June 17, 2014

Dear Advisory Board members,

Thanks to your on-going support and input, ULI Boston/New England is in the final stages of crafting and adopting its three-year strategic plan. We are fortunate to have dynamic members, strong leadership and a sound balance sheet.

As a member of the Advisory Board, we look to you to identify the relevant issues affecting the real estate industry and to set an overall agenda to guide the district council’s body of work. Although this document appears long at first blush, please concentrate your review on the Executive Summary, mission and two-page strategic plan. We have distilled the key issues we expect the district council to address in the upcoming three years and seek your input on our overall mission and strategy.

To put the Strategic Plan in context, the Executive Director has included the ULI Boston/New England mission, organizational structure, tactics, timeline, metrics and annual budget for your reference.

We look forward to an exciting and fruitful upcoming three years. ULI Boston/New England is well positioned to provide extensive value to its members and to contribute to the continued growth of our region.

Sincerely,

John FowlerDaniel St. Clair

Chair, Advisory BoardChair, District Counci

Frank WuestDonald Briggs

Vice-Chair, Advisory BoardIncoming Chair, District Council

Charles KendrickGlenn Burdick

Chair, Mission AdvancementIncoming Chair, Mission Advancement

Strategic Planning Committee members:

Sarah Barnat (Executive Director), Joseph Bator, Carlos Febres-Mazzei, Darcy Jameson, Marty Jones, Matthew Keifer, Nancy Ludwig, Shaw Lupton, Fred Kramer, Ed Marsteiner, Matt Pullen, Michael Wang

ULI Boston/New England

Three-Year Strategic Plan

2014-2017

Table of Contents

  1. Executive Summary
  1. Mission
  1. Strategic Plan
  1. Organizational Structure

Organizational Chart

  1. Leadership
  2. Staff
  1. Financial Information
  1. Annual Budgets FY 14 and FY 15
  1. Tactics
  1. Strategic Engagement
  2. Public Relations
  3. Sponsorship
  4. Partnerships
  5. Member Programs
  6. Volunteer Programs
  7. Affinity Groups
  8. Councils
  9. Regional Satellites
  10. New Initiatives: Kresge and Reality Check
  1. Timeline
  1. Metrics
  1. Executive Summary

ULI Boston/New Englandhas developed into a network of nearly 1200 local and regional leaders and professionals in the real estate industry supported by a $60 million global institute. It is our priority to maximize the value of member participation and professional development while serving as a resource for responsible land use planning.

ULI Boston/New England has the organizational strength and network of influence to tackle some of the leading real estate issues of today. For the upcoming three-year plan for 2014-2017, ULI Boston/New Englandwill focus on developing best practices, sharing knowledge and advocating for solutions to:

  • Encourage the continued growth of the Boston region though a market-driven approach to responsible development, re-use and construction.
  • Expand the regional connectivity and planning required for a world-class city.
  • Improve our public infrastructure system through innovative approaches and solutions.
  • Create housing opportunities to meet the demand for a growing and demographically diverse region.
  • Design and construct a built environment that is innovative, sustainable, resilient and appealing.

Recognizing that the issues and topics change over time, ULI Boston/New England will continue to adapt and expand its organizational capacity to meet the needs of its members and the real estate industry by:

  • Optimizing and expanding Local Product Councils to provide valuable member connections
  • Sponsoring a regional planning vision exercise, such as ULI’s Reality Check, in
  • Generating member experts, best practices and policy support to address resiliency issues, specificallysea level rise
  • Offering quality programming around mission-identified issues
  • Disseminating content-rich material from local and global members
  • Increasing presence in New England Satellite Cities
  • Promoting ULI activity in traditional and social media

Leadership, Staff, Finances

The ULI Advisory Board is a broad group of influential real estate leaders that identifies the district council’s mission-critical issues. The Advisory Board will be called upon to participate in strengthening the local product council program, provide sponsorship support of the organization, and join in a regional planning initiative.

To provide operational support for the DC Chair, the Executive Director and staff, the management committee will be restructured as a 6-8 member “kitchen cabinet” of district council leaders. Additional members serve in a variety of leadership positions on councils and committees to convene, educate and provide impact around specific industry issues. It will be critical to support and grow member leaders who represent the multi-disciplinary and demographically diverse ULI membership.

