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The Arts Ripple Effect
             “It is in the best interest of
          every business – no matter its
                 size – to support the
             arts. Beyond their intrinsic
              value, the arts add to the
         economic vitality and quality of
          life of our communities. They
          also unleash creative ideas in
         and out of the workplace, foster
               dialogues and increase
         understanding among people.”

         - Henry W. Bloch
The Arts Ripple Effect

• Benefits to our Region
   –Economic Driver
   –Building Community




“A creative economy is the fuel of magnificence.”
-Ralph Waldo Emerson
Facts about the Arts and Economic
    Development in the Kansas City Region
• Tourism in Greater Kansas City
  generated $641 M tax revenue in
  2010
   – $135 million in state taxes
   – $179 million in local taxes
   – $329 million in Federal taxes
• Near 43,500 jobs with associated
  income of $1.4 billion were
  sustained by visitors to the
  Kansas City region last year
  Kansas City Convention & Visitors Association 2010
Facts about the Arts and Economic
    Development in the Kansas City Region

• Kansas City hosted 21.6 million
  visitors in 2010; up 3.7% in 2010,
  after a 5.7% decline in 2009
• Slightly less than half of guests
  arrived (48%) for overnight visits
• Among the 10.4 million overnight
  guests, 83% came for leisure
• Visitors to Kansas City spent
  $2.6 billion in 2010

  Kansas City Convention & Visitors Association 2010
Facts about the Missouri Arts Council
• The Missouri Department of
  Revenue’s collection of income tax
  from Non-resident Professional
  Athletes and Entertainers for FY2011
  totaled $29.5 million.
• By statute (RSMo143.183) “60% of
  the annual estimate of taxes
  generated from the nonresident
  entertainer and professional athletic
  team income tax shall be allocated
  annually to the Missouri arts
  council trust fund.
Facts about the Missouri Arts Council
• A minimum of $3 million transferred to
  the MAC Trust Fund from the state’s
  revenue from the Athletes’ and
  Entertainers’ Income Tax is required
  annually in order to fulfill the contract
  amendments between Capital
  Incentive Project participants and the
  MAC Trust Board which triggers a 5%
  pay out.
• For the past two years $0 have been
  transferred.
• The Kansas City area should
  receives approximately $300,000 of
  the $600,000 issued.
Facts about the Missouri Arts Council
•  In FY2011 the Missouri Arts Council
  awarded $7 million to 596
  organizations in 132 Missouri
  communities.
• MAC grantees provided 6,404 full and
  part-time jobs and hired over 47,900
  artists.
• MAC grantees paid $121 million in
  salaries, which generated about
  $3.6 million in state tax revenues.
• MAC grantees generated $154 million
  in revenue.
Facts about the Missouri Arts Council in
           the Kansas City Region

• The Kansas City region received 1.2
  million from the Missouri Arts
  Council this budget year. Those
  monies were matched privately one
  to one for an additional 1.2 million
  dollars.
• The Nonprofit Arts Industry in
  Missouri generates $1.1 billion in
  statewide economic activity.
Community Building
• Arts create a place where
  people want to be
• The arts magnetize
  communities by creating
  shared experience
• The arts can also build a
  community through
  intergenerational activity
Governors Summit
The Growing Creative Industries

         • Creative class studies have
           focused on the arts as an
           environmental attraction
           – The artistic cachet of a city is an
             important asset that supports the
             lifestyle of the creative workers
           – Neighborhoods with higher
             concentrations of arts activity have
             higher levels of neighborhood
             commitment and involvement
21st Century Work Skills
• Innovation & Design will drive the economy
  of the future
• The four C’s of the 21st Century
  – Creativity
  – Collaboration
  – Communication
  – Critical Thinking
21st Century Work Skills

• Artists engage in creativity,
  collaboration, communication,
  and critical thinking on many
  levels
  - The four C’s are at the heart of
    many artistic processes
  - The arts act as a means of
    inspiring creativity and
    innovation
Private Public Partnerships
• The vision of Business
  and Civic Leadership
  – Growing Recognition
    that arts/culture and
    business all work
    together
  – The Arts and Artists as
    Creative Place Makers

