Buffalo Partnership for Public Good calls for CBA

The Partnership for Public Good (PPG), which counts more than 50 partner organizations, is calling on Empire State Development Corporation and its subsidiary, Erie Canal Harbor Development Corporation (ECHDC),  to incorporate CBA requirements into its Canal Side project plans.

Canal Side is a 20 acre, $300 million mixed use development that's intended to revitalize Buffalo's waterfront. ECHDC, a quasi-public entity, will almost certainly award subsidies to Bass Pro and other private corporations that take part in the development. PPG wants to see community benefits attached to these subsidies, "to ensure that the massive public investment in the project produces authentic public goods." The partnership's priorities include living wage jobs, sustainable design and operations, support for local businesses, and affordable housing.

Reactions to the Sonoma Mountain Village CBA

The Sonoma Mountain Village CBA, announced last week, has already garnered some negative reactions. Lisa Schaffner, the mayor of Healdsburg, California, and the executive director of the Sonoma County Alliance, a public interest group and political action committee, is one of the agreement's critics. She believes that CBAs should only be negotiated for projects receiving public subsidies, and that the CBA for the privately financed Sonoma Mountain Village sets a precedent that could harm the area's business and development climate.

On the other hand, the developer and CBA coalition members see the agreement as contributing to the project's sustainability goals. The developer, Codding Enterprises, has pointed out it's "not an average kind of developer," and that "there is no one-size-fits-all way of looking at development." I would add that the chances of the CBA becoming a precedent for all privately financed developments is limited, given that CBAs are voluntary agreements. If a developer chooses to emulate Sonoma Mountain Village and pursue a triple bottom line, or if a developer wants to obtain community support or quell community opposition, a CBA may be a good fit. But entering into a CBA is not a mandatory part of the land use approval process, and experience with CBAs has demonstrated that developers often resist negotiations.  

Moreover, I would ask whether it really matters if a project receives subsidies. Sure, the receipt of public funds strengthens the case for a CBA, but the impacts of the project on the community will be the same regardless of how it's financed. And I question whether Sonoma Mountain Village is completely financed by private sources; most billion dollar projects receive some form of subsidy, whether it takes the form of infrastructure, tax abatements, environmental remediation, below market property sales, affordable housing incentives, or outright cash grants.

And setting a precedent for CBAs won't necessarily scare developers off. CBAs offer a lot of benefits to developers: they help to achieve positive community relationships; they ward off costly litigation and development delays; they can help a developer to meet sustainability and social equity goals; and they're great for public relations. 

But I would agree that CBAs set precedents for community coalitions, which can use the clout of past victories to attract new members, gain public and political support, and increase their leverage in future CBA negotiations. The Accountable Development Coalition, which neogiated the Sonoma Mountain Village CBA, has done just that. It's currently in talks with the developer of the New Railroad Square Project.

Kingsbridge Armory plans get approval from the planning commission; still no CBA

In New York, the city planning commission voted 8-4 yesterday to approve the Kingsbridge Armory redevelopment plans, despite Bronx Borough President Ruben Diaz's recommendation to reject the proposal unless the developer entered into a CBA. Amanda Burden, chair of the CPC, explained candidly that the CBA issue was not an appropriate one for the commission to consider: “For this application, as we have consistently held with other applications in the past, the issue of a Community Benefit Agreement including commitment to living wages should not weigh in our consideration of the merits of the land-use application for rezoning, disposition of City-owned property, and changes to the City Map.” The city council now must make a final decision on the project within 50 days.

The SugarHouse CBA

** This post was substantially updated on Jan. 18, 2010. Contact me here to obtain the archived original post. **

Plans for building new casinos in Pennsylvania have caused quite a stir in recent years (see here for information about the state's Gaming Control Board and here for opposition to the state's gambling policies).

The SugarHouse Casino project

SugarHouse was one of the casinos granted a license in late 2006, after gambling was legalized in the state in 2004. It now has plans to build a casino/entertainment complex on the waterfront in Philadelphia. Much of the opposition to the plans stems from anti-gambling sentiments, but other concerns have been raised. The Pennsylvania Historical and Museum Commission, for example, wants a more thorough review of the area, which is believed to include the site of a British fort from the Revolutionary War. And the Mayor of Philadelphia, Michael Nutter, has refused to pay the estimated $14 million in annual policing costs for SugarHouse and Foxwoods, another casino planned for Philadelphia.

