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Home My WebLink AboutOctober 14, 2014 Agendato�ut!t4ltli DENTON Tuesday, October 14, 2014 City of Denton Meeting Agenda City Council 1:30 PM City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Work Session Room After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Closed Meeting on Tuesday, October 14, 2014 at 1:30 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. Closed Meetinu: A. ID 14 -0563 Consultation with Attorneys - Under Texas Government Code, Section 551.071. Consult with and provide direction to City's attorneys regarding legal issues and strategies associated with Gas Well Ordinance regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including: Constitutional limitations, statutory limitations upon municipal regulatory authority; statutory preemption and vested rights; impacts of federal and state law and regulations; impacts of gas well drilling upon protected uses and vice - versa; moratorium on drilling and production; other concerns about municipal regulatory authority or matters relating to enforcement of the Gas Well Ordinance; settlement matters concerning gas well drilling in the City; surface development issues involving surface and mineral estates; and legal matters associated with a citizen's initiative regarding hydraulic fracturing where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. B. ID 14 -0662 Consultation with Attorneys - Under Texas Government Code, Section 551.071 Consult with and provide direction to City's attorneys regarding legal issues associated with the proposed Convention Center project, including Tax Increment Reinvestment Zone (TIRZ) participation agreements and other legal documents associated with the project, where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. Following the completion of the Closed Meeting, the City Council will convene in a Work Session to consider the following items: 2. Work Session Reports A. ID 14 -0616 Hold a discussion and provide staff direction with regard to possible amendments to the City Council Rules of Procedure and the annual meeting schedule for the City Council of the City of Denton. City ofDenton Page I Printed on 101912014 City Council Meeting Agenda October 14, 2014 Attachments: Exhibit 1- Proposed Ordinance Exhibit 2- Comparison of CC Rules- proposed 2014 to 2011 Exhibit 3- Proposed Meeting Schedule for 2015 Exhibit 4- PowerPoint Presentation B. ID 14 -0626 Receive a report, hold a discussion, and give staff direction regarding innovation districts and a technology recruitment initiative for Denton. Attachments: Exhibit 1 - Innovation Districts Exhibit 2 - Oct 14 CoDenton PPT (short) C. ID 14 -0653 Receive a report, hold a discussion and give staff direction regarding the Hickory Street project. Attachments: Exhibit 1- Hickory Grand Schedule Exhibit 2- Hickory Grand St. Phasing & Schedule Diagram D. ID 14 -0661 Receive a report, hold a discussion and give staff direction regarding a proposed convention center. E. ID 14 -0613 Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. NOTE: The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, including without limitation, Sections 551.071 - 551.086 of the Texas Open Meetings Act. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of 2014 at o'clock (a.m.) (p.m.) CITY SECRETARY City ofDenton Page 2 Printed on 101912014 City Council Meeting Agenda October 14, 2014 NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349 -8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1- 800 - RELAY -TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. City ofDenton Page 3 Printed on 101912014 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN'FON File #: ID 14 -0563, Version: 1 Legislation Text Agenda Information Sheet SUBJECT Consultation with Attorneys - Under Texas Government Code, Section 551.071. Consult with and provide direction to City's attorneys regarding legal issues and strategies associated with Gas Well Ordinance regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including: Constitutional limitations, statutory limitations upon municipal regulatory authority; statutory preemption and vested rights; impacts of federal and state law and regulations; impacts of gas well drilling upon protected uses and vice - versa; moratorium on drilling and production; other concerns about municipal regulatory authority or matters relating to enforcement of the Gas Well Ordinance; settlement matters concerning gas well drilling in the City; surface development issues involving surface and mineral estates; and legal matters associated with a citizen's initiative regarding hydraulic fracturing where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton Page 1 of 1 Printed on 10/9/2014 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN'FON File #: ID 14 -0662, Version: 1 Legislation Text Agenda Information Sheet SUBJECT Consultation with Attorneys - Under Texas Government Code, Section 551.071 Consult with and provide direction to City's attorneys regarding legal issues associated with the proposed Convention Center project, including Tax Increment Reinvestment Zone (TIRZ) participation agreements and other legal documents associated with the project, where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton Page 1 of 1 Printed on 10/9/2014 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com D EN'FON Legislation Text File #: ID 14 -0616, Version: 1 Agenda Information Sheet DEPARTMENT: Legal CM/ ACM: Anita Burgess, City Attorney Date: October 14, 2014 SUBJECT Hold a discussion and provide staff direction with regard to possible amendments to the City Council Rules of Procedure and the annual meeting schedule for the City Council of the City of Denton. BACKGROUND The City Council expressed a desire to review the City Council Rules of Procedure. Particularly, some Council members expressed a desire to consider the time allotted to citizens to speak before Council. Upon review, the City Attorney determined that the Rules could be clearer if better organized and suggestions for the re- organization are being made. Additionally, some Council practices have not been reflected in the Council Rules. For example, the Rules did not acknowledge the Council's first Monday luncheon meetings. Staff requests direction from Council as to the time to be allotted for citizen speakers. No changes have been made to the Rules as no consensus has been reached on this issue thus far. Staff is also requesting Council direction on the annual meeting schedule. Current practice is to not schedule meetings on the fourth and fifth Tuesdays and the Tuesday following a Monday holiday. A Monday luncheon has been scheduled for the first Monday of each month. A proposed meeting schedule is attached for Council review. PRIOR ACTION/REVIEW (Council, Boards, Commissions) City Council last reviewed these Rules in 2011 when revisions were made with regard to the citizen comment period. EXHIBITS Exhibit 1- Proposed Ordinance Exhibit 2- Comparison of CC Rules - Proposed 2014 with 2011 Exhibit 3- Proposed meeting schedule for 2015 Exhibit 4- PowerPoint Presentation Respectfully submitted, City of Denton Page 1 of 2 Printed on 10/9/2014 File M ID 14 -0616, Version: 1 Anita Burgess City Attorney Prepared by: Toni Reedy Legal Secretary City of Denton Page 2 of 2 Printed on 10/9/2014 h rvvm d by I cx:ls i''I S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc ORDINANCE NO. AN ORDINANCE REPEALING ORDINANCE NO. 2011 -038 AND ENACTING A NEW SECTION 2 -29 OF THE CITY OF DENTON CODE OF ORDINANCES RELATING TO RULES OF PROCEDURE FOR THE CITY COUNCIL OF THE CITY OF DENTON; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton desires to conduct the City Council meetings of the City of Denton in the most efficient and time effective manner; and WHEREAS, the City Council also desires to allow open dialogue by citizens of the community regarding the business of city government; and WHEREAS the City Council desires to streamline the City Council meetings, and facilitate citizen's access to make comments to their local governing body; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That Section 2 -29 of the City Code, known as the Denton City Council Rules of Procedure, is hereby enacted to read as follows: 1. (2- 29(a)) AUTHORITY 1.1(1) Chart er: Pursuant to the provisions of Section 2.07 of the Charter of the City of Denton, Texas, the City Council hereby enacts these rules of procedure for all meetings of the City Council of the City of Denton, Texas. During any meeting, a reasonable opportunity shall be given for citizens to be heard under these rules. These Rules of Procedure are enacted as guidelines to be followed by all persons in the Council Chamber including the city administrative staff, news media, and visitors. 2. (2- 29(b)) GENERAL RULES 2.1 (1) Meetings to be Public: All official meetings of the Council and Council committees and subcommittees, except closed meetings permitted by the provisions of the Texas Open Meetings Act, Chapter 551, TEx. Gov'T CODE (Vernon 2014), as amended, shall be open to the public. 2.2 (2) Quo rum: Four members of the Council shall constitute a quorum for the transaction of business. (Charter, Section 2.06) 2.3 (3) Compelling Attendance: No member shall be excused from attendance at a Council meeting except for good and valid reasons. It will be the duty of the Council member to notify the City Secretary prior to the meeting at which he or she is going to be absent. The City Secretary will record each Council member as being present or absent as a part of the minutes prepared for each Council meeting. S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc 2.4 (4) Misconduct: The Council may punish its own members for misconduct consistent with any Ethics Policy adopted by the Council. 2.5 (5) Minutes of Meetings: An account of all proceedings of the Council shall be kept by the City Secretary and shall be entered in a book constituting the official record of the Council. A certified agenda shall be prepared and shall be approved by the Mayor for all closed meetings for which a certified agenda is required to be kept in accordance with the Texas Open Meetings Act. 2.6 (6) Questions to Contain One Subject: All questions submitted for a vote shall contain one subject, except the City Council may approve all items which are on the consent agenda in one motion, regardless of how many subjects are contained in the consent agenda, so long as all items have been properly posted in accordance with the Texas Open Meetings Act and have not been removed from the consent agenda by a Council member. If two or more points are involved, any member may require a division, if the question reasonably admits of a division. 2.7 (7) Right to Floor: Any member desiring to speak shall be recognized by the Chairperson, and shall confine his or her remarks to the subject under consideration or to be considered. No member shall be allowed to speak more than once on any one subject until every member wishing to speak shall have spoken. 2.8 (8) City Manager: The City Manager, or Acting City Manager, shall attend all meetings of the Council unless excused. He or she may make recommendations to the Council and shall have the right to take part in all discussions of the Council, but shall have no vote. (Charter, Section 5.03 (d)). 2.9 (9) City Attorney: The City Attorney, or Acting City Attorney, shall be available upon request for all meetings of the Council unless excused and shall, upon request, give an opinion, either written or oral, on questions of law. The City Attorney shall act as the Council's parliamentarian. 2.10 (10) City Secretary: The City Secretary, or Acting City Secretary, shall attend all meetings of the Council unless excused, and shall keep the official minutes and perform such other duties as may be requested by the Council. 2.11 (11) Officers and Employees: Any officer or employee of the City, when requested by the City Manager, shall attend any meeting of the Council. If requested to do so by the City Manager, such employee may present information relating to matters before the Council. 2.12 (12) Rules of Order: These rules govern the proceedings of the Council in all cases, except that where these rules are silent, the most recent Edition of Robert's Rules of Order shall govern. 2.13 (13) Suspension of Rules: Any provision of these rules not governed by the City Charter or other City Code provisions may be temporarily suspended by the affirmative vote of four members of the Council. The vote on any such suspension shall be taken by yeas or nays and PAGE 2 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedures 2014.doc entered into the minutes of the Council. 2.14 (14) Amendment of Rules: These rules may be amended, or new rules adopted by the affirmative vote of four members of the Council, provided that the proposed amendments or new rules shall have been introduced before the City Council at a prior Council meeting. 3. (2- 29(c)) CODE OF CONDUCT 3.1 (1) Council members: a. During Council meetings, Council members shall preserve order and decorum and shall neither by conversation or otherwise delay or interrupt the proceedings nor refuse to observe the rules of the Council. b. A Council member, once recognized, shall not be interrupted while speaking unless called to order by the Mayor or presiding officer, unless a point of order is raised by another member or the parliamentarian, or unless the speaker chooses to yield to questions from another member. If a Council member is called to order while he or she is speaking, he or she shall cease speaking immediately until the question of order is determined. If ruled to be in order, he or she shall be permitted to proceed. If ruled not to be in order, he or she shall remain silent or shall alter his or her remarks so as to comply with rules of the Council. 3.2 (2) Administrative Staff: a. Members of the Administrative staff and employees of the City shall observe the same rules of procedure and decorum applicable to members of the Council, and shall have no voice unless and until recognized by the Chair. b. While the presiding officer shall have the authority to preserve decorum in meetings as far as staff members and City employees are concerned, the City Manager also shall be responsible for the orderly conduct and decorum of all City employees under his or her direction and control. c. The City Manager shall take such disciplinary action as may be necessary to insure that such decorum is preserved at all times by City employees in Council meetings. d. All remarks and questions addressed to the Council shall be addressed to the Council as a whole and not to any individual member thereof. e. No staff member, other than a staff member having the floor, shall enter into any discussion either directly or indirectly without permission of the presiding officer. 3.3 (3) Citizens: a. Citizens and other visitors are welcome to attend all public meetings of the City Council, and will be admitted to the City Council Chamber or other room in which the City Council is meeting, up to the fire safety capacity of the room. PAGE 3 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc b. All meeting attendees shall conduct themselves with propriety and decorum. Conversations between or among audience members should be conducted outside the meeting room. Attendees will refrain from excessively loud private conversations while the Council is in session. c. Unauthorized remarks from the audience, stamping of the feet, applauding, whistles, yells, and similar demonstrations shall not be permitted. d. Placards, banners, or signs will not be permitted in the City Council Chamber or in any other room in which the City Council is meeting. Exhibits, displays, and visual aids used in connection with presentations to the City Council, however, are permitted. e. Audience members may not place their feet on any chairs in the City Council Chamber or other room in which the City Council is meeting. f. Only City Council members and City staff may step onto the dais. g. All people wishing to address the City Council shall first be recognized by the presiding officer and shall limit their remarks to the matter under discussion. h. All remarks and questions addressed to the City Council shall be addressed to the City Council as a whole and not to any individual members. i. Any person addressing the City Council in the City Council Chamber shall do so from the lectern unless physically unable to do so. People addressing the City Council shall not be permitted to approach the dais. If they wish to hand out papers or other materials to the City Council, they should express that desire to the presiding officer, and the City Manager shall direct a staff member to hand out the materials. j. When the time has expired for a presentation to the City Council, the presiding officer shall direct the person speaking to cease. A second request from the presiding officer to cease speaking shall be cause of the removal of the speaker if that person continues to speak. k. Equipment, apparatus, or paraphernalia such as camera tripods, easels, or wheelchairs shall not obstruct, block, or otherwise be located in the doorway, entranceway, or walkways of the City Council Chambers or of any other room in which the City Council may choose to meet. Representatives of the electronic media may set up cameras and other equipment only in the back of the room. It is permissible for television camera operators to film for short periods of time (several minutes) from the entranceway to the City Council Chambers. Any radio station, which broadcasts the regular City Council meetings live, may hook their equipment up at the front of the room as long as it remains out of sight and out of the way. 1. There will be a uniformed City of Denton police officer present at all regular meetings of the City Council. This police officer shall act in the capacity of a security officer /sergeant -at- arms, and shall enforce the meeting rules and act upon the direction of the presiding officer. PAGE 4 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc m. Any person making personal, impertinent, profane, or slanderous remarks, or who becomes boisterous while addressing the City Council or who otherwise violates any of the above - mentioned rules while attending a City Council meeting shall be removed from the room at the direction of the presiding officer, and the person shall be barred from further audience before the City Council during that session of the City Council. If the presiding officer fails to act, any member of the City Council may move to require the offending person's removal, and the affirmative vote of a majority of the City Council shall require the presiding officer to act. The sergeant -at -arms, if so directed by the presiding officer or an affirmative vote of the majority of the City Council, shall remove the offending person from the meeting. 3.4 (4) Enforcement: The City Manager, in the absence of a designated law enforcement officer, shall act as Sergeant at Arms for the council, and shall furnish whatever assistance is needed to enforce the rules of decorum herein established. 3.5 (5) Seating Arran_eg ment: The City Secretary, City Manager and City Attorney shall occupy the respective seats in the Council Chamber assigned to them by the Mayor, but any two or more members of the Council may exchange seats. 4. (2- 29(d)) TYPES OF MEETINGS 4.1 (1) Regular Meetings: The Council shall meet on the first and third Tuesday of each month, at such time as may be set by the City Council, unless the meeting is postponed or cancelled for valid reasons. All regular meetings of the Council will be held in City Hall at 215 East McKinney Street, Denton, Texas or at such other location as the City Council may, from time to time by proper posting under the Open Meetings Act and so long as the location is open to the public, designate. 4.2 (2) Special Meetings: Special meetings may be called by the Mayor, the City Manager, or by any three members of the Council. The City Secretary shall post notice thereof as provided by the Texas Open Meetings Act. The Mayor, City Manager, or three of the council members may designate a location for the special meeting other than City Hall, as long as the location is open to the public. 4.3 (3) Workshop Meetings: Workshop meetings (also referred to as "work sessions ") may be held on the first and third Tuesday of each month at such time as may be set by the City Council, or on such other day as the City Council may designate and at such time as may be set by the City Council, to discuss near to mid or long range issues and to answer City Council questions concerning all agenda items. Workshops or work sessions may be called using the same procedure required for special meetings as provided for in Section 4.2(2) above. The purpose of the workshop meeting is to discuss or explore matters of interest to the City, to meet with City boards, commissions, or committee members, City staff or officers of civic organizations, governing bodies or individuals specifically invited to the session by the Mayor, Council or City Manager. These meetings are informational and normally no final action shall be taken unless the posted agenda indicates otherwise. PAGE 5 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc 4.4(4) Luncheon Meetings: Luncheon workshop or work session meetings may be held on the first Monday of each month at such time as may be set by the City Council, or on such other day as the City Council may designate. Such meetings may be called using the same procedure required for special meetings as provided for in Section 4.2(2) above. The purpose of the luncheon meeting is to discuss or explore matters of interest to the City, to meet with City boards, commissions, or committee members, City staff or officers of civic organizations, governing bodies or individuals specifically invited to the session by the Mayor, Council or City Manager. These meetings are informational and normally no final action shall be taken unless the posted agenda indicates otherwise. 4.4 (5) Emergency Meetings: In case of emergency or urgent public necessity, which shall be expressed in the notice of the meeting, an emergency meeting may be called by the Mayor, the City Manager or by three members of the Council, and it shall be sufficient if the notice is posted two hours before the meeting is convened. 4.5 (6) Closed Meetings: The Council may meet in a closed meeting pursuant to the requirements of the Texas Open Meetings Act. 4.6 (7) Recessed Meetings: Any meeting of the Council may be recessed to a later time, provided that no recess shall be for a longer period than until the next business day. 4.7 (8) Notice of Meetings: The agenda for all meetings, including Council Committee or Subcommittee meetings, shall be posted by the City Secretary on the City's official bulletin board and notice of all meetings shall be given by the City Secretary pursuant to the requirements of the Texas Open Meetings Act. 5. (2- 29(e)) PRESIDING OFFICER AND DUTIES 5.1 (1) Presiding Officer: The Mayor, or in the absence of the Mayor, the Mayor Pro -Tem, shall preside as chairman, or presiding officer at all meetings of the Council. In the absence of the Mayor and the Mayor Pro -Tem, the Council shall elect a temporary presiding officer. (Charter, Section 2.03). 5.2 (2) Call to Order: The meetings of the Council shall be called to order by the Mayor, or in his or her absence, by the Mayor Pro -Tem. In the absence of both the Mayor and the Mayor Pro - Tem, the meeting shall be called to order by the City Secretary, and a temporary presiding officer shall be elected as provided above. 5.3 (3) Preservation of Order: The presiding officer shall preserve order and decorum, and confine members in debate to the question under discussion. The presiding officer shall call upon the Sergeant -at -Arms as necessary to enforce compliance with the rules contained herein. 5.4 (4) Points of Order: The presiding officer shall determine all points of order, subject to the right of any member to appeal to the Council. If any appeal is taken, the question shall be, "Shall the decision of the presiding officer be sustained ?" If a majority of the members present vote "No," the ruling of the chair is overruled; otherwise, it is sustained. PAGE 6 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc 5.5 (5) Questions to be Stated: The presiding officer shall state all questions submitted for a vote and announce the result. A roll call vote shall be taken upon the request of any member, and upon the passage of all ordinances and resolutions. 5.6 (6) Substitution for Presiding Officer: The presiding officer may call any other member to take his or her place in the chair, such substitution not to continue beyond adjournment. 5.7 (7) Call for Recess: The presiding officer may call for a recess of up to fifteen (15) minutes at regular intervals of approximately one hour at appropriate points in the meeting agenda, or if requested by any two members. 6. 2 -29 (f)(4)(5) ORDER OF BUSINESS 6.1 (1) Agenda: The order of business of each meeting shall be as contained in the agenda prepared by the City Manager, which shall be reviewed and approved by an Agenda Committee composed of the Mayor, the Mayor Pro Tem, and the City Manager. When items are removed from the consent agenda and placed on the regular agenda by members of the Council, the removed items shall be taken up in the order of removal right after the consent agenda. Placement of items on the agenda shall be governed by this ordinance; provided that if a Council member has an "emergency" item that the Council member believes should be placed on the next regular or special meeting agenda, the placement must be approved by two members of the Agenda Committee or at the direction of a majority of the Council. Conduct of business at special meetings will likewise be governed by an agenda and these Rules of Procedure. 6.2 (2) Pledge of Allegiance: _ Each agenda shall provide an item for the recital of the "Pledge of Allegiance" at the regularly scheduled city council meetings. This item shall begin with the recital of the pledge of allegiance for the United States flag and shall follow with a recital of the pledge of allegiance for the Texas state flag in accordance with Section 3 100. 101 of the TEx. GOV'T CODE. 6.3 (3) Presentations by Members of Council or City Manager: The agenda shall provide a time when the Mayor or any Council member may bring before the Council any business that he or she feels should be deliberated upon by the Council at a future Council meeting. These matters need not be specifically listed on the agenda, but discussion and formal action on such matters shall be deferred until a subsequent Council meeting. Any member may suggest an item for discussion at a future work session. The City Manager or City staff shall only respond preliminarily on this item at the work session. If the City Council believes the item requires a more detailed review, the Council will give the City Manager or City Staff direction to place the item on a future regular meeting agenda and advise staff as to the background materials to be desired at such meeting. The City Council may receive from the City Manager or City staff or a member of the City Council reports about items of community interest including expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen, except that a discussion regarding a change in the status of a person's public office or public employment is not an honorary or salutary recognition for purposes of this subdivision; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or PAGE 7 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; and announcements involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda so long as authorized by the Texas Open Meetings Act. 6.4 (4) Presentations from Members of the Public: a. Reports from Members of the Public: Any person who wishes to place a subject on the Council agenda at regular City Council meetings shall advise the City Manager's office of that fact and the specified subject matter which he or she desires to place on the agenda no later than 5:00 p.m. Wednesday prior to the Council meeting at which he or she wishes the designated subject to be considered. Such reports shall be heard either at the beginning of the regular meeting of the City Council, or later on the council's agenda at a place determined by the Agenda Committee in light of the length of the agenda and the anticipation of time needed for the agenda items under consideration. Placement of citizen reports at the beginning of the agenda shall be determined by a rule of rotation as follows: Every member of the public will be given an opportunity for placement of their report at the beginning of the regular city council meeting once every six (6) months; should a citizen desire to present reports more frequently than once every 6 months, such reports will be heard by the council at the time determined by the Agenda Committee after the calling of an agenda item posted for such purpose; and speakers will be assigned to the first part of the meeting on a first come, first served basis with a limit of three (3) speakers assigned to this early forum. It is the intent of the rule of rotation to better manage the time of the City Council members, the city staff, and to fashion some more available and convenient time for all members of the public to address the City Council on a non - discriminatory and rotating basis. No person may fill out a "request to speak" form in order to speak or comment on another person's report, which is given at the same Council meeting. An announcement may be made, prior to the time for reports from members of the public on the agenda, summarizing the main portions of the Rules and subsection (c), "Code of Conduct" as they may apply to members of the public speaking to the Council. Any speaker providing a report shall speak for no longer than four (4) minutes on all items that he or she may bring before the Council at each meeting. b. Work Session or Workshop Items: As it concerns the workshop agenda, citizens or other interested persons may not participate in the session unless invited to do so by the Mayor. If the Mayor invites citizens to participate in a work session, their participation will cease at the point the Mayor closes the session to public input to allow the Council to give City staff direction as to needed information for the possible future meeting on the item. Citizens should be advised of the nature of the work session, but that their input on these items is premature until such item is placed upon a City Council agenda for final action. The purpose of this procedure is to allow the citizens attending the regular meeting the opportunity of hearing the views of their fellow citizens in a more formal setting. Any citizen may supply the City Council a written statement or report regarding the citizen's opinion on a matter being discussed in a work session. c. Speaking on Consent and Re Agenda AgAgenda Items: Any person who wishes to address the Council regarding a non -public hearing regular or consent agenda item that is on the Council's agenda, shall complete a "request to speak" form asking to speak regarding the item and shall return PAGE 8 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc it to the City Secretary. On consent items, the request to speak card shall be submitted prior to the citizen comment on consent agenda items at the beginning of the City Council meeting. On regular agenda items, the request to speak card shall be submitted prior to the time the City Council considers the item. The Mayor will call upon the person who desires to speak. 