This brief tells the story of Crane Arts, the conversion of Crane Plumbing Company’s 1905 factory and warehouse in Philadelphia\u27s Old Kensington, to affordable artist studio and gallery space. In spring 2004 two artists and a developer--Crane Arts LLC—purchased the property and began the challenge of rehabilitation of a century-old factory in a former manufacturing district. Along the way, they heard about TRF’s lending activities, including commercial real estate in urban neighborhoods. The Crane Arts project was a perfect fit for TRF, which views the arts as critical to the health of a community and invests in projects that have the potential to catalyze revitalization in Philadelphia neighborhoods. The success of Crane Arts has encouraged TRF to finance other artist centers in Philadelphia

Social Impact of the Arts Project (SIAP)

The Reinvestment Fund

English

ScholarlyCommons@Penn

University of PennsylvaniaScholarlyCommonsCulture and Community Revitalization: ACollaboration Social Impact of the Arts Project8-2007Crane Arts: Financing Artists’ WorkspacesThe Reinvestment FundSocial Impact of the Arts Project (SIAP)Follow this and additional works at: http://repository.upenn.edu/siap_revitalizationPart of the Art Practice Commons, and the Urban Studies and Planning CommonsThe Culture and Urban Revitalization project was a collaboration between SIAP and The Reinvestment Fund (TRF), a community developmentfinancial institution, with support by the Rockefeller Foundation.This paper is posted at ScholarlyCommons. http://repository.upenn.edu/siap_revitalization/3For more information, please contact repository@pobox.upenn.edu.The Reinvestment Fund and Social Impact of the Arts Project (SIAP), "Crane Arts: Financing Artists’ Workspaces" (2007). Cultureand Community Revitalization: A Collaboration. 3.http://repository.upenn.edu/siap_revitalization/3Crane Arts: Financing Artists’ WorkspacesAbstractThis brief tells the story of Crane Arts, the conversion of Crane Plumbing Company’s 1905 factory andwarehouse in Philadelphia's Old Kensington, to affordable artist studio and gallery space. In spring 2004 twoartists and a developer--Crane Arts LLC—purchased the property and began the challenge of rehabilitation ofa century-old factory in a former manufacturing district. Along the way, they heard about TRF’s lendingactivities, including commercial real estate in urban neighborhoods. The Crane Arts project was a perfect fitfor TRF, which views the arts as critical to the health of a community and invests in projects that have thepotential to catalyze revitalization in Philadelphia neighborhoods. The success of Crane Arts has encouragedTRF to finance other artist centers in Philadelphia.DisciplinesArt Practice | Urban Studies and PlanningCommentsThe Culture and Urban Revitalization project was a collaboration between SIAP and The Reinvestment Fund(TRF), a community development financial institution, with support by the Rockefeller Foundation.This policy brief is available at ScholarlyCommons: http://repository.upenn.edu/siap_revitalization/3	 August	2007They found it in the form of the Crane Plumbing Company, a former factory and warehouse built in 1905 in Old Kensington, once the manufacturing center of Philadelphia. While American Street was once alive with industry, commerce and jobs, the area fell apart during Philadelphia’s deindustrialization and subsequent disinvestment, leaving vacant warehouses and homes. In the increasingly competitive arts market, available and affordable space is a rare asset, an asset that this neighborhood happened to have. Located north of the expensive and expanding Center City, the property values in this area were affordable, since the area had yet to be targeted by developers and investors. With plans to redesign the old warehouse around the needs of artists, the partners – Crane Arts LLC – bought the main building and the two other vacant spaces on site in March 2004. Crane Arts LLC then faced the challenges familiar to small business entrepreneurs and developers reimagining urban industrial spaces: how do we finance the rehabilitation of a century-old factory? how do we navigate the public system’s maze of rules and regulations? how do we generate interest for a new artist space? Over the next two years, the partners poured themselves into the project and have successfully redefined the 1400 block of American Street with four stories of artist work spaces and a gallery now renowned in Philadelphia’s art scene.  But almost all this work was initially financed at their own expense: “We had three financers: Visa, Mastercard and American Express,” they joke. With the exception of a small bank loan and help from friends and family, the partners shouldered the financial burden until they could show investors that there was enough demand to keep the project afloat. Just as the partners were beginning their building search, artists throughout the city – especially in the up-and-coming neighborhood of Northern Liberties – were displaced by developers buying out spaces to create luxury condos. When Richard Hricko and Nicholas Kripal invited their Tyler graduate students to put on an exhibit in the newly purchased Crane Arts, they immediately sparked the interest of local artists in need of work space. “That was probably the smartest thing we ever did,” recalled Kripal. “They came, they brought their friends and their friends’ friends, and people got to know about us. People would be shocked to know how many artists there are in Philadelphia, and how many need affordable space.” Since that point, there has been a waiting list of artists eager to rent studio space at Crane Arts. Crane Arts LLC came to The Reinvestment Fund (TRF) with this waiting list in hand in November, 2006, a few months after the first tenants set up in their studios. They had heard about TRF’s Crane Arts Financing Artists’ Workspaces   When Nicholas Kripal