Big Ideas for Small Business: CBA presentation to CDC 9.19.13
Community Benefit Agreements
A model of Self Help and Economic Development for Cleveland
Presentation to the Community Development Corporations
September 19, 2013
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
Why CBAs as a Tool for Economic Growth?
“Self Help”: invest locally/employ locally to sustain Cleveland’s
To deliver the high-quality construction projects.
Demand for construction services continues to grow: new buildings,
stadiums, transportation systems, infrastructure and homes being built.
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
• 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
Economic development projects are often heavily subsidized by
taxpayer dollars---without guarantee that a project's “ripple effects” =
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
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
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
2. Do we have MBE & FBE firm with
capability (access to capital, bonding,
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
Partners & Endorsers:
• 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
• Coleman Spohn
• J. W. Todd & Associates
• Ozanne Construction
• University Hospitals
Our biggest asset was timing.
• Political Will
• CBCTC Labor Will (including JATCs)
• Contractor Will
• CMSD Will
• CCC Will
• Greater Cleveland Urban League
• Contractors, Advocates, Stakeholders & City begin
• GCP holds meeting on March 16th to roll out
recommendations from their 1 year focus groups &
• Decision made to begin to work together/collaborate.
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
• Buy in required = concessions
• GCP loan attorney from Jones Day
• Development of MOU for CBA
Who Will Oversee This Initiative ?
A joint effort between the City of Cleveland and
the Commission on Economic Inclusion.
Pre-Apprentice & Workforce
Highlights of MOU/CBA:
• Private Sector
• Why? The City of Cleveland has had community
benefits via codified ordinances for years.
• Replication of City Ordinances
• Developing the Construction Pipeline (PreApprentice
City of Cleveland
Community Benefit Policy
• Codified Ordinance 123 Prevailing Wage
• Codified Ordinance 187 Cleveland Small Business
• Codified Ordinance 187A Local Producer
• Codified Ordinance 188 Cleveland Resident
• Codified Ordinance 189 Living Wage
• ***Green Building Standards will be incorporated.***
CBA Next Steps
Owner Endorsement of sections 4, 5, & 6 of MOU for
CBA – September 16th.
Continue building trust
Continue working with the JATCs
Conduct a Demand Study
Work with OSAC to get Max Hayes recognized with
Work with OSAC to get CCC registered.
Identify funds to initiate a Demand Study
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:
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 &
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
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