1) Consent Agenda Items: When consent agenda items are posted on an agenda, citizens or other interested persons will be allowed to make citizen comment immediately after the opening of the City Council meeting and prior to workshop or work session items on the agenda. Consent agenda items are generally routine in nature, so comment at this time facilitates the regular council meeting where no citizen comment on consent agenda items will be permitted, unless the item is removed from the consent agenda by a member of the Council to be considered as an individual item during the regular meeting. Speakers will be allowed three (3) minutes per speaker and may comment on any or all consent agenda items so long as any speaker's time does not exceed a total of three (3) minutes. 2) Re During Agenda Items: DurAgenda Items: During the regular session of the City Council meeting, any citizen or interested person may comment on an item posted on the agenda for final action. The Mayor will call upon the person to speak. Speakers will be allowed three (3) minutes per speaker as to any particular agenda item being considered by the City Council. d. Public Hearings: Any person who wishes to address the Council at a public hearing is encouraged to complete a "request to speak" form and return it to the City Secretary before the applicable hearing. The Mayor will call upon the person to speak. Speakers will be allowed three (3) minutes per speaker as to any public hearing item; however, applicants and their agents on public hearing items shall be allowed to speak for no longer than five (5) minutes. e. Groups or Organizations: Any group or organization comprised of ten (10) or more members present in the City Council Chambers who wishes to address the Council at a public hearing or on a non -public hearing agenda item shall designate a representative to address the City Council and shall limit their remarks to ten (10) minutes or less. The group or organization shall turn in a written designation to the City Secretary prior to the commencement of the meeting identifying the representative who will address the City Council on behalf of the group or organization. f Discretionary Time: At the discretion of the presiding officer or a majority of the City Council, any speaker may be granted an extension of time to speak. g. AudioNisual Aids: Any citizen desiring to use audio /visual aids during presentations to Council shall submit such presentation to the City Secretary 24 hours prior to the meeting where the presentation will occur. 6.6 (5) Presentation of Proclamations: The agenda may provide a time for the presentation of proclamations. The Mayor or presiding officer may deliver and present proclamations upon the PAGE 9 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedures 2014.doc request of citizens. Proclamations may encompass any activity or theme except that proclamations with a theme religious or partisan in nature shall not be presented. Moreover, proclamations shall not be used for any commercial or advertising purpose. 7. (2- 29(g)) CONSIDERATION OF ORDINANCES, RESOLUTIONS, AND MOTIONS 7.1 (1) Printed or Typewritten Form: All ordinances and resolutions shall be presented to the Council in printed, typewritten or electronic form. The Council may, by proper motion, amend any ordinance or resolution presented to it at the meeting at which it is presented or direct that the amended ordinance be placed on the next or any future Council Agenda for adoption. 7.2 (2) City Attorney to Approve: All ordinances, resolutions, and contracts and amendments thereto, shall be approved as to form and legality by the City Attorney, or he or she shall file a written opinion on the legality of such ordinance, resolution or contract prior to submission to the Council. (Charter, Section 6.02). 7.3 (3) Distribution of Ordinances and Resolutions: The City Manager shall prepare copies of all proposed ordinances and resolutions for distribution to all members of the Council at the meeting at which the ordinance or resolution is introduced, or at such earlier time as is expedient. 7.4 (4) Recording of Votes: The yeas and nays shall be taken upon the passage of all ordinances and resolutions and the vote of each member shall be recorded in the minutes. (Charter, Section 2.06 (b)). 7.5 (5) Majority Vote Required: An affirmative vote of four (4) members is necessary to repeal any ordinance or take any official action in the name of the City except as otherwise provided in the Charter, by the laws of the State of Texas, or these Rules. (Charter, Section 2.06). 7.5.1(a) Tie -Vote: Matters voted on by the City Council which end in a tie -vote shall automatically be placed on each subsequent Council meeting agenda until a full Council is present. 7.6 (6) Demand for Roll Call: Upon demand of any member, the roll shall be called for yeas and nays upon any question before the Council, with the exception of those circumstances set forth in Section 7.12, The Previous Question. It shall not be in order for members to explain their vote during the roll call. 7.7 (7) Personal Privilege: The right of a member to address the Council on a question of personal privilege shall be limited to cases in which his or her integrity, character, or motives are assailed, questioned, or impugned. 7.8 (8) Dissents and Protests: Any member shall have the right to express dissent from or protest against any ordinance or resolution of the Council and have the reason therefor entered upon the minutes. Such dissent or protest may be filed in writing, and presented to the Council not later than the next regular meeting following the date of passage of the ordinance or resolution objected to. PAGE 10 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc 7.9 (9) Voting Required: No member shall be excused from voting except for lack of information and except on matters involving the consideration of his or her own official conduct, or where his or her personal interests are involved in accordance with Chapter 171, TEx. Loc. GOV'T CODE (Vernon 2014), and in these instances he or she shall abstain. Any member prohibited from voting by personal interest shall announce this at the commencement of consideration of the matter and shall not enter into discussion or debate on any such matter, shall leave the meeting room, and shall file an affidavit of recusal. The member having briefly stated the reason for his or her request, the excuse from voting shall be made without debate. 7.10 (10) Order of Precedence of Motions: a. The following motions shall have priority in the order indicated: 1. Adjourn (when unqualified) and is not debatable and may not be amended; 2. Take a recess (when privileged); 3. Raise a question of privilege; 4. Lay on the table; 5. Previous question (2/3 vote required); 6. Limit or extend limits of debate (2/3 vote required); 7. Postpone to a certain time; 8. Commit or refer; 9. Amend; 10. Postpone indefinitely; 11. Main Motion. b. The first two motions are not always privileged. To adjourn shall lose its privilege character and be a main motion if in any way qualified. To take a recess shall be privileged only when other business is pending. c. A motion to adjourn is not in order: 1. When repeated without intervening business or discussion; 2. When made as an interruption of a member while speaking; 3. While a vote is being taken. PAGE 11 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc d. Only certain motions may be amended as provided in the most current edition of Robert's Rules of Order, revised. A motion to amend shall be undebatable when the question to be amended is undebatable. 7.11 (11) Reconsideration: A motion to reconsider any action of the Council can be made not later than the next succeeding official meeting of the Council. Such a motion can only be made by a member who voted with the prevailing side. It can be seconded by any member. In order to comply with the Texas Open Meetings Act, any Council member who wishes to make such a motion at a meeting succeeding the meeting where the action was taken shall notify the City Manager to place the item for reconsideration on the Council agenda. No question shall be twice reconsidered, except by unanimous consent of the Council, except that action related to any contract may be reconsidered at any time before the final execution thereof. A matter which was not timely reconsidered in the manner provided by this section or was reconsidered but the action originally taken was not changed by the Council cannot be reintroduced to the Council or placed on a Council meeting agenda for a period of six (6) months unless this rule is suspended as provided for in these Rules of Procedure. 7.12 (12) The Previous Question: When the previous question is moved and seconded, it shall be put as follows: "Shall the main question be now put ? ". There shall then be no further amendment or debate; except that nothing herein shall allow the previous question to be called prior to a least one opportunity for each member of the Council to speak on the question before the Council. Any pending amendments shall be put in their order before the main question. If the motion for the previous question is lost, the main question remains before the Council. An affirmative vote of 2/3 of the Council shall be required to move the previous question. To demand the previous question is equivalent in effect to moving "That debate now cease, and the Council shall immediately proceed to vote on the pending motion ". In practice, this is done with the phrase "Call for the question ", or simply saying "Question ". 7.13 (13) Withdrawal of Motions: A motion may be withdrawn, or modified, by its movant without asking permission until the motion has been stated by the Presiding Officer. If the movant modifies his or her motion, the seconding council member may withdraw his or her second. After the question has been stated, the movant shall neither withdraw it nor modify it without the consent of the Council. The subject different from that under consideration shall be admitted under color of amendment. A motion to amend an amendment shall be in order, but one to amend an amendment to an amendment shall not be in order. 7.14 (14) Appropriations of Money: Before formal approval by the Council of motions providing for appropriation of money, information must be presented to the Council showing purpose of the appropriation. In addition, before finally acting on such an appropriation, the Council shall obtain a report from the City Manager as to the availability of funds and his or her recommendations as to the desirability of the appropriation. 7.15 (15) Transfer of Appropriations: At the request of the City Manager, at any time during the fiscal year, the Council may by resolution transfer an unencumbered balance of an appropriation made for the use of one department, division, or purpose; but no transfer shall be PAGE 12 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc made of revenues or earnings of any non -tax supported public utility to any other purpose. 8. (2- 29(h)) CREATION OF COMMITTEES, BOARDS AND COMMISSIONS 8.1 (1) Council Committees: The Council may, by resolution and as the need arises, authorize the appointment of Council committees. Any committee so created shall cease to exist when abolished by resolution of the Council. Council Committees shall comply with the Texas Open Meetings Act. 8.2 (2) Citizen Boards, Commissions, and Committees: The Council may create other Committees, Boards and Commissions to assist in the conduct of the operation of the City government with such duties as the Council may specify not inconsistent with the City Charter or Code. Creation of such Committees, Boards and Commissions and memberships and selection of members shall be by Council resolution if not otherwise specified by the City Charter or Code. Any Committee, Board, or Commission so created shall cease to exist when abolished by a resolution approved by the Council. No Committee so appointed shall have powers other than advisory to the Council or to the City Manager, except as otherwise specified by the Charter or Code. 8.3 (3) Appointments: a. Individual City Council members making nominations for members to citizen boards and commissions will consider interested persons on a citywide basis. b. The City Council will make an effort to be inclusive of all segments of the community in the board and commission appointment process. City Council members will consider ethnicity, gender, socio- economic levels, and other factors to ensure a diverse representation of Denton citizens. c. The City Council will take into consideration an individual's qualifications, willingness to serve, and application information in selecting nominations for membership to each board and commission. d. In an effort to ensure maximum citizen participation, City Council members will continue the general practice of nominating new citizens to replace board members who have served three consecutive terms on the same board per the provisions of Denton Code of Ordinances, Sec. 2- 65. e. Each City Council member will be responsible for making nominations for board and commission places assigned to him or her, which shall correspond to the City Council member's place. Individual City Council members will make nominations to the full City Council for the governing body's approval or disapproval. 8.4 (4) Rules of Procedure: Board, Commission and Committee members shall comply with the provisions of Article H of Chapter 2 of the Code of Ordinances. Each Board, Commission and Committee member shall be provided a copy of these rules of procedure and a copy of the City of Denton Handbook for Boards, Commissions and Committees, which shall govern operational PAGE 13 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc procedures of such Boards, Commissions and Committees. 9. (2 -29 (i)) VOTES REQUIRED Questions on which the voting requirement is varied by the Charter, State Statutes and these rules are listed below: 9.1 (1) Charter and State Statutory Requirements: a. Charter Amendment - Five Votes: Ordinances submitting proposed Charter amendments must be adopted by a two - thirds vote of the Council. (TEX. CONST. art. XI, §3 and Chapter 9, TEx. Loc. Gov'T CODE (Vernon 2014.) For a seven member Council, this means five members must vote affirmatively. b. Levying Taxes - Five Votes: Ordinances providing for the assessment and collection of certain taxes require the approval of two - thirds of the members of the Council (TEx. Tax CODE §302.101 (Vernon 2014)). c. Changing Paving Assessment Plans - Five Votes: Changes in plans for paving assessment require a two- thirds vote of the Council (TEx. TRANSP. CODE §313.053(e) (Vernon 2014)). d. Changes in Zoning Ordinance or Zoning Classifications: In cases of a written protest of a change in a zoning regulation or zoning classification by the owners of twenty (20 %) percent or more either of the area of the lots included in such proposed change, or of the lots immediately adjoining the same and extending two hundred feet (200') therefrom, such amendment shall not become effective except by the favorable vote of three - fourths (3/4) of all members of the City Council; further, three - fourths (3/4) of all the members of the City Council is required to override the decision of the Planning and Zoning Commission that a zoning change be denied (TEX. Loc. Gov'T CODE § 211.066 Tex. (Vernon 2014) and Section 35.3.4.C.(4) Denton City Code (Development Code)). Three- fourths (3/4) of all the members of the City Council is six (6) votes. e. Amendment of Tax Abatement Policy: The guidelines and criteria adopted as the City's Tax Abatement Policy may be amended or repealed by a vote of three - fourths (3/4) of all members of the City Council (TEx. Tax CODE §312.002(c) (Vernon 2014)). 10. (2 -290)) SEVERABILITY CLAUSE If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 2. That Ordinance No. 2011 -038 is repealed. PAGE 14 S:Tegal \Our Documents \0rdinances \14 \CC Rules of Procedures 2014.doc SECTION 3. That this Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12014. ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY CHRIS WATTS, MAYOR PAGE 15 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 2011.docx ORDINANCE NO. AN ORDINANCE REPEALING ORDINANCE NO. 2011 -038 AND QRr)l "NGF- ` 24W-34 ' ° T� T' ° T "�'?°TT'?�°T'"ENACTINQ A NEW SECTION 2 -29 OF THE CITY OF DENTON CODE OF ORDINANCES RELATING TO RULES OF PROCEDURE FOR THE CITY COUNCIL OF THE CITY OF DENTON; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton desires to conduct the City Council meetings of the City of Denton in the most efficient and time effective manner; and WHEREAS, the City Council also desires to allow open dialogue by citizens of the community regarding the business of city government; and — WHEREAS fe ¢ _ , � the City Council desires to streamline the City Council meetings, n -and facilitate citizen's access to make comments to their local governing body; PF �� NOW THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That Section 2 -29 of the City Code, known as the Denton City Council Rules of Procedure, is hereby amew4edenacted to read as follows: 1._ (2- 29(a)) AUTHORITY 1.1(1) Chart er: Pursuant to the provisions of Section 2.07 of the Charter of the City of Denton, Texas, the City Council hereby enacts these rules of procedure for all meetings of the City Council of the City of Denton, Texas. During any meeting, a reasonable opportunity shall be given for citizens to be heard under these rules. These Rules of Procedure are enacted as guidelines to be followed by all persons in the Council Chamber including the city administrative staff, news media, and visitors. 2.-(2-29(b)) GENERAL RULES 2.1 (1) Meetings to be Public: All official meetings of the Council and Council committees and subcommittees, except closed meetings permitted by the provisions of the Texas Open Meetings Act, Chapter 551 �� , "�'��TEx. Gov' Co l)I (Vernon 2014), as amended, shall be open to the public. S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 201 Ldocx 2.2 (2) Quo rum: Four members of the Council shall constitute a quorum for the transaction of business. (Charter, Section 2.06) 2.3 (3) Compelling Attendance: No member shall be excused from attendance at a Council meeting except for good and valid reasons. It will be the duty of the Council member to notify the City Secretary prior to the meeting at which he or she is going to be absent. The City Secretary will record each Council member as being present or absent as a part of the minutes prepared for each Council meeting. 2.4 (4) Misconduct: The Council may punish its own members for misconduct consistent with any Ethics Policy adopted by the Council. 2.5 (5) Minutes of Meetings: An account of all proceedings of the Council shall be kept by the City Secretary and shall be entered in a book constituting the official record of the Council. A certified agenda shall be prepared and shall be approved by the Mayor for all closed meetings for which a certified agenda is required to be kept in accordance with Q P tl�e Texas Open Meetin�ct. 2.6 (6) Questions to Contain One Subject: All questions submitted for a vote shall contain one subject, except the City Council may approve all items which are on the consent agenda in one motion, regardless of how many subjects are contained in the consent agenda, so long as all items have been properly posted in accordance with the Texas Open Meetings Act and have not been removed from the consent agenda by a Council member. If two or more points are involved, any member may require a division, if the question reasonably admits of a division. 2.7 (7) Right e4to Floor: Any member desiring to speak shall be recognized by the Chairperson, and shall confine his or her remarks to the subject under consideration or to be considered. No member shall be allowed to speak more than once on any one subject until every member wishing to speak shall have spoken. 2.8 (8) City Manager: The City Manager, or Acting City Manager, shall attend all meetings of the Council unless excused. He or she may make recommendations to the Council and shall have the right to take part in all discussions of the Council, but shall have no vote. (Charter, Section 5.03 (d)). 2.9 (9) City Attorney: The City Attorney, or Acting City Attorney, shall be available upon request for all meetings of the Council unless excused and shall, upon request, give an opinion, either written or oral, on questions of law. The City Attorney shall act as the Council's parliamentarian. 2.10 (10) City Secretary: The City Secretary, or Acting City Secretary, shall attend all meetings of the Council unless excused, and shall keep the official minutes and perform such other duties as may be requested by the Council. 2.11 (11) Officers and Employees: Any officer or employee of the City, when requested by PAGE 2 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 201 Ldocx the City Manager, shall attend any meeting of the Council. If requested to do so by the City Manager, such employee may present information relating to matters before the Council. 2.12 (12) Rules of Order: These rules govern the proceedings of the Council in all cases, except that where these rules are silent, the most recent Edition of Robert's Rules of Order r shall govern. 2.13 (13) Suspension of Rules: Any provision of these rules not governed by the City Charter or other City Code provisions may be temporarily suspended by the affirmative vote of four members of the Council. The vote on any such suspension shall be taken by yeas or nays and entered into the minutes of the Council. 2.14 (14) Amendment of Rules: These rules may be amended, or new rules adopted by the affirmative vote of four members of the Council, provided that the proposed amendments or new rules shall have been introduced before the City Council at a prior Council meeting. 3.-(2-29(c)) CODE OF CONDUCT 3.1 (1) Council members: a. During Council meetings, Council members shall preserve order and decorum and shall neither by conversation or otherwise delay or interrupt the proceedings nor refuse to observe the rules of the Council. b. A Council member, once recognized, shall not be interrupted while speaking unless called to order by the Mayor or presiding officer, unless a point of order is raised by another member or the parliamentarian, or unless the speaker chooses to yield to questions from another member. If a Council member is called to order while he or she is speaking, he or she shall cease speaking immediately until the question of order is determined. If ruled to be in order, he or she shall be permitted to proceed. If ruled not to be in order, he or she shall remain silent or shall alter his or her remarks so as to comply with rules of the Council. 3.2 (2) Administrative Staff: a. Members of the Administrative staff and employees of the City shall observe the same rules of procedure and decorum applicable to members of the Council, and shall have no voice unless and until recognized by the Chair. b. While the presiding officer shall have the authority to preserve decorum in meetings as far as staff members and City employees are concerned, the City Manager also shall be responsible for the orderly conduct and decorum of all City employees under his or her direction and control. c. The City Manager shall take such disciplinary action as may be necessary to insure that such decorum is preserved at all times by City employees in Council meetings. d. All remarks and questions addressed to the Council shall be addressed to the Council as a PAGE 3 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 201 Ldocx whole and not to any individual member thereof e. No staff member, other than a staff member having the floor, shall enter into any discussion either directly or indirectly without permission of the presiding officer. 3.3 (3) Citizens: a. Citizens and other visitors are welcome to attend all public meetings of the City Council, and will be admitted to the City Council Chamber or other room in which the City Council is meeting, up to the fire safety capacity of the room. b. All meeting attendees shall conduct themselves with propriety and decorum. Conversations between or among audience members should be conducted outside the meeting room. Attendees will refrain from excessively loud private conversations while the Council is in session. c. Unauthorized remarks from the audience, stamping of the feet, applauding, whistles, yells, and similar demonstrations shall not be permitted. d. Placards, banners, or signs will not be permitted in the City Council Chamber or in any other room in which the City Council is meeting. Exhibits, displays, and visual aids used in connection with presentations to the City Council, however, are permitted. e. Audience members may not place their feet on any chairs in the City Council Chamber or other room in which the City Council is meeting. f Only City Council members and City staff may step onto the dais. g. All people wishing to address the City Council shall first be recognized by the presiding officer and shall limit their remarks to the matter under discussion. h. All remarks and questions addressed to the City Council shall be addressed to the City Council as a whole and not to any individual members. i. Any person addressing the City Council in the City Council Chamber shall do so from the lectern unless physically unable to do so. People addressing the City Council shall not be permitted to approach the dais. If they wish to hand out papers or other materials to the City Council, they should express that desire to the presiding officer, and the City Manager shall direct a staff member to hand out the materials. j. When the time has expired for a presentation to the City Council, the presiding officer shall direct the person speaking to cease. A second request from the presiding officer to cease speaking shall be cause of the removal of the speaker if that person continues to speak. k. Equipment, apparatus, or paraphernalia such as camera tripods, easels, or wheelchairs shall not obstruct, block, or otherwise be located in the doorway, entranceway, or walkways of PAGE 4 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 201 Ldocx the City Council Chambers or of any other room in which the City Council may choose to meet. Representatives of the electronic media may set up cameras and other equipment only in the back of the room. It is permissible for television camera operators to film for short periods of time (several minutes) from the entranceway to the City Council Chambers r &n 44,e eP,n+efft, �. Any radio station, which broadcasts the regular City Council meetings live,, may hook their equipment up at the front of the room as long as it remains out of sight and out of the way. 1. There will be a uniformed City of Denton police officer present at all regular meetings of the City Council. This police officer shall act in the capacity of a security officer /sergeant -at- arms, and shall enforce the meeting rules and act upon the direction of the presiding officer. m. Any person making personal, impertinent, profane, or slanderous remarks, or who becomes boisterous while addressing the City Council or who otherwise violates any of the above - mentioned rules while attending a City Council meeting shall be removed from the room at the direction of the presiding officer, and the person shall be barred from further audience before the City Council during that session of the City Council. If the presiding officer fails to act, any member of the City Council may move to require the offending person's removal, and the affirmative vote of a majority of the City Council shall require the presiding officer to act. The sergeant -at -arms, if so directed by the presiding officer or an affirmative vote of the majority of the City Council, shall remove the offending person from the meeting. 3.4 (4) Enforcement: The City Manager, in the absence of a designated law enforcement officer, shall act as Sergeant _at _Arms for the � Acouncil, and shall furnish whatever assistance is needed to enforce the rules of decorum herein established. 3.5 (5) Seating Arrangement: The City Secretary, City Manager and City Attorney shall occupy the respective seats in the Council Chamber assigned to them by the Mayor, but any two or more members of the Council may exchange seats. 4.-(2-29(d)) TYPES OF MEETINGS PAGE 5 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 2011.docx 4.4 (5) Emergency In Meetings: InMeetings: In case of emergency or urgent public necessity, which shall be expressed in the notice of the meeting, an emergency meeting may be called by the Mayor, the City Manager or by three members of the Council, and it shall be sufficient if the notice is posted PAGE 6 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 201 Ldocx two hours before the meeting is convened. 4.5 (4E) Closed Meetings: The Council may meet in a closed meeting pursuant to the requirements of the Texas Open Meetings Act 24094_,as_�a,� 4.6 (, 7) Recessed Meetings: Any meeting of the Council may be recessed to a later time, provided that no recess shall be for a longer period than until the next re . ' °�¢p� business day. 4.7 (:�8) Notice of Meetings: The agenda for all meetings, including Council Committee or Subcommittee meetings, shall be posted by the City Secretary on the City's official bulletin board and notice of all meetings shall be given by the City Secretary pursuant to the requirements of the Texas Open Meetings Act 5._ (2- 29(e)) PRESIDING OFFICER AND DUTIES 5.1 (1) Presiding Officer: The Mayor, or in the absence of the Mayor, the Mayor Pro -Tem, shall preside as chairman, or presiding officer at all meetings of the Council. In the absence of the Mayor; and the Mayor Pro -Tem, the Council shall elect a temporary presiding officer. (Charter, Section 2.03)). 5.2 (2) Call to Order: The meetings of the Council shall be called to order by the Mayor, or in his or her absence, by the Mayor Pro -Tem. In the absence of both the Mayor and the Mayor Pro - Tem, the meeting shall be called to order by the City Secretary, and a temporary presiding officer shall be elected as provided above. 5.3 (3) Preservation of Order: The presiding officer shall preserve order and decorum, and confine members in debate to the question under discussion. The presiding officer shall call upon the Sergeant -at -Arms as necessary to enforce compliance with the rules contained herein. 5.4 (4) Points of Order: The presiding officer shall determine all points of order, subject to the right of any member to appeal to the Council. If any appeal is taken, the question shall be, "Shall the decision of the presiding officer be sustained2 7 If a majority of the members present vote "No"" �" the ruling of the chair is overruled; otherwise, it is sustained. 5.5 (5) Questions to be Stated: The presiding officer shall state all questions submitted for a vote and announce the result. A roll call vote shall be taken upon the request of any member, and upon the passage of all ordinances and resolutions. 