Tomorrow’s City Centre: Agenda

In partnership with

Prof Greg Clark, Lead Author Senior Fellow, Urban Land Institute (ULI) and Visiting Professor, International Public Policy Institute, University of Strathclyde. and

J. Alexander Maxwell, Rapporteur Fulbright Scholar, Urban Design Studies Unit, University of Strathclyde.

Thanks to Jonathan Coutrier who provided research assistance on technology and urban development.

Sponsored by

About Glasgow About ULI

Chamber of Commerce The mission of the Urban Land ULI relies heavily on the experience Institute is to provide leadership of its members. It is through member Glasgow in the responsible use of land and involvement and information is a membership organisation with in creating and sustaining thriving resources that ULI has been able a membership of 1350 businesses communities worldwide. ULI is to set standards of excellence in from Glasgow and its wider committed to: development practice. metropolitan region. • Bringing together leaders from The Institute has long been It has served the business community across the fields of real estate recognised as one of the world’s in the city for over 230 years and and land use policy to exchange most respected and widely quoted offers a comprehensive range best practices and serve sources of objective information of services and products to help community needs; on urban planning, growth, businesses achieve their potential, and development. promote the broader business • Fostering collaboration within agenda of the city and drive forward and beyond ULI’s membership To download information on ULI the economy of Glasgow. through mentoring, dialogue, and reports, events and activities please problem solving; visit www.uli-europe.org Glasgow Chamber offers a wide • Exploring issues of urbanisation, range of services including the Urban Land Institute conservation, regeneration, provision of: 50 Street land use, formation, EC2M 7PY and sustainable development; • Business Events and Networking Tel: +44 (0)20 7487 9570 • Bespoke Project Activity • Advancing land use policies and Email: [email protected] design practices that respect the • Exporting and International uniqueness of both the built and Trade Support natural environment; • Policy and Stakeholder • Sharing knowledge through Management education, applied research, • Training and Development publishing and electronic media; Solutions and established in 1936, the institute today has more than The Chamber also plays a crucial 30,000 members worldwide, role in representing members’ views representing the entire at local, regional and national policy spectrum of the land use and levels through affiliation with both development disciplines. the Scottish and British Chambers of Commerce.

As one of the largest Chambers ULI Foundation Annual Fund [1] in and as an accredited [1] Chamber of Commerce, its work ULI Scotland (See Appendix) is regularly assessed by the British Chambers of Commerce to ensure that it is of the highest quality.

Winner: Scottish Chamber of Commerce of the Year 2014

3 About Tomorrow’s City Centre

Glasgow Chamber of Commerce and the Urban Land Institute wanted to consider how constantly evolving technologies would influence consumer behaviours and potentially impact the city centre experience in the next five years.

As a result, the ‘Tomorrow’s City Centre’ Retreat and Conference was born.

The project comprised of the delivery of a ‘Tomorrow’s City Centre’ Retreat and Conference both moderated by Greg Clark, Senior Fellow of ULI. [3]

Its aim was:

To consider how constantly evolving digital technologies will influence consumer behaviours and potentially impact the experience in the next five years

‘City centre experience’ includes retail, events, real estate, public services and attractions, night time economy, transport and city infrastructure including data management.

The project sought to capitalise on the work already being done in the city through the City Centre Strategy; the Future City Demonstrator funded by TSB and Future Cities project at Strathclyde University as well as galvanising links and intelligence through private sector partners with a fundamental role in city centre experience.

The project was in partnership with Glasgow Chamber of Commerce and ULI; sponsored by BT, IBM, , University of Strathclyde and MadeBrave®.

