November RDDC Year-End Report Rochester Downtown Development Corporation 2019 , 100 Chestnut Street, Suite 1910, Rochester, NY 14604

MESSAGE TO MEMBERS BOARD OF DIRECTORS

CHAIR In addition to being economic Dr. Joel Frater, Executive Dean, MCC Downtown Campus

powerhouses, downtowns around IMMEDIATE PAST CHAIR the country are really about “power Deborah Stendardi, Vice President, Government & of place”. Density, authenticity, Community Relations, Rochester Institute of Technology walkability, and spaces where crea- tive collisions happen, all have real VICE CHAIRS currency in this arena. Jim Brown, Executive Director, Floreano Convention Center Tim Corcoran, CFO, CGI Communications What we know is that business Steve Dubnik, President & CEO, The Strong is chasing talent, and that young Brian Flanagan, Partner & Gen. Counsel, Nixon Peabody LLP talent wants places with vibrant Dr. Joel Frater Heidi Zimmer-Meyer Bret Garwood, CEO, Home Leasing center cities, diverse environments, Chair President Chris Hill, Vice President, I. Gordon Corporation and socially conscious cultures. Equity & Inclusion are Essential Chris Mannelli, Executive Director, The geography of innovation is To have a viable chance at real Roosevelt Mareus, Dean/Executive Director, Rochester also changing, as the Silicon Valley transformative growth in this re- Educational Opportunity Center and Research Triangle Park models gion, equity and inclusion must be Joe Rizzo, Manager of Economic Development & are being replaced by more urban imbedded in our strategies. They Community Relations, NYSEG & RG&E versions. Patrick Tobin, Senior VP & Market Executive, S&T Bank should cut across every aspect of Innovation Story is Key Tory Van Voorhis, CEO, Second Avenue Learning economic development, from clus- Christine Vargas, Founder & Owner, Vargas Associates The Downtown Innovation ter-building and talent attraction, Zone (“DIZ”) has grown from 108 to education, workforce develop- TREASURER innovation and creative class enter- Brie Harrison, Finance Director, Rochester Public Library ment, and business ownership and prises in 2016, to 191 today. Some support services. And this can’t SECRETARY are growing fast, and these new just trickle down from the top. It Pete Giovenco, President & COO, Bergmann Associates upstarts are replacing more con- needs to involve players and stake- ventional tenancy. ADDITIONAL DIRECTORS holders at all levels, and around the David Beinetti, Principal & Chairman, SWBR Architecture, Four business incubators and tables where decisions are made. accelerators are up and running in Engineering & Landscape Architecture, P.C. Inviting diverse voices makes Tara Boggio, Senior Business Manager, Upstate NY, the core of the DIZ, and another our businesses more competitive, T.Y. Lin International one is under construction. The our products and services more Scott Burdett, Vice President - Brokerage Services, Flaum latter is RDDC’s project, The Com- successful, and our economy Management Company, Inc. missary — the first food business stronger. Craig Burton, Senior VP, Commercial Real Estate Executive, incubator and shared kitchen facili- RDDC’s Role is Evolving Five Star Bank ty of its kind in NYS outside NYC. Keith Cleary, VP/Director– Business Banking, ESL Federal Given the massive changes A rapid rise in co-working Credit Union spaces downtown with six now underway downtown, RDDC’s Stra- Jim Doser, Director, Institute for Music Leadership, Eastman open is reflecting the kind of flexi- tegic Plan for 2018-23 is charting a School of Music ble space options many young en- vital new course for the organiza- Patrick Dutton, President, Dutton & Company tion. It’s key goals are to: Josh Farrelman, Assoc. VP, Government & Community trepreneurs want. 1. Accelerate downtown economic Relations, Major Investments Underway vitality; Rich Finley, President & COO, Buckingham Properties In keeping with downtown 2. Position and market downtown and Andy Gallina, President, Gallina Development Corporation economic revitalization trends, 56 its assets to support business at- Francis L. Gorman III, Senior Counsel, Harris Beach PLLC virtually vacant buildings have traction and downtown investment; Ken Hall, CFO, Riedman Companies been converted to housing down- 3. Catalyze innovative ideas that Bob Healy, President, LaBella Associates, P.C. town, sparked by the $2.3 billion make downtown a more vibrant Kate Karl, Partner, Chair of Real Estate & Banking Law invested since the year 2000. and inclusive community; and, Groups, Underberg & Kessler LLP There are 20 more housing projects 4. Maximize the ongoing impact of Ben Keller, Partne, Real Estate Development & Finance the organization. Group, Woods Oviatt Gilman LLP in the pipeline, ROC the Riverway is in motion, and the entire down- RDDC’s relevance and value Paul Kremp, Gen. Mgr., Holiday Inn town landscape is being trans- proposition hinge on our ability to Peter Landers, Mng. Member, Landers Management LLC formed. leverage the country’s increasing Stuart Mitchell, President & CEO, PathStone Corporation Richard Mueller, Group Vice President, M&T Bank There are now nearly 8,000 urbanization trend and to recog- Dr. Art Papier, Co-Founder & CEO, VisualDx people living downtown, and an- nize that downtown belongs to Michael Pietropaoli, VP, Sen. Relationship Mgr., KeyBank other 2,300 more will be moving in everyone. We all need to feel wel- Jim Redmond, Reg’l VP, Communications, Excellus BCBS over the next few years. Down- come and be able to find ways to Patrick Rogers, VP/Project Executive, The Pike Company town is also the largest office park capture a piece of the prosperity Kevin Ryan, Exec. Director, Monroe County Bar Association in the nine-county region, and has that is happening down here. Naomi Silver, President, CEO & COO, Rochester Red Wings a worker population of approxi- RDDC remains committed to all of Steve Webster, Owner, Webster Properties mately 48,000. this. Dawn Williams-Fuller, Owner, Ambassador Union Street LLC

