the phillips story addressing market failure through public-private partnership department of...
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The Phillips Story
Addressing Market Failure Through Public-Private Partnership
Department of Community Planning & Economic Development – CPED
www.ci.minneapolis.mn.us/cped/presentations November 2011
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Phillips
Ventura Village
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Phillips
Phillips/Minneapolis: Poverty status
0%
10%
20%
30%
40%
50%
60%
1989 1999 2008
Percentage of total population below poverty level (Phillips)
Percentage of total population below poverty level (Minneapolis)
Phillips/Minneapolis: Foreign born
0%
5%
10%
15%
20%
25%
30%
35%
1990 2000 2008
Phillips Minneapolis
Source: U.S. Census of Population and Housing (SF3), City Data (2008)
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Phillips
* Hispanic could be any raceSource: U.S. Census of Population and Housing (SF1)
Phillips: Ethnic distribution
959%
-100%
100%
300%
500%
700%
900%
1980 1990 2000
Pe
rce
nta
ge
ch
an
ge
fro
m 1
98
0
White Black American Indian Asian Hispanic * Others
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Phillips
Phillips/Minneapolis: Homeowner and Rental vacancy rate
0%
2%
4%
6%
8%
10%
12%
14%
1990 2000
Homeowner vacancy rate (Phillips)
Rental vacancy rate (Phillips)
Homeowner vacancy rate (Minneapolis)
Rental vacancy rate (Minneapolis)
Source: U.S. Census of Population and Housing (SF3)
Average Estimated Market Value: Single Family
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
1994
1996
1998
2000
2002
2004
2006
2008
2010
Phillips Minneapolis
Source: Assessor
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Leadership
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A Targeted Approach
Public Safety
Jobs
Housing
Infrastructure
- Michael Bonsignore
CEO Honeywell, June 1997
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Safety
“Crime curbs development. Development curbs crime.”
- MPD Chief Dolan &
CPED Mike Christenson
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Crime Map:
Wells Fargo
Phillips Eye Institute
Portland Place
Crime Map:
Wells Fargo
Selvaggio Initiative
Phillips Eye Institute
Portland Place
Crime Map:
Wells Fargo
Phillips Eye Institute
Selvaggio Initiative
Portland Place
Chicago-Lake Safety Intervention
Crime Map:
Wells Fargo
Phillips Eye Institute
Children’s Village Center
Portland Place
Selvaggio InitiativeChicago-Lake Safety Intervention
Crime Map:Crime Map:
Wells Fargo
Midtown Exchange
Phillips Eye Institute
Children’s Village Center
Portland Place
Safety CenterSelvaggio Initiative
Abbott Northwestern
Chicago-Lake Safety Intervention
Children’s Hospital
Crime Map:
Portland Place
Wells Fargo
Phillips Eye Institute
The Wellstone
Children’s Village Center
Safety CenterSelvaggio Initiative Midtown Exchange
Abbott Northwestern
Chicago-Lake Safety Intervention
Children’s Hospital
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Development Curbs Crime
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Crime Map:
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Portland Place
Wells Fargo
Phillips Eye Institute
The Wellstone
Children’s Village Center
Safety CenterSelvaggio Initiative Midtown Exchange
Abbott Northwestern
Chicago-Lake Safety Intervention
Children’s Hospital
Crime Map: 11 crimes
occurred in newly developed sites
during July
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Portland Place
Wells Fargo
Phillips Eye Institute
The Wellstone
Children’s Village Center
Safety CenterSelvaggio Initiative Midtown Exchange
Abbott Northwestern
Chicago-Lake Safety Intervention
Children’s Hospital
Crime Map:24 crimes occurred
in 1998 on sites developed by 2009 during
July
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Portland Place
Wells Fargo
Phillips Eye Institute
The Wellstone
Children’s Village Center
Safety CenterSelvaggio Initiative Midtown Exchange
Abbott Northwestern
Chicago-Lake Safety Intervention
Children’s Hospital
Crime Map: 11 crimes
occurred in newly developed sites
during July
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Philips Neighborhood: Crime
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Part 1 Part 2
* Violent Crimes down 43%
Safety Crime down 62% 1998 – 2009
Percentage Change in Crime from 1998
-31%
-62%-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%19
9819
9920
0020
0120
0220
0320
0420
0520
0620
0720
0820
09
Minneapolis Phillips
Type of Crime % Change 98-09
ALL One Crimes -57%
Homicide* -90%
Rape* -40%
Robbery* -48%
Aggravated Assault* -46%
Burglary -62%
Larceny -59%
Vehicle Theft -64%
Arson -56%
ALL Two Crimes -68%
Simple Assault -67%
Weapons -54%
Prostitution -83%
Narcotics -60%
Source: Minneapolis Police Department
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Safety
Safe-Zone Tactics■ Public-Private partnership
■ Cameras
■ Intranet site
■ Safety Center
■ Shotspotter
■ Joint Patrols
■ Training
■ CityWorkSite & Communications
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Safety
Chicago-Lake Intervention (2002-2004)
Joseph Selvaggio Initiative(1998-2001)
Community Crime Prevention Initiative (1998-)
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Jobs
Health Careers Partnership (HCP)2001-2005: More than 1,200 students enrolled, with most graduates placed in career-track jobs at the15 area healthcare providers.