4 Contents

Executive Summary

About Glasgow Chamber of Commerce 03 Glasgow is an innovative city 20 About ULI 03 Glasgow is a ‘smart’ city 20 About Tomorrow’s City Centre 04 Glasgow leading the way 20 Executive Summary and Introduction 06 3. Challenges & Opportunities For Glasgow: 21 Key Findings 07 Tomorrow’s Digital City Centre Key Concerns and Challenges 21 Part 1. City Centres and Technology 09 Opportunities 22 1. Introduction: Cities, City Centres, 09 Understanding the 3 “D’s” Driving the 23 Technology, and the Future Future of Work 2. Why do city centres matter? 11 4. Potential Solutions for Tomorrow’s City 24 3. Digital Technologies and City Centres 12 Centre 4. What are the key technologies? 12 Adjusting to the Digital Age: How 24 omni-channel retailers can respond, The Internet, Broadband and Wireless 12 succeed and be city centre champions Networks Tips for the future: What modern, retailers 24 Smart Infrastructure, Sensors, and Real 12 expect out of tomorrow’s city centre in Time Data order to invest E-Services, E-Government, E-Democracy 13 5. International examples of tomorrow’s city 25 and E-Commerce centres Smartphones, Telematics, and Cloud 13 6. Proven local business solutions for dealing 26 Computing with digitisation Smarter Resource Management, Energy 14 7. Conclusions 27 Efficiency, and Smart Grids Appendices 28 5. City Centres Responding to the Digital Age 15 Appendix 1 28 City Responsiveness and Governance 15 Appendix 2 28 Liveability and City Centres 16 URLs 28 Changing Use of Space 16 Appendix 3 28 Energy 17 Tomorrow’s City Centre Retreat 28 Economic Gains 17 Issues for Debate 28 6. City Centres and the Future 18 Contributors 29 Appendix 4 30 Part 2. Tomorrow’s City Centre: Glasgow 19 Tomorrow’s City Centre Conference 30 1. The Tomorrow’s City Centre Retreat 19 Agenda and Speakers and Conference Appendix 5 32 2. Glasgow Today 19 Voting Results 32 Quick facts about Glasgow city centre 19 (Cameron, 2014): References 34 Glasgow City Centre Strategy: 20

5 Executive Summary by digital platforms are also those At the same time fast evolving that are most strongly clustered in consumer and citizen preferences and Introduction city centres. This means that city and behaviours mean that there Rapidly evolving digital technologies centres must adjust to these changes are new opportunities for the city are transforming retail, leisure, and discover new ways of using centre to develop its role as both education, and public administration. space that complement the digital a multi-functional destination, The shift to digital platforms for world and are enhanced by it. Digital and also as a focus for digitised transactions and networking provides technologies are an opportunity for transactions, information, and a new set of pressures on land city centres if they are embraced incentives. Over the next five years uses and the role of physical space. positively and with imagination and Glasgow city centre must adjust to Such digital platforms change the flexibility. They are also a major threat these changes and opportunities way that space is used and have and those city centres which fail and develop a confident new major implications for the built to adapt could face stagnation. approach. The Tomorrow’s City environment, especially the new and Centre project was developed by In a city like Glasgow the changing different uses of high streets, public Glasgow Chamber of Commerce methods of delivering retail and realm, retail locations, corporate and in partnership with the Urban Land public services will mean that the public offices, and small business Institute (ULI). use of the city centre will involve premises. The sectors most impacted accelerated and continuous change. The aim of the project was:

To consider how constantly evolving digital technologies will influence consumer behaviours and potentially impact the Glasgow city centre experience in the next five years.*

The project involved the delivery facing Glasgow city centre as one of of a Tomorrow’s City Centre retreat tomorrow’s city centres. Whilst much and conference, which were held of the text and findings of this report in Glasgow on October 9th and 10th, are specific to Glasgow, many of the 2014. As an output of the project, lessons are applicable to city centres this report was generated as a way throughout the world, as city centres of capturing key questions, begin to address the rapidly evolving challenges, and opportunities digital landscape.

* ‘City centre experience’ includes retail, events, real estate, public services and attractions, night time economy, transport and city infrastructure including data management.

6 KEY FINDINGS • Focus on putting people at the • Make the innovation economy in centre of digital strategy. How Glasgow City Centre more visible Glasgow city centre, as one of the digital systems can best serve both to its citizens and potential world’s tomorrow’s city centres, people (as citizens, customers, ‘innovation angels’ and investors. should prioritise the following over entrepreneurs, workers, tourists, Better define the innovation the next five years: students, children, etc) and be districts in the city centre and • Build upon and renew historical customised to individual needs. their identity and location. Define strengths and traditions and Glasgow should be decisive about which districts require more or develop ambitious visions for digital inclusion and think about less regulation. how it builds its relationships becoming a global leader in the • Encourage more people to live with people. After all, ‘people digital age. Glasgow has a rich in the city centre. Glasgow could make Glasgow.’ culture and history as a ‘maker have a much larger city centre of things’ that can be used to help • Invest in smart car parking that resident community. How can establish itself as a forerunner in frees up the time spent in the that be achieved and the need for digital innovation. Glasgow city car looking for parking. This will better childcare in the city centre centre, unlike some other city allow for more time enjoying be resolved? centres, is a great gathering place, city centre attractions and • Define the circumstances needed retail centre and employment increase productivity. hub and needs to leverage digital to shift towards reduced car platforms to continue to be that. • Re-use urban spaces in a way that use. Glaswegians enjoy driving to allows for more artisan, incubator and from the city centre and the • Use and share data efficiently and or pop-up business to experiment first task is to make that easier. effectively to quickly respond to and become more entrepreneurial. But in the longer term can better what people want from their city Update and deregulate policies transport solutions incentivise centre. Data should also be used that restrict the ability of city centre alternatives to car use? to showcase how Glasgow’s city businesses and spaces to adapt to centre ‘stacks up’ in comparison real time changes in the demands with other city centres in Scotland, from customers and citizens. This the UK, and around the world. may require active adjustments in A data partnership was advocated leases (e.g. 30 day rolling leases by participants as a way to help for vacant properties), planning, shape how data is prioritised, used zoning, and business models of and shared. property owners. • Glasgow should strive to be a • Institutionalise a permanent hyper connected city centre. ‘Strategic City Centre Operations With evidence of smaller Group’ to respond to the needs businesses in the city centre where of the City in real time, similar good broadband speed is not yet to the successful senior level available, Glasgow should ensure Response Team formed during ubiquitous, high-quality wireless the in and broadband connectivity in 2014 which prioritised issues and order to drive productivity and handled them. innovation. It is important to reach those in the community who are marginalised and not digitally connected to the benefits of the city centre. Over 30% of Glasgow’s population is not digitally connected.

