TRANSFORMATION

REMOVE

Bad Landlords From The Neighborhood

ELDI has purchased, sometimes over market value, properties that were owned by absentee or careless landlords, particularly if in a critical area. Sometimes you simply have to “own the problem” when no amount of 911 calls or letters to the landlord will do the trick.

Invest In Good Neighbors

Good neighbors are often long-time neighbors who have endured through the good and bad times. Programs for facade improvements, low-interest loans for new roofs, and/or connections to nonprofits that provide home improvements and supportive services are critical.

MAINTAIN LAND THAT IS VACANT AND ABANDONED, SO IT IS CLEAN, GREEN, AND READY FOR THE FUTURE

Neighborhoods with high volumes of vacant land need to be maintained just like any other neighborhood. The grass needs to be cut and the litter needs to be cleaned up to begin to create a vision for a brighter future.

Crime Is A Real Estate Problem

According to crime “hotspot” theory, a very small percentage of physical addresses in a neighborhood are often responsible for a disproportionate amount of criminal activity. Therefore, crime is a real estate problem that can be addressed through acquisition and management.

4— EARLY, FIRST-IN SEED CAPITAL IS KEY

BUILD INCREMENTALLY WITHIN THE COMMUNITY’S VISION

The 1999 East Liberty Community Plan was followed closely over these past two decades, but not completely. Times change, technology changes, and people change. With public input, incremental changes to neighborhood plans have happened along the way— bike lanes and breweries being two small examples.

It is hard to over-emphasize the importance of flexible equity funds and their impact on enabling ELDI to sustain and accelerate transformation. These funds helped ELDI effectively manage the financial risk associated with real estate development.

MASTER DEVELOPMENT PLAN (NOT MASTER DEVELOPER)

Principles For Commercial Transformation

POOL OF FUNDS —

Target an area for an extended period of time

There are very few communities that can be transformed by one organization alone. Our experience is that it takes “all hands on deck.” It takes savvy, informed residents, politicians, preachers, donors, and developers each “staying in their lane” to bring the vision of the master plan to fruition.

DESIGN STANDARDS & LAND USE PLANNING

The “East Liberty Growth Fund” was an early intervention by multiple funders to kick-start and sustain small businesses in the community's commercial core through grants and low-interest loans.

VENTURE CAPITAL APPROACH

If it works support it, if not move on You’ve probably heard of throwing spaghetti on a wall to see if it sticks (meaning it’s ready to eat), and we’ve found the same is true for development. We’ve learned to separate wishful thinking about costly, unsuccessful projects and make objective decisions to stop, while at the same time, working to increase funds and support for successful ventures.

BUILD ON STRONG MARKET EDGES

This lesson runs a close second behind site control. Rebuilding a historic building in the midst of substantial blight is not the ideal path, no matter how beautiful the building. However, building on the strong edge of the neighborhood in a systematic way to ultimately connect with that beautiful building has a much greater likelihood of success.

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When neighborhoods are struggling with blight, they may think that "something is better than nothing" when it comes to a particular development. Tempting as this may be, it can quickly result in unattractive, outdated buildings or areas of prime real estate becoming unavailable for strategic future use. That's why it is critical to have a community-driven plan for land use and design standards that identify areas for everything from residential homes to parks and even green infrastructure.