collaborative business initiative

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College Hill Alliance

1624B Coleman Ave. · Macon, GA 31207 · o: (478) 301-‐2008 f: (478) 301-‐2009 · collegehillmacon.com

A Collaborative Business Initiative for Revitalizing Macon’s Urban Economy

Prepared by

Patrick Madison, Ph.D., AICP, REP

Executive Director College Hill Alliance

March 16, 2011

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Introduction I am often asked about the reasons for the success of the College Hill Corridor Initiative. The answer is best found in the clarity and simplicity of our mission statement. “The College Hill Corridor now embraces a revitalized future – hip, historic, and progressive – unified by a commitment to vibrant public spaces, balanced streets, sustainable growth, and a viable local economy.”

Defined by the goals and recommendations of the College Hill Corridor Master Plan, this vision was drawn from the collective input of over a thousand residents, business owners, students, faculty, organizations, political and community leaders, each with a stake in the College Hill Corridor and downtown Macon. For it’s part, the College Hill Alliance has worked to develop strategic initiatives and partnerships designed to promote an urban lifestyle, attract residential and business investment, and create jobs. In the past year there has over $10 million of new commercial investment and over $1.5 million in new housing and rehab construction in the Corridor. Commercial space in the Lofts at Mercer Village was 100 percent pre-‐leased before opening. Mercer Village is fully leased, and a new pharmacy is underway at the corner of College and Forsyth Streets. At the end of last year the Alliance’s Beall’s Hill Housing Partnership with Historic Macon Foundation as the developer, and Mercer University, the City of Macon, Knight Foundation, and Macon Housing Authority as investors, was cited at the National Preservation Conference in Austin, Texas, as “the most active and successful revolving housing loan fund in the nation.” Homes are being restored or built at the rate of 12 -‐ 15 per year, and are frequently under contract before construction is completed. These successes offer a testament to the commitment and belief held by new homebuyers, business, and investors that the College Hill version of the urban lifestyle has something attractive to offer. Despite these positive early gains, job growth offers the greatest challenge to sustaining the College Hill Initiative. As a recent Time Magazine article put it: “jobs are the new assets.” Providing technical, high-‐paying jobs in sufficient quantity to attract outside talent and retain the best and brightest graduates of our middle Georgia institutions of higher learning will determine whether we can continue to realize the lifestyle and housing goals of our vision for the Corridor and downtown. A recent 11th Hour Magazine Readers Choice Poll named College Hill, “Macon’s Favorite Neighborhood.” Today, the College Hill Corridor is more than a location -‐ it’s a movement. With homes to fit every lifestyle, from new construction to rehabbed loft-‐style shotgun houses, cottages and fully restored architectural masterpieces. The College Hill Corridor is vibrant community with the classic appeal of being pedestrian and bike-‐friendly and just around the corner from locally owned and operated businesses, as well as economic

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engines like the Medical Center of Central Georgia and Mercer University. We must now use these “lifestyle” successes as an opportunity to catalyze business revitalization focused in the College Hill Corridor and downtown Macon.

What is Macon’s employment picture? From the year 2000 through November 2010, the U.S. Bureau of Labor Statistics reports the Macon Statistical Area (Macon MSA) realized no measurable job growth losing a net of 60 jobs during that period. Employment peaked in 2007 at 106,975 jobs, but has since been offset by 7,025 lost jobs through November 2010. During that same ten-‐year period Macon’s trade, transportation and utilities sectors lost 2,200 jobs, while the financial, leisure and hospitality sectors lost another 300 jobs. Government did realize a net gain of 300 jobs from 2000-‐2010, but has lost 1,500 jobs since peaking in 2008. Clearly, traditional business recruitment efforts directed at pursuing companies in other counties, states, or countries to locate new or expanding ventures or plants in middle Georgia have not been able to create enough job growth to offset local employment losses. And, even if the economy were to recover tomorrow, it is not likely many of these jobs will be recovered. In these difficult economic times entire industries have disappeared, and those that still survive have acknowledged the message of doing more with fewer people. There are very few “knight in shining armor” industries left to ride in from out of town to save the day, and every state and community in the country is competing for what is left of them.

