South Downtown’s first test was a runaway success. During the World Cup, thousands visited the newly revitalized neighborhood and its local bars and restaurants. SoDo leaders called it a perfect “opening party.”
Now what?
SoDo is officially scaling back. According to CEO Jon Birdsong the neighborhood is taking a yearlong pause — and letting go of all four project managers on staff.
“The plan has always been to gear up, invest a lot of money, have the World Cup be the opening party, then gain market signals,” Birdsong said.
His reasoning is simple: there are no more projects to manage, so the staff needed to shrink. It marks the official completion of Phase One, a “world-class sprint” to get the 10-block makeover up and running for the World Cup.
“This was a true once-in-a-lifetime opportunity, and the team knocked it out of the park,” Birdsong said.
With phase one finished, South Downtown plans to “pause” for a year before taking on any new projects. Birdsong said this has always been the plan, and SoDo is helping the former staff members find new jobs.
One of the former project managers declined to comment on the story.
According to Birdsong, the entire company is moving from “build at all costs” to “operational efficiency.” It’s a distinct shift for South Downtown’s breakneck pace. It’s a waiting game.
For the next year, South Downtown’s remaining staff will watch the so-called market signals: How many commercial spaces are leased, how many apartments are filled and how well the restaurants perform.
“We’re not just going to build a bunch of housing if people aren’t renting out the 26 apartments we do have,” Birdsong said.
There are some promising early signs from the market. Six of the 26 apartments have already been rented in the past 20 days. But there’s no way to know how the market responds until it responds.
For now, Birdsong wants to get the neighborhood in a “sustainable state.” He said the roles and responsibilities may shift for staff in the meantime. But after the yearlong “pause,” SoDo will kick off phase two.
Phase two is when projects could pick back up, and when there may be a need for more project managers. In the meantime, Head of Development Kevin Murphy will handle any incoming work.
“South Downtown, from a people perspective, is going to be like an accordion for the next 50 years,” Birdsong said. “It’s going to be big and full and then other years it’s going to be tight.”
