Photo by Travis Pratt One of the projects along Carroll Creek in Frederick is the nearly completed South Market Center.

Luxury apartments are now under construction at the corner of South and Market streets; new restaurants are doing plenty of business on nights and weekends; and construction workers are busy along Carroll Creek Park, which could one day become the economic center of Frederick city.

"This is the next logical step for the city of Frederick ," said Richard Griffin, the city's director of economic development. "We have an opportunity with the resurgence in downtown."

The Carroll Creek Park Project has been ongoing through four separate city administrations and three decades, according to the city. Three buildings are now under construction, Mr. Griffin said: South Market Center, La Paz Mexican Restaurant, and Maxwell Place.

A fourth building, Creekside Plaza, has completed the permit and approval process, he said. The other sites are in various stages of planning.

Mr. Griffin estimated the project will create 1,000 new jobs in Frederick in a variety of fields, from legal, finance and marketing to blue-collar and retail jobs. Hundreds of thousands of dollars in property taxes will also flow into the city's coffers each year as a direct result of the development, he said.

A benefit to the project is the self-sustaining relationship between downtown businesses and restaurants, Mr. Griffin said, as well as preventing flight out of Frederick city.

He pointed to the depletion of populations in the big "Rust Belt" cities such as Detroit, Cleveland and Pittsburgh as an example of what can happen if economic development stagnates.

"(The project) helps to continue to define downtown as the center of commerce, culture and employment," Mr. Griffin said. "We're very fortunate that that trend (in other cities) has not happened in Frederick ."

Mayor-elect Jeff Holtzinger said his administration's responsibility will be to make sure infrastructure can support the increased traffic.

"I think it's very important (economically)," he said. "It's also important we focus on getting the transportation components completed."

Connecting the Carroll Creek project to East Street and tying it into Monocacy Boulevard to provide an eastern bypass to the city are critical, Mr. Holtzinger said. Also, the mayor-elect wants to see a completion of the flood control project on the creek.

"I just want to make sure we're not going to be causing ourselves a problem," he said. "It'll still be a good area, I just definitely think (completing infrastructure) will make it better."

Carroll Creek will be an opportunity for entrepreneurs and small business owners, Mr. Holtzinger said, and he hopes the new businesses will complement, rather than compete with, the present downtown economy.

"(Small business owners) are the type of people who make the downtown area interesting," Mr. Holtzinger said.

Mr. Griffin said the project would have a positive effect on businesses looking to move to Frederick . He said the overall economic improvements in the region, such as the recent expansions of MedImmune and BP Solar, are making the downtown development possible.

"When you see a community that's investing in itself, that's recruiting in itself, you see confidence in the business community," Mr. Griffin said.

A divisive downtown?

On the western end of Carroll Creek, behind the Frederick County courthouse, a message is scrawled in stark white spray paint, contrasting sharply with the asphalt walkway to the park's construction and downtown.

"Gentrification is racist," the graffiti reads.

During the recent city election campaign, candidates frequently discussed the issue of affordable housing and the impact of the changing culture of downtown Frederick .

Gentrification is the process of revitalizing lower-class neighborhoods into high-priced districts, often running out the former residents in the process with the increased housing prices.

James Upchurch, the president of Interfaith Housing Alliance Inc., said gentrification has its benefits in improving the downtown corridor, but it contributes to the growing problem of providing affordable housing.

"We're now gentrifying Frederick on several levels," he said. "The question is whether the communities are concerned enough about lower-income people."

Mr. Upchurch said the city has had problems in meeting its affordable housing goals.

"There is some growing concern about this, as we look at the fact many people (who work in Frederick city) have to live in the county," he said. "There's a price that we as a society pay when that happens."

A moderately priced dwelling unit ordinance, which grants builders incentives for providing a percentage of lower-priced housing in new developments, would be helpful in alleviating the situation, Mr. Upchurch said.

"We're back not only to the question of shelter. The values of our community itself are at stake here," he said. "Great things are happening (at Carroll Creek) but it has to be looked at in a context of a much greater problem."

Mr. Griffin said the city recognizes the problem when trying to balance economic development and housing.

"There is no doubt affordable housing is one of the biggest workforce issues in Frederick . As a staff we're going to do everything we can," he said. "On the other hand, you can't ignore the opportunity to improve your community."

Alderwoman Marcia Hall, a member of the city's Carroll Creek Task Force, said downtown's development is not going to benefit just Frederick 's more affluent residents.

"As with many issues, it is sometimes to the benefit of either side to polarize the subject," she said. "I think the economic health of our community helps us all."

Increasing tax and business income positively affects the ability of the city to provide services to its citizens, Ms. Hall said, and an improved downtown can create a larger urban population that will sustain the city's center.

"I think there's a real demand there and can only improve the standing of all our downtown residents," she said.

Ms. Hall said the city needs to concentrate on partnerships with private groups such as Interfaith Housing, land donations, cost deferments and incentives through a MPDU ordinance.

But there is a limited amount the government can do with rising rents.

"Government has no control over the private homeowners," Ms. Hall said. "Most of our downtown is privately owned."

Mr. Holtzinger also said government has its limits, and rent control is not a proposition he would consider. The market, more so than politicians, is in control, he said.

"We have to keep an eye on that, but the fact of the matter is, there is no easy answer," he said. "What's the alternative? Do we say no more development downtown?"

Mr. Holtzinger said a MPDU ordinance will be a priority for his administration.

"We have to do something and that's one of the tools (government has)," he said.

Mr. Griffin said creating a vibrant downtown will set a tone for the rest of the city's residents.

"To see downtown doing well sends a strong message," he said. "We want to take that message out to all the communities in Frederick : You can improve your neighborhood."

The first building to be completed in the project will be the La Paz Restaurant, Mr. Griffin said, estimating the new location will be open and ready for business in January.