The Role of Colleges and Universities in Neighborhood Real Estate_2

Cleveland State University EngagedScholarship@CSU Urban Publications Maxine Goodman Levin College of Urban Affairs 10-1-2003 The Role of Colleges and Universities in Neighborhood Real Estate Development: Based on the Experience of Five Institutions Jill Norton Ziona Austrian Cleveland State University, z.austrian@csuohio.edu Follow this and additional works at: https://engagedscholarship.csuohio.edu/urban_facpub Part of the Growth and Development Commons, Urban Studies Commons, and the Urban Studies and Planning Commons How does access to this work benefit you? Let us know! Repository Citation Norton, Jill and Austrian, Ziona, "The Role of Colleges and Universities in Neighborhood Real Estate Development: Based on the Experience of Five Institutions" (2003) Urban Publications 261 https://engagedscholarship.csuohio.edu/urban_facpub/261 This Report is brought to you for free and open access by the Maxine Goodman Levin College of Urban Affairs at EngagedScholarship@CSU It has been accepted for inclusion in Urban Publications by an authorized administrator of EngagedScholarship@CSU For more information, please contact library.es@csuohio.edu THE ROLE OF COLLEGES AND UNIVERSITIES IN NEIGHBORHOOD REAL ESTATE DEVELOPMENT: BASED ON THE EXPERIENCE OF FIVE INSTITUTIONS Prepared for: FANNIE MAE FOUNDATION Prepared by: CENTER FOR ECONOMIC DEVELOPMENT Jill Norton Ziona Austrian, Ph.D October 2003 2121 Euclid Avenue UR 364 Cleveland, Ohio 44115 http://urban.csuohio.edu The Role of Colleges and Universities in Real Estate Development TABLE OF CONTENTS LIST OF FIGURES III LIST OF TABLES III OVERVIEW Introduction .1 Approaches to Neighborhood Real Estate Development Approaches to Partnership Managing Community Relations 16 Assessing Impact on Neighborhoods 20 Lessons Learned 26 DUKE UNIVERSITY 34 Introduction 34 Institutional Profile 35 Campus Environment 35 Real Estate Development Efforts 37 Neighborhood Impact 48 Lessons Learned 49 MOREHOUSE COLLEGE .51 Introduction 51 Institutional Profile 52 Campus Environment 52 Neighborhood Impact 61 Lessons Learned 64 THE UNIVERSITY OF NOTRE DAME .66 Introduction 66 Institutional Profile 67 Campus Environment 67 Real Estate Development Efforts 69 Neighborhood Impact 76 Lessons Learned 78 OLD DOMINION UNIVERSITY 80 Introduction 80 Institutional Profile 81 Campus Environment 82 Real Estate Development Efforts 83 Neighborhood Impact 92 Lessons Learned 95 Maxine Goodman Levin College of Urban Affairs, Cleveland State University i The Role of Colleges and Universities in Real Estate Development UNION COLLEGE 97 Introduction 97 Institutional Profile 98 Campus Environment 98 Real Estate Development Efforts .100 Neighborhood Impact 107 Lessons Learned .109 REFERENCES 111 APPENDIX A: A-1 INTERVIEW LISTS A-1 Duke University A-2 Morehouse College A-2 University of Notre Dame A-3 Old Dominion University A-4 Union College A-4 APPENDIX B: B-1 DEMOGRAPHIC CHARACTERISTICS OF COLLEGE AND UNIVERSITY NEIGHBORHOODS B-1 Duke University B-2 Morehouse College B-3 University of Notre Dame B-4 Old Dominion University B-5 Union College B-7 Maxine Goodman Levin College of Urban Affairs, Cleveland State University ii The Role of Colleges and Universities in Real Estate Development LIST OF FIGURES FIGURE PARTNERSHIP APPROACHES FOR NEIGHBORHOOD REAL ESTATE DEVELOPMENT 16 FIGURE DUKE UNIVERSITY CAMPUS AND SURROUNDING NEIGHBORHOODS 36 FIGURE MOREHOUSE COLLEGE AND NEIGHBORHOOD PLANNING UNIT T 53 FIGURE UNIVERSITY OF NOTRE DAME CAMPUS .68 FIGURE OLD DOMINION UNIVERSITY CAMPUS 81 FIGURE UNIVERSITY VILLAGE PLAN 85 FIGURE UNION COLLEGE CAMPUS 99 LIST OF TABLES TABLE B1 DUKE-DURHAM NEIGHBORHOOD PARTNERSHIP COMMUNITIES: SELECT POPULATION AND HOUSING CHARACTERISTICS TABLE B2 WEST END NEIGHBORHOODS (NPU-T): SELECT POPULATION AND HOUSING CHARACTERISTICS .3 TABLE B3 NORTHEAST NEIGHBORHOOD: SELECT POPULATION AND HOUSING CHARACTERISTICS TABLE B4 LARCHMONT/EDGEWATER NEIGHBORHOOD: SELECT POPULATION AND HOUSING CHARACTERISTICS .5 TABLE B5 HIGHLAND PARK NEIGHBORHOOD: SELECT POPULATION AND HOUSING CHARACTERISTICS .5 TABLE B6 LAMBERTS POINT NEIGHBORHOOD: SELECT POPULATION AND HOUSING CHARACTERISTICS .6 TABLE B7 COLLEGE PARK NEIGHBORHOOD: SELECT POPULATION AND HOUSING CHARACTERISTICS .7 Maxine Goodman Levin College of Urban Affairs, Cleveland State University iii The Role of Colleges and Universities in Real Estate Development Maxine Goodman Levin College of Urban Affairs, Cleveland State University iv The Role of Colleges and Universities in Real Estate Development: Overview OVERVIEW INTRODUCTION This report discusses the role of colleges and universities in the economic development of neighborhoods and cities through direct investments in real estate It explores various approaches to neighborhood economic development and looks at how educational institutions can partner with public agencies and neighborhood-based organizations to meet the objectives of both the institution and the community in which it resides Institutions of higher education have long been recognized for their efforts to promote community development Many faculty members and students have welcomed the opportunity to assist residents and neighborhood organizations in efforts to alleviate poverty in urban communities These efforts often involve building the capacity of residents to influence decision-making processes or take advantage of available resources During the past two decades, colleges and universities have become more directly involved in neighborhood development by taking on the role of developer Despite the increased role of the university as a real estate developer, there is a limited body of research that explores the various approaches adopted by colleges and universities with respect to neighborhood real estate development and little investigation into the types of partnership arrangements that are involved This report is based upon research that explores the role of the university as a developer A case study approach was used to examine how universities can affect conditions in neighborhoods surrounding their campuses by directly engaging in residential and commercial development The report synthesizes knowledge gained from case studies of five institutions: Duke University, Morehouse College, Old Dominion University, Union College, and the University of Notre Dame.1 Duke University is a private institution located in Durham, North Carolina It enrolls approximately 12,000 students, nearly half of whom are graduate students Morehouse College is a private, all male, historically black college in Atlanta, Georgia Approximately 2,700 undergraduate students are enrolled at the college Old Dominion University is a public university located in Norfolk, Virginia Full-time student enrollment is approximately 10,500 and about two-thirds are undergraduates Union Detailed reports are available for each institution See the reference list for full citation Maxine Goodman Levin College of Urban Affairs, Cleveland State University The Role of Colleges and Universities in Real Estate Development: Overview College is a private liberal arts college in Schenectady, New York It is a small college with approximately 2,000 undergraduate and 100 graduate students The University of Notre Dame is a private religious institution located adjacent to South Bend, Indiana Student enrollment exceeds 11,000, with the vast majority being undergraduates These colleges and universities were selected based upon the fact that they have recently undertaken large-scale mixed-use development projects or invest in neighborhood real estate development efforts on a continual basis While there are other colleges and universities that meet this criterion, those included in the study provide examples of various approaches to neighborhood development and illustrate different models of partnership that can be employed to achieve the desired outcomes The purpose of this research is to draw upon the experiences of the five institutions in order to draw lessons about how colleges and universities can best approach neighborhood real estate development in order to address their own needs as well as the needs of the communities in which they reside Despite the tension that often accompanies university-driven real estate development, it is possible to find the point where the goals of the institution intersect with the goals of residents and organizations that work for the betterment of the neighborhood Information for each case study was gathered from site visits and in-person