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    Southward, Grow!

    Creating One Dallas, World Class

    Southern Dallas is not a charity case. It is an opportunity. -Mayor Mike Rawlings

    By: Chequan A. Lewis

    Winter Term in the Office the Mayor of Dallas

    January 2012

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    Southward, Grow!

    Creating One Dallas, World Class

    In 1839, a man named John Neely Bryan set foot on the land that would one day

    become Dallas, Texas.1

    Officially incorporated as a town in 1836, Dallas grew into an

    attractive location for businesses and southerners in search of opportunity over the next

    few decades.2 By 1890, Dallas began to show signs of its now-trademark aggressive growth

    personality as it began annexing surrounding areas.3 Over the next century and a quarter,

    that ambitious personality resulted in a sort of civic schizophrenia: the dueling destinies of

    Dallas.

    I use the term dueling destinies to capture an unfortunate truth about the place I

    love. At this point, Dallas is really two cities (one north and one south) separated by the

    Trinity River. Northern Dallas is a shining beacon of light replete with booming businesses,

    population growth, and a diverse housing stock. In this Dallas, median incomes continue to

    soar, educational opportunities abound, and employment prospects are high. But there is a

    very different Dallas that looms to the south. Southern Dallas is largely forgotten and

    underdeveloped. In thatDallas, there is an eye-popping unemployment rate, schools are

    struggling, and massive tracts of land remain undeveloped.

    Dallas began as a promising novel. With a bright beginning and energized early

    chapters, the city seemed destined for a limitless horizon. Somewhere along the way Dallas

    got trapped in its own tale of two cities. Increased disparities in wealth, educational

    attainment level, and health characterize this seemingly interminable chapter. It is time to

    1 From the archives of the Dallas Historical Society.http://www.dallashistory.org/history/dallas/dallas_history.htm2See id.3See id.

    http://www.dallashistory.org/history/dallas/dallas_history.htmhttp://www.dallashistory.org/history/dallas/dallas_history.htmhttp://www.dallashistory.org/history/dallas/dallas_history.htm
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    turn the page in Dallas and write a new chapter. That horizon for which Dallas seemed

    destined is still attainable. Yet, this can only be true if the Dallas dream is made available

    to all of its residents. One word best characterizes the citys ambition: growth. It is high

    time that this word finally includes the citys southern rim. If Dallas will ever realize her full

    potential, she must grow southward. Only then can she create a unified, world-class city.

    What is Southern Dallas?

    The part of the city to which this paper refers has been called many things over the

    years: Sunny South Dallas, the Southside, Southern Dallas, the Southern Rim, or the

    Southern Sector. No matter the moniker, the geographic area under discussion remains

    mostly the same. As depicted in the map below, Southern Dallas is the area south of

    Interstate 30 out to the city limits bounded on the east by Interstate 635 (all of which is

    south of the Trinity River).

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    The Story of Southern Dallas: By the Numbers and Beyond

    Southern Dallas is home to more than 516,000 residents. It is an area

    overwhelmingly populated by people of color- 50.77% of residents are Hispanic, 37.58%

    are Black/African-American, and 10.08% are White.4 Southern Dallas residents have a

    median income of $37,228 (compare with a statewide figure of $48,259) and less than 10%

    of them have attained a bachelors degree or higher (compare with a statewide figure of

    roughly 25%).5 This area contains 154,551 households6, 45% of which are renter-occupied

    (compare this with a statewide figure of only 35% renter-occupied)7. More than 85% of all

    Dallas vacant residential tracts are in Southern Dallas.8

    Sitting on 196.63 square miles, Southern Dallas is large enough to contain all of

    Atlanta-proper, it is twice as large as Seattle, and it would be the 34th largest city in

    America. As massive as this area may be in size, its economic contributions to the city are

    noticeably tiny. Southern Dallas represents roughly 54% of Dallas landmass and around

    40% of the citys population, but only about 12-15% of the citys tax base.9 These figures

    obviously suggest that Southern Dallas is being effectively carried by the rest of the city.