5.6 (6) Substitution for Presiding Officer: The presiding officer may call any other member to take his or her place in the chair, such substitution not to continue beyond adjournment. 5.7 (7) Call for Recess: The presiding officer may call for a recess of up to fifteen (15) minutes at regular intervals of approximately one hour at appropriate points in the meeting agenda, or if requested by any two members. PAGE 7 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 201 Ldocx 6. 2 -29 (f)(4)(5) ORDER OF BUSINESS 6.1 (1) Agenda: The order of business of each meeting shall be as contained in the agenda prepared by the City Manager, which shall be reviewed and approved by an Agenda Committee composed of the Mayor, the Mayor Pro Tem, and the City Manager. When items are removed from the consent agenda and placed on the regular agenda by members of the Council, the removed items shall be taken up in the order of removal right after the consent agenda. Placement of items on the agenda shall be governed by this -S, ° °�ordinance; provided that if a Council member has an "emergency" item that the Council member believes should be placed on the next regular or special meeting agenda, the placement must be approved by two members of the Agenda Committee or at the direction of a majority of the Council. Conduct of business at special meetings likewise be governed by an agenda and these Rules of Procedure. 6.2 (2) Pledge of Allegiance: Each agenda shall provide an item for the recital of the "Pledge of Allegiance" at the regularly scheduled city council meetings. This item shall begin with the recital of the pledge of allegiance for the United States flag and shall follow with a recital of the pledge of allegiance for the Texas state flag in accordance with Section 3 100. 101 of the TEx. GOV'T CODE. 6.3 (3) Presentations by Members of Council or City Manager: The agenda shall provide a time when the Mayor or any Council member may bring before the Council any business that he or she feels should be deliberated upon by the Council at a future Council meeting. These matters need not be specifically listed on the agenda, but discussion and formal action on such matters shall be deferred until a subsequent Council meeting. Any member may suggest an item for discussion at a future work session. The City Manager or City staff shall only respond preliminarily on this item at the work session. If the City Council believes the item requires a more detailed review, the Council will give the City Manager or City Staff direction to place the item on a future regular meeting agenda and advise staff as to the background materials to be desired at such meeting. The City Council may receive from the City Manager or City staff or a member of the City Council reports about items of community interest including expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen, except that a discussion regarding a change in the status of a person's public office or public employment is not an honorary or salutary recognition for purposes of this subdivision; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; and announcements involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda so long as authorized by the Texas Open Meetings Act 6.4 (4) Presentations from Members of the Public: a. Reports from Members of the Public: PAGE 8 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 2011.docx Any person who wishes to place a subject on the Council agenda at regular City Council meetings shall advise the City Manager's office of that fact and the specified subject matter which he or she desires to place on the agenda no later than 5:00 p.m. Wednesday prior to the Council meeting at which he or she wishes the designated subject to be considered. Such reports shall be heard either at the beginning of the regular meeting of the City Council, or later on the council's agenda at a place determined by the Agenda Committee in light of the length of the agenda and the anticipation of time needed for the agenda items under consideration. Placement of citizen reports at the beginning of the agenda shall be determined by a rule of rotation as follows: Every member of the public will be given an opportunity for placement of their report at the beginning of the regular city council meeting once every six (6) months; should a citizen desire to present reports more frequently than once every 6 months, such reports will be heard by the council at the time determined by the Agenda Committee after the calling of an agenda item posted for such purpose; and speakers will be assigned to the first part of the meeting on a first come, first served basis with a limit of three (3) speakers assigned to this early forum. It is the intent of the rule of rotation to better manage the time of the City Council members, the city staff, and to fashion some more available and convenient time for all members of the public to address the City Council on a non - discriminatory and rotating basis. No person may fill out a "request to speak" form in order to speak or comment on another person's report, which is given at the same Council meeting. An announcement may be made, prior to the time for reports from members of the public on the agenda, summarizing the main portions of the Rules and subsection (c), "Code of Conduct" as they may apply to members of the public speaking to the Council. Any speaker Providing; a report shall sneak for no loner than four (4) minutes on all items that lie or sloe may brim before tl�e Council at eacli meeting. J PAGE 9 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 2011.docx 2) n Of the City Council meson r any citizen or Interested person may comment on an item posted on the enda for final action. Tl7e N[ayor wall call upon tl7e person to spe�lc._ S ep leers will be allowed three (� minutes per speal�er as to anpartic ular agenda Item being considered by the City Council. lrearing items sliall be allowed to speak for no longer tlran five (� minutes. d7e. Groups or Qyganizations: Any group or organization comprised of ten-(LO) or more members present in the City Council Chambers who wishes to address the Council at a public hearing or on a non -public hearing agenda item shall designate a representative to address the City Council and shall limit their remarks to ten (10) minutes or less. The group or organization shall turn in a written designation to the City Secretary prior to the commencement of the meeting identifying the representative who will address the City Council on behalf of the group or organization. PAGE 10 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 2011.docx . Audio /Visual Aids: Any citizen desiring to use audio /visual aids durin�Lpresentations to Council shall submit such resentation to tl�e Cit Secretar 241�ours rior to tl�e meetin r where tl�e presentation will Occur. 6.6 (5) Presentation of Proclamations: The agenda may provide a time for the presentation of proclamations. The Mayor or presiding officer may deliver and present proclamations upon the request of citizens. Proclamations may encompass any activity or theme except that proclamations with a theme religious or partisan in nature shall not be presented. Moreover, proclamations shall not be used for any commercial or advertising purpose. 7. (2- 29(g)) CONSIDERATION OF ORDINANCES, RESOLUTIONS, AND MOTIONS 7.1 (1) Printed or Typewritten Form: All ordinances and resolutions shall be presented to the Council in printed, typewritten or electronic form. The Council may, by proper motion, amend any ordinance or resolution presented to it at the meeting at which it is presented or direct that the amended ordinance be placed on the next or any future Council Agenda for adoption. 7.2 (2) City Attorney to Approve: All ordinances, resolutions, and contracts and amendments thereto, shall be approved as to form and legality by the City Attorney, or he or she shall file a written opinion on the legality of such ordinance, resolution or contract prior to submission to the Council. (Charter, Section 6.02). 7.3 (3) Distribution of Ordinances and Resolutions: The City Manager shall prepare copies of all proposed ordinances and resolutions for distribution to all members of the Council at the meeting at which the ordinance or resolution is introduced, or at such earlier time as is expedient. 7.4 (4) Recording of Votes: The yeas and nays shall be taken upon the passage of all ordinances and resolutions and the vote of each member shall be recorded in the minutes. (Charter, Section 2.06 (b)). 7.5 (5) Majority Vote Required: An affirmative vote of four (4) members is necessary to repeal any ordinance or take any official action in the name of the City except as otherwise provided in the Charter, by the laws of the State of Texas, or these Rules. (Charter, Section 2.06). 7.5.1(a) Tie -Vote: Matters voted on by the City Council which end in a tie -vote shall automatically be placed on each subsequent Council meeting agenda until a full Council is present. PAGE 11 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 2011.docx 7.6 (6) Demand for Roll Call: Upon demand of any member, the roll shall be called for yeas and nays upon any question before the Council, with the exception of those circumstances set forth in Section 7.12, The Previous Question. It shall not be in order for members to explain their vote during the roll call. 7.7 (7) Personal Privilege: The right of a member to address the Council on a question of personal privilege shall be limited to cases in which his or her integrity, character, or motives are assailed, questioned, or impugned. 7.8 (8) Dissents and Protests: Any member shall have the right to express dissent from or protest against any ordinance or resolution of the Council and have the reason therefor entered upon the minutes. Such dissent or protest may be filed in writing, and presented to the Council not later than the next regular meeting following the date of passage of the ordinance or resolution objected to. 7.9 (9) Voting Required: No member shall be excused from voting except for lack of information and except on matters involving the consideration of his or her own official conduct, or where his or her personal interests are involved in accordance with Chapter 171, - �-' GOVT GOD NN TEx. Loci. GOV' -I' Co lm', (Vernon 2014), and in these instances he or she shall abstain. Any member prohibited from voting by personal interest shall announce this at the commencement of consideration of the matter and shall not enter into discussion or debate on any such matter ° , shall leave the meeting room and shall file an affidavit of recusal. The member having briefly stated the reason for his or her request, the excuse from voting shall be made without debate. 7.10 (10) Order of Precedence of Motions: a. The following motions shall have priority in the order indicated: 1. Adjourn (when unqualified) and is not debatable and may not be amended; 2. Take a recess (when privileged); 3. Raise a question of privilege; 4. Lay on the table; 5. Previous question (2/3 vote required); 6. Limit or extend limits of debate (2/3 vote required); 7. Postpone to a certain time; 8. Commit or refer; 9. Amend; PAGE 12 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 201 Ldocx 10. Postpone indefinitely; 11. Main Motion. b. The first two motions are not always privileged. To adjourn shall lose its privilege character and be a main motion if in any way qualified. To take a recess shall be privileged only when other business is pending. c. A motion to adjourn is not in order: 1. When repeated without intervening business or discussion; 2. When made as an interruption of a member while speaking; 3. While a vote is being taken. d. Only certain motions may be amended as provided in the most current edition of Robert's Rules of Order, revised. A motion to amend shall be undebatable when the question to be amended is undebatable. 7.11 (11) Reconsideration: A motion to reconsider any action of the Council can be made not later than the next succeeding official meeting of the Council. Such a motion can only be made by a member who voted with the prevailing side. It can be seconded by any member. In order to comply with the Texas Open Meetings Act, any Council member who wishes to make such a motion at a meeting succeeding the meeting where the action was taken shall notify the City Manager to place the item for reconsideration on the Council agenda. No question shall be twice reconsidered, except by unanimous consent of the Council, except that action related to any contract may be reconsidered at any time before the final execution thereof. A matter which was not timely reconsidered in the manner provided by this section or was reconsidered but the action originally taken was not changed by the Council cannot be reintroduced to the Council or placed on a Council meeting agenda for a period of six (6) months unless this rule is suspended as provided for in these Rules of Procedure. 7.12 (12) The Previous Question: When the previous question is moved and seconded, it shall be put as follows: "Shall the main question be now put ? ". There shall then be no further amendment or debate; except that nothing herein shall allow the previous question to be called prior to a least one opportunity for each member of the Council to speak on the question before the Council. Any pending amendments shall be put in their order before the main question. If the motion for the previous question is lost, the main question remains before the Council. An affirmative vote of 2/3 of the Council shall be required to move the previous question. To demand the previous question is equivalent in effect to moving "That debate now cease, and the Council shall immediately proceed to vote on the pending motion ". In practice, this is done with the phrase "Call for the question ", or simply saying "Question ". 7.13 (13) Withdrawal of Motions: A motion may be withdrawn, or modified, by its movant PAGE 13 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 201 Ldocx without asking permission until the motion has been stated by the Presiding Officer. If the movant modifies his or her motion, the seconding council member may withdraw his or her second. After the question has been stated, the movant shall neither withdraw it nor modify it without the consent of the Council. The subject different from that under consideration shall be admitted under color of amendment. A motion to amend an amendment shall be in order, but one to amend an amendment to an amendment shall not be in order. 7.14 (14) Appropriations of Money: Before formal approval by the Council of motions providing for appropriation of money, information must be presented to the Council showing purpose of the appropriation. In addition, before finally acting on such an appropriation, the Council shall obtain a report from the City Manager as to the availability of funds and his or her recommendations as to the desirability of the appropriation. 7.15 (15) Transfer of Appropriations: At the request of the City Manager, at any time during the fiscal year, the Council may by resolution transfer an unencumbered balance of an appropriation made for the use of one department, division, or purpose; but no transfer shall be made of revenues or earnings of any non -tax supported public utility to any other purpose. 8. (2- 29(h))- CREATION OF COMMITTEES, BOARDS AND COMMISSIONS 8.1 (1) Council Committees: The Council may, by resolution and as the need arises, authorize the appointment of Council committees. Any committee so created shall cease to exist when abolished by resolution of the Council. Council Committees sllall comply with the Texas Open Meetings Act. 8.2 (2) Citizen Boards, Commissions, and Committees: The Council may create other Committees, Boards and Commissions to assist in the conduct of the operation of the City government with such duties as the Council may specify not inconsistent with the City Charter or Code. Creation of such Committees, Boards and Commissions and memberships and selection of members shall be by Council resolution if not otherwise specified by the City Charter or Code. Any Committee, Board, or Commission so created shall cease to exist when abolished by a resolution approved by the Council. No Committee so appointed shall have powers other than advisory to the Council or to the City Manager, except as otherwise specified by the Charter or Code. 8.3 (3) Appointments: a. Individual City Council members making nominations for members to citizen boards and commissions will consider interested persons on a citywide basis. b. The City Council will make an effort to be inclusive of all segments of the community in the board and commission appointment process. City Council members will consider ethnicity, gender, socio- economic levels, and other factors to ensure a diverse representation of Denton citizens. c. The City Council will take into consideration an individual's qualifications, willingness to serve, and application information in selecting nominations for membership to each board and PAGE 14 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 2011.docx commission. d. In an effort to ensure maximum citizen participation, City Council members will continue the general practice of nominating new citizens to replace board members who have served three consecutive terms on the same board per the provisions of Denton Code of Ordinances, Sec. 2- 65. e. Each City Council member will be responsible for making nominations for board and commission places assigned to him or her, which shall correspond to the City Council member's place. Individual City Council members will make nominations to the full City Council for the governing body's approval or disapproval. 8.4 (4) Rules of Procedure: Board, Commission and Committee members shall comply with the provisions of Article 4141f of Chapter 2 of the Code of Ordinances. Each Board, Commission and Committee member shall be provided a copy of these rules of procedure and a copy of the City of Denton Handbook for Boards, Commissions and Committees, which shall govern operational procedures of such Boards, Commissions and Committees. 9. (2 -29 (i)) VOTES REQUIRED Questions on which the voting requirement is varied by the Charter, State Statutes and these rules are listed below: 9.1 (1) Charter and State Statutory Requirements: a. Charter Amendment - Five Votes: Ordinances submitting proposed Charter amendments must be adopted by a two- thirds vote of the Council. ( TEx. CONST. art. XI, -, 3 s Ge*s bVd4e,, and Chapter 9, T°° �' ^ °' ��TEx. Loc. Gov'T CODE (Vefff W 2049Vernon 2014.) For a seven member Council, this means five members must vote affirmatively. b. Leaving Taxes - Five Votes: Ordinances providing for the assessment and collection of certain taxes require the approval of two- thirds of the members of the Council ( -See4e 4� T1 x. TAx CODE*(`e §00�]Vernon 0 c. Changing Paving Assessment Plans - Five Votes: Changes in plans for paving assessment require a two- thirds vote of the Council ( TEx. TIRANSl:. CODE �313.053(e) d. Changes in Zoning Ordinance or Zoning Classifications: In cases of a written protest of a change in a zoning regulation or zoning classification by the owners of twenty (20 %) percent or more either of the area of the lots included in such proposed change, or of the lots immediately adjoining the same and extending two hundred feet (200') therefrom, such amendment shall not become effective except by the favorable vote of three - fourths (3/4) of all members of the City Council; f�rtl�er, three- fourths (3/4) of all tl�e members of the City Council is required to override the decision of the Planning and Zoning Commission that a zoning change be denied (S� �TEx. Loc. Gov'T CODE 211.066 Tex. (Vernon 2014) and Section 35.3.4.C.(4) PAGE 15 S:Tegal \Our Documents \Ordinances \14 \CC Rules of Procedure 2014 compared to 2011.docx Denton City Code (Development Code}��. Three- fourths (3/4) of all the members of the City Council is six (6) votes. e. Amendment of Tax Abatement Policy: The guidelines and criteria adopted as the City's Tax Abatement Policy may be amended or repealed by a vote of three - fourths (3/4) of all members of the City Council (mac �T1 x. Tax CODE ;rg=s---� 7 . §312.002(c) (Vernon 2014 10. (2 -290)) SEVERABILITY CLAUSE f any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 2. That Ordinance -038 is repealed. SECTION 3. That this Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 24142014. MAYOR I ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY M A R4r rxT �T Try 'C HRN WATTS, PAGE 16 2015 CITY COUNCIL MEETING SCHEDULE Draft IMonday January 5 1 uncheon "Tuesday January 6 Work/Regular Session "Tuesday January 13 2nd "Tuesday Session "Tuesday January 20 I Meetling MI._ King, Jr. Day, 1/19 � USCIM, Washing-ton, DC, 1/21 23 "Tuesday January 27 INo Meetling 4th "Tuesday Monday February 2 Tuesday February 3 Tuesday February 10 Tuesday February 17 Tuesday February 24 Luncheon Work/Regular Session 2nd Tuesday Session Work/Regular Session No Meeting IMonday IMarch 2 1 uncheon "Tuesday IMarch 3 Work/Regular Session "Tuesday IMarch 10 INo Meetling "Tuesday IMarch 17 INo Meetling "Tuesday IMarch 24 INo Meetling "Tuesday IMarch 31 INo Meetling Monday April 6 Luncheon Tuesday April 7 Work/Regular Session Tuesday April 14 2nd Tuesday Session Tuesday April 21 Work/Regular Session Tuesday April 28 No Meeting IMonday IMay 4 1 uncheon "Tuesday IMay 5 Work/Regular Session "Tuesday IMay 12 2nd "Tuesday Session "Tuesday IMay 19 Election Meeting "Tuesday IMay 26 INo Meetling Monday Junel Luncheon Tuesday June 2 Work/Regular Session Tuesday June 9 2nd Tuesday Session Tuesday June 16 Work/Regular Session Tuesday June 23 No Meeting Tuesday June 30 No Meeting IMonday July 6 INo Luncheon "Tuesday July '7 INo Meetling "Tuesday July 14 INo Meetling "Tuesday July 21 Work/Regular Session "Tuesday July 28 INo Meetling Monday August 3 Budget Workshop Tuesday August 4 Work/Regular Session Tuesday August 11 2nd Tuesday Session Tuesday August 18 Work/Regular Session Tuesday August 25 No Meeting 4th Tuesday I Denton County Days, 2/23-24 N11 C, Washing-ton, DC, 3/7 11 Spring Break, 3/16 20 4th "Tuesday 5th "Tuesday 4th Tuesday installation of CC IMembers Only 4th "Tuesday � (Memorial Day, 5/25 4th Tuesday 5th Tuesday 4th "Tuesday 4th Tuesday 2015 CITY COUNCIL MEETING SCHEDULE Tuesday September 1 Work /Regular Session Monday September 7 No Luncheon Tuesday September 8 No Meeting Tuesday September 15 Work /Regular Session Tuesday September 22 No Meeting Tuesday September 29 No Meeting Monday October 5 Luncheon Tuesday October 6 Work /Regular Session Tuesday October 13 2nd Tuesday Session Tuesday October 20 Work /Regular Session Tuesday October 27 No Meeting Monday November 2 Luncheon Tuesday November 3 Work /Regular Session Tuesday November 10 2nd Tuesday Session Tuesday November 17 Work /Regular Session Tuesday November 24 No Meeting Tuesday December 1 Work /Regular Session Monday December 7 Luncheon Tuesday December 8 2nd Tuesday Session Tuesday December 15 Work /Regular Session Tuesday December 22 No Meeting Tuesday December 29 No Meeting Labor Day Holiday 4th Tuesday TML, San Antonio, TX, 9/22 -25 5th Tuesday ICMA, Seattle, WA, 9/27 -30 4th Tuesday NLC, Nashville, TN, 11/4 -7 4th Tuesday I Thanksgiving, 11/26 -27 4th Tuesday I Christmas, 12/24 -25 5th Tuesday A Monday luncheon has been scheduled for the first Monday of each month. The months in purple have only one action meeting. [10/01/141 I fol" � , � � off"', � � \ � � � � �. I � � : \ \ �} 2� : \ 0 co CL , m > > « > � , � � off"', � � \ � � � � �. I � � !�2 19 � } � } � I � \ � \ � } \� I \� All � � \ \� \�( }�2 k� � \ � } � \ � } � } � \ (�: WL ullf/c/,// OfIll". omolfll off"', cnJ UJL I 19 0 4 w I E09 1 4 �1- J ; WL l,,. OfIll". omolfll off"', cnf)111111�1` 1 f , CY City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com D EN'FON File #: ID 14 -0626, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Economic Development CM/ ACM: John Cabrales, Jr. Date: October 14, 2014 SUBJECT Receive a report, hold a discussion, and give staff direction regarding innovation districts and a technology recruitment initiative for Denton. BACKGROUND Under the direction of the Economic Development Partnership Board (EDP) and the City Council, the Economic Development Department has been in the process of developing new recruitment strategies and programs. One of those initiatives is focused on the recruitment of hi -tech and emerging technology companies, and the support of entrepreneurship and innovation. The objectives of such an initiative would include: • To create knowledge- based, high - paying jobs • To gainfully employ our college graduates in order to keep them living and working in Denton • To support entrepreneurship and innovation • To recruit, create and retain successful innovative businesses • To diversify and strengthen our tax base • To increase the average household income in Denton • To encourage infill development and redevelopment • To create substantial investment in Denton businesses • To develop a workforce that is agile, technologically advanced, and employable • To foster technology solutions to address community -wide needs Since the spring of 2014, a core group of community stakeholders has been meeting regularly to explore partnership opportunities and the creation of a program to fill this specific need in Denton. This group has included representatives from UNT, the City of Denton, TechMill (a local nonprofit organization), the DEC (Dallas Entrepreneur Center), and a variety of interested community members and technology -based business representatives. The Economic Development Partnership Board requested that the City Council receive an update on the progression of those discussions and receive some information about innovation districts and a technology recruitment initiative for Denton that was presented by Rob Justice at their September 9, 2014, Board meeting. Justice is the Director of Global Innovation for Cisco Systems. When he's not traveling the globe implementing programs, he works from his home in Lantana. He and his wife are raising five kids in Denton ISD where Rob volunteers every Friday to teach computer programming in elementary schools. He's been an active community City of Denton Page 1 of 2 Printed on 10/9/2014 File M ID 14 -0626, Version: 1 advocate for this initiative. On October 21, 2014, Bissett will present to City Council details on the initiative and how the newly funded program will move forward. In Closed Session, Bissett will also discuss details of the agreement for a collaborative workspace. PRIOR ACTION In a joint meeting between EDP and the City Council on April 7, 2014, program components were presented and discussed. EDP and the City Council gave staff direction to consider pursuing the initiative and developing the program. The Economic Development Partnership Board received the same information in a Work Session on September 9, 2014, and requested that it be presented to the City Council. FISCAL INFORMATION In a Budget Workshop on July 31, 2014, and in a Budget Work Session on August 19, 2014, the City Council heard a budget request for $220,000 for the formation of this program. The program has been funded for the 2014 -15 Fiscal Year. EXHIBITS Exhibit 1 - The Rise of Innovation Districts, Brookings Institute Article Exhibit 2 - PowerPoint Presentation Respectfully submitted: Aimee Bissett Economic Development Director City of Denton Page 2 of 2 Printed on 10/9/2014 Metropolitan Policy Program EXHIBIT 1 at BROOKINGS IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII The Rise of Innovation Districts,* A New Geography of Innovation in America Bruce Katz and Julie Wagner Introducing Innovation Districts s the United States slowly emerges from the Great Recession, a remarkable shift is occur- ring in the spatial geography of innovation. For the past 50 years, the landscape of innovation has been dominated by places like Silicon Valley— suburban corridors of spatially isolated corporate campuses, accessible only by car, with little emphasis on the quality of life or on integrating work, housing, and recreation. A new complementary urban model is now emerging, giving rise to what we and others are call- ing "innovation districts." These districts, by our definition, are geographic areas where leading -edge anchor institutions and companies cluster and connect with start -ups, business incubators, and accel- erators? They are also physically compact, transit - accessible, and technically -wired and offer mixed - use housing, office, and retail. Innovation districts are the manifestation of mega- trends altering the location preferences of people and firms and, in the process, re- conceiving the very link between economy shaping, place making and social networking.z In recent years, a rising number of innovative firms and talented workers are choosing to congre- gate and co- locate in compact, amenity -rich enclaves in the cores of central cities. Rather than build- ing on green -field sites, marquee companies in knowledge- intensive sectors are locating key facilities close to other firms, research labs, and universities so that they can share ideas and practice 'open innovation." Instead of inventing on their own in real or metaphorical garages, an array of entrepreneurs are starting their companies in collaborative spaces, where they can mingle with other entrepreneurs and have efficient access to everything from legal advice to sophisticated lab equipment. Rather than sub- mitting to long commutes and daily congestion, a growing share of metropolitan residents are choos- ing to work and live in places that are walkable, bike -able, and connected by transit and technology. Led by an eclectic group of institutions and leaders, innovation districts are emerging in dozens of cities and metropolitan areas in the United States and abroad and already reflect distinctive typologies and levels of formal planning. Globally, Barcelona, Berlin, London, Medellin, Montreal, Seoul, Stockholm and Toronto contain examples of evolving districts. In the United States, districts are emerging near anchor institutions in the downtowns and midtowns of cities like Atlanta, Baltimore, Buffalo, Cambridge, Cleveland, Detroit, Houston, Philadelphia, Pittsburgh, St. Louis, and San Diego. They are developing in Boston, Brooklyn, Chicago, Portland, Providence, San Francisco and Seattle where underutilized areas (particularly older industrial areas) are being re- imagined and remade. Still others are taking shape in the transformation of traditional exurban science parks like Research Triangle Park in Raleigh- Durham, which are scrambling to meet demand for more urbanized, vibrant work and living environments. Innovation districts represent a radical departure from traditional economic development. Unlike customary urban revitalization efforts that have emphasized the commercial aspects of development (e.g., housing, retail, sports stadiums), innovation districts help their city and metropolis move up the value chain of global competitiveness by growing the firms, networks, and traded sectors that drive BROOKINGS I May 2014 E 19 Innovation is when new or improved ideas, products, services, technologies, or processes create new market demand or cutting -edge solutions to economic, social and environmental challenges. EXHIBIT 1 broad -based prosperity. Instead of building isolated science