interviews2 with individuals associated with the university and community groups as well as a number of secondary sources including newspaper articles, Internet sources, and planning documents This report first discusses the various approaches to neighborhood development that were employed by the five institutions included in the study and then explores the types of partnership arrangements they entered into in order to meet their objectives The report also addresses the issues involved in managing community relations and assessing impact on neighborhoods It concludes with a discussion of lessons that can be learned from the experiences of the five institutions Interviews regarding Old Dominion University were conducted in February 2003; interviews regarding the University of Notre Dame were conducted in May 2003; interviews regarding Duke University and Union College were conducted in June 2003 ; and interviews regarding Morehouse College were conducted in September 2003 A list of persons interviewed is included in Appendix A Maxine Goodman Levin College of Urban Affairs, Cleveland State University The Role of Colleges and Universities in Real Estate Development: Overview APPROACHES TO NEIGHBORHOOD REAL ESTATE DEVELOPMENT The real estate development approaches employed by the five institutions included in this study can be classified as either revitalization or redevelopment The approach that has been adopted depends on the goals and motivation of the institution as well as the opportunities that exist within the neighborhood Revitalization strategies, as carried out by the institutions included in the study, involve efforts to improve or stabilize neighborhoods through renovation and new construction of homes and other facilities and programs to increase homeownership In three cases, institutions were also involved in creating community centers to provide services to neighborhood residents Redevelopment strategies, on the other hand, involve efforts to rebuild an existing site This often involves substantial relocation and land clearance and therefore tends to generate more controversy than a revitalization approach Whereas revitalization approaches to neighborhood development place greater emphasis on enhancing existing resources within the neighborhood, redevelopment calls for replacing what exists in order to develop new neighborhood resources NEIGHBORHOOD REVITALIZATION Duke University, Morehouse College, Union College, and the University of Notre Dame have each adopted an approach to neighborhood real estate development that emphasizes revitalization and stabilization, rather than large-scale redevelopment.3 Although the types of projects in which the four institutions have become involved differ substantially, all focus on strengthening the assets that exist within their neighborhoods Duke University Duke University’s real estate development activities are part of a larger effort to stabilize and revitalize the neighborhoods that surround its east campus The projects in which the university is involved are community-based: ideas originate with community leaders University resources are used to support plans rather than drive the agenda The manner in which Duke is involved varies considerably with each project, however, most of its efforts have been directed Morehouse College is also indirectly involved in a redevelopment project through an arrangement with the Atlanta Housing Authority Details are discussed on page Maxine Goodman Levin College of Urban Affairs, Cleveland State University The Role of Colleges and Universities in Real Estate Development: References Olszowy, L (2000, August 29) Notre Dame aims to revamp area The Observer [online] Accessed via: Ratliff, R (2002, December 17) Neighborhood ready for change: Old Dominion has begun the $260 million University Village project west of highland park The Virginian Pilot Reid, S.A (1999, August 31) Harris Homes no longer forgotten: With $35 million grant, Atlanta will team up with Spelman and Morehouse to transform Public Housing area Atlanta JournalConstitution, via Atlanta Housing Authority [online] Accessed via: September 30, 2003 Reid, S.A (1999, September 2) ‘College Town’ planned on Harris Homes site: A $35 million grant will help fund the project, expected