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The Future of Sustainability at Universities

September 27, 2022 by Sal Gullotta

Here at ESI, we’ve long amplified the point that universities and hospitals have huge economic footprints, and that the employment hubs, procurement opportunities, and tax revenue generation they represent emerge from and are driven by the fulfillment of their deepest institutional missions. It is also true that these large-scale institutions have huge environmental footprints, and with ecological sustainability and energy justice ascending as community-wide social challenges, it is incumbent on universities and hospitals to have comprehensive, decisive forethought about their operations. With this in mind, ESI President and Principal, and Universities & Hospitals practice leader, Lee Huang, recently sat down with Senior Advisor Dan Garofalo, former Sustainability Director at University of Pennsylvania and current adjunct faculty member at Penn and Temple, to discuss the state of the industry. This interview has been edited for brevity.

Lee Huang: Dan, what’s the bottom line case for sustainability?

Dan Garofalo: For most universities, energy is second only to payroll on the operating budget. That can be tens of millions of dollars a year for an institution as large and complex as Penn. And if you are largely or exclusively exposed in fossil fuels, you’ll be subject to price shocks such as what you’re seeing now due to bad actors and global conflict (although recent price increases have been somewhat mitigated by the growth of the renewable sector and increased domestic fossil fuel production). Conversely, locking into long-term sources of renewable energy means lower and, equally importantly, more predictable costs.

Lee Huang: How do you operationalize sustainability at such a scale?

Dan Garofalo: Besides energy sources, sustainability professionals consider all the intersection points between environmental footprint, annual operations, and consumer preference:

Upgrading systems and winterizing buildings makes them more comfortable for users.
Prudent stormwater management mitigates against local flooding – a much more costly reactive burden.
Tree cover provides cleaner air, cooler summer temperatures, and a more aesthetically pleasing campus.
Transit subsidies lower your parking needs, reduce local congestion, and cut emissions from single-occupancy car commuting. Using local transit can also help faculty, staff, and students participate more fully in the urban experience, which is part of a great institution’s mission.

Lee Huang: Penn has long been a leader in its procurement practices. What if anything does that have to do with sustainability?

Dan Garofalo: Penn Purchasing has worked hard to cultivate relationships with local suppliers, which in addition to mitigating the carbon footprint of transporting goods long distances also strengthens the area economy and yields closer working partnerships with vendors. R1 institutions have enormous footprints, and by setting rigorous sustainability purchasing standards, they can have significant impact up the supply chain. I’m heartened to see so many schools in the region move intentionally in this direction and glad they are seeing the many benefits from this approach.

Lee Huang: What do you make of national university sustainability rankings, some of which score Philadelphia schools high and others which don’t?

Dan Garofalo: Institutions and campus settings are so varied that it can be difficult to impose a uniform rating system that tells you that one school is doing better than another. Throughout my career, I’ve had the pleasure of working on sustainability at different institutions and at being in touch with my peers nationally and internationally. The similarities and differences abound; we shared a lot of common objectives and tactics, but there are many other things that were necessarily institution-specific. Looking ahead, I imagine more of the same: comparing notes and creating collaboratives, but also finding site-authentic strategies that will resonate at the community level.

Dan Garofalo | Garofalo@econsultsolutions.com

Dan Garofalo is a creative problem-solver and strategic thinker with more than 30 years of experience in a variety of consulting, institutional, and government roles. As an accredited LEED architect, he has overseen and planned sustainability projects for public sector, higher education, and non-profit organizations to improve lives and promote equity.

Lee Huang | Huang@econsultsolutions.com

Lee Huang is President & Principal at ESI. Lee brings over 20 years of experience in economic development to his public, private, institutional, and not-for-profit clients. His economic inclusion work has included analyses of the utilization of minority- and women-owned businesses in municipal contracts in Philadelphia, as well as examinations of home lending, business lending, and branch location patterns in Philadelphia, Washington, DC, and New York City.

Universities and Hospitals Rubrics

September 9, 2022 by Sal Gullotta

University Environmental Scans in an Era of Unprecedented Uncertainty

Demand is up for university environmental scans because institutions need to understand the shifting landscape in which they compete. Soaring student loan debt has caused students, families, and lawmakers alike to relitigate the value proposition and financial mechanics of paying for a four-year degree. A proliferation of educational offerings and credentialing bodies has significantly crowded the primary competitive landscape in which universities operate. Growing public concern for matters of environmental sustainability, racial equity, and economic disparity has shone a particularly intense spotlight on institutions as either contributing to or alleviating these societal challenges. Two-plus years of COVID have stressed finances, created operational uncertainty, and yielded changing student and staff preferences, to say nothing of the chill put into national and international student mobility.

