The Arts Mean Business

This is a guest post by Jay H. Dick, Senior Director of State and Local Government Affairs at Americans for the Arts.

Meyerson_Symphony_Center_Dallas_1_fullsizeThe Morton H. Meyerson Symphony Center in Dallas, Texas, is a visually spectacular example of the type of anchor for economic development that can be achieved when city governments invest in arts and culture initiatives. (photo: Matt Clarkson)

If your city had a new construction company move to town, this would be good news – more jobs, more economic activity, and more tax revenues to be collected. How about if your city received funding from your state to widen a road? Again, you would probably welcome this news with open arms. Now, think about a new arts organization moving to town. Would you look at this group with the same economic lens that you used to look at the construction or transportation business?

If your answer was no, here’s why you should!

The U.S. Bureau of Economic Analysis (BEA) with the National Endowment for the Arts recently released their second annual report measuring the arts and culture sector’s contributions to U.S. gross domestic product (GDP). This year’s report found that the arts and culture sector represented 4.32 percent of the GDP – a higher percentage than tourism (2.6 percent), transportation (2.7 percent) and construction (3.4 percent) – at $698.7 billion!

(Americans for the Arts)

In other words, the arts and culture sector have a larger impact on your economy (in terms of GDP) than these other industries. The unfortunate problem is that we don’t readily recognize the economic value and impact of the arts. Luckily, more research is being done on this topic by groups such as the BEA and by organizations like mine, Americans for the Arts.

For example, did you know that, according to our Arts and Economic Prosperity IV study, the nonprofit arts are a $135 billion industry that supports over 4 million full-time equivalent jobs? Further, the nonprofit arts contribute $22 billion dollars in tax revenue, of which $6.07 billion is collected at the local level. Given that most local governments (that Americans for the Arts has studied) appropriate less than they receive in tax revenue, the arts are a wonderful investment!

Our Creative Industries: Business & Employment in the Arts reports provide a research-based approach to understanding the scope and economic importance of the arts in America. Nationally, 702,771 businesses are involved in the creation or distribution of the arts, and they directly employ 2.9 million people. This represents 3.9 percent of all U.S. businesses and 1.9 percent of all U.S. employees – demonstrating statistically that the arts are a formidable business presence and are broadly distributed across our communities. Arts businesses and the creative people they employ stimulate innovation, strengthen America’s competitiveness in the global marketplace, and play an important role in building and sustaining economic vibrancy. In addition to our national numbers, there are downloadable maps on our website of every state, federal legislative district, state legislative district, counties and some larger cities.

Cities of all sizes that, even minimally, invest in their local arts organizations can see economic benefits. For example, over 300 cities have created cultural districts to foster the economic viability of their downtown. Cultural districts are a well-recognized, labeled, mixed-use area of a city in which a high concentration of cultural facilities serves as the anchor of attraction and robust economic activity.

The Playhouse Square Center in downtown Cleveland, Ohio. (Getty Images)

According to a study by the Federal Reserve Bank of Cleveland, Ohio, the Cleveland Playhouse Square’s downtown economic impact has been impressive. For every one dollar spent in ticket sales, $2.20 is generated in additional expenditures to the local economy. In a five-year period, 79 new businesses moved downtown, and the cost of downtown office space nearly doubled.

In the late 1990s, Paducah, Ky. had a problem – an area of the city, LowerTown, was run down. Fifty percent of homes were dilapidated; 73 percent of homes were renter-occupied; and there was a 17 percent unemployment rate with 51 percent of people living in poverty. To tackle the problem, city leaders came up with a unique plan: the Artist Relocation Program. City leaders partnered with banks and other businesses and reached out nationally to artists to invite them to move to Paducah. The program would offer them a very low-interest loan if they bought a house, agreed to make improvements, worked as an artist out of their house, and lived there for at least five years.

Dixie Leather Works, located in the LowerTown arts disctrict of Paducah, Ky. (photo: Paducah Visitors Bureau)

Dixie Leather Works, located in the LowerTown Arts District of Paducah, Ky. (photo: Paducah Visitors Bureau)

Ten years later, dilapidated homes have fallen to 3 percent; the renter-occupied rate is down to 15 percent; unemployment is down to 6 percent; and the number of people living in poverty has been reduced to 4 percent. This is all a direct result of the Artist Relocation Program.

These are just a few examples of how the arts and culture can help your city’s economy. The great thing about the arts is they are already in your city. The arts, unlike many industries, are not going to relocate overseas or to a different city. The arts are committed to serving your city’s residents and improving the quality of life. But what they do need are community leaders to recognize them as an industry worthy of both private and public sector support. So, please contact your local arts groups. Get to know them, understand their programming, and how they work to improve your city. And if you have any questions, feel free to contact me directly – I would love to help.

Jay H. DickAbout the Author: Jay H. Dick is the Senior Director of State and Local Government Affairs at Americans for the Arts, an organization which serves, advances and leads diverse networks of organizations and individuals who cultivate, promote, sustain and support the arts in America. Americans for the Arts has partnered with NLC for almost 20 years on a variety of programs.

Closing the Digital Divide in America

This is a guest post by David L. Cohen, Executive Vice President of Comcast Corporation.

Chance the Rapper (left) and Comcast Executive Vice President David L. Cohen present laptops to students from Chicago’s Alcott College Prep at a recent event to announce new Internet Essentials milestones. (Comcast)

According to the U.S. Census Bureau, only 52 percent of low-income households in the United States subscribe to broadband at home. What’s more, for certain low-income groups, broadband adoption still falls more than 20 percentage points behind the general population, according to the National Telecommunications and Information Administration (NTIA).

