Pago Partners: How we work with the Sagamore Institute to renew downtowns

Pago USA works with a large number of organizations and individuals to restore declining downtowns and kickstart economic engines.

The Sagamore Institute is one of those key partners. Pago works directly with the Indianapolis-based think tank to revitalize downtowns in the Midwest because of their unique focus on economic development, local identity and emphasis on personal responsibility.

Rob Panos, chief of staff at the Sagamore Institute, says his team relies on Pago USA to help with the physical infrastructure of economic development projects because of their expertise in determining which buildings community leaders should buy and rehabilitate.

But how does rebuilding a community’s declining downtown fit into the Sagamore Institute’s mission?

People are central to the Sagamore Institute

As Panos put it, there are three main pillars of the Sagamore Institute mission: economic opportunity, national security (and the Midwest’s role in it) and citizenship development.

To implement these goals, Sagamore does traditional think tank research and policy work, but it also takes the initiative out to where it wants to see change, such as with its Renewing Cities project in partnership with Pago USA.

Renewing Cities helps communities across Indiana restore their historic downtowns to boost community pride and make small-town America a place where people have enhanced opportunities for personal and professional growth.

“We see that as fitting inside of our opportunity pillar,” Panos said about the Renewing Cities, which is specifically focused on small communities in Indiana.

Panos said the initiative highlights the need for the Institute’s work on good citizenship.

“Leadership is essential. Community engagement is essential,” Panos said. “You know, we can’t wait for a solution from the outside. These communities need to step up and we want to give them the tools to do that.”

First people, then projects, and now a portfolio

It mirrors one of the key Pago principles: Communities need to invest in their own downtown revitalizations first. Large-scale changes to a downtown start with concerned residents who worry about how things will look in 50 years and are willing to take action.

Panos said Sagamore has done economic development work over the years and some work in small towns, but the projects in the last year, including some with Pago, have become “more of a portfolio of work.”

Bill Taft, a senior fellow and the director of Interurban at Sagamore, works with those behind economic development and placemaking by equipping local leadership with the skills and capacities to be effective in seeing change in their communities.

“We like to say that our partnership with Pago is focused on the infrastructure and the buildings,” Panos said. “What Bill does is the people side of that equation.”

“Those two things together are really strategic,” Panos said.

Pago USA brings project-specific expertise as a partner

Specifically, Pago USA brings development expertise to the table, including the identification and purchase of properties as well as organizing and building the overall capital stack for the project.

It’s very synergistic, however, according to Panos. Pago benefits from the policy work and the reputation Sagamore has in the state.

Sagamore also has an impact investing platform called Commonwealth, which raises money primarily from individuals and institutions.

“We focus on a lot of philanthropic capital as investment using philanthropy as investment into a project,” Panos said. “And so we’re able to fill part of the capital stack, 10% to 15% of the overall need for a community in this model.”

Panos said that Pago is able to leverage the variety of capital sources from investors, banks and tax credits to finance a downtown revitalization project.

“They’re bringing that overall model in a way that we don’t have that expertise,” Panos said. “We have kind of a narrow piece of that capital stack.”

To learn more about the Sagamore Institute and its initiatives such as Commonwealth, go to sagamoreinstitute.org.

The Sagamore Institute and Pago USA continue to work together to help Midwest communities restore their downtowns to restore economic opportunities for generations to come.