1. "WHAT WORKS: SOLUTIONS FOR CITIES Leveraging Your Citys Anchors Mary Kay Leonard, CEO and President Nicki MacManus, Strategy Advisory Practice, ICIC Andrew Frank, Johns Hopkins University March 1, 2012 Follow the discussion live On Twitter @icicorg #WhatWorks

2. Copyright © 2011 ICIC 2 The nation is experiencing the effects of economic decline and cities in The Opportunity 31% of U.S. minority poverty 19% of U.S. poverty 8% of U.S. population 0.1% of U.S. land area CONCENTRATED POVERTY mandates a comprehensive approach

3. Copyright © 2011 ICIC 3 The nation is experiencing the effects of economic decline and cities in The Opportunity REST OF U.S. +5.9M Jobs Since 1998 INNER CITIES -300,000 Jobs Since 1998

4. Percentage of U.S. Employment Universities and Hospitals are the number one employers in two thirds of inner cities nationwide

5. Copyright © 2011 ICIC 5 The nation is experiencing the effects of economic decline and cities in The Opportunity HOSPITALS UNIVERSITIESHOSPITALS ANCHOR INSTITUTIONS are a Major Economic Force in Urban Economies ARTS AND CULTURAL INSTITUTIONS

6. Copyright © 2011 ICIC 6 The nation is experiencing the effects of economic decline and cities in The Opportunity ANCHOR INSTITUTIONS, THE COMMUNITY, AND SHARED VALUE MICHAEL E. PORTER, BISHOP WILLIAM LAWRENCE UNIVERSITY PROFESSOR AT HARVARD BUSINESS SCHOOL

7. Copyright © 2011 ICIC 7 The nation is experiencing the effects of economic decline and cities in The Opportunity FROM COMMUNITY ENGAGEMENT TO CREATING SHARED VALUE Motivated by Moral obligation to help community Service learning and community support at core Focus on community benefits and economic impact reporting Opportunity to drive long-term competitiveness Long-term investments that are integral to core strategy Measure direct impact of activities on anchor and community

8. Copyright © 2011 ICIC 8 ANCHOR INSTITUTIONS AND THE COMMUNITY: Strategic Framework Purchaser Real Estate Developer Employer Workforce Developer Core Service Provider Community Developer Cluster Anchor Offer employment opportunities to local residents Build local community capacity Address local workforce needs Direct institutional purchasing toward local businesses Stimulate growth of related businesses and institutions Tailor core products/ services to serve the community Use real estate development to anchor local economic growth

9. ICICS MISSION IS TO DRIVE ECONOMIC PROSPERITY IN AMERICAS INNER CITIES THROUGH PRIVATE SECTOR INVESTMENT TO CREATE JOBS, INCOME, AND WEALTH FOR LOCAL RESIDENTS. WWW.ICIC.ORG Follow the discussion live On Twitter @icicorg #WhatWorks

10. East Baltimore Development, Inc. Presentation by Andrew Frank Special Advisor to the President on Economic Development The Johns Hopkins University; former Deputy Mayor of Baltimore

11. Table of Contents Project Overview Baseline Conditions Governance Structure Implementation Sources and Uses Accomplishments and Next Steps New Framework Plan

12. Vicinity Map

13. Project Overview Started in 2001 Redevelopment of 88 acres in East Baltimore Acquisition of 2,000 properties Relocation of 750 households Master Plan – 1.1 million sq. ft. of commercial lab space, 2,000 housing units, 150,000 sq. ft. of retail space (grocery school), open space, new public school

14. What Made This a Priority? New Leadership Renewed Connection to the Business Community New Strategy: Build on Strength Parallel Efforts: Biotech Park Neighborhood Despair

15. Baseline Measures Middle EastBaltimore City Unemployment Rate 23.6910.86 Poverty Rate 43%19% Percent of Households Receiving Public Assistance 29%16% Average Household Income $28,464$42,090 Vacancy Rate 70%14%

16. Middle EastBaltimore City % of Population Without H.S./GED Degree 40%32.8% MSPAP: Gr. 3 reading (% scoring satisfactory) 23.7%14.1% Teen Birth Rate (per 1,000 teens) 10283 Infant Mortality Rate 17.111.7 Baseline Measures