ESI is proud to apply economic rigor and real-world experience to its work for universities and hospitals. We welcome the chance to support you in determining what’s next, what should be next, and how to get there. The environmental scan rubric below is provided as a resource for administrators to forge that path.

Assessing What is Next and How to Get There:

Consumer Market – How would you characterize who you will serve in the future, and what do available projections tell you about the growth rate and geographic location of those potential students?
Competitive Landscape – Where do the students who don’t choose you end up and why, and how will that difference become more pronounced if left unaddressed?
Pedagogical Models – Who is doing interesting and innovative work in your field, and what would it look like to support, partner with, or otherwise incorporate that in your academic offerings?
Accreditation Trends – Where are accrediting bodies likely morphing over time and what do you need to do to adapt accordingly?
Student Preferences – What do you know about what future students want to study, what platforms they prefer to access those studies, and what else they want out of the campus experience?
Employer Needs – Can you articulate the fields, credentials, hard skills, and soft skills that your students’ future employers seek?

Download the full University Environmental Scan infographic rubric here: University Environmental Scan Rubric

DIY DEI

At a university, DEI can no longer be the purview of one VP or one department. Rather, DEI is a core missional element that should permeate all facets of an institution’s operations. DEI audits are a useful way for institutions to take stock of different aspects of their operations from a DEI lens. To support the industry, ESI provides the following “DIY DEI” rubric for administrators to use as a reference for self-assessment and self-improvement.

Self Assessment and Self Improvement

Student Experience

Marketing materials
Outreach to prospective students
Admissions process
Student body composition
Approach to financial aid
New student orientation
Curriculum
Support resources on campus

Human Resources

Recruitment efforts
Building a pipeline
Faculty and staff composition
Soliciting employee feedback
Approach to promotions and raises
Support services

Procurement

Policies
Organizational infrastructure
Data infrastructure
Programs and events
Supplier relations
Naming, tracking, and reporting metrics

Climate

Grievance procedures for students
Grievance procedures for employees
Hate speech policy
Approach to confronting and addressing past wrongs
Approach to addressing unacceptable behavior
Anti-racism and anti-sexism training
Approach to allowing space for dissent
Approach to campus and local police

Governance

Composition of senior leadership
Composition of governance board
Building pipelines
Putting DEI on the governance agenda
Public statements by leadership on DEI issues
Mechanisms for student voice

Community Relations

Service to and engagement with surrounding neighborhood
Investment in and connection to civic-serving organizations
A welcoming campus
Intersection points for campus and community
Fulfilling institutional mission through community resource/service provision
Exposure, education, and pathways for local students

Download the full DIY DEI infographic rubric here: DIY DEI Rubric

University Social Impact Rubric

ESI has conducted economic impact studies for over 50 universities, hospitals, or groups of universities and hospitals in the past five years. These economic impact analyses are a critical part of institutions’ messaging to stakeholders – electeds, the local business community, and its own network of students, employees, and alumni – because they demonstrate how institutions are major economic engines, generating economic opportunity at a local level and ensuring the sustained economic competitiveness of the regions they are in.

Every single one of these economic impact studies has included coverage of the social impact of the institutions. That is because universities are more than just large employers and major procurers of goods and services. Their institutional missions mean that their economic footprint accomplishes broader social purposes: lifting up a local community, strengthening the fabric of a region, contributing to society as a whole. Hence, it has been appropriate, in the course of articulating an institution’s contribution of economic output, jobs, and tax revenues, to also speak of its social impact.

Social impact has only become more important to achieve and articulate in recent times. A global pandemic, national reckoning around systemic racism, and rampant tuition unaffordability have intensified the scrutiny imposed upon universities – by students and staff, alumni, community members, and elected officials – to assess and undo their complicity in structural wrongs and to invest in a more positive and sustained social impact.

As a service to the sector and individual institutions, ESI presents this open-source rubric for social impact that universities can use for self-scoring and self-improvement. Components of this rubric have been utilized in previous ESI reports and are now presented as a collective framework for institutions to measure and monitor social impact. A brief bibliography is also presented to encourage further exploration on this critically important topic.

