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Why Weird is Good October 5, 2013

Posted by investtoronto in Uncategorized.
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Why Weird is Good

“Keep Austin Weird” all makes sense when you spend a few days exploring this creative-class city. Self proclaimed, but not overly challenged, “live music capital of the world” this city lives, breathes and sings music.

On our trade mission this week it is clear that the success of the moniker and the delivery of the value proposition is a combination of intent and luck, strategy and serendipity, art and science. Many cities have natural advantages and circumstances that do not seize the moment and continue to grow the opportunity as well as Austin has.

Our delegation met with civic officials from groups found in any city like the Chamber of Commerce, Economic Development, The Convention and Visitor Bureau. We also met with other groups not always found in all cities live Austin Music People, the Austin Music Foundation, Pachanga Latino Festival, C3 Partners and a host of other groups that supported the music industry. What was remarkable was not the existence of these groups but how integrated they were in the city’s strategy. Nearly everyone we met was very well versed with the roles of the other groups and spoke regularly to each other. From the city governance process to the specific event planning by the private sector it was clear these folks worked together often and by all accounts usually well.

We also learned very interesting lessons on the economic impact of music and creative industries on Austin. Now a “largish” city as the 11th largest in the US (through rapid growth from a mid-tier city) the impact of music and creative industries is disproportional to what is even experienced in many “cultural” megacities. In 2010 Austin experienced $4.35 billion in economic activity in these sectors of which $2 billion was value- add. The 2012 report that details this was reviewed with us by the city economist (now do all cities have economists?) Jon Hockenyos.

Beyond the pure economic output, the impact of the “liveability” and talent attraction factors was undeniable. Many of the under-40 set we met were transplants from all over the US and indeed the world. Almost unfailingly they mentioned the music scene as an important factor in their decision to locate in Austin. The fact that Google Fiber, who we also visited with, has chosen Austin as the next city to roll-out their metro fiber project was a strong endorsement of the attractiveness of this market. In fact this city now has seen AT&T enter the fray as well to install a second fiber network.

However Austin does face challenges now as they grow. The downtown core, formerly like a typical southern US city was almost a “daytime” only CBD. Only recently, of course attracted by the culture and music, has Austin seen a mini building-boom in downtown residential projects. Previously surface parking lots and 8 a.m. to 6 p.m. tenants were the norm. Tensions have started, albeit just mild now, between residents and the live performance venues. Also, currently Austin has city-wide councilors. They will be moving to district representation (similar to the ward representation we have in Toronto). Now an individual councilor will have the interest of a smaller district to balance against city-wide interests (and votes!). So Austin is hitting some scalability issues but that does not take away from their success and hopefully continued ability to grow.

So what does this “weirdness” all mean for Toronto? Well Toronto was identified, with envy by everyone we met as having a very vibrant music scene. The private sector folks like the “Charlies” of C3 were very well versed with Toronto and have been looking for an opportunity to “kick it” in our market. In fact they expect to export their successful Food and Wine Festival to Toronto next June. The opportunity to grow an organic music festival “like” ACL (but not a copy) was met with enthusiasm by all the Charlies.

Our own music sector folks have been the real heroes building up the music scene in Toronto. Guys like Mike Hollet and Mike Tanner from NXNE, Jeff Cohen from Collective Concerts, Jesse Kumagai from Massey Hall, Jacob Smid from LiveEnt and Elliot Lefko from Goldenvoice have been building a phenomenal industry. Of course Music Canada’s Graham Henderson and Amy Terrill have been advocating tirelessly on behalf of the industry.

Toronto has more than all the basics to be a top music destination especially for live music. We have most (some key outdoor ones need to be worked on) of the venues, the artists, the promoters, the indie labels (maybe the most for a city in North America). Also now we have City Hall’s attention. The Mayor’s trip along with the councilors clearly indicates they are ready to move ahead. The next step would be to establish a music facilitator right in city hall that would help connect industry to governance. Just as our filmed office has helped transform the industry in the city as an anchor for the economy, this role would help look for reason to say “yes” to more live performances and special events. Unlike Austin, we have a dense urban core so we need to balance resident interests against music goers’ interest. This is manageable but non-trivial.

Also we need to start building up our own iconic musical festivals even further. Festival like NXNE, Edgefest, Veld, Riotfest and others must be embraced as economic opportunities not nuisances. We also need to find a space and start experimenting with creating larger outdoor festivals in the mold of ACL or SXSE. Everything from permitting, city services, resident collaboration and economic development strategic planning need to integrate this sector into plans and programs. We even need to think about our city planning and built space and how it can create multi-use venues that allow the coexistence of festivals and great public spaces.

Austin will continue to keep its cool weirdness. Toronto can grow its own form of music expression that is unique, global and economically lucrative. This city has too much of the right stuff when it comes to culture and the arts, particularly the music scene not to develop our own uniqueness weirdness.

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