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HomeMy WebLinkAboutCAO-16-034 - Creative Hub Options REPORT TO:Planning & Strategic Initiatives Committee DATE OF MEETING:December 5, 2016 SUBMITTED BY:Cory Bluhm, Executive Director(Interim), Economic Development, 519-741-2200 x7065 PREPARED BY:Silvia Di Donato, Manager, Arts and Creative Industries, Economic Development, 519-741-2200 x7392 WARD(S) INVOLVED:ALL DATE OF REPORT:November 25, 2016 REPORT NO.:CAO-16-034 SUBJECT:Options for a Creative Industry Hub RECOMMENDATION 1. That the establishment of a Creative Hub to incubate and strengthen the Development Strategy, Make it Kitchener, be supported; 2. That staff be directed to continue with next steps in establishing the Creative Hub at the preferred initial location, 44 Gaukel Street; 3. That staff initiate an Expression of Interest (EOI) process and criteria to lease 44 Gaukel Street to an operator for use as a creative hub,as defined in the report CAO-16-034; 4. Thatthe City-owned property at 48 Ontario Street North be declared as surplus and offered for sale through a Request for Proposals (RFP); 5. That the net proceeds from the sale of 48 Ontario Street North be allocated to initiate and develop a Creative Hub, as described in report CAO-16-034; and, 6. That staff continue to explore the full growth potential of the creative hub, with its location at 44 Gaukel Street in the short-to-medium-term, working with community partners to articulate medium-to-long-term opportunities and future phases. 1 - 1 BACKGROUND Make it Kitchener, includes three objectives: be agile in the provision of services for startups; continue to attract entrepreneurs; and become a magnet for investment. More specifically Make it Kitchener identifies the need to establish a creative hub for arts and creative sector to create an environment for their economic success. the creative hub is intended to serve the economic success of industries like music, film, interactive media, theatre and other disciplines. Uses proposed included entrepreneurial and promotional services, skills development, rehearsal spaces and event programming. These needs were based on extensive consultation, including creative industries participating in the stakeholder engagement for the Economic Development strategy. In alignment with that strategy, staff brought forward recommendations to develop criteria for an RFP related to community engagement on the location of a creative hub. The identified need for an affordable, incubator style creative hub converged with increasing community interest in a vacant property owned by the City at 48 Ontario Street North, then listed on the Heritage Registry, and since received designation a heritage property. In June 2016, council directed staff to proceed with community and stakeholder engagement on a range of options for a catalyst location for arts and creative industries (i.e., an arts hub) and the potential of 48 Ontario Street North as its home,the potential use or sale of 48 Ontario Street North, and further to report back before the end of 2016. Staff was also directed to consult with the community on a more precise definition of the , irrespective of location. (further in this document as that was the original term used in the adopted Make it Kitchener Economic Development Strategy) Council and Corporate leadership Team further directed that staff also consult with the community on a range of potential locations including 48 Ontario Street North. In the summer and fall of 2016, staff proceeded to: Design and conduct stakeholder engagement process that built on previous findings and articulated a definition of the creative hub, Develop a process that explored multiple potential locations for the Creative Hub in addition to 48 Ontario Street North, Consider recommendations for the future of 48 Ontario Street North in light of those options, Condensed the proposed timeline to report back before the end of 2016, and Conduct extensive research into best practices and feasibility studies for various models for incubator hubs for various industries and sectoral analysis with an emphasis on the creative sector. In September 2016, Report CAO-16-025 Creative Hub Status Update was submitted to Council for information. Further detail on the findings and methodology of the creative hub stakeholder engagement process can be found in Primary Data Findings from the Creative Hub (Appendix 1) 1 - 2 REPORT Following next steps on the background reports and direction provided above, this report summarizes: Community engagement process results; Locational analysis on multiple properties;and Creative industries sector research, best practices and economic impact. Community Engagement Analysis As part of the development of Make it Kitchener stakeholders identified the need for a creative hub as a mechanism to grow arts and creative industries, support innovation across other sectors such as digital media, and to provide the source for content and experiences that create urban vitality in the city. Stakeholders referenced the need for space and resources for growing or incubating arts, creative practitioners, and startup businesses. Consultation as far back as 2012 is represented by hundreds of artists, musicians, interactive media designers, theatre professionals, filmmakers, animators and other representation from the literary, performing and visual arts sector. Previous history of this consultation is documented in section 4.1 of Appendix 2, Background Research on a Creative Hub The community was engaged further in the specific definition of a Creative Hub, and possible suitable locations, including the currently vacant property owned by the City at 48 Ontario Street North. Staff was also asked to conduct tours of 48 Ontario North for interested members of the public, including all advisory committees of interest: Arts and Culture Advisory Committee, Economic Development Advisory Committee, Downtown Action and Advisory Committee and Heritage Kitchener. Participants included interested citizens, artists, community organizations, businesses and other building owners downtown.Concurre-locate creative industries practitioners with the Accelerator Centre at 44 Gaukel Street meant that many stakeholders also toured this facility individually and as part of open houses hosted by ArtsBuild Ontario and City staff. The most recent community consultation took place over three events: a stakeholder lab in which participants articulated the definition and function of a creative hub; aworkshop in which participants considered the services and spaces needed to support their career development; and public information sessions hub within the network of existing assets. With the support ABSTRACT Project Management & Consulting, more than 300 people participated in the various engagement opportunities. Primary Data Findings from the Creative Hub (Appendix 1) provides an in depth account of community engagement methodology and findings. These results expand on findings from several years of community consultation data regarding the development of the creative industries (see section 4.1 of Appendix 2, Background Research on a Creative Hub). A summary of key 1 - 3 findings from community consultation is provided below and is comprised of the definition, operating model and space requirements of a creative hub. Defining the Creative Hub: Consultation with stakeholders identified that the space allocation at a creative hub should consist of shared office spaces, workshops, studios, networking event space and specialized service/resources to support entrepreneurship and professional development. Working Mission: The creative hub would exist to facilitate the career success of those engaged in the creative industries by expanding the capacity for entrepreneurship, creation, networking and collaboration. Distinctions: The creative hub would be a centrally located gathering place that offers the artists and creative practitioners space to find solutions, make connections, take risks, share knowledge, build dialogue, integrate, grow careers and collaborate. The creative hub will operate on a cost-recovery model. Shared Values:Adaptable, collaborative space that is flexible, creative, inclusive, accepting, open and fun. Operating Model: Based on consultation data and consistent with best practices the creative hub would operate on a cost-recovery basis. To generate revenue, short-term rentable multi-purpose spaces for rehearsal, exhibition, events, performance, and specialized studio needs and long term compatible commercial tenant uses were identified. The preferred approach is for the space to be operated by a not-for-profit agency, non-profit consortium, or private-public partnership in a municipally-owned building. Space Requirements: There are two components to the space requirements expressed. The first type of spaces are those that benefit from central location in the downtown in a size range of 14,000 to 20,000 square feet for uses including entrepreneurial services, professional development.These spaces and services should be centrally located in a hub that will act as a significant nucleus to the network of facilities and spaces throughout the city. The second type of space requirement expressed are specialty requirements for large film spaces (soundstage) which may not be affordably located downtown. Also, specific needs for the professional theatre sector space would not necessarily co-locate with a creative hub. Total space requirement for this second category of space is estimated roughly at 14,000 to 20,000 square feet. Local experience, best practices and community engagement workshops helped define these ranges. It is important to note that these are example allocations only. The selection of a building location greatly enhances the accuracy of maximizing spaces for appropriate uses. Table 1 provides an example of space allocation for a creative hub: 1 - 4 Table 1 Creative Hub Space Allocation Example ExampleSpace UsageEstimatedSq. Ft.Location Entrepreneurial Services & Professional 5,0007,000Hub Development Shared office (entrepreneurial services, shared reception, work space) Networking / event / workshop / classroom Short-Term Space Rental (Revenue generating)3,000 5,000Hub Flexible rehearsal/performance Specialized studio spaces (visual arts, sound/ video recording, multi-media) Commercial Tenants (Revenue generating) 5,0008,000Hub Leased compatible commercial space (music, digital design, retail, café etc.) Total central hub space requirements13,000 -20,000Total hub CommercialFilm Soundstage7,000-10,000Other location(s) Professional Stage/ Theatre7,000-10,000Other location(s) Total facilities space at other locations14,000-20,000Total otherlocations 27,000-40,000Total estimate Locational Analysis Increasing property values have raised the spectre of displacement as higher paying tenants push out creative practitioners sometimes leaving Kitchener for other cities.To support a diversified creative economy and continued vitality in the urban centre, the City could play a role in preserving affordable space for the creative industries in order to incubate their growth and retain these small businesses in our community. Criteria for locating the creative hub are determined by community engagement results, best practices research, centralized facility examples and distributed models. Also reviewed was anin-depth analysis presented prepared by N. Barry Lyons Consultants Limited in 2009 and which resulted in Staff also reviewed case studies from Halifax, Edmonton, and Toronto. A central downtown location emerged as a high priority, with the notion of a creative hub playing a role as a nucleus to a network of arts spaces and facilities throughout the city. As indicated in Table 2 Location Criteria Assessment, the criteria for locational analysis includes factors such as a central downtown location, municipal ownership, potential immediate occupancy, etc. 1 - 5 Table 2 Location Criteria Analysis