Streat axis a third place social enterprise for chicago's uptown neighborhood by Christopher Tran

STREAT AXIS:

EXECUTIVE SUMMARY

A THIRD PLACE SOCIAL ENTERPRISE FOR CHICAGO’S UPTOWN NEIGHBORHOOD

ACKNOWLEDGEMENTS Special thanks to Rachel Weber for her assistance and guidance throughout the plan making process. Thanks to the faculty and staff in the College of Urban Planning and Public Administration at the University of Illinois at Chicago for teaching me the technical skills and theoretical framework to become an urban planner committed to the equitable development of neighborhoods and cities. Lastly, special thanks to Uptown Uprising for their input on current community needs and the Uptown Chamber of Commerce for their input on business development in Uptown. This Masters Project document is submitted as a capstone project for the degree of Masters in Urban Planning and Policy from the University of Illinois at Chicago. Christopher Quy-Hac Tran Summer 2015

The idea of a Third Place Social Enterprise is based primarily on two key concepts: Urban Sociologist Ray Oldenburg’s Third Place place-making theory of physical spaces embodying elements that promote community amongst members of a neighborhood, and the concept of a Social Enterprise. The intersection of these two concepts breeds a commercial space-based project that is a community gathering place where racial and cultural connections are made, a space for art, culture and politics to intersect, and most importantly, a space that invests in a specific demographic through targeted programs. The City of Chicago is home to a diverse and vibrant population. With the city’s current emphasis on improving neighborhoods, new initiatives and projects are needed to spur equitable development that sustains this diversity. Uptown, one of Chicago’s most distinct neighborhoods, with its vast variety of ethnic residents and former Entertainment District, is facing neighborhood change as new residents are moving in, and new infrastructure projects impact the built environment. Like many Chicago neighborhoods, Uptown has gentrified and pushed long-term residents out. The questions of how to develop equitably and sustainably are important to answer. A Third Place Social Enterprise establishment for Chicago’s Uptown neighborhood can benefit the community in numerous ways. It supports Uptown’s push in reviving an Entertainment District with its multi-use, cultural space and

events, while also investing in the diverse refugee and lowincome immigrant populations that call Uptown home. It stands as one catalytic solution to the often conflicting nature of neighborhood change. The goal of this document is to provide a guideline and framework for a proposed Third Place Social Enterprise within Uptown that could be adapted to other neighborhoods within Chicago. This plan first explains some concepts about both third places and social enterprises. Case studies that highlight both of these concepts help develop an intersected idea of these two concepts building a conceptual framework for a Third Place Social Enterprise. After creating a conceptual framework for this document, a study of the current situations, economic and social, within Chicago’s Uptown neighborhood is conducted. This part provides key findings highlighting: neighborhood background, demographics & trends, urban renewal & revitalization, and key stakeholders. Based on the findings of current situations study, and best practices from third place and social enterprise case studies, a specific and targeted Third Place Social Enterprise Plan is proposed for the Uptown community. This section identifies the vision & mission of the plan, a set of targeted Goals, Objectives, and Strategies, and lastly Program Components and Outcomes. The final part of this document presents a design element showing a development budget for the project, an optimal site location, and design renderings.

CONTENTS THE CONCEPT

THE AREA

Social Enterprises and Its Elements The Third Place Case Studies: The interplay of Social Enterprise and Third Place Theory of Change & Social Impact: Why Communities & Neighborhoods need a Third Place Social Enterprise

12 Background of Uptown, Chicago 13 Demographics and Trends 14 Indicators of Gentrification 17 Stakeholders 18 Third Place Social Enterprise Benefits and Contributions to Uptown

THE PLAN

20 21 22 27

The Opportunity Vision and Mission The Plan STREAT Axis Components and Outcomes

THE DESIGN

32 36 40

Site-Location Analysis Making a Facility Decision Design and Rendering of Space

02 03

02 06 09 10

1.1 Social Enterprises and Its Elements

Figure 1. Graphic image showing 3 core elements of Social Enterprise

Figure 2. Graphic image showing diverse aspects of Social Enterprise. Source:

Figure 3. Social Enterprise as the “Missing Middle”

1.1.1 What is a Social Enterprise?

enterprise from other types of businesses, nonprofits and government agencies:

According to the Social Enterprise Alliance , the top five mission foci of social enterprises are workforce development, housing, community and economic development, education, and health. Unlike government programs and nonprofits, social enterprises address these social issues in a very different form. Social enterprises are a hybridity of non-profits and businesses. They are mainly for-profit entities set up primarily to contribute to public benefit. Unlike businesses, where profit is the driver of existence, social enterprises have a clear sense of their social mission, which means they know the difference they are trying to make, who they aim to help, and how they are going to go about it.

Social enterprises are revenue-generating businesses with a twist. Whether operated by a non-profit organization or by a forprofit company, a social enterprise has two main goals: to achieve social, cultural, community, economic or environmental outcomes; and, to earn revenue. On the surface, many social enterprises look, feel, and even operate like traditional businesses. But looking more deeply, one discovers the defining characteristics of the social enterprise: mission is at the center of business, with income generation playing an important supporting role. Three characteristics distinguish a social

• It directly addresses an intractable social need and serves the common good, either through its products and services or through the number of disadvantaged people it employs and/ or assists. • Its commercial activity is an effective revenue driver, whether a significant earned income stream within a nonprofit’s mixed revenue portfolio, or a for profit enterprise • Its primary purpose is the common good. It is the core of the organization’s mission and vision.

This hybridity of social enterprises consists of public services, enterprises, and charities. According to Social Enterprise UK, “The old ways of getting things done – public services versus charities, versus private enterprise – are starting to merge, and the future is hybrid.” This concept of “hybrid” can also translate to social enterprises emerging as the “missing middle” sector between the traditional worlds of government (public services), business (enterprises), and nonprofits (charities). As the “missing middle”, social enterprises are able to address social concerns: • More efficiently than government, which no longer has the mandate or resources to solve every social problem • More sustainably and creatively than the nonprofit sector, which faces funding cuts, bureaucratic red-tape, and increased demands for innovation • More generously than business, which emphasizes pre-eminence on shareholder returns

Figure 4. Images of Homeboy Industries, a social enterprise bakery cafe helping former convicts gain food industry skills. Source: Homeboy Industries website

As social needs continue to escalate in light of shrinking government budgets, employment opportunities, and social safety nets, social enterprise is emerging as a self-sustaining, market-based, businesslike and highly effective method of meeting social needs.

Figure 5. Social Enterprise Model. Source: “Nonprofit Social Enterprise: Models and Funding” Green for All Youth Employment and Leadership Ladders (YELL) Working Group)

1.1.2 Social Enterprise Model As previously stated, social enterprises apply business solutions to social problems. Social enterprises are structured with an operating model wherein business principles, market characteristics and values (competition, diversification, and entrepreneurship) co-exist and work with traditional public sector values like responsiveness to community and serving the public interest. The business model for a social enterprise is the channel that the social entrepreneur converts inputs into outcomes – the generation of both social value (measurable impact) and economic value (revenue).

Social enterprise models can be diverse in form and focus. On the surface, social enterprises may fall into three core forms: embedded, integrated, or external. Embedded social enterprises means that the commercial, revenue-generating venture and the social programs offered are one of the same. The business is created to serve targeted clients. An integrated social enterprise has its business activities overlapping with its social programs, where the revenues from the business is created as a funding mechanism and helps expand the mission of the organization. Finally, an external social enterprise means that the business activities are completely separate and may not be related to the social

mission. The revenue-generating activities are created mainly as a funding mechanism to support the social activities. Whichever type the social enterprise – embedded, integrated, or external – falls under, there are additional foci that define it. The focus of the social enterprise, both in its commercial and social activities, can fall under one or many of these categories: education and training, food service and catering operations, arts ventures, retail/thrift shops, or consulting services. The model above provides an in-depth visualization of how the social-enterprise model functions. Included in this model is mention of funding sources as well.

