EDA Newsletter February 2009

Volume 2; Issue 2 

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Federal Funding Opportunity Now Available for EDA's University Center 

Economic Development Program

EDA is pleased to announce the solicitation of applications for the FY 2009 

University Center Economic Development Program competition, to take place in 

EDA's Atlanta and Seattle regional offices. A notice was published today in the 

Federal Register (74 FR 7856). EDA is soliciting applications from accredited 

institutions of higher education and from consortia of accredited institutions of 

higher education in the geographic areas served by its Atlanta and Seattle 

regional offices. The deadline for receipt of applications is April 21, 2009 at 5:00 p.

m. Eastern Time for EDA's Atlanta regional office and 5:00 p.m. Pacific Time for 

EDA's Seattle regional office. All other information and requirements for the FY 

2009 University Center Economic Development Program competition may be 

found in the February 20, 2009 Federal Register notice (74 FR 7856) and the 

companion federal funding opportunity announcement on EDA's website at www.

eda.gov/InvestmentsGrants/FFON.xml.

It's Academic: The Rewards of Higher Education in Economic Development

Colleges and universities have long served as incubators for science, technology 

and business innovation. But in times of economic challenge, higher education 

institutions often serve as drivers of community development. The partnership 

between the University of Illinois at Urbana-Champaign (UIUC) and the cities of 

Urbana and Champaign has resulted in significant economic benefits and serves 

as a model for how university representatives and economic development 

practitioners can work together.

In the late 1990s, the city of Champaign started making significant investments in 

Campustown, a neighborhood adjacent to the university. These investments 

focused on infrastructure enhancements (related to flooding issues) and 

improving the streetscape, an effort which was partially funded by UIUC. This 

initial $8 million investment has spurred private sector investment, resulting in 

more retail, restaurants, apartments and a new grocery store. Additionally, 

Campustown has become a more pedestrian-oriented and urban environment, 

providing a preferred location to both national chains and local start-ups, with 

easy access to the approximately 25,000 students that live within five blocks. 

Campustown isn't the only place in Champaign that is experiencing revitalization. 

WE WANT TO HEAR FROM YOU

Do you have a story idea, case study 

or topic that you would like to see 

covered in this newsletter? Do you 

want to comment on something you 

read here? Email us and your 

comment or idea could be featured in 

the next EDA Update!

APA's Economic Development 

Toolbox Part One: Potential 

Economic Development 

Strategies 

Development practitioners, along with 

local and regional governments, have 

a variety of options to employ when 

considering their community's best 

economic strategies. In APA's Toolbox, 

(website) stakeholders can learn of 

different strategies — from business 

retention and attraction to workforce 

training — that may be right for their 

region and industries. 

EDA Excellence in Economic 

Development Awards 2009 —

Entries now being accepted! 

The competition for the EDA 

Excellence in Economic Development 

Awards 2009 is now open. 

The awards recognize innovative 

economic development projects or 

strategies across the United States. 

The awards are designed to showcase 

best practices and highlight 

outstanding results. 

EDA is accepting entries through April 

16, 2009. 

To review and download the Awards 

2009 entry brochure, visit: www.eda.

gov. 

If you have any questions, contact 

Barbara Earman in EDA's Legislative 

and Intergovernmental Affairs Division 

at 202-482-4521 or at awards@eda.

doc.gov. 

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EDA Newsletter February 2009

Downtown, while not immediately adjacent to the UIUC but still close to campus 

and Campustown, is also experiencing redevelopment. In fact, according to city 

planners, approximately $3.5 million in tax increment financing funds have been 

invested in downtown since 1994 — and that has yielded a return on investment 

of $35 million. Students also seem to be spending more time — and more money 

— downtown, which has increased revenue from sales tax. 

The revitalization has benefited from the collaborative approach between the 

University, city officials, local business and property owners, as well as students. 

Representatives from each of these entities sit on the University District Advisory 

Board, which oversees the implementation of the University District Action Plan. 

This plan leverages key community leaders to address vital community 

development issues ranging from land use and urban design to safety, 

transportation, parking, infrastructure and aesthetics. 

The university has also been an important partner to the city of Urbana, just east 

of Champaign. A public-private partnership between Urbana, UIUC and a private 

developer has led to the development of Gregory Place West and Gregory Place 

East. These two mixed-use developments have added to the vibrancy of the east 

part of campus, and helped to replace some of the residential and commercial 

uses lost over time. The Krannert Center District, which is a new business group, 

is also working to help develop a neighborhood of arts, entertainment and dining 

to encourage more students and residents to spend time on the east side of 

campus. 

