. ................................ 290 Table 7.16 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 11 of 14. ................................ 291 Table 7.17 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 12 of 14. ................................ 292 Table 7.18 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 13 of 14. ................................ 293 Table 7.19 — Data of individual census tracts experiencing characteristics of redevelopment similar to Freedmen’s Town; Table 14 of 14. ................................ 294 xxi 1 INTRODUCTION This thesis explores the various types of physical and social upgrading processes that have been used in the city of Houston, Texas to facilitate the city’s recent local urban revitalization initiatives. The study focuses particularly on the negative social consequences of physical upgrading that have been encouraged throughout many US. cities, including Houston, as local economic and political leaders attempt to improve downtown urban quality. Such initiatives have generally been evident in cities that have made a shift from a traditional manufacturing economy to a Specialized service and hi gh- technology economy. While urban revitalization is generally viewed as positive by policy-makers, local businesses, and local developers, the physical upgrading involved in urban redevelopment usually leads to the displacement of low-income, minority residents that have traditionally occupied the central city neighborhoods. In the context of Houston, several different processes of physical and social upgrading are evident, including locally-driven urban renewal programs, private-sector ‘block-busting’, and gentrification. The focus of this thesis is to explore the complex processes involved in Houston’s urban revitalization and the role of the public and private sectors in driving these initiatives. The City of Houston The city of Houston was established in the spring of 1836 along a swampy, largely un-navi gable bayou near the Gulf of Mexico. The early economy of the city grew to include manufacturing, trade, and eventually the processing of resources extracted from the surrounding region. This included lumber, cotton, and particularly important within the Houston context, petroleum, which would Shape the growth and development of the city in the twentieth century. After the city’s recession of the 19803, largely due to the fall in petroleum prices, the city has attempted to diversity its economy from its traditional petroleum-based economy, placing a new emphasis on medical research, health care facilities, specialized services, tourism, and finance. The city grew at a rapid pace both in terms of its population and spatial area. The early population of 2,073 in 1839 grew to a size of 44,633 people in 1900, 596,163 in 1950 and just under two million people in 2000 (US. Census Bureau 1901 , 1952, Johnston 1991, US. Census Bureau 2005). The original settlement of 2,000 acres in 1836 grew to a size of 72 square miles by 1930, 160 square miles by 1950, 447 square miles by 1967 and 633 square miles by 2003 (Federal Works Agency 1942, McComb 1969, City of Houston 2003b). The city of Houston, known for its highly conservative nature, has traditionally been viewed as the archetypical laissez-faire city with minimal government involvement in various planning issues—although this image has been increasingly challenged (Vojnovic 2003a). Houston’s traditional laissez-faire philosophy is perhaps best evident with the city’s continual rejection of citywide zoning, the absence of a formal plan, and the city’s low-tax/low-services approach to local government. While many city officials argue that this governing strategy is necessary to maintain a favorable business climate, this approach to local government has had a history of producing severe social and environmental injustices disproportionately affecting the city’s lower-income citizens (Feagin 1988). The low taxes and the resulting minimal provision and maintenance of urban infrastructure, including the disinterest in social service provision, has particularly affected the lower-income and marginalized citizens. In this laissez-faire environment, business leaders have historically maintained an important role in guiding the development of the city (McComb 1969, Feagin 1988, Vojnovic 2003b). As argued recently by Joel Warren Bama, in his comments regarding local planning, “[i]n a manner typical throughout modern Texas, private interests began to develop the comprehensive vision that public entities had failed to achieve” (Bama 2003, p. 47). This is a sentiment that is widely echoed in Houston. The local business leaders have been known for ensuring the continuation of local policies that maintain the city’s ‘favorable business climate’ and for recruiting businesses to Houston. This has been generally considered successful given the city leaders’ ability to entice companies with the low tax and minimal government benefits of the city. Historically, Houston’s business leaders have been a strong influence in shaping the local economic development strategies and in influencing the growth of the city. Similar to the experience of many other US. cities in the latter 20th century, the city of Houston has concentrated considerable efforts and resources towards the redevelopment of its downtown and surrounding neighborhoods. Given Houston’s well- known history of urban decentralization, this was clearly a new development direction. In fact, downtown revival has emerged as an important part of Houston’s new local development strategy, as local leaders placed a new focus on developing the city’s high- technology and specialized service economy. Recognizing that a high quality urban environment is necessary to attract ‘white—collar’ professionals, businesses, and tourism into the central city, extensive public resources have been devoted to increasing the 3 attractiveness of Houston’s downtown. Large-scale public construction projects have been combined with the encouragement of mixed-use neighborhoods to promote downtown living. In this revitalization process, local developers have benefited from heavily subsidized physical improvement projects and direct subsidies for new developments, while lower-income, minority populations have faced considerable redevelopment pressures in their traditional communities. Background Many U.S. inner-cities faced increasing physical and social decline, especially in the post-World War 11 period. As the US. economy strengthened after the war, levels of suburbanization steadily increased. This resulted in large population losses for most US. central cities. The residents able to leave the city largely consisted of those that could afford to suburbanize, while those who remained behind in the city centers were predominately poor, minority, and marginalized populations. This brought increasing social ills on large segments of the population sub-groups trapped in the city, as levels of drug use and crime increased, and education quality and employment opportunities decreased (Wilson 1987). In an effort to physically revitalize downtowns and surrounding areas, various forms of physical upgrading have been evident in US. cities over the last fifty years. Federal programs to fund and stimulate central city redevelopment began with large-scale urban renewal projects and have more recently followed with renaissance zones and community development block grants. Throughout the US, various local level initiatives have been introduced to attract or encourage development in certain, often deteriorated, areas of a city. Private developers are also involved in this physical and social upgrading of neighborhoods, with acquisitions of private property in areas holding high potential for profit from redevelopment. Another process of physical and social upgrading that has been evident in many US. cities is gentrification which is the refurbishment of unique, older, deteriorated housing stock in inner-city areas by middle- and upper-income professionals. This process is largely predicated upon the theory, known as the rent gap, that certain inner- city neighborhoods (housing and property) have deteriorated and decreased in value to such a low point that redevelopment is possible and profitable by developers and gentrifiers. Statement of Problem Literature discussing redevelopment processes have typically focused on the individual forces observed, such as the literature on gentrification (Smith 1979b, Henig 1980, Beauregard 1990, Betancur 2002, Hackworth 2002) or the literature on urban renewal (Wilson 1966, Bellush and Hausknecht 1967). This has included studies on specific cases of gentrification seen in cities such as New York City or Chicago and federal urban renewal of the 19503 and 19603 in Boston or Detroit. This thesis intends to provide a broader perspective of the various physical and social upgrading processes that can simultaneously take place in a city and the multiple actors involved in guiding these initiatives. The research will also attempt to articulate clearer definitions of the different typologies of physical and social upgrading. In addition, the thesis intends to contribute to the existing redevelopment literature with a thorough assessment of when the different physical upgrading processes are employed, based on the physical characteristics of a neighborhood and/or the local demographic patterns. The focus of this research is placed on Houston because of the unique and complex combination of public and private sector redevelopment programs and initiatives involved in the upgrading of Houston’s central city neighborhoods. This public and private sector collaboration has developed a unique synergy that has enabled a rather efficient—and politically, largely undisputed—demolition of a number of historically significant ethnic communities. Ironically, this is taking place at the same time that local officials are devoting considerable resources to the marketing and celebration of Houston’s historical and ethnic neighborhoods in their attempt to encourage downtown revival and tourism. One area of particular focus of redevelopment in Houston and this thesis is the historic Freedmen’s Town area. The original settlement of Houston’s African-American community dating to the mid-18603, Freedmen’s Town has been one of the centers of conflict in Houston’s desire to redevelop its downtown area. This thesis will explore the different urban upgrading processes that have been utilized throughout Houston, including Freedmen’s Town. This analysis will contribute to the existing revitalization literature by illustrating how complex and multi-faceted urban redevelopment strategies can become. The thesis will also examine the continual conflict of Space and the resulting physical destruction and residential displacement, taking place in Freedmen’s Town. This will provide yet another case study illustrating the role of marginalized populations in the new and growing appreciation of central cities in the US. Research Objectives The focus of this thesis is to analyze the different combinations of physical and social upgrading processes that can take place simultaneously in a city pursuing urban revitalization. Three main objectives will be accomplished in this study. First, an assessment will be undertaken into the different redevelopment initiatives, projects, and policies that have facilitated the physical and social upgrading of Houston’s central city. The second objective is to statistically measure and graphically display the changes in population, housing, and socioeconomic and ethnic characteristics of residents in Harris County (of which Houston is a part') from 1980 to 2000, using data from the US. Census Bureau. This analysis will determine the areas of the city that are experiencing similar physical and social upgrading processes and will enable a spatial assessment to be performed into the patterns of neighborhood change. This will include an examination of how specific areas of Houston have experienced different combinations of upgrading based on the specific characteristics in the built environment and the demographic characteristics of the neighborhoods. This review will provide new insight into the complexity and multi-faceted nature of physical and social upgrading forces that can occur within a city and the nature of involvement among the various public and private economic and political agents driving these processes. The third objective is to examine the changes being experienced in the traditionally-black community of Freedmen’s Town, west of Houston’s downtown, and to assess the continual conflicts of space that have occurred between the community, private developers, and the city. This historic Houston community has experienced ' The majority of the city of Houston, some 95 percent, is located within Harris County. 7 extreme redevelopment pressures that have resulted in the displacement of large segments of its lower-income, minority population. The data collected and evaluated in this analysis consists largely of census data from the national Census Bureau. Although weaknesses are inherent in this data source and its collection, it is one of the most accurate and thorough compilations of data on the US. population and housing characteristics. The other benefit of using census data is that it is consistently collected across the nation every ten years, enabling the necessary demographic assessments in the city of Houston over the two decades of interest. Analyses of similar datasets have also been completed in other studies on physical and social upgrading experienced in cities across the US. (Henig 1980, Galster 1985, Beauregard 1990, Knox 1991, Freeman and Braconi 2004) and Canada (Ley 1986, Dantas 1988, Filion 1991). This extensive literature provides support for the selected method of analysis pursued in this thesis. This thesis is unique in that it will articulate the simultaneous interaction of the physical and social upgrading forces of locally-driven urban renewal, private sector ‘block-busting’, and gentrification that has lacked in the literature to this point. As stated before, this thesis will provide an assessment of the different physical and socioeconomic characteristics of neighborhoods that interact to encourage and facilitate the physical upgrading processes. The thesis also provides a unique set of variables to study the change experienced in neighborhoods including the analysis of the turnover in residents (renter and owner) as well as renter- and owner-occupied housing units. Also important is the contribution of a comprehensive dataset illustrating the unique physical and social changes that have taken place in the historically-significant and minority Freedmen’s Town area of Houston. Outline of Thesis Chapter two of the thesis provides an assessment of the existing literature on the processes of physical and social upgrading experienced in North American central cities over the last five decades including urban renewal, private-sector ‘block-busting’, and gentrification. While many urban revitalization programs are presented as beneficial to the community and residents, these initiatives have a history of producing considerable negative impacts on large segments of the population that are displaced in the physical upgrading process. The importance of the rent gap theory and the emergence of new urbanites, population subgroups that have rediscovered the amenities of the inner-city, on the three upgrading forces will also be discussed. The third chapter provides an overview of the city of Houston, its historical development and the city’s current focus on downtown revitalization. An important part of Houston’s grth agenda has been based on the city’s Iaissez-faire philosophy, with minimal government involvement being the cornerstone of its local economic, social, and planning initiatives. However, while the city maintains this minimal government rhetoric, historically governments at all levels have been extensively involved in the subsidization and financial aid programs in a number of key projects and development initiatives in the city of Houston. The recent focus on the physical upgrading of Houston’s central business district and surrounding neighborhoods has come at a large price as local taxpayers have once again been extensively involved in subsidizing local developers and private businesses, and many of the original residents of these communities experiencing redevelopment have been displaced in the resulting physical and social upgrading. The fourth chapter measures the changes in population, socioeconomic, ethnic, and housing characteristics of Harris County and its residents from 1980 to 2000. A statistical principal components analysis was performed on the change in data for the variables from 1980 to 2000. One of the goals of the analysis was to determine areas of the city experiencing characteristics of physical and social upgrading similar to that being experienced in Freedmen’s Town. The result was the clustering and identification of several specific areas in Houston experiencing varying combinations of physical and social upgrading. The fifth chapter focuses on the conflict over space that has occurred in Freedmen’s Town between residents, developers, and the city for over eighty years. With the increased levels of physical and social upgrading associated with downtown revival in the early- to mid-19903, the near-downtown location of Freedmen’s Town came under increased pressure for redevelopment by private developers and local government officials seeking to physically upgrade this transition area. Spurred by downtown revival, the physical and social upgrading of F reedmen’s Town has resulted in the large-scale displacement of many of the original poor, minority residents and the destruction of one of the most historically and ethnically significant neighborhoods of Houston. The final chapter summarizes the analysis of physical and social upgrading processes and the results of these upgrading forces in the Houston context. The complexity of these forces and their occurrence in combination based upon local physical and socioeconomic factors is also discussed in the different areas of Houston. This 10 chapter concludes with a discussion of the contributions of this research, possible future research studies, and various alternatives to the severe displacement of lower-income, marginalized populations in the process of physical upgrading so encouraged by cities across the nation. 