Leveling the Playing Field: Cleveland's Proposed Legislation Aims to Boost Local and Minority-Owned Businesses

Introduction

The Cleveland City Council has proposed legislation that could change how the city does business with developers who receive tax breaks and incentives from the city. The new proposal ties community benefits to development projects, creating a "win-win" situation for developers and the community. In addition, the proposed legislation requires developers to offer a range of benefits, including mentorship programs, resident-employment goals, and regular engagement with community stakeholders.

Background: The Need for Tangible Benefits from Development Projects

Cleveland has been experiencing a development boom in recent years, with large-scale projects such as the new Sherwin-Williams headquarters and renovations to the city-owned FirstEnergy Stadium. These projects have received tax breaks and other incentives from the city to help fund their construction. However, there has been growing concern among Cleveland residents about the lack of tangible benefits from these projects. Many residents feel that they are not seeing the economic benefits that were promised by these developments.

The Proposed Legislation: Tying Community Benefits to Development Projects

The Cleveland City Council proposes legislation that addresses these concerns by tying community benefits to development projects. The proposed legislation requires developers who receive at least $250,000 in taxpayer financial assistance to offer a range of benefits to the community. These benefits include:

• Developing a plan to meet participation goals for minority-owned, women-owned, or Cleveland-area contractors.
• Drawing up a plan to meet the city's resident and low-income employment goals for the project.
• Participating in mentor-protege programs.
• Offering apprenticeship and internship opportunities for Cleveland residents.
• Committing to meeting regularly with community stakeholders.
• Providing quarterly reports to the city.

If a project costs at least $20 million, the proposed legislation asks developers and city departments to work additional benefits into the contract. These options include hosting job fairs, doing neighborhood infrastructure work, and offering joint-venture opportunities to women- and minority-owned firms.

The proposed legislation also directs Mayor Justin Bibb's administration to create a public dashboard of community benefits statistics. The numbers on the board must include the revenue directed toward women- or minority-owned businesses and revenue to Cleveland residents, parsed by race and gender.

The Impact of the Proposed Legislation on Cleveland Residents

The proposed legislation could significantly impact Cleveland residents by increasing the tangible benefits they receive from development projects. By requiring developers to offer mentorship programs, apprenticeship and internship opportunities, and regular engagement with community stakeholders, the proposed legislation seeks to create a more equitable and inclusive economic environment in Cleveland.

The proposed legislation also has the potential to boost local businesses, particularly those owned by women and minorities. By setting participation goals for these businesses and requiring developers to offer joint-venture opportunities, the proposed legislation could help level the playing field for small and minority-owned businesses in Cleveland.

In addition, the proposed legislation could help increase employment opportunities for Cleveland residents, particularly those in low-income communities. By requiring developers to draw up plans to meet resident and low-income employment goals, the proposed legislation seeks to create more job opportunities for Cleveland residents and reduce the city's poverty rate.

Conclusion

The proposed legislation by the Cleveland City Council seeks to create a more equitable and inclusive economic environment in Cleveland by tying community benefits to development projects. The proposed legislation could increase the tangible benefits Cleveland residents receive from development projects by requiring developers to offer a range of benefits, including mentorship programs, resident-employment goals, and regular engagement with community stakeholders. The proposed legislation also has the potential to boost local businesses, particularly those owned by women and minorities, and increase employment opportunities for Cleveland residents. If passed, this legislation could be a significant step toward a more equitable and inclusive.

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Frequently Asked Questions (FAQs)

What is the proposed legislation by the Cleveland City Council?
The proposed legislation seeks to tie community benefits to development projects and requires developers who receive at least $250,000 in taxpayer financial assistance to offer a range of benefits to the community.

What benefits are required of developers under the proposed legislation?
First, developers must offer a range of benefits, including mentorship programs, resident-employment goals, and regular engagement with community stakeholders.

What happens if a project costs at least $20 million?
If a project costs at least $20 million, the proposed legislation asks developers and city departments to work additional benefits into the contract. These options include hosting job fairs, doing neighborhood infrastructure work, and offering joint-venture opportunities to women- and minority-owned firms.

What is the purpose of the proposed legislation?
The proposed legislation aims to create a "win-win" situation for developers and the community while increasing the tangible benefits that Cleveland residents receive from development projects.

Why is there a need for tangible benefits from development projects in Cleveland?
First, many Cleveland residents feel they need to see the economic benefits promised by large-scale development projects in recent years.

What are some examples of large-scale development projects in Cleveland?
Examples of large-scale development projects in Cleveland include the new Sherwin-Williams headquarters and renovations to the city-owned FirstEnergy Stadium.

What is the proposed legislation's impact on local businesses?
The proposed legislation can potentially boost local businesses, particularly those owned by women and minorities, by setting participation goals for these businesses and requiring developers to offer joint-venture opportunities.

How could the proposed legislation impact employment opportunities for Cleveland residents?
The proposed legislation could increase employment opportunities for Cleveland residents, particularly those in low-income communities, by requiring developers to draw up plans to meet resident and low-income employment goals.

What kind of dashboard is the proposed legislation directing Mayor Justin Bibb's administration to create?
The proposed legislation directs Mayor Justin Bibb's administration to create a public dashboard of community benefits statistics, including revenue directed toward women- or minority-owned businesses and revenue to Cleveland residents, parsed by race and gender.

What is the ultimate goal of the proposed legislation?
The ultimate goal of the proposed legislation is to create a more equitable and inclusive economic environment in Cleveland by increasing the tangible benefits Cleveland residents receive from development projects.