Congruent Policy Trends: What You Need to Know

At this moment, three trends in policy-making have a strong impact on artist space development: creative economy, historic preservation, and green development initiatives. Moreover, the creative economy initiatives tend to include policies for arts and culture districts, which directly affect artist space development.

Creative Economy Initiatives

The creative economy is an evolving concept based upon a growing body of research that claims cultural assets are a key part in generating socio-economic growth and development. The concept has developed over the past ten years, its origins based in development strategies arising from cultural and technological shifts, linking the concept of the information economy and Sharon Zukin’s theories about the intersection of artist production, real estate development, and capital flows. Interestingly, many of the policies and programs that are currently at the center of the creative economy arsenal of tools were conceived and implemented before the concept of the creative economy was solidified. For example, some of these policies and programs are in the realms of historic preservation, enterprise development, and cultural tourism. The UNCTAD definition of the creative economy is:¹

• It can foster income-generation, job creation and export earnings while promoting social inclusion, cultural diversity and human development.
• It embraces economic, cultural and social aspects interacting with technology, intellectual property and tourism objectives.
• It is a set of knowledge-based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy.
• It is a feasible development option calling for innovative, multidisciplinary policy responses and interministerial action.
• At the heart of the creative economy are the creative industries.

Mobilized by these claims, several states and local governments are currently undertaking creative economy initiatives with the goal to boost their economies by investing in cultural industries and networks. Many of the programs and policies were in place before the creative economy framework was introduced, including Main Street programs, enterprise/empowerment zones, historic preservation zones, stadium and exposition districts, and zoo/aquarium/science/garden districts, arts and culture districts, and artist space development.

Creative Economy Sources

Americans for the Arts, Arts & Economic Prosperity III: The Economic Impact of Nonprofit Arts and Culture Organizations and Their Audiences (Washington, DC: Americans for the Arts, 2007).

Americans for the Arts, Research Services: Creative Industries.

DeNatale, Douglas, Gregory H. Wassall, and the New England Foundation for the Arts, The Creative Economy: A New Definition (Boston, MA: New England Foundation for the Arts, 2007).

DeNatale, Douglas, Gregory H. Wassall, and New England Foundation for the Arts, New England's Creative Economy: The Non-Profit Sector, 2002 (Boston, MA: New England Foundation for the Arts, 2007).

Johnson, Amanda and Ann Markunsen. Artists' Centers: Evolution and Impact on Careers, Neighborhoods and Economies (Minneapolis, MN: University of Minnesota, 2006).

National Assembly of State Arts Agencies, Creative Economy Resource Center.

United Nations. The Creative Economy Report 2008: The challenge of assessing the creative economy towards informed policy-making (New York, NY: United Nations, 2008).

Arts and Culture Districts

Arts and culture district designation is one of many tools policymakers have for promoting creative economies. Cultural district development is a policy model whereby a state or local authority actively encourages the establishment of cultural districts by certifying them, promoting their benefits and providing tax incentives for their development. From the public sector’s perspective, the goals of cultural district development may include:²

• Attracting artists and cultural enterprises to a local community
• Encouraging business and job development
• Addressing both urban and rural needs
• Establishing tourism destinations
• Preserving and reusing historic buildings
• Enhancing property values
• Fostering cultural development
• Developing cultural heritage tourism
• Increasing the productivity of the cultural industries

Towards this end, government has a variety of policy tools at its disposal, including (but not limited to) tax incentives, low interest loans, ephemera programming, marketing, debt forgiveness, gap financing for development, streamlined rehabilitation codes, public works assistance, public art purchases, zoning change, space inventory, city owned galleries, artist housing subsidies, and streetscape improvements. One criticism of the current implementation of arts and culture districts is that the policymakers and developers tend to focus more on infrastructure that supports cultural consumption and presentation, and less on production and worker retention.³ This can translate into a lack of affordable artist live/work and work-only space.

Arts and Culture District Sources

Schupbach, Jason. Artists Downtown: Capitalizing on Arts Districts in New England (Cambridge, MA: Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2003).

Historic Preservation Initiatives

The claims in favor of historic preservation have traditionally been that they give communities a sense of identity, stability, and orientation. Today, as the “green” movement gains traction, historic preservation has been positioned as a means for environmental, economic, and social sustainability; on their own preservation policies attract private investment to historic city and town cores, enhance property values, supplement State and local revenues, and help create jobs and affordable housing.

