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The Future of Cities is Accessible Quality of Place

January 21, 2022 by Laura Burtner

Technological disruption, public health scares, and pushback against systemic disparities have all elevated the importance of and demand for quality places in urban settings. At a time when technology and infrastructure have enabled people and businesses to locate anywhere and collaborate virtually, city and regional leaders increasingly need to evaluate, refine, and in some cases redefine the value proposition that places offer residents.

The concept of quality of place—including but not limited to walkability, transportation assets, cultural amenities, job opportunities, educational resources, open space and recreation—is not a new concept in discussions around economic competitiveness and resident/business attraction and retention. But it is often centered around placemaking strategies, and has been discussed for the last couple of decades at least, as a way to attract the creative class to a region.

In 2022, it is imperative to view investments in quality of place more broadly as the qualities and characteristics that people value in where they chose to live have shifted:

The shifting norms in virtual/remote work have accelerated due to the COVID-19 pandemic
The increasing spotlight on diversity and inclusion requires cities to be more intentional and equity-focused in their growth strategies.

In a distributed world where workers can live and work anywhere, the very value proposition of cities as a place where diverse groups can come together at scale to learn, create, and recreate is at stake. That means that quality places will need to equitably advance accessibility, promote wellness, and foster innovation.

Answering key questions around quality of place will be crucial for cities to understand what makes a place attractive and inclusive for all people. On our minds are the following research topics:

What kinds of metrics best indicate that a community or region is competitive in attracting and retaining residents?
In which places are leaders addressing equity and inclusion in their planning and policy making?
What typologies of quality of place exist across US communities?
How are cities, community-based organizations, and the private sector currently cultivating quality places through their policies, placemaking activities, and investments in real estate and infrastructure?
What key investments in people, place, and services can cities make to enhance their value proposition to residents, businesses, and visitors?

The future success of cities will rely on intentional, strategic investments and planning in infrastructure, resources, and people in ways that make cities places of choice and opportunity for all its residents. ESI is excited to take on these important research topics and look forward to developing a playbook for cities and regions to value and decide on the quality of place investments that make sense for their communities. Learn more about ESI Center for the Future of Cities and stay tuned.

Gina Lavery, Senior VicePresident and Principal | lavery@econsultsolutions.com

Ms. Lavery has led a range of projects for ESI primarily focused on urban planning, real estate, transportation—particularly where these areas intersect with economic development.

The Future of Cities is Inclusive Entrepreneurial Ecosystems

January 14, 2022 by Laura Burtner

Cities have always competed 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.

Despite the mythology around innovation—think of the solitary white-haired inventor toiling away in his lab until he reaches a “eureka!” moment—research shows that innovation generally happens in increments rather than all at once, and is birthed by teams and not individuals. And innovation is accelerated in settings where interactions between diverse groups can happen frequently and at times unexpectedly.

Flow-charting the innovation process into a clean one-way line from box to box is laughable. In the real world, those lines would be spaghetti, and many of those boxes would represent players you’d never think of. Did you know that the Black-Scholes model, a foundational equation in modern finance, has its origins in physics? Or that Flaming Hot Cheetos, one of Frito Lay’s most successful consumer products ever, was initially proposed by a janitor?

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. 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.

Therefore, the cities of the future that thrive will do so by creating inclusive entrepreneurial ecosystems that address structural barriers and create access points for diverse participation. Which begs the question that we will be exploring further this year: how do you make that happen? Which in turn raises a number of to-do’s we are eager to take up:

Substantiating the definitive case for focusing on and investing in inclusive entrepreneurial ecosystems, in order to move stakeholders from good intentions and lofty words to real change.
A battle-tested playbook and assessment tool that individual participants, like municipal governments and research centers and advocacy groups, can use to make cities more inclusive.
Guidance on and taxonomies of the coalitions that need to be formed to support all businesses, and of the mechanisms that need to be established to facilitate the engagement needed for breakthrough.
Measurable indicators that allow cities to benchmark how they fare nationally and identify where they’re making progress and where they need to shore things up.
Identifying and diving deeper into key industries that may drive the future competitiveness of cities but that are struggling mightily to be more representative, like tech and real estate and health care.

We are excited to dive into this critical topic, and eager to have broad engagement along the way. Stay in touch!

Frank Robinson, M.B.A., Director | robinson@econsultsolutions.com

Frank Robinson is a veteran of economic development and sustainable development industries, having worked with corporate, government, and nonprofit clients. With Econsult Solutions, Frank manages teams on Equity and Inclusion projects, as well as Government Policy, and Economic Development.

