Presentation of Professor Greg Clark

District Redevelopment: The role of Business
Associations and Business Improvement
Districts
Kowloon East, Hong Kong.
Greg Clark
October 2012
Overview
1.
Introduction and key themes
2.
9.
Case
Case
Case
Case
Case
Case
Case
Case
10.
Lessons for Hong Kong and Kowloon East
3.
4.
5.
6.
7.
8.
study 1: London BIDs and Tech City
study 2: New York BIDs and Downtown Brooklyn
study 3: Cape Town CIDs and the Central City
study 4: Johannesburg CIDs and the RID
study 5: Auckland BIDs and the Waterfront
study 6: Philadelphia BIDs and the Center City
study 7: Toronto BIAs and the Discovery District
Study 8: Tokyo BIDs and the Rappongi Hills
Introduction, definitions and key themes
Local business leadership organisation
• ‘Collective of business leaders or firms that take a
strategic interest in the development trajectory of a
district or city’
Business improvement district
• ‘Geographical area within which the businesses have
voted to invest collectively in local improvements to
improve their trading environment.’
Case study 1: London BIDs and Business
Leadership in Tech City
Overview of London BIDs
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London currently has 25 BIDs
BIDs are supported by the Mayor’s 2010 Economic Development
Strategy and the GLA Group
Annual BID awards, bi-annual roundtables, TfL briefing sessions
Key BID objectives
•
•
•
•
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Promote collaborative working between diverse businesses
‘Place-shape’ local town centres and industrial estates according
to business requirements
Additional safety, cleaning and environmental measures
Support business to deal with local public authorities
Increase foot-fall and staff retention
Place promotion
Case study 1: London BIDs and Business
Leadership in Tech City
Tech City Map – the technology ecosystem in East London in 2012
Case study 1: London BIDs and Business
Leadership in Tech City
Business Leadership in Tech City
Tech City Investment Organisation (TCIO)
•
Founded in April 2011 by UKTI for business attraction + retention
•
Tech City Advisory Group formed in July 2012 – 25 members
including angel investors, start-ups, established businesses, local
officials, national officials and academics
How TCIO supports business...
•
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Policy advice
e.g. Tech City Advisory Group provides strategic-direction to
government policy in Tech City
Investor services
e.g. Tours, information, networking
Case study 1: London BIDs and Business
Leadership in Tech City
Tech City Cluster Overview
•
•
London’s foremost cluster for digital, creative and hightechnology industries
Strong growth: 15 high-tech firms (2008) to approximately 200
(2011)
How the cluster supports business...
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Political and organisational support
e.g. PM Cameron speech in Nov 2010 and creation of the Tech
City Investment Organisation
Collaboration and business infrastructure
e.g. BT roll out of super-fast broadband, specialist banking
provided by Barclay’s, strategic advice by McKinsey, UCL to
work with Olympic Legacy Company to facilitate start-ups
Case study 2: New York BIDs and Business
Leadership in Downtown Brooklyn
Overview of New York City BIDs
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67 BIDs across the 5 boroughs
Annually invest over USD 100 million in programs and services
NYC Department of Small Business Services co-ordinates the BIDs
Key BID objectives
•
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Aim to ‘revitalize neighbourhoods and catalyze economic
development throughout New York City’
5 main objectives: a) sanitation and maintenance; b) public
safety and visitor services; c) marketing and promotional
programs; d) capital improvements; and e) beautification for the
area
Case study 2: New York BIDs and Business
Leadership in Downtown Brooklyn
Downtown Brooklyn BID Overview
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Contains 3 separate BIDs - Fulton Mall Improvement Association,
MetroTech BID, and the Court-Livingston-Schermerhorn BID
BIDs provide USD 6 million in additional services
Achieved nearly USD 3.5 billion private sector investment in last 5
years & business district is now larger than downtown Atlanta
How the BIDs support business...
•
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Organisational support
e.g. Downtown Brooklyn Partnership
Infrastructure
e.g. Last 5 years – USD 287 million publicly funded infrastructure
improvements across Downtown Brooklyn
Case study 2: New York BIDs and Business
Leadership in Downtown Brooklyn
Business Leadership in Downtown Brooklyn
Downtown Brooklyn Partnership (DBP)
•
Formed by Mayor Bloomberg in 2006
•
Aims to advance economic development in the area and
co-ordinate BIDs
•
15 staff, USD 6.6 million budget
•
43-member Board with strong private sector presence e.g.
Meriden Capital, Cushman & Wakefield, Marriott Hotel
How DBP supports business...
•
Investor services and development support
e.g. Facilitates public and private investment, co-ordinates and
supports development projects
Case study 2: New York BIDs and Business
Leadership in Downtown Brooklyn
Downtown Brooklyn BID map
How the BIDs support business...
