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The good consulting firms share their ideas, their perspective, their experience. The very best firms also participate in the implementation of strategies and support their clients through the end of the assignment and beyond. To that end, BurnsideAnalytics is passionate about developing a partner mentality with each of our clients to the successful conclusion of each project.
We also believe we are different in how we think, how we explore and how we share our experiences. And this hybrid website/blog is an example of our creative approach to how we will market the firm and best serve our clients.
With the simple navigation to the left, you can access general information about our services and experience. And below, you can participate in a dialog with us on the state of economic development and the commercial real estate industry and share your own experiences as well. Thanks in advance for your participation, and feel free to contact me at any time.
What Next?
None of us have to be brain surgeons to figure out that the economy is declining bit by bit. Every week brings news of higher unemployment and more business failures. Main Streets across the country are seeing more vacancy signs than open signs ….Foreclosure, for sale, for rent, going out of business sale…signs of the times.
Optimists think we’ll be through the worst of this by year end. Pessimists say it looks more like 2013. I’m neither of those, I’m a realist.
As a realist I don’t think time will bring us through anything, I think we have to steer our own paths through the economic downturn. We have to take the wheel and set a course.
In the world of real estate and economic development we’re dependent on business growth to fill our buildings and create jobs for our communities. There is little to no growth now, so what are we to do? What are our next steps?
Change is happening all around us and it’s up to us to change and adapt with the times. On the economic development front we have to work harder than ever to compete for the few investment projects out there. We have to develop business plans and strategies that make us more relevant to today’s realities.
The circumstances and extent of our situation are just beginning to reveal themselves. We’re trying to figure out what industries are relevant. What was true yesterday isn’t today –what are the realities? How are we going to adapt and move away from roles that aren’t relevant anymore to reposition our industry, our professions, and ourselves.
In economic development we’ve typically acted as facilitators. In this tough new world, we have to do more than facilitate, we have to find ways to attract businesses to our communities.
This is an overused analogy, but we have to move away from being nurturers to hunters.
To do that, we have to create assets in our community that will give business a reason for coming; we have to create the bait.
Here are my thoughts on the steps you need to take to become a successful hunter:
1. Throw out your old plan;
2. Re-think how you think about ED and Business attraction (hunter vs. facilitator)
3. Confirm your community’s attributes –do a community SWOT analysis and know what you’re selling;
4. Keep track of your competition –know what they’re offering and what their propositions are…do a SWOT for them so you know their strengths and weaknesses;
5. Make business development calls on targeted industries and companies EVERY DAY;
6. Be aggressive;
7. Research, research, research –who is doing what, why are they doing it, and where are they doing it;
8. Take a sales training course – you are in sales;
9. Say hi to your local commercial real estate brokerage professionals and the site selection consultant industry – reconnect with your multipliers and intermediaries;
10. Talk to the industries already operating in your community. Find out about their issues and help them address them –keep what you already have.
Everything we do, it’s all about making money. It’s all about margins. We have to attract businesses with assets that make them more competitive and make them more money. Simple…make them more profitable and they will come. Work with your existing industries to overcome their issues and increase profits, and they will stay.
So, when everyone asks what’s coming next, the answer is nothing. Nothing is coming. If you want something you have to get out there and get it. You have to make yourself competitive, as an employee, as a business, as a city, region, or state. No one is going to give you anything, you have to compete for everything.
I know it sounds cutthroat and somewhat dire, but these are the days we’re living in. Things are dire and if your community wants to come out on top, you have to move away from positioning what you have to making what you have more attractive to perspective buyers.
The Saturday edition (10-18-2008) of The Cleveland Plain Dealer sports section featured two articles, ‘Tough to Tackle and ‘Football at CSU? Wrong Idea,’ that dealt with CSU’s president Michael Schwartz’s recent announcement that he would like to see the school develop a football program. President Schwartz is one of the brightest and clear thinking people in Northeast Ohio. His opinions and ideas merit full debate.
A doable initiative? Maybe not and maybe yes. Predictably “Buzz Kill Gazette” aka the PD shot the idea down out of hand.
I believe for the reasons described in my letter to the PD’s writers that the idea is worth exploring. I thought my Cleveland readers might be interested. I would also invite anyone who has any thoughts on the subject (supportive or otherwise) to email me. Below is a copy of my letter to the PD:
"Good morning Terry/Bill. (Bill, I hope you remember me from your business column days and when I was running the Colliers O/M Company)
Regarding your respective columns this morning:
A CSU Football program is worth exploring if you look at it from more than just another athletic program perspective. Consider the following:
1-Schloraships/Jobs/Careers. CSU can partner with local and regional business to create a program where a local business provides all or part of the scholarship funds for a specific athlete. In return the student/athlete interns at the company during the summers. The company and student create a true relationship in which the student is ready to enter the company’s workforce when he graduates. Upon graduation the student goes to work for the company, the company gains a trained and “ready to contribute”
employee, Cleveland gets to keep our most needed assets (young, educated citizen), and we combat ‘Brain Drain”.
