Arts in the Loop” Economic Impact Study
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ARTS IN THE LOOP ARTS IN THE LOOP ARTSECONOMIC IN THE IMPACT LOOP STUDY ECONOMIC IMPACTECONOMIC 2019STUDY REVISION IMPACT STUDY LOOPCHICAGO.COM Front Cover Image Credits: Grant Wood. American Gothic (detail), 1930. The Art Institute of Chicago, Friends of American Art Collec- Back Cover Image Credits: Adam Alexander for Chicago Loop Alliance STUDY BOUNDARY MAP APPENDIX C DEAR FELLOW ARTS ADVOCATES One year ago, Chicago Loop Alliance released its Arts in the Loop Economic Impact Study, sharing for the first time hard numbers on the impact the Loop’s arts and culture sector has on the downtown, the city, and the state of Illinois. The findings—the sector’s annual impact of $2.25 billion—have changed the way we are able to talk, fundraise, and advocate for the arts. I am thrilled to see the release of this new version of the report, featuring clarified and visualized explanations of our data. As Chicago Loop Alliance’s immediate past board chair, I am so proud of this project. It is the duty of a downtown management organization like ours to bring people together and share information across sectors. Because Chicago Loop Alliance undertook this report, the results were shared not only with those in the arts community, but with those in real estate, retail, education, hospitality, and beyond. In my role as Chief Development Officer for the Auditorium Theatre, I have used the Arts in the Loop report to secure important corporate sponsorships and augment grant applications, providing crucial numbers and evidencing the economic impact of the arts. In roles like mine, it is important to be able to talk hard numbers and actual impact. But beyond just the financial impact, it is also critical to remember that the arts have an even broader reach. They bring people together and expand our worldview. They create the kind of beautiful environment we all want to experience in Chicago. I’ve spent my career talking about this side of the arts, the side that is harder to measure with numbers but that is no less important. By talking about this broader impact that the arts can have, combined with the tangible numbers provided by this report, I am able to paint a fuller picture of why the arts matter. Judie Moore Green Chief Development Officer, Auditorium Theatre Chicago Loop Alliance Board Member KEY FACTS ABOUT THE PERFORMING ARTS IN THE LOOP: $$ 11 34,500+ $90M $233M 5,934 major seats to view spent by spent by full time performing arts performances visitors on performing arts equivalent jobs venues tickets and institutions on in the Loop admissions operations TABLE OF CONTENTS EXECUTIVE SUMMARY 1 STUDY PARTNERS & CREDIT 10 THE EVOLUTION OF ARTS IN THE LOOP 11 THE LOOP BELONGS TO EVERYONE 17 YOUNG ARTISTS IN THE LOOP 19 DETERMINING THE ECONOMIC IMPACT 21 APPENDIX 38 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 STUDY PARTNERS & CREDIT 10 THE EVOLUTION OF ARTS IN THE LOOP 11 THE LOOP BELONGS TO EVERYONE 17 YOUNG ARTISTS IN THE LOOP 19 DETERMINING THE ECONOMIC IMPACT 21 APPENDIX 3038 PURPOSE As part of CLA’s efforts to promote economic development and provide services that benefit businesses, individuals and stakeholders within the Loop, CLA seeks to help its members gain a deeper understanding of the INTRODUCTION impact the large collection of arts and cultural assets in the area have This is a report commissioned by Chicago Loop on the Loop economy. Alliance, a downtown management organization with the mission to create, manage and promote high-performing urban experiences, attracting The results of this study will be people and investment to the Loop. Together used to enhance the CLA brand with an engaged set of Loop arts organizations, and marketing narrative, provide a taskforce was formed to work with professional case-making data to Loop arts consultants ArtsMarket, Inc., and HR&A Advisors and cultural organizations that to better understand the economic impact of the will improve their position when arts in the Loop. advocating for public- and private- sector support and reposition arts and cultural organizations as economic drivers in the Loop and the City of Chicago. The information will also be useful to other Chicago economic development organizations, like Choose Chicago, World Business Chicago and the City of Chicago Department of Cultural Affairs and Special Events. 