USING THE ARTS FOR ECONOMIC DEVELOPMENT:
A CASE STUDY OF THE CANTON ARTS DISTRICT
A Thesis
Presented to
The Graduate Faculty of The University of Akron
In Partial Fulfillment
Of the Requirements for the Degree
Master of Arts
Tricia M. Ostertag
May, 2011
USING THE ARTS FOR ECONOMIC DEVELOPMENT:
A CASE STUDY OF THE CANTON ARTS DISTRICT
Tricia M. Ostertag
Thesis
Approved: Accepted:
______Advisor School Director Mr. Durand L. Pope Mr. Neil Sapienza
______Committee Member Dean of College Ms. Kathleen Ringley Dr. Chand Midha
______Committee Member Dean of Graduate School Mr. Neil Sapienza Dr. George R. Newkome
______Date
ii
DEDICATION
This manuscript is dedicated to:
…my beautiful sons Dane and Jesse and to my wonderful husband for keeping them out of my hair while I researched and wrote it.
…all of the teachers and professors along this journey who have inspired me to pursue higher education not only out of necessity, but out of passion, especially Susan Triner,
Kathy Ringley, David Scholl, Mark Rogers and Randy Pope.
…my colleagues, friends and mentors at the Canton Players Guild who instilled in me a love for the arts that will never die.
…my parents who I know would be so proud of my accomplishments.
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AKNOWLEDGEMENTS
I want to thank my classmates in the Akron Arts Administration program, especially
Brian Marshall for encouragement to finish this in a timely manner.
I also want to thank Randy Pope for his guidance. I feel privileged to have been your student.
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TABLE OF CONTENTS
LIST OF FIGURES……………..……………………………………………..….……...vi
CHAPTER I. INTRODUCTION………………………………………………………….1
II. WAYS TO USE THE ARTS FOR COMMUNITY RENEWAL………...……...…...3
City Beautiful Movement…………………………………………………………4
Increase Tourism………………………………………..………………….....….6 Drawing a Young and Creative Workforce…………..……………………..……8 Creating Jobs…………………………………………………...……………..….10 III. THE CANTON ARTS DISTRICT……….……….……………………………...….13
IV. ECONOMIC IMPACT OF THE ARTS IN THE UNITED STATES...... …...…...23
V. COMMUNITY BASED ARTS SUPPORT AND ITS IMPORTANCE………...... …29
Examples of the Growth of Arts-based Strategy..…………………….….….….29
Federal Funding……….…………………………………………………...…….32
VI. SUGGESTIONS TO COMMUNITIES LOOKING TO IMPLEMENT ARTS- BASED COMMUNITY DEVELOPMENT PROGRAMS……………………………...36
VII. CONCLUSION………………………………………………….………………….41
BIBLIOGRAPHY………………………………………………………………………..42
v
LIST OF FIGURES
Figure Page
2.1 Spending by Resident and Nonresident Audiences ………………………..……7
2.2 Percentage of U.S. Workforce………………………………………….………..10
2.3 Expenditures by Nonprofit Arts & Culture Organizations………………....…...11
4.1 Growth of the Nonprofit Arts & Culture Industry between 2000 and 2005………………………………………………...……….25
4.2 Impact of Nonprofit Arts and Culture Audiences ……………………..……….26
4.3 Breakdown of Income Generated by Arts Attendees Based on 2005 Data ……………………………………………………....……..27
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CHAPTER I
INTRODUCTION
The nonprofit arts industry, which generates $166.2 billion in economic activity each year, is a powerful force for economic development nationwide. Arts initiatives have served as components of economic development programs by assisting local governments in many ways. Communities that invest in the arts reap additional benefits of jobs, economic growth, and quality of life.
In times of economic difficulties people often look for things to eliminate in order to save money. Support of nonprofit organizations has taken a hit in the last five years and the arts have felt the cuts more than any other. Sources of support include corporate donations and sponsorships, giving by individuals, federal and state government grants, and grants from private foundations. The USA Today explains that because of the widespread impact of the current crisis, support from all these sources has decreased or dried up altogether (McCoy).
What so many fail to see, and what this thesis will examine, is the economic stimulus that the arts can bring to communities when founded and nourished by sound business principles. In the chapters that follow I hope to encourage community based arts revitalization.
1 The arts can create an influx of tourism, a surge in job creation, and have the ability to draw a young, creative, and energetic workforce to a community. The arts draw business industry professionals seeking inspiration, entertainment and a thriving home to raise their families.
Nonprofit arts and culture organizations are an important component of a prosperous community. They are employers, consumers, producers and members of local organizations such as chambers of commerce and because of these roles, they have a strong position in the economic stability of an area. The direct economic impact that this has will be explored.
The thesis will delve into the successful creation of a community arts district and its effect on the local economy by examining the Canton Arts District. This in-depth look at a depressed city center‟s metamorphosis into a thriving arts hub bares evidence to the power the arts can provide. This study also shows how a single city arts initiative transitioned into a county wide arts council, thereby spreading its effect to every corner of its community base.
The examples of arts rejuvenation spread from coast to coast with wide-ranging strategies and successes. By looking at the facts and statistics gathered in the following chapters I hope to expose bankable concepts for real community arts growth.
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CHAPTER II
WAYS TO USE THE ARTS FOR COMMUNITY RENEWAL
Local governments across the United States look for ways to increase economic success. According to Dr. Rhonda Phillips, a well published author and professor of community development, only as recent as the mid-nineties was the arts accepted as an industry and as a tool for economic development strategy.
Much of the data used to prove the connection between the arts and economic success comes from Americans for the Arts, a highly respected nonprofit organization dedicated to advancing the arts in the United States. In 2005, Americans for the Arts released their third study of the nonprofit arts and culture industry‟s impact on the nation‟s economy. This study is the most up-to-date, reliable and most used data to demonstrate the value of the arts in terms of economic impact (“Arts & Economic
Prosperity III”). Americans for the Arts is currently conducting the fourth round of the study and results from that will be published in 2012.
