Issue No. 27 Spring 2007 Tools Home Tools for Housing and Economic Development
 

A renovated house in the AHP-funded West River Homeownership campaign in New Haven.



“ When I came here in the 1980s there was an ingrained resistance to facing the reality that the past was not coming back and that the community had to embrace a new future.”


William Ginsberg

 

New Haven Revival
Interview: William Ginsberg

By David Parish

William Ginsberg

William Ginsberg is president and CEO of the Community Foundation for Greater New Haven, the largest philanthropic institution in the New Haven region. From 1984 to 1988,
Mr. Ginsberg served as development administrator for the City of New Haven. In 1994 Mr. Ginsberg was confirmed by the United States Senate as assistant secretary for economic development in the U.S. Department of Commerce and served as chief of staff to the late Commerce Secretary Ronald H. Brown. From 1997 to 2000, he was managing director and chief operating officer of the Federal Housing Finance Board, the regulatory agency for the 12 regional Federal Home Loan Banks.

Many Connecticut cities are struggling, losing population and economic strength.
That’s correct. Connecticut cities rank poorly, even when compared to other weak-market cities. New Haven is climbing back from a period of decline, and has done better than most, but the city still faces significant challenges.

What went wrong in New Haven?
What happened in New Haven is not dissimilar to the experience of many older, industrial cities. New Haven was an industrial powerhouse, a city of clocks and locks and carriages and guns, but in the third quarter of the 20th century changes in the national economy and competition from other regions devastated New Haven manufacturing. By the 1980s all the big manufacturers were gone or greatly diminished; when the economic reason for being disappeared, the ability of the community to provide employment and a decent life declined and social pathology followed. Poverty in Connecticut became concentrated in the cities. Connecticut cities are small and politically weak and they have never received the priority from the state that they deserve.
 
The city seemed to wander, to lose faith in itself.
New Haven, starting in the 1950s, began to look for its future. The city took a long time to come to grips with that challenge. When I came here in the 1980s there was an ingrained resistance to facing the reality that the past was not coming back and that the community had to embrace a new future. The dynamic was complicated by the presence of Yale University in the community. Historically, there was a lot of tension between the world-class institution and the blue-collar industrial city. As other businesses were shrinking, Yale was growing and becoming a huge magnet for world resources. It was difficult to reconcile the disparities of fortune between Yale and the city.
 

A renovated house in the AHP-funded West River Homeownership Campaign in New Haven.

How did the city come out of its drift?
What makes New Haven such a special place is the people who are here, people who are deeply committed to the city. It became increasingly obvious to people in the city that the future of the city and the future of its major institutions, such as Yale, were tied together. I don’t want to overstate the importance of Yale, but it’s difficult not to. Although Yale has always been supportive of the community, it adopted a very different stance under the leadership of its current president, Rick Levin. When Rick Levin was chosen to head the university, the Yale Corporation went with someone who was from the community, someone who understood New Haven. Rick made it clear from the beginning that New Haven was a priority and Yale set out in a deliberate way not only to contribute to the community, but to lead. The university came to the realization that the business community had fallen away and the nonprofit sector, Yale in particular, had to come forward. Yale had the financial heft, the vision, and the need to lead. One of the reasons the community embraced a future tied to Yale was that Yale was willing to embrace the community.

It must have been difficult for Yale to make that decision.
Organizations such as Yale often want to be seen as supportive, but not as leaders. True. Yale has high visibility and very deep pockets, and I am sure there was concern about committing resources to a venture where success was certainly not guaranteed.
 
Is there now a spirit of optimism about the future in New Haven?
Yes, definitely. New Haven is making lots of progress in lots of ways. The city looks good, feels good. It’s vibrant and alive. The neighborhoods are relatively healthy, downtown is doing well, and there are plans to move forward. However, no one is under any illusion that the track that we are on will solve the fundamental underlying social problems of poverty and lack of educational achievement. At the core of
the city is an activist community, and they won’t accept partial victories.