1.2 The Third Place 1.2.1 What is Third Place?

“Many people think that social enterprise is how business will be done in the future: working for people and the planet, not just for profit” -Social Enterprise UK

Figure 6. Public Values of Social Enterprise

1.1.3 Benefits of Social Enterprises Social enterprises produce higher social returns on investment than other models. On the one hand, they produce direct or measurable public benefits. A classic employment social enterprise, for example, might serve at least four public aims: • Fiscal Responsibility – it reduces the myriad costs of public supports for people facing barriers, by providing a pathway to economic self-sufficiency for those it employs and/or assists. • Public safety – it makes the community in which it operates safer, by disrupting cycles of poverty, crime, incarceration, chemical dependency

and homelessness. • Economic opportunity – it improves our pool of human capital and creates jobs in communities in need of economic renewal. • Social Justice – it gives a chance to those most in need. Not only do social enterprises provide benefits to the individuals and communities they serve, they also spark new opportunities for both entrepreneurs and consumers. This important and growing sector contributes to new prospects as: • It allows for new economic successes for individuals who are looking for different, more rewarding ways of doing business.

• It grows customer awareness and interest in how people’s spending choices affect others as many consumers want to know where the goods and services they buy come from. • Have they caused human suffering or environmental damage along the way? • Are workers being treated well? • Which product does the most socially? As the notions of common good or social good become more and more embedded into future business ventures, the growth and depth of social enterprises will occur. Current social enterprises vary in form and function which will be highlighted in the following section.

Third place is a concept introduced by Urban Sociologist Ray Oldenburg. The first place is the home, the second is the workplace, and the third place is a Space that plays as the “anchor” of community life and facilitates and fosters broader, more creative interactions.” (Oldenburg, 1989) According to Ray Oldenburg in his book, The Great, Good Places, he describes a third place as “…an inclusive space. It is accessible to the general public and does not set formal criteria of membership and exclusion. Third places serve to expand possibilities and…counter the tendency to be restrictive in the enjoyment of others by being open to all and by laying emphasis on qualities not confined to status distinctions current in society.” (Oldenburg, 1989) The forms in which Third Places take are many and vast. In his later book, Celebrating the Third Place, Oldenburg highlights how third places can take forms as gift shops, restaurants, taverns/bars, or coffeehouses. In more recent times, the idea of third place has also transcended into many coworking spaces, multi-use community centers, or even farmers markets. Ultimately, the form of third places are fluid, but all share the same fundamental concepts of inclusion and collaborative.

Figure 7. Images from Bus Boys and Poets in Washington D.C. Source: Bus Boy and Poets website

1.2.2 Characteristics of a Third Place Neutral Ground Occupants of Third Place have little to no obligation to be there. They are not tied down to the area financially, politically, legally, or otherwise and are free to come and go as they please. Leveler Third Places put no importance on an individual’s status in society. Someone’s economic or social status do not matter in a Third Place, allowing for a sense of commonality among its occupants. There are no prerequisites or requirements that would prevent acceptance or participation in the Third Place. Accessibility & Accommodation Third Places must be open and readily accessibile to those who occupy them. They must be accommodating, meaning they provide for the wants of their inhabitants, and all occupants feel their needs have been fulfilled. Figure 8. Key Characteristics of a Third Place.

The Regulars Third Places harbor a number of regulars that help give the space its tone, and help set the mood and characteristics of the area. Regulars to Third Places also attract

Figure 9. Image of the Toronto Underground Market, an example of a Third Place space. Source: Toronto Underground Market Website, http://www.yumtum.ca/

newcomers and are there to help someone new to the space feel welcome and accommodated. A Low Profile Third Places are characteristically wholesome. The inside of a Third Place is without extravagance or grandiosity, and has a familiar feel of home. Third Places are never pretentious, and are accepting of all types of individuals, from several different walks of life. A Home Away from Home Occupants of Third Places will often have the same feelings of warmth, possession, and belonging as they would in their own homes. They feel a piece of themselves is rooted in the space, and gain spiritual regeneration by spending time there.

A third place functions first and foremost as either a public or privatelyowned space, but it is unique by informally promoting a sense of collaboration, inclusiveness, and community amongst its clientele. The emphasis on these attributes aligns its character more like social enterprises without having its primary organizational structure as the common good. These are attributes that define the space. This can be seen on Ray Oldenburg’s emphasis on third places as being “the heart of a community’s social vitality and the foundation of a functioning democracy…they promote social equality by leveling the status of guests, provide a setting for grassroots politics, create habits of public association, and offer psychological support to individuals and communities.”

1.3 Case Studies: The Interplay of Social Enterprise and Third Place Social enterprises aim to address a social need, a common good, yet function as a business. There are various platforms in which social enterprises exist, but what would a social enterprise look like as a third space? At its core, a Third Place is space, often a commercial one that is a comfortable, familiar, safe place that stimulates connection and social inclusion with others. A hybridity of these two ideas would entail the expansion of a third space that already fosters the development of trust by the community members (the “regulars”) within a non-threatening, community-managed, public/private space to one where it includes services focused on education and training, workforce development and employment, or entrepreneurial consultation. The ties between these two ideas rest on the most basic concept of community –a feeling of fellowship with others through sharing common attitudes, interests, goals—and ultimately expanding it to develop programs that heighten the social & human capital and self-efficacy of those individuals who already frequent them. The case studies conducted (see Appendix 1) allows us to gain a better grasp of the key components of both social enterprises and third places, allowing us to comprehend the interplay, hybridity between the two ideas. The case studies highlight two social enterprises and two types of Third Place spaces. Haley House Bakery Café and STREAT are social enterprises, located in Boston, Massachusetts and Melbourne, Australia respectively. Rebuild Foundation is an adaptive reuse organization located in Chicago. And finally Third Place Commons is a Third Place business that is located in Lake Forest Park, Washington. In analyzing these four case studies, several overlaps exist with the aforementioned “Types of Social Enterprises” and “Characteristics of Third Places”. We can see that within two examples of social

enterprises, both Haley House Bakery Café and STREAT offer education and training, and food services and catering as key components of their social programming. Furthermore, both of these entities have a specific, targeted client for their social programming. Another key asset of Haley House Bakery Café and STREAT is their diverse model of self-sustainability – both use the profits from their commercial venture to support their social programs. Haley House Bakery Café, like the two Third Place spaces offer a robust, developed cultural programming element. These types of cultural, artistic programming and events are key components of both Rebuild Foundation and Third Place Commons in engaging all members and stakeholders within the community. Through activation of a physical space and developing programming to fill that space promotes a home away from home feel as well as openness and acceptance of all community members – elements of being leveler as a third place characteristic. These assessments shed light on what the intersection of a Third Place and a Social Enterprise would look like. From these assessments, three core components are identified. The first is finding an optimal location. Across all four case studies, the actual space/place is vital in the functionality of each entity’s existence. The second core component is the development of a robust, cultural programming for the space. Haley House, Third Place Commons, and Rebuild Foundation all offer diverse programs and events that engage community. The final core component would be possessing a targeted education and training, and food services and catering element. These three elements help inform the structure of the proposed Third Place Social Enterprise within this document.

