Getting Urban Economies Back Up and Running after Covid-19 A Ten-Point Action Plan for Economic Development

RICHARD FLORIDA School of Cities University of Toronto

STEVEN PEDIGO Lyndon B. Johnson School of Public Affairs University of Texas at Austin

Getting Urban Economies Back Up and Running after Covid-19 A Ten-Point Action Plan for Economic Development

As the dreaded Coronavirus rips across the to get their communities ready and globe, city after city has locked down, prepared safely and securely. transforming urban business centers and suburban malls alike into veritable ghost To help with this mobilization process, we towns. Our cities can’t stay in lockdown have developed a 10-point plan, based on indefinitely. The economic costs - never detailed tracking of the current pandemic mind the toll on our society and our mental and historical accounts of past pandemics, health - is just too devastating. and conversations with city leaders, health care professionals and economic developers But the reality is we can’t just hit a reset across the country. button and revert to how things were before. This pandemic, like all great 1. Assess Leading Industries and pandemics, will not end quickly. It threatens Clusters: It’s not just individual firms to reappear in subsequent waves over the but clusters of industry and talent next year to eighteen months, until we find that drive economic development. a vaccine or develop herd immunity. The Some of those clusters are at greater historical record shows that the cities that risk than others. Sectors such as enforced this kind of social distancing most transportation, travel and hospitality, aggressively in 1918 experienced far fewer and the creative arts will be hit the cases and had far fewer deaths. Social and hardest, while sectors such as e- physical distancing can work to flatten the commerce/, advanced curve of the first wave, which will hopefully for healthcare, food end in a couple of months, maybe less. processing and distribution, may Subsequent waves and flare-ups may grow. Economic development continue into and beyond next year’s flu organizations must assess the season, until we develop a vaccine or industries and clusters that are most develop the herd immunity required to fight vulnerable in the short to medium off this virus. run, evaluate the impacts this will have for their labor markets and Even as cities focus on a full-out communities, and plan accordingly mobilization of required health and medical to make their economies more resources to cope with the first phase of this resilient and robust. pandemic, it is important that economic developers mobilize all available resources • Create a working group or SWAT team, including economic

2 development leaders, business Economic developers need to be representatives and academics thinking about and planning for how and other experts, to work with universities and colleges can re-open clusters to identify critical “pain safely and function in the interim points”, supply chain needs, period. One can imagine that workforce issues and capital universities and colleges may be gaps, and connecting them with forced to switch to on-line learning appropriate resources. for a longer period. With their • Develop an immediate cluster dormitories, dining halls, and large assessment plan, informed by classrooms, they are highly survey data, roundtable vulnerable to the secondary waves of discussions and other data contagion. The key issue is how can sources, for the industries and we prepare them to open safely? clusters. Engaging key partners This will require a range of redesigns and understanding immediate and retrofits, including temperature gaps will be essential work for checks and health screenings and the first 30 days of recovery. redesign of dorms, dining halls, • Identify and create appropriate classrooms and other infrastructure support programs for each to ensure adequate social distancing. cluster and initiative, realizing University researchers can also be that these will differ depending enlisted to track local economies on the cluster. A one-size fits-all and help design the needed retrofits. approach will not yield effective results. • Work with state, federal, and • Reorient staffing resources to military officials to review and support direct cluster outreach. develop plans for converting EDOs should have a single-point university facilities to assist with person or lead for each cluster. the current health crisis. • Convene university and anchor 2. Enlist and Ready Anchor Institutions: representatives to develop an Medical centers and hospitals are on action plan for reopening their the front lines of the battle against facilities safely for on-campus COVID-19, and many are already research, in person course overtaxed. In the current instruction and on campus living. mobilization, universities and • Engage local anchor institutions colleges are being called upon to to boost local purchasing, to dedicate their dormitories to house limit and layoffs, medical professionals or even to and to eventually boost local serve as temporary hospitals and employment hiring, to mitigate clinics. Together, these eds and economic impacts of the crisis. meds are key anchor institutions that drive local economies, as innovation 3. Pandemic-proof Airports: Airports engines, as large employers and are a critical component of regional through their local purchasing. economies. They connect places to

