Socio-Economic Impact Analysis: Rehabilitation of the Sherman Theater

1. Socio-Economic Impact Analysis:Rehabilitation of the Sherman Theater UEDA Community Development Summit October 16, 2014 Lisa Heuler Williams Policy Analyst UWM Center for Economic Development

2. Project Description The proposed rehabilitation of the Sherman Theater into a multi‐purpose arts facility • Location: 4616-4634 W. Burleigh Street • Currently houses a vacant theater building, office and retail space, comprising total 22,200 square feet. • The proposed project would incorporate performing arts space, exhibition space, studio space, retail and office space. • Total cost of the rehabilitation of the Sherman Theater is estimated at $2.2 million.

3. What is a Socio-Economic Impact Analysis Socio-Economic impact assessments have both quantitative and qualitative aspects. They generally include some or all of the following indicators: • Community demographics • Business market analysis • Community employment and income levels • Quality of Life indicators (crime, education, community resources)

4. Why do a Socio-Economic Impact Analysis? • The Socio‐economic impact analysis addresses how a proposed development will impact the community - its businesses and its residents. • The impact analysis can help a community can decide whether a project should go forward. • If the community is in favor of the project, the socio‐economic impact analysis can be used to promote positive impacts and avoid negative ones. • Broad‐based community input and relevant economic information are vital to ensuring the best possible impact of the project on the community.

5. Community Indicators Census Tract Areas

6. Demographic Indicators

7. High School Graduation

8. Employment Indicators

9. Income and Poverty

10. Economic Impact of Phase 1 Rehabilitation and Renovation of the complex • Total expenditure on land, construction, and design of the theater • $2.2 million • Total Economic Impact of Rehabilitation and Renovation Phase • $3.8 million • 29 jobs

11. Economic Impact First 3 years of Operation • Direct Impact • Total rental income earned = $255,350 • Conservative Estimate: based on occupancy rate of 68%. • Total Salary and Wages paid = $275,036 • Conservative Estimate: based on minimum average wages • Three year Total Economic Impact of the Ongoing Operation of the Sherman Theater • $838,000

12. Impact on Household Income and Government Revenue • Direct expenditures of approximately $3 million in the first 3 years: • $2.2 million during Phase 1 (Rehabilitation and Renovation) • $838,000 in Phase 2 (Ongoing Operations) • Direct Expenditures will generate: • Government Revenues (Local and State) = $300,000 • Household Incomes = $3 million • How did we come up with these numbers? Americans for the Arts estimates that every $100,000 in direct spending by a non‐profit arts and culture organization in the state of Wisconsin generates a total economic impact of • $98,016 in Household Income • $10,000 Local & State Government Revenue was generated.

13. Total Economic Impact Phase 1 and Phase 2 = $4.6 million

14. Social Impact of the Arts Social impacts are the impacts of the arts on people. These positive effects arise from engagement in the arts: • Health–improves people’s physical health and strengthens social bonds • Psychological Well‐being –relieves stress and improves life satisfaction • Education/Skills‐ can lead to the acquisition of a variety of life skills and disciplines • Civic Engagement –promotes engagement and participation in civic and social life • Creativity

15. Social Impacts of the Arts University of Pennsylvania Social Impact of the Arts Project (SIAP) Center. • Their extensive research shows the connection between arts and economic revitalization, especially in urban areas. • Impacts on Youth • Improved school attendance and graduation rates • Decreased criminal activity. • Cultural‐rich neighborhoods experience: • Lower poverty • Increases in population • Better child welfare outcomes • Fewer cases of ethnic or racial harassment • Lower rates of disease and illness

16. Impact of Arts on Education National Educational Longitudinal Survey Findings • Empirical evidence showing link between arts learning and general academic and career success. • Link was particularly significant for underserved and/or poor students. • Research on youth who worked in the arts for a year. Research found that such work experience led to these youth being: • 4 times more likely to be recognized for academic achievement • 4 times more likely to participate in math or science fair • 3 times more likely to win award for school attendance • 3 times more likely to win award for writing an essay or poem.

17. Conclusion The opening of a multi-purpose arts facility could build upon the existing arts and cultural assets in the Sherman Park neighborhood and be a new anchor of community pride, artistic expression and commercial activity.

18. For More Information • James Hiller • Burleigh Street CDC • hillerlaw@aol.com • Lisa Heuler Williams • UWM Center for Economic Development • heuler@uwm.edu