7 “We need a proper digital roadmap… at the moment we have very patchy, very unfulfilling data… we want to know what the up and down experiences are so we can know where to invest in our city.” Stuart Patrick, Chief Executive, Glasgow Chamber of Commerce

“Digital is an enabler to make it easy to use the city centre.” Bill Kistler, Co-Founder, Forum 48

“You still cannot drink your coffee online… the experience is still in retail, but the convenience is now online.” Anne Ledgerwood, General Manager St. Enoch Centre

“The future of cities will be about choice, talent and quality of life at all income levels.” Maureen McAvey, Senior Resident Fellow, Bucksbaum Family Chair for Retail, ULI

8 Part 1. City Centres and Technology

Introduction: Cities, City Centres, Technology, and the Future

The use of technology, and problems. Some are optimising urban sector too. Some cities are in particular Information and infrastructure to better control and using new technologies to Communication Technologies respond to the flow of people, goods deliver services such as health, (ICTs), to optimise the efficiency of and traffic. Others want to improve safety and education, whether urban infrastructure and the delivery the distribution of energy, water and through instant diagnoses, improved of public and commercial services the disposal of waste. The use of public surveillance and policing, has captured the imagination of ICTs to engage citizens in decision or remote and continuous learning. policy makers and businesses. making, acquire real-time feedback As a result, the application of these Cities are increasingly experimenting and user-generated data to improve technologies has the potential to with technological solutions to city-management, is also becoming change the form, functions and their congestion, governance, increasingly popular – and has liveability of city centres. pollution, social and economic potential benefits for the retail

6000

Sustainable cities 5000 Smart cities

Future cities

Compact cities 4000 Eco cities

Liveable cities

Digital cities 3000 Resilient cities

Innovative cities

Intelligent cities 2000 Cities for people

Attractive cities

Integrated cities 1000 Walkable cities

Flexible cities

0 1983 1984 1985 1986 1987 1988 1989 1990 1911 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Fig 1. The language of smart and future cities. Source Clark, Moonen, Moir1

9 The use and combination of these systems comes under and more accessible education, care, entertainment and many names that have different meanings to different retail opportunities. stakeholders, such as ‘smart cities’, ‘future cities’, ‘intelligent cities’, ‘the internet of things’. Its promised Many cities have already developed technological impacts range from an anticipated global market worth solutions to meet the challenges of urbanisation, €300 billion a year by 2020 and €600bn in savings for the however uptake of ‘’ technologies has been public and private sector through greater efficiency. In slower than anticipated, and existing solutions have addition, Arup, IBM and Siemens forecast a 15% reduction not yet matched expectations. Rio de Janiero, London, in emissions due to greater energy efficiency, reductions Glasgow, Philadelphia, Boston, Barcelona, Dar Es Salaam, in congestion, improved and safety, greater Songdo, Masdar are but a few leading examples of cities civic participation in urban government and management, experimenting with new technologies.

“We must understand what the needs are and have the technology speak to the needs… most cities in the UK don’t have a chief technology/information officer.” John Langford, Director of Live Entertainment, Scottish Exhibition and Conference Centre

However to date, no city has fully deployed an integrated mechanisms. In addition, uncertain long-term returns and technological grid covering all urban functions and the accompanying political risk, or a lack of vision and services (Brookings, BIS, Arup). This partially stems from leadership, which is sometimes delegated to the private the reluctance of urban governments from undertaking sector have stifled innovation. Finally, the relative lack of costly projects with large initial outlays in times of ‘first movers’ from whom mistakes can be learnt means austerity and limited fiscal autonomy, or value capture few cities are willing to take the plunge (ibid).

