We've been periodically posting excerpts from "State of the City" addresses given by mayors from across the U.S. These addresses can offer insights into both innovative programs and challenges facing cities.
Previously posted:
Shoreview, Minnesota, Mayor Sandy Martin
Salt Lake City, Utah, Mayor Ralph Becker
Ashland, Oregon, Mayor John Stromberg
Topeka, Kansas, Mayor Bill Bunten
Albany, New York, Mayor Gerald Jennings
Grand Rapids, Michigan, Mayor George K. Hartwell
Austin, Texas, Mayor Lee Leffingwell
Fort Worth, Texas, Mayor Mike Moncrief
Riverside, California, Mayor Ronald O. Loveridge
Minneapolis Mayor R.T. Rybak
State of the City Address (to read the full address given on March 10, 2010); excerpts below:
An economic tornado has ripped through the heart of our city, our country and the global economy. In those months that followed we began to look up and survey the damage. We've been shocked by what we have seen.
At the end of 2007, the official beginning of the recession, unemployment in Minneapolis stood at 4.3%. Today, it stands at 6.8% -- after peaking in July 2009 at 8.4%.
At the end of 2007, the retail-vacancy rate hovered around 6.0%. Today, it stands at 10.5%
In the middle of 2008, the average traditional-sale price of Minneapolis home was $220,000. Today it stands at $193,500. That's $26,500 less in wealth that the average Minneapolis homeowner can count on.
... The economic devastation in the economy also has a direct impact on basic services in the city. With the state budget in deep crisis, part of the solution proposed by the governor has been to cut an additional $29 million from the City. These are the funds we use to pay for police, fire, road maintenance and other basic services. I am currently working with our finance team and Council leadership to develop a supplemental budget based on deep state cuts. I will present it in early April. It won’t be pretty.
There are some signs, however, that we are turning a corner. Just yesterday, Forbes Magazine ranked Minneapolis Saint Paul the #4 metropolitan area in the country where the recession is easing. Still, even an optimist like me wonders whether we can ever get back to where we were before. But in the year and a half since the economy collapsed, all parts of this city have found a way to make progress.
... in President Obama we finally have a champion at the federal level. When I stood here one year ago, the president's economic-recovery plan had only just passed. One year later, we've seen what it's meant: Minneapolis alone is benefitting from $60 million from the American Recovery and Reinvestment Act. We will continue to feel the positive effect of that assistance through this year.
We also have never had such strong partnerships with regional partners. We are working with both the Itasca Group, a coalition of regional CEOs, and the Regional Conference of Mayors on a regional economic development strategies. We have also never worked more closely with Mayor Chris Coleman and the City of Saint Paul, especially on green jobs and transit.
We are like the Twins -- we're playing on a whole new field. But just like in baseball, the fundamentals remain the same.
... The first fundamental is investing in people. In 2003, we merged Minneapolis' successful job-placement programs into a more powerful department of Community Planning and Economic Development. Since then, we have helped place nearly 11,000 people get training and good jobs. ... Minneapolis is also a national leader in partnering with the business community to develop the workforce for tomorrow. Since 2002, we have placed more than 11,000 young people from Minneapolis in summer jobs, the majority of them through STEP-UP. Last summer alone, we found jobs for 2,270 young people.
... Six years ago, unemployment was one percentage point higher in the city than in the surrounding suburbs. Now, for the first time in decades, unemployment in Minneapolis is below the suburbs, the state and the nation.
... All this effort to develop the workforce is the first, and most important, fundamental in creating jobs. The second fundamental is to invest in the common ground that helps everyone succeed. The common ground includes five key elements: (1) safe neighborhoods; (2) stable neighborhoods; (3) technology infrastructure; (4) well-maintained roads and bridges; (5) expanded transit options.
Investing in common ground starts with making every neighborhood a Safe Place to Call Home. This has been the top priority of our city government for eight years and that focus has paid off ... The common ground also including helping neighborhoods stay stable. First, that means preventing foreclosures when we can. Foreclosure counseling and prevention costs the City an average of $500 per household -- but foreclosure costs the public and private lenders an average of $68,000 per household. In 2009, the City helped prevent close to 500 foreclosures -- which means that for an investment of around $25,000, we saved over $30 million in costs.
... The common ground includes technology infrastructure. The Minneapolis wireless network is now complete, and USI Wireless now has over 16,000 residential subscribers. Over 50 Community Technology Centers have free wi-fi access, and this spring here will be over 100 free outdoor wi-fi hot spots throughout the city. Minneapolis continues to lead the way as the first large city to build such a network.
The third fundamental is investing in small business. Too often, economic development means special assistance to just a lucky few big players. But there’s a better way to do it. When government does provide assistance to businesses, it needs to be focused on the job-creation sweet spot of the partnership between the public and private sectors -- and that's small business, where most jobs are grown.
About five years ago, we began unifying several previously disconnected City programs for small business into a unified effort called Great Streets. To someone who wants to open or expand a business on a commercial street, Great Streets offers gap financing, low-interest loans, façade-improvement matching grants, and business plans and marketing assistance. Since 2007, we have invested $3.7 million on commercial corridors throughout Minneapolis.
... Knowing when to help, and when to get out of the way. With Minneapolis Development Review, we have also streamlined the City's development review processes. In 2005, it took an average of 37 days for the City to route formal development plans. In 2009, it took an average of 10 days. ... In the past year, we integrated Business Licensing into the Service Center, so now, partners can receive new or renewal licenses and obtain permits for many construction-related jobs the same day -- all in one location. ... We've established a Business Development presence at the Service Center so small businesses can meet with City staff to obtain information on low-interest loans and the other services we provide for small businesses.
We're also processing more and more permits via the Internet. In 2003, we processed exactly zero permits on the Internet. Last year, we processed 21% of all permits via the Internet.
... Our greatest challenge right now is the challenge of putting people to work. No one can wave a magic wand and suddenly make jobs appear, especially not now. There isn’t one single action to take, and nothing right now is easy. But we know what works:
- Invest in people and the common ground that helps everyone succeed.
- Invest in small business, and innovation.
- Know when to help and when to get out of the way.