For the first time in decades, there is a resurgence of interest in city living. Retiring baby boomers, single profess-ionals, and young couples are investing in new, upscale residential units. Cities are investing in stadiums, transit centers, casinos, entertainment hubs, and hotels, often in partnership with private developers.

These trends are both a blessing and a curse for the low-income families within or adjacent to the construction. Although new development provides jobs, they are generally low-paying or entry level positions with little chance for advancement. New housing often isn’t affordable for local residents. In addition, trendy developments are often built on prime real estate, pushing low-income families to less desirable areas.

The result is that the ripple effect of develop-ment doesn’t always have the desired impact on those most affected by the change. Community benefit agreements (CBAs) acknowledge these impacts. They are structured to improve the quality of life for families in the area while taking advantage of the back-to-the-city trend.

What is a CBA? A CBA is a negotiated contract in which a developer commits to providing tangible community benefits in exchange for an agreement by local stakeholders that they will support the project being built. Because it is a written contract, it ensures that the developer’s promise of economic side benefits to adjacent neighborhoods will indeed occur. The contract is negotiated by a community coalition that usually includes religious leaders, environmental and housing advocates, schools, unions, residents, and local businesses. This group negotiates benefits that are tailored to their local needs.

Why would a developer agree to one? Once a developer commits to a project, it’s important to get the shovel in the ground as soon as possible. The faster they build, the faster they get a return on investment. Projects that stall due to community oppos-ition can cost a developer millions in land, engineering, and legal fees. By agreeing to tangible benefits and gaining community support, the likelihood of a project moving quickly through the approval and construction process is greatly enhanced.

Success depends on negotiating reasonably-priced community benefits with the developer. If you undertake one of these, your contract must provide two-way benefits at a reasonable cost. Otherwise, why would the developer agree to it?

What have others cities done? A survey taken in 2006 identified 40 CBAs that have been adopted, primarily in larger metro areas. Agreements cover transit hubs, stadiums, housing complexes, casinos, industrial parks, hotels, entertainment centers, and cable & wireless franchises. Most projects use taxpayer money to help cover costs. This indeed is key to negotiating a CBA. Cities have argued that if local taxpayers are contributing, they should be assured that the project will be a benefit, not a detriment, to inner city residents.

Components fully or partially funded by a developer under a CBA are noted in the sidebar. Each item serves the local community by raising the standard of living. Each item serves business interests by providing for a well-trained workforce, growth, and a good business reputation.

Not all CBAs have been successful in ensuring the success of a project. Several cities have negotiated CBAs for projects that have not yet been built or have been dropped. Reasons include the economic climate, funding problems, and unforeseen environmental issues.

Food for Thought: If you’re considering a CBA, here are some issues to work through.

• Who would you include in the community coalition? For a CBA to be successful, a diverse group of people, interests, and perspectives must negotiate it.
• Who will lead and organize the coalition? Finding a community advocate to lead the effort may be difficult. It’s hard work.
• Are the costs of displaced residents and businesses, increased traffic, and public subsidies worth the promise of new jobs, new housing, and other benefits?
• Who is in the best position to monitor the benefits agreed upon? For some projects, it may be the city’s housing department or a group within the coalition.
• What recourse do you have if the developer doesn’t live up to the agreed on benefits?

Lastly, is your wish list of demands too aggressive? Your goal should be to promote economic vitality, not chase it out of town.

Summary: Ensuring economic vitality, social justice, and environmental stewardship are keys to inner city redevelopment. A community benefit agreement can promote growth in all three areas. It can entice development on under-utilized or contaminated real estate, provide jobs and a career ladder, and improve the quality of life for working families.

A CBA can be an advantage to developers too. It garners support for their project, reduces the time it takes to put their shovel in the ground, and addresses community impacts. Governmental officials also like them: they help ensure that taxpayer money, often used to support a project, is a good investment.

Community benefit agreements are fairly new, but hold enormous potential. If you’re considering one, there are a number of good references to consult. One is Community Benefits Agreements, Making Development Projects Accountable, by Julian Gross.