[CPEO-MEF] Development benefits questioned

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California
MERCURY NEWS
Development benefits questioned
Labor Wants Community Input
By Michelle Guido
Posted on Tue, Aug. 19, 2003

Labor groups want San Jose to become the first city in California to
radically change the way it handles redevelopment agency projects that
receive a large share of tax dollars.

In a report released today, Working Partnerships USA and the South Bay
labor council call on the city to scrutinize large projects by
evaluating what the community stands to gain before the city puts up any
money.

The push for ``community benefits'' -- such as low-income housing, child
care and jobs that pay above minimum wage -- is not new. But the plea
from labor unions for a formal policy comes at a time when the San Jose
Redevelopment Agency is faced with slashing its roughly $500 million
capital budget by as much as $40 million.

In the past 25 years, the redevelopment agency has spent more than $2.3
billion on projects for which the city received only token community
feedback, the report stated.

Proponents of the policy say more public participation at the front end
of large-scale publicly subsidized projects can lead to better jobs and
more affordable housing.

``We're saying the redevelopment agency and the developers shouldn't be
the only people at the table,'' said Phaedra Ellis-Lamkins, executive
officer of the South Bay AFL-CIO Labor Council. ``There should be a more
accountable process where more people are involved.''

But critics say any obstacles placed before developers, especially in
lean times, will drive them away from doing business in San Jose.

``Our concern is: Does it attract investments and jobs to San Jose, or
does it send a signal to potential investors that maybe they should go
to Sunnyvale or somewhere else?'' said Jim Cunneen, president and chief
executive of the San Jose Silicon Valley Chamber of Commerce.

This article can be viewed at:
http://www.bayarea.com/mld/mercurynews/news/local/6566342.htm

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