It’s Better (Or Is It The Same) In The Bahamas

Bay Street

 

A few years back, a small contingent of civic leaders from Palm Beach County were invited to Nassau, Bahamas to advise the government on how to revitalize their main drag, Bay Street.

The trip was organized by the U.S. Embassy which was manned back then by Ambassador Ned Siegel, a Boca resident who was appointed to his post by President George W. Bush.

I was invited along with former Mayor Tom Lynch, Boca Chamber President Troy McCllellan and Kelly Smallridge, the President and CEO of the Business Development Board of Palm Beach County.

The trip was truly a first class adventure and Ambassador Siegel introduced us to top government ministers and prominent business leaders. We later invited many of those people to Palm Beach County where they toured West Palm Beach, Boca Raton and Delray Beach so we could show them how theory met practice when it comes to revitalizing downtowns.

I was reminded of that trip last week when I walked Bay Street with my wife as part of a cruise to The Bahamas.

Nassau is picturesque and enjoys wonderful weather. There are some great old buildings enhanced by vibrant colors and a scale that is reminiscent of Delray.

In fact, there are a lot of historical ties between Delray and The Bahamas. Some of the earliest settlers in our town were from The Bahamas. I was especially intrigued by the Pompey Museum of Slavery.

C. Spencer Pompey and his wife H. Ruth Pompey are dear old friends and local legends. I’m pretty sure there is a connection between the museum and the Pompey’s of Delray. Sadly, Mr. and Mrs. Pompey have passed so I can’t ask them but I plan to delve into the history to satisfy my curiosity.

When we were invited to share ideas and best practices with The Bahamian government about a decade or so ago, Bay Street was struggling with crime issues, vacancy in certain sections, an underutilized waterfront and stiff competition from the Atlantis resort which was sucking tourists off the cruise ships out of the downtown and into the casino and water parks.

Walking around Bay Street last week I saw the same issues—only now there is another mega resort to worry about: Bahia Mar.

Sure the streets were crowded on a warm Sunday but it didn’t appear that many people were shopping. The retail mix is heavy on t-shirts, perfume, duty free alcohol and jewelry—not surprising given the heavy influx of tourists.

Bay Street could use more food options—and while I didn’t feel unsafe (despite warnings from the cruise line about crime) the level and intensity of solicitors was a turn off. You were just assailed from the moment you get off the boat to the moment you get back on. Yuck….

Years ago we recommended that Nassau turn up the Bahamian charm—for example increase security but outfit police in traditional uniforms and activate the waterfront by incentivizing restaurants and cafes to balance the multitude of t-shirt shops. Granted these aren’t “genius” ideas and I can’t remember the rest but the exercise was fun and we made a lot of friends as a result.

That I didn’t see a whole lot of change on Bay Street is indicative of how hard transformation is to achieve.

When I think of Delray’s transformation I feel the same way. It takes a whole lot of hard work, dedication, investment and some gutsy decisions to make change—and a fair amount of good fortune too. It helps to catch a break or two along the way, but by the same token change doesn’t happen by accident. It happens via intention.

Recently, I ran into some consultants who worked on our downtown master plan way back in 2001.

The efforts our community made over the years were rewarded with awards which are nice….but not as important as the opportunity and value that were created.

Now I get that not everybody was pleased with the results. And they are entitled to their opinions and we are compelled to respect those views.

Yet, I can’t help but think that sometimes we go overboard with our angst. The consultant mentioned to me that “Delray is so hard on itself” and that statement struck me. It rang true.

Just take a cruise through social media to see for yourself—ugh… all the negativity.

Criticism that isn’t constructive isn’t valuable at all. It doesn’t feel like affection it feels like anger.

Accountability is necessary and important, but it’s best when it’s rooted in love and empathy.

As we head into the holiday season, I hope we see more love and less anger. More constructive guidance and empathy and less vitriol and blame.

Root your community in those values, observe the guardrails and be patient. The magic will happen.

 

 

 

Keep Your Amazon Headquarters; Build Your Own Ecosystem

NY is paying $61,000 per job and Virginia is shelling out $796mm in tax incentives to land Amazon’s second headquarters.

I saw an article in the Tampa Bay Business Journal recently that caught my eye.

The headline was a show stopper for those of us who care about economic development and the use of public dollars: “Incentives are becoming less important than workforce.”

Which is another way of saying that today—maybe more than ever—talent rules. And the cities and regions that develop, nurture and attract talent will be the cities that win.

The Business Journal’s headline may sound funny in the midst of perhaps the biggest incentive gusher ever which was the pursuit of Amazon’s H2 headquarters and its promise of 50,000 jobs and billions in economic impact. Congratulations to our friends in Crystal City and Long Island City: the two winners of the Amazon sweepstakes who will split the prize.

But even amidst the gaggle of mayors who threw incentives Amazon’s way, the smart guess was that Amazon would choose a headquarters where executives believe they can hire from a deep pool of talent. Northern Virginia and New York City are both regions rich in tech talent.

But also playing into the decision was Amazon’s desire to be in a city or region where today’s and tomorrow’s workers will want to live.

I’m a passionate student of economic development and it’s endlessly fascinating to me how cities and regions work or don’t work.

I think the most successful places practice economic “gardening” which is an effort to grow your own companies rather than throw money chasing corporations that oftentimes take advantage of cities by threatening to leave if you don’t ante up.

If you grow your own and create an environment where companies would be foolish to leave, you won’t to have worry that someone else will steal your jobs by waving checks at CEOs.

So how do you create an environment conducive to economic gardening and how do you keep the garden healthy and sustainable?

I like the analogy of threads—you have to knit a fabric and build a community by adding to– not tearing at –the fabric of your city.

Threads include: good schools, a good support network for parents, strong and safe neighborhoods, a clean environment, great parks, recreational opportunities, a range of housing options, good transportation networks, strong and ethical governance, business friendly regulations, a people friendly or tolerant atmosphere, abundant art and culture, a sense of place, efficient and competent local government, great health care and the list goes on.

