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Blueprint for Strategic Revitalization in Holyoke

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Blueprint for Strategic Revitalization in Holyoke Holyoke Transformative Development Initiative Innovation District Task Force October 26, 2016 Holyoke’s Next Phase 1. Overview 2. Cluster Refinement 3. Actions for the District 2 1. Overview Holyoke has seen great progress over the past five years, but the next phase of redevelopment will take a more targeted effort to fully catalyze remaining vacancies - starting in the TDI District, and broadening to the rest of the city. Project Goals + Identify economic opportunities that will be strengthened by targeted real estate investments + Identify economic opportunities that foster inclusive growth + Create a platform to attract private and public investment from both inside and outside the region 3 Holyoke’s Innovation District is remarkable due to its unique buildings, infrastructure, canals, and the emergence of creative resources, small makers, and passion-led developers who are helping shape its future 4 1. Overview Innovation District Momentum Since 2012 MGHPCC opening, $112M pipeline of private investments, approximately $14M in public infrastructure spending in the District. Select Projects: 2011 Launch of Holyoke Innovation District 2012 Massachusetts Green High Performance Computing Center opens, $90M Gateway City Arts opens 2015 Canal Walk Phase II Completed, $4.3M New train station opens, $4.2M In Development or Planning Stages Steam Building Renovation, $1M+ Canal Gallery Condos, $3.4M Cubit Building Condos and Culinary School, $5M Lyman Terrace Redevelopment, $35M Appleton Condos, $38M 5 1. Overview Market interest is concentrated in the Holyoke Innovation District. While the District comprises only about 6% of Holyoke’s total land area, from 2010-2015 it contained over 50% of the city’s building permit value ($98M/$182M). 6 There has been a lot of progress in a short time frame—with efforts from City, State and home-grown investors. • MGHPCC • Race Street building activation • Cubit/HCC Culinary School • Steam Building • Gateway City Arts expansion • Canal Walk redevelopment • Wauregan • Canal Gallery • Lyman Terrace • Dwight Street Garage • Suffolk Street Garage 7 1. Overview An Entrepreneurial, Inclusive District Employment by Firm Size The Holyoke Innovation District is entrepreneurial - small and (Private Sector), 2014 medium firms are disproportionately located in the District. 100% 10% The District is home to inclusive jobs. Compared to the rest of Holyoke, the District is home to more jobs that require HS or 14% 44% less (46% vs 38%) and fewer that require a BA/BS (23% vs 75% 61% 30%). 26% 50% 7% 14% Educational Attainment of Private Sector Workers, 2014 4% 16% 32% 31% 30% 14% 10% 29% 25% 25% 23% 36% 7% 23% 16% 14% 0% 12% HK-ID Rest of City Region 500+ Employees 250-499 Employees 50-249 Employees Less than high school Some college or Associate degree 20-49 Employees HK-ID Rest of City 0-19 Employees 8 1. Overview Transformative Development “Redevelopment on a scale and character capable of catalyzing significant follow-on private investment, leading over time to transformation of an entire downtown or urban neighborhood, and consistent with local plans. Transformative development may involve major investment in new construction, rehabilitation and adaptive reuse, or multiple smaller investments on a sustained basis.” - MassDevelopment, Transformative Development Initiative 9 1. Overview Future publicly supported real estate investments will support economic specializations and growth. Vacant and underutilized buildings in the District are future employment centers. 10 2. Cluster Refinement Cluster Selection Custom Design and Artisanal Production Custom interiors, small batch manufacturing, prototyping, and design Cluster proposed by Mass Economics Existing Industries: Architectural, Engineering, and Related Services; Architectural and Structural Metals Manufacturing; Machine Shops B2B Business-to-business services. Includes blue collar (e.g. facilities maintenance, wholesaling, Functional Cluster proposed by Mass Economics provision of materials and supplies) and white collar (e.g. document and record-keeping services, call centers, staffing) Existing Industries: Accounting, Tax Preparation, Bookkeeping, and Payroll Services; Investigation and Security Services; Paper Product Wholesalers Urban Agriculture/Food Urban farming, food and beverage processing, manufacturing, and distribution, restaurant and retail Cluster proposed by HDR Existing Industries: Restaurants and Other Eating Places; Bakeries and Tortilla Manufacturing Clean Energy Clean energy research and applications, manufacturing clean energy products, construction and Cluster proposed by HDR installation Existing Industries: Building Equipment Contractors; Utility