Cleveland Health Tech Corridor- Enterprise Community Presentation
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Transcript of Cleveland Health Tech Corridor- Enterprise Community Presentation
![Page 1: Cleveland Health Tech Corridor- Enterprise Community Presentation](https://reader034.fdocuments.net/reader034/viewer/2022051818/54b53f4f4a7959ba678b469a/html5/thumbnails/1.jpg)
Greater University Circle Wealth Building Initiative
Daniel Budish Department of Economic Development City of Cleveland
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University Circle
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VACANT LAND University Circle Vacant Land
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WATER SHUT OFFS / TAX DELIQUENCIES / FORECLOSURES
Water Shut Offs/Tax Delinquencies /Foreclosures
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NEIGHBORHOODS AT RISK Overall Distress
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Mission • The Greater University Circle Initiative
(GUCI) demonstrates how an older industrial city can build upon its assets to transform neighborhoods, create jobs, and address poverty. Transcending physical development to embrace a communal vision in which wealth is shared and no one is left out.
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Timeline • 2003:
– Neighborhood Connections • 2005:
– Greater University Circle Initiative – Evergreen Cooperatives
• 2008: – RTA’s Healthline opens
• 2009: – New Bridge
• 2011: – MidTown Tech Park completed – Living Cities awards TII to Cleveland for GUCI – $14.75 million
in loans and grants
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Euclid Ave. Streetscape and BRT
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Timeline • 2003:
– Neighborhood Connections • 2005:
– Greater University Circle Initiative – Evergreen Cooperatives
• 2008: – RTA’s Healthline opens
• 2009: – New Bridge
• 2011: – MidTown Tech Park completed – Living Cities awards TII to Cleveland for GUCI – $14.75 million
in loans and grants
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Challenges
• Geographical Fiefdoms • Organizational competition • Difficult to use $$ • Town-Gown Dynamics
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Programs Goals Strategies Buy
Local Hire Local
Live Local
Connect Residents
Evergreen
Health Tech Corridor
Community Engagement
Programs Evergreen Cooperative Corporation
HTC Marketing & Attraction
Neighborhood Connections
Greater Circle Living
NewBridge
Towards Employment
Local First Cleveland (new buy local database)
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Program Focus Areas
• “Self Help” – Local Procurement Database,
Supplier Attraction, Business Creation
• Careers, not Jobs – Evergreen Cooperatives – New Bridge
• Live and Work – Greater Circle Living – Evergreen Home Ownership
• Bridge the gap – Tenant Improvement Fund – ECDI – microlending – NDC - CDFI
Strategies • Anchor Leverage • 3rd Party Leadership • Common goals • Start with a “pilot” • Stacked costs • Adapt to changing needs • Stacked Roles
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Focus Area: “Self Help” “We believe in what we call self-help, meaning if we are spending
money, we should be spending more locally.” Mayor Frank Jackson
Anchor Institutions spend over $3 Billion/year on goods and services
"You need to move into the city, or we will find somebody who will." Steve Standley, Chief Administrative Officer, University Hospitals
Programs: Local Procurement Database, Supplier Attraction, Business Creation
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Business Creation Pipeline of home-grown companies that have their full life cycle in the Health Tech Corridor Spin-off idea from Anchor Incubator Space Post-incubator space Example:
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Study by Angelou Economics identified a lack of tenant-ready space. Cited a solution as crucial to keep young, growing companies in the area. •Banks have preleasing requirements - won’t fund spec space •Tech companies are fast growing they cannot commit to prelease – they need space immediately •These companies are not credit worthy •Construction costs>Rents Solutions – tenant improvement fund, Public subsidies for core & shell
Business Creation: Challenges
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EVERGREEN PRINCIPLES Co-ownership by co-op workers and other important
“stakeholders” Triple bottom line: community, environment, profit Great majority of our workforce hired from GUC
neighborhoods Linked to the supply chain of area anchor institutions Family supporting living wage & no-cost health care benefits Distribution of earnings into capital accounts (wealth
building) Career ladders for workers Corporate culture of ownership, participation, transparency
and accountability Individual co-ops are part of a larger structure that ties them
together into a coordinated and integrated network (ECC)
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Strategies: Stacked Roles
The Funders The City of Cleveland The Cleveland Foundation Living Cities The Anchors Cuyahoga County
Community Engagement The CDCs (MidTown Cleveland, Inc., Fairfax,
University Circle Inc.) Neighborhood Progress Inc. Neighborhood Connections The Neighborhood Voice – Newspaper The Evergreen Cooperatives
The Anchors
Capital Attraction/Lending/Technical Assistance Jumpstart BioEnterprise Economic and Community Development Institute National Development Council
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Stacked Capital • Multiple groups with resources
– The City (HUD 108, other loans and grants) – Cleveland Foundation – very well capitalized Foundation
(top 5 in country) – Living Cities - $14.75 million – Anchor partners – purchasing power + large capital
investments Everybody contribute to each initiative – smaller investments
for each organization Everybody gets credit for successes Promotes universal buy-in Example – The Evergreen Cooperatives
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Evergreeen Funding Stack Source Use of Funding Total Funding
Contributed Evergreen Initiative* Evergreen Cooperative Development
Fund** The Cleveland Foundation $560,000 $3,000,000 $3,560,000 Living Cities (Year 1) $125,000 $150,000 $275,000 Case Western Reserve University $250,000 $250,000 Cleveland Clinic $250,000 $250,000 University Hospitals $250,000 $250,000 Higley Fund $50,000 $50,000 Kelvin and Eleanor Smith Foundation $1,000,000
$1,000,000
Minigowin Foundation $900,000 $900,000 Nathan Cummings Foundation $375,000 $375,000 Rockefeller Foundation $650,000 $650,000 Surdna Foundation $300,000 $300,000 Total $2,010,000 $5,850,000 $7,860,000
*The City of Cleveland has also provided $12.35 Million in loans and grants to the Evergreen businesses.
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Strategy – 3rd Party Leadership
• Partnership with national Living Cities legitimizes local efforts
• The Cleveland Foundation can act as the great convener Significance: Focus of Resources – Cleveland Wards Bringing everybody (including competitors) to the
table
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City of Cleveland Ward Map
**$65.7 million investment by the City into the HTC Since 2008
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Outlook Positive • Investment in the Health Tech Corridor of $365,554,255 • Over 2 million square feet of space built or renovated • 2000 Jobs Retained • Over 400 jobs created to date • 7.6% Vacancy Rate in MidTown (Suburban Competitors
between 10% and 13%) • Over 400,000 square feet scheduled to open in 2013 • Over 80 high quality careers for Evergreen Employees • Over 100 people assisted through Greater Circle Living • Over 60 students in New Bridge – 21 placements so far
(some are still in school or have turned down offers)