MAGNET CITIES IN NEW ZEALAND AUCKLAND / WELLINGTON / CHRISTCHURCH SUMMARY & FINDINGS EXECUTIVE SUMMARY Cities are one of the There are now 400 cities of one million Haynes, an economist and government fundamental building blocks people competing for the best ‘extremely advisor from the UK visited New mobile’ talent and growth companies Zealand in June and again in October of a prosperous country AUCKLAND to drive national economies. These 400 this year. During her visit she and it is time to take them cities are direct competitors for Auckland, conducted workshops with city seriously. A city with a strong Wellington and Christchurch. Putting officials and other stakeholders in magnetic pull draws in this in a global context, the future of Auckland, Wellington and Christchurch geographic competition will be between to help recognise ways to approach new residents, visitors and 500 large cities which will control 80% of beneficial change. global financial activity. business investment. They Her key insights from each of the WELLINGTON are brimming with innovative KPMG’s Caroline Haynes and Vanessa major cities are that: Christchurch ideas, have attractive Forshaw have developed a framework for has the opportunity to become infrastructure and a buzzing thinking about cities and how to draw in technology testbed city, using 'smart CHRISTCHURCH people who will make the city prosper. city' infrastructure; Wellington can culture. These cities attract a They identified nine cities around the leverage the expertise in the public specific group of educated, world who have switched their magnetic sector on a global basis; and Auckland ambitious and energetic pull and now attract young wealth can encourage new business growth young people, coined young creators. A bold experiment and huge by attracting start-up accelerators. risk has resulted in them becoming fast- We hope these insights provoke and wealth creators. growing cities with economic growth that inspire New Zealand cities to answer in many instances outstrips the national the following key questions: average. 1. Who do we need to attract or retain in our cities to generate future wealth? 2. How can we compete against other cities to attract them? WHAT IS A MAGNET CITY? Magnet cities are those Caroline Haynes and Vanessa who have taken a bolder Forshaw from KPMG UK has developed a framework for approach to growth thinking about cities and how to and invested in creating draw in people who will make the an environment that is city prosper. attractive to people The case study cities were who make a city grow, unattractive to new growth, in a those coined Young cycle of decline and repelling people. A bold experiment and huge risk Wealth Creators. has resulted in them becoming fast growing cities with economic growth often above the national average. New Zealand has an opportunity to develop magnet cities. We can ensure that our cities have strong identities, i.e. the unique features that attract young people and the infrastructure to support a high tech dynamic group. We can foster innovation and have a brand that is attractive to forward thinking business. WHAT HAVE WE LEARNT? PEOPLE ATTRACT Young Wealth Creators are a specific There is fierce competition for group of educated, ambitious and Young Wealth Creators and they: energetic young people. They create • Care about sustainability and jobs of tomorrow, bringing along the environment with them the city’s future wealth. • Embrace physical fitness These people are entrepreneurs, and outdoor pursuits researchers, designers, engineers, physicists, bloggers, artists, • Are foodies – enjoy artisan animators, app and game designers, food, drinks and cocktails clean-tech advocates and people • Get stuck into neighbourhood that build on existing businesses and civic networks or identify and grow new • Are attached to multiple electronic industrial niches. devices simultaneously We need to identify and target A city can’t just invest in physical specific groups of Young Wealth infrastructure and developments Creators and refashion and leverage geared to young people (e.g. all the city’s assets to make redeveloped areas for bars), this them move here. investment must be focussed on what would attract the particular group of Young Wealth Creators we want. Seven key principles 4. CONNECTED were identified that Magnet cities are well connected to other cities – easy to get in to underpin growth and out of. and can be used by The city must first have regained some cities to create their own magnetism before transport links are THE SEVEN helpful, otherwise they provide easier positive magnetic pull. links for residents to leave. Visitors help build magnetism and are PRINCIPLES potentially tomorrow’s residents. 