I would be willing to commit my firm to an annual “scholarship chair” and I am very confident there are other companies who would jump at this time of partnership investment opportunity.
Also, see the Kalamazoo Promise as a template for this type of business, institution, and civic partnership
2-Economic Development. Contrary to what is generally believed there are land sites available and close to CSU. The Midtown Corridor would be a perfect, close to campus alternative if there is not an on campus solution.
Driving to work on Chester Avenue I have many times envisioned a sports complex of some sort that would be an indication of vitality, growth, energy and gateway to the Campus and the City.
Imagine thousands of people on the Euclid Silver Line on five to six Saturdays in the fall. The impact on the development of the Corridor would be significant. My guess is that the Cleveland Clinic, University Hospitals, the business and entertainment venues on and around Euclid Avenue would love to see the increased activity. (The hospitals have sports medicine programs that might create partnership opportunities i.e. see the Cavaliers and Clinic practice facility in Independence)
More student equals more dorm rooms, more meals, more jobs, more professors who need to buy more homes, ……….Higher Education is a recession proof industry that can be counted on to support the economy year in and year out.
3-Imnproving Cleveland Schools. Imagine if we can incent 15-20 high school student/athletes to stay in school, achieve academic success, and graduate because we demonstrate the benefits of graduating and participating in the Scholarship/Career concept outlined above.
4-Basketball is King. Yes it is and that can only help. The emergence of the Basketball Program lends credibility and momentum to the idea of a football program at CSU. Leverage its success.
5- Northeast Ohio is rich with good athletes. My guess is that CSU would be able to put a competitive team on the field within a short period of time due to the deep pool of talent that lives within 100 miles of the CSU Campus.
6. Civic Pride and creating something special. CSU is a miracle that is developing right before our very eyes. Drive (or better yet, walk) around the campus. CSU is an economic engine for the City. Also, there is something special about the college campus atmosphere that feels wonderfully exhilarating. We have that in part with CSU. If a football program attracts more students( residential and commuter), increases a sense ownership and pride, drives economic development, and most importantly attracts and retains our young people we are making a huge mistake by dismissing the concept out of hand. It just might be a great idea.
Remember, this is not only about a football program. The objective is creating a stronger, sustainable community and an economic and educational asset that is vital to Cleveland.
I would love to lend my support in whatever way I can."
Regards.
Dennis R. Burnside
President and CEO
www.BurnsideAnalytics.com
I’m writing this post from LaGuardia Airport in New York. My plane is two hours delayed so I have empty time to fill. I’m not complaining since this gives the chance to write this now as opposed to procrastinating as I usually do.
 This issue is going to be a stream of consciousness so forgive my rambling style.
First, I am in NYC to moderate a workshop on Foreign Investment Promotion which is for the benefit of those EDO’s who are focusing on attracting foreign investment (American $$ in this case) to their respective countries.
The presentors included representatives of Invest in America (Jennifer Derstine), OCO Global ( Keterina Sokolova), Deloitte Consulting ( Larry Moretti) and The Pont Group (Shirar O’Connor) who hosted the event. There was a tremendous amount of helpful ideas and examples shared by the speakers. The audience seemed generally engaed and attentive throughout the workshop.
Almost all of the 20-25 attendees where from non- USA EDO’s and it was a wonderful opportunity for me to get to know the group.
If you would like to learn more details about the content please feel free to contact me and I will forward to you the PDF’s and/or Power Points.
While I was in New York I experienced the following:
- What it’s like to be in the city when United Nations is in General Assembly. The energy level is off the charts, hotels double their rack rates and it takes twice as long to get from point A to point B. having said that it’s still the most exciting city in the world
- I discovered a 12,000 square foot two story M&M’s retail shop. Every item (from bedding to picture frames) has the M&M logo and colors attached. The store was jammed with people who were buying all sorts of items.
- Finally, I took the time to cross the Brooklyn Bridge. I have never ventured across this magnificent structure and was compelled to do so after reading The Great Bridge, by David McCullough. Reading the book gave provided me w whole new appreciation for the genius, physical suffering, corruption, vision and sheer determination that was part of the Bridge’s saga. Great Bridge! Great Read!