Robert L. Lynch, President and CEO of Americans for the Arts, says that as public funding for the arts continues to decrease, arts administrators and supportive government officials are looking for creative ways to make the arts a necessary part of community sustainment and renewal. In order to prove this point to their constituents,
3 elected officials and business leaders need strong, credible data that demonstrates the economic benefits of a vibrant arts and culture industry (“Arts & Economic Prosperity
III”).
City Beautiful Movement
Despite the more recent trend towards using the arts in specific strategy, the role of the arts in community development has a long history, with roots in the City Beautiful
Movement that began in the 1890s (Phillips).
The City Beautiful Movement was a reform movement in North American architecture and urban planning that flourished in the 1890s and 1900s with the intent of using beautification and monumental grandeur in cities. The movement, which was originally most closely associated with Chicago, Detroit, and Washington, D.C., did not seek beauty for its own sake, but rather for the common good, to create moral and civic virtue among urban populations. Advocates of the movement believed that such beautification could promote a harmonious social order that would increase the quality of life (“City Beautiful Movement”).
Urban populations grew drastically in the late 19th century due to high birth rates, increased immigration, and consolidation of rural populations into cities (“City Beautiful
Movement”). During the period 1860 to 1910 urban population jumped from 31.4 million to 91.9 million, and the percentage of Americans living in cities increased as well, with 46% of Americans living in cities with populations of over 2,500 (“The City
Beautiful Movement”). This population growth created many problems for urbanites,
4 including such things as unsanitary conditions, overcrowding, and corruption of government. The result was growing social unrest, violence, labor strikes, and disease.
A leading urban designer named Frederick Law Olmstead was highly influential in transforming the American landscape through the City Beautiful Movement. He, along with many of his peers, wanted to improve the social environment through urban planning and design. The World Fair of 1893 showcased many of their ideas employing the Beaux-Arts style of Paris when designing the fairgrounds in Chicago. After the success at the World Fair, the utopian ideals of the City Beautiful Movement were reproduced in over seventy-five civic improvement societies (“City Beautiful”).
The City Beautiful Movement advocated the utilization of the economic and political structure of the time to create spacious, orderly, and beautiful cities that reflected high moral values. It was believed that people that lived in this type of city lived a more virtuous and moral life (“City Beautiful”).
The idea of integrating public art, public parks and other spaces, and distinguished architecture for public buildings was extremely popular for several decades, eventually morphed evolving into what we know today as urban planning (Phillips). The official movement came to an end because government funds were funneled into fighting World
War I (“City Beautiful Movement”). The City Beautiful Movement was the first instance of using the arts for community development.
When the interest in art was renewed, it went beyond simply beautifying a city through physical structures; it also recognized the social, cultural, and economic impact 5 on communities. It is the integration of the arts into overall community development strategy and planning, including encouraging citizen participation, that seems to be an effective community development approach (Phillips, 2004). Most successful approaches build support for the arts through infrastructure improvement and other activities. The way that a state defines its creative economy depends on the composition and character of its venues, businesses, nonprofits and residents (“Arts & the Economy”).
The arts are used in several key strategies to help create a desired environment.
The resulting effects are both direct and indirect in nature. Indirect effects include the increase of amenities and aesthetics of a community which enhance its overall image and, as a result, attract growth and development. Direct affects are seen more concretely in the increase in tourism, the draw of a young and creative workforce and the creation of jobs.
Increase Tourism
Some communities develop their arts-based resources into venues that attract tourists. While other approaches recognize tourism as a valuable economic development activity, this approach explicitly develops programs to support tourism. In doing so, the arts become a direct contributor to urban and rural revitalization.
Arts and cultural activities attract tourists and inspire the creation of ancillary facilities. Arts facilities and events increase property values and profitability for communities (“The Role of the Arts in Economic Development”). They generate spending that pumps vital revenue into restaurants, hotels, gas stations, retail stores and other local businesses. According to Americans for the Arts, the typical local attendee
6 spends an average of $19.53 per person per event in addition to the cost of admission while out of town guests spend $40.19 per person (“Arts & Economic Prosperity III”).
The following figure from the 2005 study “Arts & Economic Prosperity III” shows the breakdown of arts and culture spending by resident and nonresident audiences.
Figure 2.1 Spending by Resident and Nonresident Audiences
CATEGORY OF EXPENSE RESIDENT NON RESIDENT ALL AUDIENCES AUDIENCES AUDIENCES
Meals/Refreshments $10.77 $16.35 $13.00
Gifts/Souvenirs $3.32 $4.78 $3.90
Lodging $1.08 $10.91 $5.01
Child Care $0.34 $0.33 $0.34
Transportation $1.62 $4.37 $2.72
Other $2.40 $3.45 $2.82
Total $19.53 $40.19 $27.79
Provided by Americans for the Arts, 2005, “Arts & Economic Prosperity III”
The ratio of local attendees to out-of-town guests varies by location, but the national sample showed that 39% of arts patrons traveled from outside the county in which the event took place (“Arts & Economic Prosperity III”).
A community must be careful when using this approach so that over- commercialization does not threaten community spirit. Robert Kolb, author of
7 Encyclopedia of Business Ethics and Society points out that “artistic autonomy is a valued freedom in the arts and that commerce often undermines this autonomy by dictating deadlines and monetary value. Commerce innately rewards those that maximize output and thus puts pressure on artists to survive,” (Kolb, 354). Despite the criticism of commerce‟s role in the arts, Kolb believes it is apparent that artists, consumers of artistic output and the communities in which they live benefit from involvement in commerce.
Drawing a Young and Creative Workforce
According to Americans for the Arts, in the past twenty years states have begun to realize that their economic success is directly linked to their ability to attract a young and creative workforce that is the intellectual backbone of the drive toward a digital world.
As the arts flourish, so will creativity and innovation which is the fuel that drives our global economy (“Arts & Economic Prosperity III”).
Chambers of commerce, businesses, and convention centers use local culture to attract new businesses and employees to an area. They are trying to sell a community‟s quality of life to prospective new businesses and employees (Singer, 8). These workers value “quality of place” above many other factors. According to Urban Studies theorist
Dr. Richard Florida, there are four factors that determine quality of place: lifestyle, environmental quality, a vibrant music and arts scene, and natural and outdoor amenities
(“The Role of the Arts in Economic Development”).