System Construction Digital Technologies/IT Computer systems design and data processing/hosting, technology firms Cluster proposed by HDR Existing Industries: Computer Systems Design; Data Processing and Hosting Precision Manufacturing Precision equipment, machine shops, electronics, transportation equipment Cluster proposed by HDR Existing Industries: Engine, Turbine, and Power Transmission Equipment Manufacturing; Industrial Machinery Manufacturing 11 *Other HDR manufacturing activities are now captured in B2B, Food, Clean Energy clusters (e.g. wholesaling, food uses, biofuels) 2. Cluster Refinement Cluster Selection Criteria Cluster LQ Cluster strength in Holyoke (2014) Cluster Employment Holyoke employment in cluster (2014) Past Cluster Employment Growth Holyoke employment trends in cluster (2004-2014) Projected Cluster Employment Growth Projected national employment growth in cluster (2014-2024) Job Accessibility Degree to which jobs in cluster are accessible to workers with a high school diploma or less Average Wage Average cluster wage Utilization of Site Assets Degree to which the cluster is compatible with Holyoke’s available sites and buildings 12 2. Cluster Refinement Cluster Overview Custom Design and Artisanal Urban Precision Metric Production B2B Ag/Food Clean Energy Digital/IT Manufacturing Cluster and Sub-Cluster Strengths (2014) 1.0 0.6 0.8 0.4 0.2 0.5 Employment (2014) 550 2,200 2,300 450 100 250 Past Employment Growth (2004-2014) -19% 18% -2% -11% -46% -33% Projected Employment Growth (2014-2024) 0% 7% 4% 9% 12% -5% Job Accessibility (% <HS, % HS) 7%, 61% 20%, 55% 73%, 22% 24%, 57% 4%, 30% 5%, 63% Average Wage $61K $51K $23K $58K $97K $73K Utilization of Site Assets 2 1 3 4 3 5 13 2. Cluster Refinement Summary of Economic Use Tradeoffs Custom Design / Artisanal Precision Metric Production B2B Urban Ag/Food Clean Energy Digital/IT Manufacturing Cluster and Sub-Cluster Strengths 1 3 2 5 6 4 Employment 3 2 1 4 6 5 Past Employment Growth 4 1 2 3 6 5 Projected Employment Growth 5 3 4 2 1 6 Job Accessibility (% < HS Diploma) 4 3 1 2 6 5 Average Wage 3 5 6 4 1 2 Utilization of Site Assets 2 1 3 4 3 5 Total Score: 22 18 19 24 29 32 Rank 3 1 2 4 5 6 Alternate Method (Categories) 3 1 2 4 5 6 The “Rank” scoring method ranked clusters against one another for each economic use metric while the alternate “Categories” method assigned each cluster to evenly sized buckets for each economic use metric. Both methods produced the same outcomes. 14 2. Cluster Refinement Cluster Opportunities MARKET/ TIME CLUSTER INNOVATION FRAME ADVANTAGES Custom Attract existing and Short- Creates accessible jobs. Building on existing momentum and artistic community; real estate cost pressures Design and growing businesses Term pushing firms out of NYC, possibly Boston; proximity to high-income consumers in Boston, NYC; intensive Artisanal across Boston/NYC use of space. Opportunities for artistic innovation in production, materials, business model development, and Production mega-region; Design/ final products. Existing momentum with Gateway City Arts, Brick Coworkshop, Holyoke Creative Arts Center. product innovation B2B Increase Holyoke and Short- Creates accessible jobs, matches space requirements, untapped regional potential for anchor purchasing regional growth; Term partnerships. Innovation District sites can be reserved for programmatic activities and shared assets for B2B Foster process and businesses such as prototyping studios and shared kitchens. Existing momentum with new MGM, other business model partner-ready anchors. innovation Urban Cultivate existing Short- Creates accessible jobs; potential partnerships with HCC culinary, restaurants/cafes. Example urban Agriculture/ assets; Foster process Term agriculture innovation opportunities include vertical farming, hydroponics and aquaculture, and the design of Food innovation closed-loop, sustainable systems. Existing momentum with Holyoke Community College Culinary School, Nuestras Raices. Clean Energy Energy innovation Long- Long-term opportunity for Holyoke, short term opportunities for demonstration projects. Building on testbed in partnership Term emerging brand as clean energy center; energy-friendly state policies, programs, and incentives. HG&E with HG&E, Aegis prototyping and data-sharing partnership would present real-world testbed opportunities for clean energy technologies including hybrid power uses, hydrokinetic energy, and energy storage and engine designs. Existing momentum with HG&E, Aegis Energy Services. Digital/IT Workforce Long- Training and education to support Holyoke residents in developing critical digital/IT skills, existing MGHPCC, development and Term HCC programs to build from. education opportunity 15 2. Cluster Refinement: Spaces Strategy: Specialized Investments to Support Holyoke’s Existing Strengths and Momentum
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