Big Ideas for Small Business: CBA presentation to CDC 9.19.13


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Big Ideas for Small Business: CBA presentation to CDC 9.19.13

  1. 1. 1 Community Benefit Agreements A model of Self Help and Economic Development for Cleveland Presentation to the Community Development Corporations September 19, 2013 Presenters: Brian Hall, GCP COEI Natoya Walker Minor, City of Cleveland Designed by a collaboration of stakeholders who view CBAs as a tool to spur economic growth, fuel the local economy, ensure diversity & inclusion, and create a construction pipeline of ready employees. September 19 2013
  2. 2. Why CBAs as a Tool for Economic Growth? “Self Help”: invest locally/employ locally to sustain Cleveland’s economy To deliver the high-quality construction projects. Demand for construction services continues to grow: new buildings, stadiums, transportation systems, infrastructure and homes being built. 9/20/2013 2
  3. 3. What is a Community Benefit Agreement (CBA)? • A Community Benefits Agreement ("CBA") is a contract signed by community groups and a real estate developer that requires the developer to provide specific amenities and/or mitigations to the local community or neighborhood. In exchange, the community groups agree to publicly support the project, or at least not oppose it. • Often, negotiating a CBA relies heavily upon the formation of a multi-issue, broad based community coalition including community, environmental, faith-based and labor organizations 9/20/2013 3
  4. 4. Economic development projects are often heavily subsidized by taxpayer dollars---without guarantee that a project's “ripple effects” = whose opportunity? The CBA model was created in the late 1990s as a way for the communities most impacted by economic development projects to participate in the planning process and seek to ensure that development benefits will accrue to existing communities. CBAs are a legal document; can be used in place of or in tandem with a PLA. 9/20/2013 4
  5. 5. Public/Private Partnership Building and sustaining diversity have emerged as key issues that construction companies must address. Building and sustaining diversity have emerged as key issues that construction companies must address as they invest for the future. For many of the industry’s leading companies, diversity initiatives—involving women and racial and ethnic minorities—have become an integral part of their strategies 9/20/2013 5
  6. 6. 9/20/2013 6 History of CBA Research in Cleveland March 17, 2011 GCP Meeting • An estimated $8 billion in development • Critical Questions: 1. Do we have a prepared workforce to meet demand? 2. Do we have MBE & FBE firm with capability (access to capital, bonding, insurance, experience)?
  7. 7. 9/20/2013 7 Following Meeting - Three Tracks: 1. GCP leadership (Dick Pogue & Dennis Lafferty) 2. Four African American contractors work with Retired Congressman, Louis Stokes, of Squires Sanders 3. City of Cleveland deep dive into CBA, Community Benefit Policy, Community Workforce Agreements
  8. 8. 9/20/2013 8 Partners & Endorsers: MOU Signers: • City of Cleveland • Cleveland Building & Construction Trades Council • Cleveland Municipal School District • Construction Employers Association • Cuyahoga Community College • Greater Cleveland Partnership • Hard Hatted Women • Hispanic Roundtable • Urban League of Greater Cleveland Endorsers: • Coleman Spohn • J. W. Todd & Associates • McTech • Ozanne Construction Thought Leaders: • Esperanza • University Hospitals • JATC’s
  9. 9. 9/20/2013 9 Challenges: • Trust • History • Respect
  10. 10. 9/20/2013 10 Value Added: Our biggest asset was timing. Result: • Political Will • CBCTC Labor Will (including JATCs) • Contractor Will • CMSD Will • CCC Will • Greater Cleveland Urban League
  11. 11. 9/20/2013 11 Stakeholder Collaboration • Contractors, Advocates, Stakeholders & City begin regular convening. • GCP holds meeting on March 16th to roll out recommendations from their 1 year focus groups & interviews. • Decision made to begin to work together/collaborate.