Based on this analysis, 44 Gaukel Street and 48 Ontario Street North.ranked highest, but differed on critical factors. Both meet important criteria such as downtown location, municipal ownership, current vacancy, etc. Where the two properties differ greatly is their capacity for immediate occupancy and the scale of renovations required to achieve occupancy. Where 48 Ontario Street North requires extensive renovations, including an elevator, HVAC, plumbing and electrical systems before occupancy can be initiated as a creative hub, 44 Gaukel Street is available for occupancy presently, and requires lower renovation costs to enhance the space. Recommended Location: 44 Gaukel Street: Staff recommend 44 Gaukel Street as the preferred Creative Hub location.More immediate occupancy is possible which will build on the momentum currently in progress on the second floor.Interest in the building as a Creative Hub has increased throughout with the community engagement process.With its current use by the Accelerator Centre, ArtsBuild Ontario and a variety of creative industries,the Gaukel street location has provided between artists, technology start-ups, post-secondary programming and unique creative events. Recent initiatives,such as the Kinect for Microsoft Hackathon, theModern 1 - 6 Audio Arts Conestoga Media and Design-WLU cross-accredited curriculum delivery, Critical Media Lab Art Hackathon, CAFKA and NIGHT\\SHIFT events, have raised the profile of this building substantially. In the long term, 44 Gaukel Street provides options for expansion in the longer term. The building can accommodate additional floors, while the surrounding parking lot provides opportunities for expansion Such options can be considered as part of a longer range strategy in the Arts Action Plan planned for 2017. Future of 48 Ontario Street North: Throughout this process the community expressed strong interest in this building being repurposed, and not continue to sit vacant. In particular, a desire to see the buildings heritage features conserved. As such, staff recommend initiating an RFP process, seeking proposals to acquire the site and renovate/expand the building, in a manner consistent with good heritage conservation principles and the policies. This report recommends that the real estate sales proceeds from 48 Ontario Street North. be allocated to the establishment, future growth and development of the Creative Hub. This report acknowledges the significant interest that has been demonstratedin 48 Ontario Street North, from heritage community input, to nostalgia rooted in decades of until purchased by the City in 2001. Staff have received interest from community members in support of its development as a hub for filmmaking and digital media (including a conceptual proposal with 40 letters of support). As such, the recommended RFP process would not preclude proposals to acquire and convert the building into uses that support the creative sector. Other Locations on the Creative Landscape: Council directed staff to engage the community in the discussion of multiple locations and the results of that consultation were highly informative (Appendix 1). Several locations were suggested by stakeholders in the community, discussed and evaluated. Some were eliminated because they are currently fully deployed, not known to be available in the short-term, have potential as specialty facilities in the longer term, or are better suited as part of a wider network of arts facilities rather than play the creative hub role. Though not suited as the central Creative Hub at this time, the consultation revealed that the locations provide many future opportunities for growth of specialty use facilities, and a more robust network of spaces for visual and performing arts. These locations will be studied further for opportunities as part of the 2017 Arts Action Plan, expanding on the important theme of space for arts and creative industries. 1 - 7 Economic Impact Competitive Advantage: The local strength of the technology sector and start-up culture provides an economic competitive advantage for content creators, artists and creative industries in general. It is becoming clearer that rather than STEM, there is Engineering, Arts and Mathematics.) This signals an opportunity to invest in creative sector entrepreneurship that drives other industries. Growing Jobs and Opportunity:The economic impact of the Creative Hub will be job retention and growth, and the further diversification of the local economy. There is definite opportunity for job growth, as this sector is under-represented locally. This weakens the local supply chain for businesses relying on content, innovation, and ultimately, the need for a vibrant, magnetic community.About 10,000 people in Waterloo Region (Canada, 2015) are artists and creative or cultural workers, making up about 3.3% of the labour force. Figure 2 in Appendix 2 illustrates that this percentage is slightly lower than other comparable municipalities, such as London and Hamilton (3.39% and 3.34% respectively). By committing resources to the creative hub and arts sector, significant new jobs would raise the representation for this sector to at least the average of similar sized cities. Further job competitive advantage as home to a strong technology sector with a defined need for content creators and artist contribution. Driving Momentum:Synergy in networking environments and incubators and an already significant entrepreneurial ecosystem is expected to drive more start-up activities. This is particularly relevant when entrepreneurship is high among creative practitioners where 21% of artists are self-employed and inclined towards entrepreneurship, compared to 8% in the rest of the labour force. (Statistics Canada, Hill, 2015). Another source of momentum is the opportunity for a more local supply chain to keep related businesses local. Content creators (digital design, music, video) serve software development, hardware design and product development.Local access supports growth of these other sectors, andcould convert some of the outsourcing occurring now (e.g. user experience design,video game graphic artwork) to local businesses.Supporting entrepreneurship in acreative industry incubator space is an effective use of municipal resources to serve economic growth and strengthen the roots. Future Growth: Trends in local post-secondary institutions indicate the future growth of the creative industries. New curriculums have been established to fuel this sector: the film production option at WLU, the community music graduate program at WLU, the Games Institute at UW, and the Animation program at Conestoga College. UW Fine Arts is a source of post-graduate credentials for globally recognized animation schools. A Creative Hub would keep more of the graduates with top credentials in the community, instead of finding opportunity elsewhere. 1 - 8 The creative hub will be a powerful catalyst to - culture already established in creative practitioners, and connect for project-oriented work that develops into further business opportunity. Incubation and acceleration are proven models in this community, and this initiative will leverage the highly entrepreneurial climate in both the local creative industries, and broader business community as a whole. Without support, there is a great risk that local jobs and businesses could be lost to other cities where affordable space, mentorship and entrepreneurial programming for creative industries exist. And finally, as an unparalleled, additional impact on the community, just by virtue of their economic activity, artists and creative industries deliver content, experiences and enhance places that are magnetic to talent, contribute to quality of life and enrich the soul of the city. CONCLUSIONS After the analysis of community consultation data, locational analysis of various sites, and research into best practices, staff is recommending that the City-owned building at 44Gaukel Street be established as the location of the creative hub for the medium to long term.The location provides an opportunity for the City to leverage a municipal asset to strengthen the creative industries as an economic sector, as a way to grow urban vitality and to spark innovation across other sectors. In consultation with stakeholders, staff will explore partnerships for future phases of development in the longer term.Immediate next steps include the development and issuance of acall for Expressions of Interest (EOI) from potential operators for the delivery of a creative hub as described in this report, and in consultation with tenants currently occupying part of the space. In reference to 48 Ontario Street North, this report also outlines the direction to declare the property as surplus to the needs of the City, and offer the property for sale through a Request for Proposal process. The net proceeds from the sale of 48 Ontario Street North are recommended to be allocated to support the development of a Creative Hub at 44 Gaukel Street. Staff will continue to explore the long-term growth potential of the creative hub, with its location at 44 Gaukel Street as a starting point, working with community partners to articulate the future phases and opportunities for growth. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The Kitchener Economic Development Strategy (Make it Kitchener)adopted in 2016 recognizes arts, cultural workers and content creators (including music, media, film and design) as a vibrant economic cluster in and of itself, comprising a significant segment of the labour force. Creative industries leverage innovation throughout businesses as diverse as digital media and advanced manufacturing design. Strengthening arts and 1 - 9 and to visit. And it is a critical component to talent attraction, retention and development. includes three objectives: be agile in the provision of services for startups; continue to attract entrepreneurs; and become a magnet for investment. This report delivers against these objectives, specifically the establishment of a creative hub for artistsin music, film, theatre, digital media and other disciplinesthat could offer rehearsal spaces, entrepreneurial and promotional services, skills development, and event programming. The City of Kitchener Strategic Plan notes that arts, culture and the creative industries diversity. Development goals are also served through arts and culture, and adding to urban vitality. RELATED REPORTS: CAO-15-Make it Kitchener CAO-16-015 Community Engagement on potential arts hub & potential of 48 Ontario St. N. CAO -16-025 Community Engagement for Creative HubStatus Update FINANCIAL IMPLICATIONS: The sale of 48 Ontario Street North would generate a one-time source of revenue and avoid a substantial building renovation expense. The leasing of 44 Gaukel Street will result in a number of City expenses to replace/repair building components at their end of lifecycle (e.g., HVAC infrastructure) to accommodate ongoing use as a creative hub. In order to fund such improvements, the proceeds from the sale of 48 Ontario Street North would be used to offset these costs. In the event that 48 Ontario Street North is not sold, improvement costs for 44 Gaukel Street would have to be found from other sources. There may also be ongoing substantial costs to repair and maintain 48 Ontario Street North. Greater detail and certainty will be known once proposals are received for both properties. COMMUNITY ENGAGEMENT: Stakeholder and community consultation for this report was comprised of six main phases, engaging approximately 300 members of the community. 