Penguins CBA petition

The One Hill CBA Coalition posted an online petition this weekend, for CBA supporters to ask the Penguins' president to negotiate.

Harvard's Allston-Brighton expansion plans

Harvard owns land in North Brighton and North Allston (just across the Charles River from Cambridge) that it plans to use for an expansion of the university.

Although I'm not aware of a CBA per se, Harvard is expected to enter into a cooperation agreement with the Boston Redevelopment Authority containing a $24 million benefits program for the Allston community that will include:

• $11.5 million for parks and neighborhood improvements;
• $4.7 million for educational initiatives open to local residents;
• $3.9 million for employment and workforce development; and
• $3.8 million for the city's housing trust fund.

For technical information about the development, see the Allston Brighton Community Planning Initiative.

For news about the expansion and its community benefits, see this Wicked Local article and this one from the Daily Free Press.

Yonkers Alliance for Community Benefits

In Yonkers, NY, a coalition has formed to negotiate a CBA with the developer, Struever Fidelco Cappelli, over its multi-billion redevelopment plans for the city. At present, SFC has expressed a willingness to bargain, and the coalition is building its numbers.

The organization Scenic Hudson has prudently reminded the community that people should not let public hearings on a CBA distract them from SFC's preliminary draft environmental impact statement, which will soon be the subject of its own public hearing.

For more information, see this article and this entry on the Yonkers Community First Development Coalition's blog.

Update: May, 14, 2008.

The Westchester County Business Journal reported on May 3 that most of the city council members "support the idea of community benefits," although the specific benefits being sought by the Yonkers Alliance for Community Benefits have not yet been detailed. A spokesperson for SFC also said that the developer "is willing to work with any planning group that wants to meet."

CBA legislation to be discussed in Pittsburgh

A public hearing will be held on Tuesday to allow the public to comment on two bills pending in Allegany County, Pennsylvania (read the official notice here).

The first bill would create a Community Benefits Program that would require developers of subsidized projects to meet with community represetatives at least three times prior to receiving any approvals. The bill does not explain how the community representatives would be chosen (except that individuals unaffiliated with any community group would not be eligible), nor does it actually require that a CBA be completed.

The other bill would require economic and social impact analysis reviews for any development over 50,000 square feet that receives subsidies or needs government approval. Completed reports would be made available to the public at least 90 days before any county approval.
After the report is issued, a public hearing would then be held at which the county council would review the report. Contents of the report would include, in plain language, the following:

• Amount of projected financial cost to the County and other governmental entities,
  including subsidies and infrastructure improvements;
• Amount of tax revenue anticipated to be generated by the Proposed Project, and any
  anticipated restrictions on or dedications of that tax revenue;
• Number and type of construction and permanent jobs that will be generated by the
  project, and the wages and benefits likely to be provided for such jobs;
• Any anticipated positive or negative impacts on existing businesses and employment
  patterns in the vicinity of the Proposed Project;
• Number and size of housing units to be created; the affordability levels thereof; and the
  proportion of rental and ownership units;
• Whether or not LEED certification will be attained for the Proposed Project, and, if so,
  what type of LEED certification;
• Current land uses and ownership;
• Proposed uses by size and land ownership;
• Intended timeline for construction and completion;
• Estimated cost of construction;
• A visual depiction of the Proposed Project, such as drawings, photographs of models,
  or photographs of similar, completed projects; and
• A breakdown, by category, of the numbers of anticipated displacements of existing
  residents, businesses, or services to make way for the Proposed Project, as well as the
  name, address, and type of business for each business or service anticipated to be
  displaced.

2 Political Junkies reports that Pittsburgh UNITED is supporting the impact analysis bill.

Small businesses and CBAs

Small, locally-owned businesses can do a lot for local economies. They provide community ties, strenghten community character and keep locally spent money in the local economy. Some commentators believe that they tend to pay higher wages and devote more money to community investments than do larger corporations. Provisions aimed at encouraging small business growth have been included in a number of CBAs:

• LAX: requires the developer to set up a revolving loan program to benefit small businesses.