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•
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Additional basic services
e.g. Sanitation, safety and
business support
Promotion
e.g. shopdowntownbrooklyn.com
is a web portal to promote events
in the area and to drive foot-fall
Streetscape improvements
e.g. Tree maintenance and public
planting scheme along main
thoroughfares
Case study 3: Cape Town CIDs and Business
Leadership in the Central City
Overview of Cape Town CIDs
•
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In 2009, there were 16 established ‘Special Rating Areas’
(including CIDs) and 4 more under development
The City is not involved in day-to-day operations, but provides
financial oversight and legal compliance
Key CID objectives
•
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For those businesses which ‘wish to enjoy municipal services of a
higher level’
Tackle ‘crime and grime’ through public safety measures,
cleansing services, maintenance of infrastructure, upgrading of
the environment, and social services to deal with vagrancy, etc
Case study 3: Cape Town CIDs and Business
Leadership in the Central City
Business Leadership in the Central City
Cape Town Partnership (CTP)
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Formed in 1998 to manage, develop and promote the Central City
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Fosters public/private collaboration
•
Board of 13 including CT International Convention Centre, CT
Graduate Business School, CT Chamber of Commerce
How CTP supports business...
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Urban development
e.g. Central City Development Strategy 2008
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Major events
e.g. World Cup 2010 Fan Walk, and World Design Capital 2014
Case study 3: Cape Town CIDs and Business
Leadership in the Central City
Central City CID Overview
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Established in 2000
Developer contributed R150 million (2000-8) to rejuvenation
How the CID supports business...
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Organisational support
e.g. a) Cape Town Partnership, b) CCID Board to oversee the
CCID
Additional services
e.g. 51% spent on security, 22% on cleansing, 3% on social
development and 11% on communications and marketing
Case study 3: Cape Town CIDs and Business
Leadership in the Central City
CCID Annual Report 2011
•
Cluster development
e.g. Creative Cape Town – formed in 2006
with input from 30+ specialists to facilitate
the development of the creative and
knowledge economy in the CC. Provides
networking, information sessions and
related support programmes.
Case study 4: Johannesburg BIDs and Retail
Improvement District
Overview of Johannesburg CIDs
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•
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Created in 1997 by the Gauteng City Improvement Districts Act
By 2008, there were 11 CIDs across Greater Johannesburg
Requires support of 51% of rateable property owners in an area
Co-ordinated by an Improvement Plan and Board
Recent move towards residential CIDs
Key CID objectives
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Combat decay and degeneration in the Inner City
Promote the development of decentralised business nodes
Case study 4: Johannesburg BIDs and Retail
Improvement District
Retail Improvement District Overview
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Legislated in 2005 – Johannesburg’s 3rd CID
Aims to keep area: ‘safe, clean, friendly
and attractive, particularly for shoppers’
Covers five blocks in the main retail area of the inner city
How the BID supports business
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Organisational support
e.g. The Central Johannesburg Partnership manages the RID and
was created in 1992 as a partnership between business, the
community and local authorities
Safety
e.g. Fully equipped and uniformed security force of comprises 18
patrol officers and a controller.
Case study 4: Johannesburg BIDs and Retail
Improvement District
Inner City Johannesburg Map
•
Clean
e.g. A team of 10 cleaners and one
supervisor
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Private investment
e.g. Johannesburg Inner City Business
Coalition (JICBC) invested nearly R4
billion (2006-9) across the inner city
Case study 5: Auckland BIDs and the Waterfront
Overview of Auckland BIDs
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46 BIDs across the Auckland region
Membership of over 25,000 businesses
Key BID objectives
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Aim is not to replicate but, ‘channel the capabilities and
knowledge of the private sector to improve outcomes and achieve
common goals’
Support the economic growth of town centres and business
precincts
Case study 5: Auckland BIDs and Business
Leadership at the Waterfront
Waterfront Overview
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One of New Zealand's primary international gateways for
commerce and tourism
The Waterfront Plan 2012 – NZD 234 million public investment
2012
2028
Case study 5: Auckland BIDs and Business
Leadership at the Waterfront
Waterfront Auckland: Waterfront Plan 2012
and Operational Area
Case study 5: Auckland BIDs and Business
Leadership at the Waterfront
Business Leadership across the Waterfront
Waterfront Auckland Development Agency (WADA)
•
Founded in 2011
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Annual budget of NZD 30 million
 7 Board members – strong private sector presence e.g. Stracon
Holdings Limited, Todd Property Group Limited
How WADA supports business...
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Public Waterfront
e.g. New public spaces, hotel construction, heritage development
•
Growing Waterfront
e.g. Promotion and awareness, urban renewal
projects, telecommunications and transport
Case study 6: Philadelphia BIDs and Business
Leadership in the Center City
Overview of Philadelphia BIDs
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•
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First BID in Center City in 1990
Now a total of 12 BIDs across the city
Consistent with the City’s Strategic Plan and the goal of making
Philadelphia the safest city in the USA
Key BID objectives
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Promote revitalization of neighborhood commercial corridors
Support existing business and potential investors
Case study 6: Philadelphia BIDs and Business
Leadership in the Center City
Center City BID Overview
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Founded in 1990 and has a 23-member board
Private sector well-represented e.g. First Niagra Bank, REIT
Management, Philadelphia Marriott Hotel
120 blocks and over 4,500 properties.
