Seattle Business Magazine Article

as featured in

Gatesto the

CityThe once-reclusive Gates Foundation gets a new home and makes a larger impact on the local community and economy.

By Sally James Photograph by Lara Swimmer

SB september 2010 Reprinted with permission of Seattle Business Magazine. ©2010, all rights reserved. Any reproduction of this document is strictly prohibited. For reprints call 612.787.3148. Reprinted with permission of Seattle Business Magazine. ©2010, all rights reserved. Any reproduction of this document is strictly prohibited. For reprints call 612.787.3148. he new headquarters of the Bill “There's an opportunity to put our & Melinda Gates Foundation does shoulder to the wheel and grow the Tnot trumpet its own importance. And the low-slung buildings that sweep awareness of our city and be giant arms near the foot of the Space the best.” —Bob Aylward, executive vice president for Needle don’t reveal the intensity and dynamism of the largest private founda- business operations, Seattle Mariners tion in the world. But the sheer size of the campus—it cov- quence, the foundation’s astronomic lev- and experts will convene in these confer- ers several blocks—the innovative sustain- els of donation and collaboration already ence rooms to discuss wiping out malaria able design and its strategic position in the carry the city along in its wake, lifting other or inequality for women, and to make heart of the city hint at the foundation’s philanthropies and researchers and some decisions that will resonate for decades. importance to the region. The foundation profitable companies to new heights. The The new headquarters will help to enrich drives new thinking about global problems vastness of its mission is matched by the the fabric of Seattle’s civic life. Foundation from health care and education to agricul- scope of its reach. It influences politics and staff, who may number about 1,200 by the ture and finance. With an annual $3 billion policy on every continent. time the doors open, are a talent pool of al- budget that rivals that of some nations, it The approach has already had impor- truistic and dedicated high achievers, hand- allies with governments, billionaires, uni- tant local outcomes, leading to the estab- picked from among the brightest minds in versities and international organizations lishment, for example, of new institutions the country. with the brave goals of eliminating disease, such as the Institute for Health Metrics and Many are already active in the community. reducing poverty, tackling gender inequal- Evaluation, which is affiliated with the Uni- Jeff Raikes, the CEO of the Gates Founda- ity and improving literacy. versity of Washington. The IHME is gov- tion, is the former president of Microsoft’s When the campus opens in spring 2011 erned by an international board, including Business Division and he co-chaired with his —at a cost of $500 million for just the first leaders from many continents, and aims to wife the annual giving campaign for United phase of construction—it will tie Seattle to help measure progress around the world to- Way of King County in 2006. But with the these global ambitions. Just as Microsoft ward global health. new campus, many more staff members permanently branded Seattle as a software This campus also marks a major new may choose roles in the city’s schools, the- city, the foundation may make the city syn- commitment to this city, and will unveil aters, charities and other causes. onymous with global health and develop- a new stage for events. The foundation In a similar way, the campus may also draw ment. Many leaders certainly hope so. chose local architect Steve McConnell at the foundation more deeply into transporta- While it may be an unintended conse- NBBJ to build its home. World leaders tion and other civic disputes. Several of the loudest city arguments of recent years are as- The Bill & Melinda Gates Foundation has sociated with the financially struggling Seattle mostly shunned the spotlight even as it grew Center, which needs renovation, and trans- into a giant of global philanthropy. portation projects such as the Highway 99 viaduct and the redesign of Mercer Street. Whatever happens, these modest buildings and central courtyards will become the iconic symbol for this family foundation that once labored quietly in the background

and shunned the spotlight. J B B N An Economic Boost As slow job growth lingers, city leaders see the global health sector—including

both nonprofit organizations and for-profit elinda gates foundation M businesses—as a remarkably healthy strategic part of the city’s economy. Those leaders seek to capitalize on Seattle’s image as a place that knows how to do business in overseas markets. Here is a place with thousands of sophisticated workers who don’t bat an eyelash phoning Beijing or Burkina Faso. Beyond the purely economic desires for jobs or investment, some city leaders see courtesy of the bill & melinda gates foundation/ image courtesy of the bill & an opportunity to embrace altruism itself.