1.As directed by council, community engagement began with tours of 48 Ontario Street North: Staff offered 2 tours per week for 5 weeks between July and August 2016.Staff also provided tours to members of ACAC, EDAC, DAAC and PAWG. 1 - 10 2. Tours of 44 Gaukel Street: Concurrent with the Creative Hub project, an opportunity arose to locate tenants working in the arts at 44 Gaukel Street. Through this exercise, tours and open houses were held. Additionally, SpaceFinder Waterloo Region was launched and many artists and creative practitioners have visited, and some ultimately locating at 44 Gaukel Street. Numerous hackathons, workshops and events like NIGHT\\SHIFT 2016 brought many people through the facility. rd 3. Imagining a Creative Hub: A Stakeholder Lab:At this event on August 23 at the Victoria Park Pavilion, 75% of participants identified as either artists or other creative professionals. Participants engaged in a mix of solitary and group work designed to identify potential roles, services, values, missions, and challenges of a creative hub that are unique to Kitchener and which would differentiate it from existing amenities and services. 4. Building a Creative Hub: A Stakeholder Workshop:At this event on event on September 20th, participants engaged in a mix of solitary and group work designed to identify specific space requirements for a creative hub, possible locations, and the mix of activities that would support a cost-recovery model and serve creative practitioners. 5. Placing a Creative Hub: Drop-In, Weigh In:This two-day drop-in event in the Rotunda, offered participants an immersive view of some of the creative resources available in downtown Kitchener. A 3-dimensional installation placed the Creative Hub within the network of existing creative resources, reflecting stakeholder feedback that the Creative Hub should not duplicate what already exists, but provide space and resources that are not currently available. 6. Advisory Committees:This report was presented and discussed at the recent meetings of ACAC, DAAC, and EDAC. The timeline of this project will result in a presentation to Heritage Kitchener in January 2017. Previous community and stakeholder engagement consultation data was also considered in the preparation of this report. This includes: 1. Development Strategy, Make it Kitchener (2016) 2.Strategic Review of JM Drama (2016) 3.Arts Reboot/ ArtsTogether, Shift #2 (2015) 4.Creative Content Industry in Waterloo Region (2015) 5.City of Kitchener Strategic Plan 2015-2018 (2015) 6.(2013) 7.Music Works | Strategy and Action Plan (2012) 8.Kitchener Economic Development Strategy 2011-2015 (2011) 9.Downtown Kitchener Arts & Culture Cluster Development Framework (2006) 10.CulturePlan I (1996) & CulturePlan II (2004) 1 - 11 ACKNOWLEDGED Jeff Willmer, CAO BY: ATTACHMENTS Appendix 1, Summary of Primary Data Findings on a Creative Hub Appendix 2, Background Research on a Creative Hub 1 - 12 CAO-16-043 Creative Hub Options Appendix 1 Summary of Primary Data Findings on a Creative Hub 13pages 1 - 13 SUMMARY OF PRIMARY DATA FINDINGSON A AUGUST - NOVEMBER CREATIVE HUB 2016 Lauren Judge & Gabrielle Clermont ABSTRACT Project Management & Consulting November 18, 2016 1 - 14 Community Engagement for aCreative Hub At the City Council regular meeting held on Monday, June 6, 2016, a resolution was passed that, “staff be directed to proceed with community and stakeholder engagement on a range of options for a catalyst location for arts and creative industries (i.e. an arts hub) and the potential of 48 Ontario Street North as its home, as discussed in Chief Administrator’s Office report CAO- 16-015, including, but not limited to: Option #1 - development of criteria for a Request for Proposal (RFP) to sell the property “as is” or withminimal improvements, with consideration during public consultation as to whether the proceeds of said sale should be held in reserve for an arts hub at an alternative location; and, Option #2 - development of criteria for an RFP to lease the property primarily as an arts hub; and, Option #3 - development of criteria for an RFP to sell the property with a portion to be reserved or leased back to the City for use primarily as an arts hub; and further, that the results of community and stakeholder engagement inform a future report or reports to Council recommending a suitable site for an arts hub and the potential use or sale of 48 Ontario Street North.” The City of Kitchener contracted the associates at ABSTRACT Project Management & Consulting to undertake the planning, facilitation and reporting of the community engagement activitiesand secondary research on theconcept of creative hubs. With the support of City staff, the consultants engaged the community on three separate occasions, in addition to interviews with individual artists and creatives. In all, over 300 community members participated in the events and interviews. The background on, and findings from each of those occasions are outlined below, followed by a locational analysis and conclusions. . 1 1 - 15 Background and Outcomes Community Engagement Event#1: “Imagining a Creative Hub” Victoria Park Pavilion August 23, 2016 Methodology The77 participants in attendance engaged in a mix of solitary and group work designed to identify potential roles, services, values, missions, and challenges of a creative hub that are unique to Kitchener and which would differentiate it from existing amenities and services. In the “Personal Journey” activity, each participant charted their personal career path from “emerging” to “totally successful”, identifying on a timeline the assets, connections and skills required in their professional development -information that is essential to understanding how individuals might utilize a creative hub and whatresources and services might be required. Consultants extracted 24 characteristics identified in the reports from past consultations and had each participant prioritize their preferred characteristics in a “Dot Vote”. Figure 1 Imagining a Creative Hub Dote Vote 2 1 - 16 In the “Creative Hub Character” activity, participants were asked to work in round table groups of 8-10 to imagine the Creative Hub as a person they know well and to describe them using specific questions, like “What amI like?”, “What are my values?”, “What is my community?”, “What is my fight?” and “What makes me different?” To dig deeper, participants were asked to review all of the work completed over the course of the evening and working with their table groups, reflect on all of the information in more detail, answer questions like “Why?” and “What’s missing?” Outcomes The results from the round table group work were useful in identifying community consensus around the following four areas needed to form a working definition of an arts hub. 1.Shared Values a.Adaptable/Flexible b.Collaborative c. Creative d.Fun e.Inclusive/Accepting/Open f.Resourceful g.Motivational/Inspiring/Enabling 2.Working Mission Statement: The arts hub exists to build recognition of the arts sector andto develop its measurable economic impact by expanding the capacity of creative workers and facilitating the creative process. 3.Audience/Community/Users a.Artists and Creative Workers b.Non-profit cultural boards c. Mentors d.Investors/funders e.Partners/Collaborators f.Visionaries g.Entrepreneurs h.Professional associations i.Corporations j.Educators k. Youth groups l.Arts organizations 4.Distinctions: An arts hub is different because it is a centrally located gathering place to help the cultural community find solutions, make connections, take risks, share knowledge, build dialogue, integrate, and collaborate. The arts hub will be financially self-sufficient and not dependent solely on grants or public funding. The “Dot Vote” activity revealed a prioritized list of roles for the artshub. In the figure below, the order of preference is identified in the numbers preceding each aspect. 3 1 - 17 The consultants and staff worked to map the 197 aspects mined from the Personal Journey worksheets to the Dot Vote results. Significant clusters emergedthat identified clear purposes for the arts hub. The insights revealed that the community requires a creative hub be composed of space, resources and services in four areas: 1.Advocacy & Promotion - 33.3% 2.Networking & Events - 29.2% 3.Physical Space - 25% 4.Hard & Soft Skills Development - 12.5% Figure 2 Purpose Cluster for a Creative Hub in Kitchener 4 1 - 18 Community Engagement Event#2:“Building a Creative Hub: A Stakeholder Workshop” Kitchener City Hall, Rotunda, September 20, 2016 This event was designed to build on the findings of the previous event, knowing the key attributes and values of a creative hub and moving toward an understanding of the physical space needs. It was important to identify and explore potential, suitable locations for a creative hub, while allowing existing facilities to have an opportunity to considertheir capacity to meet the requirements for a creative hub.Of the 68 participants, 7 attended the previous event. Methodology The evening began with a “Personal Massing Activity” designed to learn more about the physical space needs of creative professionals, and to help participants create a personal inventory of space needs to refer to throughout the evening. Each participant was provided with a worksheet to design their personal creative hub. Working individually, they were asked to draw out a floor plan of a hub that Figure 3Building a Creative Hub would service their creative career, specifying resources and physical spaces proportionately in their diagrams, and identifying any special requirements (e.g. access to water, ventilation, sprung floors, soundproofing, etc.). Participants were asked to combine their results with those of the other participants at their tables. The exercise was an experiment to generate a massive “dream hub” that could service everyone at the table, and discuss that the needs of the creative industry are diverse. A “Location Post-up & Dot Vote” activity was designed to explore specific locations that might be suitable for use as a creative hub. Some locations were predetermined by staff and participants were asked to contribute other locations. The predetermined locations included: 41 Ardelt 44 GaukelStreet 48 Ontario Street North Centre in the Square Kitchener Public Library KW Musical Productions 5 1 - 19 THEMUSEUM The Registry Theatre The Conrad Centre Participants added the following locations: Constellation Model (no one particular location/a supportive network of spaces) Former Provincial Courthouse Former Zion United Church Sacred Heart School 152 Shanley Next, participants were asked to vote for the location they most wished to discuss in the second half of the evening using a single dot sticker. Staff selected the top 8 locations, one table for each: 41 Ardelt 44 GaukelStreet 48 Ontario Street North Constellation Model (no one particular location/a supportive network of spaces) Former Provincial Courthouse Former Zion United Church Sacred Heart School 152 Shanley Figure 4Building a Creative Hub Ideation In the first round of location-based group work, participants were asked to form groups by sitting at the table representing the location they most wished to discuss. Working within these groups, they designed a planfor the creative hub based in their chosen location. Using a summary of findings from the August event, the groups were asked to incorporate these findings into their design. In the second round of location-based group work, each group was provided witha worksheet with three questions designed to develop different aspects of their hub design. 1.Who will use your hub? 2.Who runs your hub? 3.What will the impact of your hub be? 6 1 - 20 In the third round of location-based group work, the groups were provided with a different worksheet with three new questions designed to dig deeper into their designs. 