promoting the community and economic development of plainfield[1]
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8/2/2019 Promoting the Community and Economic Development of Plainfield[1]
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PROMOTING THE COMMUNITY AND ECONOMIC DEVELOPMENT OF PLAINFIELD: A
STUDIO PROJECT CONDUCTED BY THE EDWARD J. BLOUSTEIN SCHOOL OF
PLANNING AND PUBLIC POLICY
Project Instructor: Dr. Roland AnglinProject Manager: Katie Brennan
Project Associates: Tynisha Beard, Quincy Bell, Aaron Fullilove, Steven Geddes,Khalil Hamiduddin, Emily Hill, Julie Krause, Mathew Linek, Stacy
Perrine, Tiffany Sims, Shawn Tucker
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EXECUTIVE SUMMARY
The City of Plainfield, New Jersey, is an older suburb. Called the ―Queen
City‖ for its once central role in Union County, Plainfield is now a city
challenged by 40 years of demographic shifts (white-to-black now black-to-
Latino; see Table 1). The shifts have brought many middle-class residents to a
city famed for its housing stock, but over the years the shifting demography has
also brought a significant number of very low-income families (see Table 2).
The city council and mayor are actively trying to bolster the economic base of
the city and generate revenues needed to avoid future budget cuts and a
resulting diminution of the city‘s quality of life.
Table 1
Race By Percentage of Total Population
Year
1990
Year
2000
Year
2010
Total population 100% 100% 100.0%
One race 95.4 95.8
White 26.5 21.4 23.5
Black or African American 65.7 61.8 50.2
American Indian and Alaska Native 0.5 0.4 0.9
Asian 1.0 0.9 1.0
Native Hawaiian and Other Pacific Islander 0.1 0.1 0.1Some other race 6.3 10.8 20.1
Two or more races N/A 4.6 4.2
HISPANIC OR LATINO
Hispanic or Latino (of any race) 15.0 25.2 40.4
Not Hispanic or Latino 85.0 74.8 59.6
Trends in Race, From 1990-2010
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Data from the U.S. Census Bureau
Table 2: Trends in Income Distribution amongMarried Couples 2000-2009
Subject Married-couple Families 2000 Married-couple Families 2009
Total 6,004 5,459
Less than $10,000 2 2.3%
$10,000 to $14,999 1.8 2.5%
$15,000 to $24,999 6.1 5.9%
$25,000 to $34,999 7.6 7.0%
$35,000 to $49,999 13.3 8.9%
$50,000 to $74,999 25.5 20.6%
$75,000 to $99,999 18.2 17.3%$100,000 to $149,999 18 19.4%
$150,000 to $199,999 5.2 9.1%
$200,000 or more 2.3 7.1%
Median income (dollars) N/A 78,701
Mean income (dollars) N/A N/A
The citizens and elected officials of Plainfield believe that a healthy local
economy requires a solid strategy to initiate and sustain growth. Such a
strategy must include the development of a strong and diverse labor force. The
city has initiated several proactive measures to build the local economy through
growth and clustering of industries along with Transit Oriented Development.
While these plans progress, the city recognizes the need for a connected
strategy that encompasses:
The need for strategic partners to insure growth and development.
A growth policy that capitalizes on local and regional assets.
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An incremental and sustainable employment initiative to attract and
address the city‘s diverse demographic.
THE PRODUCT
The council and the mayor requested that the Edward J. Bloustein
School conduct consecutive studios detailing emerging trends and
innovations in local and community economic development. The product(s)
from this studio will be:
A Phase I report composed of case studies looking at innovative
strategies from around the United States along with a set of
recommendations for Plainfield‘s economic development.
A presentation to the mayor, council, and economic development
steering committee (composed of key stakeholders) that the Edward
J. Bloustein School will help staff and manage.
The third and last product (Phase II) will be to manage the productionof a market study that will combine surveys of Plainfield stakeholders,
business owners, and others who can provide strategic direction on
economic development. These Plainfield interviews will be
supplemented by surveys from regional and local economic
development experts. These surveys will be compiled and combined
with the case studies to produce a strategy report to the City of
Plainfield.
PHASE I METHODOLOGY:
Phase I methodology encompassed the following:
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Review of existing economic development plans for Plainfield
going back fifteen years.
Broad national scan of local and community economic
development practice.
Targeted use of economic development functional areas such as
downtown redevelopment, small business development,
workforce development, beautification, and branding to search
for and present the case studies.
Limited interviews with stakeholders to establish focus and
direction for case studies.
MAJOR FINDINGS AND RECOMMENDATIONS
While Plainfield is blessed with many financial, social, and human
assets, it has not gone through the type of detailed inventory of those
assets necessary to produce a strategic direction that is widely
accepted by stakeholders and the public. As a result, although Plainfield
has commissioned several well-meaning economic development plans,none has employed a broad-gauged assessment that produces a
realistic strategy for the municipality. Our major recommendation is that
Plainfield establish a six-month planning process that produces a
written plan to establish Plainfield 2021, a process for improving the
city‘s economy and quality of life.
Any plan for economic resurgence in Plainfield must harness the people
power and culture of the Latino community now emerging as a
demographic force.
Educated workers are central to attracting and retaining employers of
scale central to economic resurgence. Economic development and
improvement of educational outcomes are not thought of in the same
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vein in Plainfield. This presents a dichotomy that weakens any possible
economic development strategy.
Plainfield‘s social and economic networks are significant, but these
networks need to be enhanced and made more intentional and
coordinated to accomplish the complex work of economic renewal.
While large-scale economic development projects can help expand the
ratable base of Plainfield, smaller projects, such as branding, can
improve the town‘s identity and Internet presence that should
commence immediately.
Plainfield has a vibrant small business sector that has traditionally
served the needs of local residents. Not much is known about the
capacity of these businesses to increase their local and regional market
share, not to mention profitability. These businesses should be
surveyed with the formal goal of assessing strengths and challenges.
Plainfield notably lacks a nonprofit, community-based development sector. The
public sector cannot address all the challenges of economic and community
development. Plainfield must develop such a sector in the next ten to fifteen years
to see significant improvement in its economy and quality of life.
Plainfield must focus on and expand its administrative capacity to manage aneconomic development plan of scale. Economic development is a time-consuming
effort. Economic development now proceeds with a dedicated but numerically
limited staff for a town of its size. We recognize that budgets are tight, but the
strategic planning process should closely examine how to increase the capacity of
the town to implement a dedicated economic development strategic plan.
THE STATE OF LOCAL AND COMMUNITY ECONOMIC DEVELOPMENT
Part of our charge was to help Plainfield stakeholders connect with
emerging trends in the inextricably linked fields of local and community
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economic development. Local and community economic development is a
significant force for place and people revitalization in the United States.
Encompassing a range of activities, institutions, and policies, local and
community economic development seeks to improve the quality of life and
promote economic opportunity, helping residents engage in mobilizing and
building assets that will in turn help improve their individual and collective
future. Such assets include public investment, philanthropic investment,
capital, human capital, social networks, natural resources, cultural traditions,
and community leadership.
The extent to which communities can coordinate and use their assets
for economic development is a function of their ability to make collective
decisions (social capital), stock development experience, and access external
assets that can augment their own. This emerging framework for local and
economic development is extremely relevant for local governments faced with
sharp demographic changes, the force of globalizing capital and industry, and
present recessionary forces that is challenging municipal budgets.
Globalization, however defined, encourages integration of regions and
markets in the process challenging the boundaries of national states and their
economies. If the increasing inability to control local economic circumstances
is not enough, increasing metropolitan development patterns that dominated
post –World War II development are exacting great economic and
environmental costs and limiting efforts at place-based development.
Metropolitan development, where huge tracts of land are consumed for low-
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density living, has encouraged significant population shifts away from central
cities, leaving reduced tax bases in core cities to support critical public
services and amenities. For a first-ring suburb/small city such as Plainfield, the
impacts are just as great (in relative terms) as they are for larger cities.
As one seminal study noted forty years ago about Plainfield:
―Areas such as Plainfield provide a target and a prize in return for
following the conventional paths of work and saving. Increasingly,
minority group members in the North are pursuing this prize. One of
the basic questions of our time, however, is whether the goal will be
worth the effort; whether Plainfield and other similar areas…cancontinue to provide the infrastructure of schools, police and all the
other elements which the émigré anticipates at the conclusion of his
often difficult escape from the larger city‘s core (Sternlieb and Beaton,
1972. Pg. 1).‖
Plainfield has never entirely gone in a decidedly negative or decidedly
positive way direction since the Sternleib and Beaton study, but demographic
trends that now challenge Plainfield are very different from older trends. Where
previous in-migration saw individuals with some level of asset accumulation,
new residents are predominantly foreign born and have skipped over troubled
urban cores to the fiscally strapped first -ring suburbs. This trend holds for not
only Plainfield but also for the rest of the nation.
Despite the economic and demographic realities that challenge
communities like Plainfield, the future is not preordained. Many cities and
communities have found ways to improve key policies and enhance their local
economies and quality of life. Much of this improvement is due to support
and/or leadership from the public sector, working cooperatively with other
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stakeholders. As Cunningham and colleagues note in their book Tapping the
Power of City Hall to Build Equitable Communities:
A new wave of innovative leadership is emerging in cities across
America. This group is concentrating on solutions rather than problems,
building coalitions rather than winning confrontations, building coalitions
rather than winning confrontations. They are using this pragmatic
approach to tackle the persistent and difficult problems of poverty,
inequalities and racism endemic to urban America. In doing so, they are
making their cities more livable for residents and more attractive to
people who want to invest there.
Building a complex and winning strategy for economic regeneration that
incorporates many voices is clearly messier than the prevailing alternative,
business attraction. Many local governments go with the default position,
which is to respond to respond to adverse economic conditions by competing
to attract industry with financial incentives and constructing local or state
economic development bureaucracies.
In many instances, these efforts are little more than civic or state
boosterism. Economic development departments emphasize their state or
city‘s cosmopolitanism (or lack of it), inexpensive utility rates, low taxes, stable
politics, and, for those with right-to-work laws, nonunionized labor. The form
and structure of these policies have changed only slightly over the years.
Such policies constitute a negative-sum game in which the aim is to lure
industry from other cities and states. The fact that such policies are pervasive
does not make them right or appropriate in all cases. Study after study has
shown that fiscal incentives are a small part of the decision making in plant or
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office relocation. Firms are probably going to establish a branch office or plant
in a community without government incentives—if that community is the first
choice based on criteria other than incentives.
The path to economic regeneration lies elsewhere. It is a path that is
neither short nor is it smooth and paved. Our scan of what successful
jurisdictions have done is the first and most important step, as it leads us to
recognize that real changes in strategy, operating procedures, and how
stakeholders collaborate are the important variables. To be more specific, we
have distilled the key steps that cities and municipalities (big and small) can
take to initiate an economic turnaround.
STRATEGY ONE: ARTICULATE THE VISION
Local stakeholders (residents, elected officials, and the public,
nonprofit, and private sectors) must spend time outlining a vision for economic
development and prosperity for all sectors of the community. Visioning cannot
be accomplished in isolation and stakeholders may need time to settle on a
shared view of the future.
STRATEGY TWO: DEVELOP A STRATEGIC PLAN
Strategy Two can also be described as the step after visioning.
Stakeholders must spend time participating in a facilitated strategic
development process. The process can last as little at three full days and as
long as stakeholders deem necessary to produce a written document that
encompasses (1) strengths, assets, and challenges, (2) a timeline with
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delineated tasks, and (3) roles, responsibilities, and mechanisms for
accountability.
STRATEGY THREE: DEVELOP A COMMUNICATIONS PLAN IMMEDIATELY AFTER
AND IN CONCERT WITH THE BROADER STRATEGIC PLAN
Effectively communicating with stakeholders beyond those composing
the plan is key to success. Careful attention must be paid to when details of
the plan are released and how and who should ―talk the plan up.‖ The goal of
the communication strategy is not only legitimacy but also enthusiastic
acceptance by relevant stakeholders and publics.
STRATEGY FOUR: ESTABLISH EFFECTIVE PUBLIC/PRIVATE PARTNERSHIPS
Whatever strategic plan for economic development is produced, it has
to involve the collaboration of the public and private sector. Ideally, the private
sector was involved from the beginning of the process, but the plan should
really specify additional partners and the individual and organizations that will
secure relevant partnerships.
STRATEGY FIVE: ESTABLISH BUSINESS IMPROVEMENT DISTRICTS AND IF
RELEVANT, NEIGHBORHOOD IMPROVEMENT DISTRICTS
Specialized improvement districts are now standard strategies in local
economic development. The scope and timing of these types of organizations
must be dictated by the strategic plan.
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STRATEGY SIX: SUPPORT EXISTING BUSINESSES BEFORE LOOKING TO ATTRACT
NEW BUSINESSES
Strategically, it is best to assess the role of existing businesses in
realizing the aims of the strategic plan. Existing business might need
specialized help to grow more jobs, which may be more cost-effective than
attracting new businesses. The opposite may be the case, however, and the
jurisdiction may need to encourage private sector diversification. The process
of determining the case should be transparent and done with care.
STRATEGY SEVEN: CREATE A CATALYTIC DEVELOPMENT ORGANIZATION WITH
POWERS OF EMINENT DOMAIN AND BONDING
Jurisdictions of size and scale often turn to specialized development
organizations. Such a strategy is not to be taken as crucial in the early phases.
Creation of a development organization points to the larger question of power
and authority in implementing the strategic plan. A municipality may not need a
specialized development organization, but it does need an agency that has the
administrative and functional capacity to manage economic development.
STRATEGY EIGHT: ESTABLISH AN ENTERTAINMENT DISTRICT AND OR FESTIVALS
AND FARMERS MARKETS TO IMPROVE IDENTITY AND ENCOURAGE THE
MUNICIPALITY AS A DESTINATION
Entertainment districts, festivals, and farmers markets are now staples
in economic development practice. Any economic development plan must
assess their efficacy and relevance. These efforts take advantage of a
municipality‘s existing assets (sometimes, latent assets) and often bring in
(and values) sectors of the community that are often neglected by traditional
economic development strategies.
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STRATEGY NINE: ASSESS AND STRENGTHEN RENTAL AND HOMEOWNERSHIP
MARKETS
Economic development and housing are difficult to separate.
Municipalities, though, have to recognize that housing and economic
development may live in the same dwelling but have different rooms. Both
have different dynamics, but they are mutually supporting. Affordable housing
is necessary for attracting and retaining segments of the labor force, and
homeownership must be an option to balance the community so that renters
and owners are equally valued.
STRATEGY TEN: DEVELOP A LOCAL RETAIL STRATEGY
Cities and towns evolve a retail strategy based on the residents ‘ income
levels and tastes. That does not mean that a municipality cannot or should not
think through a gradual process for diversifying retail establishments
consonant with the strategic plan.
STRATEGY ELEVEN: DEVELOP A WORKFORCE DEVELOPMENT AND SCHOOL
IMPROVEMENT STRATEGY
Workforce development is an important concomitant to economic
development. Any strategic economic development plan has to centrally
incorporate a strategy for improving the skills of the existing workforce (such
as school reform efforts and stand alone training programs). Workforce
training and effective education can either promote the export of productive
labor to the surrounding region (and exported labor returns to live and pay
taxes) or the labor can productively work in existing or new businesses in the
town or municipality. Often workforce development programs are not
calibrated to address the export of labor or those make up the jurisdictions‘
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labor force. Both labor processes should be assessed and seen as important
drivers of how to improve schools and labor force preparation programs.
SUMMARY
These strategies come from our review of economic development
theory and practice. They are by no means exhaustive, nor should they be
taken as sequential. Except for the first three, which are the foundation of any
economic development strategy, the rest should be seen as contextual in how
they are used (or not used) by any municipality.The next section of this report
presents the case studies developed by project associates. The case studies
should be seen as an information base for Plainfield stakeholders to consider
using as a starting point for what is really key to Plainfield‘s future: establishing
a long-term plan and vision.
WORKS CITED
Cunningham K, P. Furdell and H.J. McKinney (2007). Tapping the Power of Cityhall to Build Equitable Communities: 10 City Profiles. Washinton D.C.. National League ofCities.
G.S. Sternlieb and W.P. Beaton (1972). The Zone of Emergence: A Caset Study of Plainfield New Jersey . Transaction Press, New Brunswick, N.J.
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SECTION ONE MAKING A PLACE OF DESTINATION
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INTRODUCTION
―Place making‖ is becoming an ever more important part of municipal decisions
regarding land use, recreation, and economic development. This section will examine
various community economic development strategies to making a place of destination.
The areas to be discussed are:
arts-based development
ethnic and cultural festivals
façade and streetscape improvements
social media and branding
The following cases offer examples of communities around the country that have
implemented programs and initiatives. We also offer recommendations of how Plainfield
City may use these examples to foster local and community economic development.
ARTS BASED COMMUNITY AND ECONOMIC DEVELOPMENT
ART DISTRICTS: A REDEVELOPMENT STRATEGY
Arts-based development can be defined as an effort that uses arts events, cultural
facilities, artists, creative businesses and the like to spur economic and social
revitalization. On a national level, the nonprofit arts industry generates $134 billion in
economic activity annually, including $24.4 billion in tax revenues and 4.85 million full-
time equivalent jobs. Arts development can include an array of elements including the
establishment of a large cultural center, art galleries, arts-based festivals and campaigns
to attract artists, to name a few. The greatest challenge is not in determining what will be
included in an arts development plan, but obtaining the financing to move forward with
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projects. However, the benefits of a successful arts-based development project can
greatly justify the costs. One of the greatest benefits of having an arts community is the
potential for attracting middle to high-income residents and businesses that positively
contribute to the local economy.
E LEMENTS OF ARTS -B ASED D EVELOPMENT
Arts-based economic development can take on various forms, but the two most
common are through a natural clustering approach or a traditional approach to
redevelopment. The clustering approach involves the formation of districts consisting of
organizations, artists and participants. It relies more on an informal art sector that hinges
on the importance of artists being involved in creating venues, performances and cultural
opportunities. Studies from across the country have demonstrated the relationship
between social diversity and the arts. Heterogeneous neighborhoods, both economically
and culturally, are more likely to be associated with cultural engagement. In addition,
those neighborhoods with higher than average rates of poverty and professional workers
and non-family households are associated with higher levels of cultural participation and
resources. Given this, Plainfield has the existing demographic profile that might lead to
arts development success.
CASE STUDY: THE ARTS IN ORANGE, NJ
The City of Orange is located in northern New Jersey and as of the 2010 Census,
the city has a population of 30,134. It is a predominantly minority area comprised of
69.9% African-American and 21.7% Hispanic residents, respectively, with White
residents making up 4.5%. Educationally, only 10.4% (2,147) of the population has a
college degree; the majority (30%) has attained, at most, a high school education. The
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median household income is $35,759 and 15.4% of families and 18.8% of individuals
below poverty level.
Housing and Neighborhood Development Services (HANDS), incorporated in
1986, is a community development corporation that targets its redevelopment efforts on
the cities of Orange and East Orange, New Jersey. In 2001, HANDS embarked upon a
revitalization plan for the Valley neighborhood, a transit-accessible mixed-use area,
utilizing focus groups, surveys and community meetings with students, faculty
researchers and volunteer planners and the resources from four universities. The result
was the formation of the Visions and Goals for the Valley plan and the Valley Arts
organization, which would act as the lead entity, to create the revitalization area known
as the Valley Arts District. The District spans a ten block radius in the Valley and
projects have included the renovation of existing factories in the area to create affordable
live/work spaces for many artists and an environment to host music and poetry festivals,
art shows, new restaurants and performance spaces.
As a result of the Valley Arts District project residents feel the Valley area has
improved and have a higher perception of safety (also attributed to the development of a
new police substation in the area), there has been an improvement in the attractiveness
of structures and increased neighborhood cohesion. The plan and its associated projects
were largely funded by a Neighborhood Revitalization Tax Credit that provided $10
million in corporate tax credit investments with additional funding from a New Markets
Tax Credit from The Reinvestment Fund and a $700,000 grant from Wachovia.
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P LAINFIELD IN F OCUS
- In the absence of an existing community development corporation (CDC) or
neighborhood services organization similar to HANDS, the city will be most
successful if it creates a task force to fulfill the facilitation and coordination role
including people experienced in community/economic development or project
management in the public sector.
- Given that financing for such projects may not be as readily available as it was
when HANDS undertook its project, an alternative option for Plainfield would be to
embark on something much smaller scale such as monthly window exhibits of
local artists and student work; sparking interest in a developing an arts
atmosphere and drawing more consumers to a certain area, if it were properly
showcased and publicized.
CASE STUDY: ARTS AND BUSINESS, PITTSFIELD, MA
Whereas the HANDS project was more concerned with enhancing an existing
community, the Pittsfield project was most concerned with revamping the town‘s image
to attract new business and residents. According to the 2010 census, the city has a
population of 43,497. Since 2002, Mayor James Ruberto and his administration have led
a resurgence of the city‘s historic downtown, partnered with a dynamic, unified program
to benefit every aspect of city life. Pittsfield used to be a bustling town, home to a
General Electric plant, but when the company relocated it left a polluted river and a town
that had lost its main economic engine and was searching for direction.
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Arts development in Pittsfield emerged in 2001 when a resident, Maggie Mailer
(daughter of the novelist Norman Mailer), started her own Storefront Artists program
turning empty storefront space into artist studio space. The idea slowly began to catch
on with other downtown landlords and caught the attention of the newly elected Mayor
Ruberto who brokered the reopening of the Colonial Theater in downtown Pittsfield. The
theater acted as the cornerstone for the rest of the city‘s development. In the four years
since the completion of the Colonial Theater, 10 art galleries have come to Pittsfield and
about 12 new businesses have opened. The city also recently finished construction on
the William Stanley Business Park where the old GE plant once stood. In conjunction
with Berkshire County, they help provide startup and support services for businesses
moving to the William Stanley Business Park. The city‘s current plan going into 2010-
2015 is to prioritize first floor space in there downtown for retail restaurant and cultural
uses. Additionally, the city seeks to educate building owners about importance of
preserving first floor spaces for retail and cultural uses not office or institutional uses.