Lee Huang, M.P.A., President and Principal | huang@econsultsolutions.com

As President and Principal of Econsult Solutions, Lee Huang leads the firm’s Equity and Inclusion and Universities and Hospitals practice areas, as well as guiding the firm’s business development and new initiatives.

2022 Strategic Agenda

January 7, 2022 by Mike Daly

At ESI, we pride ourselves in being the go-to consulting firm for a wide range of industries, clients, and situations where the key question is, “what is happening now?” We add value by providing a data-informed, street-smart, and nuanced response to that question, to help people make sense of the world and move things forward.

We are at a momentous time, brought about by an unprecedented pandemic that has turned everything upside down, but also driven by longer-term trends that are coming to a head, such as economic structural shifts, technological disruption, climate uncertainty, and pushback against systemic injustices. In response, the key questions of the moment are not just “what is happening now?”, but also “ what is happening next?”, “what should happen next?”, and “how do we get there?”

ESI Center for the Future of Cities was launched to tackle just those questions. We are eager to study what works and what’s next in cities around the US and the world, and also to create and drive what works and what’s next. We look forward to saying more in this space about work models, research projects, and priority areas, but for now here’s a teaser for three cross-cutting topics we’ll be exploring in blog posts this month that presage engagements we’ll be launching in 2022.

Rethinking quality of place

During the pandemic, we have learned that we need to think about the interactions between where we live, where we work, and where we relax and recharge. We are seeing shifts in the value propositions for communities and community assets, and we need to better understand how we will assess future investment and strategic decisions to create vibrant, thriving communities.

A new approach to inclusive entrepreneurial ecosystems

Between the disruption of the pandemic and the focus on racial justice spurred by the George Floyd murder and resulting civil unrest, we have seen smaller minority businesses disproportionately impacted. We are seeing a renewed focus on what it takes to support an economy that rewards, supports, and celebrates diverse entrepreneurs, and we look forward to working with those seeking to create new economic opportunities that lead to a more inclusive economy.

Redefining smart and connected communities

The pandemic has demonstrated that technology can be both a lifeline and a barrier for local governments and residents, and that we still have a long way to go to connect our technological advances to real change in how cities and communities operate and function. What we know is that being a smart city is not just fancy gizmos, gadgets, and algorithms, but it is about how you integrate tech with policy, strategy and finance to create new systems, solve big problems and support more competitive communities of all sizes.

Most of all, we have learned over the past two years the interconnectedness of cities and communities, and how creative approaches in response to crises can lead to major advances in how we live, work and play. At ESI, this is the fun part – working with great partners to understand the changes and impacts we are seeing in our communities and taking that knowledge to look ahead and develop new strategies and approaches to our most pressing challenges. Connect with us to learn more about our thinking, and to share your thoughts and ideas about what you are seeing and how we could partner. Despite all the challenges we have faced and that still remain, we are excited about the future of cities, and we look forward to sharing more with you in the coming weeks and months.

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

Steve Wray is a senior vice president and principal at Econsult Solutions. 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.

Most Promising Smart City Solution Provider in 2021!

October 29, 2021 by ESI

Have you heard? Last week, CIOReview, a leading technology publication guiding enterprises through the varying business environment with information about cutting-edge solutions and services, announced ESI as their Most Promising Smart City Solution Provider in 2021!

We pride ourselves on creating and delivering cutting-edge models that help explain economic value, ROI, and efficiency of smart city solutions. We have worked closely with various governments, so we understand city leaders concerns, the decision making process, and budgetary processes that cities face. “Our experts have high-level academic and economic knowledge of practical realities that city leaders deal with,” said Steve Wray, ESI SVP. When we start engagements with clients, we work to understand a city or county’s goals, strategy, plan, and budget and incorporate citizens input and opinions. Wray says, “We bridge the gap between citizens’ expectations and government’s expectations to help leaders make informed decisions.

Extensive and Comprehensive Expertise

ESI has worked with the New Jersey Institute of Technology (NJIT), in partnership with the City of Newark and Invest Newark to help them connect citizen’s expectations with their technology goals and objectives. We created a connected plan for Newark – by becoming a connected city, Newark can leverage smart technologies to further interconnect the local government and its citizens. The Connected Newark plan serves as a framework for future policy and investment as Newark progressed along its connected city journey.

Turning to another common need of cities: reliable transportation. ESI has worked with SEPTA to determine the impacts of congestion on the City of Philadelphia. While congestion is in part a signal of success, if not managed properly it reduces the attractiveness of downtown Philadelphia as a business location, limiting job growth and opportunities for Philadelphia neighborhood residents and undermining a key competitive advantage of the city. Further, delays impact buses to a greater extent than cars, deepening existing equity challenges and setting into motion a vicious cycle. We worked with SEPTA to quantify the economic and social losses that congestion engenders. The scale and scope of these impacts demonstrate that there is much to gain from addressing this issue.

