Now available on the BOB website is a report exploring the formation of a community development corporation (CDC) in the inner-city, prepared by Heather Tremain. Heather is Co-Chair of Vancity’s Community Foundation and past President of Tradeworks Training Society as well as past chair of the Cascadia Region Green Building Council. She was recently awarded a Loeb Fellowship at Harvard University.
Pasted into this post is the executive summary. For the complete document please go here. We welcome and appreciate any comments regarding this study so please feel free to comment below or contact Shirley Chan or Brian Smith.
Building Opportunities with Business Inner-city Society’s (BOB) has commissioned an external study to survey, assess and report on the viability of using real estate development as a tool of inner-city revitalization and the role a Community Development Corporation (CDC) might play in Vancouver’s Inner-city.
The approach to this study, as determined by BOB, was to interview a number of community members with knowledge or expertise in real estate, planning, the downtown eastside, housing or funding. These interviews were supplemented with background research on models utilized elsewhere – particularly in the United States.
There was general agreement and support for the use of real estate development as a tool for inner-city revitalization, amongst the people interviewed for this report. Though there was one noteworthy exception. There are many cases of revitalization in Canada and the US – some of which result in gentrification, and some ghettoization. In generalit was felt that there is an opportunity to create a solution in Vancouver that maintains a
mixed low and middle income community in the urban core. Some interviewees suggested Vancouver was uniquely placed to achieve this delicate balance.
Each of the interviewees was provided with a definition of a CDC, which drew on the work of the Building Community Society. This generated discussion about the nature and mandate of the organization. There were three key roles that emerged from those discussions -
Investment model – in this role deal structures and governance model for
projects that allows new investment in projects would be created. These
structures would ‘grow the pie’ of possible funding dollars for projects, outside of government sources. This requires a project that will deliver a financial return, or an exit strategy with an upside for the investor. This model could be developed and implemented on a project basis and would be one way to start a CDC. The approach requires limited operational dollars. The CDC may or may not be an investor, rather a facilitator.
CDC as a developer – requires capital for the CDC. In this role the CDC
would seek sites within the DTES to pursue development projects. It would use the investment models above, as a means to leverage other funds. It could also offer development expertise to other non profits. The CDC might partner with developers to deliver housing and other amenities to the community.
Community Planning and Consultation – in this role the CDC would have
an active role in the creation of a new community plan, as part of the City
process. The CDC would become an integral part of the City’s planning process by modeling projects that are supported by, and contribute to the community.
The CDC might also offer advisory services to other developers focused on
community consultation and have a role in community amenity contribution
negotiations, representing the interests of the community.
A number of interviewees suggested that a Community Development Corporation might be started incrementally and organically. The notion being that the CDC would start as an initial project, creating an investment model and constructing deals on a oneoff basis. While this idea has a lot of merit and might be facilitated by an existing organization like BOB there were also concerns that it would be challenging to ‘evolve’ to a fuller mandate which would see the CDC playing the role of the developer.
An alternate version of the creation of a CDC emerged through discussions – that it might be initially constituted as a development organization. It was thought that, to be successful, a CDC needs to have some organizational and governance capacity from the beginning, and be a stand alone organization with a robust means of engaging with the communities that live and work in the downtown eastside.
What is BOB’s role in a CDC? Given that BOB’s does not have expertise is real estate it is not advisable for BOB, as it exists now, to undertake development activities. BOB, however, could support the development of various aspects of the CDC, from the investment model to a conceptual framework and governance model for an active development oriented CDC
For more information go here.