Plainfield in Focus
- Development can‘t happen inside a box, you have to involve the people. The first
step is to recognize any growing positive trends in the community and throw the
muscle of the city behind them to cultivate them.
- If none exist, create this artistic movement. Hold contests for local area artists. A
unique way Pittsfield is doing this is by redesigning the city‘s flag and having local
artists and school children take part in the new designs and then having the city
vote on it. There‘s also a street festival held every thir d Thursday, six months out
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of the year, where on average 14,000 residents and tourist descend on the
downtown and are able to see the new developments taking place.
FAÇADE & STREETSCAPES IMPROVEMENT PROGRAMS
Façade improvement and streetscape programs focus on physical upgrades that
add aesthetic and economic value to a built environment by making repairs,
replacements and/or additions to existing buildings. Repairs and renovations of building
façades are important to neighborhood business districts, as significant enhancements to
the appearance of the neighborhood and businesses have the ability to draw consumers
and increase sales in the district. These improvements also protect the existing
investments in commercial properties and the businesses that operated within them.
The streetscape of an area can have a significant effect on how people perceive
their community. Streetscapes account of many diverse functions from accommodating
automobiles, public transportation, pedestrian traffic to providing access to buildings and
providing access for recreational activities. If the streetscape is inviting, people are
going to be more likely to walk around which can improve public health, stimulate local
economic activity and attract visitors to the community.
These programs are designed to be systematic approach to assist property
owners and businesses with upgrading building exteriors. They are typically part of a
broader commercial revitalization strategy designed to stimulate private investment and
contribute to the overall strength of that area as a possible shopping and/or dinning
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destination. Such programs are generally coordinated through a community-based
organization promoting joint public/private action and investment.
CASE STUDY: FAÇADE IMPROVEMENTS POTTSTOWN, PA.
The Borough of Pottstown is located in Montgomery County, Pennsylvania and is
an exurb of Philadelphia, which is 40 miles away. The borough has experienced a
significant decline in its manufacturing base over the past 30 years. The advent of the
mall and corporate centers in the 60‘s and 70‘s made Pottstown no longer the retail and
commercial hub of the region. Since that time, many of the middleclass families have
moved out and into the suburbs and the percentage of low-income residents has
increased. Faced with the underutilization of existing industrial space and a crime,
economic development and downtown revitalization became major challenges for the
community. Pottstown had to address its image as a declining industrial city with large
amount of rental and subsidized housing, a distressed neighborhood near downtown and
a high crime rate, as well as compete with the surrounding regions for business.
In 1987, the Pottstown Downtown Improvement District Authority (PDIDA) was
created to help stabilized the central business district. The three core areas that the
PDIDA believe will be the catalyst for making their downtown a destination place are:
1. Effectively managing the public space by providing amenities that include
lighting, parks and parking landscapes.
2. Creating an environment that is attractive to economic development by
maintaining the historical qualities of the buildings.
3. Creating new retail, office and cultural space.
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As part of the redevelopment of the central business district, the PDIDA offers two
different façade programs. The façade loan program offers a 0% no interest loan for up
to 80% of the total project costs that is to be repaid over a 5 year period. The program
also offers loan assistance on a 50/50 basis up to $500 for technical and architectural
assistance. The façade/design challenge grant offers up to $5,000 or 50% of the total
rehabilitation cost when matched by private investment dollars. This is a reimbursement
program that provides funding when the construction is complete and all the conditions
of the program are met.
F AÇADE LOAN P ROGRAM
Eligible properties – all properties that are zoned commercial with the purposes of
retail sales, service businesses including food/restaurants, clothing, financial,
night clubs and etc.
Ineligible properties – all properties that are zoned residential, industrial,
commercial and properties designated for religious use.
The minimum loan amount is $250 and the maximum is $7,500.
Fees are 1% for administrative fees to recover costs of loan discovery which ispayable at the closing.
F AÇADE /D ESIGN C HALLENGE G RANT
Structural change projects get first preference & façade change projects get
second preference.
A single property own can receive multiple grants of he/she owns more than one
property.
All the work must be completed in a manner consistent with the work described in
the grant application.
All work must be completed within a 6 month period or the grant is forfeited.
Ineligible projects – routine maintenance, interior renovations, roofing & siding
repairs, sidewalks, driveways and parking lot repairs.
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The Borough of Pottstown relies on the Pottstown Downtown Foundation (PDF) for
additional funding to assist in the central business district‘s development projects and the
special events. The PDF is a 501 (c) 3 corporation and has the ability to utilize financial
resources outside the designated boundaries of the downtown; the PDF can secure a
larger pool of operating funds that the PDIDA can draw from.
CASE STUDY: THE MORRISTOWN PARTNERSHIP, MORRISTOWN
In 1994, Morristown created a Special Improvement District (SID) non-profit
organization, the Morristown Partnership, for the purpose of revitalizing the downtown
business district. It was created to lead the downtown revitalization by developing
partnerships between business, government, civic and community. A District
Management Corporation (DMC) created by the Town Council at the time that the
special improvement district was introduced and approved governs the Partnership.
Under the Streetscape umbrella, the Morristown Partnership identified two
locations as demonstration projects that will ultimately adorn the entire town. Features of
these projects included attractive turn-of-the-century style lampposts, paved crosswalks
to better identify pedestrian rights of way to increase the safety of passersby. New
sidewalks were also built to replace old, broken and unsafe ones. The goal of the
Morristown Partnership is to continue improvement projects throughout the business
district over the next several years, not simply for aesthetics, but for practical purposes
as well. These efforts have helped to inspire individual property owners to upgrade and
improve their buildings or land. New Jersey Transit (NJT) helped jump-start the physical
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improvements on one of Morristown‘s projects with a million-dollar renovation of the train
station and surrounding area.
Funding for these projects was provided by the Morristown Partnership and was
primarily funded by a special assessment on commercial properties and businesses
within its boundaries. These dollars were then leveraged to acquire grants. In addition
to help pay for the costs of such massive projects, the Partnership applied for and
received over $1 million from the Department of Transportation.
P LAINFIELD IN F OCUS
Plainfield may not fit perfectly into the mold of the cities discussed, but there are
lessons and ideas that can be taken from their experience. Plainfield already had a
thriving downtown, so creating a plan that unifies the area with a cohesive theme would
only enhance that fact. Creating a pedestrian friendly, walkable community would mesh
well with the already established restaurants, retail stores and entertainment venues.
The Plainfield Station, and the area that surrounds it, would be a great place to
target as the initial improvement area. Its potential, and proximity to the rest of the
downtown area, would make an easy place to expand outward from, creating aesthetic
identity. Train Stations are not only places that residents and visitors use to get to a
destination; they also serve as marketing tools for their surrounding areas. As people
ride the trains, looking out of the windows, the train station area becomes a snap shot of
a town. The site of new construction and positive change to that area can create an
inviting atmosphere while promoting economic development.
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F UNDING
New Jersey Department of Community Affairs‘ Main Street New Jersey Program
is a comprehensive revitalization program that promotes the historic and economic
redevelopment of traditional business districts in New Jersey. Every two years the DCA
accepts applications for communities to join the program. These communities receive
valuable technical support and training to assist in restoring their Main Streets as centers
of community and economic activity.
The New Jersey Department of Transportation (NJDOT) and NJ Transit
spearheaded a Smart Growth partnership known as the Transit Village Initiative. The
initiative creates incentives for municipalities to redevelop or revitalize the areas around
a transit station using design standards of transit-oriented development (TOD). TOD
helps municipalities create attractive, vibrant, pedestrian-friendly neighborhoods where
people can live, shop, work and play without relying on automobiles.
Since Plainfield already has a Special Improvement District (SID), it already has a
funding source available. With the primary purpose of increasing business, the SID is
not only an organization, but also a financing tool that can be used to provide services
that complement the municipal government services as part of a revitalization plan. The
funding can be achieved in two primary ways, property assessments and outside
funding. Funding from outside sources can be an invaluable source of additional revenue
and provide funding above and beyond assessment income for expanding SID services
and activities. The downside is that the process of matching a SID‘s needs with a
funder‘s goal can be difficult. However, the SID‘s specials assessment fees can also be
matched with UEZ funds to provide the improvements.
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COMMUNITY-BASED EFFORTS AT IMPROVING PLACE
ETHNICALLY BASED COMMUNITY ORGANIZATIONS: AN ECONOMIC DEVELOPMENT STRATEGY
Ethnic and cultural festivals are often planned as part of place marketing, image
branding and civic boosterism to aid in the regeneration of urban areas. Some festivals
are held with within a locale but are meant to attract an outside audience. They serve as
a vehicle to inform others about the values and traditions of the hosts. Not only do
festivals offer communities the opportunity to celebrate events, they also serve as
attractions for visitors from the nearby towns and regions.
There are several reasons that these festivals are held. Aside from simply being
informative and enjoyable, they provide a number of important benefits to the
community:
Festivals encourage a sense of community pride and togetherness.
Festivals may have educational values, as different cultures are shared.
Festivals can showcase an area that has been revitalized or redeveloped. Festivals can stimulate travel to a community and the surrounding region.
Festivals can encourage a community to grow and prosper by attracting dollars in
the form of tourism.
While the traditional ethnic festival helped create group identity, created solidarity and
educated others, the contemporary festival offers an economic dimension as well. When
you attract people to stay in a location longer they are likely to spend more money on
food, beverages and souvenirs.
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P LANNING & O RGANIZING
The key to the success of a festival is that goals and objectives must be clearly
defined. An undefined or vague purpose is a near guarantee of festival failure.
Establishing a purpose, theme, name and date are the first steps in planning a festival.
The theme should be relevant to the community‘s personality, legends and history.
Community members working together play an important role in making a cultural
tourism destination successful. Community building can emerge in several different
forms. This ranges from groups of people coming together to experience a special
event to motivating different organizations to work together to build successful events.
The festivals bring people in for fun and may expose them to new possibilities that can
bring them back for shopping, food or entertainment in the future.
P LAINFIELD IN F OCUS
Given Plainfield‘s diverse population and many restaurants, a festival (or series of
festivals) would serve to showcase various varieties of food available in the area. Some
ideas for potential ethnic and cultural festivals that would celebrate this diversity are: a
Queen City festival to celebrate the rich history of Plainfield, a Cinco De Mayo
celebration, a West Indian festival, a Peruvian festival and a African American Heritage
festival to name a few.
Placing the festivals near the train station would entice commuters and locals to
take part in the event. Due to its size and location of the street to the train station,
closing off North Avenue would be an optimal place to designate as the festival grounds.
By setting up booths and holding the festivals adjacent to the train station, this would
give commuters and foot traffic already in the downtown area the opportunity to partake
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in the festival. Plainfield has much potential to offer its regional residents who often pass
through the city without much reason to stop and experience the city.
CASE STUDY: LATINO ECONOMIC DEVELOPMENT CORPORATION
Mount Pleasant is a neighborhood located in northern quadrant of Washington
D.C. Its current population is roughly 12,000 residents, with an evenly demographic
distribution of Hispanic, Blacks and Whites. In 1991, this historic neighborhood came
under heavy scrutiny when during a Cinco de Mayo street celebration an African-
American police officer shot an injured a Salvadoran man during in attempt to arrest the
individual because of disorderly conduct. This incident sparked a two day riot, the first of
its kind since the riots of 1968, when Dr. Martin Luther King was assassinated. The riot
unveiled a growing rift between the growing Hispanic immigrant population and the
dominant African American political leadership.
The Latino Economic Development Corporation (LEDC) is a community-based
economic development organization, established in 1991, in response to the civil
upheaval that took place in Mount Pleasant, D.C. LEDC focused its efforts on providing
opportunities for immigrants to thrive in the Washington D.C. economy, through the
notion of stable housing and successful small business. One of the pressing issues
concerning the Latino community was the lack of Spanish speaking individuals in social
service positions. LEDC quickly addressed that concern by compiling a bilingual staff
that gives the residents a sense of familiarity and trust, which, in turn, allows
relationships to be built. The LEDC provides services in three distinctive fields; small
business development, homeownership counseling and affordable housing preservation.
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S MALL B USINESS D EVELOPMENT
Micro-Loan Program - As a certified Community Development Financial
Institution, LEDC provides micro-loans from $500 in value up to $50,000 to start-ups and
existing businesses that have difficulty obtaining credit from mainstream financial
institutions. Business Training - LEDC offers in-depth courses and workshops for
entrepreneurs who want to hone their business skills in areas such as conducting a
feasibility study, business planning, marketing strategies, website design, accounting,
recordkeeping, taxes and more. Small Business Assistance Program - LEDC works with
entrepreneurs one-on-one to refine their business plans, prepare their income taxes,
obtain business licenses, and access additional resources, such as professional links to
legal assistance, marketing consulting, accountants and real property searches.
Individual Development Accounts - LEDC helps clients save money for starting a
business by enrolling them in Individual Development Accounts, where they can receive
matching grants on money they save towards starting a business or buying their first
home. Storefront Improvement - LEDC administers a storefront improvement program
funded by the DC Government‘s Department of Housing and Community Development.
The goal of the program is to improve the physical appearance of largely Latino business
corridors, making them more attractive to shoppers and new investment, thus increasing
wealth and employment opportunities.
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Homeownership Program
Home Purchase Assistance Program - Prospective homebuyers can access down
payment and closing cost assistance through the Home Purchase Assistance Program
(HPAP) and receive a no-interest loan of up to $40,000. Home Purchase Counseling -
Housing counselors offer no-nonsense advice tailored to individual needs on topics
ranging from personal credit to how to choose a realtor. Homebuyer Education - LEDC
offers group education on topics ranging from HPAP to credit to home purchase
throughout the city. Foreclosure Prevention - To prevent foreclosure, LEDC works with
buyers to become mortgage-ready and market-savvy before entering into a mortgage
contract with a bank. Additionally, they offer counseling and intervention for individuals
who are struggling to keep their homes. Individual Development Accounts - Matched
savings accounts help prospective home buyers accrue savings for down payment and
closing costs.
Affordable Housing Preservation
Supporting Tenant Purchase - LEDC supports tenant purchase by providing
technical assistance, education and organizing support to tenant associations throughout
the purchase process. Preserving Section 8 Housing - Through advocacy and education,
LEDC works with tenant associations to ensure the preservation of Section 8 contracts at
buildings throughout the District of Columbia. Protecting Rights - LEDC prevents
displacement of tenants by helping them to protect their right to live in decent and safe
housing. Organizing Associations - They also provide technical assistance and training
to tenant leaders with the end goal of establishing and strengthening the voice of tenant
associations.
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CASE STUDY: LONGMONT, CO
Voted by Money Magazine as one of the Top 100 small livable cities to live in
2006 and 2008, the City of Longmont, CO provides an excellent example of a city that
strives itself on creating a community centric focus. Located in central Colorado,
Longmont is home to nearly 88,000 residents, a 50% increase since 1980 when their
population was teetering around 44,000. During this 30 year span, Longmont has
invested its primary focus of economic development through the lens of the community.
In the late 80s the city of Longmont saw a demographic trend beginning to take place;
many Hispanics were flocking to the Colorado suburb. Since 1990, the Hispanic
population has tripled and according to the 2010 census, Hispanics make up roughly
25% of the current population.
M ULTICULTURAL T ASK F ORCE
From 2003 to 2007, the City of Longmont conducted a 5 year strategic plan
geared at guiding the city into becoming an effective multicultural community. The plan
was spearheaded by Latino residents in Boulder County through a community-wide
assessment conducted by The ALMAR Development Group. The Taskforce was
comprised of City Council, city staff and community members that focused their energy
to create a unified work plan. The taskforce decided to invite additional community
members to come together and create a community-wide strategic plan to establish and
sustain community connections within their Latino community. The general focus of the
plan was built around a common vision for their community, and included desired
outcomes, strategies and time lines to address their pressing issues of ―improving the
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lives of Latino families in Boulder, quality health care, economic and social equity,
educational advancement, fairness in the criminal justice systems and community
participation and advocacy.‖ The task force later defined their five objectives to achieve
during the five years as followed.
F IVE T ASK F ORCE O BJECTIVES
1) Describe and document the overall status of Latino families in Boulder County
regarding the issues listed in the mission statement;
2) Develop specific recommendations to address the identified strengths and needs of
the Latino community;
3) Educate and collaborate with the Latino community, key policy makers and funders to
improve the overall status of Latino families in Boulder County;
4) Direct community resources and funding to implement the recommendations/ plans;
5) Enhance the capability of Latino families to participate in the political process and
advocate effectively for the issues and needs.
City Council, staff and community members coordinated four individual sessions
to guide the city in reaching their five objectives. During the first session the committee
established a three-prong approach to be their foundation. These were as follows; (1)
Strategic Approach, (2) Strategic Deployment and (3) Strategic Results.
S TRATEGIC APPROACH
1) Vision: the picture of where the City of Longmont is striving to be;
2) Analysis of the Strengths, Weaknesses, Opportunities and Threats (SWOT): the
information needed to help the city understand where it currently stands;
3) Strategic Objectives: the outcomes to be achieved in working towards the vision.
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ANALYSIS OF S TRENGTHS
Listed as one of the top strengths by the entire group, El Comite has been an
influential force in the Longmont community for nearly thirty years. El Comite provides a
plethora of direct services which include individual case management, information and
referral, consultation, English/Spanish translation and interpretation, conflict resolution
and mediation, immigration information, or by acting as clients‘ advocate. In 2006 alone
nearly 3,500 community members were served.
LATINO P ARENT P ROGRAM
Provided during the fall and spring seasons, the Latino Parent Program is
designed to allow parents of Latinos to better understand the American school systems
as it relates to their children‘s education.
C IVIC AND C OMMUNITY E DUCATION
Several ways that El Comite works to create a civic-minded Latino community is
through their efforts of quarterly citizenship workshops and voter education programs. By
assisting legal permanent residents with the tools needed to become a U.S. citizens and
the implementation of voter registration, El Comite in partnership with the City of
Longmont have created opportunities otherwise ignored previously.
M ULTICULTURAL F ILM F ESTIVAL
Every spring El Comite de Longmont hosts the Annual Multicultural Film Festival.
The festival celebrates the cultural diversity found within the Longmont and Boulder
County Community. Individuals that come from the communities portrayed and experts
on the issues shown in the films participate on post-film discussion panels to answer
questions. All films are free and open to the public.
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P LAINFIELD IN F OCUS :
Develop a Taskforce to engage Hispanic residents in the economic future of
Plainfield by testing the idea of ethnic festivals. The taskforce should be diverse
and time delimited with a six-month study period to present recommendations tothe Mayor of Plainfield.
Encourage the coordination of local non-profits and city government to better
assist the economic development needs of emerging groups such as business
development, personal asset building and workforce development.
Encourage the development of non-profit organizations in the Hispanic community
who will ultimately provide services and build leadership in that community. A
good example of this kind is the Puerto Rican Action Board in New Brunswick.
This organization plays a service and buffering role with city government that is
ultimately responsive to the community while effectively partners with state and
local government.
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USING SOCIAL MEDIA IN SUPPORT OF ECONOMIC DEVELOPMENT
Several Cities, towns and Economic Development Organizations (EDOs) are
actively using Facebook, LinkedIn, Twitter, YouTube, blog software and other tools that
are designed to promote collaboration and interaction (EDA, 2009). See Table 3 for an
example on how each tool is being used by EDOs.
Table 3. Examples of How EDOs Use Social Media Outlets (EDA, 2009)
Approximately 85 percent of initial research for site selection of new businesses occurs
online (Schaefer, 2010). In order for a city to be found, it must be online. The municipal
web portal is the first step in advertising a community online, social media enhances
what is available on the website and adds a more personal perspective. Mark Shaefer, a
marketing expert, states that there are six steps any organization must follow to conduct
an effective social media campaign (See Table 4). Content development is crucial.
―Developing content that is relevant, timely and engaging to audiences is the primary
effort of social media‖ (EDA, 2009). It is important to note that most social media is free;
therefore, it is ―people-intensive not budget-intensive‖ (EDA, 2009). The best way to
SocialMediaOutlet
Economic Development Organizations Use of the Outlet
Facebook Build online communities about a region, specific industry, local or nationalevents, contests or other activities.
LinkedIn Collaboration with industry experts and others about economic developmenttopics and job creation.
Twitter Communicating with business leaders outside of community boundaries toadvertise benefits and quality of life that particular community.
Flickr andYouTube
Tours of available property for rent or sale and video/pictures of events andpress conferences.
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post good content is to get the entire organization, or city involved with the effort. For a
city, this would mean as many departments and agencies as possible.
Table 4. Getting Started with Social Media (Shaefer, 2010)
CASE STUDY: SOCIAL MEDIA, SAN FRANCISCO
U SING S OCIAL M EDIA TO I MPROVE G OVERNMENT
San Francisco is governed by a mayor and an 11 member board of supervisors
(City of San Francisco). The board of supervisors acts as the legislative body of the city.
The former Mayor placed a huge emphasis on transparent government. After the 2009
annual Web 2.0 Summit in San Francisco, former Mayor Gavin Newsom stated,
Government, like other sectors, has been forced to do more with less because ofthe economy. Necessity has created a great opportunity for innovation. Toimprove transparency and engage our tech community, earlier this year Iannounced an Open Goverment initiative for San Francisco, which focuses onopen data, open participation and open source (Newsom, 2009).
Steps Explanation
1. Plan and align with strategy
Before you make a plan for your social mediacampaign, you must have an overall strategy foryour organization. After developing yourstrategy, align the campaign with those goals.
