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Sun, The (Lowell, MA)

February 9, 2007
Section: Local

News

Biz leaders brainstorm on downtown growth
HILLARY CHABOT, Sun Statehouse Bureau

BOSTON -- Downtown Lowell is not what you'd call a shopping destination. While city officials have worked to convince new residents to live downtown and have cultivated a healthy crop of restaurants, quality retail stores are scarce.

Adam Baacke, Lowell's deputy director in charge of economic development, hopes to see that change.

"We're trying to build a strong residential market immediately proximate to our downtown," Baacke said. "As cities change their function from being the economic center of the region, the downtown needs to find a new identity."

Baacke joined more than 100 officials from cities and towns across the state yesterday to discuss the weak downtown economies of many middle cities.

The Pioneer Institute, an independent think tank, studied 14 cities that have populations of more than 40,000 people but dwell outside the Greater Boston area.

The cities are struggling to boost their local economy as they make peace with their formerly bustling industrial history. They often face higher-than-average crime rates, dropout rates and fiscal instability.

"It's great to hear we're not the only ones facing these challenges," said Russell Smith, executive director of the Lowell Small Business Assistance Center.

Lowell residents fall well below the state's $26,000 average per-capita income at about $18,000 a year. The city also has a 6.3 percent unemployment rate compared to the state average of 4.5 percent.

Middle cities received the bulk of state aid at $1.5 billion last year, said Jim Stergios, director of the Pioneer Institute.

"There are huge expenditures going to middle cities, and I'm wondering if there is a way to use the money more effectively," Stergios said.

Lowell, along with other midsized cities, could stimulate its local economy further if additional state funds are promised for tangible results, Stergios said.

The state would invest more in the communities as they make improvements in children's test scores, reducing crime, and managing their local finances.

Officials should also make sure to diversify their economic bases along with encouraging businesses created by the large immigrant populations already present, Baacke said.

While Lowell may not be a perfect community, it has several positive factors sparking development, such as the work-force training offered by UMass Lowell. Baacke also cited the downtown venture fund as a clear investment in the local economy.