discovered that the artist studio he managed in Roxborough, Philadelphia was going to be turned into an assisted living complex, he decided that it was time to make a change. The artist and professor from the Tyler School of Art at Temple University had watched his last studio space turn into condominiums, and after being moved twice against his will, he knew he needed something more permanent. “I couldn’t do it alone,” he said, “so I had to do it with a group of people that worked well together.” One partner was Richard Hricko, a fellow artist and professor at Tyler; when they contacted David Gleeson, a developer with a particular interest in the arts, he joined their search for the perfect studio and gallery space.Creativity & Change  A collaboration of the Social Impact of the Arts Project and The Reinvestment Fund funded by The Rockefeller Foundation	 Creativity & Changelending activities, which include commercial real estate projects in urban neighborhoods. Over the years, TRF’s portfolio has included many loans that support arts organizations, small cultural businesses, arts-related charter schools, and arts-related real estate projects; 5% – or $30 million – of the portfolio is tied to the creative sector. The Crane Arts project was a perfect fit for TRF, which views the arts as critical to the health of a community and invests in projects that have the potential to catalyze revitalization in various Philadelphia neighborhoods. In fact, the success of the Crane Arts project has encouraged TRF to finance other artist centers throughout Philadelphia.   “They had a great need to borrow from us, it was a viable project, and they couldn’t see just how great the project was,” recalls Don Hinkle-Brown, the head of TRF’s lending and community investment activities. Don was especially impressed by the deposits and reservation agreements that accompanied the list, and felt that the partners’ artistic careers guaranteed the credibility of the demand. Crane Arts’ affordable rental prices and commitment to emerging artists ensured that the audience would remain broad, for the center wouldn’t be limited to established artists. In addition, financing a project in Old Kensington complemented TRF’s community development approach, which focuses on building from strengths. TRF had identified this section of North New	Markets	Tax	CreditsThe New Markets Tax Credit (NMTC), administered by the United States Treasury’s Community Development Financial Institutions Fund, was created in 2000; it encourages private-sector equity and loan capital investment in low-income areas to stimulate economic opportunity and create jobs in areas that most need it. The NMTC Program permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles such as TRF. The credit provided to the investor totals 39 percent of the initial value of the investment and is claimed over a seven-year credit allowance period. To date, TRF has received two NMTC allocations from the U.S. Department of the Treasury. In 2004, TRF received a $38.5 million award and in 2006, TRF received a $75 million award. Traditionally, NMTC has financed large scale, multi-million dollar projects in low-income communities. Despite high demand, the complex nature of the transactions and expensive legal costs made NMTC loans prohibitive for smaller borrowers. But that has changed with TRF’s innovative NMTC pool. Partnering with TransCapital and Morgan Stanley, TRF has structured a $40 million NMTC fund that is capable of financing multiple projects with sizes averaging $5 million. The blanket fund allows TRF to aggregate capital and cap legal costs so that smaller deals can benefit from the combined scale. TRF was able to use this flexibility to invest $4.2 million in Crane Arts LLC.  Crane	Arts	Building“People would be shocked to know how many artists there are in Philadelphia, and how many need affordable space.”	 | 	 	August		2007Crane ArtsPhiladelphia as an area where targeted investments could make a real difference in reactivating the market. TRF had hoped to finance a project of scale in the neighborhood that would build off other investments in the area; Crane Arts was just that project. When he looked at all the pieces together, “it was an easy decision!” Don shared.Artist	CentersAnn Markusen, the Director of the Project on Regional and Industrial Economics from University of Minnesota’s Hubert H. Humphrey Institute of Public Affairs, has spent a good deal of time researching the effect that artist centers can have on artists, communities and regional economies. The research is based on the proliferation of artist centers in Minneapolis-St. Paul, Minnesota.The report, Artists’ Centers: Evolution and Impact on Careers, Neighborhoods and Economies,  describes both the synergy created when artists work in the same space, and the cost benefits of sharing equipment and space that otherwise would have been unaffordable. Artist centers have become important fixtures in their communities, for many have arts programming and educational classes for youth, identity groups, and adults. The process of creating studio space frequently involves rehabilitating underused properties and turning them into “unique cultural destinations” that draw tourists and art-lovers from the area. Lastly, the research describes the role artist centers play in a regional economy; it suggests that artistic presence and talent can add economic value to the overall production and distribution of goods and services that ultimately result in a stronger regional economy.  The report includes policy recommendations that would encourage the growth and success of artist centers. One recommendation – echoed by many in the field – is for public and nonprofit policymakers involved in economic development, urban planning and cultural policy to acknowledge the role of arts and artist centers in revitalizing neighborhoods. Research and recommendations like this can help advocate for artist centers such as Philadelphia’s Crane Arts.          