1.4 Theory of Change and Social Impact: How Communities and Neighborhoods Benefit from a Third Place Social Enterprise

Over the past few decades, Chicago has seen a shift from “whiteflight” to “gentrification”. Chicago’s inner-city communities and neighborhoods, previously disinvested and of-color, are now undergoing a process of change: housing market, economic status, and demographic changes that alter its character. Many observers of gentrification, or neighborhood revitalization, believe that such neighborhoods and communities are undergoing positive change through an activation of vacant properties, new business investments, and rising property taxes. The downside of this form of change is that those who have resided within these very communities are ultimately at risk of being displaced. Fundamentally, the question about addressing gentrification is “what can we –urban planners, government, developers, etc.— do differently?” A new approach does not mean being resigned to changes that have already happened in urban neighborhoods, nor to be deterred by past decisions and consequences, but it does include understanding how those changes have happened and how to make future decisions to mitigate the negative costs of gentrification and move towards strategies that are inclusive and equitable. The vision of inclusive, equitable development includes affordable housing, economic prosperity, and a healthy built environment for all residents – both those who have lived within these communities for generations, as well as new-comers.

While there are many different strategies in establishing a more equitable, inclusive model to mitigate gentrification, this document focuses on the idea of a Third Place Social Enterprise as one catalytic solution to mitigate gentrification within urban neighborhoods. The creation of a Third Place Social Enterprise not only promotes economic prosperity and a healthy built environment, but also possesses a vital social impact – investing in the skills development and self-sustainability amongst lower-income, often marginalized residents who face the greatest threat of gentrification. The Harwood Institute for Public Innovation, a nonpartisan, independent nonprofit that consults with people and organizations to solve pressing problems and change how communities work together states that anchor institutions “bring people together across divides and fault lines…to help people see and hear one another, work through real differences, figure out the common ground that does exist, and engage the community in creating a new trajectory.” The role of a Third Place Social Enterprise play in bridging differences amongst diverse demographics and thriving to build a more sustainable cohesiveness between often contentious stakeholders, while having economic impacts on employment, revenue gathering and spending patterns, sheds on the strong potential that it can be a community anchor institution in neighborhoods facing rapid change.

2.1 Background of Uptown, Chicago

Figure 10. Image of Uptown Theatre Source: Flickr.com

Uptown is a community area in Chicago’s north side bordered by Irving Park Road on the south, Lake Michigan on the east, Foster Avenue on the North, and Ravenswood Avenue and Clark Street to the west. Uptown is home to people from a variety of racial, ethnic, and social backgrounds. There is also a broad range of businesses, educational institutions, social service agencies, mutual aid societies, and religious congregations. Housing stock is quite varied, including high-rise lakefront buildings, owner and renter occupied multi-unit and single-family homes, studios and single room occupancies (SRO) units. Situated along Chicago’s lakefront on the far North Side of the city, Uptown has many attributes that make it a desirable place to live. While the community possesses a great racial, ethnic and economic diversity, which has shaped and defined Uptown, it has also experienced gentrification to at least some extent over the past

few decades. The neighborhood has seen an influx of wealthier, more educated residents and has attracted development in the form of rehabilitated single-family home, new townhomes and condominiums. Uptown is a neighborhood with a complicated and fascinating history; an area seemingly in a constant state of transition with various stakeholders pushing their visions of the community. These visions are often conflicting, which has led to the neighborhood to become one of great contestation. The following sections first look at the rich culturally and ethnic diversity of Uptown, then examines three potential indicators of gentrification – racial change, economic/ income characteristics, and revitalization through investment of infrastructure projects – which Uptown is faced with, then analyzes Uptown’s stakeholders, and concludes with how a Third Place Social Enterprise would benefit the community.

2.2 Demographic and Trends

2.3 Indicators of Gentrification 2.2.1 “Ethnicity and Culture”: Port of Entry to the Midwest

Figure 11. Image of “Asia on Argyle” sign, Uptown. Source: Flickr.com

Figure 12. Image of African Beauty Salon in Uptown, Chicago. Source: Flickr.com

Uptown has been, and continues to be, a port-of-entry for newly arriving immigrants to the United States. Throughout the past century, there have been a diverse range of immigrant influxes into the neighborhood. Since the early 20th century, Uptown attracted waves of immigrant groups from northern Europe. During the 1940s and 1950s, many Russian Jews from Chicago’s west side followed by an increase of African Americans and Greek Americans. The two decades that followed saw an influx of Japanese Americans and Southern whites as they joined Uptown’s Native and African American residents. This rich mixture of different races and culture only continued to grow within the following decades. During the 1970s and 1980s, Uptown saw an increase in the African American and Latino communities along with a large inflow of refugees from Southeast Asia. Furthermore, the neighborhood also became a portof-entry for many mental health patients displaced by Illinois’ policy of deinstitutionalization.

Figure 13. Chart showing Foreign Born Population by Race in Uptown, Chicago. Source: U.S Census

Figure 13 reveals statistics from the selected characteristics of Foreign-Born Populations within Uptown from the 2012 U.S. Census Bureau American Community Survey. Across all race lines, there appear to be a prominent section of the population that are foreign-born. Uptown has been not only a port-ofentry for diverse populations throughout the past, but remains so today.

Figure 14. Graphic showing Percentage of Uptown Residents by Race 1970-2010. Source: U.S Census

2.3.1 Uptown’s Changing Racial Composition As the previous section shows, Uptown is a neighborhood built upon ethnic and racial diversity. Signs of diversity within Uptown are evident through the decades-long establishment of the American Indian Center, the Asian Business District located on Argyle Street offering a vast array of South-East Asian cuisine, and many African restaurants and hair salons. All of these outlets have sprung up throughout the years to cater to the diverse tastes of its residents. This has defined Uptown’s uniqueness compared to many other Chicago neighborhoods. Although Uptown possesses these diverse ethnic and cultural assets, the racial fabric has been changing consistently over the past few decades. A redistribution of the racial composition of neighborhoods

Figure 15. Doughnut chart of Races in Uptown. Source: U.S. Census

can be a byproduct of the gentrification process. While the levels of indicators such as housing values, education, and income increase when a neighborhood undergoes gentrification, the minority populations generally decrease. Figure 14 reveals the decennial racial and ethnic changes of Uptown. The Black, Latino, and Asian population have decreased since 1990, while the White population has grown. This is indicative of the slow signs of gentrification that Uptown has faced within the last few decades. The most current figures of Uptown’s race show that close to 60% of the population is White-alone, while the other 40% are broken down into Black/African-American-alone, Hispanic/Latino, Asian-alone, and Other. Approximately 3.3% of Uptown’s population identified as two or more races according to the 2010 U.S. Census Bureau.

Figure 16. Economic Characteristics of Uptown. Source: U.S. Census

2.3.2 Economic Characteristics In addition to changes of racial composition, change in economic characteristics – educational attainment and household income— is another indicator of gentrification. The previous section indicated that Uptown faced a decrease of minority populations since around 1990. If we look at the economic characteristics from the same period –1990 to 2010 — we can see that both college education attainment and household median income has increased significantly. College education attainment for Uptown residents increased from approximately 30% (1990) to a little over 50% (2010). The median household family income increased from ~$25,000 to close to ~$50,000 during the same period. While college attainment and median family income has increased, the percentage of families living under the poverty level have decreased from ~30% in 1990 to ~20% in 2010. This reveals the correlation between how racial change may impact various economic characteristics within Uptown. With the influx of more young professional, predominantly White residents within the

Figure 18. Rendering of Lawerence/Broadway Ave Entertainment District. Source: Chicago.curbed.com

Figure 19. Rendering of Argyle Streetscape project. Source: Chicago.curbed.com

Figure 20. Rendering of new Wilson Red Line Stop. Source: CTA : transitchicago.com

2.3.3 Urban Renewal/ Revitalization

businesses to move into a neighborhood are also influential. As Uptown faces various processes of gentrification, the question of how to maintain the diversity that defines the neighborhood emerges.

residents are not displaced within the process of neighborhood revitalization. These same sentiments were echoed by the Uptown Chamber of Commerce as their mission is to improve the quality of life of all Uptown residents. According to the Uptown Development Guidelines set forth by the Uptown Chamber of Commerce, development is achieved through the economic diversity in businesses that serve community needs. In the document, they state, “We appreciate that we are in a difficult position of having many eclectic interests to serve. We also recognize that very few local economies can sustain themselves with no support from the outside. We seek a mix of businesses, predominantly locally owned, that serve all ranges of wealth within the community.”