1. ATTRACT YOUNG WEALTH CREATORS 5. NEW IDEAS Identify and establish a unique Magnet cities nurture new ideas. relationship between the city itself and If possible leverage off academic the particular group of young wealth institutions to bring changes to creators you aim to attract. the city. Target groups that have a logical link Be specific about the industry clusters to the city. The city’s point of attraction you want to support, then focus and must be genuine – based on the city’s support this development. heritage. 6. FUNDRAISERS 2. PHYSICAL RENEWAL Magnet City governments attract Ongoing physical renewal keeps private investments, research grants 1 2 cities interesting and new. and public funds for the city. Consider the housing required by your Progressive magnet cities offer their group of young wealth creators, it’s own risk capital to attract investment density, location and access to public and funds. transport. Significant improvement of a city A strong downtown area can requires public and private money strengthen the magnetic pull of working together. the entire city. 3 4 5 7. STRONG LEADERS 3. CITY IDENTITY Reinventing a city requires strong Cities that attract young wealth mayors and civic leaders. creators have a strong and clear city Magnet city leaders have to stay identity that residents connect with. true to the vision in the face of Without a clear city identity it is difficult public dissent. 6 7 for people to understand what a city Magnet city leaders all work more stands for and its attraction. collaboratively with residents, Through concerted effort you can investors, developers, businesses create a city identity if it does not exist. and universities than is the norm. THE ECOSYSTEM FOR A MAGNET CITY EXISTS… IT JUST NEEDS CONNECTIONS AND COMMUNICATION AUCKLAND WELLINGTON CHRISTCHURCH TAMAKI CREATIVE AND CREATORS AND KAI EXPERIENCE TECH DISRUPTORS Nature Tech: Wellingtons fusion Christchurch’s the intersection of technology, boundary busters: of culture, food, creativity and fusion of health and public service creativity and technology for life. experience. disruption. LESSONS NEW ZEALAND CAN LEARN FROM MAGNET CITIES MAGNET CITY YOUNG WEALTH CREATORS KEY ACTION LESSONS FOR NZ CITIES Malmo, Sweden Socially progressive clean technology Urban renewal & infrastructure Entrepreneurial approach using public Population 656,000 & sustainability entrepreneurs combining sustainability and design assets to seed growth Pittsburgh, USA R&D focused on robotics, artificial Quality projects, including making University leaders pivotal. 1,200,000 intelligence & medical innovation city walkable. Magnet for innovation Alternative taxes created investors Changwon, South Korea Environmental and creative Combined 3 cities; environmental Can-do mayor & pro-business 752,000 entrepreneurs renewal government Bilbao, Spain Creative professionals Changed the urban core Reclaimed the waterfront; 979,000 innovative funding Denver, USA Medical & bio-tech millennials wanting Attracted research leaders. Public art Connected transport; used sales tax 2,500,000 work-life balance & outdoors pursuits projects. Transport & downtown renewal and municipal bonds for funding projects. Incheon, South Korea Global scientists, researchers and Physical transformation - iconic Attracted universities; enabled 2,600,000 global business executives buildings, transport, parks, waterways private funding Oklahoma, USA Young educated professionals with Enhanced river as outdoors area; created Council with commercial mind-set 1,200,000 outdoors and sports focus canals, stadiums; urban renewal Tel Aviv, Israel Technology entrepreneurs Redeveloped seafront; provided 24hr non-stop city – eat, drink and 425,000 start-up space dance all night MEET Looking through our future lense of AND THE FUTURE AUCKLAND who we might be able to attract THE PERSON... THE CITY... » Brazilian. » After graduating from Stanford, » Auckland has world-famous food markets, held seven days » Age 30. he took a job in Auckland – he did this because Auckland is where a week, where food companies » Degree in chemistry from University of Brazil. some of the most exciting food test new food innovations. » PHD from Stanford University. innovation around the world is » People travel from around » Interested in the chemistry behind food, taking place. the world to go to these food particularly new food products. » Fonterra has opened a secondary markets, providing a huge boost » Strong moral compass. R&D facility in the old Port to tourism. » Worried about increasing levels of Location in central Auckland. » Pioneering spirit. malnutrition of both kids and adults. » The city has residents from » The Auckland Awards – an » Concerned about the environment. all over the world. annual global