We’ve also worked on multiple multi-client studies analyzing and determining how cities around the world are transitioning to becoming “Smart” Cities by creating and using smart technology, energy, and mobility. Our latest multi-client study being Smart City Solutions for a Riskier World, which explores how 167 cities—with diverse populations and economies—use smart innovation and public-private partnerships to drive results.

Let’s Talk!

We want to continue doing work in this space, and the recent launch of our new thought leadership initiative, ESI Center for the Future of Cities will allow us to do that. We continue bringing our expertise in higher education, real estate, economic development, transportation, and government policy to urban ecosystems, because we believe smart cities are not just about investing in new technology, but making sure that technology is integrated into the strategy of a city and improving quality of life.

ESI is eager to deploy our expertise and staff to produce quality thought leadership and advance urban solutions. For more information, please visit our website, or connect with us on LinkedIn and Twitter. You can also contact us to learn how you can join this exciting new effort!

Lee Huang, President & Principal | huang@econsultsolutions.com

Lee Huang brings over 20 years of experience in economic development experience to ESI public, private, institutional, and not-for-profit clients. He leads consulting engagements in a wide range of fields, including higher education, economic inclusion, environmental sustainability, historic preservation, real estate, neighborhood economic development, non-profits, retail, state and local government, strategic planning, tax policy, and tourism/hospitality, and is a sought-after speaker on these and other topics.

The Role of Cities in Growing the Renewable Energy Market

October 22, 2021 by ESI

Despite the tumultuous past two years, local governments in the US bought more renewable energy in 2020 than ever before. There was a 23 percent increase from 2019 as nearly 100 cities and counties completed 143 deals and added more than 3,600 megawatts of renewable energy capacity.

On a larger scale, according to CDP, over 100 cities now get at least 70% of their electricity from renewable sources (i.e. hydro, geothermal, solar, and wind). That’s up from 42 cities in 2015, when countries pledged to cut gas emissions in the Paris Climate Agreement. Cities like Burlington, Vermont are showing what it looks like for a city to run on 100% renewable electricity. Burlington is leading the way to building a zero-carbon future in various ways like investing in charging stations for EVs and planting more trees in urban areas.

California and Texas Leading the Charge

In 2020, Houston and Los Angeles signed the largest US city renewable energy deal, ever. According to World Resources Institute, California and Texas accounted for 84% of the total renewable energy purchased by cities between 2015 and 2020. While those 2 states are leading the charge in the US, a lot of progress is being made in other areas as well through community solar projects in Minnesota, Massachusetts, and Washington.

Collaboration is Key

Some city and governments are establishing public-private partnerships with other local institutions to buy clean electricity. One example of this includes the City of Nashville partnering with Vanderbilt University to join the Tennessee Valley Authority’s green tariff program, to construct 100 megawatts of solar power energy to help mitigate climate change. By teaming together, the City and Vanderbilt were able to support each other through the procurement process and leverage their collective buying power to help efficiently meet climate goals.

Solar Power

Governments and cities have purchased solar energy the most between 2015 and the beginning of 2020, with solar accounting for 89% of the total renewable deals purchased by local governments. While the amount of solar energy a city gets varies by its location and weather, it’s the best suited source for both large and small projects and is distributed across the US more than other renewable energy sources. Wind follows behind solar, having a stronger presence in the South and Midwest.

What’s Next?

As renewable energy prices decline, and resources become more available, local governments will need to enter the US renewable energy market to have access to growing opportunities. Cities will need to create clean energy plans that combine several types of projects and partner with each other to purchase energy together. Governments can use their strategies to expand renewable energy for their entire communities by looking into initiatives with an emphasis on minority and low-income neighborhoods. By working both strategically and in partnership with the private sector and institutions, cities have the potential to change electricity usage in the US and play an important part in growing the renewable energy market for our future.

Lindsay Durkalec, Senior Business Development & Marketing Associate | durkalec@econsultsolutions.com

Lindsay Durkalec is a Senior Business Development and Marketing Associate at ESI, where she supports the business development team. In addition to assisting with proposals, Ms. Durkalec is responsible for enhancing ESI’s brand and work through traditional and social media, content development for the web, and managing the ESI blog, Present Value.

Economic Insecurity and Cities

October 8, 2021 by ESI

The COVID-19 pandemic has highlighted the fragile economic situation faced by millions of American households in an era of growing income inequality. At the same time, the government response to the pandemic has demonstrated the ability of policy to impact income security, with aggressive fiscal policy tools leading to a material decrease in the poverty rate and an increase in savings despite elevated levels of unemployment.