Bob Aylward, who is executive vice presi- open to the whole world is a lure, he says. dent for business operations for the Seattle The Gates campus could become “an icon Gates Foundation Facts Mariners baseball team, has become a pas- like the Space Needle for global health,” Ri- Co-chairs: Bill Gates, Melinda French sionate cheerleader of Seattle’s brand as an vera adds. Just as many satellite and spinoff Gates, William H. Gates Sr. epicenter for global health and development. companies grew up around the Microsoft CEO: Jeff Raikes He views promoting that brand as good for campus in Redmond, he imagines similar Trustee: Warren Buffett the region and the world, even though he satellites orbiting the Gates campus. Already, Endowment: $35.2 billion acknowledges it sounds a bit “holier than there are a number of global health organi- (as of March 31, 2010) thou.” Aylward is one of a handful of lead- zations, from PATH to Seattle Biomed, 2009 grant payments: $3 billion ers who have joined a project to link the located in the same South Lake Union Total grant commitments to date: global health sector to the 50th-anniversary neighborhood. Many work closely with the $22 billion celebration of the 1962 Seattle World’s Fair foundation. Some receive substantial sup- Headquarters: Seattle in 2012. The group hopes to lure important port. PATH, which recently moved into of- Other offices: Washington, D.C., New Delhi, Beijing, London global health conferences to the region and fices a stone’s throw away, has received, over to develop other activities that focus local the years, more than $1 billion from the and national attention on the Northwest’s Gates Foundation. plus an additional 43,000 jobs supported many strengths. Besides the obvious influences of payrolls, indirectly by the industry. “There’s an opportunity to put our it is tricky to calculate the impact of the Governor Chris Gregoire also has rec- shoulder to the wheel and grow the aware- foundation’s growing presence. Sometimes, ognized the importance of the industry to ness of our city and be the best,” he says. the ripples it makes help research that swells Washington state, pointing out at a recent His committee, Global Health Nexus, the ranks of other health and life science or- symposium sponsored by the Washington

J is working in concert with the Washing- ganizations. Global Health Alliance that improvements B B

N ton Global Health Alliance, an advocacy Too, an individual may be a big influence. in global health create better conditions for organization designed to help its members One example is Dr. David Fleming, who trade. “Our success depends on the health collaborate on projects and goals. Building came to the foundation to work and later of our trading partners,” she said. a regional brand around global health, he became the Seattle-King County director At a recent forum sponsored by the says, could attract talent and capital. of public health. Fleming is working with WBBA, the Global Health Nexus and the “A lot of big companies are formally Swedish Medical Center on a project to city, one businesswoman was delighted creating global health divisions within the bring some ideas from the global arena back to hand out her cards and hope for new company,” says Chris Rivera, director of the down to gritty local problems for under- clients. Debbie Read, owner of Erg- Washington Biomedical & Biotechnology served populations in south King County. oFit Consulting, has just two employees Association (WBBA). Getting these giants A 2007 analysis titled “Economic Impact including herself. But she’s ready to grow. to put an office here could bring jobs and Assessment of Global Health on Washing- She advises biomedical companies on investment. While they may operate mostly ton State’s Economy,” written by a team worker safety and comfort, and hopes to in the for-profit world, they might expand at the University of Washington, counted find more employees in the South Lake in places like India and China, the so-called about 14,000 direct jobs in global health, Union neighborhood. courtesy of the bill & melinda gates foundation/ emerging markets. Seattle’s brand as a place with an average annual salary of $56,000, One company that straddles the profit

Gl bal Health Nexus Washington state, and the Seattle area in particular, is becoming a world center for global health philanthropy, research, business and advocacy. Here is a sampling of some of the organizations that have set up shop in our area.

HEALTH ALLIANCE INTERNATIONAL

GLOBAL WASHINGTON

UW DEPARTMENT OF BIOENGINEERING

Fremont U DistrictDis INSTITUTE FOR UW SCHOOL OF PUBLIC HEALTH/ SYSTEMS BIOLOGY UW SCHOOL OF MEDICINE

FRED HUTCHINSON CANCER RESEARCH CENTER Lake Union WASHINGTON BIOTECHNOLOGY AND BIOMEDICAL ASSOCIATION

Queen Anne SEATTLE BIOMEDICAL RESEARCH INSTITUTE BILL AND MELINDA GATES FOUNDATION (SPRING 2011) Capitol Hill

PATH SIGHTLIFE a m i lt o n H

INSTITUTE FOR HEALTH GLOBAL ALLIANCE FOR THE PREVENTION METRICS AND EVALUATION OF PREMATURITY AND STILLBIRTH Downtown

WASHINGTON GLOBAL INFECTIOUS DISEASE RESEARCH INSTITUTE HEALTH ALLIANCE Central District

SEATTLE CHILDREN’S HOSPITAL elinda gates foundation/Karie RESEARCH INSTITUTE M UW DEPARTMENT OF GLOBAL HEALTH Elliott Bay Pioneer Square image courtesy of the bill & c r e d i t