1.What are the limitations of your hub? 2.What are the strengths of your hub? 3.What are the resources required to make your hub work? The evening concluded with each group presenting their results to the rest of the attendees. Outcomes The “Personal Massing Activity” identified the preferred spatial characteristics in a creative hub. According to individual participants, the top 35 physical needs (in order of priority) of Kitchener’s artists and creative professionals are: General Wardrobe/props Office/admin spacestudio/maker/workshop Classroom/teaching space Common space areas/lounges/collision/Parking/easy access to Ventilation/dust networking spacespublic transport/biking Internet Performance spaceChange Access to water/sinks room/showers/hair & Storage/security Climate control/air makeup/green room Rehearsal space conditioning Light/controllable Gallery/exhibition space Sprung floors light/natural light Various attributes for Sound stage Film/media studio/maker spaces High ceilings support/editing/post Technical/performance production spaces Box office equipment Meeting rooms Photo booth Kitchen Specific use Loading/truck access Retail/café/restaurant/ maker/lab/studio space Easy clean surfaces shops Soundproof/recording Childcare Outdoor space space Accessibility Access to power The outcomes align with the data presented in Figure 2, adding validity to the purposes, mission, audiences and shared values that were uncovered in the August event. The location-based group work revealed a number of useful insights about governance, impact, constraints and advantages of a creative hub in general, and more specific to location. In terms of governance, the groups devised approaches that could best be categorized as grass-roots. The preferred model for Kitchener’s creative hub is a not-for-profit organization in a City-owned facility, governed by a board of directors that includes various artistic or creative backgrounds, or sub-committees that represent the various art forms. This organization would be either co-operatively administered, or run by an anchor-tenant with a strong operational history. 7 1 - 21 The consensus around intended impactcan be described as a positive economic influence in the form of job creation, and general commercial foot traffic. The organization will enrich our city’s creative capacity and improve the sense of inclusivity among creative workers and arts organizations by generating more connections, collisions, synergies and collaborations among the art forms. The following table outlines the key strengths and limitationsidentified by the groups for each location. LocationStrengthsLimitations 41 Ardelt A large, established, adaptable Not central, or easily accessed by Avenuespace with no restrictions and ample transit or foot traffic. parking. 44GaukelA city-owned, centrally-located Current floor plan and lack of natural Streetfunctioning hub, with possibilities for light. development, located near a transit hub and green space. 48 Ontario A city-owned, centrally-located, Requires extensive renovations to Streetmulti-level space that is close to the improve accessibility and energy growing tech sector, containing a efficiencies; may be prohibitive to hall and stage. not-for-profit organizations. 152 ShanleyLarge, historical, unused Requiresextensive renovations with manufacturing spaces.limited parking. Constellation A fiscally-prudent model that works Fixed distances between places Modelwith, and inspires movement without a unified governance model between existing organizations.or administration. Former A large and accessible, unused Provincially-owned building that Provincial space, located in a burgeoning requiressignificantinternal Courthousecultural district with underground renovations. parking. Former Zion An architecturally uniquespace Requires major renovations to United Churchstrongly suited for theatre groups improve accessibility and energy and performances.efficiencies. Sacred Heart A large, unused school in a Midtown Requires major renovations to Schoolneighborhood with potential as a improve accessibility, energy multi-functionalspace with ample efficiencies, and possibly rezoning. parking. Each of the groups identified the resourcesnecessary to convert their locations into a creative hub. Kitchener’s creative hub will require initial funding from all levels of government to customize a space; a solid business plan and governance structure that includes a development 8 1 - 22 (fundraising) strategy; a safe, secure and accessible building; and partnerships with the surrounding business and tech communities.In return, Kitchener’s creative hub will provide a breadth of resources to enrich the capacity of creative professionals and their businesses. Community Engagement Event #3: “Placing a Creative Hub:Drop-In & Weigh-In” Kitchener City Hall, Rotunda, October 18-19, 2016 Estimated attendance:150 The intent of the third community engagement event was to continue the dialogue started in the first and second events by providing some artistic stimulation through a study in place making. Guest artist, Agnes Niewiadomski was contracted to assist ABSTRACT associates in creating a prototype of Kitchener’s existing cultural ecosystem with the addition of a new creative hub. Each cardboard pyramid represented an existing facility (many of which were studied in the September event) and its resources, the creative sectors served, purposes and potential limitations. One pyramid appeared different (hollow) and represented a new creative hub that Figure 5 Placing a Creative Hub could add to the ecosystem what the other locations lacked. Artist Statement “As our city evolves under a veil of perpetual construction, so does our cultural landscape. This prototype of the creative ecosystem in Downtown Kitchener shows that, while we have so many resources within walking distance, there is in fact a need for yet another – a creative hub. We are not sure yet where this hub lives, but through our research we have learned that it must give form to flexibility, collaboration, creativity, fun, inclusivity, resources and motivation. A new creative hub will stand among the existing assets to infuse this cultural landscape with advocacy and promotion, networking and events, creation spaces, and skills development. The research has shown that what our current landscape needs is a resource that will help to propel the careers of our creators, build recognition for our creative community and develop a measurable economic impact. With the help of a local artist, Agnes Niewiadomski, ABSTRACT Project Management & Consulting designed and constructed this prototype for the City of Kitchener.” 9 1 - 23 Consultants and staff collected feedback from visitors, in person and online to supplement the growing data set. Interviews with Artists and Creative Professionals Interviews with individual creative professionals: 12 As part of our research, Abstract Project Management & Consulting conducted interviews by phone, email and in person with 12 individuals. A review of the data yielded the following insights: One building will not solve all the needs. Some spaces currently considered as “available”, are not really so. Examplesinclude the Studio at Centre in the Square (prohibitively expensive to use), Globe Studios (currently full witha long waiting list to get in), and Registry Theatre (currently booking approximately 2 years in advance). The City should concurrently examineexpanding support to existing facilities to help solve space needs in addition to looking at a creative hub. The creative hub should consider a sliding scale of rental prices or different prices based on the type of work. Subsidies should be set aside foremerging creatives or those at the beginning of their careers. The creative hub should provide training in entrepreneurial skills, arts business development, and best practices. The creative hub should have a flexible list of amenities and options, but not require people to use them. Whoevermanages the space will be very important as they will set the tone and feeling of a space. The City should carefully consider proponents for fit. Watch for conflicts of interest (e.g.making sure the managing organization does not book all of the good spaces/times for itself) andconsiderexperience in facility management. A creative hub should be a “home for art”. The creative industry is an ecosystem. If the City wants to see a thriving cultural sector and create morejobs, it needs to invest in the sector in the same way it invests in other sectors, such as tech, sports and recreation. The needs are similar. 10 1 - 24 Comparative Analysis: 48 Ontario Street North and 44 GaukelStreet The increasing property values and lease rates contribute to an increasing displacement of the creative industries in Kitchener. When artists and creators are pushed out, they leave for other cities where space is more affordable and/or the cultural scene is more hospitable. The community stakeholders’ preference is a central and urban (i.e.downtown) location for Kitchener’s creative hub. While many locations were discussed, two sites are subject to the City’s oversight and are currently vacant: 48 Ontario Street North and 44 Gaukel Street. The old Legion building at 48 Ontario Street North has attracted substantial interest from the heritage and cultural sector since it was vacated, including an increased interest from developers. Many stakeholders would love to see new life breathed into this building. Thecity- owned property at 48 Ontario Street North requiresextensive renovations, which may be prohibitive for not-for-profit organizations (even a consortium) in the City of Kitchener. The city-owned property at 44 GaukelStreet already contains a functioning creative environment. It would require minimal renovations to accommodate a more enriching hub experience. The 44 GaukelStreet pilot program has demonstrated results, increased entrepreneurial capacity for existing tenants, and set expectations for a working model. It is encouraging to know that city-owned property and not-for-profit partners have more access to capital grants (Canada Cultural Spaces etc.) than privately-owned buildings. 11 1 - 25 Conclusions The definition of a creative hubhas evolved to include Entrepreneurship and professional development services for creative professionals Multi-use rentable spaces for rehearsals, performances, exhibition, specialized studios Compatible commercial tenants Operated by a not-for-profit or partnership on a cost recovery basis Municipal-owned building to maintain stabilized rental rates The incubation, acceleration and networking is critical to the success of Kitchener’s creative professionals, as they are currently under-represented compared to other municipalities. The development of a local supply chain for creative content strengthens the tech sector and other leading sectors. It will be important to have a healthy creative sector to accommodate the talent being fostered by local post-secondary institutions. With the City’s support, like in other sectors (e.g.tech sector and innovation district), Kitchener’s creative hub will result in substantial economic development by supporting career development in the creative industries and cultivating opportunities for success. Considering the lack of affordable real estate in the city’s centre, and the stakeholders’ feedback outlined above, a city-owned building is the preferred location. To summarize, a creative hub is: Located downtown in acity-owned building A proven incubator A cost-recovery operation Third-party operated A nucleus to a city-wide network Two locations remain for consideration: 44 GaukelStreet - occupancy ready, expandable, and a highly anticipated development opportunity 48 Ontario Street North - high renovation costs, delayed occupancy and significant to the heritage and creative communities in particular, and the community at large in general. 