Community Benefits Agreements

1. Community Benefits Agreements The National Economics Department Financial Freedom Campaign NAACP

2. Agenda • What is a Community Benefits Agreement (CBA)? • The Birth of the CBA • CBA’s in Action: Examples of Success Stories • Why are CBA’s Needed? • CBAs V.S. Development Agreements • The CBA Development Process • How are CBAs Enforced? • Implementing A CBA • Advantages: Community and Developers • The CBA VS. NAACP Fair Share • CBAs & NAACP Unit Engagement • Resources

3. What Is A Community Benefits Agreement? • A Community Benefit Agreement (CBA) is a legally enforceable contract negotiated and executed directly between the developer and a community coalition of neighborhood associations, faith-based organizations, unions, environmental groups, and others representing the interests of people who will be impacted by proposed new developments.

4. The Birth of a CBA • During the initial construction of the Staples Center (1999), developers failed to consult with the local community. • Upon the Center’s completion, the surrounding neighborhoods experienced increased crime, congestion, etc. • When an expansion of the Center was being proposed, local businesses and residents decided to “provoke a dialogue” between them and the developers to ensure benefits for the community. • The Los Angeles Alliance for a New Economy (LAANE) worked with then City Council member Jackie Goldberg to incorporate community benefit provisions (including living wages, job training, etc)

5. CBAs In Action Used in various kinds of development: • Airport Modernization Projects (Los Angeles) • Industrial Projects (Los Angeles) • Sports related complexes (San Diego) • Hospital Expansions (New Haven) • Franchises for broadband internet access (Twin Cities) • Urban Renewal Projects (Milwaukee and Atlanta)

6. Why are CBAs Needed? • Development Projects are springing up in areas where low income residents and people of color have strong presences. • While these projects are said to bring much needed jobs and tax revenues to these communities, there often is no guarantee that these opportunities will benefit those who need them most. • CBAs give a role in the process to the community residents /stakeholders to help ensure that all parties needs are adequately addressed.

7. CBAs V.S. Development Agreements Community Benefits Agreements: • Are generally contracts between two private parties: a developer and a community coalition. • Not subjected to the same legal issues that public entities, such as a city would confront when entering an agreement with a developer. Development Agreements: • Also known as Public-Private Partnerships (PPP), are entered into between a developer and a city. • Community members are generally not involved in the bilateral PPP negotiations between a developer and a municipal entity. • PPPs must be legally evaluated in terms of their impact on the municipality’s exercise of its police powers and with regard to possible unconstitutional impairment of contracts.

8. The CBA Development Process

9. How Are CBAs Enforced? • CBAs are legally binding. They can be enforced only by a party that has signed it. • CBAs that are incorporated into Development Agreements can be enforced by the government as well as by community groups. • All CBAs generally contain carefully crafted provisions describing how commitments will be monitored and enforced. Each commitment usually has a defined term of years.

10. Implementing A CBA • Some require ongoing implementation by several entities. • A local hiring program, for example may require employees to send notice of job opportunities and to interview certain candidates while job training centers match applicants with available jobs and make prompt referrals. • Many community benefits require ongoing communication between community groups and the developer for a number of years. • CBA responsibilities can also be fulfilled well before development begins. • For instance, a developer could make a one time payment into an existing neighborhood improvement fund.

11. Key Community Advantages

12. Community Benefits Cont. • A living wage requirement for workers employed in the development • A “first source” hiring system, to target job opportunities in the development to residents of low-income neighborhoods • A space for neighborhood child care center • Environmentally- beneficial changes in major airport operations • Construction of parks and recreational facilities • Community input in selection of tenants of the development • Construction of affordable housing

13. How the Developers Benefit • CBAs garner community support for the project which increases the chances that the project will be approved. • CBAs may be a more cost effective way of sharing some of the benefits of the development than other means used in public approval processes. • CBAs provide more certainty that a project will not be challenged in court.

14. From Fair Share to CBA’s • In the past, the Operation Fair Share program was the primary diversity and inclusion imitative of the NAACP.

15. CBAs & NAACP UNIT ENGAGEMENT • The NAACP urges its units to join forces with already established coalitions that engage in Community Benefit Agreement work. • The NAACP will do its part to educate and encourage the use of Community Benefit Agreements where applicable, particularly with respect to the increased employment, contracting, and procurement opportunities that are made available as a result of these agreements.

16. More Information Anne E Casey Foundation – Neighborhood Development www.aecf.org/ The Center on Policy Initiatives www.onlinecpi.org/ The East Bay Alliance for a Sustainable Economy www.workingeastbay.org/ Working Partnerships USA www.wpusa.org/