 By now you’ve probably picked up on the fact that I have a great interest in urbanism and the dynamics of downtowns.
I like to contemplate urban centers and the places where people collect…where they work, live, and congregate.
There has been a lot written about the future expansion of major cities and metropolitans, and the same can be said for small towns and cities.
Small towns, especially their downtown districts, have always had a strong sense of place and belonging. In years past, downtowns and main street were the places where people gathered…brunch after church and shopping at the town pharmacy. There was the soda shop and the shoe store. They were places where you couldn’t walk down the street without running into someone you knew.
The seventies, eighties, and nineties saw downtown America decline. Shopping and living patterns changed, and people were drawn out of cities to the shopping malls and sprawl of suburbia. Many of America’s downtowns died, and are just now being resuscitated.
A few weeks ago I spent sometime touring one of these typically American towns in the Mid-West, Wapakoneta, Ohio. I was lucky enough to be shown around town by Greg Myers, the executive director of Wapakoneta’s economic development council. Wapakoneta has a population of about 10,000 and is the county seat, with a total population of 50,000. The county and region have a great history…bones of Mastodons were found there and it has a rich and interesting Indian history. In fact, Wapakoneta gets its name and unconventional street patterns from its Indian heritage. Several of the town’s streets follow old Indian trails that crossed the area. As Greg said, “Sometimes it makes getting around the town interesting.”
Speaking to Greg brought me back in time to when I was growing up. He spoke about his town with pride and anecdotes that conjured up images of days gone by.
Greg described shopping downtown as a youngster, when Christmas carols were broadcast around town and everyone knew each other. Those times changed for Wapakoneta when people started shopping at big-box retailers in Dayton and began frequenting shopping malls rather than their local shops. Shopping patterns changed so much, that people traveled as far as 50 miles to go to malls.
Well, I’m pleased to say that the days of blighted town centers seem to be coming to an end as communities like Wapakoneta make great efforts to bring people and businesses back downtown.
There is a movement sweeping America as local governments across the country are looking back in time to rediscover what made their towns unique and inspiring. They’re focusing on economic development, real estate development and regeneration. People are once again looking for that traditional American experience and an authentic life-style that harkens back to mid-twentieth century values.
I for one am thrilled to be commenting on this trend. I believe in downtown and I’m glad to be providing consulting services to American towns who are implementing revitalization programs. If you’re going through this process, please give me a call…I’d love to be part of it.
I have to admit, real estate and economic development are my passions and why I’ve centered my career and now my business around these disciplines. I believe in ‘Urbanism’, the energy, clusters of ideas, people, and the dynamism of urban cores.
I believe that urban centers such as Chicago, New York, Tokyo, and London are models of what all cities aspire to be and I think urban areas will only continue to grow.
Pick up any newspaper in any metro area in the country and there is a real estate section that touts the benefits of living in that particular urban center. Urbanites love their cities.
All of the business journals and white papers agree; competition for talent and skilled labor is going to be one of the major drivers of business in the coming decades. Where do people want to live? Everything I’ve read lately indicates that the popularity of major urban centers has not diminished. They still attract people by the throngs and the type of people that companies want to hire…creative and talented.
I read an article by Haya El Nasser in USA Today, ‘Population Boom Spawns Super Cities’. In his article, El Nasser writes that census experts predict the US population will grow by 125 million inhabitants by 2050. The increase in population, combined with current development patterns indicate that more people will settle around metropolitan areas, along interstate highways, and near major airports. Giant urban areas are being formed. They'll form giant urban areas linked by common- culture, economy, geography and ecology.
El Nasser uses the example of Ardmore, Oklahoma, which is using the following statement in their promotional materials and on their website, “Dallas is coming our way”.
 He goes on to say, “Because in a nation where the population is booming, development is sprawling and the economy is globalizing, the most distant places are becoming the closest of neighbors.”
Big cities are bumping into small towns, stretching into rural areas, gobbling up farmland and merging into big urban blobs: megapolitan areas.
Ten megapolitan areas have more than 10 million residents or will have that many by 2040, according to a new study by Virginia Tech. They extend into 35 states and include parts of every state east of the Mississippi River except Vermont. They incorporate less than a fifth of the land area in the continental USA but house more than two-thirds of the population. Four states are completely megapolitan: Connecticut, Delaware, New Jersey and Rhode Island.
Researchers at the University of Pennsylvania's Department of City and Regional Planning predict that by 2050, more than 300 million people, about 70% of the population, will live in eight "super city" regions that today have about 175 million people.
