the cleveland model: building wealth in disinvested neighborhoods october 14, 2015 ted howard,...

The Cleveland Model:Building Wealth in Disinvested Neighborhoods

October 14, 2015

Ted Howard, President

Neighborhoods & People in Distress Dramatic increase in the number of high poverty neighborhoods

Number of people living in high poverty ghettos, barrios and slums has nearly doubled since 2000

Survey of 339 cities with population over 75,000: 90% of inner cities declined in terms of poverty and unemployment

1 in 4 US jobs pay less than poverty-level wages

Half of all children up to the age of 5 live in low-income families.

What is Community Wealth Building?

Community wealth building is a systems approach to economic development that creates an inclusive economy built on local and broad-based ownership.

The aim is creating a new system where communities thrive and families enjoy economic security.

More than business development – rebuilding community.

Drivers of Community Wealth Building

Drivers Community wealth building

PlaceLeverages many kinds of assets rooted in community, for benefit of local citizens.

OwnershipPromotes local, broad-based ownership as foundation of a thriving local economy.

Multipliers

 Encourages institutional buy-local strategies to keep money circulating locally.

Collaboration

 Brings many players to the table: nonprofits, philanthropy, anchors, City.

Inclusion Aims to create inclusive, living wage jobs to create economic security.

WorkforceLinks training to employer needs, focusing on those with barriers to employment.

  System

Develops support ecosystems, to create a new normal of business practices.

Drivers Community wealth building

PlaceLeverages many kinds of assets rooted in community, for benefit of local citizens.

OwnershipPromotes local, broad-based ownership as foundation of a thriving local economy.

Multipliers

 Encourages institutional buy-local strategies to keep money circulating locally.

Collaboration

 Brings many players to the table: nonprofits, philanthropy, anchors, City.

Inclusion Aims to create inclusive, living wage jobs to enhance economic security.

WorkforceLinks training to employer needs, focusing on those with barriers to employment.

  System

Develops support ecosystems, to create a new normal of business practices.

The Greater University Circle Initiative is creating jobs, building wealth, and encouraging reinvestment in seven low-income neighborhoods.

An ambitious strategy to stimulate reinvestment in this vital urban area, leveraging the power of anchor institutions.

Veteran’s Affairs Medical Center

Anchor Institution Procurement> $3 Billion Annually

University HospitalsCleveland Clinic

Case Western University Cleveland Museum of Art

NEIGHBORHOODS AT RISK

Place Matters

120+ Employees - 35 Members

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Where and Why?

• 7 specific neighborhoods were identified

• Of 50,000 residents, 40% live below

poverty line

• Median household income less than

$18,500/year

• Previous attempts at economic

development failed

• “A job alone is not enough.” – We

decided to try something new…

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Our Goals

• Promote wealth-building for residents of

specific Cleveland neighborhoods

• Anchor capital so it doesn’t leak out of NE

Ohio

• Launch new Green, cooperatively-owned

companies

• Stabilize and revitalize Cleveland

neighborhoods via innovative job creation

• Develop a model for national impact

Evergreen Energy SolutionsCleveland, OH

Evergreen Cooperative

LaundryCleveland, OH

Green City GrowersCleveland, OH

The Cleveland Model

The Cleveland ModelThe Evergreen Cooperatives

Economic Impacts:Current Number of Employees/Owners: 120

Output Amount

Gross Wages $6,260,703

Payroll Taxes $500,856  

Health Benefits $305,547 

Training $143,400  

Profits Distributed $54,730  

Property Taxes Paid, 2012-2014 (65% of which supports Cleveland Municipal School District)

$479, 502

TOTAL $7,744,738

MONDRAGÓN100+ networked

cooperatives

For more information:www.community-wealth.org

www.DemocracyCollaborative.org

Ted HowardPresident

Democracy Collaborativethoward@democracycollaborative.org