today’s theme is reinvention and I think that we need to reinvent development why
that we need to reinvent development why
that we need to reinvent development why if I don’t think the process of
if I don’t think the process of
if I don’t think the process of development as it currently happens is
development as it currently happens is
development as it currently happens is working all that well and I’m not
working all that well and I’m not
working all that well and I’m not talking about downtown I’m talking about
talking about downtown I’m talking about
talking about downtown I’m talking about in the neighborhoods that surround the
in the neighborhoods that surround the
in the neighborhoods that surround the city I want you to imagine now that I’m
city I want you to imagine now that I’m
city I want you to imagine now that I’m walking on a tightrope over a dangerous
walking on a tightrope over a dangerous
walking on a tightrope over a dangerous gap between the past where everything is
gap between the past where everything is
gap between the past where everything is perfect and the future where nothing is
perfect and the future where nothing is
perfect and the future where nothing is certain you can see how nervous I am up
certain you can see how nervous I am up
certain you can see how nervous I am up there just by looking at it but as a
there just by looking at it but as a
there just by looking at it but as a neighborhood developer that’s how I feel
neighborhood developer that’s how I feel
neighborhood developer that’s how I feel a lot of the time people fondly remember
a lot of the time people fondly remember
a lot of the time people fondly remember the neighborhood as it was and they
the neighborhood as it was and they
the neighborhood as it was and they forget all its flaws but they
forget all its flaws but they
forget all its flaws but they automatically assume that any change
automatically assume that any change
automatically assume that any change that comes is gonna be for the worst
that comes is gonna be for the worst
that comes is gonna be for the worst academics and activists called a
academics and activists called a
academics and activists called a negative downside of Neighborhood
negative downside of Neighborhood
negative downside of Neighborhood Development gentrification and what they
Development gentrification and what they
Development gentrification and what they talk about in particular is a loss of
talk about in particular is a loss of
talk about in particular is a loss of character loss of affordable housing
character loss of affordable housing
character loss of affordable housing loss of commercial space and community
loss of commercial space and community
loss of commercial space and community conflict and there’s no doubt that all
conflict and there’s no doubt that all
conflict and there’s no doubt that all those things are potential negatives
those things are potential negatives
those things are potential negatives just to show you how badly we really do
just to show you how badly we really do
just to show you how badly we really do need to reinvent development I’ve got a
need to reinvent development I’ve got a
need to reinvent development I’ve got a little example we all know how this
little example we all know how this
little example we all know how this works right you type the beginning of
works right you type the beginning of
works right you type the beginning of your search phrase into Google and based
your search phrase into Google and based
your search phrase into Google and based on millions and millions of other
on millions and millions of other
on millions and millions of other searches Google fills in the rest of the
searches Google fills in the rest of the
searches Google fills in the rest of the phrase for you well guess what folks
phrase for you well guess what folks
phrase for you well guess what folks this is what people think of property
this is what people think of property
this is what people think of property developers property developers are scum
evil scum
evil scum obviously there are negative side
obviously there are negative side
obviously there are negative side effects of development sometimes the new
effects of development sometimes the new
effects of development sometimes the new doesn’t blend with the old people are
doesn’t blend with the old people are
doesn’t blend with the old people are displaced you can’t simultaneously smash
displaced you can’t simultaneously smash
displaced you can’t simultaneously smash down a building and live in it right but
down a building and live in it right but
down a building and live in it right but people also think that developers are in
people also think that developers are in
people also think that developers are in it for themselves that they’re trying to
it for themselves that they’re trying to
it for themselves that they’re trying to make a buck off people
make a buck off people
make a buck off people and they get in they build something out
and they get in they build something out
and they get in they build something out of character they create community
of character they create community
of character they create community conflict make a buck and they get out
conflict make a buck and they get out
conflict make a buck and they get out obviously and that tightrope I don’t
obviously and that tightrope I don’t
obviously and that tightrope I don’t want to tilt too far to the one side
want to tilt too far to the one side
want to tilt too far to the one side right but if I tilt too far to the other
right but if I tilt too far to the other
right but if I tilt too far to the other side there’s also a tremendous danger
side there’s also a tremendous danger
side there’s also a tremendous danger and that’s disinvestment first
and that’s disinvestment first
and that’s disinvestment first individual properties but then entire
individual properties but then entire
individual properties but then entire neighborhoods without the positive
neighborhoods without the positive
neighborhoods without the positive forces of redevelopment and change can
forces of redevelopment and change can
