Community Benefits Agreements Making Development Projects Accountable

Community Benefits CommunityAgreements Benefits Agreements Making Development Projects Accountable

by Julian Gross Legal Director, California Partnership for Working Families with Greg LeRoy of Good Jobs First and Madeline Janis-Aparicio of LAANE

published by Good Jobs First and the California Partnership for Working Families, a collaboration of the Center on Policy Initiatives, the East Bay Alliance for a Sustainable Economy, the Los Angeles Alliance for a New Economy, and Working Partnerships USA.

by Julian Gross Legal Director, California Partnership for Working Families with Greg LeRoy of Good Jobs First and Madeline Janis-Aparicio of LAANE

© Copyright 2005 Good Jobs First and the California Partnership for Working Families. All Rights Reserved. 2 | Community Benefits Agreements: Making Development Projects Accountable m ic andtimelyprocess foraccommodatingcom- CPWFalsoseeks tosecure asystemat- the public. r sothatthesocialandeconomic in California CPWF isworking development toreform policy and provide totheircommunities. areturn are invested inways thatare economicallysound Ourgoalistoensure thatpublic resources zation. (CPWF) isastatewide economicjusticeorgani- for Partnership The California Working Families W Partnership for California gro labor unionsintothesuburban sprawl/smart development subsidiesand bringing movement, Good Jobs isalsoactive First growth inthesmart vide family-wage jobsandothereffective results. seeking toensure thatsubsidizedbusinesses pro- mony tograssrootsgroupsandpublic officials andtesti- consulting, modelpublications, training, GJFprovides research, in economicdevelopment. andgovernmentmoting corporate accountability Good Jobs isanationalresource First center pro- Good JobsFirst eturn oninvestmenteturn istracked to andreported unity inputinto development decisions. orking Families wth debate. www.goodjobsfirst.org [email protected] 202-626-3780 W 1311 LStreetNW, Good Jobs First sigo,DC20005 ashington, www.onlinecpi.org [email protected] 619-584-5744 CA92108 San Diego, Suite100, 3727 CaminodelRioSouth, Center onPolicy Initiatives (CPI) www.wpusa.org [email protected] 408-269-7872 CA95125 San Jose, 107, Suite Road, 2102 Almaden W www.laane.org [email protected] 213-486-9880 90017 CA Los Angeles, 464 Lucas Ave, Economy (LAANE) Los Angeles Alliance foraNew www.workingeastbay.org [email protected] 510-893-7106 CA94612 Oakland, Suite325, 1714 Franklin Street, Economy (EBASE) East Bay Alliance foraSustainable Par The organizationsthatfoundedtheCalifornia orking Partnerships USA orking Partnerships tnership for tnership Working Familiesare: Table of Contents | 1 ...... 81 ...... 7 all Street Journal’s Real Estate Journal Article on CBAs Real Estate Journal all Street Journal’s ...... 91 Other Community Benefits as Part of CBAs Benefits as Part Other Community ...... 57 Implementation Experience—The Staples CBA ...... 29 ast Community Benefits Agreements Benefits ast Community ...... 88 Monitoring Commitments of CBA and Enforcement ...... 69 argeted Hiring of CBAs as Part Programs ...... 43 Living Wage Programs as Part of CBAs as Part Programs Wage ...... 35 Living CIM Project—Memorandum Attachment to DDA Attachment to DDA CIM Project—Memorandum ...... 120 “Economic Prosperity Element” Plan for the of General from Preliminary Draft Staples CBA ...... 94 W Los Angeles Times Article About Los Angeles Staples CBA ...... 113 P Current Benefits Campaigns Community ...... 85 Living Wage Section of the NoHo Commons CBAWage Living ...... 117 CBA BasicsCBA ...... 9 CBA Pros and Cons Pros CBA ...... 21 T ...... 3 Addressing Environmental Issues Through CBAsThrough Issues Environmental Addressing ...... 51 Changing the Paradigm ...... 75

ble of Contents ble of Appendix G: Appendix H: Appendix C: Appendix D: Appendix E: Appendix F: Appendix A: Appendix B:

City of San Diego...... 125 About the Authors About the Conclusion: Chapter Seven: Chapter Eight: Chapter Five: Chapter Six: Chapter Three: Chapter Four: Chapter Two: Acknowledgments Chapter One: Introduction Ta 2 | Community Benefits Agreements: Making Development Projects Accountable 3 Introduction | 3 enewal on ambitious and expensive economic and expensive on ambitious enewal The Economic Development Context the past decade,Over of cities number a growing pinned their hopes for the countryacross have r the CBAs describedthe CBAs in the original edition.We material in this preface on added extensive have benefits movement;the community chap- a new ter describing of the landmark implementation Angeles; in Los for the Staples development CBA appendix listing past CBAs;a new appen- a new dix describing some current benefits community campaigns; sections on legal new and several issues, benefits victories, community and new of also included an overview have approaches.We Angeles International for the Los CBA the recent Airport, benefits valued for community providing half a billion dollars,at over and a special section this CBA. legal aspects of on unusual

have updated and revised this publication to this publication updated and revised have unity needs — are safeguards to ensure that to ensure safeguards unity needs — are unity partnerships the country. around Community Benefit Agreements (CBAs) — deals Agreements (CBAs) Benefit Community of community and coalitions developers between organizations, range of com- a broad addressing m in the benefits of major share affected residents groups to community developments.They allow in shaping a project, a voice have for to press to their par- tailored benefits that are community ticular needs, promises. developer’s and to enforce new only one aspect of a growing are CBAs benefits in land- community towards movement use planning, labor-com- taking shape through m We our experienceshare in implementing some of The Community Benefits Movement and CBAs Introduction 4 | Community Benefits Agreements: Making Development Projects Accountable h o rainpoetoso eeoe,but the jobcreation projections ofdeveloper, oftenrely on wide rangeofstakeholders.They vision andplandeveloped withtheinputofa developers—rather apublic thanfacilitating thevisions andplansof limited tofacilitating oftenseetheirrole asbeing efits oftheirchoices, aboutthecosts andben- meaningful information expand theirtaxbasesandpresented withlittle eagerto Localgovernments, land useapplications. r expendmostoftheir thesedepartments nents,” county governments have “planning compo- by the locallevel are beingdriven forthemostpart at thepublic-private partnerships Unfortunately, ed officialsandstaffatthecitycountylevel. urban development islandinginthelapsofelect- responsibility formajordecisionmakingon ments, construction g anddevolution hasshiftedpro- urban budgets, federal government to hasslasheditscontribution the push forurbaneconomicdevelopment.As Local government hasplayed a centralrole inthe urban neighborhoods. and takingupresidence in Asian immigrants andLatin American dle-class “urban pioneers” withgrowing populationsofbothmid- increases, population citiesare experiencing large U.S. many Fortimeindecades, thefirst phenomenon. opment iscloselylinked tothe “back tothecity” The new emphasisonaggressive economicdevel- money incitiesallaround thecountry. opments are increasingly beingbuilt withpublic upscale residential projects andothersuchdevel- retail outlets, box” officeparks,“big hotels, arenas, entertainment stadiums, Sports economic growth. tofuel a deepeningreliance onthesepartnerships reflecting $50 billionperyear ontheseprograms, countiesandcitieswere spendingcloseto states, Bythelate ‘90’s, public/private partnerships. development programs accomplishedthrough esources andother ontheprocessing ofpermits rams like workforce development andhousing the private sector.Although mostcityand the private sector.Although away from f from away ederal andstategovern- be attachedtopublic subsidiesandmajorlanduse measures should What conditionsorperformance a renaissance inurban areas across thecountry? gr annual investment inlocaleconomiestoaddress nities take advantage ofnearly$50billion in about economicdevelopment? How cancommu- m tion isneededforlocalgovernments andcom- sector inguidingurbangrowth? What informa- istherole ofthepubliclocal government.What ment therefore present ahostofquestions for Large-scale expenditures oneconomicdevelop- middle-income communities. housing anddecliningqualityoflifeforlow and ofaffordable acrisis unplannedgrowth, sprawling, reg metropolitan in economicdevelopment, lars even afterinvestingConsequently, billionsofdol- policies inasystematicway.“growth withequity” haveand equity—few ifany jurisdictions pursued the “Three E’s”—the theenvironment, economy, notion thatdevelopment shouldbegoverned by GrowthSmart proponents have advanced the mired inanendlesscycleofpoverty.While some mostlypeopleofcolor, families, low income, leaving low-wage sectorjobs, retail andservice Other projects create ofdead-end largenumbers low-income rise. residents ashousingprices pushingout ments causeinner-citygentrification, Many new develop- residents. will benefitcurrent oftheprojects guarantee thatthe effects” “ripple there isusuallyno that have beendisinvested, sorely neededjobsandtaxrevenues backtoareas many oftheseprojects bring dwellers.While they produce decidedlymixed results forcity are oftenheavily subsidizedby taxpayer dollars, whileeconomicdevelopment projects Therefore, applied onaninconsistentandpiecemealbasis. m the costsandbenefitsofdevelopment forcom- Standards forassessing about actualjobscreated. they haveafter construction littleinformation unity stakeholders to make informed choices unity stakeholders tomake informed are generally ifsuchstandards exist, unities, ow ions continue to experience spiralingpoverty,ions continue toexperience ing inequalityandurbanpoverty andcreate Introduction | 5 how many thousands of affordable many how e.g., ional planning processes. jurisdictions, In many y practitioners have recognized the need to recognized y practitioners have uch-needed private capital into underinvested uch-needed private olicy Link, Defense and the Natural Resources edirected towards community services.The community towards edirected amily-sustaining jobs in the urban core, bringing housing units have been built,housing units have of tens many how been guaran- jobs have wage thousands of living teed, been millions of dollars many have and how r to build a vehicle has also provided movement deeper involve- the coalitions that promote broad constituencies,ment of new including communities of color, the organized labor movement, low- and their institutions,income urban residents and social service providers. this reason, For prominent champions of Smart Growth, such as the Sierra Club,Alliance, the Greenbelt Defense,America,Environmental Smart Growth P Council, benefits embraced the community have regions. in different movement In most locations, is benefits work community integrallyarisingremains connected from—and movement.to—the Smart Growth the past Over decade, been suc- have advocates Smart Growth development, sprawling cessful at combating by bringing balance and such issues as jobs-housing of to the center transit-oriented development reg a set of being from has progressed Smart Growth gov- to becoming official advocates by proposals ernment policy. has matured, movement As the Smart Growth ke on Smartexpand the scope of the policy debate “environmen- defined narrowly beyond Growth tal” engage such challenges as creating issues to f m of displacement while avoiding communities families, and middle-income low-income and services range of public the that providing communities,”“livable with constitute together attention to child care, care, health and parks and open space. Smart gives benefits movement The community policy tools a set of concrete advocates Growth that can be outcomes in ways these to advance measured: —the simple proposition that —the simple proposition th issues. wth, dollar its multibillion to leverage in order oid the fractured land use politics of the past oid the fractured ow orked individually and collectively to realize the to realize and collectively individually orked rassroots organizations to understand organizations state fiscal rassroots uilding grassroots capacity and expertise to community benefits community A New Movement grapple their responsi- with As local governments and land use pat- bility to shape development terns, emerged to challenge has movement a new vision. thinking and offer a broader conventional on the concept of is centered This movement several decades? several entitlements? What are the goals of economic the What are entitlements? maximize demo- to Is it desirable development? cratic, participation civic economic devel- in the and,opment process if so, is the best means what partnershipsWhat new to can be built to do so? av tremendous social justice potential of economic tremendous and land use planning.Thedevelopment move- rapidly,ment is spreading taking hold in metro- the country,politan regions across including Denver, Milwaukee, Minneapolis/St. Paul, Miami, Atlanta, Boston, Seattle, York City, New Chicago, and Washington D.C. the main purpose of economic development is to the main purpose of economic development bring measurable, to permanent improvements of affected residents,the lives particularly those in neighborhoods.Thislow-income movement new a more is pressuring sector to play the public urban strategic in land use planning and role gro creation sector toward in the private investment of good jobs, housing, affordable and neighbor- of life for the quality hood services that improve all residents. fiscal analysis and as the state Just Network Analysis and Research Economic capacity within building (EARN) alliances are g issues, is benefits movement the community b impact a wide range of land use and urban gr began in movement benefits The community California, organizations in Los where Angeles, San Diego, have and the East Bay San Jose w 6 | Community Benefits Agreements: Making Development Projects Accountable CBAs are now inplaceformajordevelopments ment ismeasurably improving people’s lives. thecommunity benefits move- Most importantly, their demands. gain thesophisticationtoeffectively advocate for of voices ascommunities becomeorganizedand now oftenincludesamuch more diverse group thedecision-makingprocess intheseareas nesses, near-exclusive province ofdevelopers andbusi- Oncethe and economicdevelopment decisions. constituencies thatusuallyengagedinland-use among populationsand cratic civic participation thismovement ispromoting demo- As aresult, income communities. andthequalityoflifeforlow-job opportunities ways instrategic toimproveland useauthority and andtousepublic dollars land useplanning, r andcommunity-based organizationsto planners, ment hascausedabroad rangeofpublic officials, thismove- Fortimeinageneration, thefirst dors. affordable housingandproximity totransitcorri- park space, debatesoverspirited living wage jobs, byment policyisnow commonlycharacterized thedialogue ondevelop- cussions oftaxrevenue, Nolongerlimitedtonarrow dis- development. re r whereIn theregions themovement hastaken neighborhoodadvocates andothers. developers, housing environmentalists, land usedisputes: gr These organizationsare joiningtogether with improving thequalityoflifeforworking families. reg coalitions include “Central LaborCouncils,” theselabor Often, broader socialjusticealliances. b w clerical andhotelworkers, withjanitors ment, tions are anchored by arenewed labormove- community benefitscoali- everyIn virtually area, o,thecommunity benefitsmovement is oot, ecognize theneedtoplay role aleadership in idn rds steppingforward in toparticipate uilding trades, res ealcek n,i oecss the insomecases, retail clerksand, orkers, framing the public discourse oneconomic framing thepublic discourse oups thatwere oftenontheoppositesideof ional alliancesofunionsdedicatedtobroadly pressroom/news.html formany otherexamples.) andwww.laane.org/ article, Real EstateJournal (See Appendix Cforthe Wall Street Journal’s Y Street Journal’s andtheNew RealEstateJournal inthe withrecent articles Wallup onthistrend, Nationalpress haspicked development projects. forpublic-private ing andneighborhoodservices w cities are now citywidepoliciesthat pursuing Groups inseveral community benefitsarose). f the in “Living movement (outofwhich, Wage” tum andvisibilityreminiscent oftheearlydays of The movement hasachieved alevel ofmomen- n and child-care centers, parks, ing practices, n increased trainingopportunities, quality jobs, guaranteethousandsofnewThese agreements inthispublication. asdescribed in several cities, ois demandfortechnicalassistanceandtrain- tories, As CPWF’s anchororganizationswinmore vic- enough tomake decisionmakers take note. will getyou nowhere unlesspeople are organized andhaving CBA a great proposal of organizing, Nothinginthishandbooktakes theplace unions. and/orlabor church-based committees, clubs, power basebuilt uponfoundationssuchasblock we assumethatyou have anorganized handbook, For neighborhoodorganizationsusingthis ized. directly related tohow much power ithasorgan- A community group’s abilitytowinaCBA is ples tocontinue topushtheenvelope. hope thatgroupswillbeinspired by theseexam- andwe there are now many different precedents, you willsee, community groupscannegotiate.As many ofthedifferent kindsofbenefitsforwhich gr This publication isintendedtohelpcommunity This Publication c,many oftheorganizations advocating for act, umerous otherbenefits. build- green ofaffordableumbers housingunits, r ie,amongotherprominent publications. ork Times, udcet iiu tnad njb,hous- ould create minimum standards onjobs, uslanhwCA ok andtoexplain howoups learn CBAs work, Introduction | 7 Greg LeRoy Greg First Good Jobs Madeline Janis-Aparicio LAANE Ideally, benefits will or baseline community CBAs large, part of every required become a publicly- project. development subsidized Until that time, organizing. to keep will have however, we you If of benefits—or examples of additional kinds have other agreements out- for the kinds of benefits you. to hear from like lined here—we’d

tnerships U.S.A.; Chris Nevitt, Range Economic Strategy Center; Front Robert Perlmutter, Shute, rk, training experiences coordinating between ebsite at www.californiapartnership.org) and ebsite at www.californiapartnership.org) ustice; Carson Strege-Flora, Organizations;AlyssaTalanker, of Community Federation Northwest Mihaly & Weinberger, San Francisco;Angeles;Mihaly & of Los Aid Foundation Dennis Rockway, Legal Ernesto Sanchez, CPWF; Stein, Kevin Committee; California Reinvestment Sonn, Paul Center for Brennan J First;Good Jobs Thymes, Chereesse CPWF;Tynan,LAANE. and Roxana The authors wish to acknowledge the generous assistance of the following individuals: of the following assistance the generous The authors wish to acknowledge Diana Bianco, Attorney/Consultant; Celia Cody, CPWF; Goldstein, John Council; County Labor Milwaukee Lizette Hernandez, SAJE; Don Hesse,Administrator, First Hiring Source City of San Francisco; Laura Joseph, LAANE; Koff, David Local 11; and Restaurant Employees Hotel Employees Lewis, Sanford Good Neighbor Project; and Information Gail Parson, Center;Training National Rich McCracken, Davis, & Bowe;Cowell Sandra McNeill, Economy;Actions for a Just Strategic Sarah Muller,Working Par Acknowledgements teleconferencing.The is beginning center its operations at the time of this publication. ing in this work has increased.As work ing in this a result, CPWF National the of establishing is in the process Support Center, Technical Benefits Community Firstwill contribute Good Jobs to which as well. the organizations across The center will assist benefits on community embark nation as they wo experienced organizations. staff and interested of a mixture will provide programs The center’s services,one-on-one consulting regional train- ings, and distance training opportunities (using its w 8 | Community Benefits Agreements: Making Development Projects Accountable Chapter One CBA Basics

What is a Community Benefits How Does a CBA Relate to a Agreement? Development Agreement? A Community Benefits Agreement, or “CBA,” is a A development agreement is a contract between legally enforceable contract, signed by community a developer and a city or county, outlining the groups and by a developer, setting forth a range of subsidies that the local government will provide community benefits that the developer agrees to to the project. Development agreements go by provide as part of a development project. different legal terms in different contexts. Redevelopment agencies usually sign “disposition A CBA is the result of a negotiation process and development agreements” (DDAs) when they between the developer and organized representa- sell land to developers, or “owner participation tives of affected communities, in which the devel- agreements” (OPAs) when they subsidize the oper agrees to shape the development in a certain development of land already owned by a devel- Chapter One: CBA Basics | way or to provide specified community benefits. oper. Many cities enter into “incentive agree- In exchange, the community groups promise to ments.”The term “development agreement” support the proposed project before government broadly describes all such contracts. Depending bodies that provide the necessary permits and on local practice, development agreements may subsidies.The CBA is both a process to work contain detailed information about the develop- towards these mutually beneficial objectives, er’s plans for the project and the subsidies the and a mechanism to enforce both sides’ promises. project will receive.

9 We strongly recommend that a CBA be incor- What Kinds of Community Benefits porated into any development agreement for a Can CBAs Include? project, so that the CBA becomes enforceable by the government entity that is subsidizing the Benefits provided by a CBA can vary as widely as development.Whether or not that occurs, a the needs of affected communities. Community CBA should remain a separate, enforceable groups should be creative in advocating for benefits tailored to their own needs. Each particular agreement between the developer and the com- CBA will depend on the community’s needs, the munity groups. size and type of the proposed development, and the relative bargaining power of the community Some projects receive a public subsidy without groups and the developer. any development agreement; this is often the case when a project receives a tax abatement but no Benefits contained in a CBA may be provided by other subsidies. In such cases community benefits the developer or by other parties benefitting from will have to be set forth in a CBA if they are set the development subsidies, such as the stores that forth anywhere. rent space in a subsidized retail development. Some benefits can be built into the project itself, When is a CBA Negotiated? such as the inclusion of a child care center in the project, or the use of environmentally sensitive A CBA is negotiated between the community design elements such as white roofs that help groups and the developer before the development avoid the “heat island” effect. Some benefits will agreement is executed by the developer and gov- affect project operations, such as wage require- ernment.The development agreement negotia- ments or traffic management rules. Other benefits tions may be going on while the CBA is also will be completely separate from the project, such being negotiated, but the CBA needs to be final- as money devoted to a public art fund, or support for existing job-training centers. ized first. Benefits that have been negotiated as part of What is the Developer’s Self-Interest CBAs include: in CBA Negotiations? Developers use CBAs to help get government ■ a living wage requirement for workers approval for their development agreements. In employed in the development; exchange for providing community benefits, ■ a “first source” hiring system, to target developers get community support for their proj- job opportunities in the development to ects.They need that support because they want residents of low-income neighborhoods; their projects subsidized, and because virtually all ■ space for a neighborhood-serving child- development projects require a wide range of care center; governmental permit approvals, such as building ■ environmentally-beneficial changes in permits, re-zoning and environmental impact major airport operations; statements. Permit approvals almost always have ■ construction of parks and some kind of public approval process, as do most recreational facilities; development subsidies. For many projects, the degree of community support or opposition will ■ community input in selection of tenants determine whether the developer will receive the of the development; requested approvals and subsidies. ■

| Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements: construction of affordable housing.

10 Later chapters of this handbook contain more ment with and acceptance of the development, detail on these benefits. whether or not project approval is dependent on those things.A representative from the developer, If community organizations are unable to negoti- or the developer’s attorney, will conduct negotia- ate what they want on a particular issue, they may tions on his behalf. instead negotiate a process to help achieve the same outcome at a later date.“Sunshine” or dis- Government staff may or may not be involved in closure requirements are a good example of this. the CBA negotiations.While government staff and attorneys are busy negotiating the develop- Even if a developer will not agree to require ten- ment agreement for the project, they are some- ants to pay a living wage, he may agree to require times content to leave to the community repre- tenants to report their wage levels.This informa- sentatives the task of negotiating the CBA. In tion can later be used in living wage campaigns. unusual circumstances, a government entity may Creativity and flexibility in the negotiation in fact be the “developer” of a project, while one process will be well rewarded. or more other government entities have permit- ting authority. In such cases, the government Who Negotiates a CBA? “developer” will be central to the negotiations CBAs are negotiated between leaders of commu- and a party to the CBA, as with the recent LAX nity groups and the developer, prior to govern- CBA described below. mental approval of the project. Sometimes a government agency will play an active role in Attorneys will have to become involved at some CBA negotiations. point, since CBAs are enforceable contracts, with real legal consequences for both the developer and Community-based organizations and labor unions the community groups. Ideally, the neighborhood press for CBAs containing strong community ben- organizations will start the negotiations directly efits. Community-based organizations involved in with the developer, and attorneys for both sides CBA negotiations are formed by concerned citi- are brought in to formalize the contract after an zens; they may be built upon traditional communi- agreement has been reached. In such cases the role ty organizing structures such as block clubs or of the attorneys is simply to memorialize, in a church-based groups.These groups may coalesce legally enforceable manner, the substance of the with living wage campaigns, or with individual agreement. However, one side or the other may labor unions and/or with central labor councils. wish to have an attorney help conduct its part of Sometimes a coalition including many groups will the substantive negotiations. If the developer form around a particular proposed development. In negotiates through an attorney, community groups other situations, existing networks will take the should negotiate through one as well. lead. In either case, community groups and labor unions will need to appoint a steering committee

How is a CBA Enforced? Chapter One: CBA Basics | or negotiating team of workable size to conduct negotiations with the developer. How a CBA is enforced depends on who signed it and what enforcement provisions it contains.As The developer will negotiate with community a CBA is a legally binding contract, it can be representatives if he thinks he needs community enforced only by a party that has signed it. CBAs support to move the project forward. Of course, that are incorporated into development agree- some developers want to work with community ments can be enforced by the government, as well groups in order to promote community involve- as by community groups.

11 12 | Community Benefits Agreements: Making Development Projects Accountable HOUSING NEIGHBORHOOD GROUPS AFF. GROUPS ■ ■ ■ ■ commitments Community groupscannotenforce developer community groups No coordination &shared power among –city&developeragreement draftlanguage All developer commitmentsgointodevelopment gr Little ornodirect comunication b/wcommunity CHURCH GROUPS UNIONS oups anddeveloper WITHOUT A CBA WITHOUT A GROUPS ENVIRO OTHER CBOS (or redevelopment agency) CITY

Agreement Development DEVELOPER Chapter One: CBA Basics | 13 DEVELOPER

Development Agreement Development Agreement (can incorporate CBA) CBA CITY

(or redevelopment agency) (or redevelopment ENVIRO GROUPS WITH A WITH CBA CBOS

OTHER

o i

Developer commitments re community benefits go community commitments re Developer into CBA draft language together Coalition & developer developer groups can enforce Community commitments (City and agency can too, is if CBA agreement.) included in the development information, groups share Community strength have in numbers, advocacy their and coordinate t

l GROUPS CHURCH UNIONS

o ■ ■ ■ ■

C CBA negotiations d e

GROUPS t a AFF. in NEIGHBORHOOD GROUPS d HOUSING r

Information re project & project Information re o co 14 | Community Benefits Agreements: Making Development Projects Accountable o eti omtet.Eachcommitmentmade commitments. for certain andtenantsofthedeveloperand tocontractors as purchasersofproperty within thedevelopment, developers shouldapplytosuccessorentitiessuch Commitmentsmadeby tored andenforced. how commitmentswillbemoni- sions describing All CBAs shouldcontaincarefully-drafted provi- I EXAMPLE: eeis including: benefits, unprecedented ofcommunity array Itincludesan achievement inseveral respects. The StaplesCBA was atremendous developed by thesamecompany. whichwas arena, to theStaplesCentersports becausetheproject is located adjacent CBA” The CBA is often referredtoasthe “Staples $150 million. dies fortheproject may ashigh run r andplazasforentertainment, ing complex, ahous- aconvention centerexpansion, theater, a7,000-seat project thatwillincludeahotel, alargemultipurpose development, District the Los andEntertainment Angeles Sports J CoalitionforEconomic Figueroa Corridor ustice—negotiated acomprehensive CBA for sarn,adrti uiess Public subsi- andretail businesses. estaurant, and community-based organizations—the abroad coalitionoflabor n May of2001, ■ ■ ■ ing thoseneeds; $1 millioncommitmenttoward meet- m a developer-funded assessmentofcom- the project; viduals andthosedisplaced by tolow-incomejob opportunities indi- program targeting sourcea first hiring tion onselectionoftenants; w the project willpay theCity’s living a goalthat70%ofthejobscreated in g,andconsultationwiththecoali- age, nt ak&rceto ed,anda unity park&recreation needs, THE “STAPLES CBA” article onthedealisincludedas article Appendix E. however.) in theCBA, A Los Angeles Times allcommunity benefitsare setforth sibilities; laying outtechnicallegal respon- Agreement,” alsosigneda (The parties “Cooperation included initsentirety as Appendix D. CBA is the StaplesCBA was signed.The fortheCoalitionsince mentation experience Chapter oftheimple- Three isadescription other’s agendas. they work cooperatively each andsupport the power community groupspossesswhen These successfulnegotiationsdemonstrate plushundreds ofaffectedindividuals. unions, different communitythirty groupsandlabor includedover andCoalition L.A., LAANE, by ledinnegotiations coalition, the CBA.The coalition thatworked together tonegotiate These many benefits reflect thevery broad enforcement issuesinChapterEight. ofyears.Wedefined term provide more detailon shouldhave a andtheCBA itself, in aCBA, ntebnft en rvdd Somebenefits on thebenefitsbeingprovided. How CBA isimplementeddepends aparticular How are CBAsimplemented? Strategic Strategic Actions foraJust Economy, ■ ■ ■ egbrod;and neighborhoods; parking program forsurrounding developer fundingforaresidential housing projects; seed money for otheraffordable andacommitment of project, ments inthehousingcomponentof increased affordable housingrequire- and leasingdecisionsby thedeveloper. standards for responsible contracting require ongoing implementation by several enti- ■ Do the benefits outweigh the costs, such as ties.A local-hiring program, for example, may dislocation of homes and businesses, canni- require employers to send notice of job opportu- balization of sales from existing retailers, nities and to interview certain candidates, increased vehicle traffic, and/or gentrifica- while job training centers match applicants with tion pressures? available jobs and make prompt referrals. Many ■ Does the development sufficiently cushion community benefits require ongoing communi- the blow to those who will suffer the direct cation between community groups and the negative impacts of the development? developer for a period of years after the opening ■ Does the development have an appropriate of the development. character and scale for the surrounding neighborhood? On the other hand, some CBA responsibilities can ■ Are the promised benefits reasonably cer- be fulfilled well before the development opens, like tain to materialize? For example, if the a developer’s one-time payment into an existing development promises jobs for residents of neighborhood improvement fund. Roles, responsi- affected communities, is it clear that jobs bilities, and time frames should be clearly described will actually go to these residents? in the CBA. ■ Will jobs created pay enough that the government won’t have to subsidize the Don’t Most Development Projects employees’ wages and benefits? Provide Local Benefits Without a CBA? If the answer to any of these questions is negative Most developments provide some benefit to the or unclear, community groups are right to have surrounding communities, in the form of jobs, concerns about a proposed project, even when housing, or retail opportunities.This is never the they believe it would provide some concrete ben- complete story, however.There are many other efits.The CBA negotiation process is a mecha- questions about virtually any development: nism for community groups to shape the development and capture more community benefits, ■ Are the development’s benefits substantial hopefully leading to a better project with stronger enough to justify the public subsidy? community support.