National Trust for Historic Preservation (the Trust) and the Advisory Council on Historic Preservation (ACHP), and the National Park Service (NPS) are the mainstay of federal historic preservation dialog, and policy development and implementation. The Trust is a private, nonprofit membership organization that provides leadership, education, advocacy, and resources to the American preservation movement. ACHP is an independent federal agency that acts as the primary policy advisor to the federal government, promoting the preservation, enhancement, and productive use of historic resources.

Federal historic preservation policy is grounded within a combination of funding and tax incentives. NPS administers the Federal Historic Preservation Tax Incentives program in partnership with the Internal Revenue Service and State Historic Preservation Offices; its primary incentive is the Historic Preservation Tax Credit (HPTC). Numerous other grants are available through the National Preservation Endowment, a financial assistant program administered by the Trust.

Regulations protecting historic properties tend to be at the local and state level. These rules generally take effect only once the property has been placed on the National Register of Historic Places; however, private property owners’ rights are valued highly. Within this framework, the National Register listing acts as a gateway to federal funding sources.

A best practice project example is the redevelopment of Hibernian Hall, a 24,000 square-foot arts and cultural facility in Boston, MA. The redevelopment is significant because it was managed by the local CDC, the Madison Park Development Corporation (MPDC) and was part of their strategy to revitalize an important area within their community. The former industrial and commercial facility today includes 6 live-only artist spaces, a large multi-function gallery, office space, commercial space, and a café. Project development was financed through a variety of financial sources, including private equity, city and federal loans, and foundation grants, as well as application of the Historic Preservation (HPTC) and New Markets (NMTC) tax credits. The Massachusetts Housing Investment Corporation, which links New Market Tax Credits with Historic Preservation Credits and permanent debt through one source, simplified the financing process for MPDC.

Historic Preservation Sources

Advisory Council on Historic Preservation.

Historic Preservation as Sustainable Development, (Washington, DC: National Trust for Historic Preservation, 2007).

National Park Service, Historic Preservation Tax Incentives.

Green Development Initiatives

Numerous states and local governments have creative incentive and information policies that promote the incorporation of green building principles into project planning, design, and construction. City initiatives to promote smart growth, urbanism, and green building into neighborhood development planning include a variety of incentives, from brownfield initiatives, to tax credits, and grant programs. Some cities, like Boston and Chicago, have made amendments to their zoning codes, requiring the use of LEED in private building permitting.

Developers and policy-makers alike take most of their cues from the United States Green Building Council (USGBC), a non-profit and consensus-based organization committed to expanding sustainable building practices. The USGBC created the Leadership in Energy and Environmental Design Green Building Rating System (LEED) to promote the development of high-performance, sustainable buildings and best practices. [This could be elaborated if you want to know more about LEED.] USGBC promotes the Triple Bottom Line for real estate products (environmental, social, and economic prosperity); however, their reach goes much further, promoting the idea that shared commitments benefit the greater common good.

In terms of artist space development, a best practice project example is the Artists For Humanity Epicenter in Boston, MA. Artists For Humanity's mission is to bridge economic, racial and social divisions by providing at-risk youth with the keys to self-sufficiency through paid employment in the arts. The Artists For Humanity new EpiCenter is a 23,500 square-foot sustainable facility constructed to house Artists For Humanity's offices, programs, studios and gallery. The project includes a 50 Kilowatt solar ray on the roof, is made from recycled material, and uses natural ventilation, among other features that earned its "Gold LEED Certification." A large gallery designed for caterers and event planners will be a venue to support AFH's art leasing and art sales and showcase the artists' work.

Green Development Sources

American Planning Association, Green Buildings Matrix (Washington, DC: American Planning Association, 2005).

Building Green.

Chicago Artist Resource, Square Feet Chicago: 24: Green Practice.

GreenHomeNYC. 

Northeast Sustainable Energy Association.

Rocky Mountain Institute.

U.S. Department of Energy: Office of Energy Efficiency and Renewable Energy.

U.S. Green Building Council.

¹ United Nations. The Creative Economy Report 2008: The challenge of assessing the creative economy towards informed policy-making. (New York, NY: United Nations, 2008).

³  Schupbach, Jason. Artists Downtown: Capitalizing on Arts Districts in New Englan (Cambridge, MA: Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2003).