Sacramento City Council Special Meeting: Rejection of Community Benefits Agreement Ordinance
Good afternoon everyone. The Sacramento City Council please come to order with the clerk
call the roll to establish a quorum. Thank you. Councilmember Kaplan. Councilmember
Tao. Mayor Per Tem Telemontes. Councilmember Valenzuela. Here. Vice Mayor Mayful. Here. Councilmember
Gettas. Here. Councilmember Jennings. Here. Councilmember Vang. Here. And Mayor Steinberg.
I am here. Good afternoon, everyone. I'm going to ask Councilmember Tao and Valenzuela
please together to please lead us in the land acknowledgement and the pledge of allegiance
may one or the other. How ever you choose to do it. Okay. Thank you, Mayor.
Please rise for the opening acknowledgement and honor of Sacramento's indigenous people
and tribal lands to the original people of this land, the Nisanan people, the southern
Mahidu Valley and planes me walk the put one went to people and the people of the well-ten
retiree of Sacramento's only federally recognized tribe. May we acknowledge and honor the native
people who come before us and still walk beside us today on these ashrerstral lands by choosing
to gather together today and the active practice of acknowledgement and appreciation of Sacramento's
indigenous peoples history contributions and lives. Thank you. A please remain standing
in salute pledge. I pledge allegiance to the five of the United States of America and
to the Republic for which it stands one nation under God in a visible liberty and justice
for all. Thank you. Next time we'll switch. Yes. How about it five o'clock? Yeah. That's
exactly the way we should do it here. Thank you to both the good and great public servants,
council members, town, balance, wayla. Members, we have one item of business this
afternoon. It's a very important item. It is a consideration of a community benefits agreement
ordinance. And Leslie Fritch, are you going to present? I want to thank you and the entire
city staff for working so hard on all this. Let me make an opening comment if I may. I
mean, you know, don't get to make opening comments too much longer. So make a brief. This
of course arises out of the Aggie Square settlement agreement, which was a model community
benefits agreement that was organized essentially by the community with some creative tension,
ultimately in collaboration with the city, the developer, Wexford and the University of
California at Davis. And we created something that I think was really impactful and important
to that project. As part of the settlement agreement, there was a provision that was
requested by the SIDWD to consider a city wide community benefits ordinance that could or
would apply to other projects throughout the city. And so it's taken a while. It's
often does in government a lot of discussions with the community, with the city staff,
some with the elected officials, etc. We actually heard this, I think, in some form at the beginning
of 2024. And we are here now today to consider a staff proposal and the community's perspective
both the SIDWD and the business community's perspective on all of this. And that's what
brings us here today. So I just wanted to make that opening remark to kind of set the
context. Leslie?
Well, it's my pleasure, Mayor Steinberg. I can say that I think perhaps the last time
this afternoon to be here with you and council members. Thank you for allowing us to present
today this afternoon. We're bringing forward for your consideration a draft community benefit
agreement ordinance as required by the Aggie Square settlement agreement with the Sacramento
Investment Without Displacement. The ordinance before you would require community benefit
agreement for projects receiving over $10 million in city assistance. Putting this draft
ordinance together, as the mayor has mentioned, has taken some time for we've tried to strike
a balance between the input received from SIDWD and community members and the business community.
And what we've created is a defined CBA requirement, which includes benefits to the residents
and neighborhoods adjacent to a proposed project while not negatively impacting development
activity in our city. Our approach is to allow the tailoring of a CBA to the needs and
parameters of the proposed project rather than being too prescriptive and since one size
doesn't fit all. We have outlined a framework and not a specific outcome. The draft ordinance
contains the elements as required in the settlement agreement. Additionally, the draft
ordinance respects the role of the council as the city's elected representatives to make
the ultimate decision on the inclusion of elements within a CBA if one is triggered.