2. Listen before you leap
Learn the language and the culture of the outletyour organization considering. This can be doneusing free tools such as Google Alerts or Real-Time Twitter Search.
3. Focus and experiment
Choose the social network(s) your organization
wants to join, but start small and experiment withthe outlet.
4. Engage stakeholdersInvolve the community through blogs,testimonials, photos and videos.
5. LeapBuild social network connections and updatefrequently. Ensure that you have meaningfulcontent (you need quality and quantity).
6. MeasureMeasure your progress based on yourorganization‘s goal and modify your campaign if necessary.
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Mayor Newsom requested that all city departments make all of their non-confidential
datasets available online. The mayor was the sponsor of this project; he and his staff
ensured the project was completed.
To further improve his efforts of participatory government and improving
connections between government and citizens he, and Twitter founder Biz Stone,
created a Twitter 3-1-1 service (Albanesius, 2009). Anyone who has a question or
concern about city government can ―tweet‖ the 3-1-1 call center and receive a quick
―tweet‖ back. Prior to this, the mayor and his staff were working on a text-messaging 3-
1-1 service for residents. Politically, the text messaging services did not work because it
was expensive (Knight, 2009). The Twitter approach did not receive any political
backlash because it is free.
Implementing the 3-1-1 services was people-intensive, as most social media
projects are. IT workers in the city worked on the security standards for a few months
before launching the service (Opsahl, 2010). Once the security standards were set, the
Open311 API (Application Programming Interface) which would allow the Twitter service
to relay to the current 3-1-1 system was ready for launch. The city worked the interface
and now the Open311 API is free and available for other organizations to use. As a
result, citizens can get a quick response to their problems. For example, a citizen
―tweeted‖ that there was a major water leak at a park in the ci ty; 15 minutes later an
official from the utility inspected the incident and it was fixed in less than four hours
(Curiel, 2009).
In addition to this service, nearly every city department has a social networking
account. The city web portal has a ―Social Media Center‖ in which the departments and
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social media accounts are listed. The most popular outlets the city uses are Facebook,
Twitter and YouTube. Each account has useful information including photos and videos
of upcoming development projects and capital improvements. Furthermore, citizens and
potential business owners can communicate directly with specific departments.
The overall feedback of the Twitter 3-1-1 service and other social media accounts
with the city is positive (Shih, 2010). The Public Technology Institute has designated
San Francisco a ―Citizen Engaged Community‖ in 2010 (Cable and Bowen). The
example of the water leak mentioned above illustrates how effective the service has
been. However, there are a few unintended consequences. One major unintended
consequence is as the service and the other accounts have become more popular, it is
getting more difficult for city employees to respond to inquiries (Shih, 2010). With the
slower response time, some of the accounts have lost some citizen subscribers. With
exception to the 3-1-1 service, the staff who posts to the social media websites have
other duties. Their entire workday does not focus on answering questions via phone or
Twitter. Furthermore, they have to find time to produce and post meaningful content.
This is not always as easy as it sounds. However, this should not deter any city or
organization from embarking on a social media campaign.
P LAINFIELD IN F OCUS
Plainfield can adopt a social media campaign to help with branding and economic
development. However, the city could use a slightly different approach. The city can
begin before or after it has developed a strategic economic development plan.
Marketing—Communicate the benefits, assets, and quality of life to potential new
residents and business owners. Market to specific industries that would benefit
from what Plainfield has to offer. Advertise community events.
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Crowdsourcing—Communicate with experts in the economic development field to
get an idea of what economic development activities are working for other cities.
Citizen involvement—Solicit feedback from residents on current and future
economic development activities. Conduct a contest for a city slogan campaign to
contribute to recommended branding efforts.
Shop local campaign—Encourage residents to shop in Plainfield. This can be
done in conjunction with a branding campaign.
Train business owners—Conduct training to teach social media marketing to local
businesses and help to help them market their business.
MARKETING CITIES ONLINE
In today‘s economy, cities and rural areas alike are struggling to attract new
businesses and visitors. Don Allen Hollbrook suggests that rural environments should
have an ―aggressive and proactive marketing campaign that promotes their communities
and areas to business decision makers and the site location industry experts‖ (2007,
p.168). Cities can also benefit from this. Several cities across the United States are
improving their marketing strategies through the use of technology. While many cities
are using technology to market their city, several of them are not using it to its fullest
potential. The internet has leveled the playing field for economic development. Now,
cities must focus on ―building a robust, user friendly and mean ingful website that
provides the information users will desire and expect‖ (Hollbrook, 2007 p. 168).
M ARKETING T HROUGH T ECHNOLOGY
Cities market themselves through websites or social media because the internet is
the first place that people generally look for information. First, the city needs to decide
on a goal for the website (Pendergraft, 2011). For example, to improve city services,
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increase city participation in government and market to potential new businesses.
Secondly, the city should decide who its target markets are. Using the previous example,
target markets would be citizens, potential new businesses, and visitors. The city must
also review its current website and note its strengths and weaknesses. Once all this
previous information is gathered, the city can begin to redevelop their website.
C ASTLE R OCK , C OLORADO
Castle Rock is almost equidistant from Denver and Colorado Springs (Town of
Castle Rock). It is the county seat of Douglas County, one of the fastest growing
counties in the nation (Castle Rock Economic Development Council, 2009). The current
population is just over 48,000 (U.S. Census Bureau, 2010). The population is wealthy,
well educated and homogeneous with 90% of the population being white, 10% Hispanic,
two percent Asian and one percent African American (U.S. Census Bureau 2010). The
most recent estimate of median household income in Castle Rock is $72,534. In terms
of educational attainment, 98% of the population has achieved a high school diploma,
81% have some college or technical school training, 54% have a college degree, and
18% have a post graduate degree.
E CONOMY
Small businesses make up a significant portion of the local economy. The Castle
Rock Economic Development Council (CREDC) asserts that 89% of local businesses
have five or fewer employees partly due to the large number of home based businesses,
which is 56% (2009). Government is the largest employer in the town; this includes
state, school, county and town employees (CREDC 2009). Other major industries in the
town include manufacturing, recreation and retail. The town‘s currently marketing to
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professional and service firms, engineers and architects, geophysics and aerospace
companies, high technology firms, light manufacturing, and retail services (CREDC
2009).
OLITICAL C ONTEXT
Castle Rock has been operating under the council/manager form of government
since 1987. The town is homogeneous; therefore it does not appear to have competing
goals or outrageous political discourse. Furthermore, Castle Rock appears to have a
transparent government, with many government documents accessible by web. The
town also streams council meetings live on the internet and through a local television
station (Town of Castle Rock). The town has not suffered through any recent
controversies in government.
CASE STUDY: REVAMPING THE CASTLE ROCK MUNICPAL WEBSITE
The town re-launched their website twice within the last ten years. During this
time, the town had recently hired a new Chief Technology Officer (CTO). He proposed
the idea of redesigning and updating the website. Proponents of the new website
included the town Community Relations Department, and members of other departments
and the CTO (Capp 2011). There were no opponents per se; however, the idea had to
be justified to the town manager. The town manager was eventually won over with the
argument that a more effective municipal website could save staff time and allow them to
concentrate on other duties. People would be able to make complaints, pay tickets, and
check the status of various applications online. The deputy town manager sponsored
the project overseeing it from start to finish.
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One of the big decisions the town faced was website design and content. First,
the town had to decide on a website content management system. ―A content
management system (CMS) is a document centric system used to control or manage the
content of a website‖ (Brick Marketing, 2011). The costs of CMS software generally
ranges from $18,000 to $25,000. For both launches of the website, the town conducted
an extensive RFP. Their priority was choosing a vendor that was current and easy to
update. Once a vendor was chosen, a decision had to be made on whether there would
be one person in charge of content, or if departments would be in charge of their own
sections of the website. Castle Rock opted for a hybrid model; each department
selected a communications ―point person‖ to be in charge of web content for their section
(Capp, 2011).
C HALLENGES
There were some challenges throughout this process. One challenge was that
each department had different ideas on content and web design. As a result, the deputy
town manager took control of the project. He created and empowered a committee to
make design and content decisions. The committee also holds quarterly meetings to
update the website and train staff on the CMS (Capp 2011). Another challenge was
keeping updated useful information on the website. Town employees have other duties
and sometimes keeping the website updated becomes less important. Castle Rock
continues to struggle with enforcing deadlines to keep the website current.
P ROMOTING THE W EBSITE
Although the town initially received little press on its newly designed website, the
town put forth an excellent effort to advertise the website. The town put the website URL
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on city buses, fire trucks, and other city vehicles. CTO Kevin Capp recommends that the
launching of a redesigned website be coupled with a branding or marketing campaign.
People cannot take advantage of the new services if they do not know about them. The
Center for Digital Government (CDG) surveys and awards governments on their
technological innovations; specifically the Best of the Web Awards (BOW) contest
recognizes the excellence of official web portals of United States cities, counties and
states (CDG, 2011). In 2010, the town of Castle Rock came in fourth place in the BOW
Awards, shortly afterward, the town received more press, aiding in its effort to advertise
the new website.
R ESULTS OF THE N EW W EBSITE
While redesigning a municipal website is not an economic development strategy
on its own; it is a great addition that works in concert with branding. Castle Rock town
employees believe that their website has helped with economic development. The CTO
stated that the website has helped a few new businesses in their decision to move to
Castle Rock. Centura, a company building a new hospital in the town, felt that the
website helped them in locating sites, researching existing businesses and with the
development review process (Capp 2011). Although this was not the determining factor
in their decision to locate in Castle Rock, it made the process a little easier.
P LAINFIELD IN F OCUS
Although the town of Castle Rock bears little resemblance to Plainfield, the city
can take several lessons from the town‘s experience. We recommend that the city follow
the steps below to revamp the city website:
Decide on a goal for the new website and identify target markets.
Review the city‘s current website and note its strengths and weaknesses.
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Review websites of similar cities for ideas.
Select a sponsor to oversee the project.
Assemble a committee to be responsible for content and design. Meet with the
committee to determine what the city wants on the new website.
Designate one person per department to be responsible for departmental content.
Go through the RFP process to select a CMS vendor.
Once the vendor is selected, train the staff who will be updating the website.
Redesign and update the website.
Launch the new website.
Start a marketing/branding campaign to advertise the new website.
Review website content and update quarterly.
USING SOCIAL MEDIA IN SUPPORT OF ECONOMIC DEVELOPMENT
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Perth-Amboy>.
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USING SOCIAL MEDIA IN SUPPORT OF ECONOMIC DEVELOPMENT
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W ORKS C ITED FOR S OCIAL M EDIA C ASE Albanesius, C. (2009, June 2). San Francisco links 311 call center to Twitter.
PCMag.com .
Retrieved April 11, 2011, from
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Cable, S., & Brown, D. (n.d.). Public Technology Institute: A Local governments
designated as citizen-engaged communities. Public Technology Institute: The
resource for technology executives in local government . Retrieved April 11, 2011,
from http://www.pti.org/index.php/ptiee1/more/635/
Curiel, J. (2009, July 27). 'Tweet' gets leak plugged fast in Fillmore. San Francisco
Chronicle , pp. C-2.
EDA. (n.d.). EDA Update: They're doing what? Social Media and Economic
Development American Planning Association . Retrieved April 11, 2011, from
http://www.planning.org/eda/newsletter/2009/oct.htm
Knight, H. (n.d.). Mayor finds yet another use for Twitter: City Insider. San Francisco
Bay Area: SFGate . Retrieved April 11, 2011, from http://www.sfgate.com/cgi-
bin/blogs/cityinsider/detail?entry_id=41015
Maeder, K. (n.d.). Crowdsourcing San Francisco City Hall: Open government may
benefit quality of life | www.ResetSanFrancisco.org Blog.
www.ResetSanFrancisco.org . Retrieved April 11, 2011, from
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city-hall
Newsom, G. (2009, October 21). San Francisco Government and Technology: How
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We're Innovating. Social Media News and Web Tips “Mashable“The Social Media
Guide . Retrieved April 11, 2011, from http://mashable.com/2009/10/21/san-
francisco-government/
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government/San-Francisco-and-Partnering-Cities-Launch.html
Rainie, L., Purcell, K., Seisfield, T., & Patel, M. (2011, March 1). How the public
perceives community information systems. PewInternet.org . Retrieved April 11,
2011, from http://pewinternet.org/~/media//Files/Reports/2011
/Pew_Monitor_Communityinfo.pdf
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Development . Retrieved April 11, 2011, from http://www.sfced.org/statistics/urban-
data-and-statistics/demographics
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development
Shih, G. (2010, February 19). Gavin Newsom, the Twitter Prince. U.S. - Bay Area
Blog – NYTimes.com . Retrieved April 11, 2011, from
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U.S. Census Bureau Delivers California's 2010 Census Population Totals, Including
First Look at Race and Hispanic Origin Data for Legislative Redistricting. (n.d.).
2010 Census . Retrieved April 11, 2011, from
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SECTION TWO
DEVELOPING PEOPLE, DEVELOPING PLACE
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INTRODUCTION
This section of the report represents the heart of community economic
development: strengthening people and places. Workforce and educational development
help create strong individuals, and, in turn, robust communities. Indeed, in order for a city
to achieve long-term economic stability it must first develop a strong foundation through
the people who live there. The following section blends economic principles with that of
social action and empowerment. As global and local economies evolve, so too must our
approaches to education and workforce development. The case studies in this section
are focused on the education and empowerment of youth along with innovative
approaches to workforce development. In particular, the studies are highly relevant to
groups in Plainfield in need of new avenues to explore opportunities for employment and
personal development: youth, day laborers and ex-offenders. The following studies and
recommendations (provided at the end of this section) will assist the City of Plainfield in
visioning a process to engage its community members in the realization of their full worth
and potential.
WORKFORCE DEVELOPMENT AND COMMUNITY ENHANCEMENT
DAY LABORER CENTERS: A WORKFORCE DEVELOPMENT STRATEGY
W HO ARE D AY LABORERS ?
Day laborers are low-wage workers who are hired on a day-by-day basis. These
workers usually perform short-term, difficult manual labor such as hauling debris,
painting homes, or doing construction and landscaping. Day laborers will often gather at
informal sites on busy thoroughfares or near home improvement stores to solicit a job.
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Employers pick up workers at these sites, pay them in cash, and leave no record or link
between themselves and the workers.
In Plainfield, day laborers who gather at informal outdoor sites face numerous
challenges. Lacking a formal environment in which to negotiate safe, decent-paying
temporary jobs, day laborers are usually stuck in highly economically vulnerable
positions in which they are exposed to unsafe working conditions and are victims of
wage theft. In addition, the presence of day laborers can create conflicts with local
businesses and area residents including complaints about loitering or outward displays
of anti-immigrant sentiment. This report seeks to outline strategies communities have
employed in order to assuage community controversy over day laborers and help
workers achieve fair treatment in local labor systems.
D AY LABORERS IN N EW J ERSEY
In a recent Seton Hall University report (January 2011) about day laborers and
workplace justice in New Jersey, the authors identified 23 municipalities with strong day
laborer populations. Plainfield and nearby Scotch Plains and Summit were among the
towns listed. The study found high levels of abuse and worker exploitation with regard to
wage theft, unsafe working conditions, and violence from employers toward day laborers
in New Jersey. Many day laborers do not report abuse because of their status as
undocumented immigrants, and so exploitation by employers continues. However, the
study found that, in general, abuses such as wage theft occurred less often in
communities where workers had access to community organizations that provided
support and resources to address wage disputes. Communities that respond to
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neighborhood tension and day laborers‘ workplace justice issues create better conditions
for both workers and community relations.
D AY LABORER ADVOCACY AND O RGANIZING
Cities and towns generally respond to community controversy regarding day
laborers with a few different strategies including 1) setting up formal hiring centers with
paid staff 2) creating designated hiring sites with no staff, or 3) organizing day laborers at
their original site. Day laborer centers are the focus of this study and are places where
employers and day laborers can formally arrange for employment at fair wages. The
scope of services of a typical day laborer center varies widely and could include anything
from English classes, advocacy and organizing activities, or community building events
such as sports teams and theater groups (Toma & Ebenshade, 2001).
EMPLOYMENT & TRAINING CENTERS: A WORKFORCE AND ECONOMIC DEVELOPMENT
STRATEGY
CASE STUDY: CASA DE MARYLAND
CASA (Central American Solidarity and Assistance) de Maryland operates five
welcome centers in the Baltimore-area where employers and workers can engage in a
formal and fair hiring process. The focus of this case study is the first of the five
welcome centers to open, the Silver Spring Center for Employment and Training.
B ACKGROUND : D AY LABORERS IN S ILVER S PRING , MD
The total population of Silver Spring, MD is 76,335. The population is 46.6%
White, 24.8% Black, and 26.6% Hispanic or Latino (of any race). The median family
income is $80,519 and 9.9% of families live below poverty level.
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D AY LABORERS AND C OMMUNITY T ENSION
The obstacles that day laborers in the Baltimore-area face in achieving fair
treatment and appropriate wages are familiar to those of day laborers all over the United
States. In Baltimore‘s Day Laborer Report (2004), day laborers cited unfair or unpaid
wages, workplace dangers, and poor treatment in the workplace as their main
challenges. For almost a decade before the creation of the CASA de Maryland Silver
Spring Welcome Center, day laborers seeking temporary employment gathered in a 7-
Eleven convenience store parking lot to wait for potential employers. Like many
communities with strong day laborer populations, conflicts over the informal hiring site
arose. For instance, nearby businesses complained about loitering and suggested that
the men intimidated customers. Continued conflict and prejudice from community
members led CASA de Maryland to step in and guide community meetings to address
community conflicts over the day laborer population (Toma & Ebenshade, 2001).
Already a well-established non-profit since 1985, CASA used their existing
resources to start the Day Laborer Assistance Project. In early 1991, CASA first
arranged for an employment coordinator to provide monthly visits to the informal 7-
Eleven hiring site. CASA then received a donated trailer from a local college which they
set up on site; however, nearby businesses only agreed to a six month trial period and
thus CASA sought a more permanent mechanism for assisting day laborers.
C REATING THE S ILVER S PRING C ENTER FOR E MPLOYMENT AND T RAINING
Throughout 1991 and 1992, CASA continued to organize workers into various
street activities such as marches, sit-ins, vigils, and community meetings to bring
attention to day laborer issues in Silver Spring. Within a few months the workers
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themselves created a strong group of activists. Politicians, police, and Montgomery
county officials began to recognize the importance of establishing a permanent day labor
center. In 1992, organizers won the support of the county officials who set up an
advisory committee consisting of representatives from local businesses, churches,
government, day laborers, and homeowners‘ associations. The committee met monthly
for two years, and, over the course of their negotiations, purchased a house located half
a block from the original informal parking lot hiring site. Day laborers were recruited to
the new hiring center which officially opened its doors in 1994 (Walters 2003).
C ENTER ACTIVITIES
The Silver Spring center resembles a social service agency, where day laborers
may go to access a multitude of services in addition to day-to-day job placement. The
center began with an employment placement program, where employers register and
center staff assists workers in negotiating fair wages and jobs for the day. The diversity
and breadth of services has grown to include a health education and outreach program,
ESL classes, citizenship prep courses, Spanish literacy courses, a vocational training
program, and financial literacy courses. A critical component of all of CASA‘s welcome
centers is the worker‘s associations, which allow the day laborers to develop leadership
skills and take an active role in the Center‘s operations, policies, and priorities. Finally, all
of CASA‘s welcome centers provide workers with a foundation to become involved in
coalition efforts at the state and federal level to push for a living wage law in Montgomery
County, and broader immigrant concerns with regard to health, housing, education, and
employment (CASA de Maryland).
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S TAFF AND B UDGET
The center staff consists of 3.5 full time staff members and anywhere from 10 to
20 community volunteers. The basic operating budget of the Silver Spring Center for
Employment and Training was $158,000 in 1999. Forty percent of this funding comes
from Montgomery and Prince George county governments and 60% comes from private
foundations. The total budget (1999 figures) for all of the Center‘s programs, job training,
and legal services is $385,000. CASA also generates revenue for their programs by
issuing fifteen-dollar ID cards that are accepted as a form of identification in local banks,
schools, and by the local police.
P LAINFIELD IN F OCUS
The establishment of a day laborer center in Plainfield is a critical first step in
addressing the immediate challenges that day laborers face. It is imperative that day
laborers achieve fair wages and fair treatment in local labor systems. Day laborer
centers and other one-stop employment programs are not the end-all solution to
individuals‘ unstable employment prospects. However, given the current plight of day
laborers in New Jersey (see above) a day laborer center in Plainfield could greatly
reduce the labor and human rights violations taking place every day. An initial focus on
helping the day laborer demographic connect to local employers is a necessary step in
future efforts to address unemployment in Plainfield. A great number of day laborer
centers around the United States have grown and flourished into excellent community
resource centers and vehicles for immigrant worker advocacy at a regional level.
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consortium with local non-profits and trade unions to help community members develop
skills in the construction trade. The third strategy involves a joint venture between private
and public interests including developers, construction contractors, localities and non-
profits. Contractors train and hire local residents and salvaged materials are donated to
local nonprofits for future development (HUD, 2000).
D ECONSTRUCTION AS AN E CONOMIC DEVELOPMENT TOOL
Various communities are looking to deconstruction as local economic
development tool. From Cleveland, Ohio to Atherton, California, deconstruction has
become an emerging growth sector for local economies as both private enterprises and
public interests are involved. As a part of the new green economy, deconstruction
provides a unique opportunity to create local jobs in the vital construction/manufacturing
sector.
Deconstruction is a labor-intensive operation which requires additional staffing
and work hours for construction firms. Recyclable material can be resold for near market
value or donated to local agencies such as area housing authorities. Deconstruction
directly increases the local tax base by providing employment opportunities to local
residents. Additionally, it provides savings to local governments via lowered demolition
costs and an economic incentive in the form of tax deductions for businesses to engage
in sustainable and eco-friendly initiatives. The environmental benefits of deconstruction
include reducing the amount of waste in area landfills, reducing pollution and conserving
energy resources as the need for the production of new construction material is reduced.