2 the domestic and global economies; including use of masks and they move people, good and ideas; gloves. are key elements of regional logistics • Evaluate policies for handling of and distributions systems; are key baggage, security checks, drivers of regional boarding and on-ground and development, and are large local transportation (public transit and regional employers. They cannot access, passenger pick-up, ride- be idled indefinitely. It is critical they sharing). are up and running again as quickly as is feasible. To do so will require a 4. Prepare Large-Scale Civic Assets: mobilization effort like that of the Urban centers are also home to terrorist attacks of 9-11 economic other forms of large-scale development. That will likely entail infrastructure: stadiums, arenas, adding temperature checks and convention centers, performing arts necessary health screenings to the centers, and the like. Many security measures already in place. It communities have made extensive also means thinking about how to public in them. Because reduce crowding and design for they bring together large groups of social and physical distancing. This people, city leaders must pandemic- can be simple things like stanchions proof these assets as much as or painted lines on floors, check-in possible, too. Audience sizes may areas, TSA screening lines, baggage need to be reduced in theaters, with areas, pickup and drop-off areas, seats left open. Masks may need to and redesigning seating be required and made available to arrangements in waiting areas and patrons as needed, and temperature restaurants to ensure adequate checks carried out. This will be physical distancing. It may also mean critical for communities that are making personal protective gear like dependent on such attractions. The masks and other items available to sooner such large-scale civic airport personnel and ensuring that infrastructure can be safely hand sanitizer is available. reopened, the faster our urban economies will be able to rebound in • Partner with local airport the aftermath of a pandemic. authority officials to develop an action plan for redesigning • Create a taskforce to ready airports for necessary social regional civic assets for the distancing (adequate spacing for transition period. waiting areas, check-in lobbies, • Bring together local economic and security lines) and health development and destination and temperature screenings. marketing organizations to • Engage medical professionals to develop a public awareness develop protocols for wellness campaign about safety and health checks and procedures and the reopening of appropriate safety measures, assets.

3 • Consider combining EDOs and commuter rail, and stations as DMOs to support community required. placemaking efforts, in a time • Create a working group to focus when there’s dire budget and stimulus dollars on required fiscal constraints. retrofits and redesigns. • Address open space retrofits and 5. Prepare and Modify Vital redesigns and ensure required Infrastructure: As we’ve seen during sanitation and cleaning. the first phase of the COVID-19 • Focus place-making initiatives crisis, buses, subways, and trains for health and safety. need emergency infusions of cash to Pedestrianizing downtown areas keep the systems solvent when and neighborhoods, including ridership is low or nonexistent. When opening streets for walking, they are back in , design limiting vehicle traffic and changes in stations and seating will widening of sidewalks. be needed to prevent the spread of • Partner with providers to infectious diseases. Streets may need increase bike and scooter shares some retrofits too. New York as needed. Governor Andrew Cuomo has called for pedestrianizing some New York 6. Prepare for More Remote Work: We City streets to promote social are in the midst of a massive distancing during COVID-19. Some experiment in remote work. Most of these changes should be people will eventually go back to permanent. Cities need to expand their offices, but some workers and and better protect their bike lanes companies may find remote work to too, while refining bike- and scooter- be more effective. Tulsa, Oklahoma sharing programs for when public has leveraged this concept through transit is compromised. Sidewalks, its Tulsa Remote initiative, which especially those in crowded business pays remote workers a small grant to and commercial districts, may need relocate there while helping them to be widened to promote needed forge community and civic social distancing. Parks and open connections. Cities can learn from spaces have provided a much- one another about how to best needed escape during the current support the growing cadre of period of social distancing. Play remote workers and make them areas and paths may also need some connected, engaged, and vital parts retrofitting to ensure social of their communities. For economic distancing and safety as we emerge developers, this means that in some from the shutdown. cases it may be more effective in the medium run to recruit remote • Partner with transit authorities workers more than companies. and state and federal officials to mobilize a retrofit of public • Create a remote work task force transit assets – busses, subway, of economic development

4 organizations and private-sector from small business and technical leaders, especially smaller organizations will be essential for businesses, and provide access ensuring these businesses survive. to resources for attracting and But communities and economic managing a remote workforce, development organizations will also with a focus on building social need to provide technical assistance and civic connectivity. to these vital small businesses so • Focus talent recruitment and they can safely reopen and weather retention efforts on remote the storm of any future lockdowns. workers as a key priority for Restaurants and cafes will need economic development for the advice on proper spacing for social upcoming budget cycles. distancing and on required • Convene telecommunication compliance with health and safety providers to assess broadband provisions. Small shops and retailers strength and capabilities through will need to employ design regional communities, especially modifications for spacing and may those on the outer edge or in need to acquire protective gear for rural settings. some front-line employees like • Develop and promote “virtual cashiers. Hair and nail salons will placemaking” and networking need to develop health and safety efforts to ensure remote workers protocols and also deploy adequate can create a sense of network spacing and outfit employees with and community. protective gear as required.

7. Ensure that Main Street Survives: The • Establish a small business task restaurants, bars, specialty shops, force of local, state, private and hardware stores, and other mom and philanthropic leaders to pursue pop shops that create jobs and lend the creation of innovative small unique character to our cities are at business loan and support severe economic risk right now. programs; at minimum, a two- Some projections suggest that as year horizon should be many as three-quarters of them may considered for these programs. not survive the current crisis. The • Create a working group of loss of our Main Street businesses independent medical would be irreparable, and not just professionals (dentists, for the people whose livelihoods dermatologists, pediatricians, depend on them, but for cities and family doctors, etc.) who are communities as a whole. The places developing and implementing that have protected their Main leading-edge health and safety Streets will have a decisive procedures to reopen their own competitive advantage as we return office safely to provide advice to normalcy. Loan programs from and healthy and safety protocols government, foundations, and the to small business owners private sector as well as support especially those in personal care

