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Can an arena drive development? In the case of Dallas, the answer seems to be no

A decade ago Ross Perot Jr. and Tom Hicks laid out their plans for Victory Park, a 75-acre mixed-use development designed to lure people back into downtown Dallas with a new area, upscale shopping and top-notch restaurants. The area does OK when there are events at American Airlines Center, but things are slow when the facility is dark, and with several high-profile businesses bailing on Victory Park, the question is whether the arena-development formula — as we’ve seen emulated in several other cities — really works in a large urban area.
A decade ago Ross Perot Jr. and Tom Hicks laid out their plans for Victory Park, a 75-acre mixed-use development designed to lure people back into downtown Dallas with a new area, upscale shopping and top-notch restaurants. The area does OK when there are events at American Airlines Center, but things are slow when the facility is dark, and with several high-profile businesses bailing on Victory Park, the question is whether the arena-development formula –as we’ve seen emulated in several other cities — really works in a large urban area.

On event nights, the restaurants and bars are crowded, and the shops are hopping. On the average night, however, the area is deserted, and as the economy suffers so do the vendors of Victory Park. A planned hotel development was scrapped earlier this year, while high-profile Italian restaurant Nove Italiano closed last month.

It’s not surprising that developers are still tweaking the formula: when Victory Park was proposed, the notion of tying neighborhood development to a sports facility was still untested. And in smaller cities, like neighboring Frisco, the development of a sports facility (a baseball stadium, in this case) has been a clear economic positive.

But in larger urban areas, the positive impact of a new sports arena is less clear. While Xcel Energy Center has been a huge success, its impact on downtown St. Paul is less clear; office occupancy rates remain high, and redevelopment is limited to bars and restaurants along the West Seventh corridor. In Newark, the new Prudential Center has had a minimal impact, though it’s far too early to render a final judgement.

As VIctory Park was one of the first such sports developments, its progress is closely watched as an indicator for others planning similar endeavors. And city officials are concerned about its future: what’s there now is merely the first phase, with $4 billion in development slated for future years. A planned light-rail station will help. But you can’t help but feel some nervousness among city leaders and business owners about the area’s future.

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