32 SB september 2010 Reprinted with permission of Seattle Business Magazine. ©2010, all rights reserved. Any reproduction of this document is strictly prohibited. For reprints call 612.787.3148. The Gates Foundation has invested $3 billion to date in initiatives in Washington state, such and nonprofit worlds is device manufac- as the Ready By Five turer Micronics Inc. of Redmond. It spe- early education program. cializes in fast-reading diagnostic tools that some call a laboratory on a chip. The Gates Foundation gave the company grants to develop just such a technology to per- form diagnoses in rural areas of developing countries, but Micronics CEO Karen Hedine told an audience in Seattle that the technology’s rapid results will likely ap- peal to consumers in the United States and Europe as well. The firm is already selling products that provide nearly instant blood typing results. Hedine points to another advantage for businesses that straddle the worlds of profit and nonprofit. Investors increasingly want “We want to be a part of this to see good works done by firms they sup- community, of this world. We do not port. Such companies also find it easier to attract talented employees. Indeed, wheth- want to sit up on a hilltop or way er it is in health, education or agriculture, out in the suburbs where people can’t the Gates Foundation is playing a key role in promoting the fundamental living reach us.” —Melinda French Gates standards that people need to thrive. That in pursuit of certain goals. Others caution Critics have argued that the immense emphasis helps expand a global market on that it needs to remain nimble and in- power of the foundation makes it particu- which a trade-dependent Washington state novative, and would hate to see maturity larly important that its policies be closely relies for its economy. make it less willing to take risks. However scrutinized by the outside world. And Some use the phrase “compassion cor- it manages its metaphorical teen years, the Choe is promising greater transparency. ridor” for the combination of global foundation’s debut on a new footprint is an The foundation recently began making health and development leaders rooted in opportunity to reach out and embrace the more extensive use of social networking the Seattle metro area. Besides the global local community. tools and has made its strategies available health organizations, there are several mi- From her existing modest office on East- to the public on its website. The notion crofinance and socially themed investment lake Avenue, in a building unmarked with of transparency was a guiding principle in groups here. a sign or or any other indication of the the design of the campus buildings, which foundation’s presence, she notes that this included the decision not to have a single, A New Face former check-processing center once hum- impenetrable office tower, but instead Long known for being camera shy, bly housed all of the foundation’s then-160 to construct multiple buildings you can

a m i lt o n the Gates Foundation frequently pushes its employees. see between, enormous curtains of glass H grantees ahead of itself in publicity and in- Until they are united on the new campus, along certain walls facing city streets, and a terviews. It will now be far more visible to the foundation’s roughly 900 current staff visitor center. the public as a result of its new headquar- members are scattered among five separate “We want to be a part of this community, ters, whose design invites visitors in, says buildings. They have to take shuttles to of this world. We do not want to sit up on a Martha Choe, the foundation’s chief ad- meetings. Choe and others look forward to hilltop or way out in the suburbs where peo- ministrative officer. She freely admits that being on the new campus, where the build- ple can’t reach us,” Melinda French Gates by not seeking publicity “we’ve created an ings are designed to foster serendipity and said at the groundbreaking for the campus. unintentional aura” of reticence. The logic conversation on the main stairway or in the behind that approach is that those who re- atrium, where all the employees who drive MORE Global Health- elinda gates foundation/Karieceive funding should be in the forefront, will emerge from the underground parking M related Companies while the foundation should hang back. lot up to the campus. (outside of map area) Choe, whose responsibility includes the The public’s awareness of the foundation • Sonosite Inc., Bothell new campus, is now asking, “How do we has been limited by this lack of a visible (portable ultrasound equipment) leverage that?” The foundation, founded physical face, Choe says. What began as a • Micronics Inc., Redmond in 1994, is still young. If its first decade way for Bill and Melinda Gates to direct (diagnostics) is roughly a childhood, then it verges on their personal wealth has grown, especially • HaloSource Inc., Bothell adolescence now, Choe says. since the near-doubling of resources when (water purification equipment) Some critics in the past have accused the Warren Buffet pledged his fortune in 2006. • Cascade Designs, Seattle foundation of being too fast to embrace The foundation’s endowment is worth (water purification equipment) image courtesy ofthe the bill &newest ideas, and perhaps headstrong about $33.5 billion.

Reprinted with permission of Seattle Business Magazine. ©2010, all rights reserved. september 2010 SB Any reproduction of this document is strictly prohibited. For reprints call 612.787.3148. RAINWATER STORAGE TANK ATRIUM stores 1.2 million gallons of rainwater for use features a central gathering space, designed in water features, toilets and irrigation. to encourage mingling, with radiant heat and passive ventilation.

