Nov 20, 2024

Allentown's Revitalization and Our Frame of Reference


I suspect that the millennials are most enthused about the changes in Allentown, while the baby boomers are the least. How you feel about what is new there now, is probably based on your frame of reference.  We who experienced Hamilton Street in it's heyday are not so impressed with current developments.  Although the Whitehall Mall opened in the mid 1960's, Hamilton Street continued on for another 30 years. When the Lehigh Valley Mall opened in the late 1970's, Hamilton Street's decline as a destination was swift. Although the former Hess Brothers store would stay open through Christmas of 1995, most of it's shoppers entered and left via it's own parking deck, never stepping foot on Hamilton Street.

During the next 15 years, the downtown survived by serving the neighboring demographic, which was becoming poorer every year. Five years ago, when I debated about the coming NIZ on Business Matters, one of the NIZ board members actually referred to the stores being displaced and their clientele as a cancer. The same merchants and customers are now considered part of 7th Streets' success, what a difference a few blocks make.

Despite one promotional article after another by The Morning Call, the verdict is still out on the success of the new revitalized center city. Because it is being financed exclusively by public funds, and will be for at least the next 30 years, normal barometers of success cannot be used. I spend a lot of time there, but have yet to feel the buzz.

above reprinted from November 30, 2015

ADDENDUM APRIL 4, 2022: The six plus years since the above was written hasn't changed my assessment of center city...construction proceeds on the new offices and apartments. The new Strata 13 apartment building at 8th and Walnut mystifies me...what would compel anybody to move there? However, these type questions seem limited to this blog, and my frame of reference.

ADDENDUM NOVEMBER 20, 2024: I continue to have issues with the concept of the NIZ legislation, and I'm glad that state senator Jarrett Coleman is on the case concerning audits.  That said, several new developments on Hamilton Street I think will help boost feet on the ground. NIZ King Reilly's new Archer  music venue should liven up the night scene. Apartments and condos at the PPL Tower and former PPL Plaza will bring some residential private owners into the mix.

15 comments:

  1. Stick a fork in it.
    Exhibit A: The Allentown School District.

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    1. It could end up being a tale of two cities, with the school district in the poorer one.

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  2. That immediate area sorely needs a midsize, comprehensive grocery store within a few blocks walk in order to become an attractive daily residence.

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    1. That type of grocery will come if and when there are enough people who want to shop downtown.

      The problem is that the few upper income people who might shop downtown (and would attract a grocery to build there) don’t want to interact with the lower income people who live right outside the NIZ border and would also use the store. The upper income people will instead hop in their cars and take their money to places like Wegmans

      City Hall’s solution? Building more subsidized housing, which will kill any organic positive improvement in the downtown area.

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    2. Getting a good downtown market is more about a concentration of people with money than concerns with lower income people hanging around. The Trader Joes at 23rd & Market (Philadelphia) is able to pull it off because of the concentration of people with money in the western edge of downtown Philadelphia. The vicinity is loaded with sketchy/crazy street urchins, but it works really well, the store is packed and the neighborhood residents love it. More than 95% of shopping trips are on foot even though there is a small parking lot with some shoppers arriving by car. A store like this one would really be a game changer for downtown, but the demographics have to be there and Allentown is light years away; they cant even operate a central food court after 3:00 pm.

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    3. Allentown increasingly offers all the challenges of a big city and few of the advantages.

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  3. Hamilton Street is not a viable central business district because of the low quality of the residential neighborhoods that surround it. When Allentown was successful, its urban neighborhoods were well over 50% owner occupied with a good quality of life. Generations of middle class families bought their homes, set down roots and become Allentonians who took pride in their homes, neighborhoods, city. Now, as densely concentrated rental units those same buildings destroy any chance for neighborhood quality of life to improve and they have eliminated home ownership opportunities. This crazed rental market has currently caused these rental buildings to reach aberrational heights both for selling prices and monthly rents. So instead of being the key to the American dream, these rentals are now the means of keeping the poor poor. To improve Hamilton Street (if indeed that should be the goal) the billion dollars should be spent redeveloping the surrounding residential neighborhoods. You're futilely attempting to cure the symptom while the disease rages on.

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  4. The newly announced plan for 33-unit 'low income' housing 'project" (really an apartment building) won't support a Trader Joe's or virtually any other major grocery store. Besides, does 'low income' mean EARNED income? Or will this be a welfare hotel where the 'low rents' are actually paid by taxpayers?

