Are Big Businesses Really Spurring Inclusive Economic Growth in Newark?

by Femi Lewis

It’s a common belief that big businesses often rob urban towns of cheap rent and don’t give anything back in return. Well, the large institutions in Newark have bonded together to make that sentiment untrue. Through strategic partnerships between the mayor’s office, locally-based Corporate America firms, and major non-profit organizations, anchor institutions are creating a city that is steeped in equity and inclusivity. Formed six years ago, the Newark Anchor Collaborative has grown from a small group of seven “anchors” to a collaborative of 20 “anchors” under the Newark Alliance, which has a focus on racial equality and eliminating extreme disparities in wealth, employment, and income amongst residents and the local business community.

“There are so many opportunities for these institutions to redirect their spending to Newark small businesses and help grow them,” said President and CEO of Newark Alliance Evan Weiss in a PBS interview. “One way of doing this is to encourage larger businesses to buy local supplies and services. Something as simple as getting their catering orders from Newark small businesses rather than national chains is a victory.”

The vision of Newark Alliance is to work collaboratively to cement Newark’s status as one of America’s most diverse, prosperous, exciting, and equitable cities, serving as a national model for inclusive economic growth.

These institutions make up the Newark Anchor Collaborative, a community of executive leaders from leading public and private institutions anchored in Newark. They have pledged to commit to equitable growth in Newark, with an emphasis on racial equity.

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6 Horizon Blue Cross Blue Shield of New Jesey

7 New Jersey Institute of Technology

When Audible relocated to Newark in 2007, its mission was simple: to support the socio-economic growth in all of Newark. Since then, the company has launched the Global Center for Urban Development to support various initiatives throughout Newark. The establishment of Newark Venture Partners provides investment support to early-stage startup companies while the “Live Local” program provides after-tax subsidies to Audible employees to encourage them to reside within the city. The “Hire Local” as well as the Audible Interns and Scholars programs enhance the revitalization of Newark through its workforce development and training resources. Topping it off, Newark Working Kitchens, Audible’s pandemic response program has partnered with local restaurants and corporations to deliver an estimated 1.3 million meals to residents.

Through the Horizon Foundation of New Jersey, Horizon BCBS provides funding to several Newark-based organizations. Recently, GlassRoots, Newark’s glass art learning center, received funding for general operation of youth development initiatives and creative artists residences, and the Newark School of the Arts received funding to enhance its Early Childhood Music and Movement Program. Over the last year, Horizon BCBSNJ has invested more than $1.5 million in grants in urban community development projects, rehabilitating housing, community-based programs and financial support for local families.

8 Newark City Parks Foundation

9 New Jersey Performing Arts Center

10 Audible

Investing in Arts Education and Redevelopment

NJPAC is best known for showcasing creative performances from international, and national artists. However, its through its arts education programming that NJPAC is laying the foundation for future generations of artists in Newark. Beyond the stage, NJPAC is spurring economic development through its partnership with Center Street Owners on a $150 million project to transform NJPAC’s riverfront campus to include a mix of high and low rise residential buildings, townhomes, condominiums, restaurants, retail and cultural spaces. The project is expected to be completed in 2024.

Let’s start with the fact that Prudential Foundation’s Chair Lata Reddy is also the board chair of the Newark Alliance. Beyond that, for the last decade, Prudential has invested over $1 billion in housing redevelopments in Newark to include the Hahne building in downtown Newark and Teachers Village. Prudential has also been instrumental in the growing arts community in Newark–investing more than $25 million in One Theater Square and consulting on NJPAC’s riverfront community. In addition, Prudential consistently funds the Newark Museum of Art for various educational and outreach programs that support the community.