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Retail in Context:
Observations from Columbus
Positioning Your Neighborhood for Economic Development
Choice Neighborhoods Grantee Conference
U.S. Department of Housing and Urban Development
March 17, 2016
Roberta Garber
Hannah Jones
Lyneir Richardson
Robert Weissbourd
© RW Ventures, LLC 2016© RW Ventures, LLC 2016
It’s Not Our Parents’ Economy:
Neighborhood and Regional
Development in the 21st Century
Choice Neighborhoods Grantee Conference
Department of Housing and Urban Development
Robert Weissbourd
March 17, 2016
THE FOLLOWING PRESENTATION HAS BEEN APPROVED FOR
MATURE AUDIENCES
RP THIS PRESENTATION HAS BEEN RATED RP FOR
CONTENT. AUDIENCE DISCRETION ADVISED.
RADICAL + PRESUMPTUOUS
CONTENT MAY BE UNCONVENTIONAL,
EXPLORATORY, ILLUSTRATIVE AND PROVOCATIVE
© RW Ventures, LLC 2016
Poverty and Economic Growth
“… poverty has no causes. Only
prosperity has causes. Analogically,
heat is a result of active processes; it
has causes. But cold is not the result
of any processes; it is only the
absence of heat. Just so, the great
cold of poverty and economic
stagnation is merely the absence of
economic development. It can be
overcome only if the relevant
economic processes are in motion.”
-- Jane Jacobs
Photo from Shelf-Basin Interactions
4
© RW Ventures, LLC 2016
Therefore, to increase wealth in poor communities, expand market
activity to the assets of those communities
Market-Based Development
The economic mechanism for investing in assets is the market
Wealth is created by investing in assets
To address poverty, create wealth
5
© RW Ventures, LLC 2016
Agenda
Changing Dynamics of Cities
Changing Dynamics of Neighborhoods
Neighborhood Business Planning
© RW Ventures, LLC 2016
0%
100%
200%
300%
400%
500%
600%
$s lbs
%Change
GDP Growth, 1950-2000  Human Capital
 Information technologies
 Product innovation; flexible
customization
 Firm, consumer and knowledge
networks
 Increasing returns; divergence
The Global Economy is Undergoing a Fundamental
Transformation, Driven by Knowledge Assets
7Source: “Greenspan Weighs Evidence and Finds a Lighter Economy,” Wall Street Journal
© RW Ventures, LLC 2016
0
20
40
60
80
1920s 1990s
Years Spent on the S&P Index
As a Result, the Economy is More Dynamic
8Sources: Newsweek, Manyika, Lund and Auguste, “From the Ashes,” 8.16.2010; Brookings Institution
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
15% 20% 25% 30% 35%
GRPGrowth
Firm Starts and Closures (Churn) as % of All Firms
Churn and GRP Growth by MSA
© RW Ventures, LLC 2016
…and Centered in Metropolitan Areas
9
© RW Ventures, LLC 2016
…and Centered in Metropolitan Areas
Population
83.7%
Employment
89.8%PersonalIncome
96.3%
KnowledgeIndustries(GDP)
87%
Metros Share of U.S. Total
Source: Brookings Institution; Bureau of Economic Analysis, U.S. Patent and Trademark Office
GrossProduct
90%
Patents
95.5%
9
© RW Ventures, LLC 2016
What Makes Metropolitan Regions more
Productive in the Next Economy?
Economic
Geography
Institutional
Economics
New
Growth
Theory
10
© RW Ventures, LLC 2016
Metros Concentrate People and Firms to Achieve
Efficiencies
Economic
Geography
Institutional
EconomicsNew
Growth
Theory
Act Comprehensively – The Whole is Greater
than the Sum of the Parts.
Develop Institutional Capacity and
Intentionality.
Customize and Build on
Distinctive Assets.
10
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Five Market Levers Drive Regional
Economic Performance
11
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Enhance
Regional
Concentrations/
Clusters
Five Market Levers Drive Regional
Economic Performance
11
 Current Concentrations:
Assets, Legacies and Bets
 Cluster Dynamics and
Drivers
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations/
Clusters
Five Market Levers Drive Regional
Economic Performance
11
 High levels of
human
capital and
rich job pools
 Job matching
and worker
mobility
 Inclusiveness
and
opportunity
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Five Market Levers Drive Regional
Economic Performance
11
 Commercialization
of R&D
 Cluster- and firm-
based innovation
 Entrepreneurship
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Five Market Levers Drive Regional
Economic Performance
11
 Government
fragmentation
 Tax-value
proposition
 Cross-sector
governance
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Increase
Spatial
Efficiency
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Five Market Levers Drive Regional
Economic Performance
11
 Compact, well-
connected urban form
 Segregation and
isolation
 Jobs-housing
mismatch
 Next
generation
infrastructure
© RW Ventures, LLC 2016
Implications for Urban Economic
Development
12
© RW Ventures, LLC 2016
The Inclusive Growth Paradox
13
Drivers of growth exacerbate inequity
0.0
10.0
20.0
30.0
40.0
Lowest
Quintile
Second
Quintile
Middle
Quintile
Fourth
Quintile
81st - 99th
Percentiles
Top 1
Percent
ShareofTotal
HouseholdIncome
Changes in Share of Total Household
Income, 1979 - 2007
1979
2007
© RW Ventures, LLC 2016
The Inclusive Growth Paradox
13
-.20.2.4.6
WageGrowth(1990-2000)
0 .1 .2 .3 .4
Poverty Rate (1990)
Inequity is bad for growthDrivers of growth exacerbate inequity
0.0
10.0
20.0
30.0
40.0
Lowest
Quintile
Second
Quintile
Middle
Quintile
Fourth
Quintile
81st - 99th
Percentiles
Top 1
Percent
ShareofTotal
HouseholdIncome
Changes in Share of Total Household
Income, 1979 - 2007
1979
2007
Sources: Federal Reserve Bank of St. Louis;
Congressional Budget Office; RW Ventures Analysis
© RW Ventures, LLC 2016
The Inclusive Growth Paradox
13
-.20.2.4.6
WageGrowth(1990-2000)
0 .1 .2 .3 .4
Poverty Rate (1990)
Inequity is bad for growthDrivers of growth exacerbate inequity
0.0
10.0
20.0
30.0
40.0
Lowest
Quintile
Second
Quintile
Middle
Quintile
Fourth
Quintile
81st - 99th
Percentiles
Top 1
Percent
ShareofTotal
HouseholdIncome
Changes in Share of Total Household
Income, 1979 - 2007
1979
2007
Sources: Federal Reserve Bank of St. Louis;
Congressional Budget Office; RW Ventures Analysis
INCLUSION
is a
BUSINESS IMPERATIVE
© RW Ventures, LLC 2016
Principles for Practicing Inclusive
Growth
14
“It’s the Economy”
 Focus on opportunities (specific assets, markets and growth
drivers) to leverage (not supplant) markets to create value.
© RW Ventures, LLC 2016
Principles for Practicing Inclusive
Growth
14
“It’s the Economy”
 Focus on opportunities (specific assets, markets and growth
drivers) to leverage (not supplant) markets to create value.
“Skate to Where the Puck Is Going to Be”
 It’s the next economy. Stop programming that moves the
disadvantaged into old economy jobs and businesses!
© RW Ventures, LLC 2016
Principles for Practicing Inclusive
Growth
14
“It’s the Economy”
 Focus on opportunities (specific assets, markets and growth
drivers) to leverage (not supplant) markets to create value.
“Skate to Where the Puck Is Going to Be”
 It’s the next economy. Stop programming that moves the
disadvantaged into old economy jobs and businesses!