If you build a strong fabric and create a place that is brimming with opportunities– both economic and social—over time you will create a dynamic and sustainable environment that generates jobs by keeping and attracting talent.

Consequently, if you tear at the fabric by pulling threads, chasing away investment, making it hard to get established and hard to get rooted you will send a message to go elsewhere. In those types of places we send a clear message. We are essentially telling our children that ‘yes we raised you here, but there’s nothing for you here so go elsewhere as soon as you can.’

And we will tell outsiders that their investments are better spent elsewhere.

Growth and change are hot topics around these parts. Recently, the South Florida Business Journal reported that there was $950 million of projects underway in downtown Delray Beach. That’s both a source of angst and pride and I can understand both feelings.

Growth and change can be hard to swallow, especially if it swallows up what we like best about our towns. But growth and change are also inevitable. The best communities find a way to shape and manage growth and change.

The best cities also focus on the opportunities that growth and change can provide: they maximize benefits hopefully for as many people as possible, while minimizing impacts.

They talk through the tough issues, raise the level of discourse and do their best to build for the future.

In many ways, we are all stewards. We are here to leave a better place for those who come next. If we adopt a mindset that we need to be concerned about not only our quality of life but also that of others, we have a chance to create something good. But if we have an “I’m in the boat, pull up the ladder” mentality we ensure that the future either drowns or heads elsewhere and that the boat we’re in will sink.

It’s better to swim than it is to sink.

 

In Praise of the Research Park

I’m a big fan of the Research Park at FAU and its CEO Andrew Duffell.

The park has become a major economic engine for Palm Beach County and beyond serving as warm and inviting place for talented entrepreneurs and researchers to build and scale their companies.

That’s important, because “economic gardening”–growing your own so to speak is smart policy.

As far as I’m concerned, Northern Virginia can have Amazon and its H2 Headquarters (and that’s where it’s going folks), I’d rather save incentive money and grow our own company’s right here at home. The Research Park is a good example of how that can work.

The Park’s impact has been profound– if somewhat unsung– in a region where it is hard to gain appreciation.

The 2017 numbers—which never tell the whole story—are nonetheless impressive. Consider:

  1. $387 million of investment capital raised
  2. $535.65 million in economic impact
  3. $67 million in annual payroll
  4. 3,088 total jobs sustained, that’s direct and indirect employment with another 250 jobs plus planned.
  5. 33 companies housed.
  6. 16 new patents in 2017.

On October 3, the FAU Research Park will host its annual awards banquet at The Addison in Boca.

It’s the fourth annual awards ceremony and it’s really a terrific idea to celebrate the success of the park and shine a spotlight on some of the standout players making it happen.

This is the power of having a university and a research park in our community. And the best is yet to come because I believe in the leadership of the park and their track record of results.

“The recipients of this year’s Research Park at FAU awards are all hugely impactful to the mission of the Research Park – to foster R&D at FAU and foster economic development in our region,” said Mr. Duffell, president and chief executive officer of the Research Park at FAU. “We are grateful to each for their unique contributions and hope that they inspire our stakeholders.”

The Research Park awards recognize distinguished contributions to the Research Park’s mission to create and sustain the ideal environment for innovation and invention, maximizing the academic and entrepreneurial talent and regional resources in South Florida to accelerate economic development and prosperity.

The award recipients for 2018 are:

Distinguished Researcher: Gregg Fields, Ph.D. is a professor, chair of the Department of Chemistry and Biochemistry and director of the Center for Molecular Biology and Biotechnology in FAU’s Charles E. Schmidt College of Science. Fields applies chemistry in novel ways to answer important biological questions, many of which assist in the diagnosis and treatment of major diseases, such as multiple sclerosis, arthritis and cancer. He is a fellow of the National Academy of Inventors and a fellow of the American Association for the Advancement of Science. He is a renowned researcher who holds six U.S. patents and has one application being reviewed. The technology developed by Fields has resulted in three commercial products, currently sold by five different companies. He has authored or coauthored more than 260 scientific publications and has presented more than 190 invited lectures.

 

Distinguished Entrepreneur: Daniel Cane is the chief executive officer and co-founder of South Florida-based Modernizing Medicine, Inc., a healthcare IT company that is revolutionizing the way in which healthcare information is created, consumed and utilized to increase practice efficiency and improve patient outcomes. Joining the Research Park in 2012, Modernizing Medicine has grown to more than 650 employees and has raised more than $332 million in total investment. In 2016, the South Florida Business Journal named Cane as a “South Florida Ultimate CEO.” In 2015, he was named “EY Entrepreneur of the Year®.” Cane earned the Excalibur Award for Palm Beach Small Business Leader of the Year for 2013. Additionally, he also was named “Palm Beach County Ultimate CEO” by the South Florida Business Journal and “CEO of the Year” by CEO World. Recently, he and his wife, Debra, donated $1 million to FAU’s A.D. Henderson University School for STEM education initiatives.

Mr. Cane is a local product hailing from Lake Worth. What makes Dan extra special is that despite the rigors of running a hyper growth company, he has taken the time to be visible and accessible to local entrepreneurs and organizations. It makes a difference, because Mr. Cane serves as an inspiration and a role model for those aspiring to make a dent in business.

 

Distinguished Leader: Steven L. Abrams has been a member of the Palm Beach County Board of County Commissioners since 2009, winning re-election twice. Abrams has a lengthy record of public service. He is the former mayor of Boca Raton, elected in 2001 and re-elected in 2003 without opposition. In the 2005 election for mayor, Abrams received the most votes in city history and was later named mayor emeritus when he stepped down in 2008 due to term limits. Abrams’ work in regional transportation has been instrumental in the success of the Research Park at FAU’s access to Tri-Rail and the new I-95 interchange at Spanish River Boulevard, making the Research Park at FAU the only research park to have a direct on-ramp to an interstate.

Mayor Steven has been a terrific friend over the years and has served with distinction wherever he has landed. Many years ago, we went after Scripps together leading our cities joint efforts to bring the institute to Boca. While we fell one vote short, Steven showed his mettle and his commitment to economic development. He’s a very worthy recipient.