We strongly believe universities hold the promise for great positive benefit to be produced. It is our sincere hope that this rubric will enable an honest assessment of an institution’s social impact, for purposes of committing to strengthening strengths and shoring up weaknesses. Our communities, our regions, and society as a whole hang in the balance.

Serving the Immediate Community

Service to / in the Community
- Being a “good neighbor” through volunteer service (and mitigating against potential negative effects on community)
  - Volunteer service hours
  - Service learning course
  - Pro bono services
  - Anti-displacement measures
On-Campus Resources
- Investing in the campus being an amenity for the immediate neighborhood
  - Recreational Facilities
  - Green Space
  - Educational Opportunities
  - Cultural Programming
Public Safety
- Working with community to prioritize and invest in safety
  - Public safety infrastructure investments (e.g. lighting, call boxes
  - Emergency calls handled by institution rather than locals

Strengthening Community Capacity

Building Civic Infrastructure
- Strengthening local-serving institutions
  - Direct payments and in-kind contributions to neighborhood-serving non-profits
  - Mechanisms for regular interface with community on issues of shared interest
K-12 education
- Investing in local schools
  - Direct payments and in-kind contributions to local schools
  - Area-wide teacher training and curriculum development
Public Health
- Investing in community wellness
  - Direct provision of medical, dental, and other services
  - Educational resources for community members

A More Just Society Starts on Campus

Affordability/accessibility
- Ensuring that a college degree is more broadly available
  - Scholarship and financial aid
  - Analysis of return on investment and income parity among alumni (particularly for under-represented groups)
Economic opportunity
- Operating footprint is being used to address economic inequalities
  - Utilization of minority and women owned firms in procured goods and services
  - Employee recruitment efforts for under-represented populations
Diversity and inclusion on campus
- On-campus realities reflect desired societal values
  - Racial/ethnic make-up of students and employees
  - Support resources for under-represented populations

A More Robust Society

Innovation and competitiveness
- Regional economic competitiveness through innovation activity
  - STEM majors/graduates
  - Research budget
  - Invention disclosures, patents, licensing agreements
  - Business start-ups, venture capital attracted
Environmental sustainability
- Operating footprint is mindful of contemporary ecological challenges
  - Carbon footprint
  - Energy efficiency
  - Recycling initiatives on campus
  - Fossil fuel usage
Societal thought leadership
- Intellectual activity advances society
  - Spiritual or otherwise values-led research and scholarship
  - Leadership participation on contemporary social issues

Download the full Social Impact infographic rubric here: University Social Impact Rubric

Lee Huang | Huang@econsultsolutions.com

Lee Huang is President & Principal of Econsult Solutions. Lee brings over 20 years of experience in economic development to his public, private, institutional, and not-for-profit clients. His economic inclusion work has included analyses of the utilization of minority- and women-owned businesses in municipal contracts in Philadelphia, as well as examinations of home lending, business lending, and branch location patterns in Philadelphia, Washington, DC, and New York City.

Smart Water Management and the Future of Cities with Dr. Allison Lassiter

August 26, 2022 by Sal Gullotta

Climate change poses challenging and potentially catastrophic disruptions with rising sea levels and consequential flooding in coastal communities around the world. Our already strained and vulnerable water systems will need to be restructured as we think about how to better prepare our cities for climate adaptation. Today in Present Value, we had the opportunity to interview the University of Pennsylvania’s Allison Lassiter, assistant professor of city and regional planning, on the role technology plays in increasing the resiliency of our urban water systems and why we must start planning for it now.

What is climate resiliency planning? And what role do you think technology has had in strengthening it?

“One of the big challenges that we are having is an increase in the number of extreme events occurring. So, we have a greater range of climatic experiences to deal with. And one of the big challenges that we’re faced within our cities, is how do we increase flexibility and our ability to respond to this broader range of conditions? A lot of our existing 20th century infrastructure is very rigid. Although we have concrete aqueduct metal pipes, everything is sort of fixed in place. So, one of the advantages of smart technologies and a lot of digital technologies is they can allow us to be more responsive.

