Will American Industry Step Up?

Lately, the President has brought forth a new effort to get people working again.  One of the more local public works jobs, which would really create jobs, is the rebuilding of the Brent Spence Bridge from Northern Kentucky to Cincinnati, Ohio.  Now, all we have to do is sell this idea to Congress.

Back in the day, Congressmen used to have "knock down - drag out" battles over which one would get a job creating (pork barrel) project like this.  Many of the projects were just to get jobs and not do anything else, but this will replace an aging structure which carries roughly twice the traffic it was designed to carry.  This is a real economic development project which will impact the entire region. Not only does this bridge connect Cincinnati with its southern half of the metro area, it holds Interstate 75 and Interstate 71.  I -75 is one of the most heavily traveled Interstates in the eastern half of the country.

The Brent Spence Bridge carries traffic flowing from Detroit to Miami, from Chicago to Atlanta and from New Orleans to Cleveland/Pittsburgh. That could easily be one fifth of all highway freight traffic in the eastern U.S.  Existing rail infrastructure will not allow the railroads to pick up the slack and the Ohio and Mississippi rivers are limited in just how far they can reach and the aging lock system.

Other Interstate bridges are beginning to show similar wear and tear, as evidenced by the Sherman Minton Bridge of I-64, from Louisville to Southern Indiana.

Why, in a time of high unemployment, should two of the most powerful members of Congress, Mitch McConnell and John Boehner, who just happen the represent the states on either side of this important highway link feel that pushing this project forward is wrong.  Is it because this is a public works project expected to cost billions?  Would it be due to the timing being under a Democratic president?  Both Brent Spence and Sherman Minton were Democratic Congressmen, so the Republicans cannot assist in their repair/replacement?

Maybe these types of construction projects should be funded by the folks who use them the most. Maybe time has come when we the American taxpayer should let the American consumer pay for Interstate repairs.  Have any of our American corporations (the ones sitting on well over $2 trillion in cash) come forward to pay for the infrastructure which allows their businesses to thrive?  The trucking industry and independent truckers pay hefty fuel taxes and usage fees in order to keep the goods rolling and private autos pay their fair share of gas taxes, yet the Federal Highway Trust Fund is still shrinking to the point that it cannot pay for all necessary repairs.  Clearly, there needs to be a better way.

As Rob Morris pointed out the other day in his new blog CivilMechanics,  jobs are created when there is a demand for goods or services.  He is dead on in his assessment this time.  The Interstate bridges are in disrepair, so there is a need.  Construction jobs are becoming very hard to come by, so there is a need.  Government funds will only add to the mounting deficit, so there is a need (to not add more debt).  People on both sides of the river still have to get to the jobs that they still have, so the need is there.

The needs are many and the funds are few, so when will American industry step up to the plate?

An Entertainment District Saturation Point?

For many years, we have followed the mantra of "build interesting retail and the folks will flock to it" in trying to rejuvenate our downtown.  It is not just here in Lexington but all across the country.  We did it when we built the Lexington Center and we are doing it today.  Build the retail and the people will come.

Back in the '60s, when we came to realize that our downtown was losing it luster, we tended to blame crime, outmoded buildings and the daily problems of traffic congestion (usually exacerbated by the railroad running through town).  Our solution was to partake of the new federal program of Urban Renewal and rid ourselves of the eyesores and trouble spots.  

First, the trains had to go.

Rail traffic was waning particularly passenger rail traffic.  1960 saw the fall of Union Station and eight years later the tracks were ripped up.  One of America's life giving arteries was bypassed with the Interstate and New Circle Rd. and the industries felt the need to be near the new artery.  Many special use buildings could not be re purposed and they fell into disrepair.  The activity and the vitality that they used to bring to the area simply ceased to be.

Then, getting into and out of town had to be made easier.

With the railroad gone, the former alignment became a prime location to east-bound part of a one-way couplet of streets to expedite traffic flow.  New Circle had been built to allow traffic to bypass downtown (especially for long haul trucks and cars) but now the new Main and Vine setup made it easier to get into and out of downtown proper.  It also made it easier to get through town and with little to stop for, that is what people did.

Downtown, the financial and legal center of Fayette County.