17. Middle EastBaltimore City Juvenile Arrest Record (per 1,000 age 10-17) 23.1910.66 Violent Crime (per 1,000 residents) 51.826.19 Homicide Incidence Rate (2005-2009) 6120 Lead Paint Violation Rate 2511.8 Child Abuse and Neglect (per 1,000 children) 14.3%4.5% Baseline Measures

18. Key Initial Partners Baltimore City East Baltimore Development, Inc. Casey Foundation The Johns Hopkins Institutions

19. Governance Structure East Baltimore Development, Inc. Mayor and City Council Land Development and Lease Agreement Economic Inclusion Agreement Master Developer: Forest City – New East Baltimore Partnership Master Development Agreement

20. Casey Foundation Inspired Development Principles Involves residents in consequential way Offer intensive family advocacy More equitable relocation compensation Right of Return Training and job readiness Maximize local, minority and woman owned business participation Strict safety protocols for demolition

21. Public Private Partnership Urban Renewal - Condemnation Required legislation to amend five urban renewal plans 2,000 residential and commercial properties Approved before landmark Kelo Supreme Court decision City Council rejected previous relocation benefits Supplemental relocation benefits Gentrification fears

22. Public Private Partnership Economic Inclusion Central to the fundamental purpose of EBDI – physical and human capital M/WBE Participation Right-to-Return 37% of EBDIs $181 million in contracts have gone to MBEs Minorities and women have worked 57.5% of the man-hours generated by the project as of 12/31/10. Third party monitor

23. Acquisition - fair market value, as determined by two independent appraisers Relocation benefit package includes supplement to the fair-market price for current home to reestablish family in comparable home elsewhere. Supplemental benefit package includes: – closing costs and moving expenses – home appraisal and home inspection – $1,000 resettlement benefit – benefits provided by EBDI for real estate tax differentials over a 3-year period Public Private Partnership Relocation Benefits

24. Average home value increased from $30,000 to $156,000 in first phase 57 renters used relocation benefits to purchase homes Three post relocation surveys – larger majority report being better off Family Advocacy and Supportive Services Public Private Partnership Supplemental Relocation Benefits

25. Family Advocate assigned to every household Connects families to needed services Job training, substance abuse, mental health counseling, childcare, credit counseling, health care Of 206 homeowners relocated, only two foreclosures Public Private Partnership Family Advocacy and Supportive Services

26. Resulting from the Workforce Pipeline (1/2004 12/2012): 554 Construction jobs: 813 Permanent jobs: 759 Total Job Placements: 2072 Total Job Placements East Baltimore: 755 Public Private Partnership Workforce Pipeline and Job Creation

27. Sources and Uses

28. Public Private Partnership Section 108 Funds Federal program to borrow against future Community Development Block Grant (CDBG) allocation Approved for an earlier failed program. Approved prior to Kelo decision

29. Public Private Partnership Tax Increment Financing What is Tax Increment Financing (TIF)? $85 million EBDI TIF TIF Repayment Casey Foundation Vertical Construction – Government Buildings – Non-Profit Development – Residential Development

30. Public Private Partnership Foundation Partners Johns Hopkins Institutions Casey Foundation Weinberg Foundation Rouse Foundation Goldseker Foundation Abell Foundation Atlantic Philanthropies

31. 1,800 of 2,000 properties acquired 720 of 725 households relocated (to better housing in safer neighborhoods) 96% of residents of remained successfully housed; only foreclosures of 228 homeowners. Average Phase II homeowner relocation benefit: $175,000 58 renters became homeowners $67.2 million (37% of all contracts) to M/WBE 2,700 residents placed into jobs Selected Accomplishments

32. Progress Ahead

33. Rangos Building Retail Teavolve Milk and Honey Atwaters Cuban Revolution 7-11

34. House for a House and Home Repair Program

35. 20 House for House 20 Home Repair Program House for a House and Home Repair Program