Figure 17. Uptown Residents by Income Brackets. Source: U.S. Census

past two decades, household income has also increased. According to the 2012 U.S. Census Bureau American Community Survey, there is a vast range of residents quite evenly distributed across all income brackets (see Fig. 16). The majority of residents are making between $50,000 and $149,000, but there still remains a high number of residents that are making far less than that, between “less than $10,000” to $49,999 annually. These numbers are quite revealing as they capture the process of and key elements that define gentrification. It reveals the dichotomy within a neighborhood that is divided by both racial and economic lines. Many lower-income, immigrant, minority families live side-byside with their wealthier neighbors. In a 2000 Urban Land Institute report on Uptown, “the panel noted significant tensions between different elements in the community…conflicting opinions among developers and advocates for the economically disadvantaged members of the community.” This has often led to a contentious battle in how residents, along all race and class lines, envision the future of the neighborhood.

With increased influx of wealthier, more educated residents into neighborhoods, the discussion or how to revitalize or renew often follow suit. This includes the investment of new businesses as well as the infrastructure development of the built environment. Uptown is currently undergoing revitalization in both of these realms. Some of these include the revival of the Entertainment District, Place-making projects on the Lawrence/Broadway as well as the Argyle Street Corridor, and Wilson Red Line redevelopment project. Like other indicators of gentrification – ethnic and racial mix of residents, income level of residents – the broad range of physical, built environment projects which attract

“Where Diversity Brings Success”, written on a mural outside the Institute of Cultural Affairs building located in Uptown, attempts to define the strengths and assets of the neighborhood. But the question that remains is how Uptown, the ethnically, racially, economically diverse neighborhood, bring success for all? Uptown Uprising, a grass roots community coalition advocating for working-class, lower-income residents, believes that the neighborhood would most benefit from inclusive, equitable development, where many of the long-time, lower-income

2.4 Stakeholders

2.5 Third Place Social Enterprise Benefits & Contributions to Uptown As one of the most diverse neighborhoods within Chicago, in race and ethnicity, in varying social classes, and also institutional entities, Uptown possesses a wide range of stakeholders who have varying interests in how the neighborhood develops. In order to identify what Uptown, as a community as a whole, needs, we must realize who the key stakeholders are. The graphic below shows the key stakeholders involved within Uptownâ&#x20AC;&#x2122;s development. The image reveals several of the key stakeholders within Uptownâ&#x20AC;&#x2122;s development process. The entities that have strong interest in managing, administering economic, cultural and structural projects occurring in Uptown include cultural affairs organizations, the Uptown Chamber of Commerce, the 46th Ward office, and government workforce development agencies. Non-profit and community based organizations have a vested interest within the process of neighborhood change as well as particular development policies may impact their constituents.

Figure 21. Graphic of Key Stakeholder within Uptown, Chicago.

Lastly, actual community members â&#x20AC;&#x201C; both those who work and live within Uptown have stake within how the neighborhood develops. These include families themselves, business owners and their employees.

Figure 22. Graphic of Political, Administrative, and Community Feasibility and Benefits of Third Place Social Enterprise

Like many urban neighborhoods and communities, Uptown too is forced with the threat of gentrification, which has reshaped lowerincome, immigrant neighborhoods into unaffordable ones. It is in the process of neighborhood change, and has become a contended space, where many feel that the vast social, mutual aid, and human service organizations catering to lower-income, immigrant, and mental health clients are a barrier into rebuilding the neighborhood into an entertainment district. At first glance these two trajectories are at odds with one another, but looking beyond these current binaries of neighborhood redevelopment or revitalization helps identify potential solutions towards a more sustainable development process within Uptown. There are many tactics to combat neighborhood gentrification, such as providing tax relief to long-term home owners, promoting mixed income and non-profit development for housing and community space, as well as the support of local neighborhood organizations rooted in local history and ethnic traditions (Neighborhood Change: Gentrification, The Center for Urban Research and Learning (CURL),

Loyola University Chicago). In addition to these methods, building capacity of skills and jobs for local, marginalized community members also contributes to reducing displacement as a result of gentrification. A Third Place Social Enterprise offers Uptown a model that invests in this diverse community and its residents. It would build upon the assets of many different marginalized, lower-income, immigrant residents with its social mission, meanwhile catering to the palates of those who may desire change and process. Uptown has the opportunity to develop equitably, there are many initiatives (housing, education etc.) that call for equitable development. The creation of a Third Place Social Enterprise is one form that would contribute to the equitable development of Uptown and build its identity as an inclusive, diverse, attractive neighborhood. The image below illustrates how the establishment of a Third Place Social Enterprise would be not only an ideal development, but a feasible one based on the alignment of Political, Administrative, and Community needs.

3.1 The Opportunity Uptown is faced with a decision for the future. It is faced with a decision to follow the path of the many neighborhoods in Chicago that have transformed from a lower-income, predominantly immigrant community into one that is homogenous in race and economic characteristics. Uptown is one of the very few communities in Chicago that is diverse on a multiplicity of levels, as seen through the aforementioned section. Depending on its trajectory towards the future, it may very well become like Lincoln Park, which once was a predominantly lower-income, minority neighborhood, or like Wicker Park, a predominantly Latino neighborhood that has displaced the majority of its former residents.

it in Uptownâ&#x20AC;&#x2122;s development. The proposal of a Third Place Social Enterprise, which will be referred as STREAT Axis hereafter, emerges as a new model for the neighborhood that would be inclusive, benefit residents from all walks of life, and ultimately build self-sufficiency for those are may be potentially displaced.

The census data reveals that both demographically and economically, the neighborhood of Uptown is changing, albeit slowly. The problem that exists currently is embedded within Uptownâ&#x20AC;&#x2122;s long history of diversity, of being a port-of-entry for so many from various backgrounds, and how to sustainably develop towards the future while catering to all residents who call it home. How do we sustain diversity, the right to live, to exist within a specific neighborhood when there exists such a vast array of interests? There is not one solution to address this problem, but there are many. The one proposed within this document builds upon all the assets that Uptown has to offer -- the cultural assets of the diverse residents of Uptown, the assets of middle-class individuals moving into the neighborhood, and the assets of public-private partnership in advancing Uptown into an Entertainment District. I propose one catalytic solution that bridges the fragmented trajectories occurring in Uptown today and would positively impact the future. The main overarching plan for Uptown is to revive it to its former days as a destination spot, an entertainment district, which is evident with the current plans of the Entertainment District. As this process has been put into action, the challenge is how to build upon the assets of the ethnic diversity Uptown possesses and include

Figure 23. Photo of Gentrification Protest in Uptown, Chicago. Source: flickr.com

3.2 Vision and Mission Vision Statement We envision a city where immigrant and refugee food entrepreneurship is leveraged to transform the relationship between divergent development within Chicago neighborhoods. This innovation will facilitate the creation of a more inclusive, equitable, economically vibrant city.

Li Ka Shing, Hong Kong business magnate, investor, and philanthropist believes that “Vision is perhaps our greatest strength…it has kept us alive to the power and continuity of thought through the centuries, it makes us peer into the future and lends shape to the unknown.” Low-income, marginalized immigrants and refugees come into this country uncertain as to what type of future lies ahead. They may find low wage jobs to sustain a life for their family, a successful future for their children. However, the skills and knowledge that this demographic brings with them are often overlooked.