How would you describe the redevelopment strategy? Was there a conscious strategy and if so, what was it?
The strategy has changed dramatically. In the 1990s the city was still pursuing a huge, regional shopping mall, a project that didn’t happen. The fundamental transition in strategy came when New Haven figured out that it can compete and win if it competes on urban, and not on suburban terms. A super-regional shopping mall is a suburban strategy, but where New Haven has succeeded is with arts and culture, our summer international festival of arts and ideas, partnerships with the city’s educational institutions, and its revitalized urban neighborhoods. Cities need to decide what makes them attractive and go after that. Conscious or not, that has been the New Haven strategy, and it has made all the difference.

A Neighborhood Housing Services of New Haven renovation.

What happened to New Haven’s neighborhoods during the period of decline, and what has happened to them since then? 
The neighborhoods suffered terribly, but not always from neglect. New Haven was the model city in the 1950s and 1960s. More federal redevelopment dollars were spent in New Haven per capita than in any other city in America. And much, in the end, was spent in misguided ways. The recent destruction of the New Haven Coliseum is the perfect metaphor, a grand vision at the time, but ultimately the wrong vision. That said, we shouldn’t overly romanticize the past. Areas of the city had gone terribly downhill and radical redevelopment seemed in order. But terrible mistakes were made and New Haven paid a high price for a long time. The fabric of the community was so ripped open that it took it a long time to figure out how to begin to stitch it back together. The healing began with recognition that New Haven has wonderful, older neighborhoods with beautiful architectural qualities, and residents with terrific loyalties. A powerful neighborhood sense is central to what the city is all about, a key strength.
 
Has building on the neighborhood strengths become part of the redevelopment and political philosophy? 
Yes, without question. New Haven has a very active network of community-based organizations working throughout the city. The current city administration has been supportive, but it’s a slow process. It’s difficult for nonprofit organizations to work at a large scale. I suspect that history’s verdict will be that you need to do the work one house, one street at a time. The revitalization process has certainly been helped by changes in the market and people’s preferences. Young people, and some older people, are moving back to the city, living downtown, finding what they can’t find in the suburbs.
 
What has New Haven learned that has applicability to other communities?
Know and understand your strengths and compete on that basis. And political stability in New Haven has made a huge difference. John DeStefano has been a somewhat controversial figure but I believe he has been an excellent mayor, providing strong, consistent leadership since 1994. Other Connecticut cities have not fared so well.
 
I’m curious about what you brought to New Haven from your experience at the Federal Housing Finance Board and the banking industry. 
When I think back on my experience it occurs to me that the thread is community: community economic development, community banking, community philanthropy, working at the community level, approaching challenges from the community perspective. In a sense, that is what the Federal Home Loan Bank System is about, encouraging and supporting community banks. Unfortunately, in a city like New Haven, most of the community banks have disappeared – and they are sorely missed.

What about issues that remain in New Haven? What worries you about the future? 
Just look at the numbers as to poverty and educational achievement. No one is under any illusion that, even with all of the progress that has been made, the city has addressed underlying social problems. I’m not talking about eliminating poverty in New Haven, but simply moving those trend lines in the right direction. Educational achievement is a prime example. The achievement gap between white and minority students is larger in Connecticut than in any other state. Also, crime and violence, which had been trending down, is now trending back up. If crime — or even the perception of crime — returns, I fear for the city. New Haven’s new economy is also fragile. The city has been able to capitalize on things such as pharmaceuticals and bio-medical technologies but New Haven faces stiff competition from Boston, the Bay Area, and emerging international centers. We need to remain focused on support for these emerging technologies and can’t assume that we will be successful. Fundamentally, there is only so much that a
city can do. We need stronger and more cooperative state and federal partners. But, ultimately, with the level of community commitment that exists, and with Yale as the foundation for a new local economy and a strong private-sector role, I’m very optimistic about New Haven’s future. T