Figure 1: Northeastern University: a bea- lected part of Huntington Avenue. This con on the avenue connectivity, this re-creation of a vital and vigorous urban fabric, this celebration of a permeable and transparent and thus acces- sible face of a major University, all suggest The West a framework for the economic develop- ment of the area over the coming decade. Story That this was developed as a non-profit institution’s vigorous investment in its neighborhood in only seven years is remarkable, as is the sense that these build- ings are leading to a turn-around of the economic fortunes of this important part of Boston.

A university gets FOR MOST OF its history, the rooms partially protected by translucent University of has been glass). Since the students study well into into the business of deeply engaged with urban issues. But the night, the building becomes a beacon only in the past decade has Penn applied neighborhood development. on the Avenue of the Arts. Specially its intellectual and financial resources to selected glass gives the building a shim- transform its own backyard. In revitaliz- mering quality during the day. For auto- ing West Philadelphia, the university mobile traffic heading inbound or out- has found its calling as an urban bound on the Avenue of the Arts, the sig- research university. It has assumed roles nature element of the building is a 15- and risks that no other university has feet-wide, 220-feet-high “sliver of glass” taken, demolishing walls that have kept facing east and west, another beacon that the university and its neighbors from emits light day and night. forging nourishing connections with The new, two-block-long face of one another. In the process, Penn has Northeastern not only connects the dis- created a model for urban universities parate neighborhoods, but also gives a desiring to be catalysts for neighbor- sense of excitement to a previously neg- hood transformation.

30 ZELL/LURIE REAL ESTATE CENTER REVIEW 31 TOWN AND GOWN 1993. One in five residents lived below ings with seemingly little regard either could make discoveries that saved lives and the poverty level. Shops and businesses for what kinds of businesses were leasing drove the global economy, then surely we Jane Jacobs’ classic work on urban plan- were closing, and pedestrian traffic was its properties, or what impact they had had both the capacity and moral obliga- ning, The Death and Life of Great disappearing. Middle-class families were on the neighborhood’s quality of life. tion to use our intellectual might to American (published in 1961), leaving, and empty houses were falling Some establishments were seedy and improve things at our doorstep. described the wreckage wrought by urban prey to abandonment and decay. The menacing. It seemed unlikely that a uni- In hindsight, it seems obvious that renewal, the demolished neighbor- streets were littered with trash, and aban- versity so alienated from a deeply dis- Penn should have been involved in the hoods, sterile industrial parks and sky- doned homes and buildings were can- tressed neighborhood at its doorstep development of its neighborhood. At the scrapers, and surface parking lots. Jacobs vasses for graffiti artists and business would continue to grow and prosper. time, however, neither my job description argued that healthy cities drew their eco- addresses for drug dealers. The public This was the fundamental problem nor my charge from the trustees included nomic and social vitality from what she schools were in especially bad shape, that the university faced in 1994, when I investing large amounts of my time and called a “city ecosystem”—the very mix of overcrowded and antiquated, with three became President. Although some coun- the university’s funds in community initia- land uses, buildings, shared public spaces, local elementary schools ranked at the seled that the problems were intractable, tives. It was one thing to support and rec- dense populations, and spontaneous bottom of the list in state-administered others encouraged Penn to take a leader- ognize the efforts of faculty to take incre- human interactions that urban renewal math and reading tests. Walnut Street, ship role in revitalizing the adjacent mental measures to solve West efforts annihilated. Bringing cities back to the main commercial thoroughfare neighborhood as a matter of enlightened Philadelphia’s problems, if it fit within life required restoring the damaged ecosys- through the campus, was dominated by self-interest. Early in my presidency, I was their research purview. But to offer to take tems of city neighborhoods, she wrote, surface parking lots, while the depressed persuaded by the latter view. Investing in the lead as an institution in redeveloping a paying attention to the smallest details. and desolate commercial corridor of West Philadelphia would pay academic distressed neighborhood—that disliked Jacobs concluded her book with a declara- 40th Street at the western edge of Penn’s dividends for Penn; this wasn’t a zero-sum us—and to assume an unprecedented level tion that anticipated the challenges and campus had become an invisible campus game, in which the university would have of financial and social risk, was a very dif- opportunities that Penn faced in West boundary beyond which Penn students to ransom its academic future to improve ferent story. Philadelphia. “Dull, inert cities,” she and faculty rarely ventured. the fortunes of the neighborhood. I Nevertheless, the decision to become wrote, “... contain the seeds of their own Despite many individual efforts of believed that for Penn to flourish aca- involved in neighborhood development destruction and little else. But lively, faculty and administrators to reach out demically, our neighborhood also had to was made by Penn’s trustees and senior diverse, intense cities contain the seeds of to the West Philadelphia community, the flourish. Otherwise, we wouldn’t be able leadership. At the time, the prevailing their own regeneration, with energy residents by and large felt that the uni- to attract the finest faculty and the theory of community development was enough to carry over for problems and versity had turned its back on the neigh- brightest students. to work from the grass roots up. needs outside themselves.” borhood. Penn was so near, and so large, I also felt strongly that we had to set an According to this view, government enti- When Penn decided to devote sub- and yet so remote. The city’s largest pri- example of integrity for our students. The ties and private institutions, such as Penn, stantial resources toward redeveloping vate employer spent hundreds of millions state of the neighborhood was our busi- should write the checks and distribute University City, many members of our of dollars a year on goods, services, and ness. How could we educate and exhort resources to nonprofit community devel- academic community were skeptical. construction, yet little of that money our students to contribute to society if we opment corporations, which would take Crime in West Philadelphia had trickled down to local businesses. Penn did not offer them an institutional exam- the lead in building social and economic increased dramatically from 1983 to managed its commercial real estate hold- ple of positive civic engagement? If Penn capacity into the neighborhood. In other

