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Follow the discussion live On Twitter @icicorg #WhatWorks. "WHAT WORKS ” : SOLUTIONS FOR CITIES Leveraging Your City ’ s Anchors. March 1, 2012. Mary Kay Leonard, CEO and President Nicki MacManus, Strategy Advisory Practice, ICIC Andrew Frank, Johns Hopkins University. The Opportunity.

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What works solutions for cities leveraging your city s anchors

Follow the discussion live

On Twitter @icicorg

#WhatWorks

"WHAT WORKS”: SOLUTIONS FOR CITIES

Leveraging Your City’s Anchors

March 1, 2012

Mary Kay Leonard, CEO and President

Nicki MacManus, Strategy Advisory Practice, ICIC

Andrew Frank, Johns Hopkins University


The opportunity

The Opportunity

31% of U.S.

minority poverty

  • The nation is experiencing the effects of economic decline and cities in

19% of U.S.

poverty

8% of U.S.

population

0.1% of U.S.

land area

CONCENTRATED POVERTY mandates a comprehensive approach


The opportunity1

The Opportunity

INNER CITIES

-300,000 Jobs

Since 1998

REST OF U.S.

+5.9M Jobs

Since 1998

  • The nation is experiencing the effects of economic decline and cities in


What works solutions for cities leveraging your city s anchors

Percentage of U.S. Employment

Universities and Hospitals are the number one employers in two thirds of inner cities nationwide


The opportunity2

The Opportunity

ANCHOR INSTITUTIONSare a Major

Economic Force in Urban Economies

  • The nation is experiencing the effects of economic decline and cities in

ARTS AND CULTURAL INSTITUTIONS

HOSPITALS

UNIVERSITIES

HOSPITALS


The opportunity3

The Opportunity

ANCHOR INSTITUTIONS, THE COMMUNITY,

AND SHARED VALUE

  • The nation is experiencing the effects of economic decline and cities in

Michael E. Porter, Bishop William Lawrence University Professor at Harvard Business School


The opportunity4

The Opportunity

FROM

COMMUNITY ENGAGEMENT

TO

CREATING SHARED VALUE

  • The nation is experiencing the effects of economic decline and cities in

  • Motivated by “Moral obligation” to help community

  • Service learning and community support at core

  • Focus on community benefits and economic impact reporting

  • Opportunity to drive long-term competitiveness

  • Long-term investments that are integral to core strategy

  • Measure direct impact of activities on anchor and community


What works solutions for cities leveraging your city s anchors

ANCHOR INSTITUTIONS AND THE COMMUNITY: Strategic Framework

Purchaser

Cluster Anchor

Stimulate growth

of related businesses and institutions

Direct institutional purchasing toward local businesses

Real Estate Developer

Core Service Provider

Use real estate development to anchor local economic growth

Tailor core products/ services to serve the community

Community Developer

Workforce Developer

Build local community capacity

Address local workforce needs

Employer

Offer employment

opportunities to local

residents


What works solutions for cities leveraging your city s anchors

Follow the discussion live

On Twitter @icicorg

#WhatWorks

ICIC’S MISSIONIS TO DRIVE ECONOMIC PROSPERITY IN AMERICA’S INNER CITIES THROUGH PRIVATE SECTOR INVESTMENT TO CREATE JOBS, INCOME, AND WEALTH FOR LOCAL RESIDENTS. WWW.ICIC.ORG


What works solutions for cities leveraging your city s anchors

East Baltimore Development, Inc.

Presentation by Andrew Frank Special Advisor to the President on Economic Development The Johns Hopkins University; former Deputy Mayor of Baltimore


Table of contents

Table of Contents

  • Project Overview

  • Baseline Conditions

  • Governance Structure

  • Implementation

  • Sources and Uses

  • Accomplishments and Next Steps

  • New Framework Plan


Vicinity map

Vicinity Map


Project overview

Project Overview

  • Started in 2001

  • Redevelopment of 88 acres in East Baltimore

  • Acquisition of 2,000 properties

  • Relocation of 750 households

  • Master Plan – 1.1 million sq. ft. of commercial lab space, 2,000 housing units, 150,000 sq. ft. of retail space (grocery school), open space, new public school


What made this a priority

What Made This a Priority?

  • New Leadership

  • Renewed Connection to the Business Community

  • New Strategy: Build on Strength

  • Parallel Efforts: Biotech Park

  • Neighborhood Despair


What works solutions for cities leveraging your city s anchors

Baseline Measures


What works solutions for cities leveraging your city s anchors

Baseline Measures


What works solutions for cities leveraging your city s anchors

Baseline Measures


Key initial partners

Key Initial Partners

  • Baltimore City

  • East Baltimore Development, Inc.

  • Casey Foundation

  • The Johns Hopkins Institutions


Governance structure

Governance Structure

  • East Baltimore Development, Inc.

