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 DriversCommunity 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. InclusionAims to create inclusive, living wage jobs to create economic security. WorkforceLinks training to employer needs, focusing on those with barriers to employment. SystemDevelops support ecosystems, to create a new normal of business practices. DriversCommunity 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. InclusionAims to create inclusive, living wage jobs to enhance economic security. WorkforceLinks training to employer needs, focusing on those with barriers to employment. SystemDevelops 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 Hospitals Cleveland Clinic Case Western UniversityCleveland Museum of Art

NEIGHBORHOODS AT RISK

Place Matters

120+ Employees - 35 Members

12  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…

13  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 Solutions Cleveland, OH

Evergreen Cooperative Laundry Cleveland, OH

Green City Growers Cleveland, OH

The Cleveland Model

The Cleveland Model The Evergreen Cooperatives Economic Impacts: Current Number of Employees/Owners: 120 OutputAmount Gross Wages$6,260,703 Payroll Taxes$500,856 Health Benefits$305,547 Training$143,400 Profits Distributed$54,730 Property Taxes Paid, (65% of which supports Cleveland Municipal School District) $479, 502 TOTAL$7,744,738

MONDRAGÓN 100+ networked cooperatives

For more information: Ted Howard President Democracy Collaborative