Embed Size (px)
Citation preview
G5: Transformative Development: An Integrated Place-Based Economic
Development Strategy
© 2
013
Mas
sDev
elop
men
t
1
© 2
013
Mas
sDev
elop
men
t
2
Who We AreMassDevelopment supports economic growth, job creation, development, and investment across the Commonwealth’s diverse economic sectors.
We operate through regional offices across the state.
North: Lawrence
Who We HelpA wide range of customers, including private, public (cities and towns, redevelopment/housing authorities), and nonprofit (healthcare, educational, cultural, and human-service) entities across the Commonwealth. What We DoFocus on key sectors of the Commonwealth’s economy and on communities throughout the Commonwealth
requiring support to achieve their potential through financing, real estate development and community development programs. Through these programs, we provide access to capital, support cities and towns in planning for and executing on redevelopment strategies, and provide the technical expertise necessary for successful redevelopment.
MassDevelopment – Overview
North: Lawrence
West: Springfield
Central: Worcester
South: Fall River Boston
© 2
013
Mas
sDev
elop
men
t
3
Key Programs for Municipalities
FY 2014—Agency Results
Our Work and Results
Job Creation: Over 15,000 new
permanent/construction jobs created
Housing Development: Over 1,600 units
built/substantially renovated
Financing: Nearly $3.0B in total support to
businesses and non-profits that employ over
98,000 workers.
Regional Support: Over 100 cities & towns
supported to catalyze redevelopment
Brownfields FundCultural Facilities
Lending, Bonds, Infrastructure, Sector Specific
Support
Transformative Development
InitiativeReal Estate Planning &
Development Services
Session Agenda
1. Gateway City Overview – Ben Forman, MassInc
2. TDI Program – Anne Haynes, MassDevelopment
3. City Perspective – Brian Connors, Springfield
4. Fellows Perspective – Noah Koretz, Haverhill
5. Discussion
© 2
013
Mas
sDev
elop
men
t
4
SNEAPASEPTEMBER 25, 2015MassINC
Gateway City Revitalization:Firing Up the Engines of Regional Growth
6
Why “Gateway”?These cities are gateways to:
economic activity in their regions
the middle class for generations of families climbing the economic ladder
educational, cultural, and other major institutions
7
30% Massachusetts residents living in
poverty
45% welfare caseloads
50% incarcerated youth
75% children attending a failing school
15% Massachusetts residents
Disadvantage is concentrated in the state’s Gateway Cities
Gateway Cities have untapped assets29 Hospitals
21 Colleges and universities11 CSX terminals6 Commuter rail stations4 Amtrak stations3 National parks1005 Historic buildings297 Arts and cultural organizations 8
Gateway Cities have new market-driven opportunities
urban fabric housing production
labor supply
9
Cost per unit Net rental income$0
$50
$100
$150
$200
$250
$300
$266
$88
TransformativeRedevelopment
Policy
Realizing these opportunities will require programs to correct market-failure
TransformativeRedevelopment
Policy
1. Financial tools to spur and support transformative projects
2. Complementary policies to diffuse impact and accelerate change
3. Governance structure to leverage capacity and coordinate investment
Nearly all Gateway City students attend high poverty schools
Percent of students in schools where more than 40% of students qualify for free lunch, 2013-2014
Source: MassINC’s analysis of DESE data 12
Bosto
n
Fitchb
urg
Holyok
e
Lawren
ceLow
ell
Sprin
gfield
Brockt
on
New Be
dford
Worche
ster
0%1000%2000%3000%4000%5000%6000%7000%8000%9000%
10000%
Gateway City students are not getting the post-secondary training today’s jobs require
Source: MassINC’s analysis of DESE data
80%
59%
39%
100%
59%
38%
19%
0%
20%
40%
60%
80%
100%
High school class of2006
Graduate in 4 yearsEnroll immediately In college
Obtain a college degreewithin 6 years
Rest of Massachusetts
Gateway Cities
13
65%
34% 23%
Boston
Many regions will see a real decline in college-educated workers
Cape Cod Pioneer Valley Berkshires Southeast Central Greater Boston-50%
-40%
-30%
-20%
-10%
0%
10%
20%
-41%
-27%
-9%
1%
9% 10%
Source: MassINC/UMass Donahue Institute
Change in number of working-age residents with college degree, 2010 - 2030
14
Fall
Rive
r
Lawr
ence
Sprin
gfiel
d
Holy
oke
New
Bed-
ford
Fitc
hbur
g
Chel
sea
Ever
ett0%
5%
10%
15%
20%
25% 23%
19% 19% 18% 17%14%
10%7%
Source: Massachusetts Taxpayer’s Foundation
Retiree health care costs as a percentage of tax levy, FY 2013
Gateway Cities are struggling with municipal obligations to retirees
15
Unfunded pension liabilities could intensify this challenge
Source: 2013 PERAC Annual Report
Share of municipal pension funded, 2013
16
State Average = 69%
Bost
on
Sprin
gfiel
d
Lawr
ence
Fall
Rive
r
Fitc
hbur
g
New
Bed.