 

Distinguished Organization: Small Business Development Center at FAU delivered substantial consulting and training services in 2016 that resulted in a significant return on investment, including delivering more than 13,000 hours of consulting to 1,360 entrepreneurs at no cost. The SBDC’s services resulted in the creation and retention of almost 6,000 jobs in our region, and generated almost $700 million in sales. The SBDC’s role in Florida’s economic development by assisting entrepreneurs in every stage of the business life cycle is invaluable and an important complement to the greater FAU community.

To purchase tickets to attend the event visit www.research-park.org.

 

 

 

 

 

Thankful…

In the spirit of Thanksgiving, we’d like to offer a short list of what we’re thankful for in Boca Raton and Delray Beach.
This is by no means a complete list, just some things that are top of mind these days.

Wise Tribe -this Delray Beach based organization is quietly but effectively building community and asking provocative and important questions via a series of events and talks. We’re grateful for their passion and willingness to convene.

Boca Bowl– Isn’t it cool that we have our very own Bowl game?

Boca’s Office of Economic Development—This very active office is crushing it. Just check out their social media feed. Always positive, always newsworthy and always announcing lots of jobs and partnerships with local companies and CEOs.

The holiday display at 5th Avenue Grill–Simply magnificent and a great Delray tradition. GM Glenn “Zippy” Fiedler and his staff do an amazing job.  Make sure to check it out, you won’t be disappointed.

Delray’s downtown seasonal festivities– Lots of hard work goes into making Delray a holiday hot spot. We appreciate it. So do tens of thousands of visitors and residents.

Community Greening—this nonprofit has a simple but profound mission: plant trees in Delray and educate people about the benefits. If you want to see how this works up close head to Knowles Park on November 25 from 9 am to noon to help the group plant trees. You’ll have fun and they’ll give you pizza.
Sounds like a deal.

Creative Mornings —At the risk of being sappy, we just love the positive energy and smart conversation. This month’s meeting at Saltwater Brewery was lots of fun and an eye opener about the health of our oceans and planet.  They have built something very special at Creative Mornings. Very very special.

Delray Art League–This community institution is a local treasure. Not only do they produce wonderful works of art, but they support young artists with scholarships. You can catch this amazing group during its next Artists in the Park outing Dec. 2 at Veterans Park. You won’t be disappointed and the artists are also very nice.
Happy Thanksgiving!

We Have Some Work To Do

Most of America is deteriorating economically.

That’s the conclusion of a new study recently reported by Axios.com that has created a stir in cities and state capitals. It probably hasn’t made a dent in Washington, where they are too busy talking past each other and raking in big bucks for re-election to care.

Axios is on online news organization. They have some really good journalists and their coverage is usually pretty insightful. So what did Axios find?

Economic prosperity is concentrated in America’s elite ZIP Codes, but economic stability outside of those communities is rapidly deteriorating.

What does that mean?  U.S. geographical economic inequality is growing, meaning your economic opportunity is more tied to your location than ever before. Which means that your location better have a plan to keep their economies viable.

A large portion of the country is being left behind by today’s economy, according to a county-by-county report released this week by the Economic Innovation Group, a non-profit research and advocacy organization.

Key findings:

New jobs are clustered in the economy’s best-off places, leaving one of every four new jobs for the bottom 60% of ZIP Codes.

Most of today’s distressed communities have seen zero net gains in employment and business establishment since 2000. In fact, more than half have seen net losses on both fronts.

Half of adults living in distressed ZIP Codes are attempting to find gainful employment in the modern economy armed with only a high school education at best.

The map: The fastest growing Western cities (such as Gilbert, Ariz., and Plano, Texas) and “tech hubs” (Seattle, San Francisco, Austin) dominate the list of the most prosperous cities in the country. Cities that were once industrial powerhouses in the Midwest and Northeast, like Cleveland and Newark, are now more likely to be on the distressed end of the spectrum.

The cycle: Fewer new companies are forming than ever before, which disproportionately hurts distressed communities. The new businesses that do get started are often located in thriving communities where educated workers are. So talented people are forced to leave places with little economic opportunity — even if they have personal and family reasons to stay — to move to those where there is opportunity.

So how do we rank?

Economic Distress Indicators for: Palm Beach County, FL

Population: 1,378,810

% in Distressed Zip Codes: Palm Beach County 4.7%

% in Prosperous Zip Codes: Palm Beach County 35.1%

 

No High School Diploma: Palm Beach County 12.2% U.S. 13.3%

Housing Vacancy Rate: Palm Beach 8.2%  U.S. 8.3%

Adults Not Working: Palm Beach County 26.9% U.S. 28.2%

Poverty Rate: Palm Beach County 14.5%  U.S. 15.5%

Distress Score: 14.3

Distress Rank: 446

Overall, Palm Beach County is rated “comfortable” with indicators meeting or exceeding other counties and the national average. I also looked at three zip codes in Delray Beach and found interesting stats.

In 33445, which includes a lot of Delray Beach west of 95 and 30,460 people, the distressed rating was 30.2, more than double the rate for Palm Beach County. In my zip code, 33444, home to 22,440, the distress rank was a dismal 59.5. The downtown/beach area zip code, 33483 had a distress rating of 21.6 and consists of 11,850 people.

Distress was measured using 7 metrics.

  1. No high school diploma: Percent of the population 25 years and older without a high school diploma or equivalent
  2. Housing vacancy rate: Percent of habitable housing that is unoccupied, excluding properties that are for seasonal, recreational, or occasional use
  3. Adults not working: Percent of the prime-age population (ages 25-64) not currently in work
  4. Poverty rate: Percent of the population living under the poverty line
  5. Median income ratio: A geography’s median income expressed as a percentage of its state’s median income
  6. Change in employment: Percent change in the number of jobs from 2011 to 2015
  7. Change in business establishments: Percent change in the number of business establishments from 2011 to 2015.