• Gates-Cherokee: the property may not be used for any commercial establishment larger than 75,000 square feet, effectively prohibiting most big box stores.


• Longfellow: no retail tenant may occupy more than 30,000 square feet, and at least 30% of the retail space must be set aside for local businesses.


• Shaw District: space set aside for local businesses


• Gateway Center: 18,000 square feet of space set aside for existing small local businesses;


• Atlantic Yards: sets aside 15% of gross retail leasing space for community-based business, with a preference given to minority- and women-owned businesses


• San Jose CIM Project: goals of 30% San Jose retailers and 30% regional retailers, with a set aside of 10% of the available retail space for existing small business in the downtown

Bad news for Atlantic Yards...

The New York Times reported today that Forest City Ratner, the developer of Atlantic Yards, is facing financial problems stemming from the credit crisis. Ratner is still optimistic that the arena will be built, but the prospects for the retail, office and residential space look grim.

In a separate article, the Times' architecture critic just about implored Frank Gehry to pull out of the project rather than see his architectural vision destroyed by the construction of the arena without the other buildings. "Postpone the towers and expose the stadium," stated Nicolai Ouroussoff, "and it becomes a piece of urban blight — a black hole at a crucial crossroads of the city’s physical history."

All of this news suggests that the affordable housing promised in the CBA may not be built until years after the stadium, if ever (see the Atlantic Yards Report (somewhat speculative) FAQ for more information about this). Unfortunately, the CBA doesn't give the community any real redress. Consider the following provisions (text of the CBA is available here):

• The term of the CBA lasts until 30 years after construction begins on the first residential building. If Ratner only builds the arena, it might be difficult to show any breach for not building affordable housing since he can claim that the housing is still in the works (pgs. 5-6).
• The CBA also provides that "[t]he Developers may change the Development Phases in their sole discretion prior to commencement of the first Development Phase; provided that they shall provide advance notice...as soon as reasonably practicable" (pg. 11). Again, Ratner has free reign here to change the plans, and significantly postpone construction of the residential units, since construction has yet to begin.
  
• The affordable housing agreement specifies the percentage of units that will be affordable. It does not set any minimum amount of affordable housing that must be completed, even though the creation of new affordable housing has been one of the key reasons for public support of the project. See the MOU on affordable housing for more details, and the Atlantic Yards Report story on the MOU an explanation of the affordable housing plan).
  
• Ratner is required to submit quarterly status reports to the CBA Coalition and the independent compliance monitor, but those status reports focus mainly on jobs--there is no requirement that Ratner report the amount of affordable housing that has been constructed (pgs. 41-43).
  
• If a new developer takes over the project, it will have no real obligation to continue the CBA. Ratner will still be responsible for the jobs development and local employment provisions (pgs. 49-50).
  

The problem goes beyond affordable housing though. The CBA also includes provisions that the project will include open space (pgs. 30-31), a community health center (pgs. 26-28), and child care, youth and senior centers (pgs. 28-30). If Ratner postpones construction of most of the project due to financial problems, there's a good chance that these will be postponed too. And that means that the community may end up with a stand alone stadium that causes traffic, noise and crime problems without adding many of the benefits that the developer promised.

If Ratner never breaks ground on the first residential building, is the agreement still any good? Probably, since Ratner can't be held to the creation of any specific amount of affordable housing because he only agreed that a percentage of the units actually built will be affordable. He also probably can't be blamed for misrepresenting the terms of the contract, since the prospects for the development looked a lot better in 2005.

Community coalitions need to contemplate these issues ahead of time. A developer may make great promises, but there's always a chance that the project will fall through.

Update: The Atlantic Yards Report has some better news, including a statement from ACORN, one of the CBA signatories, and a statement from Brooklyn Borough President Marty Markowitz, indicating that some affordable housing will be built.

Labor law, CBAs and the Supreme Court

California law prohibits employers that receive state money from interfering with union organizing. The United States Supreme Court heard arguments yesterday in a case challenging the California law, Chamber of Commerce v. Brown, no. 06-939. The employers who initiated the suit claim that the National Labor Relations Act preempts the state regulations, but the Ninth Circuit disagreed and upheld the legislation.