forces of redevelopment and change can fall into a downward spiral of
fall into a downward spiral of
fall into a downward spiral of disinvestment the visible signs of
disinvestment the visible signs of
disinvestment the visible signs of disinvestment are decay in disrepair
disinvestment are decay in disrepair
disinvestment are decay in disrepair lack of civic maintenance trash being
lack of civic maintenance trash being
lack of civic maintenance trash being left around territorial tagging people
left around territorial tagging people
left around territorial tagging people thinking that the curb is a great place
thinking that the curb is a great place
thinking that the curb is a great place to store old coaches and lawnmowers for
to store old coaches and lawnmowers for
to store old coaches and lawnmowers for instance evidence of drug use and other
instance evidence of drug use and other
instance evidence of drug use and other social disorder and eventually houses
social disorder and eventually houses
social disorder and eventually houses fall into disrepair
fall into disrepair
fall into disrepair they don’t get fixed they get boarded up
they don’t get fixed they get boarded up
they don’t get fixed they get boarded up and the whole cycle kicks into overdrive
and the whole cycle kicks into overdrive
and the whole cycle kicks into overdrive less trust between neighbors is more
less trust between neighbors is more
less trust between neighbors is more crime eventually people with legitimate
crime eventually people with legitimate
crime eventually people with legitimate business in the neighborhood start
business in the neighborhood start
business in the neighborhood start steering clear and what’s left is
steering clear and what’s left is
steering clear and what’s left is largely dysfunction in 2003 a key
largely dysfunction in 2003 a key
largely dysfunction in 2003 a key landowner in the heart of my
landowner in the heart of my
landowner in the heart of my neighborhood raised rents amidst a cycle
neighborhood raised rents amidst a cycle
neighborhood raised rents amidst a cycle a broader cycle of disinvestment the
a broader cycle of disinvestment the
a broader cycle of disinvestment the rents were higher than was reasonable
rents were higher than was reasonable
rents were higher than was reasonable and the businesses that were in the
and the businesses that were in the
and the businesses that were in the building moved out no new businesses
building moved out no new businesses
building moved out no new businesses moved in eventually the windows got
moved in eventually the windows got
moved in eventually the windows got broken the building was boarded up
broken the building was boarded up
broken the building was boarded up squatters broke in and started living
squatters broke in and started living
squatters broke in and started living upstairs there was drug use and I’m not
upstairs there was drug use and I’m not
upstairs there was drug use and I’m not talking about dope I’m talking about
talking about dope I’m talking about
talking about dope I’m talking about heroin it was drug dealing there was the
heroin it was drug dealing there was the
heroin it was drug dealing there was the violence and theft that goes along with
violence and theft that goes along with
violence and theft that goes along with those habits there was prostitution it
those habits there was prostitution it
those habits there was prostitution it was a tremendous source of human misery
was a tremendous source of human misery
was a tremendous source of human misery that building but what’s the solution
that building but what’s the solution
that building but what’s the solution the city tried an enforcement approach
the city tried an enforcement approach
the city tried an enforcement approach they sent in
they sent in
they sent in by law officers they levied fines
by law officers they levied fines
by law officers they levied fines against the owner the police came they
against the owner the police came they
against the owner the police came they evicted the squatters eventually that
evicted the squatters eventually that
evicted the squatters eventually that the city cut the power and the water but
the city cut the power and the water but
the city cut the power and the water but that didn’t change anything actually
that didn’t change anything actually
that didn’t change anything actually because a few hours later the squatters
because a few hours later the squatters
because a few hours later the squatters broke back in and resumed living there
broke back in and resumed living there
broke back in and resumed living there in the dark so the power of the city to
in the dark so the power of the city to
in the dark so the power of the city to legislate or enforce better community
legislate or enforce better community
legislate or enforce better community outcomes is limited what about the
outcomes is limited what about the
outcomes is limited what about the market can see the building was for sale
market can see the building was for sale
market can see the building was for sale and for lease but as a business owner
and for lease but as a business owner
and for lease but as a business owner can you imagine moving into that
can you imagine moving into that
can you imagine moving into that building no thanks and in terms of you
building no thanks and in terms of you
building no thanks and in terms of you know someone picking it up on the cheap
know someone picking it up on the cheap
know someone picking it up on the cheap there was no no deal though the
there was no no deal though the
there was no no deal though the landowner wanted his price which was
landowner wanted his price which was
landowner wanted his price which was more than the building was worth so
more than the building was worth so
more than the building was worth so who’s left enter the neighborhood
who’s left enter the neighborhood
who’s left enter the neighborhood developer in this case a community
developer in this case a community
developer in this case a community center half a block away providing
center half a block away providing
center half a block away providing Family Services and other programs for
