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Anchor Collaboration Models for Collective Impact 2014 UEDA Annual Summit September 30, 2014 Kim Zeuli, Senior Vice President and Director of Research Initiative for a Competitive Inner City (ICIC)

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ICIC
•ICIC is a non-profit research and strategy organization and the leading authority on U.S. inner city economies and the businesses that thrive there. Founded in 1994 by Harvard Business School Professor Michael Porter, ICIC offers a market-based approach to inner city revitalization.

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Anchors Are a Key Driver for Inner City Growth
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•Improve the local business environment
1. Pursue an anchor institution strategy to capture shared value opportunities
2. Invest in the local business environment (e.g., infrastructure, workforce)
•Implement a cluster-based growth strategy
3. Strengthen existing and emerging clusters
•Support company growth and upgrading
4. Increase recognition, networking and contracting opportunities for inner city companies
5. Connect companies to growth capital
6. Capacity building: leadership and management education for companies

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A Call to Action for Universities in 2002
•ICIC published Leveraging Colleges and Universities for Urban Economic Revitalization in 2002.
•The number of anchors that intentionally drive social and economic growth in their communities has grown significantly since then.
•The University of Pennsylvania was an early leader.
•The Coalition of Urban Serving Universities, established in 2005, has 41 public urban research universities as members.
•The Anchor Institution Task Force, established in 1992, has 237 participating institutions, including many universities.
•Drexel University’s ‘Strategic Spend, Local Impact’ initiative is a good example of a new strategy.
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Anchor Institution Strategic Framework
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Current Focus – Measuring Impact
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Successful real estate development projects shaped by community input are essential for organizational growth and competitiveness.
Employee attraction and retention help anchors remain competitive by capturing and retaining “top talent”.
Increased demand for goods and services translates into increased student numbers.
Improved and expanded supplier networks can increase an anchor’s operational efficiency and innovation.
Anchor ROI

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A New Call to Action: Creating an Anchored Local Economy
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• Transforming inner cities requires robust, long-term efforts:
• Individual anchor initiatives are a function of leadership interest, which can change with leaders, interests over time, and budgets
• Individual anchors focus on their backyard, limiting impact
• Individual anchors have limited resources
• Individual anchor interests may not align with real needs of inner city
• Politics
• Anchors working together can achieve a greater impact than any single institution
• Characteristics of an Anchored Local Economy:
• Area of impact is defined based on a city’s economic development priorities
• A broad, diverse set of organizations that represent change agents: anchors, nonprofits, city leaders, foundations, financial institutions, small business organizations
• Comprehensive goals over a long period

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Greater University Circle Initiative Cleveland, OH
•Rather than centralizing administration and vision within a single organization, GUCI convenes representatives of multiple University Circle institutions . Cleveland Foundation is the lead partner of GUCI, and the primary oversight mechanism is the Greater University Circle Leadership Group of 11 organizations. Project funding comes from grants and funding from participating institutions. GUCI has over 50 funders and partners.
GUCI Leadership Group
BioEnterprise
Case Western Reserve University
City of Cleveland
Cleveland Clinic
Cleveland Foundation
Greater Cleveland Regional Transit Authority
Kelvin and Eleanor Smith Foundation
The Kent H. Smith Charitable Trust
Neighborhood Progress Inc.
University Circle Inc.
University Hospitals
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•Cleveland Foundation initiated a partnership with leading Cleveland organizations in 2005 to leverage “the economic strength of the area’s large institutions to directly benefit the lives of residents and transform the neighborhoods in which they live.”

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Greater University Circle Initiative - Cleveland, OH
•The initiative focuses on economic inclusion, transit-oriented development, housing, education, and enhancing safety and security in neighborhoods
•Economic inclusion initiatives include: procurement strategy to purchase products and services from local businesses; Evergreen cooperatives; job training and preferred access to jobs for qualified local residents
•Case Western Reserve University (CWRU) is the lead on the Uptown project, a mixed-use development and TOD project adjacent to its campus
•CWRU and the other anchors first to be part of GUCI joined the effort because they wanted to work collaboratively rather than in insolation to improve the navigability and attractiveness of University Circle
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Wellspring Collaborative Springfield, MA
Develop an actionable anchor strategy that will positively impact Newark’s economy by growing local businesses and local jobs.
•Started in 2009 by 19 organizations “to create a network of worker-owned, cooperative businesses that will provide good jobs, create wealth, and build community in Springfield neighborhoods.”
•Wellspring Collaborative is funded by grants and co-op profits. The Wellspring Cooperative Corporation is its governing body.
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Lead Organizations and Anchor Institutions
Center for Popular Economics
Center for Public Policy and Administration at the University of Massachusetts
Partners for a Healthier Community, Inc.
Baystate Health
Sisters of Providence Health System
Mass Mutual
University of Massachusetts Amherst
Western New England University
Springfield Technical Community College
Massachusetts Higher Education Consortium