How the Supreme Court decides this case will have major implications for labor agreements included in CBAs, since it directly questions the power of state and local governments to regulate private labor relations matters.

For more information on the case, see the ScotusWiki entry and the analysis of the oral arguments from the Workplace Prof Blog.

Pittsburgh editorial on CBAs

Possibly taking some cues from the CBA spin book, there was a nicely written editorial in yesterday's Post-Gazette about CBAs in general and in Pittsburgh. Here are some excerpts:

Whereas past debates focused singularly on how to attract development, we have finally begun to consider issues such as development standards and community benefits. Some have argued that this broader discussion is an impediment to much-needed economic growth. Some seem to view development standards and community benefits as being mutually exclusive from or diametrically opposed to economic growth. But around the country experts now see these issues as bound together and mutually reinforcing.

Community benefits agreements are in fact pro-development, pro-business and pro-community, and the recent alliance of government and members of the community to work one out for the Hill is an example of Pittsburgh leaders recognizing this.

CBAs are win-win-win. They ensure redevelopment of urban areas and create multiuse, equitable and sustainable growth. They encourage good development by linking people of mixed incomes with affordable housing and good-paying jobs, which stimulates equitable economic growth that is, by discouraging sprawl, environmentally friendly.

Still, some economists ring alarm bells, suggesting that community input discourages investment. They should read a recent New York Times op-ed piece by economist and former Secretary of Labor Robert Reich, who says the best way to remedy economic downturns in weak market cities such as Pittsburgh is "to increase the wages of the bottom two-thirds of Americans."

Community benefits agreements often assemble powerful community-labor coalitions. These coalitions are as essential to lifting the living standards of working families and their communities at the beginning of the 21st century as they were at the beginning of the 20th century.

The truth is, in strong and weak markets alike, development standards and community benefits have proven to be good for business. If we do not include them in the development process, research shows that inequality is likely to grow. And inequality not only damages the quality of life of residents, it also hinders economic growth.

Real economic growth comes from equitable development. Development standards and community benefits ensure that development is equitable and raises the quality of life of all residents -- not just for developers.

...

Community benefits agreements and development standards are the only way to ensure that the greater community reaps the benefits of its huge investment in this private enterprise. This is not an either/or proposition; it is a both/and proposition, and the future of our region's economy depends on it.

The editorial was written by Gabe Morgan, director of the Service Employees International Union Local 3 and co-chair of Pittsburgh United, and Sam Williamson, Western District director of the PA Joint Board of UNITEHERE (a combination of the former Union of Needletrades, Industrial and Textile Employees and the Hotel Employees and Restaurant Employees International Union).

More on Yankee Stadium

Matthew Shuerman of the New York Observer, who's been covering CBAs for quite some time, has an audio piece on WNYC about Yankee Stadium. He talks to residents about the project and the CBA, and to Michael Drezin, the Bronx's lawyer and spokesman. Drezin was responsible for the delays in distributing money from the CBA's community fund because he "mistakenly told the IRS that it would be a nonprofit organization." The application was denied because the fund should have been described as a private foundation. Like any good lawyer, Drezin blamed this oversight on his accountant. Shuerman also speaks with Bettina Damiani from GoodJobsNY in the piece. She cogently points out that the community should have been involved in this CBA from the beginning.

Another CBA in Pittsburgh?

The Tribune Review is reporting that the Pittsburgh Stadium Authority delayed its approval of a $27.5 hotel by 45 days so that the developer can "have a dialogue" with North Side UNITED, which is seeking a CBA (North Side UNITED is affiliated with One Hill, I believe).

Bill Peduto, the city councilman who proposed the delay said that the land at issue is some of the most valuable land in western Pennsylvania, and the developer's exclusive right to develop it is analogous to a public subsidy. Mr. Peduto also stated that "it's not just about the hotel development, it's about the future development that occurs between the stadiums as well and making sure that it connects back into the neighborhood."

Does this mean that Pittsburgh is changing its tune about CBAs? Maybe. The mayor hasn't commented on the possible hotel CBA yet, though.

