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