Downtown will thrive in new ways

It may never be the same.

By Steve Cramer

December 13, 2022 at 11:45PM
The downtown Minneapolis skyline in September 2021. (Alex Kormann, Star Tribune/The Minnesota Star Tribune)

The one-two punch of COVID-19 and unrest following the murder of George Floyd hit like a ton of bricks. After almost three years, some aspects of life have returned to near normal, while other aspects never will. We all recognize this reality, personally and professionally.

The same reality faces downtown Minneapolis. As one who has been in and around downtown for this entire period, I can say with certainty that there is no comparison between conditions when the pandemic began and now. Every measure of economic vibrancy has improved, in some cases returning to pre-COVID levels. Crime statistics and the feeling of safety are dramatically better in recent months — trends that must be sustained.

At the same time, there are regular news stories about real estate and business decisions that reflect the negative impact of events our community has experienced. ("A double shock for downtown Mpls.," Dec. 10.)

Sound familiar? Some aspects of life have returned to near normal. Others never will.

The organization I lead, with our dedicated staff and board, has focused since late March 2020 on reanimating and standing up downtown Minneapolis. We have worked with business leaders, government partners and community stakeholders to address head-on public health and personal safety concerns in order to restore vitality.

For the last year in particular the message has been an invitation to return. Come back to the office, to sporting and entertainment venues and restaurants, to civic events. Experience downtown for yourself. Our bet has been that the experience will be positive, and confidence will grow. The survey research we conduct about downtown sentiment indicates that's exactly what happens.

The focus on downtown reanimation — getting back on our feet — was a necessary response. But it's not sufficient as we look to the future. It's time to shift focus. Our downtown exhibits many strengths and has demonstrated resiliency. Embedded in every challenge are opportunities to build an even stronger downtown in the years ahead. Different can be better.

Here are three important areas to consider.

  • Commercial real estate faces a period of adjustment after the economic shock of the last two-plus years and changing patterns of demand. The Hilton Hotel foreclosure and office towers being turned back to lenders are evidence. Fortunately, not many hotels and office towers are in this situation, and even those facing financial restructuring operate well.

Because greater workweek flexibility will reduce the need for office space, more changes lie ahead. Some older buildings will convert to other uses as we have already seen (e.g., Rand Tower to a hotel, Soo Line building to housing) and are experiencing now with renovation of the Northstar Center. Anticipating and embracing this trend is smart.

2. Increasing downtown's residential population has been a key goal and we've seen tremendous success. The current pipeline of projects suggests this trend will continue.

Making downtown living an appealing option is a future priority. Safe and active streets and interesting experiences will attract residents. To the extent some residential growth occurs in the Central Business District due to the opportunity to convert buildings as noted above, that will support needed vibrancy.

But a note of caution as city officials consider rent control. Stringent policy will not only deter needed residential growth downtown and throughout Minneapolis, it will hamper the city's preeminent policy goal of improving affordability.

3. Diminishing retail and increasing storefront vacancies in downtown's core are troubling trends. There is flourishing retail in North Loop, but the days of Nicollet as a regional shopping destination are long gone. Trends buffeting brick and mortar retail exacerbated by recent public health and safety challenges have taken a toll, but the current condition is not what we should or can accept.

There is an important opportunity to reinvent this aspect of the downtown economy. A mayoral working group will tackle the issue in the early months of 2023. I'm convinced that with planning and action we can create a retail future for the core that draws upon unique offerings by local entrepreneurs. It's not the retail past, but this vision holds exciting potential. And this future will also require a broader set of allowable storefront uses that contribute to downtown's vitality.

As we look to the future, ushering in the next season for downtown Minneapolis will mean continuing to double down on the assets that are uniquely here. Our professional sports teams, world class entertainment venues, arts institutions and restaurants, and the draw of the Mississippi and its recreational opportunities attract millions. Enhancing the appeal of these assets is key.

While downtown will remain a center of commerce and home to major companies, it's always been true that downtown's essential advantage is that it is a crossroads for our entire community. That's why the continued development of a multimodal transit system and mobility options within downtown is important even as use of those systems recovers.

Once people arrive downtown, the environment must be welcoming and conducive to respectful interactions across the breadth of our community. Let's elevate this proposition about life downtown.

Success ushering in the next season for downtown Minneapolis will enhance the economic engine that fuels much of the prosperity across our city, region and state. Everyone has a stake in that outcome.

Historically, major downtowns change; they evolve. Ours certainly has. We've withstood the one-two punch I alluded to at the beginning of this commentary. An even better future awaits.

Steve Cramer is president and CEO, Minneapolis Downtown Council and Downtown Improvement District. Email: scramer@mplsdowntown.com

about the writer

about the writer

Steve Cramer