Community Benefits
Ordinance
Framework and Next Steps
PRESENTED 03/29/22
Aggie Square Settlement Agreement
• City Council to consider a Community
Benefit Ordinance
• CBAs for significant development
projects with public financing and/or
incentives.
2 Developing CBO
Framework
Case Study CBOs
• City of Detroit, Michigan
• City of Richmond, California
4 CBO Framework
5 Trigger
• What type and size of projects will be required to create a community benefit agreement?
Benefits
• What benefits could be included in the community benefit agreement?
Oversight
• What is the accountability process? Who would be on the oversight committee and what methods would ensure enforcement?
Metrics
• What metrics should be included to ensure the Community Benefits Agreement is effective?
Citywide Inclusive Economic Development
Investment Guidelines
6 • Guidelines to assist the City in evaluating
potential investments
• Include
• Types of Community Benefits
• Evaluation Metrics
CBO Components
Trigger
What types and size of projects trigger a CBA?
• Define “significant development projects”
• Dollar Threshold
• Percent of project cost
8 City of Detroit, MI
Community Benefits Ordinance applies when a
development project:
Tier 1
• Is $75 million or more in value and includes $1 million in total City investment including tax abatements or below- market value land transfer
Tier 2
• Is $3 million or more in value includes $300,000 in total City investment including tax abatements or below-
market value land transfer
9 City of Richmond, CA
Community Benefits Ordinance applies when a
development project:
• Receives any public financing or contribution over
$100,000,
• Receives a transfer of ownership or lease of right to occupy any City-owned real property (at or below
market value), OR
• Is the subject of a development agreement.
10 Benefits
11 • Benefits that have been included in CBAs
include:
• Living wage requirements
• “First source” hiring programs
• Space for neighborhood-
serving centers such as
childcare, farmer’s markets,
cultural centers, etc.
• Environmentally compliant
changes in facility operations
• Emissions reductions and traffic
rerouting
• Construction of parks,
recreational, open space and
other community facilities
• Community input into
proposed development
planning and design
• Community input and oversight
committees in on-going
decision-making efforts
• Construction of affordable
housing
• Environmental improvements
such as stormwater
infrastructure, continuous air
quality monitoring, noise and
traffic reduction, etc.
Other Ordinance Benefits Considerations
• City of Richmond
• Baseline community benefits
• Community Benefits Fund
• Detroit
• No specific benefits listed
12 Benefits –
Aggie Square Settlement Agreement
• Long term small/local business protection
• Anti-Displacement Strategies
• Production of affordable housing
13 Citywide Inclusive Economic and
Community Development Strategy
• Criteria
• Public Benefit
• Mobility
• Housing Supply, Affordability, Quality, and Integration • Workforce Development
• Employment Opportunities for Disadvantaged Populations • Business Diversification
• High-wage Industry Growth
• Sustainability
• Public Health and Wellness
• Public Safety and Emergency Response
• Arts and Cultural Amenities
• Youth and Education
14 Oversight
What is the accountability
process?
15 City of Sacramento Oversight
Informal Process
• Investment Committee
Formal Process
• Measure U Committee
16 Oversight - Enforcement
17 • Detroit – claw back provisions for City
funds
• Richmond – does not contain
enforcement provisions
• Aggie Square – Meet and Confer process
Metrics
• Detroit – Annual Compliance Reports
• Richmond – Ordinance remains silent on metrics
• Aggie Square – baseline metrics
• City of Sacramento - Inclusive Economic
Development Investment Funding Guidelines
18 CBO Next Steps
CBO Next Steps
• Collaboration with SacIWD
• Community Outreach
• Business/Development Community
• Community Groups
• L&L Committee review of draft CBO
20 CBO Framework
21 Trigger
• What type and size of projects will be required to create a community benefit agreement?
Benefits
• What benefits could be included in the community benefit agreement?
Oversight
• What is the accountability process? Who would be on the oversight committee and what methods would ensure enforcement?
Metrics
• What metrics should be included to ensure the Community Benefits Agreement is effective?
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