community revitalization - final
TRANSCRIPT
Crunch Time for CommunitiesA Business Case For Investing in Neighborhoods
Presentation to:Port of Greater Cincinnati Development Authority Board of Directors
Presented by Darin HallOctober 14, 2015
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By Many Indications – Our Region Is Booming
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Booming: Over the Rhine
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Improving: Population
Cincinnati's population grew for the third year in a row, rising to 298,165 last year – the highest level this decade.
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5 Looking Forward“What are we doing to ensure that we are all empowering
communities to participate in the prosperity?”
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Many Neighborhoods have been left behind
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Poverty continues to undermine the American Dream
That is more than 1 in 10 Americans
48.8 million Americans live in poverty1
48.8 million > the entire populations of Canada, Denmark, and Ireland combined
of children born to parents in
the bottom fifth of the economic distribution remain in the bottom as adults2
23% rise only to the second fifth2
1 U.S. Census Bureau, American Community Survey Briefs: Household income – 2012, 2National Center for Children in Poverty “Child Poverty and Intergenerational Mobility”
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Children experience poverty at even higher rates
16.1 million children live in poverty
That is 1 in 4 American children
Of poor children live in concentrated poverty
Concentrated poverty: >30% lives below the poverty line
Childstats.gov Forum on Child and Family Statistics http://www.childstats.gov/americaschildren13/eco1a.asp
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Living in concentrated poverty often has dire implications for childrenof 3rd graders living in concentrated
poverty read below grade level• 2x as many adults living in areas of
concentrated poverty lack a high school diploma
• Residents of areas of concentrated poverty can experience 12 times higher homicide rates.
That is more than 6 out of 7 children Annie E Casey Foundation :”How Third Grade Reading Skills and Poverty Influence High School Graduation” http://gradelevelreading.net/wp-content/uploads/2012/01/Double-Jeopardy-Report-030812-for-web1.pdf
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Port of Greater Cincinnati Development Authority*Key Drivers for Inner City Growth – Michael E. Porter
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RAJ CHETTY, ECONOMIST
In climbing the income ladder
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Raises health expenditures by
Raises the cost of crime by
Reduces productivity and economic output by
$150 billion
$160 billion
$160 billion
The total costs to the United States associated with childhood poverty equals
$500 billion per yearSources: Center for American Progress (2007)
It is estimated that childhood poverty…
The human and economic costs of childhood poverty affect everyone
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Cincinnati Life Expectancy
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These Same Areas Report:
• Higher Crime Rates
• Less Home Ownership
• More Condemned Structures
• Largest Population Decline
• Less Employment
• Lower Life Expectancy
• Higher High School Drop-Out Rates
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Comprehensivecommunity revitalization strategy to move region forward
If we don’t…
If we do…
Provide thought leadership on one of county’s most pressing issues
Build capacity of community organizations
Use our professional approach to convene, partner and bring best practices
Benefit municipalities: more property tax, more income tax,
less cost for crime and blight
Improve lives of residents better housing, access to jobs, less crime,
more amenities, opportunities for engagement
Improve lives of residents better housing, access to jobs, less crime,
more amenities, opportunities for engagement
Disinvested neighborhoods have higher crime and blight
Disinvested neighborhoods have higher crime and blight
Loss of competitiveness few homes for millennials; lack of development sites
Loss of competitiveness few homes for millennials; lack of development sites
Fragmented organizations working in silos; wasted resources with little results
Fragmented organizations working in silos; wasted resources with little results
Tale of two cities:economic stratification continues
Continuing decline of property valuesContinuing decline of property values
Less blight and crime
No income tax from vacant homesNo income tax from vacant homes
Importance of Revitalization
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We Have a Dream
• Healthy, Vibrant neighborhoods where people feel safe have opportunities to work and great housing options
• This is now a national conversation with experts from many different “silos” working to develop & execute cross functional strategies to drive change into disinvested neighborhoods
Non-profit consulting firm that works side-by-side with local leaders to plan and implement a holistic revitalization effort.