This blog has long championed the importance of economic development and the need to strengthen and diversify our economy.

The stakes are high.

The report also indicated that less distressed communities are healthier communities. The healthier the economy, the healthier the person: People in distressed communities die five years earlier, according to the research.

If we care about our long term financial sustainability and the prospects for our children, we need to figure out a plan to be competitive with other healthy regions.

It’s not about chasing Amazon (good luck with that one) or waving incentives at companies—it’s about leveraging our strengths, improving our schools, nurturing entrepreneurs (economic gardening) working with universities, increasing quality housing that is affordable and building an inclusive community open to ideas, innovation and creativity.

 

 

 

On Events: Hit Pause & Create a Win

Garlic Fest has become a Delray tradition providing much needed funds to local non-profits and schools. Photo by VMA Studios courtesy from Garlic Festival website.

Garlic Fest has become a Delray tradition providing much needed funds to local non-profits and schools. Photo by VMA Studios courtesy from Garlic Festival website.

Sometimes you have to slow down to get it right.

The challenge and the beauty of local government is that you often know the people impacted by a particular vote. You can’t say that about other levels of government.

If you are a state legislator or a member of congress you vote far away from home and usually with your team–be it Republican or Democrat.

Most people in your district probably don’t even know what you’re doing. But on a local level, your neighbors know. And that’s a good thing.

You can’t hide in local government. Ideally it keeps you grounded and accountable. People know when you show up and when you don’t. They see how you treat people. They can see when you read a prepared statement, answer a text, roll your eyes at a speaker or fail to read the backup material.

If your kind, they notice that too. If you’re rude they see that as well. Chances are you are lecturing someone’s friend, a neighbor, or someone you see around town. So tone matters. A lot.

I don’t like what’s happening to special events in our town. I’m not alone.

I think the process has turned into a game of bait and switch and I think the opposition to events has been overstated. I think the costs have been too.

I’m not sure if it started out this way and I’m not sure there has been any sort of diabolical intent, but somewhere along the way this attempt to make the special event process better went off the rails or was co-opted by an agenda.

I think event producers and the organizations that host festivals volunteered in a good-faith effort to make things better; I don’t think they would’ve shown up to plan their demise.

I’ve seen polling numbers of registered voters in this city for over 20 years and events have always scored very high. I can’t imagine that two decades of polling by firms relied on by elected officials past and present would be that far off.

Sure, there are those who despise events. I heard from a few during my seven years in office. A few in particular have been impossible to please despite efforts to soothe their bruised sensibilities. At some point, you have to apologize and move on even if they won’t. As much as you may wish to, you simply can’t scratch every itch and you certainly can’t run a city based solely on the wishes of those who complain. There are others to consider too.

At some point you have to wonder why a business can’t make a crowded street full of pedestrians work for them. At some point you have to wonder why some people can’t just take one for the team because maybe the particular event works for someone else, benefits a non-profit or is a city tradition enjoyed by many. I think the point is when life gives you lemons make lemonade and if you can’t make lemonade, there’s always another day.

Tonight, the city commission may or may not decide the fate of the Garlic Festival. Nobody is quite sure, including the fest’s producers, because she and her team have been unable to get a clear answer on process from anybody.

Somehow that doesn’t feel right. We are supposed to be a village right? Why are we acting like we live inside of a Kafka novel?

In the interest of full disclosure, I’m friends with Garlic Festival founder/producer Nancy Stewart-Franczak and her husband John. I like them. I think they are good people who mean to do well by the community. Nancy’s partner, Bern Ryan, is a good guy and Nancy’s small team consists of really nice people. They are a part of our community. A valuable part.

Nancy has lived in Delray for 25 years. She has been active as long I’ve known her which has been a long time. She has volunteered for many community causes, works very hard and gives back in many ways. She loves this city. She should be treated with respect. She hasn’t been. That’s my opinion based on what Nancy and others who support her have told me.

She’s been told that what she has brought to Delray is dispensable. I don’t think it is.  Neither do the non-profits who have benefitted from her event, even though some question the business model. See, the Garlic Festival has raised close to $600,000 for non-profits in its 18 year history here. People volunteer their time and their causes benefit. If the Boy Scouts or Police Explorers or any number of groups who volunteer don’t like the model, they can opt out. But apparently, they do. And it’s their choice to participate or not. They have told city commissioners that the event is meaningful to them and their causes and activities.

That said, no festival is beyond being asked to improve.

Nancy volunteered to be part of a process designed to mitigate some of the concerns raised about special events. She did not know she was donating hundreds of hours over nearly a year to destroy her livelihood and two decades of hard work.

Think I’m exaggerating? I wish I was.

But she and other event producers came to the table in good faith and they compromised by agreeing to shrink the footprint of their events, avoid road closures and in Nancy’s case get rid of rides which seem to upset the delicate sensibilities of some. Tell that to the kids and their parents who might have enjoyed the rides, I’m sure they’ll understand the need to make sure that our city doesn’t resemble a carnival.

If you think my friendship with Nancy and Bern might color my views so be it. Dismiss this opinion as biased. But know that while I have attended scores of events over 30 years living in Delray I haven’t gone to any lately and if I never go to another festival I’ll be ok.

Still, I don’t begrudge those who do. When my kids were little we went to Garlic Fest and other events and I looked for activities that they would enjoy. To take a family to a nice downtown event is a blessing. The kids are grown now, but there are other young moms and dads out there looking for something fun to do. Maybe it’s Garlic Festival, maybe it’s a dunk tank at a Wine and Seafood event or maybe it’s a St. Patrick’s Day parade with fire trucks and music. (That event is in trouble too).

These events mean something to this town; they mean something to our resident and to those who own businesses here and those who visit us. I think events are part of our brand. I think they bring value as economic development tools and yes I think they ring cash registers.

Sometimes the sales are made on the day of the event and sometimes they come after because when people come to Delray and experience our city I’m pretty sure that at least a few decide to come back to shop, dine and maybe even shop for a home or a nice hotel near the beach or downtown.

