I recently had the opportunity to go back to the Fort Wayne region of Indiana to reconnect with the Northeast Indiana Regional Partnership, who led the implementation of the Road to One Million plan. When we helped them create that plan, there was little precedent for the private sector to support investments in arts and culture, main streets, and outdoor recreation. But three years later, it was amazing to see the impact of $255 million invested in exactly those types of projects, with nearly 70% coming from private investment.
Since that experience we are always on the lookout for other examples of the private sector and economic development community collaborating and investing to create great places to live, especially at the regional level. This year’s American Planning Association conference highlighted a couple of great examples.
The Charleston Resilience Network is a collaboration of public, private, and non-profit organizations seeking to enhance the resilience of our region and communities. Recognizing the need to connect the myriad of puzzle pieces related to climate adaptation and mitigation, the Network was developed to foster a unified regional strategy and provide a forum to share science-based information, educate stakeholders, and enhance long-term planning decisions that result in resilience. Activities range from a bi-monthly happy hour to collaborating to pursue federal funding opportunities. The Charleston Metro Chamber of Commerce is an organizing member of the Network and many private sector companies are participants. Given the stark reality that hurricanes Harvey and Irma wiped out an estimated $200 billion in economic value according to Moody’s, it is critical that the private sector is a part of the conversation around resilience.
The Mid America Regional Council’s Creating Sustainable Places consortium is taking a strategic approach to utilizing federal transportation funding to further regional sustainable development goals. Planning and implementation funding is competitively let throughout the region to transportation projects that promote housing diversity, density, healthy lifestyles, historic and cultural preservation, and energy efficiency. The Greater Kansas City Chamber of Commerce is a partner in the consortium, and economic development agencies and private sector partners (such as architecture firms and the hospital) are part of the policy committee, which reviews applications. In order to compete for young, educated talent, it is critical that the private sector support planning that creates these types of livable communities.
Do you know of a great example of private sector participation in similar collaborations? Let’s talk!
Earlier this month, Fourth Economy came together with practitioners from various sectors and parts of the country to help St. Louis tackle the issue of economic inequity. We were convened by 100 Resilient Cities – Pioneered by The Rockefeller Foundation, because they have seen so many of the cities in their network identify economic inequity as a key stress. Fourth Economy is a platform partner of the 100 Resilient Cities network, creating tactical recommendations for the planning and implementation of resilience efforts. After two days of intense collaboration, our group of community leaders, Chief Resilience Officers, economic development experts, and other thought leaders developed seven discrete project ideas that St. Louis could implement to impact economic inequity.
Some of our ideas really focused on the basics. One clear take-away is that before we can implement new, innovative solutions, we need to ensure that we are investing in the basics.
- Talk to Each Other – First thing’s first…Developers, city agencies, and community organizations need a forum to discuss how all partners enhance the tools, processes, and partnerships to implement equitable economic development.
- Equitable Economic Development Strategy – St. Louis is about to embark on creating an economic development strategy; making it explicitly about creating an equitable economy will be key.
- Resilient CDCs – Like many of our cities, some of our neighborhoods have strong community-based organizing and development capacity, while others are lacking in investment, or quality investment, in part due to this lack of capacity. We recommended an organization that could promote sharing of resources, developing professional capacity, promoting collaboration, and developing a central pool of funding.
One of those other important basics is data. We all know that what isn’t measured, doesn’t count. So 100 Resilient Cities is working with the CUNY Center for State and Local Governance to help cities in the network develop a set of equity indicators. The equity indicators that St. Louis will be using to measure economic resilience and economic equity include:
- Are residents able to fully participate in the economy?
- Educational attainment: Enrollment in college or vocational training
- Education quality: Dropout rate
- Court reform: Youth adult convictions for nonviolent, nontraffic crimes
- Court reform: Legal representation
- Civic engagement: Digital equity
- Are residents able to access goods and services?
- Health: Pedestrian deaths
- Health: Access to healthy food
- Health: Access to social services
- Are residents able to invest in their own community?
- Financial empowerment: Median credit scores
- Financial empowerment: Home loan denial rates
- Financial empowerment: Business ownership rates
With these indicators in mind, our group developed ideas around both Access and Investment.
Access to Services and Jobs
- Hubs of Growth – In cities that have experienced the degree of population loss that St. Louis has (and that’s a lot of us!), we must foster the development and growth of neighborhood hubs of economic and community activity that will drive growth in their surrounding areas. If connected by transit, these hubs can enhance safe access to healthy food and social services, but also create the density needed to support the growth of local businesses.
