Arts and Culture Adding Value to Michigan

1
Arts and CultureAdding Value to Michigans
Economic Agenda Cultural Economic Development
Initiative Overview

• Michigan Department of History, Arts and
  Libraries
• Office of Cultural Economic Development

2
THE VISION
3
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
offerThe power of creativity in propelling our
economy is a fundamental building block of our
states transformation.

• Governor Jennifer Granholm
• BusinessWeek online
• March 1, 2006

4
Why are we moving in a bold new direction?

1. We are aligning the use of creative resources
   with Governor Granholms plan to diversify and
   transform Michigans economy
2. We have been forced out of our comfort zones and
   business as usual approaches by challenging
   economic conditions

5
Why are we moving in a bold new direction?

1. Michigans economic recovery demands maximum use
   and leverage of all available resources and
   opportunities
2. Our state has a legacy of creativity, innovation
   and transformation upon which to build

6
Why are we moving in a bold new direction?

• Arts and culture are underutilized economic
  assets
• We need to be strategic and proactive in the use
  of cultural recourses

7
Why are we moving in a bold new direction?

1. We intend to motivate our sector to act
   strategically through the use of incentives
2. Our aim is to change the value perception of
   culture from a resource that is important to one
   that is critical

8
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 states cultural infrastructure

9
HAL and its many partners are successfully
implementing a new Cultural Economic
Development Strategy to

• assist the states cultural sector in achieving
  its economic potential
• promote creative synergy among the states
  cultural, civic, education, business and
  technology sectors

10
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

11
THE STRATEGY
12
What are Michigans strategic objectives for
cultural economic development?

• Developing Research-Based Practice, Management
  and Communication
• Supporting Cultural Magnets
• Growing Entrepreneurship and Jobs

13
What are Michigans strategic objectives for
cultural economic development?

• Fostering Community Cultural Economic Development
• Build Human Capital
• Growing Partnerships and Collaborations

14
Recognition of the critical role of culture and
economic development is rapidly growing . . .
15
We are following the lead of the Department of
History, Arts and Libraries and incorporating the
use of cultural resources in the citys plan to
grow the local economy.
Bob Trezise, Manager Economic Development
Corporation City of Lansing
16
Libraries contribute to economic and workforce
development.
Gretchen Couraud, Executive Director Michigan
Library Association Legislative Day, May 9, 2006
17
A LARGER PERSPECTIVE
18
Economic Impact of Americas Nonprofit Arts
Industry

• Americas 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)
19
Economic Impact of Americas 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)
20
Economic Impact of Michigans 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

21
What are others doing in cultural economic
development?

• Many states have recently adopted cultural
  economic development agendas

• Including arts and culture in the state economic
  development planning
• Launching state-sponsored artist/art marketing
  and promotion campaigns

22
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

23
National Leaders in Cultural Economic Development

• Florida - Culture Builds Floridas Future
• Iowa Imagine Iowa 2010 Great Places, Buy Iowa
• Louisiana Louisiana Where Culture Means
  Business, Louisiana Rebirth Restoring the Soul
  of America
• Maine Maines Creative Economy
• Maryland Arts and Entertainment Districts

24
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

25
National Leaders in Cultural Economic Development

• Vermont Advancing Vermonts Creative Economy,
  Vermont Council on Rural Development
• Washington Creative Vitality Index (CVI)
• Wisconsin Grow Wisconsin

26
Arts WisconsinGrow Wisconsin Creatively2006

• 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.

27
Arts Council of England2006

• 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.

28
Creativity Minister, David Hanson, MPDepartment
of Culture, Arts and LeisureUnited Kingdom
(UK)February 5, 2006

• Northern Irelands creative industries have an
  important role in helping the UK become the
  worlds 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.

29
THE BUILDING BLOCKS
30
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 Michigans
older communities is critical to Michigans
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
31
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
32
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
33
THE ACTION STEPS
34
HAL Initiatives

• offer opportunities to enhance the cultural
  sectors economic competitiveness and
  sustainability
• provide incentives to achieve state of Michigan
  priorities

35
HAL Initiatives

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

36
The following departmental initiatives provide
the priority action steps to accomplish our
strategic cultural economic development goal and
objectives for Fiscal Year 2007
37
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.
38
DEPARTMENTAL INITIATIVES TRAVEL MARKETING
HAL and Travel Michigan will partner to provide
increased marketing visibility to the states
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.
39
DEPARTMENTAL INITIATIVES MSHDA PARTNERSHIP
The Department has an opportunity to help grow
MCACAs 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.
40
DEPARTMENTAL INITIATIVES MDOT ENHANCEMENT PROGRAM
The Enhancement Programs mission is to improve
the quality of life for Michigan citizens by
providing funding and other assistance, creating
and responding to opportunities to enhance
Michigans 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.
41
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.
42
DEPARTMENTAL INITIATIVES CraftWORKS! Michigan
Facilitate growth and development of the states
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.
43
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

44
I believe culture, broadly defined, is an
untapped economic resource. When appropriately
engaged, at local, regional and statewide levels,
our states 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

45
We want to target arts and cultural grants
toward economic development.
Governor Jennifer Granholm August 28, 2006