"WHAT WORKS ” : SOLUTIONS FOR CITIES Leveraging Your City ’ s Anchors

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

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

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

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

5. The Opportunity ANCHOR INSTITUTIONSare a Major Economic Force in Urban Economies • The nation is experiencing the effects of economic decline and cities in ARTS AND CULTURAL INSTITUTIONS HOSPITALS UNIVERSITIES HOSPITALS

6. The Opportunity ANCHOR INSTITUTIONS, THE COMMUNITY, AND SHARED VALUE • The nation is experiencing the effects of economic decline and cities in Michael E. Porter, Bishop William Lawrence University Professor at Harvard Business School

7. The Opportunity FROM COMMUNITY ENGAGEMENT TO CREATING SHARED VALUE • The nation is experiencing the effects of economic decline and cities in • 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. ANCHOR INSTITUTIONS AND THE COMMUNITY: Strategic Framework Purchaser Cluster Anchor Stimulate growth of related businesses and institutions Direct institutional purchasing toward local businesses Real Estate Developer Core Service Provider Use real estate development to anchor local economic growth Tailor core products/ services to serve the community Community Developer Workforce Developer Build local community capacity Address local workforce needs Employer Offer employment opportunities to local residents

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

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

16. Baseline Measures

17. 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 EBDI’s $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. Public Private Partnership Relocation Benefits • 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

24. Public Private Partnership Supplemental Relocation Benefits • 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

25. Public Private Partnership Family Advocacy and Supportive Services • 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

26. Public Private Partnership Workforce Pipeline and Job Creation • 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

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. Selected Accomplishments • 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

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. House for a House and Home Repair Program • 20 “House for House” • 20 “Home Repair Program”

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

37. 1,500 space Parking Garage

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

39. 2011 SUMMARY RECOMMENDATIONS FOREST CITY NEW EAST BALTIMORE PARTNERSHIP 21 August 2011

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

41. The Arguments for Wellness 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 DRAFT FOR DISCUSSION 7-28-2011

42. BIG MOVES Gateway 43

43. Park Looking South to Gateway Block 44

44. Ashland Street at Wolfe Street Looking West 45

45. 46

46. BIG MOVES Residential 47

47. EAGER STREET RESIDENTIAL PROGRAM • 1st 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 Apartments / Lofts (236) Stacked Duplex (34) SF Townhouse (28) SF Townhouse Rental (7) SF Townhouse Rehab (40)

48. BIG MOVES Retail 49

49. 50 RETAIL SPACE PLAN Retail success depends on drawing shoppers from larger trade area beyond the 88 acres. SUMMARY DISCUSSION DRAFT 21 AUGUST 2011 50 0 100’ 300’ 500’

50. BIG MOVES Office/Lab Buildings 51