New Civics
 Embrace new cross-sector partnerships, networks and institutions
to inform and implement work.
© RW Ventures, LLC 2016
Principles for Practicing Inclusive
Growth
14
“It’s the Economy”
 Focus on opportunities (specific assets, markets and growth
drivers) to leverage (not supplant) markets to create value.
“Skate to Where the Puck Is Going to Be”
 It’s the next economy. Stop programming that moves the
disadvantaged into old economy jobs and businesses!
New Civics
 Embrace new cross-sector partnerships, networks and institutions
to inform and implement work.
Act in Context
 Activities and geographies succeed or fail in context of each other
and their interactions in place. Strategies and initiatives need to
be aligned, integrated and mutually reinforcing.
© RW Ventures, LLC 2016
Principles for Practicing Inclusive
Growth
14
“It’s the Economy”
 Focus on opportunities (specific assets, markets and growth
drivers) to leverage (not supplant) markets to create value.
“Skate to Where the Puck Is Going to Be”
 It’s the next economy. Stop programming that moves the
disadvantaged into old economy jobs and businesses!
New Civics
 Embrace new cross-sector partnerships, networks and institutions
to inform and implement work.
Act in Context
 Activities and geographies succeed or fail in context of each other
and their interactions in place. Strategies and initiatives need to
be aligned, integrated and mutually reinforcing.
Inclusion is Not a Separate Economic Practice
 It’s an intentional, integral design principle for every growth
activity.
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Examples: Inclusive Regional
Economic Growth Practice
15
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Enhance
Regional
Concentrations/
Clusters
Examples: Inclusive Regional
Economic Growth Practice
15
Inclusive Clusters: Chicago
FOOD
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations/
Clusters
Examples: Inclusive Regional
Economic Growth Practice
15
Inclusive Clusters: Chicago
FOOD
Targeted
inclusive training
for emerging
industries:
YearUp
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Examples: Inclusive Regional
Economic Growth Practice
15
Inclusive Clusters: Chicago
FOOD
Doer-Maker Space:
Blue1647
Targeted
inclusive training
for emerging
industries:
YearUp
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Examples: Inclusive Regional
Economic Growth Practice
15
Inclusive Clusters: Chicago
FOOD
Doer-Maker Space:
Blue1647
Neighborhood/
Sub-Regional
Business
Planning:
Greater Chatham
Initiative
Targeted
inclusive training
for emerging
industries:
YearUp
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Increase
Spatial
Efficiency
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Examples: Inclusive Regional
Economic Growth Practice
15
Inclusive Clusters: Chicago
FOOD
Doer-Maker Space:
Blue1647
Neighborhood/
Sub-Regional
Business
Planning:
Greater Chatham
Initiative
Industrial land reuse:
Casey-Atlanta
Targeted
inclusive training
for emerging
industries:
YearUp
© RW Ventures, LLC 2016
Agenda
Changing Dynamics of Cities
Changing Dynamics of Neighborhoods
Neighborhood Business Planning
© RW Ventures, LLC 2016
Inclusive Regional
Growth
Comprehensive Neighborhood Planning
ECONOMIC
GROWTH
Productivity,
Outputs
COMMUNITY
DEVELOPMENT
Healthy
Communities
ECONOMIC
DEVELOPMENT
Wealth
Creation
Wealth creation for
residents
Neighborhoods as
healthy, vital
places to live
17
© RW Ventures, LLC 2016
Two Frames
Frame 2: Neighborhoods of Choice
 Neighborhoods as
collection of amenities –
housing, retail, public
goods, etc. – interacting
in place
 Function = attract and
retain particular
segments of residents
 Emphasis on quality of
life
18
© RW Ventures, LLC 2016
Two Frames
Frame 2: Neighborhoods of Choice
Frame 1: Neighborhoods of
Opportunity
 Neighborhoods as
collection of amenities –
housing, retail, public
goods, etc. – interacting
in place
 Function = attract and
retain particular
segments of residents
 Emphasis on quality of
life
 Neighborhoods as
collection of assets –
labor, land, businesses,
etc. - nested in larger
markets
 Function = develop and
deploy assets into larger
systems
 Emphasis on economics
18
© RW Ventures, LLC 2016
Frame 2: Neighborhoods of Choice
ECONOMIC
GROWTH
COMMUNITY
DEVELOPMENT
ECONOMIC
DEVELOPMENT
19
© RW Ventures, LLC 2016
Frame 2: Neighborhoods of Choice
MARKETS
AMENITIES ASSETS
20
© RW Ventures, LLC 2016
Neighborhoods are Complex
21
© RW Ventures, LLC 2016
Neighborhoods are Complex
22
© RW Ventures, LLC 2016
Neighborhoods are Dynamic
23
© RW Ventures, LLC 2016
Neighborhoods are Dynamic
24
© RW Ventures, LLC 2016
Frame 1: Neighborhoods of Opportunity
MARKETS
AMENITIES ASSETS
25
© RW Ventures, LLC 2016
Neighborhoods are Nested in Larger Systems
Which Drive the Flows of People and Capital
26
© RW Ventures, LLC 2016
Neighborhoods Need Regions
Poverty Productivity
Connectedness
Isolation
27
© RW Ventures, LLC 2016
Neighborhoods Need Regions
 Employment networks
 Entrepreneurial opportunities
 Business, real estate investment
 Expanded products and services
 Productive, healthy
communities
 Undervalued,
underutilized assets
Poverty Productivity
Connectedness
Isolation
27
Goal: Neighborhoods that Build Capacity and Opportunity (Amartya Sen)
© RW Ventures, LLC 2016
Regions Need Neighborhoods
-.20.2.4.6
WageGrowth(1990-2000)
0 .1 .2 .3 .4
Poverty Rate (1990)
225%
200%
175%
150%
125%
100%
75%
50%
25%
0%
1990 1995 2000 2004
RepeatSalesIndex
Year
Variation of appreciation across Neighborhoods
King County 1990-2004
28
© RW Ventures, LLC 2016
Connecting the “Frames”
Retail Demand
Retail Supply
Quality of Life
Housing Demand
Housing Supply
Mobility –
who moves in/out
29
© RW Ventures, LLC 2016
Connecting the “Frames”
Retail Demand
Retail Supply
Quality of Life
Housing Demand
Housing Supply
Wealth and Connectedness of
Residents
Wealth and Connectedness of
Businesses
Mobility –
who moves in/out
29
© RW Ventures, LLC 2016
Connecting the “Frames”
Retail Demand
Retail Supply
Quality of Life
Housing Demand
Housing Supply
Wealth and Connectedness of
Residents
Human Capital Stock and
Deployment
Urban
Growth FormClusters
Wealth and Connectedness of
Businesses
Innovation and
Entrepreneurship
InstitutionalEnvironment(Governance)
Mobility –
who moves in/out
29
© RW Ventures, LLC 2016
Unified Theory of Change –
Frame 1: Choice Frame 2:Opportunity
 Neighborhoods do not have
economies: they have assets
 Frames are closely interrelated
– Success in frame 1 affects frame 2 –
attractiveness and types of changes
– Frame 2 iterates with and supports success
in frame 1
 Neighborhoods are whole greater
than sum of parts:
– Differentiated amenities to serve/house
varied residents/assets – range of
neighborhood types and trajectories