They may even tell some of their friends and relatives.

So while Bacon and Bourbon may not be my thing (and it’s not because I’m kosher and prefer Grey Goose) I have an appreciation for events and their meaning in terms of building community and supporting non-profits.

Downtowns– if they are worth their salt– are places to gather. We are so lucky have a downtown. Many cities don’t.

Others have downtowns that are dead or blighted—as ours used to be.

But we are blessed with a downtown that is vibrant, fun and has fueled a huge increase in property values and quality of life. If that goes away, I will care. And so will you. Because the downtown is our community’s heart and economic engine.

It’s where we go with friends and it’s where we gather when we celebrate and when we mourn like we did after 9/11 or when we needed to raise money when a beloved officer died on his way to work. If you think our downtown is bulletproof or immune to competition I think you’re wrong.

In season, you may have some trouble parking. I get it. In season, it may take you a long time 7-10 minutes in my experience to go from Swinton to A1A (I kept a diary this winter). Heck, sometimes the bridge goes up and sometimes an art fair closes a street. I suppose it can be annoying and I sympathize –to a point.

The opposite of traffic is no traffic. And trust me you don’t want that. We had that and it was awful. Dead, boring, dull, depressing…We used to have nothing but a sea of parking and it wasn’t that great–a sea of asphalt.

if you want to avoid any parking issues build a place that nobody wants to visit. That’ll solve your parking problem and create other issues.

Still, I think we need to see the other side and work together. The organizations and event producers seem willing.

Truth is, we should reinvent our events. We should talk about which ones work and which ones no longer fit. We should talk about what kind of demographics we hope to attract and who we hope to serve.

We should talk about timing, cost, and public safety. We should understand the needs of residents and the importance of tourism to our economy.

But somewhere along the line, this process has gone astray.

Instead of a collaborative effort to improve events–even reinvent them– the process morphed into an effort that will drive them out of business.

From small little walks for charity to events that support our Chamber of Commerce and Old School Square, we are at risk of losing a lot.

If you don’t think our Chamber is worth something you haven’t been there in a while. It’s helping businesses and connecting people all day every day. If you don’t think Old school Square is important I can’t help you because then you don’t understand how incredibly blessed we are to have the arts smack dab in the middle of our downtown. The center was conceived as a place for the community to gather. Events, inside and out, are at the very core of its mission. Do the grounds take a beating? Yep. Should we be discussing how to minimize and pay for that beating? Absolutely. But we should never put velvet ropes around Old School Square and turn it into a static museum. Yes, there are costs that have to be considered, but a cost structure that effectively ends events, may provide some relief to the city, but will also hurt the city in other ways.

Charitably you can call this process a bait and switch exercise—event producers volunteered to help mitigate concerns but did not sign up for a process that would drive them out of town.

But there is a chance to hit the pause button. There is a chance for the commission to exert leadership and get the process back on track. The event producers have acted in good faith and have stepped up to the plate by agreeing to meaningful reforms. It’s the city that has dropped the ball. It takes two sides to collaborate. A one sided process can be called a form of bullying. ‘I’m going to take your lunch money because I can’ is not a good way to run a place.

The city has the power–for now.

They can not only call the shots they can insist on anything they want–in the short term anyway but with lasting scars.

If you want reinvention, challenge the event producers and charities that rely on events. But don’t give vague directions and disappear, sit down and join the process. Spell out what a new vision for events might look like. Work with the producers and festival organizers not on them.

These are people we know. These are important civic institutions. They should not be driven out of town or to their knees financially in the name of reform or because some perceive that events are no longer needed or popular with residents and business owners. I have seen polling data and public records requests of emails that indicate otherwise. I have not seen data or analysis to show widespread dissatisfaction. Nor has anyone else– including the organizations that sponsor and produce the events.

As for costs, let’s talk. Share with the community what they cost, but show your work. I find it hard to fathom that a contained special event can approach the costs of an NFL game.

When we look at costs (and I’m sure that producers would pay more but not triple or quadruple) it’s only fair to consider benefits as well.

If you live close to the downtown you have seen your property values soar at a rate that far exceeds other cities.

It’s not all because of events. Some of it is because of Old School Square and some of it is because of our great shops and restaurants. But events play a role. They distinguish us. They have value not just costs and impacts.

Hit the reset button, invite the innovators to the table and every one should agree to show up with an open mind.

Again, events can always be better and they can always pay more to offset city costs. But they have value too and so do the individuals and organizations that produce, host, create and rely on them.

If a “solution” is imposed it won’t be sustainable. If it’s negotiated with a win-win outcome in mind it will make our village a better place in more ways than we can imagine.

Tonight is an opportunity to save the Garlic Festival and rethink the events policy.

 

Innovation Districts: A Recipe

5,500 square feet of magic in Eugene.

5,500 square feet of magic in Eugene.

“Innovation districts embody the very essence of cities: an aggregation of talented, driven people, assembled in close quarters, who exchange ideas and knowledge in what urban historians call a “dynamic process of innovation, imitation, and improvement.” –Peter Hall, Cities in Civilization: Culture, Innovation, and Urban Order

 

Boca Raton and Delray Beach have long championed the idea of creating “innovation districts”, a term we hear about often but probably never slow down enough to define.

Over the years, there has been a desire to attract the “creative class” to downtown Delray Beach, build on Boca’s rich history in medicine, education and technology (MedUTech) and create an innovation district along Congress Avenue. FAU’s Research Park has achieved enviable success and now FAU’s Tech Runway has a great opportunity to serve as a catalyst for creating an entrepreneurial ecosystem.

There are also several examples of co-working and incubator space in both Boca and Delray.

A recent white paper by the Brookings Institution has gotten a lot of traction among policymakers interested in Innovation Districts. Perhaps one of the best things it produced was a simple definition of the term: geographic areas with synergistic relationships among people, firms and places, allowing ideas to be generated and commercialized. These districts are also physically compact, transit-accessible, technically-wired and offer mix of uses: housing, office, and retail.

