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Major economic development projects and infrastructure investment can present both tremendous opportunities and significant threats for communities and residents. Using a community benefits approach, as a local government official you have powerful tools available to ensure that these projects provide the greatest social, economic and environmental benefits while also not harming surrounding neighborhoods. In short, community benefits are assets available through economic development that meet real community needs. Examples include community access to living wage jobs, affordable housing, health and community services and open space.
The Maine Center for Economic Policy (MECEP) was retained by the Portland Independent Business and Community Alliance to collect and analyze data related to the economic impact of businesses in Portland, Maine. The primary purpose of the study was to quantify the impact of locally owned businesses compared to national chains on the local economy. MECEP's analysis found that in general every $100 spent at locally owned businesses generates an additional $58 in local impact. By comparison, $100 spent at a representative national chain store generates $33 in local impact. Stated differently, MECEP found that money spent at local businesses generates as much as a 76% greater return to the local economy than money spent at national chains. These findings are consistent with similar studies conducted in other states and can vary by business type.
The City of Seattle supports construction jobs and meaningful employment for those in our community through programs that prepare and train workers for careers with family-sustaining wages. In early 2015, the Seattle City Council adopted a new City law, proposed by Mayor Ed Murray, to create construction career opportunities for those in our community.
Small businesses are the lifeblood of the economy in the United States. Based on data from the U.S. Census Bureau, the Office of Advocacy at the U.S. Small Business Administration documented that small businesses accounted for over 92% of the net new jobs creation between 1989 and 2003. The smallest among the small businesses (those employing fewer than 20 employees) accounted for 85% of the net new job creation over the same period. In essence, the vast majority of the new jobs created in the economy come from the very small businesses. Of the total 21.8 million jobs created between 1989 and 2003, small businesses under 20 employees created 18.6 million jobs, small businesses with between 20 and 500 employees created 1.5 million jobs, and large businesses and companies (with over 500 employees) created only 1.7 million jobs. Similarly, while small businesses created net new jobs in 12 of those 14 years, large businesses eliminated more jobs than they created in 5 of those 14 years.
An ordinance requiring project labor agreements to promote hiring of under-employed and unemployed workers.
Public construction projects are an expenditure of public tax dollars; as such, public agencies have an opportunity to develop policies for public construction projects to benefit taxpayers with employment and business opportunities. Targeted hire initiatives create institutional mechanisms to increase the participation of socially and economically disadvantaged workers and businesses in public construction projects based on work availability. Many public agencies have used targeted hire to leverage their investment in construction into good jobs for those who need an economic boost. For communities that experience historic disinvestment and chronic un- and underemployment, such work can create lasting stability for families and a pathway to revitalize the local economy.
The purpose of the Community Benefits Program for the North Hollywood Redevelopment Mixed-Use Project is to provide for a concerted and coordinated effort on the part of the City, the Agency, and the Developer to extend the benefits of the Development to the community. It should also serve to maximize community involvement in the planning, development and use of area resources to ensure that low-income individuals residing in the Valley Community benefit from the Development. For these reasons, and in consideration of mutual promises, undertakings, and covenants, the adequacy of which the Coalition and the Developer hereby acknowledge, the Coalition and the Developer, on behalf of themselves and their respective successors, partners, and assigns, agree to the terms set forth in this Community Benefits Program.
An executive order outlining the process for considering environmental concerns and equitable development in public contracting.