You can do things like use advanced sensors and wireless networks to predict demand, and then match the amount of water that you’re feeding to areas to the water that’s being demanded at any moment in time. So, you have more minutely matching supplies and demands. You can do things like predict when there’s going to be a storm and then use better flood management techniques at dams. You can do things like better control the flow of water through cities, so that you can predict if you think a pipe is going to burst, especially if it’s been poorly maintained, and then manage pressures around that pipe accordingly.

So, there’s a lot more ability to create and make systems more locally adaptable, as opposed to just sort of one system that can’t change with local conditions. That’s a big opportunity, I think, with digital infrastructures, and with climate resiliency in general, is making more fixed systems more resilient and flexible.”

Your current research efforts focus on how rising sea levels push saltwater inland, and the impact it will have on coastal regions… What are the consequences of this and why should we start preparing for it now?

“We are still exploring exactly what the timeline is of this problem is, and who’s going to be exposed to this. But in the U.S., and around the globe, most people live pretty close to the coast. So there’s a lot of people who get their drinking water supplies just inland of where the ocean is —maybe from a river or groundwater. And as sea levels rise, it will bring oceans further inland, and with it, all the ocean salt. So this will happen both above and below ground that the place where, all of a sudden, the water kind of turns salty—it’s going to be further inland.

So there’s a bunch of different problems with the one—we just kind of don’t like drinking salty water. A quality-of-life issue there. Two, things like our plants can’t really handle salty water. So if you’re going to water your lawn with salty water, you’d kill it. And more consequentially, there’s public health impacts to drinking salty water, and then also running salty water through our pipes. This can cause pipes to corrode, and it can release heavy metals into our water streams. There could be a potential situation like Flint occurring in other cities as we change our water chemistry and as metal precipitates in our pipes.

It’s also bad for infrastructure lifespans. Salt corrodes and so it’ll reduce the lifespans of pipes and pumps and kind of everything along the way, which could increase operations and maintenance costs. And already water systems are challenged to keep up with operations and maintenance costs, so that would just add to the ongoing burden.

Figuring out how to adapt is the trick. I think a lot of people believe, oh, just find a new water source. But that’s pretty tricky. Most water sources are claimed and being used, and there’s not a lot of free water available. Or you might think, hey, build a desalination facility, and that’ll work in some places. But desalination facilities are really expensive and require a lot of energy to function. So they’re just not the right solution for a lot of less-resourced communities. Maybe a larger city would be able to build one, but smaller, more rural areas would probably struggle with that. Even for a large city, the desalination facilities don’t produce large volumes of water. So you have to have a really, really big facility that takes up a lot of land area in order to produce a fraction of the water that a city would want.”

What technologies can help build out a city’s climate resilient water system?

“One of the things that will greatly help with drinking supply adaptation is just reducing our water demands. Conservation is the very first thing that needs to happen, or increased efficiency in water use. If we need less water, then we don’t have to maybe desalinate as much water or produce as much fresh water. So it takes pressure off the salination system.

Smart technologies can help with a lot of different efficiency goals like managing pressures in the system to better to reduce the leakage. You can even do things like start to think about alternatives—reusing water within buildings or doing a better job capturing stormwater and then dynamically allocating it to meet some of our non-potable water needs.

There’s a future where we bring in more types of water or different qualities of water, and so a water system where we use smart technologies as a way to allocate that water.

Being able to better grapple with water is essential climate adaptation. I would say it’s one of the most fundamental aspects of climate adaptation— is managing water resources. Water is the most important natural resource that we have. If we don’t have water, we don’t have a city. Everything depends on it—people, the economy, agriculture. So in my mind, making sure that we’re doing a good job protecting our water supplies is really the most foundational thing that we can do.”

Dr. Allison Lassiter’s research focuses on urban water management. She is currently working on evidence-based green infrastructure policy; adapting municipal water to rising seas; and smart water. She teaches courses on sustainable cities, smart cities, and water policy.

Kendra Hills, Intern | hills@econsultsolutions.com

Kendra Hills is an intern at Econsult Solutions supporting ESI’s Center for the Future of Cities. She is currently a Master’s student at the University of Pennsylvania, studying city & regional planning with a concentration in smart cities.