Florida believes that the arts are gaining recognition for their role in making communities attractive to workers who want to be identified with and participate in 8 artistic opportunities during leisure time. The arts and culture of a region are an important determinant of quality of life, which is widely considered a critical factor in location decision making for workers (“The Role of the Arts in Economic Development”).
A 1998 survey of more than 1,200 high-technology workers looked at the factors that determined a city‟s appeal when considering a new job. The study found that
“community quality of life” was the second most important factor, just below salary and more important than benefits or company stability (“The Role of the Arts in Economic
Development”). According to Florida, vibrant cultural districts have a strong appeal to young employees. “In today‟s labor market, you have to be where your team members want to be. You don‟t tell people how they want to live—they tell you,” (“The Role of the Arts in Economic Development”).
But there are genuine profitable reasons for the skills-based workforce to seek a vibrant culture relating directly the nature of their work; creativity is an essential raw material. Cultural participation keeps the creative skills of a knowledge-based employee sharp. John D. Ong, Chairman Emeritus of The B.F. Goodrich Company explains,
People who create in our companies, whether they are scientists, marketing
experts or business strategists, benefit from exposure to the arts. People cannot
create when they work and live in a culturally sterile environment. The economic
benefits of the arts greatly transcend and outlive any of the normal cycles. That is
why business invests in the arts—even when times are tough, and when there is
increased pressure to manage money carefully, (“The Role of the Arts in
Economic Development”). 9 Creating Jobs
As of 2005, nonprofit arts and culture organizations alone supported 2.6 million full-time equivalent jobs. Of this total, 1.3 million jobs were the result of “direct” expenditures by nonprofit arts organizations which represents 1.01 % of the U.S. workforce. These organizations support more jobs than there are accountants and auditors, public safety officers or lawyers, and slightly fewer than elementary school teachers. Figure 2.2 provides a context for the significant impact of the arts on the job market (“Arts & Economic Prosperity III”).
Figure 2.2 Percentage of U.S. Workforce
1.14% 1.20% 1.01% 1.00% 0.81% 0.80% 0.48% 0.60% 0.41% 0.34%0.31%0.30% 0.40% 0.27%0.22% 0.20% 0.01% 0.00%
Provided by Americans for the Arts, 2005, “Arts & Economic Prosperity III”
In addition to this representation is the fact that because arts and culture businesses are rooted in their communities, those are jobs that remain local and cannot be
10 shipped oversees (“Arts & Economic Prosperity III). Money spent to employ workers generally tends to stay within the community. Because of the nature of arts based business, this expenditure ranks highest in the breakdown of costs and therefore keeps money circulating within the community. Figure 2.3 shows how those expenditures rank against other costs.
Figure 2.3 Expenditures by Nonprofit Arts & Culture Organizations
Facility/Rent, 6.60%
Artists/Personnel, 43.20%
Asset Acquisition, Production/ 21.80% Administration, 1.4%
Provided by Americans for the Arts, 2005, “Arts & Economic Prosperity III”
One type of arts-based community development program that emerges under this category is the Art Business Incubator, designed to foster a community‟s business development efforts. This approach includes shared administrative and other services, centralized space and business development assistance (Phillips). The elements involved in arts incubators are nothing new, but it is the combination of these aspects that make it
11 unique. The physical co-location of arts groups focused on organizational development, the shared resources, the intensive technical assistance over and the emphasis on collaboration define the arts incubator (“An Introduction to Arts Incubators”). The mission of these incubators is general economic development through job creation, economic diversification and tax-base expansion.
This strategy allows artists to acquire or fine tune business skills by partnering in cooperative situations. By keeping overhead costs low and providing combined services, artist entrepreneurs have a higher success rate when starting a business (Phillips). There is also national support through the National Business Incubation Association (NBIA) which is the world‟s leading organization devoted to the advancement of incubators and entrepreneurship (nbia.org).
An example of this strategy working is the Arts Incubator in Kansas City,
Missouri. This program is the only member of the NBIA devoted to the visual arts and has been recognized by the organization for its successes. Currently the Kansas City Arts
Incubator runs a four-story, 32,000 square foot facility in the arts district of the city. The facility supports forty-seven artists-in-residence. Since its inception in 2001, they have assisted over 160 artists in varying disciplines start their own arts-based business
(artsincubatorkc.org).
In the current recession, elected officials are looking for ways to create jobs and keep their cities alive. By drawing people to these cities through tourism and urban renewal, the arts are proving to be a strong catalyst for economic development.
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CHAPTER III
THE CANTON ARTS DISTRICT
Since 2006, the city of Canton has experienced an arts explosion primarily due to the shift of focus for the Cultural Center for the Arts simply a venue to a county-wide arts council, ArtsinStark. Because of this renewed interest in the arts, new events and arts organizations have been formed to stimulate interest in downtown. How has the creation of ArtsinStark revitalized downtown Canton?
The roots of ArtsinStark began in 1966 with the goal of building a Cultural Center for the Arts alongside the Canton Civic Center. The Timken Foundation announced its commitment to a proposal for building a complex that would house several arts organizations, applying the concept of the shopping mall where unique entities are housed under one roof. The site the Timken Foundation chose was the former Harter
Estate, eight and one half acres on Market Avenue North between Ninth and 12th Streets.
The Foundation had purchased this land in 1965 for $955,000 at a public auction.
In keeping with the industrial architecture popular in Stark County, the center was constructed with brick, clay, and gravel, (artsinstark.com). It took four years to complete at a cost of $9 million and was dedicated to the citizens of Canton on December 13, 1970.
With the creation of the building came the nonprofit organization of the Cultural Center
13 that had the ultimate responsibility for the operation of the 330,000 square foot complex through its Board of Trustees, the separate legal and functional identities of the constituent organizations were maintained. Only a select group of large organizations with long histories were asked to take up residence in the arts center. These included the
Players Guild Theatre, Art Institute (now known as the Canton Museum of Art), and
Canton Civic Ballet Company. The complex included a music hall which served as a performance venue for the Canton Civic Opera and the Canton Symphony. The five flagship organizations of the Cultural Center would be at the epicenter of what is now known as ArtsinStark.
