by Bill Murphy, Middletown Economic Director

In Amsterdam and Rotterdam (the two cities we visited), it was interesting to see their laser-like focus on economic diversification. Both Amsterdam Rotterdam had lost significant manufacturing-related jobs over the past 30 years. One very interesting example in Amsterdam was the Westergasfabirek complex. It was a coal to gas facility that was abandoned when natural gas was discovered in the North Sea (which left the facility obsolete because it was much cheaper to import natural gas than to extract it from coal). The complex has been turned into a mixed-use facility that provides space for restaurant and bars as well as exhibition space for events and trade shows.



In Rotterdam, we toured the Van Nelle Design Factory. It was formerly a coffee and tobacco factory that has been turned into office space for corporate and creative companies (design, graphic arts, marketing, etc). The facility had to maintain certain architectural standards based on its former use but has been able to achieve about 90% occupancy.



It was interesting to see the role the Dutch government and the European Union play in providing financial assistance to these projects. As interesting, was the fact that because there is limited available land for development (very densely populated), they don’t have a lot of options but to reuse old buildings.

 
The Dutch also were much longer term in the approach to their economic development projects. One example is the Zuidas business district in south Amsterdam. This redevelopment project will provide a mixed use development on top of infrastructure (highway, light rail, heavy rail and utilities). The project is happening as a public-private partnership. The Dutch Ministry of Finance and the City of Amsterdam will each take a 20% stake in the project with the other 60% being offered to private developers with the expertise and dedication to make the project happen. What helps to reinforce this long-term approach to development / redevelopment is the Dutch approach to land: land is not sold to individuals rights to build on it are (leaseholds). (I’m not a land-use attorney but I think I accurately conveyed that!) In this case, the Zuidas Company, a public-private company, distributes leaseholds on a number of plots. While the term of the leasehold is open-ended, payment of the leasehold fees will have to be made per a 50-year period in advance.

The Towne Mall is another issue all together. We are first going to try and work with CBL (the owners of the mall) on a redevelopment. With Dillard’s leaving it gives some flexibility to CBL that they didn’t have prior to the announcement. You may know that the anchor tenants own their buildings and associated parking. We have engaged Property Advisors on a retail recruitment strategy that we believe demonstrates a favorable environment for additional retail at I-75/122. Warren County in fact partnered with us to pay for the study and will be working with us at the International Council of Shopping Centers conference to “tell” our story. We have added an additional section to our website about our retail strategy (www.cityofmiddletown.org/retail).