One Street, two economic development paths

At opposite ends of Third Street SE, two economic development models are on display.

On the north end is a massive convention complex project, paid for with a rising mountain of public bucks. City leaders are convinced that a pricey new complex, spruced-up arena and remodeled hotel will spark a wave of economic activity and private investment downtown. They expect a big payoff.

But first, some big headaches. There was a fight with the governor over project labor agreements. Land purchases were more costly than planned. Now, bids on two major components of the project have come in $5 million over estimates. Clearly, the $75 million project is a high-stakes gamble.

To the south on Third Street SE is the historic New Bohemia neighborhood. Longtime businesses, including the Little Bohemia tavern, are back. New businesses, such as Capone's restaurant, moved in. Parlor City Pub and Eatery, the Chrome Horse Saloon and assorted Cherry Building small business are humming. A remodeled CSPS Hall reopens Friday. Other new ventures are likely.

The city spent about $1.5 million on dressing up the neighborhood's streetscape, money matched by property owners. The city is providing a $932,000 piece of property for the much-anticipated New Bo City Market, a year-round farmers market, and chipped in $150,000 for CSPS. The city is seeking a $1.5 million state grant for the market project. FEMA bucks are being used to demolish a flooded-out building to make way for the market.

So basically, so far, city investment in this neighborhood poised for so much growth doesn't even add up to the $5 million bid overrun on the convention complex. In New Bohemia, tax money primed the pump. At the convention complex, tax money is building an enormous pump, hoping someone will someday want the water.

Don't get me wrong. I want the convention complex to succeed. And it very well might. But the success potential/boondoggle potential ratio is tight. Big projects don't always spark big private investments.

But I've seen the New Bohemia model work in Des Moines' East Village, a trendy, bustling neighborhood that was all but dead a decade ago. Locals convinced the city to, instead of demolishing old buildings, invest in sprucing up the neighborhood. Des Moines paid for streetscapes, etc. Private investment flowed in behind it.

So, five years from now, which model here do you think will be the most successful? I'm placing a small bet on New Bohemia. And I expect a big payoff.