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Exhibit 3

City of Milwaukee/Sherman Park, Racial Composition of Census Tracts, 1990

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Sources: U.S. Census, 1990; Nonprofit Center of Milwaukee Data Center

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Industrial Development

Industrial growth came first, following railroad lines along what is now Sherman Park's eastern boundary. Over the past 30 years, this once-bustling manufacturing area has deteriorated as the rail links it provided declined in importance to industry. Like the city of Milwaukee as a whole, the area has also been adversely affected by the nationwide trend toward fewer and relatively lower paying manufacturing jobs. Between 1975 and 1990, Milwaukee lost more than 27,500 manufacturing jobs. Gains in service-sector jobs did not fully compensate for theses losses (Squires, 1994). A.O. Smith Corporation and Master Lock are major manufacturers that still operate in the rail corridor. A.O. Smith's Sherman Park facilities have been purchased since this article was written. They carry on their work as Tower Automotive. Many others remain, but the corridor also has several vacant and deteriorating industrial sites. Obstacles stand in the way of reinvigorating this area, but cooperative efforts are now being made to accomplish this.

The 30th Street Industrial Corridor Corporation is the local entity leading these reinvigoration efforts. This group, a spinoff of SPCA, works with more than 100 member businesses and local, State, and Federal governments. The corporation's main focus is job creation. It has helped create business incubators in new and unused buildings, and provides technical assistance to help neighborhood companies devise business plans and obtain financing. The corporation has also obtained commitments for millions of dollars from local and State governments to clean up brownfields, contaminated urban sites that have been rendered unusable because of past pollution.

Residential Development

Most of the neighborhood's residential development took place from the 1920s to the 1940s. Development generally went from the eastern to the western sectors of the neighborhood. Homes were built on city lots with small yards. In the far eastern neighborhood, mostly small, frame, single-family homes were interspersed with duplexes near the industrial corridor. The neighborhood to the west included housing for the well-to-do on such stately streets as Grant and 51st boulevards. These streets featured architectural showplaces in a wide variety of styles. Single-family "Milwaukee bungalows," generally more substantial and often constructed of brick and stone, were built in these sectors. Duplexes and some small apartment buildings were also built in the original Sherman Park neighborhood.

One striking neighborhood feature is the economic diversity that developed when housing for people with low incomes was constructed in close proximity to housing for people with moderate to high incomes. Children living in duplexes designed for working-class people needed only to cross an alley or go down the street to play with children of professional families living in showplace homes. Census data show that Sherman Park began as a neighborhood that attracted a diverse group of European Americans. (Restrictive covenants, since ruled invalid, barred sales of many neighborhood homes to African-Americans.)

Commercial Development

Commercial development in Sherman Park took place on neighborhood shopping strips along major city streets. These business strips suffered when forced to compete with malls and superstores found outside the neighborhood and designed for easy automobile access. Still found along Sherman Park's original business strips are small grocery stores, restaurants, video stores, pharmacies, financial institutions, bars, laundries, and an array of other specialty shops. Many small businesses thrive on these strips. Yet vacant and even abandoned commercial properties are evident in the far eastern sector of the expanded Sherman Park neighborhood. Local businesses have joined with each other, the city, and SPCA to address their desire to have vibrant commercial strips continue to serve the neighborhood.

Old-style commercial strips have been challenged by the changing retail scene nationwide. Yet there seems to be a continuing niche for such local business strips, primarily because investment in the neighborhood shopping infrastructure continues. Banking consolidation has changed the names of some local Sherman Park financial institutions, but the affected branches continue to serve the community. As family-operated pharmacies have closed, chain stores have moved in to replace them. Organized and broad-based support for investment in neighborhood retail operations may stem the institutional disinvestment that has greatly damaged other Milwaukee neighborhoods.

Another major retail force affecting the Sherman Park neighborhood is the Capitol Court Shopping Center. This mall, located across the street from Sherman Park's northern border, was the metropolitan area's most prosperous shopping center as recently as the 1960s. In 1996 the mall's only remaining anchor store, a Target department store, closed. Serious questions abound about the future of this neighborhood resource. The Target store is the last major retailer to leave the area. A recent story in the Milwaukee Journal/Sentinel newspaper focused on the complete absence of major department stores and superstores in a huge area stretching across the center of the city (Norman, 1995). Sherman Park residents who live near Milwaukee's western border still have fairly easy access to such stores. To get to them now, however, they must visit downtown Milwaukee or its western suburbs.

Hypersegregation of African-Americans

Juliet Saltman provides a short history of African-American population growth and movement in Milwaukee in her book, A Fragile Movement: The Struggle for Neighborhood Stabilization (Saltman, 1990). She notes that less than 2 percent of Milwaukee's population was African-American in 1940. The city's 8,821 Blacks lived in an area four blocks long and three blocks wide just northwest of Milwaukee's downtown.

