Community Benefit

Agreements (CBA)
What is a CBA?

u A legally binding contract

u Signed by the developer and community

groups

u that requires the developer to provide

certain amenities and/or mitigation to the
local community or neighborhood in
exchange for the development to occur.
Examples of What Can be
Negotiated into a CBA
u Access to Affordable Housing
u Public Transportation
u Community Spaces
u Support of Small Businesses
u Support of local schools
u Living wage jobs requirement
u First access to new jobs by those living in the project
area
u Environmentally friendly construction
u Infrastructure improvements
Why do CBAs Work?

u Community benefits tools maximize returns on local government

investment in development.
u Community benefits programs can transform regions through
stronger, more equitable economies.
u Community benefits help generate public support for economic
development projects.
u Delivering community benefits is smart business.
u CBAs hold developers accountable for their promises to local
governments and residents.
u Public input results in better projects that benefit the whole
community and attract local customers.
u Community benefits are part of a smart growth agenda.
u Time is money, and projects with CBAs often enjoy a faster,
smoother entitlement process.
BB #61 Establishes a Process for CBAs
Host Community Committee
Neighborhood
Groups

Business Districts

Community
Host Community
Development Corps

Key non-profits
Aldermen

Other community
Facilitator(Coalition of representatives
Non-profits Developer

School District
Representative

Affordable Housing
Experts
Racial Equity

Arts and Culture

Process for Drafting CBA

Host Community
Committee (HCC)
formed

HCC holds
HCC signs binding
community meeting
agreement with
to get feedback on
developer
projects

HCC bring tentative HCC takes feedback

agreement back to and negotiates
the Host Community benefits with
for input/approval developer
Morgan Ford Project Ask

u For TGSNA membership to allow the Board of Directors

of TGSNA to participate in the CBA negotiation process
along with other business and community groups
u (A 10 year tax abatement will be contingent upon the
negotiation of a CBA)
Morgan Ford Project Financials
MorganFord Project
Financials Summary
u Current carwash brings in $42,223 in revenue to the City
(10 year timeframe)
u New project projects $265,118 in net new revenue to
the City (10 year timeframe)
u New project projects $14,736 in net new revenue to St.
Louis Public Schools (10 year timeframe)
u Developer asking for 10 year abatement
u $353,113 in forgone tax revenue to the City/Schools
over 10 years
Reason for Abatement
u The developer tried to do the project without
abatement and couldnt get financing
u Banks see giving a loan in Tower Grove South for new
residential construction as too risky because there
are not comparable projects. (Tower Grove South hasnt
seen a project like this in recent history)
Morgan Ford Project Benefits
u Supports the following goals of the the Tower Grove Neighborhoods Neighborhood
Framework and Visioning plan
u Improve neighborhood housing quality
u Provides connection to Central Corridor (most heavily trafficked bike corridor in the City)
u Supports implementation of the Gateway Bike Plan
u Investment in small neighborhood commercial districts
u Enhance north-south bicycle and pedestrian connectivity
u Connect residents to supportive services provided in the neighborhood (developer looking for
service tenant like a credit union.

u TGS has lost 350 rental units in the last 5 years due to conversions, this adds density in
accordance with the The carwash has long been a problem property that has not been
properly maintained
u The project receives 4.75 stars out of 5 by SLDC for not happening if not for the abatement
u It satisfies the but for test

u This would be the first new residential construction in TGS in almost 20 years and will
demonstrate that this area is capable of sustaining new projects
u The project has a solid urban design, is built up to the curb, and creates a more dense and
walkable community
u The developer lives in the neighborhood and is committed to the success of the
neighborhood
u The developer is a small developer, not one of the big guys who continually abuses the tax
incentive system
u The Morgan Ford Business Association wants the new residents that the project would bring
to the business strip
Timeline
u July 11th: Legislation introduced for 10-year abatement with a
clause making it contingent on a CBA.
u This is the last day that a bill can be filed at the Board of Alderman
before summer break
u The developer needs the bill introduced so they can begin the
process of trying to secure financing while the Board is on recess
u July 14th: Last day of session of the Board of Aldermen
u September 8th: The Board of Aldermen resumes meeting
u September 8th: A CBA and a letter of support needs to be signed
and submitted
u September 11th (week of): HUDZ committee meeting on approval of
the abatement
u Alderman comes to hearing with signed CBA and letter of support
for the neighborhood association
u Developer comes with tentative financing agreement contingent
upon abatement
u September 15th: Board bill on abatement gets its second reading
u September 22nd: Board bill on abatement gets perfected
u September 29th: Board bill on abatement gets passed
Question?
u Will the TGSNA membership allow
the Board of Directors of TGSNA to
participate in the CBA negotiation
process along with other business
and community groups?
Questions?

u Comments?

u Contact:
u Alderwoman Megan Green
u greenm@stlouis-mo.gov
u For more information on community benefit agreements
visit:
u http://www.forworkingfamilies.org/resources/policy-
tools-community-benefits-toolkit