32 ZELL/LURIE REAL ESTATE CENTER REVIEW 33 words, you were supposed to sprinkle the local businesses; expanding local retail by hood initiatives, equal in status to com- individual homeowners—to commit, we grass roots with seed money, and watch attracting new shops, restaurants, and cul- mittees on university finance, develop- encouraged a revival of community associ- the neighborhood blossom. tural venues that were neighborhood- ment, and others. ations, block by block. There were two flaws to this approach friendly; and, improving the public Another neighborhood initiative in our case. First, no community develop- schools. While many urban colleges and involved planting 450 trees and 10,000 ment organization in West Philadelphia universities have taken action on one or PUBLIC SAFETY spring bulbs and the creation of four pub- had the capacity, or the track record, to another of these fronts, none had attempt- lic and three children’s gardens, which set turn a distressed neighborhood around. ed to intervene on all fronts at once. To make the neighborhood cleaner and the stage for the dramatic transformation Second, there was no time to slowly cul- At the same time, the agenda incorpo- safer, Penn strengthened its Division of of from a dangerous drug- tivate this capacity. Nor could one rely on rated cautionary restrictions on the univer- Public Safety by hiring more police officers infested space into a thriving recreational outside actors: real estate developers had sity’s behavior. First, Penn would not and investing in state-of-the-art technolo- venue for children and the site of a weekly not shown any interest in West expand its campus to the west or to the gy. A new police station was situated far- farmer’s market. Philadelphia; and the municipal govern- north into residential neighborhoods, only ther west beyond the campus, combined In addition to making University City ment didn’t have the financial resources to the east, which was made up entirely of with a Philadelphia police precinct substa- cleaner and safer, the university had a to take a leadership role. Only one entity abandoned buildings and commercial real tion. This signaled Penn’s commitment to major impact on housing, which itself had had the capacity, the resources, and the estate. Second, the university wouldn’t act the safety of its neighbors as well as its stu- become a public safety issue. The first stage political clout to intervene to stabilize the unilaterally. Instead, it would candidly dis- dents. involved acquiring 20 abandoned proper- neighborhood quickly and revitalize it cuss proposals with the community, and it Penn took the lead in creating a ties in strategic spots throughout the within a relatively short time period: would operate with transparency. And University City special-services , neighborhood. The houses were renovated Penn. If the university didn’t take the ini- third, the university wouldn’t promise which employed both safety ambassadors, and put on the market. The purpose was tiative to revitalize the neighborhood what it couldn’t deliver. It would limit who walked the streets and supported not to make a profit on the sales, but to itself, no one would. long-term commitments to promises that campus and city police, and trash collec- build capacity by stabilizing blocks and it could keep—and it would leverage its tors, who supplemented city units and promoting home ownership. The universi- resources by stimulating major invest- helped remove graffiti. These employees ty stepped up its efforts to encourage more THE A GENDA ments by the private sector. In my mind, were welfare-to-work participants, which Penn affiliates, staff, and faculty to nothing short of a revolution would do. I contributed to the neighborhood’s social into the neighborhood. But to make the The community development agenda wanted to reorient the administrative cul- action goal. In addition, Penn partnered neighborhood more attractive to residents, according to which we would rebuild West ture at Penn toward transforming the uni- with local residents, the electricians’ union, students, and visitors required not only Philadelphia’s social and economic capaci- versity and the neighborhood. There was and the local electric company to install safer streets and better housing, but also ty, required simultaneously and aggressive- only one way for that to happen: from the fixtures to uniformly light the sidewalks of radical improvements in the public schools ly acting on five interrelated fronts: mak- top. The leadership of Penn would take more than 1,200 neighborhood proper- and expansion of the retail base. The uni- ing the neighborhood clean, safe, and responsibility for directing and imple- ties. Not only did these efforts create a versity resolved to plan and build a public attractive; stimulating the housing market; menting the West Philadelphia initiatives. brighter and cleaner neighborhood, which school, and to develop two large-scale spurring economic development by direct- To underscore this, I asked our trustees to attracted more and more foot traffic, but mixed-use retail development projects in ing university contracts and purchases to form a standing committee on neighbor- by requiring whole blocks—rather than hopes that major anchors would bring

