On Tuesday likely in deference to Ward 1 CM Nadeau instead of on the merits, the City Council passed on first reading Bill 23-884, “Bruce Monroe Extension of Disposition Authority Act of 2020″ giving the developer an additional 3 years to perform; thereby, ignoring calls for the inclusion of Park Morton resident equity.
This extension marks the second totaling 5 years given to Park View Community Partners (PVCP) controlled by The Community Builders, Inc. (TCB) with an 80% equity stake. TCB also controls an 80% position in the Park Morton public housing site’s redevelopment as master developer. In their 6 years as lead master developer for the Park Morton New Communities Initiative (NCI) redevelopment, awarded in November of 2014, TCB has failed to successfully meet any of the requirements of the original award.
The adverse effects of TCB’s poor performance record as master displacement, disappointment, anxiety and health risks have been and are being bourn by the residents of Park Morton. However to the contrary with Bill B23-884, TCB due is 80% equity position will actually benefit as a result of their failures.
Based on a conservative estimate, TCB will gain an additional $3.78M just from their 80% share of a 12% developer fee on the Bruce Monroe portion of the project alone from the delays caused by their failures. This is because the original award was made on a project whose estimated value was $96M, but today is estimated to be $134M. TCB’s estimated final equity position in the Bruce Monroe project project will go from $76.8M to $107.2 or a $30.4M gain for failure. Not a bad gain on a $99 dollar investment, Bill B23-884 is basically a $1 and year lease agreement for 99 years with the city.
Another way to understand TCB’s failure to deliver Build-First units for Park Morton residents is that for each of the 70 or so Park Morton resident families displaced over the last 3 years under NCI, TCB will again about $434,000 in equity. This is based on 2020 numbers, 2023 numbers when TCB may deliver its first units their equity position and fees collected will be even greater on their $99 investment. Yes, of course this does not include the gains TCB will derive from similar contract terms for the Park Morton site and similar NCI failures.
This quick analysis tends to spark questions and disbelieve. William, your analysis must be flawed, why would the Council’s Committee on Business and Economic Development approve a bill which basically awards TCB $434K in equity per Park Morton family (primarily Black Families) displaced over the last 3 years? And further, why would the Council who recently passed a Comp Plan Framework with pretty solid language on “Equity and Racial Equity” reject calls by the residents of Park Morton for an equity position in the redevelopment of their community?
213.7 Equitable development is a participatory approach for meeting the needs of underserved communities through policies, programs and/or practices that reduce and ultimately eliminate disparities while fostering places that are healthy and vibrant. Equitable development holistically considers land-use, transportation, housing, environmental, and cultural conditions, and creates access to education, services. health care, technology, workforce development, and employment opportunities. As the District grows and changes, it must do so in a way that encourages choice, not displacement, and builds the capacity of vulnerable, marginalized, and low-income communities to fully and substantively participate in decision-making processes and share in the benefits of the growth, while not unduly bearing its negative impacts.
The Framework Element of the Comprehensive Plan 2/11/20
The answers to these questions lie in a phenomena we can call “political deference” and the power which accrues under this system. A system where “equity” in the hands of Park Morton residents is a threat, but granting “equity” to TCB enhances “political deference”. Bill B23-0736 – Comprehensive Plan Amendment Act of 2020 currently before Council is primarily about preserving and reinforcing this system “political deference”. This system allows a few political players to assign who will benefit from the “equity” built from public investments and who will not. Bill B23-0736 exist primarily because PUD appeals, threatened this system. The bottomline is in order for TCB preserve its $434K equity gain from displacement Park Morton, Bill 23-88 must pass and then Bill B23-0736. And this fart the Council is will to do this for TCB in order to preserve “political deference”.
The Park Morton Equity Plan (PMEP), developed by the Council @ Park Morton (resident council) represents and is the foundation of a concrete and plan for equitable development and racial equity envisioned in the Comp Plan Framework. The PMEP not only seeks ensure Park Morton residents are not unduly bearing the negative impacts of NCI failures, but share in the wealth being created by their unfortunate displacement by TCB failed management of its responsibilities.
On first reading, the City Council voted reward TCB with $434K in additional equity per Park Morton resident displaced. The Park Morton Equity Team asks the Council to include the PMEP as part of Bill B23-884 so that residents can least share in the “equity” being created by the city through their displacement. And if the PMEP is fully adopted create additional equity without displacement.
The Council has an opportunity before the final vote on Bill B23-884 to act for racial equity and equitable development and adopt the PMEP. As well, honestly confront the struggle around Bill B23-0736 and the city’s Comprehensive Plan.
The Park Morton NCI Project and Park Morton residents struggle via the PMEP is to understand Bill B23-0736 – Comprehensive Plan Amendment Act of 2020. Its about who benefits from the equity created form public investment, and who controls who gets the equity now that Jack Evans is not longer around.
William