1 | CHICAGO LOOP ALLIANCE ARTS IN THE LOOP ECONOMIC IMPACT STUDY | 2 PURPOSE As part of CLA’s efforts to promote economic development and provide services that benefit businesses, individuals and stakeholders within the Loop, CLA seeks to help its members gain a deeper understanding of the INTRODUCTION impact the large collection of arts and cultural assets in the area have This is a report commissioned by Chicago Loop on the Loop economy. Alliance, a downtown management organization with the mission to create, manage and promote high-performing urban experiences, attracting The results of this study will be people and investment to the Loop. Together used to enhance the CLA brand with an engaged set of Loop arts organizations, and marketing narrative, provide a taskforce was formed to work with professional case-making data to Loop arts consultants ArtsMarket, Inc., and HR&A Advisors and cultural organizations that to better understand the economic impact of the will improve their position when arts in the Loop. advocating for public- and private- sector support and reposition arts and cultural organizations as economic drivers in the Loop and the City of Chicago. The information will also be useful to other Chicago economic development organizations, like Choose Chicago, World Business Chicago and the City of Chicago Department of Cultural Affairs and Special Events. 1 | CHICAGO LOOP ALLIANCE ARTS IN THE LOOP ECONOMIC IMPACT STUDY | 2 UNIQUE DESIGN METHODOLOGY Few economic impacts of the arts opportunity to capture information studies include data reflective of from visitors who come into a city for The Joffrey Ballet credit-Cheryl Mann all sectors of the arts in a region. the experience of public art, enjoying This study has. Typically, for-profit a park such as Millennium Park or who There are two primary data along with visitation THREE AREAS arts presenters are left out, which explore historic architecture. ways to capture and employee count is a particular void in a city such economic value. The information. OF IMPACT as Chicago in which Broadway in The Arts in the Loop study includes first is the expenditures Visitor information in Chicago serves an annual audience data collection from the for-profit arts of the institutions and this study was obtained DIRECT of 1.6 million. Typically, arts economic and their audiences and collected organizations being through an online survey impact studies use as their information visitor information from those who studied. The second embedded on CLA IMPACT sample audiences who complete didn’t purchase tickets or attend is the expenditure of and arts organizations’ The actual spending of the paper surveys within venues they ticketed- or counted-admissions the visitors to these websites and widely Loop’s arts institutions – their are attending. This means there is no events. institutions, both on- promoted. A total of payroll, the programs they produce and the related costs site (admissions, 12,161 surveys were of operating their buildings. refreshments) and off- submitted by Arts in the Direct impact of visitors site related to the visit. Loop visitors between attending an event is the Off-site impacts include Oct. 15, 2017, and Jan. visitor spending on the ticket for the event. spending by visitors on 15, 2018. The survey hotels, restaurants, retail responses were cleaned INDIRECT purchases, transportation and standardized for and more. analysis, and multiple IMPACT surveys from the same Spending by the Loop’s arts To construct the model email address were institutions and arts visitors on for the Arts in the Loop goods and services outside rejected. analysis, this study of direct impact spending. For example, institutional design was based on Initially, the researchers spending on advertising and THIS STUDY ENCOMPASSES data reported by each sought a response marketing or visitor spending organization using the pool of 4,145 to obtain on a meal out fall under IRS Form 990s as filed a 2 percent margin of indirect impact. 72 ARTS & CULTURAL INSTITUTIONS by all the nonprofit error and a 95 percent INDUCED cultural organizations in confidence rate. Since GEOGRAPHY OF STUDY AREA APPROXIMATELY 120 PUBLIC ART PIECES the Loop. Exact parallel the actual response pool IMPACT The Loop, as defined for this study, data was obtained from totaled over 12,000, the This is the economic benefit extends to the Chicago River to the AND MORE THAN 50 ARCHITECTURALLY government and for-profit researchers were able that is created by both the north; to the south branch of the Chicago institutions. to use subsets of the direct and indirect spending River to the west; to Congress Parkway IMPORTANT BUILDINGS wITHIN THE LOOP, responses by geography, combined. For example, jobs to the south; and to Lake Shore Drive to This data provided in other industries supported demographics and consistent categories by spending related to the the east. Included within this boundary AMOUNTING TO A TOTAL OF APPROXIMATELY participation, with a high of institutional spending Arts in the Loop represent an are Grant Park, Maggie Daley Park and 250 ARTS & CULTURAL ASSETS. level of confidence. induced impact. Millennium Park. 3 | CHICAGO LOOP ALLIANCE ARTS IN THE LOOP ECONOMIC IMPACT STUDY | 4 UNIQUE DESIGN METHODOLOGY Few economic impacts of the arts opportunity to capture information studies include data reflective of from visitors who come into a city for The Joffrey Ballet credit-Cheryl Mann all sectors of the arts in a region.