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  5. anon@7:57: I agree that Strata complexes need a grocery store, and it won't successfully happen until there is enough demand.

    anon @8:43: The NIZ $billion was never offered or intended for improving the surround residential neighborhoods. Things there will get worse, because the selling prices have been so high that the rents will not sustain the debt obligations... expect to see boarded up buildings.

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    1. MM - The NIZ should be (and could be) a catalyst for improving the surrounding residential area, but we are being failed by City Hall.

      Instead of targeting these areas with redevelopment dollars for infrastructure, they are largely ignored and dollars are wasted on temporary programs. Instead of vigorously enforcing code and quality of life issues in those areas and weeding out the problem residents and properties, government bureaucrats rarely leave their offices to see what needs to be done.

      Even something as simple as double parking on downtown roadways is ignored. That may seem like a minor issue, but imagine how it looks to an outsider considering moving to or investing in opening a business downtown.

      Do they want to navigate the gauntlet of double-parkers on their way to their new apartment (if thinking about moving here)? Do they see their future customers (if considering opening a business here) wanting to travel through that on a regular basis? Of course not!

      And don’t get me started on the litter problem downtown. Again, competent leaders would have the areas around the NIZ looking pristine, not like the gateway to a landfill.

      I am no fan of the NIZ, but the failure to improve the areas around the zone falls squarely on City Hall.

      Our city leaders need to make up their minds what the city should be. It’s either going to be the poverty center that they cater to forever or it can be the best version of itself.

      They now have a brief opportunity to make the area outside of the NIZ something to be proud of. If they fail to do so, the NIZ (once the subsidy ends) will be swallowed up by whatever the area around it has been allowed to become.

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  6. Michael, Anyone who would think about opening a business in the NIZ… should think twice about it! The odds of success are stacked against you. Dealing with the Parking Authority and the cost of your personal parking and employee parking is a high dollar monthly charge.

    Customers that are up in years aren’t able to deal with the kiosks that are set-up to facilitate your parking adventure.

    Then if you happen to locate in a Reilly building… you now have a silent business partner that will want to see your books so he can see how much money you might be making. I believe there is a special tax that NIZ businesses have to pay to the State of Pa every year in January, that helps to pay for the NIZ.

    No thinking person would ever set up shop in that area.

    Name one retail business or Restaurant that is still open in Downtown Allentown since the NIZ was started?

    Just an observation,
    From a Dumb Dutchman

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  7. I think that too often City leaders use examples like the one Anon 7:57 cites in Philly (Trader Joe’s) as a “vision” for what could work here in Allentown. The problem is that Allentown isn’t Philly (or Manhattan or Boulder, CO).

    Unlike those cities, nice grocery stores (and restaurants, and department stores) are literally a 10-minute drive from downtown. So you don’t have to risk dealing with “sketchy/crazy street urchins” if you live downtown.

    Similarly, there is no way that more wealthy residents in the west end of Allentown are going to take the risk (real or perceived) and regularly shop downtown like some in the more wealthy areas of Philly might. Those in the more wealthy areas of Allentown can just as easily (and more safely) spend their dollars in Whitehall, South Whitehall, Trexlertown or Saucon Valley.

    More importantly, those capable of investing in and building such grocery stores know the income demographics of Allentown and realize they can make an investment that’s much more likely to succeed if they locate their businesses outside of Allentown.

    Maybe the income demographics in the city could have been somewhat mitigated by something like the NIZ, but city leaders allowed all the NIZ land to be gobbled up by two (actually, mostly one) developer. So that’s another strike against downtown - why not buy a spot outside the city to build your market instead of paying high rents to a landlord with a downtown monopoly just for the privilege of being located in a poverty center?

    Really, it comes down to simple math, and the city’s poverty rate is what’s holding Allentown back.

    So what is City Hall’s solution? More affordable housing that will draw more low-income residents, who will put more of a strain on city resources.

    I do agree that Allentown is light years away, but it’s because our elected officials don’t even realize what the real problem is, much less how to solve it.

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  8. The telltale sign that downtown. Allentown cannot support a chain grocery store, even of the low and variety, is that CTown is not here. Not casting aspersions on the store or its patrons, but they tend to be in lower income neighborhoods all over the East Coast. Not Allentown!

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    1. There is a C Town in Allentown. 4th & Tilghman. Not downtown, but in Allentown.

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    2. There is also the Apple and Supremo markets on the 600 block of 7th St... all three of them are successful

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