Family Services and other programs for
Family Services and other programs for families and neighborhood at that time I
families and neighborhood at that time I
families and neighborhood at that time I was the president of the board of
was the president of the board of
was the president of the board of directors of a failing organization in
directors of a failing organization in
directors of a failing organization in the middle of a failing neighborhood and
the middle of a failing neighborhood and
the middle of a failing neighborhood and how we turned our organization around as
how we turned our organization around as
how we turned our organization around as a story that’s too long to tell today
a story that’s too long to tell today
a story that’s too long to tell today but I really came down to this we had
but I really came down to this we had
but I really came down to this we had become so desperate that we were no
become so desperate that we were no
become so desperate that we were no longer afraid to fail so we took a
longer afraid to fail so we took a
longer afraid to fail so we took a tremendous risk we bought the boarded-up
tremendous risk we bought the boarded-up
tremendous risk we bought the boarded-up building but the thing is when you want
building but the thing is when you want
building but the thing is when you want to buy a commercial building unless you
to buy a commercial building unless you
to buy a commercial building unless you got a lot of money in your jeans you
got a lot of money in your jeans you
got a lot of money in your jeans you generally need a loan and the thing that
generally need a loan and the thing that
generally need a loan and the thing that is really challenging about getting a
is really challenging about getting a
is really challenging about getting a loan is that you need to show proof of
loan is that you need to show proof of
loan is that you need to show proof of income that building had no legal
income that building had no legal
income that building had no legal tenants no tenants no income no income
tenants no tenants no income no income
tenants no tenants no income no income no loan so we compounded our risk we
no loan so we compounded our risk we
no loan so we compounded our risk we took a loan from the owner and we gave
took a loan from the owner and we gave
took a loan from the owner and we gave the owner of the building all of our
the owner of the building all of our
the owner of the building all of our existing assets and that at that point
existing assets and that at that point
existing assets and that at that point it was a beautiful character house six
it was a beautiful character house six
it was a beautiful character house six blocks away we gave him all of our
blocks away we gave him all of our
blocks away we gave him all of our existing assets as a down payment and
existing assets as a down payment and
existing assets as a down payment and then we did the one thing that the best
then we did the one thing that the best
then we did the one thing that the best investors will tell you never to do we
investors will tell you never to do we
investors will tell you never to do we overpaid because
overpaid because
overpaid because the land the landowner wanted his price
the land the landowner wanted his price
the land the landowner wanted his price which was more than the building is
which was more than the building is
which was more than the building is worth but we wanted our neighborhood
worth but we wanted our neighborhood
worth but we wanted our neighborhood back and at that point no price was too
back and at that point no price was too
back and at that point no price was too high well the good news is I’m here to
high well the good news is I’m here to
high well the good news is I’m here to tell you today a dozen years later it
tell you today a dozen years later it
tell you today a dozen years later it all worked out
all worked out
all worked out with tremendous support from the
with tremendous support from the
with tremendous support from the neighborhood and generous support from
neighborhood and generous support from
neighborhood and generous support from funders we stripped the building out and
funders we stripped the building out and
funders we stripped the building out and put it back together there’s now four
put it back together there’s now four
put it back together there’s now four units of affordable family housing
units of affordable family housing
units of affordable family housing upstairs for businesses in the
upstairs for businesses in the
upstairs for businesses in the commercial level and along the way we
commercial level and along the way we
commercial level and along the way we got enterprising because we own and
got enterprising because we own and
got enterprising because we own and operate two of those businesses
operate two of those businesses
operate two of those businesses ourselves through a subsidiary taxable
ourselves through a subsidiary taxable
ourselves through a subsidiary taxable corporation and the profits flow back
corporation and the profits flow back
corporation and the profits flow back into our charitable activities down the
into our charitable activities down the
into our charitable activities down the street a couple years later we
street a couple years later we
street a couple years later we identified another opportunity in this
identified another opportunity in this
identified another opportunity in this case a vacant lot couple blocks away
case a vacant lot couple blocks away
case a vacant lot couple blocks away there was collecting rubbish and you
there was collecting rubbish and you
there was collecting rubbish and you know on the odd bit of trouble it was a
know on the odd bit of trouble it was a
know on the odd bit of trouble it was a great opportunity but it was across the
great opportunity but it was across the
great opportunity but it was across the street from a row of beautiful character
street from a row of beautiful character
street from a row of beautiful character homes on Yukon Street for those who know
homes on Yukon Street for those who know