Unlocking Potential Economic Benefits for Low-Income EV Consumers

August 11, 2022 by ESI

A recent Present Value post titled Prioritizing Equity in EV Infrastructure Planning with Data highlighted the unlocked potential of electric vehicles (EVs), along with some of the current pitfalls preventing the industry from being truly equitable and accessible for all. As aforementioned, the journey to cleaner and greener cities is a long one, but with new infrastructure funding injected into America’s charging networks, the trillion-dollar bill has more consumers nationwide considering making the switch to EVs. Although Americans are eager to invest, the switch is happening unequally, particularly along income and racial lines.

Barriers to EV Purchase Affordability

The popularity of EVs originally emerged from the collective desire to reduce carbon footprints and lower greenhouse gas emissions. Toxic and harmful pollution from cars, and the subsequent highways that intersect through low-income neighborhoods of color, made the concept of electric vehicles seem like the perfect all-encompassing solution to equitable and cleaner air for everyone. Similar to other entry products, when EVs first hit the U.S. market they were mainly branded as luxury vehicles and marketed to the wealthy who could afford their hefty price tag. This resulted in the majority of EV buyers coming from high earning income households— largely leaving out low to moderate earning families. According to a survey by BlastPoint, EV consumers tend to be college educated, high income homeowners, and living in urban environments.

A recent social vulnerability report by the U.S. Environmental Protection Agency (EPA), along with a growing body of literature speaks to the unequal impact of climate change, is projected to mostly effect communities that are not equipped with the capital, resources, or information to recover from the its havoc. The EPA reports that the socially vulnerable populations – based on income, race, ethnicity, and educational attainment – are projected to experience the highest impact of climate change in six categories, with air quality and health being one of them. The also study found that Black and African American individuals are 34% more likely to live in areas with the highest projected increases in childhood asthma. Additionally, air pollution can exacerbate existing health conditions and increase the risk of heart attacks for adults older than 65.

Source: https://www.epa.gov/cira/social-vulnerability-report

Although the U.S. Federal government has issued up to $7,500 tax credits for the purchase of an EV, it largely benefits those who will owe that amount or more. According to a 2019 Congressional Research Service report, 78% of the federal tax credit was claimed by households with an adjusted gross income of more than $100,000. Furthermore, for high earning households, their EV vehicle is an additional vehicle, not their first. Despite the government’s efforts to incentivize EVs, high earning individuals who have participated would have purchased the vehicles regardless of the tax credit.

This disparity within this incentive doesn’t actually make EVs more affordable to the general public, and instead perpetuates more financial barriers. Income disparities continue with vehicle ownership costs such as fuel, insurance, maintenance, and purchase costs, which for low-income households, account for a much larger portion of their household budgets. Low-income households that bring in less than $25,000 or less spend nearly 50% of their budget on vehicle ownership cost, while households earning $150,00 or more only spend less than 10% of their annual income. It is clear that low-to moderate income households are best positioned to benefit the most from making the switch to EVs. Considering the potential fuel cost savings, and positive environmental benefits that come with the adoption of EVs, these communities should be prioritized in their employment.

Disparities in where charging infrastructure is located is also a barrier to EV adoption, particularly when looking at renters versus homeowners. Data from the 2017 National Household Travel survey finds that homeowners are more likely to own an EV than renters, even when controlling for income. Renters tend to have a lack of incentive to invest in EVs due to lack of infrastructure like outlets, and electric panels because they don’t own the property.

So not only do lower income households disproportionally suffer from poor air quality, but they also tend to drive older, used vehicles that contribute larger shares of pollution emissions into the air. If EVs largely benefit high earning homeowners, while further isolating low-income consumers from participating, who is really benefiting from the social and health benefits of a cleaner environment?

Recommendations for Widespread EV Affordability

Increase subsidies and incentives for lower income households. Current EV incentive programs benefit high earning households. Equitable access to incentives are crucial to increase the wider usage of these vehicles. Therefore, providing extra incentives for low-to moderate income households is paramount. Removing the income cap on the tax credit program and allowing purchasers to receive their incentive upon purchase of their EV will allow low-income buyers to offset the high upfront cost of EVs. Low earning households typically do not have the upfront cash capital to purchase vehicles and they should have to wait to access their funds.

Expand EV incentives to used vehicles and outside dealerships. Low to moderate income households also purchase used vehicles more than higher earning households, so expanding EV incentives to also include used EVs increases access and allows for more households to consider adoption. Along with the expansion to used EVs, low-income buyers would benefit from EV incentives being offered at other places other than dealerships. Low-income households may not have access to buy a new EV from a dealership, but instead may go to a local used car lot. Allowing incentives to be claimed through used car dealers would increase buying options for low-income consumers.