11 2 CONCEPTUAL FRAMEWORK Introduction Beginning largely after World War 11, many US. urban centers and downtowns began experiencing economic struggles. Over the past sixty years, the economic downturn in US. inner cities was reflected in the deterioration of their physical infrastructure, loss of employment, a decreasing tax base, and the abandonment of neighborhoods, particularly by White and upper-income populations. Many of these problems faced by US. downtowns were partially a result of, or exacerbated by, increased levels of suburbanization encouraged and subsidized by the federal government (powell 1999, Hanchett 2001, powell 2002, Jackson 2003). Although residential and commercial decentralization had been taking place for several decades prior to World War 11, during the post-war era decentralization began to take place at an even greater scale and with more detrimental impacts upon residents remaining in the city. The level and quality of services provided in the inner-cities decreased as opportunities for employment became difficult and urban social problems magnified, especially for lower- income minorities (Kasarda 1985, Grigsby 1987, p. 48-58, Wilson 1987, Galster 1991). In an effort to physically redevelop downtowns and surrounding areas, various physical upgrading processes have been evident in the US. context. For some fifty years, the literature on urban renewal, private-sector ‘block-busting’, and gentrification have examined the impacts of inner-city redevelopment and urban revival on residential displacement. It has been evident that in the history of urban revitalization, physical upgrading processes have also facilitated social upgrading, producing severe detrimental 12 impacts upon the original residents of an area that are forced to leave or are priced out of their traditional communities. The large scale physical and social upgrading processes in the US. began in the late 19403 with the federal urban renewal program, initiated to replace substandard housing units that occupied inner-cities. Eventually this program led to the removal of many poor, mostly minority residents, from their traditional neighborhoods. Many of these residents were also not provided with adequate replacement housing, further worsening their condition. While urban renewal has ended, in recent years local governments have become involved in the acquisition of private property for development with the use of eminent domain. In addition, private sector agents, including developers and gentrifiers, have also been extensively involved in the physical upgrading of downtown neighborhoods. Developers have been acquiring and consolidating land parcels for large-scale development, at times with the use of questionable techniques that enable them to more easily and cheaply acquire private property. Smaller scale physical upgrading processes have involved gentrification, in which older, lower-income housing units with unique architectural characteristics are occupied and physically upgraded by upper-income earners. All of the above redevelopment and refurbishment processes result in the displacement of original residents of the area and surrounding neighborhoods. Explaining the New Demand for Inner-City Living One explanation of the new demand for the inner-city lifestyle is associated with cultural and consumption orientations. It is based on the idea that without the growing demand by population sub-groups for inner-city housing, these physical upgrading 13 processes and inner-city revival would not be taking place. Within this context, it can be reasonably argued that the study of these new urbanites themselves is key to explaining this mid- to latter-20th century interest in urban revitalization. Some have paralleled the changing structure of the worldwide economy towards a service economy with the increasing incidents of inner-city revitalization (Mullins 1982, Beauregard 1986). This market shift has created the supply of white-collar professional workers necessary for the physical upgrading to take place. A part of this market shift included increasing numbers of employees working in downtown cores. With rising transportation and suburban living costs, many began seeking residences closer to places of employment, thereby increasing the demand for inner-city locations (Berry 1985). An additional attraction of a particular inner-city location are the amenities of an urban lifestyle. These include such attractions as increased accessibility to public amenities, cultural activities, as well as historically significant residences and districts. These attractions create certain pull factors that further increase the demand for inner—city housing by middle- and upper-income groups (Ley 1986). While existing literature has focused on gentrification in explaining and exploring the characteristics of gentrifiers, it is important to recognize that a new demand for downtown lifestyles is evident throughout US. cities, and that while some of this demand is met through the gentrification process, other forms of physical upgrading are also supplying this new housing demand. In particular, private sector block-busting and locally driven urban renewal programs, as the Houston case will illustrate, are important physical upgrading processes that are producing new units in the housing market. 14 With regard to the actual population sub-groups that are generating this new demand for inner-city living, a number of different population groupings can be identified in driving this new market segment. These population sub-groups are upper- income earners typically with college degrees or higher. A large percentage are employed in various ‘professional’ or white-collar occupations and are two-income households. Many of these families are childless and typically younger in age (25-40 years old) (Henig 1980, Ley 1986, Vigdor 2002). In many cases, populations seeking alternative lifestyles initially move into these neighborhoods (artists, musicians, and fashion designers) and facilitate the transition between the minority lower-income groups and the middle and upper income professionals that eventually take over the neighborhood. As baby-boomers age, and become empty nesters, they are also likely contributing to this demand for smaller residences in the inner city. All of these sub-groups maintain a desire to live in areas in close proximity to rich urban amenities (social, cultural, entertainment, and retail). Also, for some there is an appeal for historic buildings, or those with pre- modem designs, that contain more ‘character’ than the structures offered in typical post- war suburban communities. In contrast to the above demand side explanation of the recent interest in inner city revitalization, a second explanation is based on supply-side factors. According to this perspective, inner-city revitalization is driven by the availability of dilapidated housing and land in the inner-city that has become affordable enough to encourage reinvestment and redevelopment. This explanation is known as the rent- gap theory, and it has been the framework used for explaining the refurbishment of the older housing stock in inner-city areas by gentrifiers. Although developed to explain gentrification, the rationale of the 15 rent-gap theory can also provide insight into the two other physical upgrading processes discussed in this research, locally-driven urban renewal and private sector ‘block- busting’. The rent-gap theory is a framework advanced and popularized in the literature by Neil Smith. The supply-side explanation of physical upgrading and urban revitalization offered by the rent-gap theory stresses the production of urban space (including the operation of the housing and land market, and the role of developers and lending institutions). The characteristics of actual housing are perhaps the most important variables in this process, since the value of these homes must fall to certain levels in order to make them attractive enough to upper-income renovators. This argument begins with the illustration of land values in the nineteenth century city depicted with the classical conical form with a peak at the urban center and then a declining gradient towards the periphery. This was first widely discussed by Hoyt (Hoyt 1933) in reference to Chicago in the 19303. With increasing rates of suburbanization of population and industries, the land values of the inner—city fell relative to the downtown central business district and the suburbs. This sharp decline in land values in the inner city then provided the basis for profitable reinvestment. The key in this argument is the actual difference between land value and property value. With continued disinvestrnent in inner-city neighborhoods, existing structures will decline in value and depreciate. Eventually a point in time will be reached at which the ground rent currently being capitalized on a site is less than the potential ground rent at its ‘highest and best use’ because of its advantageous central location near downtown. This disparity between the potential ground rent and the actual ground rent currently being capitalized under the 16 present use is termed the rent gap (Figure 2.1). Once this gap is large enough that it becomes profitable for economic agents to cheaply acquire the structures, pay refurbishment costs, and sell the end product for a satisfactory profit, inner—city revitalization, according to the rent gap theory, will occur (Smith 1979b). Potential Dollars ground rent Price Capitalized ground rent House Value Time from construction date (Source: http://www.casa.ucl.ac.uk/~david/AAG200l/2.html, Adapted from (Smith 197%» Figure 2.1 - Rent gap diagram While the decline of the structures and the eventual reinvestment and refurbishment in these properties by individual homebuyers specifically applies to gentrification, it can also be argued that the decline of property values can also reach levels that accommodate large-scale clearing and redevelopment of sites. This would facilitate private sector block-busting and locally driven urban renewal programs that will be discussed in the context of Houston’s recent inner-city revitalization. l7 One contribution of this research will be to explore how the role of government and public policy will affect land values and determine the timing and location of development and redevelopment decisions. The rent gap theory does not acknowledge the importance of local government financing and investment in affecting property values, and hence the role of the public realm in redevelopment. However, the role of govemment—for instance, utilizing public subsidies to entice developers and upper- income renovators to areas of decline—can play a major role in affecting the timing of both large scale redevelopment and the piecemeal refurbishment of older structures. The supply and demand side explanations of physical upgrading—one focusing on the importance of population sub-groups in the US. that have rediscovered the attraction of inner-city lifestyles and the other on declining land and property values— have important implications in all three of the social upgrading urban revitalization processes discussed in this thesis. Municipalities have long focused on developing inner- city areas with depressed land and housing values in order to increase their taxable assessment base. Upper-income professionals and new urbanites are also important as they seek out housing opportunities near employment centers, cultural attractions, and areas of rich urban amenities in central city locations. This high demand for upscale inner-city housing subsequently encourages cities and private developers to acquire land in these high demand locations as well as providing the basis for the gentrification of inner-city locations with unique characteristics and housing qualities. The literature covering the three physical and social upgrading processes— gentrification, private sector block-busting, and government facilitated urban renewal (whether federal or local)—has tended to discuss the three forms of upgrading as separate 18 with fairly independent driving forces. The assessment and implications of the different types of physical upgrading processes occurring synergistically in a city has not been discussed in the literature. While researchers tend to focus on any one of these physical upgrading processes independently, the Houston case study illustrates that a number of these processes can take place simultaneously, as both public and private agents might be involved in a large-scale revitalization process. Recent revitalization initiatives in Houston illustrate the importance of synergies between municipally supported urban renewal, private-sector ‘block-busting’, and gentrification, occurring in a relatively focused spatial location at one period of time. This research will Show, in fact, that there are specific patterns to the nature of physical and social upgrading processes selected. Which processes occur in which areas is influenced by particular variables, including the condition of the housing stock, the economic characteristics of the current residents, whether the population is primarily composed of renters or owners, and the political difficulty in displacing the existing population and acquiring their land. Also of importance is the fact that in the literature the terms ‘urban renewal’, ‘private sector block-busting’, and ‘gentrification’ are often used interchangeably to describe any physical and social upgrading process, when in fact there are distinct characteristics associated with each. The term ‘redevelopment’ is also many times used inappropriately, both in the academic literature and popular media, to describe any one of these three phenomena. Additionally, the term redevelopment has the underlying connotation that all residents are benefiting in this process, which as the Houston experience will illustrate, is certainly not the case. This literature review and the Houston case study