Greater University Circle Wealth      Building Initiative Daniel Budish Department of Economic Development City of Cleveland
University Circle
University VACANT LAND           Circle Vacant Land
Water Shut Offs/Tax Delinquencies              /Foreclosures  WATER SHUT OFFS / TAX DELIQUENCIES / FORECLOSURES
Overall Distress NEIGHBORHOODS AT RISK
Mission• The Greater University Circle Initiative  (GUCI) demonstrates how an older industrial  city can build upon its as...
Timeline• 2003:   – Neighborhood Connections• 2005:   – Greater University Circle Initiative   – Evergreen Cooperatives• 2...
Euclid Ave. Streetscape and BRT
Timeline• 2003:   – Neighborhood Connections• 2005:   – Greater University Circle Initiative   – Evergreen Cooperatives• 2...
Challenges•   Geographical Fiefdoms•   Organizational competition•   Difficult to use $$•   Town-Gown Dynamics
Programs                                              GoalsStrategies                     Buy    Hire            Live    C...
Program Focus     Areas• “Self Help”   – Local Procurement Database,                                          Strategies  ...
Focus Area: “Self Help”“We believe in what we call self-help, meaning if we are spending         money, we should be spend...
Business CreationPipeline of home-grown companies that have their full life cyclein the Health Tech CorridorSpin-off idea ...
Business Creation: ChallengesStudy by Angelou Economics identified a lack of tenant-readyspace. Cited a solution as crucia...
EVERGREEN PRINCIPLES   Co-ownership by co-op workers and other important    “stakeholders”   Triple bottom line: communi...
Strategies: Stacked Roles  The Anchors                           Community Engagement                           The CDCs (...
Stacked Capital• Multiple groups with resources   – The City (HUD 108, other loans and grants)   – Cleveland Foundation – ...
Evergreeen Funding StackSource                                              Use of Funding               Total Funding    ...
Strategy – 3rd Party Leadership• Partnership with national Living Cities  legitimizes local efforts• The Cleveland Foundat...
City of Cleveland Ward Map  **$65.7 million investment by the City into the HTC Since 2008
Outlook Positive•   Investment in the Health Tech Corridor of $365,554,255•   Over 2 million square feet of space built or...
Cleveland Health Tech Corridor- Enterprise Community Presentation
Cleveland Health Tech Corridor- Enterprise Community Presentation
Cleveland Health Tech Corridor- Enterprise Community Presentation
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Cleveland Health Tech Corridor- Enterprise Community Presentation

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In November of 2012, Mile High Connects held a Brain Trust Event to generate ideas and best practices on how to grow small businesses in the Denver Metro region. Daniel Budish of the City of Cleveland Department of Economic Development was asked to share lessons from Cleveland’s Health Tech Corridor initiative, which over the past 5 years has been able to grow small businesses and attract development around a new transit line.

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Cleveland Health Tech Corridor- Enterprise Community Presentation

