ANCHOR INSTITUTIONS
Michigan Municipal League
September 23, 2009
Examining the Relationship
• Anchors’ role in the intellectual
life of cities is well understood
– Relationship with
community/city/region has shifted
from Town-Gown to Economic
Engine
– Today commonly identified as part
of a city’s narrative and a point of
civic pride
• Less understood:
– Economic impact
– Industry and business creation
– How they shape the built
environment
– Influence the Social Fabric at the
Understanding the
Interdependencies
• The business of Higher Education:
–
–
–
–
Employment Base
Procurement of Goods
Capital Investment
Generator of Service Economy
• Institutions are major land and property
owners
• Institutions attract significant research
funding
• Impact both supply and demand side of real
estate
Anchor Strategies
• Community Builders
• Planners and
Developers
• Engines for Driving
Economic Growth
A Community Builder
Dr. Martin Luther King Library, San Jose State
University
Dr. Martin Luther King Library,
San Jose
 The King Library is the library for San
José State University and the Main
Branch of the City of San José Library
System
 Opened August 1, 2003
 Project cost of $177.5 million was
shared by the State of California, the
City of San José Redevelopment
Authority, San José State University,
and private fundraising
Planner / Developer
The University of Pennsylvania
Penn in the early 90’s
By the early 1990’s West Philadelphia and
the University faced a multitude of problems
– Crime
– Migration to Center City
– Alienation from community
– Deteriorating neighborhood
…and moving forward
By rediscovering its historic
relationship with the City, Penn
energized the full potential of
its academic and institutional
resources to both contribute to
a great city and sustain a
vibrant urban campus.
Building on a shared vision
Penn, along with community
partners, developed the West
Philadelphia Initiatives to improve
the University City neighborhood:
– Make neighborhoods safe and secure
– Attract a year-round housing
community
– Develop destinations for shopping,
dining, and entertainment
– Invest in public education
– Integrate the Campus into the urban
fabric
Mixed Use And Retail
The University has embraced a
strategy to attract a diverse mix
of businesses to campus
•
University Square:
300,000 sf, $90 million mixed-use
development composed of national
retailers
•
40th Street:
a retail corridor connecting campus
and community, built around a mix of
local businesses, community
amenities, international cuisine, and
cultural and entertainment venues
Market Rate and Student Housing
•
•
•
•
Left Bank, $70 million
Domus, $100 million
The Hub, $23.5 million
3900 walnut, $75 million
Commercial and Entertainment
 The Bridge Cinema, $53
million
 Translational Research
Laboratory, $75 million
 WXPN / World Café,
$13 million
An Engine for Economic Growth
Detroit Neighborhood Anchors, Detroit, Michigan
Context
• Detroit needs a new strategy to address
disinvestment and deteriorating socio-economic
conditions
• Foundations have assumed a leadership role in
neighborhood sustainability and revitalization
• Right-sizing will reduce the City’s footprint, requiring
the identification of viable districts
• Declining public, private, and philanthropic resources
requires a more effective decision-making process
• Despite such challenges, anchor institutions continue
to exhibit stability and growth
HIGHER EDUCATION
Lewis CollegeMarygrove
of Business College
University of
Detroit - Mercy
Wayne County
Community College
(Eastern Campus)
Wayne County
Community College
(Northwest Campus)
College for
Creative Studies
UDM School of
Dentistry
WCCC
Wayne State (Downtown
University
Campus)
UDM
School of
Law
STUDENTS
~300
4,652
2,756
~3,500
31,016
1,358
~3,500
736
355
~3,500
Total:
51,673 students
Sources: University
representatives &
websites, IPEDS
HEALTHCARE
DMC SinaiGrace Hospital
Detroit Hope
Hospital
Henry Ford
Hospital System
St. John /
Conner Creek
Village
St. John Hospital
& Medical Center
Detroit Medical St. John Detroit
Center
Riverview Hospital
HOSPITAL BEDS
804
404
~120
751
1,300
Sources: Hospital
representatives and
websites, American
Hospital Association,
U3 Ventures
modeling
Total:
3,379 beds
EMPLOYMENT
~90
~720
5,036
2,432
204
~230
~720
~230
450
9,532
8,115
8,045
~60
~110
~230
Sources: Hospital &
University representatives
and websites, IPEDS,
American Hospital
Association, U3 Ventures
modeling
Total Direct
Employment:
36,200 Employees
OPERATING BUDGET
_~$2
$84
$508
$331
$34
~$20
~$127
~$20
$33
$1,276
$2,060
$1,740
~$10
~$6
~$20
Sources: Hospital &