..
Pitts
field
Have
rhill
Holy
oke
Lowe
ll
Wor
cest
er
Broc
kton
0
10
20
30
40
50
60
70
80
38%
62%
Residential Commercial
62%
38%
Boston Worcester
Tax levy by class, FY 14
Gateway Cities rely heavily on residential valuation
17
Gateway CitiesTransformativeDevelopmentInitiative[TDI]September 2015 Progress Update
19
[TDI] An integrated place-based approach designed to implement locally initiated, strategic, catalytic, and sustainable revitalization activities.
© 2
014
Mas
sDev
elop
men
t
20
BACKGROUND
MassDevelopment --ongoing work with Commonwealth Cities & Towns
2012 Federal Reserve Bank: Resurgent Cities
2013 MassInc: Transformative Redevelopment
2013 FRB: Working Cities Challenge
2014 The Commonwealth enacts the Transformative Development Fund
© 2
014
Mas
sDev
elop
men
t
21
[TDI] COMPLETE TOOLKIT
Transformative Development Fund
MassDevelopment Existing Finance Programs
Partner Programs and Investments
Community Engagement, Sweat Equity, Private Investments
© 2
014
Mas
sDev
elop
men
t
22
PlaceDistrictA contiguous geographic neighborhood, characterized by a primary land use, and defined by a walkable, dense, urban, mixed-use environment.
Within an approximate 5-minute walking radius, the district should be framed by and inclusive of recent public/private investments.
© 2
014
Mas
sDev
elop
men
t
23
Local Collaborative Partnerships A Local Collaborative Partnership is the lead in directing the work in a [TDI] District. This is a partnership with at least three sectors: city, private and non-profit/institution. The [TDI] District Partnership will drive the long-term engagement and vision for the district.
Capacity
© 2
014
Mas
sDev
elop
men
t
24
Community Engagement with District Stakeholders, Businesses, Landowners& Champions[TDI] will catalyze increased engagement in building the district vision, strengthening new and improved relationships, and leading to long-term sustainable civic infrastructure and a collective identity.
Community
© 2
014
Mas
sDev
elop
men
t
25
© 2
014
Mas
sDev
elop
men
t
[TDI] Focused Approach—Tool Box
© 2
013
Mas
sDev
elop
men
t
26
Cumulative Impact: Residential District
© 2
014
Mas
sDev
elop
men
t
27
Cumulative Impact: Industrial District
© 2
014
Mas
sDev
elop
men
t
28
[TDI] INITIATIVEBusiness Growth
Equity Investments
Technical Assistance
MassDevelopment RE Services, ULI TAP,
TDI District Market Strategy Plan
TDI Fellows
Capacity Programs
TDI Investments Strategic and TDI District focused
Controlling Interest Master Leases, Site Acquisitions &
Assembly, Joint Venture Development
MassDevelopment: Analysis & Feasibility
Predevelopment
MassDevelopment Business Financing
Pilot programs to support businesses
TDI Cowork Collaborative Workspaces
New
Tool
s: Tr
ansf
orm
ativ
e De
velo
pmen
t Fun
dEx
istin
g To
ols
TDI Places
Partner Agency Programs Partner Investments
Partner Grants, Loans, MicroFinance ©
201
4 M
assD
evel
opm
ent
29
[TDI] DISTRICTS Pilot Year
All Gateway Cities
TDI Cowork
10 + 2 Districts in Development
TDI District
Feasibility Plans
(ULI TAP & Community
Development & Real Estate
Services)
3 TDI Fellows Districts
3 Economic Development Implementation Strategies
© 2
014
Mas
sDev
elop
men
t
[TDI] Call For Districts Response
© 2
013
Mas
sDev
elop
men
t
30
Districts Aggregate Total
Acres Population Businesses Workers Valuation
1,500 61,000 2,500 35,000 $1.6B
[TDI] DISTRICTS Submitted[TDI] Call for Districts
18 5 2
[TDI] Transformative Development InitiativeStatus
© 2
013
Mas
sDev
elop
men
t
31
TDI Overall• $13m MassDevelopment FY 2016-8, $1m Commonwealth FY 16• Discussions with Agency Partners with related areas/focii
TDI Districts in Development—10+2• All Districts finalizing Technical Assistance Scope• Monthly District check-ins and reporting instituted
TDI Fellows• Fellows Cohort 1 detailed workplan & Cohort project underway• Gearing up for Cohort 2
TDI Business Growth• Cowork: $988,000 Awarded, $80,000 Pending Award, Program Evaluation• MassGrowth Capital MicroLoans
TDI Places• $71,400 Awarded, 4 pending applications, activities happening• 1-on-1 Technical Assistance improving projects
TDI Investments• Site Visit Pipeline of projects being reviewed for existing and new financing
tools, including Equity Investments as they meet program guidelines.• First investments in FY2016 2Q
[TDI] Districts in Development
© 2
013
Mas
sDev
elop
men
t
32
Designated by MassDevelopment Review Committee on 12/5/14, Approved by MassDevelopment Board on 12/10/14
• Enhanced MDFA Staff Support• Customized Technical Assistance• Eligibility for first Equity Investments• Fellows (3)• Pilot Programs
Each District Gets:
