Proposed Community Benefits
Many Sacramentans are interested in the community benefits associated with the building of a new Sacramento Entertainment and Sports Complex (SESC) in the heart of our downtown. Such an arena development brings with it many new entertainment options and social benefits for those who can afford to attend basketball games, concerts and ice shows– and the potential is als
o there for economic and community development opportunities for those who can afford to invest in new businesses proposed to surround the project. Unfortunately, the majority of hard-working, tax-paying Sacramentans will feel the impact of the SESC largely in diminished public and community services in their neighborhoods due to a quarter of a billion dollars of our civic resources being diverted to the project’s development, and operation and the transfer of our publicly owned assets to the developers. Most of the jobs created by arena-building projects are usually temporary, or limited-term contracting jobs—which have limited contribution to our local economy, and many of the on-going operating jobs are also low-wage paying, temporary, part-time and seasonal. Downtown neighborhood residents will deal with traffic jams and rowdy crowds which require the redirection of police, fire and other important public safety resources. However, the Coalition is asserts that many of the negative impacts can be mitigated by a strong Development Agreement between the city and the SESC developers, and ancillary binding agreements between the Coalition for Shared Prosperity and the Developer. The City’s return on investment, whether in the form of revenues or future development, infrastructure or amenities, must be commensurate with the level of public investment. The City and team owners will agree on a local that best meets the interests and goals of the City and stakeholders.”
The CBA is a vehicle for ensuring that this goal becomes a reality. Our broad Coalition of organizations has assessed the Arena’s impact, residents’ public subsidy, and the needs of everyday Sacramentans as they relate to jobs, housing, transportation, public safety and development. The proposed Community Benefits agreement seeks to guarantee that residents receive these Community Benefits in exchange for their public investment, just as the City of Sacramento envisions. The SESC is to be developed by the Sacramento Basketball Holdings, LLC (Developer) pursuant to a number of Development Applications submitted to the City. These include applications for a Special Planning District and Planned Unit Development for areas of the Downtown Plaza owned by the Developer and not part of the SESC (Ancillary Projects) consisting of retail, hotel and residential uses. Any reference to “Development” in this letter refers to the development of both the SESC and the Ancillary Projects. To ensure that the Development and our City’s investment of public funds benefit all residents of Sacramento, a broad-based coalition of Sacramento community organizations has formed to develop a comprehensive list of community benefit enhancements to guarantee that all residents of Sacramento benefit from the Development throughout its construction phase and continued operation. Across the nation, communities have negotiated benefit and Development Agreements that provide for good jobs, affordable housing, the utilization of environmentally sound building technologies and the application of appropriate smart growth attributes. Sacramento needs to ensure, just as other cities have done, that our community receives a return commensurate with the investment our City has made to keep the Kings basketball team here. The residents of this City will subsidize the building of the SESC with at least a $260 million of their public assets. The residents of Sacramento, community organizations, the City government and the Developer need to work together to make this the smartest possible public venture for the benefit of all its citizens. The Coalition’s items and issues listed have been contributed by the following organizations:
The Sacramento Housing Alliance (SHA)
Environmental Council of Sacramento (ECOS)
Capital Regional Organizing Project (CROP)
CA Reinvestment Coalition
Organize Sacramento
SafeGround
Loaves & Fishes
Next Generation
Others
Join us in supporting a community benefits element for the SESC Development Agreement. Our coalition brings together competing interests who are willing to work together for livable neighborhoods and responsible development. By working together, we can ensure that the Development works for the common good. We aim to incorporate community benefit items identified by the coalition into the City’s Development Agreement and ancillary binding agreements between the Coalition for Shared Prosperity and the Developer. The City of Sacramento can support the community benefit element of the Development Agreement and terms by requiring the agreement be completed and agreed to by all parties before full entitlement is approved. Incorporating community benefits into the Development Agreement will help guarantee the project creates good jobs, a healthier environment and a prosperous Sacramento. Our community coalition has identified the following opportunities for the City and the Developer to strengthen Sacramento’s economy and community. These community benefits will be incorporated into the Development Agreement between the Developer and the City or adopted in a separate Community Benefits Agreement between the Coalition and the Developer as appropriate. The Developer will ensure that all its community benefit obligations will be fulfilled as appropriate by contracts or other documentation with its contractors, subcontractors, operators, vendors, suppliers, consultants, lessees and land transferees. Jobs
1. SESC vendors/operators shall “Ban the Box” by removing questions about criminal history from all SESC vendor/operator job applications.