It's important to note that it's the opinion of staff that a community benefits agreement
is not necessarily needed to achieve community benefits on any particular project. We bring
forward projects all the time and we consider the benefits to the community as we're bringing
those elements forward. Staff considers and incorporates community benefits in every
project. We bring forward for financial assistance regardless of project size. So I wanted
to highlight a couple examples where we enfold in community benefits agreement. The mayor
mentioned Daiki Square and that project was a collaborative process. We had started some
community benefit discussions and inclusion and then with community input that agreement
was strengthened. Some of those elements included a 20% set aside for affordable housing,
local construction hiring, housing stabilization and workforce pilots. And just I'm kind of
going to brag a little bit and brag to you, Darryl and excuse me, Mayor Steinberg and Council
Member Gettah because that has really netted a lot of different benefits. $51 million committed
for affordable housing along Stockton Boulevard. Approximately $5 million for housing stabilization
efforts. Yielding about 800 people already assisted in some way or another through those
stabilization efforts. And approximately $600 million in local contractor spending. And
almost 90 apprentices hired from the local Aggie Square zip codes. So that's a broad example
of a large project. But then we have smaller projects such as the San Miguel Market which
was a $1.1 million loan for grocery store at the corner of Broadway in Stockton which filled
a vacant storefront with an employee owned grocery store. So it eliminated light and it
created about 60 opportunities for the residents around the area. And also added and made sure
that Oak Park wasn't a significant food desert by allowing that grocery store to continue.
From a policy perspective, we've also ensured the consideration of community benefits in
reviewing projects as they are a foundational element in our Council's approved inclusive
economic development policies and are included in the 2040 general plan. CBAs are commonly
used across the country to ensure community benefits are provided. But it's where the
jurisdictions have approved and ordinance requiring them as they are often viewed as detrimental
to development and difficult to codify requirements as each project has its own unique parameters
and context. We've had many meetings with SIDWD members over the past three years I believe
they might correct me on that over the course of the past number of years and acknowledge
it there are differences in approach. We are sensitive to those differences and thus
wanted to make sure we had a transparent process where all views could be heard by Council.
Therefore the format for today is staff will give a short presentation outlining the elements
in the proposed ordinance we're bringing forward for your consideration followed by a presentation
by SIDWD. We also want to highlight other stakeholders and other stakeholder views such
as the downtown Sacramento partnership, the BIA, the Greater Sacramento Economic Council
and some of those comments that you've received. We've included all the comment letters we've
received prior to the posting in your report and then there are additional ones that are posted
through the e-comment process. With that I'd like to turn over the conversation and the presentation
to my colleague Ellen Sullivan who will provide you an overview of the proposed ordinance. Thank you.
Good afternoon. I'm Ellen Sullivan, Senior Project Manager with the City Manager's Office
of Innovation and Economic Development. After staff's presentation, Sacramento, investment
without displacement has prepared a presentation for Council. We wanted to go over some of the
key points of the draft CBAL. The ordinance currently has a threshold of $10 million of
SIDI investment or subsidy that would require a community benefits agreement. The ordinance
defines subsidy consistent with government code 508083 as referenced in the Aggie Square
settlement agreement as an expenditure of public funds or loss of revenue to the city such
as grants, loans or fee waivers. All CBAs require compliance with prevailing wage laws, local
higher provisions and designated third party beneficiaries. These are requirements that cannot
be waived. The benefits and the ordinance are required by the Aggie Square settlement
agreement, transportation was an added benefit and the ordinance allows Council to add project
specific benefits. The ordinance also includes language to allow Council to approve a CBA with
some, none or all of the listed benefits plus any additional benefits. This allows Council
the flexibility to tailor benefits that are most beneficial to the community while balancing
the realities of delivering a project. The ordinance also provides exemptions for all
housing projects including certain mixed use projects and pipeline projects that received
site plan and design review approval by effective date of the ordinance. The ordinance requires
the city manager engaged the community at two key points when developing the CBA and
when evaluating the performance of the CBA. It also includes a provision to allow the
city manager to adopt policies and procedures to implement and enforce the ordinance. This
concludes our presentation and now I'd like to turn it over to Sacramento investment without
displacement for their presentation and staff is available after for questions.