Longfellow Station/Purina Site CBA

** This is an updated (and improved) posting. Contact me here to obtain archived posts. **

Overview

The Longfellow Community Council (LCC) and developer Capital Growth Real Estate entered into a CBA in February, 2008. The deal involves the abandoned Purina Mills site in Minneapolis, which will be cleaned up and redeveloped as a mixed use complex called Longfellow Station.

The abandoned Purina Mill site. Photo MPR Photo/Dan Olson via MPR News.

Longfellow Station will have 197 housing units, and 10,000 square feet of retail space (decreased from 40,000 square feet due to economic considerations). It's also intended to be a model of sustainable, transit oriented development. It will have green roofs and an onsite storm water retention system, and personal automobile use will be discourage by limiting parking and providing abundant pedestrian and bicycle amenities. It's also located next to the Hiawatha light rail line, so residents, employees and visitors will have easy access to transit.

An architectural rendering from UrbanWorks Architecture.

The Longfellow Station/Purina Site CBA

Transit Oriented Development

The Longfellow CBA is notable for its focus on sustainable and transit oriented development (TOD). The CBA lists ten TOD principles to guide the project (pp. 5-6):

1. urban intensity
2. height, density, and public/green space
3. economic vitality
4. urban form
5. urban uses
6. retail location
7. reverse the normal parking rules
8. walkability
9. transit connectivity
10. neighborhood connectivity

In order to promote alternative transportation, the CBA requires the developer to provide free one-month transit passes to residential tenants and to ensure that transit fare can be purchased onsite (p. 14). The development must also include bicycle storage and parking facilities (p. 14), and dedicated parking spaces for zip cars (p. 15). Additionally, the development will have limited amounts of parking for personal automobiles, and parking spaces will be leased separately from residential units, giving tenants good reasons not to drive (pp. 14-15).

Walking and bicycle paths are required, as are traffic calming infrastructure improvements to protect pedestrians and bicyclists (p. 15). The paths are to be complemented by landscaped public gathering spaces (pp. 16-17). Longfellow Station must also incorporate a number of walkability and placemaking principles, such as designing the project at a human scale, using urban rather than suburban architecture, limiting blank walls, using high quality exterior building materials, and screening loading docks and trash areas (pp. 18-19).

Sustainable Development

In addition to the project's focus on alternative transportation, which helps to reduce emissions, Longfellow Station must also obtain green building certification, either under LEED or a similar Minnesota rating system (p. 8). Any landscaping installed for purposes of certification must be maintained for 30 years (p. 11).

The development also promotes sustainability because of its location on a brownfield site. Because the property likely suffers from environmental contamination, the LCC must be notified of hazardous substances discovered onsite during construction (p. 9).

Affordable Housing

The CBA requires at least 30% of the Longfellow Station housing units to be affordable, exceeding the city's 20% requirement (p. 7). A mix of unit sizes is to be provided, with family size units having access to green space (p. 7).

Contracting and Employment

Regarding wage and hiring policies, the CBA requires the developer to comply with the city's policies on prevailing wages, living wages, MWBE contracting, apprenticeship training and accessibility (p. 11). (These policies are located in the Minneapolis Code of Ordinances and typically apply only to city projects.) The developer must also use "every reasonable effort" to rent to commercial tenants that pay a living wage (pp. 11-12).

Small and Local Business Development

When recruiting business tenants, the CBA directs the developer to give a preference to small grocery stores, retail, healthcare, restaurants and cafes, small hotels, entertainment venues, offices, and light manufacturing. Local and regional businesses (especially small and "unique" ones) are to be given priority over national chains (p. 12). In any case, national chains may not occupy more than 70% of the commercial space in the development (p. 13), and at least 10% must be reserved for "community based small businesses" (p. 13). Big box retailers are specifically listed as undesirable businesses, and to prevent their establishment the CBA includes a commercial size cap of 30,000 square feet (pp. 12-13).