Saltman cites a Milwaukee Journal article dated September 16, 1924, to help explain how this racial isolation developed. The article notes that the Milwaukee Real Estate Board was concerned that something be done about the rapidly growing Negro population. These 1920s social engineers were amazingly successful. They discussed restricting the Negro population to an area on Milwaukee's west side if means could be found to make it practical. In only 16 years their work was complete. Racial exclusion and steering of Black renters and homebuyers to the west side resulted in an amazingly thorough isolation of the Black community for the next 30 years.

Census data from 1950 and 1960 chronicle the rapid growth of Milwaukee's AfricanAmerican population. Saltman notes that by 1967 Milwaukee's Black population had reached 12 percent of the city's total. As late as 1967, only 320 Black families-out of a population of nearly 90,000 individuals-lived outside Milwaukee's Black ghetto. Saltman adds that most of those 320 families lived in blocks that bordered the ghetto and included a part of what is now known as the Sherman Park neighborhood.

Milwaukee was and remains one of the most racially segregated cities in the Nation. It was given a hypersegregated designation based on a number of measures devised to provide comparative data on residential racial dissimilarity for cities around the country (Massey and Denton, 1993). Urban geographer Leonard Pettyjohn chronicled a block-byblock pattern of Black migration to the west and north in Milwaukee during the 1960s (Pettyjohn, 1967). Armed with a statistical model and the computing facilities available at the time, Pettyjohn projected continued “ghetto intensification, initial infiltration of White blocks, and concomitant extension of the ghetto." His model relied on a continuation of the housing practices of the previous 43 years.

In the 29 years after Pettyjohn's predictions, we have seen an expansion of majority Black blocks in areas contiguous to the 1967 ghetto. We also have witnessed a new phenomenon in Milwaukee: The city's Black population has more than doubled, but the pattern of complete isolation of African-Americans shows signs of changing. Although Milwaukee remains one of the most segregated cities in the Nation, many Black homeowners and renters now live in integrated census tracts far outside the overwhelmingly AfricanAmerican inner city. The movement of Blacks into integrated tracts is a hopeful sign. At the same time, however, the pattern of segregation dominates.

In 1970 only 202 of the 38,887 residents of the original Sherman Park neighborhood were African-Americans. This represented only about 0.5 percent of Sherman Park residents. Since 1970, census tracts to the east and north have been added to the area now called Sherman Park. In the 1980s these tracts, which were adjacent to Sherman Park, were added to SPCA's coverage area when the city of Milwaukee found that no community organization served them. In a citywide effort to have all communities served by at least one community organization, the city approached SPCA to see if it would be willing to annex the tracts to its service area. SPCA agreed. The additional census tracts to the east of Sherman Park's original boundaries include older, poorer, and more industrial neighborhoods with more Black residents. Those census tracts that extend the neighborhood's northern boundaries are demographically similar to the tracts just south of them. When census data for the expanded neighborhood is considered, 1,906 of the 55,514 people in the area in 1970 were African-Americans. This accounting change yields a greater-thanninefold increase in Sherman Park's Black population.

These statistics show how misleading racial composition figures can be for an area bordering a neighborhood that is undergoing racial change. In 1970 the Sherman Park neighborhood was either 0.5 percent Black or more than 3.4 percent Black, depending on which eastern boundary was used when compiling the figures. To get a more accurate picture of the racial change taking place in sections of the neighborhood, it is helpful to look at north-to-south strips of census tracts with similar demographics.

Obviously, the eastern tracts that were added to SPCA had already undergone significant racial change between 1967 and 1970. In 1967, as Saltman pointed out, Black families were just beginning to move into the tracts to the east of SPCA's original boundaries. By 1970 these tracts were nearly 25 percent African-American and were well on their way to becoming part of the overwhelmingly Black Milwaukee inner city.

This eastern sector of Sherman Park has gone from overwhelmingly White to overwhelmingly Black in the space of 25 years. Exhibit 5 tracks the total population and racial composition of this annexed eastern sector of Sherman Park from 1970-90. (In 1970 Hispanic residents were counted in White and Black totals. In 1980 and 1990, Hispanic residents were counted in other racial groups.)

A recent survey of Sherman Park residents showed that most of them are not even aware that official SPCA boundaries include annexed eastern census tracts (Sherman Park Neighborhood Planning Committee, 1995). Racial change, disinvestment, and decay were already well underway when this neighborhood was included in the Sherman Park neighborhood. Since what happens in the eastern census tracts influences what will happen in adjacent tracts, neighborhood quality-of-life issues remain important to the larger community. Demographic trends indicate that the percentage of African-American residents in the city of Milwaukee will continue to grow. Although there is little prospect for reintegration of this neighborhood in the near future, there is

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