ORGANIZATIONAL STRATEGY FINAL REPORT March 2020 Dear Pittsburgh Residents, Dear Pittsburgh Residents, Thank you for your warm welcome to the City that I now have One element that I feel is key to our City’s progress is a focus Since its founding almost 75 years ago, the Urban These recommendations share two common themes. the privilege to call home! on the environment and emerging green economy. This Redevelopment Authority (URA) has played a profound role First, they will continue the URA on a path of transformation: is an opportunity that Pittsburgh, with its legacy assets in in Pittsburgh’s history. Today, we recognize the opportunity to from an agency focused primarily on bricks and mortar into As the new Executive Director of the Urban Redevelopment scientific discovery and applied research is particularly well meet our city at an important point in our collective history— an organization focused on supporting the people of Authority (URA), I am excited to help write Pittsburgh’s next positioned for. Moving toward a cleaner, greener economy is and in more meaningful ways than ever before. Pittsburgh, who are truly the city’s greatest asset. Second, chapter. I know that the past 75 years of URA history have not just a jobs generator, it’s also a quality-of-life imperative they will renew the URA's partnerships with City Hall and been a mixed record, but the present provides an opportunity for our region. In short, we see environmental sustainability Pittsburgh has experienced tremendous change in recent its partner agencies and accelerate progress on citywide to try to fully correct the course. We can help spread and economic sustainability as a single transformative piece. years. In the aftermath of an industrial, steel-driven boom and economic development priorities. prosperity to neighborhoods and populations at risk of being Making Pittsburgh a leader in a green economy should be a bust, we saw economic stagnation and population decline. left even further behind in Pittsburgh’s ongoing resurgence. goal that everyone embraces. Now, in the wake of a burgeoning service and technological Since the report’s initial recommendations were drafted economy, Pittsburgh is at an inflection point. We’ve seen in summer 2019, the URA and the City have already made This is an important time for Pittsburgh. A dynamic new I look forward to working with our URA board and staff, the development occur faster than ever in recent memory, and significant progress, including: welcoming Greg Flisram Economic Development Team is in place and ready to move Mayor’s Office, our for-profit and not-for-profit partners, and all the impact of the URA can be felt throughout the City. From as new Executive Director for the URA and appointing forward. In many ways, this report, completed before my Pittsburgh residents in charting this new path for the city. spearheading riverfront development to financing affordable Diamonte Walker as Deputy Executive Director; appointing arrival, provides us with a roadmap— giving an overview housing to supporting the growth of small businesses, the a Chief Economic Development Officer (CEDO) for the City of the economic landscape and suggesting various routes URA has stepped up. of Pittsburgh to coordinate economic development efforts; available to us. We must be expert navigators, thinking on our reorganizing the URA to streamline reporting and clarify feet and being able to adjust as the road bends. Sincerely, Nevertheless, far too many Pittsburghers still live in poverty. functions; and launching long-term business and financial Low wages and overpriced housing have made the gap planning efforts. Collaboration and communication are key – across internal between wealthy and low-income families wider than ever. departments and with outside partners and the community. Vacant homes and shuttered storefronts still dominate far My fellow board members and I are deeply committed I want to hear from all my new neighbors—what is working Greg Flisram too many neighborhoods. Notoriously poor air quality and to supporting the URA as it advances these recommendations and what isn’t. What’s your next great idea? I operate with an Executive Director, Urban Redevelopment other impacts of climate change are not just public health in the coming months. We also understand that must open-door policy and an attitude that isn’t afraid to challenge Authority of Pittsburgh dangers but also drags on our economy. Further, we must do our work honestly and transparently while continuing assumptions or disrupt the status quo. acknowledge the steady stream of research that reminds us to own the mistakes of our past—including our history of that all of these hardships break down starkly along race and race and class-based displacement. From the Lower Hill As we head in this bold new direction, gender lines. to East Liberty and the North Side, the remnants of urban the focus must be on the people of Greg Filsram, Executive Director renewal are scars dotting the landscape of our city, reminders