Today, access to the Internet at home is essential for all family members to keep up in this digital and highly competitive world— so much so that it’s hard to believe there are still so many families without it. Whether doing homework, applying for college, searching and applying for jobs, paying bills, accessing health care or using social media, think for a second about how you would do all these things if you didn’t have the Internet at home? Would you park your car in your nearest McDonald’s parking lot so you could hand your smartphone to your child to use the free Wi-Fi to write a book report? Would you send your daughter across town on a bus at night to a computer lab so she could do her homework? Would you walk a mile to your local library to sign your son up for a 30 minute session on a computer? I’ve traveled all around the country hearing stories from mothers and fathers who had to do all of these things for their kids because they didn’t have Internet service at home. It doesn’t seem fair does it?

Comcast post 2

In August 2011, we set out to try to help solve this problem by introducing Internet Essentials, the nation’s largest and most comprehensive broadband adoption program. It provides low-cost broadband service for $9.95 a month; the option to purchase an Internet-ready computer for less than $150; and multiple options to access free digital literacy training in print, online and in person.

That was three and a half years ago. Recently, we were proud to announce that thanks to the support and hard work of thousands of community partners, elected officials and dedicated employees, we have connected more than 450,000 families, or 1.8 million low-income Americans, to the power of the Internet at home. For a frame of reference, 1.8 million is larger than the populations of 96 of America’s 100 largest cities as well as 12 states. That is real and meaningful progress.

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On a local level, the Chicago metro area leads the way in closing the digital divide for the fourth year in a row. More than 50,000 families, or 200,000 low-income Chicagoans – nearly 25 percent of its eligible population – have signed up for Internet Essentials. Second best is the Miami metro area, with more than 41,500 families, or 166,000 low-income residents – 28 percent of its eligible population. The Atlanta metro area is third best with more than 25,000 families, or more than 100,000 low-income citizens – almost 20 percent of its eligible population.

Crossing the digital divide is not just about getting families online, it’s also about teaching them how to use the Internet’s resources to its fullest potential. The clear-cut assessment across all broadband researchers is that the most widely noted reason for non-adoption is not the price of the broadband connection or any cost related to that connection. Instead, it’s a bucket of digital literacy issues, including a perceived lack of relevance of the Internet and a lack of understanding of its value. For instance, nearly half of non-adopters say they simply don’t need the Internet at home or are not interested, according to research by the NTIA.

To break down that barrier to adoption, we’ve invested more than $225 million in cash and in-kind support to help fund digital literacy and readiness initiatives, reaching more than 3.1 million people through our network of national and local nonprofit community partners. Partners like the National League of Cities have also played a crucial role in making more people aware of these training opportunities.

One of my favorite statistics that truly highlights the progress we are making is from research by Dr. John B. Horrigan, former head of research for the FCC’s National Broadband Plan and a preeminent researcher on broadband adoption and utilization. He found that even though Comcast is only one of multiple providers, and does not have broadband systems in two-thirds of the country, the company’s Internet Essentials program has accounted for one-quarter of all of the national broadband adoption growth for low-income families with children from the program’s inception through June 2014.

We look forward to the continued success of the program. We believe the Internet has the power to transform lives, strengthen communities and inspire a new generation of leaders – but we can’t do this alone. We hope you will join us in this fight to close the digital divide. If you’d like to get more involved and become a partner, please sign up at www.internetessentials.com/partner and help spread the word.

david cohen, comcast_150x187About the Author: David L. Cohen is Executive Vice President of Comcast Corporation. David has a broad portfolio of responsibilities, including corporate communications, government and regulatory affairs, public affairs, legal affairs, corporate administration and community investment, and serves as senior counselor to the CEO. He also serves as Chief Diversity Officer for the company.

Retention and Attraction Strategies for a Balanced Retail Sector

This is a recap from Big Ideas for Small Business, NLC’s national peer network helping local governments accelerate effort to support small businesses and encourage entrepreneurship. To learn more, email robbins@nlc.org.

Empress of China SFNeighborhood institutions, such as the Empress of China restaurant in San Francisco, are often forced to close their doors due to escalating rent prices – but city leaders can balance retention and attraction strategies to sustain a healthy and diverse local business community. (Image courtesy reelsf.com)

Small businesses in some San Francisco neighborhoods are “disappearing as fast as an artisanal ice cube in a $14 craft cocktail” because of a development boom that’s turning neighborhood institutions, like the Empress of China and Lombardi Sports, into housing units. In Washington, D.C., local shops like Jak & Co. Hairdressers are closing their doors due to escalating rent prices.

At the same time, though, Cleveland has found it difficult to attract a full-scale grocery store downtown. Fort Worth also recently struggled to attract a retailer to a lower-income and underdeveloped neighborhood of the city.

What’s happening in these scenarios is nothing new. The real estate industry tends to develop where demand and buying power are high enough to create a return on investment. Even though cities don’t have direct control over the private real estate market, there are indeed strategies local governments can implement to create equity across neighborhood retail sectors.

City leaders should find the right balance between retention and attraction strategies to sustain a healthy and diverse local business community across all neighborhoods. Business retention strategies help existing local businesses keep their doors open. Business attraction strategies encourage or promote business growth in areas that wouldn’t otherwise be considered viable options for investment.

Achieving the right balance can undoubtedly be a complicated and ongoing process. Cities from NLC’s Big Ideas for Small Business peer network recently shared some of their local best practices.

Business Retention

 Legislating to preserve legacy businesses.  San Francisco is considering Legacy Business Legislation that would help retain local businesses in their original location by providing incentives to both the business and property owners. The businesses affected by this legislation are mom-and-pop restaurants, bars, and other small retailers operating in the city for at least 30 years. In recent years, these historic retailers have been “swallowed up” by the city’s development boom.

Providing business owners with site relocation assistance. For existing businesses that can no longer afford their leases, the choices are either to close up shop or relocate to a different neighborhood. Retail site selection tools, like the Retail Site Search from the Washington DC Economic Partnership (WDCEP), catalogue all of the available commercial spaces in the city. Every year, the WDCEP works with several business owners to choose a new, more affordable site for their business. The WDCEP tracks data on new business licenses that provides a unique vantage point into areas where businesses are growing and commercial rents are likely to rise.