12 1 - 26 CAO-16-043 Creative Hub Options Appendix 2 Background Research on a Creative Hub 26 pages 1 - 27 Background Research on a Creative Hub November, 2016 Arts and Creative Industries 1 - 28 Does Kitchener need a Creative Hub? Does the city have the conditions to support a Creative Hub? The Kitchener Economic Development Strategy (Make It Kitchener)adopted in 2016 recognizes arts, cultural workers and content creators (including music, media, film and design) as a vibrant economic cluster in and of itself, comprising a significant segment of the labour force. Arts and culture industries leverage innovation throughout businesses as diverse as digital media and advanced manufacturing design. Strengtheningarts and culture activities helps to develop Kitchener’s distinct identity as a desirable place to live and to visit. And it is a critical component to talent attraction, retention and development. There is strong interest and support for the concept in Kitchener. The establishment of a Creative Hub is proposed in Make it Kitcheneras a way of supporting the development of the creative industries and the creative entrepreneurs in Kitchener. This background research provides insight into some of the dynamics affecting the development of the Creative Hub. Based onbest practices from across North America and Europe, the components of the following frameworkidentified by N. Barry Lyon Consultantsare assessed for Kitchener(2009). 1.Champions 2.Existing Creative Community 3.Mix of Uses & Services Offered 4.Location 5.Financing The following document explores each of these success factors. 1 1 - 29 C ONTENTS 1.0 Champions ........................................................................................................................................................................ 3 2.0 Existing Creative Community ................................................................................................................................... 4 2.1 The role of the creative industries in economic development ............................................................ 4 2.2 Defining the creative industries .......................................................................................................................... 4 2.3 The creative industries in Kitchener ................................................................................................................ 5 2.4 Which creative industries? ................................................................................................................................... 7 2.5 Creative Industry Dynamics ................................................................................................................................. 9 3.0 Mix of Uses & Services Offered ............................................................................................................................ 10 3.1 Models .......................................................................................................................................................................... 10 3.2 Types of Users ......................................................................................................................................................... 10 3.3 Services Offered ...................................................................................................................................................... 11 3.4 Facility Operations & Management ................................................................................................................ 12 3.5 Financing ..................................................................................................................................................................... 12 3.6 Other Hubs ................................................................................................................................................................. 13 Cotton Factory, Hamilton, Ontario..................................................................................................................... 13 Art Space Winnipeg, Manitoba ........................................................................................................................... 13 Brick & Mortar, Toronto........................................................................................................................................... 13 Khyber building, Halifax, Nova Scotia ............................................................................................................. 13 4.0 Location ............................................................................................................................................................................. 14 4.1 Demand for Space ................................................................................................................................................. 14 4.2 Site Selection ............................................................................................................................................................ 17 5.0 Financing and Community Support ..................................................................................................................... 19 Kitchener-Waterloo Community Foundation ..................................................................................................... 19 Ontario Trillium Foundation ....................................................................................................................................... 20 Canada Cultural Spaces Fund ................................................................................................................................. 21 FedDev: Economic Development Initiative ........................................................................................................ 22 6.0 Conclusions ..................................................................................................................................................................... 24 Works Cited ............................................................................................................................................................................. 25 2 1 - 30 1.0C HAMPIONS The idea of a central space for the production and delivery of creative work and access to resources supporting creative entrepreneurs ismanifested by a variety of champions and organizations within the community. While the need for such a space and associated services has been identified in a number of strategies and plans (see section 4.1), there are people and organizations currently undertaking aspects of this work. A small selection of current examples includes: The Registry Theatre’s plans for a renovation to accommodate additional rehearsals and performancesand the “Registry Model” of providing guidance and support to both emerging and established performers Globe Studio’s proven model of affordable visual art space, studio sales, and co- location Treehaus’s affordable and collaborative co-working space The co-operation and collaboration of a group of theatre companies to share costs associated with block bookings (Greenlight Arts, Lost and Found, MT Space) The Waterloo Region Small Business Centre’s programming dedicated to entrepreneurial business development skills for the creative industries (The Business of Song, Arts, Business and Creativity: The ABCs of Success) Through the community engagement process, staff received interest from community members in support of thedevelopment ofa hub for filmmaking and digital media (including a conceptual proposal with 40 letters of support) The collaboration between ArtsBuildOntario, the Accelerator Centre and UW Critical Media Lab now co-located at 44 Gaukel Street 3 1 - 31 2.0E XISTING C REATIVE C OMMUNITY 2.1 T HE ROLE OF THE CREATIVE INDUSTRIES IN ECONOMIC DEVELOPMENT Knowledge is the basic economic resource required for production in the knowledge or ‘new’ economy (Florida, 2002; Scott, 2004). As knowledge and creativity are now viewed as key to its competitiveness, the repositories of this knowledge and creativity—people—are paramount to its operation. Therefore, one of the main requirements of this approach to the “new” economy is human capital. The creative industries are increasingly understoodby academics and policy- makers to be valuable attributes in the global competition for human capital (Florida, 2002). Furthermore, Pratt argues that the creative industries are significant not only for their role in talent attraction and retention, but for their production value (Pratt, 2008)—in other words, not so much what they produce but how they produce it. This often involves social inclusion and social capital, also important factors in economic competitiveness. Attempts to cultivate knowledge-based industries and the need for highly sought-after human capital underpin current economic development interest in the creative industries. Furthermore, the creative industries are critical to a diversified economy, they provide an intensely local supply chain, and strengthen technology and other leading sectors by driving innovation Consistent with other economic clusters such as technology, manufacturing and finance, spaces for collaboration and incubation are essential to foster strong economic performance creating jobs, increasing assessment. This is even more important in project-based ecosystems, such as the creative industries, where uniquely skilled people come together to work on specific projects (Grabher, 2002b).Through extensive community engagement, the concept of a Creative Hub was recommended as part of Make it Kitchener, the 2016 Economic Development Strategy for the City of Kitchener. Incubation, acceleration and networking are firmly established as critical to success. 2.2D EFINING THE CREATIVEINDUSTRIES For the purpose of this analysis, the creative industries aredefined in line with NAICS selected by Vinodrai and Gertler (2007)for a number of reasons: 1) The selection examines the creative industries in Ontario 2) The NAICS are selected based on previous policy and academic definitions of the creative industries in Ontario 3) The selection considers the performance of the creative industries in a variety of regions in Ontario. 4 1 - 32 By maintaining this definition articulated comparisons can be drawn between Waterloo Region and the creative clusters identified by Vinodrai and Gertler. The NAICS industries included in creative, cultural, and new media are as follows: 3346 Manufacturing and reproducing magnetic and optical media 5110 Newspaper, periodical, book, database, software, and information services 5112 Software publishers 5121 Motion picture and video industries 5122 Sound recording industries 5131 Radio & TV broadcasting 5414 Specialized design services 5418 Advertising and related services 6115 Technical and trade schools 6116 Other schools and instruction 7111 Performing arts companies 7112 Spectator sports 7113 Promoters/presenters of performing arts, sports, or similar events 7114 Agents and managers for artists, athletes, entertainers, and other public figures 7115 Independent artists, writers, and performers 8112 Electronic and precision equipment repair and maintenance 8132 Grant-making and giving services 2.3T HE CREATIVE INDUSTRIES IN K ITCHENER Vinodrai and Gertler(2007)establish that the creative industries in Ontario experienced an overall increase in employment between 1987 and 2004: this outpaced growth in Ontario’s economy as whole over the same timeframe. This trend is reflected between 2001 and 2006: Figure 1 illustrates that the creative industries in Ontario experienced more employment growth than the economy in general. While this trend is reflected in Waterloo Region, growth in both the creative industries and in all industries was stronger than thatof Ontario. Data from the 2006 Census was used, as data from the 2011 National Household Survey was deemed too unreliable. The 2006 Census survey had a 95.3% response rate, while the National Household survey in 2011 had a response rate of 68.6% (and thisvaried considerably from city to city) (Vinodrai, 2015). The lower response rate not only resulted in lower-quality data, but it meant that some data was suppressed entirely where insufficient information was available or to protect anonymity (Vinodrai, 2015). 