ANCHOR INSTITUTIONS

Michigan Municipal League September 23, 2009

Examining the Relationship

• Anchors’ role in the intellectual life of cities is well understood – Relationship with community/city/region has shifted from Town-Gown to Economic Engine – Today commonly identified as part of a city’s narrative and a point of civic pride • Less understood: – Economic impact – Industry and business creation – How they shape the built environment – Influence the Social Fabric at the Neighborhood Level

Understanding the Interdependencies

• The business of Higher Education: – Employment Base – Procurement of Goods – Capital Investment – Generator of Service Economy • Institutions are major land and property owners • Institutions attract significant research funding • Impact both supply and demand side of real estate

Anchor Strategies

• Community Builders • Planners and Developers • Engines for Driving Economic Growth

A Community Builder

Dr. Martin Luther King Library, San Jose State University

Dr. Martin Luther King Library, San Jose

 The King Library is the library for San José State University and the Main Branch of the City of San José Library System  Opened August 1, 2003  Project cost of $177.5 million was shared by the State of California, the City of San José Redevelopment Authority, San José State University, and private fundraising

Planner / Developer

The University of Pennsylvania

Penn in the early 90’s

By the early 1990’s West Philadelphia and the University faced a multitude of problems – Crime – Migration to Center City – Alienation from community – Deteriorating neighborhood

…and moving forward

By rediscovering its historic relationship with the City, Penn energized the full potential of its academic and institutional resources to both contribute to a great city and sustain a vibrant urban campus.

Building on a shared vision

Penn, along with community partners, developed the West Philadelphia Initiatives to improve the University City neighborhood: – Make neighborhoods safe and secure – Attract a year-round housing community – Develop destinations for shopping, dining, and entertainment – Invest in public education – Integrate the Campus into the urban fabric

Mixed Use And Retail

The University has embraced a strategy to attract a diverse mix of businesses to campus • University Square: 300,000 sf, $90 million mixed-use development composed of national retailers • 40th Street: a retail corridor connecting campus and community, built around a mix of local businesses, community amenities, international cuisine, and cultural and entertainment venues

Market Rate and Student Housing

• • • • Left Bank, $70 million Domus, $100 million The Hub, $23.5 million 3900 walnut, $75 million

Commercial and Entertainment

   The Bridge Cinema, $53 million Translational Research Laboratory, $75 million WXPN / World Café, $13 million

An Engine for Economic Growth

Detroit Neighborhood Anchors, Detroit, Michigan

Context

• Detroit needs a new strategy to address disinvestment and deteriorating socio-economic conditions • Foundations have assumed a leadership role in neighborhood sustainability and revitalization • Right-sizing will reduce the City’s footprint, requiring the identification of viable districts • Declining public, private, and philanthropic resources requires a more effective decision-making process • Despite such challenges, anchor institutions continue to exhibit stability and growth

HIGHER EDUCATION of Business College University of Detroit - Mercy Wayne County Community College (Eastern Campus) Wayne County Community College (Northwest Campus) UDM School of Dentistry Wayne State WCCC (Downtown University Campus) UDM School of Law College for Creative Studies

STUDENTS

Sources: University representatives & websites, IPEDS

~300 2,756 4,652 ~3,500 ~3,500 31,016 736 ~3,500 1,358 355 Total: 51,673 students

HEALTHCARE DMC Sinai Grace Hospital St. John / Conner Creek Village St. John Hospital & Medical Center Detroit Hope Hospital Henry Ford Hospital System Detroit Medical St. John Detroit Center Riverview Hospital

HOSPITAL BEDS 404

Sources: Hospital representatives and websites, American Hospital Association, U3 Ventures modeling

~120 751 1,300 Total: 3,379 beds 804

EMPLOYMENT

Sources: Hospital & University representatives and websites, IPEDS, American Hospital Association, U3 Ventures modeling

2,432 ~90 204 ~720 ~230 ~230 ~720 8,115 8,045 ~110 ~230 450 9,532 ~60 Total Direct Employment: 36,200 Employees 5,036

OPERATING BUDGET

Sources: Hospital & University representatives and websites, IPEDS, American Hospital Association, U3 Ventures modeling

$331 _~$2 $34 $84 ~$20 ~$127 $2,060 $1,740 ~$10 ~$20 $33 $1,276 ~$6 ~$20 $508 Total Direct Expense: $6.4 Billion

STUDENT RESIDENTIAL CAPTURE • Analyzed three institutions: –Marygrove College –University of Detroit – Mercy –Wayne State University Total Number % living in Detroit % living 1 mile from Campus

Students

39,094 34% 13%

Employees

2,725 30% 9% • Over 32,000 of Detroit students and employees living outside • Represents $211 million in discretionary income leaked outside city limits