Bruce Katz and Julie Wagner of Brookings describe innovation districts as requiring entrepreneurs, educational institutions, start-ups, affordable housing and other urban amenities that are connected by transit and high-speed Internet.

Among the primary market forces driving innovation districts are private firms and universities seeking to be more efficient at innovation. The model that originated in Silicon Valley–where firms acted independently and were isolated on a campus or an industrial park–appears to be no longer in vogue. It is more effective to be located in places where people bump into each other by happenstance — at the office, in the coffee shop, at a music venue or at dinner. Ideas are shared at the office and away from the office, leading to more ideas and more innovation. This is a sea change from the model of the past 50 years where innovation happened in suburban office parks—accessible only by car. In that model, little to no thought was given to integrating work, housing and recreation. Today, companies and their workers see quality of life as a pathway to productivity and innovative breakthroughs.

A trend that is simultaneously strengthening innovation districts is millennials’ preference for urban living. According to the Council of Economic Advisors, 73 percent of college-educated 25- to 34-year-olds were living in large or mid-sized cities in 2011, compared to 67 percent in 1980.

Primary drivers of this trend are the neighborhood-building amenities that a vibrant city offers.

Essential to the success of innovation districts are what are called “innovation cultivators,” which support the growth of individuals, firms and their ideas.

Experts are pointing to downtown Eugene, Oregon as a good model for an emerging innovation district. Eugene offers lessons that may be useful for Boca and Delray.

In downtown Eugene, innovation cultivators include Fertilab, which focuses on incubating early-stage entrepreneurship; RAIN, which helps new business ideas accelerate to market; and the Technology Association of Oregon, which focuses on inputs to growth for tech companies including high speed internet infrastructure, access to talent, and community events like Hack for a Cause. All of these organizations now have offices that are within walking distance of each other.

“The trend is to nurture living, breathing communities rather than sterile remote, compounds of research silos,” said Pete Engardio in a recent article entitled “Research Parks for the Knowledge Economy,” that ran in Bloomberg Businessweek.

Says Brookings: “Innovation districts have the unique potential to spur productive, inclusive and sustainable economic development. At a time of sluggish growth, they provide a strong foundation for the creation and expansion of firms and jobs by helping companies, entrepreneurs, universities, researchers and investors—across sectors and disciplines—co-invent and co-produce new discoveries for the market. At a time of rising social inequality, they offer the prospect of expanding employment and educational opportunities for disadvantaged populations given that many districts are close to low- and moderate-income neighborhoods. And, at a time of inefficient land use, extensive sprawl and continued environmental degradation, they present the potential for denser residential and employment patterns, the leveraging of mass transit, and the repopulation of urban cores.”

So what’s the formula and do we have what it takes?

Brookings lists the following assets as key components:

Economic Assets are the firms, institutions and organizations that drive, cultivate or support an innovation-rich environment. Economic assets can be separated into three categories: Innovation drivers are the research and medical institutions, the large firms, start-ups and entrepreneurs focused on developing cutting-edge technologies, products and services for the market. Innovation cultivators are the companies, organizations or groups that support the growth of individuals, firms and their ideas. They include incubators, accelerators, proof-of-concept centers, tech transfer offices, shared working spaces and local high schools, job training firms and community colleges advancing specific skill sets for the innovation-driven economy.

Neighborhood-building amenities provide important support services to residents and workers in the district. This ranges from medical offices to grocery stores, restaurants, coffee bars, small hotels and local retail (such as bookstores, clothing stores and sport shops).

Physical assets are the public and privately-owned spaces—buildings, open spaces, streets and other infrastructure—designed and organized to stimulate new and higher levels of connectivity, collaboration and innovation. Physical assets can also be divided into three categories: Physical assets in the public realm are the spaces accessible to the public, such as parks, plazas and streets that become locales of energy and activity. In innovation districts, public places are created or re-configured to be digitally-accessible (with high speed internet, wireless networks, computers and digital displays embedded into spaces) and to encourage networking (where spaces encourage “people to crash into one another”). Streets can also be transformed into living labs to flexibly test new innovations, such as in street lighting, waste collection, traffic management solutions and new digital technologies.

Physical assets in the private realm are privately-owned buildings and spaces that stimulate innovation in new and creative ways. Office developments are increasingly configured with shared work and lab spaces and smaller, more affordable areas for start-ups. A new form of micro-housing is also emerging, with smaller private apartments that have access to larger public spaces, such as co-working areas, entertainment spaces and common eating areas.

 

Physical assets that knit the district together and/or tie it to the broader metropolis are investments aimed to enhance relationship-building and connectivity. For some districts, knitting together the physical fabric requires remaking the campuses of advanced research institutions to remove fences, walls and other barriers and replace them with connecting elements such as bike paths, sidewalks, pedestrian-oriented streets and activated public spaces. Strategies to strengthen connectivity between the district, adjoining neighborhoods and the broader metropolis include infrastructure investments, such as broadband, transit and road improvements.

 

Networking assets are the relationships between actors—such as individuals, firms and institutions—that have the potential to generate, sharpen and accelerate the advancement of ideas.

Networks fuel innovation because they strengthen trust and collaboration within and across companies and industry clusters, provide information for new discoveries and help firms acquire resources and enter new markets.

Networks are generally described as either having strong ties or weak ties.

If you tally these assets up, Boca and Delray are positioned to have successful innovation districts.

Many of the principles outlined by Brookings, were incorporated in a recent task force effort to jumpstart Congress Avenue in Boca.

Lynn University, FAU, FAU Research Park, the Boca and Delray Chambers of Commerce, local hospitals and research facilities and private incubators and co-working spaces are all elements for success.

What’s missing in my view are stronger ties, a need for more events, a lack of venture, seed and angel capital (but some bright spots are emerging) and more media attention to build the area’s reputation.

Possible headwinds also include a lack of imagination with some, Ok maybe most—but not all– new development—i.e. the same old, high end condo’s and sprawl in the Ag Reserve—and not enough political vision to push and incent developers to create something new, different, cool and forward thinking. There is a need for creative space in both cities. NIMBYism is another threat; we have to be forward thinking and ensure that our downtowns evolve beyond food and beverage.

