CBA Overview—What They
Are and What They Aren’t.
David Marcello
The Public Law Center
May 10, 2011
What is a Community Benefits
Agreement (CBA)?
• A CBA is an enforceable contract directly
negotiated between a developer and a
Community Benefits Coalition (CBC).
How Do CBA’s Compare to PublicPrivate Partnership Agreements?
DEVELOPER
Public-Private
Partnership
Agreement
CITY
Community
Benefits
Agreement
CBC
What do economic development
projects need to succeed?
• Many projects need “public benefits” or
“subsidies” iin the form of:
– Zoning approval
– Favorable financing
– Infrastructure improvements
• To get approval for these public benefits,
project developers often need public
(community) support.
What do developers get out of a
Community Benefits Agreement?
• The Community Benefits Coalition agrees
to support the project with public testimony
and written statements.
• Community support reduces risk for
developers by uniting city government and
community groups behind the project.
• Developers more reliably get needed
public subsidies or government approvals.
Members of the CBC negotiating
team seek Community Benefits.
• The CBC negotiating team represents the
interests of the entire community affected
by a proposed development.
• No member of the CBC negotiating team
may receive a direct benefit from the CBA.
• “Transparency” is the key to success of
the CBA process: No backroom deals.
• TPLC Website has Operating Principles.
What types of benefits have CBA’s
provided to communities?
• Local and Minority Hiring Commitments
• A Living Wage and Benefits
• Educational Partnerships Between
Developers and Community Schools
• Physical Improvements to Open Spaces,
Parks, and Playgrounds
• Affordable Housing and Rehabilitation
• Senior Centers and Child-Care Facilities
What’s the economic impact of a
“local hiring” commitment?
• Conservatively, salaries turn over in our
community 3 times.
• Without local hiring, the community could
lose the economic impact of these salaries
in their neighborhood.
• Both developers and neighbors benefit
from stronger neighborhoods where
expensive investments are located.
CBA’s: No Answer to “NIMBY”
• NIMBY: “Not in my Back Yard”
• Interests that are unalterably opposed to a
project will not join or sign a CBA, since
their overriding goal is to kill the project.
• “Community Benefits” are only produced if
the proposed project gets built.
• CBA’s facilitate development—and
benefits for the community: Win-Win.
CBA’s: Aren’t “New Taxes” Nor
Are They “Tax Breaks”
• Additional tax revenues derived from new
development bring “benefits” to the larger
“community,” but that’s not the “benefit”
associated with CBA’s negotiated by CBC.
• Tax breaks negotiated in PPP, not CBA.
• CBA = Private agreement between
Developer and Community Coalition
• New taxes or “forgiveness” of tax = Public
CBA’s: Not a “CPP” or “NPP”
• CBA’s exist independently of formal public
participation programs.
• Successful CBA’s are no substitute for a
CPP or NPP.
• We can have successful CBA negotiations
without a CPP or NPP.
• CPP and NPP are very worthy subjects for
discussion at a symposium all their own.
CBA’s: Not “inward” looking;
focused “outward” on benefits
• We’ve always had “internal” negotiations
to diminish the project’s adverse impacts.
• “External” focus of CBA’s is the new
feature—positive contributions to the area
outside of the project’s boundaries.
• And CBA’s allow neighborhood residents
to represent themselves; no need to rely
on government to protect their interests.
How can city and state government
support CBA’s?
• Inform community coalitions of proposed
developments.
• Encourage developers to enter good-faith
negotiations with responsible community
coalitions.
• Respect the negotiating process and
honor community coalition’s agreement.
• Fold CBA’s into PPP agreements, where
appropriate for added enforcement.
Why should we support CBA’s?
• Equity—It’s only fair that neighborhood
residents affected by a project enjoy some
benefits from its presence in their area.
• Economic Development—Increased
earnings by area residents “roll over” into
support of local small businesses.
• Functionality—Development just works
better when parties are on the same page.
How do YOU define “Economic
Development”?
• Recruiting new business.
BUT ALSO
• Paying good wages and benefits.
• Supporting local small businesses.
• Giving a hiring preference to high school
graduates: Build workforce development
into the CBA system.
• Sustaining stable neighborhoods.
Consider All Options to Rebuild
• Post-Katrina, we must consider all options
to rebuild our economy and communities.
• Community Benefit Agreements are a new
solution for community recovery.
• Government cannot solve the problem on
its own. We must put private sector
resources at the center of recovery.
• CBA’s create a partnership among public,
private sector, and community resources.
Community Benefit Agreements
• Reduce risk for developers.
• Revitalize local businesses by providing a
living wage and benefits to area residents.
• Create partnerships among developers,
city government, and community groups.
• Provide benefits to communities directly
impacted by proposed developments.
• CBA = Innovative Recovery Strategy