The City of Cleveland partnered with the Cleveland Foundation to establish the Evergreen Cooperative Development Fund, aimed at creating employee-owned cooperatives that provide local services to anchor institutions and target low-income residents. The initiative has launched successful projects like an employee-owned laundry service and a greenhouse producing leafy greens, which have resulted in significant local employment and wealth creation. Overall, the cooperative model demonstrates a community-focused approach to economic development, enabling residents to earn equity and improve their local economy.

1. City of Cleveland
EVERGREEN
COOPERATIVES
IEDC Annual
Conference
October 8, 2013

2. Project Partnership
The City of Cleveland was approached by the Cleveland
Foundation to participate in the Foundation’s Greater
University Circle Initiative
The Foundation established the Evergreen Cooperative
Development Fund
The Fund will support start-up companies that provide local
services to the City’s institutions (hospitals, governments,
universities).
Fund start-ups will be cooperatives and target low-income
residents to become employee-owners
The City will use Empowerment Zone, HUD 108, and other
funds to assist in the financing of these important job- and
wealth- creation projects.

3. Anchor Institutions
• Anchor institutions are large economic drivers
that remain constant in our community.
• Businesses seek to co-locate with these
institutions
• Cleveland Anchor Institutions:
– Cleveland State University
– University Hospitals
– Cleveland Clinic
– NASA
– Cuyahoga Community College
– St. Vincent’s Hospital
– Metro Hospitals

4. Leveraging Anchors
• Cleveland’s anchors make billions of
dollars in purchases of goods and services
• Can we provide those goods and services
locally?
• Can we locate these providers in
surrounding, challenged neighborhoods?
• Can we do so in a way that provides jobs
and grows wealth in our community?

5. Evergreen Initiative
• Create a system of cooperative, employee-
owned businesses
• Target to market needs
• Get “Experts” to Manage the Start-Up
• Leverage the purchasing of institutions
• Locate in & employ neighborhood residents
• Create wealth for the community

7. Evergreen Cooperative
Laundry
- Provide laundry services to Cleveland’s
hospitals and nursing care facilities.
- Universities, Hospitals, and Nursing Facilities
privatize laundry services
- Laundry contracts were coming available in
the upcoming years
- Providing neighborhood service would
reduce fuel and transport fees

8. Community Benefits
Provide training in:
• Job-specific Skills
• Life Skills
• Management Skills
Provide employment
opportunities for neighborhood
residents
Provide opportunity for wealth
creation in the community

9. Project Funding
 $1.5 Million in City of Cleveland Empowerment
Zone/HUD 108 Funds
 $750,000 Loan from ShoreBank
 $1,326,500 from the Evergreen Cooperative
Development Fund
 $1,373,500 in New Markets Tax Credits
Investments
 $200,000 in City of Cleveland EDA Title IX
Working Capital Loan
 $250,000 in Commonwealth Fund loan
 $183,500 in Enterprise Grant

10. Project Funding

11. Project Results
 LEED- Certified
Building
 10 Million lb
Capacity
 Opened for
business:
October 2009

12. Employment Results
TOTAL EMPLOYMENT: 22
CLEVELAND RESIDENTS: 19(86%)
MINORITIES: 19 (86%)
CRIMINAL CONVICTIONS: 18 (81%)
FORMERLY INCARCERATED: 14 (64%)

13. Opportunities
 Employees have moved into
supervisory roles
 Employees have selected leaders
who are training for roles on the
Evergreen Board.
 Employees have earned equity in
Evergreen

14. Green City Growers
- City owned most parcels on a 10-acre site
ideal for a greenhouse.
- Greenhouse could produce leafy greens that
would be marketed to institutions and
groceries
- Institutions to leverage their suppliers to
locally source produce
- Market for leafy greens was ideal for local
production.

15. Project Funding
Total Sources $16,476,896
Cleveland HUD 108 Loan $ 8,000,000
NMTC Investor Equity (PNC) $ 4,761,900
Cleveland BEDI Grant $ 2,000,000
Evergreen Development Fund $ 1,400,000
Project Grants $ 415,000
Cleveland EDA Equipment Loan $ 250,000
City of Cleveland NDP Grant $ 40,000

16. Project Results
 150,000 sq. ft.
Greenhouse
 Largest food
production
greenhouse in an
urban area in US
 Produces
3,000,000 heads of
lettuce annually
 1% of product
donated to
Cleveland Food
Bank

17. Employment Results
TOTAL EMPLOYMENT: 24
CLEVELAND RESIDENTS: 20(83%)
MINORITIES: 19 (79%)
CRIMINAL CONVICTIONS: 4 (16%)

18. Conclusions
Reproducable Model
People-Planet-Profit ROI
Community-based Investment
• Employees Earn Equity valued
at $60,000 in 10 years
• Re-invest Equity in Community

19. City of Cleveland
Department of Economic Development
David Ebersole
Brownfield Program
Manager
(216) 664-2204
debersole@city.cleveland.oh.us