The currently budgeted staff of three professionals is not able to effectively implement the full range of programs and tactics identified in Section 6. Given the strength of the balance sheet with 50% of annual expenses currently held in reserves, the District Council seeks to invest in a fourth professional FTE position at the Senior Associate level. This additional staff person will provide the horsepower to implement three of the most significant goals for the upcoming three year plan: (1) optimizing the local product councils, (2) implementing a regional planning initiative (i.e. Reality Check) and (3) disseminating content through a multi-channel communications strategy. It is anticipated that the investment in a new staff person will be self-sustaining by year three through increased sponsorship and grant contributions and the operating reserves will be stabilized at 30% of the annual operating expenses.

Timeline

The ambitious number and quality of tactics required to fully implement the strategic plan will unfold over the course of the three year plan:

  • The focus of Year 1 will be to hire and train staff; optimize local product councils; expand efforts as thought leader addressing resiliency issues; increase impact in regional satellites; and, form an ad-hoc committee for a regional planning initiative (i.e. Reality Check).
  • The focus of Year 2 will be to implement a regional planning initiative and expand the district council sponsorship program, while maintaining the same level of annual programs and activities.
  • The focus of Year 3 will be to coalesce the activities of the first two years under a new DC Chair to ensure achievement of all goals in the strategic plan. Optimizing the functional capacity of the district council, its membership and its leadership will be critical to ensuring the success of the ULI National Fall meeting to be held in Boston in 2018.

Metrics for Success

The Strategic Plan includes quantitative benchmarks for success including the expectation of an increase in membership to 1350 members – with significant engagement, renewal and participation among all members. To support the growing organization, a sizableincrease inprogram revenueand sponsorship support is necessary.

At the end of the three-year plan, it is expected that ULI Boston/New England will have expanded its reach through increased media coverage, optimized programs, and strategic partnerships. At the end of three years, ULI Boston/New England will evaluate its value to members in advancing knowledge of best practices, increasing a network within the industry, and having an impact on mission-driven issues.

  1. Mission

The Urban Land Institute provides leadership in the responsible use of land and in creating and sustaining thriving communities worldwide.

The ULI Boston/New England District Council delivers that mission by serving its members and the region’s public and private sector with pragmatic land use expertise, outstanding educational and informational forums, and unique professional networking opportunities.

To thrive, Greater Boston and New England cities will attract investment and development through theimprovement of public infrastructure; the availability of a variety of housing options and work environments;and, a built environment that is sustainable, resilient and appealing.

The goal ofULI Boston/New England is to create a stronger, more connected region throughthe development and dissemination of real estate innovations, networks and best practices.

  1. Strategic Plan

DEFINING ULI Boston/New England

  1. ULI Boston/New England convenes multidisciplinary and cross sector leaders in the real estate industry
  2. ULI Boston/New England delivers high-quality content about relevant land use issues
  3. ULI Boston/New England provides for the exchange of ideas, experiences and best practices to create and sustain thriving cities

THE OPPORTUNITY: A special set of circumstances gives ULIB/NE the ability to create a comprehensive and aggressive strategic plan for the next three years. ULI Boston/New England should move quickly.

  1. Positive economic cycle
  2. A dynamic urban environment in Greater Boston and in the major cities throughout New England
  3. Changes in the political leadership at the local & state levels
  4. Strong District Council Leadership
  5. A strong District Council balance sheet

THE FOCUS: Given the rich environment and limited resources, ULI Boston/New England will have a positive impact by:

  1. Convening a network of like-minded city builders – both within the membership and through strategic public and non-profit partnerships
  2. Educating through content-rich programming derived from members’ best practices and activities, and established ULI programs including TAPs and Urban Plan.
  3. Engaging key leaders on effective strategies for thriving cities

SPECIAL AREAS OF CONCENTRATION:

  1. Addressing key land use issues in the council format and programming: Capital Markets, Housing, Infrastructure, Sustainability/Resiliency and Urban Design
  2. Increased presence in Satellite Cities, the urban centers in New England
  3. Greater Boston regional planning by implementing Reality Check (or adapted program)

ORGANIZATIONAL ADJUSTMENTS:

ULIB will address structural challenges & opportunities in order to realize its strategic goals.