– Where economic and non-economic
factors most iterate
– Ultimately, we care about more
than economics
30
© RW Ventures, LLC 2016
Next-Economy Dynamics Create New Urban
Development Opportunities
Industrial
Economy
Knowledge
Economy
Large factories
Smaller space, less
physical capital
Sectoral
specializations
Functional
specializations
Sprawl Densification
Continuous rise in
VMT
Decrease and
stabilization of VMT
Highest property
values = single
family houses
Highest property
values = condos,
apartments
Majority of
households married
with children
Majority of
households single,
no children
0.0%
4.0%
8.0%
12.0%
16.0%
Population Growth in
Large Metros, 2000-2010
Downtown
Population
Metro
Population
31
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Regional Market Levers Create Opportunities for
Neighborhoods in the Next Economy
32
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Enhance
Regional
Concentrations/
Clusters
Regional Market Levers Create Opportunities for
Neighborhoods in the Next Economy
 Employment and
entrepreneurship
opportunities
 Commercial and industrial
development
32
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations/
Clusters
Regional Market Levers Create Opportunities for
Neighborhoods in the Next Economy
 Targeted
training
 Access/
mobility/
networks
32
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Regional Market Levers Create Opportunities for
Neighborhoods in the Next Economy
 Targeted
entrepreneurship
 Connecting to
ecosystem
32
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Regional Market Levers Create Opportunities for
Neighborhoods in the Next Economy
 Efficiency
 Engagement
 Networks
32
© RW Ventures, LLC 2016
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Increase
Spatial
Efficiency
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Regional Market Levers Create Opportunities for
Neighborhoods in the Next Economy
 New, mixed uses
 Development
opportunities
 Bring jobs back
 Next-
 generation
infrastructure
32
© RW Ventures, LLC 2016
Agenda
Changing Dynamics of Cities
Changing Dynamics of Neighborhoods
Neighborhood Business Planning
© RW Ventures, LLC 2016
 Identify neighborhood
assets/opportunities
 Develop customized
strategies
 Turn strategies into
concrete actions
 Build institutional
capacity
 Execute
Business Planning: A Proven Discipline
for Comprehensive, Effective Action
34
© RW Ventures, LLC 2016
 Identify neighborhood
assets/opportunities
 Develop customized
strategies
 Turn strategies into
concrete actions
 Build institutional
capacity
 Execute
NEIGHBORHOOD BUSINESS PLANNING
Mission and Vision
Market Analysis
Strategies
Products and Services
Operational Planning
Financial Planning
Performance Monitoring
Business Planning: A Proven Discipline
for Comprehensive, Effective Action
34
© RW Ventures, LLC 2016
Elements of a Business Plan
MISSION/VISION
• Tailored to specific assets,
opportunities, type
• What kind of neighborhood do
you aspire to be?
• What residents, businesses,
outcomes?
35
© RW Ventures, LLC 2016
Elements of a Business Plan
MISSION/VISION
• Tailored to specific assets,
opportunities, type
• What kind of neighborhood do
you aspire to be?
• What residents, businesses,
outcomes?
MARKET ANALYSIS
• Rigorous, fact-based
• Comprehensive assessment of
assets, market barriers,
opportunities, existing
initiatives
• Status, Dynamics
35
© RW Ventures, LLC 2016
Elements of a Business Plan
MISSION/VISION
• Tailored to specific assets,
opportunities, type
• What kind of neighborhood do
you aspire to be?
• What residents, businesses,
outcomes?
MARKET ANALYSIS
• Rigorous, fact-based
• Comprehensive assessment of
assets, market barriers,
opportunities, existing
initiatives
• Status, Dynamics
STRATEGIES
• Tailored to assets, opportunities,
targeted trajectories identified in
market analysis
• Mutually reinforcing
35
© RW Ventures, LLC 2016
Elements of a Business Plan
MISSION/VISION
• Tailored to specific assets,
opportunities, type
• What kind of neighborhood do
you aspire to be?
• What residents, businesses,
outcomes?
INITIATIVES, PRODUCTS
• Specific activities to implement
strategies
• Adapt best practices
• Design, engage stakeholders, market
test
• Evaluate feasibility, effectiveness
MARKET ANALYSIS
• Rigorous, fact-based
• Comprehensive assessment of
assets, market barriers,
opportunities, existing
initiatives
• Status, Dynamics
STRATEGIES
• Tailored to assets, opportunities,
targeted trajectories identified in
market analysis
• Mutually reinforcing
35
© RW Ventures, LLC 2016
Elements of a Business Plan
MISSION/VISION
• Tailored to specific assets,
opportunities, type
• What kind of neighborhood do
you aspire to be?
• What residents, businesses,
outcomes?
INITIATIVES, PRODUCTS
• Specific activities to implement
strategies
• Adapt best practices
• Design, engage stakeholders, market
test
• Evaluate feasibility, effectiveness
OPERATIONAL AND
FINANCIAL IMPLICATIONS
• Staffing, facilities, necessary to
deliver products
• Operational and organizational
implications
• Financial requirements, sources,
pro formas
MARKET ANALYSIS
• Rigorous, fact-based
• Comprehensive assessment of
assets, market barriers,
opportunities, existing
initiatives
• Status, Dynamics
STRATEGIES
• Tailored to assets, opportunities,
targeted trajectories identified in
market analysis
• Mutually reinforcing
35
© RW Ventures, LLC 2016
Elements of a Business Plan
PERFORMANCE
MONITORING
• Measurable goals, metrics
• Continually track progress
• Update market analysis
• Adjust strategies and initiatives
based on results
MISSION/VISION
• Tailored to specific assets,
opportunities, type
• What kind of neighborhood do
you aspire to be?
• What residents, businesses,
outcomes?
INITIATIVES, PRODUCTS
• Specific activities to implement
strategies
• Adapt best practices
• Design, engage stakeholders, market
test
• Evaluate feasibility, effectiveness
OPERATIONAL AND
FINANCIAL IMPLICATIONS
• Staffing, facilities, necessary to
deliver products
• Operational and organizational
implications
• Financial requirements, sources,
pro formas
MARKET ANALYSIS
• Rigorous, fact-based
• Comprehensive assessment of
assets, market barriers,
opportunities, existing
initiatives
• Status, Dynamics
STRATEGIES
• Tailored to assets, opportunities,
targeted trajectories identified in
market analysis
• Mutually reinforcing
35
© RW Ventures, LLC 2016
Why Neighborhood Business Planning?
36
© RW Ventures, LLC 2016
Why Neighborhood Business Planning?
 Neighborhoods and regions succeed or fail together
 Regions need neighborhood assets to sustainably grow
 Neighborhoods don’t have economies – they have assets, and
prosper when they contribute to & benefit from regional
growth
36
© RW Ventures, LLC 2016
Why Neighborhood Business Planning?