© 2
013
Mas
sDev
elop
men
t
33
[TDI] Transformative Development InitiativeTDI Places & TDI Co-Work
Cowork : Seed
Cowork : Fit Out
Places
**Small grants program has extended TDI reach beyond the 10 Districts in Development.
34
© 2
014
Mas
sDev
elop
men
t
Site Visit ThemesNeed for CapacityImplementation Help: Real Estate Development/ProForma development, Historic Building Rehabilitation, and business attraction/retention
Planning & Market Building AssistanceFinancing Help and capacity/expertise to recruit and facilitate additional institutional, retail/restaurant, residential uses/occupants.
Investment Opportunities ID’d:• Primarily Master Lease & Site/Bldg Acquisition opportunities—Pipeline in
Development. • Most are ‘historic’ buildings, Not all Historic Districts• Building code upgrade financing opportunities.• Smaller scale commercial/historic buildings that don’t ‘fit’ with larger developers
[TDI] Takeaways & Forward Themes
[TDI] Transformative Development InitiativePlanning & Market Assistance
© 2
013
Mas
sDev
elop
men
t
35
Brockton
Haverhill
Holyoke
Lynn
New Bedford
Peabody
Pittsfield
Revere
Springfield
Worcester
Malden & Everett
MOA Signed(Green indicates executed MOA)
Initial TA ScopeDowntown Plan w\ Urban renewal & DIF
District Revitalization Plan
Market Strategy., Reuse,
Test Fits 2.0
Urban Design / Traffic & wayfindi
ng
Active use
strategy
Implementation Plan & Flood
Mitigation
District
Revitalization Plan
ULI TAP,
Active use
strategy
Market Implementation Strateg
y
Active use
strategy / Test Fits
1.0
ULI National Advisory
Panel
Detailed Scope (Darker indicates progress)
Planning/Urban Design
Market Implementation Strategy
[TDI] Transformative Development InitiativeCapacity: Fellows Program
© 2
013
Mas
sDev
elop
men
t
36
Role/Structure• 3- Year terms• Feet on the ground-IMPLEMENTATION• Community Organizer for Economic Development• Extensions of MassDevelopment• Workplan set with TDI Partnership & MassDevelopment, Formalized
into MOA• Cohort Building
• Visits to each district, related cities• Weekly calls—independent & with director• Developing ‘Cohort Pilot Project’: Storefront Activation
37
© 2
014
Mas
sDev
elop
men
t
[TDI] Transformative Development InitiativeInvestment Opportunities
[TDI] Transformative Development InitiativeDistrict Status
© 2
013
Mas
sDev
elop
men
t
38
Haverhill Merrimack Street Transformative District
TDI Partnership:City, Greater Haverhill Foundation, Planning Office of Urban AffairsTA Scope: District Revitalization PlanUtile, Pam McKinney , Nelson Nygard• Partnership reviewing final scope• Developing comprehensive project schedule• Kick-off planning meeting in September• Next: Urban design and traffic/parking
management with test-fits and development scenarios on underutilized parcels
5%
[TDI] Transformative Development InitiativeDistrict Status
© 2
013
Mas
sDev
elop
men
t
39
SpringfieldSpringfield Innovation District
TDI Partnership:City, Springfield BID, Develop Springfield, MassMutual
TA Scope: Market & Active Use Implementation StrategyNinigret Partners, Nelson Nygard & Utile• Scope finalized by partnership and scheduling for
the fall has begun• September: Initial business and property owner
outreach, preliminary market analysis• Identification of key properties for development
advisory
5%
© 2
013
Mas
sDev
elop
men
t
40
[TDI] Program Website
– http://www.massdevelopment.com/what-we-offer/key-initiatives/gateway-cities/tdi-districts-development/
November 23, 2012
Springfield [TDI] District
Springfield Innovation District
Innovation Center
1550 Main
State Office Bldg.Mattoon St. Hist. Dist.
District Partnership
District AssetsA wealth of Historic Buildings & Sites
Union StationIntermodal transit center
MGM SpringfieldMixed Use Entertainment complex
MGM SpringfieldMixed Use Entertainment complex
Driving Development in the District
Public improvements and catalytic projects provide physical linkages between the two areas to create a cascading effect.
