Expanding Economic Opportunity for Local Residents and Business

March 19, 2015

#caseychat

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I. IntroductionII. BackgroundIII. The Context for Economic Inclusion

Efforts in East BaltimoreIV. Closing the Skills Gap and

Strengthening Workforce PipelinesV. Economic Inclusion Policies and

ProgressVI. Recommendations

Webinar Overview

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Our Panel

Ryan ChaoVice President for Civic Sites and Community ChangeThe Annie E. Casey Foundation

Victor RubinVice President for ResearchPolicyLink

Cheryl WashingtonSenior DirectorEast Baltimore Development Inc.

Ashleigh GardereSenior Advisor to Mayor Mitchell J. Landrieu and Director, The Network for Economic OpportunityCity of New Orleans

THE CONTEXT FOR ECONOMIC INCLUSION EFFORTS IN EAST BALTIMORE

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• Demolition of the existing properties and rebuilding for:– Biotechnology research and commerce campus: Science and Technology Park at Johns Hopkins

• Mixed use, mixed income community– Eager Park

The Development Framework

The Context for Economic Inclusion:Project Area 2006 Plan and 2011 Recommendations

Source: Forest City – New East Baltimore Partnership, 2012.

2006 2011 Recommendations

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Planned and Built Development

Planned (original) Planned (revised) Built (Spring 2012)

Housing 1,683 new, 389 rehab 478 new, 68 rehab

Retail 268,000 sq.ft. 100,000 sq.ft. 18,000 sq.ft.

Commercial 2,805,000 sq.ft. 1,800,000 sq.ft. 280,000 sq.ft.

Hotel 80,000 sq.ft. 160,000 sq.ft. 0

Source: Planned (original) data from Clinch, 2009. Planned (revised) and Built (Spring 2012) are from Forest City – New East Baltimore Partnership, 2012. 7

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• Projected jobs to be created: – 12,000 construction (2006-­2012) and

– 3,000 permanent (by 2013)• Number of people hired: – 4,692 construction (2006-­2014) – 950 permanent

• 641 local hires on construction;; 270 of these people came from pipeline

Project Job Creation and Hiring

Photo credit: Baltimore Integration Partnership.

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• Relocated residents have lower educational attainment and higher unemployment than East Baltimore residents overall• 80% make less than $25,000 a year• 38% not in the labor force (retired, in school or not looking for work)

Resident Characteristics

CLOSING THE SKILLS GAP AND STRENGTHENING WORKFORCE PIPELINES

Photo credit: Baltimore Integration Partnership.

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• Minimal education• Basic education• Advanced education

Workforce Development Strategies for Diverse Populations

Minimal Education

• Significantly less than high school• Strategies– Supported employment– Social enterprises– Alternative staffing organizations

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Basic Education

• High school diploma• Strategies– Linked learning– Paid experience– Bridge programs to career and technical education

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Advanced Education

• Some college or vocational• Strategies– Biotechnical training– Transferable skills– Incumbent worker development

Photo credit: BioTechnical Institute of Maryland Inc. 14

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• Expanding and sustaining a network– One-­stop centers– Dual-­customer approach

• Attracting high road employers• Increasing regional access to jobs– Baltimore Integration Partnership– Baltimore Opportunity Collaborative

Strengthening Workforce Pipelines

ECONOMIC INCLUSION POLICIES AND PROGRESS

Photo credit: Baltimore Integration Partnership.

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• Overall development• Equity ownership• Organizational diversity• Contracting• Retail and business• Developing a technical workforce• Incubator and lab space for start-­ups• Outreach• Community reinvestment

2002 Minority Inclusion Agreement

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Economic Inclusion Policies and Progress: East Baltimore

Local and Targeted Hire Goals (Percentage)

2011 Goal 2013 Goal Actual

Commercial 15% local23% Baltimore City12% East Baltimore

28% Baltimore City

Residential 20% local25% Baltimore City 12% East Baltimore

30% Baltimore City

Source: DPN group and Sage Policy Group Inc., March 2014.

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• San Francisco Local Hire Ordinance– 50% local by 2017;; 25% disadvantaged

• Los Angeles CRA Construction Careers– 30% targeted hire

• Boston Kroc Center – 51% local;; 51% minority;; 15% women

• Missouri DOT Workforce Development– 14.7% minority;; 6.9% women;; 20% on-­the-­job trainees

Local and Targeted Hire: Benchmarks

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Economic Inclusion Policies and Progress: East Baltimore

Contracting and Procurement Goals (Percentage)

Source: DPN group and Sage Policy Group Inc., March 2014.

MBE GoalActual

WBE GoalActual

Local GoalActual

Construction 2735.7

86.7

2032.4

Design, architecture, engineering

2119.4

1317.7

2027.4

Professional 1714.3

922.4

2052.6

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• New Orleans Office of Supplier Diversity– 35% DBE;; 50% local

• Los Angeles Alameda Corridor– 22% DBE

• Boston Kroc Center– 25% minority;; 10% women

Contracting and Procurement: Benchmarks

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• Supporting minority entrepreneurship and business growth– Starting new businesses (Neighborhood Development Center, St. Paul;; adapted in Detroit)

– Accelerating existing businesses (NorTech, JumpStart Inc., Northeastern Ohio)

– Anchor institutions (Penn local purchasing in Philadelphia;; mayor’s initiative in New Orleans)

Additional Goals Under Minority Inclusion Agreement: Examples

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• Community reinvestment fund– Missouri Department of Transportation fund

– Port of Oakland Social Justice Trust Fund– Portland Community Benefits Agreement funds

Additional Goals Under Minority Inclusion Agreement: Examples (cont.)

RECOMMENDATIONS

Photo credit: Baltimore Integration Partnership.

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• Collaborative leadership• New resources• Transparent and effective processes• Innovations in programs

Themes

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• A guarantor for equity and inclusion• A different kind of support system• A partnership for workforce development connecting neighborhood, city, region

Collaborative Leadership

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• Establish sustainable funding source• Create community reinvestment fund• Support minority-­owned businesses

New Resources

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• Revise the Minority Inclusion Agreement• Align advance planning with economic inclusion goals• Increase transparency and strengthen partnerships

Transparent and Effective Processes

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• Ensure job applicants are prepared to succeed• Engage all types of employers• Enhance education and training programs

Innovations in Programs

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East Baltimore Development Inc.

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City of New Orleans

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• At www.aecf.org: – Expanding Economic Opportunity for Local Residents and Business: www.aecf.org/resources/expanding-­economic-­opportunity

• At www.policylink.org:– Leveraging Anchor Institutions for Economic Inclusion: www.policylink.org/find-­resources/library/leveraging-­anchor-­institutions-­for-­economic-­inclusion

– America’s Tomorrow newsletter: www.policylink.org/focus-­areas/equitable-­economy/americas-­tomorrow-­newsletters

• ebdi.org/economic_inclusion

Resources

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For additional information:media@aecf.org

victor@policylink.orgcheryl.washington@ebdi.org

aggardere@nola.gov

Questions?

Developing solutions to build a brighter future for children, families and communities

www.aecf.org