Business Attraction

Partnering with a public hospital to build a grocery store in a food desert. Grocery stores are one of the more difficult types of retail for cities to attract in underserved areas. A public hospital in Kansas City, Mo., is supporting the construction of a grocery store in a section of the city that is now considered a food desert. The hospital’s vision is to provide access to fresh, affordable produce so that local residents are healthier and need fewer emergency room visits. Once it’s opened, the hospital will take over the management of the grocery store and offer classes on food and nutrition.

Using vacant space for pop-up retail. Temporarily filling vacant commercial corridors with pop-up retail businesses benefits the local economy in two ways. First, it reinvigorates the neighborhood by attracting visitors and customers, and can help reestablish the neighborhood as a “hot spot” for new businesses or development. Additionally, pop-up spaces provide local entrepreneurs the chance to test their products and skills in a low-risk environment. San Antonio’s OPEN initiative provides entrepreneurs with short-term leases in vacant downtown spaces, and aims to “authenticate downtown as a vibrant urban space, ready for long-term investment.” The Pop-Up Project in San Jose also connects retailers to vacant or underutilized downtown space.

A mix of these types of retention and attraction strategies will help ensure that all businesses have the chance to be successful, and that all neighborhoods have affordable goods and services available for residents.

Robbins_small (2)About the author: Emily Robbins is the Senior Associate of Finance and Economic Development at NLC. Follow Emily on Twitter: @robbins617.

National Park Service Launches NPS Urban Agenda

This is a guest post by Jonathan B. Jarvis, Director of the U.S. National Park Service.

Jefferson National Expansion MemorialThe Jefferson National Expansion Memorial in St. Louis, Mo., exemplifies the innovative ways city leaders, businesses and NGOs are investing in new parks, new park designs, and new ways to engage communities in creating healthy and livable cities. (National Park Service)

One hundred years ago, lawmakers were considering a radical idea to preserve some of our nation’s most iconic landscapes “for the benefit and enjoyment of the people.”

Indeed, what the founders of the national park idea had in mind nearly 100 years ago was incredibly innovative – but today, we live in a different time and a different era that requires new ways of thinking and a renewed relationship between parks and the American people. Since 1916, the American public has diversified and evolved; so, too, has our need to diversify National Park Service parks and programs to answer the call of the next century.

As we prepare to celebrate the 100th anniversary of the National Park Service’s establishment in 2016, we have spent a great deal of time thinking about how we can make national parks relevant to a new generation of Americans. One constant in those discussions is the importance of urban parks and National Park Service programs in urban areas.

People are often surprised to hear how urban the National Park Service is. For instance:

  • Forty of the country’s 50 most populated urban areas have national parks located within them;
  • One-third of all NPS sites are located in urban areas;
  • Thirty-six percent of all NPS visitation occurs at our urban sites – Golden Gate being the most visited;
  • NPS historic preservation tax credits have contributed significantly to preserving the character of our cities, generating more than $66 billion in private investment in historic rehabilitations; and
  • Some 30 NPS programs serve urban communities, providing funds and technical assistance for recreational facilities, environmental restoration, historic architecture, historic research, trail building, and youth engagement.

Recognizing this strong base of urban engagement and its potential to connect new audiences to national parks, last week, the National Park Service announced the Urban Agenda for the National Park Service. The Urban Agenda establishes a framework for an unprecedented strategic alignment of parks, programs and partnerships that will better serve communities.

A key component of the Urban Agenda will be realizing the core principles that call for being relevant to all Americans and creating a culture of collaboration. We have identified 10 model cities where we will develop our capacity to act as “One National Park Service” to better serve communities. To assist in activating the Agenda, we have developed a fellowship program that will deploy Urban Fellows in each model city and ultimately serve as a pipeline for growing NPS urban leaders.

The model cities were selected to provide opportunities to address a variety of challenges in spaces where we already have a national park located within the city, places that have national parks nearby, and locations that have no physical national park units, but strong ties to NPS programs. They include:

  1. Boston
  2. New York City
  3. Philadelphia
  4. Richmond, Virginia
  5. Washington
  6. Jacksonville, Florida
  7. St. Louis
  8. Detroit
  9. Tucson, Arizona
  10. Richmond, California

Importantly, the NPS Urban Agenda is supported by the President’s 21st Century Conservation agenda that calls for full funding of the Land and Water Conservation Fund and a $326 million NPS Centennial Fund. If enacted by Congress, this would provide an additional $107 million for federal land acquisition, $47 million for state grants and $25 million for the Urban Parks and Recreation Fund, which assists economically distressed urban communities with the revitalization and improvement of recreation opportunities.

My boss, Secretary of the Interior Sally Jewell, has launched an ambitious youth initiative that will engage the next generation of leaders and stewards through recreation, education, volunteerism, and employment. Specifically, by 2017, the Department will convene coalitions in 50 cities across the country to create more opportunities for young people to play, learn, serve, and work outdoors. The 10 NPS model cities are part of this movement, and over the next year and half, her initiative will result in investments in and support for 50 coalitions in many of our largest and most densely populated cities in the country. The Department of the Interior’s youth initiative goals include engaging 10 million kids in outdoor recreation programs; providing educational opportunities to 10 million of the nation’s K-12 students annually; engaging one million volunteers in support of public lands; and providing 100,000 work and training opportunities to young adults, including returning veterans.

This month, the National Park Service and our partner the National Park Foundation also launched a broad public awareness and engagement campaign called “Find Your Park.” This campaign extends an invitation to the public to understand the current breadth of the National Park Service stands for and rethink where and what all that a park can be.

