In the post-Covid world, arts are playing a bigger role in investment decisions and employee retention. Photo courtesy of Howard Hughes.
From the $240 million transformation of CFG Bank Arena to the $68 million Performing Arts Center in Columbia to construction of maker spaces, cultural centers, artists flats and enhanced museums, private, public and nonprofit organizations are seeing value in investing in arts and culture.
Economic development and real estate professionals involved in the ventures say they are not mere indulgences. They are investments in a sector that is key to creating vibrant communities, growing the economy and helping a wide range of commercial ventures thrive.
“When it comes to economic development, I wish more people would understand that arts and culture is not just a garnish, it’s the entrée,” said Leon Pinkett III, Executive Director and CEO of the nonprofit Baltimore Arts Realty Corporation (BARCO).
“When it comes to attracting investment, especially post-Covid, arts and culture and the overall quality of life are major factors in investment decisions,” said Mark Anthony Thomas, President and CEO of the Greater Baltimore Committee (GBC).
That desire for creative, vibrant, livable environments works in Greater Baltimore’s favor. Research conducted for GBC’s 10-year economic development plan concluded that Central Maryland has a wealth of arts and culture resources and prompted GBC to flag “creativity and culture” as one of three “opportunity growth sectors.”
“When you look at the volume of cultural organizations and the talent pipeline in the creative industries, sports, entertainment and convention, we are among the top markets in America,” Thomas said. “When you look at the density of creative resources, we are no different than Nashville, Atlanta or Miami.”
GBC is currently assembling regional brand assets about the creative/cultural resources and activity in Central Maryland in order to show event promoters and potential investors the size and nature of the market in this region.
“Awareness of those resources is critical,” Thomas said, and could influence decisions about locating companies, building residences or opening retail establishments here.
The creative economy
BARCO has already witnessed that power of the creative economy.
In less than a decade, Open Works has triggered the creation of more than 300 business startups. Photo courtesy of BARCO.
BARCO’s construction of Open Works, a 34,000-square-foot maker space, “became part of a renaissance that is happening in the Johnson Square community in East Baltimore,” Pinkett said. “We were one of the first investors in that area and became a catalyst for tens of millions of dollars of investment in the Johnston Square community,” including multiple residential and public space developments.
To date, Open Works supported more than 875 makers and artists, generating over $2.3 million in gross revenues for those artists (in a six-year period) and triggering the creation of 338 small, local businesses by furniture makers, metal workers, textile workers, graphic designers and others who mostly stayed in the community.
Pinkett describes the impact as the “triple bottom line” of a successful arts investment.
“Not only does the artist benefit by having a space where they can grow, but communities benefit by having spaces that are enlivened and are sensitive to culture,” he said. “Then there’s the economic benefits. Local businesses benefit because patrons visit restaurants and shops…and some artists and craftspeople rent spaces nearby for their own companies.”
Amy Bonitz, the former President/CEO of BARCO and now the Managing Director of Community Development at MCB Real Estate, said Open Works and many other cultural facilities in Greater Baltimore are examples of the power of thoughtful arts developments.
In Station North, Motor House exemplifies how to build a financial plan for a successful arts development. Photo courtesy of BARCO.
“I really believe in the power of buildings,” Bonitz said. “Giving people a place to come together, see the creative process and participate in programming is so powerful. It creates a stickiness where people want to remain part of that neighborhood, and they will build and support other developments in that neighborhood.”
The Open Works model proved so successful that BARCO is currently preparing to build a second makerspace on the west side of the city. A joint venture with Coppin State University, the facility will be located among residences and a food hall in the mixed-use Walbrook Mill development. It will also provide Coppin students and professors with opportunities to use Open Works’ equipment and facilities in their projects and courses.
Financial models that work
In the Pennsylvania Avenue corridor, MCB Real Estate is currently providing pro bono advisory services on the planned $18 million Sanaa Center. The 18,000-square-foot center will include a theater, café, dance studio, recording studios, artist studios and exhibition space. It is designed to anchor the Black Arts District, which stretches across 149 acres in Upton, Sandtown-Winchester, Penn North, Druid Heights and Pennsylvania Avenue.
Programming — such as Columbia’s annual book festival — is essential to the success of arts developments. Photo courtesy of Howard Hughes.
During the initial design stages, “I suggested to the Sanaa Center team that we bring in expertise around developing the business plan and identifying revenue streams for the center so that we could integrate the design team’s thinking and create a cohesive approach to how the center should be designed, built and operated,” Bonitz said.
Bonitz had learned the importance of tailoring architectural designs to a revenue plan when BARCO developed Motor House — a 20,000-square-foot cultural hub in the Station North Arts and Entertainment District.
Motor House, which is now celebrating its tenth anniversary, has succeeded because it was “designed to support a diversity of revenue streams,” Pinkett said. The first floor contains a black box theater, art gallery and café/event space. The second floor is filled with artist studios of various sizes and the third floor contains offices for arts-related organizations.
“Those rental units on the second and third floor serve as the primary revenue streams for the building so we can be a little more liberal in how we rent out the first floor and we can keep the price points accessible to artists and patrons,” Pinkett said.
The art of programming
A successful arts or culture development, however, requires commitment long beyond the end of construction.
“The building is just one aspect of it. Then you have to think about programming and continuing to activate the space,” Pinkett said.
Careful planning, partnerships and assessments have dramatically increased attendance at Columbia arts and culture events. Photo courtesy of Howard Hughes.
In downtown Columbia’s Merriweather District, Howard Hughes has been developing, assessing and honing its arts and culture programming for years. Through the annual book festival, tree lighting, Earth Day celebrations, Kid-izen events, concerts, movie nights (that sometime include a dance lesson) and more, Howard Hughes has tested numerous programming ideas to find the events that resonate with residents, visitors, area workers and retailers. As a result, event attendance has doubled year-over-year.
“We have a responsibility not just for the buildings themselves, but the spaces in between them,” said Kristi Smith, President of Howard Hughes’ Maryland Region. “These public spaces are never an afterthought. They’re intentionally designed as places where culture is experienced and community is fostered.”
The company tracks attendance at events and solicits feedback from area retailers on how events impact their business.
“The community will tell you what they love,” said Casey Jones, Vice President of Marketing. “We also look to see what’s missing in our programming and what makes sense to fill that gap. It’s about being thoughtful and strategic to benefit the community in general.”
That ongoing planning has led Howard Hughes to partner with local arts organizations, upgrade its outdoor furniture, increase and rearrange the region’s public art, and expand its programming (including pop-up events and food trucks) to areas near office buildings in order to better engage local workers, Smith said.
Columbia’s commitment to arts and culture has resulted in the placement of murals and sculptures around the community. Photo courtesy of Howard Hughes.
The vibrant environment produced by arts facilities and public programming helps “sell Howard County,” said Jennifer Jones, CEO of the Howard County Economic Development Authority (HCEDA). “I sell Howard County partly on arts and culture because businesses move and residents move based on quality of life. A vibrant arts and culture scene definitely improves quality of life.”
The owners of Busboys and Poets, Jennifer Jones said, sited the public art and numerous cultural events among the reasons they decided to open a new location in Columbia.
That environment is also being recognized by some employers as a benefit of leasing office space in downtown Columbia.
“I’ve had law firms and engineering firms and other downtown businesses come to me and ask for lists of bands that will be playing at the lakefront and artist shows that are happening because it helps them with worker retention,” Jones said. “They promote the events to their workers and workers appreciate having entertainment and family-friendly events right outside their office.”