FINAL REPORT THE BIG RETHINK: POSITIONING PITTSBURGH FOR THE NEXT STAGE OF URBAN REGENERATION Prepared by: Mt. Auburn Associates, Inc. Beth Siegel Kevin Casey McAvey Alyssa Rosen Theodora HadJimichael with Michael Kane Consulting, Karl F. Seidman Consulting, and Melvyn Colon Project Funders: Birmingham Foundation The Heinz Endowments McCune Foundation Roy A. Hunt Foundation McAuley Ministries Buhl Foundation Richard King Mellon Foundation The Pittsburgh Foundation Urban Redevelopment Authority Pittsburgh City Planning Department MAY 2012 Table of Contents Setting the Stage ............................................................................................................................. 3 The Regional Context .................................................................................................................. 3 The National Context .................................................................................................................. 4 Definitions and Methodology ......................................................................................................... 6 Developing a Common Language ............................................................................................... 6 Methodology ............................................................................................................................... 7 Key Findings: System Actors .......................................................................................................... 9 Community Development Organizations ................................................................................. 10 Community Development Intermediaries ................................................................................ 13 Foundations and City Investments ........................................................................................... 19 Community Development Finance System ............................................................................... 20 Key Findings: Achievements and Challenges in the System ........................................................ 23 System Achievements ............................................................................................................... 23 System Challenges .................................................................................................................... 29 Moving Forward: Recommendations .......................................................................................... 35 Recommendations .................................................................................................................... 36 Conclusion ................................................................................................................................. 46 Appendix 1: CBO Survey Results ................................................................................................. 1-1 Appendix 2: Pittsburgh Intermediaries ....................................................................................... 2-1 Appendix 3: Pittsburgh CDC Inventory ....................................................................................... 3-1 Appendix 4: Foundation Funding ................................................................................................ 4-1 Appendix 5: Neighborhood Profiles ............................................................................................ 5-1 Final Report 2 Setting the Stage THE REGIONAL CONTEXT 3LWWVEXUJK·V/HDGHUVKLSLQWKH Community Development Field Pittsburgh is at a critical pivot point in its development. As a The community development system result of the combined efforts of the regional foundations and that evolved in Pittsburgh has been the city to simultaneously reinvent the regional economy, while influential nationally: building more livable neighborhoods, the city is one of the first x Pittsburgh was one of the leaders Rust Belt cities poised for growth. After years of public and in the use of historic preservation private investment, the city has a stronger urban core with a as a tool for neighborhood more vibrant downtown. Some neighborhoods have seen revitalization. physical revitalization and population increase, in the process x Work in Pittsburgh was an going from distressed neighborhoods to neighborhoods of inspiration in the creation of what FKRLFH 3LWWVEXUJK·V UDWH RI XQHPSOR\PHQW Zhich had been is now NeighborWorks America. above the national average for 16 years, fell below the national x Pittsburgh was one of the first average in 2007. cities to develop a support system through the creation of The community development system in Pittsburgh is also at a community development pivot point. The city has been one of the leaders in the intermediaries such as the community development field. During the 1970s, Pittsburgh Pittsburgh Partnership for Neighborhood Development laid down fertile soil for the creation of its community (PPND). development system and, with the support of national foundations, established a number of support organizations x Pittsburgh created a highly successful reinvestment and intermediaries that focused on building a network of coalition, Pittsburgh Community innovative community development corporations (CDCs). Reinvestment Group (PCRG), to hold lending institutions There is little disagreement that the community development accountable for inequitable system in Pittsburgh has been highly productive and innovative treatment of low-income and that it has achieved significant improvements for some of neighborhoods. WKH FLW\·V QHLJKERUKRRGV LQcluding increased market values x The Urban Redevelopment and an expanded tax base for the city. In spite of this, Authority of Pittsburgh (URA) is a conditions in Pittsburgh have changed significantly and the unique redevelopment authority system has been slow to respond to some of these changes. that uses its considerable resources to revitalize For example: neighborhoods rather than focusing exclusively on downtown x Real estate conditions have undergone a dramatic shift, revitalization. calling into question some of the longstanding strategies of community-based organizations. x A number of leaders who began their careers in Pittsburgh went on to become influential figures x There is diminished public and private sector funding. in community and urban development on the national x Leadership is changing within the system³at the stage. foundations, the intermediaries, and community organizations. Current Trends in Community Final Report Development 3 x Comprehensive community development. This implies the creation of a shared vision for a x Despite improved market conditions, not all residents or all neighborhoods have shared in the new opportunities. Some neighborhoods have experienced population losses of greater than 20 percent in the period between 2000 and 2010, well above the citywide loss of 8.6 percent. x There is growing interest in and support for more comprehensive place-based strategies, as evidenced by the recent commitments of the Richard King Mellon Foundation and The Heinz Endowments, but there is a need to understand how to bring these and other efforts to scale to have greater impact. 5HFRJQL]LQJWKDWWKH\ZHUHLQD´VHDFKDQJH,µWKHPDMRUIXQGHUVRIFRPPXQLW\GHYHORSPHQW in Pittsburgh³its leading foundations and the city³realized that from time to time many systems need to pause to assess their successes and seek to respond to new needs, challenges, and opportunities. The impetus for the creation of this report is a general feeling among various stakeholders that, given these changing conditions, the current community development system is no longer performing to the expectations of its numerous constituencies nor serving the needs of the broad range of communities, especially the lowest income and most disinvested communities. This report, recognizing this sea change, was designed to achieve the following: x map the current community development system and capture the progress made to date; x describe the current challenges and opportunities for revitalizing Pittsburgh neighborhoods; and x recommend a future direction and how resources should be deployed, in a local context and yet one also informed by best practices from other similar cities. THE NATIONAL CONTEXT Pittsburgh is not alone among American cities in conducting a comprehensive review of its community development system. Increasingly, conventional community development approaches are undergoing re-evaluation. In the face of intractable problems that have not responded to past policy approaches, the federal government, cities, and the national philanthropic community are engaged in a rethink. Cities that have engaged or are engaging in a similar exercise of assessing their current community development system include Cleveland, Detroit, Milwaukee, and St. Louis. These cities are rethinking the strategies that many community development corporations have focused on in light of changing conditions. Most of these studies have concluded that the traditional community development model needs refinement, bricks and mortar development and creation of low-income housing should no longer be the primary focus of the system, there needs to be increased attention to strategies that focus on people, and the intermediary system designed to support community development needs to become Final Report 4 more effective and accountable for results. At the national level, some of the major foundations that have supported the community