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The University of North Carolina at Pembroke:A Catalyst for Economic DevelopmentAugust 2016People Business CommunityNCGrowth.unc.edu

Brandi Bullock is an Economic Development Analyst withNCGrowth. She is also an MBA candidate in the School ofBusiness at the University of North Carolina at Pembroke.Brandi Bullock@kenan-flagler.unc.eduMeredith Bunnel is an Economic Development Analyst withNCGrowth. She is also an MPP candidate at the Sanford Schoolof Public Policy at Duke University and a licensed attorney(2008 JD, University of Pittsburgh).Meredith Bunnel@kenan-flagler.unc.eduCarolyn Fryberger is the Program Coordinator for NCGrowth.Carolyn received her Master’s Degree in City and RegionalPlanning from UNC Chapel Hill in 2014 with a specialization inEconomic Development.Carolyn Fryberger@kenan-flagler.unc.eduPeople Business Communitywww.NCGrowth.unc.eduNCGrowth, an EDA University Center at the University of North Carolina at ChapelHIll, was founded in 2012 to help businesses create good jobs and to helpcommunities create sustainable and equitable opportunities for their citizens. With apassionate staff and a dynamic pool of graduate student analysts, we partner withbusinesses, communities, governments, and other organizations to tackleoutcome-based economic development and entrepreneurship projects. NCGrowth isfunded by the Frank Hawkins Kenan Institute of Private Enterprise, US EconomicDevelopment Administration, GoldenLEAF Foundation, and Z Smith ReynoldsFoundation.

“The concept of highereducation has certainlymorphed from the old andrather “unengaged” ivorytower notion to a new,highly engaged,place-based orcommunity-basedconcept.”-Eugenie Birch, David C. Perry,and Henry Louis Taylor, Jr.Universities as Anchor Institutions (2013)

TABLE OF CONTENTS67INTRODUCTIONProject IntentExecutive Summary89COMMUNITY PROFILECommunity Profile: Pembroke, NCPembroke Business Landscape101112UNIVERSITY PROFILEOverview & HistoryEconomic ImpactCurrent Local Economic Engagement19ANCHOR INSTITUTION BACKGROUND & INITIATIVESOverviewAIED Project Types & ExamplesSuccess Stories:16 West Philadelphia Initiatives (Penn)17 The Evergreen Initiatives (Cleveland, OH)18 Fifth Season Cooperative (Wisconsin)Best Practices for Successful AIED Projects20212224OPPORTUNITIES & RECOMMENDATIONSSteering CommitteeCapacity Building & SustainabilityNext Steps: Vendor Ready InitiativeLooking Ahead: Future AIED Planning26REFERENCES141516

Project IntentWhy this Project? Why Now?Throughout 2016, UNCP developed this project with NCGrowth, an EDA University Center housed at theKenan Institute of Private Enterprise at UNC Chapel Hill. Dr. W. Stewart Thomas, Interim Dean of the UNCPBusiness School, spearheaded this effort under the direct instruction of UNCP Chancellor Robin G.Cummings.“UNC Pembroke is committed to serving as a driver for job creation in southeastern North Carolina.We do this by tapping the immense opportunities in our region and leading the way in overcomingchallenges to economic development.” -UNCP Chancellor Cummings, July 13, 2016Anchor institution-based economic development is premised on the idea that an institution like auniversity--with enormous purchasing power and deep roots in a particular location--has the ability to serveas a catalyst for economic growth within its community. By focusing more of its dollars and resources locally,UNCP has the power to serve as an economic engine in Pembroke, Robeson County, and Southeast NorthCarolina. When deciding among project ideas, the Chancellor’s office and other critical UNCP stakeholdersagreed that the primary focus of this initial project should be increasing local purchasing of goods andservices.UNCP is currently creating its Sustainability Strategic Plan, an effort being lead by Jay Blauser, UNCP’sDirector of Sustainability, and is also working to revamp its purchasing policies with the goal of exceedingstate-mandated minimum levels for local purchasing. Kim Locklear, UNCP’s Director of Purchasing, isinstrumental to that process, and also provided vendor-use data and expertise to NCGrowth’s analysts toallow them to investigate that facet of UNCP’s current local engagement. UNCP hopes to leverage theenergy and resources directed towards its sustainability and purchasing programs to increase the number oflocal goods and services purchased university-wide.NCGrowth analysts have spent the summer working with UNCP and the Entrepreneurship Incubator todevelop recommendations for anchor institution-based economic development planning. By researchingsuccessful initiatives in other communities and examining UNCP’s current economic relationship with thecommunity, they have developed a recommended list of immediate and future projectopportunities--projects that could increase not only local purchasing, but also access to local food, capacitybuilding and technical assistance for local business, and community partnerships meant to grow the localeconomy and foster a sense of community between UNCP and its hometown.6NCGrowth thanks Chancellor Cummings, Dr. W. Stewart Thomas,Carlton Spellman, Jay Blauser, Kim Locklear and James Freemanfor their collaborative efforts and commitment to makingthis ongoing initiative a success.