5 businesses such hair and nail keep their cultural scenes alive. Once salons they are allowed to reopen, these • Execute a direct marketing and places will also need to make interim outreach strategy to local and long-term changes in the way businesses and entrepreneurs to they operate. As with Main Street ensure they are aware of federal, business, cities and economic state and local loan programs, development organizations must including those from the SBA. mobilize to provide technical advice • Deploy a “Made in …” campaign and assistance on necessary as a means for promoting local procedures—from temperature businesses and services. screenings, better spacing for social Community residents are very distancing, and other safety much inclined to help local measures—for these venues to businesses weather this crisis. continue as part of the urban • Develop an immediate platform or landscape. hub (wiki page or website) for sharing entrepreneurship and • Establish a creative economy small businesses resources team to assess the impact on the throughout the community. creative economy, to marshal Entrepreneurs need a one-stop funding for arts and cultural shop. organizations, and to provide • Deploy a business technical technical advice to smaller resource team to provide galleries, independent theaters, assistance on the design retrofit and music venues on how to get and health checks required to back up and running safely. reopen safely. • Convene philanthropic • Partner with local anchor organizations, private donors, institutions and larger businesses and large-scale anchors to create to commit to temporary local budget support gap measures purchasing goals, using the size for creative and arts and scale of these entities to organizations. increase demand for local • Create a micro-funding and services. mechanism, similar to Pittsburgh’s former Sprout Fund, 8. Protect the arts and creative to support small-scale economy: The creative economy of community arts-based initiatives. art galleries, museums, theaters, and music venues—along with the artists, 9. Upgrade Jobs for Front-line Service musicians, and actors who fuel Workers: Nearly half of Americans them—is also at dire risk. Cities must work in low- service jobs. A partner with other levels of considerable percentage of them— government, the private sector, and emergency responders, health care philanthropies to marshal the aides, office and hospital cleaners, funding and expertise needed to grocery store clerks, warehouse

6 workers, delivery people—are on the 10. Protect Less-Advantaged front lines of the pandemic. They Communities: The economic fallout need better protection, higher pay, of pandemics will hurt most for the and more benefits. States such as least-advantaged neighborhoods Vermont and Minnesota have paved and their residents, who lack the way by designating grocery store adequate health coverage and employees as emergency workers, access to medical care, and who are making them eligible for benefits the most vulnerable to job losses. including free child-care. Having a This, too, is a fundamental issue of well-paid cadre of front-line service both safety and equity. Concentrated workers who can keep our poverty, , and communities safe and functional will racial and economic segregation are help protect us from future waves of not only morally unjust—they also this pandemic and others that may provide fertile ground for pandemics follow. Having a service workforce to take root and spread. Economic that is healthy and protected is likely inclusion and more equitable to provide a vital competitive development are critical factors for advantage in attracting business and the health, safety, and economic talent to cities in the future. competitiveness of our places. Cities and local leaders can work with • Mobilize, in partnership with federal and state agencies, employers and state officials, to community development provide protective gear now and organizations and local foundations for the long-term for frontline to target needed funds, support service workers. services and technical assistance to • Create a task force of large-scale these areas. service employers, grocery stores, delivery services, to • Partner with economic provide appropriate and development officials, benefits, as well to identify best- community development groups, practices in design for social anchor institutions and local distancing and the use of social service agencies to protective gear for front-line develop a coordinated strategy employees. Work with these for addressing and mitigating groups to disseminate best the health-care vulnerabilities of practices to smaller businesses less advantaged communities. and organizations. • Focus the efforts of related • Work with employment offices initiatives and working groups and workforce providers to for anchor institutions, small mobilize to fill employment business and arts and cultural openings at grocery stores and institutions on the challenges of warehouses and for delivery less advantaged areas. workers. • Focus workforce and placement initiatives on developing training

7 and job opportunities for Things however will not just pop back to residents of less advantaged normal. We need a readiness and neighborhoods. preparedness plan for getting our cities and communities back up and running and the There is light at the end of the tunnel. In a time to start is now. What we do over the matter of months, our cities will begin to course of the next twelve to 18 months will come back to life. In a year or two, we will matter greatly to the safety of our cities, the see a return to a new normal. Eventually, public health of our workers, and to our we will go back to work and school and economic rebound. send our kids on play dates again. We will gather in restaurants and theaters and Economic developers have much to offer to sports stadiums. In time, our great cities will help ready and prepare our communities, rise again, as they always have after great businesses and nation to get back up and health crises and pandemics. running safely and securely. We need to mobilize all our resources and capabilities for this effort.

Richard Florida is University Professor at the University of Toronto’s Rotman School of Management and School of Cities, and a Distinguished Visiting Fellow at NYU’s Shack Institute of Real Estate. His books include The Rise of the Creative Class and The New Urban Crisis.

Steven Pedigo is a Professor of Practice at the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin and the Director of the LBJ Urban Lab.

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