of the URA, Sam Williamson, Pittsburgh – and enabling access Board Chair of the URA, and As our city’s economic development agency, these challenges not only of mistakes never to be repeated but of a history to economic opportunities and Diamonte Walker, Deputy demand urgent action from the URA. If we hope to build a city yet to be healed. Executive Director of the URA an exemplary quality of life for all for all in which health, prosperity and economic opportunity Pittsburghers. I was pleased to see this are broadly shared, we need a URA that is fully equipped to With a new and revitalized URA working alongside the report recommend we concentrate our meet the challenges of the 21st century. Despite a talented Mayor’s Office, City Council, and our partners throughout efforts on creating more housing that is staff and a well-earned reputation for “getting things done,” Pittsburgh, we intend to do just that as we chart a brighter and affordable to the average Pittsburgher; the URA can and should do even more. fairer future for all Pittsburghers, not just a wealthy few. encouraging more entrepreneurship and small business development; As outlined in this report, there are several key reforms promoting inclusive growth and quality that both the URA and City Hall must undertake to advance job creation; expanding neighborhood progress towards a more prosperous and equitable Sincerely, and main streets revitalization efforts; Pittsburgh. These include establishing a clear economic and developing a talented workforce development agenda; strengthening connections between that is equipped with the skills of the the URA, City agencies, external stakeholders, and community future. These priorities will make a real partners; embedding clear goals and metrics into URA Sam Williamson difference in people’s lives. strategic planning; standardizing community engagement Chair, Urban Redevelopment procedures; and developing a financial sustainability plan. Authority of Pittsburgh COURTESY OF THE URA 2 3 Acknowledgements HR&A Advisors Project Team CONTENTS Kate Wittels, Partner, Project Director Eric Rothman, President, Project Senior Advisor David Gilford, Principal, Project Manager Avinoam Baral, Senior Analyst Adam Tanaka, Senior Analyst HR&A wishes to thank the staff and leadership of the URA and the City of Pittsburgh for contributing their time and expertise to the development of this report, as well as the following individuals: Lisa Abuaf, Mayra Arreola, Michael Braverman, Brenda Breaux, Kimberly Clark, Phillip Denning, Siobhain Feeney, David Frank, John Grady, Jeff Hebert, Seth Knudsen, Steve Leeper, Quentin Messer, Devin Quirk, Tyrone Rachal, Jon “Tad” Reade, Marquis Upshur, Carl Weisbrod, and Janet Wilding. EXECUTIVE SUMMARY 7 Funding for this study was provided by a group of Pittsburgh foundations, including the Hillman Family Foundations, the FINDINGS & RECOMMENDATIONS 15 Pittsburgh Foundation, the Richard King Mellon Foundation, and the Heinz Endowments. 1. Mission & Vision 20 The objective of this report is to gather, analyze, and present findings within the time and budget constraints agreed upon with the URA and funders of the study. This report should not be read as a comprehensive review of all URA staff, functions, 2. Leadership & Governance 40 departments, and programs, but rather as an overview of the key issues and opportunities facing the organization. The conclusions contained in this report are based on the best judgments of HR&A Advisors, Inc. and data provided by the URA and 3. Resources 68 third parties. HR&A and its project partners make no guarantees or assurances that the projections or conclusions will be realized as stated. Any errors in the document are the sole responsibility of HR&A Advisors, Inc. 4. Talent 94 5. External Engagement 106 IMPLEMENTATION & NEXT STEPS 127 APPENDICES 135 A. Stakeholder Interviewees 139 B. URA Staff Survey 143 C. URA Stakeholder Survey 153 HR&A Advisors is an industry leader in economic development, real estate and public policy consulting. Equipped with D. Funding Sources Evaluation 165 a unique understanding of the intersection of the public and private sectors, HR&A has served a diversity of clients since 1976. HR&A has extensive experience advising on some of the most complicated real estate and economic E. Sample Business Plan Use of Metrics & Targets 169 development projects in communities across the country. HR&A has offices in New York, Los Angeles, Dallas, Raleigh, and Washington, DC. F. Recommended Organizational Designs for the URA 173 HR&A’s work has been recognized with numerous prestigious awards, including the International Economic Development G. Case Studies 177 Council’s 2009 Public-Private Partnership Award for the creation of the Cincinnati Center City Development Corporation (3CDC), the New Jersey Future 2009 Smart Growth Award for the Newark Broad Street Station plan, and the 2005 ENDNOTES 260 American Institute of Architects Honor Award for Regional and Urban Design for the Anacostia Waterfront Initiative.