“If the city centre was a store you would be able to know what you were selling. If there was the right kind of data sharing, a picture of the trade of the city centre as a whole would become available. We must do all we can do to be at the forefront of digital cities. Can we make Glasgow a showcase for new technologies?” Kevin Kane, Executive Director, Glasgow Economic Leadership Board.

However, as urban centres experiment with different they can reap the economic benefits linked to the solutions and seek to host clusters of firms working on knowledge-economy, as well as exposure to evolving technological solutions to urban challenges, urban technologies.

10 2. Why do City Centres matter?

City centres are arguably the most The world’s premier cities, however, complex and influential locations have found a variety of ways to in the world. Their densities, overcome these challenges through complicated and over-lapping land- innovative investment and partnership uses, and diverse ownership patterns models supported by leadership and make them hubs of activity and vision. Europe’s city centres are a innovation, but also management key element of Europe’s competitive and investment challenges. City advantage in an increasingly centres are the core nodes of globalised world, where Europe’s metropolitan investment markets cities cannot easily match those in and infrastructure platforms, and other continents for scale or power. successful city centres can and do Europe’s historic DNA, its cultural and affect positive change at the regional developmental treasures, are housed and national levels. As more than half in the city centres of more than 100 of the world’s population now live cities. These city centres are magnets in urban areas, effective investment of tourism and leisure, and they also in city centres is more important foster the creation of knowledge and than ever. the expansion of culture. However, Europe’s city centres must not only Successful investment in city centres perform the role of , they requires joint working between need to be active business and the public and private sectors and trade hubs, as well as centres of amongst multiple land owners. communication, administration In an environment of constrained and government. Therefore, public sector funding, it becomes continuous reinvestment is required increasingly difficult for cities to invest in both infrastructure and in sites in their centres. This is especially true and land parcels. This requires in Europe where the historic nature of both a common agenda for city so many city centres provides a rich centre investment and high calibre cultural endowment, but also a major investment and development projects re-investment challenge. Although in individual locations. the private sector is attracted to city centres’ natural attributes, investors can be discouraged by preservation and conservation regulations, changes in leadership, confusion over public-private partnership structures, perceived national and city bureaucracy, and a lack of accessibility and accountability from the public sector.

11 3. Digital Technologies and City Centres

Almost all of the roles that city Increasingly city centres are also provide opportunities for increased centres play in a modern city are places where people want to live, activities in other locations. Digital impacted by digital technologies. and developing a resident base technologies also increase the pace City centres are: is an important driver for city of change as well as the speed of centre success. transactions in city centres. Digital • Places of employment platforms have major implications These functions can all be • Providers of public services for the built environment, especially enabled and enhanced by digital the new and different uses of high • Retail locations technologies. The sectors most streets, public realm, retail locations, impacted by digital platforms are • Business districts corporate and public offices, and also those that are most strongly small business premises. This means • Entertainment hubs clustered in city centres. Rapidly that city centres must adjust to these • Administrative centres and clusters evolving digital technologies are changes and discover new ways of of Government transforming retail, leisure, education, using space that complement the and public services/administration. digital world and are enhanced by • Transport interchanges But, this shift to digital platforms it. The capacity of city centres to • Seats of learning and knowledge for transactions and networking adjust quickly and continuously to provides a new set of pressures on digital technologies is primary in this • Visitor destinations land uses and the role of physical process. How well city centres adapt • Locations of icons & memory, space because they change the way also determines how much they architecture, culture, identity, that land, infrastructures, buildings, can take advantage of opportunities reputation and ‘shrines’. and locations are used. They can associated with digital technologies. reduce demand for certain activities in some locations, and they can

4. What are the key technologies?

The Internet, Broadband represent all devices connected Smart Infrastructure, to the internet – whether because and Wireless Networks they are controlled remotely, need Sensors, and Real Underpinning the relationship a connection to perform their Time Data between improved urban functions, or because they generate Smart infrastructure is capable of functionality and technology is the data to be processed and stored. As monitoring flows, events, moods internet, in particular broadband more and more devices and users and people in order to generate and wireless networks. Cities connect to the internet, cities must data or optimise its response. For seeking technological solutions to have sufficient bandwidth to process instance, facial-recognition and their challenges require a reliable the resulting data flows. As more is crowd or traffic counting CCTV broadband infrastructure which can connected to the internet the costs cameras, can track and manage both serve citizens and