Crane	Arts	Artists’	WorkspaceUsing its New Markets Tax Credit (NMTC) program, TRF was able to continue financing projects that enhance the arts’ ability to impact communities. In 2006, TRF invested $4.2 million in Crane Arts LLC, money that helped the partners pay back existing loans. The size of the loan guaranteed that the partners could pay off all outstanding debts, continue their renovations, and plan construction on the factory’s old stables. “TRF is more of a patient investor, not as skittish or jittery, and not subject to the whims of the market,” remarked Gleeson. And with this loan, Crane Arts LLC has been able to continue pursuing its vision of having Crane Arts become a hub of the Philadelphia arts scene. The building buzzes with activity: the new website advertises various, year-round exhibits; visitors traipse through the center on North Philadelphia’s “Second Thursdays” gallery nights; the Philadelphia Fringe Festival puts on performances there every fall; and the list goes on. The partners have rehabbed the space to fit 37 studios for different artistic mediums, rooms for three arts organizations, and space for community events. Crane Arts LLC sponsors emerging artists and graduate art students through fellowships, which helps generate even more energy at the center. Drawing arts enthusiasts from across the city, Crane Arts has become a beacon of activity in an area that has battled decline for decades.  	 Creativity & ChangeSocial	Impact	of	the	Arts  SIAP’s research explains why local cultural spaces like Crane Arts are so critical to urban neighborhoods. By combining evidence on a neighborhood’s cultural assets with other types of neighborhood data, SIAP has discovered a strong and durable relationship between cultural engagement, poverty decline, and population growth in Philadelphia. According to data developed by TRF, the Philadelphia housing market experienced a marked improvement between 2001 and 2003. Using a six-category scale, TRF estimated that 13 percent of block groups improved by more than two categories – for example, from being a reclamation block group in 2001 to a transitional block group in 2003. This improvement was not distributed evenly; many local housing markets remained flat over the two years. What explained which block groups improved and which did not? The level of cultural assets in a block group correlated very strongly with block group improvement. More than half of the block groups with the highest concentration of cultural activity improved by at least two market categories, while less than 2 percent of the other block groups showed comparable improvement. What still needs to be explained is why the arts have such a powerful effect, and SIAP feels that researchers need to look beyond the “usual suspects” – the direct economic impact of the arts on urban economies. It is the “unusual suspects,” especially the impact of culture on the civic life of urban neighborhoods, that provide the most convincing answer to this puzzle. Data suggests that cultural participation builds collective efficacy within neighborhoods and creates bridges between different social classes and ethnic groups, which is critical to the transformation of communities.  The owners see this venture as an indicator of change for Philadelphia. “We are now creating a point of production for the arts world where a center of production for the manufacturing world once stood,” says Gleeson. It also stands as an indicator of change for Old Kensington. “An old boarded up warehouse that wasn’t available to the community is now open to them,” explained Kripal. The partners are interested in the role that their center can play in the neighborhood: local children take weekend art classes in the building; nonprofit organizations like the Village of Arts and Humanities hold meetings and fundraisers onsite; and there are dreams of starting a summer cinema program for the community to enjoy. But right now, Crane Arts LLC is concentrating on finishing construction on The Stable, the last piece of their property, which they hope to turn into more studio space. Once that is complete, they will offer 60,000 square feet of space for local artists to work, display and sell. “I feel really lucky to be in a studio,” shared one artist. “I see how many people try to get in, and it’s full. There are so many people on the wait list, because they like to be part of the building and what’s going on here.” And with continued vision on the part of the owners, continued financing from TRF and others, and continued talent flocking to the 1400 block of American Street, it appears that the demand will continue as well.             About The Reinvestment Fund TRF is a national leader in the financing of  neighborhood revitalization. A development financial corporation with a wealth building agenda for low- and moderate-income people and places, TRF uses its assets to finance housing, community facilities, commercial real estate and businesses and public policy research across the Mid-Atlantic. TRF conducts research and analysis on policy issues that influence neighborhood revitalization and economic growth both to help it identify opportunities to invest its own resources and to help public sector and private clients with their own strategies to preserve and rebuild vulnerable communities.      About Social Impact of the Ar ts Project SIAP is a policy research group at the University of Pennsylvania’s School of Social Policy & Practice. Since 1994 SIAP has conducted research on metropolitan Philadelphia to explore the structure of the creative sector, the dynamics of cultural participation, and the relationship of the arts to community well-being. SIAP leads the field in the development of methods for studying links between cultural engagement, community-building, and neighborhood revitalization.