How do we re-‐establish positive job growth? Nationally, the driving forces underlying advancing economies have shifted from manufacturing to the creation of knowledge and new ideas, and from corporations to individuals and entrepreneurs to actualize these new ideas. According to the National Commission on Entrepreneurship, entrepreneurial growth companies account for:

44 percent of new jobs in the United States 70 percent of new economic growth Two-‐thirds of business growth More than one-‐half of all business innovation

Revitalizing job growth in Macon will require balancing traditional economic development approaches with a focus on supporting entrepreneurial imagination and energy dedicated to the creation of businesses from within the community. Future economic growth will depend upon what made most communities prosper in the first place, the ability to (1) foster home grown companies, especially those offering technical, higher paying jobs, (2) attract new revenue streams by marketing locally based products and services beyond the immediate market area, and (3) headquarter companies in the community with a sense of civic and social commitment.

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Private investment offers further evidence of the increasing emphasis on entrepreneurial ventures. A total of 25,200 entrepreneurial ventures received angel funding in the first half of 2010, a three percent increase from the same period in 2009. Healthcare services and medical devices and equipment accounted for the largest share of investments, with twenty-‐four percent of total angel investments in first quarter of 2010, followed by biotech (20%), software (12%), industrial and energy (11%), retail (9%) and media (5%). At the local level, technical employment trends offer further support. From 2000-‐2010, while trade, transportation, finance, and government were losing jobs, the healthcare and education sectors in the Macon MSA grew by 4,000 jobs and professional and business services added another 1,500 jobs.

A Success Story Recently, representatives of the Mercer School of Engineering, the Knight Foundation and I had the opportunity to visit North Carolina State University’s (NCSU) Centennial Campus Research Park. We toured the campus and met with NCSU leadership involved in both the original development and current operations. They have been gracious enough to offer their support for our effort and a willingness to come to Macon and share their experience. Located on 780 acres of land donated to the University in 1984 by the State of North Carolina, Centennial Campus offers one of the finest examples of what is possible when academia, business and government collaborate. The campus is home to a business incubator, over 63 companies and 75 departments of the university, as well as recreational and residential facilities. Technology-‐based companies have access to research facilities and technical expertise, and the university benefits from intern and part-‐time work opportunities for students, as well as real life opportunities to commercialize cutting-‐edge science. Built mostly with private sector investment, the buildings on campus have never dropped below 93 percent occupancy. While Macon is not Raleigh and we do not have an NCSU or a Centennial Campus, we do have many of the same essential ingredients along the College Hill Corridor and in our downtown. The Urban Development Authority owns several parcels of land downtown, including eleven acres on the riverfront. In addition to properties owned by NewTown Macon and Mercer University, there is over 300,000 square feet of available office and retail space in the Corridor and downtown. The technology park concept at Centennial Campus was, and is, being driven by the School of Engineering. Mercer has a School of Engineering, which was the birthplace in 1987 of the Mercer Engineering Research Center that is now located in Warner Robins and employs 200 people in 104,000 square feet of space. We actually have some resources they do not have. The Corridor houses the Mercer School of Medicine and the Medical Center of Central Georgia (with the Coliseum Medical Center nearby) offering the possibility of biomedical research and supporting business

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opportunities. And within seventeen minutes drive time from downtown is the front gate of the Warner Robins Air Logistics Command, the largest employer in Georgia.

What should be the strategic approach? Macon needs an institutional mechanism to undertake the primary mission of developing and implementing collaborative business partnerships linking technology, capital and know-‐how with the goals of leveraging entrepreneurial talent, and accelerating the development of technology-‐based local companies. Essential resources would include:

Business and entrepreneurial recruitment Mentoring programs Improved business services and counseling Access to loans, equity participation, other sources of capital Research and development resources Financial support services Infrastructure support Training programs Student entrepreneurship programs

Why Mercer University as the institutional mechanism? There are four major reasons why this initiative should be implemented at Mercer. It has the most to offer, most to gain, most to lose, and has demonstrated the most commitment to date of any institution in Macon. Reason 1: Mercer’s eleven schools and colleges offer the greatest concentration of knowledge-‐based manpower, research facilities, and amenities of any institution in middle Georgia. As opposed to state-‐supported universities in middle Georgia, Mercer as a private institution has a greater capacity for direct and effective interaction with other local community economic development resources. Properly engaged, these resources could attract and create significant technological investment and collaboration, as well as the potential for additional revenue streams to the University. Reason 2: The initiative would provide Mercer with a major student and faculty recruitment tool with private sector research opportunities, internships, part-‐time work, and full-‐time employment after graduation; the potential for accelerated growth resulting from collaborative business partnerships; and, competitive advantage with other universities through an improved national reputation. Reason 3: As an urban campus Mercer’s ability to attract quality faculty and students is influenced by the character and condition of the surrounding neighborhoods and available retail and recreational resources. No other major institution in Macon would be as adversely affected by urban decline as the University.