Rebate Programs for EV Charging Installations for Multi-unit Housing. Due to low-income households being less likely to have charging infrastructure at home, expanding current incentives to include not only the charging equipment costs but also the installation, will help incentivize potential buyers. It would also increase buyer confidence that they have safe and reliable way to charge their EVs. Additionally, low earning households who live in apartments, condos or multi-family units are less likely to not have access to home charging. There will have to be a new policy that addresses EV charging installation for existing multi- unit housing which will help ensure equality in installation. Partnering with affordable housing developers for new build developments that include EV infrastructure will be pivotal with ensuring access to everyone.

Sources

When might lower-income drivers benefit from electric vehicles? Quantifying the economic equity implications of electric vehicle adoption

How electric cars can advance environmental justice: By putting low-income and racially diverse drivers behind the wheel

6 ways to make electric cars more accessible to lower-income buyers, according to an economist

Facilitating Low Income Utilization of Electric Vehicles: A feasibility study

Electric Vehicles and Equity: How would aiming subsidies at lower-income households affect vehicle sales?

Make electric vehicles affordable for the rest of us

Electrified Transportation for All: How electrified transportation can benefit low-income communities

Evaluating electric vehicle policy effectiveness and equity

A perspective on equity in the transition to electric vehicles

Measuring the cost-effectiveness of electric vehicle subsidies

Kendra Hills, Intern | hills@econsultsolutions.com

Frank Robinson, Director | robinson@econsultsolutions.com
Frank Robinson is a director at ESI. Mr. Robinson has been a leader in the economic development and sustainable development industries for over 18 years, working with corporate, government and nonprofit clients, banks and credit unions, as well as community development financial institutions (CDFI) and small businesses. With a knack for creatively engaging clients and re-envisioning possibilities, he enjoys hammering out logistics and bringing forth new realities.

ESI Center for the Future of Cities: One year and Counting…

August 4, 2022 by ESI

Last year, Econsult Solutions launched ESI Center for the Future of Cities, bringing together the firm’s thought leadership and consulting work in urban economics, strategy, and analytics. Our goal is to make cities and regions of all sizes and shapes more competitive, more livable, and more equitable. We recognized that coming out of the pandemic, there was a need for understanding the changes that cities were going through, the future forces that would affect our great metropolitan regions, and the impact that new technologies and approaches would have on city residents, businesses, and governments.

What we have learned is that the new, post pandemic future of cities is still being written. Think about what we have seen in the past twelve months:

Changing Definition of Quality of Place

As we have moved from the COVID pandemic to the COVID endemic, we are realizing that getting back to what in 2019 we thought of as “normal” may never happen. Two years of work from home requirements may have fundamentally changed the future of work. In many cities, offices remain stuck somewhere between 40 and 50% occupancy rates, as combinations of COVID outbreaks and permanently changed work patterns have combined to reduce the physical presence of employees in now half-full (or less) offices. Professional service firms have struggled to find the right balance between the innovation and collaboration that comes from in-person meetings and encounters and the focus and efficiency that we learned was possible during the height of the pandemic.

The reduced office occupancy and shift in work locations has had other impacts on how cities and regions work.

Tax structures built on commuter taxes (like Philadelphia’s or New York’s commuter wage or income taxes) are less reliable sources of revenue with increased worker flexibility or outright remote work.
Downtown lunch spots and retailers are struggling due to reduced office occupancy, while neighborhood and suburban lunch spots are jammed with folks getting out of their home offices, creating new traffic jams and labor shortages.
Commuting patterns have been upended, with transit schedules built to service the rush hour peaks of 9 to 5 office days being reimagined to deliver more frequent services throughout the entire day to meet demand for mid-day meetings, reconfigured work schedules, and a more mobile workforce.

Our changing work life has also made a difference in our out of work time experiences. There has been an increased emphasis on outdoors experiences, whether that is sidewalk cafes and patio seating for restaurants, to increased use and demand for trails, parks, and other outdoor amenities. New policies for investments in these and similar amenities are now required for communities looking to compete for and retain talent which can now work and live almost anywhere. How we pay for this form of green infrastructure is a key policy decision going forward for many city leaders.