2020 Workplan 2020 Budget

2019 Proj. 2020 MISSION: RDDC drives economic vitality ACTUALS BUDGET in Downtown Rochester through innovation REVENUE and collaboration. Membership Dues $200,225 $197,700 Events, Event Sponsorships 99,830 95,000 Marketing & Communications 0 0 POWERFUL ADVOCACY & PARTNERSHIPS Management Fees & Contracts 2,300 42,698  Board identifies top five issues to target in January Miscellaneous Income 294 5 2020 and prioritizes through feedback from RDDC TOTAL REVENUE $302,649 $335,403 members  Continue to strengthen RDDC’s key roles in the ROC2025 and ROC the Riverway alliance EXPENSES partnerships, and build even stronger public private Staff Payroll $175,156 $196,720 partnerships with the State, City of Rochester, and Payroll Taxes 13,837 15,541 County of Monroe Employee Benefits 20,516 26,850  Continue to build RDDC’s collaborations with other Technical Services 3,871 4,080 key economic development partners, including GRE, Rent & Utilities 0 0 the Chamber, and VisitRochester Equipment & Machines 3,904 5,405  Continue to frequently update the Downtown Market Telephone, I-net, Cloud, Email 4,896 5,069 Summary report, and share it with public policy Office Expenses 1,800 1,300 makers, investors, members, and the media Printing & Copying 548 750  Strengthen RDDC’s role as the preeminent Postage 200 250 downtown economic development organization, and Business & Meetings 3,400 1,000 use business events to position the organization as a Dues & Subscriptions 1,485 1,724 significant and high impact regional economic Insurance 2,900 3,000 development and leadership entity Accounting Services 7,406 7,400

GROWING BUSINESSES & TENANCY Miscellaneous Expenses 664 2,754  Through RDDC’s single member LLC, the Rochester Total Overhead $240,583 $271,843 Commissary LLC, complete construction of The Commissary and begin operations in 2020 RDDC Events $47,148 $45,000  Leverage the Downtown Innovation Zone and its Downtown Innovation Zone 0 0 many business incubation and acceleration partners Marketing & Communications 1,150 18,560 to market the downtown environment, investments, Management Fees & Contracts 2,300 22,700 and business development assets to grow TOTAL EXPENSE $291,181 $335,403 microenterprises in the center of the city  Continue to work with GRE, City, County, and SURPLUS (DEFICIT) $11,468 $0

Chamber to flesh out downtown’s unique role in attracting and retaining innovation companies funding sources; and better engage downtown

