BY COUNCIL MEMBER__________________________________________:

AN ORDINANCE to amend Chapter 14 of the 1984 Detroit City Code,

Community Development, by adding Article XII, titled Community Benefits, Section 14-
12-1, to re!ire Comm!nity "enefit# Agreement# for certain de$elopment pro%ect#
IT IS HEREBY ORDAINED BY THE PEOPLE OF THE CITY OF DETROIT
THAT:
Chapter 14 of the 1984 Detroit City Code, Community Development, Article XII,
Community Benefits, read a# follo&#'
A()IC*+ XII Comm!nity "enefit#
Sec, 14-12-1, Comm!nity "enefit# Agreement#,
It #hall be the policy of the City of Detroit to re!ire, &here$er fea#ible,
proportional comm!nity benefit# a# a condition of #ignificant p!blic #!pport for
de$elopment in the form of #!b#idie#, ta- abatement#, belo&-mar.et priced land or other
enhanced p!blic re#o!rce#,
Section 1. A, /or p!rpo#e# of thi# Section, 01o#t Comm!nity2 #hall mean and
incl!de the comm!nity &ithin the cen#!# tract3#4 &here the de$elopment pro%ect i# phy#ically
located and may al#o incl!de comm!nitie# &ithin ad%acent cen#!# tract# that may be
ad$er#ely affected by the acti$itie# of the de$elopment pro%ect, a# determined either by
agreement among member# of the 1o#t Comm!nity repre#entati$e party to a Comm!nity
"enefit# Agreement, b!t #hall in no ca#e be #maller than the cen#!# tract &here the
de$elopment pro%ect i# phy#ically located,
", /or p!rpo#e# of thi# Section, 0/ir#t So!rce 1iring 5rogram2 #hall mean a
collaborati$e partner#hip bet&een the de$eloper, the City of Detroit and an appropriate
&or.force de$elopment agency, that to the e-tent con#i#tent &ith federal and #tate la&,
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incl!de# pro$i#ion# to promote the hiring, training, and employability of re#ident# and
di#placed &or.er# from the 1o#t Comm!nity, incl!ding both con#tr!ction and permanent
%ob# in connection &ith a pro%ect,
C, /or p!rpo#e# of thi# Section, 0Contractor2 mean# any per#on, firm, partner#hip,
limited liability company, corporation, %oint $ent!re, proprietor#hip, or other entity that
enter# into a contract for performance of con#tr!ction &or. on the de$elopment pro%ect
&ithin the 1o#t Comm!nity, incl!ding #!bcontractor# of any tier,
D, )he follo&ing #tandard# and re!irement# #hall apply to Comm!nity "enefit#
Agreement# a# a condition of p!blic #!pport for in$e#tment#'
14 /or any propo#ed de$elopment pro%ect in the City of Detroit that propo#e#
p!blic and6or pri$ate in$e#tment of /ifteen 7illion 3819,:::,:::4 Dollar# or more, &ith
either a4 direct or indirect tran#fer of city-o&ned land parcel# or other p!blic property
&itho!t open bidding or priced belo& mar.et rate# to the de$eloper, a# determined by the
City A##e##or or independent apprai#al; or b4 receipt of other form# of p!blic #!b#idie# by
the de$eloper, incl!ding b!t not limited to ta- abatement# or grant# that are c!m!lati$ely
$al!ed a# )hree 1!ndred )ho!#and 38<::,:::4 Dollar# or more, b!t not incl!ding
=eighborhood +nterpri#e >one#, the de$eloper #hall engage 1o#t Comm!nity re#ident#
for p!rpo#e# of entering into a legally enforceable Comm!nity "enefit# Agreement &ith
repre#entati$e re#ident#, b!#ine##e# and nonprofit organi?ation#, collecti$ely compri#ing
the 1o#t Comm!nity repre#entati$e party to the agreement, to pro$ide targeted benefit# or
appropriately negotiated employment opport!nitie#, %ob training, lo&- and moderate-
income ho!#ing, !ality of life or en$ironmental mitigation#, neighborhood infra#tr!ct!re