While the practice of deconstruction may increase the cost of redevelopment
projects because of the additional labor and time needed for such projects, its potential
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yield is why it has become recognized as an economic development tool. The revenue
gained from recycled materials and the positive impact on local economies via increased
job opportunities considerably outweighs the costs over choosing demolition as standard
practice. As a part of local revitalization strategies, the effect of such projects multiplied
can provide an enormous benefit to communities. Of the three common deconstruction
strategies used by localities, job-training programs are the most popular because of their
lower costs and direct impact on local economy (Segall, 2009).
CASE STUDY: BALTIMORE - SECOND CHANCE PROGRAM
The Second Chance is a nonprofit organization operating in Baltimore, Maryland
which deconstructs buildings and homes and makes salvaged materials available to the
public. The agency focuses on creating environmentally sound, socially responsible and
financially viable industries. In 2003, they created a training and employment program to
address the needs of residents within Baltimore‘s depressed communities. The agency
hires unemployed individuals to support its deconstruction, salvage and warehouse
endeavors. Some of the Second Chance‘s staff is formerly incarnated individuals who
otherwise may not have been hired for work.
Second Chance‘s dual purpose addresses two crucial issues facing the city of
Baltimore: a significantly high incarceration and unemployment rate and a proliferation of
abandoned and distressed properties as a result of the national economic crisis
(Robbins, 2010).
Initiated by a grant from the Annie E. Casey Foundation, the agency currently
relies on a host of partnerships which include foundations, local government and private
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organizations. The city of Baltimore has linked with Second Chance to provide the
agency with exclusive rights to all city deconstruction projects.
The city believes in the programs ability to enhance local infrastructure while
providing much needed jobs to area residents and reducing rates of recidivism. The skills
and training which participants receive through Second Chance‘s intense 16-week
program can contribute greatly to community economic development these individuals
contribute to their communities as a result (Second Chance, 2011).
P LAINFIELD IN F OCUS
As a part of the 2004 city Redevelopment Plan, Plainfield has pinpointed nearly
200 abandoned sites for demolition, revitalization or rehab. As is the case in Baltimore,
these foreclosed and bankrupt properties are a result of the current financial crisis
coupled with decades of neglect leading to urban decay. There are also several
abandoned industrial sites throughout Plainfield which have been addressed in previous
redevelopment plans. Demolition of these properties could result in the revitalization that
is needed to meet existing and future community needs. The Second Chance
Corporation provides an ideal model for how Plainfield could address its dual goals of
community redevelopment and employment development. A non-profit organization
patterned from Second Chance would necessitate a consortium consisting of the public
sector, local non-profits, and foundational support and special interest groups. In the
meantime, the City of Plainfield can employ the following strategies to embrace
deconstruction:
Undergo an RFP process to developers to rehab and redevelop properties
mentioned in 2004 Redevelopment Plan, imploring the use of deconstruction
techniques.
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Gain support from local housing non-profits by guaranteeing that salvaged
materials could be sold or donated to them, for the purpose of providing
attractive affordable housing units for area residents.
Adopt policy to make deconstruction standard practice on city redevelopment
projects including demolition of structures(for both city-owned and private
properties).
Encourage and support reuse of building materials.
URBAN AGRICULTURE AND FARMERS MARKETS: A TOOL FOR LOCAL ECONOMIC
DEVELOPMENT
D EFINITION AND C ONTEXT IN C OMMUNITY E CONOMIC D EVELOPMENT
Urban agriculture is defined as farming within and around cities, allowing it to
become an integrated part of an area‘s economic system. The system typically involves
the farming of plots of land to promote economic and health benefits for the immediate
community. The goods produced through urban agriculture can be used for personal
consumption or for mass production and sale.
Urban agriculture is also a method for remedying the food insecurity issues that
plague many impoverished areas through the supply of nutritious food which may not be
affordable for lower-income populations. The economic benefits of urban farming
ventures can be realized through the engagement of residents in the production and
marketing of their own food. For instance, local farmer‘s markets can provide
opportunities for entrepreneurial urban agriculture by offering a venue for local food
produces and farmers to sell their goods.
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APPROACHES TO U RBAN AGRICULTURE P ROJECTS
The specific form that an urban agriculture project takes on is up to the decision
makers. There are three general categories that urban farms tend to fall under:
commercial farms, community gardens and backyard gardeners. Commercial farms
generally sell directly to farmers markets and farm stands. Under the realm of
commercial farming are community-supported agriculture programs (CSA), which are
gaining popularity in many urban areas as there are at least 1,000 in the U.S. CSAs
consist of individuals who act as shareholders or subscribers to the designated farm who
pay an agreed upon price for the season for a specified amount of produce. In response
to the food security issues facing many inner-city areas, some CSAs have begun offering
shares to low-income households through grants, adopt-a-share program and other
subsidies. Community gardens are typically larger lots divided into smaller plots for each
household or individual. The food grown is usually kept for personal consumption and in
some cases it is raised with the intention of giving it away. Finally, backyard gardens,
possibly the most traditional approach, are gardens found in people‘s homes on their
balconies, decks, rooftops or backyards.
To gain a fuller appreciation for the role of agriculture in urban settings, it is
important to take a deeper look at food insecurity. Food security is the ability of people
in a community to access culturally acceptable, nutritional food through local non-
emergency sources at all times. In the face of nonexistent or a diminishing supply of
grocery stores in lower-income neighborhoods and lacking the means to purchase a
vehicle to drive to suburban area, the trip to better food sources can become costly
through the use of buses and taxi fare. In addition, those food stores that are in the
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inner-city often lack an adequate supply of healthy foods or leave perishable foods on
the shelves too long causing quality and safety issues. The consequences of these food
insecurity issues results in less healthy communities at greater risk of infectious
diseases.
C HALLENGES AND O PPORTUNITIES FOR U RBAN AGRICULTURE P ROJECTS
Urban farming can have an extremely positive impact on a community, depending
on the environment and amount of support behind the activity. Some of these activities
include making viable use of and reducing the amount of vacant, unproductive land;
improving the public image of a neighborhood; providing healthier food options for low-
income residents; supporting local and regional food systems; and developing pride and
self-sufficiency among residents who grow food for themselves and others. Urban
agriculture can also serve as a mechanism to create economic enterprises and jobs.
The means of creating an urban agriculture program can take many forms from being
initiated by a community development corporation, special interest organization, or by
school or university groups.
Additionally, there are opportunities to incorporate elements of workforce
development into an agricultural plan. One such example is the Los Angeles-based
Food from the ‗Hood (FFTH). FFTH is a non-profit started by a group of Crenshaw High
School students in 1992. They transformed an empty two-acre lot behind their school‘s
football stadium into a fruit and vegetable garden where they give away a quarter of their
produce to the needy and sell the other half for profit. The program also includes
opportunities for entrepreneurial training, work-based skills training, academic tutoring,
life skills components, and practical business experience.
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Obstacle Description Solution
Tenure
If an urban farmer does not own the land
they use, they can be at risk of losing
their investment if land is taken
- Usufruct agreements that
gives farmers legal right to use
land as long as they maintain
it
- Land trusts used to secure
land for agricultural purposes
Access to
markets
Growers can find it difficult to market
produce to groceries and restaurants if
wholesale distributor monopolies exist
- "Buy-local" campaigns
promoting locally grown food
Start-up
costs
Costs such as tools and site
management can be expensive,
particularly for low-income growers
- Tool banks giving gardeners
the option of borrowing tools
or renting them for a low fee
- "Seed" grants from
governments and foundations
- CSAs provide upfront money
Knowledge
and skills
Some urban growers may lack the
knowledge and skills in production,
processing and marketing that would
enable them to be the most successful
- Some non-profits agricultural
projects offer public education
and demonstrations
- Some school gardening
programs also offer training
opportunities
Source: Community Food Security Coalition, 2003
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The obstacles facing an urban agricultural project will vary by place. The chart
above outlines some of the more general obstacles that many projects may face along
with possible solutions. When considering undertaking a farming project, these elements
should be properly planned for to minimize the setbacks to project success.
Financing for such projects may also be a challenge. Many urban agricultural
projects carried out are not economically self-sufficient; many obtain financing from
outside sources such as grants and government funding. One long-standing source of
funding is the USDA‘s Community Food Projects grant. It began to be offered in 1996 as
a way to fight food insecurity by promoting self-sufficiency through community garden
projects in low-income neighborhoods. Some city governments have channeled funding
for urban farming through their Community Development Block Grant funds and
additional funding is often obtained from foundations and fundraising efforts of the lead
agency.
CASE STUDY: ISLES COMMUNITY FARM (TRENTON, NJ)
Founded in 1981, Isles is a community development corporation that is based in
Trenton, New Jersey. The City of Trenton has a population of 84, 913 that is 49.8%
African-American, 33.7% Latino or Hispanic and 13.5% White. It had an estimated
median household income of $35,372 with 17.6% of residents living below poverty level.
Isles‘ urban farming efforts fall into the realm of its environment and healthy
communities services. The organization has 65 gardening sites throughout Trenton that
produce 120,000 pounds of food annually. Isles‘ strategy for urban farming consists of
using underutilized greenhouses and five acres of farmland on the West Windsor
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campus of Mercer County Community College that employ Trenton residents and supply
the city with organically-grown produce. In terms of financing, the project received seed
money from a 1997 USDA Community Food Projects grant for $114,000 over three
years and funding from the New Jersey Department of Labor to support the job training
component.
Since its inception the project has been able to maintain a steady flow of produce.
In the first year of production it provided 7,500 pounds of vegetables to the local food
bank and sold 2,500 pounds through youth farmers markets. Isles has also begun a
CSA program to offset the costs of production that, along with sales of cut flowers and
outside donations, garnered the organization $6,000 in revenues during the first year.
To increase the revenue of the gardening project, the CSA shares are sold at $300 to
$400 per share depending on family size. The organization has noted, however, how the
lack of skilled laborers in the inner-city has added complications to meeting profitability
expectations and it is looking into other partnering strategies to meet the optimistic
expectations set for this project.
P LAINFIELD IN F OCUS
Below are a few ways in which urban agriculture projects may be implemented in
Plainfield.
Given Plainfield‘s demographics, the environment is ripe for an urban farming
pilot. The unutilized industrial buildings and surrounding land are perfect for an
urban farm (if there are no contamination issues) and farmer‘s market location.
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Plainfield‘s large population of unemployed or underemployed individuals can
serve as a great labor resource if a large-scale farming project were to be
implemented.
The addition of a farmers market that pulls from local and regional farmers that
incorporates EBT-payment capabilities could also bring increased patronage to
the city and expand the accessibility to the lower-income population (for examples
visit www.crescentcityfarmersmarket.org and
http://www.cachampionsforchange.net/en/OurCommunity.php - Food Stamps at
the Farmers Market).
Partnerships are key. To have the most success, Plainfield would need to identify
the most relevant local and external partners but would likely need to designate a
city department to oversee the project.
An urban farming project can serve as a great place-based asset and provide
residents with easily accessible fresh foods and may also help to improve the
image of Plainfield. Sustainability practices speak to the locality‘s ability to look to
the long-term effects of the decisions it makes, which can translate into a
perception of a forward-looking local government that knows how to respond to
the needs affecting its citizens.
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RESHAPING THE FUTURE: EDUCATION AND YOUTH DEVELOPMENT STRATEGIES
RE-ENGAGEMENT CENTER INITIATIVES
I NTRODUCTION
Engaging youth is a key part of community economic development. Developing
an educated workforce begins with empowering and educating youth. Ideally, young
people go to school, graduate and then participate in the workforce. However, for many
youth in urban areas, this is not the norm. An increasing number of youth are
disconnected from the education system either by dropping or failing out of school. A
Johns Hopkins study stated that 45% of Philadelphia‘s youth drop out of high school
(School District of Philadelphia (SDP), 2009). As a result, the city has placed youth
engagement high on the agenda. The school district has created ―Re -engagement
Centers‖ to help youth get back into school. A re-engagement center ―provides youth and
their families with ‗one-stop‘ access to information and placement services leading to re-
enrollment in a high school diploma or GED program‖ (SDP). The purpose of this case
study is to examine the development of youth re-engagement centers in Philadelphia,
Pennsylvania and how the process can be utilized by Plainfield, New Jersey in an effort
to improve youth workforce development.
O PPORTUNITIES AND C HALLENGES IN THE C REATION OF R E - ENGAGEMENT C ENTERS
There are several benefits that arise from developing re-engagement centers.
One benefit is that the city would be creating a better-educated workforce by increasing
the number of youth with high school diplomas or GEDs. Additionally, including
supportive services to re-engage youth increases the likelihood that they will complete
their diploma. If the resources that youth need to enroll in school are held in central
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place, it decreases the bureaucracy they usually encounter. This will also contribute to
their likelihood of completion. Re-engagement centers can also be combined with other
programs to help further the clients‘ education beyond high school. A combination of
programs will multiply the aforementioned benefits.
In coordinating re-engagement efforts a city will face obstacles, some beyond
their control. A major obstacle will be funding. The re-engagement center will need
funding for staff and operating costs, which a city may not have. The city may also
experience difficulties with collaboration. In order for the effort to be successful, several
city agencies and the school district will have to communicate with each other—this may
be a challenge. Furthermore, an issue beyond the city‘s control is whether youth will
actually use the services.
CASE STUDY: DEVELOPING RE-ENGAGEMENT CENTERS IN PHILADELPHIA, PA
D EMOGRAPHICS
Philadelphia, Pennsylvania is the nation‘s fifth largest city. It is the county seat for
Philadelphia County, which was consolidated with the city some time ago. It has a
population of over 1.5 million people (U.S. Census Bureau, 2000). The population is
diverse, with approximately 45% being white and 43 % being African-American. Only
8.5 % of the population is of Hispanic descent. Youth make up a significant part of the
population—37% of the population is under 25. Approximately 71% of the population 25
years or older have a high school diploma, 18 % have a bachelor‘s degree. The median
household income is just over $36,000.
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E CONOMY
The city is suffering with an unemployment rate of 10.8%, with approximately 25%
of residents living below the poverty line (U.S. Census Bureau). Manufacturing, finance,
healthcare, printing and publishing, pharmaceuticals, biotechnology, retail and tourism
are some of the key industries in Philadelphia‘s local economy (Education Portal). The
top five employers in Philadelphia include: University of Pennsylvania, Temple
University, Albert Einstein Healthcare Network, Aramark, and Thomas Jefferson
University. The city has several higher education opportunities, including universities and
various technical schools, for adults wishing to further their education.
P OLITICAL C ONTEXT
The City of Philadelphia has placed the issue of youth development at the top of
the agenda due to the increasing number of youth out of school and the workforce. In
his inauguration speech in January 2008, Mayor Michael A. Nutter directly confronted
issues of education and career preparation, pledging to reduce the high school dropout
rate by 50% in 5 to 7 years (or inversely raising the graduation rate to 80%), and to
double the baccalaureate attainment rate of Philadelphians in eight to ten years
(Hastings 2009).
This decision has positively influenced the political climate surrounding education and
youth engagement. The Mayor‘s Office of Education (MOE) is crucial in the city‘s
efforts. The MOE has no authority over school districts or city agencies; however, the
office builds networks for communication and collaboration ―between and among key
partners, and identify common ground on which all interested parties could work
collectively‖ (SDP, 2009).
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The MOE established the Philadelphia Council for College and Career Success, a
high-level leadership body appointed by the mayor. The council is comprised of leaders
in the business community, city government, the school district, higher education
institutions and community organizations. A Council Leadership Team was also
established—it includes the Chief Education Officer, Superintendent of the School
District, a major area employer and a university president. The leadership team
establishes the priorities of the council, identified needs and created measures to
evaluate the effectiveness of the council‘s work. The Council and Leadership team
provide a supportive environment for the formulation of innovative youth programs.
P ROCESS
In 2008, Lori Shorr was hired as the new Chief Education Officer (Mezzacappa,
2008). Shorr was charged with developing a re-engagement center for the city. The
idea originated from Project U-turn, a collaborative which includes several organizations,
agencies, and individuals interested in youth re-engagement. The re-engagement center
would be targeted to youth between the ages of 15 and 21. Ultimately, the center would
also connect students to comprehensive resources including childcare, employment and
transitional support to aid in successful school re-enrollment.
One of the major challenges Shorr faced was protocol. Shorr asserts that the
youth ―face[d] a hit-or-miss bureaucracy‖ when contacting the school district for
information. Prior to the establishment of a center, youth would have to go to their
former school to get information regarding credits earned toward graduation. The re-
engagement center would centralize all of this information with connections to family
court, behavioral health, and child welfare. This information was previously stored in the
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schools themselves. Additionally, the center would conduct an academic evaluation,
including reading and math levels. The challenge was to get all of this information from
each high school in the district and combine it into one system.
D ISTRICT -C ITY C OLLABORATION
Because the re-engagement center idea was handed from the top down,
accessing school data was not difficult. However, difficulties arose in data alignment.
Shorr wanted to link the school district data with agencies including Department of
Human Services, Department of Behavioral Health, Health Department and Office of
Supportive Housing (Harris, 2009). The district academic and social data on each client
has to be linked with any existing data in the other agencies named above. Other cross
agency efforts included the Health Department training principals in case management
and the Office of Supportive Housing staff being trained in educational issues (Harris
2009).
O UTCOME OF THE R E - ENGAGEMENT C ENTER
The re-engagement center opened its doors on August 19, 2008. It operates
under the Office of Multiple Pathways to Graduation. The Department of Human
Services and school district jointly staff the center. A second re-engagement center was
opened in August 2010. The program is funded by the American Recovery and
Reinvestment Act and through the Philadelphia Youth Network, a non-profit, and the
William Penn Foundation. Nine staff where hired to run the initial center, six of them were
hired through the school district, one through the Office of Mental Health and one
through the Department of Human Services. The re-engagement centers have served
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over 5,000 students since their opening (SDP). To better understand the re-engagement
center experience, see Table 5.
Table 5. Re-engagement Center Experience
Step 1. Intake Process—Student‘s history is printed up and
client is assigned to a re-engagement specialist.
Step 2. Assessments—Student is assessed and referrals are
made for clinical interview if necessary.
Step 3. Student meets with Re-engagement Specialist—The
specialist asses needs (educational and non-
educational), the student is connected to resources,
and a written action plan is developed for the student to
enroll in an education program and access further
services.
Step 4. Students meet with REC Advisor—Advisor conducts
clinical interview and assesses behavioral health
needs, appointments set for treatment services if
necessary.
Step 5. TABE Testing—Students take tests to determine their
reading and math levels.
Step 6. Referrals—Students are referred to educational
program, staff contact program and student for 4
months to follow up.
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The Re-engagement Centers experience several unintended consequences and
operational challenges. The first challenge is that the center receives high volumes of
calls and walk-ins during peak months. The centers constantly have waiting lists for
youth wishing to return to school. Another challenge includes the data tracking system.
Though the system is running, it cannot be aligned with the service delivery plan created
by the specialists. An unintended consequence is that once students are properly
processed and referred, they have no program to attend because they also have waiting
lists. Additionally, the centers are currently struggling finding appropriate programs for
special education students. Finally, the staff experiences difficulty with following up with
students because their contact information is outdated.
P LAINFIELD IN F OCUS
How is this applicable to Plainfield? The City of Plainfield also struggles with
disconnected youth at a different scale. If Plainfield decides to undertake a re-
engagement center initiative, we recommend the following:
Research —use available resources to research the number of high school
dropouts in the city to understand the scope of the problem.
Inventory —take inventory of available high school diploma/GED programs
currently existing. If current programs have capacity for additional students, refer
clients to this program after the establishment of a re-engagement center.
Data collection —gather high school academic data and keep it on the district
level.
Collaboration —the school district must collaborate with other city agencies such
as Health and Human Services to provide a comprehensive program. Coordinate
with fewer agencies in the beginning stages, as the center grows include
additional relevant city agencies.
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Funding —seek Workforce Investment Act funding to fund the center. If the center
becomes successful, seek philanthropic contributions.
COMMUNITY SCHOOLS: CONNECTING NEIGHBORHOODS, FAMILIES, AND SCHOOLS
W HAT ARE C OMMUNITY S CHOOLS ?
Community Schools are neighborhood centers that connect local schools with
neighborhoods in order to deliver a wide array of services to students and their families.
Unlike a regular public school where children attend classes and some extracurricular
activities, the community school model relies on partnerships between schools and
community institutions which integrate academics, health and social services, and civic
engagement. In short, a community school is organized around local needs and links
local organizations, businesses, and partner agencies to create specialized programming
and social services for students and their families. Community school initiatives lead to
improved academic performance, reduced dropout rates, improved behavior and youth
development, and greater parental involvement in students‘ education and in the school
(Coaltion for Community Schools 2009).
K EY E LEMENTS OF A C OMMUNITY S CHOOL
The Coalition for Community Schools identifies five broad areas in which Community
Schools offer programs and services:
1) Quality Education with a specific focus on community-based learning, which
emphasizes civic education and service learning.
2) Youth Development programs
3) Family Support services include early childhood development programs, mental
and social health services, and counseling.
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4) Family and Community Engagement programs designed by families and
community members.
5) Community Development initiatives that aim to enhance the school‘s surrounding
physical and social environment.
Of course, the topics listed above are very broad; it is up to the individual
communities to design programs that address specific local needs. These core areas,
however, serve as a basic guide for Community Schools all over the country. Community
School initiatives have spread to localities in roughly 44 states and serve an estimated
5.1 million children and youth (Coalition for Community Schools March 2009).
H OW ARE C OMMUNITY S CHOOLS F UNDED ?
