Anchor Collaboration Models for Collective Impact 2014 UEDA Annual Summit

September 30, 2014

Kim Zeuli, Senior Vice President and Director of Research

Initiative for a Competitive Inner City (ICIC)

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ICIC

• ICIC is a non-profit research and

strategy organization and the leading

authority on U.S. inner city economies

and the businesses that thrive there.

Founded in 1994 by Harvard Business

School Professor Michael Porter, ICIC

offers a market-based approach to

inner city revitalization.

Anchors Are a Key Driver for Inner City Growth

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• Improve the local business environment

1. Pursue an anchor institution strategy to capture shared value opportunities

2. Invest in the local business environment (e.g., infrastructure, workforce)

• Implement a cluster-based growth strategy

3. Strengthen existing and emerging clusters

• Support company growth and upgrading

4. Increase recognition, networking and contracting opportunities for inner

city companies

5. Connect companies to growth capital

6. Capacity building: leadership and management education for companies

A Call to Action for Universities in 2002

• ICIC published Leveraging Colleges and Universities for Urban Economic Revitalization

in 2002.

• The number of anchors that intentionally drive social and economic growth in their

communities has grown significantly since then.

• The University of Pennsylvania was an early leader.

• The Coalition of Urban Serving Universities, established in 2005, has 41 public

urban research universities as members.

• The Anchor Institution Task Force, established in 1992, has 237 participating

institutions, including many universities.

• Drexel University’s ‘Strategic Spend, Local Impact’ initiative is a good example of a

new strategy. 4

Anchor Institution Strategic Framework

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Current Focus – Measuring Impact

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Successful real estate development

projects shaped by community input

are essential for organizational growth

and competitiveness.

Employee attraction and retention help

anchors remain competitive by capturing

and retaining “top talent”.

Increased demand for goods and

services translates into increased student

numbers.

Improved and expanded supplier

networks can increase an anchor’s

operational efficiency and innovation.

Anchor ROI

A New Call to Action: Creating an Anchored Local Economy

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• Transforming inner cities requires robust, long-term efforts:

• Individual anchor initiatives are a function of leadership interest, which can

change with leaders, interests over time, and budgets

• Individual anchors focus on their backyard, limiting impact

• Individual anchors have limited resources

• Individual anchor interests may not align with real needs of inner city

• Politics

• Anchors working together can achieve a greater impact than any single

institution

• Characteristics of an Anchored Local Economy:

• Area of impact is defined based on a city’s economic development priorities

• A broad, diverse set of organizations that represent change agents: anchors,

nonprofits, city leaders, foundations, financial institutions, small business

organizations

• Comprehensive goals over a long period

Greater University Circle Initiative

Cleveland, OH

• Rather than centralizing administration and vision

within a single organization, GUCI convenes

representatives of multiple University Circle

institutions . Cleveland Foundation is the lead partner

of GUCI, and the primary oversight mechanism is the

Greater University Circle Leadership Group of 11

organizations. Project funding comes from grants and

funding from participating institutions. GUCI has over

50 funders and partners.

GUCI Leadership Group

BioEnterprise

Case Western Reserve

University

City of Cleveland

Cleveland Clinic

Cleveland Foundation

Greater Cleveland Regional

Transit Authority

Kelvin and Eleanor Smith

Foundation

The Kent H. Smith Charitable

Trust

Neighborhood Progress Inc.

University Circle Inc.

University Hospitals 8

• Cleveland Foundation initiated a

partnership with leading Cleveland

organizations in 2005 to leverage

“the economic strength of the area’s

large institutions to directly benefit

the lives of residents and transform

the neighborhoods in which they

live.”

Greater University Circle Initiative - Cleveland, OH

• The initiative focuses on economic inclusion,

transit-oriented development, housing, education,

and enhancing safety and security in neighborhoods

• Economic inclusion initiatives include: procurement strategy to purchase

products and services from local businesses; Evergreen cooperatives; job

training and preferred access to jobs for qualified local residents

• Case Western Reserve University (CWRU) is the lead on the Uptown

project, a mixed-use development and TOD project adjacent to its

campus

• CWRU and the other anchors first to be part of GUCI joined the effort

because they wanted to work collaboratively rather than in insolation to

improve the navigability and attractiveness of University Circle

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Wellspring Collaborative

Springfield, MA

Develop an

actionable

anchor strategy

that will

positively

impact

Newark’s

economy by

growing local

businesses and

local jobs.