2. Developer and operators/vendors will pay sustainable living wages and health benefits to all employees working at ancillary development associated with the SESC. “Sustainable wages” will be determined by the Sacramento Workforce Investment Board (Sacramento Works). Housing
3. According to City Development Agreement documents, the Developer intends to build approximately 550 residential units. The goal of this program is to create a mixed income housing requirement of at least 20% of all residential development associated with the SESC and Ancillary Development. To further its connection to the surrounding neighborhoods, the Developer and City of Sacramento shall work with community-based housing developers, the Sacramento Housing Alliance and the Regulatory Agency to implement much of the plan. o The Developer shall develop or cause to be developed affordable housing equal to 20% of the units constructed within the Project. The Developer intends to include up to 550 residential units in the Project; therefore, the Developer’s affordable housing commitment would be at least 110 affordable residential units should all the approved units be developed. o Income Targeting: The distribution of affordable units shall be as follows:
20% affordable to families earning zero to 30% of Area Median Income (“AMI”);
20% affordable to families earning 31% to 60% of AMI;
60% affordable to families earning 61% to 80% of AMI. o Affordability Restrictions: Affordability covenants will be placed on all affordable units for at least 55 years from first occupancy of project units.
4. The Developer will contribute $40 million dollars to the City of Sacramento’s Affordable Housing Trust Fund (AHTF). These funds will be used for affordable housing gap financing, acquisition, and/or rehabilitation of existing affordable housing whether it be by an affordable housing developer or market rate developer. o Any project that is funded by the Developer’s contribution to the AHTF shall follow the Income Targeting Distribution and Affordability Restrictions as stated in section 1
5. The Developer will provide 50% of the capital costs for two SafeGround communities, up to a maximum of $1.5 million per community; and 50% of the annual operating expenses for two SafeGround communities, up to a maximum of $110,000 annually per community, for the first four years of operation of each community. Environment and Transportation
6. Developer and Operators will ensure that all SESC event tickets sold, also act as public transportation
day-passes for both Yolo Bus and Sacramento Regional Transit, and that both agencies are reimbursed for the costs associated with this transportation program.
7. The Developer and Operators will reimburse Sacramento Regional Transit for any costs associated with extended public transportation service hours added for events held at the SESC.
8. The Developer will ensure that the SESC is equipped with state of the art solid waste disposal and composting systems for all refuse produced at the SESC.
9. Development meets Gold level or above LEED certification on all building elements and landscaping at the Development and at sites donated by the City to the developers.
10. The Developer will provide subsidized public transportation in the form of reduced-cost transit passes for all employees of the Sacramento Kings, operators and vendors of the SESC, and a vanpool for said employees who do not reside within 1 mile of public transportation options and/or who work after regular Regional Transit service hours have ceased.
11. The Developer will ensure adequate and secure bicycle parking in the design of the Development so cycling to work by employees and patrons at events is encouraged. Small Business
12. The Developer will seed a city-wide small business revolving loan fund (RLF) of $1,000,000 to be managed by a local Community Development Financial Institution (CDFI) or the Economic Development Department of the City of Sacramento. The RLF will offer financing for acquisition of land and/or facilities, façade and landscaping improvements, building renovations, refinancing existing debt as part of a business expansion, machinery and equipment acquisition, working capital, and new construction. Safety and Community
13. The Developer will reimburse the City of Sacramento for any costs incurred for the mitigation of neighborhood traffic and parking impacts, and necessary regulation changes, in downtown and midtown streets and corridors affected by increased traffic caused by the development and operation of the Development.
14. The Developer will ensure that the design of the SESC includes a daycare center facility for the children of all employees associated with enterprises in the SESC and that the necessary partnerships are in place for the operation of the center.
15. The Developer will provide adequate, free, 24/7 public restrooms with access to potable drinking water, within a 3 block radius of the Development, similar in concept to the Portland Loo, etc.
16. The Developer and the City of Sacramento will ensure that security call box systems are installed in all public parking lots within a 3 block radius of the SESC.
17. The Developer will provide funding to the Downtown PBID for private security patrols in the Alkali & Mansion Flat, Downtown and South Side Park neighborhoods. The security patrol will be in force on every day events are held at the SESC, beginning 1 hour before events, and ending no earlier than 3 hours after any event to manage the crowds of people attending the events.
18. The Developer will ensure that 50% of their contribution to “Art in Public Spaces” is accessed by culturally diverse arts organizations and individual artists working in culturally-specific and historically underserved communities of the City of Sacramento. Transparency
All documents, agreements, and data related to the development of SESC, Ancillary projects and at sites donated by the City to the Developer, as well as efforts to meet the obligations of this agreement, are made publically available immediately upon submission. Representatives of the Developer will meet with the Coalition and the City no less than quarterly to monitor and review compliance with community benefit obligations. Draft: June 25, 2014
