Newark: The Present and Beyond Honors Seminar Professor Barr

Newark’s Economic History  Previous lectures have shown: –Economic forces: low transport costs, comparative advantage, agglomeration economies, technological skills and spillovers, a workforce with variety of skills created a robust Newark. –Economic forces and policy decisions caused Newark’s decline. These forces were both macro and micro in nature.

State of the City  Improvements/“Renaissance” –Population –Housing –Big Projects: NJPAC, Bears, Devils –Office Real Estate Prices –Reduced Crime

Downtown Real Estate  “Newark boasts one of the more remarkable stories. Once seen as an urban wasteland, the city has recently blossomed with new projects. Just last month, Matrix Development Group of Cranbury announced it will soon break ground on a $400 million mixed-use development called the Newark Riverfront Center. The project, one of the largest in the city, will feature a 14-story tower with 430,000 square feet of Class A office space, and 500 condo and rental units in four adjoining buildings. New Jersey law firm McCarter and English has signed for 230,000 square feet for its headquarters.”  -Crain's New York Business, October 17, 2005

Problems Still Remain  Unemployment  Poverty/Income  Education  Performance versus other cities.

Median Household Income

% of people below poverty line

% Unemployed

% of families with female head w. children in poverty

Framework for Economic Revitalization  Import vs. Export Economies –Newark is “net importer.” –Needs to be net exporter. –Needs to foster entrepreneurship and business ownership.  Jobs and Education: Matching capabilities with needs.  Expectations: Confidence for Future –Crime, Quality of life –Image and reputation

Urban Trade: Import versus Export  Import: when $ leaves local economy –Downtown firms employ suburbanites. –Jobs leave for other locations.  Export: when $ enters local economy –NJPAC and arena and tourism –Locally owned and operated businesses.

Newark in 21 st Century Task Force November 2000  Improve Newark’s Image –Clean up eyesores –Get the word out about good stuff  Newark and the regional economy –Private-public cooperation to foster development –Develop job skills of residents. –Residents must view city as part of larger region.

Task Force Cont.  Residents Need to Participate in Renaissance –Develop skill of residents to match job needs. –Construction work goes to local companies. –Business formation for minorities and immigrants.  School system –Citizen’s panel to monitor management. –New construction and resources. –Preschool.

Last Questions Where does urban America fit in in the American social and economic fabric? Do we want our cities to succeed? Do we see cities as a force of good or bad?