In general, about half the funding for a Community School comes from federal,
state, and city funding. The rest of the funding streams come from the school district,
private foundations and businesses, donations, community based organizations, and in-
kind support (Blank 2010) .The funds granted to a given Community School are used for
a number of different services and programs. On average, the funds are allocated in the
following ways:57% is used for academic enrichment, after-school activities, service
learning and civic engagement, life skills, and recreation;12% goes toward programs that
support families;12% goes toward site staffing; 19% is for health and mental health
services. The types of available programs in a community school (and the funding
sources needed to deliver such programs) are illustrated by the Portland, Oregon SUN
(Schools Uniting Neighborhoods) School initiative described below.
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CASE STUDY: SCHOOLS UNITING NEIGHBORHOODS (SUN) INITIATIVE
H ISTORICAL AND D EMOGRAPHIC C ONTEXT OF SUN I NITIATIVE
The City of Portland is Oregon‘s most populous city and is the seat of Multnomah
County. The city has a total population of 548,998 that is 6.4% African-American, 8.8%
Hispanic or Latino (of any race) and 78.8% White. It had an estimated median
household income of $48,053 with 9.9% of residents living below poverty level.
The Schools Uniting Neighborhoods (SUN) Initiative was created in response to
the City of Portland‘s struggling school system. In the late 1990s, public schools in
Portland had a difficult time keeping their doors open for the duration of the school year.
A lack of funding, a growing achievement gap, and the city‘s changing demographic
groups who were not effectively served by the school system, led school officials to seek
for innovative solutions. In 1998, The City of Portland and Multnomah County partnered
together to implement a more comprehensive model of service delivery within a handful
of public schools (today there are 59 participating schools). Programming and service
delivery at SUN Schools is community-driven . That is, the services provided at any
school are targeted to cater to the specific neighborhoods in which they are located. An
advisory committee at each school conducts local needs assessments and works with
school staff, community leaders, students, and parents in order to create partnerships
with local organizations and institutions that will best serve the schools‘ demographic.
The SUN Initiative exists at the elementary, middle, and high school level at 59
schools in 6 school districts in Multnomah County. Altogether, SUN Community Schools
collaborate with 350 business and community partners.
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All SUN Schools share a common set of goals including:
1) Increase the capacity of schools to provide an environment for expanded
services that aim to improve academic achievement, attendance, and other youth
development skills2) Increase family involvement and provide school-based activities that build
parents‘ and students individual assets
3) Increase the involvement of community organizations and businesses in school
service delivery and
4) Improve collaboration among school districts, local governments, community
agencies, and business and citizen leaders.
5) Increase the use of publicly available facilities and services by locating them
within community based neighborhood schools (Iverson, 2005).
O PERATIONAL ASPECTS OF SUN S CHOOLS
While the services at SUN Schools are tailored to specific neighborhood needs,
SUN Schools have similar operational and leadership structures. All SUN Schools
function with the guidance of a non-profit ―Lead Agency‖ who acts as the managing
partner of the school and connects the school to community resources. Staff from the
lead agency work with the school principal and an advisory team to select a Site
Manager, who coordinates the extended day programs and maintains close relationships
between the school and community partners. In addition, there is usually an operating
team comprised of the school principal, a full-time SUN Community School Site
Manager, and Supervisor from the Lead Agency who meet to handle day-to-day
operating issues. In addition there are other advisory structures made up of community
members, parents, partnering agency representatives lead by the principal and school
staff who sustain partnerships and manage resources. Finally, there is usually some type
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With seed money from Bank of America plus three years of support from Portland City
Council‘s Time 4 Kids Initiative, the principal implemented the SUN structure in 1999.
School services are targeted to individuals within the neighborhood but are open
to anyone. In the years 2009-2010 the school offered almost 50 extended-day activities
ranging from sports programs to tutoring with Reed College, to El Programa Hispano, to
adult education courses. Culturally specific social services and case management is
provided on-site. There is also a health center (operated by Multnomah County) onsite
that provides physical and mental health support services to students and families. In
addition, dinner is provided for students every day after school.
Community partners include: Portland Parks and Recreation; Multnomah County
Dept. of Human Services and Health; Impact Northwest; El Program Hispano, Reed
College, Portland State University; Learning Gardens (SUN Service System).
R ESULTS
After implementation of the SUN structure, teachers surveyed at Lane indicated
that 63% of students improved classroom academic performance; 59% showed
increased punctuality in submitting homework on time; 56% had a more positive attitude
toward school; 59% showed improved teamwork capabilities (SUN Services System).
R ECOMMENDATIONS
The State of NJ Department of Children and Families currently has a School-
Based Youth Services Program (SBYSP) which takes a preventative approach to
potential obstacles that at-risk youth and adolescents may face (State of New Jersey
Department of Children and Families). While helpful for providing health and mental
wellness services to youth, the programs could be improved with a more robust,
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community-oriented approach that aims not just for service delivery but for extended-day
programs and innovative coursework. The SBYSP could be a launching point for
community schools that are similarly well rounded as the case described above. Schools
in Plainfield and in Union County that have an existing SBYSP structure should
collaborate with city agencies to pool more funding for community-specific programs and
innovative services at Plainfield‘s schools.
P LAINFIELD IN F OCUS
Build alliances with local day laborer advocates and community members and
take steps toward developing a formal day laborer hiring center.
Address existing community conflict over informal day laborer hiring sites and
spread awareness about the struggles that Plainfield‘s day laborers face.
Adopt a deconstruction and sustainability initiative such as reuse and recycled
building materials as a part of its standard practices with concern to demolition,
revitalization or rehabilitation projects.
Initiate urban agriculture projects in order to put vacant land back to productive
use, provide employment opportunities for residents, and create gathering spaces
in the community.
Collaborate with the school district and other city agencies to develop a
comprehensive approach to re-engaging youth who have left or are at risk of
leaving school.
Initiate steps toward creating holistic Community Schools in Plainfield by building
on existing School-Based Youth Services programs in New Jersey.
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DEVELOPING PEOPLE, DEVELOPING PLACE
W ORKS C ITED FOR D ECONSTRUCTION P ROJECTS C ASE
Kimmet, C. (2011, January 18). Building Jobs by tearing down houses the green way.The Tyee. Retrieved from http://thetyee.ca/News/2011/01/18/TearingDownHouses/
Robbins, H. (2010, June 28). Jobs for Ex-Offenders in the Green Economy. The Root.Retrieved from http://www.theroot.com/views/jobs-ex-offenders-green-economy
Segall, G. (2009, January 3). Deconstruction salvages abandoned Cleveland Homes.Cleveland.com. Retrieved fromhttp://blog.cleveland.com/metro/2009/01/deconstruction_salvages_abando.html
Second Chance, Inc. (2001). About Us. Retrieved fromhttp://www.secondchanceinc.org/index.aspx?u=About_Us
U.S. Department of Housing and Urban Development. (2000). A Guide toDeconstruction. Washington, DC: U.S. Government Printing Office.
U.S. Department of Housing and Urban Development. (2001). A Report on theFeasibility of Deconstruction. Washington, DC: U.S. Government Printing Office.
U.S. Environmental Protection Agency. (2000). Building Savings. Washington, DC: U.S.Government Printing Office.
U.S. Environmental Protection Agency. (2008). Recover Your Resources. Washington,DC: U.S. Government Printing Office.
ADDITIONAL R ESOURCES FOR D ECONSTRUCTION
www.deconstructioninstitute.com www.epa.gov
W ORKS C ITED FOR D AY LABORER C ENTERS C ASE
CASA de Maryland www.casademaryland.org
Fine, J. (2006). Worker Centers: Organizing Communities at the Edge of the Dream.Ithaca, NY: Cornell University Press.
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W ORKS C ITED FOR R E - ENGAGEMENT C ENTERS C ASE
Almond, H., & Morris, M. (n.d.). Re-engagement center overview. Mhwest.com .Retrieved March 15, 2011, from
www.mhwest.com/downloads/Philadelphia%20Powerpoint.pdf
Bailey, S. (2010, September 14). School district opens 2nd Re-Engagement Center.PhillyTrib.com: Philadelphia news . Retrieved April 23, 2011, fromhttp://www.phillytrib.com/tribune/learningkeyheadlines/14482-school-district-opens-2nd-re-engagement-center.html
Beyond city limits: cross-system collaboration to re-engage disconnected youth. (n.d.).NLC.org . Retrieved March 15, 2011, fromwww.nlc.org/ASSETS/986F4B75DF524770A398BF1459940D57/07_YEF_CaseStudies.pdf
Education mid-term report. (2010, January 13). Phila.gov . Retrieved March 15, 2011,from www.phila.gov/PDFs/Education_MidtermReport.pdf
Harris, W. (n.d.). City agency collaboration: can we turn talk into action? United Way of Southeastern Pennsylvania . Retrieved April 15, 2011, fromhttp://www.uwsepa.org/media_release.asp?releaseid=401
Hastings, S. (n.d.). Putting youth to work series: examples of effective practice indistressed communities. Clasp.org . Retrieved March 15, 2011, fromwww.clasp.org/admin/site/publications/files/Philadelphia-full-profile-final.pdf
School District of Philadelphia. Imagine 2014: Strategic Plan. (n.d.). Phila.k12.pa.us .Retrieved March 14, 2011, fromhttp://webgui.phila.k12.pa.us/uploads/dr/HY/drHYRgSvGohGA84W7vPFJw/Imagine-2014-Strategic-Plan.pdf
Mezzacappa, D. (n.d.). City's new education chief spearheads re-engagement center.Philadelphia Public School Notebook . Retrieved April 15, 2011, fromhttp://www.thenotebook.org/print/204?page=show
Mezzacappa, D. (n.d.). Re-engagement center data: A look at Philadelphia's out-ofschool population | Philadelphia Public School Notebook. Philadelphia Public School Notebook . Retrieved April 15, 2011, fromhttp://www.thenotebook.org/spring-2009/091180/re-engagement-center-data-look-philadelphia-out-school-population
Philadelphia, PA education and city information. (n.d.). Education-portal.com . RetrievedMarch 15, 2011, from http://education-portal.com/articles/Philadelphia,_Pennsylvania_Education_and_City_Information.html
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Re-engagement Center. (n.d.). Re-engagement Center Website . Retrieved March 15,2011, from http://webgui.phila.k12.pa.us/offices/r/alternative/programs--services/multiple-pathways/re-engagement-center
Shaping an Educated City: Two-Year Report on the Mayors Education Goals. (n.d.).Phila.gov . Retrieved March 15, 2011, fromwww.phila.gov/PDFs/featureEducation.pdf
U.S. Census Bureau. 2000. United States Decennial Census. Retrieved March 15, 2011,from http://www.census.gov
W ORKS C ITED FOR C OMMUNITY S CHOOLS C ASE
Blank, M. et al. November 2010. Financing Community Schools: Leveraging Resources
to Support Student Success. Retrieved from:http://www.communityschools.org/assets/1/AssetManager/finance-paper.pdf
Coalition for Community Schools. 2009. Coalition for Community Schools Research Brief 2009 . Retrieved from:http://www.communityschools.org/assets/1/AssetManager/CCS%20Research%2
0Report2009.pdf
Coalition for Community Schools. www.comunityschools.org
Coalition for Community Schools. March 2009. Community School Initiatives State-to-
State. Retrieved from:http://www.communityschools.org/aboutschools/directory.aspx
Iverson, D.. (Fall 2005) Schools Uniting Neighborhoods: The SUN Initiative in Portland,OR. New Directions for Youth Development No. 107. Wiley Periodicals, Inc.
Multnomah County SUN Service System. http://web.multco.us/sun
State of New Jersey Department of Children and Familieshttp://www.state.nj.us/dcf/prevention/
SUN Service System. 2010. SUN Community School Profile- Lane MiddleSchool.Retrieved from:http://web.multco.us/sites/default/files/sun/documents/site_profile_lane_09-10.pdf
U.S. Census. American Factfinder. http://factfinder.census.gov/
R ESOURCES FOR C OMMUNITY S CHOOLS
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How-to Guide for Starting a Community School The Children‘s Aid Society. Building a Community School. September 2001. Third
edition. http://www.childrensaidsociety.org/publications/building-community-school-parents-guide accessed April 14 2011.
FAQs about Community Schools The Coalition for Community Schools is an alliance of state and local community schoolnetworks that provides support and technical assistance to community schools; housedwithin the Institute for Educational Leadership.
http://www.communityschools.org/aboutschools/faqs.aspx
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SECTION THREE
BUSINESS AND ASSET DEVELOPMENT
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INTRODUCTION
Traditionally, cities relied on attracting business as a means to create, jobs, and
increase overall economic well being. With notable exceptions, it is unlikely that
companies move to another place or region solely based on financial inducements. This
dooms any local economic development strategy based only attraction policies. It does
not link larger city and regional dynamics to the core reason for development: creating
economic opportunity and ensuring a good quality of life in any community. As cities
become aware of this disconnect and see that local economic development is not
effective without the community they are beginning to combine the two. Development
practices in developed regions are moving toward an integrated set of strategies called
local and community economic development.
This section covers the need for retaining, cultivating, and expanding existing
businesses in the City of Plainfield. We present cases that use strategies such as small
business incubators, loan and grant programs, gap financing, small business training
and tax increment financing to make the case that small business development is the
most logical local and community economic development strategy for Plainfield absent
efforts to develop a strategic plan for economic development that targets mid-sized
industries for relocation or branch plant placement. We also introduce here the concept
of community development finance which when complemented strategies to support and
expand local businesses produces an opportunity to develop the assets of both people
and place.
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RETAINING AND EXPANDING EXISTING BUSINESSES
EXISTING BUSINESS: AN ECONOMIC DEVELOPMENT STRATEGY
Existing businesses in any city face multiple barriers to growth. These barriers
include compliance with regulations, lack of trained workforce, marketing inexperience,
difficulty in finding financing, and shortage of space in which to expand. Too many
barriers and too few resources to overcome them can often leads to business failure.
Over the last twenty-five years, new administrative and financial tools have come on the
scene that helps small business survive. Often local governments partner with others to
support these small business strategies or directly hosts a strategy – such as a revolving
loan fund. We focus on business support and retention policies here as distinct from
attracting new businesses especially those employing twenty-five people or more.
Plainfield should pursue attraction policies, but only after going through a strategic plan
that identifies (1) a type of industry niche that will likely attract a significant cluster of
businesses (2) growing the city‘s marketing capacity to mount effective outreach to
business (3) developing the requisite financing strategies to appeal to mid-to large-scale
employers.
B USINESS R ETENTION AND E XPANSION AT A G LANCE
A Business, Retention and Expansion (BRE) strategy is a formal commitment by
local government to support its existing businesses through removing barriers to growth
and creating opportunities for businesses to excel. A BRE strategy provides businesses
with a variety of resources that they need to succeed. The Retention side includes
identifying businesses at risk to closing or relocating and providing needed assistance to
prevent closing, relocation, or downsizing. Expansion assistance includes identifying
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businesses ready for growth and providing help such as access to capital, help with
―back office functions,‖ and aid in securing space for expansion. Other general
assistance may include guidance on regulatory compliance, assistance with job training,
business plan development, developing a marketing strategy.
P LAINFIELD I N F OCUS
One key strategy of BRE is that Plainfield must be able to identify existing resources
for local businesses, leverage those resources, and put businesses in touch with these
resources that engender growth. One suggestion is that the city set up a Business
Retention Office in its economic development office. The BRE Office does not have to
become a subject expert on all businesses issues. Instead, the BRE Office needs to
become proficient in identifying existing resources and leveraging their services to assist
Plainfield businesses.
The foundation of a successful BRE strategy is an understanding the answers to
three questions:
What are our regional strengths and weaknesses for promoting local small
businesses that are sustainable not only by attracting local customers but those in
a twenty-mile radius?
What opportunities exist to develop clusters around say servicing transportation
(auto shops), personal services, retail or any number of available sectors that
might grow the small business sector in a community?
How can we best build strengths, reduce weaknesses and target business
development?
These questions apply to every municipality attempting to promote economic
development. The need is particularly high for municipalities that seek economic benefits
from public and private investments in new infrastructure, facilities and support services.
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That is because the effectiveness of any particular BRE hinges on managing or
eliminating barriers to economic development surfaced by the forgoing questions. For
Plainfield, the recommended BRE Office must:
Work with existing business to identify areas of need and link with available
possibilities to enhance their businesses such as state-level economic
development assistance, building private sector partnerships, and local resources
such as subsidies for commercial space.
Develop trust relationships with local businesses so that they recognize BRE as
an advocate that can assist them in growing their markets and customers.
Routinely analyze national and regional business trends and their relevance to
Plainfield.
Be able to measure its effectiveness in retaining and expanding businesses.
E XAMPLE BRE I NITIATIVES
There is no gold standard for specifying a business retention and expansion
strategy. We present some cases here for Plainfield to consider using as a departure
point for assessing and enhancing present BRE strategies.
CASE STUDY: BRE PROGRAM, ALEXANDRIA, MINNESOTA
In 2005, Alexandria initiated its BRE program by forming a leadership team to
drive the effort. Members of the leadership teams included: executive director of
Economic Development Commission, executive director of Chamber of Commerce, dean
of local technical college, city planner, representative from the leading local bank, and a
resident. Then the BRE program recruited 22 additional people to serve on a task force
to conduct business surveys; 39 surveys were conducted at businesses over the course
of a month. The University of Minnesota analyzed the survey results. Among other
things, the BRE program determined that many of the community and business leaders
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were in the boomer generation, and only 10 percent of leaders were in the ―next
generation‖; thus business succession planning was key to retaining and expanding
businesses.
As part of the BRE succession planning effort, business leaders invited young
professionals into a mentoring relationship. Through this relationship leaders were able
to share their business knowledge and young professionals gained an understanding of
the gaps they will need to fill in come years. Businesses were then encouraged to begin
succession planning as strategy to ensure local businesses continued after present
owners left the scene. Business succession planning may seem a limited outcome, but it
focused effort on the part of BRE stakeholders. Rather than begin with an effort without
broad appeal, the focus on succession planning (admittedly fraught with its own danger
to divide) encouraged focus on a key asset: (1) leaders of a certain age and their
businesses and (2) how to transmit the wisdom they accrued while preserving the
businesses for the continued benefit of the community.
CASE STUDY: OPEN TO BUSINESS, MINNETONKA, MN
Minnetonka is a suburban city in Hennepin County, Minnesota eight miles west of
Minneapolis. As of 2009 the city has population of 51,451which makes it the 14 th largest
city in Minnesota. The city is home to Cargill, the country‘s largest privately owned
company and United Healthcare, largest publicly owned company in Minnesota.
Minnetonka has a highly educated workforce according to the 2000 with 95.9 % of
its population obtaining a high school education and 51.6% having a bachelors degree or
higher. Minnetonka is home to several multi-nationals and regional corporations. The city
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has only one percent of land that is undeveloped. This illustrates the point that any new
development in the city will come in the form of redevelopment of existing small
businesses. This caused the city to recognize the importance of the locally owned and
operated small neighborhood businesses to its economy and livability. Coming to that
realization the city recognized they had no viable plan in place to foster small businesses
development or growth of those already in existence.
To grow smaller businesses, the City of Minnetonka entered into a collaboration
called the Minnetonka Open to Business program. This collaborative effort with the city
and the Metropolitan Consortium of Community Developers (MCCD) provides person-to-
person assistance from the MCCD staff, customized to meet the needs of small business
owners and operators. Clients receive help in planning and organizing their business
ventures, financial management, marketing, and regulatory compliance. MCCD also has
a small business loan fund that it used to help entrepreneurs access the capital for
business growth.
The Open to Business program does can best be described as small business
entrepreneur therapy. The Metropolitan Consortium of Community Developers or MCCD
helps entrepreneurs by giving them objective advice ensuring those business owners
who seek their advice get all the market research required. MCCD is an association of
43 not for profit community development agencies tasked with providing economic
opportunity throughout the Twin Cities metro area. It is not just about business coaching,
they also operate a small business loan fund, which they use to encourage
entrepreneurs to grow their businesses, providing much needed capital that in the past
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would be unavailable. MCCD have loans that range from $2,000 to $25,000 that are
readily available for qualified small businesses.
MCCD helps small businesses define their market. Any resident or small
business owner in Minnetonka has access to the same Open for Business small
business therapy for free. Their motto being, most businesses begin as a small business.
Some stay small in scale and scope, others continually grow and diversify.
While Minnetonka has a strong business outreach program, it focused primarily
on attracting Fortune 500 companies, overlooking small business development. To
address this issue the city paid MCCD $10,000 to assist small business development
services the city could not provide. Under the agreement with MCCD, small business
owners get the information, advice and access to financing. A small business loan fund
is used to encourage entrepreneurs to grow their businesses providing capital that
previously would be unavailable, with loans ranging from $2,000 to $25,000 for qualified
small businesses.
With the current economic climate, the Open to Business program helps to
support small businesses by providing market research behind small businesses it
increases their chances of succeeding by clearly identifying who their target market is
and then researching and developing strategies to reach that market.
They first pick the small businesses‘ original plans apart and explain where their
model is really strong and where they need to focus more attention. The reason so many
small businesses don‘t succeed is not because of a lack of effort , but a lack of a solid
plan and that is what the Open to Business Program is designed to do provide help in
developing that plan.
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In 2010, Minnetonka‘s planning commission saw a 36% increase in permit
requests for small businesses and development. This is almost unheard of in a down
economy. The Metropolitan Consortium of Community Developers services are available
for consultation the third Tuesday of each month at City Hall as a large portion of the
programs users are business owners seeking to expand operations in Minnetonka, or
entrepreneurs with a great idea and the drive to make it happen but who lack the
resources. The city has a deal with MCCD to pay its consultants a $50 hourly fee, up to
$5,000. Participants in the program pay nothing for the services.