The National Park Service recognizes that we cannot accomplish our goal of connecting the next generation to the benefits of their parks and public lands without the support and assistance of a whole host of partners. So, I invite you to join us and find ways to engage and share in a public dialogue, to learn from one another, to address the impact of climate change on our cities, to create education and employment pathways for disengaged youth, and maybe even to co-design the next great urban national park. Go out and Find Your Park.

Jonathan_Jarvis_150x183About the Author: Jonathan B. Jarvis began his career with the National Park Service in 1976 as a seasonal interpreter in Washington, D.C. Today, he manages that agency whose mission is to preserve America’s most treasured landscapes and cultural icons. Managing the National Park Service on the eve of its centennial in 2016, Jarvis has focused on several key areas that are critical for the future: enhancing stewardship of the places entrusted to the Service’s care; maximizing the educational potential of parks and programs; engaging new generations and audiences, and ensuring the welfare and fulfillment of National Park Service employees. His blueprint for the agency’s second century, A Call to Action, calls for innovative, ambitious, yet practical ways to fulfill the National Park Service’s promise to America in the 21st century.

Remarkable New Policy Allows City Employees in Louisville to Mentor — and Pays Them

This is a guest post by Jack Calhoun. The post originally appeared here.

Louisville, Ky. Under the leadership of Mayor Greg Fischer, the city of Louisville, Ky., has created a new program which allows employees the opportunity to take two hours of paid time a week to work with at-risk youth. (Getty Images)

“When I ask businesses and others to step up to mentor, they ask, ‘What are you guys doing?’ And I say, ‘Here’s our Mentors Program. Mentoring is an act of citizenship; at the end of the day, we’re put on the earth to make the world a better place… being an American is not a spectator sport.’”

– Mayor Greg Fischer, City of Louisville

When speaking about his groundbreaking new mentorship program, Louisville Mayor Greg Fischer did not limit his rallying cry to moral exhortation and sound bites. He set a goal: to sign up 10 percent of the city’s workforce – 600 individuals – as mentors. And he anchored his exhortation in city policy.

Louisville’s Metro Government Personnel Policies, states, in section 1.21 (1), “The future of Louisville rests in the hearts and minds of our young people – we must do all we can to plant the seeds of future growth and success in our young people. The purpose of this policy is to allow all Louisville Metro employees to act as mentors for area youth.” The policy continues: “Metro employees qualifying to participate in the program will be allowed up to two hours per week, to be used during their regular work shift, in order to volunteer at one of the program’s partner organizations with the purpose of mentoring at-risk youth in our community and shall commit to participate for a minimum of one year. This time will be paid.”

“We talk the talk, but now’s the time to walk the walk,” asserts Sadiqa Reynolds Chief for Community Building, top aide to Mayor Fischer. “Ours are public employees, and we see this as part of their public service commitment.”

Anthony Smith, who directs the Office for Safe and Healthy Neighborhoods for the City, has woven mentoring into “One Love Louisville,” the City’s comprehensive violence prevention/community building plan. He views mentoring as an essential crime prevention tool: “We have a lot of kids who might be involved in the criminal justice system. They need positive adults in their lives right now. And there are kids in the third grade who can’t read. They’re in danger of dropping out and getting into trouble.”

Sytisha Claycomb, a city employee who serves as the Administrative Director for the Youth Detention Center, points to the powerful effect of mentoring on her life. Having helped her mentee complete his GED, and now working to enroll him into a local university, she states: “I felt like a proud parent at his GED graduation this morning at the institution. All the facility workers, line staff and other kids and family attended his graduation. He thanked me from the stage. Thanked me! I can’t tell you how honored I felt.” She also underscored one of mentoring’s core purposes, namely, steadiness and reliability in otherwise chaotic, mistrusting lives. Speaking about her mentee, she noted that “He doesn’t need another person dropping in and out of his life. He needs consistency.”   The City’s program asks for a year’s commitment. Not enough for Sytisha: “I originally signed up for one year,” she stated, “but I’m committed for at least two to make sure he’s solidly on his next path.”

In addition to consistency and trust, exposure to a wider world and to trusted adults who can provide that exposure, lie at the core of a successful mentoring program. Says Smith, “The mentees need to see a better world than they see now, a wider world, the wide horizon of Louisville and beyond, because all they know is their tiny corner.” City employees can introduce them to that wider world. As Smith notes, “We’re actually talking about job shadowing now, kids coming into city hall and other places to see what people actually do.” Darryl Young, another mentor, echoes Smith’s sentiment: “We who have made it take for granted that everyone has people to look up to, people who are examples of jobs, of opportunity.”

The paid mentorship program instituted in Louisville offers city employees increased incentive to serve as positive examples for at-risk youth, and the program serves as a model of what can be accomplished by cities willing to dedicate resources to such an endeavor. The key takeaway: this model doesn’t add additional costs to city budgets. It simply allows employees to spend two hours of their work mentoring youth . Two hours makes little difference in employee productivity and a huge difference in the lives of young people. And Mayor Fischer is quick to recognize that not every city employee is prepared to mentor a youth who has been in trouble or who finds him or herself in a particularly turbulent, even violent situation. His response?  “I understand that, but come on, everyone can help a third grader read!”

Note: It’s an idea that’s taking root at the federal level. The Department of Justice recently approved two hours a week (8 hours a month) of paid administrative leave for Office of Justice Program (OJP) employees to receive training and perform academic mentoring at a DC area public school through an already approved afterschool program. Echoing Louisville’s Reynolds, Beth McGarry, OJP’s Principal Deputy Assistant Attorney General said, “When I returned to OJP one of my goals was to ‘walk the walk’ and set up a program for our employees to mentor.”Cities throughout the nation are embarked on mentoring campaigns, especially for at risk children and youth. The Louisville and the Department of Justice examples show that the government can model what it is asking citizens to do.