The center was run mainly by volunteers, although a full- time director, Rod
Rubbo, was hired in 1979. Rubbo along with other support staff developed the Fund for the Arts which was established explicitly to meet the expenses of the center as well as to provide funding for the five resident organizations. Over his twenty-five year tenure,
Rubbo grew the arts campaign from an annual income of $225,000 to $1 million (Kane,
2004).
As the Arts Center grew, it became increasingly obvious to its board of trustees that there was a need for the creation of an entity that would aid, not just the five resident companies, but a much broader spectrum of nonprofit arts organizations that existed throughout Stark County as well. The board spent nearly four years discussing the possibility of evolving into a county arts council. “Eventually the executive leadership of
ArtsinStark decided it was time to just do it,” said ArtsInStark CEO Robb Hankins.
“Depending on whom you talk to, the discussion rages on,” (Hankins, 2009).
14 The Cultural Center‟s board was dissolved in 2005 and replaced by a broader- focused ArtsinStark board that hoped to embrace other arts concerns countywide, (Kane,
2005).
On May 5, 2005, the newly formed ArtsinStark began its annual Fund for the Arts campaign with a goal of, $1.3 million, nearly $300,000 more than any previous campaign. The plan was to split the first $1 million among the resident companies of the
Cultural Center and additional money raised would be distributed to other county arts organizations through a grant process, (Kane, 2005).
Achieving this goal required an overhaul of the campaign model that had been used in the past. The board decided to model the campaign after the highly successful
United Way campaign, joining the forces of all fine arts groups in Stark County to collaborate in raising money. In an editorial written at the start of the campaign, the editorial staff of The Repository commended ArtsinStark for their innovative take on fundraising.
The fine arts groups in Stark County are learning to trust each other enough to
cooperate in fund raising. The result will not be one giant theater company or
museum. But the result will be one giant effort to support the various arts
organizations throughout the county. This is progress, and it is a great reason to
support the annual Fund for the Arts this year, (Editor, 2005).
With the focus shifting toward a more county-wide view, ArtsinStark needed to hire a leader that could mold the vision and future of the organization.
Robb Hankins was named Chief Operating Officer in October 2005 and charged with redirecting the mission of the newly formed ArtsinStark. Hankins came to the 15 position with over thirty years of experience directing city, county, and state arts agencies. Information about his background states that he “has built or retooled four united arts fund drives, created major community arts festivals, overseen public art programs, redesigned arts education initiatives, and helped revitalize downtowns,”
(About Us, 2009).
In the four years that Hankins has been with ArtsinStark, he has managed to do all those things for Stark County and more. “The results have been pretty dramatic,” said
Hankins. “$600,000 in new special project grants to over 200 organizations never funded before, a new SmArts program in the schools, a new Arts District in Canton and four years of record-breaking annual arts campaigns,” (Hankins, 2009).
Following the success of the 2005 Fund for the Arts campaign, ArtsinStark opened up the first grant process for Stark County arts projects. Over 100 organizations in the county submitted applications for a piece of the $230,000 being distributed. Grants ranging from a $500 mini-grant to a full $20,000 were announced on January 20, 2006, changing the face of the arts in Stark County by giving any arts organization the chance to receive funding.
As a result of the grant process, many arts projects were started in downtown
Canton including public art, classes, and events such as First Friday. Canton‟s First
Friday was set up in 2007 as a monthly event held in downtown celebrating the arts, local food, and entertainment. From its inception, First Friday has brought thousands of people from all over Stark County and beyond to downtown once a month.
Between six and ten in the evening, art galleries and studios open their doors.
Street musicians perform on street corners and in restaurants. Local non-profits 16 organizations man booths promoting their upcoming activities. The streets are alive with the sights and sounds of art. The event fills the gap created when many Football Hall of
Fame events were moved out of downtown. It encourages residents to feel safe to bring their families to the streets of Canton to enjoy an evening of art and fun. Most importantly, it is all inclusive, drawing art enthusiasts, people with interest in art, and, perhaps most importantly, people who do not think of themselves as fans of the arts.
Kane describes the atmosphere when he says, “All types of people show up, from pierced and tattooed bohemian kids to young families to senior citizens. The mood is friendly and freewheeling,” (Kane, What are you doing next Friday? , 2007).
Growing on the successes of its first year, First Friday continues to expand and invite participation of downtown employees and visitors. During the summer, nearly one thousand people fill the streets. Even during the colder months, crowds can number in the hundreds.
In addition to creating awareness through traditional marketing means, word-of- mouth has heightened the downtown buzz that excites and motivates attendance each month. Traffic on the website, CantonFirstFriday.com, is steadily increasing, with many new visitors tracked monthly, (artsinstark.com).
First Friday was born out of a partnership between the Canton Development
Partnership (a subsidiary of the Chamber of Commerce) and ArtsinStark. The Canton
Development Partnership is a coalition of area development organizations and city government that share an interest in downtown Canton's continual improvement, revitalization, image, and the quality of life for its citizens. Its mission is to “support and coordinate the activities and programs of its partner organizations in order to encourage 17 and sustain community and economic development in downtown Canton, (About Us,
2009).”
Two of the partnering organizations working to involve the arts in the revitalization of Canton are the Downtown Canton Land Bank and Downtown Canton
Special Improvement District. Downtown Canton Land Bank “provides a revolving source of funds for the acquisition, assembly and disposition of real property within and contiguous to the Downtown Canton Special Improvement District to support and advance the revitalization of downtown Canton, (About Us, 2009).”
This organization has been active in the placement of local artists in downtown buildings that were otherwise vacant. In the 1990s, as downtown Canton became an area of crime and unrest, many businesses started to move out. Hankins reports, “When I moved here four years ago, I was told that Canton‟s downtown had fallen on hard times more than 30 years ago, and most people had stopped going downtown. Indeed, downtowns across this nation have suffered this fate, and most have failed to reinvent themselves,” (Hankins, 2009).
Canton was left with a number of buildings that were for sale for much less than their assessed worth. As a result, the Land Bank bought these properties in hopes that once Canton was back on its feet, they could lease and eventually sell these properties to new businesses to stimulate the economic growth of the area (Gill, 2009). Fortunately, these purchases coincided with the arts explosion. With the aid of ArtsinStark, many local artists were able to acquire these Land Bank properties. One success story involves
Kevin Anderson and his art gallery, Anderson Creative. Previously housed in a small space on 6th Street in downtown, Anderson‟s bought a space from the Land Bank for a 18 fraction of what the asking price would be in the current market. Part of the purchase agreement states that the owner must then foot the bill for the structural and cosmetic upgrades needed to bring the building up to code.