  • Mayor and City Council

  • Land Development and Lease Agreement

  • Economic Inclusion Agreement

  • Master Developer: Forest City – New East Baltimore Partnership

  • Master Development Agreement


Casey foundation inspired development principles

Casey Foundation Inspired Development Principles

  • Involves residents in consequential way

  • Offer intensive family advocacy

  • More equitable relocation compensation

  • Right of Return

  • Training and job readiness

  • Maximize local, minority and woman owned business participation

  • Strict safety protocols for demolition


What works solutions for cities leveraging your city s anchors

Public Private Partnership

Urban Renewal - Condemnation

  • Required legislation to amend five urban renewal plans

  • 2,000 residential and commercial properties

  • Approved before landmark “Kelo” Supreme Court decision

  • City Council rejected previous relocation benefits

  • Supplemental relocation benefits

  • Gentrification fears


What works solutions for cities leveraging your city s anchors

Public Private Partnership

Economic Inclusion

  • Central to the fundamental purpose of EBDI – physical and human capital

  • M/WBE Participation

  • Right-to-Return

  • 37% of EBDI’s $181 million in contracts have gone to MBEs

  • Minorities and women have worked 57.5% of the man-hours generated by the project as of 12/31/10.

  • Third party monitor


What works solutions for cities leveraging your city s anchors

Public Private Partnership

Relocation Benefits

  • Acquisition - fair market value, as determined by two independent appraisers

  • Relocation benefit package includes supplement to the fair-market price for current home to reestablish family in comparable home elsewhere.

  • Supplemental benefit package includes:

    • closing costs and moving expenses

    • home appraisal and home inspection

    • $1,000 resettlement benefit

    • benefits provided by EBDI for real estate tax differentials over a 3-year period


What works solutions for cities leveraging your city s anchors

Public Private Partnership

Supplemental Relocation Benefits

  • Average home value increased from $30,000 to $156,000 in first phase

  • 57 renters used relocation benefits to purchase homes

  • Three post relocation surveys – larger majority report being better off

  • Family Advocacy and Supportive Services


What works solutions for cities leveraging your city s anchors

Public Private Partnership

Family Advocacy and Supportive Services

  • Family Advocate assigned to every household

  • Connects families to needed services

  • Job training, substance abuse, mental health counseling, childcare, credit counseling, health care

  • Of 206 homeowners relocated, only two foreclosures


What works solutions for cities leveraging your city s anchors

Public Private Partnership

Workforce Pipeline and Job Creation

  • Resulting from the Workforce Pipeline (1/2004 12/2012): 554

  • Construction jobs: 813

  • Permanent jobs: 759

  • Total Job Placements: 2072

  • Total Job Placements East Baltimore: 755


What works solutions for cities leveraging your city s anchors

Sources and Uses


What works solutions for cities leveraging your city s anchors

Public Private Partnership

Section 108 Funds

  • Federal program to borrow against future Community Development Block Grant (CDBG) allocation

  • Approved for an earlier failed program.

  • Approved prior to “Kelo” decision


What works solutions for cities leveraging your city s anchors

Public Private Partnership

Tax Increment Financing

  • What is Tax Increment Financing (TIF)?

  • $85 million EBDI TIF

  • TIF Repayment

  • Casey Foundation

  • Vertical Construction

    • Government Buildings

    • Non-Profit Development

    • Residential Development


What works solutions for cities leveraging your city s anchors

Public Private Partnership

Foundation Partners

  • Johns Hopkins Institutions

  • Casey Foundation

  • Weinberg Foundation

  • Rouse Foundation

  • Goldseker Foundation

  • Abell Foundation

  • Atlantic Philanthropies


What works solutions for cities leveraging your city s anchors

Selected Accomplishments

  • 1,800 of 2,000 properties acquired

  • 720 of 725 households relocated (to better housing in safer neighborhoods)

  • 96% of residents of remained successfully housed; only foreclosures of 228 homeowners.

  • Average Phase II homeowner relocation benefit: $175,000

  • 58 renters became homeowners

  • $67.2 million (37% of all contracts) to M/WBE

  • 2,700 residents placed into jobs


What works solutions for cities leveraging your city s anchors

Progress Ahead


What works solutions for cities leveraging your city s anchors

Rangos Building Retail

  • Teavolve

  • Milk and Honey

  • Atwaters

  • Cuban Revolution

  • 7-11


What works solutions for cities leveraging your city s anchors

House for a House

and Home Repair Program


What works solutions for cities leveraging your city s anchors

House for a House

and Home Repair Program

  • 20 “House for House”

  • 20 “Home Repair Program”


Graduate student housing

Graduate Student Housing

  • 321 units

  • 573 beds

  • $60 million

  • Open August 2012


What works solutions for cities leveraging your city s anchors

1,500 space Parking Garage


What works solutions for cities leveraging your city s anchors

Maryland Public Health Lab

  • 130,000 sq. ft.

