1. Homewood Innovation Zone Update Urban Innovation21 is a nonprofit organization that provides a variety incentives (grants, tax incentives, interns, business support services) to businesses to help them grow, create jobs and create wealth for their owners. Our mission is to connect some of our region’s poorest communities to the Innovation Economy. In the past, most of our incentives were just for technology companies that were located in a geographic area that included parts of the Hill District, Downtown, Northside and the Southside sections of Pittsburgh. In January of 2012, we expanded the scope of our work to include providing incentives for non technology business and for businesses in other communities throughout the region. Our economic development approach is in part based upon the Michael Porter “Cluster Creation theory”. We believe that significant wealth can be generated in some of our region’s underserved communities by connecting minority and resident owned businesses to our region’s successful cluster. 1

2. Homewood Innovation Zone Update “[W]here clusters are supported by local businesses, universities and other educational institutions, and communities, advantages accrue to both established and new businesses—and their workers. Established businesses that sell their goods and services across a broader region or around the globe bring new dollars and employment opportunities that then expand the local economy. Fostering innovation among startup companies and established companies in clusters has a multiplier effect for both types of companies and purely local businesses, too, such as restaurants, dry cleaners, and other small retail businesses, all of which provide ‘non-traded' services that are created and consumed within the cluster. Quote from The Geography of Innovation, The Federal Government and the Growth of Regional Innovation Clusters, Jonathan Sallet, Ed Paisley, and Justin Masterman September 2009 2

3. Businesses that Support a Successful Innovation Economy Ecosystem Supply Chain Businesses that Connect to the Innovation Economy Innovation Economy Businesses Most opportunities for Minority and Women owned businesses. Homewood Innovation Zone Update Supporting an Ecosystem that Benefits All Communities 3 Very limited number of Minority and Women owned businesses. More opportunities for African American and Women owned businesses

4. Homewood Innovation Zone Update Supporting an Ecosystem that Benefits All Communities Successful Businesses that Support an Innovation Economy Ecosystem Successful Supply Chain Businesses that Connect to the Innovation Economy Successful Innovation Economy Businesses 4 Increase in Number of Minority and Women Owned Businesses

5. Homewood Innovation Zone Update In October of 2011, we launched a competition for Hill District Based Businesses that can connect to our region’s innovation economy. We have based the Homewood based business competition on that competition. We launched the Homewood grant program on November 30 th with awards to take place in March of 2012. The grants will be awarded to some “start up” businesses and some “existing businesses”. Preference will be given to businesses located or working to start up in a certain section of Homewood. We are looking to help revive the Homewood Business District that is why the zone is built around the Homewood Avenue Corridor. 5

6. Homewood Innovation Zone Update 6

7. In March of 2012, we invited America21 Project to discuss best practices for connecting disconnected communities to successful regional innovation economy initiatives. The series of meetings took place in Homewood and were well attended by foundation representatives, community leaders, business leaders and Homewood residents. We hired a consultant to provide an analysis of the current businesses located in the Homewood Community. From April 2012 – October 2012 Urban Innovation21 participated in a variety of meetings with diverse stakeholders to educate those stakeholders on the need to connect Homewood to our region’s innovation economy. We hired a consultant to direct the activities of the Homewood Innovation Zone On October, we hosted a meeting for Homewood businesses interested in the Homewood Innovation Zone competition. 45 business people attended. On November 30, Urban Innovation21 launched a grant program for “For Profit Businesses” in the Homewood section of Pittsburgh 7

8. Homewood Innovation Zone Update While our incentives are just for “For Profit Businesses” we are working with other nonprofit organizations to create an environment were businesses can grow. We have not decided how many grants will be given but we are looking at several awards that will not be more than $10,000 for each company. Additionally, our Homewood Innovation Zone Program manager and Urban Innovation21 staff will work to connect participating businesses with business support services and the wrap around services they need to create business success. 8

9. Homewood Innovation Zone Update Goals Increase the number of new start-up businesses in Homewood. Provide small grants to some successful existing businesses to help them grow. Connect Homewood Business to existing sources of financing Get other organizations to provide resources and services that will create successful businesses owned by Homewood Residents Increase awareness of and get more Homewood based businesses to use the services of existing business service providers Help the Homewood Community become connected to our city’s successful new economy. 9