Community Benefits Community Benefits AgreementsAgreementsMore Important Now Than EverMore Important Now Than Ever

Equitable Detroit CoalitionEquitable Detroit Coalition

What Is Your Position….?What Is Your Position….?

Do you want tools that maximize returns on Do you want tools that maximize returns on local government investment in local government investment in development?development?

Do you want programs that will transform Do you want programs that will transform our region through stronger, more our region through stronger, more equitable economies? equitable economies? 

Do you believe that the community benefits Do you believe that the community benefits from smart business?from smart business?

Do you think that developers should be Do you think that developers should be accountable for their promises to local accountable for their promises to local governments and residents?governments and residents?

Do you think that public input results in Do you think that public input results in better projects that benefit the whole better projects that benefit the whole community?community?

The Paradigm of Public Input The Paradigm of Public Input is Changing in Detroit is Changing in Detroit There is a renewed belief that what is good There is a renewed belief that what is good

for business is the best public policy.for business is the best public policy. There are recent examples on the state There are recent examples on the state

level of passing legislation without any level of passing legislation without any public hearings or comments. public hearings or comments.

Under the auspices of financial Under the auspices of financial emergencies, local elected officials have emergencies, local elected officials have been marginalized.been marginalized.

Under the auspices of financial crisis, Under the auspices of financial crisis, entire municipal departments have been entire municipal departments have been rolled into nonprofit organizations, where rolled into nonprofit organizations, where the role of public input and oversight is not the role of public input and oversight is not yet clear.yet clear.

What Are Community Benefits What Are Community Benefits Agreements (CBA)?Agreements (CBA)?

CBA is an opportunity for a community group to CBA is an opportunity for a community group to formally have their goals, objectives and concerns formally have their goals, objectives and concerns incorporated into a written agreement with a incorporated into a written agreement with a developer.developer.

The CBA is signed contract between a developer The CBA is signed contract between a developer and community group or a coalition that requires the and community group or a coalition that requires the developer to provide specific amenities and/or developer to provide specific amenities and/or mitigations to the community.mitigations to the community.

In exchange for the CBA, the community will In exchange for the CBA, the community will support the developer’s project.support the developer’s project.

Community support for a project, minimizes the Community support for a project, minimizes the developer’s risk.developer’s risk.

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

What Do CBA’s Cover?What Do CBA’s Cover?

Each community will determine the issue(s) that Each community will determine the issue(s) that impact them. Some examples are:impact them. Some examples are:

smart growth,smart growth,gentrification,gentrification,environmental justice,environmental justice,permanent improvements to the lives of the permanent improvements to the lives of the affected residents,affected residents,local hiring goals,local hiring goals,job training,job training,minority/women/local contracting goalsminority/women/local contracting goals

CBA CautionsCBA Cautions

Ensure those negotiating for the Ensure those negotiating for the community actually represent community actually represent the community.the community.

Need to determine who Need to determine who negotiates on behalf of the negotiates on behalf of the community.community.

Maximize the enforceability of Maximize the enforceability of the CBAthe CBA

My First CBAMy First CBA

From 1995 to 1999, I was working with the lead From 1995 to 1999, I was working with the lead contractor for the Detroit Housing Commission contractor for the Detroit Housing Commission (DHC) on a $90 million renovation of Detroit’s oldest (DHC) on a $90 million renovation of Detroit’s oldest public housing development called, Parkside public housing development called, Parkside Homes.Homes.

Parkside residents had long history of hostile Parkside residents had long history of hostile relationships with DHC.relationships with DHC.

Residents were mainly concerned at two things: 1) Residents were mainly concerned at two things: 1) that the redevelopment of Parkside would not that the redevelopment of Parkside would not include their input, and 2) they would not be include their input, and 2) they would not be permitted to move into the new units.permitted to move into the new units.

The contractor negotiated a CBA with the Parkside The contractor negotiated a CBA with the Parkside Resident Council (PRC). It included the following:Resident Council (PRC). It included the following:

1. PRC was funded $350,000.1. PRC was funded $350,000. 2. PRC would approve the revitalization plan that was 2. PRC would approve the revitalization plan that was

submitted to HUD for funding.submitted to HUD for funding. 3. PRC would sign off on all architectural designs for 3. PRC would sign off on all architectural designs for

the new Parkside. the new Parkside. 4. Parkside residents were “assured” they would be 4. Parkside residents were “assured” they would be

allowed to move back into the revitalized Parkside.allowed to move back into the revitalized Parkside. 5 Former Parkside residents would have first right to 5 Former Parkside residents would have first right to

move into the new Parkside move into the new Parkside 6. A mini-”United Way” was funded with a grant of 6. A mini-”United Way” was funded with a grant of

$1,000,000 to provide funding for on-site service $1,000,000 to provide funding for on-site service providers at Parkside. Residents would evaluate providers at Parkside. Residents would evaluate service providers and determine funding levels. service providers and determine funding levels.

P A R K S ID E R E S ID E N T S C O U N C IL 5 2 2 6 Frankfort

D e tro it , M ic h ig a n 4 8 2 1 3

November 1, 1996

Carl R. Greene, Director Detroit Housing Department 2211 Orleans Detroit, MI 48207

Re: Parkside Homes and Annex

Dear Mr. Greene:

This letter is to certify that the Parkside Resident Council has been involved in the plans for the redevelopment and redesign of Parkside Homes and Annex, including the proposed disposition of the site.

We have set a priority on retaining the maximum number of units for low-income families. We understand that to do this, it was necessary to generate significant additional funding. The approximately $27 million (gross) generated through . the disposition of the site to The Villages at Parkside, LLC will enable us to rehab or newly construct a total of approximately 570 units at The Villages at Parkside. In addition, the funds generated through the low income housing tax credits will also allow the creation of a Services Endowment Fund which will fund services at The Villages at Parkside well into the future.

Since January of 1995, the Parkside Resident Council has been involved in design meetings with staff from the Detroit Housing Commission and the URD Coordinator, Capital Needs Unlimited and the AlE, Nathan Johnson and Associates. All plan aspects are addressed through these meetings. This includes services, management and financing arrangements in addition to the physical design.

Changes have been made in the plan based upon resident input. As homeownership of units at The Villages at Parks ide, LLC, is precluded with the use of low income housing tax credits, changes have been made to the plan to establish a cluster of approximately forty (40) homeownership units at the northern end of the current Parkside Annex site.

In addition, we wanted to ensure that current residents of Parkside Annex, and recent residents of Parkside Homes, had the first right to return to Parkside, regardless of Parkside's ownership. This issue, along with others, were incorporated into the Revitalization Plan through a Further Assurances Agreement, a copy of which is attached, drawn up and signed by PRC and DHD prior to formal submittal to HUD of the Revitalization Plan. We also understand that The Villages at Parkside will continue to operate as public housing, despite the change in ownership.

We understand that the Disposition Applications for Parkside Homes and Annex are based upon and incorporate the information in the Parkside Revitalization Plan and the requirements of the Further Assurances Agreement.

As we have stated, we have been involved in the decisions concerning disposition and replacement housing. We are looking forward to this work beginning at Parks ide Homes and Annex. We have been working hard in our community for a long time and are pleased to be seeing the results.

Sincerely, Ja m e s C a rtw rig h t. P re s id e n t Parkside Resident Council

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