NARROW BUILDINGS large, highly engineered windows provide excep- tional daylight and views for much of the building while conserving energy.

FUTURE VISITOR CENTER provides the public an opportunity to explore the work of the foundation’s grantees and partners.

PUBLIC SPACE the top level of the garage can be cordoned off and used for alternative uses, such as a farmers market, a staging area for fun runs (the seattle marathon has started at the intersection next to the public plaza for many years), car shows, ﬂ ea markets or an additional venue for festivals at seattle center.

SB september 2010 Reprinted with permission of Seattle Business Magazine. ©2010, all rights reserved. Any reproduction of this document is strictly prohibited. For reprints call 612.787.3148. ADDITIONAL SPACE The interactive museum-style visitor the campus’ third building will center will help the foundation explain it- be built in the future as the need for more space arises. self to the public by showcasing issues it is tackling and inspiring visitors to do the same.

local roots GATES FOUNDATION SOME OF THAT EXPlAINING in the visitor center will help focus attention on the HEADQUARTERS work done by the foundation here at home. the campus showcases green and While well known for its global programs, community-building features. the organization’s local impact is unfamil- iar to many people. Now, there are efforts to remedy that picture. For example, one recent brochure shows both images of Af- rican villages and a once-homeless Seattle mother and two children living in transi- tional housing. The foundation has hired employees THERMAL ENERGY STORAGE with local pedigrees. Choe, the chief ad- a water chiller runs at night to keep energy ministrator, is a former Seattle city coun- consumption to a minimum during peak hours. cilwoman and banker, who continues to the stored chilled water can be used during volunteer at the Seattle Foundation and the daytime for cooling. the Seattle Chamber of Commerce. David Bley, the director of the foundation’s Pacif- ic Northwest Initiative, has worked on af- fordable housing for many years, including under former Seattle Mayor Norm Rice. “The renewed commitment [of the foundation] to … locating itself in the heart of the city implies a continued commitment to schools and community problems,” says Bley. In 2009, the foundation donated more than $86 million to initiatives within LANDSCAPING Washington, making it by far the state’s plantings throughout the campus largest private contributor. The bulk of feature native, non-invasive, that funding went to four areas: support for drought-tolerant plants. homeless families, early learning for children, promoting vocational and college education, and emerging community needs. The same strategic collaboration that is a hallmark of international efforts has also been promising in the continued work on homelessness in Washington state. The Gates Foundation is the largest private donor to the Washington Families Fund (WFF), a GREEN ROOFS unique public-private partnership created a 1.4-acre living roof on the seattle center/fifth avenue by the state legislature, which is develop- north parking garage, plus more than an acre of living ing long-term support services for families roofs throughout the campus, ﬁ lters rainwater, insulates across the state. By January of this year, the buildings, provides natural habitat and reduces the heat fund had awarded a total of $16 million to island effect. 43 programs statewide. The foundation estimates that over the life of the current grants, the WFF programs will serve 12,000 children and parents. The foundation estimates it will grant up to $60 million more to WFF courtesy of nbbJ courtesy over the next six years.

While the philanthropy here pales in Chief Administrative Officer Martha Choe says the comparison to the foundation’s work over- Gates Foundation created seas, it represents a significant sum in local an aura of reticence. terms. And it offers Washington state, already heavily dependent on trade, important ties to emerging markets. The Trade Development Alliance of Greater Seattle and the African Ameri- can Chamber of Commerce were able to persuade Amina S. Alia, African Union ambassador to the United States, to visit Seattle last year in large part because of the presence of the Gates Foundation. “They were part of our pitch,” says Sam Kaplan, vice president for the alliance. Now, the African Union is con- sidering a larger event next spring that would bring to Seattle ministers from a variety of African countries. “The most important thing in trade is relationships. Once you get important government we can think of it in terms of self-interest.” officials to come, they also help build com- Once before in America’s history, the epic mercial interests.” project to rebuild war-torn Europe after Echoing this combination of commerce World War II brought unexpected eco- and good works, Tachi Yamada, president nomic benefit to the U.S. What was called of the Gates Foundation’s Global Health the Marshall Plan brought Europe back to

Program, told an audience recently at the its feet, and in doing so, built a massive new J B B

University of Michigan’s Stephen M. Ross market for American companies. N School of Business: “The real market oppor- Perhaps the Bill & Melinda Gates Foun- tunity for stable industries throughout the dation, with its battle against poverty and i r h a r t /

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The first two office buildings v a n s ;

on the Gates Foundation’s E new campus are slated to

open in the spring of 2011. a v i d D elinda gates foundation (2): top/ M courtesy of the bill &