5 1 - 33 Figure 1: EmploymentGrowth in Waterloo Region Census Division and Ontario, 2001–2006 14.00% 11.74% 11.68% 12.00% 10.00% 8.00% 6.99% All industries 6.06% 6.00% Creative, Cultural, New Media Industries 4.00% 2.00% 0.00% Employment GrowthEmployment Growth OntarioWaterloo CD Artists and cultural workers make up about 3.3% of the labourforce, or approximately 10,000 people in Waterloo Region (Hill, 2015). Figure 2 illustrates that this is slightly lower than other comparable municipalities, such as London and Hamilton (3.39% and 3.34% respectively). The under-representationof the creative industries in Kitchener (Hill, 2015)weakens the local supply chain for businesses relying on content, innovation, and ultimately, the need for a vibrant, magnetic community where people want to live, work, and feel a sense of belonging (Kitchener Waterloo Community Foundation, 2015). In mid-sized cities, the development of targeted creative industries that have a natural connection to leading economic sectors has positively impacted local economies(Markusen & Shrock, The Artisitic Divident: Urban Artistic Specialisation and Economic Development Implications, 2006). The potential benefits of localized supply chains and the growth potentialof the creative industries indicates that economic development intervention is needed to support their growth, cultivate their myriad impacts on the community, and strengthen the region’s competitive advantage. 6 1 - 34 Figure 2 Cultural Workers: Municipal Comparison 2.4W HICH CREATIVE INDUSTRIES? Industry targeting analysis categorizes industries for the purposes of strategic planning, suggesting the potential economic development value of each industry. This analysis categorizes industries according to their concentration in the local economy (LQs), and recent growth performance (employment growth and shift-share) (McLean & Voytek, 1992). Based on these three considerations, industries are accordedone of seven categories. Table 1 includes the seven categories and how LQs, employment growth, and the regional shift-share data determine how an industry is categorized. The most useful categories for the purpose of strategic planning in economic development are current specializations (current strengths and high-priority retention targets), and potential import substitution opportunities (emerging strengths) (McLean & Voytek, 1992). It is these high-potential categories that can assist in determining which industries merit particular attention from economic developers. 7 1 - 35 Table 1 Industry Targeting Analyses CategorizationLQEmploymentRegional Effect Current strength>1+ High priority retention target>1 Prospects limited due to external trends>1+ Prospects limited due to local weaknesses>1 Emerging strength<1+ Prospects limited due to weak base and declining <1 competitiveness Prospects limited due to weak base and external trends<1+ Limited prospects overall<1 Source: (McLean & Voytek, 1992) Bradshaw and Blakely suggest the third-wave economic development includes “an identification of industries and industrial sectors believed to have high potential for expansion and that can stimulate other economic sectors” (1999, p. 236). This strategic planning approach to economic development can be applied to the creative, cultural, and new media industries. Table 2 includesthe creativeindustries in the Region of Waterloothat are categorized in the positive growth categories: current strength and emerging strength.Table 2 highlights industries in the Region of Waterloo that are emerging strengths: motion picture and video industries; specialized design services; and promoters or presenters of performing arts, sports, or similar events. The only current strength within the creative, cultural, and new media industries—other schools and instruction—is also highlighted. While each of these industries requires further investigation to determine which specific sub-sectors are most relevant locally, this analysis indicates which creative industry sectors warrant further attention as target industries. While these results required furtherconsideration, the industry targeting analysis is a first step in identifying high-potential industries for which economic developers can createinitiatives in the targeted sectors. Table 2 Industry Targeting Analysis for the Region of Waterloo's Creative, Cultural, and New Media Industries 2006 in Waterloo CD IndustryIndustry Targeting Category 5121 Motion picture and video industriesEmerging strength 5414 Specialized design servicesEmerging strength 6116 Other schools and instructionCurrent strength 7113 Promoters (presenters) of performing arts, sports, and similar eventsEmerging strength Source: Custom tabulations using 2006 and 2001 Census data from the Ontario Ministry of Agriculture, Food and Rural Affairs While it is impractical to speculate which businesses will occupy the Creative Hub; we have observed momentum in visual art, theatre, music, media, film and design. These sectors are 8 1 - 36 identified in Make it Kitcheneras a strategic and promising cluster, and further confirmed industry targeting analysis (City of Kitchener, 2015). 2.5C REATIVE I NDUSTRY D YNAMICS In the creative industries social interaction is integral to career development, collaboration, peer review, the commodification of cultural products, and collective inspiration (Currid, 2007). For example,advertising is project-based and calls for the development of project teams specially assembled to meet the needs of a particular project (Grabher, 2002b). The ability to assemble the right project team for the successful completion of a project is a highly valued skill (Grabher, 2002b).In order to seize new project opportunities, cultural workers must be “plugged” into a social network. Similarly, in the creative industries, where human capital mixes with social capital, value is associated with the success of your last project (Grabher, 2002b). The cultivation of personal reputation is imperative: the social network is a platform for these efforts (Grabher, 2002b). The dense social networks that underpin the creative industries can also serve as the mechanism for self-organization and governance (Lange, Kalandides, Stober, & Mieg, 2008).A centralized location, where creative industry practitioners get to know each other, get to know each other’s work, and consequently develop increased capacity to secure projects, can positively impact their economic performance. Outside of large urban centres, best practices suggest a model of artistic specialization targeted creative industry sectors to develop a competitive advantage (Markusen & Schrock, 2006). For example, research indicates that Minneapolis-St. Paul’s “specialization in advertising employment dovetail with prominent pools for designers, writers and other artistic groups” (Markusen & Schrock, 2006, p. 1676). Thepresence of artists in a particular location may encourage the formation of new enterprises and may attract “other arts-using firms” (Markusen & Schrock, 2006, p. 1682). 9 1 - 37 3.0M IX OF U SES &S ERVICES O FFERED 3.1M ODELS Based on research examining models of creative buildingsfrom the Hamilton Creative Catalyst Project Feasibility Study, a Creative Hubneeds to foster interactionamong tenants. It does this by ensuring tenants bump into each other in common spaces.Tenants also need to perform their work in close proximity to those doing different, but related, work(N. Barry Lyon Consultants Limited Consulting Matix, 2009). There is an expectation that the Creative Hubcan be delivered on a cost-recovery basis. The preferred approach is for the space to be operated by a not-for-profit agency, non-profit consortium, or private-public partnership in a municipally-owned building. Increasing property values has raised the specterof gentrification. Stakeholders expressed their belief that the city has a role in preserving affordable space for the creative industries as a mechanism of incubating their growth and retaining these small businesses in our community. This preference is consistent with a study conducted by Ipsos-Reid in 2006-2007 on behalf of ArtsBuildOntario (N. Barry Lyon Consultants Limited Consulting Matix, 2009).The study determined that 52% of arts organizations either lease space from their municipalities or operate in their own space. To further articulate the concept of a Creative Hub, council asked staff to work with stakeholders to define the concept, including users, space requirements, values, and functions. The results of that study were presented to Planning and Strategic Initiatives Committee of Council on October 3, 2016 in report CAO-16-025. 3.2T YPES OF U SERS Based on previous consultation data and data collected from Imagining a Creative Hub: A Stakeholder Lab, several user groups were identified. The Creative Hubwill be used by creative practitioners, arts organizations, and creative industries that are market-oriented and artist- driven. Examples of users include: • Arts organizations • Creative practitioners • Visual artists and craftspeople • Literary artists • Writers • Musicians, industry professionals • Digital media technologists • Festival operators • Performing arts and related professionals • Music • Theatre • Dance • Digital media developers 10 1 - 38 • Filmmakers • Animators • Photographers • User-experience designers • Architects • Curators • Designers • Industrial • Graphic • Textile • Fashion • Interior • Educators • Investors • Professional associations 3.3S ERVICES O FFERED Findings from Imagining a Creative Hub: A Stakeholder Laband research referencing other hubs,indicate that the space allocation at a Creative Hubshould consist of administrative spaces and workshop spaces supporting entrepreneurship; rentable multi-purpose, flexible spaces supporting rehearsal, exhibition, events, performance, and specialized studio needs; and a footprint for a compatible commercial use. These results are listed below and visualized in Figure 3. • Entrepreneurship & Professional Development • Administrative space(s) (entrepreneurial services i.e. agents, digital marketing, digital monetization, intellectual property rights, grants, etc.) • Shared resources/tools workshop • Space Rental: • Flexible rental for rehearsal, event or performance space • Specialized studio spaces (visual arts, sound/ video recording, multi-media) • Formal performance space • Soundstage • Compatible Commercial Uses: • Tenants such as retail music store, games startup, coffee bar, or other compatible uses. 11 1 - 39 Figure 3Sample Space Allocations at the Creative Hub 3.4F ACILITY O PERATIONS &M ANAGEMENT The Creative Hubrefers toproperty occupied by several organizations working together and separately to the Creative Hubexists to facilitate the career success of those engaged in the creative industries by expanding thecapacity for entrepreneurship, creation, networking and collaboration. Several options are possible for the ownership, operations and management of the Creative Hub: 1.The Creative Hubproperty is owned and governed by a corporation (not-for-profit, for-profit, or partnership of both) 2.The Creative Hubproperty is owned by the city and is leased to a not-for-profit corporation or partnership that manages the Creative Hubactivities therein 3.The Creative Hubpropertyis owned and governed by a corporation (not-for-profit, for-profit, or partnership of both) and is leased to a second corporation (not-for-profit, for-profit, or partnership of both) whomanages the Creative Hubactivities therein. 