parks, innovation districts focus exten- sively on creating a dynamic physical realm that strengthens proximity and knowledge spillovers. Rather than focus on discrete industries, innovation districts represent an intentional effort to create new products, technologies and market solutions through the convergence of disparate sectors and specializations (e.g., information technology and bioscience, energy, or education). Innovation districts are still an early trend that, because of their multi - dimensional nature, has yet to receive a systematic analysis across the United States and other countries. Yet we believe that they have the unique potential during this pivotal post- recession period to spur productive, inclusive, and sustainable economic development. Innovation districts help address three of the main challenges of our time: sluggish growth, national austerity and local fiscal challenges, rising social inequality, and extensive sprawl and continued envi- ronmental degradation. They do so by providing a strong foundation for the commercialization of ideas and the creation and expansion of firms and jobs via proximity and collaboration. They are a vehicle for both revenue growth as well as the more efficient use of existing infrastructure. They offer the prospect of expand- ing employment and educational opportunities for disadvantaged populations given that many districts are close to low- and moderate - income neighborhoods. And, at a time of inefficient land use, they present the potential for denser residential and employment patterns, the leveraging of mass transit, and the repopulation of urban cores. The purpose of this paper is to capture this emerging trend, explore the large forces and local practices and practitioners that are driving it and provide initial guidance to U.S. city and metropolitan leaders on how best to recognize and extend the growth of their own innovation districts, building on the distinctive assets and potential of their economies. The next section of this paper defines innovation districts and offers a typology of places where they are developing. Section III then explains why they matter (namely their role in addressing a range of economic, social and environmental challenges our country now faces) while Section IV describes the profound market, demographic, technological, and cultural forces that are propelling this new spatial geography of innovation. Sections V and VI analyze the multiple assets of innovation districts, and provide real -world guidance and insights for cities trying to start or extend this model in their own communities. The paper concludes by exploring the implications of the innovation district trend for large private companies and institutional investors, federal and state government, and the broader field of urban practitioners. Defining Districts nnovation districts constitute the ultimate mash up of entrepreneurs and educational institu- tions, start -ups and schools, mixed -use development and medical innovations, bike - sharing and bankable investments —all connected by transit, powered by clean energy, wired for digital tech- nology, and fueled by caffeine. They embrace those very attributes of urbanism —what Saskia Sassen calls "cityness" —that were denigrated and often destroyed in the 20th century: complexity, density, diversity of people and cul- tures, and a layering of the old and the new. As Business Week observed in June 2009, "The trend is to nurture living, breathing communities rather than sterile remote, compounds of research silos. "3 Given the vast distinctions in regional economies, the form and function of innovation districts differ markedly across the United States. Yet all innovation districts contain economic, physical, and network- ing assets. When these three assets combine with a supportive, risk - taking culture they create an inno- vation ecosystem —a synergistic relationship between people, firms, and place (the physical geography of the district) that facilitates idea generation and accelerates commercialization. Most innovation districts adhere to one of three general models.5 The "anchor plus" model, primarily found in the downtowns and mid -towns of central cities, is where large scale mixed -use development is centered around major anchor institutions and a rich base of related firms, entrepreneurs and spin -off companies involved in the commercialization of innovation. "Anchor plus" is best exemplified by Kendall Square in Cambridge (and the explosion of growth around BROOKINGS I May 2014 EXHIBIT 1 19 MIT and other nearby institutions like Mass General Hospital), Philadelphia's University City (anchored by The University of Pennsylvania, Drexel University and the University City Science Center), and St. Louis (flanked by Washington University, Saint Louis University, and Barnes Jewish Hospital). Other emerging districts can be found in the Greater Oakland neighborhood of Pittsburgh (around Carnegie Mellon University and the University of Pittsburgh Medical Center), Midtown Atlanta (around Georgia Tech University), downtown and midtown Detroit (around Quicken Loans, the Henry Ford Health System and Wayne State University) and the Texas Medical Center in Houston, Texas. The "re- imagined urban areas" model, often found near or WHO DELIVERS INNOVATION DISTRICTS along historic waterfronts, is where industrial or warehouse districts are undergoing a physical and economic transforma- The list of institutions and individuals that are driving the tion to chart a new path of innovative growth. This change is growth of innovation districts is as varied as the economic powered, in part, by transit access, a historic building stock, and composition of districts themselves. The following list provides their proximity to downtowns in high rent cities, which is then a sample of the leaders at the vanguard of this trend in the supplemented with advanced research institutions and anchor United States and abroad: companies. The model is exemplified by the remarkable regen- eration underway in Boston's South Waterfront, San Francisco's > Mayors and local governments, such as former Mayor Tom Mission Bay, Seattle's South Lake Union area, and the Brooklyn Menino of Boston, former Mayor Joan Clos of Barcelona, Navy Yard. The ambitious plans for the Cornell - Technion Campus and the Stockholm city government. on Roosevelt Island in New York City and Hunters Point in San Francisco also hold great promise. Many of these areas draw > Major real estate developers and major land owners, such from the experiences of 22Ca)Barcelona, a self - proclaimed inno- as Vulcan Real Estate in Seattle's South Lake Union and the vation district that involved the complete re -make of an older Brooklyn Navy Yard. industrial area in the city core .6 The third model, "urbanized science park," commonly found > Managers of research campuses, such as the Research in suburban and exurban areas, is where traditionally isolated, Triangle Park Foundation in Research Triangle Park and the sprawling areas of innovation are urbanizing through increased Texas Medical Center in Houston. density and an infusion of new activities (including retail and restaurants) that are mixed as opposed to separated. North > Anchor companies, such as Quicken Loans in Detroit, Carolina's Research Triangle Park, perhaps the 20th century's Comcast in Philadelphia, and Amazon in Seattle's South most iconic research and development campus, is the strongest Lake Union. validation of this model. In November, 2012, after several years of review and outreach, RTP announced a new 50 -year mas- > Advanced research institutions, such as Washington ter plan to urbanize the quintessential exurban science park, University in St. Louis, Carnegie Mellon in Pittsburgh, Drexel recognizing that its isolated car - dependent environment is no University in Philadelphia, and MIT in Cambridge. longer optimal for spurring innovation and attracting younger talent. The master plan calls for a greater concentration of > Advanced medical campuses, such as the Henry Ford buildings and amenities, including the creation of a vibrant Health System in Detroit and the University of Pittsburgh central district, the addition of up to 1,400 multi - family housing Medical Center in Pittsburgh. units, retail, and the possible construction of a light rail transit line to connect the park with the larger Raleigh- Durham region, > Philanthropic investors, such as the New Economy including the universities? Other science parks actively engaged Initiative and the Kresge Foundation in Detroit and the in urbanization efforts include the University Research Park at former Danforth Foundation in St. Louis. the University of Wisconsin- Madison, the University of Virginia Research Park in Charlottesville and the University of Arizona > Incubators, accelerators, and other economic cultivators, Tech Park in Tucson.8 such as Barcelona Activa in Barcelona, the Cambridge Unlike convention centers or suburban malls, innovation dis- Innovation Center in Cambridge, and the BioGenerator in tricts are not cookie cutter developments; rather, they leverage St. Louis. distinct economic strengths in each metropolitan area. Districts vary not only by type but also in size, from 200 acres in St. Louis > Social networking programmers, such as Venture Cafe to 1000 acres in Boston. They have different avenues for growth, Foundation in Boston and Cambridge and High Tech with some leading with new fields like "tech /information" Campus Eindhoven. (including the burgeoning "app economy "), others leading with life sciences (with clear niches in such fields as nano - technology, BROOKINGS I May 2014 19 EXHIBIT 1 imaging, and robotics), and others still leading with highly creative industries, such as industrial design, media, and architecture. Further, they vary in their urban form and density, the historic pres- ence of transit (one hundred years in the case of Kendall Square, one year in the case of the Texas Medical Center), the presence of housing and retail, and the extent of collaboration with local schools and community organizations. Finally, they are distinctive in their level of geographic and institutional formality, where some, like Boston, are officially designated and branded, while others, like Kendall Square, are growing more organically in response to market forces. This intense variation in innova- tion districts requires practitioners to assess assets and liabilities with clear -eyed objectivity, so that growth strategies can be realistic and customized. Why Innovation Districts Matter _Metropolitan areas in the United States and other mature economies face outsized chal- lenges in the aftermath of the Great Recession. At the most basic level, U.S. cities and metropolitan areas need more and better jobs. According to the March 2014 Brookings _ Metro Monitor, the number of jobs in 61 of the 100 largest U.S. metro areas are still lower than their pre- recession peak; incredibly, job levels in 23 metros are more than 5 percent below their pre- recession peak figures .9 At the same time, the number of people living in poverty and near poverty has grown precipitously in the largest 100 U.S. metros —from 48 million in 2000 to 66 million in 2012 — due not only to the recession but broader trends around wage stagnation and economic restructuring 10 Beyond these economic and social demands, cities are on the front lines of addressing enormous fiscal and environmental challenges given federal gridlock and the absence of leadership in many states. In the face of these challenges, cities and metropolitan areas are experimenting with new approaches to economic development and sustainable development that focus on growing jobs in productive, innovative, and traded sectors of the economy while concurrently equipping residents with the skills — particularly STEM (science, technology, engineering and math) skills —they need to compete for and succeed in these jobs?' These new approaches try to build on the distinctive assets and advan- tages of disparate places rather than merely pursuing heavily subsidized consumption- oriented strate- gies (e.g., building the next sports stadium, convention center, or performing arts facility) that yield low quality jobs or aspiring to unrealistic economic goals ( "becoming the next Silicon Valley "). Innovation districts are a key part of the new wave of local economic development and advance several critical objectives. First, innovation districts further the ability of cities and metropolitan areas to grow jobs in ways that both align with disruptive forces in the economy and leverage their distinct economic position. Innovation districts enable companies, entrepreneurs, workers, researchers and investors to work across disparate sectors and institutions to commercialize ideas and co- invent and co- produce new discoveries for the market. They foster innovation across industries by concentrating people with different knowledge and expertise in dense urbanized areas; experts in technology, for example, work closely with experts in bioscience, finance, education, and energy. Innovation districts are, in essence, the vanguard of a new "convergence economy" which is galvanizing the growth of more competi- tive firms and higher quality jobs and spurring expansion in supportive professional and commercial service sectors. Second, innovation districts can specifically empower entrepreneurs as a key vehicle for economic growth and job creation. Studies show the important role that entrepreneurs and start -up companies play in urban and metropolitan job growth and innovation districts can support this trend in several ways. The rise of collaborative facilities and spaces can, for instance, reduce overhead costs by offering below rate, low risk work spaces and providing technical spaces where exorbitantly expensive technologies are shared. At the same time, imaginative programming and networking can support idea generation and efficiently link young firms to mentors, advisors with specialized expertise, and potential investors. Third, innovation districts can grow better and more accessible jobs at a time of rising pov- erty and social inequality. A substantial number of emerging innovation districts across the United States are close to low- and moderate - income neighborhoods, offering the prospect of expanding BROOKINGS I May 2014 EXHIBIT 1 employment and educational opportunities for disadvantaged populations. Leaders in cutting edge innovation districts are already dedicating resources to revitalize neighborhoods directly through investments in affordable housing, education, infrastructure and improved internet connectivity, and indirectly via enhanced tax revenues. Leaders in these districts are particularly focused on increasing labor market participation of local residents through training for jobs in both the STEM sector as well as retail and service firms. Fourth, innovation districts can reduce carbon emissions and drive denser residential and employment patterns at a time of growing concern with environmentally unsustainable devel- opment. Innovation districts are potential engines for sustainable development since they embrace residential and employment density via the strategic use of transit, historic buildings, traditional street grids, and existing infrastructure. Some districts are going further by using renewable energy as their primary power source and by transforming their buildings, streets, and parks into living labs to test cutting edge sustainable projects in concert with technology firms and entrepreneurs. Finally, innovation districts can help cities and metropolitan areas raise revenues and repair their balance sheets at a time when federal resources are diminishing and many state govern- ments are adrift. Municipal governments generally rely on property, business, and sales taxes for revenue. Innovation districts can generate revenues through increased economic activity, rising housing values and increased demand for goods and services. Increased revenues can then be used to make necessary investments in infrastructure, public safety, affordable housing, local schools, and other necessary services. At time when federal resources are shifting to entitlement programs (e.g., Social Security) and many states are otherwise focused, these types of investments disproportionately fall on local governments. Why Now —The Evolution of Innovation he early rise of innovation districts could constitute the next phase of what one observer has called the "architecture of technology. "72 This architecture was once represented by industrial districts, and later by suburban science parks, both of which were products of the distinctive mix of demographic preferences, cultural norms, and economic imperatives of their times. Similarly, the growth of innovation districts is reflective of forces that are radically altering the requirements and preferences of people and firms that are today engaged in technology driven activities. These shifts are forging new links between economy- shaping, place- making, and network building that were not evident in early models. A. Industrial Districts to Science Parks In the 19th century and early 20th century, industrial districts —areas with high concentrations of manufacturing enterprises commonly engaging in similar or complimentary work — emerged in cit- ies like Manchester, Milan, and Stuttgart in Europe and Baltimore, Cleveland, Detroit, New York, and Philadelphia in the United States. In the United States, these districts straddled the temporal boundary between the early mercantile city and turn -of- the - century industrial metropolis, a period marked by new types and organizational forms of manufacturing activity, innovations in energy and transporta- tion, and rapid urbanization .13 Many cities in fact had multiple districts, which varied by product type, methods of production, power source, and labor force composition 74 Such a clustering of like activi- ties facilitated the supply of materials and parts from one firm to another, and also attracted a large and fluid supply of workers, many of whom lived in the surrounding communities and walked to work. Enmeshed in the urban fabric, these "sub- city" areas thus provided not only a high density of employ- ment opportunities, but essential neighborhood services and social amenities?5 As the 20th century moved forward, the nature of manufacturing activity changed and eventually dispersed —first within regions, and eventually across the globe —and by the mid -1900s production in U.S. and European cities had sharply declined. The foundations of modern technology laid during the preceding decades had, however, enabled the advent of a new era of invention and innovation in science, communications, and information —as well as the rapid suburbanization of housing and commercial activity. BROOKINGS I May 2014 19 19 EXHIBIT 1 In the United States, technological advancement and geographic dispersion together helped drive the creation of innovative enclaves variably referred to as science parks or research parks. Beginning in the 1950s, collaborations of universities, private developers, and government designed and built these clusters of labs and firms with the aim of increasing the commercialization of research and attracting entrepreneurially- oriented scientists from industry and academia 76 The model originated with the Stanford Research Park —in what is now Silicon Valley —and was then expanded to include the development of Research Triangle Park in Raleigh Durham, and later the innovation corridors outside Boston, Philadelphia, and Washington D.C. Unlike urban industrial districts, these suburban parks were built as spatially isolated corporate campuses accessible only by car, mirroring the patterns of residential and commercial growth that dominated the post war landscape. They also reflected a research culture and patenting policies that encouraged secrecy. As such, they were generally closed innovation systems in which firms and scientists carefully guarded their ideas, and where interactions between them were limited. B. A New Geography of Innovation Innovation districts maintain elements of these earlier models but embody a new interplay of form and function that the modern innovation economy demands, and in turn supports. Like their predeces- sors, these districts grow out of a powerful set of economic, cultural, and demographic forces that are reshaping both how and where people live and work. The emergence of innovation districts has been observed by a number of scholars and practitioners, many of whom have offered initial theories for their development. Research led by Thomas Hutton in over seven global cities found a rise of new industrial clusters within the inner city to "constitute important aspects of the spatiality of the New Economy," making four classifications of specialized production .17 A research team at MIT's Department of Urban Studies and Planning likewise identified discrete geographic clusters of creative industries, life sciences, and applied sciences within large - scale real estate development projects. Defined as "New Century City Developments," these innovative clusters are "driven by inter - organization and cross - industry collaboration, open systems for R &D, and workers who have the aptitudes and skills required by the networked, knowledge economy. "18 George Bugliarello of Polytechnic University in New York observed the emergence of "urban knowledge parks," concluding that these urban parks develop around a knowledge institution in a city, provide public space or spaces for community activities, and possess high levels of density. "79 In September, 2013, the American Institute of Architects released a report on Innovation Districts, describing them as "creative, energy -laden ecosystems" that are emerging world-wide .20 Richard Florida has provided important validation for the new geography of innovation. His recent mapping of venture capital activity by ZIP codes and area codes, rather than more expansive metro areas, shows that "high tech development, startup activity, and venture investment have recently begun to shift to urban centers and also to close -in, mixed -use, transit - oriented, walkable suburbs ."21 These observations —and ours — recognize a trend that is both multi - dimensional and hyper - local, one reason why market dynamics on the ground have outpaced uniform labeling or analysis. Quantitative assessments, therefore, are still a work in progress. Innovation districts in Boston and St. Louis, for example, are assiduously documenting district -level growth, although not against broader city and metropolitan trends or other cities with similar economic starting points.22 Similarly, studies in New York, Pittsburgh, and San Francisco have documented the growth of leading tech sectors at the city rather than innovation district scale .23 While the analytics supporting this trend mature, Brookings and a growing number of practitioners are turning to broader economic and demographic research to understand the forces driving this new spatial geography of innovation. 1. The evolution of a knowledge and technology driven economy is altering the value and function of density and proximity. In the past several decades, the U.S. economy has become increasingly reliant on knowledge and innovation. Today, approximately 20 percent of all U.S. jobs are in science, technology, engineering, or math (STEM) related occupations —a share that has doubled since the Industrial Revolution .24 These occupations can be found in a wide range of fields including the production of advanced goods like pharmaceuticals, medical devices, motor vehicles and aerospace as well as the provision of advanced . I BROOKINGS I May 2014 EXHIBIT 1 services like software, data processing, among many others .25 As the role of these innovative industries and occupations has grown in size and importance, so too, then, has the value of density and agglomeration. The benefits of clustering that produced industrial districts, and then science parks, are intensifying in ways that we are just beginning to understand. A growing body of research shows that employment density not only eases resource, goods, and labor sharing, but also enhances innovation. This happens by enabling a more seamless transfer of knowl- edge within and across firms, workers, and supporting institutions —in turn facilitating the creation and exchange of new ideas that fuel even greater economic activity and growth. A recent study by the British government captures this latter point well: "While the marginal cost of transmitting information across geographical space has fallen sig- nificantly, the marginal cost of transmitting knowledge still rises with distance .... Therefore, the knowledge spillover benefits of clustering in cities can be large for high - value, knowledge intensive sectors ."26 The proximity effect is significant. Recent research conducted by Gerald Carlino and Robert Hunt found the clustering of R &D labs to be by far the "most significant" at very small spatial scales, such as distances of about one - quarter of a mile. They also discovered the clustering effect to quickly dissipate with distance, concluding knowledge spillovers to be "highly localized ."27 Isaac Kohane and several colleagues at Harvard Medical School found that even working in the same building on an academic medical campus makes a difference for scientific breakthroughs; "Otherwise, it's really out of sight, out of mind ."28 Density also matters when it comes to workers. The large number of employers within an urban area allows workers to change jobs more easily, giving them both greater flexibility and stability than employees in non -urban locales. This concentration of employment, which economists refer to as "labor market pooling," also contributes to labor productivity.29 One seminal study found that doubling employment density increases average productivity by around 6 percent.30 This general research on proximity and density takes on new meaning in what one observer has called the "age of convergence." In biosciences, digital and biological technologies are co- mingling, opening entirely new possibilities for innovation breakthroughs to be commercialized.31 A recent San Francisco analysis coined the term "tech /information" industries to reflect "the convergence between technology and content ."12 The spatial implications of this hybridization of industry are profound. "[Tech /information] companies thrive in urban environments, where they can connect with other industries, drawing on the culture and diversity of the city. By contrast, the previous generation of tech companies thrived with their headquarters located in suburban areas, located mainly near other tech companies. There was no possibility of cross - industry diversity." [Emphasis added ]33 Recent analysis in New York similarly found tech industries to be less focused on building new technologies but rather "applying technology to traditional industries like advertising, media, fashion, finance, and health care. "34 These shifts reinforce and reinterpret notions of proximity and density. The early days of technology growth was driven by semiconductors and computer hardware, products that depended on a deep roster of engineering talent and required large amounts of physical space to develop.... In contrast, today's growth is being fueled by the Internet and smart phones, and the creation of new ways of taking advantage of these now widely used platforms to deliver content, sell products, deliver services, play games and simplify life for individuals and businesses.... [In other words], today's technology revolution is much less about creating the infra- structure and plumbing for the Internet, but about applying technology to traditional industries.36 To be sure, physical proximity alone doesn't guarantee greater collaboration and idea exchange, nor is it necessarily even required. Silicon Valley, while a huge regional agglomeration of innovative activity, is the quintessential low- density, suburban model of physical development —yet its strength and success is defined by a pervading culture of openness and network building. But urbanization —and BROOKINGS I May 2014 9 19 19 EXHIBIT 1 the physical proximity that comes with it —does appear to both grow from, and in turn help smooth, the development of "horizontal" relationships both within and between large firms, smaller subcontrac- tors, vendors, and, importantly, talent. The move to create denser enclaves of innovation thus appears to be a critical shift for communities that are not as "wired" for collaboration as Silicon Valley. 2. An economy increasingly oriented toward open innovation is changing both where firms locate and how buildings and larger districts —from research labs to collaborative spaces to mixed -use developments —are designed. As the knowledge and technology driven economy grows, it is also becoming increasingly character- ized by what Henry Chesbrough and others call "open innovation." Chesbrough describes this as a process whereby companies and firms more openly generate new ideas and bring them to market by nimbly drawing on both internal and external sources. Under this new modus operandi, external sources can generate the ideas that are then commercialized internally by a firm, while internal ideas can be commercialized by external start -up companies and entrepreneurs. In other words, as Ches- brough observes, "The boundary between a firm and its surrounding environment is more porous, enabling innovation to move easily between the two. "36 What was once a phenomenon for highly specialized fields, the imperative to collaborate has expanded to a broader group of knowledge- intensive sectors, including such science- and technology - heavy fields as chemicals, biotechnology, telecommunications, and semiconductors. McKinsey & Company, for example, has noticed a move from internal R &D labs to new "multichannel R &D models," which involve partnerships with "academic centers, partners, competitors, customers, venture capital funds, and startups. "37 The rise of smaller companies engaged in research and development has also contributed to the growing movement toward open innovation. A field once dominated exclusively by large corporations, research labs and universities has become increasingly stratified, prompting greater collaborations between firms of disparate sizes to develop and advance innovations. A number of factors contributed to the proliferation of smaller R &D companies, namely the downsizing of larger companies, the pas- sage of the Bayh -Dole Act (which enables university and individual researchers to own their federally - funded research, sparking a new entrepreneurial mind set), and the growth of venture capital funding, from very little funding in 1970 to nearly $100 billion in 2000.38 The result is that in today's economic landscape, no one company can master all the knowledge it needs, so companies rely on a network of industry collaborators .39 This, in turn, has led to a shift in where companies and support organizations locate. A recent article, for example, on the growth of Pfizer, Novartis, and other major pharmaceutical companies in Cambridge noted the following: "Pharmaceutical companies traditionally preferred suburban enclaves where they could protect their intellectual property in more secluded settings and meet their employees' needs. But in recent years, as the costs of drug development have soared and R &D pipelines slowed, pharmaceu- tical companies have looked elsewhere for innovation. Much of that novelty is now coming from biotechnology firms and major research universities like MIT and Harvard, just two subway stops away. "40 The more open, collaborative nature of the knowledge economy has also altered the design inside and outside the walls of the singular company. A recent New York Times piece on the "monuments of tech" refers to this trend as the "aesthetic of disruption " — design which embodies change, flexibility, and openness while at the same time displays the unique character and ethos of the individual company.41 The early, highly - recognizable model for open and highly networked workplaces is the newspaper newsroom, but these principles have been implemented in places ranging from former New York City Mayor Michael Bloomberg's "bullpen" in New York City Hall to the campuses of Silicon Valley technology firms. Facebook and Google, for example, have embraced "hackable buildings," with open floor plans that can be easily reconfigured to create dense, collaborative spaces for new teams and projects.42 Beyond office spaces and individual buildings, the planning and design shifts described above have extended to the public and private realm. When Henderson, NV -based Zappos, the online retail shoe giant, was looking for a new headquarters in 2010, CEO Tony Hsieh decided to create a more dynamic . I BROOKINGS I May 2014 EXHIBIT 1 workplace, with the goal of increasing interaction and collaboration among its workers. That inspired for Hsieh a move toward open floor plans and the provision of greater amenities within the office. More than that, it also led him to embed the new headquarters building (and 2,000 Zappos workers) in Las Vegas' old City Hall, and launch the $350 million Downtown Project to catalyze growth of a dense, multi -use, and walkable environment. "The idea," Hsieh said, "went from 'let's build a campus' to 'let's build a city. "'43 In short, the phenomenon of open innovation is changing over time: expanding into new industries, altering the design of office spaces, reshaping the relationship between buildings, and now occurring at the district scale. Similar to open innovation between firms, innovation districts are experiencing the breakdown of traditional boundaries, making the process of innovation more porous between the public and private realms. Ideas, for instance, can be brainstormed in wired, public spaces, advanced in shared work spaces, prototyped in private technology labs, and tested on public streets. 