Largest hospital-based training program in the nation
Train to Work• Since 1997: 987 graduates and 735
job placements• 80% job retention rate
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Jobs
■ Abbott Northwestern invests $145 million in expansion of its heart hospital, employs 5,300 people in total, and triples its employment of Phillips residents to 900
■ Wells Fargo invests $200 million in the former Honeywell Buildings and employs 4,300 people.
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Jobs
■ Allina Health Systems relocates its headquarters in the renovated Midtown Exchange building, bringing 2,000 jobs.
■ Children’s Hospital and Clinics adds almost $200 million to its campus and employs 2,225 people.
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Jobs
• 36.4% of Phillips residents work in Minneapolis (not including the Phillips neighborhood)
More work to be done:• Only 2.8% of Phillips residents work in the
Phillips neighborhood
Source: CURA, November 2009
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Percentage Growth in EMV of Commercial & Industrial Buildings from 1998
0%
20%
40%
60%
80%
100%
120%
140%
160%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
City Phillips
Source: City of Minneapolis Assessor
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Percentage Employment Change from 2000
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2000 2001 2002 2003 2004 2005 2006 2007 2008
North EZ Phillips EZ Northeast EZ Empowerment zone City
Source: QCEW - DEED
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Housing
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Housing
$35 million invested or earmarked for neighborhood housing, 1997-2004■ Phillips Partnership Housing Stabilization
Initiative (2009)■ Home improvement grants■ Downpayment assistance■ Neighborhood marketing■ Foreclosure prevention & housing resource guide
■ Joseph Selvaggio Initiative (1998–2001)
■ East Phillips Infill Campaign (1999–)
■ Portland Place (1997–1999)
■ Phillips Park Initiative (1997–1998; 2003–)
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Percentage Change in EMV of Residential Buildings from 1998
0%50%
100%150%200%250%300%350%400%450%500%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Phillips City
Source: City of Minneapolis Assessor
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Residential Properties with Housing Violations
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Residential Properties on Vacant Building Registry
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Residential Property Foreclosures
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Non-Homesteaded Single Family Residential Properties 1995 - 2008
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Residential Properties in Poor or Fair Condition
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Value of Residential Property Permits
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Housing
Monumental historic renovation. Includes 374 units of affordable and market rate condos and apartments, Allina corporate headquarters, and the Midtown Global Market.
Midtown Exchange
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Infrastructure
More than $800 million allocated for roads, light rail, and green space
■ Private-Sector■ Members of the Phillips Partnership have initiated
nearly $1 billion in development in the neighborhood, resulting in 4,000 new jobs.
■ I-35W Access Project■ $100 million in freeway access
improvements that the Phillips Partnership has mobilized
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Results
■ An effective public-private partnership empowered to address market failure
■ Crime down 62% 1998 – 2009.
■ $772 million investment by private sector, 4,000 new jobs on 5 campuses (Allina, Abbott Northwestern, Wells Fargo Mortgage, Children’s and Phillips Eye Institute)
■ Largest hospital-based job training program in the country
■ Market value growth in Phillips beyond City averages
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Thank you
Information and photographs courtesy of Phillips Partnership.November 2011