Social Currency

Will a community revitalization strategy centered on the arts awaken us from the economic doldrums?  If the first 34 ArtPlace projects are representative of that approach, then the answer is yes. 

It’s hard not to feel worn down by the news lately.  The statistics are sobering – our unemployment rate is still above 9% and the poverty rate rose to 15.1% - the highest level in almost two decades.  The stock market is down since January of this year, and it’s not clear that President Obama’s jobs bill will make it through Congress successfully.  In our work with nonprofits all around the country, we are seeing this news unfold right in front of our eyes – with continued weakness across the sector.

But in New York City, an abandoned East Harlem school will soon offer 90 housing units for artists and 13,000 square feet of community space for arts-related non-profits – while simultaneously promoting the neighborhood as a major Latino cultural capital.  In Wilson, North Carolina, an Art Park is taking shape – featuring Vollis Simpson’s enormous whirligig sculptures—and spurring the development of an “industrial artisan district” that will both attract artists and provide skilled workforce training.  And in Detroit – where unemployment well exceeds the national average – the creation of the Sugar Hill Arts District is allowing for a rebirth of Detroit’s cultural identity.  A planned redevelopment of vacant property and an outdoor arts venue will create jobs and increase attraction to the downtown.  Likewise, adjacent to the Watts Towers in Los Angeles, three houses will be rehabilitated to showcase the work of visiting artists and attract new visitors. Projects like these – bubbling up around the nation –further validate the nonprofit (and now the cultural) sector’s role in boosting employment, revitalizing communities and realizing neighborhood change.  

And it’s not just grant money that will drive community and economic development.  As part of the ArtPlace initiative, NFF will also administer a $12 million loan pool available to organizations advancing place-based work.  What we have learned during NFF’s 30 year history as a lender and advisor to cultural organizations is that knowing how and when to use debt is a key component to managing an organization.  The loan pool will provide an opportunity for organizations possibly left out of the credit market to use debt as part of their strategy for growth and development. 

While creative placemaking is not a new vehicle for economic change, ArtPlace takes a novel approach – bringing together an innovative public-private partnership (with NEA and seven other supporting federal agencies), critical grant funds (ten private foundations), and access to credit (six financial institutions) so that a full complement of capital is available in making all of these communities vibrant places to work and live.   

We don’t need a golden ticket to realize successful economic development.  We need more of the innovation and partnership inherent in ArtPlace, and if we can foster more initiatives like this, I’m confident that we will succeed.