and amenitie#, and comm!nity repre#entation for the benefit of the 1o#t Comm!nity in
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the de$elopment and po#t-de$elopment proce##e#, &hich #hall appro-imate the $al!e of
the p!blic #!pport for the pro%ect, a# re!ired by thi# Section, @nle## good ca!#e i#
#ho&n by a de$eloper a# pro$ided in paragraph 1,/, of thi# Section, the 1o#t Comm!nity
repre#entati$e and the de$eloper for a pro%ect #hall negotiate and e-ec!te a Comm!nity
"enefit# Agreement before the i##!ance of any pro%ect-related grant#, ta- abatement#, or
tran#fer# of city o&ned land or property, or before other form# of #!b#idy are granted or
a&arded by the City of Detroit, Aiolation of thi# Section &itho!t good ca!#e #ho&n by a
de$eloper a# pro$ided in paragraph 1,/, of thi# Section, #hall re#!lt in denial of appro$al
for any #!ch re!e#ted p!blic land tran#fer and6or p!blic #!b#idie#,
24 /or any propo#ed de$elopment pro%ect in the City of Detroit that propo#e# the
p!blic and6or pri$ate in$e#tment of more than )hree 7illion 38<,:::,:::4 Dollar#, b!t
le## than /ifteen 7illion 3819,:::,:::4 Dollar# d!ring the con#tr!ction of facilitie# or
plant, or to begin or e-pand operation# or reno$ate #tr!ct!re#, together &ith either of the
follo&ing' a4 direct or indirect tran#fer of city-o&ned land parcel# or other p!blic
property &itho!t open bidding or priced belo& mar.et rate# to the de$eloper, a#
determined by the City A##e##or or independent apprai#al; or b4 receipt of other form# of
p!blic #!b#idie# by the de$eloper, incl!ding b!t not limited to ta- abatement# or grant#
that are c!m!lati$ely $al!ed a# )hree 1!ndred )ho!#and 38<::,:::4 Dollar# or more, the
de$eloper #hall adopt and implement a /ir#t So!rce 1iring 5rogram for re#ident# of the
1o#t Comm!nity, b!t #hall not be re!ired to pro$ide any other comm!nity benefit#
referenced in Section D,1,, a# a mandatory condition precedent,
<4 /or any propo#ed de$elopment pro%ect in the City of Detroit that propo#e# the
p!blic and6or pri$ate in$e#tment of more than )hree 7illion 38<,:::,:::4 Dollar# d!ring
the con#tr!ction of facilitie# or plant, together &ith either of the follo&ing' a4 direct or
<
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indirect tran#fer of city-o&ned land parcel# or other p!blic property &itho!t open bidding
or priced belo& mar.et rate# to the de$eloper, a# determined by the City A##e##or or
independent apprai#al; or b4 receipt of other form# of p!blic #!b#idie# by the de$eloper,
incl!ding b!t not limited to ta- abatement# or grant# that are c!m!lati$ely $al!ed a#
)hree 1!ndred )ho!#and 38<::,:::4 Dollar# or more, that beca!#e of the nat!re of the
de$elopment and6or the 1o#t Comm!nity, i# rea#onably e-pected to prod!ce
di#proportionately high and ad$er#e h!man health or en$ironmental impact, incl!ding
#ocial, e#thetic, economic, phy#ical, chemical, or biological impact# in the 1o#t
Comm!nity, Detroit City Co!ncil may determine that the re!irement# of S!b#ection
D,1, #hall apply, after a p!blic hearing re!e#ted by a re#ident of the 1o#t Comm!nity
and d!ly noticed and cond!cted for the p!rpo#e of a#certaining &hether or not the
de$elopment pro%ect can rea#onably be e-pected to prod!ce any #!ch impact, b!t not
incl!ding =eighborhood +nterpri#e >one#,
+, +-ample# of comm!nity benefit# or pro$i#ion# that may be incorporated into a
legally enforceable Comm!nity "enefit# Agreement incl!de, &itho!t limitation'
1, A /ir#t So!rce 1iring 5rogram for re#ident# of the 1o#t Comm!nity;
2, A re!irement that 91B of Contractor# retained to pro$ide #er$ice# relating to
the de$elopment pro%ect &ill con#i#t of Detroit-ba#ed and Detroit-
head!artered b!#ine##e# 3D""#4 and6or +merging Small "!#ine## 3+S"#4
&ith le## than Cne 7illion 381,:::,:::4 Dollar# in gro## ann!al receipt#; and
9:B of all #!ch Contractor# &ill be Detroit-head!artered b!#ine##e#;
<, Dor.force De$elopment 5rogram#'
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a, Dhere #peciali?ed technical training i# nece##ary for employment in
the de$eloperE# b!#ine##, pre-apprentice#hip, apprentice#hip, and other
training in the CityE# high #chool#, comm!nity college# and &or.force
training program#, incl!ding b!t not limited to agencie# #!ch a# the
Detroit (egi#tered Apprentice#hip 5rogram and the Acce## for All
apprentice#hip readine## program# targeting re#ident# of the 1o#t
Comm!nity;
b, Cne or more ad!lt pre-apprentice#hip program# operated by one or
more !alified admini#trator# or an admini#trati$e collaboration
compri#ed of organi?ation# that benefit re#ident# of the 1o#t
Comm!nity, incl!ding b!t not limited to agencie# #!ch a# the
5artner#hip for Di$er#ity and Cpport!nity in )ran#portation;
c, Acti$ely #!pporting &or.force de$elopment acti$itie# that pro$ide
employment opport!nitie# for re#ident# of the 1o#t Comm!nity,
incl!ding b!t not limited to program# thro!gh federal &or.force f!nd#
recei$ed ann!ally and allocated by agencie# #!ch a# the StateE#
7ichigan Dor.#F partner, Detroit +mployment Sol!tion# Corporation
or another appropriate &or.force de$elopment agency or entity ;
d, 5ro$iding ann!al Contractor readine## training for Detroit-ba#ed #mall
b!#ine##e#, thro!gh the @nited State# Department of )ran#portation
"onding +d!cation 5rogram or other rele$ant training opport!nitie#;
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e, 1o#ting ann!al Contractor information and net&or.ing #e##ion# abo!t
!pcoming contracting opport!nitie# &ith 7DC) in the City of Detroit;
and
4, Go!th +mployment 5rogram#'
a, 5rogram# to re!ire Contractor#, #!bcontractor# and de$eloper# to hire
City yo!th# in the 1o#t Comm!nity, incl!ding b!t not limited to
agencie# #!ch a# )ran#portation and Ci$il +ngineering 3)(AC4
#!mmer intern#hip po#ition# to !alified Detroit yo!th#;
b, 5ro$iding program material#, training and #!pport for Detroit 5!blic
School#6C)+ 3D5S4 or other ed!cational in#tit!tion# in the 1o#t
Comm!nity;
c, 5ro$iding employment and career mentoring opport!nitie# for yo!th#
&ho re#ide in the 1o#t Comm!nity, incl!ding b!t not limited to
7DC)H# Go!th De$elopment and 7entoring 5rogram;
9, *and @#e 5rogram#'
a, Acti$ely promoting City real e#tate and in$e#tment opport!nitie# in the
1o#t Comm!nity thro!gh agencie# #!ch a# the 7ichigan 5ro#pect!# or
another appropriate real e#tate in$e#tment agency or entity;
b, 5ro$iding additional recreational opport!nitie#, par.#, ed!cational
#er$ice#, en$ironmental amenitie#, ho!#ing capacity or other benefit#
in the 1o#t Comm!nity;
c, 5ro$iding f!nd# for demolition of abandoned re#idential home# in the
1o#t Comm!nity;
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I, 5ro$i#ion# that re!ire periodic reporting, the fre!ency to be determined by the
partie#, of acti$itie# and ongoing monitoring of compliance by the partie#
thro!gho!t the co!r#e of the pro%ect;
J, 5ro$i#ion# that re!ire the partie# to periodically meet and confer, the fre!ency
to be determined by the partie#, and di#clo#e the partie#E acti$itie# and the #tat!#
of compliance to 1o#t Comm!nity re#ident#, and that re!ire periodic p!blic