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Reason 4: To date Mercer is the only major Macon institution to have demonstrated the leadership and financial commitment needed to revitalize the College Hill Corridor and downtown. It also has experience with developing collaborative technology-‐based partnerships (MERC) and business incubators (Mercer Village).

The Model The proposed model outlines how the success of the NC State Centennial Campus experience could be applied to the circumstances and resources of Mercer University, the College Hill Corridor, and downtown Macon, to achieve the following goals. Goals

Establish Mercer University as a proactive institutional partner utilizing its academic and research capacity to develop collaborative business partnerships with technology-‐based companies

Attract and create technological business investment and collaboration in the College Hill Corridor and downtown Macon

Foster new and emerging local entrepreneurial companies, especially those offering technical, higher paying jobs

Attract new revenue streams by marketing locally based products and services beyond the immediate market area

Headquarter companies in the community with a sense of civic and social commitment

Note: The model is not comprehensive in that intentionally does not address other organizational economic development resources, such as the City, County, Urban Development Authority, Industrial Development Authority, Macon Economic Development Commission, Chamber of Commerce, Small Business Development, and Regional Commission. Rather, the model’s purpose is to demonstrate how Mercer, with the greatest and longest “demonstrated” business commitment to downtown Macon, has many of the necessary institutional resources and activities already in place and functioning.

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Elements of the Model Culture of Engagement (Primary resources) Recruit faculty willing to participate in research and development activities in collaboration with the business community. Identify programs, and research and development resources, facilities, and equipment that could support the needs of technology-‐based companies. Business Partnerships with ready-to-hire companies (primary market)

Recruit existing companies needing access to research facilities and technical expertise, and willing to collaborate with the university to provide internships and part-‐time work for students, and opportunities to collaborate with faculty to commercialize new technologies. MERC offers an existing example with the opportunity to spin-‐off other businesses, and Mercer is currently working to establish another (undisclosed) business/academic collaboration.

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Business Incubator

Provide a physical environment for new and emerging for-‐profit businesses to exchange ideas and interact with faculty, students, research resources, and government, as well as access to business planning, marketing strategies, and advice on funding opportunities. While not a technology incubator, Mercer does operate Mercer Village providing rent considerations similar to a retail incubator. The Garage

Establish an innovation incubator to foster creativity among entrepreneurial-‐minded students. It could be open twenty-‐four hours a day, seven days week, and provide students with the resources to brainstorm and develop ideas for new business ventures whenever they feel inspired. The School of Engineering currently provides “garage” opportunities for its students. The Clinic

Similar to the business incubator in structure, the Clinic would provide a physical environment for new and emerging non-‐profit businesses focused on social and/or faith based initiatives to exchange ideas and interact with faculty, students, research resources, and government, as well as access to business planning, marketing strategies, and advice on funding opportunities. Mercer on Mission (prosthetics), and the Beall’s Hill Neighborhood Revitalization Initiative typify projects that would be the focal point for the Clinic. Jump-Start Technology Transfer Accelerator

Create a “one-‐stop shop” for researchers who want to find collaborators and funding to commercialize their inventions, as well as businesses looking for creative solutions, and faculty, staff, and students who want entrepreneurial training.

Proposed Organizational Roles College Hill Alliance Primary responsibility for project design and implementation Also for:

Building and coordinating relationships with relevant community economic development resources

Branding Mercer as an academic and research partner seeking collaborative business relationships

External marketing Developing & managing financial and business support services Providing initial funding to establish program feasibility Pursuing additional funding sources (grants, venture capital)

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Mercer University Primary institutional mechanism for providing and sustaining the academic and research resources necessary to link technology, capital and know-how with the goals of leveraging technology-based private business investment in Macon’s urban center

School of Engineering – Lead academic unit with primary internal responsibility And to:

Identify, evaluate, and cultivate university manpower, research facilities, programs, and equipment resources relevant to the initiative

