Linkage + Complexity

Today's Post has a piece, "Nationals' Events in Maryland Anger D.C.: Locations Offend District Officials," where DC officials complain that the Washington Nationals are celebrating the opening of the stadium with a high-pricetag event in Maryland, so that DC isn't benefiting.

More and more I have been thinking about direct linkage vs. what we might think of as "trickle-down" effects and hoping for the best.

If you want big projects to catalyze benefit beyond the project area, in order to make it happen, you're going to have to create and direct linkage projects and programs designed to realize the desired changes. Otherwise it can take years, even decades, or never to get the kind of impact that you want, and hope will trickle down.

It seems that obligation and appreciation would make the benefitees of municipal largesse spend money within the city, but no... Therefore, require it in the contract. (Similarly, if a benefitee of millions of dollars of city monies over the years, the Children's Museum, leaves the city, make sure you have recapture provisions in all your contracts, instead of letting them spend money earned off DC Government in Prince George's County, Maryland.)

For example, I have been meaning to write, once again, about the MCI Center, especially because it was featured in a big front page piece in the Washington Times a couple weeks ago, see "Change on the Verizon."

The MCI Center was but one factor of many in improving the East End. It is an example of layering or the positive agglomeration impact of having multiple things to do and see and visit in an area. To say that it was "the one thing" that improved that area is a major stretch. Especially given the dissipation of developable land inventory in the central portion of the Central Business District and the ongoing high demand for space.

But speaking of linkage, one problem with newer developments is that more and more they are focused on capturing 100% of the consumer dollar. Walmart is a good example of this. They don't want to be an anchor of a district, Walmart wants to capture all of your wallet...

Similarly, rather than "let" event goers spend money on food and drink in area establishments, Abe Pollin made sure that sporting events are scheduled at 7 pm, too soon after work for people to be able to have a leisurly dinner elsewhere, instead they have to rush to the Arena, and spend their money on food there too.

Most nights, after an event, people don't stay out late, except for Fridays and Saturdays, because they have to go to work the next day. Much of the activity on 7th Street NW is generated by the other attractions/destinations in the area, plus the increasing number of housing units and therefore residents, in the East End-Chinatown-Penn Quarter-Mount Vernon Triangle-Mount Vernon-NoMa neighborhood. (I'm not sure what to call it.)

I bring this up because the Washington Business Journal has a piece about how the local music production company IMP has sent an unsolicited offer to Montgomery County vis-a-vis the deal they are pursuing with Live Nation. See "Owner of 9:30 Club ready to battle Live Nation over Silver Spring night spot."

In the end, MontCo needs to think long and hard about the total cost and total value of the respective offers. It's likely that the IMP offer will provide more value and more return, because IMP is wedded to place (increasingly capital is place-less). In the end, Live Nation goes to wherever the return is highest, with little loyalty to any particular place.