CBA Overview—What They Are and What They Aren’t. David Marcello The Public Law Center May 10, 2011

What is a Community Benefits Agreement (CBA)? A CBA is an enforceable contract directly negotiated between a developer and a Community Benefits Coalition (CBC).

How Do CBA’s Compare to Public- Private Partnership Agreements? Public-PrivateCommunity PartnershipBenefitsAgreement DEVELOPER CBC CITY

What do economic development projects need to succeed? Many projects need “public benefits” or “subsidies” iin the form of: –Zoning approval –Favorable financing –Infrastructure improvements To get approval for these public benefits, project developers often need public (community) support.

What do developers get out of a Community Benefits Agreement? The Community Benefits Coalition agrees to support the project with public testimony and written statements. Community support reduces risk for developers by uniting city government and community groups behind the project. Developers more reliably get needed public subsidies or government approvals.

Members of the CBC negotiating team seek Community Benefits. The CBC negotiating team represents the interests of the entire community affected by a proposed development. No member of the CBC negotiating team may receive a direct benefit from the CBA. “Transparency” is the key to success of the CBA process: No backroom deals. TPLC Website has Operating Principles.

What types of benefits have CBA’s provided to communities? Local and Minority Hiring Commitments A Living Wage and Benefits Educational Partnerships Between Developers and Community Schools Physical Improvements to Open Spaces, Parks, and Playgrounds Affordable Housing and Rehabilitation Senior Centers and Child-Care Facilities

What’s the economic impact of a “local hiring” commitment? Conservatively, salaries turn over in our community 3 times. Without local hiring, the community could lose the economic impact of these salaries in their neighborhood. Both developers and neighbors benefit from stronger neighborhoods where expensive investments are located.

CBA’s: No Answer to “NIMBY” NIMBY: “Not in my Back Yard” Interests that are unalterably opposed to a project will not join or sign a CBA, since their overriding goal is to kill the project. “Community Benefits” are only produced if the proposed project gets built. CBA’s facilitate development—and benefits for the community: Win-Win.

CBA’s: Aren’t “New Taxes” Nor Are They “Tax Breaks” Additional tax revenues derived from new development bring “benefits” to the larger “community,” but that’s not the “benefit” associated with CBA’s negotiated by CBC. Tax breaks negotiated in PPP, not CBA. CBA = Private agreement between Developer and Community Coalition New taxes or “forgiveness” of tax = Public

CBA’s: Not a “CPP” or “NPP” CBA’s exist independently of formal public participation programs. Successful CBA’s are no substitute for a CPP or NPP. We can have successful CBA negotiations without a CPP or NPP. CPP and NPP are very worthy subjects for discussion at a symposium all their own.

CBA’s: Not “inward” looking; focused “outward” on benefits We’ve always had “internal” negotiations to diminish the project’s adverse impacts. “External” focus of CBA’s is the new feature—positive contributions to the area outside of the project’s boundaries. And CBA’s allow neighborhood residents to represent themselves; no need to rely on government to protect their interests.

How can city and state government support CBA’s? Inform community coalitions of proposed developments. Encourage developers to enter good-faith negotiations with responsible community coalitions. Respect the negotiating process and honor community coalition’s agreement. Fold CBA’s into PPP agreements, where appropriate for added enforcement.

Why should we support CBA’s? Equity—It’s only fair that neighborhood residents affected by a project enjoy some benefits from its presence in their area. Economic Development—Increased earnings by area residents “roll over” into support of local small businesses. Functionality—Development just works better when parties are on the same page.

How do YOU define “Economic Development”? Recruiting new business. BUT ALSO Paying good wages and benefits. Supporting local small businesses. Giving a hiring preference to high school graduates: Build workforce development into the CBA system. Sustaining stable neighborhoods.

Consider All Options to Rebuild Post-Katrina, we must consider all options to rebuild our economy and communities. Community Benefit Agreements are a new solution for community recovery. Government cannot solve the problem on its own. We must put private sector resources at the center of recovery. CBA’s create a partnership among public, private sector, and community resources.

Community Benefit Agreements Reduce risk for developers. Revitalize local businesses by providing a living wage and benefits to area residents. Create partnerships among developers, city government, and community groups. Provide benefits to communities directly impacted by proposed developments. CBA = Innovative Recovery Strategy