Transcript WIN-WIN-WIN The Advantages of CBAs for the Community

PERSPECTIVES FROM THE LOCAL
GOVERNMENT
The Advantages of CBAs for the Community, Developers, Government, and
YOU!
Hanifa Shabazz
City Council 4th District
City of Wilmington
Background: Creating Delaware’s First
CBA
DEVELOPMENT IDEA:
• The Peninsula Compost Company wanted to construct a
20,000 square foot organic waste composting plant.
• The plant would serve to convert organic garbage and
agriculturally ineffective dirt into sustainable soil.
(image of compost plant)
Background: Creating Delaware’s First
CBA
INITIAL BENEFITS:
• Composting is a natural and
environmentally beneficial
process that turns organic
material into nutrient-rich soil. It
can divert materials away from
landfills, and improve the quality
of soil in Delaware.
• Tax $$ collected from the
compost plant could go to crime
prevention programs, public
schools, parks, and many other
areas that the struggling city of
Wilmington needs.
Background: Creating Delaware’s First
CBA
CONFLICT:
• The citizens of Wilmington didn’t want what they felt was
a luxury garbage dump in their backyard.
Background: Creating Delaware’s First
CBA
• Professor of Economic Development at the University of
Delaware told citizens and community leaders about
CBA’s as a new economic development tool.
• South Bridge Small Group informed of Staples Center
Expansion CBA.
• Professor Jabbar-Bey acted as liaison between South
Bridge Small Group and Julian Gross at Partnership for
Working Families.
• Ph.D. student researched mid-size CBA negotiations and
assisted with community outreach and committee
decision making.
Background: Creating Delaware’s first
CBA
SOLUTION:
• The citizens of Wilmington agreed to support a compost
plant if the developer provided the following community
benefits:
- 20% of all jobs must go to local residents
- 20% of all jobs must go to minorities
- Funding for a job training program
- Requirement to use only local contractors
- Neighborhood parking lot
- And more!
The local government and incoming
developers
• The local government often must vote on zoning changes that
enable a private developer to come into a city.
• If the developer promises to create a tax-paying business that
provides beneficial goods or services to the city, the project
moves closer to approval.
• Many developers ask for tax-
exemptions or subsidies to help with
their construction costs. If we feel the
city could greatly benefit from this
business, we will approve this. But we
need neighborhood OK and support!
Why the local government may
encourage CBAs
• Providing “community benefits” will make the project more
attractive to the community. The use of a CBA is more likely if:
1.
The developer understand the importance of being a good
corporate neighbor by investing in the community. (A strong
business will earn this money back soon.)
2.
The development is controversial (like the construction of a
compost plant, casino, or giant stadium).
3.
The community is a low-wealth one, lacks diverse resources,
and could benefit from private dollars funding new jobs.
Potential community benefits from a CBA
• Affordable housing complexes
• Local hiring requirements
• Minority hiring requirements
• Contracting and subcontracting to local,
small, and minority owned businesses
• New public park
• New community center
• Donations to struggling public schools
• Funds to support music, art, and
vocational training programs in schools
• Mentoring programs with at-risk youth
• Second-chance hiring for ex-offenders
• Living wages for employees of the
development
• Small business opportunities
My role with the Peninsula Compost CBA
(1) Empower and Educate
• We informed city residents that a host of community
benefits could result from this development if they voiced
their opinions collectively and publically (EMPOWER)
* Contacted University Professor of Economic
Development to present info to Small Planning Group
* Informed South Bridge residents
• Then we presented the information on CBA’s to the two
parties (community organizations and the developer) to
guide their negotiations (EDUCATE)
My role with the Peninsula Compost CBA
(2) Pass necessary ordinances and legislation
• For a CBA to even be considered, developers need to
know that they can legally build their project on the land
they wish to purchase.
• To address such a problem, the city council can draft and
pass particular legislation to amend zoning laws and
ordinances.
(Image: Peninsula Compost Plant after construction)
My role with the Peninsula Compost CBA
(3) Encourage agreement, but NOT negotiate
• I was NOT part of the negotiations between community
and developer.
• I encouraged them to reach a final agreement and put the
community benefits together for a vote. But I did not want to
make the negotiations “political,” so I stayed out of them.
Why CBA’s WORK for the developer
I’m a business person, so I appreciate CBA’s from two
perspectives, as a business person and as a public official:
► CBA’s → a corporate partnership with
neighborhoods. Neighborhood support is crucial.
► CBA’s also help with state permit approvals.
► Real estate development should now include
private sector, public sector, and community.
Why CBA’s WORK for the city
► CBA’s = an opportunity to bring new economic
development to a city, with some extra improvements for
our neighborhoods.
+ New developments put stress on communities.
CBA’s help them deal with those stresses.
Use supportive resources for CBA’s
• The Corps of Engineers has line-item funding for
community support.
• National and local organizations will provide model
agreements and other assistance with the development of
CBA’s.
• Pro bono attorneys from local law schools can be
recruited to represent community groups in negotiating
and drafting CBA’s.
One Good Agreement and Process Leads
to Another
• The CBA with Peninsula Compost Company was
Delaware’s first CBA, but not its last and is no longer its
only one.
• March 2011: CBA with Port Contractors for coke
petroleum facility
CBA’s now part of the city’s approach
• CBA’s signed in 2010 and 2011 demonstrated that
collaboration between developers and neighborhoods is
not only possible, but is also preferable.
• CBA’s put developers, area residents, and city personnel
all on the same page, making it easier and faster to get
the necessary approvals for a project.
• CBA’s strengthen the surrounding neighborhoods in which
major investments are located—and that’s good for the
developers, good for the neighbors, good for the city.
Everyone benefits!