The success or failure of these endeavors will have lastingeconomic impact on those cities in competition to become regionaldestinations, capturing discretionary spending or seeking toexponentially increase their current tax base. Failure to create aneconomically sound downtown can ruin a city. Finding the rightformula can catapult a city into the national limelight, creating atrickle down effect that results in higher-priced real estate, astrong retail and business environment, and a reputation that drawspeople to the area.

Do enter a third generation of thought. BeforeWorld War II, neighborhoods in urban areas seemed to evolveorganically. Many times neighborhoods were organized along ethniclines. This was immediately followed by the era of urban sprawl,massive malls, and the introduction of walled communities. At thattime, there was an aversion to urban areas and people were fleeingto the perceived safety of the suburbs.

Today, we are entering the third phase: recognition that olderdowntown areas have significant value, coupled with a newfascination of returning to our cities. They have a sense of place.This is evident in New York, Chicago, San Francisco and Boston,which are all experiencing a real estate renaissance. This trend isalso apparent in smaller cities such as West Palm Beach and DelrayBeach in Florida, and Savannah.