Urban redevelopment and basic priorities

One interesting thing I've noted lately is the propensity of governments, large and small, to decide that it's their job (and thus the taxpayer's) to "redevelop" areas. Examples include something like $43 million paid by Minneapolis to "rebuild" Block E, St. Paul's consideration of "forgiving" $65 million in loans for the Exel Energy Center, light rail (about $1B), Malaysian development of cell phone links, and my own town's goal of making its downtown like that of Stillwater(tens of millions, most likely).

In all of these, I must wonder something very simple; how much more development might occur if just a fraction of the amount spent had been put into, say, police, roads, sewers, and fire departments--areas traditionally under the responsibility of these governments.

To use "Block E" as an example, Borders didn't lose money on the deal (along with the city) because the buildings were poorly constructed. They lost money on the deal because customers are afraid to go downtown these days. If the city takes care of its responsibility for roads and public safety, the builders will do the rest for them.