Jack CalhounAbout the Author: John A. “Jack” Calhoun is an internationally renowned public speaker and frequent media guest and editorial contributor. He currently serves as Senior Consultant to the National League of Cities and Founder and CEO of Hope Matters. For more than 20 years, Mr. Calhoun was the founding President of the National Crime Prevention Council, prior to which he served under President Carter as the Commissioner of the Administration for Children, Youth and Families.

Regulatory Reform, Data Analytics and Local Food Systems: This Month in Economic Development

Our monthly roundup of the latest news in economic development filtered through a city-focused lens. Reading something interesting? Share it with @robbins617.

boston_1_fullsizeCities like Boston have recently begun a new chapter in economic development by taking an innovative approach to regulatory compliance, creating a win-win scenario in which the community is protected and businesses are encouraged to contribute to a vibrant, healthy economy. (Getty Images)

Grab your scissors, it’s time to cut red tape for local businesses. Whether it’s the dizzying paper trail, inexplicable permitting or licensing requirements, or an arbitrary approval timeline, the local regulatory process is ripe for reform. NLC profiled the three key strategies for untangling the knots of business regulations, and also highlighted how several cities are using a “more carrot, less stick” approach. Mayor Martin J. Walsh wrote a guest blog post for NLC on how he is making Boston more business friendly, including building an online permitting system. The Ash Center at Harvard’s Kennedy School recently launched a comprehensive, online guide to help cities plan out their own regulatory reform initiatives. (Side note, here’s a great article from The Week on other ways cities can support businesses).

Data analytics is driving more effective economic development… There were a couple great stories this past month about how data analytics is improving local government outcomes, particularly for economic development. For example, Transit Labs is partnering with Detroit to use city data to improve inefficient bus routes. Also Louisville and Raleigh are among a group of cities using public feedback on the restaurant review website Yelp to prioritize health inspections for businesses.

…and collecting city data is more valuable than ever. The data analytics movement is creating new dialogue around what is the most effective data for cities to collect and analyze. To this end, Smart Incentives shared advice on how to measure the actual impact of economic development incentive agreements, not just the costs associated with them. The Kauffman Foundation also released a briefing on the four best indicators to measure a city’s entrepreneurial ecosystem. (NLC also has a performance management guidebook for cities).

Pioneering local food systems. Creating a local food ecosystem is a win-win situation for food providers and community member. The city of Portland, Maine, is emerging as a pioneer in the local food system scene. Mayor Michael Brennan developed the Healthy Sustainable Food Systems Initiative a couple years ago pledging that 50 percent of food at public schools, universities, and hospitals will be from local sources. To help other cities create their own local food ecosystems, the Council of Development Finance Agencies (CDFA) recently held a course on financing local food systems (follow @CDFA_Update to find out when it will be offered again).

Local government is still the leader in public sector job growth. This month’s Local Jobs Report found that, once again, local government is leading public sector job growth. Both federal and state governments lost jobs, but local government gained 3,000 jobs in March. Our analysis also reviews monthly employment trends from 2008 to now, and looks at whether or not cities are hiring back public safety positions that were lost after the recession due to budget cuts.

Religious freedom in Indiana? Talk about voting with your feet. In the wake of Indiana Governor Mike Pence’s passage of a controversial new religious freedom law, the business community is responding by cancelling expansion plans and prohibiting travel to the state. Angie’s List, headquartered in Indianapolis, is delaying a planned $40 million expansion set to create 1,000 local jobs over the next five years until the law’s ramifications are made clear. The list of other organizations that are banning activity in Indiana includes major companies like Apple, Salesforce, and Yelp. Meanwhile, Governor Pence is working to clarify the intent of the law, and its supporters are explaining that similar legislation already exists in 19 states without comparable pushback.

For a laugh. Or maybe for a shudder. The city of Austin wants you to visit its cemeteries. No, really. The city is developing a master plan for its burial grounds to turn the abandoned (and perhaps creepy?) spaces into public places where people choose to visit. The city’s plans include gravestone repairs, public programming, and other revitalization efforts.

What we’re reading. HuffPo column on how McDonald’s is fighting Seattle’s new minimum wage law. San Francisco Fed’s analysis of whether or not place-based policies like enterprise zones create jobs. A thought piece from Jerry Newfarmer on why people, not technology, are the unsung heroes of innovation in cities.

(Read the previous monthly roundups from January and February.)

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About the author: Emily Robbins is the Senior Associate of Finance and Economic Development at NLC. Follow Emily on Twitter: @robbins617.

The Sharing Economy and the Future of Cities – What’s Next?

This post was co-authored with Lauren Hirshon. Brooks Rainwater and Lauren Hirshon recently published the National League of Cities report “Cities, the Sharing Economy and What’s Next.”

Sharing Economy 5

The sharing economy is impacting cities. Around the world, innovative sharing economy technologies and business models are redefining how city dwellers access resources and consume goods. City leaders welcome innovation in their cities – but as regulatory challenges continue to arise, many would like a better understanding of how best to approach the growing sharing economy.

Sharing Economy cover minThe National League of Cities report Cities, the Sharing Economy and What’s Next provides an analysis of what is currently happening within the sharing economy in American cities. In order to explore the multifaceted nature of this space, the report focuses on five key themes: innovation, economic development, equity, safety and implementation.

The sharing economy is impacting the delivery of goods and services across a wide range of industries. Jeremiah Owyang’s Collaborative Economy Honeycomb demonstrates how this space has grown to include 12 distinct areas from space and transportation to logistics, learning and more.

Uber, Lyft, SideCar and other Transportation Network Companies (TNC’s) have dramatically disrupted travel patterns in cities. For many, hailing a cab or calling for a ride has been replaced with the act of opening a mobile application, requesting a ride, and tracking a little car graphic as it makes its way across a map to your location.

On the homesharing front, Airbnb, HomeAway, VRBO and other companies are shaking up travel – specifically, the manner in which people make use of resources like apartments, homes, spare bedrooms or even castles.