3. Shifting demographic and household dynamics are fueling demand for more walkable neighbor- hoods where housing, work, and amenities intermix. Recent data show that cities and metropolitan areas are increasing in population faster than the rest of the country, with the largest growth seen in large urban areas. From 2012 to 2013, large metropoli- tan areas with over 1 million people grew twice as fast as smaller metropolitan areas with populations under 250,000, while nonmetropolitan /micropolitan regions saw a collective decline .44 Brookings' demographer William Frey believes that this trend is likely to continue, while the future of non -urban America is far less certain 45 Within many large metropolitan areas, the trend becomes more acute as one examines areas in greater proximity to commercial downtowns. The country's 10 largest "live- work" downtowns, as examined by the Philadelphia Center City District for the International Downtown Association, grew 77 percent faster than the country as a whole, and nine of the 10 downtowns increased in population faster from 2000 to 2010 than zones within a half -mile or mile of downtown. 46 What's driving this revival in cities and their cores? America's family structure has been altered by the simultaneous aging of the population and the tendency of young adults to delay marriage and have fewer children. As a result, the prototypical family of the suburban era —a married couple with school age children —now represents just under 20 percent of American households, down from 24.1 percent in 2000 and 40.3 percent in 1970.47 This trend is only expected to accelerate in coming decades. As Arthur C. Nelson documents in his pro- vocative book, Reshaping Metropolitan America, "Between 2010 and 2030, households with children will account for about 13 percent of the total change in households; households without children will represent the rest. "48 This demographic tumult is sparking a palpable shift in consumer —and worker — preferences toward more urban - oriented environments. Research has documented, for example, that 70 percent of Americans place a high priority on walkability, and similar majorities prioritize proximity to health care, entertainment, recreation, work and school, and social contacts.49 Older Americans are increasingly seeking smaller homes and apartments, as well as places with easy access to medical services, shop- ping, and other daily necessities. Meanwhile, middle -aged couples, whose children have "left the nest," show greater receptivity to urban neighborhoods, cultural amenities, and shorter commutes.50 These preferences are particularly prevalent among the millennial generation (Generation Y) —whose young and educated members form the core of our innovation workforce. For many of these young people, especially those that have delayed childrearing, "quality of life" is increasingly understood to mean proximity to urban amenities such as restaurants, retail, cultural, and social venue S.51 This is evi- denced in residential choices of this cohort. According to Joseph Cortright, between 2000 and 2009, the number of 25- to 34 -year olds with college degrees living in neighborhoods near the central busi- ness districts in the nation's 51 largest metropolitan areas increased by 26 percent, double the growth rate of college educated young adults in the rest of the metropolitan area.52 Data from the Urban Land Institute reveals that 63 percent of millennials plan to move in the next five years, and 40 percent of them indicate a preference for living in medium or large cities (compared to only 28 percent of Americans as a whole). Within urban areas, living in close proximity to shopping, dining, and work is preferred by 62 percent of this demographic, along with 60 percent of both singles BROOKINGS I May 2014 U 19 19 EXHIBIT 1 and renters .53 A recent New York Times article underscored how these shifts in demographics are chal- lenging the New York City housing supply, noting that "there are more single households, thanks to the young urban migration and the silver tsunami, that gathering wave of urban - minded retiree S."54 Collectively, these three shifts —a converging knowledge economy, more open innovation ecosys- tems, and changing demographics —are stirring new demands for density, proximity, collaboration, and walkability, and in so doing are re- working the spatial geography of innovation. With concerted effort, the rise of innovation districts holds the potential to bring numerous benefits to the cities and regions in which they are located, and to the people who live and work there. Deconstructing Districts he potential for innovation districts to drive innovative, inclusive, and sustainable growth requires us to understand what drives them and makes them productive and prosperous. Un- like segregated business or residential districts that have for decades populated most cities and suburbs, or even the activity centers that more recently have sprung up around public transit stations, innovation districts uniquely contain three categories of assets: economic assets, physical assets, and networking assets.55 > Economic assets are the firms, institutions and organizations that drive, cultivate or support an innovation -rich environment. > Physical assets are the public and privately -owned spaces — buildings, open spaces, streets and other infrastructure — designed and organized to stimulate new and higher levels of connectivity, collaboration, and innovation. > Networking assets are the relationships between actors —such as between individuals, firms, and institutions —that have the potential to generate, sharpen, and /or accelerate the advancement of ideas. The relative strength of these assets in different communities varies considerably. In some places, districts are emerging from a cluster of strong economic assets but lack important physical assets and are initiating a planning process to comprehensively redesign the physical realm. In other cases, districts possess a strong set of physical assets with only a handful of economic assets and networks to build upon .56 Innovation districts reach their potential when all three types of assets, combined with a support- ive, risk - taking culture, are fully developed, creating an innovation ecosystem. As described earlier, an innovation ecosystem is a synergistic relationship between people, firms, and place (the physical geography of the district) that facilitates idea generation and accelerates commercialization. Both research and interviews suggest that a supportive risk taking culture consistently undergirds highly productive innovation areas. This means, most unconventionally, embracing failure by making risky investments in people, firms, and development projects. It means breaking down the traditional, vertical hierarchies and valuing a diversity of talent, from 20- and 30 -year olds to the more expe- rienced leadership class. It means changing conventional rules still found in many inward - focused research institutions and organizations to encourage spin -offs, allow greater idea sharing across firms, and share spaces and technologies. It also means taking the long view and not expecting short -term returns or rewards as innovation processes commonly require consecutive failures before any break- throughs can be achieved. In describing these assets it is important to recognize that a number of them may appear to be conventional, if not strikingly rudimentary. While many assets described here have been integral to existing urban economic development efforts, they are being re- engineered to support the innovative, traded sectors that drive metropolitan economies. Research universities, for example, are by definition teaching institutions with research departments. A small, but growing, subset of these universities are now valuing commercialization as a primary objective and are successfully advancing innovations into the market. Moving well beyond their tech transfer offices, these universities are investing resources in accelerators, encouraging and supporting spin -offs, and developing adjacent land to concentrate future economic growth. Many more research universities have not yet expanded their mission to embrace commercialization fully, demonstrating a growth opportunity for these universities and the areas surrounding them. m BROOKINGS I May 2014 EXHIBIT 1 A. Economic Assets Economic assets can be separated into three categories: innovation drivers, innovation cultivators, and neighborhood - building amenities. Innovation drivers are the research and medical institutions, the large firms, SMEs, start -ups, and entrepreneurs focused on developing cutting -edge technologies, products, and services for the market. Due to regional variations in industry strengths, each district is comprised of a unique mix of innovation drivers, contributing significantly to their distinctiveness. The research described below reveals important insights for districts building and assembling these assets. First, a subset of industries — sensitive to the economic, demographic, and cultural trends described above — distinguishes innovation districts from other models and largely explains their preference for compact, urban - oriented enclaves. These industries are: > High - value, research - oriented sectors such as applied sciences (from life and material sciences to energy technology to nanotechnology) and the burgeoning "app economy. "57 > Highly creative fields such as industrial design, graphic arts, media, architecture, and a growing hybrid of industries that merge tech with creative and applied design fields.SB > Highly specialized, small batch manufacturing such as advanced textile production and small artisan - oriented manufacturing.S9 Large advanced manufacturing facilities are not located within urban innovation districts. These facilities require substantial building or land footprints and require easy access to major highways. This includes fabrication plants, OEMs (original equipment manufacturers) and large suppliers. Second, the role of universities deserves special consideration given their effects on the local and metropolitan economy, including their role in driving innovation activity at the district scale. Anselin, Varga, and Acs, for example, sought to reconcile conflicting research findings on the role of universities and the local economy, drawing on larger and more geographically precise data sets. Their research found a "positive and significant relationship between university research and innova- tion activity," both directly, as well as indirectly through its impact on private sector R&D .60 Further, Hausman, in analyzing Census data around universities after the passage of the Bayh -Dole Act in 1980 (an act allowing universities and other researchers the ability to commercialize research funded by federal dollars), found both long -term employment and worker income to rise "in industries more closely related to local university innovative strength S."61 In short, universities are particularly helpful drivers for growing districts; for this reason, many districts that did not originally include universities (such as the "re- imagined urban areas" model) have convinced universities to build satellite campuses. Third, entrepreneurs are another asset worth highlighting. While Edward Glaeser's research convinc- ingly affirms the role of entrepreneurs in driving city employment growth, interviews with practitio- ners reveal that entrepreneurs are equally valued at the district-scale .62 All innovation districts aspire to support entrepreneurs. Boston's innovation district, for example, includes an "innovation compo- nent" for new office and retail developments, where 15 percent of the space is earmarked for entrepre- neurs and start- ups.63 Fourth, while many districts are focused on the cultivation of entrepreneurs, they alone cannot be a growth strategy for districts. Research conducted by Agrawal, Cockburn, Galasso, and others found that a mixing of firms creates the optimal environment for innovation. Larger laboratories, for exam- ple, may stimulate spin -offs considered irrelevant to the lab's overall business objectives, while smaller labs can create demand for specialized services that lower the entry costs for others in the market .64 Innovation cultivators are the companies, organizations, or groups that support the growth of individuals, firms, and their ideas. They include incubators, accelerators, proof -of- concept centers, tech transfer offices, shared working spaces (with programs to support idea and firm development), and local high schools, job training firms, and community colleges advancing specific skill sets for the innovation - driven economy. In a small number of districts, legal counsel, patent attorneys, and venture capital firms are scrubbing project concepts to identify their value in moving forward. The rise of technology- driven industries in general is creating demand for supportive industries that employ highly- educated workers, such as advanced business service S.65 The aggregation of innovation cultivators in districts distinguishes them from standard business and research parks. While cities and suburban areas have cultivators sprinkled across their landscape, district leaders are assembling a critical mass of cultivators within a discrete geographic area. Equally BROOKINGS I May 2014 ■ 19 19 EXHIBIT 1 important, district leaders are "planning for the continuum" by building a range of cultivators to sup- port entrepreneurs and start -ups at each stage of development, keeping them in the district as they mature. There appears to be a tipping point, however, when too many cultivators become counterpro- ductive. "Too many incubators run the risk of spoon- feeding entrepreneurs too much. They need to work hard at achieving success," shared Ylva Williams of the Stockholm Science City Foundation .66 Neighborhood - building amenities provide important services to residents and workers in the district. This includes medical offices, grocery stores, restaurants, coffee bars, small hotels, and local retail (such as bookstores, clothing stores, and sports shops). In his analysis of the "new economy" clusters in the urban core, which include innovation - oriented clusters, Thomas Hutton found restau- rants, coffee shops, and bars to "reflect not only contemporary urban consumption patterns but also a distinctive 'geography of amenity,' which complements the intensive social interactions of the new economy. "68 Amenities activate district streets and public spaces, inviting a mix of people to shop, browse, and mingle. Many cities understand this well, and have heavily invested in corridor or neighborhood revital- ization initiatives, often providing tax relief and other incentives for local businesses. District strate- gies build off these efforts, seeking to not only create a critical mass of amenities but to encourage a compelling design of storefronts and signage. B. Physical Assets There are three categories of physical assets, all of which are uniquely applied in each district: physical assets in the public realm, physical assets in the private realm, and physical assets that knit the district together and /or tie it to the broader metro area. Similar to economic assets, physical assets are in the process of being re- imagined to advance an innovation imperative —a process that is transforming the physical landscape into a laboratory of creativity, ingenuity, and invention. Experts in the fields of urban design, architecture, landscape architecture, and planning are experimenting with new concepts that facilitate collaboration and connectivity. This story of testing, trying and evolving was observed by MIT researchers, who in their global work on "New Century Cities" found districts to be "messy, with activities and uses all mixed up and things in a constant state of adjustment and change." 69 Physical assets in the public realm are the spaces accessible to the public, such as parks, plazas, and streets that become locales of energy and activity. In innovation districts, public places are created or re- configured to be digitally - accessible (with high speed internet, wireless networks, computers, and digital displays embedded into spaces) and to encourage networking (where spaces encourage "people to crash into one another ")70 "Digital places," as defined by MIT's New Century Cities work, are the culmination of ambient technology, digital systems, and the physical form, creating venues for training and education, cultural events, and entertainment?' Streets can also be transformed into living labs to flexibly test new innovations. In Boston, Barcelona, Eindhoven, Helsinki, and Seoul, streetscapes and public spaces are testing new innovations in street lighting, waste collection, traffic management solutions, and new digital technologies. Living labs are what 22Ca)Barcelona calls "open innovation at the city - scale. "72 The re -make of physical assets extend far beyond technology- infused places however, as the design and programming of public spaces is equally valued. Small -scale parks and plazas programmed with concerts, innovation expositions, and eateries give reason for people to congregate and mix. District leaders are designing and programming such spaces strategically across their districts in an effort to facilitate the building of networks. Physical assets in the private realm are privately -owned buildings and spaces that stimulate inno- vation in new and creative ways. Building from a solid base of traditional assets, such as mixed - income housing, neighborhood- serving retail, and research and office complexes, new assets are designed to support the innovation - driven demographic. Office developments, for example, are increasingly config- ured with flex work spaces, lab spaces, and smaller, more affordable areas for start -ups. Micro- housing is another example of a new physical asset. These units offer smaller private spaces (typically 300 to 600 square feet) and access to larger public spaces such as co- working spaces, entertainment spaces, and common eating areas. Often marketed for migrating workers in innova- tion sectors, local residents, and younger single workers, micro - housing is now found in the districts 1,z1 BROOKINGS I May 2014 EXHIBIT 1 of Boston, Barcelona, and Philadelphia (under construction). St. Louis is also planning micro - housing units in their district. Physical assets that knit the district together and /or tie it to the broader metro area are spe- cific investments aimed to eliminate barriers that hinder relationship - building and connectivity. Practitioner interviews suggest there is considerable work to be done within districts, particularly in linking anchor institutions (commonly oriented within their own campuses) with the rest of the district. For some districts, knitting together the physical fabric requires remaking the campuses of advanced research institutions to remove fences, walls and other barriers and replace them with connecting elements such as bike paths, sidewalks, pedestrian- oriented streets and activated public spaces. For other districts, strengthening connections requires changes at a much larger - scale, such as entirely re- structuring large areas with smaller, more walkable blocks and pedestrian -scale streets. Strategies to strengthen connectivity between the district and the broader metro aim to ensure innovation districts do not become islands unto themselves. Investments in infrastructure, such as broadband, transit, bike, and pedestrian paths are natural connectors to be considered. Extending broadband into adjacent, often low- income neighborhoods, for instance, is a valuable strategy in reducing the digital divide. Investments in public transportation — including the Silver Line in Boston, the Red Line in Houston, the future M -1 in Detroit —have been essential, for instance, in increasing accessibility between districts and their surrounding metro areas. C. Networking Assets The inclusion of networking as its own asset category is supported by a growing body of research that reveals how networks are increasingly valuable and prolific within innovation - driven economic clusters. Scholars cite numerous advantages of networks: they are important sources of new or critical information for new discoveries; they encourage experimentation and are a testing ground for ideas; they help firms acquire resources; they strengthen trust and collaboration within and across sectors; and they help firms enter new markets including global market S!3 The most famous success story of networking is Silicon Valley, where dense social networks were found to drive both experimentation and entrepreneurship. In her analysis of Silicon Valley, Saxenian observed, "Companies compete intensely while at the same time learning from one another about changing markets and technologies through informal communication and collaborative practices." She argues that while proximity —in this case, a regional agglomeration— contributes to the development of dense networks, a collaborative culture appears to play a more significant role?4 While countless numbers of science parks and tech parks were built on the hopes that Silicon Valley could be easily copied, Bert -Jan Woertman, an enthusiastic connector and creative communicator for High Tech Campus Eindhoven, reflects that "Networks cannot be copied nor can they be easily estab- lished. "7S A recent Harvard Business Review article similarly presented the difficulties in establishing networks, finding that even start -ups and their parent companies "cannot leave knowledge spillovers to chance ."76 Districts attempting to cultivate networks are driven by experimentation, creativity, and even a sociological understanding of how networks function. A leading scholar on networks, Granovetter, differentiates networks as either having "strong ties" or "weak ties," which are determined by factors such as the frequency of contact, the emotional intensity of the relationship, and the reciprocity of commitments between the actors !7 Strong ties occur between people or firms with a working or professional history, higher levels of trust, willing to share more detailed information, and more apt to participate in joint problem solving. Weak ties occur between people or firms working within a different economic cluster or context where there is infrequent contact. Weak ties provide access to new information, even novel industry infor- mation, new contacts, and new information on business leads that are outside of existing networks?$ While it may seem obvious that a dense network of strong ties is the optimal condition for a highly innovation - driven environment, research indicates that both strong ties and weak ties are fundamental to firm success?9 Two primary categories of networking assets emerge from this research: Networking assets that build strong ties focus on strengthening relationships within similar fields. These types of assets include: "tech regulars" (such as Eindhoven's Tech Regulars, where "techies" discuss problems or advances in their work as a collective), workshops and training sessions for BROOKINGS I May 2014 19 19 ,a EXHIBIT 1 specific fields or technicians (daily activities along Boston's waterfront), cluster- specific meetings (22Ca)Barcelona), industry- specific conferences and monthly meetings (found in several districts), and industry- specific blogs for local firms and entrepreneurs. Networking assets that build weak ties focus on building new, often cross - sector, relationships. Examples include: networking breakfasts (such as 22Ca) Barcelona's breakfast where experts and star innovators offer new insights in their fields followed by open time to network), innovation centers (such as Boston's newly constructed 12,000 square foot District Hall), hack -a -thons across industry clusters such as life sciences and tech (Stockholm), tech -jam start -up classes (found in Boston), and even the choreographed open spaces between highly programmed buildings (St. Louis). In this last example, St Louis will be clustering five innovation centers, with the purpose of generating "collision points" between smart people.80 Reflections from Practitioners A s innovation districts take hold, the real challenge is how each community marshals resourc- es in a deliberate and customized way to capitalize on advantages and realize the promise of productive, inclusive, and sustainable growth. To that end, this section summarizes reflec- tions from practitioners spearheading efforts to drive and develop districts. We found their experiences to vary considerably, in part due to the types of local actors, the level of resources at their disposal, and the distinct economic, physical, and networking challenges they set out to address. Even with these and other variations at play, practitioners for the most part offered similar reflections from their work so far. This section is not meant to be a how -to guide for future districts but is instead intended to illus- trate how these practitioners have come to understand and organize the complexities inherent in their work. It draws from interviews with practitioners and researchers working in leading edge innovation districts including University City in Philadelphia, Cortex in St. Louis, Kendall Square in Cambridge, the South Boston Waterfront, downtown and midtown in Detroit, South Lake Union in Seattle, the Texas Medical Center in Houston, 22Ca)Barcelona, two innovation districts in Stockholm (Stockholm Life and Kista Science City), and Eindhoven in the Netherlands.81 We have consolidated their reflections into the following five strategies, each of which will be dis- cussed in turn: > Build a collaborative leadership network > Set a vision for growth > Pursue talent and technology > Enhance access to capital > Promote inclusive growth 1. Build a collaborative leadership network A collaborative leadership network is a collection of leaders from key institutions, firms, and sectors who regularly and formally cooperate on the design, delivery, marketing, and governance of the dis- trict. Practitioners reflected that to bring innovation to scale —i.e. beyond the boundaries of individual organizations and firms —has required leaders from disparate institutions to encourage idea sharing across researchers, firms, universities, and supportive organizations. Likewise, physically remaking a place in the service of innovative growth and expanding employment and educational opportunities for low- income residents has required leaders to think and act in a multi - dimensional fashion, across multiple sectors and communities. Practitioners in the field underscored the importance of a focused and organized leadership network to super- charge innovation, reshape places, build a culture of trust and collaboration, and steward networks. Interviews identified three key and, in some cases overlapping, models of leadership: An important share of innovation district leaders found the Triple Helix model of governance to be foundational to their success .82 The Triple Helix consists of structured interactions between industry, research universities, and government. Collectively, they design long -range visions and create new BROOKINGS I May 2014 EXHIBIT 1 vehicles for innovation, such as research centers and incubators. In the case of 22Ca)Barcelona, St. Louis, Kista Science City (Sweden), and Eindhoven (Netherlands), the Triple Helix model established a clear organizational model of collaboration from the start. Further, Eindhoven and St. Louis are finding real success in a leadership model that includes a powerful development agency to execute strategies. Practitioners also cited the valuable role of one person, a team of people, or designated entity serv- ing as a "catalyst," an "integrator, or a "facilitator" throughout the process. This was found to be true even in cases using the Triple Helix model. Integrators or facilitators were found to stitch together disparate efforts, help conflicted leaders reach consensus, and simply kept the process moving along. In St. Louis, Bill Danforth, chancellor emeritus of Washington University, founded the BioSTL Coalition, a regional organization championing the bioscience cluster, which brought together city and regional leaders to forge a vision for growth and innovation .83 In other places like Houston, Research Triangle, and Philadelphia, the powers and activities of an existing entity are rediscovered or reconfigured to fit the new purpose .84 In Seattle, Vulcan Real Estate has played a critical role in including local community groups in discussions around the design and location of housing, infrastructure and amenities. Finally, and of particular importance in the United States, practitioners cited the instrumental role mayors can play in catalyzing the formation and evolution of innovation districts —a role that will likely grow over time. Former Seattle Mayor Greg Nickels played a critical role in the growth of South Lake Union, making key infrastructure decisions around transit, roads, and energy. Former Boston Mayor Tom Menino's successful effort more recently to designate the South Boston Waterfront as an inno- vation district and steer its redevelopment in collaboration with a broad network of stakeholders is now being studied by mayors in cities as diverse as Albuquerque, Austin, Chattanooga, Detroit, and Pittsburgh as they seek to build on their strengths. 