The Boston-New York-Washington, D.C., corridor in the congested Northeast has been recognized as an unofficial megalopolis since the 1960s. But the interstate highway system, air travel and population growth are creating connections in less dense but fast-growing parts of the country.
Dallas may be 100 miles away from Ardmore and across the state line, but it is inextricably connected to this old ranching and oil town and hundreds of other communities along Interstate 35 from San Antonio to Kansas City.
Michelin, Circuit City, Dot Foods, Dollar General and Best Buy are setting up plants and large distribution centers here because of cheap land (off I-35), a prime location for shipment of goods because it's on a prime route from Mexico to Canada. They're here also because of easy access to the Dallas metropolitan area and its international airport to the south and Oklahoma City to the north. But they could have settled just as easily in the next town over.
"Nobody knows where Ardmore is," says Wes Stucky, president and CEO of the local chamber and Ardmore Development Authority.
But they know Dallas, Oklahoma City and I-35, and they're all part of one megapolitan area.”
It was a very interesting article and I’m sure you’ve figured out why I find it so interesting and relevant to what we do in the economic development and real estate professions. Megapolitans will help reshape the sales propositions for many economic development groups. Your town or city may be isolated on a highway between Indianapolis and Louisville, but you may find that the fact that you’re an intersection for several major urban hubs is your new selling point –your town may be an integral part of your region’s megapolitan.
As I’ve driven through some of the smaller Northeastern cities such as Poughkeepsie, New York and Hartford, Connecticut, I’ve always thought, “Wow, these cities are perfectly located, close to New York and Boston.” They definitely are; their industries and the mix of the sectors calling these cities home, feed directly into the larger markets of Boston and New York; financial services, insurance, etc.
One last interesting piece of information to leave you with; El Nasser also lists a group of metro areas he calls “Monster Areas” in his article. One of them is the “1-35 Corridor”, which includes Kansas City, Oklahoma City, Dallas, and San Antonio. Research indicates that this megapolitan will have a population of 15.3 million and will be known as a high-tech hub.
Here is a link to his article…it’s definitely worth a read.
http://www.usatoday.com/news/nation/2005-07-10-megacities_x.htm
More to come on Urbanism.....stay tuned!
DB
I’m not an economic development professional. I run a digital advertising and technology agency, DigiKnow, with 73 employees in Cleveland, Columbus and Buenos Aires.
I’m writing this post to share a success story. Not necessarily a success story about DigiKnow (although it can be said that it is). Rather, this is a success story about the home of our Cleveland Headquarters: Tyler Village.
Tyler Village is a 1.2 million square foot mixed used development on the east side of Cleveland. It is Cleveland’s largest ever redevelopment project and is owned and managed by Graystone Properties.
We came to know the people at Tyler Village through our real estate advisor Jeff Cristal at Grubb Ellis.  We had searched the suburbs near our previous location in Beachwood, Ohio, but high rents, and limited offerings for a creative company like ours, took our exploration into the “old” neighborhoods. I grew up in Cleveland and, as a young man, worked summer jobs in the industrial bowels of the city. The part of the city that’s home to Tyler Village.
Our first visit to Tyler Village revealed not a village, but a big collection of old industrial building previously home to the Tyler Elevator Company. In the early and mid parts of the 20th century, this space was teeming with hundreds of factory workers carrying lunch boxes, punching clocks, grinding out a living. On our first visit, you could almost feel their ghosts escort you through the complex.
But, believe it or not, if you let your mind open, you could see possibility. Or, at least, the developer – and my partners and I – could. And that’s the reason for this post on a site for an economic development consultant…
The developers had a vision for this amalgamation of old businesses. (All developers do, of course.) They just needed the right tenant to kick it off, a company who’s owners not only shared the dream, but who had the right “stuff” to help fuel it.
Developers of space located in old but emerging parts of a city needs tenants who aren’t afraid to be first movers. Tenants who can inject unexpected ideas into the design of the space. Tenants who can attract publicity. Tenants who can attract visitors to casually explore and say to themselves, “We could do something cool here too.”
About 15 months ago, we signed on to take a full floor of building 44 of Tyler Village. In that 15 months more than 40 companies have toured our space, and we have generated some nice press for the ourselves and the Village. More importantly, since our move, a number of companies have said “We could do something cool here too.” Taking on the 3rd, 6th and 7th floors of this building alone, not to mention many others in other parts of this amazing village.
So what does all of this have do to with economic development? To cities/regions looking to attract businesses, my advice, as one of those business, is to listen to the dreams of developers looking to re-energize a neighborhood – but work with them to find the right “spark” to light the fire of growth. And those sparks aren’t always big companies. Sometimes they’re little companies operating nearby.
