Banks are boosters of their downtowns

The health of urban downtowns is a high priority for many banks. It is being enhanced in many ways, from big new headquarters buildings like the structure First National of Omaha unveiled last month, to financial support and leadership for such disparate items as loft apartments and downtown sports arenas.

Sometimes the structures are not as spectacular as First National's but nonetheless symbolic of commitment. Such a case is UMB Bank's $20-million technology and operations center under construction in a formerly blighted area of Kansas City's urban landscape. The 130,000-square-foot-project is viewed as a revitalization of the urban core and an expansion of the central business district.

Also in Kansas City, Bill Nelson, head man for NationsBank (soon to be Bank of America), is spearheading a drive to construct a downtown sports arena with the goal of attracting a major league basketball or hockey team.

In Albuquerque, locally owned First State has expressed a strong commitment to downtown revitalization, according to the Albuquerque Journal. In addition, the presidents of NationsBank New Mexico and Norwest Bank of New Mexico sit on a committee formed recently to develop plans for revitalizing downtown, the newspaper said.

Projects in the ambitious undertaking may include apartments, lofts and townhomes, art galleries, a theater for performing arts, tourist attractions, a supermarket, shops and parks and parking space.

Attracting people downtown to live is always a concern in efforts to rejuvenate urban spaces, and that is the goal of a $5.3million commitment by NationsBank in St. Louis. In an unusual arrangement, that institution is investing cash equity and taking a long-term ownership position in the building.

The structure, now vacant, will be developed into mixed-rate loft apartments with a first-floor gallery and artists' work space designed to serve as a hub of community activity downtown. Sixteen of the 26 units will be rent restricted, with first preference given to alumni of the unversity's art school. The remaining 10 units will be rented without restrictions and a faculty member from the art school will serve as artist-in-residence.

The project is a partnerhip between the bank, Washington University and the Regional Housing and Community Development Alliance (RHCDA). Washington University will donate the building to RHCDA, and RHCDA and NationsBank Community Development Corp. will own the building under a partnerhip arrangement.

Downtowns struggle in both urban and rural communities. Fortunately banks both large and small, regional, national and locally owned, are seeing the benefits of healthy central business districts and providing the leadership and financial support to achieve that goal.