Over the last two years, ESI has been involved in a series of projects focused on the economic and environmental value of outdoor amenities, which we describe as the return on environment. Looking forward, we are seeking partners and collaborators interested in better understanding and documenting how a sense of livability is impacting the ability of cities to attract businesses and workers in this new reality that communities face. To do that ESI Center for the Future of Cities has developed a research focus area in Accessible Quality of Place. Connect with ESI Principal Gina Lavery for more information on how to get involved.

Smarter Cities, Post COVID

In the years prior to COVID, cities were beginning to scale up their efforts to adopt new technologies to operate more efficiently, reduce operating costs, and begin to address core issues of sustainability. In particular, larger cities and more prosperous cities were leading the way, as they had the resources and the technology foundations to build out smart city platforms.

The pandemic accelerated the need for adoption of smart technologies, not just for the biggest and most well off, but for medium-sized and smaller communities as well. Connectivity, not just between government agencies, but between the government and their citizens, has moved from a luxury to a necessity in rapid times. And that acceleration has helped to identify gaps that must be filled to meet new demand. Some examples include:

Internet access and affordability is crucial to the future of cities, both because of the increase in working and learning from home environments requiring on-line access, but also to deliver public and private services to citizens, such as online permitting and tax payments, but also telehealth for both physical and mental health care. Communities are in the midst of planning for new broadband investments, fueled by the federal infrastructure bill, Rescue Plan funding, and private investment in fiber and 5G.
An increased focus on sustainability and the long-term environmental cost of fossil fuels has led to an increased interest and public focus on increasing the number and availability of electric vehicles. However, there remain challenges in how cities adapt to this new reality. Many communities are not designed in a way to make electric vehicle charging infrastructure easily accessible to all residents, leading to concerns over future EV equity issues affecting low and moderate income households.
Changing work requirements and locations have resulted in dramatic disruption of commuting patterns have led to a need for innovation by transit agencies, as they seek to rebuild ridership in new and creative ways. Whether it is redesigning route systems, investing in new technology to allow for real time rider information, or designing new and innovative commuter pass models for businesses seeking to support employees return to work, smart transit will be a necessity for systems to regain ridership and financial sustainability.

Building on ESI’s groundbreaking smart cities research through its prior thought leadership initiative, ESI Center for the Future of Cities is launching a research focus on how cities and communities of all sizes are reimagining what it means to be a “smart city”. To learn more about how you can be involved, connect with ESI Principal Steve Wray.

Supporting Equitable Economies

COVID was not the only factor that has disrupted and fundamentally changed cities over the past two and a half years. The civil unrest in cities that followed the George Floyd murder created a new urgency for addressing centuries-old patterns of racial discrimination, segregation, and economic inequity. Business and governmental leaders have pledged to create new vehicles for investment in cities, and to develop partners and intermediaries to build new models for minority business development and growth.

Cities have always competed with each other as places of human expression, cultural exchange, and commerce. An important way that future cities will compete is as inclusive entrepreneurial ecosystems. This is true for two reasons. First, in our global knowledge economy, regions compete through innovation. Second, innovation requires diversity and intensity of interaction.

While innovation can emerge from anywhere in the world, cities represent an important location because of the possibility cities offer to gather people at scale, colliding together new insights and disparate perspectives to inch our way to breakthrough. That is, after all, the fundamental value proposition of cities, that concentrations of people create a virtuous cycle of discourse birthing new ideas, compelling more people and money to flow in, leading to still more engagement and energy and innovation.

But unlocking that value proposition takes hard and intentional work. For innovation cannot happen when entire groups are systematically excluded from making contributions and reaping the benefits based on race, ethnicity, sex, or income level. Unfortunately, there remains far too much disparity in access, resources, and opportunity in cities across the country, the legacy of historical injustices whose systemic influences carry into the present.

Thus, cities that fail to recognize and address the barriers that keep all entrepreneurs from succeeding will not only be less equitable places but also less successful places. Conversely, cities that desire to thrive in the future need to understand how to create inclusive entrepreneurial ecosystems.

Building on ESI’s work with economic development organizations, universities and hospitals, and local governments, ESI has built a research agenda focused on better understanding inclusive environmental ecosystems that help promote jobs and investment in new and exciting ways. Connect with ESI President and Principal Lee Huang to learn how you can get involved.