will help clarify the distinction between the various physical and social 19 upgrading processes and the importance in understanding how each works, both independently and in combination with the others. Urban Renewal/Land Clearance Beginning with Title I of the Housing Act of 1949, the US. federal government began a program to rebuild dilapidated neighborhoods throughout the nation. It began as a slum clearance and housing program, but soon included a commercial focus as well. Urban renewal, as it came to be known, had four main goals: eliminating substandard housing, revitalizing city economies, constructing good housing, and reducing defacto segregation (Foard 1966). In an effort to help cities compete with suburban locations, federal funds were directed to clear large tracts of land to make them more attractive to developers. The intent was to replace the substandard housing that was being demolished and thereby provide higher quality housing for all of the original residents. But most of the time the housing was not replaced on a one-for—one basis, it was not marketed to the original residents, and it was not affordable enough for them. The displaced residents faced extreme struggles. They were provided with very little, if any, funds for their relocation, while their community and social networks were dismantled (Anderson 1964). Urban renewal exemplified the severe effects of displacement caused by an attempt to physically upgrade neighborhoods. Many interested parties and groups rallied behind this 1949 federal legislation, each with their own vested interests. Mayors saw a tool to increase tax revenues, social welfare leaders hoped to clear dangerous slums, while low-income housing advocates hoped the legislation would increase the stock of affordable, decent dwellings in central 20 cities. Although intended to focus on residential slum clearance, the Title I legislation was fairly ambiguous, and in fact, it did not specifically mandate the construction of low- or moderate-income housing (Teaford 2000). This lack of specificity relating to low- income housing (especially relating to the poor residents that were displaced) would haunt the program throughout its life. The need for legislation to assist in the redevelopment of deteriorating urban centers was, however, a real necessity in many large US. cities. The economic difficulty of redevelopment and revitalization in already built-up areas became one of the largest rationales for the federal urban renewal program. Builders and developers faced two difficulties when attempting a construction project. First to build on land that already contains a structure, the builder must cover the costs of the land itself, the demolition, as well as any compensation to its previous owners. Also, in urban areas land ownership is typically highly fragmented, which makes property acquisition for a large project difficult and expensive (Davis 1966). The Housing Act of 1949 established Local Public Agencies (LPAs) with the power of eminent domain to acquire the necessary sites for redevelopment or renewal. Sites could then be cleared and sold or leased to private developers. This particular aspect of urban renewal drew large amounts of criticism as developers and builders were subsidized in the purchase and development of residential and commercial sites (Anderson 1964). The redevelopment by private developers usually resulted in the new housing being much higher in price and therefore out of the range of the original residents cleared from the slums (Weaver 1955). Some have argued that many cities gave low-income housing a low priority and instead used urban renewal funds to clear land for the expansion of their central business districts, to remove Blacks 21 or other minorities from their jurisdiction, and/or to provide middle- and upper-income housing (Marcuse 1978, Keating 2000). Displacement Residents of renewal sites were forcibly displaced without adequate compensation or replacement housing. Not only did they lose their property and housing (in the case of owners) but social networks and communities were also destroyed in the displacement process. Research had estimated that households displaced by federal urban renewal suffered an average uncompensated loss amounting to 20-30% of one year’s income (Downs 1970). With little to no compensation or support for relocation, many poor families and individuals could only settle in other poor areas. Early research concluded that by 1961, approximately 60% of those displaced by urban renewal simply ended up living in other slums (Gans 1967). Replacement housing requirements were stipulated in the original 1949 legislation but these fell far short of the demands of the high numbers of displaced residents (Keating 2000). In the end, urban renewal made the housing crisis worse in many cities, as developers were generally not building as many housing units as they were destroying (Macionis 2001). This created more severe overcrowding conditions, particularly in the slums, and higher housing costs for the poor (Hartman 1964). Accurate figures of the number of people displaced from urban renewal projects are difficult to estimate. Through the mid 19603 it was reported that 85,154 families had been displaced/relocated fiom urban renewal properties (Urban Renewal Administration 1961, Fisher 1962). In 1967 it was estimated that federally funded renewal and highway 22 programs would displace up to 100,000 families and 15,000 businesses per year, most of which were in urban areas (Frieden 1967). Use of Urban Renewal in Ethnic and Racial Areas In addition to the difficulties of relocation, another controversial aspect of federal urban renewal programs was the fact that most of the clearance zones were located in ethnic minority neighborhoods (Jones 2004). “We called it ‘urban move-the-brothers’” said a resident of Charleston in reference to the urban renewal programs that destroyed many Black communities in Charleston alone. “Black people were forced to move and they weren’t given anywhere to go. A way of life was destroyed” (Firm 2002, p. 1). This was seen in numerous examples throughout the US. In the early 19503, in the process of redevelopment, Detroit focused on new plans for the Gratiot Park area. This area east of the central business district was largely low- income, nearly all-Black, and contained poor-quality housing. Similar to other urban renewal projects, the goal was to clear the slums and replace them with higher quality housing that would hopefully attract and retain middle- and upper-income residents. Nearly 1,900 poor, African-American families were displaced in this process of redevelopment, with over half relocating into surrounding slums with often worse conditions than the original residences (Thomas 1997). Although considered partially a success because of its unique architecture, design, and somewhat racially-integrated housing (although not integrated by class), the project renamed Lafayette Park failed to provide adequate relocation and replacement housing for the majority of the displaced residents. 23 In the late 19503, Boston experienced a similar situation with its West End project, which bordered the city’s central business district. The city eyed this low-rent, low-rise tenement, Italian community for redevelopment, with many local officials claiming that it was a downtown eyesore (Teaford 2000). Not feeling their neighborhoods were slums, local Italians of the West End angrily protested what they felt was an opportunity for private interests looking for profits to team with public officials to steal their homes (Teaford 1990). The demolition and leveling of the 41 acre site began in 1958 and continued for five years, displacing 9,000 residents. Land bought and condemned (with federal assistance) for $7.40 per square foot, was revalued at $1.40 per square foot and leased to private developers (McQuade 1966). The cleared land was used for the development of high-rent, hi gh-rise apartments that were largely unaffordable to the original displaced residents of the area. The problems of displacement associated with urban renewal received added attention through the late 19503 and early 19603 as projects such as those in Detroit and Boston were repeated in cities across the nation, including in Chicago, St. Louis, and New York City. The focus on some of the poorest, and already marginalized residents made the issues of relocation even more difficult, as these citizens were already disadvantaged and largely powerless in their struggle to maintain their communities. With the concentration of urban renewal projects in areas largely inhabited by non-Whites, this only further increased the concentration of minorities in other slums and public housing projects. Legal discrimination and segregation, until Civil Rights legislation of 1964, further complicated the difficulties of relocation of Blacks as housing options were very limited. Some supporters of urban renewal felt the housing issues would be solved by the process 24 known as ‘filtering down’ or ‘upgrading’ in which any increase in the supply of housing would ease the pressure for housing in all segments of the marketz. The difficulty was that at the time of legal residential segregation, a free competitive market did not exist. The housing market was not freely open to all citizens, and specifically non—Whites (Weaver 1955). By the official end of the federal urban renewal program in 1974, many neighborhoods had been destroyed in the process of slum clearance and redevelopment, displacing hundreds of thousands of residents and often making their situations even worse. The federal government continues to remain highly involved in aspects of housing across the nation. Legislation has attempted to downsize the role of the federal government in public housing and shift the responsibility towards the private sector. The 1974 Housing and Community Development Act (HCDA) streamlined earlier legislation to create the Section 8 program, that provides rental subsidies to public housing tenants to move into private-sector housing (Bratt 1986). This fit with the Nixon Administration’s intent to “downsize substantially, if not eliminate, public housing” (Hackworth 2003, p. 536). During this period fewer funds were made available for the construction and maintenance of public housing units while increasing the number of approvals for public housing demolitions. The Section 8 voucher program, and programs to encourage home ownership, led to a further decline in federal government involvement in physically providing public housing (Lowry 1987). The federal HOPE VI program, established in 1993, sought to reduce the concentration of low—income families through the redevelopment of sites, and particularly 2 For a thorough analysis of the economics of urban housing markets see Rothenberg 1991. 25 troubled projects (Wyly 1999, US. Department of Housing & Urban Development 2005). This important housing legislation also eliminated the previous ‘one-for-one’ housing replacement requirement of public housing units. This meant that local public housing authorities (PHA) could demolish public housing units without replacing them, placing an increased emphasis on public housing demolition (Wyly I999, powell 2002). From 1993 through 2002 over $4.3 billion was allocated to PHAs to demolish the most devalorized housing units. Research also indicates that of the nearly 70,000 units demolished by the HOPE VI program, as of 2001 , nearly 68.4% of the units built in their place were “reserved for tenants making a higher income” (Hackworth 2003, p. 536). Those displaced by such projects often receive the Section 8 housing vouchers for relocation, but little to no public relocation assistance. Landlords are also not required to accept the Section 8 housing vouchers. The vast majority of those displaced end up in other areas of concentrated poverty facing similar socioeconomic difficulties (powell 2002, Hackworth 2003). Locally-Driven Urban Renewal Tactics Houston never had a formal federal urban renewal program because of the city’s refusal to adopt zoning (Teaford 2000). In spite of this, Houston has engaged, and continues to engage, in land clearance programs driven by the local government. Several land clearance programs now operate in the city under the pretense of economic development through the use of eminent domain. Eminent domain was designed to support government in the acquisition of the land necessary for public projects (such as highways) with the provision of compensation for the land owners. The original use of 26 eminent domain had largely been shaped by the Berman v. Parker ruling of 1954, in which the court ruled that the compulsory transfer of families’ and landlords’ property to developers in an urban renewal project in Washington was allowable under the constitution because it represented slum clearance. The fifth amendment of the US. Constitution protects that compensation must be received for a taking of private property for ‘public use’. The notion of ‘public use’, however, is what has come into question, since some communities have expanded the scope of eminent domain to more questionable applications. ‘Public use’ has been now expanded to include ‘public purpose’ or even ‘public benefit’, such as local economic development projects (Shlaes 2002). A well-known example includes the clearing of 465 acres of the working-class, ethnic neighborhood of Poletown in Detroit for the expansion of a General Motors manufacturing facility in the early 19803. Causing the displacement of 3,438 residents, the plant was to bring over 6,000 direct jobs and many other spin-off industries to the area (Thomas 1997). The area to be cleared was not considered a slum (as the usual use of eminent domain required), but the project was defended as producing public benefits such as direct and indirect employment, as upheld in Poletown Neighborhood Council v. City of Detroit in 1981 (Darden 1987). Numerous smaller-scale examples of land clearance in the name of economic development can be seen throughout the recent past. For instance, in December 2002 the city of Riviera Beach, Florida approved the development of “Harbor Village” by commercial yachting, shipping and tourism companies, causing the razing of approximately 1,000 homes (Shlaes 2002). 27 Similarly, in the early 19903, the city of Atlanta used federal and city funds to demolish two historic public housing projects in preparation for the 1996 Summer Olympics. In a city haunted by the forced removal of 68,000 people during the urban renewal initiatives of the 19603, residents were once again forced from these public housing projects with only half of the residents receiving minimal relocation assistance. Some residents were lucky enough to receive Section 8 vouchers, providing subsidized rent but for a limited period (Rutheiser 1997). The redeveloped land was used for a upper-income residential complex with support from elected and business officials (Keating 2000). Other cities have more recently been questioned in their use of eminent domain for economic development and the public benefits that are actually produced. Some consider this taking of property for economic development as an abuse of eminent domain. A legal case regarding the taking of private property for redevelopment and its questionable public benefit in New London, Connecticut reached the Supreme Court in 2005 (Kelo vs. City of New London). Public officials in New London were frank with the fact that they were attempting to attract hi gher-income professionals with the new developments in the blighted area (Peterson 2005). The highest court in the nation upheld the use of eminent domain not only for public projects, such as roads, but also for private developments that benefit the community economically. Some fear this ruling will leave the door open for further abuses of eminent domain and result in the disregard and displacement of original residents in areas considered to have economic potential and an advantageous location, all in the name of economic development. 