Overview
The City of Cleveland has been utilizing Community Benefit Agreements (CBAs) for development projects for over a decade. Official legislation, the Community Benefits Ordinance (CBO), passed by the City Council in June of 2023, outlines a legal framework for how CBAs are applied, the process for how they are developed, and the kinds of benefits the City would like developers to prioritize. This ordinance also outlines expectations for publicly reporting contracting and workforce data. The CBO legislation went into effect officially in September of 2023.
The City of Cleveland recognizes its unique role in ensuring that development projects directly benefit the communities in which they are built and that public dollars benefit the entire community, including historically underrepresented minorities, women, and small businesses. While the baseline for a CBA includes meeting the MBE/FBE/CSB and local workforce targets the City has required for years, a strong CBA can build from that base and help impact our City in a myriad of other ways. An investment in time to discuss community benefits early in the project can create a more meaningful and impactful project for the community, the developer, and the City.
The City of Cleveland has designated two types of Community Benefits Agreements - Standard CBA and Expanded CBA.
A Standard CBA is for all projects receiving $250,000 or more in City assistance and under $20 million in cost (including residential tax abatements for projects under $75 million in total cost); the CBO outlines a set of mandatory community benefits.
An Expanded CBA is for all projects receiving $250,000 or more in City assistance with a project cost of over $20 million (including residential tax abatement projects over $75 million in total cost). An Expanded CBA consists of the mandatory community benefits listed in the Standard CBA; it must also be coupled with additional community benefits to be considered for legislative approval. The CBO provides a great deal of flexibility in determining the appropriate additional community benefits related to the project. The CBO offers categories, suggested considerations of additional community benefits, and associated requirements that must be met.
This ordinance also requires Developers to meet with community members to ask for their feedback on the project and any additional benefits they might like to see included in the agreement.
Once a set of community benefits is agreed upon, City Representatives will present the development project’s incentive package with the associated community benefits for first review by the Cleveland Citywide Development Corporation (CCDC), an advisory nonprofit board that helps the city with its real estate deals, and then to Cleveland City Council for legislative approval. CBAs must be presented at the same time the City administration presents the financial incentives for legislative approval.
The Developer must submit their Community Benefits Plan (CBP) via the online submission form on the OEO website. The specific objectives the Applicant commits to in its Community Benefits Plan (CBP) in quantifiable terms with S.M.A.R.T. milestones – Specific, Measurable, Achievable, Relevant, and Timely – and timelines wherever possible. If the S.M.A.R.T. method is not applied, the application may be rescinded. Applicants are strongly encouraged to clearly and concisely respond to each answer in the space provided.
The Developer must submit contracting, workforce data, and all other community benefits compliance information to OEO, who will then be required to share quarterly updates of this information with City Council and the public, via a public data dashboard.
Mission, Vision, & Purpose
Mission
Our unwavering mission is to create a vibrant, inclusive community that embraces diversity and empowers all residents to thrive. Through our steadfast commitment to providing affordable housing, growth opportunities for businesses, high-quality employment, public amenities, civic engagement, public health, fair allocation of resources, and fostering community connections, we will continue to build a better tomorrow for all.
Vision
Our vision is to create a brighter and more sustainable future by building an innovative and efficient physical environment that harnesses the power of public and private resources. Through collaboration and joint efforts, we aim to inspire sustainable positive change that encourages continued equitable growth to ensure that all can participate in the City of Cleveland’s economy.
Purpose
Community Benefits Agreements (CBAs) are legally binding documents that allow residents to benefit from development projects. CBAs can provide economic opportunities for residents, leading to economic growth and mobility. To ensure transparency and accountability, a Community Benefits Ordinance (CBO) is crucial, as it regulates and monitors developments that use public funds.
The Process
In order to initiate the development process, it is advised that the Developer arrange a meeting with either the Department of Economic Development or the Department of Community Development.
The Developer needs to have a well-defined project proforma, site plan, and development timeline before requesting a meeting with the administration. Doing so will enable the Administration to make well-informed decisions and facilitate a seamless and successful development process. The proposed terms of the development project will be subject to a thorough review by the respective department staff, who will subsequently determine whether or not to proceed with the incentive allocation process.