  12. 12. 9/20/2013 12 Development of a MOU for CBA: • Many hours of long meetings. • Carve out of what’s important? What’s required • Defining the elements of a CBA • Discussion who is at table and who is not that should be • Buy in required = concessions • GCP loan attorney from Jones Day • Development of MOU for CBA
  13. 13. 9/20/2013 13 Who Will Oversee This Initiative ? A joint effort between the City of Cleveland and the Commission on Economic Inclusion. Sub-Committees: Community Owner Pre-Apprentice & Workforce Sub-Contracting
  14. 14. 9/20/2013 14 Highlights of MOU/CBA: • Private Sector • Why? The City of Cleveland has had community benefits via codified ordinances for years. • Voluntary • Reporting • Replication of City Ordinances • Developing the Construction Pipeline (PreApprentice &Apprenticeship Framework)
  15. 15. 9/20/2013 15 City of Cleveland Community Benefit Policy • Codified Ordinance 123 Prevailing Wage • Codified Ordinance 187 Cleveland Small Business • Codified Ordinance 187A Local Producer Sustainable Development • Codified Ordinance 188 Cleveland Resident Employment Law • Codified Ordinance 189 Living Wage • ***Green Building Standards will be incorporated.***
  16. 16. 9/20/2013 16 CBA Next Steps Owner Endorsement of sections 4, 5, & 6 of MOU for CBA – September 16th. Now What? Continue building trust Continue working with the JATCs Conduct a Demand Study Work with OSAC to get Max Hayes recognized with direct entry. Work with OSAC to get CCC registered. Identify funds to initiate a Demand Study
  17. 17. 9/20/2013 17 Next Steps : Follow up the CBA recommendation to initiate a “Demand Study” (funding from TCF and City). Continue working with CBCTC, CEA, CMSD, and CCC to get their pre-apprentice programs Recognized by the Ohio State Apprentice Council (OSAC). Continue to work with Owners to have CBA incorporated into major development projects. Continue working through the 5 SubCommittees: Community Owner PreApprentice/Apprentice Utilization SubContractor Workforce Reporting
  18. 18. 9/20/2013 18 Comparative Analysis of 10 Recommendations from Pogue/Lafferty Report to City Actions to Date 10 Recommendations from Pogue/Lafferty City of Cleveland Actions To Date Public Private Partnership The City and GCP have worked hand in hand to execute, develop and enforce the CBA. From the beginning, the MOU for CBA has included the private sector, labor, government, and non-profit. This continues on the Executive Committee of the CBA Committee. Community Wide Advisory Committee In March 2013, as component 7 of the MOU for CBA, a Community Wide Advisory Committee was established. There are approximately a 60 persons representing the following: community, faith, non-profit, sub-contractor, owners, and pre-apprentice & workforce. GCP/COEI Priority In December 2012 the GCP Board passed a resolution in full support of the MOU for CBA. CBAs in Private Sector 1. On September 6, 2013, Cleveland Clinic initiated a Mentor/Protégé Program with 8 Cleveland Primes and 8 Cleveland certified MBE & FBEs. 2. On September 16, 2013 10 Owners in the City of Cleveland signed an Endorsement of sections 4 [Workforce Reporting], 5 [Mentor Protégé, MBE & FBE, and Resident Workforce], & 6 [Assistance to Contractors, Apprentice & PreApprentice Uitlization] of the MOU for CBA. Monitoring Monitoring is a component of the MOU for CBA that was signed February 26, 2013 Financial Assistance Contractor Assistance is a component of the MOU for CBA signed February 26, 2013 Labor Research Proposal has been received. In process of making an award. Information Presently sharing information through the 5 SubCommittees of the GCP Committee. Exploring an IT solution. Education In process of [August 2013] developing an Operating Agreement with CBCTC so that both Max Hayes and CCC will become a Recognized Apprentice Provider. The draft and the curriculum are currently being reviewed by CBCTC. A component of both is an Articulation Agreement that allows the student to earn college credit. Funding Two funding sources have been identified: TCF at $30,000 City of Cleveland at $25,000 Note: Congressman Stokes was not apart of this report but rather provided the legal analysis and framework for 4 African American contractors when then entered into contract with Squires Sanders
  19. 19. 9/20/2013 19 Questions and Answers