homes on Yukon Street for those who know it when the neighbors heard that we
it when the neighbors heard that we
it when the neighbors heard that we intended to put more affordable housing
intended to put more affordable housing
intended to put more affordable housing for families but on their beautiful
for families but on their beautiful
for families but on their beautiful Street they were horrified and some of
Street they were horrified and some of
Street they were horrified and some of them actually came to public hearing and
them actually came to public hearing and
them actually came to public hearing and spoke against the project to try to get
spoke against the project to try to get
spoke against the project to try to get it overturned if you can imagine they
it overturned if you can imagine they
it overturned if you can imagine they actually preferred vacant lot with
actually preferred vacant lot with
actually preferred vacant lot with rubbish piling up in it than affordable
rubbish piling up in it than affordable
rubbish piling up in it than affordable housing for families but that’s that
housing for families but that’s that
housing for families but that’s that fear of the unknown that I’m talking
fear of the unknown that I’m talking
fear of the unknown that I’m talking about right but we prevailed we built
about right but we prevailed we built
about right but we prevailed we built this beautiful six Plex of affordable
this beautiful six Plex of affordable
this beautiful six Plex of affordable family housing in 2008 and when you know
family housing in 2008 and when you know
family housing in 2008 and when you know we designed it in such a way that it
we designed it in such a way that it
we designed it in such a way that it actually mirrors and fits right in with
actually mirrors and fits right in with
actually mirrors and fits right in with beautiful homes across the street and
beautiful homes across the street and
beautiful homes across the street and when the funders came to cut the ribbon
when the funders came to cut the ribbon
when the funders came to cut the ribbon they had to ask which house is the new
they had to ask which house is the new
they had to ask which house is the new one because they couldn’t tell which one
one because they couldn’t tell which one
one because they couldn’t tell which one it was
it was
it was flash forward five years 2013 we
flash forward five years 2013 we
flash forward five years 2013 we identify another opportunity in this
identify another opportunity in this
identify another opportunity in this case you know it was a home that it
case you know it was a home that it
case you know it was a home that it wasn’t boarded up yet but it was an
wasn’t boarded up yet but it was an
wasn’t boarded up yet but it was an opportunity that was ripe for
opportunity that was ripe for
opportunity that was ripe for reinvestment let’s just say we did a lot
reinvestment let’s just say we did a lot
reinvestment let’s just say we did a lot of neighborhood consultation and buy a
of neighborhood consultation and buy a
of neighborhood consultation and buy a lot I mean
lot I mean
lot I mean half a dozen meetings anyways over a
half a dozen meetings anyways over a
half a dozen meetings anyways over a period of years really we envisioned
period of years really we envisioned
period of years really we envisioned ultimately because this was right
ultimately because this was right
ultimately because this was right adjacent to the core of our village just
adjacent to the core of our village just
adjacent to the core of our village just expanding our village a little bit in
expanding our village a little bit in
expanding our village a little bit in this case a mixed-use building with
this case a mixed-use building with
this case a mixed-use building with housing upstairs and commercial below
housing upstairs and commercial below
housing upstairs and commercial below and as we were getting ready to go to
and as we were getting ready to go to
and as we were getting ready to go to public hearing the most amazing thing
public hearing the most amazing thing
public hearing the most amazing thing happened last summer I was out for a
happened last summer I was out for a
happened last summer I was out for a walk I went into our cafe and I saw one
walk I went into our cafe and I saw one
walk I went into our cafe and I saw one of our tenants from this building having
of our tenants from this building having
of our tenants from this building having a drink with his neighbor
a drink with his neighbor
a drink with his neighbor did you catch that he was having a drink
did you catch that he was having a drink
did you catch that he was having a drink with his neighbor from across the street
with his neighbor from across the street
with his neighbor from across the street who eight years earlier had absolutely
who eight years earlier had absolutely
who eight years earlier had absolutely not wanted to have family housing in the
not wanted to have family housing in the
not wanted to have family housing in the vacant lot and so then our tenant
vacant lot and so then our tenant
vacant lot and so then our tenant introduced me to Harry and Harry
introduced me to Harry and Harry
introduced me to Harry and Harry confessed and told this story about how
confessed and told this story about how
confessed and told this story about how he and his wife had been so opposed to
he and his wife had been so opposed to
he and his wife had been so opposed to our project right up until they saw the
our project right up until they saw the
our project right up until they saw the beautiful families moving in and now
beautiful families moving in and now
beautiful families moving in and now they love those folks and I asked Harry
they love those folks and I asked Harry
they love those folks and I asked Harry if he would be willing to write an
if he would be willing to write an
if he would be willing to write an article for our neighborhood newspaper
article for our neighborhood newspaper
article for our neighborhood newspaper describing his experience and he did and
describing his experience and he did and
describing his experience and he did and there it is NIMH beetle Oso NIMBY of