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Wellspring Collaborative – Springfield, MA
•Springfield’s anchors purchase over $1.5 billion, but <10% is purchased locally and even less in low-income neighborhoods.
•U Mass Center for Public Policy and Admin was one of the early leaders in the collaboration.
•The first worker cooperative, the Wellspring Upholstery Cooperative, was launched in 2013. In 2014, Wellspring will begin to build its second business, the Wellspring Greenhouse Cooperative.
•The universities buy from the upholstery co-op and have committed to buy from the greenhouse.
•Profits will help to seed and grow the network.
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Midtown Detroit Detroit, MI
Develop an actionable anchor strategy that will positively impact Newark’s economy by growing local businesses and local jobs.
•Founded in 2011
•An independent nonprofit planning and development organization funded by 46 entities, including anchors (2 academic institutions), foundations, and government agencies. It has a staff of 12.
•Works on more than 30 initiatives that “recognize the importance of Midtown’s revitalization and its positive effect on the community,” including anchor projects around local living and local purchasing.
Anchor Institutions and Major Funders
Henry Ford Health System
Wayne State University
Detroit Medical Center
College for Creative Studies
City of Detroit - Department of Public Works
Detroit Development Fund
Ford Foundation
Hudson-Webber Foundation
Invest Detroit
Kresge Foundation
Living Cities
Michigan Department of Transportation
Michigan Economic Development Corporation (CRP)
Michigan State Housing Development Authority
NCB Capital Impact
New Economy Initiative for Southeast Michigan
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Midtown Detroit - Detroit, MI
Develop an actionable anchor strategy that will positively impact Newark’s economy by growing local businesses and local jobs.
Live Midtown
•Launched in January 2011, Live Midtown is designed to attract employees from three anchor institutions, including WSU, into becoming residents in the area where they work through financial incentives for buyers and renters. It was developed in collaboration with the anchor institutions with initial funding of $1.2 million from partners.
•Over 1,456 employees have been approved for the program.
Buy Detroit
•The anchor institutions have begun to purchase various products and services from a number of local businesses in the areas of food, waste management and recycling, and facilities maintenance.
•Three anchors, including WSU, hosted a trade fair in May 2014 for businesses to meet with the anchors to discuss the specifics and opportunities of the initiative.
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New Anchor Initiatives
Chicago Anchors for a Strong Economy (CASE) - Chicago, IL
Baltimore City Anchor Plan - Baltimore, MD
Economic Opportunity Strategy – New Orleans, LA
•The City and 8 anchors (including 7 universities) committed to the Baltimore City Anchor Plan in June 2014. The Plan is an initiative of the City of Baltimore.
•Goals include public safety, quality of life in Baltimore, and business growth.
•Each anchor, with City agencies, has developed its own anchor plan for initiatives and collaboration
•Launched in March 2014 by World Business Chicago, a nonprofit economic development org, it has 11 member anchors, including 3 universities: Illinois Institute of Technology, The University of Chicago, and University of Illinois at Chicago.
•Focus is on procurement opportunities. CASE connects anchors to local, competitive firms.
•It is run by World Business Chicago, and is funded by contributions from member anchor institutions and grants.
•The City announced the Economic Opportunity Strategy in Sep 2014. It involves 8 anchors, including 2 universities: Tulane University and Xavier University.
•Goal is to “connect disadvantaged job seekers and businesses to new opportunities.”
•A workforce intermediary will be established to connect employees/anchors and provide job training.
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Best Practices for Anchor Collaboration
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•Broad, diverse set of organizations including public sector
•Strong leadership at C-Suite level
•Independent organization to manage initiative
•Alignment around one priority
•Specific Goals and Metrics
•Patience

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ICIC’S MISSION IS TO DRIVE ECONOMIC PROSPERITY IN AMERICA’S INNER CITIES THROUGH PRIVATE SECTOR INVESTMENT TO CREATE JOBS, INCOME, AND WEALTH FOR LOCAL RESIDENTS. WWW.ICIC.ORG