    In the minds of many, this has relegated this part of the city to second-class status- as if

    Southern Dallas is the poor, annoying little brother who cannot hold his own.

    All is not lost for Southern Dallas, however. In a city that is completely landlocked by

    thriving suburbs, this area houses more than 70% of the citys developable land. This

    means that businesses looking to come inside the city limits to enjoy business-friendly

    4Overview of Southern Dallas (2007). Pg. 4. Presentation by State Senator Royce West (D-Dallas).5Id. Pg. 15.6 Interim Team Report(2009). Pg. 75. Mayors Southern Dallas Task Force.7Overview of Southern Dallas. Pg. 5.8Id. Pg. 8.9Reinvesting in Dallas Southern Sector(1997). McKinsey pro bono study for Mayor Ron Kirk.

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    policies put in place by former mayors must look to Southern Dallas as their potential

    home. The same story goes for the scores of Dallas-based companies that have outgrown

    their current digs.

    A Look in the Mirror

    The Citys Office of Economic Development (OED) recently conducted a SWOT

    analysis (below)10-- a method of assessing the current state of an area and identifying the

    potential that exists for improvement- of Southern Dallas. A SWOT analysis examines the

    strengths, weaknesses, opportunities, and threats in a given area. OEDs assessment paints

    an honest picture of the good, bad, ugly, [and promising] in Southern Dallas.

    Strengths

    - Land prices and availability- Transportation network- Strong business nodes- Workforce- Proximity to high employment areas

    (e.g. downtown)- Higher education system (area

    colleges)

    - Mega churches- Existing, fast growing businesses as

    models- Dallas Executive Airport- Natural beauty- Magnet Schools- Diversity

    Weaknesses

    - Image and perception- No advocates for small business- Crime/security- Access to capital- Shortage of equity- Purchasing power- Lack information about resources- Individuals do not use the resources

    they have- Code compliance- Lower incomes- Undeveloped road systems in Inland

    Port- Lack of neighborhood retail- Lack of vocational training- Lack of financial literacy training- Little understanding of positive

    submarketsOpportunities

    - Enterprise zone incentives- Awareness of growth action items- More bank involvement with

    Corporate Realty Advisors- Return on investment- Develop a Hispanic-themed market

    Threats

    - Security- National economy- Contract finance

    10Interim Team Report. Pg. 76.

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    place (Mercado)- Entertainment- Retail Market- Land and access- Skill training- Trinity River Spin-off possibilities- Potential branching- new business

    locations- Innovation center for business (Eco

    Park)- Green movement- Southern Dallas Task Force- Dallas Morning News advocacy- Relocation incentives

    I will not explore each item in this space. However, I will highlight some key

    observations. First, the weaknesses in Southern Dallas are very real. To citizen-investors,

    image and perception are everything. When you turn on the evening news in the DFW area,

    you do hear about crime and blight in Southern Dallas. For decades, this has reinforced

    beliefs about the area that have scared off businesses and new residents. To say that image

    and perception largely drive the rest of the weaknesses OED lists is not an overstatement.

    Second, opportunities really do abound in Southern Dallas despite its reputation. The

    Southern Sector has a wealth of untapped physical resources in the forms of developable

    land, a malleable, underemployed, and relatively young workforce (median age is 30.8

    years)11, and an underserved consumer base. Third, there are some success stories in

    Southern Dallas. Recognizing the opportunity for unparalleled returns, a forward-thinking

    group of investors has developed three new southern Dallas business parks in the last

    several years (Pinnacle Park, Mountain Creek and Dallas Logistics Hub) creating over 7

    11Id. Pg. 75.