 Neighborhoods and regions succeed or fail together
 Regions need neighborhood assets to sustainably grow
 Neighborhoods don’t have economies – they have assets, and
prosper when they contribute to & benefit from regional
growth
 Integrated regional/sub-regional growth plans
align the two
 Regional plans provide “North Star” – market context,
mutually reinforcing strategies
 Neighborhood plans bring regional priorities to ground,
tailored to the challenges and opportunities of specific places
36
© RW Ventures, LLC 2016
Outcomes: Catalyzing Action
37
© RW Ventures, LLC 2016
Outcomes: Catalyzing Action
37
 Detailed, objective market analysis, providing a shared,
understanding of opportunities and foundation for
collaboration
 A strategic economic growth action agenda, providing
unified goals, vision and strategies; detailed business
plan for coordinating, organizing and aligning activities
ThePlan
© RW Ventures, LLC 2016
Outcomes: Catalyzing Action
37
 Detailed, objective market analysis, providing a shared,
understanding of opportunities and foundation for
collaboration
 A strategic economic growth action agenda, providing
unified goals, vision and strategies; detailed business
plan for coordinating, organizing and aligning activities
 Identification and design of implementation activities,
the most important outcome of the planning process
ThePlanInitiatives
© RW Ventures, LLC 2016
Outcomes: Catalyzing Action
37
 Detailed, objective market analysis, providing a shared,
understanding of opportunities and foundation for
collaboration
 A strategic economic growth action agenda, providing
unified goals, vision and strategies; detailed business
plan for coordinating, organizing and aligning activities
 Identification and design of implementation activities,
the most important outcome of the planning process
 Institutional infrastructure, providing platform for long-
term cross-sector collaboration and invention
ThePlanInitiativesCivics
© RW Ventures, LLC 2016
The Civics of NBP
38
 Next-economy plan requires next-economy governance
 Next-economy imperatives include:
– Regional connectivity
– Flexibility/adaptability
– Inclusion
– Rich formal and informal networks
 Key partners include:
– Civic/non-profit – convene stakeholders, represent community
constituencies, deliver programs/services
– Business – provide market perspective, drive economic growth
– Government – align resources/programming with strategies
Civics and economics are iterative and mutually informing
© RW Ventures, LLC 2016
lower income higher income
URBAN
TAPESTRY
Taxonomy Structure: “Genus, Phylum, Species”
39
© RW Ventures, LLC 2016
Applying the Taxonomy:
Neighborhood Transition
2000
1990
Truly
Disadvantaged
Trans.
Under-
developed
Stable
Low Income
Port of Entry
Urban
Tapestry
Coming
Attractions
No Place
Like Home
Close, Cool,
Commercial
Fortune 500
Transition Matrix
40
© RW Ventures, LLC 2016
Applying the Taxonomy:
Neighborhood Transition
High Racial Diversity
Older, Single Family Homes
Average Incomes,
Low Unemployment
Low Crime
Type 5: Urban
Tapestry
58.9%
Type 4: Port of
Entry
21.1%
Type 8: Close,
Cool,
Commercial
7.8%
Type 3: Stable
Low Income
7.2%
High Population Foreign Born
Families, High Resident Mobility
Below-average Incomes
Unemployment < 10%
Low Crime
Young, Educated Professionals
Rented Apartments
Mid-High Income
Many Consumption Amenities
High Residential Mobility
Primarily African American
Single Family Homes,
High Residential Stability
High Crime
High Unemployment
2000
1990
Truly
Disadvantaged
Trans.
Under-
developed
Stable
Low Income
Port of Entry
Urban
Tapestry
Coming
Attractions
No Place
Like Home
Close, Cool,
Commercial
Fortune 500
Transition Matrix
40
Retail in Context:
Observations from Columbus
Positioning Your Neighborhood for Economic Development
Choice Neighborhoods Grantee Conference
U.S. Department of Housing and Urban Development
March 17, 2016
Roberta Garber
Hannah Jones
Lyneir Richardson
Robert Weissbourd
Background –
Columbus TA Request
 Focus on retail/commercial initiatives
– Potential grocery store
– Historic commercial/arts district
– Proposed neighborhood gateway
 Issues
– Neighborhood in regional context
– Aligning strategies
– Looking forward: serving existing AND future residents
– Staging
114221
2
Physical Context
43
3
Development Context: Challenges
 Vacant residential and commercial buildings
 Depopulation
 Only 3% of people who work in the neighborhood,
live in the neighborhood
 Poverty—large family public housing development
 Crime and safety issues
 Limited retail/commercial options
 Few large commercial sites that are ready to
develop
44
4
Development Context: Assets
 Adjacent to downtown, Columbus State, major
thoroughfares
– New Long St. and Spring St. bridges and caps over I-71
 Significant new development and revitalization in
the west end of the neighborhood
– King-Lincoln Historic Cultural District
– NoBo homeownership development
 Active residential market
 Ohio State investment in PACT, Taylor Ave. corridor
 Poindexter Village demolished in 2013; rapid new
housing development
45
5
Blueprint for Community Investment
46
6
© RW Ventures, LLC 2016
Connecting the “Frames”
Retail Demand
Retail Supply
Quality of Life
Housing Demand
Housing Supply
Mobility –
who moves in/out
47
© RW Ventures, LLC 2016
Connecting the “Frames”
Retail Demand
Retail Supply
Quality of Life
Housing Demand
Housing Supply
Wealth and Connectedness of
Residents
Wealth and Connectedness of
Businesses
Mobility –
who moves in/out
47
© RW Ventures, LLC 2016
Connecting the “Frames”
Retail Demand
Retail Supply
Quality of Life
Housing Demand
Housing Supply
Wealth and Connectedness of
Residents
Human Capital Stock and
Deployment
Urban
Growth FormClusters
Wealth and Connectedness of
Businesses
Innovation and
Entrepreneurship
InstitutionalEnvironment(Governance)
Mobility –
who moves in/out
47
48
7
Neighborhood Retail Framework
 Retail tends to follow neighborhood
development
– Leading edge retail possible,
but difficult
49
Strategic Retail Development:
Retail development that capitalizes on
neighborhood trends, aligned with the
emerging market, to accelerate
neighborhood transformation
Neighborhood /
Trade Area
Trajectories
Current
Neighborhood /
Trade Area
Status
Retail
Market
Opportunities
8
Retail Guidance for Columbus
 Viability depends on mutually
reinforcing and aligned strategies
– Define/brand the neighborhood
– Adding households, income, daytime
population
– Addressing safety and other concerns
– Business retention
50
9
Retail Guidance for Columbus
 Viability depends on mutually
reinforcing and aligned strategies
– Define/brand the neighborhood
– Adding households, income, daytime
population
– Addressing safety and other concerns
– Business retention
 Trajectory and Timing
– Future focused
– Role in regional economy
– Targeting and staging
– Specialty retail opportunities
50
9
Retail Guidance for Columbus
 Viability depends on mutually
reinforcing and aligned strategies
– Define/brand the neighborhood
– Adding households, income, daytime
population
– Addressing safety and other concerns
– Business retention
 Trajectory and Timing
– Future focused
– Role in regional economy
– Targeting and staging
– Specialty retail opportunities
50
9
Takeaways for Columbus
 Retail tends to follow neighborhood development
– Leading edge retail possible,
but difficult
 Need coordinated vision for where community is
going, and staged activities to get there, to create
and stage retail opportunity
– SF rehab market
– Anchors: co-investing, procurement, employee
homeownership
– Strategic employer attraction  add’l shoppers
– Branding
– Business friendly; Public safety (e.g., “safe zones”)
51
10
Takeaways FROM Columbus
 “helped us focus…appreciated the straightforward
feedback”
 “brought new people to the table”
 “better understanding of sequencing of
retail/commercial and housing development”
 “plan is more focused…targeted geographic
nodes and fewer individual projects…thinking