• Started in 2009 by 19 organizations “to

create a network of worker-owned,

cooperative businesses that will provide

good jobs, create wealth, and build

community in Springfield neighborhoods.”

• Wellspring Collaborative is funded by

grants and co-op profits. The Wellspring

Cooperative Corporation is its governing

body.

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Lead Organizations and Anchor

Institutions

Center for Popular Economics

Center for Public Policy and

Administration at the University of

Massachusetts

Partners for a Healthier Community,

Inc.

Baystate Health

Sisters of Providence Health System

Mass Mutual

University of Massachusetts Amherst

Western New England University

Springfield Technical Community

College

Massachusetts Higher Education

Consortium

Wellspring Collaborative – Springfield, MA

• Springfield’s anchors purchase over $1.5 billion,

but <10% is purchased locally and even less in

low-income neighborhoods.

• U Mass Center for Public Policy and Admin was

one of the early leaders in the collaboration.

• The first worker cooperative, the Wellspring

Upholstery Cooperative, was launched in 2013. In

2014, Wellspring will begin to build its second

business, the Wellspring Greenhouse Cooperative.

• The universities buy from the upholstery co-op and have committed to

buy from the greenhouse.

• Profits will help to seed and grow the network.

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Midtown Detroit

Detroit, MI

Develop an

actionable

anchor strategy

that will

positively

impact

Newark’s

economy by

growing local

businesses and

local jobs.

• Founded in 2011

• An independent nonprofit planning and

development organization funded by 46 entities,

including anchors (2 academic institutions),

foundations, and government agencies. It has a

staff of 12.

• Works on more than 30 initiatives that

“recognize the importance of Midtown’s

revitalization and its positive effect on the

community,” including anchor projects around

local living and local purchasing.

Anchor Institutions and Major

Funders

Henry Ford Health System

Wayne State University

Detroit Medical Center

College for Creative Studies

City of Detroit - Department of Public

Works

Detroit Development Fund

Ford Foundation

Hudson-Webber Foundation

Invest Detroit

Kresge Foundation

Living Cities

Michigan Department of Transportation

Michigan Economic Development

Corporation (CRP)

Michigan State Housing Development

Authority

NCB Capital Impact

New Economy Initiative for Southeast

Michigan 12

Midtown Detroit - Detroit, MI

Develop an

actionable

anchor strategy

that will

positively

impact

Newark’s

economy by

growing local

businesses and

local jobs.

Live Midtown

• Launched in January 2011, Live

Midtown is designed to attract

employees from three anchor

institutions, including WSU, into

becoming residents in the area where

they work through financial incentives

for buyers and renters. It was

developed in collaboration with the

anchor institutions with initial funding

of $1.2 million from partners.

• Over 1,456 employees have been

approved for the program.

Buy Detroit

• The anchor institutions have begun

to purchase various products and

services from a number of local

businesses in the areas of food,

waste management and recycling,

and facilities maintenance.

• Three anchors, including WSU,

hosted a trade fair in May 2014 for

businesses to meet with the

anchors to discuss the specifics and

opportunities of the initiative.

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New Anchor Initiatives

Chicago Anchors for a Strong Economy (CASE) - Chicago, IL

Baltimore City Anchor Plan - Baltimore, MD

Economic Opportunity Strategy – New Orleans, LA

• The City and 8 anchors (including 7 universities) committed to the Baltimore City Anchor

Plan in June 2014. The Plan is an initiative of the City of Baltimore.

• Goals include public safety, quality of life in Baltimore, and business growth.

• Each anchor, with City agencies, has developed its own anchor plan for initiatives and

collaboration

• Launched in March 2014 by World Business Chicago, a nonprofit economic development

org, it has 11 member anchors, including 3 universities: Illinois Institute of Technology,

The University of Chicago, and University of Illinois at Chicago.

• Focus is on procurement opportunities. CASE connects anchors to local, competitive firms.

• It is run by World Business Chicago, and is funded by contributions from member anchor

institutions and grants.

• The City announced the Economic Opportunity Strategy in Sep 2014. It involves 8

anchors, including 2 universities: Tulane University and Xavier University.

• Goal is to “connect disadvantaged job seekers and businesses to new opportunities.”

• A workforce intermediary will be established to connect employees/anchors and provide

job training. 14

Best Practices for Anchor Collaboration

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• Broad, diverse set of organizations including public sector

• Strong leadership at C-Suite level

• Independent organization to manage initiative

• Alignment around one priority

• Specific Goals and Metrics

• Patience

ICIC’S MISSION IS 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