  1. Personnel

Increased staffing is required to implement the expanded scope of work. The DC will add and expand personnel resources to four professional staff and intern support with a particular focus on:

  • Increasing ULI presence throughout New England
  • Developing research/content capacity
  • Optimizing local product council membership/programming
  • Implementing a regional planning initiative

2.Role of Members

  • Expand member participation in councils and leadership activities to generate deeper connection to ULI
  • Integrate and promote of YLG and WLI members on councils, programs and leadership functions
  • Encourage stronger affiliations of national product council members to the District Council
  • Establish a working management committee (i.e. a “Kitchen Cabinet”) for the DC Chair and Executive Director to seek input and provide counsel on regular basis
  • Continued attention to developing leaders and planning for succession
  • Raise revenue through additional annual sponsorships

3. Local Product Councils

  • Utilize fully developed Local Product Council model to optimize impact
  • Ensure consistency and participation in standing councils
  • Generate topical agendas and content-driven discussion within council meetings
  • Produce and disseminate content on pertinent issues through programming, events, publications, etc.
  • Provide valuable networking and professional development opportunities for council members

4. Public Relations and Advocacy

  • Activate Advisory Board and Council members to educate, advise and promote key land use issues and solutions.
  • Convene meetings, programs, symposium with key stakeholders
  • Maximize media presence (both traditional and social) to deliver content and message.
  • Partner with non-profit organizations and associations to fulfill mission of ULI Boston/New England.

IV. Organizational Structure

  1. Leadership

Advisory Board – Chair and Vice Chair - Select group of real estate industry leaders that meets quarterly to identify major issues in industry and provide strategic guidance for the work of the district council. Members added through sponsorship at the Platinum level or significant service to organization, and reflective of membership. The Governance Chair will assume responsibility for leadership succession planning.

Management Committee – Will be established as a “Kitchen Cabinet” of officers to advise and direct the Executive Director, and oversee the operations of the District Council. The Management Committee, appointed by the DC Chair,will consist of at least six member leaders who will meet bi-monthly.

Program Oversight Committee– Chair and Vice Chair. Meets monthly to generate member lunch series; to ensure that program/event offerings further the mission; and to connect Councils, Affinity Groups and Committees. One member leader of each council or affinity group should attend each meeting:

Affinity Groups:

  • Young Leaders Group
  • Women’s Leadership Initiative

Councils:

  • Boston Market Council
  • Housing and Economic Development Council
  • Infrastructure Council
  • Sustainability/Resiliency Council
  • Urban Design Council

Committees:

  • Regional Satellite Committee
  • Strategic Engagement Committee

Additional Volunteer Committees with Staff Support

  • Urban Plan Committee
  • Real Estate Advisory Committee (TAPS)
  • Trends Planning Committee
  • Urban Marketplace Planning Committee
  • Ad-hoc Committeefor New Initiatives
  1. Staff

The ULI Boston District Council will consist of a fully functioning staff with the following titles, roles and responsibilities:

Sarah Barnat, Executive Director – Responsible for overall management of organization and staff; implements strategic plan; communicates with leadership and advisory board;coordinates strategy, programs and activities with ULI National and other District Councils; ensures member engagement and satisfaction; develops sponsor relationships; connects with strategic partners; and, provides public relations and visibility for the organization.

Michelle Landers, Director – Oversees all major programs and events; coordinates Regional Satellite membership, sponsorship and activities; manages the Technical Assistance Program; and, provides support to the Women’s Leadership Initiative.

Open Position, Manager – Manages the local product council membership and meetings; sources and disseminates content; undertakes discreet projects and new initiatives that creates value for members and impact on mission; and, manages public relations and social media implementation.

Open Position, Associate – Provides operational support for office including membership tracking, event management, accounting and sponsorship duties; manages the Urban Plan Program; and, provides support to the Young Leader’s Group.

Rebecca Herst, MBA Fellow (i.e. Intern) – A graduate student in final year of study to be hired on an ad-hoc basis to undertake discreet projects or new initiatives.

  1. Financial Information

The ULI Boston/New England is in a very strong financial position, currently holding an operating reserve equal to approximately 50% of the annual budget. The annual budget exceeded $600,000 in FY 14, and is expected to grow by 6% in FY 15 if it maintains the current staff three professionals.