The area immediately around the (now old) Court House slowly evolved from businesses to banks and lawyer's offices.  The banks grew and grew, always moving into larger and larger buildings while the lawyers took space in whichever parts were not taken by others, as long as they were a short walk from the Courts.  Finding lunch which did not come from a lunch counter or a high end restaurant was a challenge. So much so, that I usually left downtown to get lunch and then get back.  Several building resorted to furnishing their own cafeterias for their staff, they were very much a wasted space for much of the day.

We'll build a focal point, a cultural focal point.

The early '70s found the University's Memorial Coliseum straining at the seams for every home basketball game.  Lexington needed a prime tenant for a new civic arena to which we could attract conventions and concerts.  On paper it made sense, so much sense that everyone else was doing it too.  We also had to allow plenty of space for the local retail to develop where they would take advantage of the increased foot traffic.  By eliminating the possibility of obnoxious or unsavory business in the area, folks would flock to this focal point in droves.  I think that we made our mistake when we removed the existing residential for parking and then refused to convert said parking to any retail use.  Take away your customer base and fail to build in services, what do you think will happen?  We ended up with a great place to play (and watch) basketball and little else.

National championships and sprucing up.

Lexington (and Rupp Arena) was one of the last of the smaller communities and arenas to be chosen for the NCAA Men's Basketball championships and in the early '80s there was a flurry of activity to get downtown ready for 1985.  We needed another downtown hotel and while we were at it some more office space, so we got started on the World Trade Center block and eventually the Festival Market building. 

The idea of festival markets was in full bloom at that time and many major cities wanted to have one.  Most of them were built to augment a local popular or natural feature so as to make it a focal point.  Ours was built AS the focal point to go along with Rupp Arena which, though well used, was being by-passed by many of the conventions and major concerts.  Retail shops on the first two floors and a food court on the third and an indoor carousel forced one to walk through the shops to get to the food and get back to work.  Conversely, the Quincy Market (one of the first) in Boston was set up just the opposite way.  The retail was overpriced and of such a mix that many failed to make it through the early years and eventually the whole place went under.

A little farther away on E. Main St., the World Coal Tower( a 50 story dream of Wallace Wilkinson) also failed and the City quickly stepped in to create a temporary park on the property and had dreams of building an Arts district around the Main and Lime intersection.  They acquired (with State help) and demolished some older retail buildings and then waited for the patrons on art to donate toward some magnificent project.  We are still waiting.

The NCAA Tournaments went well but nothing of such prominence has been held in Rupp since.

Events and festivals.

In the past decade or so, the focus has been on drawing the folks from the suburbs downtown, and especially on days when there is little else going on.  A downtown Farmer's Market on Saturdays or Second Sunday bike activities where one can park close to the action and then escape quickly.  It still forced those attending to drive to and from any event.

One bright spot has been the evolution of the Thursday Night Live series and the Gallery Hop Fridays.  Both events begin before most people leave downtown yet last long enough that others may join the fun once they get home from work. It also helps that more downtown residential has been built for those who want to live downtown, but units for folks who have children or need more than two bedrooms are in very short supply.  With more residential will come the demand for more retail and not the other ay around.

So, what now?

We have a new pavilion in Cheapside and a growing list of restaurants and bars along Main and Short streets. From Victorian Square to the Esplanade, just about all new retail is some sort of entertainment establishment and that may not be a good thing.  What is the saturation point for the downtown entertainment district?  How will we know that we have too many restaurants and bars?  Can we build a downtown on just an entertainment district or do we need other shops and services?  If we can get folks to live downtown, will they still  have to go to the malls to get simple needs other than food and drink?

Just last week, I heard that the Skybar may go the way of Bakers's 360 and for the same reasons.  But their place will be filled with the Parlay Social (a Prohibition lounge) and the Henry Clay Pub to be opened at 112 N. Upper St. (next door to Lexpark offices). 

Is there a saturation point?

 

Park(ing) Day Is Coming Up

This year I am getting ahead of this.  

I have written about this annual event before but always after the fact.

Park(ing) Day is scheduled for Friday, Sept. 16, 2011 and that is just over three weeks away.  Park(ing) Day is when you can take over a parking space for the day and turn it into your idea of useful urban space.  More information is available here as well as a downloadable license (pdf). 