Nonprofit research and strategy organization and the leading authority on U.S. inner city economies and the businesses that thrive there.
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What We Can Do
REBUILD THE RIGHT NUMBER OF HOMES IN THE RIGHT AREAS
REVITALIZE BUSINESS DISTRICTS
SUPPORT/DEVELOP LOCAL COMMUNITY
LEADERSHIP
BUILD WEALTH IN NEIGHBORHOODS
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Intentional Approach: How We Select Neighborhoods
• Community invitation
• Eliminate blight & dangerous crime hot spots
• Anchor Organizations
• Lead Organization (capacity)
• Established Housing Plan
• Acute disinvestment & fallout from foreclosure crisis
• Additional City/County resources
• Private developers already working in neighborhood
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Scalability
• Developed a collaborative model for community revitalization to address multiple communities
• 10 neighborhoods over 10 years
• Roles are different in each neighborhood
• Model allows us to respond to varying community needs
Some neighborhoods will have:
• Disinvested commercial & neighborhood business district, no lead community partner
• No residential housing market, disinvestedbusiness district, strong stakeholder & community partnerships
• Redevelop commercial and business districts, catalyze high performing lead organization
• Eliminate blight, reestablish residential market & business district
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Intentional Approach: Economic Inclusion
Project Type % MBE % WBE % SBE Comments
HCLRC (Landbank) 26% 24% 54% Includes demolition of housing and stabilization
Aspirational Goal 25% 7% 30%
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21Work Has Begun: Bond Hill, Roselawn & Evanston
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Bond Hill + Roselawn Project Summary
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Bond Hill + Roselawn Project Summary
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Team Facilitation
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Workforce Development –Lawn LifeStarted with simple yard maintenance
They have grown into an important REACH Evanston partner
Since March 2014, Lawn Life has employed around 80 people - nearly half of those people have worked on REACH projects
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Community Partner – Building Value
• Has employed 32 associates in the workforce development/transitional employment program
• Has resulted in 10,960 training hours
• 85% of graduates stay on with full-time jobs for a year or more after graduating from the program
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27 Revitalizing Business Districts: Closing the Gap
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Knowledge
Networks
Capital
MarginalizedCommunity
EntrepreneurialEcosystem
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Communities can transform by closingthe microbusiness gap ‐ families will
be better supported by localbusinesses; vacantbuildings will
become occupied;and outsiders willvisit more often
Stimulating the “right mix” of K,N, and C
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Healthy Neighborhoods Comparison
Study by Emory University
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Business District – Historic Stabilization of OMAR
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31Revitalization Requires Strong Partnerships, Patience and Capital
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How We Gain Momentum
• Revitalization Requires Strong Partnerships, Patience and Capital
Invest Build Raise
Continue to invest in national best practices, research and policy advocacy
Build our team in number and expertise to accelerate work
Identify additional revenue sources to accelerate work and impact
- Dr. Michael Porter, Harvard Business School & Founder of ICIC
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Estimated Investment
• $4.5 million per community• $4M real estate, $.5M soft costs
– Of the $4.5M, $3.2 residential, $.8 commercial• 90% renovation, 10% demo for residential
• Homes start to sell in year 2, lots all in year 5• Takes until year 5 to sell commercial lots• Need $2.5 million additional annual revenue
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What is Our Intended 10 Year Impact?
10 communities
300 homes
50commercial
acres
400,000 sq feet and 130 new
businesses
$ PropertyTax
Revenue ROIDecrease in poverty
Increase neighborhood leadership
Decrease in crime
Blight removal
Opportunity for community
entrepreneurism
Attraction of new residents
Accelerate development
Raise housing market values
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We Have A Dream• Core to our work• Accelerate and amplify our initiatives• Encourage job creation• Facilitate capital access• Diversify Hamilton County’s economy