28 As the Houston case study will illustrate, cities and state governments interested in inner city revitalization can and may use similar tactics as those used during the federal urban renewal programs of the 19503 and 19603. Focusing on economic development, the projects are often not as large or do not displace as many residents as the large scale federal urban renewal projects, but these types of physical and social upgrading processes still continue to impact communities, neighborhoods, and the original residents. Private-Sector ‘Block-busting’ Prior to the Civil Rights legislation of the mid-19603, racial segregation had made the process of finding decent affordable housing difficult for most Blacks in the US. In response to this demand for decent housing, real estate agents during the 19503 and 19603 would prey on the racial fears of Whites by convincing residents of the anticipated arrival of Blacks to their neighborhood. Whites feared that this would increase crime and lower property value in their neighborhoods, selling their property prematurely and potentially at lower than market value prices (Orser 1994). Blockbusting came to describe this, now illegal, process by which real estate agents induced homeowners to sell their properties by making representations regarding the entry, or prospective entry, of persons of a particular race or national origin into the neighborhood (Northwestern University Law Review 1978, Mehlhom 1999). These real estate speculators would produce large profits from racial turnover in the real estate market by encouraging the already-prevalent racism of the era and buying homes from urban Whites at below-market prices only to resell them at inflated prices to Blacks seeking better housing then the current ghettos in which many were segregated. 29 In addition to this commonly accepted definition of blockbusting, there are other examples where the private sector has been involved in breaking up neighborhood blocks for development. In Toronto, developers have been able to buy up and demolish inner- city homes thereby “destroying the fabric and social cohesion” of the neighborhoods (Ryerson Polytechnical Institute 1989, p. 4-4). To acquire pr0perty for private development, local developers have sometimes used questionable practices in order to convince owners to sell. Similar to racial blockbusting, many of these practices attempt to take advantage of the economic, racial, or ethnic position of current residents. Many homeowners in lower-income areas do not necessarily realize the full potential of their property and sell at a low price to the first developer who applies pressure. Cases have also existed where developers have been able to convince landowners that the government will eventually take their property by eminent domain and thereby encourage a quick sale at a low price. Developers have also been known to actively try and make an area appear worse to lower land values and encourage residents of the neighborhood to sell their properties. Buying up surrounding property and boarding it up, or tearing down structures and not maintaining vacant land, are just two examples of this type of blockbusting. In addition, renters face unique threats since they are vulnerable to the decisions of their landlord who is often willing to evict residents in order to sell their property once the potential value of their property is understood. Areas that contain predominately renters and whose geographic location is attractive because of proximate amenities are particularly prone to private-sector ‘block-busting’ because of the lack of power of renters and the desire by landlords to maximize profits on the value of their land. Similar 30 to the racial blockbusting of the 19503 and 19603, this new private sector ‘block-busting’ has torn apart communities, has generated losses to homeowners, and has enabled developers to realize significant profits. Gentrification Beginning in the early- to mid-19703, several US. inner cities that had experienced economic downturns and large population losses began to realize the revival and redevelopment of some neighborhoods. One part of this ‘rebirth’ process included the movement of some residents ‘back’ to the city, often from suburban locations (Mullins 1982, Palen 1984, Ley 1986, Rothenberg I991, Huu Phe 2000). These residents were characteristically younger, middle-to-upper income earners, and professionals that were searching for different amenities than those offered by the suburbs. Some have argued that the land in these downtowns had become inexpensive and therefore attractive to investors, while others maintain that these young professionals were, and are, searching for a certain kind of urban lifestyle, with unique cultural resources that the suburbs are often lacking (Sumka 1979a, Smith 1979b, Hamnett 1991). A serious consequence of this movement back to the city by moderate-income earners is the displacement of many of the original residents that occupied the inexpensive downtown housing (Atkinson 2000). The process of lower-income, working class properties being purchased, occupied, and renovated by upper-income professionals, produces substantial physical and social changes to the affected neighborhoods (powell 2002). This process, known as gentrification, was originally termed by Ruth Glass in 1964 to describe the ‘invasion’ of working class quarters of London by the middle class (Glass 1964). 31 Gentrification describes the actual physical improvements of an existing (often older) structure. Causes of Gentrification The causes of gentrification are varied and widely debated in the literature, with an important question being, ‘what actually causes this movement of upper-income residents to particular lower-income neighborhoods?’ As discussed in the opening of this chapter, the literature focuses on two main explanations of this gentrification process. The rent gap theory is based upon the idea that values of inner-city property and housing must fall to certain low levels to make them appear attractive and economically viable to upper-income renovators. This explanation, while offering considerable insight, is an economically deterministic model that does not account for underlying political, class, and racial issues within a city. One issue, as the Houston case study will illustrate, is the large level of local government involvement in the process of redevelopment. The extensive use of public subsidies and investment by local officials in targeted neighborhoods can in fact encourage gentrification in these parts of a city. In certain deteriorated areas in which land values have not quite fallen low enough to encourage redevelopment by private developers or upper-income gentrifiers, local officials might offer subsidies to provide the impetus for redevelopment. These subsidies can take the form of cash incentives, physical infrastructure improvements, and tax breaks on new investments. The second explanation of gentrification widely discussed in the literature focuses on the production of gentrifiers themselves and their associated cultural and consumption 32 orientations. The premise behind this explanation of gentrification is that without the high demand for inner-city locations because of numerous attractive characteristics of the areas (including close proximity to employment opportunities, cultural and entertainment areas, and unique housing styles) the process of gentrification would not exist regardless of the local housing economics associated with the rent gap theory. It is also argued that the cause of gentrification is a combination of the demand and supply side explanations, since they complement each other (Hamnett 1991). It has been realized that production and consumption are both crucial to a comprehensive explanation of gentrification. Hamnett (1991) discusses several shortcomings of these two theories. The demand side explanations, as exemplified by Ley (1986), largely take for granted the existence of potential areas suitable for gentrification while the supply side explanations, as exemplified by Smith (Smith 1979a, Smith and LeFaivre 1984), take for granted the existence of a supply of potential gentrifiers. Based upon these two viewpoints, Hamnett identifies four requirements for gentrification to occur. Three of them are concerned with the supply side elements of the equation and include the supply of suitable areas for gentrification, the supply of potential gentrifiers, and the existence of an attractive central city environment. The fourth requirement deals with the preference for inner-city living that is desired by a certain group of the service class. Hamnett provides a table displaying the range of possible outcomes (Table 2.1). 33 Rent Gap Exists No Rent Gap Exists No Potential Gentrifiers No Gentrification No Gentrification Supply of Potential Gentrifiers Exists No Inner City Demand No Gentrification No Gentrification Inner City Preference by Gentrification Gentrification? a section of the ‘new class’ Source: Hamnett 1991 Table 2.1 — Conditions for gentrification schema He concludes that with a growth in the service class job opportunities downtown and increased disposable income by many dual-career childless couples, the demand for central city living (with various entertainment and cultural activities) becomes key to the gentrification of an area. Hamnett argues that gentrification would be unlikely to occur without this demand for central city living, however large the supply of potential gentrifiers and however large the rent gap. These explanations are all important as they are all seen to some degree in the context of gentrification in Houston. The overall metropolitan housing market also plays an important role in producing gentrification. As demand for inner-city housing increases with the growth of the world-wide service economy and downtown employment, certain housing markets, such as San Francisco, Chicago, and New York City, have become very constrained and experience a rise in housing prices. Experiences such as these of a tight housing market also force hi gher-income people to seek homes in locations where they formerly would not have lived (powell 2002). These changes in demand and supply will eventually constitute changes in demographic and physical attributes of neighborhoods as the housing market adjusts to new influences. One of the most important results of these 34 changes is the eventual physical displacement of pre-gentrification, often lower-income residents (Galster 2003). Characteristics of Neighborhoods Experiencing Gentrification Neighborhoods that are prone to possible gentrification hold several characteristics in common. As discussed in relation to Smith’s rent gap theory, these neighborhoods have experienced severe disinvestment of private, and often public, capital causing the physical decline of the neighborhood and housing structures. The value of the structures and their property value have fallen to such lows that reinvestment by outside developers appears profitable (Smith 1979b). In order to encourage the demand for refurbishment of these structures, there are generally unique characteristics in these neighborhoods that make these locations attractive. These characteristics include such attractions as an advantageous location near downtown, historically significant and unique housing, cultural areas (including alternative lifestyle areas), and aesthetically pleasing landscapes (Rose 1984, Ley 1986, Hamnett 1991). The original (pre-gentrification) residents of these neighborhoods are predominately lower-income and of working class or ‘blue-collar’ occupations. The households are fairly large in size (larger than the city’s median) with a large number of female-headed households. There is a larger share of renters than owners in the neighborhood, and the landlords may often be characterized as absentee, which often leads to increased decline in the physical structures and disinvestment. Education levels of residents are also lower, with high school and college graduation rates often lower than the city average. As can be expected from the above described characteristics, these 35 residents have per capita and household incomes that are low compared to other neighborhoods throughout the city (Ley 1986, Atkinson 2000). Also, in some cities these neighborhoods may have a large percentage of its residents that are of a certain minority or ethnic group. This race and ethnicity factor is very important in revitalization and redevelopment initiatives in the US, including in the case of Houston. The multiple dimensions of gentrification have been analyzed thoroughly in the literature. Numerous case studies have also been documented in many locations throughout the world, including Chicago (Betancur 2002, Perez 2002), Portland (Howsley 2003), Philadelphia (Smith 1979a, Beauregard 1990), Washington DC. (Williams 2002), New York City (Hackworth 2002, Freeman and Braconi 2004), and various locations in Canada (Ley 1986, F ilion 1991), New Zealand, Australia (Engels 1999), and Western Europe (Pooley 1985, Bailey and Robertson 1997, Kleinhans 2003). Displacement A serious result of gentrification is the displacement of many of the original residents of these locations that are being occupied by upper-income gentrifiers. This displacement most often occurs in a complex scenario. As some would theorize, as the attractiveness of an area increases (either through falling land values, increasing character and culture of an area, and/or proximity to downtown employment centers) many landowners and landlords attempt to evict their current renters (who are often lower- income) as they see a more profitable use for their land in the form of redeveloped condominiums, town homes, or other uses attracting a much higher land rent (Atkinson 2000). If the original residents are instead owners of their property they face other 36 struggles as both public and private interests might be involved in attempting to acquire their land. The recent Houston experience will illustrate these cases in detail. If approached by developers, landowners may sell the property at below market value, either because they do not realize the full potential of their land or because they do not understand the sale process and are manipulated to sell prematurely. A similar situation may also occur when an increase in the quality and character of a neighborhood causes the taxes of that surrounding area to become too expensive for the current residents and they again become priced out of the neighborhood (Lang 1982). An equally devastating situation occurs if local officials want to remove the existing residents from these locations. All of these situations threaten the livelihood of lower-income, inner city residents, their neighborhoods, and the community networks that have been developed. Similar to those affected by urban renewal, those displaced by gentrification often end up paying more in rent, they do not receive any financial assistance in moving, and they encounter difficulty connecting with their new neighborhood (Smith and LeFaivre 1984, Filion 1991). The issue of displacement was once a crucial focal point of gentrification research, as seen in the works of Henig (1 980), Lee and Hodge (Lee and Hodge 1984), and LeGates and Hartman (LeGates and Hartman 1986). The numerous aspects of this displacement research included studies of how residents became physically displaced, the effect of public policy on gentrification (including the protection of residents), and where the displaced would move to, and how successfully they could relocate. In the more recent research, some feel that studies on gentrification have moved away from more critical accounts of gentrification to more centrist accounts, including investigations of 37 the practices of middle-class gentrifiers and focuses on the definition and meaning of the term gentrification (Slater 2004). The call has been reinitiated to critically analyze the social changes of physical redevelopment and attempt to represent the less powerful residents of affected areas. Commentary on Physical and Social Upgrading Based on the description of the characteristics of areas prone to redevelopment, and the traits of the area’s current and prospective residents, it is possible to summarize the physical and socioeconomic changes that these redeveloping neighborhoods will experience. First, the economic status of the area increases as many of the lower-income residents are replaced by upper-income earners. The household size and median age of the residents decrease. The area experiences a rise in educational attainment levels, which is also related to the increase in income. Lastly there is an increase in the percentage of residents who are employed in ‘white-collar’, professional occupations. All of these changes concerning social and economic characteristics result from the replacement of the original residents with new upper-income residents. The area of redevelopment also experiences physical changes exemplified by changes in the housing stock. First, many of the rental units become converted to owner- occupied housing units. Because of the refurbishment and reinvestment in the dwellings, the quality of the housing structures increases, as does the value. While gentrification indicates the refurbishment of older housing and their occupation by upper-income earners, redevelopment, as indicated by urban renewal and private-sector ‘block-busting’, has meant the clearing of land for the construction of new upscale housing units. 