© 2
013
Mas
sDev
elop
men
t
49
The Existing Street System inhibits Pedestrian & Bicycle activity and limits Traffic Circulation
Development and public improvements around Stearns Square, Apremont Triangle, and Bridge Street will form the backbone for the revitalization of the district
Public Improvements = Priority Connections
Coordinated Public Improvements
Need to show the “before” first
Apremont Triangle
Coordinated Public Improvements
Apremont Triangle
Coordinated Public Improvements
Apremont Triangle (Existing Condition)
Coordinated Public Improvements
Apremont Triangle (After)
Dwight StreetWorthingto
n Stree
t
Dwight Street Two-way Conversion Transforming a pedestrian barrier into a Complete Street
Dwight Street – After
Find a catalytic project to help anchor the Innovation District and give a “face” to it
Innovation comes in many forms – the Innovation District
should be about creating a place for innovation and
entrepreneurship to thrive
Supporting the Innovation EconomyIdentifying a Catalytic Project
Exterior of Willys-Overland Building
Catalytic ProjectWillys-Overland Building
Interior of Willys-Overland Building
Springfield Innovation Center Site
Innovation Café & Presentation Space
Create a vibrant, mixed-use transit-oriented urban lifestyle experience that supports development of the Innovation Economy and strengthens Downtown Springfield’s role as the region’s center of Business, Arts and Culture
• Re-position the Entertainment District as a Dining District
• Place Making• Focus Market-Rate Housing at Key Nodes• Build “Base Layer” of Public Improvements• Rehabilitate Historic Assets• Foster the Innovation Economy
The Fellow Experience
© 2
013
Mas
sDev
elop
men
t
62
Role/Structure• 3- Year terms• Feet on the ground-
IMPLEMENTATION• Community Organizer for Economic
Development• Extensions of MassDevelopment• Workplan set with TDI Partnership &
MassDevelopment, Formalized into MOA
• Cohort BuildingVisits to each district, related citiesWeekly calls—independent & with directorDeveloping ‘Cohort Pilot Project’: Storefront Activation
Haverhill: Orientation
© 2
013
Mas
sDev
elop
men
t
63
Merrimack Street District
© 2
013
Mas
sDev
elop
men
t
64
Merrimack Street District
© 2
013
Mas
sDev
elop
men
t
65
Merrimack Street District
© 2
013
Mas
sDev
elop
men
t
66
Merrimack Street District
© 2
013
Mas
sDev
elop
men
t
67
Merrimack Street District
© 2
013
Mas
sDev
elop
men
t
68
The Partnership
© 2
013
Mas
sDev
elop
men
t
69
Core Partners
• City of Haverhill• Greater Haverhill
Foundation• Planning Office for Urban
Affairs
Extended Partners• Merrimack Valley Planning Commission• Northern Essex Community College• Greater Haverhill Chamber of
Commerce• Creative Haverhill• Pentucket Bank• Haverhill Bank
Community Engagement
© 2
013
Mas
sDev
elop
men
t
70
Whole Partnership• Regular meetings with core
partners both individually and as group
• Streamlining and strategizing with other related initiatives in city – MassTech Collaborative Grant, city officials and planners, partner developments
• Building “people infrastructure’ – expanding partnership to include important community champions not part of original application
As a Fellow• Extensive networking to meet residents
and businesses to understand needs, opportunities, and potential synergies
• Liaison connecting people with resources and technical assistance on the ground level
• Outreach to developers and potential entrepreneurs from outside City
• Managing public outreach for MassDevelopment urban design study – charrettes, public meetings, etc.
Being a Fellow
© 2
013
Mas
sDev
elop
men
t
71
Key Observations• No two days are the same• Different skill sets most important in
different districts, but need to be comfortable in a variety of substantive areas
• Most important aspect of job is to be ombudsperson – help advance TDI agenda in a wide variety of settings with a wide variety of people
• Patience to build momentum• Enables MassDevelopment to be
immediately responsive to activity in district- regular communication is key both on the local and MassDevelopment level- more time simply communicating than in any previous job I’ve held
Being a Fellow
© 2
013
Mas
sDev
elop
men
t
72
Key Observations (cont.)• Critical to continually grow the
partnership by networking and making yourself available – look for important voices that haven’t traditionally had a place at the table
• Idea of an economic development agenda that is urban and physical in nature is often new to people
• Tremendous value of a fresh, impartial voice
• Capacity need not come from independent, third-party, but a significant help to have someone who can work impartially across political and personal divides- a lot of times that’s what’s needed to break the logjam in cities
Contact InformationTania Hartford, [email protected]
Brian ConnorsCity of [email protected]
Anne Haynes, [email protected]
Noah KoretzMassDevelopment/Haverhill [email protected]
© 2
013
Mas
sDev
elop
men
t
73