  • $160 million

  • 350 jobs

  • 2011 second quarter ground breaking


What works solutions for cities leveraging your city s anchors

2011 SUMMARY RECOMMENDATIONS

FOREST CITY NEW EAST BALTIMORE PARTNERSHIP

21 August 2011


What works solutions for cities leveraging your city s anchors

Retail

R&D Proposed

R&D Built

Hotel

2006 PLAN

2011 FC-NEBP

RECOMMENDATIONS

School

Parking Garage

New Residential

SUMMARY DISCUSSION DRAFT 21 AUGUST 2011

Rehab Residential

Completed Residential


The arguments for wellness

The Arguments for Wellness

Demand:

  • Market research identified wellness most desirable theme

  • Marketability of Beacon Park as a cutting-edge, model wellness community

    Need:

  • Urban/Suburban health disparity

  • Preventative medicine can lower healthcare costs

Opportunity:

  • Proximity to JHMI is a unique opportunity to partner in pioneering wellness research

  • Current political attention means opportunity for logistical and financial support

  • Successes could be replicated throughout Baltimore, and even nationally

DRAFT FOR DISCUSSION 7-28-2011


What works solutions for cities leveraging your city s anchors

BIG MOVES

Gateway

43


What works solutions for cities leveraging your city s anchors

Park Looking South to Gateway Block

44


What works solutions for cities leveraging your city s anchors

Ashland Street at Wolfe Street Looking West

45


What works solutions for cities leveraging your city s anchors

46


What works solutions for cities leveraging your city s anchors

BIG MOVES

Residential

47


What works solutions for cities leveraging your city s anchors

EAGER STREET

RESIDENTIAL PROGRAM

  • 1st Phase Eager Street Buildings Expected to Stimulate Demand

  • TOTAL UNIT TYPE COUNT

  • Apt / Loft Rental: 236

  • SF Townhouse For Sale: 28

  • Stacked Duplex For Sale: 34

  • SF Townhouse For Rent: 7

  • SF Rehab Townhouse For Sale: 40

  • Total Residential Units: 345

  • UNIT TYPE BREAKDOWN

  • 1 Bedroom Apt / Loft Rental:

    • - Eager Street: 155

  • 2 Bedroom Apt / Loft Rental:

    • - Eager Street: 81

  • SF Townhouse For Sale:

    • - Eager Street: 10

    • - UME / Mews: 18

  • Stacked Duplex For Sale:

    • - Eager Street: 34

  • SF Townhouse Rental:

    • - UME / Mews: 7

  • SF Rehab Townhouse For Sale:

    • - UME / Mews: 15

    • - McDonough: 25

Apartments / Lofts (236)

Stacked Duplex (34)

SF Townhouse (28)

SF Townhouse Rental (7)

SF Townhouse Rehab (40)


What works solutions for cities leveraging your city s anchors

BIG MOVES

Retail

49


What works solutions for cities leveraging your city s anchors

50

RETAIL SPACE PLAN

Retail success depends on drawing shoppers from larger trade area beyond the 88 acres.

SUMMARY DISCUSSION DRAFT 21 AUGUST 2011

50

0

100’

300’

500’


What works solutions for cities leveraging your city s anchors

BIG MOVES

Office/Lab Buildings

51


What works solutions for cities leveraging your city s anchors

COMMERCIAL

Completed

R&D:

Under Development

R&D:

Retail: 11,000 sf.

Parking Garage

(spaces):

Next Phase Development

R&D:

Commercial:

- Hotel

- Retail

Future Pipeline

R&D:

Parking Garage

(spaces):

TOTAL (GSF):

TOTAL (SPACES):

280,000 sf.

235,000 sf.

1,400

435,000 sf.

160,000 sf.

80,000 sf.

815,000 sf.

1,000

1,955,000

2,400

PH 4

PHASE 3

GARAGE

PHASE 2

GARAGE

PH 4

PH 3

PH 4

PH 2

PH 1

PH 3

PH 3

PH 4

PH 4

PH 1

PH 3

PH 4


What works solutions for cities leveraging your city s anchors

BIG MOVES

School

53


Lessons learned

Lessons Learned

  • Community Support

  • Impact of Recession

  • Mixed-Income Community

  • Retail

  • Raised Expectations

  • JHU Leadership

  • JHU as an Anchor Elsewhere


What works solutions for cities leveraging your city s anchors

Share comments and suggestions

on Twitter @icicorg using

#WhatWorks

Thank you for joining us today for the What Works webinar.

NEXT WEBINAR: April 18, 2012 from 2:00-3:00 p.m.

“How to Cultivate Your City’s Food Cluster”

ICIC’S MISSIONIS TO DRIVE ECONOMIC PROSPERITY IN AMERICA’S INNER CITIES THROUGH PRIVATE SECTOR INVESTMENT TO CREATE JOBS, INCOME, AND WEALTH FOR LOCAL RESIDENTS. WWW.ICIC.ORG


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