The Pennsylvania Supreme Court pretty much approved the SugarHouse project in December 2007, when it held that the City Council's failure to act on its zoning and land use requests amounted to "deliberate inaction." (A similar decision was later issued regarding the other casino proposed for Philadelphia, Foxwoods.) The court ordered the city to designate the site as a commercial entertainment district and to give final approval to the project's development plan. (See this article in the Philadelphia Inquirer for a good summary, or read the whole opinion here.) In January 2008, Mayor Nutter attempted to revoke one of SugarHouse's licenses, claiming that the previous administration had rushed the process to get it approved before Mayor Nutter took office. The Pennsylvania Supreme Court dismissed the city's claims on standing grounds in June, 2009.

Community outreach

While the city was trying to get more control over the casino permitting process, SugarHouse began to campaign for public support. It committed to fund emergency services, use green building techniques, make payments to the city of $67 million over ten years, make sewer improvements, develop a comprehensive transportation plan and an economic opportunity plan (to increase minority and women participation in the casino's construction and operation) and to construct a publicly-accessible waterfront promenade as part of the project.

Despite these promises, a lot of people have negative beliefs about the impacts of casinos, including, in Philadelphia, the community group Casino-Free Philadelphia. As a way of getting additional public support, SugarHouse pledged to enter into a CBA.

Negotiations were held primarily with two community groups, FACT (Fishtown Action) and New Kensington Community Development Corporation. FACT was labeled as astroturf and "merely a front for SugarHouse", but it's unclear how much of the opposition to the CBA was really motivated by anti-gambling sentiments (rather than concerns about development impacts).

The Special Services District

The SugarHouse CBA is unique in being structured around a nonprofit Special Services District, although the SSD is somewhat similar the LDC that negotiated the Columbia University CBA. The SSD covers Fishtown, Northern Liberties, Old Richmond, and South Kensington, and its mission, as stated in the articles of incorporation, is “to mitigate the impact of Sugar House Casino functions and activities; to address other issues which affect the quality of life within the District; and to engage in any other activities which may lessen community tensions, combat community deterioration and improve the community as a place to live and work....” The District is controlled by seven voting members on its board of directors, all of whom serve without compensation. Voting members may not hold other public offices. These board members are elected by residents of the covered neighborhoods, save for the inaugural board. (The inaugural board members are to be appointed by two of the community groups that were involved in negotiations.) However, there’s also a nonvoting advisory board, made up of local officials.

Information about the SSD board members can be found here.

Interestingly, the Sugar House CBA has an indefinite term. The agreement is also light on consideration. Although the District agreed not to use any funding received by SugarHouse for litigation against the casino, the CBA specifically permits any District member to oppose the project in her individual capacity.

Annual funding

Under the CBA, SugarHouse agreed to provide substantial annual funding to the SSD: $175,000 annually between the project’s approval and opening, and $1 million annually after opening, to be renegotiated after 15 years. The money will be distributed for community programs, but the agreement doesn't include any clear guidelines as to how the money should be spent. The lack of guidelines could be interpreted as nontransparency, but it could also be seen as a way to maintain flexibility in funding decisions.

Other CBA provisions

• SugarHouse will establish a public complaint hotline for residents of the immediate neighborhood;
• Union labor will be used for construction of Phase I;
• SugarHouse agrees to a policy of union neutrality;
• Local union members will be able to sign up for preferential consideration by the construction manager; subcontractors (who will make most of the hires) will not be required to give a preference to local workers, but they will be encouraged to do so;
• SugarHouse will hold at least one job fair prior to opening to inform local residents of permanent job opportunities and eligibility requirements, and it will make good faith efforts to hire neighborhood residents;
• SugarHouse will create an internship program for neighborhood students with at least two available positions; SugarHouse will also offer a job training program for non-college neighborhood residents, with at least two available positions;
• SugarHouse will offer job counseling services to neighborhood residents for a year prior to opening;
• SugarHouse will give employees special training relating to problem gambling and alcoholism (employees will be trained how to recognize and deal with compulsive gamblers); SugarHouse will also provide brochures on problem gambling and posters to the District for distribution in the community;
• SugarHouse will use good faith efforts to hire local contractors, vendors, and suppliers;
• SugarHouse will use good faith efforts to ensure that riverfront access is not limited for more than 6 hours per week due to private functions (e.g., weddings, concerts);
• SugarHouse will distribute “reward” points that will be redeemable at local businesses, in order to stimulate spinoff economic activity;
• Meeting space for the SSD will be provided after construction of Phase II;
• SugarHouse will provide free parking to minimize its employees’ and patrons’ use of neighborhood parking spaces;
• SugarHouse will give the SSD $5,000 to use for free car washes during construction;
• SugarHouse will provide security on-site, for the public waterfront, and possibly outside the project if deemed necessary;
• SugarHouse will provide its own emergency medical services.

