Pago Principles: Communities need to invest in their own downtown revitalizations first

Pago USA’s unique model relies on principles proven to help communities leverage their deteriorating downtowns into a more promising economic future. One of the main keys to success is a community’s willingness to invest in its own recovery.

Instead of waiting with open hands for a government grant, a large employer, or out-of-town developer to fall out of the sky and into their backyard, the local private sector needs to put the necessary financial resources into their future.

Principle: A community must put its shoulder to the plow

A community looking to change its trajectory needs to invest in itself. Van Wert, Ohio — where Pago USA’s model has helped it transform its downtown — makes an excellent case study in this principle.

The community located 34 miles from Fort Wayne, Indiana, had been saving up money to invest. Members of the community were willing to raise and invest the money because they believed in their community. Community foundations put their resources behind the restoration. They backed that up with action rather than indecision.

Outsiders saw the investments Van Wert’s residents were making, and they wanted in on the project. The community’s grit has a ripple effect.

Why would people give away their hard-earned money to a community foundation or trust? Because they want to see their hometown flourish and the dilapidated, historic buildings restored to their former glory. They want to invest in the town itself.

One of the county commissioners from Van Wert county, Thad Lichtensteiger, put it this way: “Van Wert people can be as tight as the bark on a tree, but if you convince them of the need and there’s a legitimate need that they should contribute to, they can give almost an embarrassing amount.”

We believe this reality is not unique to Van Wert.

Principle: If towns do nothing, no one else will do it for them

Van Wert was a giving community with a vested interest in its redevelopment. Still, it’s always difficult to ask people to get out their wallets or start writing checks. But Lichtensteiger emphasized communicating the stakes of a redevelopment project.

“We’re never going to see another opportunity like this — ever,” he said. “How do we explain this to people 10 years down the road if we don’t do anything?”

The Pago USA model puts a community in control of its own future. Through investing in a development project, it can flip the script of economic decline and look for many brighter days to come. But that means leaders must take the initiative.

Principle: Don’t wait for good luck — make it instead

After Van Wert started investing, the revitalization project soon attracted the attention of the state and federal governments, companies and private investors. Instead of waiting for a streak of good fortune, the town made its own luck by putting its money behind its ambitions.

Towns can wait for something to magically swoop in and restore its economic outlook. Or they can apply the lesson the farmer in the famous fable learned: Heaven won’t help those who don’t help themselves.