Anchor Institutions

Produced by the Mowat Centre at the School of Public Policy and Governance, University of Toronto.Anchor institutions – large public or nonprofit institutions rooted in a specific place, such as hospitals, universities or municipal governments – have significant roles to play in community wealth building. They are among a region’s biggest employers and purchasers of goods and services. Anchors also tend to have significant fixed assets, endowments and real estate holdings that can be used to drive economic development – economic power that translates into a specific “anchor mission.” An anchor mission is the deliberate and strategic use of resources to benefit communities, especially low- and moderate-income neighbourhoods or historically disadvantaged groups. It is the conscious anchoring of capital, jobs and other opportunities locally. When pursued in tandem with their core missions (e.g. education, health care), anchor institutions have the potential to make their communities stronger by every measure. At a time of increased public debt and renewed promises to tackle poverty in Ontario, anchor strategies offer an opportunity to leverage existing public funds and assets to address these ambitious objectives. This report begins by offering a more detailed explanation of anchor institutions and strategies (‘anchor mission’ and ‘anchor strategies’ are used interchangeably throughout the report), followed by examples of well-established anchor missions in the U.S. It then looks at the current landscape and economic potential of anchor strategies in Ontario and analyzes five key issue areas and enabling strategies to overcome challenges. The conclusion describes next steps in anchor strategy development in the Toronto Region and Ontario.Commissioned by the Atkinson Foundation