EXAMPLE: THE “LAX CBA”

n December of 2004, a broad coalition of The benefits obtained through this CBA Icommunity-based organizations and labor campaign have been valued at half a billion unions in Los Angeles entered into the largest dollars.The bulk of these benefits are set Chapter One: CBA Basics | CBA to date, addressing the Los Angeles forth in the LAX CBA; the airport’s commit- International Airport’s $11 billion moderniza- ments to two area school districts are set tion plan.The CBA is a legally-binding con- forth in side agreements that were negotiated tract between the LAX Coalition for as part of the Coalition’s CBA campaign.The Economic, Environmental, and Educational CBA has been hailed by both local policy- Justice and the Los Angeles World Airports, makers and the administrator of the Federal the governmental entity that operates LAX. Aviation Administration as a model for future

15 16 | Community Benefits Agreements: Making Development Projects Accountable range ofbenefitsinclude: development nationally.Theairport wide Chapter Six. aspects oftheLAXCBA iscontainedin Extensive onenvironmental information aspects oftheCBA are discussedbelow. Unusual legal www.laane.org/lax/cba.html. r andnationalpress tion aboutthecampaign, more informa- The textoftheLAXCBA, sible parties. benefits andtoholdaccountable therespon- toensuremembers implementationofthese enabling Coalition enforcement provisions, and The CBA hasdetailedmonitoring eaction totheCBA are available onlineat ■ ■ ■ ■ ■ ■ ■ es in the modernization ofLAX. es inthemodernization andwomen-owned business- minority, forlocal, increased opportunities and communities; operationsonsurrounding of airport funds forstudyingthehealthimpacts pollution fromidling; jetengine gatestoeliminate airplane electrifying tants by upto90%; curbingdangerous airpollu- tarmac, and dieselvehicles operatingonthe r schools andresidences; funds forsoundproofing affected needs individuals; dents andlow-income andspecial forjobsatLAXtolocalresi- priority program togivea localhiring andaviation-related jobs; airport $15 millioninjobtrainingfundsfor etrofitting vehicles dieselconstruction Inglewood and southL.A. in the BlackMuslimcongregation includingclergyfrom Coalition members, were also the communities ofcolor, in issoimportant whoseleadership Clergy, air onschools. the impactofnoiseanddirty andparents about ers brought theirconcerns Public schoolteach- schools andonchildren. generated noiseandairpollutiononthe tion becauseofthespecialimpactLAX- wereSchool administrators ofthecoali- part live inthecommunities around theairport. inmany cases, employed atLAX—whoalso, the workers whoare employed orwillbe also includedthelaborunionsthatrepresent environmental Coalition justiceissue.The whom theLAXproposal presented aclassic for included theenvironmental movement, theCoalition dents ofthecommunities, In addition toresi- racial aswell astopical. interests thatcrosses many traditionalborders, The Coalitionreflected acombinationof CBA from thestart. The Coalitionaimedforanenforceable after theannouncementofLAX’s proposal. Inglewood andLennox beganimmediately Organizingin other issueswere addressed. the commuity’s environmental and concerns planswent forwardthe new airport onlyif aimedtoensure that plan was announced, aftertheLAXmodernization formed tion, lution over multi-racial coali- theyears.The suffered from increasing environmental pol- have directly underregular flightpaths, LAX, Latino communities thatlietotheeastof The almostentirely and African-American and EducationalJustice Economic, Environmental, The LAXCoalitionfor Chapter One: CBA Basics | 17 eamsters Local 911 Natural Resources Defense Council Natural Resources Responsibility for Social Physicians Los Angeles and Restaurant Hotel Employees Local 11 Employees International Service Employees Union Local 1877 International Service Employees Union Local 347 T Unified School District Inglewood School DistrictLennox Nation of Islam Nation of Alliance AME Minister’s California Environmental Rights Alliance Air Coalition for Clean for a Better Communities Environment Coalition for Change Community Defense – Environmental Project Justice Environmental ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Labor Unions School Districts Environmental Organizations Environmental GENDA Los Angeles Alliance for a New Angeles Los Economy Angeles Council of Churches Los Churches Angeles Metropolitan Los Inglewood Democratic Club Inglewood Area Inglewood Ministerial Association Council Coordinating Lennox Community Coalition Community Coalition for Drug and Inglewood Violence Prevention A Clergy and Laity United for Economic Justice ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ollowing is a list of LAX ollowing epresentatives became the steering commit- epresentatives Community Organizations Through effective organizing, effective Through of thousands African-American and Latino community in the campaign, members became involved indirectly, and both directly via their churches, schools and organizations.The Coalition on what their leadershiptheir views solicited demands should be, and the community’s r prioritizedtee that listed and those demands during negotiation process. the CBA F Coalition members. 18 | Community Benefits Agreements: Making Development Projects Accountable file lawsuits tochallenge theproposed proj- that theCoalitionorganizations willnot The LAXCBA therefore provides only public hearing. of anothergovernmental entityata citizen totake positioninfront acertain a private enter intoacontractrequiring foragovernmentinappropriate actorto itwould simplybe governmental entity: unseemly foradeveloper thatisa obtaining suchacommitmentwould be However,cal power toopposetheproject. oratleastwillnotuseitspoliti- meetings, public fortheprojectcal support during willprovidethe Coalitionmembers politi- er’s centraldemandisforanassurancethat thedevelop- Inmost CBA negotiations, al. wasCoalition undertheagreement unusu- legal considerationprovided by the the tal entityratherthanaprivate party, was agovernmen-Because the “developer” decisionmaker was ineffect. and a adeveloper, between acoalition, r g Los Angeles CityCouncilbefore thepro- andLAWAissue, neededapproval from the oftheprogram ofimprovements at oper” was ineffectthe entity, ernmental “devel- anindependentgov- (“LAWA”), Airports Los Angeles negotiation.The World w thebasicdynamic Nonetheless, developer. community groupsnegotiatewithaprivate where in contrastwiththeusualsituation, m T THE LAXCBA:UNUSUALLEGALASPECTS set,thestandard three-way dynamic espects, a ol oefrad Inthese ram couldmove forward. as very similartothatofastandard CBA unity groupsandagovernment entity— that itwas negotiatedbetween com- he recent LAXCBA was unusual in fit within this rule—in the fit withinthisrule—in the CBA couldonlynegotiatebenefitsthat to This legalreality meantthattheparties SectionV.A.8.) 30, No. 64, (SeeFederal Register,Vol. the airport.” ly andsubstantiallyrelated tooperationof m com- ofthesurrounding ditures insupport allowing expen- strictly, thisrule interpret Administration hasissuedregulations that reven onuseof §47133,“Restriction 49 U.S.C. (See operations. poses unrelated toairport revenuesairport from beingspentonpur- Federal law prohibits federal government. negotiations was theheavy influenceofthe Another unusual aspectoftheLAXCBA legalresponsibilities. the strict even beyond parties, potentially adversarial encourages cooperative behavior between good exampleofhow theCBA process project doesn’t move isa forward.This benefits provided undertheCBA ifthe there willbeno interests intoalignment: CBA brought LAWA’s andtheCoalition’s asthe disincentive todothatinany case, wasorganizations tookthatstep.There a ev how- have oftheCBA, violatedthespirit Suchoppositionwould clearly council. program infronternization ofthecity we Coalitionorganizations Intheory, ects. most ofthecommunity’s related concerns Because meeting. foraface-to-face to D.C. atonepointflying the negotiations, during stayedmembers incontactwiththeFAA officialsandCoalition of theFAA.Airport unity only “if theexpenditures are direct- er, and of course noneoftheCoalition andofcourse er, re re ues.”) The Federal Aviationues.”)Federal The thus free toopposetheLAXmod- future judgment to airport operations, however, this rule example, if the FAA stepped in and pro- was not as restrictive as it might seem. hibited airport funding of the health study required by the CBA, the airport The Coalition and LAWA are confident would be required to contribute $500,000 that all benefits included in the CBA are toward measures or programs that pro- permissible under federal law as it has mote air quality, are not prohibited by the been interpreted. Because subsequent FAA, and are agreed upon by LAWA and changes in FAA policy interpretations the Coalition.The CBA is thus structured could threaten some of the benefits set so that the surrounding communities will forth in the CBA, however, the CBA obtain alternate benefits if the FAA pro- contains various contingency plans. For hibits certain negotiated items. Chapter One: CBA Basics |

19 20 | Community Benefits Agreements: Making Development Projects Accountable Chapter Two: CBA Pros and Cons | 21 CBAs ensure that the ensure CBAs en if they are included.This are en if they is especially egarding their projects,egarding enforce- and make developer’s promises regarding community regarding promises developer’s legally enforceable.benefits are Developers “pitching” promises often make a project written into the develop- never that are ment agreement, enforced never or are ev about jobs being created true of promises for local residents. commit develop- CBAs ers make in writing they to promises r easier. ment much torically the develop- been excluded from ment process. concerning Laws public notice and participation poorly- are enforced, hearings and official public are not neigh- held at times and places that are borhood-friendly. negotia- a CBA Having these prob- to address helps tion process lems, a forum for all parts of an providing affected community. Enforceability. ■ CBA Pros and Cons and Pros CBA The CBA negotiation The CBA

process provides a mechanism to ensure provides process and concernsthat community heard are addressed.While some cities do a good job and respond- input of seeking community ing to it, do not. many Low-income neighborhoods, non-English-speaking areas, his- of color have communities and Inclusiveness.

■ promoting the following values: the following promoting oups may request that the project provide par- provide that the project request oups may CBAs can greatly improve this approval process this approval can greatly improve CBAs by ticular community benefits,ticular community be or that the project in a cer- to the needs of the community tailored development happens with many tain way.This projects, is no formal there where CBA. even Any development project of significant size has to project development Any approval governmental a complex go through this through process.As moves project a proposed process, officials and community government gr Benefits of CBAs Chapter Two Chapter ■ Transparency. CBAs help the public, at public hearings, when the project is up community groups, government officials, for government approvals.At that point and the news media monitor a project’s there are three possible outcomes. First, the outcome. Having all the benefits set forth government can approve the project over in one place allows everyone to understand neighborhood objections, leaving residents and assess the specific commitments made unhappy and leading to a project that fails by a developer.They can then compare to address some community needs. Second, those benefits to benefits provided in simi- the government can reject the project lar projects in the past.They can also com- completely, leaving the developer unhappy pare benefits offered by developers who are and the community without whatever competing for the right to build on a par- benefits the project might have provided. ticular piece of land.Transparency is an Third, the government can delay the project until the controversial issues have been undeniable good-government value. resolved.That leaves the developer unhap- ■ Coalition-Building. The process of py because time is money, and it delays the negotiating a CBA encourages new community benefits just as it delays the alliances among community groups that whole project. It also puts the community may care about different issues or have dif- groups and the developer in roughly the ferent constituencies.This is critical same place they would have been in had because developers often use a “divide and they started negotiating over community conquer” strategy when dealing with com- benefits at the outset. CBA negotiations munity groups, making just enough avoid all three of these unsatisfactory sce- accommodation to gain the support of one narios by leading to a cooperative relation- group, while ignoring the concerns of oth- ship between normally adversarial parties, ers. (Sometimes this accommodation is and getting good projects approved with- seen as little more than a monetary payoff out delays late in the process. to a single group.) The developer can then ■ Clarity of Outcomes. CBAs provide claim that there is some community sup- local governments with the information port for the project, and obtain necessary they need to show successful delivery of government approvals, even though most promised benefits, like creation of jobs. community issues have not been addressed. Very few state and local economic devel- Similarly, a developer may agree to build a opment entities can quantify their out- project with union construction labor comes when questioned by legislatures or while ignoring the concerns of those the public about the success of their pro- unions whose members will fill the programs or the public’s return on investment. ject’s permanent jobs, and then claim the CBAs can project has “labor’s support.” By addressing be a vehicle for governments to gather many issues and encouraging broad coali- and maintain information that demon- tions, the CBA process helps counter these strates that the jobs and other benefits divide-and-conquer ploys. actually materialize.

■ Efficiency. CBAs encourage early negoti- Difficulties and Potential Problems ation between developers and the commu- of CBAs nity, avoiding delays in the approval ■ Inadequate organizing could set poor process.Without a CBA process, commu- precedents. If neighborhood organizations are poorly organized and therefore | Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements: nity groups usually express their concerns

22 Chapter Two: CBA Pros and Cons | 23 Setting forth community wn attorney; on government relying Legal expenses. Legal benefits in an enforceable legal document an enforceable benefits in groups to community require will usually recom- strongly an attorney.We employ their groups have mend that neighborhood o attorneys the and staff members to produce language is not effective. will Developers attorneys as well.While the generally have conduct the nego- groups may community tiations, it is valuable, essential, if not to the fine print finalized by CBA of the have a trusted attorney, the con- sure to make both the substance and spirittract reflects of the negotiations.While an retaining experienced attorney is the best option, to groups that lack the money community bono help through pro seek do so may legal assistance clinics, a referral from or by Guild (go to the National Lawyers for a directory of chapters). www.nlg.org ■ as not an official coalition member, or was ules for coalition membership and action. It Such a CBA would naturally include com- would Such a CBA the coalition to do certain mitments by doing other things. from things and to refrain to determine be impossible the It would scope of these commitments without firm r is easy to imagine an indi- situation where a meet- coalition vidual who attended several out against a development,ings spoke after a the coalition with a had been signed by CBA commitment not to oppose the development. that the might then claim The developer a coalition member and had was individual the devel- allowing violated the CBA—thus as well.The its obligations oper to avoid that the individual coalition might respond w not acting on behalf of the coalition—but If developers are looking at are If developers ecause a coalition negotiating a CBA is ecause a coalition negotiating a CBA negotiating as a single entity, it is natural unity groups generally. In addition, the unity leverage. ant to provide greater benefits than those ant to provide “floor,” ant to use past commitments as a ut developers will want to use them as will want ut developers the CBAs from past projects, from the CBAs not may they w others. by provided groups Community w b a “ceiling.” One’s person’s floor is another per- person’s One’s ceiling. son’s have little leverage over developers and developers over little leverage have a particular agencies in situa- governmental tion, will not help—and seeking a CBA being set in a poor precedent could result projects.for future negotiations can- CBA without a certain amount not be effective political capital. working or of leverage Of course, negotiation the CBA if in certain cities, becomes routine process for com- leverage then it should increase m aspect of the CBA coalition-building com- should increase negotiation process m LEGAL ISSUE: THE COALITION AS A LEGAL ENTITY to think that it is the coalition itself that will to think that it is the coalition itself with the developer.There enter into the CBA with that approach, problems are however. not are Most coalitions that enter into CBAs incorporated as stand-alone nonprofits. Rather, simply groups of organiza- are they together. working tions and individuals Few structured systems for deter- coalitions have official members,mining who are and who can speak or act on their behalf. (Such sys- or similar be set out in bylaws tems would This uncertainty could cause documents.) if an unincorporated coalition were problems the legal entity that signed a CBA. B ■ 24 | Community Benefits Agreements: Making Development Projects Accountable be clearabouttheapproach. technical languageoftheCBA justneedto definitionsand ties oneachofthem.The placingsimilarresponsibili- tions asagroup, CBA cantalkaboutthecoalitionorganiza- forconvenience the Nonetheless, parties. between asmany asseveral dozendifferent This makes theCBA intoacomplexcontract have itsownapproval internal process anyway. eachorganizationwillprobably mitments; r makes cleartoeachorganizationthelegal dens ofacomplexcontractlike aCBA.) This should nottake onthelegalbenefitsandbur- whoaregenerally persons coalitionmembers (Individual sign theCBA onitsown behalf. each organizationalmemberofthecoalition F the entity’s commitments. entity canmore easilybeheldresponsible for makingupthe tions inthatthemembers they differ from corpora- enter intocontracts, tion.”While associationscan unincorporated the legalstatusofan associa- “unincorporated coalitionasawhole usuallyhas CBA.The with thecoalition’s commitmentsunderthe member couldprobably beforced tocomply every coalition entity signingtheCBA, even ifthecoalitionwere the In addition, thentheanswerand actionrules isnotclear. unless there were preestablished membership bea:www.laane.org/lax/index.html. able at: CBA andCooperation areAgreement avail- full is discussedindetailChapter One.The LAXCBA accompanied theLAXCBA.The tions oftheCooperation that Agreement The following languageisfrom relevant sec- r “Organization” definitionsand Example: “Coalition”and eality thatitmust live uptotheCBA’s com- esponsibilities intheLAXCBA. rteeraos abetterapproach istohave or thesereasons, t Italsomakes clearthat it. andtheresponsibility tocomplywith CBA, organization hasthepower toenforce the act fortheorganization. to are authorized except whenthoseparties orboard, staffers, actions ofitsmembers, organization cannotbeheld responsible for thatasigning itclarifies Finally, mitments. organizations canbeheldtotheCBA com- Coalition Responsibilities: Definitions: This languagemakes clearthat Organization. rights andresponsibilitiesofeach Agreement shallbeobligations,powers, responsibilities oftheCoalitionunderthis . Allobligations,powers,rights,and Organization. authorized toactonbehalfofthe directors oftheOrganizationwhen bers ormembersoftheboard natural persons;and(2)staff mem- its memberorganizationsorany Organization itself,asdistinctfrom shall beobligationsonlyof:(1)the Obligations ofanOrganization Coalition asdefinedabove. entity thatisamemberofthe “Organization” “Coalition” are listed]. als: [allsigningorganizations no otherorganizationsorindividu- signatories tothisAgreement,and following Organizationsthatare tion comprisedexclusivelyofthe Justice, anunincorporatedassocia- Environmental, andEducational Coalition forEconomic, shall meantheLAX shall meaneach only the signing each each signing Chapter Two: CBA Pros and Cons | 25 oups are not willing to refrain from opposing from not willing to refrain oups are unity groups and the developer sign a CBA. unity groups and the developer uy into the process. the developer’s commitments.They need do not the developer’s to hold the developer the government on to rely to his promises. of enforcement Government is notoriously benefits community lax, and—no and city the developer committed matter how a risk that promised is always staffers seem—there benefits will not materialize. community Second, be willing to provide may a developer a benefits in exchange for better community of supportlegally binding commitment from groups,community feel more because he may thanks to that success confident of the project’s support.Thiscommunity is the basic negotiating in principle more that parties willing to give are to get more. order Third, com- is a symbolic benefit to having there m the concrete and makes The signing validates work,months of negotiations and hard makes and to be successful and likely more the development negotiations the community.When embraced by an agreement that both sides leading toward are will sign, is an assurance that both sides take there the negotiations seriously. to will have Developers their commitments as binding when they treat them; groups can enforce community know and to be willing to leaderscommunity will have are commitments when they their own stand by signing a binding legal document.The goal of a directed, is to provide a CBA having serious framework, in which both sides can genuinely b In addition, groups are while some community making a legal about understandably reluctant opposing a develop- from commitment to refrain ment, at least an implicit to make have may they do not if they even commitment in this regard the because the main reason sign a CBA.That’s benefits community is negotiating over developer opposition. community is to avoid If community gr process, duringthe project the approval they Of course, building and maintaining coalitions is difficult, coalitions and maintaining espe- off is seeking to peel developer cially if the some groups.All of the basic structural be resolved: to have issues about coalitions decisions are How Who is in the coalition? the negotiating team? Who is on made? concerns competing are prioritized?How Coalition politics. Coalition ■ uch easier. unity groups to avoid the legal complexities unity groups to avoid Despite all of the difficulties and pitfalls,Despite all of the feel we risks. the far a CBA that the benefits of outweigh well,If groups organize together, stick and win a good CBA, prece- set valuable will probably they campaigns in their city future dents and make m However, there are seriousHowever, are there risks to this approach, benefits to a CBA. and important comparative First, and most important, the allows a CBA that sign it to enforce organizations community In light of these concerns, groups community for inclusion to simply advocate be tempted may development a project’s benefits in of community agreement, rather than negotiating a deal directly com- enables approach with the developer.This m of signing a CBA.and responsibilities If commu- to pro- trustnity groups genuinely the developer vide the benefits as described, trust or if they the as part the commitments to enforce government agreement,of the development then this sense. is simpler and makes approach CBAs raise complex issues for community-based CBAs organizations. be may groups Some community uncomfortable giving up the right to express a devel- matter like opinions on a public negative opment project. not used to entering are Many into complex legal agreements with powerful developers. An Understandable Concern: do this don’t “This is new to us. We type of thing.” 26 | Community Benefits Agreements: Making Development Projects Accountable nya“adhk”deal—itwillimpedetheabil- only a “handshake” prone ontheirendofadeal—even toreneging seen by developers andby government officialsas Ifcommunity groupsare and opposetheproject. ject’s around community benefitsandthenturn credibility ifthey negotiateanincrease inapro- Community-based organizationswillquicklylose not opposetheproject. gr developer expectthatcommunity willrightly the (andnotintoaCBA), ment agreement intothedevelop-only goingtobeincorporated ev For thisreason,have littletoofferadeveloper. oups withwhomitreached will agreement en ifnegotiatedcommunity benefitsare A ADVOCATES THE FROM TIPS tance. During negotiations: During tance. ■ ■ negotiations raiseseveral pointsofimpor- dvocates whohave beeninvolved inCBA r ontechnicalissueslike envi-bers certain and canadviseeducate team mem- can sitinonnegotiationsas “observers,” individuals withspecialexpertise small, While thenegotiatingteamneedstobe andobservers. Include advisors development.leadership Ensure adequateissuetraining and obvious imperative. openness andcommunication are an and Issuetrainingscan help, orities. pri- educate eachotherontheirvarious needto coalition members negotiations, may besomany issuesinvolved inthe Becausethere requests. ant toparticular cially sincethedeveloper willberesist- espe- tile enoughtobackeachotherup, tobeversa-tant forcommunity leaders it’s impor- innegotiations, agenda.While ev take toget timeandfocusedeffort itmay in different issues, experienced arecoalition members interested and netlcnen.Even without active onmental concerns. erybody workingerybody together onashared Because CBA implementation. See Chapter on Three formore information After aCBA iscomplete: ty and certainty ofaproject’sty andcertainty community benefits. having aCBA increase cangreatly thequali- met, Ifthoseconditionsare and able toabideby them. its commitmentsundertheCBA andiswilling and(2)itunderstands benefits isagoodtrade-off; inexchangeforthenegotiatedcommunity port unless (1)itbelieves itspublic sup- thatoffering A community groupshouldnotsignaCBA into aCBA—but thepotentialbenefitsare great. carefully abouttheircommitmentsbefore entering tothink community groupsare right In sum, with developers inthefuture. ity ofotherneighborhoodgroupstonegotiate ■ ■ effective campaigns. ties—and canhelpinspire andbuild and power baseacross communi- various canhelpbuild aknowledgesons learned m tal inspreading theword toothercom- ful CBA negotiationscanbeinstrumen- whohavemembers ofsuccess- beenpart Coalition have succeededinthepast. from who organizers thanhearing efforts effective new organizing inencouraging Spread theword. toring. Involve inmoni- coalitionmembers r be more revealing thanany required can Observations ofcoalitionmembers the project ismoving forward. ey tant andactive role instrategysessions. canplay suchadvisors animpor- selves, inthenegotiationsthem- participation eports fromeports tenantsorthedeveloper. unities. Sharing of experiences andles- ofexperiences Sharing unities. es and ears ofthecommunity once es andears Coalition members canbethe Coalition members Nothing ismore Chapter Two: CBA Pros and Cons | 27 28 | Community Benefits Agreements: Making Development Projects Accountable Chapter Three: Implementation Experience - The Staples CBA | 29 soon. ry ry community groups that entered into the CBA, groups that entered community the City of from approval obtained the project Angeles Community Angeles and the Los Los months later. Agency just a few Redevelopment The developers’ commitments under the CBA became terms of the disposition and development and the the developers agreement between Agency, making Redevelopment Community local govern- by these commitments enforceable ment, groups. in addition to the community of the benefits set forth are in the CBA Several being implemented,already as described below. ground is set to break Construction of the project ve Oversight Committee of FCCEJ, the perspective From the central forum is the for implementation of the CBA

Implementation Experience–The Staples CBA

erhaps the best-known community benefits community erhaps the best-known Project Status Project steadily have developers The Staples project’s since the signing of forward pushed the project 2001.With in May the CBA the supportthe of agreement signed for the Staples devel- is the one Angeles in 2001.This is opment in Los CBA Appendix D and described in detail in attached as in Chapterthe box One. is an Following overview of the experience of the Figueroa Corridor Coalition for Economic Justice through (FCCEJ) in implementation of the CBA 2004. In general, FCCEJ between the relationship is good.and the developers lead One of FCCEJ’s L.A. organizers stated that the developers—the Holdings, and Flower Land Company Arena LLC—had implemented the benefits in the CBA “to the letter and beyond.” P Chapter Three Chapter Oversight Committee set up by the CBA itself. due to overflow from the project.The The Oversight Committee meets with the devel- CBA also required the developers to pro- opers quarterly, providing an opportunity for the vide $25,000 to the City to fund the developers to update FCCEJ on the status of the new program. project, and for FCCEJ and the developers to dis- The City did in fact enact the residential cuss implementation of the project’s community benefits.The Oversight Committee provides an parking district as requested; the new resi- ongoing, regular accountability mechanism. dential parking rules took effect on September 1, 2004. In addition to the In between meetings with the developers, various money paid to the City for the costs of subcommittees of the Oversight Committee setting up the district, the developer paid work on specific implementation issues. In addi- residents’ fees for the first five years of per- tion, the Oversight Committee as a whole may mits as well as the posting of new street convene prior to a meeting with the developers, signage.This benefit is a good example of to update all members and prepare. an effective cooperative approach between the developer, community residents, and Strategic Actions for a Just Economy, a founding local government. member of FCCEJ, has a staff member devoted ■ Funding for parks. The CBA required full-time to FCCEJ’s advocacy.While FCCEJ has the developers to fund a needs assessment several ongoing projects aside from the Staples regarding parks, open space, and recre- CBA implementation, this individual spends ational facilities in the project’s neighbor- much time facilitating Oversight Committee hood. Hundreds of local residents partici- meetings, coordinating communications between pated in this process, guiding the one-mil- FCCEJ members, and working on CBA imple- lion-dollar expenditure required by the mentation issues.The Oversight Committee also CBA for park & recreation facilities. Out includes staff from several other organizations, all of the needs assessment came agreement participating as equals.The Oversight Committee that the developer would provide $500,000 reports to the larger FCCEJ Steering Committee, for a family recreation center that will be which prioritizes various activities and projects of free to area residents, and another $500,000 the coalition. towards the rehabilitation of an existing Commitments Being Implemented park. Both of these facilities are scheduled to begin construction in 2005. As of early 2005, the developers had begun to implement the following commitments made in ■ Funding for off-site affordable hous- the CBA, with cooperation from FCCEJ as ing. The CBA required the developers to described below. provide $650,000 funding for interest-free loans as “seed money” to area nonprofit ■ Residential parking program. The affordable housing developers.The devel- CBA required the developers to work oper has already provided this full amount cooperatively with FCCEJ to urge the in zero-interest loans to two local nonprof- City of Los Angeles to establish a residen- it affordable housing developers for the tial parking permit area covering the development of about sixty units so far. neighborhood surrounding the Staples The Coalition helped set up the loan fund project, in order to ensure that long-time and ensure that local nonprofit developers residents wouldn’t face parking problems knew about this opportunity. | Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements:

