Another gamble on downtown Kingston

Saturday, November 21, 2009 5:01 AM

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Will this effort to revive the city die like others before?

By Julian Richardson Assistant Business Co-ordinator richardsonj@jamaicaobserver.com

Sunday, November 08, 2009

The elderly man seated near the abandoned Victoria Pier building was frank when he told this newspaper last week that redevelopment of downtown Kingston has been 'in the pipeline' for over four decades running, but has yet to fully materialise.

No chronicle of restoration efforts in the capital city could be complete without mention of former Prime Minister Edward Seaga - a pioneering force behind the broad initiative.

The transport depot on Water Lane

By the mid-1960s, downtown Kingston's economy had begun a steep decline. The Abe Issa-led New Kingston commercial district began to open up, triggering the migration uptown of downtown's hospitality and financial services industries. Around the same time, Newport West became the home for Kingston's wharves, thereby ushering downtown's shipping industry, and by extension, its manufacturing and trading industries, to the new industrial centre founded by the Matalons.

"Mr Seaga realised that, and he decided that he wanted to put all of those things back into downtown Kingston," recalls Francis 'Paco' Kennedy, chairman of the Kingston City Centre Improvement Company (KCCIC) and former GraceKennedy director.

"He got overseas architects and planners and they built and put together a masterplan for the city," Kennedy tells Sunday Finance.

Back then Seaga was the minister of development, and his initial area of focus was the creation of a modern waterfront in downtown Kingston. In a 2005 newspaper column, he recalled how the project came on stream.

Michael Belnavis (left), ISMID Development company's chief operating officer, points to work being done on the multimillion-dollar commercial centre which will adjoin the transport depot on Water Lane. Mickey Hill, ISMID Cheif Financial Officer, looks on. (Photo: Garfield Robinson)

He said he had asked businessmen from Harbour and Port Royal streets - who had requested to move their businesses to the new lands (Newport West) being reclaimed by the Matalons - to exchange their waterfront properties for land that the Government was entitled to receive for its share of the reclamation.

"I was enthused, because when the old and somewhat decrepit buildings on Port Royal and Harbour streets were demolished, the lands would provide a great opportunity for developing a modern waterfront for the city," he said.

Seaga... a pioneering force behind downtown's redevelopment

Seaga then formed the Kingston Waterfront Redevelopment Company and collaborated with Moses Matalon to come up with a plan for the development - Ocean Boulevard.

"It was decided that the waterfront development would be mixed, offering offices, apartments, shopping, and a financial centre," said Seaga.

That one-mile stretch of land subsequently became the home to a number of landmark buildings such as the Bank of Jamaica, the Scotiabank headquarters, the Jamaica Conference Centre, and the Oceana Hotel.

Seaga said his plan was to extend the development into the areas behind the waterfront, but it ran into a brick wall when "... soon after, the 1970s descended on the downtown area putting an end to the prospects of expansion".

Kennedy goes further to suggest that Seaga's plan fell victim to politics after his Jamaica Labour Party lost control of the Government in 1972 to the Michael Manley-led People's National Party.

A model of the Southern view of the City Mall commercial centre, currently under construction. It will have 'drive-thrus' to accomodate motorists who wish to purchase food from the quick-service restaurants.

"The projects that were already started between 1968 and 1972, Michael continued and finished them, but he did not do the rest," says Kennedy. "Downtown Kingston is part of Kingston West - Seaga's constituency - so therefore Mr Manley was not going to give Mr Seaga any kudos."

During the 1970s to early 1980s, downtown Kingston underwent rapid economic and social decay. There were many riots and fires as political violence plagued the city, resulting in the exodus of many more businesses.

One of the organisations formed during this period to deal with the city's erosion was the Kingston Restoration Company (KRC).

Founded in 1983 by a trio of leading businesspersons - Maurice Facey, Vayden McMorris and Gloria Knight - the primary goal of the non-profit company was to stimulate commercial activity and create jobs in downtown Kingston. Morin Seymour, who had an impressive track record as managing director of the National Housing Trust, was hired as executive director.

The business model of the KRC involves the acquisition and renovation of derelict buildings, which it then leases out to public and private sector companies. Over 40 such buildings in downtown Kingston have been restored by the KRC, including the United Fruit building on Port Royal Street, which now houses the Jamaica Stock Exchange; the Gold Street Police Station, subsequently leased by the Ministry of National Security; and the old knitting mills on Pechon Street, now the headquarters of Big City Brewing Company.

In 1986, the KRC launched the much-heralded Inner Kingston Development Project, aimed at the development of city's production space, economy and physical appearance. In eight years, over the life of the project, in excess of 400,000 square feet of office and industrial space and over 6,000 jobs were created.

Also, during the 1980s, a redevelopment programme of downtown's market district was undertaken by the Urban Development Corporation, under the directives of Seaga, who was now prime minister. But, in a case of deja-vu, the development stalled after Seaga lost power in the 1989 general elections.

Throughout the 1990s and 2000s, there have been many more proposals aimed at helping to revive downtown Kingston. But industry experts opine that development of the district has been slow because of the absence of a cohesive plan engaging all stakeholders.

"It's all been pretty much hodgepodge," says realtor Anya Levy of Valerie Levy and Associates. "You can't do it in isolation."

For this reason, Levy says that many of the downtown properties are grossly undervalued and the few buying interests have been purely speculative.

"There's no big picture, so people are gambling on what will happen," she says.

Many persons are pinning their hopes on the possible spillover effect from the soon-to-be-opened transport centre on Water Lane. The transport centre, which is costing Government $161 million, will accommodate 273 Jamaica Urban Transit Company buses as well as several commercial shops, and is expected to facilitate 50,000 to 75,000 commuters per day.

"The transport centre can be the hub of the redevelopment," says KCCIC's Kennedy. "It can be a catalyst for what should happen. Start with the transport centre and then everything else will follow."

Testament to the positives that the new transport centre can bring is the fact that 30 businesses have already been confirmed as occupants of the adjoining commercial centre, which is being constructed by ISMID Development company. The commercial centre, which will be on land once occupied by the Queen's Warehouse, will have a food court that will house quick-service restaurants such as Tastee, Island Grill and KFC, as well as a formal restaurant and a sports bar overlooking the bay. The stores that are confirmed for the centre include Maxi, Digicel, Claro and Western Union. There will also be a National Commercial Bank automated banking machine and a police post on the compound.

"It will be the only full shopping centre this side of Half-Way-Tree," says Michael Belnavis, the chief operating officer at ISMID. According to ISMID chief financial officer Mickey Hill, the four-phase project is slated to cost the firm $300 million. More space is being allocated to accommodate a supermarket, haberdasheries, and a bank.

Another redevelopment effort currently taking place downtown is the upgrading of St Willliam Grant Park, the main green area in that part of the city. Work has also started on the Simon Bolivar Cultural Centre at North Parade, which will include a 350-seat multi-cultural centre and exhibit hall.

But, as noted by KRC boss Seymour, it is critical that the redevelopment of downtown is driven by those that triggered its collapse - the private sector.

"There is no point in the private sector backing away and leaving it to the Government," says Seymour. "Government simply won't be able to do it on its own. We have realised considerable successes in Kingston by matching the needs of the existing situation and creating solutions for those problems, which involve the engaging of the private sector in all our intervention strategies."

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