MUNICIPAL FINANCING OF SMALL BUSINESS
GOVERNANCE AND BUSINESS: AN ECONOMIC DEVELOPMENT STRATEGY
Government should not be the first choice in financing small business, but it is not
a rarity to see municipalities either provide financing or partner with others to do so. The
reason for government involvement in direct financing varies, for example: local financial
institutions cannot profitably make small business loans in the community, or local
entrepreneurs may lack equity. The best case for the use of government sponsored
financing is not support entrepreneurs at the small end of the capitalization spectrum
(other resources and effort such as community development finance should occupy that
niche), rather municipal resources should be part of a strategic effort to attract or grow
new and emerging industry. Pittsburgh is illustrative of this point, but many jurisdictions
are pursuing a similar course.
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CASE STUDY: FUNDS, PITTSBURGH, PENNSYLVANIA
Pittsburgh offers a wide variety of financial products with the goal of business and
real estate development. These programs provide ―gap financing‖ by working with
traditional financial institutions to structure deals that are already on the verge of viability.
U RBAN D EVELOPMENT F UND
This program provides gap financing at market-rate interest for the development
of vacant or underutilized residential developments. Conditions for approval include the
need for one job to be created for every $30,000 invested; that low- to moderate-income
persons must fill 51% of jobs created; and that the development must be located within
the city. Duration of loan terms is determined by private lenders but may not exceed 20
years. Loans are provided for up to 40% of project costs, and loans range from $25,000
to $250,000. The city charges a variety of fees that total roughly 2.5% of principal. The
city also charges an annual 0.5% ―loan servicing fee.‖ The program is funded through a
combination of city funds and Community Development Block Grants (CDBGs) from the
US Department of Housing and Urban Development (HUD) (Pittsburgh: Urban
Development, 2011).
P ITTSBURGH E NTREPRENEUR G ROWTH F UND
This program provides up to 60% of the more ―soft‖ costs for starting/expanding
Pittsburgh businesses in emerging industries; e.g., information technology or ―green‖
technologies. Loans are available at unspecified ―below-market‖ interest rates. Loans
amounts range from $20,000 to $200,000, or up to 60 percent of project costs. The city
charges a 2 percent ―due diligence‖ fee at closing, and a 0.5 percent annual ―loan
servicing‖ fee (Pittsburgh: Entrepreneur Growth, 2011).
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LESSONS FOR P LAINFIELD
An effective business and retention strategy begins with the municipality‘s
capacity to focus sustained effort on outreach and assistance to the
stakeholder community – in this case, business owners.
Outreach begins with a survey assessment the needs and capacities of
existing businesses.
Develop diverse public/private partnerships to implement the business,
retention and expansion strategy thereby maximizing community-wide
resources and legitimacy.
Focus on one or two ―winnable‖ BRE strategies (such as Alexandria focusing
on succession planning) at the beginning. Gaining initial legitimacy allows
confidence in pursuing more complex strategies to help local businesses.
Provide tangible, measurable services to the small businesses such as access
to capital or organizational development assistance.
Hire someone with business experience to run BRE office – if adopted as a
strategy. Business owners tend to work better with outreach staff that has run
a business even if they did not experience success on the initial try.
Find a local university that will assist with the knowledge building portion ofthe BRE especially is BRE staff support is limited to one or two staffers who
might be best used in direct outreach.
Agree on the best strategic use of financing dollars made possible through the
Community Development Block Grant or state economic development
programs. Often such resources are dispensed to try and help any or all
businesses that are viable. As difficult as it may be, Plainfield needs to make
strategic bets on small to mid-sized companies identified through a strategic
economic development plan.
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COMMUNITY DEVELOPMENT FINANCE: AN ALTERNATIVE ECONOMIC DEVELOPMENT
STRATEGY
Injections of capital are essential to businesses seeking to start or expand, but in
today‘s financial industry, traditional banks are often wary of making loans that smaller
businesses need to grow. Microfinance organizations, community development loan
funds (CDLFs), and some municipally operated revolving business loan funds are
increasingly supporting smaller businesses defined as those capitalized at $13,000 or
less.
Rohan Mathew, co-founder of New Brunswick‘s nonprofit microf inance lender, the
Intersect Fund, recalls the story of a local contractor who was forced to rent rather than
purchase the van he used for his business because he was unable to obtain a loan.
Despite his long and steady history of paying the $400 per month van rental fee, his lack
of credit history meant that he could not qualify for a loan to purchase the vehicle. He
was able to obtain a loan from The Intersect Fund. The cost of securing a vehicle for his
business immediately fell by hundreds of dollars per month, and the profitability of his
business grew accordingly (Mathew Interview, 2011).
Microenterprise development and access to credit grew out of the path breaking
work of the Grameen Bank in Bangladesh and its founder, Muhammad Yunus. Starting
with a university-based action research project in 1976, Dr. Yunus wanted to see how
the provision of small amounts of credit at reasonable lending rates for purchase of farm
implements, seed, or livestock would assist rural development.
The experiment found that the poor, especially women, have high repayment
rates and that micro-loans of $25 (U.S.) make a significant difference in increasing family
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income and asset accumulation. Borrowers tend to reinvest profits in farm equipment
and livestock that increase crop yield.
Microenterprise and peer lending have experienced some success in the United
States. The Small Business Administration (SBA) has offered a micro-loan program
since 1992. The SBA uses nonprofit Community Development Financial institution
(CDFIs) like the Intersect Fund to make loans to new or existing borrowers. Important to
this program model is the ability of the CDFIs to provide organizational and technical
assistance to entrepreneurs. Small businesses needing small-scale financing and
technical assistance for startup or expansion may be able to obtain up to $35,000
through short-term loans of public money called micro-loans, which average about
$13,000. These loans are administered through local CDFIs or state finance authorities
that are selected and approved by the SBA. The SBA loans the money to the nonprofit
organization, which then pools the funds with local money and administers direct loans to
small businesses.
Plainfield has a number of these very small businesses and one of the
recommendations here is to investigate the possibility of working a multi-service CDFI to
provide wraparound services, such as financing and administrative support. Liking the
now well-known incubator concept, where small and micro businesses share space,
administrative support for a period of time, to access to credit can be a powerful BRE
strategy.
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CASE STUDY: THE ENTERPRISE CENTER OF PHILADELPHIA
The Enterprise Center (TEC) in West Philadelphia uses this model of an incubator
fused with a capital access strategy to help build entrepreneurial capacity in a tough part
of the city. Started in 1989 as a project of the Wharton School‘s Small Business
Development Center, the Enterprise Center‘s mission is to provide access to capital,
building capacity, business education and economic development opportunities for high-
potential, minority entrepreneurs.
Standing the test of time, including economic downturns and change of
administrations (local, state, and national), TEC has endured offering critical support
services to their target community. First, TEC has a subsidiary CDFI called the
Enterprise Center-Capital Corporation (TEC-CC), which provides financing and technical
assistance to minority- and women-owned businesses located in Philadelphia‗s low-
income communities. In addition to debt financing, the Capital Corporation assists small
businesses in attaining grant and equity funding. TEC-CC loan programs are designed to
finance minority businesses that are challenged in obtaining funds for start-up capital
and business growth. The Capital Corporation makes loans of between $5,000 and
$35,000 to entrepreneurs through its role as a U.S. Small Business Administration co-
lender.
TEC is a federally qualified Minority Business Enterprise Center, which allows it to
provide technical consulting services to its client companies in addition to information
about public sector contracting at all levels of government. But the TEC does more than
provide capital and technical assistance. It is a full-fledged CDFI that uses business
development to approach the larger project of place and people development.
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If this was not enough, TEC also has an affiliate CDC called the Enterprise Center
Community Development Corporation that tries to support the physical redevelopment
around its catchment area. Recently, TEC has partnered with three Community
Development Corporations, The People‘s Emergency Center CDC, the University City
District, and The Partnership CDC, to form the Sustainable Communities Initiative –West
Philadelphia (SCI –West). SCI –West seeks to improve communities in West Philadelphia
by making them healthier, more competitive, and better connected with the economic
mainstream through investments in physical development and social services.
N EW M ARKETS T AX C REDIT P ROGRAM
Community development finance as a tool is now mainstream and supported by a
federal program called the New Markets Tax Credit (NMTC). The NMTC program was
established during President Bill Clinton‘s second administration under the Community
Renewal Tax Relief Program of 2000. The NMTC Program is administered through the
U.S. Department of Treasury‘s Community Development Financial Institutions (CDFI)
Fund. Unlike previous federal program using tax credits to increase affordable housing
units within distressed communities, NMTC seeks to increase business activities in
distressed communities (including urban and rural communities). The program allows
taxpayers to receive tax incentives (credit against their Federal Income Tax) for making
equity investments into certain Community Development Entities (CDEs). CDEs must
then invest ―substantially all‖ (85%) of those investments made by investors (banks,
individuals, etc.) into businesses in low-income and underserved communities.
The NMTC Program allows investors to purchase stock or capital interest in
qualified CDEs. CDEs subsequently make investments to businesses in low-income
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communities. The primary goal of NMTC is to create jobs in low-income areas and
promote economic development. In addition, investors receive tax credit, claimed over a
7-year period. In the first three years, investors receive credit 5% of the original
investment amount, annually. In the next four years, investors receive credit on 6% of
the original investment amount. The credit provided to the investor totals 39% of the
cost of the investment. Supporters of the program believe that by increasing the capital
base in low-income communities, the tax credit will enable CDEs to lend and invest
more, to attract additional outside capital, and to bring even more private-sector activity
into low-income areas.
W HAT ARE CDE S ?
In order to qualify as a CDE, the organization must meet the following requirements
set by the CDFI Fund:
Be a domestic corporation or partnership at the time of the certification
application;
Demonstrate a primary a mission of serving, or providing investment capital for,
low-income communities or low-income persons; and
Maintain accountability to residents of low-income communities through
representation on a governing board of or advisory board to the entity.
Eligible CDEs could include for-profit community development financial institutions
(CDFIs), for-profit subsidiaries of community development corporations, SBA-licensed
New Markets Venture Capital companies, and Specialized Small Business Investment
Companies.
CDEs have 12 months to invest the Qualified Equity investments into low-income
communities. ―Substantially all‖ of the profits from the qualified equity investments must
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be invested in low-income communities. For the first year through the 6th year CDEs
must invest ―substantially all‖ which includes 85% of the original amount paid by the
investor. In the 7th year CDEs must invest ―substantially all‖ which includes 75% into
designated low-income communities.
CASE STUDY: CUSTOMHOUSE AND POST OFFICE-ST. LOUIS, MISSOURI
In Missouri, a team of businesses teamed up to finance the renovation of the U.S.
Customhouse and Post Office in St. Louis. Altogether, the Trust for Historical
Preservation, the Enterprise Social Investment Corporation (ESIC), Bank of America and
the Missouri Development Finance Board, used Historic and NMTC tax credits to fund
the construction and remodeling of the historic building. The National Trust‘s CDE made
a tax credit equity investment of $25.5 million (which combined Federal, State, Historic
and new market tax credits) and ESIC CDE, made a first mortgage loan of $8.2 million.
In the end, the 242,000 square foot building created approximately 1, 458 construction
jobs, 850 permanent jobs and about $8 million in state and local tax revenue.
CASE STUDY: MARKET CREEK PLAZA-SAN DIEGO, CA
In San Diego, California, a shopping center, Market Creek Plaza, funded by an
investment made by Wells Fargo Bank. The investment, $23.5 million, financed a
shopping center anchored by a 57, 000 square foot ―Food for Less‖ supermarket. The
project will capture for the inner-city community a large portion on an estimated $60
million in retail spending that was leaking out of the community before development. It
has generated 1,700 new permanent neighborhood jobs and 360 neighborhood
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construction jobs, and will provide for a mix of retail uses ranging form national and
regional credit tenants to local entrepreneurs and micro-businesses. It has also involved
more than 2,000 residents and community members in planning the economic, social
and cultural characteristics of the project.
CASE STUDY: REVITALIZATION IN COSTAL OREGON-NORTH BEND, OREGON
ShoreBank Enterprise Pacific, received an NMTC investment of $2.8 million in
2006 to spur redevelopment and economic activity on the waterfront of North Bend,
Oregon, and provide a new infrastructure for a growing tourism economy. The Cocquille
Economic Development Corporation used the funds to create a state-of-the-art
recreational vehicle (RV) park on a 12-acre portion of a 50-acre former lumber mill. The
park includes 100 RV spaces equipped with phones, Internet, cable TV and all utilities.
Restrooms, showers, laundry, recycling facilities and a welcome center are also included
on the site. Altogether the project employed approximately 50 construction workers and
was completed in 2006.
P LAINFIELD IN F OCUS
The use of community development finance is a new and expanded effort to
encourage business development for poor cities or cities that are on the economic
margin. What is important here is the recognition that businesses in such communities
work in an economic and social context that is fraught with special challenges. Mainly
these challenges are access to capital and ancillary services to give such businesses a
fighting chance to survive.
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The CDFI movement is also different in that the onus for business development is
not on municipal government alone, but a combination of government working with savvy
social entrepreneurs who are experts in finance and technical assistance. The latter
makes the work of government that much easier if effective community development
financial institutions are present. Plainfield should consider encouraging the development
of a non-profit community economic development sector that (1) it can partners with and
(2) the sector can use emerging financial tools and federal public policies to support local
businesses along with pursuing projects of scale. We recommend that Plainfield pursue
a long-term strategy to learn about community economic development (CED) and
encourage, as best it can, the development of a CED ecology populated with strong
community-based development groups, CDFIs and the private sector.
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ADDITIONAL RESOURCES ON BUSINESS RETENTION & EXPANSION
University of Florida. (2011). IFAS Extension. Retrieved April 2011 from:http://edis.ifas.ufl.edu/topic_series_bre
Northeast Regional Center for Rural Development. (September 2009). BusinessRetention and Expansion Resource Manual. Retrieved April 2011 from:www.reddi.gov.on.ca/pdf/3119675_bre_resource_manual.pdf
University of Wisconsin. (2006). Downtown Economic Development Tools. RetrievedApril 2011 from: www.uwex.edu/ces/cced/downtowns/
Nova Scotia Association of Regional Development Authorities. (2009). Business
Retention & Expansion: Helping Nova Scotia Businesses Grow. Retrieved April2011 from: http://www.nsarda.ca/default.asp?mn=1.283.286
Teamwork Arkansas – Entergy‘s Office of Economic Development. Business Retention &Expansion Guide: Arkansas. Retrieved April 2011 from:www.entergyarkansas.com/content/economic_development/docs/Business_Retention_Expansion_Guidebook.pdf
WORKS CITED
Regents of the University of Minnesota. (2007). BR&E Visitation Program Case Study:Grants Pass/Josephine County, Oregon. Retrieved April 2011 from:http://www.extension.umn.edu/businessretention/components/case-Grants_Pass.pdf
Regents of the University of Minnesota. (2007). BR&E Visitation Program Case Study:Alexandria, Minnesota Project. Retrieved April 2011 from:http://www.extension.umn.edu/businessretention/components/case-alexandria.pdf
City of Minnetonka. (2007). ―Community Development‖. Retrieved April 1, 2011 from:http://www.eminnetonka.com/community_development.cfm
Metropolitan Consortium of Community Developers. MCCDMN. Retrieved April 1, 2011from: http://www.mccdmn.org
Metz, K. (January 22, 2011). ―City Program Helps Minnetonka Entrepreneurs‖.Minnetonka Patch. Retrieved April 1, 2011 from:
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http://minnetonka.patch.com/articles/new-city-program-to-help-minnetonka-entrepreneurs
Metz, K. (February 8, 2011). ―Minnetonka Planning Commission: Permit Requests Jump36% in 2010‖ Minnetonka Patch. Retrieved April 1, 2011 from:
http://minnetonka.patch.com/articles/minnetonka-planning-commission-permit-requests-jump-36-in-2010#photo-4805539
City of Minnetonka. (January 4, 2011). ―Minnetonka Offers New Business Program‖EMinnetonka. Retrieved April 1, 2011 from:http://www.eminnetonka.com/news.cfm?story_id=MinnetonkaOpenForBusiness20110
City of Minnetonka. (2007). ―Minnetonka Open to Business Program‖ EconomicDevelopment. EMinnetonka. Retrieved April 1, 2011 from:http://www.eminnetonka.com/community_development/economic_development.cf
m
U.S. Census Bureau. (July 8, 2009). Minnetonka (city) Minnesota. QuickFacts. RetrievedApril 1, 2011 from:http://quickfacts.census.gov/qfd/states/27/2743252.html
DeSoto County Council of Governments, Inc. (2011). 2010 Program of Work. DeSotoCounty. Retrieved April 1, 2011 from:http://www.desotocounty.com/images/uploads/2010%20program%20of%20work.pdf
Draikiwicz, J, and S. A. Galano. (October 6, 2009). Tax Increment Financing in NewJersey through the Economic Redevelopment and Growth Grant Program.Corporate & Finance Alert. Gibbons Law. Retrieved April 1, 2011 from:http://www.gibbonslaw.com/news_publications/articles.php?action=display_publication&publication_id=2906
DeSoto County Economic Development Council. (2010). DeSoto County. ―ExecutiveSummary: A Synopsis of Mississippi & DeSoto County Incentives for New andExpanding Industry‖. Retrieved April 1, 2011 from:http://www.desotocounty.com/index.php/econ_dev/incentives
West P. (March 31, 2011). ―Mississippi senators approve Southaven‘s penny tax for parks‖. The Commercial Appeal. Retrieved April 1, 2011 from:http://www.commercialappeal.com/news/2011/mar/31/mississippi-senators-approve-southavens-penny-tax/
U.S. Census Bureau. (July 8, 2009). ―State & Country QuickFacts‖. Southaven (city),Mississippi. QuickFacts Census. Retrieved April 1, 2011 from:http://quickfacts.census.gov/qfd/states/28/2869280.html
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Mississippi Economic Council. (2010). ―WPF Americas to locate Distribution Operationsin Southaven‖. Retrieved April 1, 2011 from:http://www.msmec.com/index.php/featured-news/11/247
Holbrook, D. (2007). The Little Black Book of Community Economic Development. Page128. United States: Xlibris Corporation.
Interview with Mr. David Scheck, former director of New Jersey Community Capital(2001-2008); Trenton, NJ. December 9th, 2010.
Interview with Mr. Rohan Mathew, co-founder of The Intersect Fund; New Brunswick,NJ. March 11th, 2011.
Official Website of the City of Minneapolis, Minnesota. (2011). Alternative Financing
Program. Retrieved April 2011 from:http://www.ci.minneapolis.mn.us/cped/alternative_financing.asp
Official Website of the City of Minneapolis, Minnesota. (2011). Business Development
Fund. Retrieved April 2011 from:
http://www.ci.minneapolis.mn.us/cped/bdf.asp
Official Website of the City of Minneapolis, Minnesota. (2011). Two Percent Loans.Retrieved April 2011 from:http://www.ci.minneapolis.mn.us/cped/two_percent.asp
Official Website of the City of Minneapolis, Minnesota. (2011). Two-Percent CommercialCorridor/Commercial Nodes Loans. Retrieved April 2011 from:http://www.ci.minneapolis.mn.us/cped/two_percent_commercial.asp
Official Website of the City of Minneapolis, Minnesota. (2011). Working CapitalGuarantee Program. Retrieved April 2011 from:http://www.ci.minneapolis.mn.us/cped/working_cap_fact.asp
Official Website of the City of Minneapolis, Minnesota. (2011). 501 (c)(3) Revenue
Bonds. Retrieved April 2011 from:
http://www.ci.minneapolis.mn.us/cped/501.asp
Milwaukee Economic Development Corporation. (2011). Capital Access Program.
Retrieved April 2011 from:
http://www.medconline.com/Loan_Programs.html#capital
Milwaukee Economic Development Corporation. (2011). Second Mortgage Program.
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Retrieved April 2011 from:
http://www.medconline.com/Loan_Programs.html#mortgage
Urban Redevelopment Authority of Pittsburgh. (2011). Urban Development Fund.
Retrieved April 2011 from:
http://www.ura.org/pdfs/bdcUDFSummary.pdf
http://www.ura.org/pdfs/bdcUDFGuidelines.pdf
Urban Redevelopment Authority of Pittsburgh. (2011). Entrepreneur Growth Fund.
Retrieved April 2011 from:
http://www.ura.org/pdfs/bdcPEFSummary.pdf
http://www.ura.org/pdfs/bdcPEFGuidelines.pdf
Interview with Kevin Riba of the Community Reinvestment Fund; Minneapolis,
Minnesota. April 14
th
, 2011.
Social Enterprise Associates (SEA). Initial Summary Findings: Municipal Revolving
Loan Funds. Retrieved April 2011 from:
http://www.socialenterprise.net/assets/files/Soc%20Ent%20Assoc%20Findings-
Muni%20RLFs%5B1%5D.pdf
Council of Development Finance Agencies. Spotlight: Revolving Loan Funds. Retrieved
April 2011 from:
http://www.cdfa.net/cdfa/cdfaweb.nsf/pages/rlffactsheet.html
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Appendix I— Background on Plainfield
HISTORY OF PLAINFIELD, NJ
The following is a history of Plainfield located on the official website of the city:
Plainfield is a city in Union County, New Jersey, in the United States. As of the
United States 2000 Census, the city population was 47,829. Plainfield was originally
formed as a township on April 5, 1847, from portions of Westfield Township, while the
area was still part of Essex County. On March 19, 1857, it became part of the newly-
created Union County. Plainfield was incorporated as a city by an Act of the New Jersey
Legislature on April 21, 1869, from portions of Plainfield Township, based on the results
of a referendum held that same day. The city and township coexisted until March 6,
1878, when Plainfield Township was dissolved and parts absorbed by Plainfield City and
the remainder becoming Fanwood Township (now known as Scotch Plains)
Nicknamed ―The Queen City‖, Plainfield was settled in 1684 by Quakers, and
incorporated as a city in 1869. A short train ride from New York City, Plainfield is a
bedroom suburb in the New York metropolitan area, it has become the urban center of
10 closely allied municipalities, with diversified industries, including printing and the
manufacture of chemicals, clothing, electronic equipment, and vehicular parts. Amongthe several 18th-century buildings remaining are a Friends' meetinghouse (1788), the
Martine house (1717), and the Nathaniel Drake House (1746), known as George
Washington's headquarters. Nearby Washington Rock is a prominent point of the
Watchung Mountains and is reputed to be the vantage point from which Washington
watched British troop movements.
www.plainfield.com/history
PROFILE OF THE CITY’S ECONOMIC LANDSCAPE
The following is adapted from information gathered from an unpublished
document provided by the Plainfield Office of Economic Development:
The completion of the New Jersey Central Railroad in the early 1800‘s
accelerated the growth of industry in the City; dramatically changing the land uses from
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mostly agricultural to manufacturing and industrial. The New Jersey Central rail corridor
that runs through the City of Plainfield facilitated the development of key industrial uses
that included lumber, the manufacturing and assembly of truck and airplane parts, glue,
and plastics. During this time, the City of Plainfield served as a commercial hub for the
north-central New Jersey area.