30 Chapter Three: Implementation Experience - The Staples CBA | 31 The complex At several points,At several the ying understandings of particulars Var of the CBA. Need for leadership development training for grassroots community member participants. Oversight Committee discovered that Committee discovered Oversight Coalition members had varying under- terms of the CBA. standings of some key In particular, coalition members many certain deci- reserved thought the CBA sions to the Coalition, when in fact the consensus shared agreement required the Coalition and the developer, between the final decision for the devel- or reserved oper. the between Because the relationship been has Coalition and the developer good, into not developed these points have major problems. However, this issue emphasizes the importance of close review of a CBA, both prior to signing and during implementation. complex are CBAs documents, is in the details; and the devil coali- many end from input on the front tion members misunderstand- will reduce the road. ings and disappointments down legal, community,policy aspects of and can be daunting and implementation CBA grassroots communi- difficult for individual ty members,committed. no matter how organizers and policy advo- Professional of training and years cates benefit from experience.The implementa- Staples CBA tion has underlined the need for similar training efforts to facilitate participation indi- leadership by—interested from—and members.vidual community FCCEJ has leader- helped set up an intensive therefore training program,ship development which is up and running at this time. ■ ■ ollowing are some of the challenges FCCEJ has challenges FCCEJ some of the are ollowing aced during for the process the implementation Implementation Challenges Challenges Implementation F f Staples CBA. As required by As required The developer has initiated the has initiated The developer tnership Centers Program, designed to unity in place when jobs in the develop- ell as acting as faculty in the classroom. ob readiness programs. ob readiness eadiness programs. employment Project of the developer’s equest the remainder esolve timing issues around construction of around timing issues esolve the CBA,funds is providing the developer for the first hiring source and job system r begun,has not yet approximately but so far has supported a $50,000 provided at housed programs range of job readiness Technical Trade Angeles SAJE and at Los this College.The Coalition has leveraged to beginseed money a pilot jobs training income families liv- for the lowest program ing in the area. Coalition organiza- Many their members sent and con- tions have as programs stituents to the job readiness w two expanded from have These programs of operation to five classes in the first year classes in 2005: Economic Survival, ESL I and II,Levels and Computer Literacy success has I and II.TheLevels program’s grant led to an additional two-year Outreach Community HUD’s through Par its current from expand the jobs program pilot stage to an institutionalized program. a pool of new, The ultimate goal is to have the local com- applicants from job-ready m ment arise.As programs job readiness the sys- and an operational first source develop tem becomes necessary, the Coalition will r $100,000 commitment. J Constructionaffordable of on-site housing. affordable units,affordable the develop- and amended to reflect ment agreements and the CBA understanding of the their shared intended timing. market-rate housing portiondevel- of the market-rate opment. In 2002, the coalition, the city, and to cooperatively worked the developer r ■ ■ 32 | Community Benefits Agreements: Making Development Projects Accountable for participants. resulting politicaleffectiveness ingreater oration, the CBA process hasindeedledtolastingcollab- thecoalition-building aspectof has bred success; r negotiations have continued collaboratingwith toworklearned together through theStaples notethatorganizations FCCEJ organizers Aftereffects gr oohrpoet.I hsrset success Inthisrespect, egard tootherprojects. ■ the benefitsthey obtained. in order toassure strong implementation of will needtobeworking together foryears to winaCBAthatthey shouldunderstand organizationsthatbondtogether However, tain focusfrom many Coalitionmembers. makingiteasytomain- ject’s construction, being implementedeven tothepro- prior W andsoforth. andbenefits; wages, training, and itsalliesneedtostay involved withjob labor tion ofaffordable housingprovisions; need totake anactive role inimplementa- Housingadvocates inacoalition come up. the capacitytohandleeverything thatwill or No oneorganizationhastheexpertise y Implementation ofacomplexCBA takes ment amongcoalitionmembers. Continued cooperationandinvolve- ears andinvolvesears ofissues. awidevariety t h tpe B,many benefitsare ith theStaplesCBA, affected communities. and city officials, outcomes fordevelopers, seemstohave positive facilitated agreements, exemplified intheStaplesdealandsubsequent as CBA process, identified needs.The provide goodcommunity benefitsandaddress projects ascommunities willsupport that point, onthatlast should benosurprise promise.There gain by delivering they thecommunity support andare living uptotheirendofthe bar- sonable, that advocates are makingdemandsthatare rea- (and attimesembracing!)thisapproach indicates and cityofficialsseemtobeatleastaccepting dized projects inthecity.The thatdevelopers fact subsi- forlarge, arguably madeCBAs thenorm community advocates have place inLos Angeles, legally-bindingCBAs in dozen different full-scale, W embraced theproject. the community andthatthecommunity has indication thatthedeveloper hasengagedwith asan subsidizedproject, see aCBA onany large, Cityofficialsnowthat someimportant expectto many feel seen itwork withtheStaplesdeal.And having be more withtheconcept, comfortable developerAppendix B.The community seemsto in described subsequent CBAs inLos Angeles, CBA andotherearlyCBAs hasspawned several thesuccesstodateofStaples In addition, ith afour-year trackrecord ofmore thanahalf Chapter Three: Implementation Experience - The Staples CBA | 33 34 | Community Benefits Agreements: Making Development Projects Accountable Chapter Four: Living Wage Programs as Part of CBAs | 35 , And . i.e. 2 3 sinesses in particular city districts. usinesses performing government privatized eceive economic development subsidies economic development eceive equire employers to provide a certain of number to provide employers equire b services. In addition, at least 89 jurisdictions “job quality standards”apply to companies that r to their workers by requiring them to pay a high- requiring by them to pay to their workers do not do so. if they er wage Some policies r off.paid and/or unpaid days Some impose limitations on hours worked, to employers require or about eligibilitynotify certain for the workers Credit. Tax federal Earned Income policies apply to busi- wage Almost all living contracts— government nesses receiving two California two cities, and Santa Berkeley Monica, applied the principle geographi- have policies that cover wage enacting living cally by bu have enacted liv- enacted have 1 Living Wage Programs as Part of CBAs as Part Programs Wage Living

The Policy Shift To Good Jobs: Cities, States and Counties Attaching Job Quality Standards to Development Subsidies,” by Good Jobs First – avail- Development Subsidies,” by Good Good Jobs: Cities, States and Counties Attaching Job Quality Standards to The Policy Shift To equired of some large employers in certain cities of some large employers equired 1 ACORN maintains an updated national list of living wage victories. See www.livingwagecampaign.org. 1 ACORN maintains an updated national list of living wage victories. See www.livingwagecampaign.org. 2 – is the only national compilation of such requirements. able at www.goodjobsfirst.org/pdf/jobquality.pdf enacted a nar- election. The city then living wage ordinance was later repealed by voters in a razor-thin geographically-based 3 Santa Monica’s rower living wage ordinance covering service contractors. The living wage movement has enjoyed wide- has enjoyed movement wage The living years; success in the last few spread April as of 2005, 123 jurisdictions at least In addition to wage requirements,In addition to wage wage living policies can incorporate other employment-related benefits as well. policies wage living Many health insurance to provide encourage employers ing wage policies.ing wage dol- that taxpayer Recognizing wages that pay lars often going to employers are line, the family poverty below these jurisdictions a higher to pay certain employers required have rate.hourly wage Sometimes the rate is indexed line or a similar index; to the federal poverty the cost of liv- to go up with indexed some are ing. about range from levels Current wage living than $12.00 per hour $7.00 per hour up to more r in California. Chapter Four Chapter 36 | Community Benefits Agreements: Making Development Projects Accountable public officials. arguments are influencingavery widerangeof suggestingthatliving wage organizing activity, been established intheabsenceofgrassroots standards attachedtodevelopment subsidieshave ofthejobquality three-fourths Indeed, citizens. sidies willimprove theeconomicwell-being of thatthesub- on economicdevelopment subsidies: the essentialjustificationofgovernment spending theliving wage movementing.And squares with subsidizing poverty-level wages isclearlyresonat- idea thatgovernment contractsshouldnotbe ing campaignsemployed incityaftercity.The tremendous effectiveness organiz- ofdetermined ment over thelastdecadeisatestamentto The dramaticsuccessoftheliving wage move- may affectCBA negotiationsinseveral ways: thatpolicy diction thathasaliving wage policy, If aproposed development islocatedinajuris- Policies onCBANegotiations The ImpactofExistingLivingWage ■ mn tes have living wage policies among others, Ohio, andToledo, Oakland, Francisco, San lease spaceinasubsidizedproject. who indirectly benefitfrom subsidiesor but alsothose direct recipients ofsubsidies, andnotjust cover notjustcitycontractors, few citieshave living wage policiesthat all employers inthedevelopment. The localliving wage policycovers ■ ■ ■ N H IIGWG MOVEMENT WAGE LIVING THE PROGRAMS AND WAGE LIVING ON RESOURCES etr www.livingwagecampaign.orgCenter, A www.LAANE.org Assistance Project, Living Wage TechnicalLAANE, www.epinet.org Issue Guide, Living Economic PolicyWage Institute, ON Living WageResource CORN, A ■ ■ ■ the project. political capitalonotheraspectsof gr andcommunity project automatically, r living wage This isanidealsituation: ered by thecity’s living wage provisions. proposed development project willbecov- mostorallofthejobsina In suchcases, city-owned land. in whichprivate employment on occurs andotherfacilities convention centers, nas, policies like thisare ofteninplaceforare- ment onlandthatisowned by thecity; ing wage policiesthatcover allemploy- similarresult isachieved byprojects.A liv- cover allemployers inmany subsidized that gobeyond thedirect recipients to lease spacefrom adeveloper are considered companies.Tenants like largestores that andparking security, such asjanitorial, developer andthedeveloper’s contractors, thatmeanscoverage islimitedtothe ect, proj- ornon-headquarters manufacturing Inatypicalnon- ty’s contractors. service actually receives thesubsidyandthatenti- sidy recipients cover onlytheentitythat Most living wage policiesthatcover sub- not cover tenantsinthedevelopment. but does the developer’s contractors, The localliving wage policycovers and www.livingwage.com www.livingwage.orgliving-wage sites, Employment Policies Institute’s anti- NOT theemployer-funded T P equirements should become part ofthe equirements shouldbecomepart lc ik Equitable Development olicy Link, okt www.policylink.org oolkit, oups canconcentratetheirenergyand Chapter Four: Living Wage Programs as Part of CBAs | 37 a typical retail development project, development a typical retail where ages By Tenants ke oups will naturally focus their living wage oups will naturally focus their living oups to seek a CBA in the first place. oups to seek a CBA age levels of jobs that come into a community of jobs age levels A Tougher Issue: Payment of Living A Tougher W ask for the application groups When community to a development’s requirements wage of living and hotels— stores tenants—such as large retail down. often break wages living negotiations over Ta land, plans to buy the developer a structure, build retailers.and lease space to several Community gr efforts tenants’ on the retail employees, since these majority the vast of the pro- tenants will provide Payment of living wages by the devel- Payment of living oper and its contractors negotiations may groups in CBA Community to its wages living to pay the developer convince on the project.Althoughemployees the developer property (such as employees few very have may management office staffers), this commitment has symbolic importance, is receiving as the developer subsidy. a public Besides tenants, also has control the developer with contractorsthat will over its relationships permanentcreate jobs at the site, such as custodial contractors and security contractors.The devel- such contractors to pay agree to require oper may to their employees. wages living Because the total is not greatsuch and involved amount of money services competitive, are well may the developer be open to this idea.This a concrete can provide with involved workers low-wage benefit to many the project. the project.When a proposed development proj- the project.When development a proposed jobs—and par- of a large number ect will create based is being promoted a project ticularly when opportunities—commu- employment on the new press- consider should always nity representatives requirements. wage ing for living Indeed, the w community that motivates will often be the issue gr Many the entity receiving the public subsidy. the public the entity receiving r example, will pur- stores some big-box oups to research and understand the pre- oups to research cities have living wage policies that apply policies wage living cities have city contracts. receiving only to businesses These policies will not apply to develop- cases. unusual in very except ment projects can,They however, support arguments for a particular on project: wage a living once should wages a city has decided that living through be paid when it spends money contracts, when it requiring wages living subsi- development through spends money dies is a logical next step. The local living wage policy simply wage The local living contractors. government covers “indirect beneficiaries,”“indirect not cov- and are and of the developer ered.While coverage its contractors can turn numbers substantial jobs, wage living of jobs into typical in the the employ- most of project development of the tenants by ment is going to be developer. laws wage local living Review to determinecarefully the scope of cover- beneficiaries to indirect age with regard of subsidies. proj- development are Occasionally there is of the employment ects for which most by Fo agency, a redevelopment chase land from there. and open a store and then build In policy wage such cases this type of living will apply, can groups and community concentrate on other issues.This distinc- tion underscores the need for community gr development of the proposed cise nature subsidy. scheme and public ■ age Policy When the local government does not have a liv- does not have When the local government to all or part policy applicable of a pro- ing wage posed development,groups can still community as part for of a CBA wages for living advocate Living Wage Negotiations Negotiations Living Wage is No Local Living When There W WHAT ABOUT WAGES FOR CONSTRUCTION OF THE DEVELOPMENT?

ages are often an issue with regard to certain development, or may have other con- Wconstruction jobs.Although some pub- cerns related to the project. Bringing building licly-subsidized projects are subject to the fed- trades into a coalition advocating for a range eral “Davis-Bacon” law or similar state laws of issues can increase leverage for both. Please requiring that construction workers be paid the see the box in the Conclusion on the Park “prevailing wage” for the area, many are not. East Redevelopment Compact for a good In such cases, building trades can become part example of this.A box in Chapter Seven con- of coalitions negotiating CBAs to help advo- tains more information on employment and cate on other issues. In addition to wage contracting issues regarding construction jobs, issues, the local building trades council may be and resources on labor-community partner- advocating for a project labor agreement for a ships in the construction industry.

ject’s permanent jobs—and retail jobs are notori- The arguments for applying living wages to ten- ous for providing low pay, part-time hours, and ants are strong.A development project in a low- no health benefits. income community cannot provide an economic boost to that community if workers land in However, since CBA negotiations generally occur poverty-wage jobs without health benefits, leav- prior to the developer’s acquisition of the land, ing families dependent on government assistance this issue will have to be resolved before the for basic necessities such as health care, housing, developer lines up its tenants. If the developer has and transportation. yet to recruit and negotiate with potential tenants, it will be very reluctant to agree to require In addition, retail tenants in a subsidized develop- tenants to pay living wages. Some potential ten- ment project benefit from the public subsidy just ants may refuse to lease space under such a as the developer does.The development would requirement, or they may demand lower rent as not exist without the public subsidies, leaving the compensation.These plausible scenarios are a tenants to scramble for an unsubsidized private serious concern for the developer, as rent pay- location.Those who will make the most money ments are the developer’s regular income from from the project—developers and retail tenants— the project. should share whatever added costs a living wage requirement creates.The purpose of an economic These risks are hard for the developer to quantify, development subsidy is not to create poverty- and they directly affect the developer’s bottom level jobs. It is to build an economic base in the line for the project. For these reasons, developers community, and jobs with poverty-level wages may strongly resist application of living wage don’t do that. requirements to tenants. Nonetheless, community groups should push hard on this issue, as wage In addition, there is substantial evidence that the levels go to the basic economic benefit the proj- costs to employers of paying living wages are

| Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements: ect will provide. much less than one might suspect. Companies that

38 Chapter Four: Living Wage Programs as Part of CBAs | 39 unity groups must decide if this issue is a “deal- if this issue is a decide unity groups must Living wage requirements agreed to by devel- agreed to by requirements wage Living opers groups in negotiations with community are safer.Where requirements the even are par- private simply part of a contract between be difficult for would a CBA—it ties—like challenge them.Any to employers employer require- wage living a project’s who dislikes leasing space in from to refrain ments is free the project. In such circumstances, it would successfully challenge a CBA- to hard be very requirement. wage based living equirements on prospective tenants, on prospective equirements no matter What to Do If The Developer Won’t What to Do If The Developer Pay To Tenants to Require Agree Living Wages find that a developer groups may Community wage simply will not agree to impose living r the issue is pressed.At hard how that point, com- m will pull out that they meaning breaker”— negotiations and oppose the of CBA altogether. project to go that route, want groups don’t If community or still supporteither because they the project to is likely that the project believe because they compromises several are anyway, there go forward fall can propose.These shortthey approaches of a on all tenants, requirement strict wage living but sidies that may run dol- to the tens of millions of sidies that may that the jobs step to ensure lars—is a reasonable having. jobs worth are created — 6 5 In addition, some 4 mployers naturally resist any required any naturally resist mployers pay. must they in the wages increase ecipients appear to be on safe ground. ARE LIVINGARE WAGE REQUIREMENTS LEGAL? This resistance has on occasion taken the has on occasion taken This resistance poli- form challenging wage living of lawsuits various cities.cies enacted by Such challenges been successful. rarely have be very It would found to surprising were laws wage if living small num- aspect of federal law.A violate any prohibiting laws enacted ber of states have laws. wage living enacting cities from Although other states’ vary, laws wage living limited to contract and subsidy that are laws r E ossing millions of dollars per year in sales. ossing millions of dollars per year etail store that employs 20 full-time workers, 20 full-time that employs etail store if $2 per hour, to raise wages equired incur would 4 Bliss and Associates and Gately Consulting, 1999, www.laborstudies.wayne.edu/report.pdf. 4 Bliss and Associates and Gately Consulting, 1999, www.laborstudies.wayne.edu/report.pdf. 1999 report on impact of Detroit living wage ordinance, 5 See, e.g., Center for Urban Studies and Labor Studies Center, www.laborstudies.wayne.edu/report.pdf. $83,200. dollars per hour times 20 workers times 40 hours per week times 52 weeks per year equals 6 Two Even if none of these offsetting cost factors if none of these offsetting cost Even a occurred, paying expense from the employer’s overwhelming.Afar is from wage large living r r costs wage in increased only $83,200 per year pay higher wages have lower employee turnover, employee lower have higher wages pay training and reduces productivity which increases and recruitment costs. One study found that employers’ at least 150% are turnover costs from of the employees’ base salary. Asking the developer and the tenants to share this to share and the tenants Asking the developer sub- public benefitted from cost—after both have hardly a backbreaking figure for a store large a store for figure a backbreaking hardly 20 full-time employees,enough to have and likely gr costs of higher wages are either absorbed by the either absorbed by are costs of higher wages or passed on to consumers.employer In general, of to employers cost studies find that the overall is minimal. wage a living paying 40 | Community Benefits Agreements: Making Development Projects Accountable rjc,especiallyifusedincombination. project, they may nonethelessincrease wage levels inthe ■ A ing wage intheproject: participation tomaximize liv- and tomakingotherefforts living wages for75%oftheproject’s jobs, but was willingtocommitattaining ants, to applyliving wage requirements toallten- thedeveloper was unwillingtoagree nario: r The living wage provisions forthisproject negotiationsby LAANE. spearheaded during acoalitionofcommunity groups Coalition, 2001 by thedeveloper andby the Valley Jobs CBA was signedin subsidies andloans.The and willreceive over $31millioninpublic andofficespace retail, includes residential, 16.7-acre development projectAngeles.The alow-income area ofLos Hollywood, v rede- forthe agreement “NoHo Commons” ants toprovide annual orbiannual reports CBAs canrequire thedeveloper andten- ments forthedeveloper andtenants. Wa COMMONS REDEVELOPMENTPROJECT EXAMPLE eflect whatwilllikely beacommonsce- lpetpoet tobebuilt inNorth elopment project, ■ ■ ■ ■ ge ge section ofthecommunity benefits ttached as Appendix Fistheliving wage in choosingbetween prospective ten- development; inthe of living wage jobs” tomaximizethenumberable efforts the developer will “make allreason- willbepaidalivingtors wage; employees ofthedeveloper’s contrac- paid aliving wage; employees ofthedeveloper willbe & benefitdisclosure require- : LIVING WAGES FORTHENOHO bargaining agreement. employees andjobscovered by acollective exempts businesses withfewer than10 The project’s living wage threshold formula boxseveral above). methods(see “Resources” “Equitable Development explains Toolkit” Policy Link’s levels; setting “living wage” areordinance.There different approaches to living wage policy are tiedtoLos Angeles’ Living wage levels intheNoHoCommons steps toreach theliving wage threshold. meet withthecoalitiontodevelop additional topayoper agreed a$10,000penaltyandto thedevel- not metforany two-year period, If despitethesestepsthe75%threshold is ■ ■ ■ ■ are provided. percentage ofjobsforwhichbenefits andthe on wages paidatthedevelopment, oper andtenants. Meeting requirements forthedevel- developer tomeetwithcommunity groups on theliving wage threshold; prospective Tenant’s potentialimpact” each account asasubstantialfactor thedeveloper will “take into ants, with theirwage levels. tenants willprovide thedeveloper r the developer willprovide biannual the living wage threshold; each prospective tenant’s impacton will meetwiththecoalitiontodiscuss the developer andprospective tenants prsrgrigwg ees and regardingeports wage levels; CBAs canrequire the Chapter Four: Living Wage Programs as Part of CBAs | 41 age goal. What happens if a living wage goal is wage goal if a living What happens not met? issue in dif- this approached have CBAs Different to ways.ferent developer the required Some have a monetary pay penalty; be a penalty must such incentive a real that it provides substantial enough the goal.Alternatively,to achieve for developers a public to provide the developer can require CBA explanations for failing to meet the goal, explain to meet the it intends forumin a public how goal, government or collaborate with the local groups on efforts the and community to increase levels. wage project’s that the sim- Some experienced believe advocates goal wage act of announcing a living ple public on devel- substantial pressure places for a project with the opers about their reputation who care and the community.local government Increased thus be scrutiny and media attention may public to meet its living to induce a project the best way w Even if a developer Even asonable effortsasonable maximize the num- to ages as a “substantial factor”ages as a in choosing age goals of 70 or 75%.Whether a eports and meetings. equire prospective tenants to attend such prospective equire will not guarantee that all jobs at a devel- will not guarantee jobs, wage opment will be living it may commit to making efforts to maximize jobs.The wage of living the number all “make to might be required developer re jobs in the project,” wage ber of living or living pays to consider whether a business w tenants. include living CBAs Several w goal wage the living has attained project required through can be monitored r Living wage goals. wage Living to discuss wage levels of major tenants, levels wage to discuss priorsigned. to leases being can also CBAs r informa- provide can so that they meetings levels, wage tion on likely get informed goal (if wage living about the project’s any), designed and learn programs of any wages living in paying to assist employers benefits. or providing ■ 42 | Community Benefits Agreements: Making Development Projects Accountable Chapter Five: Targeted Hiring Programs as Part of CBAs | 43 oups have regularly incorporated regularly targeted hir- oups have argeted hiring what is often the policies advance The Case for Targeted Hiring The Case for Targeted T project: main function of development to help a economic opportu- increasing by area depressed efforts certain to hire individuals, sometimes with or a the assistance of local job training programs “first source” hiring can programs office.Targeted fulfill what is often projects help development their most fundamental purpose—building an communities. economic base in low-income In addition to incorporating hiring requirements for employers, to developers can require CBAs space or funding for a First office. Source provide A First office, Source funded, if adequately can be oppor- tool for targeting employment a powerful tunities in socially beneficial ways. Community gr into CBAs. ing requirements —requirements rgeted Hiringrgeted of CBAs as Part Programs Ta targeted hiring programs entually hired. if the hiring does Even process unity are being addressed. unity are ork well for the local community,ork well unem- many or many development projects, development or many the developer’s actors influence who hears about available jobs, actors influence who hears about available CBAs can assist with all these problems by incor- by can assist with all these problems CBAs porating w need job training in order may individuals ployed positions. to become qualified for the new primary selling point is jobs. However, promises jobs for the neighborhood often go of new unfulfilled.The employs simple fact that a project a certain people does not necessarily of number local com- needs of the mean the employment m who individuals be filled by jobs may The new in other areas,live simply been trans- or who have other locations. the employer’s ferred Lots of from f for such jobs,who gets interviewed and who is ev F

that employers in a development make special make in a development that employers Chapter Five Chapter nities there.This is often the main purpose cited Targeting jobs to residents of the neighborhood to justify a development’s public subsidy. of the development is also compelling.Anytime a development project is built in a low-income This purpose is a valid one. Few would argue neighborhood, residents of the neighborhood are that a lack of economic opportunities does not urged to support the project based on promises of have weighty consequences for a community. job opportunities the project will provide. It is Geographically concentrated poverty causes par- only fair to require that projects promoted on ticularly acute social conflicts. As employment that basis include some mechanism to ensure that levels in a neighborhood drop, the need for local people actually get some of the jobs. In social services rises—just as a low-income addition, neighborhood residents will bear most neighborhood is contributing less to the of the negative impacts of the development, such municipal tax base, and suffering from a corre- as increased traffic, parking problems, months of sponding lack of political power. Neighborhoods heavy construction, the possibility of increased lacking a solid base of family incomes cannot housing costs, and other economic and environ- sustain themselves. mental impacts.Those costs should be balanced with the benefits of economic opportunities. (For Targeted hiring policies are a concrete mecha- these reasons, HUD’s “Section Three” program nism to break down employment patterns that requires that, for all HUD-assisted projects, eco- exacerbate these problems.While urban neigh- nomic opportunities such as job openings be borhoods decline due to a complex web of larger directed to neighborhood residents “to the great- societal forces—including suburban sprawl, the est extent feasible.”) decline in manufacturing jobs, and a decline in real wages—targeted hiring policies can help Combine all these arguments with the simple fact government take small but real steps to help the that most development projects explicitly promise economies of neighborhoods hit hardest by these jobs for local residents, and you have a powerful social trends. case for a CBA that includes some kind of targeted hiring mechanism. Developers and local gov- In addition, targeted hiring policies often benefit ernments dangling the prospect of local jobs communities where residents are predominantly should be willing to take concrete steps to make people of color. Local governments and commu- their promises a reality. nity groups can thus further the important social goals of affirmative action without the political Target Populations and legal difficulties that sometimes come with Individuals benefitting from a targeted hiring pol- an explicitly race-conscious policy. icy might include:

Some people are especially deserving of targeted ■ individuals whose jobs are displaced by the hiring programs. For example, targeting jobs to development; workers whose jobs were displaced by a development is obviously fair. Such individuals pay a heavy ■ residents of the neighborhood immediately price when a development project moves forward, surrounding the development; and efforts to provide them with job opportuni- ■ residents of low-income neighborhoods ties—usually many months after their previous job anywhere in the metropolitan area; ended—seem like small compensation. Some states, including California, require steps to provide ■ individuals referred by local, community- based job training organizations;

| Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements: opportunities to displaced workers.

44 ■ low-income individuals generally; or ■ Tell the employers what the hiring priorities are, and leave it up to them to recruit ■ “special needs” individuals, such as public assistance recipients or ex-offenders. and hire targeted individuals.While this approach leaves the employers with wide Community groups can select one set of individ- discretion regarding their hiring methods, uals on which they would like the program to results can still be monitored, and enforce- focus, or they can develop a tiered system with ment provisions can still be strong. first, second, and perhaps third priorities for available jobs.There is plenty of room for creativity ■ Require employers to give notice of job here: communities may want to include other openings in certain ways—mailings to tar- categories of individuals, such as those graduating geted neighborhoods, advertisements in from community-based job training programs.As community newspapers, notification to job long as there is an appropriate public purpose, training centers, etc. targeted hiring is legitimate. ■ Require employers to hold jobs open for a certain period of time after notification, and to only interview targeted individuals EXAMPLE: TARGETED during that period. HIRING IN THE LAX CBA ■ First Source—Require employers to interview people referred by certain sources, he LAX CBA’s targeted hiring pro- such as particular job training centers or a Tgram targets job opportunities to a First Source office. range of “Special Needs Individuals,” including: These methods can be combined or tailored to the needs and capacities of any community.Any (i) an individual who has received of these methods can be combined with percent- public assistance through the age goals for hiring targeted individuals. Temporary Assistance for Needy Families Program within 24 months It is important that the administrative require-

of applying for a job or job training ments of a targeted hiring program do not Chapter Five: Targeted Hiring Programs as Part of CBAs | through this program; (ii) an individ- exceed the capacity of community resources. If a ual who is homeless; (iii) an ex- targeted hiring program’s responsibilities exceed offender; (iv) an individual who is local capacity, the program will place few needy chronically unemployed; or (v) a dis- workers in the new jobs. It will also become a located airport worker. useless hurdle for employers trying to fill jobs, and could sour the neighborhood against such The LAX CBA is described in detail in programs. But a targeted hiring program that Chapter One. runs smoothly will bring jobs to the intended individuals, benefit employers by providing a Referral and Hiring Processes free source of qualified applicants, and cement relations between the development and the sur- Once a targeted hiring program’s priorities are rounding community. set, there are many ways to administer it. Following are some options on how referral and Community groups should therefore make a real- hiring processes can be structured, from simple to istic assessment of the number and sophistication more complex: of job training organizations in the area before

45 negotiating a program that relies on them for If there is any doubt about the adequacy of prompt referrals of qualified individuals. Similarly, resources for a first source office, we recommend before setting up a system that relies on a first that programs instead require employers to work source office for referrals, community groups directly with existing job training centers. should ensure that the office will have adequate However, a CBA can certainly require a develop- funding and staffing. er to provide money and/or space for a first source office, and local governments can support First Source Programs first source offices as well. The most elaborate type of targeted hiring pro- Because of the risk of inadequate resources, first gram is one that requires employers to interview source offices make the most sense in large com- applicants referred by a “first source” office munities, where there are many established job before interviewing other applicants. A first training centers, and adequate resources are avail- source office receives notice of job openings able.The City of San Francisco has a well-estab- from employers, maintains contact with a variety lished first source program.The office maintains a of job training organizations to access their pools master list of applicants from over forty job train- of applicants, and promptly refers qualified working centers, and has the capacity to promptly refer ers to employers. qualified applicants for available jobs. It processes hundreds of referrals per year, and keeps track of If adequately staffed and funded, a first source whether individuals referred were actually hired. office can provide tremendous benefits. It can The first source office is part of the San Francisco benefit employers by enabling them to access a city government, and works with employers on variety of sources of applicants through a single every project covered by the citywide first source job notice. It can benefit job training organiza- policy.7 Many other cities have first source offices tions and targeted individuals by giving them as well, with varying degrees of sophistication reliable access to information about job openings. and involvement.8 It can help the targeted hiring program meet its goals.And it can dramatically simplify monitoring Monitoring and Enforcement of the program, since all aspects of the program are centralized. The most common complaint from community groups regarding targeted hiring programs is a These responsibilities place tremendous lack of enforcement. Indeed, many localities have pressure on a first source office; how the office first source or local hiring programs that lack any functions will determine the success or failure monitoring or enforcement provisions whatsoev- of the program.A first source office that promptly er.While the primary factor in the success of a refers qualified applicants will be seen as a benefit first source program is likely to be whether the to employers, and can be a powerful tool for tar- first source office and the job training organiza- geted employment. Conversely, a first source tions can promptly provide qualified applicants, office that delays employers’ efforts to fill jobs, or the importance of monitoring and enforcing the sends unqualified applicants, will not succeed. program cannot be discounted.

7 See “First in Line: An Evaluation of San Francisco's First Source Hiring Program,” San Francisco Urban Institute, August 2004 (www.picsf.org/documents/documents.htm); 8 See “Adopting A Waterbury Local Hiring Preference Ordinance: An Analysis of the Legal & Policy Options,” National Employment Law Project, August 2000 (www.nelp.org/relatedPublications.cfm?section=%5Cwlwp); Frieda Molina, “Making Connections: A Study of Employment Linkage Programs,” Center for Community Change, May 1998; Stephanie Haffner, “Using Local Hiring Programs to Promote Employment Opportunities in

| Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements: Low-Income Communities: Examples and Practical Considerations,” National Economic Development & Law Center, 1995.