38 As the Houston experience will show, the differing housing and socioeconomic characteristics in the neighborhoods being redeveloped interact to produce varied combinations of physical and social upgrading. For instance, in Freedmen’s Town, a neighborhood west of downtown that is the focus of this research, the very poor quality of the housing stock encouraged the active displacement of original residents by private developers using various private-sector ‘block-busting’ techniques. This is in contrast to the refirrbishment of the well-maintained housing stock seen in The Heights area, northwest of downtown. In addition, because of Freedmen’s Town’s large percentage African—American population, the local government became involved in the acquisition of property for development likely because of the politically sensitive nature of displacing such a large minority population. In the context of Houston, the rent gap theory would speculate that based on the current depressed land and housing values of inner-city Houston, extensive revitalization and ‘redevelopment’ would occur around Houston’s downtown. This is also supported by the increase of white-collar, professional employment opportunities in Houston’s central business district, producing a strong demand for upscale near-downtown housing. However, the rent gap theory fails to take into account the influence of local government involvement in the development process through public investments and subsidies. AS this research will reveal, in the case of Houston, developers and gentrifiers are heavily influenced and supported by subsidies and tax incentives that have been facilitating the redevelopment and revitalization of Houston’s inner city. The Houston downtown revitalization experience will show the complexities involved in urban revitalization 39 projects and the various public and private redevelopment tools used to achieve physical and social upgrading. From the perspective of local public officials, local investors, and developers, 3 central issue associated with urban revitalization is centered on the changes in the community and city evident with tax revenue increases, increased spending in downtown neighborhoods, and the improved image of the revitalized core and the city itself (Vigdor 2002). It is for these reasons that many government officials, businesses, and surrounding residents seek to encourage physical and social upgrading. The often overlooked aspect of these neighborhood improvements is the threat of displacement of existing residents, as they may not be able to live in their changing community and may become overlooked in the rush to improve struggling neighborhoods. 40 3 HOUSTON Introduction In the city of Houston, local leaders and residents have been traditionally known for their support of the laissez-faire approach to local government, with the absence of formal zoning in the city being an illustration of this local public management style. The city leaders contend that this management strategy has been successful in guiding the development of the city from a small settlement on a swampy bayou to the fourth largest city in the nation and sixth largest port in the world. While the growth and economic development of Houston over the last century has been strongly dependent on petroleum and related products, since the recession of the 19803 there has been a recognizable shift within the city’s development strategy, as local leaders have directed considerable efforts and resources toward the development of a hi gh-tech and specialized service economy. Into the 21St century, it is hoped that this new economic direction will bring prestige and international recognition to the city. Over the last three decades, many US. cities have experienced similar economic shifts, to varying degrees of success, in a period of US. history commonly referred to as ‘de-industrialization’. The shift from manufacturing to services, however, has also involved new requirements in the urban built environment. To attract corporate headquarters, specialized services, tourism, and ‘white-collar’ professionals that support this new economy, strong central cities and high-quality urban environments have been considered a necessary precondition (Vojnovic 2003b). The initiatives to revitalize city 41 centers also have other advantages, such as an improved image of downtown and increased inner-city land values. However, as chapters four and five will illustrate, the idea of a ‘successful’ city to many city officials, business leaders, and residents of Houston often excludes large segments of the population, and more specifically, involves the removal and the displacement of many original low-income residents from their traditional central city neighborhoods. This has been especially seen in the physical and social upgrading of the historic Freedmen’s Town area directly west of the downtown and the resulting displacement of the area’s largely Afiican-American population. Houston’s focus on downtown revitalization has included several large-scale projects, including a new 1i ght-rail line, new sports stadiums, streetscape improvements, and numerous upscale residential developments. An important component of this revitalization has been the large-scale public involvement in the planning, implementation, and financing of many of these downtown projects. This chapter will provide a brief introduction into the historical development of Houston and also explore the nature of the recent changes in the city’s economic and urban development directions. This will provide a wider context to the changes that have been occurring in the city which have led to the physical and social upgrading of Freedmen’s Town. Brief History and Development of Houston John and Augustus Allen set up the town of Houston near the junction of the White Oak and Buffalo Bayous in April 1836. The brothers had purchased the 2,000 acre site for about $5,000 and named the newly planned town after the hero of the battle of 42 San Jacinto3, in hopes of persuading the new government of Texas to locate their capital in their new town (Federal Works Agency 1942, Miller 1982). By the spring of 1837 the persuasive John Allen had convinced the first Congress of the Republic of Texas to place their temporary capital at the then-unbuilt city of Houston and thereby helped to insure the success of the town. By 1839 Houston had a population of 2,073 people (Johnston 1991). About twenty years later, in 1860, the population of Houston was 4,845 with 22.1% of the population consisting of slaves. By 1870, Houston’s population had grown by over fifty percent, to 9,382 people, and the city’s black population made-up nearly 40%. This rate of growth continued for several decades (Table 3.1) as the city of Houston increased in size and prominence in the state and nation. Throughout the nineteenth century, the seaport of Galveston was the most successful city in Texas until a devastating hurricane leveled the town killing between 6,000 and 8,000 people in 1900. This tragedy helped Houston to increase its economic power and size as it became the leader in the Texas economy and one of the largest cities in the nation. The discovery of oil reserves east of Houston just months after the Galveston hurricane also facilitated the city’s new prominence. Into the twentieth century, with increased personal automobile use and a lack of zoning, developments in Houston began to leapfrog over each other searching for cheaper land. Fearing it may be ringed by incorporated suburbs blocking future growth, Houston chose to expand its boundaries from 72 square miles in 1930 to nearly 447 square miles by 1967 (McComb 1969). This annexation process has continued to the present (although 3 It was this battle of San Jacinto that officially won Texas its independence from Mexico. 43 at a very small scale by the late 19903) and has brought a huge price tag to the city as it expands public services to outlying areas. City of Houston Population Growth Free Colored Slaves Total Total Total Population White Black Md” Females Males Females 1850 2,396 1,863 533 1 5 223 304 1860 4,845 3,768 1 .077 1 7 502 567 1870 9,382 5.691 3,691 181 Ward 738 488 250 2nd Ward 1,638 1,164 474 3rd Ward 2,812 1,737 1,075 4th Ward 3,055 1,741 1,314 51h Ward 1,139 561 578 1880 16,513 10,026 6,479 1890 27,557 17,178 10,370 1 st Ward 1,980 1,203 777 2nd Ward 3.341 2.079 1.260 3rd Ward 7.366 4,705 2.658 4th Ward 8,761 5,079 3.678 5th Ward 6,109 4,112 1.997 1900 44,633 29,979 14,608 1 st Ward 3,475 2nd Ward 3.947 3rd Ward 13,611 4th Ward 9.625 5th Ward 9,577 6th Ward 4,398 1910 78,800 54,832 23,929 ' 131 Ward 6.954 2nd Ward 7,572 3rd Ward 24,705 4th Ward 16,772 5th Ward 16,854 6th Ward 5.943 1920 138,276 104,268 33,960 1930 292,352 216,687 63,337 1940 384,514 297,959 86,302 1950 596,1 63 470,503 124,766 1960 938,219 720,547 215,037 1970 1,232,802 904,889 316,551 Hispanic 1980 1,595,138 978.334 440,346 281,331 1990 1,631,766 662,766 448,148 450,556 2000 1,953,631 601,851 487,851 730,865 2004 (estimate) 2,012,626 Table 3.1 - Population growth for the City of Houston (Source: US Census Bureau) 44 As of 2000, the city of Houston consisted of just under two million people (1,953,631) and 618 square miles (City of Houston 2003b). In terms of the city’s ethnic composition, in the 2000 US. Census, Hispanics were the ethnic majority at 37.4% of the city’s population. In 2000 the white and black populations were 30.8% and 25% of the city’s total population respectively (Table 3.2) (US. Census Bureau 2005). City of Houston - 2000 618 Square Miles 3,161 persons per square miles % of Total Population Total Population 1,953,631 White 601,851 30.81% Black 487,851 24.97% Hispanic 730,865 37.41% Asian 106,620 5.46% Housing Total Housing Units 782,009 Occupied Units 91.8% Vacant Units 8.2% Owner-Occupied Units 45.8% Renter-Occupied Units 54.2% Median Housing Value $79,300 Median Household Income $36,616 Median Family Income $40,443 Per Capita Income $20,101 % of Individuals Below Povery Level 19.2 Educaflon % of Persons 25+ with High School Diploma 70.4% % of Persons 25+ with College Defie 30.9% Table 3.2 — Facts and Figures — City of Houston 2000 (Source: City of Houston 2003a) 45 Economy As noted by David McComb (1969), a Houston historian, the early economy of Houston included the businesses associated with the capital (for the few years it occupied Houston), trade (because of the city’s strategic location), and some manufacturing (such as saw mills and brick factories). The importance of trade in the area increased over time, initially linked to increases in cotton production in the Brazos Valley. Cotton traveled from surrounding plantations, through Houston, en route to the seaport of Galveston. Even as early as the 18403, leaders of Houston began investing in ways to improve the movement of ships and goods down the Buffalo Bayou by clearing obstacles and dredging the bayou. These improvements in water transportation continued over the years and eventually led to the development of the Houston Shipping Channel, which would in time make Houston one of the largest ports in the world. By the 18703, Houston was a well—established commercial town with a rail network and a useful bayou. In the late 18803, the economy of Houston was still dependent upon products extracted from the surrounding areas, including cotton and lumber. At the very beginning of the twentieth century oil began to be discovered in large quantities in southeast Texas which quickly put Houston on its way to becoming the center for oil refining and shipments as well as oil field equipment manufacturing (Miller 1982). Within the next several decades, Houston found itself in the middle of a region with ever-increasing oil discoveries, which forever changed the face of the city. This also brought about other needs in the city’s infrastructure, such as an increasing need for a larger port to handle the shipments of oil. Local petroleum-supporting industries, 46 including refineries and petroleum research companies, also quickly developed along the Houston shipping channel. With a strong market and some assistance from friends in Washington DC, Houston was able to survive the Great Depression with slightly less difficulty than other major US. cities (Federal Works Agency 1942, McComb 1969). By the beginning of World War H the city’s economy was gearing up for wartime production, which was especially dependent upon petroleum and petroleum-based products. Large federal government wartime contracts helped Houston to finish the war with a thriving city economy whose success carried into the 19503. With an increase in population of 54% and bank deposits by 282% from 1940 to 1950, Houston was the fastest growing city per capita in the country in 1948 (McComb 1969). In the post-World War 11 period, there were a number of other investments that also played an important role in shaping the development of the city in the latter-20th century. Two of the most notable are the Texas Medical Center and the Johnson Space Center. The Texas Medical Center was established in the early 19403 with initial money from the state legislature for a cancer program. Additional medical facilities were built after the MD. Anderson foundation donated money and land to expand the Medical Center. The Texas Medical Center has continued to grow into a world-class healthcare facility that brings continued attention and prestige to the city. In mid-1961, Houston was able to acquire the National Aeronautics and Space Administration’s (NASA) new $60 million Manned Spacecraft Center. By 1966, not only was the center employing 4,854 people with a payroll of over $50 million, but it was also producing nearly 65 jobs externally in supporting industries for every 100 it had created 47 internally (McComb 1969). Renamed the Johnson Space Center, it now employs 18,436 people and has an estimated yearly economic impact of $4 billion (City of Houston 2003b). In the more current context, although largelyvdominated by energy industries, Houston’s economy has been diversifying over the last fifteen years. The Texas Medical Center is one of the largest medical complexes in the world, serving 5.4 million patients each year, employing over 61,000 people, and producing an indirect economic impact of over $13 billion annually (City of Houston 2003b). After the implementation of recent trade liberalization policies both globally and in North America, and given its links to Mexico, Houston’s role as a trading center has continued to increase. This has been evident with the expansion of the city’s three airports and the continual improvements to the shipping port. As of 2003 the port of Houston was the sixth largest port in the world in total cargo volume (American Association of Port Authorities .2005). Within the US. in 2003, Houston was the second largest port in the nation in total trade (by cargo volume) and first in total foreign trade (imports and exports by cargo volume) (American Association of Port Authorities 2005). The Port of Houston has an impact of $9.6 billon dollars on the local economy, producing 75,487 jobs directly and 129,033 