  1. 1. Greater University Circle Wealth Building Initiative Daniel Budish Department of Economic Development City of Cleveland
  2. 2. University Circle
  3. 3. University VACANT LAND Circle Vacant Land
  4. 4. Water Shut Offs/Tax Delinquencies /Foreclosures WATER SHUT OFFS / TAX DELIQUENCIES / FORECLOSURES
  5. 5. Overall Distress NEIGHBORHOODS AT RISK
  6. 6. Mission• The Greater University Circle Initiative (GUCI) demonstrates how an older industrial city can build upon its assets to transform neighborhoods, create jobs, and address poverty. Transcending physical development to embrace a communal vision in which wealth is shared and no one is left out.
  7. 7. Timeline• 2003: – Neighborhood Connections• 2005: – Greater University Circle Initiative – Evergreen Cooperatives• 2008: – RTA’s Healthline opens• 2009: – New Bridge• 2011: – MidTown Tech Park completed – Living Cities awards TII to Cleveland for GUCI – $14.75 million in loans and grants
  8. 8. Euclid Ave. Streetscape and BRT
  9. 9. Timeline• 2003: – Neighborhood Connections• 2005: – Greater University Circle Initiative – Evergreen Cooperatives• 2008: – RTA’s Healthline opens• 2009: – New Bridge• 2011: – MidTown Tech Park completed – Living Cities awards TII to Cleveland for GUCI – $14.75 million in loans and grants
  10. 10. Challenges• Geographical Fiefdoms• Organizational competition• Difficult to use $$• Town-Gown Dynamics
  11. 11. Programs GoalsStrategies Buy Hire Live Connect Local Local Local ResidentsEvergreen    Health Tech Corridor  Community Engagement   ProgramsEvergreen Cooperative    CorporationHTC Marketing & Attraction   Neighborhood Connections   Greater Circle Living NewBridge Towards Employment Local First Cleveland (new buy local database)
  12. 12. Program Focus Areas• “Self Help” – Local Procurement Database, Strategies Supplier Attraction, Business • Anchor Leverage Creation • 3rd Party Leadership• Careers, not Jobs • Common goals – Evergreen Cooperatives • Start with a “pilot” – New Bridge • Stacked costs• Live and Work • Adapt to changing needs – Greater Circle Living • Stacked Roles – Evergreen Home Ownership• Bridge the gap – Tenant Improvement Fund – ECDI – microlending – NDC - CDFI
  13. 13. Focus Area: “Self Help”“We believe in what we call self-help, meaning if we are spending money, we should be spending more locally.” Mayor Frank JacksonAnchor Institutions spend over $3 Billion/year on goods andservices"You need to move into the city, or we will find somebodywho will."Steve Standley, Chief Administrative Officer, UniversityHospitalsPrograms: Local Procurement Database, Supplier Attraction,Business Creation
  14. 14. Business CreationPipeline of home-grown companies that have their full life cyclein the Health Tech CorridorSpin-off idea from Anchor Incubator Space  Post-incubator spaceExample:
  15. 15. Business Creation: ChallengesStudy by Angelou Economics identified a lack of tenant-readyspace. Cited a solution as crucial to keep young, growingcompanies in the area.•Banks have preleasing requirements - won’t fund spec space•Tech companies are fast growing they cannot commit toprelease – they need space immediately•These companies are not credit worthy•Construction costs>RentsSolutions – tenant improvement fund, Public subsidies for core& shell
  16. 16. EVERGREEN PRINCIPLES Co-ownership by co-op workers and other important “stakeholders” Triple bottom line: community, environment, profit Great majority of our workforce hired from GUC neighborhoods Linked to the supply chain of area anchor institutions Family supporting living wage & no-cost health care benefits Distribution of earnings into capital accounts (wealth building) Career ladders for workers Corporate culture of ownership, participation, transparency and accountability Individual co-ops are part of a larger structure that ties them together into a coordinated and integrated network (ECC)
  17. 17. Strategies: Stacked Roles The Anchors Community Engagement The CDCs (MidTown Cleveland, Inc., Fairfax, University Circle Inc.) Neighborhood Progress Inc. Neighborhood Connections The Neighborhood Voice – Newspaper The Evergreen CooperativesThe Funders Capital Attraction/Lending/Technical AssistanceThe City of Cleveland Jumpstart BioEnterpriseThe Cleveland Foundation Economic and Community Development InstituteLiving Cities National Development CouncilThe AnchorsCuyahoga County
  18. 18. Stacked Capital• Multiple groups with resources – The City (HUD 108, other loans and grants) – Cleveland Foundation – very well capitalized Foundation (top 5 in country) – Living Cities - $14.75 million – Anchor partners – purchasing power + large capital investments Everybody contribute to each initiative – smaller investments for each organization Everybody gets credit for successes Promotes universal buy-in Example – The Evergreen Cooperatives
  19. 19. Evergreeen Funding StackSource Use of Funding Total Funding Evergreen Initiative* Evergreen Contributed Cooperative Development Fund**The Cleveland Foundation $560,000 $3,000,000 $3,560,000Living Cities (Year 1) $125,000 $150,000 $275,000Case Western Reserve University $250,000 $250,000Cleveland Clinic $250,000 $250,000University Hospitals $250,000 $250,000Higley Fund $50,000 $50,000Kelvin and Eleanor Smith Foundation $1,000,000 $1,000,000Minigowin Foundation $900,000 $900,000Nathan Cummings Foundation $375,000 $375,000Rockefeller Foundation $650,000 $650,000Surdna Foundation $300,000 $300,000Total $2,010,000 $5,850,000 $7,860,000*The City of Cleveland has also provided $12.35 Million in loans and grants to theEvergreen businesses.
  20. 20. Strategy – 3rd Party Leadership• Partnership with national Living Cities legitimizes local efforts• The Cleveland Foundation can act as the great convener Significance: Focus of Resources – Cleveland Wards Bringing everybody (including competitors) to the table
  21. 21. City of Cleveland Ward Map **$65.7 million investment by the City into the HTC Since 2008
  22. 22. Outlook Positive• Investment in the Health Tech Corridor of $365,554,255• Over 2 million square feet of space built or renovated• 2000 Jobs Retained• Over 400 jobs created to date• 7.6% Vacancy Rate in MidTown (Suburban Competitors between 10% and 13%)• Over 400,000 square feet scheduled to open in 2013• Over 80 high quality careers for Evergreen Employees• Over 100 people assisted through Greater Circle Living• Over 60 students in New Bridge – 21 placements so far (some are still in school or have turned down offers)

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