Community Amenities

In addition to the walking paths and public outdoor spaces required by the CBA, space must also be provided within the development for public art and displays relating to the history of the Longfellow neighborhood (p. 17). The CBA also requires the developer to reserve space for community meetings (to be free for the LCC), and to set aside at least 500 square feet for nonprofit community-serving organizations (to be rented at below market rate) (p. 17).

Implementation

As of June, 2009, the Longfellow Station project was moving forward, but set back by the poor economy. The retail space had to be cut from 40,000 square feet to 10,000 square feet in order for the developer to obtain financing, and some of the affordable units had to be cut. Given that the CBA requires 30% of the units to be affordable, it's unclear whether the agreement will need to be amended.

Links & News

• Purina Site Development Community Benefits Agreement
• Longfellow Community Council
• Capital Growth Real Estate, LLC
• Longfellow Station Redevelopment Plan, Jul. 6, 2007
• Urban Works Architecture, Longfellow Station Development: Phase 1A
  
• Longfellow Community Council, Longfellow Station Development Meeting video (undated)
• News Release, Metropolitan Council Awards $8.8 Million in Livable Communities Grants, Dec. 15, 2006
  
• Clarification of Information Included in Aug/Sep Issue of SENA News, Standish Ericsson Neighborhood Association, Jul. 19, 2007
  
• Ward 9 Council Member Gary Schiff's e-newsletter, Longfellow Station development announced for Hiawatha and 38th Street, Oct. 30, 2007
• Jerry Ascierto, Revamping Around Transit: Developer seeks to transform Minneapolis neighborhood, Affordable Housing Finance, Oct. 2007
  
• Steve Brandt, Minneapolis neighborhood makes a deal and history, Star Tribune, Mar. 4, 2008
• Dennis Geisinger, New affordable housing development strives to meet community needs, Southside Pride
  
• Federal Environmental Assessment, Longfellow Station, Apr. 2, 2008 (finding no significant impact)
• Longfellow Station Construction Delayed, Longfellow/Nokomis Messenger, Vol. 25, No. 7, Nov. 2008
• Center for Transit Oriented Development, Realizing the Potential: One Year Later; Housing Opportunities near Transit in a Changing Market, Dec. 2008 (pp. 71-82)
  
• Minneapolis Council Member Sandy Colvin Roy, 12th Ward News, Jun. 2009

PIttsburgh update

One Hill Coalition brought their case for a CBA to the city council this week. The council hasn't been involved with negotiations until now, and several of the council members pledged to su

pport the CBA effort. 

The Pittsburgh Post Gazette also reported that One Hill has come close to reaching an agreement with the mayor and other local officials. One Hill, however, wants to see the Penguins back at the bargaining table. 

Atlantic Yards CBA update

The Atlantic Yards Report posted a story today about the latest in a series of public relations efforts to highlight the benefits of the project. The most recent deals with the CBA.

The Atlantic Yards CBA certainly includes some important benefits, but these do not detract from the actual and perceived improprieties in its negotiation process (see here for details on the agreement). This publication understandably emphasizes the positive aspects of the CBA. Still, I'm not convinced that this CBA is so "historical" that it merits depiction as a weathered and august parchment document.

Peninsula Compost Co. CBA

On February 28, the City of Wilmington, DE, announced that a CBA has been negotiated between 14 community groups and Peninsula Compost Co., which plans on building a state-of-the art-, 20,000 square foot organic waste composting facility on a 25 acre site.

The project will create about 30 construction jobs and about a dozen additional permanent full time jobs. The CBA commits Peninsula to hiring locally, with a minimum goal of 20% for both minority and local hiring. After construction is completed, Peninsula has pledged to notify local residents of available jobs.

Peninsula will also operate a 24-hour hotline where residents can report complaints about truck traffic or odors. And the company has agreed to use truck routes that bypass neighboring communities as much as possible.

Once the project is up and running, Peninsula has agreed to give up to 1,000 tons of compost to the coalition community groups and residents.

The zoning board of adjustment approved of the project on February 27, just before the CBA was announced. Construction is expected to commence later this year, after the project has gone through the environmental permitting process.

Thanks to Marvin Thomas of the Southbridge Civic Association for getting me a copy of the CBA. It's available here.