indirectly (City of Houston 2003b). Into the twenty-first century, the city has continued its economic diversification, with considerable interest in attracting corporate headquarters and developing its specialized services sector, particularly finance. With the emergence of tourism as one of the world’s leading industries, and with regional success stories provided by San Antonio, Houston has also been making extensive investments in promoting local 48 tourism. The spirit of constant growth and diversification has helped the city maintain its economic advantage as it strives to become a world-class city in the new service economy. The Laissez-Faire City The city of Houston is perhaps best known as the archetypical laissez-faire city, with minimal government involvement in local economic, social, environmental, and planning issues. This is seen in the city’s continual rejection of zoning and the fact that the city maintains the lowest taxes in a comparison of major US. cities (Vojnovic 2003b). While some will argue that this laissez-faire nature has made the region as successful as it is with many residents prospering, others will argue that this lack of government involvement has produced increased hardships for many local groups (Feagin 1988). Throughout its history, the city has struggled with establishing a strong planning department and city-wide zoning. The city’s first serious attempts at a comprehensive plan did not emerge until the late 19803. Attempts at zoning have failed numerous times in the history of the city, with the largest conflicts occurring in the late 19203 to early 19303, and soundly defeated by voters in 1938, 1947, 1962, late 19803, and the early 19903. The most recent vote in 1993 was narrowly defeated with 52% against and 48% for the zoning measure. Houston’s real estate interests have proved to be a very powerful coalition against zoning. They view themselves as protectors of real estate interests in the city and have continually organized large-scale oppositions to zoning votes. While it may be argued that this freedom of development has brought economic prosperity to the city, 49 it has also been responsible for extensive social costs to many residents. The lack of zoning and land use planning have allowed the development of various hazardous and polluting land uses (such as refineries and sewage treatment plants) disproportionately located in poor, minority neighborhoods. The noxious facilities have generated severe social and health costs to these disadvantaged segments of the population, further marginalizing these Houston residents (Bullard 1987, 1990, Been 1994, Bullard 1996, Sonoma Technology 1999, Clean Air Task Force 2000, City of Houston 20033). In an attempt to attract development and maintain a favorable business climate, city officials argue that the free enterprise environment is maintained by allowing markets to operate with minimal government involvement, and that this management approach, in turn, is reflected in low local taxes. This has meant a severe reduction in, or lack of, services provided to residents, with a particular disinterest maintained for social services. This low tax environment has also meant a minimal provision of urban infrastructure to local residents. Some of the worst streets, police services, and oldest water and sewer lines are located in minority black and Hispanic neighborhoods (Bullard 1987, F eagin 1988). In comparison to other major US. cities, Houston continually spends less per capita on the provision of services, especially social services, such as housing and public welfare programs (Thomas 1991, Vojnovic 2003b). For many years the city has been upheld as a major example of how unrestrained free enterprise works better than state planning in creating a healthy and prosperous city. What often goes unnoticed and un-discussed, however, are the high social costs associated with this laissez-faire style of governance. 50 Growth Coalitions Since its early years, business leaders have been very active in promoting and developing Houston. They have looked for ways to make the city more economically attractive to outside business interests and have maintained close connections with powerful interests in the state capital and Washington DC. Historically, there have been many business leaders that have had considerable impact on influencing the development and growth direction of Houston. Perhaps, one of the most famous and influential of these leaders was Jesse H. Jones, who would help guide development of the city for nearly half a century. He amassed his fortune in the late 18803 in the lumber and railroad economy of east Texas. Jones would eventually find a place in Washington DC. lobbying for Houston, helping the city survive the Great Depression, collecting funds to improve the Houston shipping channel, and developing the city’s prominence as a global center in petroleum production and related petroleum products. Historically, coalitions of business leaders have worked together and with the local government to guide the development of Houston, to recruit industries and businesses into the city, and to ensure the city’s economic success. For instance, during the early 19303 when several Houston banks appeared headed for bankruptcy, Jones and leaders of other major banking institutions in Houston teamed together to bail out the failing Houston banks, and helped to ensure the city’s survival through the Great Depression (McComb 1969). Another example of this private and public sector collaboration is evident with the eventual construction of the city’s newest airport. In 1954, voters turned down a new airport. City officials then became worried that there would not be a large enough tract of 5 1 land to accommodate the desired airport since developers were buying up large pieces of vacant land on the Houston periphery. When the Mayor approached business leaders in that same year regarding this anticipated problem, they formed a syndicate to buy land in north Harris County without letting anyone know what was being planned. The tacit nature of this agreement was formed in order to ensure that land prices were not forced up. When the new airport was finally approved, the city purchased the land from the syndicate of business leaders at the price that they originally paid for the land, saving the city considerable money (Miller 1982). Business leaders and local government also teamed up to entice NASA’s new Manned Spacecraft Center to the Houston area in 1961. When it became known that NASA was searching for a location for the new center, local Houston leaders got together and convinced Humble Oil and Refining Company to donate a small 1,000 acre site of its 30,000 acre holding in Clear Lake (southeast of Houston) to Rice University. The university, as a public entity, offered the site to NASA for its spacecraft center, and was accepted (McComb 1969, Miller 1982). Built in 1962, the Johnson Space Center, as it would be renamed, helped to bring thousands of j obs, billions of dollars, and increased prestige to the Houston area, largely because of the cooperation of business leaders and local and state government. Business leaders have also been actively involved in the politics of the city and very often are a large force in deciding who becomes mayor (McComb 1969). The city’s Chamber of Commerce has become especially strong and takes active roles in city issues traditionally handled solely by the city government and its agencies (Feagin 1988, Thomas 1991). This has included long-range planning for capital improvement projects 52 that often best serve the interests of local business. As the city and its economy have adapted to changing times and a changing economy, business interests have continually worked together to ensure the success of the city, at least when it comes to facilitating the needs of certain segments of Houston’s population. Government Involvement in Business Despite Houston’s claims of laissez-faire and minimal government involvement, local and state governments are actually heavily involved in ensuring that the economic interests of local businesses are being effectively addressed. In Houston, the free enterprise philosophy held by the city’s political and business leaders does not mean a complete rejection of government. In fact, governments at all levels are extensively encouraged to facilitate the needs of local businesses, evident with extensive public aid programs, direct subsidies, and limited private sector regulation (Feagin 1988, Vojnovic 2003a). However, there is a dual nature to this government involvement, which has meant prosperity for some, while the historical disinterest in social services has generated considerable disadvantages for large population subgroups—Houston’s marginalized population. One of the largest areas of government involvement, often rarely seen by most citizens, is the high level of subsidization of private development and businesses. This has been evident since the beginning of the town when the Allen brothers convinced the new Republic to locate its capital in Houston, and thereby securing government funds to subsidize the initial development of the city. Public funds have routinely been used to finance the expansion of infrastructure and services to suit the needs of business interests 53 in Houston. While the use of public funds for these types of projects is not unique to Houston, the continual focus on meeting the needs of business leaders, routinely at the expense of the provision of basic public services to Houston’s neighborhoods, is what sets the laissez—faire city apart from other major US. cities. One of the largest and most visible projects of subsidization for business interests has been the continual dredging, widening, and maintenance of the Houston Shipping Channel (Port of Houston). As early business leaders have looked to capitalize on Houston’s waterways, they have sought funding from state and federal authorities to perform the necessary improvements for over the past 150 years. For many years, the federal government was providing a very large percentage of the funding for these improvements (greater than 95% between 1900 and 1963) (Rose 1965, Vojnovic 2003a). With strong lobbying in Congress, Houston was able to secure the necessary federal funding to ensure the port’s success and the city’s position as an international leader in petroleum industries and trade. Private developments also subsidized heavily by taxpayers include the numerous sports stadiums within the city. In 1958 a bond of $22 million ($147.6 million in 2005 dollars) was passed to provide funding for the Astrodome, a new, fully-enclosed, air- conditioned, football-baseball park to be built and managed by the newly-established Houston Sports Authority (H.S.A.). Some argued this large public debt for a private corporation set a bad precedent, but little was noticed in the hurry to build the ‘eighth wonder of the world.’ As construction costs doubled to $45 million ($288.5 million in 2005 dollars) because of scale and new technology, the H.S.A. contributed $6 million but 54 was only required to pay $750,000 per year in rent, with the rest of the funds coming from public bonds (McComb 1969). The heavy subsidization of public stadiums would become evident once again in the late 19903. During this period, the H.S.A. was recreated to become the more powerful Harris County Sports and Convention Corporation, becoming in charge of the financing, development, and construction of the new stadiums. During the mid- and late-19903, millions more dollars in public bonds were approved by voters, very typical of the city’s freewheeling promotion of such large-scale projects. As just over $1 billion was spent on stadiums in the late 19903 and early 20003, it costs $1.5 million a year just to maintain the Astrodome for smaller events. Taxpayers also still owe $50 million for renovations completed on the Astrodome in the late 19803 (Nichols 2005). As could be expected in a city built across such a large geographic area, the subsidies from the federal government to maintain the city’s transportation facilities are also large. Houston often received larger shares of funding, both from the state and federal governments, for road improvements than other cities in Texas or other cities in the US. of comparable size (Vojnovic 2003a). The four-lane Gulf Freeway which tore the historic black Fourth Ward in half, displacing many residents and tearing the community apart, had 86% of the costs covered by state and federal funds (McComb 1969). Extensive federal funding was also needed to build and maintain Houston’s major airports. The local government has also been actively involved in acquiring land for private development. In many particularly politically sensitive situations, the local government acquires private land, including prime Houston real estate, and resells or leases the land 55 to private developers. The government also assists in the development of these lands by directly subsidizing private developers, particularly in the case of upper-income residential developments. This includes the provision of new infrastructure improvements in areas experiencing physical and social upgrading, and the use of special tax financing schemes in upscale Houston districts to facilitate new development and redevelopment. Several such occurrences in the F reedmen’s Town area will be discussed in chapter five. Another interesting aspect of government involvement in business, in part related to a lack of formal zoning, has been the absence of regulations regarding environmental standards and industrial pollutants. In the continued effort to maintain the pro-business environment of Houston, government leaders comply with the needs of local industries by maintaining minimal industrial regulations. The environmental hazards generated throughout the city, in this political environment that maintains a disinterest in its marginalized populations, disproportionately affects minority and lower-income residents of Houston (Bullard 1987, Feagin 1988). Postmodern Transition Given that its principal period of expansion occurred throughout the 20th century, the most significant impact on Houston’s development has been modernism. This is evident in the city’s sprawling nature of outward expansion, its historical disregard and disinterest in ethnic groups, and a lack of environmental consciousness. Within the last fifteen years, however, the city has made a significant shift from its traditional economic development agenda. The new interest by the city’s political and economic leaders, driven by the new focus on the development of the specialized services and high-tech 56 economy, has resulted in an increased recognition of ethnic groups and cultures, a new importance on urban-environmental quality, and increased efforts directed towards downtown revitalization (Vojnovic 2003b). These initiatives are part of the city’s new interest in remarketing itself and improving its image as it establishes a new development and growth agenda. Houston has in large part been influenced by numerous successes of other US. cities that have pursued, and successfully realized, similar urban and economic revitalizations, including Seattle, Boston, Portland, and Denver (Ford 2003). Houston’s Modernist Roots While there are a number of characteristics in Houston’s urban landscape that reflect the city’s strong modernist tendencies, there are three that are most relevant to the nature of physical and social upgrading that the city is experiencing. Houston has long been recognized as a sprawling metropolitan region. This sprawl was, of course, exacerbated by the increase in personal automobile ownership in the early decades of the twentieth century and further exacerbated by increases in federal highway and road construction during the 19503. Even with a high concentration of businesses and people employed in the downtown area (currently over 140,000 people), the number of actual residents living in the downtown is rather minimal for a city of about 2 million people. Much of the city’s growth in the second half of the twentieth century has been focused on outward expansion. Several projects during the 19603 were important contributors to the city’s