As the industrial and financial sectors grew in New York and New Jersey, the
railroad also encouraged the flow of wealthy New Yorkers to Plainfield. The housing
boom that followed the migration of this population, included Victorian mansions and
summer homes. The City experienced a growth in skilled and educated labor, creating
employment opportunities in the construction industry and the service sector. The
banking industry also grew as the wealthy and middle class established permanent
residency in Plainfield. As the disposable income of this population grew, so did the
demand for additional retail and commercial activity, creating a thriving downtown, an
active cultural scene, and a bustling hotel industry. During the late 19 th and early 20th
Centuries, the City of Plainfield was known for having the highest number of millionaires
between New York City and Philadelphia.
The City‘s commercial base historically evolved around the rail corridor, with
manufacturing uses along the corridor to retail and service industries in the Central
Business District and smaller commercial corridors to the south and north of the rail line.
The Grant Avenue Train Station of the New Jersey Rail Road provided a gateway to a
thriving commercial corridor along Grant Avenue, going south to West Seventh Street.
Shops lined the streets of Grant and Plainfield Avenues. Black entrepreneurs and
professionals had establishments along these corridors, together with a large Jewish
population. Funeral Homes, pharmacies, eateries, clothing shops, doctors and
barbershops, were owned and operated by the Black resident population. The
commercial nodes of the west side began to decline after the civil unrest of the 1960‘s,
and the closure of the Grant and Clinton Avenue Train Stations. The downtown central
business district was known for the intensity of the shopping experience, which in turn,
provided a strong employment market for local residents.
By the 1980‘s, the City‘s retail mix began to change. Large department stores
began to close and/or relocate out of town, increasing the number of unemployed in the
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With a median household income of $50,102 Plainfield falls well below the state
average of $70,347. Plainfield itself has a fair amount of income stratification, with
almost 30% of the population making less than $25,000 a year and almost 25% making
over $100,000. While in 2000 the unemployment rate was 5.5%, in 2009 it stood at
9.1%. While only 32.1% of the population above 25 has a high school degree, 76.3% of
the population has a high school degree or higher. The income stratification reflects the
spread of educational attainment.
Likely due to the recession, the net valuation taxable has been in decline since
2000 and now rests at $1,259,321,630, 2.08% below its 2000 value. In conjunction, the
median home value declined, and at $112, 863 it now stands at only half the median
state home value. Despite the crash in home values, however, Plainfield‘s value has
actually increased since 2000. Similarly, the local school tax levy and municipal budget
has grown since 2000 and in 2010 totaled $49,962,905. Taxable land value has held
steady since 2000. Though Plainfield‘s numbers may fall short of some of New Jersey‘s
wealthy communities, the city has exhibited relative stability throughout the past several
economically difficult years.
(Source: American Community Survey 2000-2009)
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Appendix II— Demographic and Financial Data
Educational Attainment 2000, 2009
Educational Attainment Year 2000 Year 2009
Population 25 years and over 29,821 30,293
Less than 9th grade 12.3 13.3%
9th to 12th grade, no diploma 17.1 10.3%
High school graduate (includesequivalency) 28.4 32.1%
Some college, no degree 19.6 18.2%
Associate's degree 4.1 5.1%
Bachelor's degree 12.4 13.6%
Graduate or professional degree 5.66 7.3%
Percent high school graduate or higher 70.6 76.3%
Percent bachelor's degree or higher 18.5 20.9%
S1501: Educational Attainment
Data Set: 2005-2009 American Community Survey 5-Year Estimates
Survey: American Community Survey
Geographic Area: Plainfield city, New Jersey
Unemployment
Population Year 2000 Year 2009
In the Labor Force 69.30% 71.0%
Employed 69.30% 64.6%
Unemployed 5.50% 9.1%
Employment Trends in Plainfield, NJ
Comparison of Years 2000 and 2009American Community Survey Data
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Employment by Occupation
U.S. Census Bureau
Occupation Year 2000 Total Year 2009 Total
Civilian employed population 16 years and over 22,997 22,965
Management, professional, and related occupations: 5,518 6,127
Management, business, and financial occupations: 2,406 2,472
Management occupations 1,497 1,663
Business and financial operations occupations 909 809
Professional and related occupations: 3,112 3,655
Computer and mathematical occupations 377 506
Architecture and engineering occupations 194 107
Life, physical, and social science occupations 153 157
Community and social services occupations 317 711Legal occupations 107 136
Education, training, and library occupations 951 1,105Arts, design, entertainment, sports, and media
occupations 378 236
Healthcare practitioner and technical occupations: 635 697Health diagnosing and treating practitioners and other
technical occupations 385 405
Health technologists and technicians 250 292
Service occupations: 4,059 4,328
Healthcare support occupations 741 777
Protective service occupations: 501 593Food preparation and serving related occupations 880 885Building and grounds cleaning and maintenance
occupations 1,376 1,440
Personal care and service occupations 561 633
Sales and office occupations: 6,272 5,758
Sales and related occupations 1,984 2,180
Office and administrative support occupations 4,288 3,578
Farming, fishing, and forestry occupations 33 0Construction, extraction, maintenance, and repairoccupations: 1,935 2,406
Construction and extraction occupations 932 1,827Installation, maintenance, and repair occupations 1,003 579
Production, transportation, and material moving occupations: 5,180 4,346
Production occupations 2,958 2,233
Transportation and material moving occupations: 2,222 2,113
Motor vehicle operators 928 852
Material moving workers 1,192 1,141
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Surrounding Municipality Population Characteristics
Municipality2009 MedianHousehold
Income
%Hispanic
RenterOccupied
2009Pop
2000Pop
% PopChange
Scotch Plains 101,702 5.4 18.3 22,821 22,732 0.39
Fanwood 115,382 4.5 6.7 7,081 7,174 -1.3
Dunellen 63667 34.7 34.9 6,940 6,823 1.71
Edison 83,891 8.5 35.9 98,996 97687 1.34
South Plainfield 89,573 12.1 14.7 22,569 21,810 3.48
Piscataway 85,157 10.6 30.6 52,112 50,482 3.23
Green Brook 115,549 8.1 4.8 6,796 5,654 20.2
North Plainfield 64,492 43.6 39 21,315 21,103 1
Plainfield 501,025 32.6 48.7 46358 47,829 -3.08
Watchung 63,667 28.9 28.9 6,245 5,613 11.26
Demographic and Fiscal Data for Surrounding CitiesLocated using data from the American CommunitySurvey 2009
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Surrounding Municipality Fiscal Characteristics
MunicipalityTotal School Taxes
Levied FY 2011Total Tax Levy FY
2011New Value Taxable
FY 2011
TotalRevenues FY
2005
ScotchPlains $58,234,979.61 $89,468,777.24 $994,444,787.00 $20,825,522
Fanwood $17,340,244.03 $27,866,108.17 $229,072,651.00 $7,276,220
Dunellen $9,484,197.00 $16,357,788.14 $144,803,169.00 $5,659,840
Edison $181,923,906.00 $309,661,353.46 $7,305,565,860.00 $97,354,122
SouthPlainfield
$39,963,937.87 $69,781,231.27 $1,427,902,681.00 $22,312,445
Piscataway $79,796,204.00 $133,324,693.90 $2,229,034,487.00 $39,763,822
Green Brook $20,456,989.00 $31,585,409.04 $1,472,516,839.00 $6,316,876
NorthPlainfield
$27,697,968.50 $49,467,266.82 $1,784,013,785.00 $15,887,755
Plainfield $21,848,819 $84,972,544.90 $1,259,321,630.00 $61,592,893
Watchung $16,992,150.80 $30,361,529.34 $1,580,694,587.00 $11,300,268
Department of Community Affairs, NJ 2011
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Industry Employment TrendsData for 2007, 2002, and 1997
Number of Establishments in Each Industry
YEAR 1997 2002 2007Industry description
Manufacturing 42 32 23
Retail trade 122 119 125
Information N/A 10 8
Real estate and rental and leasing 31 29 30
Professional, scientific, and technical services 40 44 44
Administrative and Support and Waste Mang and Remediation Srvs 31 28 41
Educational services 10 10 7
Health care and social assistance 69 102 100
Arts, entertainment, and recreation 1 5 5Accommodation and food services 46 47 70
Other services (except public administration) 48 54 83
Employer Sales, Shipments, Receipts, Revenue, orBusiness Done ($1000)
YEAR 1997 2002 2007
Industry description
Manufacturing 154,870 117,428 82,000Retail trade 136,265 170,076 169,259
Information N/A N N
Real estate and rental and leasing 18,422 17,587 24,921
Professional, scientific, and technical services 21,463 18,925 21,973Administrative and Support and Waste Mang and RemediationSrvs 37,464 10,248 32,291
Educational services 2,084 1,730 D
Health care and social assistance 53,262 231,713 264,037
Arts, entertainment, and recreation D D D
Accommodation and food services D 24,570 29,638
Other services (except public administration) 13,810 32,053 24,854
YEAR 1997 2002 2007
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Number of Paid Employees
Industry description 1997 2002 2007
Manufacturing 1,128 936 600
Retail trade 813 866 685
Information N/A e e
Real estate and rental and leasing 123 97 95
Professional, scientific, and technical services 247 241 220
Administrative and Support and Waste Mang and Remediation Srvs 1,620 245 812
Educational services 49 56 b
Health care and social assistance 668 3,121 2947
Arts, entertainment, and recreation a a a
Accommodation and food services f 561 595
Other services (except public administration) 192 269 341
YEAR 1997 2002 2007
Annual Payroll
Industry description 1997 2002 2007
Manufacturing 30,926 29,162 20,747
Retail trade 15,987 18,009 17,296
Information D D
Real estate and rental and leasing 2,791 2,306 2,448
Professional, scientific, and technical services 8,742 9,842 10,730Administrative and Support and Waste Mang and RemediationSrvs 22,805 5,700 15,844
Educational services 808 788 D
Health care and social assistance 23,191 109,377122,34
0
Arts, entertainment, and recreation D D D
Accommodation and food services D 6,319 7,956
Other services (except public administration) 4,452 6,470 8,133
Industry employment data, as foundthrough the U.S. Census Bureau
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Income Distribution Trends Households
Subject Households 2000 Households 2009
Total 15,149 16,389
Less than $10,000 9 11.8%
$10,000 to $14,999 5.9 5.7%
$15,000 to $24,999 11.6 10.1%
$25,000 to $34,999 10.5 9.8%
$35,000 to $49,999 16.3 12.4%
$50,000 to $74,999 18.9 16.9%
$75,000 to $99,999 12.2 11.9%
$100,000 to $149,999 10.9 13.7%
$150,000 to $199,999 3.1 3.7%
$200,000 or more 1.7 3.8%
Median income (dollars) N/A 50,102
Mean income (dollars) N/A 66,997
Income Distribution Trends Families
Subject Families 2000 Families 2009
Total 11,002 10,242
Less than $10,000 6.8 7.4%
$10,000 to $14,999 4.9 3.7%
$15,000 to $24,999 11 9.0%
$25,000 to $34,999 10.9 10.0%
$35,000 to $49,999 15.7 11.9%
$50,000 to $74,999 20.2 17.5%
$75,000 to $99,999 13.6 15.5%
$100,000 to $149,999 11.9 15.2%
$150,000 to $199,999 3.3 5.5%
$200,000 or more 1.8 4.4%
Median income (dollars) N/A 59,513
Mean income (dollars) N/A 75,878
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Income Distribution Trends Married-couple
Subject Married-couple Families 2000 Married-couple Families 2009
Total 6,004 5,459
Less than $10,000 2 2.3%
$10,000 to $14,999 1.8 2.5%$15,000 to $24,999 6.1 5.9%
$25,000 to $34,999 7.6 7.0%
$35,000 to $49,999 13.3 8.9%
$50,000 to $74,999 25.5 20.6%
$75,000 to $99,999 18.2 17.3%
$100,000 to $149,999 18 19.4%
$150,000 to $199,999 5.2 9.1%
$200,000 or more 2.3 7.1%
Median income (dollars) N/A 78,701
Mean income (dollars) N/A N/A
Income Distribution Trends Nonfamily
Subject Nonfamily Households 2000 Nonfamily Households 2009
Total 4,147 6,147
Less than $10,000 17.6 19.8%
$10,000 to $14,999 12 10.6%
$15,000 to $24,999 16.7 13.3%$25,000 to $34,999 11.9 10.8%
$35,000 to $49,999 16.2 14.1%
$50,000 to $74,999 11.9 15.6%
$75,000 to $99,999 5.7 6.0%
$100,000 to $149,999 5.3 6.4%
$150,000 to $199,999 1.5 0.6%
$200,000 or more 1 2.9%
Median income (dollars) N/A 30,658
Mean income (dollars) N/A 46,234
S1901: Income in the Past 12 MonthsData Set: 1999/2000 and 2005-2009 American Community Survey 5-Year EstimatesSurvey: American Community SurveyGeographic Area: Plainfield city, Union County, New Jersey
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Employment by Industry
Subject Total
Medianearnings(dollars)
Civilian employed population 16 years andover 22,965 $30,934
Agriculture, forestry, fishing and hunting,and mining: 46 $29,483
Agriculture, forestry, fishing and hunting 29 -
Mining, quarrying, and oil and gasextraction 17 -
Construction 1,922 $21,941
Manufacturing 3,352 $25,023
Wholesale trade 875 $34,750
Retail trade 2,198 $21,732
Transportation and warehousing, andutilities: 1,378 $32,167
Transportation and warehousing 1,296 $30,571
Utilities 82 $58,214
Information 890 $42,411
Finance and insurance, and real estate andrental and leasing: 1,623 $45,227
Finance and insurance 1,164 $46,859
Real estate and rental and leasing 459 $31,172
Professional, scientific, and management,and administrative and waste managementservices: 2,254 $27,030
Professional, scientific, and technicalservices 799 $50,272
Management of companies and enterprises 95 $22,199Administrative and support and wastemanagement services 1,360 $22,962
Educational services, and health care andsocial assistance: 4,885 $39,163
Educational services 1,841 $48,735
Health care and social assistance 3,044 $33,017
Arts, entertainment, and recreation, andaccommodation and food services: 1,529 $19,882
Arts, entertainment, and recreation 387 $20,781
Accommodation and food services 1,142 $19,530Other services, except public
administration 914 $25,556Public administration 1,099 $53,223
S2403: Industry by Sex and Median Earnings in the Past 12 Months for the Civilian EmployedPopulation
Data Set: 2005-2009 American Community Survey 5-Year EstimatesSurvey: American Community Survey
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Agency Finance Survey FY 2000 Data (F-33)School District: PLAINFIELD CITY, UNION COUNTY, NewJersey [3413140
Total Local Revenue
Property Tax $19,130,000
General Sales Tax $0
Public Utility Tax $0
Individual & Corp. Income Taxes $0
All Other Taxes $0
Revenue - Other School Systems $215,000
Cities and Counties $0
School Lunch Revenues $721,000
Tuition Fees - Pupils and Parents $0
Transportation Fees - Pupils and Parents $0
Interest Earnings $0
Textbook Sales and Rentals $0
Student Activity Receipts $0Other Sales and Service Rev. $0
Student Fees, Non-Specified $0
Miscellaneous Other Local Rev. $1,026,000
Special Processing $0
Total State Revenue
General Formula Assistance $34,782,000
Special Education Programs $3,574,000
Transportation Programs $1,145,000
Staff Improvement Programs $0
Compensat. and Basic Skills Prog. $12,215,000
Vocational Education Programs $0
Cap. Outlay and Debt Serv. Prog. $1,424,000
Bilingual Education Programs $542,000
Gifted and Talented Programs $0
School Lunch Programs $103,000
All Other Rev.- State Sources $1,885,000
State Pay. for LEA Employee Benefits $3,611,000
Other State Payments $0
Non-Specified $0
Federal Aid Through State
Federal Chapter 1 Revenue $1,268,000
Children with Disabilities $455,000
Child Nutrition Act $1,658,000
Eisenhower Math and Science $50,000
Drug-Free Schools $63,000
Chapter 2 Block Grants $230,000
Vocational Education $69,000
All Other Fed. Aid Through State $1,251,000
Nonspecified $0
Impact Aid (PL 815 and 874) $23,000
Bilingual Education $0
Native American (Ind.) Educ. $0
All Other Direct Federal Aid $0
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TOTAL EXPENDITURES
Instruction Expenditures - Total $44,835,000
Instruction Expenditures - Salary $31,480,000
Instruction Expenditures - Employee Benefits $7,797,000
Support Service ExpenditureTotal - Students-Support Service Expenditure $6,539,000
Total - Instruct. Staff-Support Service Expenditure $2,664,000
Total - Gen. Admin.-Support Service Expenditure $2,429,000
Total - Sch. Admin.-Support Service Expenditure $4,326,000
Total - Ops. & Mainten.-Support Service Expenditure $9,511,000
Total - Student Transp.-Support Service Expenditure $2,909,000
Total - Other Supp. Serv.-Support Service Expenditure $2,343,000
Non-Specified -Support Service Expenditure $0
Total Salary -Support Service Expenditure $48,671,000
Salary - Students-Support Service Expenditure $4,482,000
Salary - Instruct. Staff-Support Service Expenditure $1,332,000
Salary - General Admin.-Support Service Expenditure $496,000Salary - School Admin.-Support Service Expenditure $3,094,000
Salary - Ops. & Mainten.-Support Service Expenditure $4,168,000
Salary - Student Transp.-Support Service Expenditure $596,000
Salary - Other Supp. Serv.-Support Service Expenditure $1,449,000
Total Employee Benefits -Support Service Expenditure $12,956,000
Employee Benefits - Students-Support Service Expenditure $1,110,000
Employee Benefits - Instruction-Support Service Expenditure $330,000
Employee Benefits - Gen. Adm.-Support Service Expenditure $130,000
Employee Benefits - Sch. Adm.-Support Service Expenditure $809,000
Employee Benefits - Ops. & Maint.-Support Service Expenditure $1,149,000
Employee Benefits - Sch. Trans.-Support Service Expenditure $164,000
Employee Benefits - Other Supp. Serv.-Support Service Expenditure $400,000
Non instructional Current Spending
Food Services - Non Instructional $2,364,000
Enterprise Operations - Non Instructional $191,000
Other - Non Instructional $0
Salary - Food Services - Non-Instruct. $942,000
Employee Benefits - Food Services - Non-Instruct $132,000
Employee Benefits - Enterp. Oper.- Non-Instruct. $10,000
Interest on School System Indebtedness $1,556,000
Current Spending - Private Schools $1,614,000
Current Spending - Public Charter Schools $758,000
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Other Expenditures
Non EL-SEC
Community Services - Non EL-SEC $42,000
Adult Education - Non EL-SEC $531,000
Other Expenditures - Non EL-SEC $129,000
Capital Outlay
Construction - Capital Outlay $13,741,000
Instructional Equipment - Capital Outlay $147,000
Other Equipment - Capital Outlay $339,000
Land & Existing Structures - Capital Outlay $0
Payments
Payments to Local Governments $0
Payments to State Governments $1,011,000
Payments to Other School Systems $1,677,000
Non-specified - Equipment Expenditures $0
Debt
Long Term Debt - Outstanding Beginning of FY $37,397,000
Long Term Debt - Issued During FY $0
Long Term Debt - Retired During FY $958,000Long Term Debt - Outstanding at End of FY $36,438,000
Short Term Debt - Outstanding Beginning of FY $0
Short Term Debt - Outstanding at End of FY $0
Debt Service Funds $2,315,000
Bond Funds $12,444,000
Other Funds $4,467,000
Common Core of Data, Local Education Agency Finance Survey FY 2000 Data(F-33)
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New Jersey Division of Local Government ServicesMunicipal Information Sheet- CY 2011Gathered from the NJ Department of Community Affairs
Net County Taxes Apportioned $12,645,094
Less Municipal Budget State Aid
Net County Taxes Less Municipal BudgetState Aid $12,645,094
County Library Tax
Local Health Service Taxes (N.J.S.A.26:3A2-19)
County Open Space Tax $515,726
Total County Taxes $13,160,821
Local District School $21,848,819
Regional, Consolidated, & Joint SchoolBudget
Local District School Tax in Municipal Budget
Total School Taxes Levied $21,848,819
Local Municipal Purposes $49,962,905
Municipal Open Space
Total Municipal Taxes Levied $49,962,905
Total Tax Levy $84,972,545
Net Value Taxable $1,259,321,630General Tax Rate per $100 Assessed Value $7
CY 2010 Senior Citizens Reimbursement byState (P.L 1976, c.73) $121,684
CY 2010 Veterans Reimbursement by State(P.L 1976, c.73) $142,000
Administrative Fee $5,274
Total Revenue $268,957
Regional Efficiency Aid Program - CreditAmount Billed
Debt Statement Equalized Valuations
2008 $3,615,956,750
2009 $3,411,365,145
2010 $3,039,311,173
3 Year Average Equalized Valuation $3,355,544,356
2011 Minimum Library Appropriation(N.J.S.A. 40:54-8)
$1,014,768.68
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Appendix III— Additional Background Cases
LOCAL AND COMMUNITY ECONOMIC DEVELOPMENT
Injections of capital are essential to businesses seeking to start or expand.