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    million sq. ft. of industrial space, 700,000 sq. ft. of retail space, 100,000 sq. ft. of office

    space, 532 apartments, and 6,500 jobs.12

    One Area, Many Characters

    There is an important lesson many have learned (sometimes the hard way) about

    Southern Dallas: it is not a monolithic sub city. Redevelopment crusaders, even if well

    intentioned, often mistakenly look at Southern Dallas as one massive, struggling

    neighborhood. They believe that a one-size fits all approach can be implemented that will

    cure what ails this part of the city.

    These thinkers simply could not be more wrong. Southern Dallas is one

    geographical area made up of many distinct neighborhoods, each with its own character.

    The ritzy retail that would be a hit in one place could very well be a disaster in another. The

    12Realizing Potential: A Framework for Enhancing the Southern Portion of Dallas (2008). Pg. 7. Dallas Office ofEconomic Development.

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    boho shops that have brought North Oak Cliff to life might fall flat in Fair Park. With this

    understanding as a backdrop, the Mayors Southern Dallas Task Force13 divided the

    southern half of the city (see the map above) into 10 manageable planning areas. However,

    even after dividing Southern Dallas into 10 areas, the average area is still nearly 20 square

    miles, with 52,000 residents, 1,600 businesses, 14 public schools, and 13,000 jobs. (This

    frames just how big the area is that this paper discusses).

    Ten teams, of 13 community stakeholders each, were dedicated to one of the unique

    subsections of Southern Dallas, designed according to historical, natural, and economic

    boundaries. Each team is challenged to develop strategic plans for its dedicated area based

    on the following topics: economic development policy, small business, and finance/funding

    sources.14 This approach has allowed for a narrow tailoring of solutions, by planning area,

    which has begun to make a meaningful impact in Dallas. As laudable as this innovation has

    been, there is still much to be done and desired in Southern Dallas.

    30 Years of Plans

    One of my tasks in the Mayors office was to help OED by reviewing all the economic

    revitalization plans that had been drafted for Southern Dallas. Wow. It was amazing to see

    that for more than three decades now, we have been talking about turning things around in

    Southern Dallas. Even more disconcerting was seeing that the 2008 plan was still talking

    about addressing the same issues with the same ideas as the 1981 plan.

    Through the exercise of looking at all the old plans for Southern Dallas, I was able to

    identify 7 recurrent themes throughout the years:

    13 An entity organized by Mayor Tom Leppert (now a candidate for U.S. Senate) in 2007. 14Interim Team Report. Pg. 11.

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    1) Marketing and myth-busting (seen in plans from 1981, 1991, 1992, 1993, 1997,1998): Multiple Southern Dallas plans began with the idea that misconceptions

    about Southern Dallas were artificially depressing redevelopment activities. For

    example, despite the fact that crime in Southern Dallas is comparable to most major

    cities, citizens and investors have always had the idea that the area is a war zone.

    Through media management and strategic marketing, the story goes, the tide of

    perception can begin to turn in Southern Dallas.

    2)Assisting developers to secure large tracts of developable land for industrial use(seen in plans from 1991, 1992, 1998): Despite the fact that Southern Dallas has had

    the majority of the citys developable land for decades now, an inability to secure

    large enough tracts that would lure major developers had plagued the area.

    Fortunately, the tide began to turn in the early 2000s as the city made large tracts

    available for business park development.

    3) Partnering with educational institutions (seen in plans from 1992, 1993, 2004,2008): The City of Dallas, admittedly, has no formal role in educational institutions

    (K-12 or higher). Nonetheless, many plans have viewed partnerships with these

    institutions as vital to success. The city can serve an important function by shining a

    light on the progress made in model schools and by making public calls for

    improvement by other schools. The Dallas Independent School District is a separate

    entity operating under a state grant of power. However, the district is not

    impervious to the political pressures of any public entity. As such, it relies on

    support from and a solid relationship with the city for legitimacy as well. In this

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    respect, the future of Southern Dallas schools, including colleges and community

    colleges, must truly be a shared responsibility.