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The Arts Ripple Effect

  • 1. The Arts Ripple Effect “It is in the best interest of every business – no matter its size – to support the arts. Beyond their intrinsic value, the arts add to the economic vitality and quality of life of our communities. They also unleash creative ideas in and out of the workplace, foster dialogues and increase understanding among people.” - Henry W. Bloch
  • 2. The Arts Ripple Effect • Benefits to our Region –Economic Driver –Building Community “A creative economy is the fuel of magnificence.” -Ralph Waldo Emerson
  • 3. Facts about the Arts and Economic Development in the Kansas City Region • Tourism in Greater Kansas City generated $641 M tax revenue in 2010 – $135 million in state taxes – $179 million in local taxes – $329 million in Federal taxes • Near 43,500 jobs with associated income of $1.4 billion were sustained by visitors to the Kansas City region last year Kansas City Convention & Visitors Association 2010
  • 4. Facts about the Arts and Economic Development in the Kansas City Region • Kansas City hosted 21.6 million visitors in 2010; up 3.7% in 2010, after a 5.7% decline in 2009 • Slightly less than half of guests arrived (48%) for overnight visits • Among the 10.4 million overnight guests, 83% came for leisure • Visitors to Kansas City spent $2.6 billion in 2010 Kansas City Convention & Visitors Association 2010
  • 5. Facts about the Missouri Arts Council • The Missouri Department of Revenue’s collection of income tax from Non-resident Professional Athletes and Entertainers for FY2011 totaled $29.5 million. • By statute (RSMo143.183) “60% of the annual estimate of taxes generated from the nonresident entertainer and professional athletic team income tax shall be allocated annually to the Missouri arts council trust fund.
  • 6. Facts about the Missouri Arts Council • A minimum of $3 million transferred to the MAC Trust Fund from the state’s revenue from the Athletes’ and Entertainers’ Income Tax is required annually in order to fulfill the contract amendments between Capital Incentive Project participants and the MAC Trust Board which triggers a 5% pay out. • For the past two years $0 have been transferred. • The Kansas City area should receives approximately $300,000 of the $600,000 issued.
  • 7. Facts about the Missouri Arts Council • In FY2011 the Missouri Arts Council awarded $7 million to 596 organizations in 132 Missouri communities. • MAC grantees provided 6,404 full and part-time jobs and hired over 47,900 artists. • MAC grantees paid $121 million in salaries, which generated about $3.6 million in state tax revenues. • MAC grantees generated $154 million in revenue.
  • 8. Facts about the Missouri Arts Council in the Kansas City Region • The Kansas City region received 1.2 million from the Missouri Arts Council this budget year. Those monies were matched privately one to one for an additional 1.2 million dollars. • The Nonprofit Arts Industry in Missouri generates $1.1 billion in statewide economic activity.
  • 9. Community Building • Arts create a place where people want to be • The arts magnetize communities by creating shared experience • The arts can also build a community through intergenerational activity
  • 11. The Growing Creative Industries • Creative class studies have focused on the arts as an environmental attraction – The artistic cachet of a city is an important asset that supports the lifestyle of the creative workers – Neighborhoods with higher concentrations of arts activity have higher levels of neighborhood commitment and involvement
  • 12. 21st Century Work Skills • Innovation & Design will drive the economy of the future • The four C’s of the 21st Century – Creativity – Collaboration – Communication – Critical Thinking
  • 13. 21st Century Work Skills • Artists engage in creativity, collaboration, communication, and critical thinking on many levels - The four C’s are at the heart of many artistic processes - The arts act as a means of inspiring creativity and innovation
  • 14. Private Public Partnerships • The vision of Business and Civic Leadership – Growing Recognition that arts/culture and business all work together – The Arts and Artists as Creative Place Makers

