Transcript You & Building Community Wealth Olympia, WA – March 17, 2015 Ted Howard, Executive Director The Democracy Collaborative.

You &
Building Community
Wealth
Olympia, WA – March 17, 2015
Ted Howard, Executive Director
The Democracy Collaborative
What is Community Wealth
Building?
• Is place-based
• Emphasizes local ownership and control
• Anchors living wage jobs
• Keeps wealth local
• Leverages local assets
• Focuses on quality of jobs & asset building
Place Matters
Source: Designed by Benzamin Yi using life expectancy data calculated by Cuyahoga County Board of Health and the Alameda County Health Department
Why an Anchor Approach?
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“Sticky capital”
Economic engines: employer and purchaser
Vested interest in surrounding communities
Typically nonprofit or public
“Eds and Meds” Economic Impact
Employment
9 million+
Annual Expenditures
$1 trillion+
Annual Procurement
$500 billion+
Investment
Portfolios/Endowments
$750 billion+
Anchor Sources of Economic Impact
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Procurement/supply chain
Hiring & employment policies
Training & staff advancement
Investment
Real estate
Construction
Technical assistance & business incubation
Benefits of Local Procurement
Local
Procurement
benefit to
anchors:
Better vendor
servicing/better
access to critical
goods and
services in crisis
situation /
decrease carbon
footprint / lower
costs
Local
Procurement
benefits to
community:
Increasing local
employment /
stabilizing
neighborhoods
Building a
network of interconnected
vendors,
purchasers,
financial
institutions,
training and
higher education
Economic Inclusion:
Miami Dade College
Office of Minority and Small Business Enterprise
Through the influence of the Miami Culinary Institute and its
public rooftop restaurant, Tuyo, MDC encourages peers to buy
local, too.
• Established 1994
• Reverse trade shows:
Procurement officers
set up displays and
invite MBE vendors to
visit them
• Results: MBEs obtain
as much as 27
percent of total MDC
procurement
University Hospitals (Cleveland) Vision 2010
Construction of major new facilities = $1.2 Billion
Results exceeded goals:
93% local
vendors
Enduring
results:
worked with
110 small
companies,
now work with
30 on routine
spend
18% of
workers
local
residents
17% MBE
7% FBE
“Rethinking How We Do Business”
“
Community and healthcare leaders are
discovering that hospitals can help heal
entire cities through economic development… healthcare systems can create
jobs and wealth…And we can earn the
trust and goodwill of our neighbors.
Tom Zenty, CEO, University Hospitals System, May 2013
”
Foundation for Partnership
“
The university cannot thrive without the
full support of its community and the
community cannot thrive without the full
engagement of its university. The future
of each is tied to the other. This is the
foundation on which partnership is built.
”
Jim Votruba, President, Northern Kentucky University,(1997-2012)
address to Western Carolina University leadership group, Sept. 27, 2013
The Anchor Mission
To consciously and strategically apply
the long-term, place-based economic
power of the institution, in combination
with its human and intellectual resources, to better the welfare of the
communities in which they reside, and in
particular low- and moderate-income
neighborhoods.
Community Wealth Building Models
Wealth Building Initiatives Across the Nation
Wealth Building Initiatives
• New Orleans, LA: Economic Opportunity Initiative
• Chicago: Chicago Anchors for a Strong Economy
• Baltimore: Baltimore City Anchor Plan
• Richmond, VA: Office of Community Wealth Building
• Amarillo, TX: Panhandle Wealth Building Initiative
• Cleveland, OH: Greater University Circle Initiative
• San Francisco Bay Area: Anchors for Resilient
Communities
Prospera (Bay Area, CA)
• Home cleaning industry:
low wages & bad working conditions
• Coop founded in 1995
• Mostly Latina immigrants who
own the business
• 5 coops with 100 members
• Wages of $15/hour plus health
• Environmentally friendly
cleaning techniques
Greyston Bakery (Yonkers, NY)
Pioneer Human Services - Seattle (WA)
• Nonprofit founded in 1962 to
serve clients – ex-offenders
and drug abusers
• Initially nearly 100% grant
funded
• Today employs 540 people,
most from their client base, in
network of their own for-profit
businesses (hotel, catering,
manufacturing)
• $78 million revenue; almost no
grant funding
• Anchored in the community
New Community Corporation of
(Newark, NJ)
• Founded in 1968 by
Monsignor William Linder
• Employs 600+ residents of
local neighborhoods
• Community-based
business ownership
• Developed shopping
center that houses
community-owned
business and services
• Assets exceed $500 million
• Income recycled to
support day-care and after
school programs, health
services, Youth
Automotive Training
Center
Market Creek Plaza(San Diego, CA)
• Former brownfield site
• Community-designed mixed-use
development; $65 million commercial
and cultural complex in low-income
neighborhood
• Community ownership: 423 residents
own shares worth $500,000; 20% of
equity; will increase to 50% equity
• Neighborhood foundation owns
20%; will increase to 50%
120+ Employees – about 35% Members
o One of the largest food production
facilities in a core urban area
o 3.25 acres growing area
o 3 million heads of leafy greens/year
o 300 thousand pounds of herbs/year
o Currently 38 employees
o Estimate 45 employees total
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o LEED Gold Commercial Laundry Facility
o 18 Customers: Hospitals, Nursing Homes,
Hotels
o Capacity of 10 million lbs. / year (processing 6
million currently)
o 48 full-time employees – estimating 50 total
o First profitable year since inception
2
o Commercial Solar Panel Installations
o LED Lighting: retrofits and new construction
o Residential Weatherization and Renovations
o 20 Glenville homes renovated in last year
o Currently 19 employees – estimating 30 total
o Assembling Green Energy Fund
2
120+ Employees – about 35% Members
An Innovative 30
Cleveland Foundation
Cleveland, Ohio
Deploying All Resources
Vermont Community
Foundation’s
Food and Farm Initiative
• Awarded $800,000 in grants
to state organizations working
to connect Vermonters to
healthy food.
• Supported state legislation
to create Farm to Plate
Initiative.
• Member of Farm to Plate
Network.
• 5% of donor advised funds
invested locally.
• VCF helped create VT Farm
to School Network pilot.
Greater Cincinnati Foundation
Cincinnati, Ohio
After shooting of unarmed black
youth by Cincinnati police in 2001,
Task Force determined lack of
economic opportunity was a
contributor. Foundation led
community effort to create a
Minority Business Accelerator.
MBA since 2003:
• Secured spending
commitments from 40
corporations, nonprofits.
• Created nearly 2,000 jobs.
• Helped firms grow; average
revenue now $29 million.
• Set up $2 million loan fund.
Arizona Community Foundation
Phoenix, Arizona
Through its
Community Impact
Loan Fund, now at $2
million, Arizona
Community
Foundation loaned
$375,000 to the Desert
Botanical Garden.
The loan enabled the
Garden to install a new
irrigation system,
which over time, will
save the Garden
hundreds of
thousands of dollars.
Incourage Community Foundation
Wisconsin Rapids, Wisconsin
“This can’t be just
about accumulating
assets & distributing
5 percent…If we
focused on that in
the midst of crisis,
we wouldn’t be
meeting the
changing needs of
our community,
because everywhere
we went, people
were crying out for
jobs.”
Total assets: $ 34.6 mil.
Donor advised funds: $ 3.1 mil.
Grants: $ 2.5 mil.
You
&
the Growing Community
Wealth Movement
Thank you!
&
Happy St. Patrick’s Day
(time for a locally-owned and made beer?)
For more information:
www.community-wealth.org
www.democracycollaborative.org
[email protected]