Meanwhile, other platforms and concepts like TaskRabbit (a mobile marketplace to hire people to do jobs and tasks), SnapGoods (a site for lending and borrowing high-end household items), and Feastly (a marketplace for dining experiences) are taking off as well.

Why Sharing

Also described as collaborative consumption, the collaborative economy, or the peer-to-peer economy, the sharing economy is growing and changing the way people use and consume resources and services. But it is also disrupting local regulatory environments. With this major shift occurring in urban hubs, all eyes are on cities for global leadership.

True to their reputation as laboratories for experimentation, many cities are testing different approaches and developing unique, locally-driven solutions to new challenges. While there is no status quo – and the relative novelty of the issue still precludes long-term, tested best practices – city leaders are springing into action to consider how these platforms and services will impact major issues in cities.

Cities, the Sharing Economy and What’s Next deals most specifically with two facets of the sharing economy: transportation and space, or the areas generally referred to as ridesharing and homesharing. In our report we highlighted themes, insights and lessons learned that emerged from conversations with current and former city leaders from around the country who are developing new strategies and tactics to regulate this evolving sharing space.

While there are still many unanswered questions, we’re certainly working towards clarity on the important topics to consider in this research. Depending on community priorities, neighborhood compositions, available housing stock, tourism demands, existing transportation networks, major events and other issues, the cities we interviewed chose to take different approaches. Thus, a wide spectrum of solutions has emerged.

For example, when considering ridesharing safety issues, some cities like Dallas have opted to develop a new set of insurance requirements. The city of Dallas created a novel three-phase approach to ensure that TNCs had insurance coverage 24/7. Other cities have decided to revisit their policies for taxicab companies.

Sharing Economy 3

Regarding the manner in which these services impact equity and access, some cities have created funds to support wheel-chair accessible transportation. Others have included clauses in ordinances explicitly stating that services cannot be denied to certain passengers. Many are looking for ways to capture new data to track areas like pick-up and drop-off locations.

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Across the interviews we conducted for our report, many city leaders expressed wanting access to more data from sharing economy companies. Unlike most traditional service providers, the business model of sharing economy companies is predicated on data and the ability to match end user customers to vehicles or available housing. The availability of this data – for cities to better understand equity and access issues, as well as for the purposes of developing enhanced transit systems – is a theme that warrants further exploration.

Cities are also taking a varied approach to addressing the new economic reality created by sharing economy businesses. In a number of cities such as Austin, Texas, Washington, D.C., Madison, Wisc., Portland, Ore., Chicago and San Francisco, homesharing companies have begun to include local hotel taxes in their rate structures – either voluntarily or as part of local regulations on homesharing.

Some cities have not yet reached agreement on these issues, and the onus is on hosts to pay appropriate taxes on their revenues. In Washington, D.C., the recent TNC legislation included a provision requiring TNCs to pay taxes equaling 1 percent of all revenues from trips originating from within the city; annual revenue totals are estimated to be in the millions. In Seattle, TNCs must pay a fee of 10 cents for each ride that originates in the city. Other cities, such as Dallas, decided not to touch the issue of revenue capture when drafting legislation.

Our report provides additional details on each of these issues, the strategies city officials are developing, and their reasoning behind their approach. While our report doesn’t provide all the answers, it is meant to be a primer for what is currently happening in this arena – and we hope it offers some sense of comfort that city leaders are not alone in grappling with substantial new regulatory challenges.

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We also hope our findings inspire city officials to ask the tough questions. The sharing economy is disruptive, and it’s moving quickly. It’s changing how we get around, where we stay, how we manage tasks, what we buy – and sometimes the changes occurring can be overwhelming for city officials.

However, the presentation of these new challenges offers city leaders the unique opportunity to not only think about present concerns but also to look to the future. City leaders should consider the new opportunities these platforms and services are creating to transform approaches and operating models so that cities can become even more agile, responsive and innovative themselves.

The sharing economy will only continue to grow and evolve as cities serve as laboratories for these ever-changing technologies and business models. There is great promise in the rapid ascent of sharing economy services in our nation’s cities. The best thing that city policymakers can do is keep an open mind about how the new economy might be beneficial with the right regulatory framework in place – because sharing is here to stay.

About the Authors:

Brooks Rainwater bio photoBrooks Rainwater is the Director of the Center for City Solutions and Applied Research at the National League of Cities. Follow Brooks on Twitter at @BrooksRainwater.

 

Lauren Hirshon 104x120

Lauren Hirshon is the Director of Consulting at the University of Pennsylvania’s Fels Institute of Government, and a public sector strategist, coach and innovator. Follow Lauren on Twitter at @LaurenHirshon.

Municipal Fiber and the Digital Divide: A Modest Proposal

This is a guest post by Angela Siefer and Bill Callahan.

fiber_optics_2With a little effort, city leaders could develop account-sharing models and policies that encourage smart, grassroots solutions to the affordable broadband problem at little or no public cost. (Getty Images)

The explosion of interest in community-owned fiber on the part of elected officials and technology leaders has created an opportunity that few have noticed: cities could leverage these investments to help lower the barriers to home Internet access that still keep low-income, less educated and older citizens out of the digital mainstream. This could be easily accomplished, at it would cost cities practically nothing.

Here’s how: cities could allow neighboring households and community groups to share that terrific bandwidth – and its cost – by using community-owned fiber to power grassroots Wi-Fi networks.

Almost all Internet Service Providers (ISPs) and community-owned fiber networks employ Terms of Service language that prohibits customers from extending their networks across property lines to share access with their neighbors. City-owned networks can expand the possibilities for affordable broadband access in disadvantaged neighborhoods simply by changing their Terms of Service to allow network sharing.