In the case of Anderson‟s, the building was previously used as a restaurant. The building was in poor condition and needed about twelve months of work to turn it into a working studio. Anderson‟s opened their doors for the October, 2009 First Friday with a viewing of pieces of the AIDS Quilt, a well-known memorial to those who have died of
HIV-AIDS. It was the largest show the gallery had ever exhibited and allowed the public to see not only the exhibition, but the progress being made on the renovation of the building as well.
Ultimately, as a result of the partnership between ArtsinStark and the Downtown
Canton Special Improvement District, the official Canton Arts District was created. The
Arts District runs from Market Avenue to McKinley Avenue (three blocks) and from
Tuscarawas Street to Sixth Street (six blocks). Thirty studios, galleries, and other arts- related businesses are open for business and forty pieces of public art are displayed downtown.
The city of Canton is known as the home of the Football Hall of Fame, but Mayor
William J. Healy believes that the downtown area has much to offer. He has said,
The Arts District adds another dimension to the quality of our downtown area,
offering one more reason for people to visit the city. It encourages people to stay
downtown for longer periods of time, benefiting the surrounding restaurants and
businesses. These activities also change the mistaken perception that downtown
19 Canton is unsafe and an undesirable place to be, and encourages young people to
take an interest in their community, (Healy, 2009).
Clearly, in Canton, the arts are more than entertainment. They‟re a vehicle for investment and a tool for economic development. An example of the impact of the arts on
Canton is evidenced by the success of the Canton Museum of Art exhibition “Kimono as
Art.” “Kimono” opened on February 8, 2009 and ran for eleven weeks. The attendance surprised many, but not Hankins. He had predicted months prior that the exhibition and the eighty related events would attract 100,000 people. Ultimately, approximately
102,000 attended, making it one of the most successful cultural events in Northeast Ohio that year. They came from Seattle and Chicago, Illinois and North Carolina, New Jersey and Virginia. One visitor detoured through Canton on her way from Hawaii to Detroit just to see “Kimono.” They all bought gasoline, ate meals, slept at hotels and spent money on other purchases. How much did these visitors help the local economy? Hankins extrapolated a number from his exit interviews with an estimated 1,000 visitors in which he asked point-blank how much they were spending. His final estimate: $5.58 million.
Proof positive, he says, that “you should believe in the power of the arts, (Editorial Staff,
2009).”
Developers also are recognizing the economic advantages of leaping onto the arts bandwagon. Several Canton companies have purchased properties from the Land Bank and renovated housing in the Arts District to create affordable housing for local artists.
This investment in the artist community is especially smart for future migration to downtown. Numerous studies have indicated that the presence of artists enhances the attractiveness of living in an urban setting. Because artists are often early adopters and 20 embrace the challenges and opportunities of a struggling city prior to its revival, their movement into cities may signal to other potential residents that a neighborhood or city core is poised for revitalization, (“From Rust Belt to Artist Belt”). Artists, often unable to afford high housing or living costs, are willing to be urban pioneers, settling in struggling downtowns and viewing these areas as prime opportunities for untapped potential.
Through the many successes of ArtsinStark, Canton has started to emerge again as a thriving city, but it is essential that political leaders continue to support the arts and include them in economic planning. Government and business leaders are wise to consider studies that demonstrate that cities with dynamic arts programs are successful on many fronts, (Boatright, 2008). Fortunately, the people concerned with urban revitalization in Canton, Ohio have wisely taken note of this idea, and they have capitalized on of one of Canton‟s most unique resources to stimulate regional economic growth. Arts-rich cities have thriving entertainment districts, and they tend to become destination points for tourism and regional commerce. Businesses are more likely to locate in areas that have points of interest built around the arts.
Communities across the United States are integrating the arts into their development efforts. Emerging as a viable approach, community development based on the arts is increasingly being recognized as a catalyzing force, (Phillips, 2004).
ArtsinStark has been the major factor in the revitalization of downtown Canton, but maintaining momentum is a challenge. Hankins believes, “We need to demonstrate that the arts are involved in all the major positive changes taking place in the county.
21 People need to stop talking about the arts for arts‟ sake and emphasize arts for community‟s sake” (Hankins, 2009).
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CHAPTER IV
ECONOMIC IMPACT OF THE ARTS IN THE UNITED STATES
Economic impact studies concerning the arts began in the 1980s as a way to quantify its role as an important contributor to local economy. These studies gave the arts a new tool to persuade the American public that the arts were more important than just
“art for art‟s sake” and actually had a measurable impact on communities (Stewart, 115).
One of the earliest studies of its kind was commissioned by the Port Authority of
New York and New Jersey in 1983. A second study conducted ten years later was so convincing that the mayor of New York relocated the Department of Cultural Affairs to the city‟s Economic Development Department. In the most recent of these studies, New
York‟s Alliance for the Arts cites a figure of $21.2 billion in direct economic impact from the arts (Stewart, 114).
Arts and Economic Prosperity III, the study conducted in 2005 by Americans for the Arts, focuses solely on nonprofit arts and culture organizations and their audiences. It excludes spending by individual artists and the for-profit arts and entertainment industry
(“Arts & Economic Prosperity III”). The study featured findings from 116 cities and counties, thirty-five multi-county regions and five entire states. Data was collected from
6,080 nonprofit arts and culture organizations and 94,478 of their attendees across all
23 fifty states and the District of Columbia. The communities are diverse, ranging in population from four thousand to three million. This study uses an economic analysis called input/output to measure economic impact. It is a system that combines statistical methods and economic theory. This method of analysis allows economists to track how many times a dollar is “re-spent” within a local economy and the impact created by each round of spending. The initial expenditures are considered direct impact, and the subsequent rounds of spending are considered indirect impact. The study notes that, “a dollar „ripples‟ very differently through each community, which is why each study region has its own customized economic model” (“Arts & Economic Prosperity III”).