- Mobilize – Another common challenge is the mismatch both between where people live and the skills they have, and where and what jobs are available. This idea brings employers and training providers to the neighborhoods to better understand the needs and opportunities of residents, and target services accordingly. Furthermore, micro transit would be used to connect residents to jobs.
Investing in Small Business
- Scale up STL – This program would increase access to capital and supportive services for small businesses that want to scale in targeted neighborhoods. This could include discounted land/space, collateral back stops, regulatory relief, and right-seed lending products.
- Small Business Portal – St. Louis is making investments in its open data portal. But once they have all of their data available, how should it be used? This proposal is to engage small businesses to understand how the data can best be utilized to support their growth.
- Women of STL – St. Louis could use a grass-roots organization run by women that strengthens the social fabric and supports the creation and growth of women-owned businesses. This organization would provide workshops, business incubation to address how to start a business, how to access credit, and technical training, e.g. use of internet resources.
As the City of St. Louis develops its resilience strategy, these ideas will be further developed. If you know of best practices in any of these areas, send them our way so we can help St. Louis create equitable economic development faster!
What do you imagine when you hear the words “comprehensive plan”? Hoards of consultants descending upon your community for years, churning out meaningless data, hosting pointless community meetings, and producing a mammoth document that goes to live on the shelf? Well, not in Gary, IN. Gary is taking a different approach to comprehensive planning, and Fourth Economy is excited to be along for the ride.
While Fourth Economy is part of a team of consultants, including Raimi + Associates, Volte Strategy, and Dynamo Metrics, we are just the behind-the-scenes support team. The folks at Gary’s Department of Planning, Redevelopment, and Zoning issued an RFQ looking for “a team of thinkers” with demonstrated “ability to provide services and creative solutions in a highly complex urban setting where social equity, economic parity, and community resiliency are foundational elements of the comprehensive planning process.” All small firms, we are providing our expertise, but not according to any set process. Rather, this will be a truly iterative process, guided by the vision and priorities established by the community.
Though the team at the City, led by the inimitable Joe Van Dyk, will be leading the process themselves, they don’t expect to be the face of it. They are pulling together a team of residents and community leaders who will develop and implement all of the engagement. This means that our role as consultants is simply to create the tools and convey the data in a way that the community can truly own.
Recently, Joe kicked off the process by inviting all of the consultants to Gary for two days of listening. We met with faith-based social justice advocates, neighborhood champions, and movers and shakers of every sort. It was truly exciting to hear the passion that everyone has for their city and to see the investments they are making in Gary’s future. We are honored to be able to play a small role in shaping that future and are certain to learn a lot along the way, which we look forward to sharing!
Fourth Economy recently completed a feasibility study for an aquaponics facility designed to provide fresh produce and fish in a food desert. Through our work with programs like Invest Health, we know that there are many communities out there interested in similar projects. If that sounds like you, here are three things to know.
Because the world of community and economic development is so broad, our team supports organizations that are addressing a myriad of challenges and opportunities: reforming vacant land policies; growing emerging industries like ed tech; coordinating workforce development systemsthe list goes on! This year, we had the opportunity to support a community trying to develop an aquaponics facility to provide fresh produce and protein in a food desert. Through our work with programs like Invest Health, we know that there are many communities out there interested in similar projects. Based on our feasibility study, here are three things you should know:
Know Your Fish
There are real limitations in a commercial aquaponics facility’s ability to operate without incurring a net loss on the fish-rearing portion of the facility. Despite the cost savings represented by the considerable water conservation benefit, at the core of this issue is a low share of fixed costs relative to variable costs, which limits opportunities for economies of scale. In other words, producers in many industries can save money at higher volumes because the fixed costs (e.g. facilities, utilities, and equipment) are high but the actual cost of producing one additional units (i.e., more fish) are low. Unfortunately, in a commercial aquaponics facility, the cost of producing one more pound of food is high. The fish, feed, growing medium, staff time, and supplies needed for growing and transporting the food all influence the cost of production. Fish need to be checked on often, pH levels need to be balanced, fish needs to stay cold on its way to market, and water needs to be drained often enough to ensure the roots can get oxygen during growth. Managing these systems requires serious expertise.
Among fish raised in commercial aquaponics facilities, tilapia are by far the most common and highest revenue-producing choice because they can be harvested more frequently and are not as sensitive to their conditions as many other fish, including catfish and bass.