Revenue

A significant portion of the revenue – approximately $240,000 (40%) - is from annual and event sponsorships from member companies. Although registration fees from programs accounts for an additional $120,000 (20%) in revenue, only 1/3 of the fees (or $40,000) goes to the bottom line as net revenue or annual profit.

The Boston/New England District Council must take a multi-prong approach to maximizing revenue including:

  1. Increase the number of annual corporate sponsors
  2. Increase the level of sponsorship among current sponsors
  3. Seek event and initiative sponsors in the form of both cash and in-kind contributions
  4. Maximize attendance at all paid events

Operating Reserve

As a mission-based non-profit, it is incumbent upon the organization to invest in activities that delivers impact and to provide value to members. At the same time, for the District Council to be financially viable for the long term and to protect against a significant reduction in revenue, operating reserves should not dip below30% of annual expenses, which equates to roughly six months of salaries/benefits.

Staff Expansion

The strategic plan of action necessitates one additional staff person at a Senior Associate level to successfully implement. Utilizing reserve funds, the District Council will fund the additional position to begin in FY 15. Reserve funds can fully fund this new position for 1.5 years. However, it is expected that the District Council will simultaneously increase its sponsorship or grant revenue beginning in FY 15 to cover some of the increased expenses. By the end of FY 2017, it is expected that the cost of the fourth staff person will be fully funded through annual revenue without reliance on any reserve contributions and that the annual reserve will stabilize at 30% of annual expenses.

  1. FY 14 and FY 15 Annual Budgets

FY14 / FY 2015 / Net / %
Annual Budget / Projected Budget / Change 14 to 15 / Change / NOTES
Revenue
Dues Transfer / 112,670 / 118,304 / 5,634 / 5% / Increase of 5% over FY 14
DC Admin Services / 75,779 / 75,779 / - / 0%
Registration Fees / 122,000 / 128,100 / 6,100 / 5% / Increase of 5% over FY 14
Sponsorships / 243,500 / 267,850 / 24,350 / 10% / Increase of 10% over FY 14
Other / 12,500 / 12,500 / - / 0%
In-Kind / 30,000 / 30,000 / - / In-Kind Rent
Contract / 12,000 / 12,000 / - / 0%
Grant / - / 10,000 / 10,000 / Kresge Innovation Grant
Total Revenue / 608,449 / 654,533 / 46,084 / 7%
Expense
Salaries and Benefits / 344,800 / 371,730 / 26,930 / 8% / 3 FTE, Benefits (25%)
DC Admin Services / 75,779 / 75,779 / - / 0%
Travel / 15,670 / 24,000 / 8,330 / 53% / Staff & Regional Travel
Contracted Services / 16,500 / 26,500 / 10,000 / 61% / Kresge Grant Expenses
Meetings / 79,130 / 79,130 / - / 0%
Telephone / 6,000 / 6,000 / - / 0%
Postage & Delivery / 1,900 / 1,900 / - / 0%
Printing / 6,000 / 6,000 / - / 0%
Office Supplies / 4,350 / 4,350 / - / 0%
Rent / 30,000 / 30,000 / - / 0%
Member Recognition / 10,000 / 10,000 / - / 0%
Awards & Scholarships / 2,500 / 2,500 / - / 0%
Miscellaneous Expense / 14,500 / 14,500 / - / 0%
Total Expense / 607,129 / 652,389 / 45,260 / 7%
Net Revenue Per FY / 1,320 / 2,144
RESERVES
Reserve at beginning of FY / 299,569 / 301,713
% of reserves/expenses / 49% / 46%
Note The addition of 1 FTE for FY 15 is anticipated to add $62,500 in salary & benefits expense. It will be funded by reserves in Year 1. Thereby reducing the anticipated reserve at the beginning of FY 16 to $240,000. The % of reserve to expenses will decrease to 33%.
  1. Tactics
  1. Strategic Engagement

Members seek a valuable experience and engagement with ULI in order to justify the time and expense of joining the organization. The Boston District Council offers numerous opportunities to participate in a meaningful way associated with a variety of segments of the industry (See Exhibit B: Engagement Opportunities). Better communicating the offerings and reaching out to members in a coordinated effort to ascertain their interests will create stronger connections. The following strategic engagement initiatives will be implemented: