Community Benefits Agreements

1. Community Benefits Agreements More Important Now Than Ever Equitable Detroit Coalition

2. What Is Your Position….? • Do you want tools that maximize returns on local government investment in development? • Do you want programs that will transform our region through stronger, more equitable economies?  • Do you believe that the community benefits from smart business? • Do you think that developers should be accountable for their promises to local governments and residents? • Do you think that public input results in better projects that benefit the whole community?

3. The Paradigm of Public Input is Changing in Detroit • There is a renewed belief that what is good for business is the best public policy. • There are recent examples on the state level of passing legislation without any public hearings or comments. • Under the auspices of financial emergencies, local elected officials have been marginalized. • Under the auspices of financial crisis, entire municipal departments have been rolled into nonprofit organizations, where the role of public input and oversight is not yet clear.

4. What Are Community Benefits Agreements (CBA)? • CBA is an opportunity for a community group to formally have their goals, objectives and concerns incorporated into a written agreement with a developer. • The CBA is signed contract between a developer and community group or a coalition that requires the developer to provide specific amenities and/or mitigations to the community. • In exchange for the CBA, the community will support the developer’s project. • Community support for a project, minimizes the developer’s risk.

5. The CBA can sometimes be incorporated into an agreement between the local government and the developer. This can give the local government the power to enforce the CBA.

6. What Do CBA’s Cover? • Each community will determine the issue(s) that impact them. Some examples are: smart growth, gentrification, environmental justice, permanent improvements to the lives of the affected residents, local hiring goals, job training, minority/women/local contracting goals

7. CBA Cautions • Ensure those negotiating for the community actually represent the community. • Need to determine who negotiates on behalf of the community. • Maximize the enforceability of the CBA

8. My First CBA • From 1995 to 1999, I was working with the lead contractor for the Detroit Housing Commission (DHC) on a $90 million renovation of Detroit’s oldest public housing development called, Parkside Homes. • Parkside residents had long history of hostile relationships with DHC. • Residents were mainly concerned at two things: 1) that the redevelopment of Parkside would not include their input, and 2) they would not be permitted to move into the new units.

9. The contractor negotiated a CBA with the Parkside Resident Council (PRC). It included the following: • 1. PRC was funded $350,000. • 2. PRC would approve the revitalization plan that was submitted to HUD for funding. • 3. PRC would sign off on all architectural designs for the new Parkside. • 4. Parkside residents were “assured” they would be allowed to move back into the revitalized Parkside. • 5 Former Parkside residents would have first right to move into the new Parkside • 6. A mini-”United Way” was funded with a grant of $1,000,000 to provide funding for on-site service providers at Parkside. Residents would evaluate service providers and determine funding levels.