about what kinds of businesses fit where and what
their needs are”
 “could have used more help to move it along”
52
11
After the TA: Back to Reality
 Neighborhood economic development strategy is
bigger than retail/commercial
– Institutional organizations and buildings are the drivers
of investment
 No one entity is in charge of implementing the
overall economic development strategy
– Many individual projects
 The readiness issue
– Need to strike while the iron is hot
 Choice CCI parameters
53
12
Retail in Context:
Observations from Columbus
Positioning Your Neighborhood for Economic Development
Choice Neighborhoods Grantee Conference
U.S. Department of Housing and Urban Development
March 17, 2016
Bobbie Garber
Hannah Jones
Lyneir Richardson
Robert Weissbourd

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Positioning Your Neighborhood for Economic Development: Advanced Training

  • 1. Retail in Context: Observations from Columbus Positioning Your Neighborhood for Economic Development Choice Neighborhoods Grantee Conference U.S. Department of Housing and Urban Development March 17, 2016 Roberta Garber Hannah Jones Lyneir Richardson Robert Weissbourd
  • 2. © RW Ventures, LLC 2016© RW Ventures, LLC 2016 It’s Not Our Parents’ Economy: Neighborhood and Regional Development in the 21st Century Choice Neighborhoods Grantee Conference Department of Housing and Urban Development Robert Weissbourd March 17, 2016
  • 3. THE FOLLOWING PRESENTATION HAS BEEN APPROVED FOR MATURE AUDIENCES RP THIS PRESENTATION HAS BEEN RATED RP FOR CONTENT. AUDIENCE DISCRETION ADVISED. RADICAL + PRESUMPTUOUS CONTENT MAY BE UNCONVENTIONAL, EXPLORATORY, ILLUSTRATIVE AND PROVOCATIVE
  • 4. © RW Ventures, LLC 2016 Poverty and Economic Growth “… poverty has no causes. Only prosperity has causes. Analogically, heat is a result of active processes; it has causes. But cold is not the result of any processes; it is only the absence of heat. Just so, the great cold of poverty and economic stagnation is merely the absence of economic development. It can be overcome only if the relevant economic processes are in motion.” -- Jane Jacobs Photo from Shelf-Basin Interactions 4
  • 5. © RW Ventures, LLC 2016 Therefore, to increase wealth in poor communities, expand market activity to the assets of those communities Market-Based Development The economic mechanism for investing in assets is the market Wealth is created by investing in assets To address poverty, create wealth 5
  • 6. © RW Ventures, LLC 2016 Agenda Changing Dynamics of Cities Changing Dynamics of Neighborhoods Neighborhood Business Planning
  • 7. © RW Ventures, LLC 2016 0% 100% 200% 300% 400% 500% 600% $s lbs %Change GDP Growth, 1950-2000  Human Capital  Information technologies  Product innovation; flexible customization  Firm, consumer and knowledge networks  Increasing returns; divergence The Global Economy is Undergoing a Fundamental Transformation, Driven by Knowledge Assets 7Source: “Greenspan Weighs Evidence and Finds a Lighter Economy,” Wall Street Journal
  • 8. © RW Ventures, LLC 2016 0 20 40 60 80 1920s 1990s Years Spent on the S&P Index As a Result, the Economy is More Dynamic 8Sources: Newsweek, Manyika, Lund and Auguste, “From the Ashes,” 8.16.2010; Brookings Institution 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 15% 20% 25% 30% 35% GRPGrowth Firm Starts and Closures (Churn) as % of All Firms Churn and GRP Growth by MSA
  • 9. © RW Ventures, LLC 2016 …and Centered in Metropolitan Areas 9
  • 10. © RW Ventures, LLC 2016 …and Centered in Metropolitan Areas Population 83.7% Employment 89.8%PersonalIncome 96.3% KnowledgeIndustries(GDP) 87% Metros Share of U.S. Total Source: Brookings Institution; Bureau of Economic Analysis, U.S. Patent and Trademark Office GrossProduct 90% Patents 95.5% 9
  • 11. © RW Ventures, LLC 2016 What Makes Metropolitan Regions more Productive in the Next Economy? Economic Geography Institutional Economics New Growth Theory 10
  • 12. © RW Ventures, LLC 2016 Metros Concentrate People and Firms to Achieve Efficiencies Economic Geography Institutional EconomicsNew Growth Theory Act Comprehensively – The Whole is Greater than the Sum of the Parts. Develop Institutional Capacity and Intentionality. Customize and Build on Distinctive Assets. 10
  • 13. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Five Market Levers Drive Regional Economic Performance 11
  • 14. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Enhance Regional Concentrations/ Clusters Five Market Levers Drive Regional Economic Performance 11  Current Concentrations: Assets, Legacies and Bets  Cluster Dynamics and Drivers
  • 15. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Enhance Regional Concentrations/ Clusters Five Market Levers Drive Regional Economic Performance 11  High levels of human capital and rich job pools  Job matching and worker mobility  Inclusiveness and opportunity
  • 16. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Enhance Regional Concentrations/ Clusters Develop Innovation- Enabling Infrastructure Five Market Levers Drive Regional Economic Performance 11  Commercialization of R&D  Cluster- and firm- based innovation  Entrepreneurship
  • 17. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Create Effective Public & Civic Culture & Institutions Enhance Regional Concentrations/ Clusters Develop Innovation- Enabling Infrastructure Five Market Levers Drive Regional Economic Performance 11  Government fragmentation  Tax-value proposition  Cross-sector governance
  • 18. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Increase Spatial Efficiency Create Effective Public & Civic Culture & Institutions Enhance Regional Concentrations/ Clusters Develop Innovation- Enabling Infrastructure Five Market Levers Drive Regional Economic Performance 11  Compact, well- connected urban form  Segregation and isolation  Jobs-housing mismatch  Next generation infrastructure
  • 19. © RW Ventures, LLC 2016 Implications for Urban Economic Development 12
  • 20. © RW Ventures, LLC 2016 The Inclusive Growth Paradox 13 Drivers of growth exacerbate inequity 0.0 10.0 20.0 30.0 40.0 Lowest Quintile Second Quintile Middle Quintile Fourth Quintile 81st - 99th Percentiles Top 1 Percent ShareofTotal HouseholdIncome Changes in Share of Total Household Income, 1979 - 2007 1979 2007
  • 21. © RW Ventures, LLC 2016 The Inclusive Growth Paradox 13 -.20.2.4.6 WageGrowth(1990-2000) 0 .1 .2 .3 .4 Poverty Rate (1990) Inequity is bad for growthDrivers of growth exacerbate inequity 0.0 10.0 20.0 30.0 40.0 Lowest Quintile Second Quintile Middle Quintile Fourth Quintile 81st - 99th Percentiles Top 1 Percent ShareofTotal HouseholdIncome Changes in Share of Total Household Income, 1979 - 2007 1979 2007 Sources: Federal Reserve Bank of St. Louis; Congressional Budget Office; RW Ventures Analysis
  • 22. © RW Ventures, LLC 2016 The Inclusive Growth Paradox 13 -.20.2.4.6 WageGrowth(1990-2000) 0 .1 .2 .3 .4 Poverty Rate (1990) Inequity is bad for growthDrivers of growth exacerbate inequity 0.0 10.0 20.0 30.0 40.0 Lowest Quintile Second Quintile Middle Quintile Fourth Quintile 81st - 99th Percentiles Top 1 Percent ShareofTotal HouseholdIncome Changes in Share of Total Household Income, 1979 - 2007 1979 2007 Sources: Federal Reserve Bank of St. Louis; Congressional Budget Office; RW Ventures Analysis INCLUSION is a BUSINESS IMPERATIVE
  • 23. © RW Ventures, LLC 2016 Principles for Practicing Inclusive Growth 14 “It’s the Economy”  Focus on opportunities (specific assets, markets and growth drivers) to leverage (not supplant) markets to create value.
  • 24. © RW Ventures, LLC 2016 Principles for Practicing Inclusive Growth 14 “It’s the Economy”  Focus on opportunities (specific assets, markets and growth drivers) to leverage (not supplant) markets to create value. “Skate to Where the Puck Is Going to Be”  It’s the next economy. Stop programming that moves the disadvantaged into old economy jobs and businesses!