3.3 The Plan Mission Statement In an atmosphere of inclusivity and collaboration, STREAT Axis offers Uptown a new community anchor -- a social space that contributes to the revival of the Entertainment District, but more importantly a space that helps people who are affected by poverty to improve their lives and increase selfsufficiency through skills development and entrepreneurial capacity building.

Given the opportunity to apply these assets through jobs, through entrepreneurship ventures, the road to self-sufficiency would be established for new immigrants and refugees within a new environment. There is an old Chinese proverb that states, “Give a man a fish, and he’ll eat for a day. Teach a man how to fish, and he’ll eat for a lifetime.” With this quote in mind, and with Li Ka Shing’s regard for vision being one’s greatest strength, I define the vision and structure of STREAT Axis.

Figure 24. Image of Siraly Cafe in Budapest Hungary. Source: www.2budapest.com

3.3.1 Overview Teaching Immigrants and Refugees to Fish so they can Eat for a Lifetime. STREAT Axis is a social venture that is first and foremost a commercial space that offers an innovative, hip, vibrant hub for millennials interested in multi-cultural art, music and late night events. The commercial success of STREAT Axis will enable our social mission of integrating into our business a food entrepreneurship empowerment and development (FEED) program for recent immigrants and refugees. It is a community gathering space where cross-cultural connections are made.

Figure 25. Image of an art space. Source: Flickr.com

Chicago, the Second City, is filled with a bustling food and entertainment scene with thousands of restaurants and bars. We believe that our commercial venture separates itself from what is currently offered in Chicago. This new multi-use, multi-functional entertainment space would be the first in Chicago, but definitely not the first in the U.S. Innovative cities like Los Angeles, Seattle, and Washington D.C. where immigrant and artistic populations coexist, offer similar creative commercial spaces. Take Bus Boy & Poets for example, a creative, multi-use commercial space in our nation’s capital has become not only a vibrant gathering space, but also a

Figure 26. Image of world flags made from food. Source: www.peacechild.org

successful one. They started at one location, and have now expanded to four. One of the key components of their success lies with what they’re offering, and to whom. Their main target market are young millennials, 21-36 years old, whom according to the Washington Post in 2013, stated that “For millennials, food isn’t just food, ot’s community”. In line with this thought, the National Restaurant Association reported that Millennials seek a unique experience, customization, and authenticity. They like to explore and discover new flavors and products.” We believe that our unique model both commercially, and socially, will draw the

3.3.2 Goals, Objectives, and Strategies Creating a planning process that streamlines designing a functional Third Place Social Enterprise model are identified through studying and comparing best practices that are being implemented throughout other major cities throughout the U.S. Through the previous case studies, we have identified key areas which have allowed both social enterprises and third places to thrive. These include an attractive, physcial space that emphasizes both

developed cultural (art, music, food, etc.) as well as social (capacity building, skills development, etc.) programming, which has helped inform STREAT Axisâ&#x20AC;&#x2122; goals, objectives, and strategies in the graphics below. It is important to mention that the goals, objectives, and strategies for STREAT Axis does not aim to design a blueprint for all third place social enterprises that could be implemented throughout other Chicago neighborhoods, but rather to create a baseline and a guide for other similar projects in the city to follow.

Figure 27. Graphic showing social enterprise business model for STREAT Axis.

interest of the close to five hundred thousand millennials that live in Chicago, and the rising number of those moving into Uptown. Our model is unique in that profits from our commercial space -restaurant/bar and catering earnings -- and rental fees for work-space and events will fund our Food Entrepreneurship Empowerment &

Development (FEED) program to empower immigrants and refugees through advancement of skills and knowledge in the food/service industry. The FEED Program consists of (1) Food Handling Permit trainings (2) Commercial Kitchen Basics (3) Apprenticeship Program.

Figure 28. Graphic highlights GOS (Goals, Objectives, Strategies) for STREAT Axis

Figure 29. Graphic highlights GOS (Goals, Objectives, Strategies) for STREAT Axis

Figure 30. Graphic highlights GOS (Goals, Objectives, Strategies) for STREAT Axis

3.2 STREAT Axis: Components and Outcomes These include revenues from 1) Food and Drink 2) Catering Services 3) Space Rental and 4) Art & Music Events. (See Fig. 31) Food & Drink The food menu at STREAT Axis will focus on international street food items and will be served tapas style. Food items will include cuisines from South America, Africa, Middle-East, and South-East Asia. There will be both permanent menu items as well as rotating items and weekly specials. The drink menu will include both non-alcoholic as well as alcoholic beverages. Coffee will be served in different styles (South-American, Ethiopian, Vietnamese, and Thai). Craft cocktails infusing international flavors will be offered on the menu as well. The food and drink revenue outcomes will stem from competitively priced items. Market research on similar menu concepts within Chicago as well as other cities throughout the U.S. will inform the pricing of food and drink menu items. Revenue from alcohol will have the largest margin of profit, which will contribute to the operations and program expenses.

Figure 31. Graphic highlights Commercial/Space Element Components & Outcomes

Catering Services As this project is an intersection between a third place and a social enterprise, STREAT Axis possesses two core components to its structure: commercial/space elements and a programmatic element, specifically the Food Entrepreneurship Empowerment and

Development (FEED) program. This section will analyze in detail the specifics of both of these core components and their outcomes.

Commercial/Space Elements STREAT Axis’ commercial, revenuegenerating components are an important factor as they are the main driver in funding the Food Entrepreneurship Empowerment & Development (FEED) Program.

The catering menu will focus on three regional cuisines: Southeast Asia, Middle-Eastern, and East African. The menu format will include: 1) Single Regional Package (1 appetizer, 2 entrees, 1 dessert); 2) Finger Food Package (choice of 6 total items - savory + sweet menu items); and 3) Mixed Package (1 appetizer, 2 entrees, 1 dessert). The menu prices will be as follow: 1) 20-34 people: $24/person + service + tax; 2) 35-99 people: $21/person + service +tax; and 3) 100 or more:

$19/person + service + tax. Targeted marketing and advertising will gain potential customers, which will be part of STREAT Axis’ targeted monthly catering services goals. Revenue from catering services will contribute to both operations and program expenses. Space Rental STREAT Axis’ design will have different rooms, which will be available for group/community meetings or private events. For event rentals, the cost would be $100 per hour with $50 for each additional half hour. Rentable space include the main cafe area, kitchen and counter areas, tables and chairs. Furthermore, bartender and catering services can be provided at an additional price. Deposits range from $100-$200 depending on length of rental. Meeting room rental fees are at a $30/hr rate with a maximum capacity of 15 people. Revenue from space rental will go towards operations and program expenses. Art & Music Events (Cultural Programming) Cultural programming will include photo exhibits from local and international artists. There will be curated programs that have cross cultural connections to both local and international artists. In addition to this, there will be performancce art programs (dance, poetry). Live music sets will be available from both local and international artists. Lastly, STREAT Axis will offer specific events such as craft beer/cocktail tasting events, international street food market events, and community pop-up dinners. The revenues from this component (ticketing) will contribute to operations and program expenses.

simplification of language used int the food handling test offered through the City of Chicago and will also asssist in the registration for taking the exam. Lastly, there will be subsidies to assist participants in paying for the exam. Program outcomes will see program participants successfully obtaining their food handler permits and gaining the most basic knowledge food handling and hygiene that is necessary to pursue any job in the food industry. This training session is a prerequisite for our Commercial Kitchen Basics Skills Training program which participants can sign-up for if they are interested in taking a basic culinary training program. Commercial Kitchen Basics Skills Training This program is intended for thos individuals who have gone through the food handling permit training session, which will provide a more hands-on experience in a commercial kitchen. This program will go more in-depth in terms of safe food handling and kitchen hygiene. Participants will learn knife skills, reading/writing recipes, ingredient measurements, and scaling/conversion of recipes. In addition to this, participants will learn about cookware, kitchen equipment, plating/ presentation and ingredient identification. Program managers will assist participants in interview preparation as well. A great part of this program will be the sharing of cultures and cuisines between program participants.