I don't know that Lexington has participated in this annual event before but I cannot think that some of you folks will not try it sometime.  We have some very fine parks here in Lexington and many of you will probably agree that there is a large unused park right in the middle of town, but this is your chance to create your very own park for a day.

I would not go for placing one in the Hamburg Pavilion lot or even along Southland Drive.  Chevy Chase shopping center or Meadowthorpe seem like more appropriate candidates.  Downtown would give you the most exposure, but who wants to set up right on Vine St?

So, who wants to set an urban park in a parking slot for a day?  Let me know where yours is and I will try to get as many photos as I can and will post them here.

Get ready, Park(ing) Day is coming.

Are You Driving Less?

The New York Times is saying that we, as a nation, are driving less than we used to.  Here in Lexington, I am not sure that is the case.

The Times is basing its conclusion on the weekly gasoline report put out by MasterCard in what the call the Spending Pulse.  The gasoline report is one of several reports which look at the transactions gathered from around the country.

Demand for gasoline is down and, according to the report, falling rather steeply.  As of Aug. 19, the weekly demand is off 4.2% compared to a year ago and 0.8% compared to last week.  I don't think that it is due to high prices as the national averages there are declining also.  While up over last year, the prices have fallen 4 cents from the week before and the price for oil itself is falling recently.

America is consuming at least two million barrels of gas per week than we did last year.  Did we just quit taking our Sunday drives or are we driving more fuel efficient autos?  Did we stop driving to work or are we making more efficient trips when we do?  Lexington streets still look like they are clogged with traffic at the same times every day and it still take a while to get across town during rush hour, so are WE driving less or are others doing a better job than we are?

The Times concludes that, as an economic indicator, less gasoline pumped = fewer miles driven and economic activity has declined.I think the we have just decided to quit wasting so much of it and we are better off for it.

What do you say?  Are you driving less these days?

Some Of Today's Gleanings

Just a few things that we picked up this week.

As we all know, the W. Short Street corridor has become the hotbed of activity and dining lately and is the de facto heart of Lexington's entertainment these days.  The Fifth Third Pavilion has been a catalyst as well as the demolition of the CentrePointe block, and things are not done yet.

A new sign went up on the building at the corner of Short and Broadway announcing the anticipated opening of Shakespeare & Co.  While I have heard about this for almost a year, this is a little firmer indication of another fine dining experience in downtown.  Visiting the website menu really makes me wish that it was just a little closer to being open.

Shakespeare & Co. began in the Dubai, United Emirates in 2000 and has grown to nine in Dubai, several in Abu Dhabi as well as Syria, Qatar, Bahrain and other international locations.  On Monday, June 06, 2011, a U.S. federal trademark registration was filed for SHAKESPEARE AND COMPANY. This trademark is owned by  Edward T. Saad, and a mailing address of Lexington, KY 40507 and remodeling work has been ongoing for longer than that.  This will be another welcome addition to Lexington.

On the other end of the corridor we have the former site of Mia's which has also been undergoing some construction work.  The roll-off dumpster is gone and the facade has been painted, so something is going on.  I recently heard that a former chef from Bakers 360-the casualty of being at the top of a building and alienated from the street- is planning to open sometime this fall.  I am continuing to gather information.

Mia's, of course, took their revised concept across from the Soundbar on South Limestone and are joining the college crowd just in time for school to start.  Ole Hooker's Bait n Tackle Bar n Grille apparently has been working the kinks out over the summer and is now ready to roll.

Speaking of exciting corridors for new dining and entertainment, I cannot leave out what is happening on Jefferson St.  Stella's, Nick Ryan's and Wine + Market are now joined by the Apiary catering company (who also want to add a sit down restaurant) and a burger joint where Cuppa: used to be.  The Green Tavern is still doing well with the Transy. crowd but I hear that even bigger thing may be in the works.

In anticipation of the BCTCS campus being occupied soon, I hear that Alltech (the WEG sponsor) is looking to do something with the old Rainbo bakery building at the intersection of Sixth and Jefferson.  Some sort of adaptive mixed use which would include a restaurant and some retail.  The Coolavin Apts. may change to student housing and with the park right there(so is the Hope Center) there is certainly a way to bridge the railroad tracks so that they could get to school safely.  Alltech would be clearly looking ahead.