Links

• The SugarHouse CBA and SSD incorporation papers
• Project documents (e.g., development agreement, EIS, presentations)

CBA to cover residential development in Rohnert Park, Cal.

It was reported this week that Sonoma Mountain Village, a mixed use residential development proposed for a 200-acre former industrial site, will be covered by a CBA. The agreement was negotiated by the Sonoma County Accountable Development Coalition, which includes labor, housing and environmental groups.

Sonoma Mountain Village, which will have nearly 2,000 homes and cost $1 billion, hopes to be a sustainable project. In addition to following the city's green building ordinance, the project is the first in north America to be endorsed by One Planet Communities. Brad Baker, president and CEO of developer Codding Enterprises, suggested that the CBA fits into the company's sustainability mission. “When we originally came up with the concept of Sonoma Mountain Village," he said, "we wanted it to be something special and unique and be a mixed-use project and be green and sustainable.... By entering into these agreements, we are not just talking about it — we are doing it.” As another Codding Enterprises representative put it, "It all touches on social equity."

The CBA includes a number of important benefits, including a commitment to pay living wages, a promise of union neutrality, and a 15% inclusionary housing requirement. Other requirements related to transportation, environmental reviews, land use, water use, and open space preservation are included in the CBA.

$7.75 million CBA for Bloodvein First Nation in Manitoba, Can.

A memorandum of understanding was signed this week between the East Side Road Authority and Bloodvien First Nation, located along Lake Winnipeg in Manitoba, Canada, establishing the community benefits that will accompany construction of an all-season road. The agreement is based on another CBA that was reached in June between the road authority and Berens River First Nation. Among the benefits included in the CBA: the authority will establish a construction training program; construction jobs will go to members of the First Nation community; and Bloodvein First Nation will be permitted to use all harvested material for community purposes. The value of the benefits package has been estimated to be $7.75 million (Canadian, I assume).

Illinois Congresswoman joins calls for a CBA for the Postville, Iowa, slaughterhouse

The Postville Community Benefits Alliance, which is seeking to negotiate a CBA with the owners of a kosher slaughterhouse, is gaining some out of state support. In addition to several national Jewish organizations, an Illinois Congresswoman, Jan Schakowsky (D), wrote a letter in favor of the Iowa-based campaign.

High Risk Personal Loans

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MIP Probation Violation Should Not Result in Jail

This post was originally uploaded to the electronic criminal lawyer in February 2009.  It has regained some relevance given the perennial campus law enforcement sweeps for underaged drinking.  Re-posted for your consideration:

Recent discussions between criminal defense attorneys comparing notes about district court judges in Oakland and Genesse counties have revealed that many of their MIP clients are subjected to jail sentences when they subsequently plead guilty to a violation of probation. The law prohibits any jail sentence for a minor that pleads guilty to possession of alcohol. In recent years, some district court judges have characterized violations as contemptable conduct, a misdemeanor that carries up to 93-days in jail. Other judges have simply ignored the law, tossing the probation violators in jail despite the protestations of their attorneys.

As the practice has spread among some judges in both Oakland and Genesse counties, members of the Criminal Defense Association of Michigan have began to organize a coordinated defense to the wrongful jailings.

The absurdity, on both sides of this coin, is never more manifest than in the annual law enforcement ritual of underage drinking sweeps, especially on college campuses. On the one hand, the sweeps advance the goal of reducing alcohol-related damage and injury. On the other hand, it can be viewed as an exploitive device designed to raise revenue for university heights. College binge drinking has been with us for a long time; perhaps a fresh look, prompted by criminal justice statistics, will tell us something about our college-age children and thus, something about ourselves.

If you or your family member is faced with a violation of probation charge and the underlying conviction was an MIP, contact a criminal defense lawyer before going to court. You could very possibly save you or your family member some jail time.

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Chicago lost its Olympic bid... so there won't be a Chicago Olympics CBA

The International Olympic Committee today chose Rio de Janeiro to host the 2016 games, beating out Madrid and Chicago. As a result, supporters of a Chicago Olympics CBA won't have a development to negotiate over.