46 Chapter Five: Targeted Hiring Programs as Part of CBAs | 47 employers who meet their targeted who meet their employers rd rewa hiring goals. Monitoring Hiring PatternsMonitoring a target- thing about enforcing The most difficult ed hiring is obtaining information program from enforcement enough detail to make in employers reluctant factors employers make possible.Various made out information they to give how about their hiringdecisions. used to their are Employers hiring being confidential, processes for reasons often subjective,their decisions are hiring and the most important among decisions are decisions has to make. an employer Nonetheless, who agrees to an employer comply with a targeted hiring program—in exchange for participating in a subsidized devel- also agree to some mech- opment project—must anism for determining is the program whether being followed.monitoring Central to any system is a reporting requirement. Employers to file periodicshould be required reports on targeted are that of their hires the percentages individuals, to describe and should be required had in complying have difficulties they any with the program. the reporting requirements,Beyond elabo- how rate a monitoring to be will system needs itself.depend on the scope of the program If the requirements places procedural merely program on employers, notice of avail- such as providing jobs,able then monitoring be quite may straightforward. goals for hir- includes percentage If the program ing targeted individuals, however, monitoring can complicated. more become much will Employers certainly of need to report on the percentage targeted individuals; that were their hires if an falls short goal, of the percentage employer then depend on whether the compliance will probably “good faith efforts” has made employer to hire targeted individuals.This question can be a hard scrutinyof the cri- to answer, involve and it may ram—but the enforcement body is the enforcement ram—but empowered to find otherwise. empowered to meet the goal can automatically Failure trigger for the additional requirements employer, to such as a responsibility explain in writing for certain the reasons hiring decisions. Employers that meet the goal can be pre- Employers sumed to be in compliance with the pro- g The percentage goal can be considered a goal can be considered The percentage has “safe harbor,” so that if an employer goal,met the percentage to it is considered be in compliance with the program, and action can be taken. no enforcement ■ ■ ■ However goals are used, goals are However should give they to meet them.The incentive a strong employers both one that employs is probably best approach “carrot” many are there the “stick.”While and the “stick,” groups should community models for the “carrots,” to or ways in developing be creative If a program incorporates goals,If a program percentage these sys- become a central aspect of the enforcement tem. ways: different be used many Goals can Percentage Goals Percentage The most basic decision about enforcement is, enforcement basic decision about The most of course, the enforcing. who will do If the program office, a first source involves that office would to monitor and enforce choice seem an obvious the program. However, first office the source with employers a good relationship needs to have job, to do its in order tensions and the inherent impede this rela- can process of the enforcement tionship.While system will be a the first source crucial of information employ- source regarding ers’ compliance, responsibili- enforcement actual groups signing community ties should lie with the CBA, tar- if and with the local government included in a geted hiring are requirements agreement.development see Chapter (Please informationEight for more on monitoring and benefits.) CBA enforcing teria the employer used in hiring decisions—a Following are some legal issues that require care: very sensitive area. ■ Neighborhood Specificity: Programs Whatever the particulars of a program and an that give preference to residents of one enforcement mechanism, any targeted hiring pro- neighborhood over another can sometimes gram needs the following to be enforceable: implicate constitutional provisions that protect individuals’“fundamental right” to ■ it should spell out cleaz practice their trade.This is only likely to become an issue (1) when employers could ■ it should indicate who will monitor recruit applicants from more than one the program and describe how it will state, and (2) when the program is incor- be enforced. porated into a development agreement. In If a program runs smoothly, enforcement provi- such cases, the best defense against this sions will rarely come into play. potential problem is to make sure that the program is carefully and narrowly designed Legal Issues to address poverty or economic distress in Targeted hiring programs need to be carefully a particular neighborhood, with detailed crafted to avoid legal pitfalls. Because there are findings regarding the need for such meas- many laws governing the hiring process, these ures.The more closely the program is tai- programs can be somewhat tricky from a legal lored to this accepted governmental role, perspective.While it is impossible to completely the more likely it is to withstand any legal insulate any program from legal risk, a carefully challenge.This is an instance where the constructed targeted hiring program should be legal requirements line up nicely with the upheld in the unlikely event of a legal challenge. social goals. Community groups should be sure to consult ■ Deal vs. Regulation: A targeted hiring an attorney when designing targeted program is also more legally defensible hiring programs. when its application is limited to employ-

EXAMPLE: TARGETED HIRING FROM THE STAPLES PROJECT

ttached as Appendix D is the CBA for low-income census tracts throughout Los Athe Staples project, described above.The Angeles. For initial hiring, employers are First Source Hiring Policy, applicable to all required to hold jobs open for three weeks employers in the development, is an attach- while they interview only targeted individu- ment to the CBA, and will be included in als. For later hiring this period is shortened to tenant leases.This policy targets three tiers of five days. Employers who comply with the individuals for employment opportunities: various hiring procedures or who have filled individuals whose residence or job is dis- more than 50% of jobs with targeted individ- placed by any phase of the development, low- uals are presumed to be in compliance with income individuals living near the develop- the policy.The policy also contains detailed ment, and low-income individuals living in reporting requirements. | Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements:

48 Chapter Five: Targeted Hiring Programs as Part of CBAs | 49 oups want to apply targeted hiring to apply oups want ork differently for constructionork differently than for argeted hiring programs may conflict argeted hiring may programs equirements to constructionequirements jobs, they Collective Bargaining Agreements: Bargaining Collective T bargaining agreements in with collective the construction industry. If community gr r of the with representatives should work trade unions to trylocal building to design a policy that furthers of targeted the goals hiring, while also fitting with the complex hiringsystems governing the construc- in tion industry. make always It will almost targeted hiring policies that sense to have w other industries. bargaining Collective agreements in retail, service, and manufacturing with tar- generally do not conflict geted hiring requirements. their hiring procedures. Court-ordered not conflict with usually will procedures targeted hiring programs; may an employer point to a courtnonetheless a jus- as order targeted the from tification for exemption hiring program. is an irrecon- there Unless the court order between conflict cilable and the program, to reason is no there such employers. exempt ■ from the from Some large Any targeted hiringAny learly benefitted learly c ut require very strong and detailed justifi- and detailed strong very ut require program that incorporatesprogram race- or gender- based criteria aspect of its admin- into any istration is open to legal challenge. Such legal in certain are circumstances, programs b becomes partcation if the program of a agreement.development that will CBAs agree- not become part of development ments, private two simply between are and parties, in leeway, although even more have limitations. are that case there Employer Court Orders: Employer Race and Gender: ers who have ers who have employers are under court are orders regarding employers public subsidy to the development.The subsidy to public part of a like looks program the more “deal” parties—and consenting between regulation government the less it looks like better its of unconsenting businesses—the hiringchances of being upheld.Targeted be designed so that should programs notice of the require- receive employers commit to a place in they ments before the development. who receive Employers to sign a lease can- such notice and choose not claim to be unfairly regulated. ■ ■ 50 | Community Benefits Agreements: Making Development Projects Accountable Chapter Six: Addressing Environmental Issues Through CBAs | 51 ound service equipment, curbing dan- etrofitting diesel construction vehicles and construction diesel vehicles etrofitting electrifying airplane gates, hangars, and cargo operations areas, to minimize pollu- jet enginetion from idling; air funds for a comprehensive quality study; r gr up to 90%; air pollutants by gerous trucks, for converting program a five-year shuttles, passenger vans, serving and buses the airport fuels or less-pol- to alternative luting vehicles; at limits on diesel idling of all vehicles the airport; ■ ■ ■ ■ ■ mitigations and benefits. Concern about environmental impacts of airport the operations was to driving that led the community force for a CBA.press benefits Environmental obtained include:

Addressing Environmental Issues Through CBAs Through Issues Environmental Addressing oups to step in when government enforcement oups to step in when government ecreational facilities.ecreational equired by law. CBAs can also allow community law. by can also allow equired CBAs onmental benefits and mitigations beyond those onmental benefits and mitigations beyond The LAX CBA, described in detail in Chapter One, a wide range of environmental provides is lax, process supplementing the always-important to ensure with the government of working laws. of environmental enforcement The fear of environmental impacts is often what The fear of environmental a project. organizing around ignites community concerned be Residents may about anything appearance, visual the project’s park- from to new ing and traffic problems, emissions gener- to toxic industrialated by projects. can also require CBAs environmental the negative to reduce a developer impacts of a project, affirmative or to provide parks, benefits like environmental open space, and r is an effective negotiation process The CBA to negotiate for envi- mechanism for communities r r gr Chapter Six Chapter 52 | Community Benefits Agreements: Making Development Projects Accountable ■ ■ ■ ■ ■ REQUIREMENTS INTHELAXCBA who breathe theairnear LAX—hadnoabil- the real stakeholders—community members isaplaincasewhere are notelectrified.This ofLAX’s majority gates toaircraft.A tricity aggressively toequipitsgatesprovide elec- LAXhasnever moved Despite thissituation, exposure todieselfumes.) willdevelopCalifornians lungcancerdueto To ScientificReviewthe California Panel on huge amountsofsmog andotherpollutants; (Dieselfuelgenerates are easilyavoidable. w ob an is onlyafew feetaway electricity diesel fuelwhenthere isacleansource of jetfuelor Burning units togeneratepower. their own ordiesel-powered engines auxiliary but they insteadrun provided by theterminal, powerthat planeswould hookintoelectrical Onewould think andsoforth. maintenance, cleaning, of loadingandunloadingpassengers, W EXAMPLE: se withmajorenvironmental impactsthat aste, time flightsover adjacentneighborhoods. night- torestrict the FAA forpermission toapply a commitmentfrom theairport and traffic; designated routes forconstruction by forsoundproofingmillions ofdollars near- operations; airport studies onthebroad healthimpactsof funds forcommunity-based research operations”; lossimpactsofLAX tem andhearing funds forastudyof sys- “upper respiratory xic Air Contaminantsestimatesthat 16,000 schools andresidences; need electrical power periods need electrical during they hen aircraft pulluptoagate, GATE ELECTRIFICATION vious adjacent communities. leadingtocleanerairfor from theairport, emissions overdue reduction in harmful should ensure asubstantial andlong- commitments tions areas andhangars.These provisions ofcargoopera- forelectrification CBA contains similar ning theirengines.The ratherthanrun- the gate-provided electricity, torequireagreed thatallaircraft actuallyuse also airport withinfiveelectrified years.The fully withallgatesattheairport trification, toanaggressiveagreed scheduleofgateelec- airport commitments from theairport.The Educational Justice obtainedsignificant and Environmental, for Economic, theLAXCoalition CBA negotiations, intheir By makingthisissueapriority CBA negotiations. this simpleequipmentchange—untilthe no effective meansofpressing LAXtomake by People affected problem languishedforyears. andthis ity toinfluencethedecisionmakers, ev Suchlaws may regulate andsoforth. emissions, ontoxic restrictions disclosure requirements, impact tal issues—zoningandplanningmeasures, detailed requirements toenvironmen- pertaining andlocallaws contain state, Federal, mental law. place againstthecomplexbackdrop ofenviron- CBA negotiationsonenvironmental benefitstake Impacts oftheDevelopment Mitigations: ReducingtheEnvironmental www.laane.org/lax/index.html. available onlineat LAX CBA, The languageforthesebenefitsissetoutinthe erything fromerything thebasicusesthatare this aspectofairlineoperationssimplyhad Chapter Six: Addressing Environmental Issues Through CBAs | 53 oups as well, the greatly strengthening lated document requiring the developer to take requiringlated document the developer equirements are enforceable by affected commu- by enforceable are equirements ecreation facilities all amenities that a devel- ecreation are onmental requirements for the project. onmental requirements One important step: plans for a project whenever or a impact statement environmental contain an re measures,mitigation groups should community try to incorporate reference the document by into the CBA—ensuring that all mitigation r nity members. Environmental Racism Environmental The history of placement of polluting industries in minoritylong, neighborhoods is well-docu- mented, tragic.A and detailed discussion of the Requiring Environmental Benefits Requiring Environmental environmental reduce In addition to helping problems, can help communities process the CBA as well. benefits environmental obtain affirmative development,The larger the proposed the greater benefits that ought to be provided: the public open space, plazas, public for park and and money r oper can provide. should think cre- Communities in about their needs—and should keep atively subsidy when public mind the size of a project’s doing so. This important document can be hundreds of pages long, and can contain crucial envi- r the by enforceable are These requirements the project.local agency overseeing By declara- incorporating the mitigated negative Coalition Jobs tion into the CBA,Valley the community the by made them enforceable gr environ- hand in addressing community’s mental issues. COMMUNITY ENFORCEMENT OF REQUIRED he CBA for the SunQuest project, he CBA Appendix B,described in incorporates equirements; to strengthen existing environmental existing environmental to strengthen r impacts that environmental to address cover; don’t existing laws and options by enforcement more to provide direct,enabling of enforcement private requirements. environmental equired measures. equired the project’s “mitigated negative declaration.” “mitigated negative the project’s Under California file law, must a developer impact report unless the an environmental no significant will have project proposed impact on the environment. If mitigations environmen- necessary to avoid are in order tal impacts, files a mitigated the developer declaration,negative outlining the r MITIGATIONS IN THE SUNQUEST PROJECT. MITIGATIONS EXAMPLE: T ■ ■ ■ oups can use CBAs: astes, traffic pat- like ones and the less obvious Once they understand the backdrop of environ- understand Once they the backdrop pertaining to a project,mental laws community gr Environmental laws may prohibit a specific a specific prohibit may laws Environmental impact,environmental that it require may be mitigated, be that it merely require may disclosed, it altogether. ignore or may closely groups need to work Community with experienced attorneys to determine project. a proposed govern what laws terns, visual appearance, wind tunnels, and storm drainage. water permitted and of land to the size on a piece of exteriorappearance signs.Virtually every to be regulated may a development impact of some degree: environmental obvious both the of hazardous pollution and handling impacts like w 54 | Community Benefits Agreements: Making Development Projects Accountable mitigation measures. tion—or would beifthedeveloper takes certain withtheproject’scomfortable proposed loca- r CBA negotiationsare with onlyappropriate intheircommunity.luting orhazardous facility to block theestablishment orexpansionofapol- community groupswillorganize many instances, Sufficeittosay thatinagreat of thishandbook. issue ofenvironmental racismisoutsidethescope I Pollutants andHazardous Wastes as suso oi icags regulated pollu- raise issuesoftoxic discharges, n general, industrial development industrial projects that n general, egard to such facilities whenthecommunityegard is tosuchfacilities REQUIREMENTS FORTHESTAPLES PROJECT expenditure required by theCBA forpark& guidingtheone-million-dollar developer, needs assessmentprocess paidforby the Hundreds ina oflocalresidents participated andrecreational facilities. openspace, parks, w Section IIIoftheCBA setsouttheframe- reflectsentirety thisdecision. as Appendix D, attachedinits StaplesCBA, a priority.The made anincrease inneighborhoodparkspace community groups size ofthepublic subsidy, andthepotential of theStaplesdevelopment, thescale In lightofthisdeficitinparkspace, r given thearea’s by thecity, deemed necessary oftheparkspace tained onlyonequarter ve hadlongnotedthey had Figueroa Corridor Community groupsinthe town Los Angeles. neighborhood adjoiningdown- Corridor” T EXAMPLE: esidential density. ork forassessingthecommunity’s needsfor ry n,willbebuilt inthe “Figueroa One, inChapter described he Staplesproject, itepr pc.I at thearea con- Infact, little parkspace. P ARKS ANDOPENSPACE pollution andsimilarissues. on community-company related agreements to resources for Agreements” Neighbor on “Good Pleaseseebox inthiscomplexarea. experience als shouldobtainadvicefrom organizationswith ment willinvolve pollutionorhazardous materi- have reason tobelieve thataproposed develop- r practicescanbedevastatingindustrial forsur- andtheconsequencesofunsafe is oftenspotty, Enforcement oftheseenvironmental regulations engagedcommunity.no substituteforanactive, theexistenceofsuchlaws However, is state law. underfederaland subject todetailedstrictures andthelike willbe hazardous materials, tants, Figueroa Corridor community.Figueroa Corridor needsofthe closely tailored tothe particular andone theStaplesproject, surrounding provide aconcrete benefittothecommunity parksandthispublic plazashould structed and opentothepublic.”The newly con- level plazaofapproximately oneacre insize oper toincludeintheproject itself “a street- f In additiontothesenew parkandrecreation inSummer2005. struction con- are scheduled tobegin these facilities Bothof for rehabilitation ofalocalpark. andapproximately $500,000 to area residents; free recreation$500,000 forafamily center, thatthedeveloperagreement would provide Outoftheneedsassessment came ment. consistent withtheresults oftheneedsassess- built withinonemileoftheproject and ties, lion worth ofnew parksandrecreation facili- developer isrequired tofundatleast$1mil- r clte,theStaplesCBA requires thedevel- acilities, udn omnte.Community groupsthat ounding communities. ecreation facilities.The CBA required the ecreation facilities.The Chapter Six: Addressing Environmental Issues Through CBAs | 55 Sanford Lewis,Sanford Esq., and Diane Henkels, ool For Environmental and Social Justice,” Environmental ool For opment programs, as greenspace protec- well as friendly policies. other environmentally tion and environmen- concerns are regarding When there site, at a potential development tal contamination brown- of groups should be aware community offer. the potential they and fields programs the U.S. site of The web Environmental information about its Agency provides Protection programs. brownfields many (www.epa.gov/swerosps/bf/index.html).The differ- Institute links to many Northeast Midwest on brownfields. ent resources (www.nemw.org/reports.htm#brownfields). negotiated with regard to existing facilities to existing negotiated with regard developments. new rather than proposed Most legal and practical concepts applicable applicable Agreements are to Good Neighbor as well,to CBAs and vice versa. exten- provides The Good Neighbor Project information on Good and resources sive Neighbor Agreements. (Contact: Sanford Lewis, 160 Second Street, Cambridge, MA An excellent 02142;(617) 354-1030).) Agreements is overview of Good Neighbor the article,“GoodAgreements:A Neighbor T by 23,in Social Justice,Volume Number 4. online at (available www.cpn.org/topics/environment/ goodneighbor.html). er the last 25 years, communi- many v “Good enforceable signed ties have GOOD NEIGHBOR AGREEMENTS GOOD NEIGHBOR O Neighbor Agreements” with companies operating industrial facilities. Neighbor Good Agreements focus on pollution most often such as facility measures inspections, control plans,accident preparedness emis- and toxic sions.They sometimes incorporate a broader benefits,range of community local such as hiring, issues, union representation and infrastructure improvements. When legally enforceable, Good Neighbor similar in concept to the Agreements are discussed in this handbook.CBAs Good in distinguishable Agreements are Neighbor of generally emphasize control that (1) they pollution, toxins, materials and hazardous at industrial facilities, often are and (2) they emain unused because developers are wary of wary are because developers emain unused The brownfields movement attempts to address movement The brownfields a variety of public/private through this problem partnerships.Theseinnovative often been have incor- have and effective. initiatives Brownfields devel- porated job training and other community Brownfields prop- or under-used abandoned are Brownfields actu- by is complicated erties development where con- of environmental problems al or perceived tamination. be that would urban spaces Many prime for beneficial redevelopment candidates r costs. cleanup taking on unknown 56 | Community Benefits Agreements: Making Development Projects Accountable Chapter Seven: Other Community Benefits as Part of CBAs | 57 Job Training offer an excellent opportunityCBAs to tailor job in a develop- training to the needs of employers ment, training options for neigh- increase and to borhood residents. employers can require CBAs long-range information about training to provide needs. Local job training organizations can then to fit those needs.Thistailor their programs strat- with a first program, source well egy fits very to the the trained employees which can refer the training.This who had requested employers “customized job training” can be a selling point for tenants in the project, the helps blunt and up drive argument that first requirements source costs for tenants. to provide the developer can also require CBAs supportdirect for job training efforts.The LAX the airport includes a commitment from CBA to

Other Community Benefits as Part of CBAs of as Part Benefits Other Community

Previous chapters have described the most com- chapters have Previous in fact have communities mon benefits that many negotiated.This chapter describes other community benefits that can also be included in a CBA. by been won already Some of these benefits have groups,community candi- while others strong are campaigns.Advocatesdates for future should be in assessing their commu- and inclusive thorough needs, ideas. new nity’s in developing and creative One of the advantages of CBAs is their flexibility: of CBAs One of the advantages can negotiate for whatever advocates community benefits their particular needs the community most. In fact, groups come when community development, a proposed over together it is an excellent occasion to assess the community’s needs.This assessment—and the coalition-build- it—can spark organizing ing that can accompany any beyond that goes well and advocacy single campaign. Chapter Seven Chapter provide $15 million for job training.These funds organize” commitments from employers in new will be administered through the Los Angeles developments. Such commitments include “card Community Development Department and the check” agreements, which greatly simplify the local Workforce Investment Board. Funds will be process of determining whether employees in a predominantly used for job training for: particular workplace wish to unionize, and “neu- trality” agreements, which ensure that employers ■ Low-Income Individuals living in the will not use their power over employees to dis- Project Impact Area for at least one year; suade them from forming a union.Without such ■ Special Needs Individuals; commitments, it is very easy for determined employers to impede unionization efforts. ■ Low-Income Individuals residing in the City; While advocacy for the right to organize fits naturally with advocacy for other community bene- ■ Individuals currently working in Airport fits, resulting commitments usually should not be Jobs or Aviation-Related Jobs and eligible incorporated into CBAs.This is because CBAs for incumbent worker training. should become part of the developer’s agreement “Low-Income Individuals” are those whose with the local government, and federal law pro- household income is no greater than 80% of the hibits some types of local government involve- median income, adjusted for household size, for ment in collective bargaining issues.While there the Primary Metropolitan Statistical Area. are some circumstances where right-to-organize “Special Needs Individuals” include individuals commitments may be included in development who have received public assistance through the agreements, the legal complexities argue for a Temporary Assistance for Needy Families cautious approach. (We strongly advise that you Program within the last 24 months, who are check with an experienced attorney on this issue, homeless, who are ex-offenders, who are chroni- as this area of law is complicated and changing.) cally unemployed, and dislocated airport work- While the campaign for right-to-organize com- ers.“Airport Jobs” and “Aviation-Related Jobs” mitments can be integrated with the campaign are defined in the CBA. for other community benefits, memorializing the right-to-organize commitments in a separate CBAs can also require the developer to provide document may avoid some legal pitfalls. space or seed money for establishment of a new job training program.This approach was used in These concerns should not impede aggressive the NoHo Commons redevelopment project, advocacy on this issue, however: union jobs are described in Chapter Four.The NoHo generally good jobs, where workers have a range Commons CBA required the developer to pro- of benefits and protections for which they would vide $10,000 as seed money for a new job train- not otherwise be eligible. Right-to-organize ing program for day laborers, with the program commitments can be integral to raising job quali- to be operated by a local nonprofit. Service ty in new developments. providers and advocates can use such funds as leverage to raise money from other public and Affordable Housing private sources for job training. CBAs can be used to promote affordable housing through several different approaches.A lack of Right-to-Organize Commitments affordable housing—in both the rental housing Labor unions and many community groups will market and the ownership market—is one of the place a high priority on obtaining “right-to-

| Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements: most intractable barriers to economic develop-

58 Chapter Seven: Other Community Benefits as Part of CBAs | 59 equirements around the country, around equirements and The U.S. Department of Housing and maintains many Urban Development to devoted offices and programs supply of expanding the nation’s housing.Aaffordable description of to encourage their current initiative regulatory construction removing by barriers is at www.hud.gov/initiatives/affordablecom.cfm. The website of the Innovative of The website contains an Housing Institute overview of inclusionary zoning r assistance on inclu- technical provides sionary zoning. (www.inhousing.org) Housing Coalition provides resources provides Housing Coalition housing issues,on affordable in con- of local mem- cert network with its bers.The another site is NLIHC web find local affordable to good way and advocates. housing developers (www.nlihc.org) ■ ■ quos, at a to build allowed developer with the higher density if it incorporates units. affordable is no existing inclusionary there zon- where Even a project, governing ing requirement local governments can insist on inclusion of a certain per- units as a condition of centage of affordable of a project. approval includes a residential development If a proposed component, groups need to deter- community govern mine whether inclusionary requirements the project. If not, groups can then community try the CBA through to obtain a commitment that a certain will of the units percentage process be affordable. requirements if affordability Even apply,already should consider groups community a CBA them through attempting to strengthen orking on housing affordability The nonprofit National Low-Income National The nonprofit The website of the nonprofit National of the nonprofit The website contains infor- Housing Conference mation on housing policy issues in in particular, general and affordability Housing “Affordable and its online Clearinghouse” contains well-organ- of groups ized links to a great number w strategies. different many through (www.nhc.org) oups interested in affordable housing affordable in oups interested erhaps the best resources for community erhaps the best resources gr ■ ■ RESOURCES ON AFFORDABLE HOUSING AFFORDABLE ON RESOURCES are local nonprofit housing developers and housing developers local nonprofit are experienced housing advocates. affordable such one or more have Most communities nonprofits, will be most familiar and they and requirements affordability with area issues. other key local groups,Beyond national many are there of information housing. sources on affordable P ies with the size of the development. equirements, calling for a certain of percentage opolitan areas where incomes are rising, incomes are where opolitan areas loss of Many programs are mandatory housing are for new programs Many developments, optional quid pro some are but Many jurisdictions have “inclusionary zoning” jurisdictionsMany have r to be developments residential units in new is requirement typical affordability “affordable.”A units;10% to 15% of new often the percentage var “affordable”Definitions of vary widely, are but to regional median incomes,usually linked with no more the goal that households should pay rent. than 30% of income towards ment of a low-income community.And in met- community.And ment of a low-income r housing contributes to gentrification.affordable for the project. Community groups can press for in the next few years—perhaps more than the improvements to the existing requirements in developer’s initial commitments regarding the many areas, such as: Staples project itself.