2. Set a vision for growth A vision for growth provides actionable guidance for how an innovation district should grow and develop in the short -, medium- and long -term along economic, physical, and social dimensions. 22Ca) Barcelona, for example, envisioned and articulated in forward - looking documents, a "new model of a compact city," replete with innovation activities, green spaces, advanced industries, a strong indus- trial heritage, subsidized housing, a new mobility model, and revitalized public spaces.85 St. Louis and Stockholm Life also devoted the necessary time and resources to develop a highly visual, long -term vision for their districts. Beyond these examples, most practitioners cited the importance of devel- oping a vision to leverage their distinctive strengths— economic clusters, leading local and regional institutions and companies, physical location and design advantages, and other cultural attributes. Innovation districts that may share the same physical geography (e.g., a downtown or waterfront set- ting) or similar institutional platforms (e.g., an advanced research institution or medical campus) can have radically different opportunities for growth .86 Clarify your competitive advantage Given the distinctive starting points and strengths of disparate places, many district leaders grounded their visions in evidence, developed through the accumulation of relevant data and information, and accompanied by smart analysis, experience and intuition. Some places conducted analyses to guide areas of industry and entrepreneurial growth. Others instead used a bottom -up process driven by entrepreneurs to identify new and emerging areas of growth. Many practitioners in the United States explained how detailed analysis helped define which clusters and /or research areas to advance. In the early stages of St. Louis' conceptual planning, for instance, Battelle was hired to conduct a thorough analysis of the region's industry clusters in life and plant science. The diagnostic included several areas of study: an assessment of the region's economic strengths (evaluating their range of strengths within life sciences); a benchmarking exercise (against leading and comparable regions); and a SWOT analysis (a quantitative and qualitative analysis of strengths, weaknesses, opportunities, and threats). This work was an important precursor to the for- mulation of specific plant and life science strategies for St. Louis to consider.87 As the St. Louis example demonstrates, a city's or metropolitan area's distinctive economic strengths helped orient actors to the clusters that have the best chance of success rather than rely on a government's attempt to pick industry winners. In fact, St. Louis' strength in plant and life sciences, BROOKINGS I May 2014 19 19 EXHIBIT 1 Philadelphia's strength in health, computing and informatics, and energy, and Eindhoven's strength in precision machinery are the very clusters promoted in their innovation districts. As these places have evolved, new, emerging clusters grew out of R &D and smart commercialization or through surprising synergies between two or more clusters, creating an even more dynamic network of clusters. Other practitioners have applied a more bottoms -up approach to identify new and emerging areas of growth. Through a methodology known as "smart specialization," Stockholm and Eindhoven encour- age entrepreneurs and other economic actors to enter into a process of "entrepreneurial discovery" to collectively determine new innovation projects or new areas of R &D. Rooted in open innovation, firms and entrepreneurs meet in structured settings to brainstorm, analyze, and ultimately test new ideas. Importantly, this approach aims to move the broader collective of firms into new and emerging areas.$$ Ylva Williams of the Stockholm Science City Foundation described their intricate process of support- ing entrepreneurs, larger companies, universities, and health care providers to collectively identify new market opportunities. One successful example is the convergence between Stockholm's strong sectors of life science, tech and ICT sectors (which also builds bridges between the city's two main innovation districts: Stockholm Life and Kista Science City). In an effort to develop new digital health products and services, entrepreneurs, companies, and other public organizations developed the follow- ing process: > Ideation workshop. Patients, healthcare providers, companies and entrepreneurs define challenges or problems and subsequently develop potential solutions. If desired, participants can form teams around a possible solution. > HealthHack. A 48 -hour workshop where teams of experts from tech /ICT and life sciences work together to find solutions to the ideas generated in the ideation workshop. Products in this phase range from sketches and prototypes to software ideas. > Design workshop. With the support of sector experts, the teams refine and design their prototypes developed during HealthHack. > Pitch workshop. The teams receive training in how to make successful pitches. > Digital Health Days. The best teams are selected to give a pitch presentation during the interna- tional meeting and the audience will vote for the best team.89 Smart specialization, such as this above process, aims to "identify new product segments and fur- ther strengthen our competitive advantage," said Williams. Perhaps somewhat similar in philosophy, some U.S. districts, including Boston's innovation district, have opted to be silent on clusters, arguing that the selection process derive from entrepreneurs and the market itself. Imagine a new mix of institutional assets Practitioners have come to understand that a future vision of a particular district does not begin and end with an assessment of its existing institutional assets. They are keenly aware of the growing trend of leading edge technology and pharmaceutical companies, private and public universities, and even medical campuses to move advanced research and other critical assets to those locations that generate the largest return on investment for the firm or institution. From this understanding, district leaders have become more deliberate in their efforts to lure major innovation assets to their sites (i.e., to "un- anchor anchors ") or to form new institutions whole cloth." The innovation district in downtown Detroit was catalyzed by the decision of Quicken Loans to move its headquarters from suburban to downtown Detroit. Boston's successful enticement to Babson College and the Fraunhofer Institute to open outposts on the South Boston waterfront is another example of this trend as is the University of Washington's decision to locate an advanced medical research campus in Seattle's South Lake Union. Stockholm's largest technical university, KTH, opened a technical branch within Kista Science City. Lastly, 22Ca)Barcelona successfully lured numerous univer- sities to locate within their district, creating a new gravitational pull in the region and a new location for students, researchers and entrepreneurs to innovate jointly. Re- imagine your physical landscape Successful practitioners routinely spoke of the need to transform the physical landscape of their districts to create the favored attributes of complexity, density, and mixed uses and activities. This has been particularly challenging in places that bear the indelible markings of 20th century development. 1161 BROOKINGS I May 2014 EXHIBIT 1 Heavy infrastructure — highways and exposed railroad tracks —often divide natural districts. Euclidian zoning, originally intended to protect health and safety, segregated uses and isolated housing, office, commercial, and manufacturing activities from each other.90 A number of innovation districts have therefore required variances from antiquated land use and zoning ordinances and, in some cases, radical changes to existing infrastructure. In the "anchor plus" model, practitioners have re -drawn existing lines— tearing down walls, fences and other, even more substantial, barriers between anchor institutions and others, creating new mixed -use neighborhoods, making and creating new public spaces, and activating streets to draw people together, and re- designing corridors to make them more pedestrian - friendly. In both Kendall Square near MIT and St. Louis' Cortex district, city governments (or their designated agents) revised land use conventions and zoning ordinances to affect this change. One Stockholm innovation district, Stockholm Life, is in the process of covering over (also known as "decking ") two highways that divide their anchor institutions and firms. In doing so, they will have space to build 5,000 units of housing, laboratories, several schools, and open space, effectively stitching the district together.91 Practitioners involved in re- imagining urban areas have also undertaken (or benefitted from) pro- nounced changes to the physical infrastructure. 22Ca)Barcelona, for example, was built on the remains of a 494 -acre industrial area, scarred and separated from the rest of the city by railroad tracks. Through extensive public planning and investment, 22Ca)Barcelona buried these tracks, increased access via a new public tram, designed walkable streets, and created new public spaces and housing 92 Boston's innovation district was enhanced by the Big Dig, the removal (and submerging) of elevated highways that separated the south waterfront from the rest of the city. Equally important, construc- tion of Boston's third harbor tunnel markedly increased the level of access to the innovation district for both cars and transit 93 In the few cases of the "urbanized science park," re- imagining land use is the precursor to realizing any aims of urbanization — density, a mixing of uses, and a concentration of activities. This counters the original design of science and research parks, as exemplified by North Carolina's Research Triangle Park, which were intended to ensure seclusion, isolation, and the protection of intellectual property, often on their own "research estates," as the RTP Master Plan puts it 94 Today, an outsized portion of RTP's master plan focuses on its physical redevelopment: specific urban nodes allowing greater density and amenities, the development of a vibrant central district with more retail, and building up to 1,400 multifamily housing units. Innovation districts relied on a variety of planning tools as they engaged in this work. 22Ca)Barcelona, Cortex in St. Louis, and Cambridge (MA), for example, developed master plans to address the complex- ity in physically redeveloping their districts. Under existing state statute, the city of St. Louis desig- nated Cortex West Redevelopment Corporation the master developer of the innovation district. Cortex is also responsible for master planning, oversees development, issues tax abatements, and may use eminent domain. MIT experts in their global work on innovation districts found tremendous success using strategic visions, which are more nimble in scope than traditional master plans. Boston, instead, developed design guidelines and development standards to guide changes incrementally as new devel- opments come on -line. Lastly, a number of district leaders spoke of efforts to physically brand their area in effort to create a clear, undeniable experience when people enter a district. Dennis Frenchman from MIT describes branding as "narrative design" where the physical landscape is enhanced "so they more clearly com- municate a particular set of images and stories. "95 District branding has included the strategic use of urban design elements (such as building massing, street design, public spaces, materials, and plant- ings); gateway development (where entrances into the district are pronounced or marked in some unique way); communicative digital displays, lighting, signage and banners (all carrying the district logo) along key corridors, at district gateways, and in public spaces. 3. Pursue talent and technology Talent and technology appear to be the twin drivers of innovation in these districts. Talent commonly refers to those workers with the specialized education and skills necessary to generate new discover- ies, commercialize ideas, design new products or production methods (or tinker with existing ones), and manage, brand, and package the ultimate result for the marketplace. Technology refers to the BROOKINGS I May 2014 N 19 19 EXHIBIT 1 tools, machines, infrastructure, and systems that help talented workers engineer industrial break- throughs, disentangle big data and complex problems, and facilitate the production processes that follow. Both fields of work, practitioners shared, have required systematic planning and execution. Dedicate efforts to attract, retain and grow talent Practitioners argue that their ability to attract, retain, and grow talent plays a valuable role in differ- entiating seemingly identical clusters across U.S. and global cities and regions. Similar to businesses and leaders at the regional- and city - scale, district leaders have developed their own campaigns to lure individuals trained or educated in specific niches and specializations. Practitioners explained that efforts to attract talent —which includes organized outreach programs, marketing campaigns, and highly tailored scouting techniques — largely target highly educated and skilled workers from other parts of the country, if not other global regions. Barcelona's aim to become a global hub of innovation required both a local and global workforce, driving efforts to target inter- national professionals as stimulants for local economic activity.96 Eindhoven, in their drive to be the "smartest region in the world," found this necessitated a pooling of talent from across Europe and around the globe97 South Lake Union's most successful attraction strategy was to entice Amazon to move to the area. As one entrepreneur said: "We love being next to Amazon" They are to South Lake Union and Seattle what Microsoft was to Redmond and the Eastside in the 1990s. They attract a lot of talent. Talent begets talent. "98 Efforts to retain talent were found to be similarly critical. Years of growing and assembling a strong pool of talent can quickly lead to paralyzing setbacks with the loss of key researchers and faculty. Eindhoven, for example, has dedicated staff focused on talent retention, offering a pipeline of support including cultivating dual career opportunities, and cultural training for international workers on "how to deal with the Dutch. "99 The retention of recent university graduates is equally important, a renewing source of human capital. Growing talent, while the most time- and resource - intensive of these three categories, is described by practitioners as the very heart of a district's core mission. On one hand, growing talent means growing entrepreneurial capacity and catalyzing start -ups and spin -offs dedicated to commercializing ideas. All practitioners interviewed underscored the extent to which they designed programs, and even often constructed new buildings, to support the growth process of entrepreneurs. "It's all about pro- gramming: choreographing 'spontaneous' opportunities for smart people to interact with each other. This is what separates us from traditional science parks," shared Dennis Lower of Cortex in St. Louis 100 On another level, growing talent means developing a feeder system of STEM workers with the general and customized skills necessary for participation in innovative sectors. Recent work and experiences will be highlighted in the section on promoting inclusive growth. Seamlessly integrate technologies into the landscape Practitioners emphasized that technology plays two roles across the district landscape. First, advanced technology provides the platform upon which innovation is conceptualized, advanced in R &D, and developed during prototyping and product formulation. Specializations such as artificial intelligence, next - generation genomics, and software development, rely heavily on advanced technologies, such as robotics, nanotechnology, and sophisticated computer systems. The extent to which technologies now drive advancements in science and other fields is what propels districts to invest in technology enhanced facilities. A 2012 survey of university research parks in North America —one example of the "anchor plus" typology — reveals that 75 percent of these districts now contain specialized laboratory facilities701 Innovation districts in Cambridge, St. Louis, and Eindhoven have found real success in sharing many of these cost - prohibitive technologies with firms and entrepreneurs through shared workspaces, shared laboratories, and technology centers. As Johannes Fruehauf, the head of Lab Central in Cambridge says, researchers should focus on "perfect- ing their science" rather than making substantial capital expenditures and assuming large early risks and liabilities ?02 Second, practitioners have observed the salutary effect of embedding technology in standard public infrastructure to create a platform for innovation. Installations of fiber optics to create a high qual- ity internet environment are now considered an investment in "the basics." St. Louis, for instance, ,a BROOKINGS I May 2014 EXHIBIT 1 is making substantial upgrades in internet connectivity by adding fiber to the existing sub - street infrastructure, further enhancing the computing power around big data and the potential for the commercialization of innovation 703 22Ca)Barcelona constructed separate tunnels to lay fiber to ensure that upgrades to the system would be easier to meet growing demand 104 As described in the section describing physical assets, some districts are attempting to reduce the digital divide by extending fiber optics into adjacent, often low- income, neighborhoods. In their global work, MIT researchers focused on New Century Cities observed real growth in the development of digital systems (display and interac- tive communication systems designed into objects such as bus stop walls and cafe table tops) and digital places (the nexus of technology, the physical form, and activity creating new ways to teach/ train and to entertain). These digital models are particularly pronounced in newer cities and districts in Asia (such as Seoul's Digital Media City) and the United Arab Emirates (Masdar City in Abu Dhabi) P5 4. Promote inclusive growth Promoting inclusive growth means using innovation districts as a platform to regenerate adjoining distressed neighborhoods as well as creating educational, employment, and other opportunities for low- income residents of the city. Given broader trends around economic restructuring, anemic job growth, and wage stagnation, many cities and metropolitan areas have experienced substantial increases in the number of people living in poverty and near poverty over the past decade. As described below, innovation districts offer multiple opportunities for neighborhood revitalization, quality employment, and poverty alleviation. Pursuing these opportunities will lessen the tensions between innovative and inclusive growth, which have emerged in many communities. Pursue comprehensive neighborhood revitalization As a recent survey of urban - oriented research parks highlights, 45 percent of these parks are adja- cent to, or located within, distressed communities 106 For this very reason, anchor institutions, like the University of Pennsylvania and Drexel University are pursuing the regeneration of adjoining neighbor- hoods through multiple strategies to improve public safety, provide quality education, enhance digital literacy and connectivity and expand affordable housing and retail opportunities. As one practitioner explained, quality public schools are central to this multi - layered effort. To that end, several innovation districts are placing their considerable academic, real estate, and tech talent in the service of broader education reforms. This includes creating or adopting area schools, such as STEM charter schools or magnet schools, developing STEM - oriented curriculum, offering teach- ing assistance, and providing internship opportunities. In Philadelphia, for example, a consortium of institutions led by Drexel University is working with the city to create a K -8 school near its campus in an underserved neighborhood. The middle school program will be created and overseen by such esteemed institutions as the Science Leadership Academy high school in partnership with the Franklin Institute and the Academy of Natural Sciences of Drexel University. The development of the larger site would include a commercial component to yield capital dollars to help fund this schoo1107 Increase labor market participation Innovation districts are likely to grow jobs in multiple sectors such as housing, construction, medical, tech, services, and retail. The districts, therefore, offer ample opportunities to connect residents in high unemployment areas (particularly young residents) to occupations that require disparate sets of skills and work experience. Practitioners noted the need to be purposeful in hiring, training, and sup- porting local talent, with the ultimate goal of giving low- income workers economically - mobile career paths with family- sustaining wages. Further, by redirecting capital and jobs back into urban cores and urbanizing suburban parks, jobs become increasingly accessible, particularly by transit. A number of practitioners emphasized the potential for equipping workers with the skills they need to participate in the innovation economy. Tom Andersson of Kista Science City in Stockholm, explained how they view this as their responsibility "in addressing the competence issue for the long- term. "108 One strategy a few practitioners are applying is to focus on the many innovation jobs (e.g., lab techni- cians) that require customized technical training in high schools or community colleges, rather than a four -year or advanced college degree. In fact, in mature science and research parks, the conventional BROOKINGS I May 2014 a 19 19 EXHIBIT 1 wisdom is that 40 percent of the jobs require high school diplomas or associate degrees, 40 per- cent require bachelor degrees, and only 20 percent require masters and Ph.Ds109 This dovetails with Brookings research, which found that half of all STEM occupations are available to workers without a four -year college degree, arguing for an expanded definition of talent 170 The St. Louis and Barcelona districts are particularly focused on this potential, experimenting with school -to -work programs, apprenticeships that teach career - building skills and on- the -job training programs. The challenges associated with linking low income residents to innovation - oriented jobs should not be underestimated given vast educational disparities. In Philadelphia, district leaders are also looking to connect area residents to job opportunities in the secondary and tertiary sectors (e.g., services, retail) that the innovation district catalyzesttt Stimulate local entrepreneurship Innovation districts, finally, also offer rich opportunities for local entrepreneurial growth. In some cases, specific programs have been designed to grow or support entrepreneurs from pools of less edu- cated residents and workers. The district in Medellin, Colombia, for example, is growing talent through its fabrication lab (known as Fablab), cultivating innovations developed by people living in informal settlements 172 Free to the public, the Fablab offers state -of- the -art high technology equipment, includ- ing the latest in 3 -D, digital production 113 Drexel University and other area anchors in Philadelphia are pursuing entrepreneurial opportunities presented through local procurementt14 As shown by a recent report released by the Philadelphia city controller, purchases made by anchor institutions form a substantial potential market for local firms 115 These anchors are now coordinating efforts to hire local (including minority -, and women - owned) businesses to provide these products and services— essen- tially creating their own local supply chain. As Lucy Kerman of Drexel observed, "Local businesses tend to hire locally so anchors can effectively partner with local businesses, creating new jobs and new opportunities. "116 5. Ensure Access to Capital Capital is a necessary ingredient to fuel district growth and expansion. Financing in many forms and from a variety of sources is needed to support basic science and applied research; the commercial- ization of innovation; entrepreneurial start -ups and expansion (including business incubators and accelerators); urban residential, industrial, and commercial real estate (including new collaborative spaces); place -based infrastructure (e.g., energy, utilities, broadband, and transportation); educa- tion and training facilities; and intermediaries to steward the innovation ecosystem. A district -wide integrated strategy, as opposed to compartmentalized efforts, enhances the likelihood that different sources of capital will value the potential of this new form of development, ultimately supporting dif- ferent kinds of firms, institutions, and activities. Redeploy and leverage local capital Many practitioners understand the importance of garnering local capital from disparate public, private, and civic sources to spur innovation district growth, particularly in the early stages. The provision of local capital, particularly at -risk capital, is a market validator and shows that local investors are willing to back the effort. To accomplish these goals, practitioners have been intently focused on redirecting local resources to new innovative purposes and smartly leveraging these resources so that they have full impact. Practitioners point to early signs that the mixing and leveraging of different sources of local capital is already underway. City governments, for example, are smartly redirecting scarce public resources in ways that garner large private and civic investments. In St. Louis, the city government is using tax increment financing to support infrastructure improvements. The city has also designated Cortex as the master developer for the area, delegating an ample suite of redevelopment powers including the right to exercise eminent domain, abate taxes, and enter into parcel agreements with developers; those decisions have likewise leveraged hundreds of millions of dollars in private and civic sector investment 117 In 2003, for example, the Danforth Foundation announced that St. Louis - based plant and life sciences would be a predominant focus of its grant - making 718 In tandem with the McDonnell Foundation and private corporations, the Danforth Foundation led efforts to establish zo BROOKINGS I May 2014 EXHIBIT 1 the BioGenerator, a sophisticated accelerator with a non - profit seed fund. In the last five years, the BioGenerator helped close the funding gaps challenging many local startups, aiding in the successful launch of over 40 new life science enterprises. Further, this accelerator set its eyes on drawing national and regional capital, with its parent organization BioSTL hiring a dedicated person to increase access to national VCs, angel investors, and others 119 Local institutional capital is also being unlocked to spur urban regeneration. MIT, for example, has used its extensive land holdings in Cambridge to spur the development of research, entrepreneurial, commercial, office and residential space .120 In Detroit, meanwhile, philanthropic investments have been a main catalytic force. The Kresge Foundation alone recently committed $150 million over five years to implement the recommendations and strategies outlined in the Detroit Future City report, doubling down on the investments it has already made along the riverfront, in M1 Rail, in the planning for the Detroit Future City effort, and as part of both the New Economy Initiative and Living Cities 121 These investments have provided a platform for large -scale federal investments (via FHA, DOT, SBA, HUD, and other sources) as well as other state and private sector commitments. Provide a roadmap for broader private, civic and public sector investment Practitioners understand that innovation districts will only reach their full potential when companies and investors outside the city and metropolis either decide to locate facilities in the district or oth- erwise deploy capital. Practitioners recognize further that innovation districts, by providing both a geographic, economic, and entrepreneurial focus, can bring together, in a disciplined and market -ori- ented way, the disparate elements required to accelerate city regeneration and metropolitan growth. The practical implications of these insights: innovation districts must make a compelling case for investment and even create special investment vehicles tailored to disparate kinds of activities. Some innovation districts are experimenting in this regard as an avenue to raise capital. The emerging inno- vation district in Detroit, for example, is considering an investment prospectus that presents the vision and goals of the district, shows the market momentum to date (including a profile of major investors and investments), and describes current and future market opportunities. The prospectus would both make a general case for investment in the district but also target discrete classes of investors and insti- tutions (real estate developers, equity investors, large firms, venture capital, and others). The Detroit investment prospectus would cleverly build upon existing activities that have already attracted disparate kinds of investors to distinct opportunities. Invest Detroit, for example, has estab- lished a series of funds (e.g., a Predevelopment Loan Fund, an Urban Retail Fund, a Lower Woodward Housing Fund, a New Markets Tax Credit Fund) that try to match the expectations of private and civic investors with the financing needs of small- and medium -sized firms that serve different market func- tions in the downtown and midtown area .122 It is expected that the Detroit investment prospectus and the subsequent hosting of investor forums would educate the investment community about the market momentum in the innovation district and attract more capital to the specialized funds administered by an institution with a proven track record. Scaling Innovation Districts he rise of innovation districts —in all three typologies —has, to date, been a local phenomenon. Mayors and corporate, university, and philanthropic leaders, local developers, and inter- mediaries have largely driven their growth and development in most cities. A few national and global institutions have established a presence, with capital and facilities, in the leading