According to the 2005 study, the nonprofit arts and culture industry generates
$166.2 billion in economic activity annually, a twenty-four percent increase over data reported on a similar study done in 2000. That amount is greater than the Gross Domestic
Product of most countries. Of that $166.2 billion, $63.1 billion is directly spent by nonprofit arts organizations, which represents an increase of 18.6 percent since 2000.
24
Figure 4.1 Growth of the Nonprofit Arts & Culture Industry between 2000 and 2005
$103.1 Billion
2005 $63.1 Billion
$80.8 Billion
2000 $53.2 Billion
0 20 40 60 80 100 120
Audience Expenditures Organization Expenditures
Americans for the Arts, 2005, “Arts & Economic Prosperity III”
Further data from the 2005 Arts & Economic Prosperity report indicates that spending by the arts industry supports 5.7 million full-time equivalent jobs in the United
States. This figure includes both direct expenditures by organizations and jobs supported by the spending of their audiences (“Arts & Economic Prosperity III”). Spending by these organizations provides rewarding employment for more than just artists and arts administrators; it directly supports builders, plumbers, accountants, printers and an array of occupations spanning many industries.
25 $103.1 billion is spent a year by arts and culture audiences in event-related activities (an increase of twenty-eight percent over 2000 figures) (“Arts & Economic
Prosperity III”). This spending supports 3.1 million full-time jobs in the U.S., generates
$46.9 billion in household income and $16.4 billion in government revenue. The impact of this infusion of money into the economy is summarized in Figure 4.3.
Figure 4.2 Impact of Nonprofit Arts and Culture Audiences
Total Expenditures $103.1 Billion
Full Time Equivalent Jobs 3.1 Million
Resident Household Income $46.9 Billion
Local Government Revenue $5.1 Billion
State Government Revenue $5.6 Billion
Federal Government Revenue $5.7 Billion
Americans for the Arts, 2005, “Arts & Economic Prosperity III”
Nationally, the typical arts attendee spends an average of $27.79, per person, per event on these related activities. The following graph illustrates the breakdown of that spending.
26 Figure 4.3 Breakdown of Income Generated by Arts Attendees Based on 2005 Data
Gifts/Souvenirs, $3.90
Meals/ Lodging, $5.01 Refreshments, $13
Child Care, $0.34 Other, Transportation, $2.82 $2.72
Americans for the Arts, 2005, “Arts & Economic Prosperity III”
The arts and culture industry generates nearly $30 billion in revenue to local, state and federal governments every year. That money is accumulated through income taxes collected from arts-based business employees. By comparison, those three levels of government collectively spend less than $4 billion annually to support the arts and culture industry. That is a 7:1 return on investment (“Arts & Economic Prosperity III”).
Despite these encouraging figures, Public Policy Professor Ruth Ann Stewart of
NYU cautions arts advocates not to rely solely on the economic data collected in studies, but to “emphasize the qualitative values unique to the creative process,” (Stewart, 115).
“Relieved of weighty economic expectations and appropriately embedded in a larger strategic vision, the arts can play a central role in a city‟s revitalization plan,” (Stewart,
115).
27 Although most of the data on the direct economic impact of the arts is from 2005,
Americans for the Arts gives strong evidence to support the importance of the arts. Since that information was gathered before the recession hit the U.S., it will be interesting to see how the economy has impacted economic impact of the arts since the last study.
28
CHAPTER V
COMMUNITY BASED ARTS SUPPORT AND ITS IMPORTANCE
Examples of the Growth of Arts-Based Strategy
Senator Edward Kennedy, a champion in the Senate for Urban Development
(“History of Fair Housing”) and a lifetime advocate of the arts, believed in what the arts could do for cities in America. According to his website, Kennedy believed that the arts were “essential to preserving the strong cultural traditions” of America (“Arts: A
Lifetime of Service”).
The arts benefit communities as well as individuals. Cities and towns with
flourishing cultural activities attract business and tourists and provide tremendous
incentives for families. There are wonderful models…across the country of
communities that have integrated cultural institutions into revitalization efforts.
They have strengthened their economies and greatly improved quality of life in
their neighborhoods, (“Arts & Economic Prosperity III”).
Cities such as Philadelphia, PA, Charleston, SC, and Newark, NJ have used the creation of arts districts as centerpieces in efforts to combat increasing crime and suburban flight by restoring vitality to downtown areas (“The Role of the Arts in
Economic Development”). “Newark, NJ, which suffered devastating urban riots in the 29 1960s and subsequent decades of misfortune, is undergoing an unprecedented revitalization after becoming the home of the seventh largest arts center in the country, the New Jersey Performing Arts Center,” (“The Role of the Arts in Economic
Development”).
Small towns also have a great opportunity for renewal and revitalization when investing in the arts. Many small art towns have capitalized on the increased demand for arts facilities and services and ways to restore historic buildings and adapting their reuse for arts activities. For example, in the University of North Carolina‟s School of
Government article “Small Towns, Big Ideas” tells the story of Nelsonville, Ohio. In
2001 Nelsonville commercial space occupancy rate was twenty-five percent. At that time local government began subsidizing rental of storefronts for arts based businesses. In exchange for rent support, artists were required to invest “sweat equity” to rehabilitate storefront spaces. As a result of creative people moving into what had been a deserted urban center between 2001 and 2006, the downtown square went from an empty run- down area to a vibrant haven for artists. Historic architecture was restored to former glory, and residents of Nelsonville began to see and contribute to the liveliness of their town. (“Small Towns, Big Ideas”).
Nelsonville‟s community renewal strategy was not stimulated by government officials. The city council was actually firmly against this type of investment, preferring to focus on industrial recruitment. The financial means to make this strategy work came from Hocking College, private donations, and a small grant from the Ohio Arts Council.
This example shows that artists can reinvigorate a dilapidated downtown, help attract
30 tourists to a small town, and that a small group of committed residents can jumpstart development.
Artists have a positive economic impact on the communities in which they live by contributing to a community‟s economic base as they engage in work across the public, private, and non-profit sectors. As small-business owners and entrepreneurs, artists generate tax revenue and have the ability to export their work to the broader local, regional, national, and global markets, thereby importing dollars to their communities.
