Arts and Culture Adding Value to Michigan’s Economic Agenda Cultural Economic Development Initiative Overview Michigan Department of History, Arts and Libraries Office of Cultural Economic Development

THE VISION

“We are going to base our economy more and more on our intellectual property, on the creative side, the value-added side of what we can offer…The power of creativity in propelling our economy is a fundamental building block of our state’s transformation.” Governor Jennifer Granholm BusinessWeek online March 1, 2006

Why are we moving in a bold new direction? 1. We are aligning the use of creative resources with Governor Granholm’s plan to diversify and transform Michigan’s economy 2. We have been forced out of our comfort zones and business as usual approaches by challenging economic conditions

Why are we moving in a bold new direction? 3. Michigan’s economic recovery demands maximum use and leverage of all available resources and opportunities 4. Our state has a legacy of creativity, innovation and transformation upon which to build

Why are we moving in a bold new direction? 5. Arts and culture are underutilized economic assets 6. We need to be strategic and proactive in the use of cultural recourses

Why are we moving in a bold new direction? 7. We intend to motivate our sector to act strategically through the use of incentives 8. Our aim is to change the value perception of culture from a resource that is important to one that is critical

HAL and its many partners are successfully implementing a new Cultural Economic Development Strategy to: reposition arts and culture in Michigan as highly-valued assets that spur economic growth and build community prosperity strengthen the state’s cultural infrastructure

HAL and its many partners are successfully implementing a new Cultural Economic Development Strategy to: assist the state’s cultural sector in achieving its economic potential promote creative synergy among the state’s cultural, civic, education, business and technology sectors

HAL and its many partners are successfully implementing a new Cultural Economic Development Strategy to: engage people across race, geography and status to reduce barriers to successful cultural economic development and improved quality of life foster sustainable economic and community development

THE STRATEGY

What are Michigan’s strategic objectives for cultural economic development?  Developing Research-Based Practice, Management and Communication  Supporting Cultural Magnets  Growing Entrepreneurship and Jobs

What are Michigan’s strategic objectives for cultural economic development?  Fostering Community Cultural Economic Development  Build Human Capital  Growing Partnerships and Collaborations

Recognition of the critical role of culture and economic development is rapidly growing...

“We are following the lead of the Department of History, Arts and Libraries and incorporating the use of cultural resources in the city’s plan to grow the local economy.” Bob Trezise, Manager Economic Development Corporation City of Lansing

“Libraries contribute to economic and workforce development.” Gretchen Couraud, Executive Director Michigan Library Association Legislative Day, May 9, 2006

A LARGER PERSPECTIVE

Economic Impact of America’s Nonprofit Arts Industry “America’s nonprofit arts industry generates $134 billion in economic activity every year--$53.2 billion in spending by arts organizations and an additional $80.8 billion in event-related spending by arts audiences. This economic activity has a significant national impact.” Source: Americans for the Arts “Arts & Economic Prosperity: The Economic Impact of Nonprofit Arts Organizations and Their Audiences” Study (2002)…

Economic Impact of America’s Nonprofit Arts Industry Total Impact of the Nonprofit Arts Industry (Includes organization and audience expenditures) Total Expenditures $134.0 billion Full-Time Equivalent Jobs 4.85 million Resident Household Income $89.4 billion Local Government Revenue $6.6 billion State Government Revenue $7.3 billion Federal Income Tax Revenue $10.5 billion Source: Americans for the Arts “Arts & Economic Prosperity: The Economic Impact of Nonprofit Arts Organizations and Their Audiences” Study (2002)…

Economic Impact of Michigan’s Arts & Culture Industry According to a study by the Center for Arts and Public Policy - College of Fine, Performing and Communication Arts at Wayne State University… The Michigan arts and culture industry generated about $42 billion in gross revenue

What are others doing in cultural economic development? Including arts and culture in the state economic development planning Launching state-sponsored artist/art marketing and promotion campaigns Many states have recently adopted cultural economic development agendas:

What are others doing in cultural economic development? Legislating development of cultural districts and facilities funds Providing incentives to strengthen the creative economy Crafting statewide cultural economic development strategies

National Leaders in Cultural Economic Development  Florida - Culture Builds Florida’s Future  Iowa – Imagine Iowa 2010: Great Places, Buy Iowa  Louisiana – Louisiana: Where Culture Means Business, Louisiana Rebirth: Restoring the Soul of America  Maine – Maine’s Creative Economy  Maryland – Arts and Entertainment Districts

National Leaders in Cultural Economic Development  Massachusetts – Cultural Facilities Fund  Michigan – Cool Cities, Cultural Economic Development Strategy  Montana – Clusters of Creativity, Economic Impact of Artists  New York – Cultural Development Area Bill  New England – New England Cultural Database  Rhode Island – Arts Districts

National Leaders in Cultural Economic Development  Vermont – Advancing Vermont’s Creative Economy, Vermont Council on Rural Development  Washington – Creative Vitality Index (CVI)  Wisconsin – Grow Wisconsin

Arts Wisconsin Grow Wisconsin Creatively 2006 “From New England to New Zealand, public and private investment in culture and innovation is being acknowledged as essential to education, business incubation, attraction and retention plans, tourism opportunities, and community engagement… Wisconsin must intentionally, strategically and collaboratively act to attract creative people to innovate products, services, and even business practices, or its attempts to benefit from the creative economy resources will remain unconnected, unmined, unpromoted. Other states and countries will race past us, and Wisconsin and its economy will not benefit from the creative, talented individuals being trained at our colleges, universities, and technical schools.”

Arts Council of England 2006 “At a time of intense international competitiveness, arts and creativity will continue to play a significant part in injecting innovation and enterprise into the economy... The place of arts in creating living, vibrant communities is now widely understood. We want to build on the increased recognition within government departments to make these benefits more widely available.”

“Northern Ireland’s creative industries have an important role in helping the UK become the world’s creative hub. Creative industries in the UK are growing twice as fast as any other - at the rate of 8% per year. Latest estimates suggest that Northern Ireland has around 2,500 creative enterprises employing 33,000 people or 4.7% of the workforce and generating over £900m per year or around 5% of the economy. As such the sector has a vital contribution to make and should not be viewed as being on the fringe, but as a central part of our economy. Creativity is all about new ideas, new products and services, new business sectors, new business models and new types of business support.” Creativity Minister, David Hanson, MP Department of Culture, Arts and Leisure United Kingdom (UK) February 5, 2006

THE BUILDING BLOCKS

State Representative Fran Amos announced legislation to create cultural redevelopment districts, innovative new tools to promote arts and culture for the purposes of economic development. Amos chair of the House Appropriations, History, Arts and Libraries Subcommittee said that redeveloping Michigan’s older communities is critical to Michigan’s success. “This bill will provide the support needed to use arts and culture to create economic vitality by focusing on arts and culture as the center piece of downtown redevelopment and vibrant public spaces, we hope to promote tourism, crafts and cultural attractions, as well as attract knowledge based workers and industries through the appeal of our Michigan cities.” State Representative Fran Amos Chair House Appropriations, History, Arts and Libraires Subcommittee House Republican Communications Services June 6, 2006

“Place has replaced the corporation as the fundamental business building block: people now choose the place they want to live and then seek employment.” The Creative Economy, 2001 Doug Henton and Kim Walsh

“Culture is no longer a frill. It is fuel.” Anita Walker, Director, Department of Cultural Affairs State of Iowa Op Ed printed in the Des Moines Register, September, 2001

THE ACTION STEPS

HAL Initiatives  offer opportunities to enhance the cultural sector’s economic competitiveness and sustainability  provide incentives to achieve state of Michigan priorities

HAL Initiatives  marshal and leverage additional state resources for cultural sector access and growth  compliment and accelerate ongoing community cultural economic development initiatives