Stay Tuned

As you can see, we are excited about the future of cities, and see real opportunity for employing ESI’s unique combination of urban economic analysis and thought leadership to these challenges and more. If you are interested in any of these topics or have other ideas for working with Econsult Solutions and ESI Center for the Future of Cities, please connect with Steve Wray or Mike Daly and we will be glad to follow-up.

Steve Wray, Senior Vice President & Principal | wray@econsultsolutions.com

Steve Wray is a senior vice president and principal at Econsult Solutions. In this role, Steve focuses on the development and implementation of programs and projects that support ESI’s vision and short- and long-term plans.

He leads the work of the firm’s principals and senior staff in developing new partnerships, expanding and building on existing practice areas, and integrating the firm’s strengths in economic analysis and thought leadership. Mr. Wray joined ESI in 2017 as a Director and was promoted to Vice President, Strategic Initiatives in 2019.

Adaptive Reuse – Moving Forward in a Post-Pandemic World

July 29, 2022 by Sal Gullotta

Before the COVID-19 pandemic outbreak, roughly 23% of people would work from home either all the time or most of the time, given that their place of employment and specific job allowed for it. That is quite different from the situation now. About 59% of people are working from home all or most of the time if given the opportunity, with that number getting as high as 71% of people in October of 2022.

Yet still the fact remains—a much larger percentage of people are now working from home most, if not all, of the time. What does this mean for office buildings and office space? Nobody knows for sure, but there are suspicions that many office spaces, especially older or obsolete offices, will not see a return to their previous vibrancy. Hence, office reuse plans and strategies can play a significant role in reshaping these once bustling structures, and contribute to more efficient cities and spaces.

All Work, All Play

In cities where this is the case, and that has become many cities now, communities can restructure where activity takes place. As opposed to simply having one major hub spot where much of the activity is generated, cities can become a bit more decentralized in their approach. Yet while all of this is going on, the question remains—what will become of much of the unused office space?

Adaptive Reuse Strategies

Adaptive Reuse essentially refers to taking an already-existing structure, such as an office building that is no longer used and converting it or adapting it to have another use or function. Taking the development and repurposing it to fill a new need in the current world is the crux of why adaptive reuse plans are brought about. One of the more prevalent applications of adaptive reuse is converting older office buildings into housing units.

With this potential to bring about new housing and possibly alleviate strains in housing, also comes a chance of displacement in communities. This way, adaptive reuse can help act as a further catalyst in alleviating the housing crisis.

Meanwhile, housing is not the only option for reusing these structures. Infrastructure for new green space, pedestrian use, and cleaner transportation methods such as biking can be a prime opportunity to take advantage of when repurposing office spaces.

Environmental Benefits

Reusing building space can also have a significant positive impact on the environment, or at least refrain from some environmentally damaging courses of action. For example, it is a more sustainable method that counters the hauling of materials to landfills. The reduction in materials required for construction is a key component of simply reusing old space, and in general they also just require less time for construction or converting.

Aesthetics of Adaptive Reuse

Aside from these benefits of adaptive reuse, it also just looks better and feels better to have space being utilized and enjoyed by people. Whether that be housing, green space, small businesses, or some other infrastructure of some kind, reuse breathes more life and vibrance into communities rather than having empty office buildings, or construction development that will take years on end to complete. Also, on a more aesthetic and artistic note, architectural details of older structures can be maintained. This aspect often carries the character and uniqueness for communities.

Closing Thoughts

All in all, adaptive reuse done correctly can be a fantastic opportunity for giving new life to structures and cities. These buildings that are now seemingly becoming obsolete due to the uptick in remote workers amidst the pandemic can be transformed for the betterment of residents.

Salvatore Gullotta | gullotta@econsultsolutions.com

Salvatore Gullotta is an intern at Econsult Solutions working in the Business Development and Marketing Department. He is currently a second-year student at Drexel University, and assists at ESI with proposals, content management, (managing ESI Present Value [weekly blog] and social media), and other communications tasks.

Peter Angelides | angelides@econsultsolutions.com

Dr. Peter Angelides is President & Principal of Econsult Solutions, Inc. (ESI) and a member of the teaching faculty at the University of Pennsylvania. Dr. Angelides has high-level expertise in both economics and city planning, applying critical economic thinking to projects in real estate, economic development, transportation, tax policy, valuation and litigation.