meeting# &ith the opport!nity for inp!t and comment# by 1o#t Comm!nity
#ta.eholder#;
8, A comm!nity need# a##e##ment regarding the 1o#t Comm!nity at the de$eloperE#
e-pen#e;
9, An en$ironmental and6or p!blic health a##e##ment of the impact# of the propo#ed
de$elopment at the de$eloperE# e-pen#e; and6or
1:, Specified remedie# for $iolation of the Comm!nity "enefit# Agreement,
&hich !nle## other&i#e agreed by the partie#, may incl!de, &itho!t limitation li!idated
damage#, cla& bac.#, or re$ocation or &ithdra&al of ta- abatement and p!blic #!b#idie#,
either directly by the City of Detroit, or by application to the 7ichigan )a- )rib!nal, a#
pro$ided by la&,
/, )he de$eloper may re!e#t, from the City Co!ncil, an e-emption from the
re!irement of entering a Comm!nity "enefit# Agreement &here it can demon#trate that'
314 Identifying a 1o#t Comm!nity repre#entati$e to negotiate &ith on behalf of
the 1o#t Comm!nity i# infea#ible or impractical; or
324 Kood faith negotiation# ha$e occ!rred for a rea#onable time period, b!t
negotiation# ha$e reached an intractable impa##e; or
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3<4 Cther e-igencie# ma.e entering a Comm!nity "enefit# Agreement infea#ible
in the partic!lar in#tance,
)o re!e#t an e-emption, the de$eloper #hall #et forth in &riting the ba#i# of it#
re!e#t and doc!ment ho& it &ill other&i#e #ee. to implement the intent of thi# Section
to pro$ide the 1o#t Comm!nity &ith benefit# from the de$elopment,
K, )he term# a Comm!nity "enefit# Agreement !nder thi# Section #hall be
incorporated into the de$elopment agreement, if any, bet&een the City of Detroit and the
de$eloper of the pro%ect, Integration of the term# of the Comm!nity "enefit# Agreement
into any #!ch de$elopment agreement# #hall not change, alter or dimini#h the legal and
e!itable d!tie#, right#, and remedie# of the partie# to the Comm!nity "enefit#
Agreement, and nothing in any #!ch de$elopment agreement #hall precl!de, pre$ent, or
other&i#e limit the 1o#t Comm!nity repre#entati$e party or it# #!cce##or# from ha$ing
#tanding to enforce a Comm!nity "enefit# Agreement, ,
1, All City of Detroit +-ec!ti$e "ranch Department#, Di$i#ion# and Agencie#
in$ol$ed in economic de$elopment pro%ect# or acti$itie#, a# &ell a# the Detroit +conomic
Kro&th Corporation, #hall pro$ide a copy of thi# ordinance to each potential de$eloper,
!pon fir#t contact regarding any partic!lar economic de$elopment pro%ect propo#al, to
pro$ide the de$eloper &ith notice of the re!irement# of thi# Section,
Section 2. All ordinance#, or part# of ordinance#, that conflict &ith thi#
ordinance are repealed,
Section 3. )hi# ordinance i# hereby declared nece##ary to pre#er$e the p!blic
peace, health, #afety, and &elfare of the 5eople of the City of Detroit,
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Section . In the e$ent that thi# ordinance i# pa##ed by a t&o-third# 326<4 ma%ority
of the City Co!ncil 7ember# #er$ing, it #hall be gi$en immediate effect and become
effecti$e !pon p!blication in accordance &ith Section 4-11I of the 199J Detroit City
Charter, Dhere thi# ordinance i# pa##ed by le## than t&o-third# 326<4 ma%ority of the City
Co!ncil 7ember# #er$ing, it #hall become effecti$e no later than thirty 3<:4 day# after
enactment in accordance &ith Section 4-119 of the 199J Detroit City Charter,
Appro$ed a# to form'
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL
Corporation Co!n#el
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