Direct income support in the forms seen during the pandemic (stimulus checks, an enhanced child tax credit, business relief programs, etc.) are typically a tool available at the federal rather than the local government level. Despite a more limited policy toolbox, the economic security of residents has huge implications for the community, economic and fiscal health of cities.

“Economic insecurity” can be defined in different ways in different contexts. In general, it refers both to the lack of resources to meet basic needs and to participate fully in the economy, as well as to the perception of economic fragility and risk that may impact household decision making and have adverse effects on mental health. Issues like housing insecurity, consumer spending and fragility to unexpected shocks impact the vitality of neighborhoods, and the investment and demand needed to support healthy commercial corridors and stabilize and refresh the housing stock.

Household financial insecurity also has meaningful budgetary impacts for cities. An Urban Institute study of ten US cities found that families with even small amounts of savings are less likely to be evicted, miss a housing or utility payment, or receive public benefits when income disruptions occur. Revenue impacts from missed utility or property tax payments alone can result in millions in financial losses for cities.

Savings buffers become even more relevant in the context of retirement. By itself, Social Security typically provides insufficient income for retirees to retain their standard of living and fully participate in the economy. In partnership with organizations like the Georgetown University Center for Retirement Initiatives and the Pew Charitable Trusts Retirement Savings Project, ESI has contributed to the body of research on the gaps in workplace access to retirement savings among private sector workers and the potential policy solutions to increase access and savings. With federal proposals towards more universal coverage largely stalled, action has been taken at the state and local level to develop publicly administered savings options that private sector firms can leverage to give their employees opportunities to save.

Coverage challenges around savings and other benefits that contribute to financial security (such as health care, sick leave, and family leave) are further complicated by the rise of the freelance or gig economy. A greater share of the job base has become disconnected from a traditional employee-employer relationship. This trend could be accelerated by the rise of remote work, which may prove well-suited to freelance arrangements. These developments may have positive implication for better matching between workers and tasks they are suited for, reducing locational constraints. However, the policy architecture currently relies heavily on the traditional employee-employer relationship to deliver “employee benefits” such as access to health care and retirement savings, and a degree of income security through the unemployment insurance system. As the gig economy grows, the policy thinking needs to address ways that these workers can plug into existing or new systems to pool risk and increase economic security for these workers.

Financial insecurity is also situated within the broader discussion of income inequality and racial inequity. Evidence has consistently shown that racial disparities in wealth are far greater than disparities in income. This differential is tied to historic inequities and is also connected to the ways in which greater economic security can provide households with opportunities for wealth accumulation (through investments and through appreciation of assets like housing) that are less accessible to households living paycheck to paycheck.

Amidst these challenges, cities and local governments have limited tools for income redistribution efforts or major infrastructure investments that are typically implemented with federal and state funding. Nonetheless, several aspects of local policy can play an important role in the economic security of residents.

Housing is the largest cost for most households and can be a major driver of economic insecurity. Local investments in affordable housing, the stabilization of the existing housing stock, and policies enabling new housing supply all contribute to housing affordability and stability.

Transportation is also a major cost driver for low-income households, particularly when they need to rely on private vehicle ownership to reach their workplace. Policies that reduce the need for auto ownership in turn reduce household transportation costs. Local policy can influence the provision of high-quality transit service, the management of the streetscape to support non-auto uses (biking, walking, etc.) and land use patterns that encourage density in areas with good mobility alternatives.

Cities can also influence the conditions under which their residents are able to access benefits or funding available to them. Philadelphia’s innovative approach to emergency rental assistance funds has become a national model, and has encouraged a rethinking of the service delivery model beyond an emergency period. As the federal policy discussion explores investments in the care economy, human capital, child care and other household-oriented policies as part of our core economic infrastructure, implementation questions will be crucial to maximizing the impact on household economic security.

Cities have served for centuries as centers of economic opportunity and innovation, and their essential economic role will endure even as technology changes. Managing cities in ways that address economic fragility and enable more residents to participate fully in the economy can enhance the dynamism that cities rely on.

Ethan Conner-Ross, Senior Vice President & Principal
conner-ross@econsultsolutions.com

Ethan Conner-Ross is a Senior Vice President and Principal of ESI. Mr. Conner-Ross joined ESI in 2014 as a Director. His practice areas include public policy, transportation, tourism, economic development, and strategic planning. He is an experienced project leader who brings cross-disciplinary skills and a public sector perspective to his engagements.