  • 25. © RW Ventures, LLC 2016 Principles for Practicing Inclusive Growth 14 “It’s the Economy”  Focus on opportunities (specific assets, markets and growth drivers) to leverage (not supplant) markets to create value. “Skate to Where the Puck Is Going to Be”  It’s the next economy. Stop programming that moves the disadvantaged into old economy jobs and businesses! New Civics  Embrace new cross-sector partnerships, networks and institutions to inform and implement work.
  • 26. © RW Ventures, LLC 2016 Principles for Practicing Inclusive Growth 14 “It’s the Economy”  Focus on opportunities (specific assets, markets and growth drivers) to leverage (not supplant) markets to create value. “Skate to Where the Puck Is Going to Be”  It’s the next economy. Stop programming that moves the disadvantaged into old economy jobs and businesses! New Civics  Embrace new cross-sector partnerships, networks and institutions to inform and implement work. Act in Context  Activities and geographies succeed or fail in context of each other and their interactions in place. Strategies and initiatives need to be aligned, integrated and mutually reinforcing.
  • 27. © RW Ventures, LLC 2016 Principles for Practicing Inclusive Growth 14 “It’s the Economy”  Focus on opportunities (specific assets, markets and growth drivers) to leverage (not supplant) markets to create value. “Skate to Where the Puck Is Going to Be”  It’s the next economy. Stop programming that moves the disadvantaged into old economy jobs and businesses! New Civics  Embrace new cross-sector partnerships, networks and institutions to inform and implement work. Act in Context  Activities and geographies succeed or fail in context of each other and their interactions in place. Strategies and initiatives need to be aligned, integrated and mutually reinforcing. Inclusion is Not a Separate Economic Practice  It’s an intentional, integral design principle for every growth activity.
  • 28. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Examples: Inclusive Regional Economic Growth Practice 15
  • 29. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Enhance Regional Concentrations/ Clusters Examples: Inclusive Regional Economic Growth Practice 15 Inclusive Clusters: Chicago FOOD
  • 30. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Enhance Regional Concentrations/ Clusters Examples: Inclusive Regional Economic Growth Practice 15 Inclusive Clusters: Chicago FOOD Targeted inclusive training for emerging industries: YearUp
  • 31. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Enhance Regional Concentrations/ Clusters Develop Innovation- Enabling Infrastructure Examples: Inclusive Regional Economic Growth Practice 15 Inclusive Clusters: Chicago FOOD Doer-Maker Space: Blue1647 Targeted inclusive training for emerging industries: YearUp
  • 32. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Create Effective Public & Civic Culture & Institutions Enhance Regional Concentrations/ Clusters Develop Innovation- Enabling Infrastructure Examples: Inclusive Regional Economic Growth Practice 15 Inclusive Clusters: Chicago FOOD Doer-Maker Space: Blue1647 Neighborhood/ Sub-Regional Business Planning: Greater Chatham Initiative Targeted inclusive training for emerging industries: YearUp
  • 33. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Increase Spatial Efficiency Create Effective Public & Civic Culture & Institutions Enhance Regional Concentrations/ Clusters Develop Innovation- Enabling Infrastructure Examples: Inclusive Regional Economic Growth Practice 15 Inclusive Clusters: Chicago FOOD Doer-Maker Space: Blue1647 Neighborhood/ Sub-Regional Business Planning: Greater Chatham Initiative Industrial land reuse: Casey-Atlanta Targeted inclusive training for emerging industries: YearUp
  • 34. © RW Ventures, LLC 2016 Agenda Changing Dynamics of Cities Changing Dynamics of Neighborhoods Neighborhood Business Planning
  • 35. © RW Ventures, LLC 2016 Inclusive Regional Growth Comprehensive Neighborhood Planning ECONOMIC GROWTH Productivity, Outputs COMMUNITY DEVELOPMENT Healthy Communities ECONOMIC DEVELOPMENT Wealth Creation Wealth creation for residents Neighborhoods as healthy, vital places to live 17
  • 36. © RW Ventures, LLC 2016 Two Frames Frame 2: Neighborhoods of Choice  Neighborhoods as collection of amenities – housing, retail, public goods, etc. – interacting in place  Function = attract and retain particular segments of residents  Emphasis on quality of life 18
  • 37. © RW Ventures, LLC 2016 Two Frames Frame 2: Neighborhoods of Choice Frame 1: Neighborhoods of Opportunity  Neighborhoods as collection of amenities – housing, retail, public goods, etc. – interacting in place  Function = attract and retain particular segments of residents  Emphasis on quality of life  Neighborhoods as collection of assets – labor, land, businesses, etc. - nested in larger markets  Function = develop and deploy assets into larger systems  Emphasis on economics 18
  • 38. © RW Ventures, LLC 2016 Frame 2: Neighborhoods of Choice ECONOMIC GROWTH COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT 19
  • 39. © RW Ventures, LLC 2016 Frame 2: Neighborhoods of Choice MARKETS AMENITIES ASSETS 20
  • 40. © RW Ventures, LLC 2016 Neighborhoods are Complex 21
  • 41. © RW Ventures, LLC 2016 Neighborhoods are Complex 22
  • 42. © RW Ventures, LLC 2016 Neighborhoods are Dynamic 23
  • 43. © RW Ventures, LLC 2016 Neighborhoods are Dynamic 24
  • 44. © RW Ventures, LLC 2016 Frame 1: Neighborhoods of Opportunity MARKETS AMENITIES ASSETS 25
  • 45. © RW Ventures, LLC 2016 Neighborhoods are Nested in Larger Systems Which Drive the Flows of People and Capital 26
  • 46. © RW Ventures, LLC 2016 Neighborhoods Need Regions Poverty Productivity Connectedness Isolation 27
  • 47. © RW Ventures, LLC 2016 Neighborhoods Need Regions  Employment networks  Entrepreneurial opportunities  Business, real estate investment  Expanded products and services  Productive, healthy communities  Undervalued, underutilized assets Poverty Productivity Connectedness Isolation 27 Goal: Neighborhoods that Build Capacity and Opportunity (Amartya Sen)
  • 48. © RW Ventures, LLC 2016 Regions Need Neighborhoods -.20.2.4.6 WageGrowth(1990-2000) 0 .1 .2 .3 .4 Poverty Rate (1990) 225% 200% 175% 150% 125% 100% 75% 50% 25% 0% 1990 1995 2000 2004 RepeatSalesIndex Year Variation of appreciation across Neighborhoods King County 1990-2004 28
  • 49. © RW Ventures, LLC 2016 Connecting the “Frames” Retail Demand Retail Supply Quality of Life Housing Demand Housing Supply Mobility – who moves in/out 29
  • 50. © RW Ventures, LLC 2016 Connecting the “Frames” Retail Demand Retail Supply Quality of Life Housing Demand Housing Supply Wealth and Connectedness of Residents Wealth and Connectedness of Businesses Mobility – who moves in/out 29
  • 51. © RW Ventures, LLC 2016 Connecting the “Frames” Retail Demand Retail Supply Quality of Life Housing Demand Housing Supply Wealth and Connectedness of Residents Human Capital Stock and Deployment Urban Growth FormClusters Wealth and Connectedness of Businesses Innovation and Entrepreneurship InstitutionalEnvironment(Governance) Mobility – who moves in/out 29
  • 52. © RW Ventures, LLC 2016 Unified Theory of Change – Frame 1: Choice Frame 2:Opportunity  Neighborhoods do not have economies: they have assets  Frames are closely interrelated – Success in frame 1 affects frame 2 – attractiveness and types of changes – Frame 2 iterates with and supports success in frame 1  Neighborhoods are whole greater than sum of parts: – Differentiated amenities to serve/house varied residents/assets – range of neighborhood types and trajectories – Where economic and non-economic factors most iterate – Ultimately, we care about more than economics 30