Today I’m wearing my global economic development hat, so bear with me as I tell you a bit about some of the things I’ve been contemplating.
I don’t know about you, but I’m fascinated by the economic changes that are happening in the world today. Change is coming at us fast and hard, and it is the job of consultants like me to translate this change for my clients. It’s my job to determine how these changes affect their organizations and the way they approach economic promotion. Most of this change is tied to globalizat ion.
On any given day, I'm bombarded with massive quantities of information, I analyze it, and I ask the simple question, “How does this relate to my clients?”
Are there and opportunities for my clients or does this adversely affect them?
The information I process ranges from headlines in the Financial Times which report that one of the Middle East’s largest private equity companies, Dubai-based Abraaj Capital, is working with the United Arab Emirates government to buy farm land in Pakistan. The investment is part of their ‘food security’ strategy.
Ok, why do they have a ‘food security’ strategy? Why buy farmland in Pakistan? Come to find out, the United Arab Emirates imports over 85% of their food. Just as we’re searching for new energy and oil sources, the UAE has its own commodity strategy for food.
I work with a number of rural communities that don’t have many economic assets to promote to potential investors, but they do have land and they do have a farming legacy. Many of the farms in the region were small and failed. A big farming investor could revitalize a region with an agricultural offering…might be interesting.
Almost any proposition in the U.S. is interesting for foreign companies right now because of the de-valued dollar.
Most analysts believe that European companies will move quickly to take advantage of currency related cash savings. Greenfield investment in the U.S. is expected to jump significantly in 2008/09. Greenfield investment is funded by corporate retained profits, so most likely, it will remain unscathed by credit market woes, increasing direct investment activity. Many believe that there is no better time for foreign companies to invest in America.
Last year, foreign direct investment into the U.S. grew last year to almost 8% of the global market. According to OCO Monitor, the United States attracted 786 foreign investment projects.
The U.S. economy is slowing, there’s no doubt about it. The counsel I give my clients is to revisit their international strategies. Germany, the United Kingdom, and France are the biggest investors in the U.S. -you have to remain competitive, even if the playing field has moved off-shore.
There it is again, globalization. International is where it is at for now. Give me a call and let’s talk about how we can work together to get your foreign direct investment strategy off the ground.
 Las Vegas may be experiencing an unwanted trend in housing foreclosures, but the city’s Office of Business Development and Director of Business Development Scott Adams is up to his chin with great development projects.
I am especially interested in a mixed-use project Adams is heading that is a picture of creative thinking. The city of Las Vegas acts as its’ own redevelopment agency and in the case of planting a sure-to-please tourist attraction that will tap into a downtown area two blocks from “Vintage Vegas”.
The Mob Museum – planned for a city-owned block of downtown property – will bwe located on Stewart Avenue between Casino Center and 4th Street and will celebrate Las Vegas’ rich Mob history. This creative plan is spring boarding off the 20-million annual tourists who visit downtown Las Vegas.
“Vintage Vegas” represents the birthplace of gaming in 1930’s Nevada. When casino development began its spread and moved down the boulevard, like so many suburban shifts, the life was sucked out of downtown Vegas.
The Fremont Experience – an exciting, thriving improvement district features the world’s largest LED screen, historic casinos and soon, just two blocks away, the Mob Museum. Adams explains that unlike other museum projects that are built first and then attract development, this project is rising up inside an already established tourist area.
The Mob Museum will be housed in a historic post office, one of the few remaining original downtown buildings. This mixed-used development plan includes the surrounding land. The site currently houses a bus terminal and a scarcely maintained and problematic city park – a favorite night spot for the homeless. The bus terminal is being relocated under a separate project.
The Post Office, which will be the focal point of this project, sits directly across the street from the Lady Luck Casino, currently undergoing renovation by CIM – a nationally recognized Los Angeles, CA investment and development firm.
The city has a financial consultant evaluating the prospect of a fall $50 million bond issue to find the museum and surrounding streetscape. There has been some demolition and small renovations, but once that funding is secured the city and museum developers are primed to immediately roll out what they expect to be an 18-month project.
We paln on following the progress of this project, particulalrly the Mob Museum so check back regularly.
A very good friend of mine , Jack Kleinhenz ,teaches a class at Case Western Reserve University located in Cleveland, Ohio. It's a great school with a wonderful Economic Studies program. Jack teaches an Urban Economics class to undergraduates who are in their junior and senior years. I was asked to share my commercial real estate experience and expertise and how I thought the industry relates to Economic Development and urban (Central Business District - CBD) dynamics.