■ the percentage of units that will be Even aside from inclusionary zoning require- made affordable; ments, there are many laws aimed at preserving ■ the definition of “affordable”; and increasing the supply of affordable housing. For example, when a redevelopment project ■ the number of years after construction that results in the demolition of affordable housing the units must remain affordable; units, the local government entity overseeing that ■ whether and how the required affordable project may be required to replace those units. units will be integrated with the Similarly, many states require that a portion of market-rate units; new tax revenue generated by redevelopment ■ number of bedrooms in affordable units; projects be dedicated to development of affordable housing.While these responsibilities general- ■ whether the developer will apply for a ly fall on the local government rather than the waiver or reduction in affordability developer, community groups should understand requirements, as is permitted in these requirements when negotiating over afford- some jurisdictions; able housing with the developer and the local ■ whether the developer will contribute government. Community groups should work money to an affordable housing fund with local affordable housing advocates to under- rather than building affordable units, as is stand the legal and financial environment and permitted in some jurisdictions; and the current opportunities for affordable ■ whether the affordable units must be housing development. built at the same time as the market Funding or Facilities for Community rate units. Services Even if a proposed project does not include new residential housing, community groups can press Every neighborhood needs funding or facilities for the developer to fund local affordable housing for community services. Developers of large, pub- programs.This is especially appropriate when the licly-subsidized projects are often willing to pro- development is likely to increase rents in the area, vide space or funding for such services. CBA potentially driving out long-term residents. negotiations can galvanize these commitments, can tailor them as needed, and can make them There are many ways that developers can provide detailed and enforceable. financial support for affordable housing.They can contribute to nonprofit housing developers; they Community groups might press for facilities or can also contribute to the local jurisdiction’s funding for youth centers, health clinics; child affordable housing fund.The CBA for the Staples care centers; community centers; senior centers; project used a creative approach whereby the job training programs; educational programs; art developer established a revolving loan fund for programs; recreation facilities; or other neighbor- use by several local nonprofit housing developers. hood improvement projects. The Staples CBA provides the framework for the developer and these nonprofits to collaborate to The many possibilities here underscore the need produce a substantial number of affordable units for advocates to conduct a broad, inclusive assess- | Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements:

60 Chapter Seven: Other Community Benefits as Part of CBAs | 61 le for reserving this space for 6 esponsible contractor or is not eligible esponsible or judicial findings ecent administrative “a 10% set aside of retail space for “a 10% set aside of retail the down- in existing small businesses will be responsi- town.The developer b marketing months and for aggressively this opportunity for qualified firms.” a current designation by a government a current designation by is not a entity that the business r contracts; for public r has violated labor or that the business ■ ■ ■ en unique—opportunity to bring a valuable unity groups may have to spend a lot of their to spend a lot have may unity groups eeping out undesirable businesses can be just as businesses eeping out undesirable usiness like a bank or supermarket to a low- usiness like The legally binding memorandum setting ecord of labor violations,ecord viola- safety workplace ounding community, fighting worth are so they out developer commitments is attached as commitments is out developer Appendix G. for.A new development may be an unusual—or be for.A may development new ev b potential benefits to income community.The immense. are neighborhood residents K important ones. including desirable as com- groups can push for developer Community a track that have mitments to exclude businesses r tions, problems.These criteria or environmental the devel- by can apply both to contractors hired oper and tenants, selection and to the developer’s of tenants themselves. contracting with prohibit An ideal policy would based on specific,or leasing to businesses inde- criteria,pendently verifiable such as: m type of benefit. to obtain this political capital However,will determine these decisions whether the sur- serves really development or not the r THE CIM PROJECT IN SAN JOSE “best efforts to achieve the goal of “best efforts to achieve San Jose,30% retailers from 30% the region,from and 30% national and unique mix an effective to insure of retail.” ommunity groups advocating around groups advocating ommunity the CIM project,Appendix described in ■ obtained the following commitment from commitment from obtained the following C B, the developer: EXAMPLE: Because the use of space within a development bottom line, affects the developer’s com- directly Communities often press for the inclusion of a often press Communities supermarket or a bank—crucial services that are neighborhoods.often lacking in low-income If and local-serving will be businesses locally-owned a development,displaced by then it is fair to for at least project demand space in the new some of these businesses.Advocates also press may for inclusion of space for community-serving nonprofits, if possible. rent at a reduced Community groups routinely advocate for advocate groups routinely Community develop- changes in the elements of a proposed ment project, in an effort to bring busi- desirable development. into the new nesses or nonprofits negotiations fits naturally with This advocacy over a CBA. Shaping the Mix of Businesses In the Shaping the Mix Development ment of their community’s needs, community’s ment of their prior- and then goals.Advocatesitize their that remember should of operating business not in the are developers of facilities;these types commitments if developer resources with community not supplemented are and involvement, go to waste. to likely are they groups should expect to remain Community for in implementation and fundraising involved such programs. 62 | Community Benefits Agreements: Making Development Projects Accountable are requirements thatbusinesses onsuch report helpful developer thinkingalongtheselines.Also suchacommitmentwillatleastgetthe enforce, of business responsibility.While more difficultto it may bewillingtake intoaccountconsiderations tions onitsdiscretion over contractingorleasing, If adeveloper willnotcommittoabsolutelimita- ■ the coalitionthatnegotiatedthisagreement. note theimplementationrole envisioned for f andtoensure thatlow-income care facility, space withinthedevelopment forthechild that thedeveloper isrequired bothtoprovide r F T EXAMPLES: COMMONS ANDYOUTHCENTERINSUNQUEST mle ilhv cest t Inaddition, amilies willhave accesstoit. griga nst hl-aecne.Note egarding anon-sitechild-care center. u,containsthefollowing provisions our, environmental laws. r or ing suchadmissions; orlegalsettlementsmak- employment law, ecent citationsforviolationof v he CBA fortheNoHoCommonsrede- elopment project, described inChapter described elopment project, Child CareProgramandFacility sidies forfamiliesinneed. ing basisandshallsecuregovernment sub- provider shalloperatethesite onanongo- moderate-income families.The childcare be madeavailabletoverylow, lowand require thataminimumof50spacesshall its leasewiththechildcareprovidershall the surroundingcommunity. Developerin child careforbothon-siteemployeesand offer affordable, accessibleandquality care center. Thischildcarecentershall provider foruseofthatlocationasachild into aleaseagreementwithchildcare tion forachildcarecenterandtoenter Developer agreestoplananon-siteloca- CHILD CAREFACILITY INNOHO . The b homeloansandsmall access tobankingservices, Most low-income communities lackadequate Banking ServicesandLendingAssistance prahs e pedxD section VIII. D, SeeAppendix approaches. usedacombinationofthese Chapter One, in described The CBA fortheStaplesproject, mix oftenantsfrom thisperspective. andthatthedeveloper onhis report violations, involvement inimplementation. the heavy community andgovernment Note online atwww.laane.org/ad/cba.html. SunQuestCBA isavailabledevelopment.The y thespacedevoted tothe child care facility, y Los suitable foruseasa Angeles afacility developer tobuild anddonatetotheCityof requires the in described Appendix B, Project, ParkThe CBA fortheSunQuestIndustrial development’s source first program. developer toprovide rent-free spaceforthe The NoHoCommonsCBA alsorequired the usiness loans.This stands as a real barrier to standsasareal barrier usiness loans.This outh centerwillnotbespacewithinthe Unlike theNoHoCommons outh center. ability ofthechildcarecenter. efforts tomaintainthequalityandafford- assist theproviderinfundraisingandother provider. TheValley JobsCoalitionwill will bethelong-termresponsibilityof and affordability ofthechildcarecenter provider toleasethefacility. Thequality Center toselectaqualitychildcare Jobs CoalitionandtheChildCareResource The DeveloperwillworkwiththeValley Chapter Seven: Other Community Benefits as Part of CBAs | 63 orker Retention orker retention requirements. Section VII of the requirements. retention orker Section contractors covering provisions retention orker equire efforts opportunitiesequire to target business to Local Businesses and Affirmative Action in Contracting provide projects subsidized development Publicly unique opportunities in low- for businesses income neighborhoods. Occasionally, pro- laws opportunitiesvide that business arising in a subsi- dis- to businesses be targeted dized development the development,placed by or to small businesses in the surrounding neighborhood; HUD’s Three”“Section such efforts in requires program some cases. However, opportunities these business realized. rarely are to process the CBA groups can use Community r neighborhood businesses.These efforts can per- tain to service contracts (such as security, land- scaping, or custodial services), supply contracts, or construction contracts. a single contract can Even W retention” “worker and states have Some cities laws, security job long-term to provide which contracts change hands. when city service workers workers,In addition to protecting these ordi- city over who take employers nances also prevent to in order firingcontracts from workers existing “break” workers. those the union that represents for employ- similar protections can include CBAs reten- development.Worker a new at ees working con- developer’s can apply to the tion provisions tractors, tenants’ contractors, or both.They can also apply to a specific tenants, such as a hotel or get a theater.This that the service ensures workers or when the specific hotel even their jobs to keep a hotel theater operator changes—thus when a Hilton to a changes management from Sheraton, are service many employees hotel’s the of work. out not thrown Security services, custodial services, also natural fits for are and the like w Staples CBA,Appendix D, attached as includes w and hotel and theater employees. Developers Community Many low-income Many can support low- that help programs to become homeown- income individuals ers, their homes, to repair in or to remain their homes when at risk of foreclosure because of predatory lending. Development Financial Institutions,Development or CDFIs, targeted to loans that are make communities, businesses, and nonprofits for- the traditional underserved by that are lending market.profit CDFIs can also lenders, private guarantee loans made by assistance to loan technical and provide applicants. in or lend can invest Developers to CDFIs or similar organizations money the neighborhoods in which that serve be located. will their projects communities have no banking services have communities ATM. an If a devel- even whatsoever—not opment is going to include commercial space, bringing a bank into the community benefit. a tremendous can provide Banking services. Homeownership assistance. Homeownership Lending assistance. ■ ■ ■ ould make good community benefits as part good community of ould make usinesses, housing develop- affordable nonprofit Good resources for informationGood resources on efforts to commu- bring to low-income capital and credit Reinvestment the National Community nities are Coalition (www.ncrc.org), the California Coalition (www.calreinvest.org), Reinvestment Institute (www.woodstock- Woodstock and the inst.org). Many kinds of financial services kinds of financial Many and assistance w a CBA. community-friendly development. economic services financial benefit individu- can Improved als, families a home, to purchase looking small b ers, and other local nonprofits. bump a small local business up from a previous Many small construction contractors do not level, giving it a track record on a project of larg- employ union workers or pay union wages and er size. In addition, contract awards to a local benefits. Building trades and worker advocates business can produce a bigger “multiplier effect,” are rightly concerned that contracting programs as locally-owned businesses are more likely to that steer work to these contractors will drag hire local workers and to reinvest profits in the down wages and benefits for workers.They community.While there are some legitimate con- argue that providing jobs to community members cerns about such programs, particularly in the is of questionable value if the jobs pay low construction industry, in many situations business wages, provide no employee benefits, and provide opportunities will nonetheless be a high priority little training. for community advocates. Tensions arise because some representatives of There are a great many models for programs to low-income communities feel that few individu- help certain businesses obtain contracts. Hundreds als from their communities are involved in the of jurisdictions have had or still maintain affirma- unionized construction referral system.They tive action programs in public contracting; many argue that without efforts to involve local busi- large corporations have programs promoting diversity in contracts they award; and all levels of nesses, large union contractors will perform the government have programs targeting small busi- construction contracts, and, while wages might nesses for contract awards. be good, these wages will be going to current union members rather than to workers from Approaches used in these programs vary widely. their community. Many programs use some combination of required elements, such as requirements that busi- These opposing views present a false dichotomy. nesses awarding contracts must: To the extent that construction contractors in low-income communities are not union contrac- ■ notify local contracting organizations of tors, they can be brought into the union system. contracting opportunities; Many small construction contractors lack ■ assist local businesses in bid preparation; experience with union referral and pension systems, and would benefit from special efforts ■ break large contracts down into smaller to bring them in. More union construction contracts; contractors can only lead to a better quality ■ make good faith efforts to award contracts of life for workers. to local businesses; and Similarly, to the extent that individuals from ■ attempt to meet percentage goals for local business awards. low-income communities are not well- represented in certain construction trades, efforts can be made to bring them into the sys- Contracting Programs in the tem as well. Many labor unions and devoted Construction Industry advocates have developed creative and successful Contracting programs can present special con- programs to expand union membership in cerns and tensions in the construction industry. particular communities. The construction industry has unique processes for hiring workers and for awarding contracts and Many of these issues can be resolved through subcontracts, making advocacy in this area diffi- cooperative efforts and through a combination of

| Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements: cult and specialized. related requirements and initiatives. Depending

64 Chapter Seven: Other Community Benefits as Part of CBAs | 65 ul Sonn, Center for Justice Brennan ohn Goldstein, President, Milwaukee Pa York),212-998-6328(New J County Labor Council, 414-771- 7070, [email protected] Houston Drayton, on consultant PLAs,Seattle-area 206-988-5694 Martin(DC) Trimble,Washington Interfaith Network, 202-518-0815 Amaha Kassa,Alliance for a East Bay Economy,Sustainable 510-893-7106 ■ ■ ■ ■ ■ tnerships Project of the AFL-CIO’s of the tnerships Project orking for America Institute (www.work- orking for aluable than the most detailed writtenaluable policy. Also, see generally the High Road Par W ingforamerica.org/highroad/index.htm). A combination of these approaches may enable may of these approaches A combination constructionsmall local contractorsdevelop to good wage maintaining while their businesses and bringing for the project new many levels union system. into the contractors and workers all partiesopenness by is key. Cooperation and efforts if all these agreed upon, are Even a local construction can be difficult contracting program for a single project.to implement even Prime with close relationships very contractors have their subcontractors, often loath to work and are ones.Advocateswith new for local construction the best chance of success if contractors will have the before on board the developer have they has selected a prime contractor,developer so that that the prime sure contrac- makes the developer commitment to work tor it chooses has a real with local businesses.This the where is an area can be more individuals personal efforts of key v assistance to local contractors in com- here are several examples around the examples around several are here part- and effective country of creative ent contractors from underbidding each underbidding ent contractors from equire decent wages and benefits and pre- and benefits decent wages equire efforts to bring members community union apprenticeship into established programs, including funding for pre- programs. apprenticeship local contracting programs, accompanied by and requirements wage plying with project systems;new and project labor agreements,project a establish which rules,common set of work condi- working tions, hiring settlement dis- practices and pute mechanisms, the stipula- usually with the be no strikes will by tion that there management; by unions or lockouts prevailing wage requirements, wage prevailing which r v cutting wages; other by unity organizations.The recent, successful or information on successful labor-commu- LABOR-COMMUNITY PARTNERSHIPS IN THE PARTNERSHIPS LABOR-COMMUNITY CONSTRUCTION INDUSTRY T trades and com- building nerships between m on standards benefits push for community in project East redevelopment the Park partnership a strong featured Milwaukee trades and various building commu- between nity-based groups. detail on more For East victory,the Park see the conclusion of this handbook. F nity partnerships in the construction industry, contact: ■ ■ ■ ■ on the priorities work- groups and of community er advocates, include: may these 66 | Community Benefits Agreements: Making Development Projects Accountable tunities local. for workers while stillkeeping business oppor- providing protection es intotheunionsystem, smallbusiness- canhelpbring focusedefforts er, howev- Aswithconstruction, for theirworkers. nesses oftenhave bettercompensationpackages aslargerbusi- lead tolower wages andbenefits, andsupplycontracts will in obtainingservice localbusinesses toassistsmall, thatefforts cerns there are con- industry, As withtheconstruction gr r somewhat more reluctant toapplycontracting Developers may be tunities forlocalbusinesses. These ongoingcontractscanbeexcellentoppor- orsuppliesrelated tothedevelopment.services toprovidelocal contractors andother security Developers may beopentousing less complex. are andsupplycontractors toassistservice Efforts Service andSupplyContractors qieet otertnns but community equirements totheirtenants, oups can certainly press on this issue.oups cancertainly following language: includingthe tance programs, T IN THELAXCBA EXAMPLE: ■ ■ n,includesarangeofbusiness assis- One, inChapter described he LAXCBA, pre-bid conferences; r and disadvantaged businesses, Project Impact Area small businesses, inclusion ofProject Impact Area b andrelevant disadvantaged businesses, Project Impact Area small businesses, Impact Area toProject Impact Area targeted outreach withintheProject elevant business organizationsin usiness organizations; BUSINESS ASSISTANCE PROGRAMS g goalsofaffirmative actionpro-same important willinmanylocal contractors casesachieve the Programs thattarget but they stillexist. tions, the government isnotinvolved inCBA negotia- legalobstaclesare lesssevereicy becomes.The if anaffirmative action pol- theriskier negotiations, closely thelocalgovernment isinvolved inCBA themore therefore, government are very strict; bytions onrace-andgender-consciousefforts limita- related toaffirmative action.The concerns b andwoman-owned tobenefitminority- efforts r J local contractingpolicy. ofa from becomingunintendedbeneficiaries b Itwillalsoprevent large from legalchallenges. limitationwillhelpprotect policies benefit.This clear limitonthesizeofbusinesses thatcan All policiesassistinglocalbusinesses shouldhave a ust abouteverything mentionedinthissection egarding localcontractingappliesaswell to snse,wt n aet there are speciallegal withonecaveat: usinesses, ofthenewusinesses thatare development part as with lesslegalrisk. rams, and smallbusinesses. andwomen-ownedminority- businesses These programs willbetargetedto ■ ■ ■ where necessary. types ofcapacity-related assistance procurement andother insurance, assistance withaccesstobonding, r b into bidsizesthatwillallow small projectsunbundling ofconstruction nesses anddisadvantaged businesses; ings forProject Impact Area smallbusi- meet- “Meet theGeneralContractor” estricting theproject timelines; estricting snse ee optto,without usinesses level competition, Chapter Seven: Other Community Benefits as Part of CBAs | 67 68 | Community Benefits Agreements: Making Development Projects Accountable Chapter Eight: Monitoring and Enforcement of CBA Commitments | 69 Who will monitor performance? and when will informationHow on performance be made available? is What will happen if the commitment not fulfilled? ■ ■ ■ These are not easy issues to discuss in the context These are benefits.An community of negotiations over emphasis on the details of monitoring and a trusting, does not help create enforcement col- during atmosphere negotiations.laborative Some off- are monitoring provisions and enforcement so complex and techni- are putting because they cal, legal expertise. generally require and they Nonetheless, groups need to make community monitoring provisions enforcement and effective a priority. and sensible who resist Developers monitoring systems are enforcement and effective

What is the time frame for the commitment to be fulfilled?

■ Monitoring Commitments of CBA and Enforcements oups must pay careful attention during careful negotia- pay oups must or a CBA to succeed in this role,or a CBA community tions to how each community benefit will be each community tions to how and enforced.monitored each developer For commitment in a CBA, groups community contains answers that the CBA sure should make questions: to the following gr F Commitments to provide community benefits community Commitments to provide often go unfulfilled. Difficulties in monitoring problem. a widespread are and enforcement this problem, an attempt to address are CBAs commitments memorializingboth by developer groups to in writing community enabling and by them,enforce on to rely rather than having local governments. Chapter Eight Chapter developers whose commitments may reasonably signing of a lease agreement; however, in such be questioned. cases the meeting shall be scheduled to occur on the earliest possible date and shall in any Chapter Five contains detailed information event occur prior to the signing of the lease about monitoring and enforcing targeted agreement or other contract. hiring programs.

Time Frame Other benefits can be provided only after the Every benefit described in a CBA should have a project is built, such as living wages and local hir- clearly defined time frame. Many community ing.While these benefits generally don’t need a benefits are “front-end” commitments that are particular “start date,” developers may want these intended to be fulfilled as soon as it is clear that benefits to expire at a certain time—perhaps five the development is actually going forward (for or ten years from the opening of the develop- example, financial contributions for improved ment. If community groups agree to such a time neighborhood services). Developers will want limit, it should be clearly described in the CBA. some assurance that community groups will not The CBA itself should have a defined end date attempt to hold them to these commitments if as well. the project falls through. Front-end benefits should be provided by a date at which it is clear Monitoring that the development is moving forward, such as the date construction commences. Community groups should consider how each benefit in a CBA will be monitored. Financial Benefits concerning a developer’s selection of commitments and other one-time benefits are tenants should have time frames tied to the date probably the easiest aspects of a CBA to monitor. the developer enters into lease agreements.A Much more challenging are ongoing tenant com- good example of this language is the following mitments, such as living wage and local hiring provision from the “Living Wages” section of requirements.The most effective approaches the NoHo Commons CBA described in include affirmative reporting requirements as well Chapter Four. as the ability to investigate complaints of non- compliance.

B. Coalition Meeting with Prospective Tenants. Required reports should be no less frequent At least 30 days before signing a lease agree- than once a year, should be publicly available, ment or other contract for space within the and should be due by a particular date each Proposed Development, the Developer will year.A developer might be required to file with arrange and attend a meeting between the the city council a report on a year’s wage levels Coalition and the prospective Tenant, if the at the development by April 30th of the succeeding Coalition so requests. At such a meeting, the year.Tenants can be subject to similar require- Coalition and the Developer will discuss with ments, or can be required to submit information the prospective Tenant the Living Wage to the developer in time for the developer’s report. Incentive Program and the Health Insurance Trust Fund, and will assist the Coalition in Community groups should not simply rely on encouraging participation in these programs. If reports from the developer and tenants. Reports exigent circumstances so require, such a meet- need to be verifiable, and complaints need to be investigated.These tasks can be very tricky, how

| Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements: ing may occur less than 30 days prior to the

70 Chapter Eight: Monitoring and Enforcement of CBA Commitments | 71 orking in the development. usinesses that fail to do this.Any in the break If community groups hope to require that groups hope to require If community to its a certain wage subcontractor to pay employees, needs to contain then the CBA mak- language detailed and well-thought-out the down move that responsibilities ing sure chain of contracts and bind the subcontractor. needs to set up a system whereby The CBA is informed(1) each business of and agrees to that apply to it, requirements the substantive agrees that it will include (2) each business in other contracts it enters these requirements into, agrees that commu- and (3) each business nity groups, the local government, or affected the requirements. can enforce individuals strict penalties for needs to provide The CBA b contractual “chain” will make CBA require- against some businesses ments unenforceable w eports are not verifiable by anyone.This is an anyone.This by eports not verifiable are Enforcement by community groups by community Enforcement groups enteringCommunity can and into CBAs against CBAs ability to enforce the should have in court.Whilethe developer most contracts have damages of money for recovery some provisions against a party violating the agreement, commu- concernednity groups will generally be more in factwith ensuring benefits are that promised approach may be a workable compromise on a on compromise be a workable may approach difficult issue, however. moni- to approach no one-size-fits-all is There toring benefits. community details the However out,play settle never groups should community for a monitoring performance system where r approaches creative from that will benefit area during problem-solving the and collaborative negotiation process. drafting a CBA need to pay partic- need to pay drafting a CBA rs rs ye the example of a CBA that includes the example of a CBA aw ular attention to language in the CBA that ular attention to language in the CBA ke usinesses working at the development.The usinesses working LEGAL ISSUE: CHAINS OF CONTRACTS LEGAL ISSUE: CHAINS to determine whether that commitment L will bind parties other than the developer: contractors and tenants,developer’s various subcontractors, entities to whom the developer sells land, and so forth. that Making sure bind these entities can be legal requirements complex, chain of be a lengthy may as there contracts involved. Ta all covering provisions mandatory wage living b as follows:chain of contracts might work the with the into a CBA groups enter community developer, which enters into a lease agreement with a tenant, a contractor to pro- which hires vide custodial services, a subcon- which hires tractor to perform a particular task, which at issue. are whose wages the employees hires er. to reluctant tenants will be and Developers oups, groups need a reliable the community ages and hiringages and decisions. But if developers One possible compromise is to empower local is to empower compromise One possible to verify officials reports and/or government complaints.investigate has been fold- the CBA If agreement,ed into a development devel- then the been made to the local have commitments oper’s as well,government moni- and a governmental toring is a natural fit.This role is diffi- approach is if the CBA cult (or in some cases impossible) agreement.not part of a development In addition, the prefer groups will always community ability to monitor performance themselves, rather on the local government.This to rely than having is being fulfilled. way are making a commitment to community a commitment making are gr ev of their inspect records groups let community w 72 | Community Benefits Agreements: Making Development Projects Accountable against the tenants and contractors istomakeagainst thetenantsandcontractors the The onlyalternative todirect enforcement enforce them. needs tobeaway forcommunity groupsto there commitments ontenantsandcontractors, the developer isreally toimposethese agreeing if However, up tolawsuits by community groups. toopenthemselvestheir tenantsandcontractors Contracts.) Developers may beresistant toasking Chainsof (Seebox onLegalIssue: development. ofa commitments ontenantsandcontractors maintain theabilitytodirectly enforce CBA forcommunity groupsto It isalittletrickier commitments containedintheCBA. thedeveloper order requiring court tohonor ensure thatCBAs toaskfora recognize theright Community groupsshouldtherefore provided. r andcitieshave and theexperience measures, ofenforcemently contemplateawidevariety Development general- agreements to adeveloper. ment enforcement may bemuch more powerful thethreat ofgovern-developer’s commitments, ensure thattheycertainly candirectly enforce the community groupsshould of theCBA.While assistsintheenforcement greatly agreement Inclusion ofaCBA inthedevelopment diction toinitiateone. community groupsshould encouragethejuris- withthedeveloper, agreement out any written intendstoprovidejurisdiction thesubsidywith- Ifthelocal providingjurisdiction thesubsidy. ofadevelopmentpart withthelocal agreement Requirements ofaCBA shouldusuallybecome Enforcement byLocalGovernment developer by by r theseenforcement issues money damages.All its commitmentsandcannotescapeby paying the developer orderstofulfill issubjecttocourt CBAs shouldbeclearthat and contractors.Again, esources necessary totakeesources necessary these equire closeattentionfrom trusted anattorney community groups. r esponsible forthebehavior oftenants compliance issues. solveaction ifnecessary—should mostCBA out problems—backed by theabilitytotake legal towork efforts communication andgood-faith Open action becauseadeveloper violatesaCBA. ty-based organizationsactuallyneedtotake legal itwillbearare casewhere communi- Hopefully, however. enforcement option, last-resort action orarbitrationisanimportant Court thereby avoiding litigation. solutions, anabilitytocometogether andworkparties out giving contain somedispute-resolution system, CBAs should Inaddition, once putonnotice. problemsallowing achancetocorrect eachparty CBAs period, shouldcontainsomecorrection abstract one. drafting willmake thispossibilitymore thanan andcareful intheCBA, benefits asdescribed r signing aCBA thushave thelegalpower to Community groups enforceable by theotherside. CBA isthateachside’s commitmentsare legally ofa core principle developer commitments.The CBAs shouldembracetheirabilitytoenforce community groupssigning however, On allissues, in theseareas. intocontracts than localgovernments inentering g andaffirmative agreements actionpro- check” suchas “card tions onlocalgovernmental action, ment are thoseforwhichthere are clearrestric- ofadevelopmentshould notbecomepart agree- The onlycommunity benefitsthatgenerally take complaintsofnoncompliance. can suchasworkers inthedevelopment, viduals, Ideally thiscanbeasystemwhere affectedindi- city’s administrative systemisanobvious step. commitments inaCBA enforceable through the makingliving wagecity hasaliving wage policy, ifa For example, existing administrative systems. enforcement ofsomecommunity benefitsinto government may beable tofold In addition, inclination todoso. measures—when they have thepolitical equire thedeveloper toprovide thecommunity as community groupshave widerflexibility rams; Chapter Eight: Monitoring and Enforcement of CBA Commitments | 73 74 | Community Benefits Agreements: Making Development Projects Accountable Conclusion: Changing the Paradigm | 75 to require analysis of economic effects of land use analysis of economic effects to require decisions; requiring ordinances close scrutiny of stores;high-impact big-box and an expectation that certain large, prominent, subsidized heavily a CBA. will have projects should remain benefits advocates Community outcome-oriented.While this handbook describes situations, in many that has worked an approach is its adaptability. of this approach the strength situation should in a given Aspects of it that work be used, be jetti- should and aspects that don’t soned. is different: community Every in needs, in politics, opportunities, in development in strength organizations. of community and cohesiveness describedThe CBAs in this handbook came out advocacy;of determined flexible yet through flexibility and creativity, the determined advocates this the countryaround will further develop techniques as well. and craft new approach Changing the Paradigm

um standards for certainum standards projects; changes in un, to resource-intensive is too such an approach land use planning documents, general plans, like The goal of the community benefits movement is benefits movement The goal of the community changing this situation by the paradigm to avoid of land use planning for large, publicly-subsidized or those requiring major land use projects approvals. many Results of this change will take forms:concrete mini- citywide policies providing m be effective for anything but the largest and most but for anything be effective projects. development prominent smaller Many go forward will inevitably subsidized projects without appropriate involvement. community As effective as community groups have been in groups have as community As effective CBAs,negotiating recent project-by-project not an ideal approach. negotiations are identify to groups should not have Community upcoming projects, mobilize coalitions, and fight again. and over the same battles over In the long r Conclusion 76 | Community Benefits Agreements: Making Development Projects Accountable A following requirements forcovered projects: setsoutthe East Redevelopment Compact, known asthePark resolution, ing years.The will reshape downtown Milwaukee incom- ofredevelopmentfor theseries projects that range ofcommunity benefitsrequirements a legallybindingresolution establishing a In2004 theCountyBoard passed corridor. downtown redevelopment ofthePark East strong community benefitsstandards forthe y For two inMilwaukee. tremendous victory recently won a Neighborhoods Coalition, P as theCoalitionhasbeenpressing for ears, ARK EASTREDEVELOPMENTCOMPACT ■ ■ ■ ■ yavcts theGoodJobs andLivable ty advocates, broad coalitionoflaborandcommuni- construction employment;construction training requirements for additional apprenticeship and w prevailing wages forconstruction plan; assisted localhiring employer inaCounty- participation r a 20%affordable housing equirement; orkers; lowing groups: broad coalition included thefol- trades.The between community groupsandbuilding featured acloseandeffective collaboration for thisproject isalsonoteworthy inthatit campaign ciples intolanduseplanning.The ofcommunity benefitsprin- incorporation isaperfectexampleof opment projects, oflargefuture redevel-applicable toaseries andrequirements, This rangeofprinciples ■ ■ ■ ■ to Park Eastredevelopment projects; willapply taged business enterprises County policiestoassistdisadvan- developers toaddress thoseissues; andRFPsshallrequire and taxbase, includingjobs tions oftheproposals, account thebroad economicimplica- selection ofdevelopers shalltake into r on implementationofthese Committee toadvisetheCounty a standingCommunity Advisory and of RFPs; gr spaceand consideration ofgreen equirements. een design principles inevaluationeen designprinciples Conclusion: Changing the Paradigm | 77 men and Poverty Public men and Poverty sconsin Citizen Action sconsin Citizen isconsin Council on Children and isconsin Council on Children of Nurses isconsin Federation and ainters Local 781 Wi W Families W Health Professionals Wo Education Initiative P St. Meal Benedict Community St. Benedict the Moor Catholic Church Local 469 Workers Auto United United Lodge 66, Machinists Union Urban Underground ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ isconsin’s Future, isconsin’s or more information East vic- or more on the Park F tory, of the Institute for site see the web W www.wisconsinsfuture.org, or contact John Goldstein, President, County Milwaukee Labor Council, 414-771-7070, [email protected]. See Appendix A for information during on Coalition advocacy East initial implementation of the Park Compact. Redevelopment orking Women MICAH County Labor Council Milwaukee Northcott Neighborhood House, Inc. Institute for Wisconsin’s Future Wisconsin’s Institute for Interfaith of Greater Conference Milwaukee Fair Housing Milwaukee Metro Council Harambee Ombudsman Project,Harambee Ombudsman Inc. Hillside Neighborhood Residents Council Arms Amani Around Neighborhood Association Advocates Community of the Group Waters Great Sierra Club AFSCME District Council 48 AFT Local 212 Arlington Court Resident Organization 9 to 5 National Association of 9 to 5 National W ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 78 | Community Benefits Agreements: Making Development Projects Accountable MEASURING BROADERIMPACTS S government entitieshave responded: andseveral cates have proposed changes, community benefitsadvo- impacts, ranging considerationofthesewide- include formal Because mostplanningprocesses donot or alloftheseareas. have positive ornegative impactsinmost largedevelopmentsafety.A couldobviously andpublic growth smart principles, ance, jobs/housingbal- businesses, surrounding economicclimatefor finances andtaxbase, public ity andcostofgoodsservices, availabil- including typeandqualityofjobs, social andeconomicimpactsinmany areas, Large developments always have substantial ofcourse. that, large development are much broader than impactsofanyto environmental issues.The limited theirscopeisnecessarily exceptions, r Environmental impact posed projects. ment ofawiderangeimpactspro- ning processes assess- torequire aformal prsaeacuilto,bt withnarrow but, tool, are acrucial eports ■ ■ moved tochangetheirland-useplan- ev eral communities have recently at awiderangeofimpacts. r preparation ofa “community context requiresRedevelopment Agency The Los Angeles Community nomic impacts the stores.The assess- nomic impactsthestores.The assessmentsoftheeco- for formal stores topay tain typesof “big box” incer- whoproposeopers tobring devel-passed anordinance requiring The cityofLos Angeles recently pr”frcranpoet,looking projects, forcertain eport” [email protected]. 619-584-5744, Initiatives, CenteronPolicy DonaldCohen, Contact: city’s draftofthislanguage. current Hcontainsthe general plan.Appendix toits of an Element” “Economic Prosperity addition considering San Diegoiscurrently land useplanningdocumentsinmostcities. level—general plansare thebasic al plan” impacts oflandusedecisionsatthe “gener- pushed forconsiderationofeconomic someadvocates have assessment policies, In additiontoproject-specific impact project impacts. considerationofawiderange formal decisionmakers willbenefitfrom ofthepublic andgovernmentmembers Both subsidy over amount. acertain orthatreceive apublic sizeortype, certain types ofpoliciesonlyforprojects over a Advocates have generallyproposed these ■ that required inLos Angeles. r ordinance passed a “superstores” The cityofSacramentorecently ad/superstores.html. nance isavailable atwww.laane.org/ textoftheordi- stores.html.The www.www.laane.org/ad/super- is available at ontheordinance Information goods. andaccesstolow-cost ation orloss; reven impactoncity space displacement; andopen housing, potential business, ments must evaluate as suchfactors equiring anassessmentsimilarto equiring e;ceto fbih;jobcre- creation ofblight; ues; Conclusion: Changing the Paradigm | 79 unity benefits principles; and unity benefits campaigns. an increasing number of redevelopment number an increasing plans, specific plans, land and other public com- reflect documents that use planning m of commu- awareness in media an increase of com- and coverage nity benefits issues m strongly encourage advocates throughout the throughout encourage advocates strongly can provide in developing your campaigns. your developing in can provide ■ ■ wn communities. assistance Please contact us for We and imple- in designing country to be creative benefits agenda in their menting a community o we The experience in California—and the burgeon- throughout benefits movement ing community the country—demonstrate that in the right circumstances, determined organizing and strategic subsidized develop- can help publicly advocacy benefits to tremendous deliver ment projects affected communities. new policies requiringnew certain minimum for subsidized projects,standards local like hiring wages; or living policies requiring of new measurement a wide range of impacts of proposed developments; more development projects for which the projects development more stream entity maintains a revenue public benefits; dedicated for community more CBAs won for specific developments; won CBAs more public issued by RFPs and RFQs more agencies requiring applicants to include a benefits in their pro- range of community posals; an increasing number of local and state of local and number an increasing for communi- who advocate officials public willing to speak to their ty benefits and are peers in other cities; ■ ■ ■ ■ ■ ■ ollowing are some of the benchmarks we’ll be benchmarks we’ll some of the are ollowing looking for over the next few years: few the next over looking for F 80 | Community Benefits Agreements: Making Development Projects Accountable About the Authors | 81 rantees of the McKay Foundation. rantees of the McKay ulian also runs a small law office in San ulian also runs a small law and a Project a Skadden Fellow ulian was and many other community economic develop- other community and many ment initiatives. J Francisco, govern- and with nonprofits working ment entities on issues of social and economic justice, with organization- and assisting nonprofits al needs. background in He has an extensive law,employment economic develop- community ment strategies, action, affirmative anti-discrimi- to nation law, and organizational issues relevant nonprofits. Prior to entering practice, private J Center / Legal Law Attorney at the Employment Aid Society of San Francisco, litigating affirmative action, rights, civil discrimina- and employment tion cases. technical assistance to provides Julian g

