A movement is underfoot.
Typically, local governments seek out large, well-funded companies to plan and develop urban real estate projects. Large developers have access to bank loans and cash, are typically offered tax incentives, and target efforts towards neighborhoods that yield high revenue returns for themselves. These developers are unlikely to be residents of the community, city, or state, unlikely to use local resources or labor, and are generally unresponsive to the needs of community. This means locals typically have little say in what types of housing and businesses come into their neighborhoods and reap very few of the financial benefits. Resident-led incremental development does the opposite. It puts real estate development in the hands of everyday people, those who love the neighborhoods in which they live.
The Opportunity
The long-standing economic, commercial, and housing challenges in Gary are well-documented. As detailed in its 2019 Comprehensive Plan, “Commercial activity, stagnant for decades, has left Gary’s most prominent corridors blighted. Retail, dining, and commerce is relegated to several small nodes, a few strip malls, and one- to two-block stretches along Broadway, Grant Street, Lake Street, 5th Avenue, 25th Avenue, and Ridge Road. Occupied commercial buildings are largely overwhelmed by neighboring vacant and abandoned properties. Blight even persists in the most densely occupied commercial areas along Grant Street, Broadway, and Lake Street.” [Data Source: 2019 Comprehensive Plan, Chapter 5, page 44]
Regarding residential, “The vast majority of the city is composed of single-family residential neighborhoods. Most of Gary’s housing is single-family homes built in the early to mid-20th century, accompanied by a mixture of multi-family duplexes and larger apartment buildings” The median age of a home in Gary is 64 years, as compared with a U.S. average of 41 years. The largest percentage of homes, 25.3%, were built between 1950 and 1959, with the median year for all homes built being 1955. Only 11.5% of homes have been built since 1980. [Data Source: Bestplaces.net]
Because of Gary’s geographic location, natural resources, well-designed development patterns, and vacant, affordable land, the flexibility and creativity afforded by repurposing one-in-five Gary properties can provide great value as we plan a more viable future. With local, small developers leading the way, Gary can be reborn within its current footprint as a sustainable, green, walkable city with quality housing, thriving neighborhoods and responsive businesses. Because small developers often have limited financial and social capital, an incremental development approach will allow for the measured transformation of neighborhoods with affordable, small scale real estate projects.
Expected Outcomes
As the Northern Indiana Commuter Transportation District’s Double Track NWI Project opens the door to new residential and commercial development in Gary, it also invites a conversation about how to redevelop parcels within transit districts that are not suitable for assembly and large-scale projects. This is not an issue for the City of Gary alone. Many of these and other parcels around the city are owned by residents who either don’t know how to capitalize on their purchases, or don’t have the resources to develop them.
To this end, StartUP Gary proposes to organize and manage an ecosystem of planners, small-scale developers, rehabbers, tradespeople, laborers, and lenders who will work independently, and in harmony, to renovate and build affordable single and multi-unit houses, cohousing, small apartment buildings, simple mixed-use structures, and small commercial buildings on sites across Gary. Small-scale incremental development was how Gary’s neighborhoods were built; lot-by-lot infill is a way to rebuild for the mutual benefit of all.
We will partner with the City of Gary to establish development patterns and approve designs that match the historic character of neighborhoods. Within these neighborhoods, we will help small developers carve out blocks for farming, the process of acquiring blighted properties and vacant lots on one or more adjacent blocks to cluster development. With less blight and fewer tax delinquent lots weighing down the value of new development, the appraised value of all neighboring properties will rise.
Regarding funding and financing, we will look to foundations and financial institutions to sponsor seminars, trainings, and certifications. For contractors and developers, we will also seek grants, grant subsidies, gap funding, and favorable interest rate loans that we can tie to certification. For buyers, we seek favorable interest rates, down payment assistance and mortgage assistance products that make properties more affordable. Properties will only be sold to owner-occupants, and first-time buyers will be required to complete a home ownership course.
This initiative will also open opportunities for skilled tradespeople to become licensed contractors who create local long-term employment for residents. In addition to providing business support, we will establish partnerships with workforce development organizations and trade unions to deepen our local talent pool. More licensed contractors and skilled tradespeople will exponentially grow the community’s capacity to plan and build developments across the city.
This initiative is not a quick fix for that which ails Gary. While growth is necessary to reverse decades of decline, this will be measured growth orchestrated by and for people who love their city and will do what it takes to improve aesthetics, pride of place, and quality of life. Inclusivity is the key to sustainability. As new construction begins to stabilize neighborhoods all around Gary, local commercial corridors will come back to life. Along the way, we will track and measure year-over-year increases in housing units, home and business ownership, average home prices, and population growth. Higher property tax revenues should also result in better amenities, services, and safety improvements for all.
For more information, reach out!
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