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in many cities, retail development is seen as a public responsibility
that requires the local government’s participation. As
cities become more active in planning retail development, providing
infrastructure and granting finance tools to achieve retail
goals, community groups are taking notice. People in the community
want to make sure that public money is spent wisely and is used
for the long-term benefit of residents affected by the development.
One tool used by community groups to ensure their concerns
are addressed is a Community Benefit Agreement (CBA). A CBA
is a project-specific contract that is negotiated between
representatives of various community organizations and the
developer prior to governmental approval of the project. This
agreement details specific benefits to the community that
will result from a development or redevelopment project. For
instance, the developer may agree to construct and operate
the project in a certain way and to provide specific improvements.
In exchange, the developer gains the community group’s
support of the proposed project.
CBAs give communities—particularly those neighborhoods
affected by the development—a voice in shaping the project
to fit their needs. Concerns such as historical preservation,
traffic and environmental issues can be addressed by the agreement.
Here are some of the more frequently negotiated issues in
a CBA:
- Hiring/Job Training. Developers may agree to hire
applicants from certain employment programs, or they may
agree to provide job training.
- Traffic. Developers may address community concerns
by creating traffic management plans.
- Space. The project may be required to provide open
space, green spaces or parks in either the development or
nearby neighborhoods.
- Compensation. The agreement may require that certain
jobs pay specific “living” wage rates and provide
certain benefits.
- Community Service Projects. Moneys may be set aside
for neighborhood improvements including childcare facilities,
youth centers, roads and street lighting.
- Drainage. Storm drainage projects can be part of
an agreement.
- Relocation Benefits. The agreement may specify
the amount of money to be paid to residents or businesses
displaced by the project.
CBAs are beneficial to retail developers. Because the community
coalition formally supports the development, the signed CBA
often reduces or eliminates costly delays a developer can
incur when getting municipal approvals and permits. In addition,
by working with the community to create the agreement, the
developer often gains local supporters who are ideally positioned
to help resolve unforeseen conflicts.
Ideally, Community Benefit Agreements are incorporated into
the development agreement between the city and the developer.
As part of the official development agreement, the CBA is
legally enforceable. A successful CBA process can make future
development projects easier and the process could become routine,
particularly for those communities that desire to match the
needs of the public with retail projects.
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Using Community Benefit Agreements for Retail Development - (continued) 