University representatives
and websites, IPEDS,
American Hospital
Association, U3 Ventures
modeling
Total Direct Expense:
$6.4 Billion
STUDENT RESIDENTIAL
CAPTURE
• Analyzed three institutions:
– Marygrove College
– University of Detroit – Mercy
– Wayne State University
Students
Employees
39,094
2,725
% living in Detroit
34%
30%
% living 1 mile from
Campus
13%
9%
Total Number
• Over 32,000 students and employees living outside
of Detroit
• Represents $211 million in discretionary income
leaked outside city limits
GOODS AND SERVICES
PURCHASED
• Anaylzed three major Detroit anchors:
– Wayne State University
– Detroit Medical Center
– Henry Ford Hospital
• All goods and services purchased:
$1.8
Billion
• Purchased in Detroit:
$257
Million
• 84% of all purchases leaked outside of Detroit
HIGHER EDUCATION
REGIONAL POPULATION
(July 1, 2005)
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Source: Impact of Higher Education in Greater Philadelphia by Select Greater
Philadelphia (2007)
TOTAL ENROLLMENT
(2005/06)
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007) – Derived from IPEDS
BACHELOR’S DEGREES OR HIGHER AWARDED
(2004/05)
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007) – Derived from IPEDS
R&D FUNDING PER STUDENT
(Federal, State and Local, Industry, and other, in millions – 2005/06)
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007) Derived from National Science
Foundation
CORE EXPENDITURES PER
STUDENT
RANK
(University operating expenses in millions 2005/06)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007) – Derived from IPEDS &
Surveys
% OF STUDENTS FULL-TIME
(2005/06)
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Source: Impact of Higher Education in Greater Philadelphia by Select Greater Philadelphia (2007) – Derived from IPEDS
HEALTHCARE
Population
Michigan
10,000,000
Detroit Metro
4,425,000
Wayne County
City of Detroit
1,950,000
912,000
9% of Michigan's
Population
Source: Detroit Medical institution Representatives; American Hospital Association
HEALTHCARE
Hospital Beds
Michigan
25,540
Detroit Metro
10,720
Wayne County
City of Detroit
5,212
3,379
13% of Michigan's
Hospital Beds
Source: Detroit Medical institution Representatives; American Hospital Association
HEALTHCARE
Hospital Employees
Michigan
164,300
Detroit Metro
Wayne County
City of Detroit
67,130
34,700
25,900
16% of Michigan's Hospital
Employees
Source: Detroit Medical institution Representatives; American Hospital Association
HEALTHCARE
Operating Budget (in millions)
Michigan
$21,200
Detroit Metro
Wayne County
City of Detroit
$9,825
$5,510
$4,275
20% of Michigan's Hospital
Budget
Source: Detroit Medical institution Representatives; American Hospital Association
EXAMPLE: MIDTOWN ANCHOR DISTRICT
Detroit:
Midtown
Cleveland:
University
Circle
Pittsburgh:
Oakland
Indianapolis
Canal
District
EXAMPLE: MIDTOWN ANCHOR DISTRICT
INPUTS
Ed’s
12,451
32,300
40,805
70%
Med’s 485,404
524,533
536,180
77%
Culture 550,000
Population
1,800,000
5,231
19,285
82%
OUTPUTS
Density
100%
22,458
6,750
8,600
26,000
10%
Income $21,500
30,100
0%
Age
36
23
0%
Education
30%
0%
63%
RECOMMENDATIONS
• Within the anchor districts, programs to “ live, buy and hire local”
should be initiated and institutionalized
– definition, sizing and institutionalizing of local programs within each anchor
– creating a sustainable structure to collaborate between anchors
– provide an infrastructure of support through CDCs to meet the demand
generated by Local Programs
• Anchor district projects must be managed and coordinated
holistically
– institutional changes
– physical interventions
– comprehensive set of support services
• Midtown has the greatest potential to redefine Detroit with
eventual economic benefit for all neighborhoods
Leveraging Local Impact
• Live Local, Buy Local, Hire Local
• Creating desirable neighborhoods
• Increasing economic impact
– 7% of total vendors from Detroit
– 16% of dollars spent with vendors from Detroit
• Increasing capture in Detroit means
– $28 million with 10% increase
– $71 million with 25% increase
– $142 million with 50% increase
Conclusion
Engaged anchors form a strong and mutually beneficial
bond with neighborhoods and cities
 For the anchor, engagement
 helps produce more enlightened community
 enhances the opportunity for “real and impact-ful”
institution
 provides greater opportunity to disseminate its intellectual
discourse to the public
 For a City, an engaged institution
 anchors a neighborhood providing a long term and
sustainable employer, developer and citizen
 creates a unique district that integrates academic life in
the public realm