Building Equity: The Impact of Community Benefit Agreements

Picture a city where every new development doesn't just bring shiny buildings and economic growth but also lifts the lives of all its residents. This vision is increasingly becoming a reality as communities and developers embrace Community Benefit Agreements (CBAs) to ensure that growth is inclusive and equitable for all stakeholders.

In today's world, sustainability isn't just about green buildings and energy efficiency; it's also about creating communities where everyone has a place. Social equity is becoming a cornerstone of sustainability , recognizing that for a city to thrive, all its residents must be empowered to shape and have access to the benefits of development. It's about ensuring that as our cities grow, they grow for everyone.?

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The Role of Community Benefit Agreements (CBAs)?

Community Benefit Agreements (CBAs) are legally binding contracts between developers and community groups. They are designed to ensure that large-scale development projects address the needs of the local community, particularly those who might otherwise be marginalized during the process, like local businesses and low-income residents.??

CBAs typically include a range of provisions based on local community needs. Some common examples include providing affordable housing, local hiring, and including community services such as childcare and education centers.?

The History of CBAs?

While the concept of CBAs as we know them today is relatively recent, their roots can be traced back to earlier efforts to protect local workers and communities during major public work projects.??

The primary foundation of CBAs is the Davis-Bacon Act of 1931, which established prevailing wage requirements for workers on public projects. The act was a response to the exploitation of workers during the Great Depression when contractors would bring in low-wage workers from other regions, undercutting local wage standards, and harming local economic well-being. By ensuring workers were paid fairly, the Davis-Bacon Act aimed to protect local communities from the adverse effects of large-scale federal projects.?

The spirit of the Davis-Bacon Act is the precursor to modern CBAs. While the Davis-Bacon Act focused specifically on wages, CBAs expand on this idea to include broader community benefits. This ensures large projects contribute positively to the well-being of an entire community, not just developers and outside interests.?

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The Nashville East Bank Development: A Case Study?

The Nashville East Bank Development is an example of how CBAs are showing development. It is a transformative project that will reshape a 550-acre area along the Cumberland River, which is currently a disconnected industrial area. This development, anchored by the new Tennessee Titans stadium , is poised to become one of the city's most vibrant neighborhoods that combines commercial and residential development with green spaces. However, the project's impact on the community has been a central concern , particularly regarding affordable housing and social equity.?

The East Bank development's master plan, shaped through extensive community input and CBAs , includes a commitment to creating 1,550 residential units, with at least 695 of these designated as affordable housing. These units are crucial in a city where affordable housing is in short supply, particularly in centrally located areas like the East Bank.??

By integrating affordable and workforce housing into the heart of the city, the development ensures that the benefits of urban investment are shared more equitably. The commitment to affordable housing is enshrined in a 99-year ground lease agreement , ensuring that these units remain accessible to low- and middle-income residents for generations to come.?

Building Equity with Affordable Housing

One of the key players in this effort is Holladay Ventures , a developer known for its commitment to creating sustainable, affordable housing. In anticipation of the East Bank Development and in partnership with the Urban League of Middle Tennessee (ULMT), Holladay Ventures is developing Park24 , a 140-unit development in nearby McFerrin Park for those earning 30% to 80% of the area's medium income. Additionally, the development will include an "Empowerment Center" run by the ULMT that provides education and employment services for the local community.

Taking it one step further, Holladay Ventures is not just stopping with affordable housing but is also committed to achieving Enterprise Green Communities certification and Energy Star Building certification for its Park24 development. Emerald Built Environments is spearheading this effort to incorporate sustainable design into the affordable housing project. This will help reduce the project's environmental impact and ensure a healthy living environment for tenants.???

?Park24 is part of many more projects led by Holladay Ventures in the area, including 650 planned units adjacent to the new Titans stadium. Holladay Ventures' involvement in the East Bank development and in neighboring communities is a prime example of how developers can contribute to sustainability and social equity.?

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The Broader Impact of CBAs on Social Equity and Sustainability?

CBAs are gaining traction across the United States as a powerful tool to ensure large-scale redevelopment projects benefit local communities. These agreements are becoming more popular as they offer a structured way to address the social and economic impacts of development.?

From Detroit to Los Angeles , CBAs have been successfully integrated into major projects, mandating affordable housing, local hiring, and other community services. This trend reflects a growing recognition that sustainable development must include social equity as a core component. As more cities and developers adopt CBAs, there is a strong indication that they could become standard practice in major redevelopment projects nationwide.?

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Strengthening Social Equity through Sustainable Development??

CBAs embed community values into the fabric of development agreements to help reshape urban landscapes more equitably and sustainably. This should be on the radar of developers as CBAs continue to become more commonplace. Sustainable development certifications, such as LEED for Cities and Communities and Enterprise Green Communities , can further bolster these efforts by providing frameworks that prioritize energy efficiency, healthy living environments, and overall environmental responsibility — as seen in Holladay Venture's Nashville project.?

These certifications align perfectly with the goals of CBAs, enhancing their impact and ensuring that development is not only equitable but also sustainable. At Emerald Built Environments, we help clients navigate the complexities of sustainable development . Whether you're pursuing certifications like LEED or looking to integrate CBAs into your projects, our expertise can guide you toward creating thriving and inclusive communities. Reach out to learn more about how we can support your development goals.?