there it is NIMH beetle Oso NIMBY of
there it is NIMH beetle Oso NIMBY of course for those who are not aware
course for those who are not aware
course for those who are not aware stands for not in my backyard in this
stands for not in my backyard in this
stands for not in my backyard in this case it was across the street so it’s
case it was across the street so it’s
case it was across the street so it’s more like in his front yard but even he
more like in his front yard but even he
more like in his front yard but even he admitted that he had been a NIMBY but
admitted that he had been a NIMBY but
admitted that he had been a NIMBY but that he had grown to love his new
that he had grown to love his new
that he had grown to love his new neighbors I also asked Harry if he’d be
neighbors I also asked Harry if he’d be
neighbors I also asked Harry if he’d be willing to come and talk at public
willing to come and talk at public
willing to come and talk at public hearing in support of our new project
hearing in support of our new project
hearing in support of our new project and he said he would and he did and so
and he said he would and he did and so
and he said he would and he did and so did dozens of other people as we were
did dozens of other people as we were
did dozens of other people as we were getting ready to go to public hearing we
getting ready to go to public hearing we
getting ready to go to public hearing we canvassed all the neighbors within 200
canvassed all the neighbors within 200
canvassed all the neighbors within 200 meters we got a hundred and sixty-five
meters we got a hundred and sixty-five
meters we got a hundred and sixty-five signatures on our petition and you can
signatures on our petition and you can
signatures on our petition and you can see there there’s a pretty good
see there there’s a pretty good
see there there’s a pretty good dispersion like almost everybody that we
dispersion like almost everybody that we
dispersion like almost everybody that we could find at home was willing to sign
could find at home was willing to sign
could find at home was willing to sign our our petition
our our petition
our our petition and so when we went to public hearing it
and so when we went to public hearing it
and so when we went to public hearing it passed unanimously but the most
passed unanimously but the most
passed unanimously but the most interesting thing about that evening was
interesting thing about that evening was
interesting thing about that evening was that the same night that we were
that the same night that we were
that the same night that we were successful a public hearing another
successful a public hearing another
successful a public hearing another proud
proud
proud in the next neighborhood village over
in the next neighborhood village over
in the next neighborhood village over got sent back to the drawing board and
got sent back to the drawing board and
got sent back to the drawing board and one of the counselors drew a very sharp
one of the counselors drew a very sharp
one of the counselors drew a very sharp contrast between our project and the
contrast between our project and the
contrast between our project and the other one he said our project would add
other one he said our project would add
other one he said our project would add character add vibrancy and build
character add vibrancy and build
character add vibrancy and build community and not potentially harm it
community and not potentially harm it
community and not potentially harm it like he thought the other project would
like he thought the other project would
like he thought the other project would so now you can see I’m no longer nervous
so now you can see I’m no longer nervous
so now you can see I’m no longer nervous on the tightrope I’m dancing because I
on the tightrope I’m dancing because I
on the tightrope I’m dancing because I know that if I tip too far either way
know that if I tip too far either way
know that if I tip too far either way that the community is going to put me
that the community is going to put me
that the community is going to put me back up straight I started out by saying
back up straight I started out by saying
back up straight I started out by saying that the negatives of Neighborhood
that the negatives of Neighborhood
that the negatives of Neighborhood Development are a loss of character a
Development are a loss of character a
Development are a loss of character a loss of affordable housing loss of
loss of affordable housing loss of
loss of affordable housing loss of commercial space and community conflict
commercial space and community conflict
commercial space and community conflict and it’s taken us a long time but I’m
and it’s taken us a long time but I’m
and it’s taken us a long time but I’m here to tell you that it’s possible to
here to tell you that it’s possible to
here to tell you that it’s possible to reinvent development we are building
reinvent development we are building
reinvent development we are building repairing you know adding new buildings
repairing you know adding new buildings
repairing you know adding new buildings that are completely in character with
that are completely in character with
that are completely in character with the surrounding neighborhood we’re
the surrounding neighborhood we’re
the surrounding neighborhood we’re building affordable housing we’re adding
building affordable housing we’re adding
building affordable housing we’re adding commercial space where possible through
commercial space where possible through
commercial space where possible through mixed-use development and we’re doing it
mixed-use development and we’re doing it
mixed-use development and we’re doing it all after 12 years with tremendous
all after 12 years with tremendous
all after 12 years with tremendous community support that’s how we’ve
community support that’s how we’ve
community support that’s how we’ve reinvented development in our
reinvented development in our
reinvented development in our neighborhood thank you
neighborhood thank you
neighborhood thank you [Applause]
”
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