GOODS AND SERVICES PURCHASED • Anaylzed three major Detroit anchors: –Wayne State University –Detroit Medical Center –Henry Ford Hospital • All goods and services purchased: $1.8 Billion • Purchased in Detroit: Million $257 • 84% of all purchases leaked outside of Detroit

HIGHER EDUCATION

REGIONAL POPULATION (July 1, 2005)

Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007)

7 8 9 3 4 5 6 RANK 1 2

10

11 12 13 14 22 23 24 25 15 16 17 18 19 20 21

TOTAL ENROLLMENT (2005/06)

Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007) – Derived from IPEDS

7 8 9 10 11 12 3 4 5 6 RANK 1 2

13

14 15 16 17 18 19 20 21 22 23 24 25

BACHELOR’S DEGREES OR HIGHER AWARDED (2004/05)

Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007) – Derived from IPEDS

19

20 21 22 23 24 25 15 16 17 18 7 8 9 10 11 12 13 14 3 4 5 6 RANK 1 2

R&D FUNDING PER STUDENT (Federal, State and Local, Industry, and other, in millions – 2005/06)

Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007) Derived from National Science Foundation

15 16 17 18 19 20 21 7 8 9 10 11 12 13 14 3 4 5 6 RANK 1 2 22 23 24 25

CORE EXPENDITURES PER STUDENT (University operating expenses in millions 2005/06)

Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007) – Derived from IPEDS & Surveys

15 16 17 18 19 20 21 22 7 8 9 10 11 12 13 14 3 4 5 6 RANK 1 2

23

24 25

% OF STUDENTS FULL-TIME (2005/06)

Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007) – Derived from IPEDS

15 16 17 18 19 20 21 22 23 24 7 8 9 10 11 12 13 14 3 4 5 6 RANK 1 2

HEALTHCARE

Population

Michigan Detroit Metro Wayne County City of Detroit 912 000 1 950 000 4 425 000 9%

of Michigan's Population

10 000 000

Source: Detroit Medical institution Representatives; American Hospital Association

HEALTHCARE

Hospital Beds

Michigan Detroit Metro Wayne County City of Detroit 3 379 5 212 10 720 25 540 13%

of Michigan's Hospital Beds

Source: Detroit Medical institution Representatives; American Hospital Association

HEALTHCARE

Hospital Employees

Michigan Detroit Metro Wayne County City of Detroit 164 300 67 130 34 700 25 900 16%

of Michigan's Hospital Employees

Source: Detroit Medical institution Representatives; American Hospital Association

HEALTHCARE

Operating Budget (in millions)

Michigan Detroit Metro Wayne County City of Detroit $21 200 $9 825 $5 510 $4 275 20%

of Michigan's Hospital Budget

Source: Detroit Medical institution Representatives; American Hospital Association

EXAMPLE: MIDTOWN ANCHOR DISTRICT Detroit: Midtown Cleveland: University Circle Pittsburgh: Oakland Indianapolis Canal District

EXAMPLE: MIDTOWN ANCHOR DISTRICT INPUTS Ed’s 12,451 Med’s 485,404 32,300 70% 524,533 77% Culture 550,000 19,285 82% Population OUTPUTS Density 5,231 6,750 8,600 10% Income $21,500 0% Age 36 0% Education 30% 0% 40,805 536,180 1,800,000 100% 22,458 26,000 30,100 23 63%

RECOMMENDATIONS

• Within the anchor districts, programs to “ live, buy and hire local” should be initiated and institutionalized – definition, sizing and institutionalizing of local programs within each anchor – creating a sustainable structure to collaborate between anchors – provide an infrastructure of support through CDCs to meet the demand generated by Local Programs • Anchor district projects must be managed and coordinated holistically – institutional changes – physical interventions – comprehensive set of support services • Midtown has the greatest potential to redefine Detroit with eventual economic benefit for all neighborhoods

Leveraging Local Impact

• Live Local, Buy Local, Hire Local • Creating desirable neighborhoods • Increasing economic impact – 7% of total vendors from Detroit – 16% of dollars spent with vendors from Detroit

• Increasing capture in Detroit means

– $28 million with 10% increase – $71 million with 25% increase – $142 million with 50% increase

Conclusion

Engaged anchors form a strong and mutually beneficial bond with neighborhoods and cities   For the anchor, engagement   helps produce more enlightened community enhances the opportunity for “real and impact-ful” institution  provides greater opportunity to disseminate its intellectual discourse to the public For a City, an engaged institution  anchors a neighborhood providing a long term and sustainable employer, developer and citizen  creates a unique district that integrates academic life in the public realm