34 ZELL/LURIE REAL ESTATE CENTER REVIEW 35 other shops, restaurants, theaters, private Figure 1: University Square Figure 2: The Bridge Cinema investment, and private development to for attracting approximately $250 million University City. of private investment to the area. Developer Carl Dranoff has invested $55 million to convert a former 700,000- MIXED-USE DEVELOPMENT square-foot industrial warehouse into the Left Bank, a mixed-use complex featuring The university’s first venture into urban 282 market-rate apartments, shops and retail development was University Square restaurants, a child day-care facility, and (Figure 1). The 300,000-square-foot proj- office space (Figure 3). The Left Bank is a ect was located along a largely deserted perfect model for creative reuse of historic stretch on Walnut Street—previously bankruptcy and pulled the plug on the rant row that reflects the dynamic cultur- properties that can transform a neighbor- occupied by a parking lot—and included a project. This happened while the movie al diversity of the area. Thousands of peo- hood. Dranoff Properties is now one of hotel, a new university bookstore, several theater was under construction. ple—from the Penn community, from two lead partners in redeveloping two stores and restaurants, and a public plaza. Understandably, some people admon- the neighborhood, from all over the adjacent buildings. The second mixed-use retail development, ished Penn for biting off more than it region—flock to the shops, restaurants, But neighborhood development isn’t a 75,000-square-foot project, occurred at could chew and counseled us to abandon and cultural venues that have come into just about building projects. It is also the periphery of the campus at 40th and the project. Finally, less than two years being as a direct result of Penn’s decision about building economic capacity back Walnut streets. It entailed two critical after the Sundance project collapsed, the to redevelop a dying commercial core into the neighborhood by providing new amenities that would breathe new life into Bridge Cinema de Lux—a state-of-the- into a thriving, productive asset. opportunities for local businesses and job the shopping area around 40th Street: a art movie theater complex—opened to University City has become more growth among neighborhood residents. multi-story parking garage atop an innova- rave reviews (Figure 2). The Bridge attractive to real estate developers. Penn’s Historically, only a small portion of tive new supermarket—Freshgrocer—and attracts 500,000 patrons a year, and if you investments have proved to be the catalyst Penn’s institutional purchases benefited a movie theater. were to visit the Freshgrocer at 10 p.m. or local businesses. The university decided Figure 3: The Left Bank, looking east Penn assumed all the risks in these even 2 a.m., you would see students and along Walnut Street to deploy its purchasing more strategical- projects and encountered its share of neighborhood residents shopping, nosh- ly. In seven years, $300 million in goods obstacles. The initial plan for the movie ing, and schmoozing together—all indi- and services was purchased from West theater was to create a venue for inde- cations of a healthy city neighborhood, Philadelphia businesses. In addition, pendent and experimental films, and fea- just as Jane Jacobs taught. construction projects were required to ture an art gallery and café, a video All told, scores of new shops that run create substantial access to the building library, community meeting spaces, and a the gamut are opening throughout the trades for women and minorities. The jazz club. However, a 1998 agreement University City neighborhood, and a university also invested in small business- with Robert Redford and Sundance commercial corridor given up for dead es that created opportunity for welfare- Cinemas fell through when the parent now bustles with art galleries, perform- to-work recipients and other members of company, General Cinema, filed for ance spaces, and an international restau- the community.