Figure 32. Graphic highlights Food Entrepreneurship Empowerment & Development (FEED) Program Components & Outcomes

Food Entrepreneurship Empowerment & Development (FEED) Program The FEED program will be offered to qualified low-income immigrant and refugee participants and will consist of 3 core components: (1) Commercial Kitchen

Skills (2) Food Handler Permit Trainings and (3) STREAT Axis Apprenticeship Program. The following table elaborates on FEEDâ&#x20AC;&#x2122;s 3 core programs. (see Fig. 32)

Food Handling Permit Training Sessions This program will focus on the coverage of safe food handling and kitchen hygiene rules and regulations. The program will work with program participants in the

Upon successful completion of this program, graduates and STREAT Axis staff work together to assess the goals of each individual and then take the necessary steps towards reaching those goals. Graduates of the program are qualified to partcipate in our paid Apprenticeship Program or to receive help finding immediate placement in other jobs

in the food industry. Graduates will also have the opportunity to work on a part-time basis on catering events or cooking classes. STREAT Axis aims to create a strong community networkfor our participants that allows them to feel both supported and empowered during and after the program. Apprenticeship Program Upon completion of the Commercial Kitcehn Basics Skills Training program, select graduates can apply for the 6-month Apprenticeship Program. Within this program, participants will gain both hard and soft skills. Hard skills include: safe food handling, inventory management, customer service, order fulfillment, event planning, and basic budgeting. Soft skills include: ability to follow instructions within a commercial kitchen, communication, punctuality, ability to work independently, teamwork, etc. Apprentices are expected to complete regular self-assessments with the chef instructor where individual feedback, mentorship, and continued instruction will be provided. Upon completion of program, STREAT Axis will help place participants in part-time or full-time jobs with us or other food businesses. For those interested in starting their own small business or being part of a co-op catering operation, STREAT Axis will provide them referrals to business training, mentorship, and support necessary to begin accomplishing their goals. STREAT Axis also aims to help apprentices increase their confidence in their abilities, become comfortable with kitchen and food business related vocabulary, build a stronger resume, and create a practical plan that will allow them to work towards their specific short and long term goals.

4.1 Site-Location Analysis Critical to the development and implementation of STREAT Axis is finding the most optimal location. Conducting a site analysis is crucial in deciding the optimal location of any business because it provides timely and accurate information analysis during the predevelopment, acquisition, development, marketing, and disposition of property in order to minimize the risks and maximize opportunity to potential business developers and investors. Both vacant buildings as well as vacant parcels of land are criteria of analysis. A site analysis includes characteristics and status of proposed and planned retail developments in the target market area, as well as availability of other vacant, zoned sites that could likely become competitive retail development. Also, there should be focus on the estimated market share (capture rate) of the proposed development. The following section will use ArcGIS to analyze the most optimal site-location based on target audience proximity, accessibility, TIF/SSA districts for funding, and finally competitor cluster locations. Figure 33. Map/Location of Uptown, Chicago. Source: Googe Earth

Figure 34. Map of potential vacant properties in Uptown by TIF, SSA, and Zoning

4.1.1 ArcGIS Site-Location Analysis ArcGIS is a mapping tool that allows for comprehensive analysis using various datasets to solve a particular problem. In order to identify most optimal candidates for the Third Place Social Enterprise, there were a set a criteria used to inform the datasets and approach of analysis within ArcGIS. These included: 1) Target audience proximity 2) Accessibility 3) TIF/SSA District Funding and 4) Competitor cluster locations. These four criteria informed the three key methods used within the process of analysis. The first method was to determine the potential vacant properties within Uptown based on 1) TIF 2) SSA and 3) Zoning. The second method used these potential vacant buildings from the first method in order to determine which vacant buildings would be candidates

Figure 35. Map of Vacant property candidates in Uptown by accessibility

based on accessibility (bike routes, CTA Bus and Rail stops). Upon completing the accessibility analysis method, there would be a set of new candidate vacant properties to be used for the LocationAllocation (Maximize Attendance and Maximize Market Share) analysis. The method used was a consequential one, where the findings and results from the first method informs the input for the second method of analysis and the findings of the second inform the final third method of analysis. The following describes the process and rationale of each of the methods used. The criteria of Tax Increment Financing districts (TIF), Special Service Areas (SSA), and zoning were used to determine the potential vacant properties for the site analysis for several reasons. Opening a business within TIF or SSA districts allows for potential funding opportunities. This fact is important in influencing the specific types of locations

Figure 36. Map of optimal site locations by maximum attendence

looked at within this analysis. Furthermore, zoning of specific areas and properties influenced which vacant properties to choose from. After analysis of Chicago Zoning codes, it was determined that the suitable zoning for the Third Place Social Enterprise included the following: B1-5 (small scale retail, neighborhood shopping w/ dwelling units above), B3-1 through B3-5 (community shopping, destination oriented, no limit on size of commercial establishment, allows dwelling units above ground floor), and C1-5 (neighborhood commercial w/ dwelling units above ground). The map (Fig. 34) visualizes the potential vacant properties which fall within all three criteria – within both TIF and SSA districts as well as within the suitable zoning areas. A total of 21 properties were determined to be potential candidate vacant properties for the accessibility analysis. A key component in opening any type of business is proximity and

Figure 37. Map of optimal site locations by maximum market share

accessibility. Public transit remains one of the main modes of transit for Chicagoans. Furthermore, bike transportation has increased significantly over the years with the establishment of many new bike lanes. As such, proximity to CTA rail and bus stops, as well as bike routes influenced the analysis of determining which 21 potential vacant properties were most optimal based on accessibility. We looked at which vacant properties where within an 80 feet buffer of bike routes, a 10-minute walk of eight CTA rail stops, and within a 10-minute walk of any bus routes with two or more serviced routes. Figure 35 reveals that through the accessibility analysis, only 5 out of the 21 potential vacant properties fit into these criteria. These 5 potential candidates were then assessed through the final method of analysis of “Location-Allocation Maximum Attendance” and “Location-Allocation Maximum Market Share”. Maximum

4.2 Making a Facility Decision

Figure 38. Google Image of 4557 N Sheridan Rd. Property. Source: Google Earth

Figure 39. Google Image of 1113 W Lawrence Ave. Property. Source: Google Earth

attendance used census block population data to determine which location attracted the most people. Maximum Market Share expands the analysis to include competitor potential clusters to analyze which of the 5 locations captures the most market share based on population and competition. We determined that the criteria for competitor cluster points for analysis had to fall under service-related businesses such as cafes, bars, restaurants as the idea of Third Place will first and foremost function as a business. Out of all the businesses within Uptown, the competitor cluster points amounted to 58 businesses. The Network Analyst Location-Allocation methods resulted in two equally optimal locations for STREAT Axis (see Fig. 36 and Fig. 37). The first property, a former fast food chain located at 4557 N Sheridan Rd, Chicago, IL 60640 is currently available for lease (Fig. 38). The second property, formerly a music venue/ bar space, located at 1113 W Lawrence Ave, Chicago, IL 60640, is for sale. Which of these two locations would be most ideal for SREAT Axis and why? The following section examines the criteria and factors in determining which one of the two is the most optimal location for STREAT Axis. The GIS analysis conducted identified two optimal locations for STREAT Axis. In order to determine which one of these locations would be most ideal is dependent on a variety of factors – leasing versus owning, financing opportunities, and finally, proximity to Uptown’s Entertainment District. Further analysis of these three factors will help determine which location would be most ideal to house STREAT Axis.