orking Families. with the CPWF He works ulian Gross is a civil rights is a civil attorneyulian Gross and is the LAANE and other communi- ulian represented J of the Californialegal director Partnership for W bene- anchor organizations on their community fits initiatives, to advocates and is a resource the countryaround on legal aspects of this work. J ty-based organizations in negotiating the Los describedAngeles CBAs in this article. He has local hiringdrafted numerous and contracting policies, policies wage on living and has worked 870 Market Street,870 Market Suite 915, San Francisco, 94102 CA 415-544-9944 www.juliangross.net Legal Director Legal Families Working California for Partnership Julian Gross About the Authors the About Greg LeRoy become a national model. Over the past six years, Good Jobs First she has provided training and assistance to living 1311 L Street NW, wage coalitions in more than 20 cities across the Washington, DC 20005 country, and is widely regarded as an innovator 202-626-3780 in the fight against working poverty. She serves [email protected] on the boards of directors of Good Jobs First, www.goodjobsfirst.org the California Partnership for Working Families, Clergy and Laity United for Economic Dubbed “the nation’s leading watchdog on state Justice, and the Phoenix Fund for Workers and local economic development subsidies,” Greg and Communities, a project of the New LeRoy founded and directs Good Jobs First. He World Foundation. is the author of the 1994 book No More Candy Store: States and Cities Making Job Subsidies LAANE and Ms. Janis-Aparicio have received Accountable (the first national compilation of many honors, including the UCLA Law accountability safeguards), and 1998 winner of School’s Antonia Hernandez Public Interest the Public Interest Pioneer Award of the Stern Award and the Los Angeles Roman Catholic Family Fund. Greg has been writing, training and Archdiocese’s Empowerment Award, awards from consulting on economic development issues more the Liberty Hill Foundation and Office of the than 20 years for state and local governments, Americas, and numerous commendations from labor-management committees, unions, commu- the Los Angeles City Council and the California nity groups, and development associations. Good Assembly and Senate. Jobs First is a national resource center promoting corporate and government accountability in eco- Prior to founding LAANE, Ms. Janis-Aparicio nomic development; it provides research, training, served as executive director of the Central model publications, consulting, and testimony to American Refugee Center (CARECEN) from grassroots groups and public officials seeking to 1989 to 1993, where she helped lead a successful ensure that subsidized businesses provide family- campaign to legalize and regulate the activities of wage jobs and other effective results. the mostly Latino immigrant sidewalk vendors. During this time, she also headed efforts to com- Madeline Janis-Aparicio bat civil rights abuses of Central American immi- Los Angeles Alliance for a New Economy grants by the L.A. Police Department and the 464 Lucas Ave, Immigration and Naturalization Service, and Los Angeles, CA 90017 helped tens of thousands of Central American 213-486-9880 [email protected] immigrants achieve legal immigrant status. www.laane.org Before joining CARECEN, Ms. Janis-Aparicio, Madeline Janis-Aparicio is co-founder and execu- an attorney, represented tenants and homeless tive director of the Los Angeles Alliance for a people in slum housing litigation, and advocated New Economy. In 2002, she was appointed by for homeless disabled people who had been Los Angeles Mayor James Hahn as a volunteer denied government benefits. She also worked commissioner to the board of the city’s for two years at the law firm of Latham & Community Redevelopment Agency, the coun- Watkins on commercial litigation and land use try’s largest such agency. matters, representing many large companies throughout Los Angeles. She received degrees Ms. Janis-Aparicio led the historic campaign to from UCLA Law School and Amherst College

| Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements: pass L.A.’s living wage ordinance, which has since in Massachusetts.

82 About the Authors | 83 84 | Community Benefits Agreements: Making Development Projects Accountable Appendix A: Current Community Benefits Campaigns | 85

Amaha Kassa

the Front Range Economic Strategy Center,the Front is ranting a public subsidy to the developer of a subsidy to the developer ranting a public EBASE is also leading a campaign to win commu- is EBASE of the redevelopment the massive nity benefits from Oakland,West including Army base in former fund”“community ensuring that a to resi- promised meets dents is fully funded and that the project afford- jobs and wage needs for living community housing. able Contact: EBASE 510-893-7106, x. 12 [email protected]. Colorado Denver, agency is considering redevelopment Denver’s g large, on the site of project redevelopment multi-use the historic Gates Rubber Factory.A coalition of groups,labor unions and community coordinated by coali- with the developer.The negotiating a CBA agency for the redevelopment tion is pressing Current Benefits Campaigns Community Appendix A Appendix oups to win a CBA for a proposed University of University for a proposed oups to win a CBA age, housing and an afford- for affordable money orking with a coalition of labor and community ollowing is a list of some of the many community is a list of some of the many ollowing gr that includes a full-serviceCalifornia development center.Thehotel and conference coalition is calling for union construction, union hotel jobs at a living w linkage fee. childcare able successfully cam- EBASE of these principles favor from in paigned for a vote the City Council of Berkeley, the UC proj- where ect will be located. Berkeley & Oakland, California is Economy Alliance for a Sustainable The East Bay w F benefits campaigns in progress.This list is not intended to be exclusive; attempt at a compre- any rapidly fall out of date.We list would hensive of the wide an idea hope instead to simply give the country range of campaigns going on around at time of writing. improvements in the project and increased commu- job at the project be a living wage job. In addition, nity benefits, given the large amount of taxpayer at least 20% of the housing units will be affordable, money to be spent.While negotiations over the and an existing park will be rehabilitated to make it bulk of the project continue, the coalition—known more accessible to the community. FCCEJ will press as the Campaign for Responsible Development— for deeper affordability levels, and local hiring and entered into an enforceable memorandum of job training commitments. understanding with the developer, under which the Contact: Roxana Tynan coalition agreed to support a requested zoning LAANE change, and the developer agreed to keep certain 213-486-9880, x. 136 big-box stores out of the area. [email protected] Contact: Chris Nevitt Front Range Economic Strategy Center 303-477-6111, x. 14 Miami, Florida

The Miami Workers Center is advocating for a Los Angeles, California CBA for the 7th Avenue Passenger Service Center, a transit hub development that would serve the pre- Adams/LaBrea Project: In 2003 LAANE helped dominantly African-American neighborhood of organized a community effort that successfully Liberty City.The project is slated to receive up to reopened the public process for a development that $35 million in subsidies. Miami Workers Center is would have destroyed dozens of homes. LAANE is seeking to influence the RFP for the project so that now working with the Adams-La Brea the community receives low-income housing and Neighborhood Committee for Accountable various community services. Development—a grassroots organization of neigh- Contact: Sushma Sheth borhood residents—to ensure that the Miami Workers Center Adams/LaBrea Redevelopment Project meets the 305-759-8717 xt. 1004 needs of the community.Thanks to this advocacy, [email protected]. the revised RFP for this project contains basic community benefits principles, which may become part of a CBA with the selected developer.The RFP, Milwaukee, Wisconsin developer responses, and other information about this project are available at the Community The Good Jobs and Livable Neighborhoods Redevelopment Agency’s web site, Coalition is working on initial implementation www.lacity.org/cra/adamslabrea/index.htm. issues for the Park East Redevelopment Compact, described in the conclusion of this handbook. Grand Avenue Project: The Grand Avenue Despite opponents’ claims that the community ben- Redevelopment Project will be an enormous devel- efits requirements would rule out developer interest opment centered around Los Angeles’ major musical in projects in the Park East Corridor, there are at venues—the Disney Hall and Dorothy Chandler least six different proposals in the works for the first Pavilion—near City Hall.The project will include parcel for sale under the new requirements.The hotels, offices, housing, retail, and a park, mostly on Coalition is advocating for selection of a project public land. LAANE has been working with the that will provide the maximum beneficial impact on Figueroa Corridor Coalition for Economic Justice surrounding communities. to advocate for a CBA and to ensure that commu- Contact: John Goldstein nity benefits are incorporated in the development Milwaukee County Labor Council agreement between the City and the developer.The 414-771-7070

| Community Benefits Agreements: Making Development Projects Accountable Making Development Projects | Community Benefits Agreements: CRA’s living wage policy will require that every [email protected]

86 Appendix A: Current Community Benefits Campaigns | 87 Andrea van den Heever van Andrea Sarah Muller Sarah rking Partnerships U.S.A. rking Partnerships sity projects that the project will create 400 new create will that the project sity projects ecommended levels of community benefits based on of community ecommended levels Contact: Connecticut Center for a New Economy 203-785-9494 x. 269 [email protected] Wo 408-445-4574 [email protected] New Haven, Connecticut Medical University 2004,Yale In November the announced plans to construct $430 a new School’s million cancer center, which will be a 14-story, center.The clinical cancer care uni- comprehensive ver permanent positions and 350 construction jobs.The fall is to be completed by 2008,project and is likely federal,to receive state, and local subsidies.The is leading Economy Connecticut Center for a New benefits for a community a coalition advocating agreement for the project, including a range of benefits.community Last summer the city’s “strongly Aldermen passed a resolution of Board urging” to enter into community the university benefits negotiations. Contact: the results of the impacts assessment.The of the results San Jose slated Agency are City Council and Redevelopment year. to consider enactment of the policy this affordable housing units, housing affordable as construction of as well the expected clinics to serve health care new two an residents.This80,000 new provides process opportunity to be benefits issues for community duringaddressed use planning, early stages of land traffic and along with the traditional issues. environmental Partnerships is advocating Also in San Jose,Working benefits for sub- on community for a citywide policy a wide- sidized projects.The require would policy ranging impacts assessment, set certain and would r Donald Cohen on.Working Partnerships is a working member Partnerships is a working on.Working ious environmental standards.The Coalition is ious environmental orking Partnerships for is seeking a 20% set-aside gi ution and the connection between land use deci- land between ution and the connection equire a range of community benefits standards and benefits standards of community a range equire The proposed Coyote Valley development project in project development Valley Coyote The proposed “specific plan,” a enactment of a requires San Jose crucial document, land use setting out the scope of and the subsidies it will entail.Thethe development 25,000 housing over is slated to create development than 50,000 jobs in the San Jose units and more re Force. Task Specific Plan Valley of the Coyote W San Jose, California Contact: Initiatives Center on Policy 619-584-5744 [email protected] also advocating for use of a “Community Economic “Community for use of a also advocating Assessment”Benefits tool to encourage selection overall a positive that have of projects economic impact. In addition, updating its basic land use San Diego is redevelop- planning documents for its continued downtown.The Center on Policy ment of the city’s coalition,A with a broad is working Initiatives Coalition for Responsible Community (ACCORD),Development the city to to encourage r redevelopment downtown for future procedures projects. con- policies include responsible Proposed tracting, requirements, care and health wage housing, for affordable funding increased and var San Diego, CaliforniaSan Diego, of San Diego is consideringThe city adopting an Prosperity“Economic Element” include in its to general plan. binding legally (General plans establish and growth a community’s long-range plans for has Initiatives The Center on Policy development.) for this change,been advocating for- which would benefits principles community mally bring several land use planning process.As current-into the city’s ly drafted, element discusses income distri- this new b sophisticated doc- economy.This sions and the local Appendix H. ument is attached as 88 | Community Benefits Agreements: Making Development Projects Accountable CBA requires the developer to: most prominent inHollywood.The intersections mixed-use development project ononeofthe organizations entered intoaCBA forthislarge, acoalitionofcommunity-based In early2004, CBA: Hollywood &Vine available onlineatwww.laane.org/lax/cba.html. aboutthecampaign is and detailedinformation textoftheCBAin abox inChapterOne.The indetail landmarkCBA isdescribed This recent, LAX CBA: statusoftheprojects.and thecurrent negotiations ofCommunity Benefits Agreements, F ollowing is a brief overviewollowing isabrief ofsomesuccessful ■ Appendix B w take specifiedstepsto achieve a70%living age goal; P ast Community Benefits Agreements doae,nihoho rus and childcare neighborhoodgroups, advocates, b unions, A broad employees’ coalitionof service CIM Project CBA: Construction is slated to begin in2005. isslatedtobegin Construction tion anddevelopment fortheproject. agreement intothedisposi- The CBA willbeincorporated idn rds ml uiess environmental smallbusinesses, uilding trades, ■ ■ ■ ■ health care accessoutreach program. provide $30,000ofseedfundingfora g provide $150,000forarea jobtrainingpro- tenants ofvaryingincomelevels; oftheaffordableportions unitsreserved for withspecified units inthedevelopment, increase thenumber ofaffordable housing hire policy; through source afirst hiring r equire employers inthedevelopment to as and rams; Appendix B: Past Community Benefits Agreements | 89 age goal. eferral system; a system for tailoring job training to needs in the development; of employers for for a job training program seed money laborers;day and a 75% living wage commitment for wage a 75% living in the development,employment with achieve- toward steps to be taken concrete ment of this commitment and monetary penalties if the commitment is not met; center,on-site space for a child care with for very-low, at least 50 spaces reserved low, and moderate-income families; hiring of a firstestablishment source sys- in the development, tem for employers space for staffing the including rent-free r take specified steps to achieve a 70% living steps to achieve specified take w to hire through a first source hiring a first source through to hire policy; and ■ ■ ■ ■ ■ ■ eceive over $31 million in public subsidies and $31 million in public over eceive The CBA was incorporated was master into the The CBA with the city. signed agreement the developer begun on the project. Construction has not yet NoHo Commons CBA: into a Coalition entered Jobs In 2001,Valley the residential, of this with the developer CBA retail, in North Hollywood,and office project a low- Angeles.The will of Los project income area r loans.The the Coalition, by is enforceable CBA commitments: and includes the following The Staples CBA: is described CBA 2001 in detail This noteworthy in Chapter One. Implementation experience for Three.The Staples in Chapter is covered this CBA Appendix D.A as is included in its entirety CBA Times article on the deal is included Angeles Los as Appendix E. ocery store, department store, or hotel equire employers in the development in the development employers equire r dedicate space within the development for dedicate space within the development servicesa community facility, such as a center,community center, youth or job training center, to needs as according determined process; a community through a commitment to work toward low-cost toward a commitment to work center;space for a child-care and jobs if a wage a commitment to seek living gr becomes part of the project. increased affordable-housing requirements; affordable-housing increased for the development guaranteed space in small businesses, program and a marketing of aware businesses local small to make opportunities; project living wages for employees of the develop- for employees wages living garage; parking ment’s labor agreement for the construc-a project tion of the project; ■ ■ ■ ■ ■ ■ ■ ■ Appendix G is a memorandum that sets out most Appendix G is a memorandum that a legally of these commitments and that became development binding attachment to the project’s agreement.The benefits commit- community the Coalition by explicitly enforceable ments are “third-party under the legal status of a designated is under construction at project beneficiary.”The this time. In 2002, organi- a coalition of community-based of with the developer into a CBA zations entered and housing redevelop- this $123 million retail Angeles.The included in Los CBA ment project commitments to: developer Marlton Square CBA: Marlton Square advocates obtained the following commitments in commitments obtained the following advocates agreement for amended development the 2003 in San Jose. project million multi-use this $140 $40 a subsidy of about is receiving The project agency. redevelopment San Jose’s million from 90 | Community Benefits Agreements: Making Development Projects Accountable Fer San Angeles’ project toplannedforLos trial Park isa33-acreThe SunQuestIndustrial indus- SunQuest IndustrialParkCBA: on schedule. Construction isunderway. Construction on schedule. jobtrainingprogram money fortheday laborers’ andthedeveloper provided seed are occurring, Regular implementationmeetingsonlocalhiring soitisenforceable by the developer, Agency. disposition anddevelopment with the agreement Los Angeles Community Redevelopment Agency’s Appendix F.The CBA intothe was incorporated andare includedas inChapterFour, described The Living Wage provisions inthisCBA are tained intheCBA include: Benefitscon- negotiationsby LAANE. led during J 2001by thedeveloper andby the Valley October CBA fortheproject was signedin ment site.A mitment tocleanuptoxic wastes atthe develop- andbenefitted from acitycom- city-owned land, b olto,acoalitionofcommunity groups obs Coalition, ■ ■ ■ nando Valley.The project relied onthesaleof r from thedeveloper regarding envi- certain andcommitments of thedevelopment, a process forcommunity review ofdesign idling; truck trafficand limitations ontruck tracting policies. city worker retention andresponsible con- developer andcontractorcompliancewith onmentally friendly designcomponents; onmentally friendly source program. andisoftenlooked atasamodelfirst cessfully, thispolicyhasbeenimplementedvery suc- jobs; policycovering bothhotelandretaillocal hiring coalitionalsopressed foradetailed effort.The w 2,000 jobsatthedevelopment are eitherliving Halfofthe project ofHollywood. intheheart this high-profile hotelandretail redevelopment pressed of community forgreater benefitsaspart andclergy laborunions, zations andleaders, acoalitionofcommunity-based organi- In 1997, Hollywood &Highland: r CBA Ifandwhenitdoes, not moved forward yet. sotheproject has with theCityofLos Angeles, The developer ofitsdeal isstillnegotiatingterms equirements willbeinforce. g ruin asadirect result ofthisorganizing age orunion, ■ ■ ■ ■ ■ employers atthedevelopment. policycovering source all a first hiring meet thatgoal; to andspecifiedefforts development, a goalof70%living wage jobsatthe y 10,000 square feetofoutdoorspacefora 4,000 square feetofindoorspaceand programs inlocalschools; funding forarts neighborhood improvement fund; $150,000 from thedeveloper toward a outh center; Appendix C: Wall Street Journal’s Real Estate Journal Article About Staples CBA | 91

Real Estate Journal

eligious groups and two school districts.eligious groups and two of environmental, neighborhood, labor, social and r to includes measures The legally-binding accord and homes in the airport schools soundproof area, set up opportunities and resi- for businesses and air- to get aviation dents in the impacted area port-related work, study the impact of the airport's resi- operations on the health of nearby dents, airport and boost funding to reduce noise, World Angeles emissions and traffic.The Los Airports outlined in the will fund the measures agreement. In return, the coalition has promised its $11 billion plan to not to sue the city over upgrade the airport. and expand to negotiate rather in our best interest "It was Tabor, one of the lead Daniel says than litigate," negotiators of of the agreement and a resident Inglewood, Calif., one of the cities affected by operations at the airport. "The coalition gave for people who standing and a seat at the table been complaining about the nega- have for years Article on CBAs from Wall Street Journal’s Journal’s Street Wall Article from on CBAs Appendix C Appendix As expected,Angeles City Council yes- the Los the agreement struck between approved terday Airports, World the city depart- Angeles the Los Angeles and operates the Los ment that owns AirportInternational other airports and three in Southern California, and a 22-member coalition In the latest sign of the growing coordination In the latest sign of the growing having are they among social groups and the sway projects,on development Angeles the city of Los nearly $500 million to provide has agreed to pay bene- mitigation and jobs-related environmental to the neighborhoods affected by fits programs Angeles plans to upgrade expand the Los and International Airport. By SHEILA MUTO ------LAX Residents Have Their Say On Expansion Plans The Wall Street Journal’s Real Estate Journal Journal’s Street Wall The December 15, 2004 92 | Community Benefits Agreements: Making Development Projects Accountable r jobandenvi- transportation, affordable-housing, toaddress downtown intoabiotechnology hub, which isseekingtodevelop of anarea north of billionaire Paul VulcanAllen's company, Inc., negotiating withcityofficialsandrepresentatives apublic-interest coalitionis InSeattle, expand. Harlem area where theuniversity hasproposed to to helpcreate low-income housinginthe West b civic and In New agroupofneighborhood, York, Yo or public agenciesareers underway from New betweensuch agreements residents anddevelop- tohammerout Efforts development proceeding. file lawsuits orotherwisestandintheway ofthe gr inexchangeforpledgesfromare granted the concessionstypically effects.The gate itsharmful press forbenefitsfrom theproject andmiti- ect, have asay inshapingamajordevelopment proj- Economy toallow localresidents andgroupsto by conceptwas pioneered inLos ments.The Angeles n accord isthelatestinagrowing The airport plans,"hesays. airport-expansion andhavetive impactsoftheairport opposedpast eeomn ok nteae,andthey need to development works inthearea, how landuseandeconomic decisions are made, J waypate inaserious intheprocess," says Ms. tobeable topartici- and organizationsinformed residents "iskeeping communities, agreements, The key toworking outcommunity-benefit where we cameupwithit." advanced stageinLos Angeles becausethat's "It'satitsmost economic development," shesays. movement toreshape thenature oflanduseand "It'sarelatively new New Economy (LAANE). executive director ofLos Angeles Alliance fora according toMadelineJanis-Aparicio, in theU.S., areAt leastadozensuchagreements intheworks nsAaii."They how needto understand anis-Aparicio. onmental issues. usiness leaders areusiness leaders pressing ColumbiaUniversity umber ofso-calledcommunity-benefits agree- oups that are parties to the agreement notto totheagreement oups thatare parties rk toSeattle. the nonprofit Los Angeles Alliance foraNew affected areas. will gotosoundproofing homesinthe tle more than$43million over afive-year period lit- takingoff andlanding.A noise from airplanes boarded upclassroom windows tosuppress the mostofwhichhave simply soundproof schools, willreceivetricts $229 millionover 10years to Inglewood andLennox jobs.The school dis- port Residents willalsobegiven shotatair- thefirst jobs. plan foraviation- andairport-related upgrade-and-expansion affected by theairport of Inglewood andLennox andother communities lion over afive-year ontrainingresidents period the Los Angeles World tospend$15mil- Airports accord requires abatement andjobtraining.The accord willgotowardAngeles airport noise Most ofthe$500millionallocatedby theLos amongotherthings. for apark, andprovide $1million and $8.79withbenefits, w of thejobscreated by theproject pay aliving guaranteethat70% at jobscreated by theproject, togive localresidentsshot first Murdoch, Rupert a company owned by Philip Anschutz and withtheLos agreement Angeles Arena LandCo., tion groupsbandedtogether andnegotiatedan thecoali- Seeking arole intheexpansionplan, the StaplesCenterarena was built in1999. had beenleftoutoftheplanningprocess when many residents inthearea feltthey At thetime, Convention Center. housing andexpandtheLos Angeles restaurants, shops, ed planstodevelop two hotels, whichinclud- Center indowntown Los Angeles, four-million-square-foot expansionoftheStaples withthedeveloper$70 millionagreement ofa community groupsandfive unionsthatreached a thenonprofit was ofacoalition25 part 2001, In from abouthalfadozendevelopment projects. ing community-benefits stemming agreements LAANEhasbeeninvolved withnegotiat- So far, it'stoolate." shovels hittheground, Oncethe know abouttheseprojects inadvance. age of$10.04anhourwithouthealthbenefits Appendix C: Wall Street Journal’s Real Estate Journal Article About Staples CBA | 93 ednesdays exclusively on RealEstateJournal. exclusively ednesdays She is based -- Ms. Muto is a national real-estate writer for The Wall -- Ms.The Muto is a national real-estate writer for Street Journal. Her "Bricks & Mortar" column appears most W in the Journal's bureau. San Francisco "We feel very good about the agreement," good about says very feel "We Jim Ritchie, of long- director executive deputy Airports, World Angeles at the Los range planning on the with negotiations involved who was agreement. briefed was on the the FAA says He agreement, although received," "well was which no formal indication of whether it gave the FAA the agreement. says will approve were," we "Here Mr. Ritchie, of airport "a team personnel and with an coming together typical opponents approach, for litigation and rather than waiting the same groups appearing in court." uster with the Federal Aviation Administration, Aviation uster with the Federal ork-based nonprofit that is a member of the that is a member ork-based nonprofit since the city is seeking to use airport revenues to since the city is seeking to use airport revenues fund the measures. Los Angeles World Airports for these will pay World Angeles Los bonds, through measures reserves, and concessions parking revenues, passenger charges, airline land- ing fees and terminal rents, to an according agency spokesman.The still pass agreement must m "None of the organizations in the coalition are the organizations "None of Jerilyn agreement," this says from getting money López Mendoza, Los of the director policy Defense, of Environmental Angeles office a New Y coalition. to the directly is going "The money and job programs." mitigation programs 94 | Community Benefits Agreements: Making Development Projects Accountable signed a laying“Cooperation Agreement,” Oneand Chapters also parties Three.The anddiscussedindetail in May of2001, signedin fortheStaplesCBA, Program” F ollowing isthe “Community Benefits Appendix D Appendix E. on thedealisincludedas Times article however.A Los Angeles following CBA, community inthe benefitsare setforth all out technicallegalresponsibilities; Staples CBA ATTACHMENT A COMMUNITY BENEFITS PROGRAM

I. PURPOSE

The purpose of this Community Benefits Program for the Los Angeles Sports and Entertainment District Project is to provide for a coordinated effort between the Coalition and the Developer to maximize the benefits of the Project to the Figueroa Corridor community. This Community Benefits Program is agreed to by the Parties in connection with, and as a result of, the Cooperation Agreement to which it is attached. This Community Benefits Program will provide publicly accessible park space, open space, and recreational facilities; target employment opportunities to residents in the vicinity of the Figueroa Corridor; provide permanent affordable housing; provide basic services needed by the Figueroa Corridor community; and address issues of traffic, parking, and public safety.

II. DEFINITIONS

As used in this Community Benefits Program, the following capitalized terms shall have the following meanings. All definitions include both the singular and plural form. Any capitalized terms not specifically defined in this Attachment A shall have the meanings as set forth in the Settlement Agreement.

“Agency” shall mean the Community Redevelopment Agency of the City of Los Angeles.

“City” shall mean the City of Los Angeles.

“Coalition” shall have the meaning set forth in the Cooperation Agreement.

“Contractor” shall mean a prime contractor, a subcontractor, or any other business entering into a contract with the Developer related to the use, maintenance, or operation of the Project or part thereof. The term Contractor shall not include Tenants.

“Cooperation Agreement” shall mean the Cooperation Agreement entered into between the Developer and the Coalition on May 29, 2001.

“Developer” shall mean the corporations entitled the L.A. Arena Land Company and Flower Holdings, LLC.

“Needs Assessment” shall have the meaning set forth in Section III.C.1.

“Project” shall have the meaning set forth in the Cooperation Agreement.

“Tenant” shall mean a person or entity that conducts any portion of its operations within the Project, such as a tenant leasing commercial space within the Project, or an entity that has acquired a fee simple interest from the Developer for the purpose of developing a portion of the Project. “Tenant” does not include Contractors and agents of the Developer.

A-1 LA_DOCS\682924.9 [W97] 95 Tenant shall exclude any tenant of a residential dwelling unit, any guest or other client of any hotel and any governmental entity.