In preparing for the class, I presumed that everyone understood that CBD's were vital to a city's and even a regions economy. I also thought that the students would intuitively understand the concept of a vital CBD and regional health.
I was incorrect. It was not so much that Jack's class disagreed with my position it was more that they had not connected the relationship. I point this out as I am concerned that as more of our children live, shop , work and socialize in suburban communities they are never exposed to and ultimately are unable to appreciate the importance of our cities. I say this knowing that there are many people who believe that our cities are becoming irrelevant in any event. I happen to think the opposite is true.
The student's positions were interesting and articulated clearly, but most did not have the experience and exposure to real world economics and what determines a healthy regional economy. On the other hand, many expressed their interest in working in and living in places like New York, Chicago and Boston after graduating. Maybe they will better understand what makes Chicagoland , Greater Boston and Greater New York the main economic driver for those regions once they have the chance to participate in those respective economies.
I am pleased to announce two new clients that have retained BurnsideAnalytics since the New Year has begun.
The Detroit office of Grubb and Ellis Company has retained BA to help them identify users of a specialized manufacturing facility in Chesterfield Township near Detroit.The facility is unique in it's size, large percentage of office space, and the heavy crane capacity. BA assisted the Grubb and Ellis professionals, Jack Coury and Bob Pagano, to develop a profile of the most likely user industry types. From that first step BA identified specific firms that we suggested as targets because of certain events occurring within those companies. This process has generated nearly 700 targeted firms to this point. Jack and Bob have just begun the process of contacting these firms on a priority basis.
BA has also been engaged the St Clair Superior Development Corporation (Cleveland , Ohio) to support their real estate market research capacity. BA is providing data that will enable the CDC to better  market their community and provide important information to it's members and investors. The goal is to enable St Clair Superior to be able to keep an accurate data base of buildings, vacancy, rental rates, available land and space , ownership and real estate values. The final phase of the assignment will be to identify industry clusters within the community.
Stay tuned as we continue to be engaged by other companies nationwide. Also, check out our client testimonials from companies and clients we have done work for in the past.
The International Economic Development Council (IEDC) held it's 2008 Leadership Summit this past week in Orlando. The Conference was well worth the investment for many reasons. First, the number of attendees is much less than the the Annual Conference which make for a more intimate experience. Next, those who do attend are normally the more experienced and senior ED's and more often than not are in Leadership positions of their respective organizations. The fact that the Conference was held in Orlando where the weather was just about perfect made for a great three days.
The most compelling part of the conference for me was my participation in a Economic Development Research Partners Program (EDRP)focusing on Globalization. The project's title is " Road map to Globalization". The stated objective of the project is as follows:
- Identify the core components of Globalization through an economic development lens
- Provide core facts and figures that demonstrate the urgency of this challenge
- Highlight the opportunities and challenges that Globalization poses to EDO's
The participants in the EDRP are all highly experienced and skilled ED professionals whose communities are highly sensitive to the Globalization phenomenon. More importantly ,they are committed to positioning their EDO's to benefit from the dramatic changes they believe will impact the way all of us do business in a global marketplace.
I look forward to my ongoing participation in the EDRP and when possible I will share details of our findings and recommendations.
So here I am spending a relaxing afternoon wandering my local book store with my lovely wife when I spy the November 2007 Details Magazine; a trendy men’s style publication.
Now I’m not the kind of guy to go for this type of reading material and I would never buy a magazine with Ben Affleck’s face on the cover, but the teaser title demanded I stop and pick up the rag…I mean mag.
WHY THE SUBURBS ARE COOLER THAN DOWNTOWN
This kind of thing really gets me. It’s yet one more poorly researched, cutesy article based on little fact that flies in the face of reality.
I flipped to the story, written by David Hochman. He makes a few points hidden inside a lot of BS. His sources are a few former yuppies and author, Joel Kotkin who he quotes,
“Cities are becoming less interesting and the suburbs are increasingly where the action is. Cities have become homogenized, inhospitable, and expensive beyond belief,”
Basically Hochman draws the following conclusions:
- The things we thought we needed cities for (unique restaurants, boutiques, entertainment) are being rebuilt in long-ignored suburban outposts with cool arts facilities and retro-chic cafes.
- American cities are becoming perversely suburban; downtowns are becoming sanitized by wealthy residents who are pricing out the stragglers and are brining in block after block of Equinoxes, Starbucks and Jamba Juices.
Here’s where a little research would have served the article well. In June 2006 CNNMoney.com reported: People are moving back to the city. The trend, which began in the late 1990s, marks a reversal of the post-war urban flight to the suburbs, and is strengthening.