Buy

Lease

• • • •

• Flexibility to accomodate future growth -- Can walk away within a specified time and for lower • Less responsibility for property management • Short-term obligations • More budget certainty • Potential for lower occupancy costs due to fewer costs for property management • Does not require as much upfront capital

Building equity and assets for your organization Long-term strategy for property control Potential for property value appreciation Potential for control of occupancy costs by eliminating rent increases • Asset can be pledged as collateral (for line of credit, equipment purchases, other facilities) • Possible savings from real estate tax exemption (in lease situations, for-profit landlords can pass real estate taxes on to the non-profit tenant) Figure 40. Table of Buying vs. Leasing property for commercial purposes. Source: IFF.com

4.2.1 Leasing vs. Owning One of the key decisions to make within social-commercial ventures such as STREAT Axis is determining whether to rent or own property. The two optimal locations identified through the site location analysis reveal that one is for lease and the other for sale. The Illinois Facilities Fund (IFF), a nonprofit lender and real estate consultant, have produced publications which help entities, like STREAT Axis, in making a facility decision. The table (Fig. 40) produced by IFF, helps us weigh the options between buying versus leasing a facility.

STREAT Axis’ long-term goal is to become a community anchor within the Uptown neighborhood. According to the IFF, purchasing property is a long-term strategy for property control. Equally important, it would allow for STREAT Axis to be our own landlord. Owning space allows for us to have control over what to do with it and the freedom to update and adapt as our business evolves. But owning property comes at a cost. It requires a large down payment, which can take a huge chunk out of our startup budget and cash reserves. Many startup small businesses often lease retail space in order to secure future budget certainty. Doing so allow start-ups more

short-term obligations and flexibility to accommodate future growth. In assessing these two positions, we believe that in order to secure long term presence as a community anchor requires fiscal viability in the short term. Because STREAT Axis is a new social-commercial venture that is reliant on both public and private funding, it is vital to analyze the initial investment costs of both properties. Generally, commercial property loans often require a down payment of roughly 20-25% of the property cost. The 1113 W Lawrence location is currently on the market for $1.1m, and would require STREAT Axis to

secure down payment of between $220,000 and $275,000. Landlords of commercial property often require businesses to agree to a 2+ year lease term with 2-4 month deposits. The 4557 N Sheridan property lease rate is $6.50 per square feet/year. The property is 25,000 square feet which includes both the retail property and the land surrounding it. Based on these figures, the annual cost for this property is $162,500, with the initial deposit of $27,083 to $54,166. With many commercial ventures, the first few years are the most crucial in terms of fiscal subsistence for the long-term. That being said, we can see that there is a difference of $220,833 in upfront capital needed between purchasing versus leasing. Having shortterm obligations in order to allow for flexibility to accommodate future growth is most ideal for STREAT Axis. By analyzing these two positions, we believe that leasing the property would be most fiscally feasible for the social venture to grow, without having the financial obligations of purchasing that may require too much collateral for such a start-up. Based on this criteria, the 4557 N Sheridan Rd. property is the most optimal location for STREAT Axis.

4.2.2 Financing Opportunities Capital Budget Before we look into the financing opportunities available for such a project, it is important to understand the initial costs involved. The previous section highlighted the costs of leasing vs. owning, but there are many more costs involved within the development phase of such a project. The STREAT Axis capital budget for the 4557 N Sheridan (Appendix 2) allows us to see the breakdown of expenses for this

project. The total project start-up costs is $537,166, which includes: 1) Leasehold Improvements; 2) Bar/Kitchen Equipment; 3) Professional Services; 4) Organizational and Development; 5) Interior Finishes; 6) Exterior Finishes; 7) Pre-opening Expenses; and 8) Working Capital & Contingency. Two key areas of the capital budget which tie back to the decision to lease are important to mention here. The costs of Interior Finishes and Exterior Finishes are based on very complex renovations of the space (which can be visualized in the design and rendering section) and together equate roughly $85,000 of the total capital budget. As many property owners are highly unlikely to absorb the cost to renovate the space, STREAT Axis hopes to partner with the property owners (Cedar Street Properties) in seeking use of Chicago redevelopment funds/grants to cover these specified costs. The following section on potential funding will go into detail on not only grants and funding through the city of Chicago, but also other avenues of finance. Potential Funding According to Impact Entrepreneurs, the biggest challenge faced by many social entrepreneurs is how to obtain funding for their venture. Because social enterprises exist in the space between traditional, grant-funded nonprofits and profit-maximizing businesses, they may have access to the funding options of both, but without the clearly defined methods and access of either. The potential financing opportunities for social enterprises such as STREAT Axis include: grants (both public and private), donations, crowdfunding, private investment, and debt and equity – loans and private investments. In regards to grants, the City of Chicago has funding mechanisms

through both Tax Increment Funding (TIF) districts). Properties that fall into TIF districts are eligible for the Small Business Improvement Fund (SBIF), which “uses TIF revenues to help owners of commercial properties within specific TIF districts to repair or remodel their facilities for their own business or on behalf tenants.” Program participants can receive matching grants to cover up to half of the cost of remodeling work, with a maximum grant amount of $150,000. As the 4557 N Sheridan Rd. property falls into the Wilson Yard TIF District, SBIF funding would be available for redevelopment and remodeling. It is important to highlight here, that business owners could use SBIF funds on behalf on tenants. As aforementioned, STREAT Axis will strive to partner with Cedar Street Properties in leveraging these funds to assist with remodling work, both the interior and exterior. In addition to partnering with the property owners to gain SBIF funding, STREAT Axis will also seek out other grants specifically focused on the social enterprise aspect of our project. Through our FEED program, we would be able to apply for grants through The Corporation for National & Community Service’s Social Innovation Fund, The Awesome Foundation Grants, or The Social Enterprise Alliance Chicago’s funds. The remaining items listed in the capital not highlighted above will need to be funded through different avenues. In addition to both Chicago and national grant funding, STREAT Axis will explore specific social venture/enterprise crowdfunding options through IndieGoGo, Network for Good, and Start Some Good. In addition to this option, STREAT Axis will develop a robust pitch-deck that will target private investment through angel and venture capitalists to fund the commercial aspect of our project.

Due to the fact that social enterprises face funding challenges, it would be much more feasible to apply any potential funding towards a lower cost, in order to maximize fiscal impact. In order to sustain STREAT Axis within Uptown, it is important to remain fiscally viable and secure. Many small businesses often close shop within the first three years to a plethora of reasons, but one of the main reasons is spending too much money before opening day. The aforementioned potential funding opportunities break down how the different components of STREAT Axis at the location of 4557 N Sheridan Rd. would be funded. In addition to weighing the pros and cons of owning vs. renting, and a brief analysis of the potential funding opportunities, the next section looks at why the 4557 N Sheridan location would be the best option for STREAT Axis within the Uptown neighborhood.

4.2.3 Proximity to Uptown’s Entertainment District The Uptown Chamber’s targeted findings within their community guidelines document suggests small and mid-sized entertainment venues for the types of businesses to be open within the entertainment district. They believe that “smaller venues with easier spontaneous access will help to create the livelier atmosphere a more cohesive district.” STREAT AXIS aligns itself quite well with the targeted types of businesses that the Chamber intends to help elevate the district. As for the current boundaries of the Uptown Entertainment District, the Uptown Chamber of Commerce has drafted a community guidelines document that states, “The heart of the Uptown Entertainment District is and will remain around the intersection of Lawrence Avenue and North Broadway Avenue.” Despite this fact, the chamber

4.3 Design and Rendering of Space is open to the adaptability of boundaries as significant venues that support and look to the Uptown Entertainment District are located several blocks away. Within the past few years, there have been burgeoning businesses within the Wilson Yard TIF area, especially in close proximity to the 4557 N Sheridan site.