to spark a wider revitalization Atlanta JournalConstitution, via Atlanta Housing Authority [online] Accessed via: September 30, 2003 Self-Help (2002) Annual Report Steinkamp, J (1997) Town/Gown Planning Partnerships Economic Development Commentary 20 (4), 32-38 Trinity Heights Homesites Accessed via: USI to expand student housing (Spring 1999) Union College Magazine [online] Accessed via: Union Schenectady Initiative [online] Accessed via: Union-Schenectady Initiative unveiled (1998, October 30) The Chronicle [online] Accessed via: Union sets $10M for USI; Plans, partners introduced (1999, April 16) The Chronicle [online] Accessed via: Union’s maverick leader sets sights on the streets (1999, April 11) Times Union Accessed via: http://www.union.edu/N/DS/s.php?s=2847 University of Notre Dame (Fall 2002) Campus Plan Executive Summary Walzer, P (1998, August 5) Owners of businesses near ODU worry about future The Virginian Pilot Walzer, P (2002, October 23) A dream realized as ODU unveils a regional showplace Supplement to The Virginian-Pilot Wechsler, A (2003, March 2) Colleges out to improve their neighborhoods Times Union, p CC22 Maxine Goodman Levin College of Urban Affairs, Cleveland State University 113 The Role of Colleges and Universities in Real Estate Development: References Maxine Goodman Levin College of Urban Affairs, Cleveland State University 114 THE ROLE OF COLLEGES AND UNIVERSITIES IN REAL ESTATE DEVELOPMENT: APPENDICES APPENDIX A: INTERVIEW LISTS Maxine Goodman Levin College of Urban Affairs, Cleveland State University A-1- THE ROLE OF COLLEGES AND UNIVERSITIES IN REAL ESTATE DEVELOPMENT: APPENDICES Duke University John Burness Senior Vice President for Public Affairs and Government Relations Duke University 211 Allen Building Durham, NC 27708 Interview: June 16, 2003 Michael D Calhoun General Counsel, Self-Help 301 West Main Street Durham, NC 27701 Interview: June 17, 2003 Anthony Scott Walltown Project Manager, Self-Help 301 West Main Street Durham, NC 27701 Interview: June 17, 2003 Tallman Trask III Executive Vice President Duke University 203 Allen Building Durham, NC 27708 Interview: June 17, 2003 Morehouse College Deacon Kenneth Ivory Executive Director St James Baptist Church 1305 West Club Boulevard Durham, NC 27705 Interview: June 17, 2003 Karl Barnes President, West End Neighborhood Development Inc Interview: September 23, 2003 Al Bartell Certified Mediator for the National Initiative for Planning and Development Interview: September 23, 2003 Sam Miglarese Assistant Director Office of Community Affairs Duke University 2024 West Main Street Durham, NC 27708 Interview: June 17, 2003 Michael Palmer Director, Office of Community Affairs Duke University 2024 West Main Street Durham, NC 27708 Interview: June 16-17, 2003 Jeffrey H Potter Director of Real Estate Administration Duke University 402 Oregon Street Durham, NC 27705 Interview: June 17, 2003 Andre Bertrand Vice President for Campus Operations Morehouse College 830 Westview Drive, SW Atlanta, GA 30314-3773 404-215-2717 abertran@morehouse.edu Interview: September 22, 2003 Jerry Tacuma Brown Chairperson, Neighborhood Planning Unit T Interview: September 23, 2003 Uella Calhoun President, West End Coalition Group Interview: September 23, 2003 Maxine Goodman Levin College of Urban Affairs, Cleveland State University A-2- THE ROLE OF COLLEGES AND UNIVERSITIES IN REAL ESTATE DEVELOPMENT: APPENDICES Christopher Pope Morehouse Revitalization Task Force Student Intern John O Childs Resident Association Interview: September 23, 2003 William (Bill) Cannon President, Booker T Washington Neighborhood Association Interview: September 23, 2003 Gwendolyn Cain Program Manager Emma & Joe Adams Public Service Institute Morehouse College 830 Westview Drive Atlanta, GA 30314-3773 404-681-2800 x 3362 gcain@morehouse.edu Interview: September 23, 2003 Diodato Gooding Morehouse Revitalization Task Force Student Intern University Community Development Corp Interview: September 23, 2003 Pete Haley Executive Director and CEO University Community Development Corp 440 Westview Drive, SW Atlanta, GA 30310 404-522-8980 x 1532 phayley-ucdc@aucenter.edu Interview: September 23, 2003 Kendrick Long Morehouse Revitalization Task Force Student Intern Westview Community Organization, Inc