The following departmental initiatives provide the priority ‘action steps’ to accomplish our strategic cultural economic development goal and objectives for Fiscal Year 2007:

DEPARTMENTAL INITIATIVES CEDOT Cultural Economic Development Online Tool CEDOT is a web-based tool to: 1) estimate the economic impacts of cultural facilities and programs, 2) collect information on HAL markets and suppliers (e.g., artists, craftspersons, entertainment venues, etc.), 3) scientifically conducted case studies, 4) design and deliver training to develop the next generation of cultural leaders and entrepreneurs, and 5) survey of households throughout the United States with emphasis on residents of the Great Lakes and Michigan.

DEPARTMENTAL INITIATIVES TRAVEL MARKETING HAL and Travel Michigan will partner to provide increased marketing visibility to the state’s cultural magnets, those places and institutions in Michigan with the power to attract and hold people and businesses, define local or regional cultural heritage or draw tourists. The HAL/Travel Michigan partnership program aims to leverage state and local resources to promote Michigan’ cultural assests. In an effort to accommodate the entire tourism industry, Travel Michigan developed three partnership programs: Out-of-State Marketing Partnership, Pay-Per- Click (increasing web traffic to partners’ web sites), and In-State Marketing Partnership. The partnership will include value added benefits and public relations support.

DEPARTMENTAL INITIATIVES MSHDA PARTNERSHIP The Department has an opportunity to help grow MCACA’s existing Capital Improvements Program through infusion of additional matching resources from the Michigan State Housing Development Authority (MSHDA). MSHDA has expressed interests in working with the Department and MCACA in developing a joint program of support for development of live/work spaces for artists, designers and other creative entrepreneurs and communities that emphasize arts and culture amenities as attractors. Such spaces could include artist incubators, design studios, artist studios, production facilities, shops, galleries and public gateways and cultural magnets.

DEPARTMENTAL INITIATIVES MDOT ENHANCEMENT PROGRAM The Enhancement Program’s mission is to improve the quality of life for Michigan citizens by providing funding and other assistance, creating and responding to opportunities to enhance Michigan’s transportation system. The program seeks to create partnerships with federal, state and local government agencies, private for profit and non-profit organizations to promote and facilitate: community preservation, sustainability and livability, economic development, protection of the human and natural environment, and statewide and local tourism.

DEPARTMENTAL INITIATIVES COMMUNITY CED READINESS Community CED Readiness Initiative will be implemented to provide communities to help guide them through the requisite steps toward engaging in productive cultural economic development and creation of initiatives that value and support culture and its economic potential. Communities fully participating in this process will gain increased expertise and access to state resources and marketing. Components include 1) Technical Assistance Services, 2) Peer Community Mentoring, and 3) CED Planning and Implementation funding.

DEPARTMENTAL INITIATIVES CraftWORKS! Michigan Facilitate growth and development of the state’s craft industry and outstanding artisans toward revitalizing local economies by stimulating development of sustainable heritage tourism destinations and trails, job creation, creative enterprises and investment opportunities. CraftWORKS! Represents a starting point to begin a strategic process of growing entrepreneurship and jobs; building on an acknowledged sector asset and untapped economic development resource that is perfectly suited for growth at the local level in changing and challenging economic conditions in urban and rural environments statewide.

Why should we invest in cultural economic development? Enhance the Quality of Life Build on Investment Leverage New Funding Resources Develop New Audiences and Support Access New Markets Create New Jobs and Creative Enterprises Revitalize Communities Help position Michigan as a Leader in the Global Market Place

“I believe culture, broadly defined, is an untapped economic resource. When appropriately engaged, at local, regional and statewide levels, our state’s cultural resources can leverage significant new tax revenue, provide good paying jobs, and create sustainable enterprise.” Dr. William M. Anderson Director Department of History, Arts and Libraries December 8, 2005

“We want to target arts and cultural grants toward economic development.” Governor Jennifer Granholm August 28, 2006