Figure 41. Google Image of Everybody’s Coffee in Uptown, Chicago. Source: Google Earth Figure 42. Image of FLATS STUDIO in Uptown, Chicago. Source: www.flatschicago.com

Located at 1040 W. Wilson Ave, is the former Wilson Ave Theatre and most recently a TCF Bank. Today it is FLATS STUDIO, an arts center associated with FLATS apartments, based on a simple hope that art can build community. Across the street and half a block down from FLATS STUDIO is Everybody’s Coffee, located at 935 W Wilson, which is coffee shop that sells fair trade coffee, promotes art and music from community members. (Fig. 41 & 42) With such new businesses expanding along Wilson Avenue, beyond the Uptown Entertainment District, we believe that the 4557 N Sheridan location would be most ideal, not only because of its fiscal viability, but also due to the fact that Wilson Avenue is burgeoning with businesses that promote both art and culture of the local community, which aligns very much with STREAT Axis’ mission and vision.

The previous section identified the 4557 N Sheridan Rd. property as the site location for STREAT Axis. The site analysis/neighborhood right gives a general view of the area in which STREAT Axis will be located. It’s goal is to show the neighborhood structure of the surroundings; some of the most improtant destinations. Located just a few blocks northwest of the STREAT Axis site location is the Uptown Entertainment District. STREAT Axis’ site location is accessible by the redline stop, either the Wilson stop or the Lawrence stop just north. Lastly, the blue squares identify the growing entertainment, art businesses that are emerging just south of the Entertainment District. (Fig. 43)

Figure 43. Site Analysis of Streat AXIS location and surrounding spaces.

One of the main goals for STREAT Axis was to create an attractive, marketable Third Place space. The spatial organization for STREAT Axis (Fig. 44) helps visualize how this goal is made possible through spatial elements. Two key concepts of Third Places helped influence the spatial organization of the space: accessibility & accomodation and having a low profile. The interior space comprises of open, communal seating, a lounge area, and also space for performance and art. The exterior of the space includes open air seating both on ground level and on the rooftop and another platform for perfomances and art. The blue arrows represent the flow and connectivity of the space.

Figure 45. Rendering of STREAT Axis, front view. Figure 46. Rendering of STREAT Axis, front perspective view

These diverse elements project a welcoming atmosphere where people are able to interact with others and have choice in how they want to engage in the space. The renderings on the following pages give the user a conceptual design of the space. Figure 44. Spatial Organization Schematic Design for STREAT Axis

Figure 47. Rendering of STREAT Axis, front perspective view

Figure 49. Rendering of STREAT Axis, birdâ&#x20AC;&#x2122;s eye interior view Figure 48. Rendering of STREAT Axis, courtyard perspective

Figure 50. Rendering of STREAT Axis, interior perspective view

MOVING FOWARD 45

This proposal for a Third Place Social Enterprise in the form of STREAT Axis strikes a balance between the visionary and the practical, between what could happen in a neighborhood like Uptown that faces gentrification through social enterprise initiatives and what must be done now to ensure that all those who call Uptown home have an equitable say in its future.

organizations will better realize the potential positive impacts of this catalytic solution of a Third Place Social Enterprise.

It is important to acknowledge that this one catalytic proposal for the Uptown neighborhood curbing gentrification as a whole is difficult to imagine. There are many other forces in equitable neighborhood and community development that not only invests in, but also preserves communities. Affordable housing initiatives are vital in the preservation of long-time residents. Many of the social service organizations that have sustained throughout the years in Uptown are key players in investing in the livelihoods of many immigrant and refugee community members of Uptown.

• Creating a collaborative steering committee between key actors within neighborhoods, including Aldermanic offices, Chamber of Commerce, businesses, non-profit organizations and local community members to help the development strategies throughout this plan.

The vision and mission of STREAT Axis for the Uptown neighborhood are feasible and supported by both urban and social enterprise theories and in depth research and analysis and at the very least would contribute to the efforts currently taking place in the community. Implementation of such an approach would directly affect Uptown by creating new jobs and spur economic development. The hopes of this plan is to be used to help reimagine methods and processes to address gentrifying neighborhoods like Uptown, but steps need to be taken to share this plan with key actors in neighborhood revitalization and development. This being said, the ultimate purpose of STREAT Axis is to facilitate conversation that will serve to engage all actors in the Uptown community about the current challenges of gentrification that often divides rather than unites individuals in imagining the neighborhood’s future. If the plan is understood in this context, key people, businesses, and

In summary, these following recommendations are key to the jumpstart of STREAT Axis, not only within Uptown, but within any Chicago neighborhood that faces the threat of gentrification.

• Identifying under-utilized vacant buildings in neighborhoods, either publically or privately owned, to house the Third Place Social Enterprise, and to find adequate funding to allow for the acquisition, either rental or ownership of the building in order to sustain this model as a community anchor within the neighborhood. • Development of a management, ownership team of the Third Place Social Enterprise that engages in in depth research and analysis of both a marketable commercial business as well as a robust, impactful social program that adheres to the needs of the local community in employment, skills and workforce development. Through these three key recommendations, a new paradigm in neighborhood revitalization will take root throughout Chicago. The plan outlines specific strategies that invest in all community members in changing neighborhoods, new and old, and will spur attractive, welcoming commercial development while also investing in the success of the current community.

Appendix 1: Case Studies

Appendix 2: Capital Budget

Appendix 3: References and Sources References •

Social Enterprise Explained: For beginngers, wonderers, people with ideas, big and small. Social Enterprise UK, 2011

• Oldenburg, Ray. The Great Good Place: Cafes, Coffee Shops, Bookstores, Bars, Hair Salons, and Other Hangouts at the Heart of a Community. Marlowe & Company; 3rd edition (August 18, 1999) • Uptown, Chicago, Illinois, An Advisory Services Panel Report by the Urban Land Institute, p. 9. Link: http://www. ulichicago.org/PDFs/Uptown%202000.pdf • Uptown United: Community Development Guidelines. January 2009 • Griffiths, M. & Gilly, M. Sharing Space: Extending Belk’s (2010) “Sharing”. Journal of Research for Consumers, Issue 22, 2012 • Crump, B. & Logan, K. The Interplay of Third Place, Self-efficacy, Social and Human Capital in a New Zealand Community ICT Youth Project. Electronic Journal Infornation Systems Evaluation, Vol. 13, Issue 1, 2011. • Shrestha, S. & Appanah, S. Social Enterprise: The Guide. ysei.org

Photo Sources Cover Pages • 01 Concept: Image of Zone 9 in Hanoi: http://www.internationaltravellermag.com/hanois-hippest-new-hangout/ • 02 Area: Aerial photo of Uptown, Chicago: http://articles.chicagotribune.com/2014-01-15/entertainment/ct-ent0116-uptown-heat-20140116_1_uptown-theatre-uta-ii-uptown-entertainment-district • 03 Plan: Image of 4557 N Sheridan Road Location: Google Earth • 04 Design: Image of Melrose Market in Seattle, WA: https://www.djc.com/news/re/12021771.html • Moving Foward: Panoramic Image of Uptown, Chicago: https://en.wikipedia.org/wiki/Uptown,_Chicago Figures •

Sources for Figures listed in text

• IFF. Making a Facility Decision, Worksheet Number 6. Link: http://www.iff.org/resources/content/4/0/documents/ TA%20Worksheet%2006.pdf

•

The People’s Business: State of Social Enterprise Survey 2013, Social Enterpise UK, 2013

•

The Three Models of Social Enterprises. Venturesome, Charities Aid Foundation, 2008.

•

A Guide to Neighborhood Placemaking in Chicago. Project for Public Spaces and Metropolitan Planning Council. 2008