3.5F INANCING The building and development of performing arts facilities, museums, libraries, and other public institutions are generally supported by three levels of government as well as private 12 1 - 40 foundations, companies and individuals (N. Barry Lyon Consultants Limited Consulting Matix, 2009). In the face of high costs of investment, these types of institutions are often supported by municipalities as they generate returns to residents and taxpayers “in ways that are not always easily measured, but are real and beneficial”(N. Barry Lyon Consultants Limited Consulting Matix, 2009, p. 29). Creative Hubrevenue sources can include: Rent (some market and some below market for short-term space and for anchor tenants) Services (administration, marketing, programming) Donors Grants (an overview of potential grants can be found in section 5) 3.6O THER H UBS C OTTON F ACTORY,H AMILTON,O NTARIO Multiple Buildings 50,000 sq. ft. + Cotton Factory has been transformed into a creative industries complex, with space for workshops and small manufacturing, office space for creative professionalsand studios for artists. A RT S PACE W INNIPEG,M ANITOBA 55,000 sq. ft. Home to film, media, theatre, music, literary arts, creators and organizations: Cinematheque, TheWinnipeg Film Group, video Pool Media Arts Centre, Jazz Winnipeg,digital arts etc. B RICK &M ORTAR,T ORONTO 5000sq. ft. Not- for-profit operating model; offers spaces for use and rent as studio, performance, rehearsal, and multi- disciplinary endeavors. The spaces are located at three addresses available forbooking. K HYBER BUILDING,H ALIFAX,N OVA S COTIA 10,000 sq. ft. Halifax regional council considered a proposal from the Khyber Preservation Society to transforming property into an arts hub. W YCHWOOD B ARNS,T ORONTO 50,000 sq. ft. Owned by City of Toronto; 50-year lease for operation byArtscape as a multi-faceted complex with studios, live/work spaces, programming and administrative facilities,community-run gallery, covered market area, conferences and events. 13 1 - 41 4.0L OCATION There is a need for a Creative Hubin Kitchener. Through stakeholder consultation, staff considered the types of uses that are in demand and for which the currently supply is limited, the physical space characteristics, and how the Creative Hubmight be managed. 4.1D EMAND FOR S PACE Consultation has been conducted for the 2016Economic Development Strategy Make it Kitchenerand is in progress for the upcoming 2016 Arts Action Plan. Stakeholders have identified pressing needs for space in project-based activities related to performing arts, visual arts, film, music, dance, animation, and digital design, including activities such as production and entrepreneurial services. These services for networking and project based activities are significant to a sector with a high proportion of self-employed workers: 21% of cultural workers are self-employed, while 8% of workers in the general labour force are self-employed. This indicates high levels of entrepreneurialism. Community engagement findings validate the input obtained over years of consultation, most recently for the development of Make it Kitchener. A summary of the results from four community engagement exercises: tours of 48 Ontario Street North, Imagining a Creative Hub: A Stakeholder Lab, Building a Creative Hub: A Stakeholder Workshop and Placing a Creative Hub: Drop In—Weigh Incan be found in Summary of Primary Data Findings on a Creative Hub. The demand for creation space, rehearsal and performance space, administration space, storage, meeting, and workshops with specialized equipment has been discussed in for many years in Waterloo Region. Table 1 provides a brief overviewof the consultation findings and policy directions that refer to physical space for the creative industries. Table 31 Consultation Findings and Policy Direction re: Space for Creative Industries SourcePolicy Direction / Stakeholder Consultation Findings Strategic economic MAKE IT START | Become a magnet for investment: development goals Establish a Creative Hubfor artists — especially in the identified by Make it music, film, theatre and digital media industries —offering Kitchener, 2015-2019 such things as rehearsal spaces, entrepreneurial and promotional services, skills development, and event programming. Explore opportunities for pop-up retail to allow prospective entrepreneurs to test concepts and products. Raw input from ArtsBuild “\[Some\] existing venues are not focused on community Ontario’s strategic needs. They are not artist centric. Some Kitchener spaces review of JM Drama, are more expensive than Toronto spaces!” 2016 The Registry works because it’s affordable, community- based, offers required amenities, supportive, and has a great atmosphere Arts Reboot/ Shift #2, Apr 24 2015: Action Items—Immediate and Possible ArtsTogether, 2015Longer Term: 14 1 - 42 An artist-run gallery space Affordable live/work spaces Smalland medium affordable rehearsal and performance spaces Film studios for prop building, green-screening, and other cinematographic purpose Sound and video editing space A black box experimental theatre for new music and interdisciplinary work Community input from Live/work studios “Ideas of the Brave” Art centre: rehearsal space, performance space public consultation for Short term solution to vacancies: pop-up art galleries/art the City of Kitchener’s focused small businesses in vacant locations economic strategy plan Art hub (like 401 Richmond), art start-ups, multi-purpose art update, 2015-2019 space Film studio/sound stage Specialized studio space. FX/MOCAP. A want for creative collaboration being taken seriously Need a more attractive key venues in the community Lack of jam spaces for artists Create a cultural/Creative Hub. Affordable, live/work, multi- use space Rent controlled and mixed use building spaces Collaboration spaces needed City of Kitchener 2.2 | Support the attraction, retention and development of existing Strategic Plan, and new industries within the regional economy, working in 2015-2018collaboration with the economic development corporation for Waterloo Region. 2.4 | Developandnurture a highqualityoflifeand a powerfulidentify fortheCityofKitchenertoattractinvestmentand a talentedcreative workforce. ACTION | Invest in the cultural sector as a key driver of a creative city and the local creative economy. Creative Content Achieving a central location to maximize accessibility Industry in Waterloo Assuring adequate resources are committed in order that the Region, prepared by facility can provide abundant programming and opportunities FAD Research Inc. for networking (funded by OMDC for CEI and the City of Kitchener ), May 2015 ArtsBuild Ontario’s Rehearsal space is in high demand. Sustainable Creative No one’s building studio space! Short-term artist rental space Spaces sessions is needed. summary, Need unfinished, semi-finished spaces – losing a lot of them, April 2013 need more. Need space to have meetings 15 1 - 43 CEI Results to Date: A Affordable mixed-use studio space Report to Stakeholders, 3-5 year opportunity December 3, 2012 30+ Applicants for 12 studios Retail / event space Music Works Action Networking events related to music and digital media Plan: CAO-12-034, Stakeholder engagement September 17, 2012 Broaden artist-in-residence to include musicians Music business resource centre, bricks and mortar Jam space for local musicians Using vacant buildings for scene activities Raw input collected in 1.2: Build emerging cluster: arts, culture and tourism consultation with staff 1.2.4 (staff): Support feasibility study for a potential arts and citizens to inform the centre downtown Kitchener Economic 1.2.13 (symposium): Artscape type faith Development Strategy 1.2.18 (symposium): Create entrepreneurial environment 2011-2015 incubator 10.9 (symposium): Large arts venue Downtown Kitchener “The idea of a multi-use space is right for Kitchener. There Arts & Culture Cluster are more and more artists emerging, and small theatre Development groups forming.” Framework, December “It is hard to rent studio space because I have found a lot of 2006 property owners not willing to rent to artists.” “These warehouses provide great studio space, but I don’t consider it to be very safe at night.” “We critically need stable rehearsal space, workspace and studio space as a basis for a strong arts and cultural sector.” “Spaces are there, but their potential isnot maximized.” “Artists and arts organizations do not own their spaces – we need anchors.” “It should be balanced with a number of different types of spaces and uses, from production to learning to showcasing.” “Mixed use space between arts/non-arts businesses is as important as mixed use by different types of art – different kinds of synergies result.” CulturePlan II, 2005)Continue to support and monitor the economic impact of the arts and the benefits of cultural planning: 18. Development of creative industries Investigate arts investment opportunities including new festivals, live/work spaces for artists and multi-use arts facilities: 58. Support a feasibility study for a multi-use downtown arts centre 59. Facilitate investment in live/work buildings for artists Downtown Strategic 12. Identify and facilitate a project (e.g. live-work or studio Plan Volume II: The space) focused on the development of arts space in 16 1 - 44 implementation, 2005-partnership with the local arts community 2007 37. Facilitate partnerships between various “communities” to help bring people downtown, such as the medical and education community, and the business and arts community. 40. Identify key sites and negotiate with interested property owners to develop art space (studio, live-work space) in the Downtown. 41. Identify affordable sites for rehearsal and performance space in the downtown together with partners in the arts community. Region of Waterloo Building Vibrant Urban Spaces: Growth Management Quality of life and re-urbanization by encouraging downtown Strategy, 2003 revitalization, urban amenity development, heritage preservation, mixed uses, brownfield regeneration, cultural diversity, and balanced live/work opportunities. City of Kitchener Arts, Developing a stronger cultural heritage identity for the region Heritage and Culture Maximizing accessibility to arts, culture and heritage Master Plan, 2002 opportunities and information CulturePlan I (1996)D. Augment existing cultural facilities: D13. Support the creation of performance venue of 300-450 seats D14. Investigate the creation of an outdoor Amphitheatre In summary, the types of space requested by stakeholders include: Performance/ presentation Rehearsal Offices Meeting Classroom Soundstage Specialized studio Live-work 4.2S ITE S ELECTION There is considerable momentum surrounding a need for affordable space for artists who create the cultural vitality of the city. Additionally, and as in other sectors such as technology, these centralized spaces offer networking, collaboration and shared services to strengthen the careers and project-based activities in the arts, culture and creative industries. Critical to the success of any industry is finding the right location to start and grow a business enterprise. Local studies indicate artists and creative workers in Waterloo region are largely concentrated in their work and residence in and around downtown Kitchener(Hill, 2015). Downtown Kitchener serves as a networking point: a way to link arts resources and spaces 17 1 - 45 throughout the city. As in other communities, it is this heart of the city that sparks creative industry across a vibrant cultural infrastructure throughout the community. As in other growing and successful cities, as urban centres are intensified with office employment, lease rates steadily increase. Though this is strong indicator of success, it presents a risk to the creative sector: practitionersgenerally do not seek suburban locations but rather skip over the region and relocate in other urban centres,such as Hamilton. This is a known pattern of downtown development that risks creating a business monoculture, in turn decreasing the unique features that attract talent in the first place(Zukin, 1989). Based on previous consultation data, research on best practices, and data collected from Imagining a Creative Hub: A Stakeholder Lab, several space characteristics were identified, including: Adaptable / Flexible multi-use spaces Close to other creative resources in the community (The Working Centre, Bonnie Stuart building etc.) Publicly accessible Inspiring exterior and interior, including high ceilings and natural light Welcoming, inclusive, and accepting Shared amenities and spaces for collaboration Sufficient size to accommodate an anchor tenant Criteria were developed to narrow the list of potential sites. The criteria by which locations were assessed can be found in CAO-16-034Creative HubOptions Report. Based on stakeholder feedback from years of consultation and interest in 48 Ontario Street North, a great deal of emphasis was placedon city-owned facilities. Benefits of municipally owned buildings include: lower land costs and less complicated and lengthy negotiations with private landowners(N. Barry Lyon Consultants Limited Consulting Matix, 2009). 