[Flash Walken]

Now, members of the Detroit City Council want to pass an ordinance that will hold developers seeking public money accountable: They'll have to work out a community benefits agreement (CBA) with community leaders. A CBA is a legally binding pact covering everything from local hiring requirements and environmental concerns to redevelopment of public space and infrastructure. It's a way to assuage the fears of current residents wary of displacement and change and ensure the public's money is put to good use. It would be the first law of its kind in the country.

"We are allowing these large corporations—companies that could build a hockey arena without our money—to get in the corporate welfare line and take resources away from us," Rashida Tlaib, a Michigan state representative who serves Detroit, told me. "In exchange for what?"

The hockey arena Tlaib mentioned is for the city's beloved Red Wings, owned by pizza baron Mike Ilitch. The Ilitch family, whose net worth is estimated at $3.2 billion thanks in part to their Little Caesars pizza empire, received $284.5 million in public money to build a new, $450 million arena in the city's Cass Corridor neighborhood. (They are desperately and vapidly rebranding it as the "arena and entertainment district.")

While the Ilitch family was finishing up its honeypot stadium welfare deal last year—not to mention a wildly below-market rate $1 land transfer for 39 vacant parcels—they refused to sign a CBA that would ensure a certain percentage of permanent, non-construction jobs at the arena went to Detroiters. A group of locals formed the Corridors Alliance in an attempt to engage with the Ilitches, but their efforts were futile. The Ilitches did, however, agree to a mayoral executive order that demanded 51 percent of construction jobs go to residents and 30 percent of construction contracts go to local businesses. (The mayoral order, like Marathon's hollow promise, is not legally binding.)

Los Angeles set the model in 2001 when the Staples Center signed a comprehensive CBA that provided $1 million for neighborhood park improvements, required HR to target residents displaced by the development for hiring, and invested in job training programs, among other concessions. In Pittsburgh, a CBA ensured jobs for the Consol Energy Center and a new hotel nearby went to locals and minority workers—and, as of 2011, 47 percent of the 522 new jobs went to minorities.

The proposed ordinance in Detroit would take what Los Angeles and Pittsburgh have done a step further. It would require developers to engage in a CBA. Under the most recent draft of the ordinance, any project totaling more than $15 million in investment (or $3 million in renovation or expansion) seeking at least $300,000 in public tax dollars—from tax abatements to land transfers—will have to enter into a community benefits agreement. Developments between $3 million and $15 million are encouraged, but not required, to execute a CBA. Developments funded entirely by private money are exempt.

http://deadspin.com/has-detroit-foun...-st-1684944648