decentralization, and these developments have also emerged as anchors to the city’s suburban expansion. The construction of the Astrodome and NASA’s Manned Space 57 Center took place several miles from the city’s center, with the Astrodome seven miles south of downtown and the NASA Center over 25 miles southeast of Houston. Another example of modernist suburban expansion is evident with the Galleria/Post Oak shopping complex, located 10 miles west of downtown, an area that would eventually develop as an edge city. The nature of investment patterns throughout Houston, and specifically the city’s low-density decentralization tendencies for much of the post-World War 11 period, was a reflection of the city’s modernist tendencies emphasizing single-family housing construction and suburban growth. Another example of Houston’s modernist roots has been its reliance on heavy manufacturing, particularly the petroleum-based industries which, while being critical to the development of the region, have produced severe stresses on the natural environment. As noted earlier, Houston has historically maintained a poor environmental record with regard to the region’s natural environment. This is perhaps best evident with the weak local and regional regulations on polluting industries, and the high geographic concentration of noxious facilities near poor, minority neighborhoods on the industrial east side of the city (Feagin 1988, Bullard 1990). Adding to the industrial emissions, the expansive system of road networks and the heavy reliance on the personal automobile have further contributed to pollutant emissions in the city. These severe environmental stresses in Houston, evident with high levels of particulate matter and ground level ozone, have generated significant health risks for large segments of Houston’s population, and particularly the lower-income minority residents. The disinterest in ethnicity and ethnic communities was another influence of modernism that played a crucial role in shaping Houston’s urban landscape. During much 58 of the twentieth century, as in other US. cities during this period, the various ethnic neighborhoods of Houston were largely ignored and ‘invisible’ to the white middle classes of the city and regularly faced redevelopment pressures from both public and private interests who were looking to clear land for new development. These communities originally inhabited undesirable land surrounding the downtown and the industrial, east side of the city (Lin 1995). Although Houston did not participate in the federal urban renewal programs, deteriorating neighborhoods were still cleared with the use of federal funding for the construction of highways and public housing projects. The discussion of such pressures in the city’s African-American Fourth Ward will be explored in detail in chapter five. This disregard for ethnicity and ethnic neighborhoods was seen as an important element of the city’s modernist era. Within the last fifteen years Houston has experienced a marked shift towards postmodern characteristics and tendencies, largely as a result of its new interest in developing a specialized services and high-tech local economy. These shifts have occurred as the city attempts to remarket itself and improve its image in the changing world economy. While these new initiatives may appear to contradict the city’s historical development, they do not in any way challenge the city’s traditional pro-growth economic agenda (Vojnovic 2003b). Houston’s New Postmodern Direction In 1999 Houston’s environmental struggles became well known as the Houston- Galveston region became the first metropolitan area in the country to surpass Los Angeles as the ‘smoggiest city’ in the nation, with the most days of ozone violations per 59 year. In the Houston region, however, ground level ozone was only one of many increasing pollutants and fine particle emissions in the area, which caused an estimated 500 premature deaths annually (Sonoma Technology 1999). This poor level of environmental quality throughout the region had begun to plague the city and its image, and was seen as being particularly detrimental in attempting to attract corporate headquarters and tourism. High ozone levels have also put federal highway funds in jeopardy. In response to the requirements of the service economy—which is seen as strongly dependent on urban quality indicators, including environmental quality—— Houston has recently begun to aggressively pursue cleaner air and emission strategies (Vojnovic 2003b). Local economic and political leaders have been increasingly recognizing that improving environmental quality will improve the city’s competitiveness in attracting corporate headquarters, specialized services, hi gh—tech industries, and white- collar professionals that support the new service economy. In addition to environmental quality, noticing the successes of other US. cities at capitalizing on various, but select, ethnic areas and neighborhoods (such as New York City’s Little Italy and Chinatown, and Miami’s Little Cuba), Houston sought to capitalize on its ethnically diverse population and resources. Strengthening the city’s various cultural centers was seen as an initiative that would improve urban quality and encourage local tourism. As the numbers of Asians and Hispanics rapidly increased during the 19803, the city experienced the emergence of a new economic group, ethnic place entrepreneurs, who were able to market ethnic places as commodities in postmodern Houston (Lin 1995). 60 One area of recent focus is the Chinatown area near the new George R. Brown Convention Center on the eastern Side of downtown. Here ethnic entrepreneurs and city leaders aim to build a mixed-use development with a variety of ethnic restaurants that will build Houston’s image as an international city, and perhaps more importantly, expose this dimension of Houston to the numerous convention participants nearby. The city is also looking to capitalize on recent developments of the Mexican-American population along the Buffalo Bayou, east of downtown. Here groups are developing a Latino festival marketplace along the bayou with sites and markers of historical and ethnic significance (Lin 1995). In a shift from the city’s modernist tendencies, which generally ignored ethnic communities, the city now hopes to capitalize on the uniqueness of the local cultures that exist in the various areas of the city, in pursuit of remarketing itself as an international city with rich cultural amenities. What must be recognized is that this embracing of ethnic diversity by the city is a selective process. A large group excluded from this celebration of ethnicity is Houston’s African-American population, as evidenced by the displacement of residents from the city’s Fourth Ward and a lack of recognition of the significance of Afiican-American history in the city. Also important is that this increased presence and recognition of ethnicities in Houston has so far not been translated successfully into economic opportunities, as a substantially higher percentage of blacks and Hispanics live in poverty in comparison to whites (Vojnovic 2003b). Another aspect of the city’s postmodern transition is the new emphasis placed on Houston’s historical buildings, landmarks, and history—as evident in the preservation of a number of important historic buildings in the downtown and surrounding areas during 61 Houston’s recent redevelopment initiatives. During the development of the new downtown baseball stadium (currently Minute Maid Park) in 1997, architects and designers incorporated the city’s abandoned train station as the main entrance to the stadium (Figure 3.1 and Figure 3.2). The Union Station, designed by the architects of New York City’s Grand Central Station, was completed in 1911 and served as the city’s main passenger station until its closure in 1974. This project brought acclaim within the preservation field to a city that had often been known for its disregard of buildings with historical significance. The project even garnered the Greater Houston Preservation Alliance’s 2000 Good Brick Award (Greater Houston Preservation Alliance 2004). Several other older buildings in the downtown have been preserved and renovated into successful lofts and apartments, including Hogg Palace (built in 1921) and the famed Rice Hotel (completed in 1913) (Figure 3.3 - Figure 3.5). However, similar to the ethnic diversity in the city, Houston is selective in its approach to historical preservation, which will become evident in the review of Houston’s redevelopment of Freedmen’s Town, discussed later in the thesis. 62 Figure 3.1 — Union Station as entrance to Minute Maid Park (baseball stadium) (Source: Author) 4a ...-.1. ‘.'.- -' Figure 3.2 — Interior of renovated Union Station (Source: Author) 63 Figure 3.3 — Hogg Palace (Source: Author) Figure 3.4 - Rice Hotel (Source: Author) 64 C. Figure 3.5 — Rice Hotel (Source: Author) Perhaps the most significant aspects of the city’s postmodern shift have been evident with its focus on downtown redevelopment and revitalization. With the commercial sector considered successful and employing over 140,000 people, Houston’s downtown core struggled with the lack of residential land uses, street activity, and nightlife. With assistance from city tax credits, one of the first residential construction projects gamishing attention involved the renovation of the historic Rice Hotel, which was closed and abandoned since 1977. The city also used the already-thriving theatre district as an impetus for development of further entertainment venues. The city focused on the development of street beautification projects, a light-rail line through downtown, and two major downtown sports stadiums all to be discussed in the next section. 65 An important dimension of the various private sector development and redevelopment initiatives were the extensive government subsidies provided to facilitate these projects. These public initiatives were clearly in contrast to the widely accepted claim of minimal government involvement in this laissez-faire city. In addition, similar to the discussions of ethnic areas and historic preservation, only a select group of Houston residents benefited from the downtown redevelopment. Houston’s recent central city revitalization has placed tremendous pressure on land values in and around downtown. In addition, the redevelopment of the central city has resulted in the eventual destruction of several neighborhoods, including Houston’s Afiican-American ‘mother ward’, Freedmen’s Town. 66 Local Economic Development Strategies: Focusing on Houston’s Central City Since the early 19903, the city of Houston has devoted a considerable amount of resources to encouraging the redevelopment of its downtown and surrounding residential areas. Although the city’s 1.08-square mile downtown core was once again prospering with over 140,000 workers in the upswing following the recessions of the mid-19803, the city continued to lack a residential population living in the downtown. In order to encourage the construction of residential lofts, the city initially focused on physically upgrading several deteriorated areas near the downtown, including the Midtown and Freedmen’s Town areas, located to the south and west of downtown respectively. In pursuit of downtown revival, the city developed a downtown management district, tax increment reinvestment zones, built new sports stadiums, hotels, and light-rail, and improved streetscape designs. (See Figure 3.6 & Figure 3.7 for maps of the Houston area and the locations of downtown redevelopment projects.) In this “laissez-faire” city, the local government became extensively involved in the planning and development of various projects, as well as financially invested with extensive public subsidies granted to private developers involved in these initiatives. 67 SEEK 8.46: .o 26 . 88¢ ins. 2a 8.5: 8.32.. 3 :6 35.2 E 38.8 ”Emu . 8.28m .22, Ba 82.. 888 88 "858 .IIIJJIJJJ 8:! NF 0 n c 2.. all... :30; :85. x . l - 58 £258.“. I 85a: 515 I £5... case: 8 25 I as: 388 o8~ fl 88¢ 8a: venue.— cofiao: , , . co on . \ r ’7 V 1 I. — . (I..- v.11. . / I. r/ \t . 2395911.... - .. no.2 cognac: 2: no mega use annoy. 3?: Figure 3.6 — Orientation map of the Houston area and Freedmen’s Town. 68 852 .3 8.558 :oumso: EsoEBoo $9.50 .mmm - 8.28. his ”Spinoza e SEEK cause... a 26 - 88m 8.32 £952 83. 82:8 £526 .202”. l. 8:86 289: Hilu 2: =3. .5: II. mecca i memo: 8.82 cacao.— Awoccoe 0.83: 22859 .20: 8E c .3: 3.0 a at 3.52.8 9: .2 5:8 38: 3 82a 88m a. 22 8.58 as .2 .3: 85.. 8 98.: 8.2 a 528 .5553 3 “>3. lllblli! Figure 3.7 — Locations of downtown sites and recent redevelopment projects 69 The Main Street Management District and TIRZs To guide and encourage development during the 19903, the city developed two specific programs with far-reaching effects. First was the establishment of the Houston Downtown Management District (1995), which is a nonprofit body, funded by a special assessment on downtown property, whose board of directors represents property owners, managers, and tenants in the downtown. Their purpose is to encourage the revitalization of Houston’s downtown, including the construction of residential and commercial buildings, and various downtown improvement projects. In order to accelerate the renewal of the downtown, the district set several important goals with improved quality of life as the underlying theme. These goals included building a lasting constituency for downtown; recruiting investors, retailers and tenants while retaining those already downtown; and making downtown clean, safe and attractive to all (Houston Downtown Management District 2005). They have been an integral part of several important projects including the new light-rail system, Main Street improvements, and the Cotswold streetscape improvement project, all to be discussed in more detail later in this chapter. Also designed by the city was a program that implemented the creation of tax increment reinvestment zones (TIRZs). TIRZs are a type of reinvestment financing tool designed to redevelop deteriorated areas. TIRZs were created throughout the city for one of three reasons: to address inner-city deterioration, to develop raw land in suburban fringe areas, or to proactively address the decline of major activity centers (City of Houston 2004). (See Figure 3.8 for locations of current TIRZs.) 70 32.3536165' Nu: I singing”. in: 5525: he .86 ASE: moaeN Eva—ungumow— «no—=22: nah me .8339— 3025 28:00 .m.: .90 68261.0 E0 ”850w Figure 3.8 — Locations of Tax Increment Reinvestment Zones in the City of Houston 71 The tax assessment levels are frozen in the reinvestment zones for a determined number of years. The idea behind the zones is that taxes attributable to new improvements (tax increment above the frozen level) are set aside in a fund to finance various public improvements within the zone. As new development in the zone occurs, the resulting increase in tax revenue (above what would normally be collected without improvements) is returned to the TIRZ fund to pay for further project costs. The property owners still pay the normally increasing tax bill, while the cost to the city is the loss of the increment tax above the normal assessed level, which is instead returned to the TIRZ. The financing scheme was most successful at redeveloping the Midtown area south of downtown. This area between I-45 and US. 59 had become blighted with neglect with the suburbanization of Houston. The area began its revitalization in the mid- 19903 with a plan to restore its pedestrian-fiiendly residential character with sidewalk cafes and shops. The establishment of a Midtown TIRZ in 1995 has been vital to the success of the area and in encouraging development. The area is now full of mixed-use developments and upscale condos, apartments, lofts, and townhomes, with close transit connections to downtown (Figure 3.9 & Figure 3.10). Since 1997 the area’s list of new construction projects include 2,500 apartment units, 675 townhomes, 359,000 square feet of commercial, retail and restaurant space, and 8,000 new residents (Kaplan 2003). A TIRZ was also implemented in the deteriorated Freedmen’s Town area. This tool has begun to assist in and encourage the physical upgrading of Freedmen’s Town but not for the benefit of the original residents most in need of assistance. 