2014

Wilmington Downtown Development District Application

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Econsult Solutions, Inc. and Interface Studio, LLC assisted the City of Wilmington and Wilmington Housing Partnership in submitting an application to the State of Delaware for its Downtown Development District (DDD) Program.  In January, Governor Markell officially designated Wilmington as one of Delaware’s first three DDDs.  This designation qualifies real estate development projects for various local and state incentives and is part of the city of Wilmington’s broader effort to create a vibrant and connected downtown area.  Econsult Solutions, Inc. and Interface Studio, LLC played an instrumental role in the application submission, leading weekly stakeholder meetings, conducting economic and planning analysis and assembling application content.  Both firms will continue to assist the city of Wilmington in implementing its DDD.

You can read a copy of the entire Wilmington DDD plan and download the Wilmington DDD application submission below.

Technology Transfer and Commercialization in Greater Philadelphia

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Econsult Solutions, Inc. (ESI) and CEO Council for Growth, an initiative of the Greater Philadelphia Chamber of Commerce, have teamed up to release the Technology Transfer and Commercialization study, which examines the Philadelphia region’s economic growth into the future.

The study sought to lay a road map on how the Philadelphia region can further capitalize on its culture of innovation and entrepreneurship while measuring how the region stacks up with other leading regions around the country.

The study also set an “overachieving” goal for the region’s research institutions to create 10 companies that will grow to a liquidity event of $100 million or more over the course of next 10 years.

Results found that the Philadelphia region scored well in research categories due in part to its dense array of institutions of all sizes and disciplines. Conversely, the study also found that the region lacks in activity when compared to other leading regions. In fact, the highest ranked regions were found to boast two or more times activity than Greater Philadelphia. The region’s dense array of institutions has not translated to equitable amounts of commercialization when compared to other leading regions.

In order to grow the region’s commercialization output, the study recommends the following steps:

  • Funding – Public and private sector participation should be recruited to fund additional pre-venture capital funds and business acceleration services.
  • Advocating – The region should advocate for policies at all levels at all levels of government that demonstrate a commitment to innovation as an economic driver.
  • Collaborating – Collaboration must be encouraged, particularly through the use of shared space and shared equipment. A particular focus should be placed on elevating the work of the region’s engineering schools, given the promising intersections of engineering and health care, engineering and energy and engineering and advanced manufacturing.
  • Promoting – The region’s leaders must work together to promote the region as an innovation hub, making particular appeals to venture capital firms seeking deals, young research and entrepreneur talent seeking a place to learn and grow and established entrepreneurs with regional ties who can help grow the next generation of start-up ventures.

‘Stronger Together’- New Jersey Economic Impact Report

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Econsult Solutions, Inc. (ESI) was asked by the Housing and Community Development Network of New Jersey to contribute on their economic impact report, Stronger Together. The report was recently featured on WMBC-TV on Wednesday, June 17, 2015.

The report, titled, Stronger Together: The $12 Billion Impact of Community Development Corporations in New Jersey, was published last year and explores New Jersey Community Development Corporations (CDCs) and the value that they can add to New Jersey’s economy, in particular, in creating solutions for New Jersey’s affordable housing shortage.

New Jersey CDCs are non-profit organizations that work to revitalize their local communities. This includes the construction of new affordable housing, the building and reconstruction of small commercial spaces, and the creation of jobs, including offering job training.

The report findings reveal:

  • Over 1,500 developments were undertaken by New Jersey CDC’s that generated a total economic impact of $12 billion.
  • New Jersey CDCs have added 82,000 jobs and provided job training to over 10,500 local residents over the past twenty-five years.
  • In the past twenty-five years New Jersey CDCs have also contributed $5.5 billion in worker wages and in contracts with local businesses and have employed 10,000 permanent staff members.
  • CDCs are a $500 million dollar a year industry.
  • CDCs directly invested $6.5 billion in New Jersey neighborhoods and added $320 million to state tax rolls.
  • CDCs constructed and rebuilt over 21,000 affordable homes for New Jersey residents.
  • CDC built over 5 million square feet of commercial business space for new and expanding small businesses.

 

For more information on the report in the news, click here.

For more information on the Housing and Community Development Network of New Jersey, click here.

Economic Impacts of Newark, N.J’s Amended Rent Control Ordinance

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Econsult Solutions, Inc. (ESI) was commissioned by the Newark, N.J. Apartment Owners Association, Inc. (NAOA) to measure the economic and fiscal impacts of recent changes in the city of Newark’s rent control ordinance. The city of Newark recently amended its rent control ordinance in an attempt to tie rental increases into the changes in the U.S. Consumer Price Index (CPI) and to require greater rehabilitation investments when a unit becomes vacant to qualify for larger rent increases.

This study provides a conceptual and empirical framework for assessing the impacts of changes in the newly passed rent control ordinance on Newark’s apartment community, the city’s economy and the city’s municipal finances. This is accomplished first by understanding conceptually and then using actual data for the city to decipher how rent control affects rents in Newark and how those rental impacts affect the investment decision making among apartment owners and potential investors.

Limiting rent increases to the CPI in conjunction with a dramatic increase in the required threshold investment for larger rent increases upon vacancy will result in disinvestment, declining quality of apartment communities and adverse impacts on Newark’s neighborhoods.  Moreover, these changes will have significant negative impacts on employment and economic activity in Newark and will diminish the city’s tax base and tax revenues, which will put greater pressure on Newark to reduce essential public services such as education, safety and recreation.

ESI estimates that the recent changes in the ordinance will:

  • Reduce capital improvement investment in apartment communities by $3.3 million annually
  • Reduce decontrol-related investments by $17.9 million annually
  • Reduce annual maintenance expenditures in apartment communities by at least $4.0 million
  • Lower the quality of living in apartment communities

Economic Analysis of Detroit’s Food System

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Econsult Solutions, Inc. (ESI) teamed up with Urbane Development, LLC, and the Detroit Food and Fitness Collaborative (DFFC) to conduct and release an economic analysis of the City of Detroit’s food system.

Through various research tactics, the study sought to assess the current state of Detroit’s food economy, highlight the opportunities and challenges shareholders face with the city’s food sector and develop a strategic approach to cultivating a reliable and economically sound food system for all Detroit residents.

The report arrived at a critical time for the future of Detroit’s food system. With a new mayor in office, burgeoning interest in the revitalization of the city and an increased national and regional focus on the importance of local food, it was timely for Detroit to discuss the role of efficient and equitable food systems in its economy.

With input from ESI senior advisors Gregory Heller and Catherine Timko, the economic analysis determined:

  • The Detroit food system produces $3.6 billion in revenue and directly employs over 36,000 people earning close to $1 billion in salaries and wages per year in the City of Detroit
  • Including Wayne, Macomb and Oakland counties, the food system in the Detroit Metro area is responsible for $45.8 billion in economic impact, supporting 59,000 jobs and about 1.9 billion in wages and earnings per year.
  • The Detroit food system pays less, provides fewer jobs and garners less revenue than comparable regional food systems throughout the country.
  • With a 30 percent localization shift, the food system would become the second-largest industry in Detroit’s economy, represent $5.4 billion in annual revenues, directly employ over 52,000 people and represent $1.3 billion in annual wages and salaries.

 

Philadelphia Community Sustainability Initiative Report

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On July 30, 2014, ESI President, Stephen Mullin, The Reinvestment Fund President of Policy Solutions, Ira Goldstein and the City Council’s Housing and Community Development Executive Director, Herb Wetzel, participated in a press conference to announce an innovative, data-driven strategy to measure quality of life indicators in every Philadelphia neighborhood. This conference explained the targeted policies, planning and budget decisions that will enable Philadelphia to achieve its full potential as a prosperous, forward-thinking city. The Community Sustainability Initiative (CSI) is a challenge to residents, businesses, institutions and government to make every Philadelphia neighborhood a Community of Choice.

In collaboration with public policy consultants The Reinvestment Fund, and Econsult Solutions, City Council has compiled data on quality of life indicators across the city. The CSI establishes seven core measurements for the following areas:

  • Housing Demand: Median sales price, building permits, residential sales price
  • Housing Distress: Act 91 notices, foreclosure filings
  • Crime & Safety: rate, 311 report rate, % vacant buildings, % vacant lots
  • Education: Great Philly Schools quality rating, crime within ¼ mile of school
  • Amenities: Distance to nearest library, bank, recreation center
  • Prosperity: % cost burdened, median household income, % owner occupied
  • Commerce: Availability and diversity of food establishments, retail and personal service options

Used in conjunction with mapping technology, this data will demonstrate the health of neighborhoods based on these consensus quality of life indicators. More significantly, the data will speak for underserved communities that have not been able to advocate more successfully for themselves.

The data collection will be refined and complemented by community input, which City Council will solicit via neighborhood outreach in coming months.