    4) Improving workforce readiness (seen in plans from 1993, 1997, 1998, 2001,2008): This concept goes hand-in-hand with education. An educated population

    attracts businesses to an area because they see a pool of talent that can staff its

    operation. Workforce readiness can be accomplished through the school system and

    innovative job training programs targeted at the post-school age population.

    5) Fostering community engagement and participation (seen in plans from 1993,2008): All too often, powers-that-be look at areas in need of urban renewal as lost

    causes. They think the area is blighted and the people are hopeless. This

    misapprehends the fact that these areas often harbor proud and distinct

    neighborhoods with generations of character. Ideal plans activate the passions of

    those living in communities targeted for renewal by seeking their input and bringing

    them to the table. The solutions that result hold more long-term promise when a

    diversity of decision makers exists.

    6)Stimulating retail development(seen in plans from 1989, 1998, 2001, 2004): Animportant aspect of catalyzing meaningful growth in an area is attracting people to

    come who do no live there. Enticing retail serves this key function. With Harlems

    Retail Renaissance as an example, underdeveloped areas can use retail as a means of

    stimulating interest. Moreover, this can help with another key problem

    impoverished areas face: a dearth of recycled dollars within the geographic area.

    For example, only about 18 cents of every dollar spent by southern Dallas

    consumers stays in that community.

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    7) Encouraging small business assistance and development (seen in plans from1981, 1989, 1993, 1998, 2004, 2008): Big box retail and Fortune 500s cannot be

    expected to carry the day in a place like Southern Dallas. While the City Council

    debates their presence (such as the ongoing debate whether to allow a new Wal-

    Mart to be built), politicians and thinkers on both sides of the aisle laud the role of

    small business development. These establishments create durable jobs in

    communities and empower local areas with home grown purchasing options.

    Along with this empowerment comes increased local pride- another key feature in

    sustained changes an areas collective psyche.

    Southern Dallas faces real challenges. The recurrent themes I uncovered in looking

    at Southern Dallas plans were both refreshing and disturbing. It was refreshing to see that

    people with power have a firm handle on the real issues that plague this part of the city.

    Often times, it is a fundamental misunderstanding of the problems that stunts progress.

    That does not seem to be the case in Dallas. However, it was disturbing to see little

    progress in some discrete areas for over 30 years now. In order to really grow southward,

    Dallas will need transformational leadership that understands its problems and can forge

    the political will to confront them head on. This is a truly Texas-size task.

    A Man with a Vision, A City with a Hidden Treasure

    Dallas is fortunate because it has an ace in the hole: its mayor. Mayor Mike Rawlings

    has had a distinguished career in the public and private sectors (serving notable stints as

    the CEO of Pizza Hut, the President of the Parks and Recreation Board, and the Citys

    Homeless Czar). As such, he employs an interdisciplinary framework for developing

    Southern Dallas solutions; he recognizes unique roles for the private sector and the public

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    organs of government. Mayor Rawlings has more than just ambition and sensitivity for

    Southern Dallas. He has a real plan (see below).

    This plan recognizes that city government, community members, and private capital

    are all required to grow Southern Dallas. Taking each point in turn, I will briefly offer a

    snapshot15of the Mayor Rawlings vision for these 10 concepts.

    1)Strengthen and engage neighborhoods: This is about creating an ownership of thecommunity. This involves making friendly neighborhoods with a focus on living,

    15Based on the Mayors actual words during his unveiling of this plan to Dallas residents in February.

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    learning, and working. Thirty new neighborhood associations will be added in the

    area in conjunction with this.

    2) Culture of clean: The city must get Southern Dallas market-ready by creating themindset and ethos that cleanliness is next to godliness. This will involve eradicating

    graffiti and litter as well cracking down on code enforcement and holding negligent

    property managers accountable.

    3)Strengthen schools, strengthen communities: Mayor Rawlings will adopt fourpublic schools (2 middle and 2 high) in Southern Dallas. The plan is to work to

    ensure these schools have world-class principals committed to shaping todays

    students into tomorrows leading citizens.