III. PARKS AND RECREATION

A. PURPOSE. The purpose of this Section is to help address the deficit of park space in the Figueroa Corridor community. The Figueroa Corridor contains less than a quarter of the park space acreage required by the City. The park construction efforts under this Section will help address this deficit, providing a measurable and lasting benefit to the Figueroa Corridor community.

B. QUIMBY FEES. Developer agrees to pay all fees required by the Los Angeles Municipal Code, Chapter I, Article 7, Section 17.12, “park and recreation site acquisition and development provisions,” subject to offsetting credits as allowed by that section and/or state law and approved by the city. The Coalition shall support Developer’s application for Quimby credit under this section, provided that Developer’s applications for credits are based on publicly accessible space and facilities.

C. PARKS AND OPEN SPACE NEEDS ASSESSMENT.

1. Needs Assessment. The Developer will fund an assessment of the need for parks, open space, and recreational facilities in the area bounded by the following streets: Beverly Boulevard and the 101 freeway (north boundary); Western Avenue (west boundary); Vernon Avenue (south boundary); and Alameda Street (east boundary). Developer will commence fulfillment of its responsibilities under this section III.C within 90 days after enactment by the Los Angeles City Council of a development agreement ordinance for the Project.

2. Funding. Developer will fund the Needs Assessment in an amount between $50,000 and $75,000, unless the Coalition consents to the Developer funding the Needs Assessment in an amount less than $50,000.

3. Selection of organization conducting needs assessment. The Needs Assessment will be conducted by a qualified organization agreed upon by both the Developer and the Coalition, and paid an amount consistent with Section III.C.2, above. The Developer and the Coalition may enlist other mutually agreed upon organizations to assist in conducting the Needs Assessment.

D. PARK AND RECREATION FACILITY CREATION BY DEVELOPER.

1. Park and recreation facility creation. Following the completion of the needs assessment, the Developer shall fund or cause to be privately funded at least one million dollars ($1,000,000) for the creation or improvement of one or more parks and recreation facilities, including but not limited to land acquisition, park design, and construction, within a one-mile radius of the Project, in a manner consistent with the results of the Needs Assessment. By mutual agreement of the Coalition and the Developer, this one-mile radius may be increased. Each park or recreation facility created pursuant to this agreement shall be open to the public and free of charge. Developer shall have no responsibility for operation or A-2 LA_DOCS\682924.9 [W97] 96 maintenance of any park and recreation facility created or improved pursuant to this agreement. Developer after consultation with the Coalition shall select the location of park and recreation facilities to be created or improved. Park and recreation facilities shall be created or improved in a manner such that a responsible entity shall own, operate, and maintain such facilities. Each park created or improved pursuant to this agreement shall include active recreation components such as playgrounds and playing fields, and shall also include permanent improvements and features recommended by the Needs Assessment, such as restroom facilities, drinking fountains, park benches, patio structures, barbecue facilities, and picnic tables. Recreation facilities created pursuant to this Section should to the extent appropriate provide opportunities for physical recreation appropriate for all ages and physical ability levels.

2. Timeline. The park and recreation facilities created or improved pursuant to this agreement shall be completed within five years of completion of the Needs Assessment. At least $800,000 of the funds described in Section III.D.1, above, shall be spent within four years of completion of the Needs Assessment.

E. OPEN SPACE COMPONENTS OF DEVELOPMENT.

1. Street-level plaza. The Project will include a street-level plaza of approximately one-acre in size and open to the public.

2. Other public spaces. The Project will include several publicly-accessible open spaces, such as plazas, paseos, walkways, terraces, and lawns.

IV. COMMUNITY PROTECTION

A. PARKING PROGRAM. The Developer shall assist the Coalition with the establishment of a residential permit parking program as set forth below.

1. Permit Area. The area initially designated as part of the Parking Program is generally bounded by James Wood Drive on the north, Byram and Georgia Streets on the west, Olympic Boulevard on the south and Francisco on the east. The permit area may be adjusted from time to time by mutual agreement of the Developer and the Coalition or upon action by the City determining the actual boundaries of a residential parking district in the vicinity of the Project.

2. Developer Support. The Developer shall support the Coalition’s efforts to establish the parking program in the permit area by requesting the City to establish a residential permit parking district through a letter to City Council members and City staff, testimony before the City Council or appropriate Boards of Commissioners, and through technical assistance which reasonably may be provided by Developer’s consultants.

To defray the parking program’s costs to residents of the permit area, the Developer shall provide funding of up to $25,000 per year for five years toward the cost of developing and implementing the parking program within the permit area. Such funding shall be provided to the City. A-3 LA_DOCS\682924.9 [W97] 97 3. Limitations. The Coalition understands, acknowledges and hereby agrees that the City’s determination of whether to establish a residential permit parking district and the boundaries thereof are within the City’s sole discretion. The Developer is not liable for any action or inaction on the part of the City as to establishment of a residential permit parking district or for the boundaries thereof. The Coalition understands, acknowledges and hereby agrees that the total annual aggregate cost of a residential permit parking district may exceed $25,000 per year and that in such event, the Developer shall have no liability for any amounts in excess of $25,000 per year for five years.

B. TRAFFIC. The Developer in consultation with the Coalition shall establish a traffic liaison to assist the Figueroa Corridor community with traffic issues related to the Project.

C. SECURITY. The Developer shall encourage the South Park Western Gateway Business Improvement District to address issues of trash disposal and community safety in the residential areas surrounding the Project. The Developer shall request the BID to provide additional trash receptacles in the vicinity of the Project, including receptacles located in nearby residential areas.

V. LIVING WAGE PROGRAM

A. DEVELOPER RESPONSIBILITIES REGARDING LIVING WAGES.

1. Compliance With Living Wage Ordinance. The Developer, Tenants, and Contractors shall comply with the City's Living Wage Ordinance, set forth in the Los Angeles Administrative Code, Section 10.37, to the extent such ordinance is applicable.

2. Seventy Percent Living Wage Goal. The Developer shall make all reasonable efforts to maximize the number of living wage jobs in the Project. The Developer and the Coalition agree to a Living Wage Goal of maintaining 70% of the jobs in the Project as living wage jobs. The Developer and the Coalition agree that this is a reasonable goal in light of all of the circumstances. Achievement of the Living Wage Goal shall be measured five years and ten years from the date of this Agreement. In the event that actual performance is less than 80% of the goal for two consecutive years, Developer shall meet and confer with the Coalition at the end of such two year period to determine mutually agreeable additional steps which can and will be taken to meet the Living Wage Goal.

3. Achievement of Living Wage Goal. For purposes of determining the percentage of living wage jobs in the Project, the following jobs shall be considered living wage jobs:

x jobs covered by the City’s Living Wage Ordinance;

x jobs for which the employee is paid on a salaried basis at least $16,057.60 per year if the employee is provided with

A-4 LA_DOCS\682924.9 [W97] 98 employer-sponsored health insurance, or $18.657.60 per year otherwise (these amounts will be adjusted in concert with cost-of-living adjustments to wages required under the City’s Living Wage Ordinance);

x jobs for which the employee is paid at least $7.72 per hour if the worker is provided with employer-sponsored health insurance, or $8.97 per hour otherwise (these amounts will be adjusted in concert with cost-of-living adjustments to wages required under the City’s Living Wage Ordinance); and

x jobs covered by a collective bargaining agreement.

The percentage of living wage jobs in the Project will be calculated as the number of on-site jobs falling into any of the above four categories, divided by the total number of on-site jobs. The resulting number will be compared to the Living Wage Goal to determine whether the Living Wage Goal has been achieved.

4. Developer Compliance If Goal Not Met. Whether or not the Living Wage Goal is being met at the five- and ten-year points, the Developer shall be considered to be in compliance with this Section if it is in compliance with the remaining provisions of this Section.

5. Reporting Requirements. The Developer will provide an annual report to the City Council's Community and Economic Development Committee on the percentage of jobs in the Project that are living wage jobs. The report will contain project-wide data as well as data regarding each employer in the Project. Data regarding particular employers will not include precise salaries; rather, such data will only include the number of jobs and the percentage of these jobs that are living wage jobs, as defined in Section V.A.3, above. If the report indicates that the Living Wage Goal is not being met, the Developer will include as part of the report a discussion of the reasons why that is the case. In compiling this report, Developer shall be entitled to rely on information provided by Tenants and Contractors, without responsibility to perform independent investigation. This report shall be filed for any given year or partial year by April 30th of the succeeding year.

6. Selection of Tenants.

a. Developer Notifies Coalition Before Selecting Tenants. At least 45 days before signing any lease agreement or other contract for space within the Project, the Developer shall notify the Coalition that the Developer is considering entering into such lease or contract, shall notify the Coalition of the identity of the prospective Tenant, and shall, if the Coalition so requests, meet with the Coalition regarding the prospective Tenant’s impact on the 70% living wage goal. If exigent circumstances so A-5 LA_DOCS\682924.9 [W97] 99 require, notice may be given less than 45 days prior to signing such a lease agreement or other contract; however, in such cases the Developer shall at the earliest possible date give the Coalition notice of the identity of the prospective Tenant, and, if the Coalition requests a meeting, the meeting shall occur on the earliest possible date and shall in any event occur prior to the signing of the lease agreement or other contract.

b. Coalition Meeting with Prospective Tenants. At least 30 days before signing a lease agreement or other contract for space within the Proposed Development, the Developer will arrange and attend a meeting between the Coalition and the prospective Tenant, if the Coalition so requests. At such a meeting, the Coalition and the Developer will discuss with the prospective Tenant the Living Wage Incentive Program and the Health Insurance Trust Fund, and will assist the Coalition in encouraging participation in these programs. If exigent circumstances so require, such a meeting may occur less than 30 days prior to the signing of a lease agreement; however, in such cases the meeting shall be scheduled to occur on the earliest possible date and shall in any event occur prior to the signing of the lease agreement or other contract. The Developer will not enter into a lease agreement with any prospective Tenant that has not offered to meet with the Coalition and the Developer regarding these issues prior to signing of the lease.

c. Consideration of Impact on Living Wage Goal. When choosing between prospective Tenants for a particular space within the Project, the Developer will, within commercially reasonable limits, take into account as a substantial factor each prospective Tenant’s potential impact on achievement of the Living Wage Goal.

d. Tenants Agree to Reporting Requirements. Tenants are not required to participate in the Living Wage Incentive Program or the Health Insurance Trust Fund. However, all Tenants in the Project shall make annual reports as set forth in Section V.B.3, below. The Developer will include these reporting requirements as a material term of all lease agreements or other contracts for space within the Project.

B. TENANTS’ OPPORTUNITIES AND RESPONSIBILITIES.

1. Living Wage Incentive Program. All Tenants will be offered the opportunity to participate in a Living Wage Incentive Program. Tenants are not required to participate in this program, but may choose to participate. Under the Living Wage Incentive Program, Tenants providing living wage jobs may receive various benefits of substantial economic value. The Coalition, the Developer, and the City will collaborate to structure a set of incentives, at no cost to the Developer, to assist the Project in meeting the Living Wage Goal. The Living Wage Incentive Program shall be described in a simple and accessible written format suitable for presentation to prospective Tenants. The Coalition, working collaboratively with the Developer, shall seek funding from governmental and A-6 LA_DOCS\682924.9 [W97] 100 private sources to support the incentives and benefits provided in the Living Wage Incentive Program.

2. Health Insurance Trust Fund. All Tenants will be offered the opportunity to participate in the Health Insurance Trust Fund. Tenants are not required to participate in this program, but may choose to participate. The Health Insurance Trust Fund, still being established by the City, will provide Tenants with a low-cost method of providing employees with basic health insurance.

3. Reporting Requirements. Each Tenant in the Project must annually report to the Developer its number of on-site jobs, the percentage of these jobs that are living wage jobs, and the percentage of these jobs for which employees are provided health insurance by the Tenant. Tenants need not include precise salaries in such reports; rather, with regard to wages, Tenants need only include the number of jobs and the percentage of these jobs that are living wage jobs, as defined in Section V.A.3, above. Such reports shall be filed for any given year or partial year by January 31st of the succeeding year.

C. TERM. All provisions and requirements of this Section shall terminate and become ineffective for each Tenant ten years from the date of that Tenant’s first annual report submitted pursuant to Section V.B.3, above.

VI. LOCAL HIRING AND JOB TRAINING

A. PURPOSE. The purpose of this Section is to facilitate the customized training and employment of targeted job applicants in the Project. Targeted job applicants include, among others, individuals whose residence or place of employment has been displaced by the STAPLES Center project, low-income individuals living within a three- mile radius of the Project, and individuals living in low-income areas throughout the City. This Section (1) establishes a mechanism whereby targeted job applicants will receive job training in the precise skills requested by employers in the Project, and (2) establishes a non-exclusive system for referral of targeted job applicants to employers in the Project as jobs become available.

B. CUSTOMIZED JOB TRAINING PROGRAM. The First Source Referral System, described below, will coordinate job training programs with appropriate community-based job training organizations. Prior to hiring for living wage jobs within the Project, employers may request specialized job training for applicants they intend to hire, tailored to the employers’ particular needs, by contacting the First Source Referral System. The First Source Referral System will then work with appropriate community- based job training organizations to ensure that these applicants are provided with the requested training.

C. FIRST SOURCE HIRING POLICY. Through the First Source Hiring Policy, attached hereto as attachment No. 1, qualified individuals who are targeted for employment opportunities as set forth in Section IV.D of the First Source Hiring Policy will have the opportunity to interview for job openings in the Project. The Developer, Contractors, and Tenants shall participate in the First Source Hiring Policy, attached

A-7 LA_DOCS\682924.9 [W97] 101 hereto as Attachment No. 1. Under the First Source Hiring Policy, the First Source Referral System will promptly refer qualified, trained applicants to employers for available jobs. The Developer, Contractors, and Tenants shall have no responsibility to provide notice of job openings to the First Source Referral System if the First Source Referral System is not fulfilling its obligations under the First Source Hiring Policy. The terms of the First Source Hiring Policy shall be part of any deed, lease, or contract with any prospective Tenant or Contractor.

D. FIRST SOURCE REFERRAL SYSTEM. The First Source Referral System, to be established through a joint effort of the Developer and the Coalition, will work with employers and with appropriate community-based job training organizations to provide the referrals described in this Section. The Coalition and the Developer will select a mutually agreeable nonprofit organization to staff and operate the First Source Referral System, as described in the First Source Hiring Policy. The Developer will provide $100,000 in seed funding to this organization. The Developer will meet and confer with the Coalition regarding the possibility of providing space on site for the First Source Referral System, for the convenience of Tenants and job applicants; provided, however, the Developer may in its sole and absolute discretion determine whether or on what terms it would be willing to provide space for the First Source Referral System. If the First Source Referral System becomes defunct, Employers shall have no responsibility to contact it with regard to job opportunities.

VII. SERVICE WORKER RETENTION

A. SERVICE CONTRACTOR WORKER RETENTION. The Developer and its Contractors shall follow the City's Worker Retention Policy as set forth in the Los Angeles Administrative Code, Section 10.36. The City’s Worker Retention Policy does not cover individuals who are managerial or supervisory employees, or who are required to possess an occupational license.

B. WORKER RETENTION FOR HOTEL AND THEATER EMPLOYEES. The Developer agrees that Tenants in hotel and theater components of the Project will follow the City's Worker Retention Policy with regard to all employees, and will require contractors to do the same. The Developer will include these requirements as material terms of all lease agreements or other contracts regarding hotel and/or theater components of the Project.

C. INCLUSION IN CONTRACTS. The Developer shall include the requirements of this section as material terms of all contracts with Contractors and with Tenants in hotel and theater components of the Project, with a statement that such inclusion is for the benefit of the Coalition.

VIII. RESPONSIBLE CONTRACTING

A. DEVELOPER SELECTION OF CONTRACTORS. The Developer agrees not to retain as a Contractor any business that has been declared not to be a responsible contractor under the City’s Contractor Responsibility Program (Los Angeles Administrative Code, Section 10.40.)

A-8 LA_DOCS\682924.9 [W97] 102 B. DEVELOPER SELECTION OF TENANTS. The Developer agrees that before entering into or renewing a lease agreement regarding any space over fifteen thousand (15,000) square feet, the Developer shall obtain from any prospective Tenant a written account of whether the prospective Tenant has within the past three years been found by a court, an arbitrator, or an administrative agency to be in violation of labor relations, workplace safety, employment discrimination, or other workplace-related laws. When choosing between prospective Tenants for a particular space within the Project, the Developer will, within commercially reasonable limits, take into account as a substantial factor weighing against a prospective Tenant any findings of violations of workplace- related laws. In complying with this Section, the Developer shall be entitled to rely on information provided by Tenants, without responsibility to perform independent investigation.

C. REPORTING REQUIREMENTS. The Developer will provide an annual report to the Coalition and to the City Council's Community and Economic Development Committee on the percentage of new lease agreements or other contracts regarding use of space within the Project that were entered into with entities reporting violations of workplace-related laws. In compiling this report, Developer shall be entitled to rely on information provided by Tenants and Contractors, without responsibility to perform independent investigation. The report may aggregate information from various End Users, so as not to identify any particular Tenant. This report shall be filed for any given year or partial year by April 30th of the succeeding year, and may be combined with the report regarding living wages, required to be filed by Section V.B.3.

IX. AFFORDABLE HOUSING

A. PURPOSE. Developer has included between 500 and 800 housing units as part of the Project. The goal is create an “inclusionary” development; i.e. the project will include an affordable housing component (the “Affordable Housing Program”) as set forth in this Section.

B. DEVELOPER AFFORDABLE HOUSING PROGRAM. This Developer Affordable Housing Program exceeds requirements of state law and the Agency. To further its connection to the surrounding neighborhoods, the Developer proposes to work with community-based housing developers to implement much of the plan.

1. Percentage Affordable Units. The Developer shall develop or cause to be developed affordable housing equal to 20% of the units constructed within the Project, as may be adjusted under Section IX.D., below, through joint efforts with community-based organizations to create additional affordable units as provided in Section IX.C, below. The Developer intends to include between 500 and 800 units in the Project; therefore, the Developer’s affordable housing commitment would be between 100 and 160 units, as may be adjusted under Section IX.D below.

A-9 LA_DOCS\682924.9 [W97] 103 2. Income Targeting The distribution of affordable units shall be as follows:

a. 30% affordable to families earning zero to 50% of Area Median Income (“AMI”);

b. 35% affordable to families earning 51% to 60% of AMI;

c. 35% affordable to families earning 61% to 80% of AMI.

3. Term of Affordability. Affordable units will remain affordable for a minimum of 30 years.

4. Location. Affordable units may be built within the Project or off-site. Units built off site will be located in redevelopment areas within a three-mile radius from the intersection of 11th and Figueroa Streets. To the extent the Agency provides direct financial assistance in the creation of affordable units, 50% of the affordable units shall be constructed within the Project if required by the Agency.

5. Unit and Project Type. Given the high density of the proposed on-site high-rise housing, any inclusionary units within the Project will be two-bedroom units. Three- and four-bedroom units may be developed at offsite locations that are more appropriate to accommodate larger units and families. In connection with any off-site affordable units, Developer shall give priority consideration to creation of projects suitable for families in terms of unit size, location, and proximity to family-serving uses and services.

6. Relocated Persons. To the extent allowed by law, priority shall be given to selecting persons relocated in connection with the development of the STAPLES Center to be tenants in any affordable units created under this Section IX. Notice of availability of affordable units shall be given to such relocated persons as set forth in Section X.D.

7. Public Participation and Assistance. Nothing herein shall limit the right of the Developer to seek or obtain funding or assistance from any federal, state or local governmental entity or any non-profit organization in connection with the creation or rehabilitation of affordable units.

C. COOPERATIVE DEVELOPMENT WITH COMMUNITY BASED ORGANIZATIONS

1. Purpose. In addition to development of affordable housing on-site or off- site, Developer shall work cooperatively with community based organizations to in an effort to provide additional affordable housing units. The goal of this program is to identify affordable housing infill development opportunities within a 1.5-mile radius of Figueroa and 11th Street and to affiliate with well-established non-profit affordable housing development corporations in the area.

A-10 LA_DOCS\682924.9 [W97] 104 2. Interest Free Loans. As “seed money” for affordable housing development, within 2 years after receiving final entitlement approvals for the Project, Developer will provide interest-free loans in the aggregate amount not to exceed $650,000 to one or more non-profit housing developers that are active in the Figueroa Corridor area and are identified in the Section VI.D.3, below, or are mutually agreed upon by the Developer and the Coalition. Repayment of principal repayment shall be due in full within three (3) years from the date the loan is made. Provided that the loan or loans have been timely repaid, such repaid amounts may be loaned again to one or more non-profit housing developers; however, it is understood that all loans will be repaid within six (6) years from the date the first loan was made. In addition, the loans shall be on such other commercially reasonable terms consistent with the purposes of this Section IX.C.

3. Prequalified Non-Profit Development Corporations. The following non-profit community based organizations are eligible to seek to participate in this cooperative program:

a. Esperanza Development Corporation - Sister Diane Donoghue

b. 1010 Hope Development Corporation - DarEll Weist

c. Pueblo Development Corporation- Carmela Lacayo

d. Pico Union Development Corporation - Gloria Farias

4. Use of Program Funds. The interest free loans may be used by the selected organizations for the following purposes:

a. Land acquisition/option/due diligence.

b. To focus on existing buildings to substantially rehabilitate or to acquire small infill sites capable of supporting approximately 40 or more units.

c. Entitlement and design feasibility studies.

d. Financial analysis and predevelopment studies.

e. Funding applications and initial legal expenses.

f. Other expenses reasonably approved by Developer to secure full funding agreements

5. Project Selection Process

a. Within 90 days following Project approvals, Developer will meet and confer with principals of each non-profit listed in Section IX.C.3, above to gain a comprehensive understanding of the capabilities and capacity of each organization and ability to obtain financing support. A-11 LA_DOCS\682924.9 [W97] 105 b. Within 6 months following Project approvals, Developer will request proposals from each non-profit organization, which may include one or more prospective sites and use best efforts to identify one or more projects to pursue.

c. Developer shall consult with and seek the input of the Coalition in the selection of the nonprofit housing developer or developers. Developer shall enter into a loan agreement with any selected nonprofit housing developer to provide the interest free loan as set forth in this Section IX.C.

D. ADJUSTMENTS TO AFFORDABLE HOUSING UNITS. The assistance provided by Developer under Section IX.C may result in production of affordable units substantially in excess of 20%. Further, the Coalition has a goal of at least 25% affordable units. Therefore, for every two units of affordable housing (including both rehabilitation or new construction) created by the non-profit developer or developers with the assistance of Developer under Section IX.C in excess of 25%, Developer shall receive a credit of one unit toward Developer’s obligation to create affordable housing units; provided, however, that Developer’s overall obligation for affordable housing units shall not be less than 15% due to any such reduction.

In the event that no affordable units are created under the cooperative program established in Section IX.C, above, through no fault of the Developer and the Developer is unable to recoup all or a portion of the loan or loans, the Developer’s obligation to create affordable units shall be reduced by one unit for each $10,000 of unrecouped loans; provided, however that Developer’s overall obligation for affordable housing units shall not be less than 15% of the housing due to any such reduction.

X. RELOCATED FAMILIES

A. PURPOSE. The purpose of this Section is to address problems that may be faced by families that were relocated by the Agency in connection with the development of the STAPLES Center. Many such families can no longer afford their current housing due to the expiration of the relocation assistance provided by the Agency.

B. MEET AND CONFER. The Developer agrees to meet and confer with the Coalition, City Councilmembers, Agency board and staff, and other City staff in effort to seek and obtain permanent affordable housing for families relocated in connection with the development of the STAPLES Center. Meetings with the Coalition shall be held quarterly, or less frequently if mutually agreed by the Coalition and the Developer. Meetings with City Councilmembers, Agency board and staff, and other City staff will be held as necessary. The Developer’s responsibilities under this section will terminate five years from the effective date of the Cooperation Agreement.

C. ASSISTANCE. The Developer will generally assist the Coalition to seek and obtain permanent affordable housing for relocated families. Developer will speak in favor of such efforts at least two appropriate public meetings and hearings when requested to do so by the Coalition. The Developer will use commercially reasonable efforts to provide technical assistance to the Coalition.

A-12 LA_DOCS\682924.9 [W97] 106 D. NOTICE OF AVAILABILITY. For a period of three years, Developer shall use good faith efforts to cause the Agency to give, to the fullest extent allowed by law, 30 days notice of availability of affordable units created by the Project to persons relocated in connection with construction of STAPLES Center and to provide such relocated persons the first opportunity to apply as potential tenants. Persons eligible for such notice shall be relocated persons who are not tenants in a permanent affordable housing project and who otherwise meet income and other requirements for affordable housing.

E. TIMING. Permanent affordable housing for relocated families is an urgent matter and, therefore, time is of the essence. Consequently, Developer’s obligations under this Section X, shall begin within five days following execution of the Settlement Agreement.

XI. COALITION ADVISORY COMMITTEE

To assist with implementation of this Community Benefits Program, address environmental concerns and facilitate an ongoing dialogue between the Coalition and the Developer, the Coalition and the Developer shall establish a working group of representatives of the Coalition and the Developer, known as the Advisory Committee. This Advisory Committee shall meet quarterly, unless it is mutually agreed that less frequent meetings are appropriate. Among other issues, the Developer shall seek the input of the Advisory Committee in the Developer’s preparation of the construction management plan, the traffic management plan, the waste management plan and the neighborhood traffic protection plan. In addition, the Developer shall seek the input of the Advisory Committee in a effort to develop and implement potential solutions to other environmental concerns, including without limitation, pedestrian safety, air quality and green building principles.

XII. GENERAL PROVISIONS

A. SEVERABILITY CLAUSE. If any term, provision, covenant, or condition of this Community Benefits Program is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall continue in full force and effect.

B. Material Terms. All provisions and attachments of this Community Benefits Program are material terms of this Community Benefits Program.

A-13 LA_DOCS\682924.9 [W97] 107

Attachment 1

FIRST SOURCE HIRING POLICY

SECTION I. PURPOSE.

The purpose of this First Source Hiring Policy is to facilitate the employment of targeted job applicants by employers in the Los Angeles Sports and Entertainment District. It is a goal of this First Source Hiring Policy that the First Source Referral System contemplated herein will benefit employers in the project by providing a pool of qualified job applicants whose job training has been specifically tailored to the needs of employers in the project through a non- exclusive referral system.

SECTION II. DEFINITIONS.

As used in this policy, the following capitalized terms shall have the following meanings. All definitions include both the singular and plural form.

“City” shall mean the City of Los Angeles and any of its departments and/or agencies.

“Developer” shall mean the L.A. Arena Land Company and Flower Holdings, LLC. and their Transferees.

“Project” shall mean the Los Angeles Sports and Entertainment District.

“Employer” shall mean a business or nonprofit corporation that conducts any portion of its operations within the Project; provided, however, this First Source Hiring Policy shall only apply to any such portion of operations within the Project.. Employer includes but is not limited to lessees, landowners, and businesses performing contracts on location at the Project. All “Employers” are “Covered Entities,” as defined above.

“First Source Referral System” shall mean the system developed and operated to implement this First Source Hiring Policy, and the nonprofit organization operating it.

“Low-Income Individual” shall mean an individual whose household income is no greater than 80% of the median income for the Standard Metropolitan Statistical Area.

“Targeted Job Applicants” shall mean job applicants described in Section IV.D, below.

“Transferee” shall mean a person or entity that acquires a fee simple interest or a ground lease from the Developer for the purpose of developing all or any portion of the Proposed Development.

A-14 LA_DOCS\682924.9 [W97] 108 SECTION III. EMPLOYER RESPONSIBILITIES

A. Coverage. This First Source Hiring Policy shall apply to hiring by Employers for all jobs for which the work site is located within the Project, except for jobs for which hiring procedures are governed by a collective bargaining agreement which conflicts with this First Source Hiring Policy.

B. Long-Range Planning. Within a reasonable time after the information is available following execution by of a lease by Developer and Employer for space within the Project, the Employer shall provide to the First Source Referral System regarding the approximate number and type of jobs that will need to be filled and the basic qualifications necessary.

C. Hiring process.

(1) Notification of job opportunities. Prior to hiring for any job for which the job site will be in the Project, the Employer will notify the First Source Referral System of available job openings and provide a description of job responsibilities and qualifications, including expectations, salary, work schedule, duration of employment, required standard of appearance, and any special requirements (e.g. language skills, drivers’ license, etc.). Job qualifications shall be limited to skills directly related to performance of job duties, in the reasonable discretion of the Employer.

(2) Referrals. The First Source Referral System will, as quickly as possible, refer to the Employer Targeted Job Applicants who meet the Employer’s qualifications. The First Source Referral System will also, as quickly as possible, provide to the Employer an estimate of the number of qualified applicants it will refer.

(3) Hiring. The Employer may at all times consider applicants referred or recruited through any source. When making initial hires for the commencement of the Employer’s operations in the Project, the Employer will hire only Targeted Job Applicants for a three-week period following the notification of job opportunities described in subparagraph III.C.1, above. When making hires after the commencement of operations in the Project, the Employer will hire only Targeted Job Applicants for a five-day period following the notification of job opportunities. During such periods Employers may hire Targeted Job Applicants recruited or referred through any source. During such periods Employers will use normal hiring practices, including interviews, to consider all applicants referred by the First Source Referral System. After such periods Employers shall make good-faith efforts to hire Targeted Job Applicants, but may hire any applicant recruited or referred through any source.

E. Goal. Any Employer who has filled more than 50% of jobs available either during a particular six-month period with Targeted Job Applicants (whether referred by the First Source Referral System or not), shall be deemed to be in compliance with this First Source Hiring Policy for all hiring during that six-month period. Any Employer who has complied with remaining provisions of this First Source Hiring Policy is in compliance with this First Source Hiring Policy even it has not met this 50% goal during a particular six-month period.