Act as technical advisor to external marketing efforts Coordinate implementation of internal (Mercer) resources Ensure engagement of academic mission and consistency with university

policies

Why is College Hill Alliance positioned to develop and implement the initiative? Reason 1: Sustaining growth and a viable local economy are core elements of the vision statement of the College Hill Corridor Master Plan. Jobs represent the key to ensuring the future of that vision as well as accomplishing the original instructions from the Mayor of Macon and President of Mercer University to the College Hill Corridor Commission to “create a physical, cultural and social path connecting Mercer University and the downtown.” The College Hill Alliance is responsible for leading the implementation of that vision. Reason 2: As a function of Mercer and the focal point of partnerships with the City of Macon and other key community organizations, the Alliance is uniquely positioned to facilitate a collaboration between academia, business, and government. Reason 3: The Alliance is already engaged in business recruitment strategies designed to serve the local economy and foster a sense of community within the Corridor. These efforts have been successful in attracting new residential and retail investment, and in creating service retail and construction jobs. Reason 4: Implementing an entrepreneurial initiative will depend upon developing collaborative partnerships. Essential to the Alliance’s operational successes has been the ability to forge relationships with other organizations having the resources to implement and sustain our ideas and strategies. Reason 5: The Alliance grant design encourages creativity and innovation, and our steering committee has supported a “nimble” operational approach allowing the staff to

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establish, assess, and adjust operational priorities as needed to sustain the energy and pace of the program. Reason 6: The Alliance’s emphasis on communication and outreach has engendered a sense of energy in the community and a perception of a high level of activity in the Corridor. We have a reputation for getting things done, and doing it transparently. Reason 7: A knowledgeable, creative and self-‐motivated staff capable of independently establishing priorities and implementing the strategies necessary to implement an entrepreneurial initiative.

Who benefits and how? Mercer University

Internships and part-‐time work Employment opportunities for graduates Basic lab and equipment sharing and use Contractual consulting with faculty Joint development and sponsorship of seminars and lecture series Sponsoring Senior Design projects Mentoring and volunteering with students Serving as adjunct faculty, members of advisory teams or guest lecturers Space/equipment donations Collaboration on new standards, test protocols, etc. Support for grant appropriations, new initiatives and connectivity with others Joint research Partnering on projects including pilots Collaborative grants and projects Sponsoring research Licensing technology Joint curriculum input and development University spin-‐outs/equity and royalty positions

Macon & Downtown

Opportunity to re-‐establish downtown as the economic, social, and cultural center of middle Georgia

Attract higher paying professional and technical jobs Retain graduates of local colleges and universities Sustain and expand the College Hill Corridor Initiative Increased tax base Improved downtown market for retail and entertainment

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Corporate Partners

Research opportunities with the faculty and students of Mercer’s eleven schools and colleges

Access to state-‐of-‐the-‐art laboratories, research equipment, and library Proximity to a collaborative environment for innovation Continuing education opportunities and tuition discounts Access to Mercer University recreational resources, sporting events Relationships with students (interns, co-‐ops, projects, new hires, etc.) Synergies of co-‐locating with like-‐minded companies Professional office space at competitive market rates Possible tax incentives and bond financing

Next Steps: 90 days To achieve full implementation of the Collaborative Business Initiative the following tasks will need to be completed.

1. Obtain Knight Foundation approval of initiative (Beverly Blake approved 3/1) 2. Obtain Mercer University commitment as institutional partner (President

Underwood approved 3/3) 3. Request CHA Steering Committee adopt initiative 4. Establish operational team 5. Develop budget, re-‐task CHA funds, request Knight Foundation budget approval 6. Identify, evaluate, and cultivate university manpower, research facilities, programs,

and equipment resources relevant to the initiative 7. Identify, evaluate, and cultivate community resources relevant to the initiative 8. Brand and build marketing campaign on the opportunity for technology-‐based

partnerships combined with the lifestyle experience of the College Hill Corridor

Summary The challenges we face are daunting and not without uncertainty, but successfully met they offer the opportunity for growth driven by the innovation and creativity essential to the future prosperity of our community. Even the Centennial Campus success did not come without trial. Officials at NCSU told me there was much opposition to the original plan by residents, businesses, government officials, city planners, and faculty. Three years after construction began there was consideration as to whether the plan was overly ambitious and should be abandoned. But the firm commitment of Governor James B. Hunt to promote technology in the state, and the leadership of Claude E. McKinney, Dean of the School of Design at NCSU whose vision drove the development of Centennial Campus, prevailed. I believe we have the capacity for that same kind of leadership and will in our community. I have witnessed it every day since I became involved in the College Hill Corridor Initiative.

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