Still, our quality of life, proximity to key markets, universities, recreation, cultural amenities etc., are awfully compelling. Yes, we can make this happen. The ingredients are there and abundant.

 How to make it happen:

Practitioners in leading edge innovation districts offer five pieces of advice:

 

First, build a collaborative leadership network, a collection of leaders from key institutions, firms and sectors who regularly and formally cooperate on the design, delivery, marketing and governance of the district. In advanced innovation districts in Barcelona, Eindhoven, St Louis and Stockholm, leaders found the Triple Helix model of governance to be fundamental to their success. The Triple Helix consists of structured interactions between industry, research universities, and government.

Second, set a vision for growth by providing actionable guidance for how an innovation district should grow and develop in the short-, medium- and long-term along economic, physical and social dimensions. Most practitioners cite the importance of developing a vision to leverage their unique strengths—distinct economic clusters, leading local and regional institutions and companies, physical location and design advantages and other cultural attributes.

Third, pursue talent and technology given that educated and skilled workers and sophisticated infrastructure and systems are the twin drivers of innovation. Pursuing talent requires attraction, retention and growth strategies; integrating technology requires a commitment to top notch fiber optics (and, in some places, specialized laboratory facilities) to create a high quality platform for innovative firms.

Fourth, promote inclusive growth by using the innovation district as a platform to regenerate adjoining distressed neighborhoods as well as creating educational, employment and other opportunities for low-income residents of the city. Strategies in places as disparate as Barcelona, Detroit and Philadelphia have particularly focused on equipping workers with the skills they need to participate in the innovation economy or other secondary and tertiary jobs generated by innovative growth.

Finally, enhance access to capital to support basic science and applied research; the commercialization of innovation; entrepreneurial start-ups and expansion (including business incubators and accelerators); urban residential, industrial and commercial real estate (including new collaborative spaces); place-based infrastructure (e.g., energy, utilities, broadband, and transportation); education and training facilities; and intermediaries to steward the innovation ecosystem. Districts in Cambridge, Detroit and St. Louis have successfully re-deployed local capital to meet these needs.

 

It’s All Connected

Recipe for conflict. Every. Single. Time.

Recipe for conflict. Every. Single. Time.

Consider the following…

-When the CRA was founded in 1985, the total property value of the district was $245 million, today it is more than $1.6 billion and growing.

-In recent years, the CRA has received more than $6 million from the county annually in tax increment funding contributions; over the last three decades the total from the county is over $60 million. That’s funding that almost surely would have been spent outside the city if it didn’t go to our CRA.

–Over the years, our CRA has reinvested over $100 million in local TIF revenues in our city. The money has been spent on infrastructure, capital improvements, parking facilities, affordable housing, beautification efforts, economic development initiatives, land acquisition (turning unproductive property into uses that often produce jobs) and arts and culture that drive more jobs, tax revenues and quality of life. Signature projects include: the beautification of Northwest and Southwest 5th Avenue, Atlantic Grove, the Fairfield Inn, The Hyatt, Old School Square, the Delray Beach Public Library, Spady Museum, South County Courthouse (land acquisition), Worthing Place, the Downtown Master Plan, improvements to U.S. 1 and the new Uptown Delray project which includes plans for a long sought neighborhood grocery.

–From the Green Market and Municipal Tennis Stadium to historic preservation efforts and the Community Land Trust, the CRA has been an integral part of Delray’s fabric.

The list of achievements, public private partnerships, site development assistance, façade improvements and business grants goes on and on.

In other words, it takes a village to build a village.

And this village would not be nearly the same without its CRA. It has been far and away our best economic development tool and has only gotten more effective along the way.

CRA monies have always complemented the city’s budget, including paying for police officers to make our city’s downtown clean and safe and funding for planning and engineering initiatives that built a pretty cool city.

For most of the past 20 years, the CRA has been focused on the West Atlantic corridor and neighborhoods north and south of the avenue and east of 95.

More than $60 million has been spent on sidewalks, water pressure improvements, beautification, housing, lighting, parks, plazas and economic development initiatives.

This wasn’t a heroic contribution; it was the right thing to do. But it should be acknowledged as well.

Public spending should be directed where the needs are but this was not always the case in Delray Beach.

As late as the 1980s, large parts of the central business district suffered from blighted conditions and disinvestment. Pineapple Grove was an idea, but it was pretty decrepit when it was hatched. And that’s a compliment.

When I was elected to the City Commission in 2000, there were still a few unpaved streets in our southwest neighborhoods. Many blocks did not have good water pressure, sidewalks or lighting.

But there was a whole lot of vision and a lot of dedicated people working together on what became known as the Southwest Plan. When the citizen driven plan was completed and adopted by the city, spending by the city and the CRA was earmarked to bring the plan to life. And while much was done—see the above millions invested—it was clear that even more needed to be done to improve neighborhoods and to break the cycle of poverty that gripped many families in our city.

Beacon Programs—providing wrap around social, educational and health services—were created, a Boys and Girls Club opened with the invaluable help of Mayor Tom Lynch and former CRA member Marc DeBaptiste, the Village Academy opened and was expanded to cover pre-K through 12th grade and a Community Land Trust was established to add much needed housing in  underserved neighborhoods.

It’s a remarkable story of a community, a city and a CRA working together.

In community building, one of the first lessons you learn is that you are never “done.”

There is always more to do: more progress to be made, more challenges to overcome and more opportunities to seize.

That seems to be a no-brainer, but you’d be surprised as you make progress how many people want cities to declare victory and stop investing. That’s a mistake, complacency is a killer.

Usually, the argument is that spending needs to be directed elsewhere—and many times it does. But community building is not a zero-sum game.