HIGH IMPACT COMMUNICATIONS, MARKETING innovation companies  Continue to participate and directly assist in all & EVENTS discussions regarding a possible downtown Business  Develop a formal marketing and communications Improvement District (BID) plan to promulgate the Downtown Definitely brand  Continue to develop the organization’s platform to and maximize the impact of RDDC’s social media increase its role as a corporate citizen, and identify channels opportunities to positively impact the community  Highlight downtown residential and innovation beyond downtown enterprise stories on the new RDDC/Downtown  Form Marketing Task Force to guide RDDC’s marketing website and RDDC’s social media channels and communications efforts  Use events as a mechanism to deliver downtown  Use Governance & Compensation Committee to draft a market messaging, address advocacy issues, and succession plan for RDDC enliven the street experience  Form Audit Committee to strengthen financial oversight ORGANIZATIONAL SUSTAINABILITY and enhance compliance with State and Federal laws  Use Development Committee to explore ways to and regulations leverage RDDC’s 501(c)(3) status; grow and  Develop a Board orientation process that reflects the diversify RDDC’s membership; identify alternative values of the organization

2019 RDDC Highlights

Key 2019 Accomplishments Corporate Structure

THE COMMISSARY — RDDC has raised $2.1 M. to build a RDDC is a private, membership-based, 501(c)(3) not-for- shared kitchen and food business incubator for food trucks, profit corporation, structured as follows: startup restaurants, caterers, bakers, home-based food businesses looking to legalize, and food manufacturing and BOARD OF DIRECTORS production startups. Construction started in November • Responsible for annual corporate management 2019 at Sibley Square with completion anticipated by June decisions (e.g., budget, annual workplan, election of 2020. There are 140 food entrepreneurs on our waiting list. officers), setting corporate priorities and direction.

DOWNTOWN MARKETING INITIATIVE — Our 2nd Eat Up Rochester Restaurant Week (April 29 - May 5) was a huge EXECUTIVE COMMITTEE success. The new Downtown Definitely brand is being • Executive Committee consists of the officers of the activated with the new downtown website, an new corporation and has oversight on corporate downtown awards program, new Main Street banners, and management, policies and staff compensation, and other arts projects. executes the annual CEO review.

DOWNTOWN INNOVATION ZONE (DIZ) — RDDC is now tracking 195 innovation and creative class enterprises in the NOMINATING & GOVERNANCE COMMITTEE DIZ, and RDDC helps represent this rising group of • Handles all governance matters, makes policy businesses in the regional economic development arena. recommendations, and develops the annual slate of Officers and Directors. ADVOCACY — RDDC helped reverse an on-street parking pricing change that negatively impacted restaurants, arts, DEVELOPMENT COMMITTEE and other street-level businesses. RDDC continues to aggressively engage in issues ranging from the parking • Develops the annual membership campaign and system, leveraging the riverfront, major public project revenue plan to appropriately resource RDDC’s staff, design, activating street life, and the growth of the programs, and corporate operations. Downtown Innovation Zone. AUDIT COMMITTEE • Provides financial oversight to ensure compliance with Downtown Office Space Survey State and Federal laws and regulations. June 2018

Total Space Surveyed = 117 buildings, 9.7 M. s.f., Downtown Housing (83.2 % occupied) December 2018 Competitive Space = 89 buildings, 6.7 M. s.f., Existing (76.6 % occupied) • All downtown housing units (both reporting & non- • Class “A” — 12 buildings, 2.8 M. s.f., (79.6 % occupied) reporting): 4,670 • Class “A/R” — 13 buildings, 586,502 s.f., • Estimated residents: 7,780 (up 140%, 2000-18) (84.2% occupied) • Total owner-occupied units: 151 • Class “B” — 35 buildings, 2.6 M. s.f., • Total rental units: 4,519 (66.8 % occupied) • Market-rate rental units: 3,456 • Non-Traditional — 25 buildings, 576,065 s.f., • Subsidized rental units: 1,063 (83.7 % occupied) • Vacancy rate, all rental units: 6.5% • Medical — 4 buildings, 150,292 s.f., (94.1 % occupied) • Market-rate units: 6.4% • Subsidized units: 6.7% Non-Competitive Space = 28 buildings, 3.0 M. s.f., • Percent rental: 96.8% (100 % occupied) • Rent range, all units: $408 - $3,035

Websites Under Development (as of November 2019)

