How Governors Island CEO Leslie Koch Is Turning an NYC Island Into Silicon Valley

A little island in New York is brewing some big ideas.
Imogen Baker
May 18, 2016

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Over the span of the universe, ten years is the blink of an eye. In a human lifetime, a decade can zip by unnoticed. In the realm of public works (a realm so dense that all previous laws governing time and space break down around it) ten years is, in practice, a millisecond. Projects can drag on for eternity before we see a single blade of grass (hell, in six seasons of Parks and Rec they only managed to fund one weeny little park). So you can understand why people may secretly believe Leslie Koch, president and CEO of The Trust of Governors Island in New York City, to be some kind of time-travelling magician.

Since her instatement in 2006, she's worked with city government and private sector alike to transform a flat, derelict military island off Manhattan into a thriving public space with nearly half a million visitors each summer. Under Leslie's guidance, the first phase of the master plan, including 12 hectares of parkland, was opened to the public in May 2014. The second phase (named The Hills for the rolling Teletubbyland-esque vista and 360 degree panoramic views of New York City) is slated to open in July, a year ahead of schedule. And the next phase for Governors Island is even more ambitious: a 13.4 hectare innovation incubator and public campus to service the growing startup culture in New York.

Leslie's flying in to Sydney to appear as one of the keynote speakers for REMIX Sydney 2016, so we found a tiny window in Leslie's obviously jam-packed schedule to sit down and talk big.

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The Hills, Governors Island.

THE PESKY PROBLEM OF HAVING MORE IDEAS THAN EMPLOYEES

Revamping Governors Island as a startup haven is a superhuman feat in itself, but let's backtrack for a moment.

America is in a bind: the age of manufacturing has passed and technological innovation is now the hot economic commodity to sink graduates into. Tech startups are bread-and-butter for the emerging generation of computer scientists. However, there's a gaping crevasse between practice and education theory. The tech industry waits for no one, particularly not one who spends four years and a small fortune on a tertiary education only to emerge and find the skills they've learned are not the skills employers want — nor, often, are they even relevant anymore.

"I was meeting with a very successful serial entrepreneur the other day and he said, 'Look we actually can't hire enough people for the ideas that we have'," Leslie Koch muses "There's no shortage of ideas, there's a shortage of people."

The solution, she believes, begins with physically merging private sector components into the education model, eliminating the lag between industry practice and educational canon. It's an inevitable direction, considering our career path structure is changing — everyone's a freelancer, untethered by company loyalty, each in possession of a long resume dotted with short tenures. If you want to stay employable in a competitive marketplace rocked to and fro by the all-powerful internet and all her resplendent memes, you've got to freshen up your skills every now and then.

ON BUILDING THE SILICON VALLEY OF THE EAST COAST

Governors Island represents more than a green lung to New York City's concrete playground. In its second phase it will become an incubator for innovation, the Silicon Valley of the east coast and, as Jack Donaghy would say, 'innoventually' develop a solution to the human capital crisis in the tech industry in NYC.

But just what is so magical about Silicon Valley that's worth mimicking? Does innovation bubble up from the very ground water? General consensus is the Valley works for two reasons. First, early in the game, big companies collaborated with educational institutions (to mould their chickens before they hatched). Second, a close physical proximity, as well as a focus on innovation, encouraged knowledge convergence and cross-fertilisation between tech startups. The underlying lesson here? Physical space organisation is incredibly important for knowledge sharing (there's a reason why open-plan offices are everywhere, and it's not just to keep you off Facebook during work hours).

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ON CREATING AN 'INNOVATION INCUBATOR' ON THE ISLAND

The next stage for Governors Island is to build an 'innovation incubator'. It may sound like jargon, but the articulation of an 'incubator' draws on those ideas that people, and young startups in particular, hugely benefit when they physically share space with their contemporaries.

"[A technology incubator] gives companies flexibility in leasing and acts as a social space, a cross-fertilisation space, that you wouldn't have in a conventional 'I'm going to rent my office, hire my people and I'm never going to interact with the other companies in my building' model," says Leslie. The needs of early stage technology startups go beyond infrastructure and financial support — expertise and knowledge must be shared freely to the benefit of all.

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WHY NEW YORK CITY GENERATES A DIFFERENT KIND OF STARTUP TO CALIFORNIA

The Silicon Valley of New York (coming soon to Governors Island!) won't actually be all that similar to the Californian model. The startups coming out of New York (such as Tumblr, Kickstarter, Etsy) are an intrinsically different breed than the West Coast startups (Facebook, Google, Apple) — they're flavoured by the city. Leslie is very aware of this.

"The second chapter of my career was in technology on the West Coast. I worked at Microsoft and, like its analogist companies in the Valley, it started in the suburbs and there were a few of us who commuted out to Redmond, Washington. What you're now seeing is companies recognising that to innovate, there's something about being in a city rather than isolated. When you create campuses with an urban flavour, that really makes sense for innovation."

A city, unlike the 'burbs, is a cluster model in itself. The Governors Island incubator model will perhaps not be a scaled down version of Silicon Valley but of NYC itself, with educational institutions and private sector components physically merged instead of adjacent.

"High-tech companies move to the city because of the messiness of the city and the interactions you have with all kinds of people and different kinds of industries… I personally believe that cities are the place where innovation takes place," she says "What I couldn't have planned for was the amount of emotion that New Yorkers have for Governors Island. We made a place people have embraced, have come to love, even though it's a place no-one has ever spent the night and it's never been open for more than 120 days a year."

Australia has only 10 percent the urban density of America so notions of space can be a tricky to wrap your head around; space is a nuisance most of the time. But the cluster model is starting to take hold in Sydney and it works, no doubt in part, thanks to the mapping done on the front lines in the US.

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The Hills, Governors Island.

WHAT'S NEXT?

Sadly, Leslie recently announced she'll be stepping down as CEO after the Hills opens to the public. "This is a natural inflection point and when you run a seasonal recreation destination, you're on-duty every weekend so the thought of having my first summer off in 11 summers was just too good to pass up." And what a hard-earned summer it'll be.

You can catch Leslie speaking at REMIX Sydney from June 2-3 at Sydney Town Hall. Your mates Concrete Playground will be there too, introducing you to Sydney's most successful entrepreneurs — the businesses we couldn't write fast enough about — with a special curated session on 'How Long Does It Take to Become an Overnight Success?'. More info right here.

Top image: Iwan Baan/Governors Island.

Published on May 18, 2016 by Imogen Baker
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