  • 53. © RW Ventures, LLC 2016 Next-Economy Dynamics Create New Urban Development Opportunities Industrial Economy Knowledge Economy Large factories Smaller space, less physical capital Sectoral specializations Functional specializations Sprawl Densification Continuous rise in VMT Decrease and stabilization of VMT Highest property values = single family houses Highest property values = condos, apartments Majority of households married with children Majority of households single, no children 0.0% 4.0% 8.0% 12.0% 16.0% Population Growth in Large Metros, 2000-2010 Downtown Population Metro Population 31
  • 54. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Regional Market Levers Create Opportunities for Neighborhoods in the Next Economy 32
  • 55. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Enhance Regional Concentrations/ Clusters Regional Market Levers Create Opportunities for Neighborhoods in the Next Economy  Employment and entrepreneurship opportunities  Commercial and industrial development 32
  • 56. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Enhance Regional Concentrations/ Clusters Regional Market Levers Create Opportunities for Neighborhoods in the Next Economy  Targeted training  Access/ mobility/ networks 32
  • 57. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Enhance Regional Concentrations/ Clusters Develop Innovation- Enabling Infrastructure Regional Market Levers Create Opportunities for Neighborhoods in the Next Economy  Targeted entrepreneurship  Connecting to ecosystem 32
  • 58. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Create Effective Public & Civic Culture & Institutions Enhance Regional Concentrations/ Clusters Develop Innovation- Enabling Infrastructure Regional Market Levers Create Opportunities for Neighborhoods in the Next Economy  Efficiency  Engagement  Networks 32
  • 59. © RW Ventures, LLC 2016 Leverage Points for Sustainable and Inclusive Prosperity Deploy Human Capital Aligned with Job Pools Increase Spatial Efficiency Create Effective Public & Civic Culture & Institutions Enhance Regional Concentrations/ Clusters Develop Innovation- Enabling Infrastructure Regional Market Levers Create Opportunities for Neighborhoods in the Next Economy  New, mixed uses  Development opportunities  Bring jobs back  Next-  generation infrastructure 32
  • 60. © RW Ventures, LLC 2016 Agenda Changing Dynamics of Cities Changing Dynamics of Neighborhoods Neighborhood Business Planning
  • 61. © RW Ventures, LLC 2016  Identify neighborhood assets/opportunities  Develop customized strategies  Turn strategies into concrete actions  Build institutional capacity  Execute Business Planning: A Proven Discipline for Comprehensive, Effective Action 34
  • 62. © RW Ventures, LLC 2016  Identify neighborhood assets/opportunities  Develop customized strategies  Turn strategies into concrete actions  Build institutional capacity  Execute NEIGHBORHOOD BUSINESS PLANNING Mission and Vision Market Analysis Strategies Products and Services Operational Planning Financial Planning Performance Monitoring Business Planning: A Proven Discipline for Comprehensive, Effective Action 34
  • 63. © RW Ventures, LLC 2016 Elements of a Business Plan MISSION/VISION • Tailored to specific assets, opportunities, type • What kind of neighborhood do you aspire to be? • What residents, businesses, outcomes? 35
  • 64. © RW Ventures, LLC 2016 Elements of a Business Plan MISSION/VISION • Tailored to specific assets, opportunities, type • What kind of neighborhood do you aspire to be? • What residents, businesses, outcomes? MARKET ANALYSIS • Rigorous, fact-based • Comprehensive assessment of assets, market barriers, opportunities, existing initiatives • Status, Dynamics 35
  • 65. © RW Ventures, LLC 2016 Elements of a Business Plan MISSION/VISION • Tailored to specific assets, opportunities, type • What kind of neighborhood do you aspire to be? • What residents, businesses, outcomes? MARKET ANALYSIS • Rigorous, fact-based • Comprehensive assessment of assets, market barriers, opportunities, existing initiatives • Status, Dynamics STRATEGIES • Tailored to assets, opportunities, targeted trajectories identified in market analysis • Mutually reinforcing 35
  • 66. © RW Ventures, LLC 2016 Elements of a Business Plan MISSION/VISION • Tailored to specific assets, opportunities, type • What kind of neighborhood do you aspire to be? • What residents, businesses, outcomes? INITIATIVES, PRODUCTS • Specific activities to implement strategies • Adapt best practices • Design, engage stakeholders, market test • Evaluate feasibility, effectiveness MARKET ANALYSIS • Rigorous, fact-based • Comprehensive assessment of assets, market barriers, opportunities, existing initiatives • Status, Dynamics STRATEGIES • Tailored to assets, opportunities, targeted trajectories identified in market analysis • Mutually reinforcing 35
  • 67. © RW Ventures, LLC 2016 Elements of a Business Plan MISSION/VISION • Tailored to specific assets, opportunities, type • What kind of neighborhood do you aspire to be? • What residents, businesses, outcomes? INITIATIVES, PRODUCTS • Specific activities to implement strategies • Adapt best practices • Design, engage stakeholders, market test • Evaluate feasibility, effectiveness OPERATIONAL AND FINANCIAL IMPLICATIONS • Staffing, facilities, necessary to deliver products • Operational and organizational implications • Financial requirements, sources, pro formas MARKET ANALYSIS • Rigorous, fact-based • Comprehensive assessment of assets, market barriers, opportunities, existing initiatives • Status, Dynamics STRATEGIES • Tailored to assets, opportunities, targeted trajectories identified in market analysis • Mutually reinforcing 35
  • 68. © RW Ventures, LLC 2016 Elements of a Business Plan PERFORMANCE MONITORING • Measurable goals, metrics • Continually track progress • Update market analysis • Adjust strategies and initiatives based on results MISSION/VISION • Tailored to specific assets, opportunities, type • What kind of neighborhood do you aspire to be? • What residents, businesses, outcomes? INITIATIVES, PRODUCTS • Specific activities to implement strategies • Adapt best practices • Design, engage stakeholders, market test • Evaluate feasibility, effectiveness OPERATIONAL AND FINANCIAL IMPLICATIONS • Staffing, facilities, necessary to deliver products • Operational and organizational implications • Financial requirements, sources, pro formas MARKET ANALYSIS • Rigorous, fact-based • Comprehensive assessment of assets, market barriers, opportunities, existing initiatives • Status, Dynamics STRATEGIES • Tailored to assets, opportunities, targeted trajectories identified in market analysis • Mutually reinforcing 35
  • 69. © RW Ventures, LLC 2016 Why Neighborhood Business Planning? 36
  • 70. © RW Ventures, LLC 2016 Why Neighborhood Business Planning?  Neighborhoods and regions succeed or fail together  Regions need neighborhood assets to sustainably grow  Neighborhoods don’t have economies – they have assets, and prosper when they contribute to & benefit from regional growth 36
  • 71. © RW Ventures, LLC 2016 Why Neighborhood Business Planning?  Neighborhoods and regions succeed or fail together  Regions need neighborhood assets to sustainably grow  Neighborhoods don’t have economies – they have assets, and prosper when they contribute to & benefit from regional growth  Integrated regional/sub-regional growth plans align the two  Regional plans provide “North Star” – market context, mutually reinforcing strategies  Neighborhood plans bring regional priorities to ground, tailored to the challenges and opportunities of specific places 36
  • 72. © RW Ventures, LLC 2016 Outcomes: Catalyzing Action 37
  • 73. © RW Ventures, LLC 2016 Outcomes: Catalyzing Action 37  Detailed, objective market analysis, providing a shared, understanding of opportunities and foundation for collaboration  A strategic economic growth action agenda, providing unified goals, vision and strategies; detailed business plan for coordinating, organizing and aligning activities ThePlan