Crane Arts: Financing Artists’ Workspaces

Kosmopolis

University of Pennsylvania
ScholarlyCommons
Culture and Community Revitalization: A
Collaboration Social Impact of the Arts Project
8-2007
Crane Arts: Financing Artists’ Workspaces
The Reinvestment Fund
Social Impact of the Arts Project (SIAP)
Follow this and additional works at: http://repository.upenn.edu/siap_revitalization
Part of the Art Practice Commons, and the Urban Studies and Planning Commons
The Culture and Urban Revitalization project was a collaboration between SIAP and The Reinvestment Fund (TRF), a community development
financial institution, with support by the Rockefeller Foundation.
This paper is posted at ScholarlyCommons. http://repository.upenn.edu/siap_revitalization/3
For more information, please contact repository@pobox.upenn.edu.
The Reinvestment Fund and Social Impact of the Arts Project (SIAP), "Crane Arts: Financing Artists’ Workspaces" (2007). Culture
and Community Revitalization: A Collaboration. 3.
http://repository.upenn.edu/siap_revitalization/3
Crane Arts: Financing Artists’ Workspaces
Abstract
This brief tells the story of Crane Arts, the conversion of Crane Plumbing Company’s 1905 factory and
warehouse in Philadelphia's Old Kensington, to affordable artist studio and gallery space. In spring 2004 two
artists and a developer--Crane Arts LLC—purchased the property and began the challenge of rehabilitation of
a century-old factory in a former manufacturing district. Along the way, they heard about TRF’s lending
activities, including commercial real estate in urban neighborhoods. The Crane Arts project was a perfect fit
for TRF, which views the arts as critical to the health of a community and invests in projects that have the
potential to catalyze revitalization in Philadelphia neighborhoods. The success of Crane Arts has encouraged
TRF to finance other artist centers in Philadelphia.
Disciplines
Art Practice | Urban Studies and Planning
Comments
The Culture and Urban Revitalization project was a collaboration between SIAP and The Reinvestment Fund
(TRF), a community development financial institution, with support by the Rockefeller Foundation.
This policy brief is available at ScholarlyCommons: http://repository.upenn.edu/siap_revitalization/3
	 August	2007
They found it in the form of the Crane Plumbing 
Company, a former factory and warehouse built in 
1905 in Old Kensington, once the manufacturing 
center of Philadelphia. While American Street 
was once alive with industry, commerce and 
jobs, the area fell apart during Philadelphia’s 
deindustrialization and subsequent disinvestment, 
leaving vacant warehouses and homes. In the 
increasingly competitive arts market, available and 
affordable space is a rare asset, an asset that this 
neighborhood happened to have. Located north 
of the expensive and expanding Center City, the 
property values in this area were affordable, since 
the area had yet to be targeted by developers 
and investors. With plans to redesign the old 
warehouse around the needs of artists, the partners 
– Crane Arts LLC – bought the main building and 
the two other vacant spaces on site in March 2004. 
Crane Arts LLC then faced the challenges familiar 
to small business entrepreneurs and developers 
reimagining urban industrial spaces: how do we 
finance the rehabilitation of a century-old factory? 
how do we navigate the public system’s maze 
of rules and regulations? how do we generate 
interest for a new artist space? Over the next two 
years, the partners poured themselves into the 
project and have successfully redefined the 1400 
block of American Street with four stories of 
artist work spaces and a gallery now renowned in 
Philadelphia’s art scene.  
But almost all this work was initially financed at 
their own expense: “We had three financers: Visa, 
Mastercard and American Express,” they joke. 
With the exception of a small bank loan and help 
from friends and family, the partners shouldered 
the financial burden until they could show 
investors that there was enough demand to keep 
the project afloat. 
Just as the partners were beginning their building 
search, artists throughout the city – especially in 
the up-and-coming neighborhood of Northern 
Liberties – were displaced by developers buying 
out spaces to create luxury condos. When Richard 
Hricko and Nicholas Kripal invited their Tyler 
graduate students to put on an exhibit in the 
newly purchased Crane Arts, they immediately 
sparked the interest of local artists in need of work 
space. “That was probably the smartest thing 
we ever did,” recalled Kripal. “They came, they 
brought their friends and their friends’ friends, 
and people got to know about us. People would 
be shocked to know how many artists there are 
in Philadelphia, and how many need affordable 
space.” Since that point, there has been a waiting 
list of artists eager to rent studio space at Crane 
Arts. 
Crane Arts LLC came to The Reinvestment Fund 
(TRF) with this waiting list in hand in November, 
2006, a few months after the first tenants set up 
in their studios. They had heard about TRF’s 
Crane Arts 
Financing Artists’ Workspaces  
 