Editor's Notes

  1. One of our community leaders said it well when he recognized this idea of the arts ripple effectWhy the Arts – What has been the value proposition?To create a great citySafety – Education – Cultural amenities
  2. Mention both economic driver and creating community & elaborate on both pointsSurprising effect - all benefit regardless of participationOne, economic vitality – the arts act a economic engine – more galleries, theaters, and concerts create vibrant and thriving neighborhood – they led to more energy and life in a community, renovated building, they create an appealing place- encouraging tourism. The development of the crossroads is an excellent example of this.  
  3. Arts & Cultural Organizations produce $279 million in economic impact for KC metro region. - study in 2004 – new Study for 2010 – expect roughly 300 MThe direct economic benefits are source of employment, those who work in arts industries (both artists and related arts workers), tax revenues, and spending for local communities. industries that directly supply arts organizations with goods and services, and in industries that benefit from providing services (e.g., food, lodging, parking) to arts consumers. For tax revenues this includes governments who collect income, sales, and property taxes on incomes, purchases, and real property of arts and related industries and their employees and consumers and the increases in overall economic activity (spending and employment) that the arts industry adds to a local market through a multiplier effect Indirect economic benefits are those that result when the arts attract individuals and firms to locations where the arts are available. These benefits hinge on the attraction the arts offer to particular classes of workers (skilled) and firms (high value-added), an attraction that strengthens the local economy and promotes economic development (Florida, 2002).Young people are choosing where to live – then looking for a job
  4. Sprint center article from April 13 – despite difficulties with attracting a sports team – more paid on the bond than expectedRanks #11 in the world for highest attendance and gross revenues - Mention NPR article regarding the possibility of a sports team coming in and the reluctance to do so because of competing dates – never thought I’d ever hear that!#2 in the country – US
  5. Sprint center article from April 13 – despite difficulties with attracting a sports team – more paid on the bond than expectedRanks #11 in the world for highest attendance and gross revenues - Mention NPR article regarding the possibility of a sports team coming in and the reluctance to do so because of competing dates – never thought I’d ever hear that!#2 in the country – US
  6. Sprint center article from April 13 – despite difficulties with attracting a sports team – more paid on the bond than expectedRanks #11 in the world for highest attendance and gross revenues - Mention NPR article regarding the possibility of a sports team coming in and the reluctance to do so because of competing dates – never thought I’d ever hear that!#2 in the country – US
  7. Sprint center article from April 13 – despite difficulties with attracting a sports team – more paid on the bond than expectedRanks #11 in the world for highest attendance and gross revenues - Mention NPR article regarding the possibility of a sports team coming in and the reluctance to do so because of competing dates – never thought I’d ever hear that!#2 in the country – US
  8. Sprint center article from April 13 – despite difficulties with attracting a sports team – more paid on the bond than expectedRanks #11 in the world for highest attendance and gross revenues - Mention NPR article regarding the possibility of a sports team coming in and the reluctance to do so because of competing dates – never thought I’d ever hear that!#2 in the country – US
  9.   Two – there is a benefit in people coming together and having shared experiences – connecting shared ideas and learning from each other – sharing multiple perspectives. The arts can bridge the gaps between gender, race, and social class - in essence creating a stronger community that works together.Arts create a place where people want to beThe arts magnetize communities by creating shared experienceThe arts can also build a community through intergenerational activityThe Arts can also build or magnetize a community through intergenerational activity. Based on the theory of social capital that the arts magnetize through intergenerational activity, teenagers are often the missing link in social capital theory. Informal, amateur arts activity is one of the few places outside family and schools where adults, college students, and teenagers interact freely and willingly with one anotherChildren performances recitals – parents/grandparents/uncles/aunts etcResearchers have demonstrated that arts activities are desired by neighborhood residents, whether or not they are high-pay “creative” workers, and that neighborhoods with higher concentrations of arts activity have higher levels of neighborhood commitment and involvement. This magnetization of neighborhoods through the arts (as well as other activities) is associated with higher levels of neighborhood stability and/or improvement (Taylor, September 2008). In his work, City: Rediscovering the Center, sociologist William H. Whyte summarized the results of several years of videotaping plazas, intersections, and other public spaces in recommendations to planning and zoning commissions on the design of urban areas to maximize their public use and enjoyment (1988). One of Whyte’s principal recommendations was to encourage street performers and other kinds of amateur arts presentation because arts are fun and they create a place where people want to be. NTDF supports these types of activities
  10. A region’s arts and cultural landscape is one of the key decision factors for companies looking at relocation opportunities. Kansas City Area Development CouncilNeil NewhouseSummarze presentation to this point – Arts are economic driver – Arts can build create community
  11. Young folks choosing where to live and then finding a jobCreative class studieshave focused on the arts as an environmental attractionThe artistic cachet of a city is an important asset that supports the lifestyle of the creative workersNeighborhoods with higher concentrations of arts activity have higher levels of neighborhood commitment and involvement Demanding a vibrant and interesting social and night lifeThe Creative Economy is a reality, we need to embrace this new reality and recognize the role the Arts will play in the future of our neighborhood, city, and metropolitan region.More recently, creative class studies have focused on the arts as an environmental attraction by which cities lure high-value-added creative industries. The artistic cachet of a city is an important asset that supports the lifestyle of the creative workers in those industries—computer and math scientists, architects, engineers, social scientists, designers, and entertainers.HNTB Story of attracting top talent to KC - How do you compete? - For many businesses needing to attract and keep talented employees, the arts offer an incentive to relocate and remain in the greater metropolitan area
  12. A growing number of corporations and businesses around the country are becoming increasingly concerned that what we teach to students is not preparing them for our changing economy and providing them with the skills necessary to succeed in that economy.  - based on the work of Daniel PinkNo longer are the 3 R’s of reading Writing and Arithmetic enough Described as the four C’s of the 21st Century, these skills include: Creativity, Collaboration, Communication, and Critical Thinking. 
  13. Artists engage in creativity, collaboration, communication, and critical thinking on many levels.  The four C’s are at the heart of many artistic processes. But this is not just an artistic endeavor or an aesthetic exercise in pursuit of beauty or excellenceto collaborate and communicate with one another. These are the skills needed by our future workforce It has the potential to change the way people see the world and their place in it. From this new vantage point, new connections are made, new possibilities seen, and New opportunities created. Because the arts helped them experience the authentic creative process, aesthetic experiences opened them to deeper connections to the world and each other, Fostering both insights into customer needs and creative responses to them.
  14. The vision of leaders – workable partnershipsGrowing Recognition that arts- culture-and entertainment all work togetherThis was led for the most part by private and business interests working together with some support by the public The Arts and Artists as Creative Place Makers