Know Your Community
Of course you know this already! But it’s tough to make these projects work, and the more you can do to engage your community and partner with other organizations and initiatives, the easier it will be. Are there other underutilized commercial kitchens you can use for processing? What products are doing well at farmer’s markets, and what is in short supply? Are there community or education organizations that could provide volunteers? Who else is using an aquaponics system, and how can you complement and learn from them? These questions should be asked early in the feasibility process, and potential partners should be engaged to help ensure the success of your project.
Know Your Buyers
If you want to sell to grocery stores, schools, or other commercial or institutional buyers, there are a number of considerations. The following is true of most, but not all, buyers:
- You must be GAP (Good Agricultural Practices) certified.
- The fish must be butchered; this requires special facilities and perhaps adherence to additional codes and regulations.
- You must adhere to specific packaging and delivery requirements (for example, will you need access to refrigerated trucks?).
- You must have liability insurance.
The good thing is that there are often resources to support new producers. Food hubs, Agricultural Extension offices, and increasingly-specialized incubators (like this one!) often provide training and technical assistance.
Despite the financial and operational challenges associated with aquaponics, these systems continue to gain popularity due to their ability to transform underutilized spaces into production sites for fresh food, spurring community and economic development. Hopefully considering these variables will ensure that your aquaponics project is a success!
Last month, I attended the NeighborWorks Training Institute in Detroit, which featured a daylong symposium on inclusive growth. Inclusive growth was defined broadly as growing the economy while simultaneously decreasing income inequality. As RW Ventures put it, decreasing income inequality in and of itself is a worthy economic goal – people are assets, and poverty is expensive; therefore, investing in programs and reforms that increase access to good jobs for people with barriers to employment should be a central goal of our economic development efforts. While a major finding of the symposium was that we don’t yet have many good examples of how this can be done, there was no shortage of food for thought. Continue reading “Tax-rolls, Triple Bottom Line, and Trust: Thoughts on Inclusive Growth from Detroit”
On Tuesday, the Indiana Economic Development Corporation (IEDC) announced $126 million in state matching funds to support three regions in pursuing their visions for growth. The Regional Cities Initiative was developed based on a study of regions that have experienced transformational growth, performed last year by Fourth Economy, and is being funded by a tax amnesty program. Tuesday’s announcement was the culmination of months of planning on the part of Indiana’s regions, and Fourth Economy was fortunate enough to facilitate and advise on the strategy for two of the winning regions in those efforts – Northeast Indiana (home to Fort Wayne) and Michiana (home to South Bend). Here are a few lessons learned from our work helping multi-county, cross-sector partnerships identify and prioritize quality-of-life investments meant to attract and retain population.
Continue reading “Big Visions Get Big Dollars in Indiana”
I think that few among our readers would argue that fostering an innovative K-12 education ecosystem plays a critical role in economic development. Employers and economic development officials from any industry will tell you that the critical skills for a modern workforce begin at the K-12 level. They will also tell you that attracting and retaining their current workforce means creating a community in which employees want to live, and education is a major factor in creating livable communities. However, influencing K-12 education to ensure that it’s creating an intelligent and creative next generation workforce often feels like an overwhelming challenge given the systemic barriers. Continue reading “Education Innovation”
Across the country, communities are beginning to understand the economic value of developing trails. Though trail advocates and economic development organizations still often speak different languages, they are beginning to speak a shared language of talent attraction, tourism, and business development.
Different types of trails offer different economic opportunities. Continue reading “Increasing the Economic Impact of Trails”
Many state governments have devoted a great deal of resources over the past decade to mitigating and responding to climate change through energy and urban planning related efforts. Planners and energy experts are fluent in the language of sustainability, adaptation, resiliency, and mitigation. But ask an economic development official what climate change means to them and it’s possible that they can barely utter the word. Many in the business community have feared that climate change will simply mean more costly equipment upgrades to reduce greenhouse gas emissions. In too many communities, time is still spent debating the veracity of climate science instead of recognizing the impacts already occurring. Economic development officials have a responsibility to help businesses understand the greater implications of climate change – how they can protect themselves from the effects of climate change; how they could develop new products or services in response to climate change; and how they should prepare themselves to recover from climate-related events. Continue reading “Preparing your Local Economy for Climate Change”
I received my Master’s in Urban Planning with a focus on Community Development. I learned a lot about how to design “great places” as the American Planning Association calls them. Characteristics of a Great Neighborhood include… Continue reading “Economic Development: What I Didn’t Learn in Planning School”