    4) Debunk myths and rebrand Southern Dallas: Historically, people have looked atSouthern Dallas as an obligation instead of an asset. Calling on his marketing

    background, Mayor Rawlings intends to re-educate the city about the southern

    sector. This will involve creating a dedicated brand manager position (a city

    employee who will work at City Hall) who will re-train audiences on how they

    should view Southern Dallas.

    5) Create financial and investment fund: Mayor Rawlings aims to create a $20 millioninvestment fund from dozens of investors. Every project will be evaluated on a

    double bottom line: will it offer a good return on investment and will it be good for

    the community?

    6) Continue downtown momentum and push for more growth: This primarilyinvolves drawing business to the green line of DART (the Dallas Area Rapid Transit).

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    This will increase traffic in the areas capitalizing on an increasing amount of people

    who are choosing to live in downtown- the Citys window to Southern Dallas.

    7) Implement West Dallas Design Plan: A state-of-the-art bridge has already beenconstructed to encourage traffic into West Dallas (technically a part of Southern

    Dallas). This will also involve a creation of a new food and retail district designed to

    create 1,000 new jobs and an impact of $100 million annually.

    8) Make Jefferson Blvd. The Main Street for Southern Dallas : Jefferson Blvd. sits atthe center of an area in Southern Dallas enjoying tremendous revitalization.

    Unfortunately, this street is littered with pawnshops and payday loan places. Mayor

    Rawlings has called on Dallas to make this a true gathering place that encourages

    other centers of activity in Southern Dallas.

    9) Build out Lancaster Corridor: This key area involves a VA hospital that draws30,000 visitors a day to the area. The City needs to capitalize on this traffic and

    develop to encourage more of it.

    10)Infrastructure for Education Corridor: University of North Texas at Dallas andHBCU Paul Quinn College sit in Southern Dallas. The city will create a University

    Park for Southern Dallas (harkening to a model area in Northern Dallas that is

    home to Southern Methodist University).

    A Brighter Day for Southern Dallas

    Mayor Rawlings believes Southern Dallas can be revitalized and will not rest until

    this part of the city is squarely on that path: "I think one of the reasons I decided to give

    back for the next four years of my life is because I believe southern Dallas is something no

    other city in the country has," Rawlings said. "Right in front of us is the biggest growth

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    opportunity for the next two decades. All we have to do is buckle down and get it done. I

    know we can."16 Southern Dallas has natural resources, human capital, and a mayor that

    thinks about it every day. These factors, among many others, make this writer bullish on

    this sectors future. Like Mayor Rawlings, I believe we can grow southward if we buc kle

    down and get it done.

    Project Perspective: An Epilogue

    I write this epilogue to add brief perspective to the contours of this project. During

    the month of January, my charge was to advise Mayor Mike Rawlings office on ways to

    redevelop Southern Dallas. Fortunately, the office already had many ideas in place such

    that I was actually able to study them. Part of my responsibilities involved working with

    the Citys Office of Economic Development, which plays a key role in revitalization efforts.

    This paper sketches some of the issues facing the southern half of Dallas and surveys the

    decades of efforts to address them. It ends with what I believe is a note of reasoned hope

    based on the current leadership of the city. Working in the Mayors office everyday gave me

    an opportunity to see the people on the front lines of battle to save Southern Dallas. My

    time with them gives me genuine optimism.

    Perhaps the most exciting part of my time in the office was an exclusive, 30-minute

    interview with Mayor Rawlings in the setting of his choosing- his office. I submit this

    interview (via jump drive) as a companion piece to this paper. Viewing this video highlights

    Mayor Rawlings feelings on Dallas and the issues it faces. If this paper is Part I of my

    project, this interview- for which I intensely prepared- is surely Part II. I hope you find both

    as enriching as I have.

    16Remarks to a group of investors (Feb. 13, 2012). By Mayor Mike Rawlings.