CBA Resource Guide

What is the community benefits approach?

Major energy development and infrastructure projects provide significant opportunities, as well as challenges, for local communities. Although they often create new jobs and economic growth, they do not automatically result in sustained, local economic benefits. Increasingly, state and local governments and communities are looking for tools that help build sustained benefits to host communities.

The DOE Office of Minority Business and Economic Development (MBED) supports the nation’s energy goals by fostering entrepreneurship, innovation, and job creation for diverse communities in the high-growth energy sector and in DOE programs and research opportunities. MBED develops tools and resources to increase diverse participation in the energy economy, drive American innovation, and increase America’s competitiveness.

These materials are intended to provide information to communities and state and local governments on Community Benefit Agreements (CBAs) and how to bring them to fruition.

Crains: Duggan: ‘We gotta clear’ more land for new factories

Read the full article: https://www.crainsdetroit.com/detroit-homecoming/duggan-we-gotta-clear-more-land-new-factories

Speaking at the opening night of Detroit Homecoming, Duggan touted the city’s success in assembling more than 200 acres for Fiat Chrysler Automobiles to get the automaker to invest $2.5 billion in two auto plants that will bring nearly 5,000 new jobs to the east side.

The fast-tracked project has spurred interest from FCA suppliers to locate in Detroit. Dakkota Integrated Systems plans to build a 600,000-square-foot parts plant that will employ another 625 workers on the former Kettering High School property along Van Dyke Avenue in a deal that was orchestrated by the Duggan administration and the Detroit Economic Growth Corp.

“We know that if we can deliver quickly, cut through the bureaucracy, get the permits done quickly that we’ve got the workforce here that wants to work hard and be trained — and we think that’s the formula,” Duggan said. “And now I just have to assemble some more land.”

“We gotta clear it,” the mayor added in an on-stage conversation with KC Crain, publisher of Crain’s Detroit Business, which produces the annual Detroit Homecoming gathering of former metro Detroiters.

The mayor’s office emphasized the land assemblage for new manufacturing developments will come from land already zoned commercial and industrial, not residential neighborhoods.

At Detroit Homecoming VI’s opening dinner at the historic State Savings Bank on Fort Street, Duggan was joined on stage with FCA North America’s chief operating officer Mark Stewart to discuss the city and Auburn Hills automaker’s deal this spring to plant the first new vehicle assembly plant in Detroit since Chrysler’s Jefferson North Assembly Plant opened in 1992.

Back in February, the automaker gave Detroit 60 days to assemble the land it needed to convert its Mack Avenue engine plants into an assembly plant for Jeep Grand Cherokees and a new three-row Jeep SUV expected to roll off the new assembly line in the fourth quarter of 2020.

“It was about the best 60 days we ever invested in,” Stewart said.

FCA’s is adding on a 800,000-square-foot addition to its two Mack Avenue engine plants as part of the $1.6 billion investment in converting the facility into a new Jeep SUV assembly plant, Stewart said.

Construction companies working for FCA have moved quickly this summer to build the steel structure of the addition and siding began going up on the plant Wednesday, Stewart said.

Duggan and Stewart talked about FCA’s pledge to give Detroiters a one-month head start to apply and interview for jobs at the expanded Mack Avenue plant and modernized Jefferson North Assembly Plant.

“I basically said, ‘You can pretty much write all of the sections the way you want, but I’m going to write one section — and that’s the preference for hiring Detroiters,'” Duggan said.

Read the full article: https://www.crainsdetroit.com/detroit-homecoming/duggan-we-gotta-clear-more-land-new-factories

PublicHealthFund

Environmental ‘Public Health Fund’

September 16, 2019

The Fiat Chrysler expansion presents a new opportunity to consider community benefits that respond to Environmental Health issues around development projects that use public funds.  This is due to the environmental impacts of the project, the existing respiratory health crisis in the neighborhoods surrounding the plant and the “additional monitoring and community benefits” included in EGLE’s approval of FCAs “permits to install”.

“The permittee shall work with the City of Detroit, through the Community Benefits Ordinance to identify additional projects for the community surrounding the facility. No less than 180 days after beginning construction pursuant to Permit to Install No. 14-19, the permittee shall submit to the AQD District Supervisor and AQD Permit Section Manager a plan for the additional projects. Some examples of additional projects may include the installation of filters at area residences and local schools or fence-line monitoring.(R 336.1201(3))” https://www.michigan.gov/egle/

Existing Public Health Fund

The City of Detroit has an existing Public Health Fund that has not yet been funded. The Public Health Fund was created as part of the Bulk Solid Materials Storage Ordinance. The fund can receive donations from any source. Money in the fund remains in the fund at the end of the fiscal year and does not go into the general fund. Donations to the fund must be accepted by City Council and can include conditions. The expenditure of the money from the Public Health Fund must be approved by City Council.

https://detroitmi.gov/departments/buildings-safety-engineering-and-environmental-department/environmental-affairs/bulk-solid-materials-storage

The Public Health Fund can receive Environmental Community Benefits funds from FCA that will:

  1. Support health and environmental education activities centered on community learning and engagement which will prioritize resident training, public information; and community survey assessments.  
  2. Support environmental mitigations including purchase of air quality monitors; and the installation and maintenance of air filters in local schools, libraries, head starts location, senior residencies and other locations where vulnerable populations gather.  

Example: The Housing Trust Fund Coalition 

The Housing Trust Fund Coalition has been successful influencing policy intended to respond to Detroit’s housing crisis. In 2018, the coalition supported the creation of the Housing Trust Fund and organized to get it on the books. This summer the Affordable Housing Task Force was seated as an oversight committee. Thus far the Affordable Housing Task Force has been successful in driving $2 Million into the fund.

Free Press:“To that end, the HTFC spent two years organizing residents to pass an ordinance that created the Detroit Affordable Housing Development and Preservation Fund, which will collect 20% of commercial land sales revenue to build accessible, affordable housing. Through that effort, we were able to get $2 million allocated from the city’s budget to the housing fund.” https://www.freep.com/story/opinion/contributors/2019/07/30/detroit-needs-reliable-fund-affordable-housing-heres-what-council-can-do-it/1836610001/