You can and should invest in multiple neighborhoods. It’s not a choice between East Atlantic and West Atlantic or between the downtown and Congress Avenue as some elected officials wrongly claim. Sure, you need priorities, but that doesn’t mean that you neglect one part of your town in favor of another—especially when your city is interconnected and certain neighborhoods provide the fuel and the funding to ensure that needier neighborhoods can receive what they need.

A friend has pointed out to me that it is impossible to improve blighted residential neighborhoods without the cash generated by successful commercial development.

Residential neighborhoods—especially ones that have problems—do not generate the tax dollars to do the job. But successful downtowns do. And because East Atlantic has performed so well, TIF dollars generated as a result can be and have been (for a long time now) used to fund improvements to West Atlantic and adjoining neighborhoods.

The key to doing more is to keep your pump healthy—to maintain your focus on all parts of your downtown and to create new economic drivers such as Congress Avenue, US 1 and the four corners of Atlantic Avenue and Military Trail.

The other key is to support, collaborate with and sharpen your economic development agencies.

Schools, quality health care, a strong business community, the arts, recreation and open space are also critical components—along with safe streets and a city government that provides services efficiently.

If that sounds like a lot, it is. Remember, you are never done and if you think you are, complacency or smugness will bite you.

 

 

 

The American Dream Is a Local One

dream

Social and economic inequality is shaping up to be a centerpiece issue in the 2016 presidential campaign.

The issue is at the core of “The American Dream”, the notion that in America anything is possible if you work hard and play by the rules.

On both ends of the political spectrum; the left and the right, there is a sense that even if you do those things it’s becoming harder and harder to get ahead in America. There’s a sense that it’s more difficult for the poor to ascend to the middle class and beyond, for the middle class to stay in the middle or move up a rung and data shows that indeed the rich are getting richer.

Democrats tend to think that government provides solutions and Republicans want to get government out of the way.

I don’t think either party has a lock on the truth or the answers and when it comes to Washington both parties have failed—a judgement in which both party’s presidential candidates and grassroots seem to agree.

So with Washington failing and hopelessly gridlocked, policy innovation and economic development seem to be left to the states, counties and cities in our nation.

I think the most action happens on the city level, where government is closest to the people and–theoretically at least– most accountable.

That’s why it’s critical to keep informed and get involved in your community.

I think local policymakers have a tough job to do.

The decisions they make are often personal and they vote not in some far off place, but often around the block from where they live. I can’t remember the last time I saw my Congressman or State Representative but local elected officials are easily located—well most of them are or should be. If you can’t find them, get rid of them.

So I think the issues of inequality being talked about by candidates ranging from Bernie Sanders to Ben Carson will actually be dealt with by mayors, council members and commissioners in cities across America.

The fate of the American Dream has been localized.

Which states, cities and regions will offer quality education and economic opportunities? Which cities will work on innovative policy solutions to create attainable housing for young people and allow the rest of us to age in place if we choose to stay?
Which cities will tap into the tremendous human capital that exists in our cities and in neighborhoods that many choose to overlook or ignore?

Which cities will aspire to create special places that will attract and retain creative people—artists and entrepreneurs?
Who will wake up every day on a mission to create opportunities and protect cherished and hard won victories?

Cities have to strike a delicate balancing act—they must respect the past, take care of the present and prepare for the future.

Often times they skip the first and last responsibilities and spend their time on the issue du jour. That’s a mistake. Respect for the journey is critical.  The past informs the present and also can guide you into the future. Neglecting the future will leave your city vulnerable to communities that are working to further the American Dream.

Ask yourself where your city is on this spectrum of thought. Let’s hope they are addressing the past, the present and future.

 

 

 

In Praise of the Delray Chamber

Delray Chamber CEO Karen Granger

Delray Chamber CEO Karen Granger

Editor’s note: We are off to Las Vegas on business (really) and we’ll be back next week with some new posts. But if we don’t return, it’s because we won big at the tables (boardroom tables) and we have bought an island. Have a great week.

You could feel the enthusiasm as soon as you walked into the room.
These are good times for many local businesses and the Delray Chamber is once again at the forefront of commerce in this city.

A large crowd gathered Friday night at the Delray Marriott to honor its best and there was genuine happiness and appreciation for the talented business people in the room.
Under the leadership of President Karen Granger and the hard work of a happy staff, the Delray Chamber is back to doing what it does best: creating a sense of community among local businesses through networking, advocacy, programs and events.
Chambers of commerce can seem old fashioned in today’s high tech environment. But there is still a need for local businesses to know one another and to support each other. As a result, chambers still have an important role to play in communities.
Boca’s chamber has long been the gold standard of local chambers– flush with members and resources.
In Delray, the chamber has always been a little less corporate and more small town in its style and approach. But it seems today that the Delray chamber is both honoring the warmth of its past (the organization is marking 90 years) and moving boldly into the future with outreach to younger professionals and tech companies.
The Chamber is also recognizing and working closely with local non profits, has always sought a close relationship with the city,  and is championing collaboration, smart growth, intelligent debate and strong schools.
It’s a compelling mission.
And an important one too.
As Delray changes, there is a desire to honor and preserve its rich history which is critically important. But there is also a desire to “round out” Delray’s compelling list of attributes in order to make its success sustainable.
The chamber– which has always supported arts and culture and food and beverage– wants to grow and diversify the economy by nurturing entrepreneurship, encouraging a nascent fashion cluster, strengthening retail and promoting office development.

There is also a strong desire to look beyond the downtown to places like Congress Avenue, the Linton corridor and areas west of the city limits. There is also a push to work with neighbors and be a larger player in Palm Beach County and South Florida.
It’s going to happen. Why? Because there is passion and talent and when an organization aspires great things happen.
Great cities need strong schools, safe neighborhoods, quality housing, good government, involved citizens and a thriving business community.
Business is not a special interest. It’s a stakeholder; an essential piece.
As I saw the best and brightest win awards last week while mixing and mingling with each other I couldn’t help but get swept up in the moment. When business is strong, so is the community.
Our chamber deserves a round of applause for its role as a resource, convener, advocate and friend to all of Delray. We are a greater Delray Beach as a result.