Many examples have shown that increasing the proportion of artists in a neighborhood can lead to a rise in property values. For example, the Hampden neighborhood near John Hopkins University in Baltimore has undergone revitalization since its steel mills were shut down in the 1980s. Artists have recently discovered the area and moved in, opening art galleries and boutiques and organizing arts festivals. In
2000, the median home-sale price in southeastern Hampden was $58,000. In 2005, that value increased 196 percent to $171,750 (Winnie).
While this evidence indicates that the presence of artists in communities can positively influence property rates, it also can become so expensive that the artists are forced to move from the neighborhood that they work hard to reestablish. Gentrification is the displacement of low to middle income families from an area due to increased rental rates, house prices and property taxes (Wikipedia.org). Gentrification can happen in this instance when capitol follows artists into an area and the commodification of culture occurs. This tends to then displace the original artists as developers take interest in a growing locale (Cameron & Coaffee).
31 One example of the gentrification of artists is Boston‟s Fort Point Channel
Neighborhood, the largest artist community in New England. As developers are moving in to convert studio space into condominiums, a group of local artists are taking a stand through their art using their work to “protest the loss of hundreds of studios in the old
Fort Point warehouses,” (Lydon). A June 2008 installation created by area artists took twenty-five of the worn windows and painted, etched, hammered, glued and sprayed them. Many of the resulting pieces mourn the exodus of artists from the neighborhood
(Lydon). “They're marketing the neighborhood as a place where there's a funky, thriving arts community,” said Michael J. Tyrrell, an architect, artist, and one of the organizers of the "Windows onto Fort Point.” “Yet they're not being as aggressive as they need to be to create strategies that maintain this community," (Lydon).
At the heart of the creative economy are individual artists who are well-connected to the communities in which they live. Giving these artists entrepreneurial opportunities opens up many economic development possibilities (“Arts and the Economy”).
Federal Funding
On January 26, 2011 President Barack Obama announced in his State of the
Union address that there would be severe federal spending cuts in the near future. Later that week, 165 conservative members of Congress called for the termination of the
National Endowment for the Arts (NEA), the National Endowment for the Humanities, and arts education programs at the U.S. Department of Education (“Arts and the State of the Union”). The Republic Study Committee, a group of fiscal conservatives, also called
32 for the end of the Corporation for Public Broadcasting. This proposal is part of the
Spending Reduction Act of 2011, which is designed to reduce federal spending by $2.5 trillion over ten years (Pogrebin).
Robert Lynch, President of Americans for the Arts, made a statement following the announcement that highlighted the significant economic impact of the arts on the U.S. economy. “If they‟re serious about jobs and they‟re serious about income, they would invest more in the arts,” Lynch said (Pogrebin). Following the initial news that deep cuts were coming for the arts, Americans for the Arts launched a campaign to educate the
American public on the importance of the arts to not just the economy, but the American people themselves. The website is packed with evidence to support the continuation of federal funding including letters to send to elected officials and constant updates on the state of the struggle to keep the cuts to a minimum (“Americans for the Arts News”).
After the original announcement by the Republican Study Committee, the House
Appropriations Committee proposed a mid-year budget cut for many federally funded programs. These cuts would seriously affect the arts. The original proposal was set to cut the NEA budget from $167 million per year to $155 million per year. That number dropped as February went on. On February 11, 2011, the number plunged to $145 million and by February 15 the number was $124 million. These cuts represent the deepest cuts to the NEA budget in sixteen years (“Americans for the Arts News”). On February 15,
2011, two amendments were introduced to Congress regarding cuts to the budget of the
NEA. One was the $124 million figure and the second, submitted by Representative Scott
Garrett (R-NJ) would eliminate funding for the NEA completely (“House Amendments
Threaten NEA Funding”). 33 March 3, 2011 marked the first actual decision made by Congress that affected federal arts funding. Among the programs in line for cuts is the total removal of funding for the Department of Education‟s $40 million Arts in Education program. This program finances a large number of arts education actions across in the country, including the
Kennedy Center‟s arts education endeavors and Very Special Arts, the international organization on arts and disability (“Arts Education Funding Cut in Two-Week Budget
Fix”). To put this figure in perspective, it should be noted that the Department of Defense spends $3.2 billion per day, (“FY 2010 DoD Agencywide Agency Financial Report").
While the federal government reconsiders its role in the funding of arts in the
U.S., it is more important than ever for local governments to realize the importance of the arts in their communities. Professor Ann Makusen of the Humphrey Institute of Public
Affairs says that arts organizations need increased financial support. She says that typically local governments and other funding agencies (such as foundations) get more excited about high-profile projects than supporting smaller arts endeavors.
There is still support in Congress for federally funded arts programs. One supporter is Congresswoman Louise Slaughter (D-NY), who is also the Co-Chair of the
Congressional Arts Caucus. Congresswoman Slaughter has stated that,
Across America, cities that once struggled economically are reinventing and
rebuilding themselves by investing in art and culture. Both are proven catalysts
for growth and economic prosperity. By creating cultural hubs, nonprofit art
businesses help cities define themselves, draw tourists and attract investment.
Federal support for America‟s nonprofit cultural organizations must go on if we
34 hope to continue enjoying the substantial benefits they bring (“Arts and Prosperity
III”).
Travis Korte from the online newspaper The Huffington Post says that “the sort of
[artistic] projects that actually drive tourism and innovation are usually self sufficient… and the programs that subsist on grants are unlikely to make a broad economic impact.”
He goes on to say that “saying that we should abandon national arts funding is not the same as saying we should abandon the arts,” (Obama‟s Arts Budget Cuts Address
National Endowment‟s Weakness”).
In recent years it has been the practice of the NEA to distribute funds to state agencies for re-granting. Because of this process, most U.S. nonprofit arts organizations would not be severely affected if the NEA budgets would see cuts.
The debate over arts funding continues and at the time of the completion of this thesis no resolution was reached. There is support for and against the continuation of the
NEA. The important fact is that with the future of federal arts funding in jeopardy, community based arts support is more important than ever to ensure the continuation of important arts programs across the U.S.