edge districts, but most major companies and institutional investors have yet to acknowledge or adapt to this trend. The federal government has been an important but silent investor. With a few notable exceptions, states have largely acted without focus or purpose. To date, networks of innovation district practitioners and leaders remain nascent and isolated. If current trends are any indication, innovation districts will continue to grow in size and scale, fuelled by market and demographic dynamics, open innovation, local leadership, and the place based investments of large anchor institutions. But if innovation districts are to realize their full potential across the country, then asset -rich companies, civic entities and financial institutions —with expertise BROOKINGS I May 2014 19 19 EXHIBIT 1 honed from global experience —need to invest at scale. Higher levels of government also need to act with more predictability and purpose. A. Scaling Private and Civic Investment As described previously, local institutions and investors have, to date, played the primary role in powering growth and innovation district development forward, leveraging local institutional assets and sharpening their case for broader investment. A few institutions of national scope —tech giants like Microsoft and Google, big pharmaceutical companies like Pfizer and Novartis, large urban devel- opment firms like Forest City Enterprises and life science focused real estate investment trusts like Alexandria Equities —have spotted the emerging trend and moved facilities and capital to the leading edge innovation districts. But, for the most part, large national and global institutions have not partici- pated at scale. Several things are necessary if that is to happen. First, innovation districts need to be recognized as a separate sub - metropolitan /sub -urban geography worthy of focused data collection and analysis by companies that follow urban real estate and innova- tion trends. Markets are created when risks and returns are made transparent, so that investors can invest in an informed way. Tracking economic trends in innovation districts (e.g., residential growth, real estate value appreciation, business formation and growth, tech transfer activity) will give investors the confidence to enter the market at scale. Companies that invest in innovative firms and start -ups will look at a broader set of cities and metropolitan areas for their investments. Companies with expertise in delivering mixed -use development and urban - oriented retail (e.g., Post Properties, Whole Foods) will see innovation districts as fertile geography for their products and services and locate accordingly. Firms that either provide innovative products and services (or provide legal, accounting, marketing, and other advice to such firms) will shift locations as well ?23 Given the potential for job creation in the districts, philanthropies, corporate as well as civic, will see the wisdom of supporting efforts to make innovation more inclusive. And given the entrepreneurial spirit of these new communities, demand for crowd - funding for creative and community projects will grow exponentially. Innovation districts represent, in short, a form of market creation, which will grow in size and scale as data and analytics are sharpened, first mover firms show decent returns on their initial investments and standards and models for more routinized investment are established. Second, and more aspirational, innovation districts ultimately need to be treated as a unified asset class that recognizes the synergistic effect of disparate investments that strengthen and reinforce each other's value, rather than as a collection of separate and unrelated investments. This is a major challenge to the status quo. Financial institutions, governmental agencies, and philanthropies com- partmentalize all aspects of financing (equity investments, debt lending, and grant making just to name a few) even though the focus of these investments (e.g., housing, infrastructure, small business) are physically located in small geographies and interact in a way that enhances value for each of the disparate elements. Innovation districts, by contrast, offer a possible vehicle for "thinking horizontally across industries and sectors" and overcoming the propensity of investments in cities to come from fragmented sources in "vertical silos. "724 As innovation districts evolve, the hope is that this insight will spur new financial innovations and unleash new flows of capital. Large commercial banks might establish special initia- tives to bring spatial coherence to their current array of aspatial products and financing vehicles. Other large financial institutions might invest directly in firms and intermediaries at the cutting edge of design, execution, and management of this new development form (Blackstone's investment in the mixed use developer Eden Communities is an early example of this kind of capital shift). The end result of this: an ample supply of early stage venture capital and commercial lending becomes available in innovation districts to support the building and expansion of innovation - related firms, reinforced by real estate, small business, and community lending to create the housing and mixed -use buildings these firms and their workforce need to thrive. zz BROOKINGS I May 2014 EXHIBIT 1 B. Smart Feds, Smart States The federal government and states, to date, have not intentionally driven the rise of innovation dis- tricts and, for the most part, have not even been cognizant of the trend. Their active engagement and involvement could accelerate the growth of districts, provided it respects the organic and differenti- ated nature of this nascent trend. They have three important roles to play: spurring innovation and entrepreneurial growth, financing land and infrastructure improvements, and boosting human capital. Spurring Innovation and Entrepreneurial Growth It is simply impossible to imagine the late 20th century rise of "cities of knowledge" in Silicon Valley, the Research Triangle, or the Boston megalopolis without recognizing the foundational role played by federal investments in basic and applied science and state investments in public universities125 The federal and state governments, in short, have provided the institutional platform for innova- tion, the base for the generation and commercialization of ideas and the creation and expansion of companies 126 The federal and state governments do, however, play disparate roles. For example, the federal government dominates in research funding, with federal actual outlays for R &D in FY 2011 of $125.7 billion, compared to state (and local) governments which account for only 1 percent of national R &D expenditures, with $3.8 billion in 2011, most of which is for academic R &D at colleges and universi- ties127 The federal government also supports the start -up, expansion, and trading activity of firms through the lending activity of the Small Business Administration and the Export- Import Bank. The states, by contrast, are major direct investors in public universities, advanced research aligned with state economic clusters and competitive advantages, and tax and spending investments in sophisti- cated building and equipment. The general message to both the federal and state governments is to stay the course and continue to provide consistent platform funding and support for innovation. At a time of increasing fiscal aus- terity, maintaining the status quo would be victory enough. Yet there are several more targeted roles that the federal government and particularly the states should consider. > The smart location of advanced research institutions: Given the shifting spatial geography of innovation, the federal government and states should consider locating new or existing advanced research facilities (or providing incentives for the location of such facilities) in innovation districts. The federal government achieved this when it located the first National Manufacturing Innovation Institute, focused on additive manufacturing, in the downtown of Youngstown, Ohio, close to the existing base of small and medium -size manufacturing firm S128 The state of California achieved this when it located the Institute for Regenerative Medicine in the Mission Bay district of San Francisco 729 As described earlier, the shifting of public university advanced research facilities to innovation districts (e.g., the location of UW Medicine in the South Lake Union district of Seattle) has become a recognized trend. In the next decade, states in particular would be wise to rethink the location of the research arms of institutions of higher learning to spur market creation and radi- cally increase the return on state investment during a period of fiscal challenges. > Targeted research funding: As federal funds for advanced research become scarcer, states would be wise to dedicate focused capital to advanced research efforts that builds on their special sector niches and competitive advantages. A recent Brookings paper noted the increased use of ballot box referendums for these purposes in California, Massachusetts, New Jersey, New York, and Texas 130 > Catalytic funding: States are often involved in particular tax and spending transactions that help grow the institutional platform for innovation in cities and metropolitan areas. The state of New York, for example, recently allocated $45 million to Buffalo to facilitate the expansion of the Columbus, Ohio -based Edison Welding Institute, one of the most advanced shared infrastructure facilities in the United States 73' The state of Massachusetts, meanwhile, recently made a $5 million grant to facilitate the building of the LabCentral facility in Cambridge 132 These kinds of targeted investments for capital projects complement the more routine funding that is available for basic science and applied research and, if located in strategic places, can promote synergy and rapid commercialization. BROOKINGS I May 2014 19 19 EXHIBIT 1 Financing /Regulating Land and Infrastructure The federal government and states have traditionally played a large role in the financing and regula- tion of the physical realm of cities. To varied degrees, both levels of higher government make direct or indirect investments in transit, roads, other infrastructure, parks, housing, and other capital improvements. States also determine building codes and standards of construction, establish how tax delinquent properties can be foreclosed, and dictate the ground rules for using eminent domain. As with innovation funding, federal and state funding for major physical assets have been unreli- able in recent years, either due to revenue shortfalls in dedicated funds (e.g., the federal Highway Trust Fund) or partisan gridlock (e.g., the failure to reauthorize federal transportation laws on a timely basis). Thus, the first order of business is to make funding more reliable and predictable, and more flexible so that cities and metropolitan areas can apply the funding to the special needs of innovation districts. But, several other focused engagements should be considered. > Smart removal of infrastructure barriers: Many innovation districts, particularly those located near waterfronts and downtowns, still bear the scars of mid -20th century freeway construction that often divided communities and disrupted the organic street grid and connectivity of urban places. The removal and reconstruction of such infrastructure provides a means to spur innovative markets. The rise of the innovation district in the Boston Waterfront is, in many respects, a consequence of the Big Dig project to tear down and bury key highways, thereby re- connecting the waterfront to the broader city and metropolis. Similar efforts are underway in cities as diverse as Akron, Detroit, and Syracuse and will have enormous impact on investment and jobs once concluded. > Smart use of tax incentives: Innovation districts often house properties of historic value, which, if renovated and repurposed, could be a critical component of a district's brand and growth. They also tend to contain land parcels that are still contaminated by prior industrial use and require remediation that costs more than market value can bear. Targeted tax incentives for historic preservation, brownfield remediation, and land assembly have a high return on investment when applied in emerging innovation districts and should be encouraged and expanded. The Cortex district in St. Louis has already taken smart advantage of Missouri tax incentives and is a model in this regard 733 > Smart mortgage standards: Innovation districts thrive when housing, retail, and small -scale innovative activities are co- designed and co- located near transit stops and anchor institutions. In the past, federal government sponsored entities and other federal and state agencies disfavored such mixed- use developments, setting a platform instead for large scale financing of single family homes. As housing reforms take hold in the aftermath of the Great Recession, sensible standards around mixed -use development and multifamily housing would benefit the smart, fiscally prudent growth of innovation districts. Boosting Human Capital The federal government and states heavily influence the delivery of basic education and skills train- ing in cities and metropolitan areas. The U.S. Department of Education spent some $68 billion in FY 2011, on both K -12 and higher education, plus another $29 billion in tax expenditures related to education. States spent $261 billion of their own funds for the same purpose, while local governments spent nearly $600 billion on education ?34 Relatedly, the U.S. Department of Labor spent $9.7 billion on employment and training programs in FY 2011'35 Innovation districts benefit when these large scale federal and state resources are applied in a way that can be customized to their special education and skills needs. To this end, several models are worth considering: > Apprenticeship Carolina helps South Carolina firms in a handful of key industry clusters establish apprenticeship programs that provide effective on- the -job training opportunities for prospec- tive employees. It is based out of the South Carolina Technical College System. Consultants from Apprenticeship Carolina provide assistance throughout the development process, working with firms to create apprenticeships that meet the requirements of the national Registered Apprentice- ship system'36 Fza] BROOKINGS I May 2014 EXHIBIT 1 > Oregon's Career Pathways initiative is focused on increasing the number of Oregonians with post- secondary certificates and degrees to prepare them for employment for jobs requiring more than a high school diploma but less than a Bachelor's degree. It is offered through the state's 17 com- munity colleges and is designed to provide "stackable credentials" of academic certificates (12 -44 credits) that can lead either to immediate employment or to the next academic credential within the career pathway, potentially leading to an associate's degree. At Portland Community College, the Career Pathways initiative includes courses and certificates in fields such as accounting, manu- facturing, and medical coding137 > New York State Pathways in Technology Early College High School (NYS P -TECH) initiative is an effort to prepare thousands of disadvantaged students for jobs in such sectors as technology, manufacturing, healthcare and finance. The model is a six year, "9 -14" program that combines high school, college, and career training and involves close partnerships with core industries 738 The Path Forward he potential for innovation district growth in the United States is exceptionally strong. Virtually every major city in the United States has an "anchor plus" play given the conflu- ence of a strong central business district (mostly for the congregation of government and corporate headquarters, entertainment venues, and cultural functions), a strong midtown area (where advanced research institutions and medical campuses tend to concentrate), and a state - of- the -art transit corridor connecting the two. Many cities and older suburban communities are also making progress on "re- imagined urban areas," repositioning underutilized sections of their community through investments in infrastructure (or infrastructure removal), brownfield remediation, waterfront reclamation, and transit - oriented development. Lastly, a handful of "urbanized science parks" (and their adjacent suburban communities) are clustering development, encouraging density, and creating spaces to allow individuals and firms to network openly. The rise of innovation districts seem perfectly aligned with the disruptive dynamics of our era: "crowd sourced rather than close sourced, entrepreneurial rather than bureaucratic, networked rather than hierarchical. "739 They also intensify the very essence of cities: an aggregation of talented, driven people assembled in close quarters, who exchange ideas and knowledge in what urban historian Sir Peter Hall calls a "dynamic process of innovation, imitation, and improvement. "740 Innovation districts, in short, represent a clear path forward for cities and metropolitan areas. Local decision makers — elected officials and heads of large and small companies, local universities, philanthropies, community colleges, neighborhood councils and business chambers —would be wise to unleash them. Global companies and capital would be smart to embrace them. States and federal government should support and accelerate them. The result: a step toward building a stronger, more sustainable and more inclusive economy in the early decades of this young century. BROOKINGS I May 2014 19 19 EXHIBIT 1 F,ildnotes 9. Mark Muro and Alec Friedhoff, "Metropolitan Jobs Recovery? Not Yet." Brookings, The Avenue, April 2014. 1. Anchor institutions are research universities and research - oriented medical hospitals with extensive R &D. 10. Brookings analysis of Census data. 2. Select excerpts in this and future sections came from 11. For more, see Bruce Katz and Jennifer Bradley, The the recent book, The Metropolitan Revolution: How Cities Metropolitan Revolution: How Cities and Metros are and Metros are Fixing our Broken Politics and Economy, Fixing our Broken Politics and Economy (Washington: Innovation Districts chapter, co- authored by Bruce Katz Brookings, 2014). and Jennifer Bradley. 3. Pete Engardio, "Research Parks for the Knowledge Economy," Bloomberg Businessweek, June 1, 2009. 4. The term 'innovation ecosystem' is commonly defined and described in technology and business develop- ment magazines, newspapers, and on blogs. Brookings developed this expanded definition to incorporate a more extensive list of variables observed to contribute to the innovation ecosystem at the district scale. 5. Our observations are based on extensive interviews with practitioners and leaders on- the - ground, visits to more than a dozen districts in both the United States and Europe, reviews of other scholarly research on this trend and specific fields of study (such as the growing field of networking and the changing nature of physical plan- ning), and a roundtable discussion held at the Brookings Institution in April 2013 with nationally- recognized urban development experts. 6. To learn more about 22 @Barcelona, refer to the website: www.22barcelona.com. Another source was co- authored by the CEO of 22 @Barcelona, Josep Miguel Pique'. Refer to Montserrat Pareja - Eastaway and Josep Miguel Pique', "Urban Regeneration and the Creative Knowledge Economy: the Case of 22@ in Barcelona;' Journal of Urban Regeneration and Renewal 4 (4) (2011):1-9. 7. Research Triangle Foundation of North Carolina, "Research Triangle Park: Master Plan" (2011). 8. Brookings research, supported by supplemental research by Wexford Science and Technology, identified three other "urbanized science park" examples: University Research Park at the University of Wisconsin- Madison, available at www.universityresearchpark.org /property/ urp2/ (April 11, 2014); the University of Virginia Research Park, available at www.uvaresearchpark.com /the -park/ park -map/ (April 112014); and the University of Arizona Tech, available at www.techparks.arizona.edu /parks/ ua- tech - park /planning - development (April 11, 2014). F26] 12. Lydia DePillis, "Dinosaur Makeover: Can Research Triangle Park Pull Itself Out of the 1950s ?" New Republic, October 12, 2012. Available at www.newrepublic.com / article/108527/can-research-triangle-park-pull-itself-out- 1950s (April 19, 2014). 13. Edward K. Muller and Paul A. Groves, "The Emergence of Industrial Districts in Mid - Nineteenth Century Baltimore" Geographical Review 69 (2) (1979):159-178. 14. Ibid. 15. Ibid. 16. Asa Lindholm Dahistrand and Helen Lawton Smith, "Science Parks and Economic Development:" In Prasada Reddy, ed., Globalization Of Technology: Issues In Technology Transfer And Technological Capability Building (UNESCO- EOLSS). 17. Thomas Hutton, "The New Economy of the Inner City;' Cities 21 (2)(2004): 89 -108, p. 90. 18. Michael Jaroff, Dennis Frenchman, Francisca Rojas, "New Century City Developments Creating Extraordinary Value" (Cambridge: Massachusetts Institute of Technology, 2009). 19. George Bugliarello, "Urban Knowledge Parks Knowledge Cities and Urban Sustainability," International Journal Technology Management 28 (3) (2004): 388 -394. 20. American Institute of Architects, "Cities as a Lab: The Innovation Economy" (2013), p. 2. 21. Richard Florida, "Startup City: The Urban Shift in Venture Capital and High Technology" (Toronto: Martin Prosperity Institute, 2014). 22. Personal communication from Dennis Lower, President and CEO of Cortex, April 16, 2014. See also, Innovation District Boston, "Boston's Innovation District: 3 years and counting," February 13 2013, available at, http: // www.innovationdistrict.org/wp-content/uploads/2013/03/ BROOKINGS I May 2014 In nova tio n Dist rict_NewJobs Re port-2013-03-01 FINAL2_contact.pdf ; 23. Recent economic analysis conducted in the cities of Pittsburgh, New York and San Francisco gives further evidence to this shift into the urban landscape. For New York, the report was written by the Center for an Urban Future, "New Tech City" (2012). For Pittsburgh, the paper was written by Ernst & Young LLP and Innovation Works, Inc. "Building Momentum: Investing in Pittsburgh's Technology Sector" (2014). For San Francisco, the report was written by South Mountain Economics, LLC "A Balanced and Growing Economy: How San Francisco is Making the Transition to a Digital City" (2014). 24. Jonathan Rothwell, "The Hidden STEM Economy" (Washington: Brookings Institution, 2013). 25. Mark Muro, Kenan Fikri, and Scott Andes, "Powering Advanced Industries State by State" (Washington: Brookings Institution, 2014). 26. Her Majesty's Treasury and the Office of the Deputy Prime Minister, "Devolving Decision Making: Meeting the Regional Economic Challenge; The Importance of Cities to Regional Growth" (London: Office of the Deputy Prime Minister, 2006). 27. Gerald Carlino and Robert Hunt, "The Agglomeration of R &D Labs" (Philadelphia: Federal Reserve Bank of Philadelphia, 2012). Carlino's work is part of a much broader base of literature that exists pertaining to proximity and innovation. Stuart Rosenthal and William Strange, for example, have found that the intellectual spillovers that drive innovation and employment drop off dramatically as firms and people move further apart. Refer to Stuart S. Rosenthal and William C. Strange, "Evidence on the Nature and Sources of Agglomeration Economies;" in Handbook of Urban and Regional Economics, edited by J. V. Henderson and J. F. Thisse (New York: Elsevier, 2004). 28. Kyungjoon Lee and others, "Does Collocation Inform the Impact of Collaboration ?," PLoS One 5 (12) (2010), avail- able at www.plosone.org / article /info:doi /10.1371 /journal. pone.0014279 (April 10, 2014). Also refer to Katie DuBoff "Close Proximity Leads to Better Science;" Harvard Medical School at hms.harvard.edu /news /close- proxim- ity- leads- better - science- 12 -15 -10 (April 11, 2014). 29. Joe Cortright, "Making Sense of Clusters: Regional Competitiveness and Economic Development" (Washington: Brookings Institution, 2006). BROOKINGS I May 2014 30. Antonio Ciccone and Robert Hall, "Productivity and the Density of Economic Activity," American Economic Review 86 (1) (1996): 54 -70. 31. William Hoffman, "The Shifting Currents of Bioscience Innovation," Global Policy 5 (1) (2014): 76 -83. 32. South Mountain Economics, LLC, "A Balanced and Growing Economy: How San Francisco is Making the Transition to a Digital City" (2014), p. 4. 33. Ibid, p. 12. 34. Center for an Urban Future, "New Tech City" (2012), p. 9 35. Ibid, p. 10. 36. Henry Chesbrough, "The Era of Open Innovation;' MIT Sloan Management Review 44 (3) (2003): 35 -41. 37. Daniel Pacthod and Michael Park, "How can the US advanced - industries sector maintain its competitive- ness?" (New York: McKinsey & Company, 2012), p. 2. 38. Suzanne Berger, Making In America: From Innovation to Market (Cambridge: MIT Press, 2013). 39. The increased emphasis on collaboration may even extend to the important interplay of innovation and production as the economy evolves and 3 -D printing and other disruptive technology accelerate prototyping and enable small -scale and customized manufacturing. The first National Manufacturing Innovation Institute, which focused on additive manufacturing, is located in the downtown of Youngstown, Ohio, close to the existing base of small and medium -size manufacturing firms. The midtown Detroit location of the watch- and bicycle - making firm Shinola, close to the College for Creative Studies (known for industrial design), is further evidence of this trend. 40. Karen Weintraub, "Biotech Players Lead Boom in Cambridge" The New York Times, January 2, 2013. This reference reminds us that an economy driven by knowl- edge bestows new importance on institutions of knowl- edge such as universities, medical research centers, private research institutions and innovation institutes. These institutions tend to be disproportionately located in cities and other urban places. Over 1,900 colleges and universities, more than half the nation's total, are located in the urban core of metropolitan areas and account for roughly 74 percent of all research expenditures at U.S. research universities. Coalition of Urban Serving Universities, "Urban Universities: Anchors Generating EXHIBIT 1 19 19 Prosperity for America's Cities;' (Washington: Coalition of Urban Serving Universities, 2010). Research has also found a high correlation between the nation's leading biotech clusters and the strength (e.g., medical research capacity, NIH grants, PhD graduates) of local universities. Refer to Joseph Cortright and Heike Mayer, "Signs of Life: The Growth of Biotechnology Centers in the United States" (Washington: Brookings, 2002). 41. Quentin Hardy, "The Monuments of Tech" New York Times, March 1, 2014. 42. Personal communication from Randy Howder, Senior Associate, Workplace Strategist, Gensler, February 20, 2013. 43. Leigh Gallagher, "Tony Hsieh's new $350 million startup:' Fortune, January 23, 2012. 44. United States Census Bureau, "Energy Boom Fuels Rapid Population Growth in Parts of Great Plains; Gulf Coast Also Has High Growth Areas, Says Census Bureau" (2014). 45. William H. Frey, "A Population Slowdown for Small Town America" (Washington: Brookings Institution, 2014). Available at www.brookings.edu /research/ opi n ions /2014/03/31 -popu lat ion - slowdown -sma I I -town- america -trey (March 2014). EXHIBIT 1 51. Richard Florida, The Rise of the Creative Class And How It's Transforming Work, Leisure and Everyday Life (New York: Basic Books, 2002). 52. Joseph Cortright, "Young and the Restless 2011" (Washington: CEO for Cities, 2011). 53. Urban Land Institute, "America in 2013" (2014). 54. Michael Kimmelman, "Building a Better City" New York Times, October 16, 2013. For shift in housing /location preferences for a particular metro, see Kinder Houston Area Study, conducted by Kinder Institute for Urban Research at Rice University. 55. During our research, some innovation districts were found to organize their assets into two categories: hard factors and soft factors. Hard factors are defined col- loquially as the "hard stuff;' such as the infrastructure and the physical structure of buildings that create the compact, urban form. Soft factors are the "soft stuff," such as firms, people, and the important connections between them. We broke these two factors apart into economic, physical, and networking assets to enunciate the range of disciplines at play. 56. 46. Paul R. Levy and Lauren M. Gilchrist, "Downtown Rebirth: Documenting the Live -Work Dynamic in 21st Century U.S. Cities:' Prepared for the International Downtown Association by the Philadelphia Center City District. Available at www.definingdowntown.org /read- the - report/ (April 2014). 57 47. Jonathan Vespa, Jamie M. Lewis, and Rose M. Kreider, "America's Families and Living Arrangements: 2012: Population Characteristics" (Department of Commerce, United States Census Bureau, 2013). Available at www. census .gov /prod /2013pubs /p2O- 570.pdf (April 2014). 58. 48. Arthur C. Nelson, Reshaping Metropolitan America: Development Trends and Opportunities to 2030 (Washington: Island Press, 2013), p. 27. 49. Urban Land Institute, "America in 2013: A ULI Survey of Views on Housing, Transportation, and Community" (2013). 50. Nelson, "Reshaping Metropolitan America." Fza] In this paper, assets are neatly bucketed under one of these three categories although several important assets can actually fit under more than one category. Shared workspace provides the best illustration of this inter- changeability. While clearly a physical asset, it is also an economic asset (as economic activity is generated there), and a networking asset (as networking with adjacent start -ups often occurs there). Two sources are contributing to this observation. For the first, refer to William Hoffman, "The Shifting Currents of Bioscience Innovation," Global Policy 5 (1) (2014): 76 -8. For the second, refer to South Mountain Economics, LLC., "Where the Jobs Are: the App Economy" (2012). Research conducted by Hutton is particularly insightful with respect to the clustering of creative fields in urban enclaves. Refer to Hutton, "The New Economy of the Inner City." 59. In touring innovation districts across the country, Bruce Katz witnessed repeatedly the presence of small manu- facturing firms that rely on advanced technology. For more, see Alicia Rouault, "City Made: the case for small urban manufacturers;' CoLab Radio, March 26 2012, available at http: / /colabradio.mit.edu /city- made - the -case- for- small- urban - manufacturers /; See also Nisha Mistry BROOKINGS I May 2014 EXHIBIT 1 and Joan Byron, "The Federal Role in Supporting Urban Manufacturing," (Washington: Brookings Institution, 2011). 60. Luc Anselin, Atilla Varga and Zoltan Acs, "Local Geographic Spillovers between University Research and High Technology Innovations," Journal of Urban Economics 42 (1997): 422 -448, p. 440. 61. Naomi Hausman, "University Innovation, Local Economic Growth, and Entrepreneurship" (Cambridge: Harvard University, Center of Economic Studies, 2012). 62. Aaron Chatterji, Edward Glaeser, William Kerr, "Clusters of Entrepreneurship and Innovation," Innovation Policy and Economy Forum, April 2013. 