72 Figure 3.9 — Highly-successful Midtown area southwest of downtown redeveloped with a TIRZ. (Source: Author) Figure 3.10 — Remaining land in the Midtown area prepared for development. (Source: Author) 73 The TIRZ financing scheme has recently come under attack when it was implemented in the upscale shopping area west of the downtown known as the Galleria. Although still a thriving commercial and retail center, the argument was that the Galleria would soon lose business to retail outlets farther in the suburbs, because of increasing costs of business resulting from the congestion experienced in the Galleria area and the continual loss of city funding to residential areas. The new funds developed through the Galleria TIRZ were to be used to improve pedestrian areas and parking facilities to decrease congestion, particularly given the pressures of new improvements and projects in the area. Opponents of the Galleria-area TIRZ argue this is a case of ‘corporate welfare’ in which many developments often left up to the private sector are being financed with public money. “It’s a way for some well-connected people to make their projects even more money” said a local developer of the use of TIRZs in these types of thriving upscale areas (Cook 1999a, p. 8). As opposed to being used in deteriorating areas that are not generating tax dollars, the use of a TIRZ in areas such as the Galleria—which already maintain some of the highest property values in the city—will redirect money from the city into already thriving Houston neighborhoods. Main Street and Infrastructure Projects Some of the most visible redevelopment initiatives in the downtown have been the new construction projects along the city’s Main Street. This has included a light-rail line along Main Street and various infrastructure and streetscape improvements along most downtown streets. These physical improvements, although largely ‘cosmetic’ in 74 nature, were designed to be a catalyst for further developments, both residential and commercial, in the area. In early 2001 the Main Street Coalition, made up of public and private leaders of Houston’s downtown, published the Main Street Strategic Plan. This document detailed the physical and streetscape improvements that were to happen to Houston’s Main Street in hopes of linking the areas of the downtown with sports venues, universities, museums, and Houston’s hospital complex south of downtown (Main Street Coalition 2001). The streetscape improvements centered around the construction of a 7.5 mile light-rail line running along Main Street. The official ‘Main Street Initiative’, as it is known, has included the construction of fountains, new landscaping and pedestrian-oriented designs along the light-rail line and Main Street. For such an automobile-dependent city, these designs were meant to encourage pedestrian activities around the downtown, with the incorporation of benches, wide sidewalks, new building facades, district signage, and trees and overhangs to protect pedestrians from hot summer weather (Figure 3.11 - Figure 3.13). Close to Main Street is a large-scale streetscape improvement project aimed at improving the aesthetics and pedestrian character of the northern portion of downtown. The project, known as Cotswold, covers a 90-block area highlighting the historic heart of Houston by linking the Theatre District, on the west side of downtown, with the new baseball stadium, on the east side of downtown (Main Street Coalition 2001) (Figure 3.14). In addition to the new pedestrian-fiiendly designs incorporated along Main Street, the Cotswold project has also included new streetlights, public art, metered on-street parking, and a courtesy patrol (security force) (Rouffignac 1999a). As with the Main 75 Street projects, the goal is that the Cotswold project will be a catalyst for private development in the area. 111111,; \ t a? Figure 3.11 — Improved streetscape designs and street integration with the light-rail line. (Source: Author) . .. Figure 3.12 — Facade improvements and new streetscape designs along Main Street in downtown. (Source: Author) 76 Figure 3.13 — District signage as part 01' downtown revitalization. (Source: Author) Figure 3.14 — Cotswold Streetscape Improvement Project (Source: Author) 77 One of the largest projects has been the construction of a 7.5 mile light-rail line, at a cost of $300 million, running along Main Street. The Metropolitan Transit Authority of Harris County (METRO) operates the line, which was completed in December 2003. Design plans and campaigns had been in the works for over twenty years as residents, transit agencies, and officials debated the construction of a mass transit rail line in the city. After finally being approved in 1999, the construction process took nearly three years, as Main Street was completely reconstructed with the integration of the rail line (Figure 3.15 - Figure 3.18). Although this massive construction effort was highly disruptive to downtown business, significantly contributing to the closure of over a dozen small businesses and restaurants, the li ght-rail has proven very popular with over 100,000 people riding on the opening weekend (Hanson 2004). This relatively short line links many important facilities along the Main Street Corridor. At the north end is the University of Houston’s downtown campus, and traveling south the line runs through the central business district, and continues to the museum district, Rice University, the hospital complex, and the new football stadium. Although only connecting a few major points in Houston, the new light-rail has already proven to be very popular, with average daily ridership estimates between 18,000 and 20,000 people. In November 2003, local voters approved a proposal for another 65 miles of light-rail and 8 miles of commuter rail. The voters also authorized a $640 million bond as initial funding for the next 22 miles of light-rail, which is expected to be in operation by 2012 (Wall 2003). This additional light-rail would link downtown with the city’s two major airports, to the north and south, as well as the city’s upscale Galleria shopping area to the west. 78 Figure 3.15 — Main Street Improvement Project with the construction of the light- rail line along Main Street in downtown. (Source: Author) ... ' ‘w’fi‘tg 'I'K‘ » -w ‘ "' . 131..., T...‘ ' ‘i‘f‘rfi'I 1.4 x ' Figure 3.16 — Main Street Improvement Project with construction of light-rail line (Source: Author) 79 " ‘.:\7\|\,\:‘1\‘ ,’ , / ' \ \ x . ‘ ‘ x . ,, .77, 7/ / l\~, , , t . Figure 3.17 — Completed light-rail line integrated with Main Street. (Source: Author) Figure 3.18 - Completed light-rail line integrated with Main Street. (Source: Author) 80 Entertainment Venues: Stadiums, Hotels, Conventions, Performing Arts In the continual desire to redevelop its downtown and increase its presence as an international city and tourist destination, the city of Houston constructed numerous sports stadiums, convention center additions, hotels, and performing arts centers in the late 19903 and early 20003. One of the first downtown redevelopment projects that the city undertook was the renovation of the historic Rice Hotel. In 1997, at a cost of $32 million, this historic structure was refurbished into a mixed-use complex of upscale condos and apartments as well as restaurant and retail space. The developer who refurbished the Rice Hotel, which had been abandoned since 1977, received extensive public funds and tax breaks to facilitate the completion of this project. This was one of the first large-scale redevelopment initiatives to take place downtown and would help to stimulate further residential and commercial projects in Houston’s central city. Riding the wave of revitalization, increased convention business, and lucrative tax breaks from the city of Houston, an additional nearly 3,000 hotel rooms have been constructed in less than seven years in the downtown. This has involved the construction of three new hotels and renovations of nine older, mostly closed buildings. The largest of these hotel additions is the new 1,200-room Hilton Americas-Houston convention hotel built on the east side of downtown adjacent to the newest convention center (George R. Brown) (Figure 3.19). This luxurious hotel has been a model for new convention hotels across the country, with its 91,500 square feet of technologically-advanced meeting space and close proximity to numerous downtown attractions (Figure 3.7 & Figure 3.20). The city hopes that this hotel will stimulate the redevelopment of the east side of downtown and will be worth its nearly $300 million investment. In addition to the new construction 81 l mm: of hotels and additions to existing hotels, large-scale hotel renovations have also been taking place in the downtown area such as the historic Lancaster Hotel in the Theatre District (Figure 3.21). One of the largest such renovations includes a $30 million project to update the downtown Hyatt Regency (McCarthy 2000). Figure 3.20 — Close proximity of new Hilton hotel and George R. Brown Convention Center as viewed from Minute Maid Park. (Source: Author) 82 ..-—-A” m... I Figure 3.21 — The redeveloped, historic Lancaster Hotel in the downtown Theatre District. (Source: Author) The city’s third official convention center, the George R. Brown, was built in 1987 on the east side of town (Figure 3.22). A $165 million addition to the convention center was completed in December 2003, increasing the total space by 38% to 1.85 million square feet. South of downtown, the city maintains the use of the Astrodome and surrounding facilities providing an additional 1.15 million square feet of exhibit space. These combined facilities, including the new convention center hotel, have been a major draw for national and international conventions and in helping the city to rank second in the nation for meeting space in square footage with a total of over 4 million square feet of meeting space across the city (City of Houston 2003b). 83 Figure 3.22 — George R. Brown Convention Center (Source: Author) Another set of highly visible economic development projects has been the construction of three major sports stadiums in the downtown area for a total price of $1.036 billion (Murphy 2005). All three of these stadiums were completed within three years of each other, representing the largest and fastest build-up of sports venues in the nation (Tolson 2004). The construction included a new baseball stadium, new football stadium, and an indoor arena for basketball and hockey events, as well as concerts and other indoor activities. In addition to aggressively trying to recruit a National Football League team back to Houston and the lucrative Super Bowl, the city was also at the time in the preliminary running for the 2012 Summer Olympics. The first to begin construction was the baseball stadium, currently named Minute Maid Park, which broke ground in 1997. In addition to being a state-of—the-art facility with a firlly retractable roof, the 40,950-seat air-conditioned stadium contains modern suites and luxury boxes (Figure 3.23 and Figure 3.24). These luxury areas, largely absent 84 in the former baseball venue of the Astrodome, account for a large percentage of a modern stadium’s revenue and were part of the reason many team owners across the nation have aggressively pursued new stadiums within the last fifteen years. Since opening in March 2000, at a cost of $265 million, the stadium has stimulated other projects in this previously undeveloped, northeast part of the downtown—including two new luxury lofts, several hotels, and numerous restaurants, clubs, and bars. To replace the city’s old indoor arena located well outside of the downtown (formerly the Compaq Center), a new arena was built in the central city adjacent to the new Hilton convention hotel (Figure 3.25). In addition to being home to the city’s professional men’s and women’s basketball teams, the arena is used for over 300 events and activities a year, including concerts, hockey, graduations, and related convention activities. Although only opening in October 2003, city officials hope this $252 million investment will work in conjunction with the convention center and hotel to continue further redevelopment on the east side of downtown. As of now, there are few activities and services in this area of the downtown, and it remains fairly disconnected from the activities in the city’s central core. Although not tied directly to the redevelopment of Houston’s inner-city because of its location five miles south of the downtown, the city’s new football stadium has served as host to the 2004 NFL Super Bowl and other large-scale events (Figure 3.26 and Figure 3.27). Completed at a cost of nearly $500 million in August 2002, Reliant Stadium serves as the home to the city’s new professional football team, the Houston Rodeo, as well as soccer and concert events. This site is also at the southern end of the city’s new light-rail line and therefore connects the stadium with downtown. Although the stadium 85 has not been very successful in further developing the surrounding area, being at the southern node along the light-rail corridor and with its connections to downtown, the stadium provides a southern anchor and will likely help to intensify the light-rail corridor. Figure 3.23 — Minute Maid Park (formerly Enron Field) (Source: Author) Figure 3.24 — Interior of Minute Maid Park (formerly Enron Field) (Source: Author) 86 - «Pa . . {1.9. Figure 3.27 - Reliant Stadium (Source: Author) 87 Located in the northwest section of the downtown, the Houston Theatre District has long been an important part of downtown entertainment (Figure 3.7). In the recent revitalization initiatives, the Theatre District has been further enhanced and complemented by other entertainment and eating venues, which have considerably increased the vibrancy of the downtown outside of normal business hours. The District is home to eight nationally recognized performing arts organizations and contains nearly 13,000 seats for live performance, making it second behind New York City in number of theatre seats in a concentrated downtown area (City of Houston 2003b). This district has also taken part in the downtown redevelopment with the construction and renovations of numerous venues including: the opening in spring 2002 of the $100 million Hobby Center (home to Broadway shows and plays), a $7.5 million renovation of the Jones Hall in 2002 (home to the Houston Symphony), a $30 million renovation of the Alley Theatre completed in 2005, and a new $12 million underground parking garage for use by those visiting the entertainment venues and the central city and county offices (Figure 3.28 - Figure 3.31). Another redevelopment opportunity in this area existed in the city’s second convention center, which had largely been abandoned since the opening of the George R. Brown convention center on the east side of downtown in 1987. This Albert Thomas Convention Center was retrofitted in 1997 by a private entertainment company into a successful entertainment venue, known as Bayou Place, with a movie theatre for independent films, a Hard Rock Café, a 3,000-seat live performance venue, and multiple restaurants, bars, and dance clubs (Figure 3.32 and Figure 3.33). Overall, this new concentration of public and private projects in Houston’s downtown clearly represent a 88 new direction for a city that has traditionally emphasized low-density suburban developments and regional shopping centers. All of these physical upgrading projects have also brought tremendous increased pressure on upscale near-downtown living geared towards upper-income professionals of the new service economy. This has produced new developments in areas such as Midtown as well as Freedmen’s Town and the Heights to be discussed in the following chapters. Residents of these effected areas have been severely impacted by this physical upgrading, often including their eventual displacement. Figure 3.29 —- Jones Hall (Source: Author) 89 Figure 3.31 — Hobby Center for the Performing Arts. (Source: Author) Figure 3.32 — Bayou Place entertainment complex. (Source: Author) 90 ' l A C K ., Fur“; A =¢;w-—l