CNN staff writer, Les Christie reports that cities are hot again and that after years of urban flight, Americans are finding the appeal of places like Philadelphia, Nashville and Seattle.
John McIlwain, senior fellow for housing at the Urban Land Institute says, "I think [this trend] is likely to continue for the next 15 years. Boomers are aging and people think of cities as a good place to retire to, as well as to continue to work." This from a guy who studies urban issues – I think he’s a reliable source.
At a teleconference last year of Coldwell Banker real estate brokers from around the country, the theme was repeated over and over: People are moving back downtown.
Professionals in the real estate field watch these trends carefully, and report the increase in city residents are from three demographics; retirees, empty nesters and young professionals. All three groups benefit from some of the same aspects of city living: little to no commute; carefree living; and access to great restaurants (a short walk or a phone call away) and preferred activities, like movies, theater, concerts, professional sports, galleries and clubs. Real estate professionals – their job is to know the housing market, are saying the complete opposite of what Hochman reports in Details.
My counsel is simple; don’t look to a men’s style magazine for real estate guidance – that read is better suited for your wardrobe and hair gel advice.
While at the International Economic Development Council’s annual conference I sat in on a truly intriguing presentation by Kelly R. Lee, Executive Vice President of Innovation Philadelphia.
Kelly spoke on the Creative Economy, which is economic development based on ideas generated by human capital. It produces goods and services that create, teach, generate technical innovation, drive design and cultivate change.
The Creative Economy, comprised of for-profit and non-profit sectors, is being recognized nationally and internationally as a major economic generator and as essential to any region’s growth in all industries. You can read more about it in Richard Florida’s book The Rise of the Creative Class.
So how is Greater Philadelphia taking advantage of the Creative Capital to attract and retain young professional knowledge workers, and to generate the innovative ideas that will define Philadelphia’s future?
Simple – Innovation Philadelphia has a plan. They started with a strategic priority to establish Philadelphia’s Creative Economy as a global hub for creative enterprises, services, and talent by focusing on the for-profit, technology-driven creative industries in their reqion, including:
- Architecture
Communications Design & merchandising Digital media Engineering Fashion design Film & video production Graphic arts Information technology
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- Interior & industrial design
Marketing Multimedia design - Music production
Photography Planning Product design Software development
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Innovation Philadelphia found that Greater Philadelphia had substantial creative assets that represented significant opportunity for future economic growth:
- For-profit and non-profit creative industries and organizations generate an estimated $44 billion in annual revenue
- The Creative class makes up 32% of the workforce
- There are 23% more art graduate students than the national average
- Since 1992, Philadelphia’s film industry’s economic impact exceeds $750 million
- There are more than 30 Architecture firms, employing over 1,900
- The music industry generates $4.9 billion annually and is responsible for 58,000 job
- Philadelphia employs more than 18,300 technology workers and over 24,000 designers
Last year Innovation Philadelphia convened a Global Creative Economy Summit where entrepreneurs, business leaders, artists, and technology professionals from for-profit and non-profit organizations from the many arts, media, and technology industries came together to exchange ideas and help to create a framework for understanding how the Creative Economy contributes to the economic future of the world.
Together this group strategized on how to make the development of the Creative Economy a priority for regional growth.
In the mean time, using Innovation Philadelphia as a thought and implementation leader ask this question, “How can I leverage the creative economy in my area?” You might be surprised, after doing a little digging, how truly significant this segment is to your region’s overall economic development.
 Zoos are so much more than a place to go and look at animals. Besides the benefit of walking through manicured gardens, spending an hour or two outdoors and sharing time with fascinating creatures, zoos can have a profound economic effect on a community.
Let’s take Cleveland Metroparks Zoo for example. I chose this zoo for several reasons: I love zoos and I love Cleveland Metroparks Zoo in particular; and in the interest of full disclosure I am a trustee of Cleveland Zoological Society, the nonprofit advancement partner for the Zoo.
The Clevealnd Zoological Society is led by Liz Fowler our Exceutive Director ( pictured here on safari). Liz works hand in hand with Steve Taylor the Cleveland Metroparks Zoo Director. It is a wonderful partnership that appears seamless to the community and shares a commonn vision of animal conservation and welfare and economic impact for Northeast Ohio.
Nationally, the Cleveland zoo is a leader in its educational outreach programs and conservation science programs, as well as one of the top 10 zoos in the U.S. for attendance. Regionally, it is one of the best civic assets in Northeast Ohio – accessible to all ages and income levels, and open 363 days a year. In my work as a trustee, corporate leaders tell me the Zoo is a highlight of a Cleveland-area recruitment tour for prospective employees, trailing spouses and families.