When Nicholas Kripal discovered that the artist studio he managed in Roxborough, Philadelphia was 
going to be turned into an assisted living complex, he decided that it was time to make a change. The 
artist and professor from the Tyler School of Art at Temple University had watched his last studio 
space turn into condominiums, and after being moved twice against his will, he knew he needed 
something more permanent. “I couldn’t do it alone,” he said, “so I had to do it with a group of people 
that worked well together.” One partner was Richard Hricko, a fellow artist and professor at Tyler; 
when they contacted David Gleeson, a developer with a particular interest in the arts, he joined their 
search for the perfect studio and gallery space.
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	 
Creativity & Change
lending activities, which include commercial real 
estate projects in urban neighborhoods. Over the 
years, TRF’s portfolio has included many loans that 
support arts organizations, small cultural businesses, 
arts-related charter schools, and arts-related real 
estate projects; 5% – or $30 million – of the 
portfolio is tied to the creative sector. The Crane 
Arts project was a perfect fit for TRF, which views 
the arts as critical to the health of a community and 
invests in projects that have the potential to catalyze 
revitalization in various Philadelphia neighborhoods. 
In fact, the success of the Crane Arts project has 
encouraged TRF to finance other artist centers 
throughout Philadelphia.   
“They had a great need to borrow from us, it was 
a viable project, and they couldn’t see just how 
great the project was,” recalls Don Hinkle-Brown, 
the head of TRF’s lending and community 
investment activities. Don was especially impressed 
by the deposits and reservation agreements that 
accompanied the list, and felt that the partners’ 
artistic careers guaranteed the credibility of the 
demand. Crane Arts’ affordable rental prices and 
commitment to emerging artists ensured that 
the audience would remain broad, for the center 
wouldn’t be limited to established artists. In 
addition, financing a project in Old Kensington 
complemented TRF’s community development 
approach, which focuses on building from 
strengths. TRF had identified this section of North 
New	Markets	Tax	Credits
The New Markets Tax Credit (NMTC), 
administered by the United States Treasury’s 
Community Development Financial Institutions 
Fund, was created in 2000; it encourages private-
sector equity and loan capital investment 
in low-income areas to stimulate economic 
opportunity and create jobs in areas that most 
need it. The NMTC Program permits individual 
and corporate taxpayers to receive a credit 
against federal income taxes for making qualified 
equity investments in investment vehicles such 
as TRF. The credit provided to the investor totals 
39 percent of the initial value of the investment 
and is claimed over a seven-year credit allowance 
period. To date, TRF has received two NMTC 
allocations from the U.S. Department of the 
Treasury. In 2004, TRF received a $38.5 million 
award and in 2006, TRF received a $75 million 
award. 
Traditionally, NMTC has financed large scale, 
multi-million dollar projects in low-income 
communities. Despite high demand, the complex 
nature of the transactions and expensive 
legal costs made NMTC loans prohibitive for 
smaller borrowers. But that has changed with 
TRF’s innovative NMTC pool. Partnering with 
TransCapital and Morgan Stanley, TRF has 
structured a $40 million NMTC fund that is 
capable of financing multiple projects with sizes 
averaging $5 million. The blanket fund allows 
TRF to aggregate capital and cap legal costs so 
that smaller deals can benefit from the combined 
scale. TRF was able to use this flexibility to invest 
