Hi Ms. Robinson,

You spoke to us tonight through your community liaison at our Operation Save One Meeting. Thank you for that.

I have a couple of questions - I have researched your website, I like what you stand for; I would like to ask how you feel about Community Benefits Agreements (CBAs) and the exploitation of Tax Increment Financing that has been happening (Bakery Square, Target up near Camp Horne, etc.).

I appreciate your feedback, and look forward to meeting you.
RESPONSE— Carmen L. Robinson,
A Community Benefits Agreement is a contract signed by community groups and by a developer to provide economic development to a local community or neighborhood. It is “generally” legally enforceable.
These agreements set forth a range of community benefits that the developer agrees to provide as part of a development project in exchange for community support of a given project. Successful community benefits agreements rely heavily upon the formation of a multi-issue, broad based community coalition including community, environmental, faith-based and labor organizations.
Tax Increment Financing, or TIF, is a public financing method, which has been used for redevelopment and community improvement projects. TIF is a tool to use future gains in taxes to finance the current improvements that will create those gains. When a public project such as a road, school, or hazardous waste cleanup is carried out, there is often an increase in the value of surrounding real estate, and perhaps new investment (new or rehabilitated buildings, for example). This increased site value and investment generates increased tax revenues. The increased tax revenues are the “tax increment.” Tax Increment Financing dedicates tax increments within a certain defined district to finance debt issued to pay for the project. TIF is designed to channel funding toward improvements in distressed or underdeveloped areas where development would not otherwise occur. TIF creates funding for public projects that may otherwise be unaffordable to localities. However, the designation of the areas as blighted can allow governmental condemnation of property through eminent domain.
A complaint, funding often goes toward what have been traditionally considered private improvements with public’s dollars. Developers profit from these Improvements. When the public “invests” in these improvements, the developers receive the return.
Cities should use these projects to finance public infrastructure, land acquisition, demolition, utilities , planning costs, and other improvements including sewer expansion repairing, curb and sidewalk work, storm drainage, traffic control, street construction & expansion, street lighting, water supply, landscaping, park improvements, environmental remediation, bridge construction and repair, and parking structures.
CBA economic development projects are subsidized by taxpayer dollars however; they produce ‘competing” or adverse results for citizens. While many of these projects create necessary jobs and tax revenues back to areas that have been depressed, there is usually no guarantee that the project will benefit current residents because of inner-city gentrification. Usually, the project pushes out low-income residents because housing prices often will rise. Moreover, most projects create large numbers of dead-end low-wage jobs in retail and the service area.
With strong bargaining power from community groups, ethical leadership from our government (since the process can lead to favoritism for politically connected developers, lawyers, economic development directors and other implementers), the developer can be held accountable. Often the goals of the community are broad based because of the many different needs of the community. The developer and unethical govt. thrives in this “gray”. Without a specific demand from the community the developer and government “wiggles out” and the community loses.
Benefits contained in a CBA should be stated explicitly. Such as stores, rents will be subsidized.
In addition, that agreement must state all wages developed from these newly created jobs will be a living wage. These agreements must state what that wage actually will be.
Finally, those agreements must provide affordable housing for the low to middle wage earner, did you notice I did not use the word goal. That word provides wiggle room.
As to Bakery Square, Walnut capital’s video touts that it will be a “Mecca for disposable income.” I am certain that the agreement put together was written in “gray” because; it does not address that particular communities’ concerns. Using public financing for the affluent is not what the purpose of TIF!

Mrs. Robinson

I want to help our city the same as you, and I feel things have to change “yesterday”, this and administrations of our past have not done all that could be done for the Afrrican American communities.

Our current Mayor has done what he feels needs done I’am sure, but not focusing his attention to the homicide rate or the lack of convictions that to me is alarming, also I understand growth and the city is growing but to push African Amercians out of the city to make room for another StarBucks is beyond me, then to allow a school superintendent to close schools, then keep uncaring teachers and others too frightened to teach in others.

When I drive through Homewood and other neighborhoods it doesn’t look like the places I grew up, and its very sad. What next?
Homes that are abandoned, windows broken, then we build a bridge to reconnect Shadyside to East Liberty then rename it East End. What next?

President Obama says the time is past for old government, its a new day, we must live together as one city.

From what I have read, I feel you are the one to united the city of Pittsburgh, you have my vote and my support.

I am impressed by what I’m reading about Carmen Robinson.