City planners from both Champaign and Urbana report that while they are not 

immune to the downturns in the economy, the presence of the university has 

helped create a local economy that is more resilient. Ongoing partnerships with 

the university have also helped create important economic development 

opportunities.

Learning from this example, policy leaders and economic practitioners should look 

to these enterprises when visioning and implementing their communities' shortand long-term development strategies. The higher education collaborative, like 

public-private partnerships, leverages multiple sources of investment and 

reinforces the commitment of a varied group of community stakeholders. The 

UIUC story teaches us the following important lessons:

● Municipalities, community development corporations, and the business 

community should not overlook engaging local universities in creating 

economic development plans; 

● An advisory board that includes representatives from the university as well 

as other local stakeholders can be an effective way to engage 

stakeholders; 

● Colleges and universities can be sources of funding as well as research and 

workforce training expertise; 

● A commitment to place making and raising quality of life amenities creates 

an atmosphere for sustainable economic activity; and 

● Private investment often follows the public investments in community 

improvements.

While not every region or community has a higher educational institution located 

nearby, the UIUC experience suggests that effective partnerships can often 

involve less traditional economic development partners. These partnerships 

ultimately help strengthen a community's resiliency in times of economic 

downturn and pay dividends in creating places of lasting value. 

Universities and Entrepreneurial Impact

When we think of the economic development role of universities, we often think of 

technology transfer or the effects of local real estate development. A new study of 

the economic impact of the Massachusetts Institute of Technology (MIT) details 

another important and often overlooked role for universities — as an incubator of 

innovation and entrepreneurship. The study reports on a survey of MIT alumni 

and their subsequent careers as entrepreneurs. The results are pretty astounding. 

At present, MIT alumni have founded 25,800 active companies that employ 3.3 

million people and generate annual revenue of $2 trillion. If organized as a single 

economy, this alumni group would represent the 17th largest economy in the 

world. 

Coming Soon!

March 7–9, 2009 

NAWB's Forum 2009: Partners at 

Work Washington, DC [Website]

March 12, 2009

NIST's Technology Innovation 

Program and Manufacturing Extension 

Partnership San Francisco, CA 

[Website]

March 15–17, 2009

IEDC's Federal Economic Development 

Forum Alexandria, VA [Website]

March 25–27, 2009

Nado's Economic Development 

Finance Service Conference New 

Orleans, LA [Website]

April 14–15, 2009

Center for Automotive Research, 

Roads to Renewal Chicago, IL 

[Website]

April 19–22, 2009

NBIA's 23rd International Conference 

on Business Incubation Kansas City, 

MO [Website]

April 25–29, 2009

APA's 101st National Planning 

Conference Minneapolis, MN 

[Website]

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EDA Newsletter February 2009

MIT has always spawned a lot of entrepreneurs, but, in recent years, alumni have 

been even more entrepreneurial — starting businesses at faster rates and at a 

younger age. This shift is partly the result of MIT's growing emphasis on 

entrepreneurship. In recent years, it has developed a number of programs, such 

as alumni mentoring network and a major student business plan competition. 

These efforts have helped build a stronger entrepreneurial ecosystem in 

Massachusetts and within the wider national and global MIT alumni network. The 

report concludes with a number of concrete suggestions on how other universities 

can also nurture a stronger, and more effective, regional entrepreneur support 

system.

The February 2009 Kauffman Foundation-sponsored report, Entrepreneurial 

Impact: The Role of MIT, by Edward B. Roberts and Charles Eesley, can be 

accessed at: www.kauffman.org. 

Roads to Renewal: A Summit on the Changing Automotive Industry —

How Communities Can Thrive

This April, leaders from automotive communities will gather in Chicago for a firstof-its-kind event: a Summit on how communities can respond to the changing 

automotive environment. Everyone knows the challenges. What may not be as 

well known are the solutions: community empowerment, collaboration and 

planning.

On April 14-15, the Center for Automotive Research, the EDA and the University 

of Michigan will host this event that could change your community. You will hear 

from leaders who have turned their communities around, as well as from leading 

experts in economic development and the automotive industry. You'll learn how to 

position your community to prepare and partner to prosper, even in these 

unprecedented tough times in the automotive industry.

For more information, or to register for this important event, visit: http://

regionalsummit.cargroup.org/ or call 734-662-1287. 

April 14-15, 2009 

Renaissance Chicago Hotel 

Chicago, Illinois 

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