35
CHAPTER VI
SUGGESTIONS TO COMMUNITIES LOOKING TO IMPLEMENT ARTS-BASED
COMMUNITY DEVELOPMENT PROGRAMS
Communities face many challenges when considering involving art-based strategies in economic development plans. Many cities and towns across the US are home to artists, but it is not enough for a city to simply be tolerant of the “creative class” for its effect on redefining and revitalizing a community to be maximized. There are many motivations for actively supporting the development of an arts and culture district in declining down-town areas. These range from contributing to a ground-breaking business sector to community revitalization.
States can help localities incorporate the arts into development strategy through both direct financial support and technical assistance or training. One example is Utah‟s
Creative Communities Initiative where grants were awarded to communities to support the creation of connections among the arts, community building, civic engagement, and community planning. Project organizers received leadership instruction to help them use the state‟s support to influence additional funding and community buy-in (“Arts & the
Economy”).
36 The Creative Communities Initiative was funded by the Utah State Legislature for
2006 and 2007. In the two years, $95,000 in grants were awarded and the program saw a
$380,000 return on the investment and created fifty-five civic and business partnerships to develop the granted projects (Utah Arts Council). Community Development Manager of the Utah Arts Council Anna Boulton stated that while the return on investment was substantial, economic influences caused the funding to be cut to the program. She is hopeful that the program will resume sometime in the near future if a proposed arts tax is passed in the Utah Legislature (Boulton, 2011).
Another strategy states can employ is designating “arts districts” or “creative communities.” The creation of these districts has been shown to promote local efforts to draw residents and tourists to a specific area and concentrates state resources in areas where local communities are prepared to take on considerable cultural improvement work to achieve positive economic outcomes (“Arts & the Economy”).
It is also becoming more common for state and local governments to give tax incentives to encourage the establishment and arts-based and non arts-based small businesses. In Maryland, certified arts districts are eligible to receive property tax credits for construction of arts-related spaces, exemptions from the state‟s amusement and entertainment tax, and income tax deductions for artistic work sold by artists residing within the district. In return, the districts draw positive attention which attracts business, stimulates cultural development, and fosters civic pride. Maryland‟s Arts and
Entertainment Districts have seen increases in retail occupancy rates, property value and tourism (“Arts & the Economy”).
37 While arts and culture districts may survive without direct support from local municipalities, the use of arts-based strategies gives local leaders tools to solve economic development challenges which more traditional policy instruments have returned unsatisfactory results (“The Role of the Arts in Economic Development”). For most communities, arts-based strategies will not be the primary economic development tool, but they may provide an important piece to a very complex puzzle. In cities where traditional approaches have been unsuccessful, active engagement with the arts community may make all the difference.
Support for this idea comes from a report generated by the National Governor‟s
Association Center regarding best practices. The report states that arts-based economic development strategies afford local leaders the ability to be flexible when it comes to planning. It goes on to suggest several strategies that these leaders can pursue. These include the following:
Encourage collaboration among the business community, state arts
agencies, economic development, tourism and education departments to
create a more integrated approach to public investments.
Evaluate and nurture culturally based industries indigenous to the state,
especially areas or regions that have difficulty sustaining imported
businesses due to lack of infrastructure or other factors.
Focus on changing regional and community images by capitalizing on the
design of more people-friendly sites that encourage foot traffic and
increased retail commercial ventures.
38 Where vibrant technology economies exist, use the arts to continually
improve quality of life and the creativity of the business environment—
recognizing the needs of the present workforce as well as helping to attract
new knowledge workers.
Work to eliminate stereotypical views of the arts and introduce them as a
tool for a state‟s economic development plans by highlighting their
contributions to the state and regional economies.
Stay informed of innovation concerning the arts on the local level. Future
policy initiatives can be consistent with what is already occurring in
communities—strengthening current initiatives while building on them—
thereby creating a win-win situation for the state and its constituencies
(“The Role of the Arts in Economic Development”).
Taking this theory one step further are a series of considerations suggested by Dr.
Rhonda Phillips, author of "Artful Business: Using the Arts for Community Economic
Development," to communities thinking of using the arts in community development.
There must be a general support of the arts. Citizens and local politicians must
realize what a vibrant arts community can mean to the vitality of a community. In
this instance, artists should consider participatory approaches to help build further
support.
Artists and community advocates should seek out untapped resources. Local
governments may have more resources than direct funding that can help with the
creation and support of arts-based businesses. An example of this opportunity
39 may be rent free or low cost facilities owned by local municipalities that could be
extended to artists. Government led efforts have also catalyzed private
development interest in the adaptive reuse of urban structures to create cultural
spaces.
Integrating support with community development benefits. The community
should attempt to link benefits with artistic activities. This demonstrates openness
to the community at large and allows art phobic people the opportunity to see how
the arts are a vital piece of the community. Examples include after school
programming, public art installations and arts festivals.
Artists need to maximize resources through community sharing. Small business
artists need to consider the centralization of facilities and resources as a viable
option. Sharing means reduced costs for all involved.
Because there are so many different kinds of artists, a flexible approach to arts
support is important. Different artists have different strengths when it comes to
business management, marketing or finances. Successful arts-based development
programs are able to respond to these types of artists on an individual basis.
It is clear that across the United States cities are seeing economic returns on investments made in the arts. By learning from other successful initiatives, communities will be able to implement an arts-based economic strategy.
40
CHAPTER VII
CONCLUSION
The research on the subject of the role of the arts in economic development is extensive, yet our elected representatives and business leaders have been slow make serious financial commitments to arts-based economic development. There seems to be a mistaken perception that in areas where communities have supported arts and culture as an integral part of financial planning, it has not been done at the expense of local economic development; it has occurred as a reasonable component in a strategic investment plan.
In 2011 the country expects severe budget cuts at every level, making it more important than ever that local communities find the most cost effective ways to sustain economic vitality. Evidence has shown that it may be irresponsible not to explore the effect of a vibrant arts and culture community in making urban centers “livable” as well as economically viable. The Canton Arts District and many other cities examined in this thesis are encouraging examples of what can happen when an arts-based community development strategy is put in place. Tourism increases, jobs are created, and communities are reinvigorated.
It is an ideal time for America to take advantage of an under-utilized resource and fully understand the potential that already exists. 41
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