18 1 - 46 5.0F INANCING AND C OMMUNITY S UPPORT There are a number grant programs that the Creative Hubmay be eligible to receive. A selectionfrom initial researchis provided below. K ITCHENER-W ATERLOO C OMMUNITY F OUNDATION Vital or Community Grants P URPOSE Vital Grants are designed to move the needle on the single most pressing issue facing out Region as identified by Waterloo Region’s Vital Signs® (WRVS). This issue currently is Belonging. The focus for Vital Grants is to improve the lives of our citizens in Kitchener, Waterloo, Wellesley, Wilmot and Woolwich through projects that can demonstrate an impact on Belonging. T YPES OF P ROJECTS Projects or programs that can demonstrate an impact on Belonging Start-up costs for new initiatives and high-impact programs by existing organizations where there is a demonstrable prospect for sustainability. Start-up operating costs for organizations meeting new or emerging needs or opportunities One-time events that have the potential to result in significant community building Contributions to capital campaigns Short-term funding that may become the determining factor in the continuation of a worthwhile charitable organization, or where such funding is required to review the efficiency of a charitable organization, or to study the means by which an organization might establish effective collaborative arrangements with charitable organizations with compatible aims and objectives W HO CAN APPLY Organizations must be registered with the Canada Revenue Agency as a charitable organization For organizations that do not have charitable status, but would like to be considered for a grant, please review the information on how to establish a written agreement with a registered charitable organization that is a qualified recipient A MOUNT AND T ERM Amount range: $60,000 Duration: 2 years 19 1 - 47 O NTARIO T RILLIUM F OUNDATION Investment Stream: Capital P URPOSE OTF provides capital funding to improve the infrastructure required for communities to thrive. Funding is delivered through a process that allows OTF to respond flexibly and effectively to the broad and deep need for community-oriented capital funding across Ontario. The Capital Investment Stream is for capital-specific projects that align with one of the OTF Priority Outcomes and its related Grant Result. R ELATED P RIORITY O UTCOMES Priority Outcome: Better quality programming and infrastructure to experienceculture, heritage and the arts 1.Arts, culture and heritagehave appropriate spaces Facilities play a large role in hosting the exchange between artistic product and audience. Spaces that are welcoming, accessible, technically sound and aesthetically pleasing improve the quality of the production or program, whilealso engaging participants physically, intellectually and emotionally. They create the conditions for the work to be well received and eliminate barriers to full and active participation. Project or Grant Examples: A heritage site is renovated to provide a community hub for arts organizations and individual artists. The purchase of an accessible, mobile event stage enables performing arts groups to reach new audiences by delivering performances in unconventional spaces, particularly outdoors. By purchasing and installing a new dance floor, a contemporary dance ensemble ensures a safer environment for its students and performers. 2.Skills and knowledge are transferred to the next generation of artistic leaders Artists are essential to our communities. Whether professional or amateur, good arts programming depends on expert guides. Artists and other facilitators require ongoing education, training and mentorship to ensure that they remain relevant and responsive to evolving audience needs and interests. They need both the technical tools of creation as well as business and organizational development skills. Project or Grant Examples: Independent artists come together for business skills training in partnership with a local community college. 20 1 - 48 Training, mentorship and succession planning is provided to theatre artists to ensure the artistic integrity of their work. T YPES OF PROJECTS All supported Capital specific projects must achieve measured impact in their community. Specifically, the purpose ofOTF capital funding is to: Enhance access to community spaces, programs, activities and services, and facilitate community members’ full participation in the life of the community Enhance and build community spaces that support OTF Priority Outcomes Promote energy efficiency and contribute to environmental outcomes by 'greening' community spaces Enhance the efficiency and effectiveness of programs and make better use of technological resources W HO CAN APPLY A charitable organization or foundation registered as a charity with the Canada Revenue Agency An organization incorporated as a not-for-profit corporation without share capital in a Canadian jurisdiction A First Nation A Metis, Inuit or other Indigenous community A municipality with a population of 20,000 or less, or their cultural and recreational agencies for initiatives in the Inspired or Active People action areas A collaboration of two or more organizations, where the lead organization is an eligible organization A MOUNT AND TERM Amount range: $5,000 to $150,000 Duration: Up to 1 year Note: 10% of the funding will be held back, to be paid upon satisfactory review of the final report C ANADA C ULTURAL S PACES F UND As part of the 2016 budget, the federal government announced that over the next twoyears, it will be investing an additional $168.2 million in cultural infrastructure through the Canada Cultural Spaces Fund. As of May 1, 2016, Public Art and Feasibility Studies are now eligible for support under the Fund. 21 1 - 49 P URPOSE The Canada Cultural Spaces Fund (CCSF) supports the improvement of physical conditions for artistic creativity and innovation. The fund supports the improvement, renovation and construction of arts and heritage facilities, as well as the acquisition of specialized equipment. By supporting improvements to our country’s cultural spaces, theCCSFincreases access for Canadians to performing arts, visual arts, media arts, museum collections and heritage displays. E LIGIBLE P ROJECTS Eligible projects are construction and/or renovation projects, and specialized equipment purchases related to cultural infrastructure projects intended for professional arts and/or heritage activities. To be eligible, organizations who apply for a construction and/or renovation project must demonstrate that they own the building or they have a long term lease (minimum of 10 years). W HO CAN APPLY Not-for-profit arts and heritage organizations, incorporated under theCanada Not-for-Profit Corporations Act, Part II of theCanada Corporations Actor under corresponding provincial or territorial legislation; Provincial/territorial governments, municipal or regional governments and their agencies; and Aboriginal people’s institutions or organizations. A MOUNT AND TERM Amount Range: The program can finance up to 50% of eligible project (the average approved contribution is 37% of total project cost). Up to $15 million in funding per project. Applications are accepted at any time throughout the year. Duration:Multi-year F ED D EV:E CONOMIC D EVELOPMENT I NITIATIVE ThroughBudget 2013, the Government of Canada announced theRoadmap for Canada's Official Languages 2013-2018: Education, Immigration, Communities. Through the Roadmap, the Government of Canada is investing $1.1 billion across 15 federal departments and agencies with a focus on three pillars that will ensure the vitality of English and French in Canada through education, immigration, and communities. P URPOSE: TheEconomic Development Initiative(EDI) is the key economic development initiative under the Roadmap and continues to strengthen innovation, entrepreneurship, partnerships, and diversification of economic activities in official language minority communities (OLMCs).Eligible expenses include capital, non-capital, expertise and labour. 22 1 - 50 E LIGIBLE P ROJECTS Eligible activities are those that enhance the economic base, sustainability and competitiveness of Ontario's Francophone communities, including: Strategic Community Economic Planning Strategic and community planning; Community mobilization and networking; Labour market development; Feasibility studies; Business planning; Marketing studies; and Export market research W HO CAN APPLY Community economic development corporations; Not-for-profit organizations and sector associations; Private sector organizations; and Post-secondary institutions that offer full-time programs of study in French. A MOUNT AND TERM Amount Range: o Private Sector Recipients:Conditional on approval for EDIfunding, private sector recipients will be eligible fornon-repayablecontributions of up to$100,000 per recipient for no more than 50percent of total eligible and supported project costs. o Not-For-Profit Recipients:Conditional on approval for EDI funding,not-for- profitrecipients will be eligible fornon-repayablecontributions up to $1million for no more than 66 Applications are accepted at any time throughout the year Duration: Year 23 1 - 51 6.0C ONCLUSIONS Does Kitchener need a Creative Hub? Does the city have the conditions to support a Creative Hub? Kitchener has the factors required to support a Creative Huband stands to benefit greatly from the development of the creative industries. Not only does a thriving and authentic cultural scene attract and retain the people needed to fuel the knowledge economy, it presents opportunities for strengthening and diversifying the local economy. The Creative Hubshould build on current assets and successes: complimenting and strengthening what already exists. There are accomplished creative industries entrepreneurs across the sector—by building on this momentum;the Creative Hubcan support the continued development of the sector. While arts, culture and the creative industries have been viewed as amenities for the community, in the same vein as recreation activities, the Creative Hubpresents an opportunity to view them as economic sectors in their own right. Like economic development interventions in other sectors, this approach strives to create a local environment conducive to the success of the sector. The research indicates that creative practitioners need several things to support their success in Kitchener: Entrepreneurship & professional development opportunities Administrative space(s) (entrepreneurial services i.e. agents, digital marketing, digital monetization, intellectual property rights, grants, etc.) Sharedresources/tools workshop Flexible rental for rehearsal, event or performance space Specialized studio spaces (visual arts, sound/ video recording, multi-media) Formal performance space Soundstage The Creative Hubis an opportunity to meet these needs and realize the transformative effects ofthe creative industries our local economy and our community. 24 1 - 52 W ORKS C ITED Bontje, M., &Musterd, S. (2009). Creative industries, creative class and competitiveness: Expert opinions critically appraised. Geoforum, 40, 843–852. Bradshaw, T. K., & Blakely, E. J. (1999). What Are "Third Wave" State Economic Development Efforts? From Incentives to Industrial Policy. 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