However, in today‘s financial industry, traditional banks are often wary to make the types
of loans which businesses require to grow. Thankfully, microfinance organizations,
community development loan funds (CDLFs), and municipally operated revolving
business loan funds are increasingly stepping in to fill this gap.This section provides an introduction to financial concepts such as community
development lending, financial leverage, loan loss reserves, and gap financing. It then
explores examples of 3 different loan programs in cities which have faced problems
similar to Plainfield, and shows how these programs enable cities to reap benefits which
are exponential relative to the investments they require. There is also a discussion of
how programs to raise awareness of the Earned Income Tax Credit (EITC) can help low-
to-moderate income individuals realize immediate wealth gains, and suggestions for the
promotion of alternatives to the ubiquitous ―tax preparation‖ businesses currently found
in Plainfield. Finally, there is a discussion of essential ―best practices‖ for the startup and
operation of CDLFs, based on the learning experiences of CDLFs across the country.
AN INTRODUCTION TO COMMUNITY DEVELOPMENT LENDING
The standby tool of communities seeking to encourage business growth has long
been the use of tax abatements to attract new businesses. However, recent studies
have demonstrated that up to 80% of business growth in redeveloping communities is
the result of the expansion of existing businesses.i It is thus in the interest of Plainfield to
identify the barriers to the growth of their existing entrepreneurs, and to eliminate those
barriers.
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Injections of capital are essential to businesses seeking to start or expand.
Whether a business is a non-profit organization or a factory, these organizations must
spend money to make money: be it expanding/improving infrastructure, hiring new
employees, or updating technology. The practice of ―bootstrapping‖—only growing a
business based on the personal or business capital available to the owner(s)—can be
time consuming and cumbersome at best—or at worst, impossible.
In today‘s financial industry, traditional banks are often wary to make the types of
loans which businesses require to grow. In this age of bank consolidation and ―too big to
fail‖ financial empires, the locally based banks of years past have largely vanished. They
have taken with them bank owners who had a vested interest in improving their local
community, and the due diligence that such banks devoted to determining business
creditworthiness. Gone are the days when businesses sat down with local bank owners
to discuss business plans and financial projections during the loan application process.
All too often, the ―due diligence‖ of banks today relies solely on obtaining a three digit
credit score based on the personal finances of a business owner, without any
consideration of the business itself.ii
In this deeply depersonalized financial landscape, low risk loans with the potential
to create immediate wealth gains are too often impossible. This issue is exacerbated
among recent immigrants who have not resided in the country long enough to have a
credit history deemed loan-worthy. Thankfully, microfinance organizations, community
development loan funds (CDLFs), and municipally operated revolving business loan
funds are increasingly stepping in to fill this gap.
THE POWER OF LEVERAGE
While loan programs are not without cost to the municipality, it is difficult to
imagine any investment which could provide a more favorable cost-to-benefit ratio.
Traditional financial institutions are typically ―leveraged‖ at a ratio of 10-to-1: meaning
that for every $1 that a bank holds in reserve, they are able to lend $10. These ratios
have a long history of success in the private financial market, and are typically more than
adequate to keep financial institutions solvent through all but the worst of crises (during
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GAP FINANCING AND LOAN LOSS RESERVES
The power of leverage can be increased even further if the city participates in
―gap financing‖: working with other financial institutions to focus on the execution of
financing options which are already on the verge of viability. For instance, many
examples exist of businesses which are able to secure some of the financing which they
require to expand, but the available funds fall short of the ―critical mass‖ needed to
reduce their costs, increase productivity and efficiency, and ultimately bring greater
wealth to the city. However, many otherwise impossible deals can be made viable by
leveraging relatively small amounts of capital.
For example, a not-implausible deal could entail a business owner who wishes to
renovate and purchase cost-reducing equipment at a cost of $100,000; but is unable to
secure a loan from a traditional bank without a 20% down payment of $20,000. In this
instance, the city could leverage $2,000 of their capital base into a $20,000 loan, and
thus make a $100,000 deal possible. Plainfield could also provide a ―loan loss reserve‖
as a way of guaranteeing a portion of loans made by profit-motivated financial actors. In
other words, the city could agree with a private lender to minimize the risk to that lender
by guaranteeing a percentage of a particular loan amount.
To offer a variation of the example above: imagine a business seeking a $100,000
loan, but the deal is deemed too risky by a traditional bank. The city could reduce the
bank‘s risk by offering a 7% loan loss reserve of $7,000—money which is set aside to
pay the bank in the event of default. CDLFs also typically grant private lenders ―first
lien‖—meaning that the CDLF will only be repaid after the bank has recovered all of their
capital. This type of risk mitigation by cities is often successful in making banks
reconsider potential loans. The beauty of utilizing loan loss reserves is that if adequate
due diligence has been done on the borrower, the risk of default is remarkably low, and
the most likely scenario is that the $7,000 set aside by the city as a loan loss reserve will
never move. Upon repayment, that capital can then be used to guarantee other loans.
What follows is a breakdown of the financial products offered in three American
cities which have faced problems similar to those found in Plainfield. In addition, this
paper discusses both municipal and national programs to publicize the ability of citizens
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to enjoy the benefits of the Earned Income Tax Credit. Finally, the paper concludes with
a review of ―best practices‖ based on the experience of CDLFs across the nation.
CASE STUDY: MINNEAPOLIS
Minneapolis is on the cutting edge of small business financing solutions. What
follows are the highlights of their financing products which would be most relevant to the
city of Plainfield. The statistics and data points referenced in the following case study
were gathered from the website of the Department of Community Planning and
Economic Development of the city of Minneapolis, to be found at the following URL:
http://www.ci.minneapolis.mn.us/cped/index.asp.iv
ALTERNATIVE FINANCING PROGRAM
This program subsidizes bank loans to small businesses for equipment, and/or to
make building improvements. A private lender provides half of the loan amount with a
market rate loan, and the city provides the other half with a second loan at a flat 2%
interest rate. The City also charges an ―origination fee‖ of 1% of their principal amount.
As one of their criteria for loan approval, the City weighs the extent to which the business
plans to hire local residents to execute the anticipated improvements.
BUSINESS DEVELOPMENT FUND
This program provides loans to local businesses for ―redevelopment projects that
have a potential for the creation of jobs that will be filled by Minneapolis residents‖.
Businesses can also earn ―prepayment credits‖ for each local resident who is hired and
retained for at least one year. These loans are targeted towards businesses which will
create jobs that pay ―$12 to $16 per hour, plus benefits‖. Loans cannot exceed $75,000,
or 50% of the total project costs (whichever is less).
TWO PERCENT LOAN
This program provides for the subsidization of bank loans to small businesses to
―purchase equipment and/or to make building improvements‖. A private lender provides
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half of the loan at market rate, and the city provides the other half at a flat 2% interest
rate. In order to be eligible for a Two Percent Loan, an applicant must demonstrate
their project will ―benefit low-to-moderate income persons by creating jobs or improving
services‖. The applicant must also agree to use contractors licensed within the City.
The city website provides a list of improvements which qualify for financing under
this loan program. Emphasis is given to infrastructure (such as lighting, plumbing, or
electrical work) and to exterior improvements (such as paint, replacement of doorways or
windows, and exterior signs).
Loans are provided in amounts up $50,000.
TWO PERCENT COMMERCIAL CORRIDOR LOANS AND TWO PERCENT COMMERCIAL NODES
LOANS
These programs are virtually identical to the Two Percent Loan described above.
However, only projects located within one of the City‘s designated ―Commercial
Corridors‖ or ―Commercial Nodes‖ are eligible. A private lender provides half of the loan
at market rate, and the city provides the other half at a flat 2% interest rate. Loans are
provided for amounts up to $75,000, and a list of eligible improvements is provided
online.
WORKING CAPITAL GUARANTEE PROGRAM
This program provides a loan loss reserve guarantee on private bank loans to
small businesses, in order to minimize bank risk and make nearly-viable deals a reality.
Loans must be utilized by businesses as ―working capital‖. (The technical definition of
―working capital‖ is the liquid assets used by a business to pay their current liabilities;
such capital is essential to businesses seeking to expand). In conjunction with this
program, technical assistance (mentoring) for business owners is available, and may be
a requirement of loan guarantee approval. Borrowers must ―make efforts‖ to hire city
residents by working with the City‘s Workforce Coordinator.
Priority is given to businesses which ―benefit low-to-moderate income individuals
by creating jobs‖, which are ―rehabilitating or reusing a vacant structure‖, and ―whose
owner(s) have a personal net worth of less than $1 million‖. There is no limit on the size
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Loans are available to both non-profit and for-profit companies, and size of the loans
guaranteed range from $1,000 to $250,000. Since the city matches half of a 3%-7%
reserve for these loans, this means that the loan loss reserve funds guaranteed by the
city theoretically range from $15 to $8,750. A short list of business types are excluded
from eligibility, including taverns, liquor stores, and gun shops.
SECOND MORTGAGE PROGRAM
This program offers below-market rate loans to Milwaukee businesses seeking to
expand. The city finances 25% to 40% of costs, or up to $500,000 of the total project.
The remaining 60% to 75% of the loan balance is provided by a combination of the
borrower and a private lender. The city website lists a broad range of eligible uses which
entail virtually any expenses an expanding business could incur; including both hard and
soft construction costs, renovation, and working capital.
The program requires a minimum of 10% borrower down payment, and the length
of the loan matches the terms offered by the private lender. Interest rates are fixed, and
are set according to US Treasury Notes of similar terms at the time of the loan. As of
this writing, the interest rate listed on the city website was 5.25%. A short list of business
types are excluded from eligibility, including taverns, liquor stores, and gun shops.
EITC AWARENESS
The Earned Income Tax Credit is a fully refundable tax credit which is available to
individuals and families whose earnings fall below a predetermined level. Traditional tax
deductions reduce the amount of taxable income, and cannot offer taxpayers value
greater than their total tax liability. In contrast, EITCs result in a one-to-one reduction of
the total tax bill. If the amount of the credit exceeds the amount of the tax bill, the
taxpayer receives a full refund.
The refund checks for which taxpayers qualify are often formidable: for example,
the maximum refund for a couple with two children is $5,036. (15) This figure can often
represent a notable percentage of a taxpayer‘s total annual income.
Unfortunately, all too many people are unaware of their ability to cash in on this
free pool of available capital. This problem is exacerbated among recent immigrants
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who may lack the linguistic ability to optimally navigate the tax code. The implications are
clear: by raising awareness of the EITC, cities have the ability to immediately increase
the spending capacity of low income persons. As such, many municipalities have
undertaken ―Awareness Campaigns‖ which publicize their citizens‘ ability to enjoy the
benefits of the EITC, and the IRS sponsors ―EITC Awareness Day‖.
“TRIED AND TRUE” EITC AWARENESS GUIDELINES FROM THE IRS
The IRS recommends beginning an awareness campaign by forming a
partnership among interested actors in the city, including but not limited to: local
government officials, faith based organizations, school boards, major employers, and
any businesses within the city offering tax preparation. The partnership should work
together to speak to their constituents and distribute literature to raise awareness of the
EITC.
Many of the recommended avenues for raising this awareness entail little or no
cost to the municipality, such as: recorded messages in English and Spanish that play
while citizens are ―on hold‖ while calling any entities within the partnership; letters to local
newspapers (both English and Spanish language); posters in waiting areas and bus
stops; a banner on the municipality‘s existing website; or requesting that local
businesses display posters. Examples of such materials (web banners, short
essays/letters, etc) are available at the IRS website.
TAX PREPARATION
It is clear that Plainfield abounds with ―Tax Preparation‖ centers, most of whom
likely help themselves to a sizable percentage of the tax refunds on returns they prepare,
in exchange for advance payment of those funds. Viable alternatives exist for these
options.
The IRS currently offers a staff of over 400 volunteers nationwide to assist Low-to-
Moderate income individuals in the preparation of their tax returns, and interpreters are
available for citizens with language barriers. While the nearest centers to Plainfield are
located in Edison and Mountainside, a publicize campaign could enable those with
automobile access to make this trip themselves, and research should be conducted into
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the viability of a shuttle service to transport others. The IRS also offers free software to
assist in self-filing of taxes for all individuals who make less than $58,000 per year.
BEST PRACTICES FOR STARTING AND OPERATING A CDLF
In many cases, the practices of CDLFs and municipal Revolving Business Loan
Funds are so cutting edge that inadequate research has been funded to determine what
separates successful programs from the less-successful. However, enough knowledge
exists to determine a handful of guidelines for essential best practices.
COMMUNITY INVOLVEMENT
A recurring theme when reviewing the learning experiences of existing CDLFs is
that successful programs prioritize community involvement. It is crucial to reach out to
residents—especially business owners and potential loan recipients—during the
development of lending programs; including loan terms, loan durations, interest rates,
and overall lending strategy. As Kevin Riba of CRF points out, it is crucial to determine if
the obstacle for business growth and new development is the result of ―access to capital,
or cost of capital‖ and design a loan program accordingly.
It is equally important to reach out to the other actors which will be essential to
process of issuing community development loans. This is particularly true of any for-
profit banks whose assistance the municipality hopes to enlist; but also includes real
estate developers, and any foundations or other CDFIs with whom the fund hopes to
coordinate efforts. Such preparatory work is crucial in ensuring that the city has ―buy in‖
from all the necessary actors, and that the city does not do unnecessary work by
developing financial products which fail to address existing problems. By identifying
parties with the goal of improving the community, cities can ensure that they ―aren‘t just
leveraging capital, [they‘re] leveraging people and partnerships.‖
TECHNICAL ASSISTANCE
Multiple sources pointed to the crucial need for technical assistance for
entrepreneurs. Although SEA identifies this element of CDLF practice as a ―cost center‖
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(defined as ―a division which adds to the cost of an organization, but only indirectly adds
to its profit‖) all resources on CDLFs which discuss best practices ensure that the
providing of this service is mandatory to a successful CDLF. As SEA points out, such
assistance is clearly linked to ―increasing the chances of business success and reducing
default rates.‖
In addition, technical assistance serves the secondary purpose of marketing the
CDLF by increasing community awareness of their presence. Programs which seek to
increase financial literacy also hold the potential to help local residents realize immediate
wealth gains.
While 90% of new businesses fail, anecdotal evidence suggests that this
percentage is reduced dramatically when one only considers entrepreneurs who started
by completing sound business plans, market analyses, and cash flow analyses; and then
successfully incorporated input from business experts into these plans. Thus, sound
technical assistance is crucial in helping to weed out entrepreneurs who lack proper
foresight, in honing the vision of those who do, and ensuring a low default rate for the
CDLF.
BUSINESS FRIENDLY ENVIRONMENT
Kevin Riba of CRF emphasizes the importance of maintaining a ―business-friendly
environment‖, but stresses that there is much more to this then simply maintaining
favorable tax rates. The unfortunate reality is that within the complex network of parties
whose assistance is required to bring a CDLF deal to fruition, there is the potential for
relationships which have been ―tainted‖ in the past for any of a variety of reasons. A
business-friendly attitude which emphasizes common ground and open lines of
communication can help of all these players realize their common interests: whether
their focus is to create personal profit, or to expand the tax base of the municipality.
To this end, Mr. Riba recommends that the city employ ―advocates‖ to assist
entrepreneurs with adhering to local business regulations; to impart a more sound
understanding of the financing options available to them, and to provide businesses with
assistance in strategic decisions after financing has been secured (21). It is also helpful
if, at the start of a given project, a business or developer is given a ―point person‖ within
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the city government who they can count on for assistance. Mr. Riba also recommends
that the municipalities do whatever they can to streamline the approval of loans and
permits for businesses. Such efficiency and focus is essential in preventing well-
intentioned individuals from being forced to pursue progress within the city through
multiple redundant phone calls, multiple visits to a variety of offices, the filling out of
redundant paperwork, and any of a variety of other ―red tape‖ obstacles to development
and business growth.
LENDING PRACTICES
While several of the loan programs discussed thus far offer below-market interest
rates, the Council of Development Finance Agencies (CDFA) urges for market rate
interest; as a result of their belief that borrowers tend to prefer flexibility of loan terms
over flexibility of interest rates. (22) Determining the capacity of a CDLF to offer one or
both of these terms is best determined by independent financial experts, and the
partners (such as foundations and banks) with which the CDLF will work; determining the
relative benefit of each approach to potential borrowers is best determined by the
community itself.
While community input is essential in determining loan duration, certain
precedents exist for various types of loans. In general, loans for working capital are
relatively short (3 to 5 years); loan terms for equipment are mid-range (approximately 10
years); and permanent real estate loans are often the longest (15 to 20 years).
Development loans which provide operating capital during the construction phase
of a new development are much shorter and more complex; such loans often last two
years or less, have high interest rates to compensate for their formidable risk, and are
―interest only‖—meaning that loan payments only reflect the interest accumulated, and
the loan principal is due in a lump sum at the maturity of the loan.
It goes without saying that one of the keys to CDLF success is carrying out due
diligence on borrowers with care. While one of the advantages of a CDLF is their ability
to consider borrowers on a case-by-case basis, CDFA suggests discussing the following
criteria for potential borrowers:
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Business plan
Business experience and management information
Credit history and financial statements
Sufficient collateral to repay bank and RLF funding
Other personal or corporate guarantees on the project, and
Cash flow projections. (22)
Of course, borrowers who are capable of providing ample documentation in all of
these areas are most likely capable of securing a loan from a traditional bank, and would
thus not be an ideal recipient of CDLF capital. However, all of these factors should still
be considered carefully; and any areas where a borrower is lacking should be corrected
if possible, and soundly justified if not.
ADMINISTRATION AND MANAGEMENT
CDLF management can be handled internally by the municipal government, or
outsourced to an external CDFI (Community Development Financial Institution). While
locating and hiring adequately skilled personnel for internal fund management can
present a challenge to municipalities in smaller markets, employing fund managers ―in
house‖ offers the advantages of a more intimate understanding of local markets, and
greater availability of managers to both the City administration and community members.
Regardless of whether funds are managed internally or externally, it is crucial for
the managers of CDLFs to maintain transparency, including ―clear underwriting
guidelines‖ and the maintenance of open lines of communication with the community; to
this latter end, regular scheduled ―office hours‖ (conducive to walk -ins) are far more
successful in keeping in touch with community then managers who only offer meetings
which take place ―by appointment only‖. In addition, it is important for successful CDLFs
to work hard to minimize bureaucratic ―hoops‖ for borrowers by streamlining their lendingprocess and paperwork to the extent possible.
External review of loans and CDLF practices is also crucial. SEA also
recommends an ―advisory group‖ for loan funds, consisting of ―independent stakeholders
with relevant expertise‖ such as ―bankers, small business owners, and technical
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assistance providers‖. External oversight and ―on-going review‖ is also crucial to ensure
that political influence is avoided. CDFA suggests that such oversight could also be the
task of an independent board of directors, which would include ―legal, private lending,
business, community development, and local government professionals‖.
STARTING A REVOLVING LOAN FUND
CDFA offers the following guidelines to those setting a CDLF or Revolving Loan Fund in
motion.
1. Research existing RLF‘s and compile samples of application forms, program
guidelines, and other materials.
2. Invite lenders and potential borrowers to participate in the design process.3. Establish the purpose of the RLF. This should include a needs assessment.
4. Set the eligibility requirements for borrowers.
5. Determine the allowed uses of funds as well as prohibited uses.
6. Set a minimum and maximum amount for the loans.
7. Decide if the loans must be matched by existing equity or other sources of funds.
8. Determine the length of the loan term, which may vary based on the use of the
loan. For example, the term for a loan to purchase equipment may be based on
the life of the product while a loan for real estate may have a 15-year term.
9. Establish an application fee, origination fee, and policies regarding closing costs.
Define the default and delinquency terms.
10. Decide if the interest rate will be variable or fixed and whether the rate will vary
based on the project.
11. Develop the loan application form. Create a short pre-application form or checklist
to help borrowers determine if they are eligible.
12. Set up a committee to review loan applications.
13. Determine the administrative duties and staffing needs associated with the
program.
14. Promote the RLF and capitalize with funds from grants and individual donations.
15. Provide loans and technical assistance to borrowers.
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i Holbrook, Don. (2007). The Little Black Book of Community Economic Development .Xlibris Corporation.
ii
Interview with David Scheck, former director of New Jersey Community Capital (2001-2008). December 9th, 2010.
iii Interview with Mr. Rohan Mathew, co-founder of The Intersect Fund; New Brunswick,NJ. March 11th, 2011.
iv Department of Community Planning and Economic Development of the City ofMinneapolis: http://www.ci.minneapolis.mn.us/cped/index.asp
v Statistics and specific data points cited in the case study of Milwaukee were gathered
from the website of the Milwaukee Economic Development Corporation, located at:
http://www.medconline.com/Home_Page.html. Information on the Earned Income Tax Credit programs was gathered from the website
of the Internal Revenue Service, and can be located through: http://www.eitc.irs.gov.
Further information on Revolving Loan Funds can be found in the following report issued
by the Social Enterprise Associates:
http://www.socialenterprise.net/assets/files/Soc%20Ent%20Assoc%20Findings-
Muni%20RLFs%5B1%5D.pdf
Additional information about Revolving Loan Funds can also be located at:
http://www cdfa net/cdfa/cdfaweb nsf/pages/rlffactsheet html
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