The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Monday, November 27, 1995              TAG: 9511250100
SECTION: BUSINESS WEEKLY          PAGE: 04   EDITION: FINAL 
TYPE: Forum 
SOURCE: BY PAUL D. FRAIM 
                                             LENGTH: Long  :  164 lines

CITIES ARE VITAL TO QUALITY OF LIFE

Editor's note: Cities are at a crossroads and must embrace new initiatives for economic development, Norfolk Mayor Paul D. Fraim said in a speech delivered Nov. 14 at the 23rd Japan-American Conference of Mayors and Chamber of Commerce Presidents in Yokohama. Fraim was asked to speak about `hollowing,' a Japanese term for urban decay. Here are excerpts from his speech:

This is my first visit to Japan, and it is my first opportunity, as mayor, to represent the citizens of Norfolk in both Kitakyushu (Norfolk's sister city) and Yokohama. I am impressed with what I have seen and what I have experienced.

``Hollowing and Community Revitalization,'' coupled with explaining the phenomena, suggests that we, in Norfolk, have long been experts. Hardly. We do, however, possess a great degree of skill and hands-on experience that has resulted in and contributed to the future of our community. We are proud of our achievements, and we are enthusiastic at the prospect of what a new century will give us as a reward for our many years of hard work.

Many people have been involved in the process. In fact, many of our people in the public and private sectors have made significant contributions of their time and talent. (Kitakyushu) Mayor Sueyoshi can personally attest to the fact that we have come a long way in making our city a more habitable place for people of all economic levels. We have seen for ourselves what Kitakyushu has accomplished in the face of similar obstacles.

``Hollowing and Community Revitalization.'' What does this mean? The term hollowing is not recognizable in the English language. In fact, we had to do a little research to educate ourselves on specifically what is meant by ``hollowing'' in the Japanese sense.

We found that the term hollowing generally refers to the loss or transfer of the business base from a particular community. In the Japanese view, cities in this country have been victims of hollowing as a result of high labor costs and the expensive yen. Many Japanese manufacturers have elected to relocate to less expensive areas of the country, or even to foreign countries.

We further determined that hollowing and community revitalization is an example of a shared experience on a global scale. Healthy cities are central to the quality of life in the United States, Japan and the international community. Our cities are the windows through which an increasingly competitive world evaluates our respective societies.

There have been admirable achievements advancing the quality of life in our cities, yet there remains a fragile balance. There remains an opportunity to favor our odds of experiencing a successful future. This will only occur when local government is joined by corporate and civic leadership to use our given ability to explore our options, create plans and provide leadership to implement those plans.

The health of our cities has been a concern in every sector of society, country, continent and hemisphere on this great Earth. The movement away from our urban centers has caused us to do many things, positive and negative. We are often faced with limited resources, both from a monetary and human resource perspective. Many of our efforts to turn our society around have been met with stiff resistance on many occasions. Yet, we must persevere to learn where to concentrate precious resources for the most productive results.

Physical deterioration of buildings and public spaces is both cause and result contributing to the hollowing phenomena. Code enforcement and conservation programs all oppose deterioration; yet standing alone cannot eliminate blight and business flight.

Social deterioration also contributes to the problem. Healthy families and healthy neighborhoods have been a central requirement in our respective societies for centuries.

The concentration of economically disadvantaged persons, which occurs in cities, is almost unavoidably accompanied by further reduction in the performance of our school-age children, college students and technical skill advancement potential. This, in turn, reduces employability and the ability of our respective cities and countries to compete in the world market.

I have touched on the impact both physical and social deterioration have on the community and the individual. Underlying these ills is the economic stress borne by cities as a result of business relocation out of the community. The absence of employment opportunities and income potential, for both the individual and government, contributes to the hollowing process. In many cases, this cycle continues in spite of the investment of substantial resources.

We have arrived at a crossroads where we must make choices. Are we to continue to reinforce programs and initiatives that have marginal results? Or will we have the courage to attempt a new strategy to accomplish the desired objective?

Our objective should be to reverse the loss of economic opportunities by putting in place a strategy that really works.

I am suggesting that we continue the social agenda while acknowledging that certain efficiencies and realities must be faced. This social strategy must be intertwined with an economic strategy. This combined initiative can be implemented through private/for-profit initiatives coupled with investment based on economic benefit and competition.

Our efforts to remedy the effects of hollowing through the continuation of investment alone will not bring sustained growth from which the individual and government might benefit. This urban initiative must begin with the concept that businesses that have departed for other locations expect basic social and governmental stability upon which they can build and expand.

As we move forward into a new century, we are charged with the responsibility, as leaders of our respective communities, to provide the basis on which our cities are reborn as viable business centers.

To provide the competitive edge for regional, national and international economic exchange, the following concentration of basic governmental and community services must be in place and in good working order: public safety, economic development, education, housing and public health/recreation.

Public safety: Whether a real problem or merely a perception, the issue of public safety is of paramount importance in regard to the economic and social health of our communities.

The basic premise is that when we enter our cities, in Japan or America, we have cause for concern for our well-being. Immediate assistance with this concern may be a visible increase in the presence of police.

However, such expenditures in money and human resources will result in little difference unless coupled with neighborhoods, civic and business organizations that are willing to contribute their time and talent to aid government in this effort. We must create a sense of ownership in the process for all involved.

Economic development: The term economic development means many things to many people. It is the central theme that influences the present and future of our cities.

Employment opportunities must exist to provide incentives to use talents and acquire skills. The process of retaining and attracting businesses that can successfully utilize the benefits available is key.

It is our challenge to market these benefits so that existing and prospective new businesses realize the tremendous community energy that can be tapped.

This is not, by any stretch of the imagination, an easy task. It is at the heart of the hollowing phenomena and requires the full involvement of the public and private sectors to execute a well-thought-out plan that is designed to reach the desired goal, an increase in expansion of the business base.

Education: Educational opportunities are the basic ingredient of community revitalization and community enhancement. Involvement of all sectors of the educational community is a prerequisite. An available trainable work force is key to attracting and retaining productive competitive enterprise.

Housing: A subject with which we in Norfolk are very familiar. Assistance to local governments, clearing blighted areas and supporting low-cost housing has been a massive undertaking nationwide in the American experience.

The availability of moderate and upper income housing opportunities must also be intertwined with the process so that all levels of society are able to co-exist. Redevelopment projects can be extended to accommodate land acquisition for re-use as business sites and educational and health-care opportunities.

Public health/recreation: Organized recreation programs and the creation of physical space for spontaneous recreation are important incentives. We have experienced firsthand what this process allows. In Norfolk, we have successfully combined a thriving downtown business community with nearby public space.

On any given day or weekend, we have numbers of people from a region of over 1.7 million people arriving at our doorstep to enjoy the recreational and entertainment opportunities that abound.

A thought to leave you with, above all else, is that the determination of what your community can be at the turn of the century and beyond is crucial. It is this realization from which a solid plan can be formulated to provide the foundation for a future that will be the legacy of your tenure as community leaders.

I challenge you to continue your diligent effort to explore ways to proliferate the greatness that cities around the world have displayed and the role that our communities expect cities to play. It is my hope that through the exchange of ideas and information at this conference, we will be in a position to return to our responsibilities and positively impact the negative effects the hollowing process imparts.

The task is not easily accomplished, and there is no alternative. We must turn our collective energy toward the reversal of the phenomena. by CNB