Several blocks away at Sixth and Lime, of course, is Al's Bar and if all of this takes place, just think of the trolley loop that could be created for a decent "pub crawl".

So, there you have it.  Any thoughts?

Welcome To The New Reality.

It has been a while since I have posted but there have been so many things going on.

The debate in Washington about the "crisis" of the long term debt problem has everyone quarreling about how one side has let the other down.  That there will be no let up in the demand that we live within our means, that continue to grow more and more meager everyday.

The TEA Party and many of the Republicans state that we are a nation of people who should be self reliant who will rebuild our nation from the ground up.  Very many of those same folks cannot even feed themselves should the grocery stores fail to receive their truckloads of supplies. 

The American people have become more and more reliant on the Highway Trust Fund (HFT) to finance the road infrastructure in America and that Fund is reliant on the Federal Gas Tax.  Our demands that our car get better gas mileage and that we keep fuel prices low, and especially, the demand that we NOT increase the gas tax, have rendered the HTF insufficient to repair, much less expand, the national road system.

Now we hear that most of the 18.4-cent tax per gallon of gasoline set to expire Sept. 30th.  That is at the end of the Federal fiscal year.  If the wrangling over extending this is as rancorous as the debt ceiling issue, we may not have a gas tax this time next year.  The individual states would have to enforce their own increases and allocate for their own highways.  50 different ways of calculating the fees, 50 different methods of collecting it and 50 versions of allocating toward transportation projects.  This could have a devastating effect on the trucking industry.

States which currently have a sparse population could see their highways wither away and become dirt roads.  Parts of states with larger cities (think of the area from Washington, DC. to Boston) may get their roads paved but the paths to other portions of the state may be just that - paths.  Lexington, Louisville, Bowling Green and Northern Ky could see all the road growth - or we could actually see regional rail.

But what if we followed the lead of Mitch and Rand and did not raise the fuel taxes in any way?  The Federal government could then no longer help us, nor could the State.  Each individual would have to fend for themselves. Rugged individualism would have to be instilled in all of us.  Can't you just see it now, Mad Max right here in Central Kentucky?  No, somehow I think that we would all have to cooperate and pull together.

Melissa Lafsky has it right when she says that "our inability to raise the gas tax is at the heart of our economic decline" . We want to cut taxes on all the wrong things.  We only tax about 60% of the total tax base and that is leaving a lot of cash on the table. 

Today, the City of Williamstown granted tax breaks to the creationist theme park to the tune of 75% over thirty years in addition to the $40 million in incentives from the State.  If this project is not good enough to go it alone, then why do it at all?  I'm just saying that that is a lot of money for something which may be dated and faded in 30 years, then need new incentives to "freshen" it up - or replace it.

The hard liners on not raising taxes are adamant that they will not inflict higher taxes on corporations.  The same corporations who are sitting on $2.5 trillion in liquid cash and not expanding or hiring because they don't have local customers.  Those local customers are not showing demand for products because unemployed(or underemployed) folks cannot pay for stuff.  Nor can they borrow the funds to pay for things.

So, the final results are, private industry will not create jobs, the Government is not allowed to create jobs, the gas tax will not pay for transportation construction jobs, the social safety net jobs will be reduced and our rugged individuals will rebuild America. 

Welcome to the new reality.

Are We Really No. 6

So, Kiplinger's has sent a reporter to Lexington - or better yet, a Senior Associate Editor -  and soaked up the essence that makes Lexington a No. 6 city for best value as a place to live. I am glad that they focus their magazine on finances because they missed it on geography.  Lexington is NOT a Northern Kentucky city.  We, and our metro area are very definitely Central Kentucky, North Central, but very Central Ky.

I don't know how long this editor stayed in town but I will wager that she was escorted around by a member of Commerce Lexington.  She has the wording of the advertising brochures down pat.  The part about keeping the small-town feel while believing that we are the center of the horse farm world, the basketball world, the Southern charm world and just about any other world that you could think of.  Don't get me wrong, we have an impact in all of them but we do not drive what happens in those worlds, we just go with the flow.

