INVEST IN A GREAT PLACE FOR PROSPERITY A Proven Economic Development Strategy for Cities & Towns
by Ed McMahon Chair , National Main Street Center Board of Directors
In 2019 , Amazon announced the location of its second global headquarters : HQ2 . It would be split between Crystal City , Virginia , and Long Island City , New York : both walkable , urban neighborhoods , one in Metro DC , the other in Metro New York City . New York later withdrew its approval , so Virginia ended up with the big prize . Almost 240 cities bid for the headquarters , offering as much as $ 8 billion in economic incentives , but in the end , it all came down to one criterion : the ability to attract and retain highly trained workers .
Both Metro DC and NYC have highly educated populations , access to international airports and functioning mass transit systems . Moreover , they both have the kind of walkable , mixed-use environments that attract young , talented workers .
While the economic environment has changed dramatically since the search for HQ2 , the lessons learned for the cities that weren ’ t chosen and for the countless others that could never compete for the likes of an Amazon still apply . As downtowns rebuild local economies in the wake of COVID-19 , it will be tempting to chase big businesses and look for one significant fix . But the lesson for cities , especially smaller cities and towns hoping to attract top talent , is that instead of chasing the next Amazon , they should focus on building a great place . There is nothing wrong with pursuing an economic development homerun , but most cities will never succeed in attracting the equivalent of an Amazon headquarters . What ’ s more , the strategy of throwing money at big business is unrealistic for most cities and towns . So , what will work ?
We believe the Main Street Approach , which leverages a community ’ s historic assets and unique sense of place to generate jobs and businesses , is the way forward . Over the past 25 years , the Main Street Approach to revitalization has a record of creating new jobs and businesses across the country , while also rehabilitating historic buildings and revitalizing thousands of commercial corridors . Since its inception , Main Street communities have seen $ 85 billion in new investment , rehabilitated 295,000 buildings , and created 672,333 net new jobs . What ’ s more , every $ 1 of public money invested in Main Street communities has leveraged over $ 30 of private investment . This is economic development as if return on investment mattered .
The Power of Small
Despite its enormous record of success , Main Street programs receive relatively little public funding or acknowledgment from policy makers and traditional
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