A-15 LA_DOCS\682924.9 [W97] 109 F. No Referral Fees. Employers shall not be required to pay any fee, cost or expense of the First Source Referral System or any potential employees referred to the Employer by the First Source Referral System in connection with such referral.

SECTION IV. RESPONSIBILITIES OF FIRST SOURCE REFERRAL SYSTEM.

The First Source Referral System will perform the following functions related to this First Source Hiring Policy:

A. Receive Employer notification of job openings, immediately initiate recruitment and pre-screening activities, and provide an estimate to Employers of the number of qualified applicants it is likely to refer, as described above.

B. Recruit Targeted Job Applicants to create a pool of applicants for jobs who match Employer job specifications.

C. Coordinate with various job-training centers.

D. Screen and refer Targeted Job Applicants according to qualifications and specific selection criteria submitted by Employers. Targeted Job Applicants shall be referred in the following order:

(1) First Priority: individuals whose residence or place of employment has been displaced by the STAPLES Center project or by the initial construction of the project and Low-Income Individuals living within a one-half-mile radius of the Project.

(2) Second Priority: Low-Income Individuals living within a three-mile radius of the Project.

(3) Third Priority: Low-Income Individuals living in census tracts or zip codes throughout the City for which more than 80% of the households, household income is no greater than 80% of the median household income for the Standard Metropolitan Statistical Area.

E. Maintain contact with Employers with respect to Employers’ hiring decisions regarding applicants referred by the First Source Referral System.

F. Assist Employers with reporting responsibilities as set forth in Section V of this First Source Hiring Policy, below, including but not limited to supplying reporting forms and recognizing Targeted Job Applicants.

G. Prepare and submit compliance reports to the City as set forth in Section V of this First Source Hiring Policy, below.

A-16 LA_DOCS\682924.9 [W97] 110 SECTION V. REPORTING REQUIREMENTS.

A. Reporting Requirements and Recordkeeping.

(1) Reports. During the time that this First Source Hiring Policy is applicable to any Employer, that Employer shall, on a quarterly basis, notify the First Source Referral System of the number, by job classification, of Targeted Job Applicants hired by the Employer during that, quarter and the total number of employees hired by the Employer during that quarter. The First Source Referral System shall submit annual aggregate reports for all Employers to the City, with a copy to the Coalition, detailing the employment of Targeted Job Applicants in the Project.

(2) Recordkeeping. During the time that this First Source Hiring Policy is applicable to any Employer, that Employer shall retain records sufficient to report compliance with this First Source Hiring Policy, including records of referrals from the First Source Referral System, job applications, and number of Targeted Job Applicants hired. To the extent allowed by law, and upon reasonable notice, these records shall be made available to the City for inspection upon request. Records may be redacted so that individuals are not identified by name and so that other confidential information is excluded.

(3) Failure to Meet Goal. In the event an Employer has not met the 50% goal during a particular six-month period, the City may require the Employer to provide reasons it has not met the goal and the City may determine whether the Employer has nonetheless adhered to this Policy.

SECTION VI. GENERAL PROVISIONS.

A. Term. This First Source Hiring Policy shall be effective with regard to any particular Employer until five years from the date that Employer commenced operations within the Project.

B. Meet & Confer, Enforcement. If the Coalition, the First Source Referral System, or the City believes that an Employer is not complying with this First Source Hiring Policy, then the Coalition, the First Source Referral System, the City, and the Employer shall meet and confer in a good faith attempt to resolve the issue. If the issue is not resolved through the meet and confer process within a reasonable period of time, the City may enforce the First Source Hiring Policy against the Developer as a term of any agreement between the City and the Developer into which the First Source Hiring Policy has been incorporated.

B. Miscellaneous.

(1) Compliance with State and Federal Law. This First Source Hiring Policy shall only be enforced to the extent that it is consistent with the laws of the State of California and the United States. If any provision of this First Source Hiring Policy is held by a court of law to be in conflict with state or federal law, the applicable law shall prevail over the terms of this First Source Hiring Policy, and the conflicting provisions of this First Source Hiring Policy shall not be enforceable. A-17 LA_DOCS\682924.9 [W97] 111 (2) Indemnification. The First Source Referral System shall, jointly and severally, indemnify, hold harmless and defend the Developer and any Employer, and their officers, directors, partners, agents, employees and funding sources, if required by any such funding source (the "Indemnified Parties") from and against all fines, suits, liabilities, proceedings, claims, costs, damages, losses and expenses, including, but not limited, to attorney's fees and court costs, demands, actions, or causes of action, of any kind and of whatsoever nature, whether in contract or in tort, arising from, growing out of, or in any way related to the breach by the First Source Referral System or their affiliates, officers, directors, partners, agents, employees, subcontractors (the “First Source Parties”) of the terms and provisions of this First Source Hiring Policy or the negligence, fraud or willful misconduct of First Source Parties. The indemnification obligations of the First Source Parties shall survive the termination or expiration of this First Source Hiring Policy, with respect to any claims arising as the result of events occurring during the effective term of this First Source Hiring Policy .

(3) Compliance with Court Order. Notwithstanding the provisions of this Policy, the Developer, Employers, Contractors, or Subcontractors shall be deemed to be in compliance with this First Source Hiring Policy if subject to by a court or administrative order or decree, arising from a labor relations dispute, which governs the hiring of workers and contains provisions which conflict with terms of this Policy.

(4) Severability Clause. If any term, provision, covenant, or condition of this First Source Hiring Policy is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall continue in full force and effect.

(5) Binding on Successors. This First Source Hiring Policy shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest, and assigns of each of the parties. Any reference in this Policy to a specifically named party shall be deemed to apply to any successor in interest, heir, administrator, executor, or assign of such party.

(6) Material Terms. The provisions of this First Source Hiring Policy are material terms of any deed, lease, or contract in which it is included.

(7) Coverage. All entities entering into a deed, lease, or contract relating to the rental, sale, lease, use, maintenance, or operation of the Project or part thereof shall be covered by the First Source Hiring Policy, through the incorporation of this First Source Hiring Policy into the deed, lease, or contract. Substantive provisions set forth in Section III. “Employer Responsibilities,” apply only to jobs for which the work site is located within the Project.

A-18 LA_DOCS\682924.9 [W97] 112 Appendix E: Los Angeles Times Article About Staples CBA | 113

usicals, enter- other live and shows award cessions demanded by community groups, community cessions demanded by and labor. environmentalists Philip billionaire The developers--including RupertAnschutz and media mogul locally, to hire Murdoch--agreed provide hous- affordable jobs" and build wage "living parks.Theing and new deal is scheduled to after months of confi- be announced today dential negotiations. is seen as vital to The billion-dollar project Angeles. Los of downtown the revitalization as the L.A.Known Sports and Entertainment District, a 45-story by anchored be it would at Olympic hotel with at least 1,200 rooms and Georgia Street.TheBoulevard project include a 7,000-seat theater for also would m tainment. Restaurants, nightclubs and retail a plaza. around be built would stores

Los Angeles Times Article About Los Angeles Staples CBA Appendix E Appendix age:A-1 Ending the threat of widespread opposition, of widespread Ending the threat of a major hotel and enter- the developers Staples Center have tainment center around package of con- agreed to an unprecedented By: LEE ROMNEY WRITER TIMES STAFF Deal:The entertainment and sports proposed district could become a model for urban partnerships. Community, Developers Agree on Developers Agree Community, Staples Plan ------Los Angeles Times Los Angeles Thursday, 31, May 2001 Home Edition Section: A Part P 114 | Community Benefits Agreements: Making Development Projects Accountable are] alltogether employment andopen-space provisions ing, "What'sunusual here isthat[hous- projects. public benefitsofeconomicdevelopment thattracksthe anationalclearinghouse First, director ofthe Washington-based GoodJobs comprehensive asthis,"said Greg LeRoy, "I've never heard that'sas ofanagreement lic subsidiesare involved. whenheftypub- particularly similar projects, for hopeful thatitwillserve asablueprint are Unionandneighborhood leaders experts. to economicandcommunity development according intoaccount, community concerns nationwide totake suchabroad of array isbelieved ofitskind tobethefirst ment, ofthedevelopmentwill becomepart agree- which unionsandresidents, activist groups, The dealbrokered withthecoalitionof smaller hotel. with atotalof800unitsandsecond aswell astwo towers apartment in theplan, cent Los Angeles Convention Centeralsois A 250,000-square-foot expansionoftheadja- ihta becausethoseare thepeople . . with that. "I thinktheCityCouncil hastobepleased labor unions. r gr including 29community development, backing ofthegroupsmostaffectedby the y scattered resistance may $75 million.While will require a city subsidythatcouldexceed becausethehotelproject inpart likely threat, But community oppositionposedaserious attract more business. complex tohelptheConvention Center the developers eventually build themassive city approval in1997ontheconditionthat project receivedCenter.That Los Angeles alsoowns Staples Angeles Arena LandCo., ledby theLos The development partnership, esidents oftheneighborhood andfive teeg,thedevelopers now canclaimthe et emerge, us about300predominantly immigrant oups, ....It's really amodel." T andwas metwithapplause. Spanish, ered an updatetoresidents inaccented anointed leadnegotiator by Leiweke--deliv- ByMarch,Tanner--who hadbeen built. trust But thetonechangedover timeasmutual inhisabsence. addressing him angrily chair, placedhisname placarders onanempty organiz- meeting withresidents lastOctober, Leiweke canceledplanstoattendthefirst Earlyrelations were rocky.When package. negotiations thatultimatelyproduced the protest oflabor-style thantothe100hours arecoalition members more accustomedto Many thenew dealdidnotcomeeasy. Still, m now concedethey were insensitive tocom- andStaplesofficials enoughtoact, informed community was neitherorganizednor the the groundjusttwo years ago.Then, w stands inmarked contrasttotheway things The approach onbothsidesofthetable next week andthenmoves toCityCouncil. the Community Redevelopment Agency Itisscheduled foravote before plan May 23. The cityPlanningCommissionapproved the hesaid. important," av J secure allcityentitlementsby theendof Arena Land--themaindeveloper--were to ior vicepresident ofStaplesCenterand Marching ordersfor Tedthe mix. sen- Tanner, Next week's cityelectionsaddedurgencyto Leiweke lastfall. gr meetingbetweenthe first community r Councilwoman Rita who Walters, landuseplanningdeputyto Sheppard, who willbemostimpacted,"saidJohn n.Gtigtecmuiyo or,and Gettingthecommunity onboard, une. epresents theneighborhoodandarranged anner saidthedifficultyin negotiationswas ent down whenStaplesCenterrose from unity needs. oups and Arena LandPresident Tim iigaporce ih,was "extremely oiding aprotracted fight, Appendix E: Los Angeles Times Article About Staples CBA | 115 $100,000 in seed funding to create $100,000 in seed funding ve esidents earning 50%, below 60% and 80% amilies with lower incomes.amilies with lower Developers specialized job training programs through programs specialized job training that groups and ensure local community notified first are appropriate residents of jobs. A local hiring for training program and job the arena, by those displaced within living in low- or living of the project miles three citywide.income areas will Developers gi permit parking A residential program, years, for five developers financed by that parking for residents. street will reserve Common in affluent areas, it officials say will become the first parking permit zone neighborhood. in a low-income 100 and 160 Construction of between housing units,affordable or 20% of the total project.Those to will be affordable r median income.Theof the area's units Redevelopment exceed Community and serve in number Agency requirements f up to $650,000 in inter- also will provide housing devel- loans for nonprofit est-free opers in the early stages of developing in the area. projects ■ ■ ■ ights groups. Some of the 29 community groups that came groups that Some of the 29 community Corridor as the Figueroa together Coalition together had worked for Economic Justice before, helping to organize union efforts at USC.The beginning alliance broadened last local from summer to include everyone to environ- and housing activists churches mentalists, tenant organizers and immigrant r Meanwhile, began to organize too, residents condi- to air concernscoming together over the existing arena,tions around reck- where less drivers, tickets, costly parking and vandal- plagued their lives. ism have Labor, too, two role--with a key played At least 70% of the estimated 5,500 per- the project-- by manent jobs to be created tenants--will by including those offered or better.Those wage are a living pay $7.72 an hour with ben- defined as paying efits or $8.97 without, col- by or covered bargaining agreement.Thelective deal also the coali- to notify calls on the developer signing tenant before tion 45 days lease agreements. More than $1 million for the creation or than $1 million for the creation More of parks within a mile of the improvement project, input; with community a one-acre open space. plaza and other public public ■ ■ or community groups,or community unions and esidents, however, the deal has even broader implications.Thebroader effort, say, they onment.These holistic people with are anis-Aparicio, of the Los director executive Among the highlights of the deal: "It's a huge step forward," said Madeline "It's a huge step forward," J and Economy for a New Alliance Angeles negotiators.one of the lead community "Bringing showed all these groups together to envi- to jobs relates housing relates how r holistic needs, take a developer and to have that into account . . . is just amazing." has yielded the most tangible results yet of a yet has yielded the most tangible results interests the overall nascent strategy to serve of neighborhoods. F r "Our goal in continuing negotiations was to negotiations was "Our goal in continuing win true for the proj- support and advocacy Tanner,who early in architect an ect," said communi- from the table sat across his career in planning projects ty groups on urban Philadelphia. the same--to "Their goal was and better this project could make see if we benefits for the community." improve in striking demands meet the a balance--to the devel- burdening without of the coalition costly conditions or its tenants with opment elsewhere. not required 116 | Community Benefits Agreements: Making Development Projects Accountable lyst whoserved asanofficialCounty a hotel unionresearch ana- said David Koff, atthesametime," approaching anairport "I kept thinkingofthisastwo airplanes not technicallyontheiragenda. but was whichaffectstheirmembership ing, chimed inonissuessuchasaffordable hous- labor Inturn, stood inunisonwithlabor. community negotiators union, the janitors' stymiedtheprogressWhen disagreements of the leadorganizationsincoalition. Strategic oneof Actions foraJust Economy, director of saidGildaHaas, age theirpower, lever-opted tolinkupwithlaborfurther w Realizing thatthewindow ofopportunity leader MiguelContreras. Los Angeles CountyFederation ofLabor ize atthenew centerunderthedirection of toorgan- jointly forunionjobsandtheright They are amongfive unionsnegotiating influence beyond wage issues. toexpandtheir ofaneffort coalition aspart w unions representing hotelandrestaurant orkers and janitors joiningthecommunityorkers andjanitors ssaladcoig coalitionmembers as smallandclosing, we we "Almost everything we asked for to home. his jobataHollywood market foronecloser whohopestotrade Manuel Pacheco Galvan, tohave abetterway ofliving," said housing, toget "What we're hopingistogetwork, to negotiations. tothecoordinated approachdue inpart most ofthecore issueshave beenresolved, Butlaborsources said soon. ized agreements are expectedtoannouncetheirfinal- neers, stagehandsandoperatingengi- attendants, whichalsorepresent parkinglot The unions, to make asoftlandingatthesametime." "Theideawas togetboth nity negotiations. F UCLA UrbanSimulation Team PHOTOGRAPHER: dollar project. around StaplesCenterisabillion- District andEntertainment Sports Proposed L.A. PHOTO: This willmeansomechangeforallofus." but now we seethatit'sareality.possible, ederation ofLaborobserver inthecommu- got. In the beginning itdidn'tseem ...In thebeginning Appendix F: Living Wage Section of the NoHo Commons CBA | 117 ticipation Agreement. if the ticipation However age Proportion for two consecutive for two age Proportion age Proportion. Notwithstanding any- utually agreeable additional steps which utually agreeable ears, meet and shall promptly Developer Development will be living wage jobs.The wage will be living Development and the Coalition agree that this Developer in light of all requirement is a reasonable of the circumstances.Achievement of the shall be measured Proportion Wage Living 1, on January each year shall be report- but ed biannually, as described in section VI.A.5, that actual per- below. In the event formance is less than 75% of the Living W y confer with the Coalition to determine m to meet the Living can and will be taken W thing to the contrary, failure to Developers mentioned 75% require- meet the above or defaultment shall not be a breach under this agreement or the Owners Par Agency determines discre- in its reasonable two in any has not tion that the Developer period efforts calendar year used reasonable

The Developer shall make all shall make The Developer

Living Wage Section of the NoHo Commons CBA Section Wage Living easonable effortseasonable to maximize the number The Developer and Contractors shall com- The Developer of the provisions ply with substantive Ordinance,Wage set forth in City's Living the Los Angeles Administrative Code, Section 10.37. Proportion. Living Wages. Living

r jobs in the Development. wage of living agree and the Coalition The Developer that at least 75% of the jobs in the Appendix F Appendix 2. Seventy-Five Percent Living Wage 2. Living Percent Seventy-Five A. Responsibilities Regarding Developer 1. Compliance With Ordinance. Wage Living ollowing are the living wage provisions provisions wage the living are ollowing SECTION VI. POLICY. LIVING WAGE F for the NoHo Commons CBA, described is in Chapter Four.The CBA entire online at available http://www.laane.org/ad/cba.html. 118 | Community Benefits Agreements: Making Development Projects Accountable ■ ■ ■ ■ Calculation ofProportionLiving Wage 4. Exemption for SmallBusinesses. 3. riac) and Ordinance); r with cost-of-living adjustmentstowages (these amountswillbeadjustedinconcert or$9.24perhourotherwise insurance, vided withemployer-sponsored health least $7.99perhouriftheworker ispro- considered living wage jobs: thefollowing jobsshallbe Development, centage ofliving wage jobsinthe Jobs. City’s Living Wage Ordinance); adjustments towages required underthe withcost-of-living adjusted inconcert per year otherwise(theseamountswillbe or$18.657.60 sponsored healthinsurance, the employee isprovided withemployer- basisatleast$16,057.60peryear if salaried jobs forwhichtheemployee ispaidona W jobs covered by theCity’s Living than tenworkers. to jobsatbusinesses thatemploy fewer the Living Wage Proportion shallnotapply Developer’s responsibilities withregard to r shall have regarding the75%Living Wage shall betheonlyliabilitythatDeveloper penalty each suchapplicable period.This Agency may assessapenaltyof$10,000for thenthe to meetthe75%requirement, ess ecie nscinV..,above. insection described VI.A.3, nesses, covered by theexemption forsmallbusi- this calculationshalltake intoaccountjobs of No part total number ofon-sitejobs. divided by the the above fourcategories, n Development willbecalculatedasthe The percentage ofliving wage jobsinthe agreement. jobs covered by acollective bargaining jobs forwhichtheemployee ispaidat equired undertheCity’s Living Wage equirement. umber of on-site jobs falling into any of umber ofon-sitejobsfalling age Ordinance; F or purposes of determining theper- ofdetermining or purposes 5. Reporting Requirements. Reporting 5. .Developer NotifiesCoalitionBeforeSelecting a. Selectionof Tenants. 6. T been met. whether theLiving Wage Proportion has the Living Wage Proportion todetermine The resulting number willbecompared to of theidentityprospective Tenant, est possible dategive theCoalitionnotice such casestheDeveloper shallattheearli- in however, orothercontract; agreement tosigningsuchalease than 45days prior noticemay begiven less stances sorequire, Living Ifexigentcircum- Wage Proportion. the prospective Tenant’s impactonthe75% r Te Coalition oftheidentityprospective shallnotifythe such leaseorcontract, into Developer entering isconsidering shall notifytheCoalitionthat theDeveloper within theDevelopment, orothercontractforspace lease agreement succeeding year. yearpartial by 30thofthe April r independentinvestigation.This perform withoutresponsibility to and Contractors, r Developer shallbeentitledto this report, r adiscussionofthe ofthereport as part theDeveloper willinclude not beingmet, cates thattheLiving Wage Proportion is indi- Ifthereport above. Section VI.A.3, asdefinedin jobs thatare living wage jobs, n suchdatawillonlyincludethe rather, employers willnotincludeprecise salaries; Dataregarding particular the Development. as well asdataregarding eachemployer in willcontainproject-wideThe report data Development thatare living wage jobs. Agency onthepercentage ofjobsinthe will provide abi-annual tothe report qet,meetwiththeCoalitionregarding equests, eport shallbefiledforany giveneport year or providedely oninformation by Tenants Incompiling easons why thatisthecase. umber ofjobsandthepercentage ofthese enants. at n hl,iftheCoalitionso andshall, nant, At least45days before signingany The Developer Appendix F: Living Wage Section of the NoHo Commons CBA | 119 The Agency, Developer shall Developer en year or partial year by January 31st January by or partial year en year age jobs, of these jobs and the percentage age jobs,VI.A.4, as defined in Section enants providing living wage jobs may wage living enants providing equired to participateequired program, in this but equire each Tenant to annually report to to annually Tenant each equire eceive various eco- benefits of substantial eceive the City and the Coalition are attempting the City and the Coalition are Fund, Trust a Health Insurance to create with Tenants which is intended to provide employees method of providing a low-cost with basic health insurance.When avail- the oppor- will be offered able,Tenants all tunity to participate in the Health not are Fund.Tenants Trust Insurance r choose to participate. may r of on-site jobs, its number the Developer living of these jobs that are the percentage w health provided are for which employees need not Tenant.Tenants the insurance by salariesinclude precise in such reports; rather, need to wages,Tenants with regard of jobs and the only include the number living of these jobs that are percentage w above. Such reports shall be filed for any giv of the succeeding year. Under the Living Wage Incentive Program, Incentive Wage Living Under the T r nomic value.At Developer, no cost to the prior and sole without the Developer’s consent, the Coalition, the Developer, and will collaborate to attempt to Agency the to assist the structurea set of incentives Wage in meeting the Living Development Incentive Wage Proportion.The Living described shall be Program in a simple and writtenaccessible format for pres- suitable Tenants.The entation to prospective Coalition,the with collaboratively working Developer, govern- shall seek funding from to support sources the mental and private in the and benefits provided incentives Program. Incentive Wage Living Health Insurance Trust Fund. Trust Health Insurance 2. 3. Reporting Requirements. At All Tenants When choosing between enants’ opportunities and enants shall make annual reports as set annual enants shall make prospective Tenants for a particular space Tenants prospective within the Development, the Developer into account as a sub- take will reasonably Tenant’s stantial factor each prospective of the potential impact on achievement Wage Proportion. Living T VI.B.3,forth below.The in Section will use best efforts to include Developer as a materialthese reporting requirements term of all lease agreements or other contracts for space within the Development. and, a meeting, requests if the Coalition the earliest pos- shall occur on the meeting occur event in any date and shall sible prior the lease agreement to the signing of or other contract. responsibilities. Consideration of Impact on Living Wage of Impact on Living Consideration Proportion. Coalition Meeting with Prospective Tenants. Prospective Coalition Meeting with will be offered the opportunitywill be offered to partici- Program. Incentive Wage pate in a Living least 30 days before signing a lease agree- signing a lease before least 30 days for space within ment or other contract Development,the Proposed the Developer will arrange a meeting between and attend Tenant,if the prospective the Coalition and the Coalition so requests.At such a meeting, will the Coalition and the Developer the Tenant discuss with the prospective and the Program Incentive Wage Living Fund,Trust Health Insurance and will assist the Coalition in encouraging participation in these programs. If exigent circumstances so require, occur less such a meeting may priorthan 30 days to the signing of a lease agreement; however, in such cases the on the meeting shall be scheduled to occur event date and shall in any earliest possible occur prior lease to the signing of the agreement contract. or other 1. Incentive Wage Living Program. B. T d.Agree to Reporting Requirements. Tenants c. b. 120 | Community Benefits Agreements: Making Development Projects Accountable binding attachment totheproject’s devel- This memorandumbecame alegally in described Appendix B. CIM project, community benefitscommitmentsforthe F ollowing is amemorandumsettingout CIM Project –Memorandum Attachment toDDA Appendix G beneficiary.” legal statusofadesignated “third-party enforceable by theCoalition underthe benefits commitments are explicitly community opment agreement.These 121 122 123 124 Appendix H: “Economic Prosperity Element” | 125

A City which provides a variety of job A City which provides opportunities including middle-income opportunities lad- and career employment ders for all segments of the population. A broad distributionA broad of economic oppor- the City. tunity throughout through of living A higher standard and benefits in wages increased industries. low-wage life-long skills A City which provides in and learning opportunities investing by excellent schools, post-secondary institutions, and opportunities for continuous to education and training available existing residents. access to educational Equitable opportunities. ■ ■ ■ ■ ■ D. Employment Development Goals D. Employment Development of General Plan for the City of San Diego of General Plan for the Appendix H Appendix “Economic Prosperity Element” Preliminary Draft from ould be included in the City’s general plan,ould be included in the City’s as ollowing is the City of San Diego’s preliminary is the City of San Diego’s ollowing esulted in a combination of fewer middle income esulted in a combination of fewer Despite the economic growth that has occurred Despite the economic growth years,over the last few economic prosperity has distributed in the City of San not been evenly Diego. have National and local economic trends r jobs, of poverty, a concentration and culture and high end job opportunitiesincreasing creating income,increased social, and spatial disparities. Among the costs of these disparities, the are serviceincreased the City and costs incurred by the significant land use agencies and other public impacts which exacerbate these same disparities. described in Appendix A.ThisAppendix language reflects described in as of this writing.the latest version Economic Opportunity draft for an “Economic Prosperity Element”draft for an that w F 126 | Community Benefits Agreements: Making Development Projects Accountable of SanDiegoshouldincrease thequalityofthese City have in low-paying occurred industries.The significant declineinaverage wages intheregion themost Unfortunately, employment inthe City. ed inanincreased percentage oflower-wage and retail/business occupationshasresult- service continued successofthevisitor industry tries.The the nextfew indus- years willbeintheservices oftheadditional jobsover themajority However, andproducts. whichsupplyservices firms gro they have favorable long-term national markets, competeinnationalandinter- driven industries Becausetheseexport- technology employment. seekinghigh- outsidetheregion attracted others forlocalresidents andhasalso opportunities cessfully created higher-incomeemployment inSanDiegohassuc- high-technology industries andbiotechnology.The expansionof software, computers, electronics, ing telecommunications, by y projectedcountry forjobgrowth inthenext20 San Diegoisoneofthetoptencitiesin of living andlower wages. the SouthandSouthwest whichhave lower costs w trends suggestthat long-term the UnitedStates, dle-income rangehave moved overseas.Within whichare inthemid- ated withmanufacturing Many jobsassoci- duction ofintellectualproperty. and toward theprovision andthepro- ofservices the production andassembly ofphysical goods There isanationwideeconomictrend enhanced economicdevelopment opportunities. J Employment andWages Discussion ob creation andretention are directly related to as Many new jobsarebeingcreated currently ears. orkers and firms haveorkers andfirms beenmoving toareas in emerging high-technology companiesinclud- emerging wth potential and also support locally-based wth potentialandalsosupport ■ industry needs. industry skilled andeducatedworkforce thatmeets gro A Citythatwillcontinue toincubate wth andinvestment by providing a away from away sidered whenupdatingincentives. inlow-wageders shouldalsobecon- industries employment andthedevelopment ofcareer lad- on theattractionandgrowth ofmiddle-income mix isthekey anew focus toastable economy, adiverse employment dollars.Although import that clusters industry that focusesonsupporting aneconomicdevelopmenthas pursued strategy theSanDiegoregion Inthelastten years, tries. ingenuity tocontinue toretain beneficialindus- educated andskilledworkforce andlocal ahighly San Diegomust rely onqualityoflife, toretain middle-incomejobs. and countries as SanDiegocompeteswithlow-wage regions investmentscompetitiveness.These are imperative and otherareas vitaltoSanDiego’s economic community infrastructure conservation, mobility, chases enable theCitytoinvest ineducation, tional salestaxrevenue from pur- discretionary Savings from public programsthe City. andaddi- income resulting inhighersalestaxrevenue for and assure anadequatesupplyofdiscretionary bur City’s economichealthbecausethey reduce the Middle-incomejobsare centraltothe spending. withsomemoney leftover fordiscretionary care, foodandhealth- will cover thecostofhousing, jobspaywith acareer awage ladder.These that andisassociated full-timeemployment, offers middle-incomejobprovidesthe City.A benefits, economy in toan has contributed “hour-glass” andknowledge-basedboth service employment to base-sectormanufacturing from The shiftaway intheselow-wageladders industries. thedevelopmentjobs by encouraging ofcareer Policies D e nsca,hat,andhousingprograms health, den onsocial, 1 Employment landshallbepreserved for .1. itiuin and wholesaletrade. distribution, research anddevelopment, manufacturing, middle-income employment usesincluding Appendix H: “Economic Prosperity Element” | 127 increase health benefits to employees and employees health benefits to increase the rising address of businesses costs for healthcare that try to provide their employees. industries in low-wage wages increase ladders.including efforts career to create similar legislation, the standard to increase residents. for lower-income of living job opportunities in low-income promote neighborhoods. .5.Thesupport City should legislation to .6.The City should support to measures .7.The City should support wage, living or .8.The to City should continue D D D D cational and skill development,cational and quality and that supportof life assets middle-income development. employment that facilitatement of measures expansion facilities business which of high technology middle-income the potential to create have local residents. to be filled by jobs likely of middle- City should pursuethe creation and higher quality income employment industries driver such as jobs in low-paying visitor and entertainment and amusement. .2.The in infrastructure, city shall invest edu- .3.Thethe develop- City shall encourage and legislation,.4.Through incentives the D D D California Partnership Good Jobs First for Working Families 1311 L Street NW 436 14th Street, Suite 1126 Washington, DC 20005 Oakland, CA 94612 202-626-3780 (510) 834-8503 www.goodjobsfirst.org www.californiapartnership.org