Now that I’ve come clean – consider these numbers.
The Cleveland Zoo:
- attracts over 1.2 million annual visitors
- boasts 41,000 member households
- delivers $85 million annual economic impact
- employs 250 FTE’s
- operates a $12 million payroll
- attracts 500 active volunteers
- educates 125,000 students annually through Zoo programming
- ranks 3rd in Northeast Ohio’s visited attractions behind Cedar Point and the Cleveland Indians and ahead of Geauga lake, the Cavaliers and Browns, the art museum, natural history museum and the botanical gardens
In addition, the Cleveland Metroparks Zoo / Cleveland Zoological Society is viewed as a regional asset, adding positively to the resident’s quality of life and is a source of civic pride.
How and where does your zoo fit into your economic development planning? Where do zoo’s rank against other cultural attractions such as museums, entertainment venues and professional sports team in your area?
Perhaps it is time for you to take a fresh look at your zoo and it's impact on your local economy.
To learn more about the best zoos in the U.S., visit aza.org
To learn more about Cleveland: ClevelandZooSociety.org
Over the last few months I have had the opportunity to hear a number of economic development (ED) experts speak to the ways communities can make their respective spheres of influence more attractive to businesses, residents and visitors. The most often asked question:
“How can we best compete in this extremely competitive environment?”
ED professionals, governmental leaders, consultants - they all seem to have similar ideas and opinions. The template is essentially the same no matter who is delivering the message. To be competitive and well positioned for growth and sustainability communities at a minimum must:
- be innovated
- attract talent
- provide distance communication
- provide green space for gathering
- offer a friendly tax environment
- offer affordable housing
- update infrastructure
- ensure quality education at all levels
- leverage local universities
- be clean and safe
- offer livability
- provide a platform for talent connection opportunities
- works toward racial harmony
- provide jobs that other locales cannot
As I thought about this I wondered what is the difference between successful communities and those that fail to meet expectations. I have come to the conclusion that the one consistent theme within the “gets and not gets” is leadership.
- Why does Chicago continue to be one of the world’s greatest cities?
- Why is a small town like Greenville , Michigan looking forward to recovering after the relocation of its major employer?
- Why are Charlotte NC, Denver CO, Grand Rapids, Mi., Salem, Ma., San Jose, Ca. on someone’s "best places to live" list almost always?
Because each of these cities has strong leadership.
- Chicago’s Mayor Daly is the poster child for making the tough decisions, considering only what’s best for his town. The results are clear. The only thing he seems unable to influence is Chicago’s weather. But the climate is either irrelevant or celebrated, whichever attracts visitors and citizens.
- Greenville, Michigan leadership includes the Mayor, a very involved and active DDA, and engaged citizens. After it's major employer decided to relocate 2,700 jobs to Mexico the combined leadership of Greenville decided not to assume a “victim” mentality and instead launched steps to put itself in the position for recovery and growth.
What makes a stellar leader? I will share my thoughts and specific examples soon.
One of the earliest challenges I faced when I decided to start a new company was how to best market BurnsideAnalytics. After much thought and counsel I determined that creating a website would be the best use of my time, energy and $$.
Not a groundbreaking thought, I admit. But there is no disputing that the internet is the marketing window of world's global market. If I want to efficiently and effectively reach my audience - the internet is the best way to go other than personal contact. I set out in search of a website design and marketing firm. After considering a number of service providers I settled on DigiKnow.
What I found was more then I bargained for at DigiKnow. I knew I was going to learn a thing or two, but I was not prepared for the energy and creativity of the DigiKnow folks, especially from the firm's president King Hill.
You are reading this blog because King so strongly urged me to take the road less traveled by those in my business. He shined the light on a tool that would set me apart from my colleagues. And so there is this blog component on my website.
And so here I go. Without the support, encouragement and hand holding from King and his wonderful people I would have not had the foresight to reach a bit further. Ultimately the decision to blog will, I am confident, allow me to be more of a resource to my clients and friends and ultimately put BA in a better position to serve and help those I work for.
I am having a great experience with DigiKnow and I would encourage you to learn more about the firm by visiting their website at www.digiknow.com
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Economic development executives, real estate developers and corporate executives turn to Dennis Burnside when they are considering viable solutions. His proprietary process and systems were developed after a 30+ year career in commercial real estate and economic development. Dennis is available for consulting assignments and as a seminar/conference speaker.
Contact Dennis Burnside
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