PERSPECTIVES FROM THE LOCAL GOVERNMENT

1. 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

2. 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)

3. Background: Creating Delaware’s First CBA • 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. INITIAL BENEFITS:

4. 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.

5. 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.

6. 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!

7. 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 thisbusiness, we will approve this. But we need neighborhood OK and support!

8. 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: • 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.) • The development is controversial (like the construction of a compost plant, casino, or giant stadium). • The community is a low-wealth one, lacks diverse resources, and could benefit from private dollars funding new jobs.

9. 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

10. 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)

11. 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)

12. 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.

13. Why CBA’s WORKfor 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.

14. Why CBA’s WORKfor 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.

15. 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.

16. 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

17. 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!