Economy revs up in University Park

By Betty Lin-Fisher
and Cheryl Powell
Beacon Journal staff writers

Published on Wednesday, Apr 27, 2011

The major anchor institutions located in or near University Park have a direct total economic impact of $2.5 billion within the area and an indirect impact of $3.5 billion within Ohio, according to a new study released Tuesday.

University Park is a 50-block neighborhood surrounding the University of Akron. The University Park Alliance is a nonprofit community development corporation whose mission is to transform the area and its surroundings through economic and real estate development and social and civic engagement.

The study commissioned by UPA was designed to measure the economic impact of the area's major anchor institutions — Akron Children's Hospital, Akron General Health System, Akron Public Schools, Summa Health System and the University of Akron. It is seen as a building block for long-term economic development for Akron and the region, said Eric Anthony Johnson, UPA executive director.

The study focused on the five institutions that are among the partners in UPA, even though there are several more large partners within UPA, to coincide with what is called the ''eds and meds'' model used in other communities for economic studies, Johnson said. ''Eds and meds'' refers to educational and medical facilities.

''When the numbers came out, it validated what most of us knew: these pieces combined really represent some significant economic horsepower for the city of Akron and the region,'' Johnson said.

Among the study's findings:

• Eight of Akron's 10 largest employers are located in or within close proximity to University Park: Summa, Akron General, Summit County offices, Akron Public Schools, UA, Goodyear, FirstEnergy and Children's.
• Anchor institutions have 15,457 employees, and the study said another 5,155 can be counted as jobs from other businesses in the state that are related to those anchors.
• Anchor institutions generate about $150 million in local and state taxes through operations, employment and spending statewide.
• Health care and education are the largest employers and economic drivers in University Park.

The UPA is finishing its first year of a different type of operation after it merged with another group to become a community development corporation. The goal was to take on a more active role in the revitalization of the University Park area. Now the UPA is in the midst of putting together a plan for development.

''We're finally starting to get to the point where we get some good data that you could show to a potential developer or investor potentially locating to this area or a housing marketer,'' said Tony O'Leary, UPA board president and executive director of alliance partner Akron Metropolitan Housing Authority.

O'Leary said the results of the economic impact study were ''a surprising articulation of the numbers being much higher than most of us would have probably guessed.''

While the study only included the five anchor institutions in the ''eds and meds'' model, there are still a number of other large employers in the UPA area that could bump the economic impact even higher, O'Leary said.

As Summit County's largest private employer, Summa contributes more than $2.8 billion annually in total economic impact, according to a health system report released last year. Summa — one of the original partners in UPA — is finalizing an updated economic impact study for the health system.

''I remain very excited about the opportunity to revitalize the University Park area and I am extremely optimistic that the vision set forth by the University Park Alliance will be achieved,'' Summa President and Chief Executive Thomas J. Strauss said in a prepared statement. ''There is still a great deal of work to be done, but the economic impact analysis shows that with the continued collaborative involvement of the partners, we can make a significant impact on the entire community.''

Akron General also makes a strong contribution to the local economy, with $307 million in wages and benefits paid in 2010, according to spokesman Jim Gosky.

''Akron General Health System is proud to serve as a catalyst for economic development within the University Park area, as well as the entire region,'' President and Chief Executive Vincent J. McCorkle said. ''With nearly 4,000 employees working proximate to the UPA area at Akron General Medical Center, we hope to support the many businesses that comprise University Park. We believe there is a bright future for this region and we look forward to collaboration with the UPA to achieve its goals.''

Summit County Executive Russ Pry said the UPA's economic impact study results are impressive. The alliance and the work being done also show one of the strengths of the community, he said.

A second part of the study analyzes some ''baseline redevelopment indicators'' that the UPA will work toward to measure over time. For instance, the study says that the median age in 2010 for the University Park area is 29 while the average age is 33. Five years from now, the median age is projected to be 30. The population tends to be younger in the University Park area than nationally or statewide, primarily attributable to the University of Akron and its undergraduates and graduate students, the study said.

The report also breaks down various industry indicators and in one area, for example, shows the retail market power and opportunity gap between what is offered and what could be offered.

Based on metrics taken from the U.S. Bureau of Labor Statistics and U.S. Census supply data, for example, the 2010 demand for groceries or other food industries in the University Park area is $33.9 million while the supply is $27.5 million, Johnson said. That leaves an opportunity gap of $6.4 million. That type of data will be helpful as investors are recruited for the area, he said.

''The nature of this study was really intended to highlight and unveil the potential that most everybody knew was there in the combined economic power of these anchor institutions that we believe holds great promise for the future of Akron to help us build a diverse economy,'' Johnson said. ''With these pieces in place, we have the pieces to start to build around.''

Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com.

Cheryl Powell can be reached at 330-996-3902 or chpowell@thebeaconjournal.com.