As demonstrated by the rise of Google Fiber, the advent of city-owned networks selling 100 megabit or gigabit Internet access for $75, $90 or $100 a month raises the competitive ante on broadband speed and price for traditional cable and telecommunications ISPs. This is great news for tech-savvy middle- and upper-income residents, as well as for data-dependent businesses and community anchor institutions like libraries and hospitals.

But in many city neighborhoods, we’re faced with the stubborn fact that large numbers of mostly low-income citizens still don’t have home Internet access at any speed.

The American Community Survey for 2013 reports data for 575 U.S. “places” with more than 15,000 households. 282 of these communities – nearly half – reported no fixed broadband connections (defined as any connection beyond dial-up or mobile) in at least 30 percent of their homes. 151 reported that at least one fourth of their households have no home Internet access of any kind – no dial-up, no mobile access; nothing. Not surprisingly, these Internet-free households are concentrated in low-income neighborhoods where residents are least able to afford the $30, $40 or $50 monthly cost of an Internet service subscription.

Of course, low-income households that can’t afford current DSL or cable Internet services have little to gain from the availability of fiber broadband service that costs twice as much.

But suppose that cost could be split among five, ten or twenty users?

One of the great value propositions of Big Bandwidth is its shareability. There’s not much a single household can do with a gigabit connection that couldn’t be accomplished with a tenth (100 mbps), a twentieth (50 mbps) or even a fortieth (25 mbps) of that capacity. But put that gigabit connection into an office, a call center or library where forty, fifty or more users share it, and its value becomes apparent. All the users sharing that gigabit start connecting to the Internet at speeds far greater than their “shares” (because of how network routers optimize and balance packet streams) – and at a total cost far below the equivalent number of single-user accounts.

The economic advantage of networked access sharing has been so obvious for so long that no business or organization would even think about buying individual Internet service accounts for employees working at the same location – and no ISPs would waste time trying to sell them. Since home broadband took root a decade ago, the same has become true of households; we provide for our family members’ need to connect simultaneously in different parts of our homes with routers, network cables and Wi-Fi – not by subscribing to multiple Internet service accounts.

ISPs are happy to encourage all this access sharing within their customers’ premises. But they draw the line – a hard, bright line written into their Terms of Service – when it comes to letting customers share their network with the neighbors. The reasons are commercial, not technical; ISPs make money on account charges, and they don’t want their customers to get ideas about avoiding them. It’s a profit-driven business model.

But municipal broadband networks don’t have to follow that model.

Over the past eight years, cheap, modular “open mesh” Wi-Fi devices have transformed the possibilities for community networking at the very local level – the apartment building, housing estate or city block. Any building owner or group of neighbors can acquire a few of these devices for less than a hundred dollars each, distribute them at 100-200 foot intervals around a target area, connect at least one of them to the Internet, and start distributing robust, secure Wi-Fi Internet throughout the area.

Open mesh networks are providing public or “house” Internet access in thousands of hotels, apartment complexes, campuses and campgrounds. These networks are also found in some public housing estates and high-rises, installed by local housing authorities who understand the importance of affordable Internet for tenants’ income and education prospects.

There’s no technical reason why block clubs and community organizations in lower-income neighborhoods can’t use this same cheap, off-the-shelf technology to create truly affordable local broadband access, by sharing connections and costs among neighboring households. But unlike the people running apartment buildings, campgrounds and hotels, community residents will almost always find that Terms of Service restrict them from sharing bandwidth with their neighbors, at any price.

Municipal broadband providers can solve this problem with the stroke of a pen, simply by allowing neighborhood account sharing in their Terms of Service.

With a little effort, city leaders could take the next step: Working with neighborhood leaders and digital inclusion advocates to develop account-sharing models and policies that encourage smart, grassroots solutions to the affordable broadband problem at little or no public cost.

Angela Siefer 150wAbout the Authors: Angela Siefer is a digital inclusion consultant and an adjunct fellow at the Pell Center at Salve Regina University. She envisions a world in which all members of society have the skills and the resources to use the Internet for the betterment of themselves and their communities.

bill callahan 150wBill Callahan is a Cleveland-based community organizer who has worked for the past twenty years on grassroots training and access strategies to close the digital divide. He currently serves as the director of Connect Your Community, a collaborative of community-based digital inclusion advocates in greater Cleveland and Detroit.

Three Approaches for Untangling the Knots of Local Business Regulations

knot(Getty Images)

Oh, what a tangled knot cities can weave with local business regulations. Whether it’s the dizzying application paper trail at city hall, inexplicable permitting or licensing requirements, or an arbitrary approval timeline, this is a government problem that is ripe for a solution. Thankfully, a number of cities are creating a path forward on regulatory reform.

The scope of this problem, although difficult to fully quantify, is substantial for both business owners and local governments. In a recent Thumbtack Small Business Friendliness Survey, the top frustration reported by business owners is a complicated regulatory process. The time spent navigating the current broken system translates into lost income and delayed openings for new businesses.

Meanwhile, the economic health of cities suffers when local business owners and entrepreneurs cannot open their doors quickly, or even worse, decided to locate elsewhere that is more business-friendly. The US Chamber of Commerce Foundation’s Regulatory Climate Index recommends streamlining permitting and licensing as a necessary reform for encouraging entrepreneurship, job creation, and overall economic growth.

Cities are taking three approaches to untangling the knots of local business regulation.

Reviewing existing regulations, eliminating ones without a purpose. First, many cities are making sure their local business regulations are actually serving a purpose. Regulations can sometimes be superfluous (for example, an “open flame” permit to place votive candles on restaurant tables) or contradictory to county or state guidelines.

To help cities confront this issue, the Ash Center for Democratic Governance at Harvard Kennedy School launched a regulatory reform framework that provides guiding principles to understand the origin and purpose of a regulation and how to streamline permitting and licensing (side note: it also shares information on using predictive monitoring to prioritize inspections where they are needed most).