Downtown’s premier website: • 20 projects in pipeline — 10 commercial space www.RochesterDowntown.com conversions, 10 new construction, and 3 rehabs of existing residential properties The Commissary: www.RochesterCommissary.org • Total # of new rental & for sale housing units planned Eat Up Rochester: www.EatUpRoc.com or under construction = 1,333 Downtown Innovation Zone: www.RocDIZ.com

2019 RDDC MEMBERSHIP (As of 11/21/19)

PREMIER MEMBERS

Ambassador Union Street LLC • Excellus BCBS Rochester Region • Hyatt Regency Rochester • Nixon Peabody LLP • Pyramid Brokerage Company • Thomson Reuters

AIA — Rochester Konar Properties* Rochester Public Library Allpro Parking LLC Fisher Associates LaBella Associates Rochester Red Wings Ashley Management Corporation Five Star Bank Landers Management Rynne, Murphy & Associates, Inc. BOMA of Greater Rochester Flaum Management Landmark Society of S&T Bank Benderson Development* Company, Inc. Western SEI Design Group Bergmann Associates Floreano Convention Center LeChase Construction SVN Realty Performance Advisors Birnbaum Companies Flower City Management, Inc. Services LLC SWBR Borrelli & Yots PLLC FORTIFIED The LiRo Group Savin Engineering* Boundless Connections* Foundation Design, P.C. Lifetime Financial Second Avenue Learning Bruckner, Tillett, Rossi, Cahill Gallina Development M&T Bank Smith + Associates* & Associates Corporation M/E Engineering P.C. Spoleta Development Buckingham Properties Galvin Realty Group MCC Downtown Campus SPOT Cowork* C&S Companies Geva Theatre Center Manning Squires & Hennig Inc. Stantec CB Richard Ellis Greater Roch. Assoc. of Mission Commercial Realty Stern Properties CGI Communications REALTORS®, Inc. Monroe County Bar Stewart Title Insurance Company The Cabot Group Greater Rochester Chamber of Association The Strong Canandaigua National Bank Commerce NextCorps* T.Y. Lin International & Trust Greater Rochester Enterprise Norry Management Corp. Taylor the Builders Catholic Family Center Hamilton Stern Construction NorthMarq Capital Times Square Building Chaintreuil/Jensen/ Hanlon Architects Passero Associates, P.C. UDN, Inc. Stark Architects LLP Hanna Commercial PathStone Corporation UNICON Christa Construction Harris Beach PLLC Philippone Associates US Employee Benefits Group City Newspaper Harter Secrest & Emery, LLP Phillips Lytle LLP Underberg & Kessler, LLC Clark Patterson Lee Hilton Garden Inn The Pike Company, Inc. University of Rochester* The College at Brockport Hochstein Memorial Music Riedman Companies Upstate Bank The Community Foundation School Rochester Building Vargas Associates, Inc. Community Preservation Holiday Inn Rochester Trades Council VisitRochester Corporation Downtown* Rochester District VisualDx Conifer Realty LLC Home Leasing Heating Coop., Inc. Webster Properties, LLC Corn Hill Navigation Howard Hanna Rochester Educational WinnCompanies Corporate Communications Hudson Partners Development Opportunity Center Woods, Oviatt, Gilman LLP Costanza Enterprises Hunt E | A | S Rochester Gas & Electric Corp. YMCA of Greater Rochester

Democrat and Chronicle* ID Signsystems Rochester Institute of Technology Digital Hyve* I. Gordon Corporation Rochester Management, Inc. * (New 2019 RDDC member) DiMarco Constructors, LLC Johnson Controls Rochester Philharmonic ESL Federal Credit Union KeyBank Orchestra

2019 RDDC MEMBERSHIP BY SECTOR Community Impact

Corporate & Legal & Related REPRESENTATION General Business ROC2025 Leadership Group; ROC the Riverway Management Entity Working Group; Digital Game Industry Association Banks & Credit Architecture & Unions of Rochester Board; RIT Center for Urban Engineering Entrepreneurship Advisory Board; Roches- ter Commissary LLC; The Community Innovation Foundation’s Mission Related Investing Companies Task Force; Urban Entrepreneurship Eco- system Partnership; Floreano Convention Not-for Profits Hospitality & & Education Hotels Center Management Board; NYS Urban Council; MAG Social

Arts, Cultural, MEDIA COVERAGE, PUBLIC SPEAKING Sports, Museums Frequent and substantive Real Estate & Construction