Executive SummaryAnchor institution-based economic development (AIED) is an emerging field of interest that rests on the idea that anchorinstitutions--permanently located, non-profit institutions like universities and hospitals--are stable economic engines with agreat deal of purchasing power. They have the potential to boost employment and wages in their localities throughtargeted purchasing and investment. UNCP’s administration, via the Chancellor’s Office and the School of Business,reached out to NCGrowth for research on AIED best practices, model projects, and recommendations for how UNCP canincrease its local economic engagement. UNCP’s initial goal for AIED project planning is to increase local purchasing.UNCP is capable of serving as an anchor institution in Pembroke, Robeson County, and Southeast, NC. The Town ofPembroke is the cultural, political, and economic seat of the Lumbee Tribe, the largest state-recognized tribe east of theMississippi River. The tribe comprises 57% of the town’s population; the remaining population is fairly evenly split betweenAfrican-American/Black and White residents. Only 20.3% of Pembroke’s population is under the age of 18.UNCP is the 5th largest employer in the county with more than 1,000 employees, and all five of the top five employers arepublic entities. The overwhelming majority of Pembroke’s private businesses are small ( 10 employees), and three of thetop five private employers are home healthcare businesses. Median household income ( 16,444) in Pembroke is less thanone-third that of the national median ( 53,482), and just over one-third of North Carolina’s median figure ( 46,693).AIED projects tend to fall into one of six categories: Targeted Purchasing, Community Investment, Technical Assistance,Building Capacity and Developing Leadership, School Partnerships, and Targeted Local Hiring. There are examples ofsuccessful projects in each category, but three of the most well-known and well-documented models are: 1) the WestPhiladelphia Initiatives undertaken by the University of Pennsylvania in concert with Penn Health System to increase localpurchasing, incubate local small businesses, and promote community safety and welfare; 2) the Fifth Season Cooperativefood hub in Wisconsin supported by multiple anchor institutions including local universities, school districts, and hospitalsystems; and 3) The Evergreen Initiatives in Cleveland, Ohio, which have created multiple employee-owned businesses thatnow contract with local universities and hospitals for laundry, energy, and food production services.UNCP has a number of community focused initiatives in place. In order to increase local purchasing and engage in AIEDmore generally, additional action is required. A team of key staff at UNCP has worked with NCGrowth to develop the firststeps of a long-term AIED plan: 1) The development of a Steering Committee and 2) a Vendor-Ready Initiative. Acommittee is critical to AIED planning because by its very nature, AIED is a team effort. Stakeholder and communityinvolvement is required at every stage--goal setting, planning, implementation, and on-going evaluation--to ensure aprogram’s feasibility and efficacy. The Committee should be comprised of key stakeholders and/or their designatedrepresentatives; each member must be empowered to make decisions on their organization’s behalf and committed to thelong-term goals of creating jobs and building community wealth.If successful, the Vendor Ready Initiative will serve as an important first step in increasing the number of local goods andservices purchased by the university. At the initial working meeting between UNCP and NCGrowth, the team membersidentified a solvable problem: few qualified local businesses were competing for UNCP contracts due to 1) acommunication gap between UNCP’s designated purchasers and potential local vendors and 2) some eligible localbusinesses are not registered as vendor. The Vendor Ready Initiative is intended to bridge both of those gaps throughVendor-Ready Workshops, information sharing, technical assistance, and increased advertising efforts of availableuniversity contracts to local businesses. Looking ahead, UNCP also has opportunities to build on its SustainabilityStrategic Plan, UNCP Serve program, resources available at the Entrepreneurship Incubator, and other existingprogramming and activities to increase its economic impact at home.7

Community Profile:Pembroke, NCPembroke is the economic,cultural, and political seat of theLumbee Indian Tribe of NorthCarolina, the largeststate-recognized NativeAmerican tribe east of theMississippi River. The LumbeeTribal Complex is located lessthan 2 miles from downtownPembroke.Of the town’s 3,004 inhabitants,1,717 (57%) identify in part orfully as being of American Indiandescent; the additional 43%,identify as either Black/AfricanAmerican (28.1%), White (19.3%),and only .2% Asian. Thispredominantly triracial blendcreates a unique atmosphere inthis community that welcomesdiversity and embraces Lumbeeheritage.Population: 3,004Pembroke’s population is relativelysteady. From 2000-2015, population isestimated to have increased:1% in Pembroke.02% in Robeson County5% in North CarolinaPembroke is also home to theUniversity of North Carolina atPembroke. Originally founded asan American Indian institution,the school has since beenincorporated into the UNC statesystem.The town’s population skewsslightly female (58% female,42% male). Only 20.3% of thepopulation is under age 18.77% of the over 25 populationhas a high school diploma, butonly 19.3% of those over 25 havea bachelor’s degree.8*All data retrieved from US Census Bureau (www.census.gov), interpretedby authors.