40 million square feet office space, 38 hotels, more than 3,200
retail shops, 713 restaurants and 273 outdoor cafes
How the BID supports business
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Organisational support
e.g. Central Philadelphia Development Corporation (CPDC) aims
to make the central city a thriving 24-hour downtown and a
great place to live, work or have fun
Case study 6: Philadelphia BIDs and Business
Leadership across the Center City
State of the CCD Report 2012
•
Welcoming
e.g. Forty-two uniformed Community
Service Representatives serve as onstreet ambassadors
•
Streetscape
e.g. Special team assists 25 agencies
responsible for maintaining the public
environment. Regular maintenance
mapping
•
Safety
e.g. Alert Philadelphia text service to
alert property owners of incidents
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Promotion
e.g. Full calendar of events and
promotion of a range of activities
Case study 6: Philadelphia BIDs and Business
Leadership in the Center City
CCD projects in 2011
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Interventions
e.g. In 2011, 104 new
street trees and 34
new signs at 11
transit stops
Case study 6: Philadelphia BIDs and Business
Leadership in the Center City
Business Leadership in the Center City
Central Philadelphia Development Corporation (CPDC)
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Founded in 1956 and managed by staff of the BID
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Highly effective private-sector leadership vehicle – 120 member
firms e.g. CB Richard Ellis, KPMG, Macy’s and Skanska
•
Aims to: ‘shape the future of downtown through research,
planning, advocacy and civic engagement’
How CPDC supports business...
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Partnership
e.g. Works with Commerce Dep to expand and retain retail
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Lobbying
e.g. Corporate tax lobbying
Case study 7: Toronto BIAs and Business
Leadership in the Entertainment District
Overview of Toronto BIAs
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72 BIAs across Toronto in 2012 (42 in 2001)
Represent over 32,000 businesses - largest in North America
Generated USD 25 million in investment
Toronto Association of Business Improvement Areas (TABIA) coordinates the network
Key BIA objectives
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Aim is to deliver street and sidewalk beautification, marketing
and promotional campaigns, street festivals, clean street /
graffiti-removal campaigns, and crime prevention strategies.
Also act as a unified voice to address issues on behalf of their
membership.
Case study 7: Toronto BIAs and Business
Leadership in the Discovery District
Discovery District Overview
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•
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2 square kilometres and 50,000
jobs
Integrated research environment
of government, academic, and
healthcare institutions
Annual USD 1 billion of research
from ‘bench’ to ‘bedside’
Close links to Toronto Economic
Development
Office and
Toronto
University
Case study 7: Toronto BIAs and Business
Leadership in the Discovery District Phase 1
Business Leadership in the Discovery District
Medical and Related Sciences (MaRS) Centre
•
700,000 square feet of research labs, business
incubator facilities, business services and
conference space
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Private sector-orientated Board e.g. Royal
Bank of Canada, National Bank of Canada,
Nodel Investments
•
Powerful mix of start-ups, mid-size companies
and multinationals. Investors, researchers and
community developers.
•
Phase 2: 780,000 square feet state-of-the-art
laboratory and office space in a co-location
environment
Phase 2
Case study 8: Tokyo BIDs and Business Leadership
in the Rappongi Hills
Rappongi Hills Overview
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109,000 square metre
development site
USD 4 billion investment
The largest private based urban
regeneration project in Japan
Construction due to
involvement of 500 land owners
across 110,000 square metres
Massive mixed use, shopping,
retail, and commercial district.
Substantial cultural quarter,
Art, Music, Live Entertainment.
Case study 8: Tokyo Business Leadership in the
Rappongi Hills
Tenant and landowner
collaboration.
Destination branding.
Urban design concepts and
protocols.
Co-ordination of events and
marketing.
District management.
Observations for Hong Kong and Kowloon East
Business leadership in redevelopment districts adds something that government
can’t provide
Commercial element of vision. Customer orientation.
Partnership and transparency (not deal oriented)
Business expertise for district development
Business Co-ordination on key issues
Additional resources
Confidence and leadership
Business leadership enables better outcomes for business:
Shape of redevelopment
Coordination and input
Integration of services and input
Leverage of inputs
Clear voice for business
What can business associations best do?
i.
Build the ‘district business model’, so that it is clear what is
required for commercial success of the district and its firms.
ii.
Contribute to vision and long term outcomes. Raise awareness.
iii.
Communication and co-ordination between businesses and with
City Gov.
iv.
Change management and stabilisation of district during change.
v.
District management and district improvement. Services?
Information? Security?
35
What next for Hong Kong and Kowloon East?
Initial recommendations
i.
Develop the ‘District Business Model’ role of the
Business Associations.
ii.
Help to establish a shared vision with HK Gov.
iii.
Identify key opportunities for businesses to help the
redevelopment process.