36 ZELL/LURIE REAL ESTATE CENTER REVIEW 37 All told, these interventions have The hard fact is that in American cities, way agreement. It took another year of Figure 4: The central atrium of the Sadie Tanner Mossell Alexander University of been remarkably effective in revitalizing children from low-income families, by and painstaking, thoughtful collaboration with Pennsylvania Partnership School the neighborhood. Between 1996 and large, are trapped in struggling schools. educators and community representatives 2003, crime has fallen 31 percent. Their parents have no choice and little to come up with a design for the new Homeownership and the price of houses hope of seeing their children receive a school, and then another year of address- have increased significantly. More than good education. Middle-class families with ing the fears and concerns of residents— 450,000 square feet of new retail invento- school-age children in University City did some of whom were suspicious of our ry has been added to University City, with have a choice: They could send their chil- motives and others who didn’t want to be 25 new stores opening over the past four dren to a private school or they could left out in the cold. But ultimately, with years. Hundreds of new jobs for local resi- move to the suburbs. What was it going to the leadership of the Graduate School of dents have been created. Thanks to a part- take to give children from poor families a Education, we were able to succeed (Figure nership with Citizens Bank, more than reason to hope, and middle-class families a 4). The university-assisted, pre-K-through- $28 million has been made available to reason to stay and become truly vested in 8 neighborhood public school accomplish- local non-profit community development the neighborhood? es many things. It provides an excellent groups, for-profit developers, small busi- The answer was obvious: an excellent education for up to 700 neighborhood nesses, and homeowners. new school. Penn took the lead in creating children. It strengthens existing neighbor- Perhaps the most intriguing statistic of an inclusive neighborhood public school hood schools by providing professional all is demographic. While Philadelphia as a whose enrollment reflected the broad development for teachers and serving as a whole has seen its population decline by 4.5 diversity of University City. Only a school source of best practices. Because the school percent over the past five years, University of this magnitude would capture the pub- is linked to ongoing neighborhood revital- reputation. All the markers of academic City has seen an increase of 2.1 percent. lic’s imagination and send the strongest ization, the school is also evolving into a success—rankings, faculty awards, student That may not be a staggering number by possible signal to our neighbors that Penn community center that offers many things applications, selectivity, growth in endow- itself, but when you consider the alarming was deeply committed to a sustainable to the community: vocational, recreation- ment—have risen to record levels. condition of this neighborhood a decade future for West Philadelphia. However, for al, and adult education programs; cultural The West Philadelphia initiatives are ago, that figure puts an exclamation point such a public school to model best prac- events; and a town hall where the residents winning national and international awards on our revitalization efforts. tices and innovations to the benefit of can come together to explore and debate and competitions for design, creative land other neighboring schools, and ultimately issues and visions of the future. use, and economic impact, most recently, play a role in transforming urban public the prestigious Urban Land Institute’s EDUCATION education, it had to involve the School 2003 Award for Excellence. District and the Philadelphia Federation of CONCLUSION With strategic planning, brutal self- Shops and restaurants make University City Teachers in a true partnership. assessment, measurable implementation a more enticing place to visit, but in order Nothing quite like this had ever been Far from robbing Penn’s academic future goals, perseverance, and luck, Penn has to attract families to the neighborhood, it tried in the history of U.S. public educa- to pay for this progress, engagement with transformed its relationship with its neigh- was necessary to improve public education. tion. First, it took persuasion and gentle neighborhood development has played a bors. Ten years ago, the neighborhood was This became Penn’s greatest gamble. arm-twisting to reach an historic, three- critical role in enhancing Penn’s academic a liability to the university. Today, Penn

38 ZELL/LURIE REAL ESTATE CENTER REVIEW 39 celebrates its ongoing transformation into a world-class urban research university that is nourished by the neighborhood it helped to redevelop. The next decade will see Penn spear- heading development primarily to the Population Changes east. Surface parking lots will be turned into student housing and recreational and the Economy space. Abandoned industrial and com- mercial buildings will be converted into mixed-use facilities for teaching, scientif- ic research, and technology transfer enterprises. There will be more shops, more green spaces, and more lively streets as University City links seamlessly with Center City. This time, however, it will all be done through partnerships between Penn and private developers. Penn is in the business of neighbor- Predicting the effect of the SOME ECONOMIC forecasters have hood transformation for the long haul. suggested that the retirement of the baby Ten years ago, few thought Penn had retirement of the baby boom boom generation will precipitate a the guts to stick its neck out for its neigh- decrease in aggregate spending, leading generation on the economy is bors. Today, we realize that by putting to various market collapses in housing, our money and reputation on the line to the stock market, and even the entire not a straightforward matter. help revitalize University City, the neck economy. This view is strongly rejected we saved might well turn out to have by the vast majority of economists and been our own. demographers. The bases for this rejec- tion are that the aging of the baby boom generation is fully anticipated by mar- kets, and that markets smooth the price effects of anticipated changes. The notion of projecting the future of a market on the basis of future popu- lation shifts is attractive because many

J ANICE F. MADDEN population changes can be predicted

40 ZELL/LURIE REAL ESTATE CENTER REVIEW 41