36. 74 units 78 units 63 units 5 units Affordable Rental and Homeownership

37. Graduate Student Housing 321 units 573 beds $60 million Open August 2012

38. 1,500 space Parking Garage

39. Maryland Public Health Lab 130,000 sq. ft. $160 million 350 jobs 2011 second quarter ground breaking

40. 2011 SUMMARY RECOMMENDATIONS FOREST CITY NEW EAST BALTIMORE PARTNERSHIP 21 August 2011

41. SUMMARY DISCUSSION DRAFT 21 AUGUST 2011 Retail R&D Proposed Hotel School Parking Garage New Residential Rehab Residential R&D Built Completed Residential 2006 PLAN 2011 FC-NEBP RECOMMENDATIONS

42. Demand: Market research identified wellness most desirable theme Marketability of Beacon Park as a cutting-edge, model wellness community Need: Urban/Suburban health disparity Preventative medicine can lower healthcare costs Opportunity: Proximity to JHMI is a unique opportunity to partner in pioneering wellness research Current political attention means opportunity for logistical and financial support Successes could be replicated throughout Baltimore, and even nationally The Arguments for Wellness DRAFT FOR DISCUSSION 7-28-2011

43. BIG MOVES Gateway 43

44. Park Looking South to Gateway Block 44

45. Ashland Street at Wolfe Street Looking West 45

46. 46

47. BIG MOVES Residential 47

48. 1 st Phase Eager Street Buildings Expected to Stimulate Demand TOTAL UNIT TYPE COUNT Apt / Loft Rental: 236 SF Townhouse For Sale: 28 Stacked Duplex For Sale: 34 SF Townhouse For Rent: 7 SF Rehab Townhouse For Sale: 40 Total Residential Units: 345 UNIT TYPE BREAKDOWN 1 Bedroom Apt / Loft Rental: - Eager Street: 155 2 Bedroom Apt / Loft Rental: - Eager Street: 81 SF Townhouse For Sale: - Eager Street: 10 - UME / Mews: 18 Stacked Duplex For Sale: - Eager Street: 34 SF Townhouse Rental: - UME / Mews: 7 SF Rehab Townhouse For Sale: - UME / Mews: 15 - McDonough: 25 EAGER STREET RESIDENTIAL PROGRAM Apartments / Lofts (236) Stacked Duplex (34) SF Townhouse (28) SF Townhouse Rental (7) SF Townhouse Rehab (40)

49. BIG MOVES Retail 49

50. 50 0100300500 RETAIL SPACE PLAN Completed, Under Dev., and Next Phase Dev. USE# SQUARE FEET % OF TOTAL Restaurants425,72421% Cafes511,86310% Grocery112,00010% Retail Anchor000% Apparel/Specialty000% Service Retail028,89124% Fitness/Wellness144,00036% Total16122,478100% 50 SUMMARY DISCUSSION DRAFT 21 AUGUST 2011 Retail success depends on drawing shoppers from larger trade area beyond the 88 acres.

51. BIG MOVES Office/Lab Buildings 51

52. PHASE 2 GARAGE PHASE 3 GARAGE PH 4 PH 3 PH 4 PH 2 PH 3 PH 4 PH 3 PH 1 Completed R&D: Under Development R&D: Retail: 11,000 sf. Parking Garage (spaces): Next Phase Development R&D: Commercial: - Hotel - Retail Future Pipeline R&D: Parking Garage (spaces): TOTAL (GSF): TOTAL (SPACES): 280,000 sf. 235,000 sf. 1,400 435,000 sf. 160,000 sf. 80,000 sf. 815,000 sf. 1,000 1,955,000 2,400 COMMERCIAL

53. BIG MOVES School 53

57. Lessons Learned Community Support Impact of Recession Mixed-Income Community Retail Raised Expectations JHU Leadership JHU as an Anchor Elsewhere

58. ICICS MISSION IS TO DRIVE ECONOMIC PROSPERITY IN AMERICAS INNER CITIES THROUGH PRIVATE SECTOR INVESTMENT TO CREATE JOBS, INCOME, AND WEALTH FOR LOCAL RESIDENTS. WWW.ICIC.ORG Thank you for joining us today for the What Works webinar. NEXT WEBINAR: April 18, 2012 from 2:00-3:00 p.m. How to Cultivate Your Citys Food Cluster Share comments and suggestions on Twitter @icicorg using #WhatWorks