1. The Cleveland Model: Building Wealth in Disinvested Neighborhoods October 14, 2015 Ted Howard, President

2. 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.

3. 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.

4. 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.

7. 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.

8. Veteran’s Affairs Medical Center Anchor Institution Procurement > $3 Billion Annually University Hospitals Cleveland Clinic Case Western UniversityCleveland Museum of Art

9. NEIGHBORHOODS AT RISK

10. Place Matters

11. 120+ Employees - 35 Members

12. 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. 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

14. Evergreen Energy Solutions Cleveland, OH

15. Evergreen Cooperative Laundry Cleveland, OH

16. Green City Growers Cleveland, OH

17. The Cleveland Model

18. 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, 2012-2014 (65% of which supports Cleveland Municipal School District) $479, 502 TOTAL$7,744,738

20. MONDRAGÓN 100+ networked cooperatives

22. For more information: www.community-wealth.org www.DemocracyCollaborative.org Ted Howard President Democracy Collaborative thoward@democracycollaborative.org