Healthcare and the new expanded hospital is a good thing and the University is the largest employer, but the divide between the professionals and the rest of our "diversified" work force is very stark.  A few haves and many have-nots exist side by side here in Lexington, and a few more have-nots every day.  Lexmark, though a major company, is not a huge local employer.

Her comments on physical growth and the self imposed limitations on Fayette County's rural lots sizes do not reflect the thoughts of home buyers, as the cost of real estate here is higher but when averaged with the rest of the metro area will become affordable.  Such affordable housing is much harder to find in Lexington proper.

She also implies that the city is buying pastureland, but the PDR is only buying the development right of said pastureland ( from the folks who would not be allowed to develop it in the first place).

She describes downtown fairly accurately and notes some of the successes and hopes for the future, although her characterizations of the events at Cheapside only point out how few and seldom that they occur.  I still feel that any private group should be able to rent the facility for a fund raiser or get together along the same lines as renting a park shelter in some of the parks.  We should not believe that all functions are to supplied by the city.

Her housing costs appear to be solely for Lexington and not for the rest of the metro area and as someone who has looked for a place with FOUR bedrooms and a family of 4-5, such places are very hard to find in that limited range.  Not all households are young professionals or retired couples but the small family types who WANT to live downtown are priced out of the market.

"Why its fun"  We have Keeneland and the University of Kentucky Wildcats basketball to cheer for.  Keeneland for six weeks a year and basketball for 3 months (if you can get a ticket) and each event totals about 23,000 souls at a time.  UK football boasts nearly 2.5 times that number but only 8 times a year. From there, when you take away the dining and drinking around town, most folks find that there is precious little that is affordable to hold their interest.

Lastly, to the mayors comment "wears itself like a loose jacket, it’s not so sophisticated that it’s predictable. We’re not pretending to be something we’re not.”.  We may not be sophisticated but we are predictable and we are ALL pretending to be that which we are not.  Some pretending downward and some pretending upward, but pretending just the same.

The Property That Southland Didn't Take

I heard today of another investigation into the possible uses of the old Todd's Trace Apartments, or what is now known as the Pennington Place dump.  This would make about the fifth time that someone has asked about the property and what could be done to redevelop it.

Since it has been basically abandoned for several years now, all the apartments have been broken into and at least two complete buildings destroyed by fire, there is no way that it could be rehabbed and the only solution is to start with a clean slate.

I have given my thoughts on how the area should have been redeveloped when I wrote this back in January.  Unfortunately the church is proceeding with its plan and there is not another large religious entity set to do something similar.  I also do not want another large piece of tax revenue generating property to be designated as tax-free as long as our city needs the funds as the do.  No, somebody rally has to make this a viable development for both the city's and their sake.

What makes this so tough to work with is the lack of easy access to the major roadways.  I still think that, at some point, the dependance on the personal automobile will be removed and since this location is at the intersection of two main roads and it is a straight shot to downtown, some sort of mass transit will suffice for most new urbanists who may live that far out.

Still, today's urban developers are not that forward looking and a quicker access is desired in order to work a deal. The property is hemmed in by two, less than stellar areas, the business along Woodhill and the declining neighborhood of duplexes and townhomes with a growing reputation for crime, and a successful shopping area on Richmond Rd. Residential, and especially up-scale residential, without a different orientation and access would be a hard sell in this location.

So many of late seem to think that the current design process for the CentrePointe block will bring about a winning solution and a certain Herald-Leader columnist and blogger believes that we should apply a similar  one to the Lexington Center redesign, so should we get the mayor involved and do something here?  How about some suggestions from you, my readers. 

What would you place in this difficult redevelopment area?  Remember, the church took a similar sized chunk of apparently unneeded commercial land so a shopping center may not be viewed as possible.  The French Quarter hotel works, but do we need another series of lodging units, either extended stay or otherwise?  Give me your ideas and I will post them and send them on to the mayor.

First The Trains, Then The Planes, Then The Roads?

Back in August of 2009, I wrote a piece about a little known Federal program called the Essential Air Service in which the government reimburses major airlines to serve smaller rural communities.  This year it runs to the tune of nearly $200 million and still our air carriers claim that they cannot make any money.  Today, Delta Air Lines announced that it “can no longer afford” to serve 24 of the rural airports that they picked up in the merger with Northwest Airlines.