Before meeting with the Administration, the Developer should have:
- Proforma for the project
- Site plan
- Project development timeline
Types of projects:
- Department of Economic Development - Commercial or mixed-use development projects (including Tax Increment Financing (TIFs))
- Department of Community Development - Residential development projects (including Tax Abatements)
Please contact the appropriate department before submitting your Community Benefits Plan to the Mayor's Office of Equal Opportunity (OEO). Adhering to this procedure will help ensure your submission is processed efficiently and eliminate additional unnecessary delays.
The Mayor's Office of Equal Opportunity does not control the timing of your project.
Once the Developer has been instructed to proceed with their project, please submit the Community Benefits Plan (CBP) to the Mayor’s Office of Equal Opportunity.
Community Benefits at a Glance
Community Benefit Projects
FAQs
What is a CBA?
A Community Benefits Agreement (CBA) provides a framework for developers and community representatives to work together constructively toward the common goal of creating better and more equitable development projects. By establishing clear and enforceable obligations, CBAs encourage transparency, accountability, and collaboration, helping to build trust and foster positive relationships between developers and communities. Through this process, CBAs can play a vital role in promoting shared prosperity and ensuring that development projects deliver meaningful benefits to the communities they serve.
Who is Involved?
- Developers - The Developers seeking support for a new project are always involved in the negotiation of and are a party to the CBA.
- Community Coalitions - Community coalitions are a necessary party to any CBA to ensure that the community itself is engaged in the negotiation of a CBA and will benefit from the development.
- City Administration - City administration can assert their inclusive leadership by (1) being transparent about the project; (2) insisting on gaining broad community support for project approval; and (3) actively encouraging CBA negotiations without any attempt to influence them.
How long is the process?
The length of the community benefits agreement process is dependent upon effective and timely communication between all stakeholders, developers, and city administration. The City of Cleveland is committed to operating at the speed of business to ensure that all parties are progressing toward a final CBA closing date.
Are CBAs mandatory?
A CBA is required whenever a Developer is awarded a city financial incentive that equals $250,000 or more. For projects that have a total cost of 20 million or more are considered large projects are which required to have additional community benefits.
How to find certified contractors?
To find a list of City of Cleveland certified vendors, please visit the City of Cleveland website under the Office of Equal Opportunity webpage and click “Certified Vendor Directory” located in the Resources Links section.
What does it take to get certified as an MBE/FBE/CSB?
- Certification requirements
- Ready, willing, and able to perform work in the area it seeks certification
- Located in the Cleveland market area
- Owned and controlled at least 51% by a minority or female
- Required documents
- Affidavit of Certification (New)
- Identification
- Federal tax returns
- Articles of Organization or Incorporation certificate copy
- NAICS Codes
Note - Other documents may be required depending upon the type of business and the business structure.
What are the benefits of a CBA for the Community? Developer? Administration?
- Community:
- Job creation
- Local and diverse hiring and training commitments
- Living wage and other benefits
- Education partnerships between developers and community schools
- Support for local small businesses
- Improvements to open spaces, parks and playgrounds
- Affordable housing and rehabilitation
- Support for senior centers and child-care facilities
- State and/or local economic incentive packages
- Developer:
- Community support reduces risk for developers by fostering cooperation between government and community groups
- Developers get needed public subsidies and/or government approvals more reliably
- Community coalition agrees to support the project with public testimony and written statements
- Administration:
- Keep lines of communication open to ensure consistency with the city's policy goals
- Creates a fair and open process for establishing achievable targets within the community
- Creates transparency with community on development projects within the City of Cleveland
- Creates an opportunity to improve the local economy through dedicated job creation and small business utilization
What are S.M.A.R.T. Milestones, and why is this method required when submitting a CBP?
S.M.A.R.T. (or SMART) is an acronym used as a mnemonic device to establish criteria for effective goal-setting and objective development: Specific, Measurable, Achievable, Relevant, and Timely. This method is required because it helps the Administration understand the full scope of what the Developer proposes to eliminate ambiguity.