When there is stagnation of growth in the economy, the government and the private sector combine forces to revolutionize new changes that would stimulate economic expansion. The two agencies may partner, despite the effects of gentrification, to re-zone the places of interest and create new business opportunities. Together they would change the initial forms of business and encourage investments in real estate, retail and commercial businesses to fasten economic growth and development.
Zoning encompasses the segmentation of land by the local authorities into acres called zones, each with a set of rules and regulations that are different from the initial areas. Nevertheless, these guidelines encourage gentrification, a condition in which the poor inhibitors of the neighborhoods are displaced by the wealthier individuals who come in to improve housing and attract new businesses (Yunda et al., 2019).
For example, in Downtown Brooklyn, the government kicked out residents from their homes by paying the property value of their homes to create room for the construction of Barclays Centre and Atlantic mall. Additionally, in 2007, the city government of downtown Brooklyn acquired the houses at 231 Duffield Street via eminent domain, then demolished the houses (Zukin, 2018). This act moved the long-time investors who inhabited the land and replaced their businesses with hotel rooms, new office spaces, and retail spaces.
When looking at the evolution of Downtown Brooklyn, the real estate and New York City have significantly contributed to its economic growth and development over time. For example, real estate buildings have generated income for many workers at the construction sites and create jobs for new residents. This has greatly augmented the county revenue through increased collection of taxes and other incomes. With the upsurge in taxes, the Brooklyn government executed and effectively funded different projects like infrastructural developments, security, and healthcare services. This empowered the town to evolve as a thriving hub for startup firms, high-tech companies, entrepreneurship, and postmodern art and design activities.
Consequently, the New York City economic development corporation (NYCEDC), through New York City Industrial Development Agency (NYCIDA), has fueled the evolution of Downtown Brooklyn. It provides companies with access to tax benefits to strengthen and diversify the employment base, encouraging the expansion and development of business within New York City, thus promoting economic growth by creating and retaining jobs (Rauscher, 2018). Additionally, the New York City Capital Resource Corporation (NYCCRC), administered by NYCEDC, has greatly influenced the evolution of Downtown Brooklyn through the local development corporation that gives lower-cost financing programs to eligible capital projects.
Consequently, the public-private partnership has also contributed to the evolution of the town. The public-private partnership encompasses collaboration or contact between government agencies and private agencies in developing and managing business assets (Johnson, 2016).
The private agents bear significant responsibility throughout the life of the contract. The partnership can be used to build, operate and finance various projects in the country. For instance, the Downtown Brooklyn Partnership (DBP), through FIMA, works to improve the economic vitality and quality of life in Brooklyn. It provides supplemental economic retail development and marketing services that have fueled the evolution of Brooklyn. The retail and real estate business in Downtown Brooklyn has not significantly changed from the past. Instead, they have been modernized. Conversely, the town has grown through a fundamental transition to a modern developed, and upscaled city with diverse culture forming its main distinction from the past.
The zoning of Downtown Brooklyn not only created a demand for economic growth. Rather, it revolutionized the economic growth and development that the city leverages today. The real estate, NYCEDC, and public-private partnership have had a great impact on its improvement. Therefore, this indicates that when the government increases its partnership with the private sector, various parts of the economy steadily growing, thus steering the general economic expansion of that country.
References
Johnson, K. (2016). Horizons at Brooklyn Friends School: How a Public-Private Partnership Creates Equity and Opportunity in Downtown Brooklyn. Independent School, 75(4).
Rauscher, R. C. (2018). Brooklyn Downtown and Sustainable City Principles. In New York Neighborhoods-Addressing Sustainable City Principles (pp. 123-140). Springer, Cham.
Yunda, J. G., & Jiao, J. (2019). Zoning changes and social diversity in New York City, 1990–2015. Journal of Urbanism: International Research on Placemaking and Urban Sustainability, 12(2), 230-243.
Zukin, S. (2018). Naked City. The Death and Life of Authentic Urban Places. Journal of Economic Sociology-Ekonomicheskaya Sotsiologiya, 19(1), 62-91.