From what I can gather, it is not all about the corporate decisions to leave folks high and dry but the "style" in which these passengers desire plays a factor.  Everybody, I guess, wishes that their airport be a modern and useful airfield, with the latest in air comfort and speed, but when you cannot fill the existing seats of the propeller type planes - then you will not fill a larger regional JET.  Nor can you fly to the 29 major hubs from just Anyplace, USA and expect to get good slots in the landing pattern.

The Essential Air Service subsidies are slated to expire in 2013 unless Congress decides to extend them but in this current fiscal state I would not hold my breath on that. The current Republican strategy is to cut out anything that does not help corporations but may do some good for the common man.  The highways that we cannot maintain will have to do for these 24 cities and probably a similar number next year - and the year after.

This is also just one decision made by one airline, how many more will be coming in the days ahead?  Deregulation was supposed to free up the airline industry to be responsive to the market demands and to foster more competitive scheduling and pricing.  The Essential Air Service subsidies were to equalize the opportunities for the rural cities which could not run with the big dogs, but also could not stay on the porch.  If things continue as they have in the past five years, even the big dogs may not be running like they have been.

Many of these small cities got a big boost from the railroad systems and some of them owe it all to the railroads. These railroads brought life into a lot of places in the expanding western territories.  For years they were THE way for people to come and go for long distance travel..  The automobile and the airplane helped bring those days to an end, so what is expected when these modes are no longer economically viable?  When the rural areas no longer have air service and the states and federal government can no longer build and maintain the roads.  What will we have then?

Other countries are considering (and building) systems of high speed rail with feeder routes of more moderate speed which connect to the more rural communities there.  Somehow, that doesn't fit in with our concept of a modern world...    yet.

A Cowshare- Business As Usual?

The cowshare program to which I belong is having a bit of difficulty lately.

The whole thing dates back to when the health authorities in Ohio and Kentucky along with their Federal counterparts began harassing the farmer for delivering what the cow owners were expecting, just plain, raw milk.  

Cowshares work a little differently from a normal dairy whereas the farmer sells shares of his cows to a group of people.  Very much like a syndicate would own a race horse or other property.  They then pay for the maintenance and care of the property and receive a dividend of the product which results.  For a racehorse that would be a share of the purses won but in dairy cows it would be the milk produced.  That is produced daily.  For me, my two shares result in two gallons every week  Sometimes it is sufficient, sometimes it is too much.

Our farmer is an Anabaptist from Mississippi who raises cow and other farm animals for the simple joy of producing the highest and best quality food that people can buy.  To him, farming is not a business where the bottom line is profit or loss, it is a living where he can work hard, provide for his family and others and do what the Creator put us here to do.

This mindset and philosophy runs contrary to the general direction of the world today and that is where the cowshare program begins to have difficulty.  Several years ago, when they were located in Northern Kentucky and the harassment took place, our local agencies sought to remove this type of program and/or force it to be like all the other agri-businesses.  Despite all the talk of the movement toward locally grown food or the organic foods movement, the state and federal governments only want them to conform to the big business model.  Our farmer was forced to sell the existing farm(at a loss), file bankruptcy, move the herd and establish themselves on a leased farm.  In effect, to start over.

Again, our farmer (and we of the cowshare program by extension) are being forced to look for a new location.  A location where the farmer can put down roots and continue to provide the nutritious food that we members want and expect.  This is whee it becomes real difficult.  Because of the current financial situation, banks are not willing to lend to farmers who are not really operating as a business, the ones just getting by but still paying the bills.  Trying to operate within such a narrow, confining box is proving very difficult for us all.

Our farmer reminds me of a Mennonite, although I guess that he could be called a "Mennonite Lite" as he drives a truck and they do use the Internet, and the way they approach farming is somewhat reminiscent of the Amish.

I actually learned today that the Amish population in America is growing (10%) and growing even better in Kentucky (15%) in the last two years.  Studies reveal that new Amish settlements are established about once every three weeks.  The states of Pennsylvania, Ohio and Delaware which are usually known for their Amish communities are actually losing out to states like Kentucky and New York.  The truly unfortunate part of the foregoing information is that roughly only 10% of the Amish today receive their primary income from farming.

Might they be another example of how our big business before farming attitude is eroding the country?