  • 74. © RW Ventures, LLC 2016 Outcomes: Catalyzing Action 37  Detailed, objective market analysis, providing a shared, understanding of opportunities and foundation for collaboration  A strategic economic growth action agenda, providing unified goals, vision and strategies; detailed business plan for coordinating, organizing and aligning activities  Identification and design of implementation activities, the most important outcome of the planning process ThePlanInitiatives
  • 75. © RW Ventures, LLC 2016 Outcomes: Catalyzing Action 37  Detailed, objective market analysis, providing a shared, understanding of opportunities and foundation for collaboration  A strategic economic growth action agenda, providing unified goals, vision and strategies; detailed business plan for coordinating, organizing and aligning activities  Identification and design of implementation activities, the most important outcome of the planning process  Institutional infrastructure, providing platform for long- term cross-sector collaboration and invention ThePlanInitiativesCivics
  • 76. © RW Ventures, LLC 2016 The Civics of NBP 38  Next-economy plan requires next-economy governance  Next-economy imperatives include: – Regional connectivity – Flexibility/adaptability – Inclusion – Rich formal and informal networks  Key partners include: – Civic/non-profit – convene stakeholders, represent community constituencies, deliver programs/services – Business – provide market perspective, drive economic growth – Government – align resources/programming with strategies Civics and economics are iterative and mutually informing
  • 77. © RW Ventures, LLC 2016 lower income higher income URBAN TAPESTRY Taxonomy Structure: “Genus, Phylum, Species” 39
  • 78. © RW Ventures, LLC 2016 Applying the Taxonomy: Neighborhood Transition 2000 1990 Truly Disadvantaged Trans. Under- developed Stable Low Income Port of Entry Urban Tapestry Coming Attractions No Place Like Home Close, Cool, Commercial Fortune 500 Transition Matrix 40
  • 79. © RW Ventures, LLC 2016 Applying the Taxonomy: Neighborhood Transition High Racial Diversity Older, Single Family Homes Average Incomes, Low Unemployment Low Crime Type 5: Urban Tapestry 58.9% Type 4: Port of Entry 21.1% Type 8: Close, Cool, Commercial 7.8% Type 3: Stable Low Income 7.2% High Population Foreign Born Families, High Resident Mobility Below-average Incomes Unemployment < 10% Low Crime Young, Educated Professionals Rented Apartments Mid-High Income Many Consumption Amenities High Residential Mobility Primarily African American Single Family Homes, High Residential Stability High Crime High Unemployment 2000 1990 Truly Disadvantaged Trans. Under- developed Stable Low Income Port of Entry Urban Tapestry Coming Attractions No Place Like Home Close, Cool, Commercial Fortune 500 Transition Matrix 40
  • 80. Retail in Context: Observations from Columbus Positioning Your Neighborhood for Economic Development Choice Neighborhoods Grantee Conference U.S. Department of Housing and Urban Development March 17, 2016 Roberta Garber Hannah Jones Lyneir Richardson Robert Weissbourd
  • 81. Background – Columbus TA Request  Focus on retail/commercial initiatives – Potential grocery store – Historic commercial/arts district – Proposed neighborhood gateway  Issues – Neighborhood in regional context – Aligning strategies – Looking forward: serving existing AND future residents – Staging 114221 2
  • 83. Development Context: Challenges  Vacant residential and commercial buildings  Depopulation  Only 3% of people who work in the neighborhood, live in the neighborhood  Poverty—large family public housing development  Crime and safety issues  Limited retail/commercial options  Few large commercial sites that are ready to develop 44 4
  • 84. Development Context: Assets  Adjacent to downtown, Columbus State, major thoroughfares – New Long St. and Spring St. bridges and caps over I-71  Significant new development and revitalization in the west end of the neighborhood – King-Lincoln Historic Cultural District – NoBo homeownership development  Active residential market  Ohio State investment in PACT, Taylor Ave. corridor  Poindexter Village demolished in 2013; rapid new housing development 45 5
  • 85. Blueprint for Community Investment 46 6
  • 86. © RW Ventures, LLC 2016 Connecting the “Frames” Retail Demand Retail Supply Quality of Life Housing Demand Housing Supply Mobility – who moves in/out 47
  • 87. © RW Ventures, LLC 2016 Connecting the “Frames” Retail Demand Retail Supply Quality of Life Housing Demand Housing Supply Wealth and Connectedness of Residents Wealth and Connectedness of Businesses Mobility – who moves in/out 47
  • 88. © RW Ventures, LLC 2016 Connecting the “Frames” Retail Demand Retail Supply Quality of Life Housing Demand Housing Supply Wealth and Connectedness of Residents Human Capital Stock and Deployment Urban Growth FormClusters Wealth and Connectedness of Businesses Innovation and Entrepreneurship InstitutionalEnvironment(Governance) Mobility – who moves in/out 47
  • 89. 48 7
  • 90. Neighborhood Retail Framework  Retail tends to follow neighborhood development – Leading edge retail possible, but difficult 49 Strategic Retail Development: Retail development that capitalizes on neighborhood trends, aligned with the emerging market, to accelerate neighborhood transformation Neighborhood / Trade Area Trajectories Current Neighborhood / Trade Area Status Retail Market Opportunities 8
  • 91. Retail Guidance for Columbus  Viability depends on mutually reinforcing and aligned strategies – Define/brand the neighborhood – Adding households, income, daytime population – Addressing safety and other concerns – Business retention 50 9
  • 92. Retail Guidance for Columbus  Viability depends on mutually reinforcing and aligned strategies – Define/brand the neighborhood – Adding households, income, daytime population – Addressing safety and other concerns – Business retention  Trajectory and Timing – Future focused – Role in regional economy – Targeting and staging – Specialty retail opportunities 50 9
  • 93. Retail Guidance for Columbus  Viability depends on mutually reinforcing and aligned strategies – Define/brand the neighborhood – Adding households, income, daytime population – Addressing safety and other concerns – Business retention  Trajectory and Timing – Future focused – Role in regional economy – Targeting and staging – Specialty retail opportunities 50 9
  • 94. Takeaways for Columbus  Retail tends to follow neighborhood development – Leading edge retail possible, but difficult  Need coordinated vision for where community is going, and staged activities to get there, to create and stage retail opportunity – SF rehab market – Anchors: co-investing, procurement, employee homeownership – Strategic employer attraction  add’l shoppers – Branding – Business friendly; Public safety (e.g., “safe zones”) 51 10
  • 95. Takeaways FROM Columbus  “helped us focus…appreciated the straightforward feedback”  “brought new people to the table”  “better understanding of sequencing of retail/commercial and housing development”  “plan is more focused…targeted geographic nodes and fewer individual projects…thinking about what kinds of businesses fit where and what their needs are”  “could have used more help to move it along” 52 11
  • 96. After the TA: Back to Reality  Neighborhood economic development strategy is bigger than retail/commercial – Institutional organizations and buildings are the drivers of investment  No one entity is in charge of implementing the overall economic development strategy – Many individual projects  The readiness issue – Need to strike while the iron is hot  Choice CCI parameters 53 12
  • 97. Retail in Context: Observations from Columbus Positioning Your Neighborhood for Economic Development Choice Neighborhoods Grantee Conference U.S. Department of Housing and Urban Development March 17, 2016 Bobbie Garber Hannah Jones Lyneir Richardson Robert Weissbourd