| “If it’s not growing, it’s going to | | | | CBA. If enough stakeholders come together with |
| die.” | | | | a common vision for economic development, |
| …Michael Eisner | | | | developers are likely to want to negotiate an |
| In 2009 north Minneapolis community coalitions | | | | agreement. The CBA process offers developers |
| need to implement a “40/40/40 Community | | | | and attractive alternative to litigation and polarizing |
| Benefits Agreement” with any organization | | | | public debates. (The University of Minnesota should |
| planning to develop, create or build in the | | | | have been held to a more comprehensive CBA |
| community. A community benefits agreement, or | | | | then the one NRRC has or is authoring). |
| CBA, is a private contract between a developer | | | | With a comprehensive CBA (40/40/40), the |
| and a community coalition that sets forth the | | | | University of Minnesota would have been severely |
| benefits that the community will receive from the | | | | “twisted” for pulling out of NorthPoint |
| development. Common benefits include living | | | | Health and Wellness Clinic and rather than FIPSE |
| wages, local hiring and training programs, | | | | (Fund for the Improvement of Postsecondary |
| affordable housing, environmental remediation and | | | | Education) waving $750,000.00 in funding |
| funds for community programs. CBAs ensure that | | | | opportunities in the communities face, they would |
| development is equitable and benefits all members | | | | have been required to develop (with community |
| of the community, eventually contributing to | | | | input from people that have been successful in |
| stronger local economies, livable neighborhoods | | | | business and community engagement) a working |
| and increased public participation in the planning | | | | model that not only benefited the community and |
| process. | | | | FIPSE, but also “recaptured” funds that |
| The 40/40/40 CBA is structured to insure there | | | | were originally invested in business, projects and |
| is a equal spread of 40% investment into the | | | | people. CBAs ensure that the developer’s |
| community before (development and | | | | promises regarding community benefits are legally |
| construction), 40% during (employment of | | | | enforceable. Developers like the University of |
| community residents) and 40% after (a set level | | | | Minnesota - who are not really |
| of community engagement based on earned and | | | | “developers” – but scientists, |
| applied funding streams to benefit the community | | | | anthropologists and administers hold the upper |
| in the form of grants and program support). This | | | | hand when it comes to dollars they are |
| blanket agreement should be applied to agencies | | | | “pitching” for a project and often make |
| like the University of Minnesota, Metropolitan | | | | promises that are never written into the |
| Transit, local banks and any developer or City of | | | | development agreement, or are never enforced |
| Minneapolis coalition coming into north Minneapolis | | | | even if they are included. This is especially true of |
| with a proposed projects. | | | | promises about jobs being created for local |
| For example, in New York City, “Community | | | | residents. CBAs commit developers in writing to |
| benefit,” of course, is a euphemism for | | | | promises they make regarding their projects, and |
| “legal shakedown.” From a potential | | | | make enforcements much easier. Such |
| developer’s perspective, it represents a | | | | agreements generate a collaborative relationship |
| pre-negotiated bribe paid to politicians and their | | | | from the beginning avoiding community objection |
| allies for the right to attempt to create new jobs, | | | | and costly delays. |
| and to bolster the city’s revenue base. But | | | | It’s not too late for a community coalition to |
| the practice is all the rage in New York these | | | | come together, author and deliver a detailed |
| days. Similar requirements accompanied the | | | | Community Benefit Agreement based on the 40 |
| recent Harlem rezoning deal, and “community | | | | 40/40 Rule that includes the community 100%. |
| benefit” shakedowns were integral to the new | | | | In the calendar year 2009, a standard “40/40 |
| Yankee and Shea baseball-stadium projects. | | | | 40 Community Benefits Agreement” can and |
| The second part to implementing a successful | | | | should be delivered to anyone coming into north |
| CBA or “40/40/40 CBA” is the people at | | | | Minneapolis to do business. This is the only way |
| the community coalition level. Coalition-Building: At | | | | the residents of north Minneapolis will be able to |
| the heart of the community benefits strategy is | | | | create education options, build wealth and create |
| coalition building. Organizing and maintaining a | | | | economic stimuli while gaining independence by |
| coalition, facilitating compromise and crafting a | | | | having “choices. |
| shared agenda is essential to creating a successful | | | | |