The Lines Between Us: Do Developers Create Neighborhood Jobs?

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LINES-Developers-0201.mp3

February 1, 2013

Lawrence Lanahan

When controversy erupts over big developments in Baltimore, developers often counter with this tantalizing promise: "We've got jobs!"

How often do they come through? There's not much standardized data that would provide an easy answer. As Melody Simmons reports in this week's "The Lines Between Us" episode, many developers work with the Mayor's Office of Employment Development to find local hires, but MOED doesn't keep data just for big developments. (Although if you're talking city contracts over $50,000, MOED says 40 percent of the 3,000-person workforce are city residents.)

Maryland Economic Development Corp. is developing a lab in the footprint of the $1.8 billion East Baltimore Development Inc. project. Simmons reported that MEDCO's goal is to employ 100 local residents. So far, out of the 293 workers, 76 have been from East Baltimore.

The developers of the "Superblock" project on the west side of Baltimore's downtown signed a local hiring agreement with an alliance of Baltimore ministers. Bailey Pope, who is managing the development for Lexington Square Partners, says this "economic inclusion plan" sets a goal of 20 percent of all jobs being held by city residents, and 50 percent of all new hires being local. (Many outfits bring their own crews from other cities for early work like engineering and construction.)

What are the rest of the details on the Superblock agreement? See for yourself: Baltimore City Councilman Carl Stokes provided us this copy.

The agreement does not penalize Lexington Square Partners for failing to meet local hiring goals. Although Baltimore has extended a multimillion dollar "payment in lieu of taxes" tax break to Lexington Square Partners, a failure to meet local hiring goals does not jeopardize that break. (You can see the City Council legislation regarding that deal here.) The developers will provide quarterly reports to the committee behind the agreement and to two City Council committees.

Sheilah Kast asked if those reports would be made public. "I suppose they should be public," said Bailey Pope.

"They will be public," followed Carl Stokes. He says the City Council Finance Committee will also hold occasional hearings to check the progress of local hiring at the "Superblock."

Strict local hiring quotas seem unlikely to fly. When Baltimore City Council President Jack Young proposed a mandate for local hiring in city contracts, City Solicitor George Nilson responded that it would be unconstitutional, according to the Baltimore Business Journal.

Mark Reutter of the Baltimore Brew drew our attention to a legislative memo from the Department of Planning estimating that the average salary for a local hire on the Superblock project will be $20,800. Reverend Todd Yeary, who helped negotiate the local hiring agreement with Lexington Square Partners, told Sheilah Kast that this project will bring unemployed and government assistance-dependent populations into the workforce.

"We want to take the working poor and get them into a process where they can grow into a career," said Yeary. "So there may be some folks who start in the $20,000 range, but with the building of experience, I think there will be room for growth and expansion."

Some developers in other cities say failed drug tests and criminal records have kept projects from reaching local hiring goals, according to the news website DNAinfo. Stokes, Yeary, and Pope did not have concrete answers for how drug tests and criminal records will affect local hiring on the Superblock project. "In most cases," said Stokes, "those are handled on a case by case basis."

"We're not saying that there's any automatic disqualifier except something that's real obvious," said Yeary, such as a failed drug test or showing up late for work. He noted that getting jobseekers ready for a job is a part of the "economic inclusion plan." "Do you have transportation concerns, are there issues around child care?" said Yeary. "That's where the community's role is. That's not the developer's role."

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In this on-air segment: first, reporter Melody Simmons looks at recent projects to see how often developers follow through on promises of jobs for city residents.

Then, we'll get the specifics on local jobs on the westside Superblock from three players. Carl Stokes represents the 12th District on Baltimore's City Council. Rev. Todd Yeary of Douglas Memorial Community Church is part of a ministerial alliance that negotiated a local hiring agreement with developer Lexington Square Partners. Bailey Pope is senior vice president for The Dawson Company, the development manager for Lexington Square Partners.

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Full interview with Bailey Pope, Carl Stokes, and Todd Yeary

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An update on the Read's Drug Store site

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Who's going to train workers for new development jobs?