63. Personal communication from Kairos Shen, Director of Planning, Boston Redevelopment Authority, September 1, 2012. 64. Ajay Agrawal and others, "Why Are Some Regions More Innovative Than Others ?: The Role of Firm Diversity" (Cambridge: National Bureau of Economic Research, 2012). 65. Michael Mandel of South Mountain Economics offers great detail in how to measure supportive industries. Please refer to South Mountain Economics, LLC. "Where the Jobs Are: the App Economy" (2012). 66. Personal communications from Ylva Williams, Chief Executive Officer, Stockholm Science City Foundation, April 2, 2014. 67. Christopher Leinberger, Nonresident Senior Fellow at the Brookings Metropolitan Policy Program has written extensively on the value of neighborhood- serving ameni- ties as being one factor in creating "walkable urbanity." Refer to Christopher Leinberger and Mariela Alfonzo, "Walk this Way: The Economic Promise of Walkable Places in Metropolitan Washington DC" (Washington: Brookings Institution, 2012). 68. Thomas Hutton, "The New Economy of the Inner City;' p. 93. 69. Joroff, Frenchman, and Rojas, "New Century City Developments Creating Extraordinary Value:' 70. Ibid. 71. Ibid. 72. Personal communication from Josep Pique', CEO 22@ Barcelona, 22 @Barcelona, September 12, 2013. 73. Papers citing the value of networking include: Tom Elfring and Willem Hulsink, "Networking by entre- preneurs: patterns of Tie - Formation in Emerging Organizations," Organization Studies (28)(2007): 1849 -1866; Fabio Antoldi, Daniele Cerrato, Donatella Depperu, Export Consortia in Developing Countries (Heidelberg: Springer- Verlag Berlin, 2011); Anna Lee Saxenian, The New Argonauts: Regional Advantage in a Global Economy (Cambridge: Harvard University Press, 2006); Walter Powell, Kenneth Koput, Laurel Smith - Doerr, "Interorganizational Collaboration and the Locus of Innovation: Networks in Learning in Biotechnology," Administrate Science Quarterly 41 (1) (1996): 116 -145; and OECD, "The Knowledge Based Economy" (1996). 74. On this subject, Saxenien explained that the differences between the Valley and Route 128 "have been overlooked by economic analysts or treated simply as superficial differences between "laid- back" California and the more "buttoned- down" east coast. Far from superficial, these variations demonstrate the importance of local social and institutional determinants of industrial adapta- tion. Refer to Anna Lee Saxenian, "Inside Out: Regional Networks and Industrial Adaptation in Silicon Valley and Route 128;' Cityscape: A Journal of Policy Development and Research 2 (2) (1996): 41 -60. 75. Personal communication from Bert -Jan Woertman, Marketing and Communications Director, High Tech Campus Eindhoven, September 5, 2013. 76. Josh Lerner, "Corporate Venturing," Harvard Business Review 91 (10) (2013): 86 -94. 77. Mark Granovetter, "The Strength of Weak Ties," American Journal of Sociology 78 (6) (1973):1360-1380. 78. David Krackhardt, "the Strength of Strong Ties: the Importance of Philos in Organizations." In Nitin. Nohria and Robert Eccles, eds., Networks and Organizations: Structure, Form, and Action (Boston: Harvard Business School Press, 1992). 79. Tom Elfring and Willem Hulsink, "Networks in entre- preneurship: the case of high- technology firms;' Small Business Economics 21 (2003): 409 -422. 80. Personal communications from Dennis Lower, President and CEO, Cortex, October 3, 2013. BROOKINGS I May 2014 W 19 19 EXHIBIT 1 81. Eindhoven is not an innovation district, it is a regional 88. Dominique Foray and Xabier Goenaga, "The Goals economic cluster dedicated to advancing innovation- of Smart Specialisation;' Policy Brief Series 01/2013 oriented sectors. Eindhoven was still used as a case given (European Commission, 2013). their emphasis on open innovation, entrepreneurial and small firm development, and networking. 89. Personal communications from Ylva Williams, Chief Executive Officer, Stockholm Science City Foundation, 82. Professor Etzkowitz, previously with Newcastle University April 11, 2014. For more information on this event, which in the UK, developed the Triple Helix after observing will take place in August 2014, refer to www.digitalhealth- that innovation has shifted from a "hands off' linear days.se (April 14, 2014). model of innovation, which is an internal process within and among firms, to an "assisted" model of innova- 90. Citing the case of Village of Euclid v Amber Reality Co, tion that involves a coalition of three types of actors: 272 U.S. 365 (1926). industry, university and government. Its foundation was built on groundbreaking laws, such as the US Bayh -Dole 91. Personal communications from Ylva Williams, Chief Act of 1980 that permits universities, small businesses Executive Officer, Stockholm Science City Foundation, or non - profit institutions to pursue ownership of an April 2, 2014. invention funded by federal R &D dollars. This opened up the viability of universities transforming from a pure 92. Significantly, Philadelphia is contemplating a similar teaching institution to one of research and ultimately transformative intervention around 30th Street Station, entrepreneurialism, an important shift that led to the a stone's throw from Drexel University and the powerful Triple Helix. Sweden, developed a similar policy called development along Market Street. "Teachers Exemption," which allows teachers /professors to own the right to their own patentable inventions even 93. Personal communications from Dennis Frenchman, if they are made during working hours. Leventhal Professor of Urban Design and Planning, MIT, March 21, 2014. 83. Personal communications from Donn Rubin, President & CEO, BioSTL, March 24, 2014. 94. Research Triangle Foundation of North Carolina, "Research Triangle Park: Master Plan;" p.11. 84. In Houston, for example, the Texas Medical Center had for decades the primary purpose of managing the 95. Cathy Stanton, The Lowell Experiment: Public History parking and facilities of the nation's most extensive in a Post Industrial City (Massachusetts: University of medical campus. In recent years, under new leadership, Massachusetts Press, 2006). the Center has expanded its role to include promoting collaboration on data and research across key member 96. Nick Leon, "Attract and Comment: The 22 @Barcelona institutions. Innovation District and the Internationalisation of Barcelona Business," Innovation: Management, Policy & 85. Ajuntament de Barcelona, " 22 @Barcelona, the Innovation Practice 10 (2) (2008): 235 -246. District;' presentation to the Brookings Institution, 2011. 86. The ecosystem and physical landscape that devel- oped in Cambridge (around MIT), for example, is quite distinct when compared to what developed in San Francisco (around the California Institute for Regenerative Medicine) in Seattle (around the University of Washington) or in Houston (around the Texas Medical Center). Each of these innovation districts, however, is deeply enmeshed in life sciences and the bio- medical field. 87. Technology Partnership Practice, Battelle Memorial Institute, "Plant and Life Sciences for St. Louis: The Technology Gateway for the 21s' Century" (2000). 97. Yvonne van Hest, Manager, International Labour Market Development, Brainport Development, Presentation "Talent Attraction and Retention in the Brainport Eindhoven Region (NL) ". 98. Sasha Pasulka, "A Glympse of the future in Seattle's South Lake Union" Geek Wire, April 20, 2012. Refer to www.geekwire.com/2012/glympse-future-seattles-south lake- union/ (April 17 2014). 99. Yvonne van Hest, Manager, "Talent Attraction and Retention in the Brainport Eindhoven Region (NL) ". 100. Personal communications from Dennis Lower, President and CEO, Cortex, October 3, 2013. a BROOKINGS I May 2014 101. Battelle Technology Partnership Practice, "Driving Regional Innovation and Growth: The 2012 Survey of North American University Research Parks" (2013). 102. Personal communications from Johannes Fruehauf, founder of LabCentral, Cambridge, MA, December 16, 2013 103. Personal communications from Dennis Lower, President and CEO, Cortex, March 15, 2014. 104. Personal communications from Josep Pique', CEO of 22 @Barcelona, 22 @Barcelona, March 27, 2013. 105. Jaroff, Frenchman, and Rojas, "New Century City Developments Creating Extraordinary Value:' 106. Battelle Technology Partnership Practice, "Driving Regional Innovation and Growth: The 2012 Survey of North American University Research Parks ". 107. Drexel Now, "Drexel and Key Partners Receive Grant in Support of New Public Schools in West Philadelphia;' September 25, 2012; and Solomon Leach, "SRC approves the sale of eight school properties for $38 million," Phillycom, March 21, 2014. 108. Personal communications from Thomas Anderson, CEO, The Electrum Foundation and Kista Science City, April 2, 2014. 109. Personal communications from Dennis Lower, President and CEO, Cortex, October 3, 2013. 110. Johnathan Rothwell, "The Hidden Stem Economy" (Washington: Brookings Institution, 2013). 111. Personal communications from Lucy Kerman, Vice Provost, University and Community Partnerships of Drexel University, February 5, 2014. 112. The OECD defines informal settlements as "areas where groups of housing units have been constructed on land that the occupants have no legal claim to, or occupy illegally." 113. Personal communications from Jenni Young, Carlo Ratti Associati, Srl, October 16, 2013. 114. Personal communications from Lucy Kerman, Vice Provost, University and Community Partnerships of Drexel University, February 5, 2014. BROOKINGS I May 2014 115. City of Philadelphia, Office of the Controller, "Survey of the Current and Potential Impact of Local Procurement by Philadelphia Anchor Institutions" (2014). 116. Personal communications from Lucy Kerman, Vice Provost, University and Community Partnerships of Drexel University, February 5, 2014. 117. Cortex, "The History of Cortex: a Transformative Community Partnership" (2013). 118. "Danforth Foundation Shifts Focus, Cuts Staff," available at www.philanthropynewsdigest.org /news /danforth -foun- dation- shifts - focus - cuts -staff (April 19, 2014). 119. Personal communications from Donn Rubin, President & CEO, BioSTL, March 24, 2014. 120. Brock Parker, "Kendall Sq. zoning revamped;' Boston Globe, April 9, 2013. 121. John Gallagher, "Kresge Foundation pledges $150 mil- lion toward Detroit Future City plan" Detroit Free Press, January 9, 2013. 122. For more on InvestDetroit's managed funds, refer to www.investdetroit.com /managed- funds/ (April 15, 2014). 123. Some innovation district service companies are likely to initiate in one district and then expand to others. The Cambridge Innovation Center, a technology and life sciences business incubator that has helped launch over 1,200 companies near MIT since 1999, recently announced that it will expand its operations and start -up support services in Baltimore and St. Louis. See Michael B. Farrell, "Cambridge Innovation Center branches out: Kendall -based operation looks beyond Massachusetts," Boston.com, February 17, 2013. University Park at MIT, for example, is now a model for other Forest City develop- ments including the Science + Technology Park at Johns Hopkins in East Baltimore, the Translational Research Lab at the University of Pennsylvania in Philadelphia and the Colorado Science + Technology Park adjacent to the Fitzsimons Life Science District in Aurora, Colorado. Refer to www.forestcity .net /properties /work /science_ technology (January 2013). 124. Interview with Alicia Glen at www8.gsb.columbia.edu/ realestate /newsn /2408##.UO_glX -9KKO; see also www.bus.miami.edu /faculty- and - research /conferences- and- seminars /re20l4 /papers /asset- class.htmI EXHIBIT 1 19 19 125. The phrase "cities of knowledge" comes from Margaret Pugh O'Mara's excellent book of the same name. Her book is a careful exposition of the role of the federal government in creating Silicon Valley, and of the efforts of other places to create their own comparable centers of knowledge and economic development. 126. Margaret Pugh O'Mara, Cities of Knowledge: Cold War Science and the Search for the Next Silicon Valley (Princeton: Princeton University Press, 2005). 127. National Science Foundation, "Science and Engineering Indicators, 2014," available at www.nsf.gov /statistics/ seindl4 /index.cfm /chapter- 4 /c4sl.htm #s3 (April 19, 2014). 128. For more, see The White House Office of the Press Secretary, "We Can't Wait: Obama Administration Announces New Public- Private Partnership," August 16, 2012. See also, Mark Muro and Scott Andes, "Kludging Out Progress: The Case of Manufacturing Hubs," Brookings, The Avenue, March 2014. 129. "Mayor Newsom Unveils San Francisco's Stem Cell Headquarters Package," March 17, 2005, at www.sfmayor. org/ftp/archive/209.126.225.7/archives/PressRoom_ NewsReleases _2005_31124 /index.html (April 19, 2014). 130. Jessica Lee, Muro and Katz, "Using Ballot Measures to Drive Economic Investment in States and Metropolitan Areas" (Washington: Brookings Institution, 2013). 131. Matt Glynn, "Buffalo Niagara Advanced Manufacturing Institute announced for downtown Buffalo" Buffalo News, February 27, 2014. 132. Refer to the Massachusetts Life Sciences Center, Capital Program found at www.masslifesciences.com /programs/ capital/ (April 15, 2014). 133. For more on CORTEX and the support from the Missouri Development Finance Board see, for example: Evan Binns, "CORTEX set to unveil next stage of development," St. Louis Business Journal, October 19, 2012, available at www.bizjournals.com /stlouis /print- edition /2012/10/19/ cortex - set -to -u nvei I- next - phase -of. htm I? page =a I I (April 18, 2014). 134. Department of Education expenditures via "Education Department Budget History Tables- 1980 - 2014;' available at www2.ed.gov/ about /overview /budget /history /edhis- tory.pdf (April 18, 2014); Education tax expenditure data via Joint Committee on Taxation, "Estimates of Federal 32 EXHIBIT 1 Tax Expenditures, FY2011- 2015," available at, www.jct. gov/ publications .html ?func= startdown &id =4385 (April 18, 2014); State and local education expenditures via U.S. Census Bureau, "State and Local Government Finances Summary, 2011," available at, www2.census.gov /govs/ local /summary_report.pdf (April 18, 2014). 135. See United States Department of Labor, "Summary of Discretionary Funds - fiscal years 2004 - 2013;' available at, www.dol.gov /dol /budget /2013 /Chart.htm (April 18, 2014). 136. See Apprenticeship Carolina website at www.apprentice- shipcarolina.com/ (April 18, 2014). 137. See Portland Community College Career Pathways Program website at www.pcc.edu /career /pathways/ (April 18, 2014). 138. Office of Governor Andrew M. Cuomo, "Governor Cuomo Announces Public- Private Partnerships to Prepare More Than 6,000 Students for High -Skill Jobs," August 28, 2013. Available at www.governor.ny.gov / press /08282013Students -for - High -S k i I I -Jobs 139. Bruce Katz and Jennifer Bradley, The Metropolitan Revolution, p. 6. 140. Peter Hall, Cities in Civilization: Culture, Innovation, and Urban Order (London: Phoenix Giant, 1999). BROOKINGS I May 2014 EXHIBIT Acknowledgments We extend our gratitude tn the following innovation disdhd|eadersandpraddionersfnrteaching and advising us throughout the writing process. We realize the extent tn which you have become integral to this project: Josep Pique and Isabel Ponti (Barcelona); Nicole Fichera and Mitchell Weiss (Boston); Margaret O'Tnn|e, Tim Rowe, and Sam Seidel (Cambridge); Dave EgnecBenjy Kennedy, Pam Lewis, Sue Mosey, Rip Rapson, and Laura Trudeau (Detroit); Linco Nieuwenhuyzen, Jasmijn Rnmpa.and Bert-]an Wnertman (Eindhoven); Bill McKeon (Houston); Dennis Lower and Donn Rubin (St. Louis); John Fry and Lucy Kerman (Philadelphia); Roberta Achtenberg and Kn i Bonner (San Francisco); Ada Healey (Seatt|e); and Thomas Anderssnn and Y|va Williams (Stockholm). We owe a special thank you to Jennifer Vey for her broad and grounded contribution to the overall direction of the Metro Program's innovation district work over the past year and invaluable help on the individual innovation district profiles. Thank you to Alex Jones for his superb mapping and research talent; David Jackson for his excellent editing; Alec Friedhoff, Dan Essrow, and Han Nguyen for their impressive work on the native web product, and Jody Franklin for teaching us the meaningnf^nativewebpmdud^andhe|pingtnguidemanyaspectsnfthismu|ti'|ayeedwork. For their insightful reflections and continuous prodding, we extend our deepest thanks tnAndy Altman, Dennis Frenchman, Theresa Lynch, and Thomas Osha. For their helpful comments on early drafts of the paper, we thank Alan Berube, Jennifer Bradley, Chris Leinbengec Amy Liu, Mark Mun\ and Rob Puentes. On behalf nf the entire Metropolitan Policy Program, wea|snthankVickiSantCnmcastthe Kresge Foundation, Lermar Urban, the Rockefeller Foundation, the Charles Stewart Mod Foundation, and the New Economy Initiative of Southeast Michigan for their support of our innovation districts work. Finally, we thank the Metropolitan Leadership Council, a network of individual, corporate, and philanthropic investors that provide the Metro Program with financial support and true intellectual partnership. The Brookings Institution isa private non-profit organization. Its mission isho conduct high quality, independent research and, based on that research, to provide innovative, practical recommendations for policymakers and the public. The conclusions and recommendations of any Brookings publication are solely those of its author(s)' and do not reflect the views of the Institution, its management, orits other scholars. Brookings recognizes that the value it provides to any supporter is in its absolute commitment to quality, independence and impact. omoou/wcs| May 2m4 a 19 About the Authors Bruce Katz isa vice president atthe Brookings Institution and founding director of its Metropolitan Policy Program. Julie Wagner is a nonresident senior fellow with the program. For More Information Alex Jones Po|icy/ReseohAssbtant Brookings Metropolitan Policy Program ac]onesVuhroohin9s^edu For General Information: Metropolitan Policy Program atBrookings 2U2�7.6139 1775 Massachusetts Avenue NVV Washington [lC.2O[86-OOO telephone 202.797.6139 fax 202.797.2965 About the Metropolitan Policy Program at Brookings Created inl998 the Brookings Institution's Metropolitan Policy Program provides decision makers with cutting-edge research and policy ideas for improving the health and prosperity nfcities and metropolitan areas including their component cities, suburbs, and rural areas. Tn learn more visit: www.broohinqs.edu/metro wellejw�ftl CO O X LU rl• m _0 E 0 C: —u lu (U m C7 -0 > . z 'E m 0 O o .0 r- E > 0 0 m CL ai on M b E > M - - 0 >. 0) 2 m 0 c: 0 > - x E oj 2 c w z CO . . . . . . . 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D E m c+{ Ezs 22§ / ƒz }i/ 020 /4/ 3m u \0W , 0 / /\q 0 ) m (U 75 tt =/ b E /) /�/0 S mua(a f 2 \� o - / a/, 2 5 / \ g n 'on )2 § m § t 3 § % a 2 m t � �« ` \ E \ = \ I § m /\ E 24 / e=° 3 e$ o 0 o( 7 �' E y / { / 2/ \ � n % / } / / 3 § g $ f a -J §\ 0/ 3 3/ a 2' u � \ . x $ Z \ t 3 { - E :: m � / \\/ - 2 o.lu \ 0 -0 '0 ` Eb CU \ 2- o L- "0 \: & { {0)) o _�� } - }\ °7 ®`a! §; � $$2f =2 {# ƒ =l %!)}# °Qf E !\ /mom,- =meet =! ra > o !it 6>, } �a / $\ �) !) 7\ �; y �)(�% » E -)j \\ m� ��\k\\}� \\ 2/ { }m2ae Q E 0 t 4-J 0 2...x...0. 0. .�.. D E m City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com D EN'FON File #: ID 14 -0653, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Engineering Services CM/ ACM: Jon Fortune Date: October 14, 2014 SUBJECT Receive a report, hold a discussion and give staff direction regarding the Hickory Street project. BACKGROUND After receiving transfer of the project from Water Utilities, Engineering Services has been managing the construction of the Hickory Grand Street Grand roadway, drainage, parking and related improvements. Construction began on the project on June 23, 2014, with 210 calendar days for completion (January 19, 2015). Unfortunately, underground conflicts with utilities and rain have delayed progress. Additional phasing to lessen impact on adjacent businesses has also impacted the schedule, with completion now anticipated in late February 2015. As additional explanation of the project schedule, the following information is provided. The project schedule, with general notes, is provided in Exhibit 1, with a drawing depicting locations of the phases provided in Exhibit 2. Construction of the Williams Trade Center Parking Lots was conducted as Phase 1, in order to provide parking for businesses along the project during construction. For construction of Phase 3A (Russell to Bell), it was decided to completely close this segment of the street in order to construct and re -open it much faster, with only three businesses near the corner of the closure being slightly affected (access is being maintained throughout the closure). Traffic flow was maintained for the remainder of the street through Russell and Industrial Streets. The travel lanes for this segment were re- opened to traffic on October 7, 2014 (delayed from Oct. 3, due to rain on Oct. 2 and the need for pavement to dry before sealing and joint caulking). Construction of underground storm drainage from Russell to just west of Industrial Drive will be constructed as Phase 4 A during October 13 - 22, 2014, in order to construct the remainder of the major underground facilities and identify any additional underground conflicts. The area will be temporarily paved until the final parking and sidewalk construction is conducted as Phase 6 during January 27 - February 28, 2015. Phases 4 B and 6 will be constructed in segments, in order to maintain access to businesses along the Phases. To avoid interference with downtown holiday activities, no construction is planned for the street segment area adjacent to Locust Street and the Courthouse Square (Phase 5) during the holiday season; this Phase is scheduled for construction January 5 - January 27, 2015. The current schedule does not call for construction to be suspended during the Thanksgiving to New Year holiday season. Construction is scheduled to continue through completion of the project, except for weekend and holidays, with City staff and the contractor being ever mindful of the importance to maintain access to businesses along the street at all times, especially during the holiday sales season. In response to a poll by City of Denton Page 1 of 3 Printed on 10/9/2014 File #: ID 14 -0653, Version: 1 Economic Development, eight businesses along the street have indicated they want construction to be continuous and completed as soon as possible, while one business has expressed a desire for construction to be suspended during the holiday sales season. Engineering staff have been communicating frequently with the businesses along the street through Julie Glover, Economic Development Program Administrator for the Downtown Area. Staff held an on -site, open - house meeting ( "come anytime during the 2 hr. meeting timeframe that is convenient for you ") on September 3, 2015, to update the businesses on the project phasing and schedule, listen to concerns and answer questions. Contact information (names, roles, cell phone numbers and email addresses) for four of the contractor's key personnel and the City project staff's four key personnel have been provided to the businesses for contact during and after normal work hours. Recently, Council Member Johnson received and shared an email from a Hickory Street business, in which they expressed concerns about the significant drop in sales for their business during the street construction. Shortly thereafter, Economic Development staff surveyed nine businesses in the affected E. Hickory /Industrial area to ask of any impact on their sales during construction and received replies from eight of those businesses. Businesses who have data from previous years, report a 20 - 50% decline in sales since construction began. A few commented that, historically, September is a slower month for sales. Some concerns expressed were: • "This has been hit -or -miss, week to week, depending on what they (construction) are doing." • This down 25% from this time past year and down 17% from last week." • "Our sales have been cut nearly in half during the weekdays while construction is going on. The constant flow of work vehicles and heavy machinery, coupled with the lack of parking has definitely affected our regular customer traffic." • "It has definitely slowed us down and will be very detrimental to our busiest time - October - December." Economic Development has been working with the Convention and Visitors Bureau for several months on a campaign to assist businesses in this area and minimize impact on their sales. They have launched an app, "Dig Little d," which shows where public parking is located, updates on construction, and "Daily Deals." Julie Glover is working with a University of North Texas Public Relations class, which is designing a campaign aimed at relieving customers' apprehensions about traveling to and from the construction area. Staff continues to work with businesses along the project and keep them informed via personal contact with on- site City project managers; Julie Glover; the Hickory Grand St. Project webpage on the City website; the "Dig Little d" app; and periodic project update meetings at business locations along the project. The next Project Update meeting will be held in mid- November to update affected businesses prior to the Thanksgiving /Christmas holiday sales period. Directional signage to the Williams Trade Center Parking Lots for "Free Parking" and informational signage to advise citizens that "Hickory Street businesses are open" are being developed at this time for installation in the near future. OPTIONS In addition to the above described activities, staff has identified and reviewed the following options for the remainder of this construction project. A. Suspension of construction for the holiday sales season (Thanksgiving through New Year's Day) Pro: The contractor indicates this is possible. Con: Construction would then be completed during the period of early January 2015 - mid -May 2015. The contractor would be subject to increased materials costs that he would pass on to the City City of Denton Page 2 of 3 Printed on 10/9/2014 File #: ID 14 -0653, Version: 1 (estimate of approximately $25,000 - $30,000). Eight businesses have indicated they desire construction to proceed without interruption, while one business has indicated they desire construction to be suspended during this time. B. Working two shifts for construction (16 hr. days) Pro: Shorter remaining construction duration. Additional intense light and noise pollution and heavy equipment activity at night along the prod ect. Con: Working double -shifts would not enable construction time to be reduced by 1/2, since concrete curing time cannot be adjusted by working more hours per day. Added costs of approximately $400,000 - $450,000 to reduce the construction time by approximately 1 month, which would still require construction during the holiday sales season. C. Use of High- Early- Strength concrete Pro: Shorten concrete curing time and allow pedestrian and vehicular traffic on new sidewalks and pavement approximately 6 days earlier; shorten project time by approximately 10 days. Con: Added costs of approximately $90,000. ESTIMATED SCHEDULE OF PROJECT The current schedule calls for completion of the project in the area of the businesses in late February 2015, barring any adverse weather impacts or additional major underground conflicts. Completion of Phase 7 at the railroad crossing is dependent on acquisition of the pending UPRR railroad crossing permit to widen the crossing pads to better accommodate pedestrian and bike traffic. PRIOR ACTION/REVIEW (Council, Boards, Commissions) At the request of the Citizen's Advisory Oversight Committee for the 2005 Bond Program, Council approved reallocation of Capital Improvement Program Bond funding from the Walnut and Pecan Street Projects to the Hickory Grand Street Project (a "key element of the Downtown Implementation Plan ") on October 5, 2010. This first phase of the "Grand Street" Project is to connect the Courthouse Square with the DCTA Train Station. The final project design and business comments were presented to the Council for input on September 10, 2013 meeting. City departments (Water Utilities and DME) relocated their utilities, for the Locust to Bell section of the project, during the period of December 2013 to April 2014. Utilities east of Bell Avenue were relocated in early 2012. Council approved award of the construction contract for the project on May 6, 2014, for $2.75 million. FISCAL INFORMATION The City is currently investing approximately $4.18 million in this project ($350,000 for sanitary sewer work, $330,000 for water utility work, $750,000 for electric work, and $2.75 million for street and hardscaping work). F,XHIRITS 1. Hickory Grand St. Project Schedule 2. Hickory Grand Street Project Phasing & Schedule Diagram Respectfully submitted: John T. Davis, PE Director, Engineering Services City of Denton Page 3 of 3 Printed on 10/9/2014 NI IA W O C CL UJ W a d co o W a, Z U o Q C/) V � d � = Rf co N O i EXHIBIT 1 0 J C 1..V J U a� ca H N (0 d d � _ E a C U a� U U) W L M U fA L O Z W W VJ N > Q > ; VJ 0 VJ �a o ?� Q a o o o `~_ p o cn aa) O O O O� a) p 00 U (n U N a o c +L- N O N U - O L U N L fn C C N cB N U) fn U U Q N N d m m O O p �'E (B co CL cB U O O C: 'E O O � U d O•{ nOn♦ +_ nn 5 W (n C L E _ 0 1 L E Q m N O O L Q O CL co O O O N _O U) >, U) 'O U ._ C p 0 U ._ = *-' O O E c cB (0 O cn p .� (B (0 Q p C (B O •L O o (n M m f- O O U U (0 p U (B U N U N W � VI L � � L W .L . 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McKinney St. Denton, Texas 76201 www.cityofdenton.com D EN'FON File #: ID 14 -0661, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: City Manager's Office CM/ ACM: Jon Fortune Date: October 14, 2014 SUBJECT Receive a report, hold a discussion and give staff direction regarding a proposed convention center. BACKGROUND This item has been placed on your agenda to give the City Council an opportunity, if necessary, to discuss the convention center project, ask staff additional questions, or receive an update as new information develops. As of the time this agenda material was distributed to the City Council, staff did not have any updates prepared. However, if available, staff will plan to share any new information with you at the meeting. Please let me know if you have any questions. Respectfully submitted: Jon Fortune Assistant City Manager Prepared by: Jon Fortune Assistant City Manager City of Denton Page 1 of 1 Printed on 10/9/2014 O V u PLO O oil O 4� O taw� C q�* O N �t 4� O V W N U >` E c c� O Q L U p O cn U N U >. O X O cn O O N O C N 4 > O U 0 0 O O N fl- O -, O c� O C -0 .--� N cn 4-+ _ • 1�� 4-J L fp U fo M f� 0) N Q O 4 O C U O M CO 0 L O � M X _ > N C 4- O acn -� p L- � ;4= > O � 0 C N o \ C L O- \° Op p C -0 H d' O N U) O C, F- -0 (� 4- 0 L >� LN � M O _. 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McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN'FON Legislation Text File #: ID 14 -0613, Version: 1 Agenda Information Sheet SUBJECT Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. 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