$4.2 million in Crane Arts LLC.  
Crane	Arts	Building
“People would be 
shocked to know how 
many artists there 
are in Philadelphia, 
and how many need 
affordable space.”
	 | 	 	August		2007
Crane Arts
Philadelphia as an area where targeted investments 
could make a real difference in reactivating the 
market. TRF had hoped to finance a project of scale 
in the neighborhood that would build off other 
investments in the area; Crane Arts was just that 
project. When he looked at all the pieces together, 
“it was an easy decision!” Don shared.
Artist	Centers
Ann Markusen, the Director of the Project on 
Regional and Industrial Economics from University 
of Minnesota’s Hubert H. Humphrey Institute 
of Public Affairs, has spent a good deal of time 
researching the effect that artist centers can have 
on artists, communities and regional economies. 
The research is based on the proliferation of artist 
centers in Minneapolis-St. Paul, Minnesota.
The report, Artists’ Centers: Evolution and Impact 
on Careers, Neighborhoods and Economies,  
describes both the synergy created when artists 
work in the same space, and the cost benefits 
of sharing equipment and space that otherwise 
would have been unaffordable. Artist centers have 
become important fixtures in their communities, 
for many have arts programming and educational 
classes for youth, identity groups, and adults. 
The process of creating studio space frequently 
involves rehabilitating underused properties and 
turning them into “unique cultural destinations” 
that draw tourists and art-lovers from the area. 
Lastly, the research describes the role artist centers 
play in a regional economy; it suggests that artistic 
presence and talent can add economic value to the 
overall production and distribution of goods and 
services that ultimately result in a stronger regional 
economy.  
The report includes policy recommendations that 
would encourage the growth and success of artist 
centers. One recommendation – echoed by many in 
the field – is for public and nonprofit policymakers 
involved in economic development, urban planning 
and cultural policy to acknowledge the role of arts 
and artist centers in revitalizing neighborhoods. 
Research and recommendations like this can help 
advocate for artist centers such as Philadelphia’s 
Crane Arts.          
Crane	Arts	Artists’	Workspace
Using its New Markets Tax Credit (NMTC) 
program, TRF was able to continue financing 
projects that enhance the arts’ ability to impact 
communities. In 2006, TRF invested $4.2 million 
in Crane Arts LLC, money that helped the 
partners pay back existing loans. The size of the 
loan guaranteed that the partners could pay off 
all outstanding debts, continue their renovations, 
and plan construction on the factory’s old stables. 
“TRF is more of a patient investor, not as skittish or 
jittery, and not subject to the whims of the market,” 
remarked Gleeson. 
And with this loan, Crane Arts LLC has been 
able to continue pursuing its vision of having 
Crane Arts become a hub of the Philadelphia 
arts scene. The building buzzes with activity: 
the new website advertises various, year-round 
exhibits; visitors traipse through the center on 
North Philadelphia’s “Second Thursdays” gallery 
nights; the Philadelphia Fringe Festival puts on 
performances there every fall; and the list goes 
on. The partners have rehabbed the space to fit 37 
studios for different artistic mediums, rooms for 
three arts organizations, and space for community 
events. Crane Arts LLC sponsors emerging artists 
and graduate art students through fellowships, 
which helps generate even more energy at the 
center. Drawing arts enthusiasts from across the 
city, Crane Arts has become a beacon of activity in 
an area that has battled decline for decades.  
	 
