Without sufficient jobs and decreasing middle-class population, city progress slowed. The declining economy increased the pressure of competition and racial tensions. These flared from 1968 to 1980. Following the assassination of King in 1968, Petersburg was the first city to designate his birthday as a holiday, an observance that is now a national holiday. Regional tensions were heightened by the city's two large annexations of adjacent portions of Dinwiddie and Prince George Counties in the early 1970s. Despite the large addition of suburban school-age children, a downward trend in public school enrollment continued. Projected industrial development of large tracts of vacant land in the annexed areas did not materialize. In 1985 city leaders were unable to keep Brown & Williamson tobacco company, a top employer, from relocating to Macon, Georgia. The company, disappointed in the city council's vote to raise taxes on tools and machinery, relocated to a market with lower taxes. Partially due to the vacant land still available for potential industrial development, which had been used as justification for the earlier annexations, in 1986 the city failed in its attempt to annex a large section of neighboring Prince George County. It had hoped to enlarge its area for schools and tax base. When negotiations soured in 1989 to build a new regional mall in Petersburg, the city suffered an economic setback. Numerous remaining retail merchants relocated to the new Southpark Mall area in adjacent Colonial Heights. In a typical postwar US pattern, suburban development through the late 20th century drew off retail from the former downtown area. It was once vibrant near the north end of Sycamore Street but had declined by the late 20th century because of structural changes in industries, and loss of local jobs and customers. 21st century In the early 21st century, Petersburg leaders are highlighting its attractive historical and industrial sites, with associated access to an exceptionally wide transportation network. As of 2007, Petersburg continued to evolve as a small city, even as the nature of its commercial activities changed. Downtown Petersburg, known as Old Towne, began experiencing a rebirth. The Army has substantially expanded activities at nearby Fort Lee, home of the United States Army's Sustainment Center of Excellence, as well as the Army's Logistics Branch, Ordnance, Quartermaster, and Transportation Corps. References Petersburg, Virginia petersburg