Interview: September 23, 2003 Mike Mumper West End Neighborhood Development Inc Interview: September 23, 2003 Dwan Packnett Principal Trinity Plus One Consultants, Inc 671 Southland Pass Stone Mountain, GA 39987-4951 770-879-0537 packnett@trinone.com Interview: September 22, 2003 Andre Wright Morehouse Revitalization Task Force Student Intern Revitalization Task Force Student Coordinator, Emma & Joe Adams Public Service Institute Interview: September 23, 2003 University of Notre Dame Jay Caponigro Director Robinson Community Learning Center University of Notre Dame 921 North Eddy Street South Bend, IN 46617 Interview: May 28, 2003 Jeff Gibney Executive Director South Bend Heritage Foundation 803 Lincoln Way West South Bend, IN 46616 Interview: May 28, 2003 Gary Gilot Director Department of Public Works City of South Bend 1316 City-County Building South Bend, IN 46601 J Roberto Gutierrez Vice President of Public Affairs and Communications University of Notre Dame 405 Main Building Notre Dame, IN 46556 Interview: May 29, 2003 Maxine Goodman Levin College of Urban Affairs, Cleveland State University A-3- THE ROLE OF COLLEGES AND UNIVERSITIES IN REAL ESTATE DEVELOPMENT: APPENDICES Jennifer Hughes Economic Development Planner Department of Community & Economic Development City of South Bend 1200 City-County Building South Bend, IN 46601 Old Dominion University Reverend Paige First Baptist Church Lamberts Point 1268 West 38th Street Norfolk, VA 23508 Interview: February 18, 2003 Karen P Priest President North Colley Business Association Norfolk, VA Interview: February 18, 2003 Julie R Adie Director, Real Estate Development Old Dominion University Real Estate Foundation 4401 Powhatan Avenue Norfolk, VA 23529 Interview: February 17, 2003 Ronald Tola Assistant Vice President for Facilities Old Dominion University 4401 Powhatan Avenue Norfolk, VA 23529 Interview: February 17, 2003 Stephen M Barney Manager, Development Operations Norfolk Redevelopment & Housing Authority 201 Granby Street Norfolk, VA 23510 Interview: February 18, 2003 Union College Robert L Fenning Vice President for Administration & Finance Old Dominion University 5115 Hampton Boulevard Norfolk, VA 23529 Interview: February 17, 2003 James Gehman Assistant Executive Director for Development Norfolk Redevelopment & Housing Authority 201 Granby Street Norfolk, VA 23510 Interview: February 18, 2003 James J Gildea Assistant Director Department of Planning and Community Development City of Norfolk 810 Union Street Norfolk, VA 23510 Interview: February 18, 2003 Diane T Blake Vice President for Finance & Administration Union College Feigenbaum Hall Schenectady, NY 12308 Interview: June 3, 2003 Judy Goberman President College Park Neighborhood Association Schenectady, NY 12305 Interview: June 3, 2003 Judy Manchester Senior Director of Financial Services Union College Feigenbaum Hall Schenectady, NY 12308 Interview: June 4, 2003 Paul A Matarazzo Capital Projects Administrator Union College Facilities Services Schenectady, NY 12308 Interview: June 4, 2003 Maxine Goodman Levin College of Urban Affairs, Cleveland State University A-4- THE ROLE OF COLLEGES AND UNIVERSITIES IN REAL ESTATE DEVELOPMENT: APPENDICES William Schwarz Director of Corporate & Government Relations Union College 807 Union Street Schenectady, NY 12308 Interview: June 3, 2003 Gretchel Hathaway Tyson Director of Community Outreach Union College Ralph B & Marjorie Kenney Community Center Schenectady, NY 12308 Interview: June 3, 2003 Maxine Goodman Levin College of Urban Affairs, Cleveland State University A-5- The Role of Colleges and Universities in Real Estate Development: Appendices Maxine Goodman Levin College of Urban Affairs, Cleveland State University A-6- The Role of Colleges and Universities in Real Estate Development: Appendices APPENDIX B: DEMOGRAPHIC CHARACTERISTICS OF COLLEGE AND UNIVERSITY NEIGHBORHOODS Maxine Goodman Levin College of Urban Affairs, Cleveland State University B-1 The Role of Colleges and Universities in Real Estate Development: Appendices Duke University Table B1 Duke-Durham Neighborhood Partnership Communities: Select Population and Housing Characteristics 1990 2000 Total Population 28,063 Race White Black or African American 15,937 11,123 57% 40% 14,265 12,563 70 822 111 n/a