Creativity & Change
Social	Impact	of	the	Arts 
 
SIAP’s research explains why local cultural 
spaces like Crane Arts are so critical to urban 
neighborhoods. By combining evidence on a 
neighborhood’s cultural assets with other types 
of neighborhood data, SIAP has discovered a 
strong and durable relationship between cultural 
engagement, poverty decline, and population 
growth in Philadelphia. According to data 
developed by TRF, the Philadelphia housing 
market experienced a marked improvement 
between 2001 and 2003. Using a six-category 
scale, TRF estimated that 13 percent of block 
groups improved by more than two categories 
– for example, from being a reclamation block 
group in 2001 to a transitional block group in 
2003. This improvement was not distributed 
evenly; many local housing markets remained 
flat over the two years. What explained which 
block groups improved and which did not? 
The level of cultural assets in a block group 
correlated very strongly with block group 
improvement. More than half of the block 
groups with the highest concentration of 
cultural activity improved by at least two market 
categories, while less than 2 percent of the other 
block groups showed comparable improvement. 
What still needs to be explained is why the arts 
have such a powerful effect, and SIAP feels that 
researchers need to look beyond the “usual 
suspects” – the direct economic impact of the 
arts on urban economies. It is the “unusual 
suspects,” especially the impact of culture 
on the civic life of urban neighborhoods, that 
provide the most convincing answer to this 
puzzle. Data suggests that cultural participation 
builds collective efficacy within neighborhoods 
and creates bridges between different social 
classes and ethnic groups, which is critical to the 
transformation of communities.  
The owners see this venture as an indicator of 
change for Philadelphia. “We are now creating 
a point of production for the arts world where 
a center of production for the manufacturing 
world once stood,” says Gleeson. It also stands as 
an indicator of change for Old Kensington. “An 
old boarded up warehouse that wasn’t available to 
the community is now open to them,” explained 
Kripal. The partners are interested in the role that 
their center can play in the neighborhood: local 
children take weekend art classes in the building; 
nonprofit organizations like the Village of Arts and 
Humanities hold meetings and fundraisers onsite; 
and there are dreams of starting a summer cinema 
program for the community to enjoy. 
But right now, Crane Arts LLC is concentrating on 
finishing construction on The Stable, the last piece 
of their property, which they hope to turn into 
more studio space. Once that is complete, they will 
offer 60,000 square feet of space for local artists 
to work, display and sell. “I feel really lucky to be 
in a studio,” shared one artist. “I see how many 
people try to get in, and it’s full. There are so many 
people on the wait list, because they like to be part 
of the building and what’s going on here.” And 
with continued vision on the part of the owners, 
continued financing from TRF and others, and 
continued talent flocking to the 1400 block of 
American Street, it appears that the demand will 
continue as well. 
            About The Reinvestment Fund 
TRF is a national leader in the financing of  neighborhood revitalization. A development financial corporation with a wealth 
building agenda for low- and moderate-income people and places, TRF uses its assets to finance housing, community facilities, 
commercial real estate and businesses and public policy research across the Mid-Atlantic. TRF conducts research and analysis 
on policy issues that influence neighborhood revitalization and economic growth both to help it identify opportunities to invest 
its own resources and to help public sector and private clients with their own strategies to preserve and rebuild vulnerable 
communities.
      About Social Impact of the Ar ts Project 
SIAP is a policy research group at the University of Pennsylvania’s School of Social Policy & Practice. Since 1994 SIAP has 
conducted research on metropolitan Philadelphia to explore the structure of the creative sector, the dynamics of cultural 
participation, and the relationship of the arts to community well-being. SIAP leads the field in the development of methods for 
studying links between cultural engagement, community-building, and neighborhood revitalization.


https://repository.upenn.edu/cgi/viewcontent.cgi?article=1009&amp;context=siap_revitalization

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Kosmopolis