Mayor Rahm Emanuel appointed a new commissioner to modernize Chicago’s entire municipal code and eliminate unnecessary regulations, and also signed licensing reform legislation that reduced the number of business licenses by 60 percent. The Seattle Restaurant Reform Initiative program formed a team of city, county, and state representatives to tackle regulatory inefficiencies for the local restaurant industry. Kansas City’s Dead Letter Office website is crowdsourcing ideas for regulations that are impractical and no longer serving a valid purpose.

Improving interdepartmental coordination and customer service at city hall. Opening a business often requires paperwork from separate city offices, and these applications can get passed around to different departments like a game of pinball. No wonder the process is frustrating.

Cincinnati reduces this administrative headache, and more quickly process permitting and licensing requests, by using “jump teams” of key staff from across the necessary departments to support the application process from start to finish. Kansas City created the KCBizcare office to offer in-person support and encouragement for business owners navigating the regulatory process. The KCBizcare team serves as an advocate for business owners who are working with city departments, and helps monitor the progress of applications. The one-stop-shop Small Business Center in Chicago has an express lane that streamlines specific types of requests (for example, updating account information or printing a new license) and provides assistance in 15 minutes or less.

Making the regulatory process more transparent and easily accessible. Business permitting and licensing process works better when expectations are clearly communicated, information is easily accessible, and the application process is available online.

The San Francisco Business Portal is a comprehensive website with “starter kits” by industry on how to start a business in the city. New York City also has online “starter guides.” The Seattle Restaurant Success Initiative developed an infographic that serves as a roadmap for starting a restaurant.

Lastly, some cities are moving towards putting the actual permitting and licensing application process online. Boston, Kansas City, and Denver have all secured contracts to move from paper to an online interface. The ultimate goal is to enable business owners and entrepreneurs to apply for all permits and licenses quickly and efficiently, and track their approval status, through one streamlined city website.

By working on one or all of these reform approaches local governments can create a regulatory environment that allows small businesses and entrepreneurs to spring into action, instead of getting tangled along the way.

Robbins_small (2)About the author: Emily Robbins is the Senior Associate, Finance and Economic Development at NLC. Follow Emily on Twitter: @robbins617.

Climate Change Update: FOCUS 2015 and Preparing for COP-21 in Paris

This post was co-authored with Allison Paisner.

FOCUS 2015NLC Second Vice President Matt Zone (sixth from left) pauses for a photo with other elected officials at the FOCUS (Forum Of Communities for Urban Sustainability) 2015 event at the French Embassy in Washington, D.C. on March 6, 2015. The event was designed around a discussion of how cities and local governments can fight climate change and provide residents with a higher quality of life. (photo: FOCUS 2015)

This December, the UN Framework Convention on Climate Change (UNFCCC) will meet in Paris for COP-21 (the 21st session of the Conference of the Parties to the UNFCCC) in hopes of negotiating a new, international agreement on greenhouse gas emissions. Whether you are optimistic or doubtful about the prospects for a global accord among the various nations, it is clear that cities and towns will continue to be at the center of any effort to mitigate or adapt to the challenges posed by climate change.

That is why the French Embassy in Washington, D.C. recently hosted FOCUS-15: A Forum of Communities for Urban Sustainability. The mission was to spark thinking, create networks and establish bonds between local actors prior to the UN Conference of Parties in Paris this December. The event brought together French and American leaders from public, private and philanthropic sectors, including nearly a dozen representatives from the National League of Cities (NLC).

NLC Second Vice President Matt Zone and Henrietta Davis, both of whom were part of the NLC COP-15 delegation in Copenhagen, noted how much attitudes had improved in recognizing the role cities play in the process. Just six years ago, all of the attention was given to national governments, and local leaders were treated no differently than small, non-profit interest groups. Looking at COP-21 though, local leaders are closer to center stage.

Workshops centered on the pillars of urban sustainability: waste and water, energy, transportation and land use, resiliency, and urban policy and community empowerment. Because cities are engines of innovation where commitments to sustainability develop at the local level, the forum emphasized the need to for cities and regional authorities to coordinate policies and disseminate best practices as key actors. Communities also need to educate their residents and serve as facilitators for change by equipping citizens with the tools necessary to participate in the decision making process.

Green investments geared towards climate change mitigation, adaptation and resiliency involve high short-term costs – the results of which only translate in the long term. Policymakers need to understand this tradeoff and make fiscally and environmentally responsible decisions that balance the cost- and results-oriented spheres for the future of tomorrow.

Highlights from the FOCUS 2015 conference in Washington, D.C.

Other sustainability trends recognized in French and American cities over the two-day event included the need to accommodate population growth while limiting urban sprawl, transitioning away from a carbon-based transportation system, the inclusion of natural systems and green infrastructure as sustainable alternatives to depreciating built infrastructure, and working within the institutional framework for research and support of city innovation.

Partnerships between local & federal governments and the public & private sector are crucial stimulants to sustainable development, providing means for innovation, access to financial capital, and broadening the scale of influence.

Based on the dialogue between national and local actors throughout the conference, it is clear that the gradual transition to sustainable cities will involve healthy competition and inspire a race to the top.

More immediately, though, there is significant preparation and progress to be made prior to COP-21 this December. With limited authority as local and regional governments, cities need a “Paris deal;” sub-national actors need to bring clear objectives to the discussion, outline what is possible, and show their political support for an equitable and achievable agreement.

Whatever is decided in Paris will not be the end of the road, however. With luck – and the support of cities and towns – it will be only the beginning of a new and ambitious era in urban sustainability.

About the Authors:

Headshot1-CMartin Cooper Martin is the Program Director for the Sustainable Cities Institute at the NLC. Follow the program on twitter @sustcitiesinst.

 

Allison Paisner headshot Allison Paisner is an intern with the Sustainable Cities Institute at the National League of Cities. Follow the program on twitter @sustcitiesinst.