It's great. We will listen to SIDD's presentation. We'll then hear from the public and then
we will debate and deliberate here. So who is presenting for Sacramento investment without
displacement? And thank you for being here and for all the time and effort you have all
collectively spent on this. Good afternoon.
I am Kim Williams. I am the director for Sacramento investment without displacement as well as
Sacramento building healthy communities.
It's a meek of a clue. I am the executive director of the Sacramento community land trust as well
as the vice president of Sacramento investment without displacement.
QR read executive director of civic thread and I'm the transportation chair for Sacramento
investment without displacement. Thank you all. We will be presenting today. It'll be a brief
presentation as Leslie talked about earlier. This has been a long long process and there's
still so much so much so much work that still has to be done. When we came together, Sacramento
investment without displacement actually back in 2018 is when we started the work and then
up into this point, it was for the sole purpose of making sure that our communities don't
get left in the dust when it comes to development. We want to see things happen in our city.
We want our city to grow prosper and be the wonderful Sacramento that we all want it to be
and know it can be. But we also don't want that to happen and leave the people behind who
have left left what in tears in the city and have worked hard for generations but get
pushed out because of that development. And there's a way to do it responsibly and do it
together with the development with the city and with community. And so that's why we came
together and that is why we still stand here and why we will continue despite what happens
today, continue fighting for our communities. And that's all communities in Sacramento.
We want to, which one is it? I always do that. Yes. Our Sacramento investment without
displacement members in case folks don't know. Of course, it's building healthy communities,
Sacramento housing alliance, organized Sacramento, civic thread, Sacramento act, Ecos, Ace,
Washington neighborhood center, love lift. Sorry, love lift up. My glass is on lift up,
love always. And then the Sacramento community land trust. We also have other members,
individual members that are a part of this group, residents from different parts of the community
that are also a part of SIDWG. And our work really became, is really looking at what a community
benefits agreement is and what it should be. And it requiring strong partnerships between
local government, developers and community groups and working together to determine what
is needed in the community. Every community, it's not a one size fits all. We recognize that
each community may need something different. And that's why we wanted to build that into
what a community benefits agreement ordinance would look like. We know it was a part of
the lawsuit, how it ended up becoming an ordinance or maybe discussion as to who brought it
to the settlement piece, but it got put in. And that was something that we were very proud
of because we did want to see this happen so that we don't have to come and fight every single
project that comes. There's a commitment from this group, this body to the residents in Sacramento
that says if something comes, it's coming into your community. We want to make sure you are
well taken care of. And this ordinance would also outline the CBAs would be required, what
would go into them and who would be involved in the process of creating and enforcing the CBAs
making going into the future. And so my counterparts are going to talk about what makes it strong.
So this isn't a surprise because last time we were here we talked about the same elements of
what makes a strong CBAO. It's having minimum benefits, it's having strong community engagement
and community led decision making power and having an ordinance that is enforceable.
Unfortunately, the ordinance that you have in front of you doesn't have those things. And for
that reason, SIDWD does not support the ordinance as it stands. This shouldn't be news. Again,
we have been advocating for these to be included since 2021 and we haven't seen those things change.
We've been fighting really to develop an ordinance that protects longstanding residents
and that ensures that the benefits of any economic or infrastructure investments are shared
and experienced by those impacted communities. But this ain't it. The draft that is before you
is insufficient and unfortunately it will not address long-term anti-displacement protections for
residents and small businesses that would be impacted. Research has shown us that community benefits
or wheat community benefits agreements will actually do more harm than not having one at all.
If we can't put forward a strong ordinance that has those minimum benefits that has community
decision making power and that is enforceable, then SIDWD can't stand behind it. And so we're not
standing behind this one that's that's in front of you today. We believe that our residents and
our small businesses deserve more than what's being offered to them. At its core, a CBA is about
equitable access to decision making power. It's about giving community members who may be harmed by
displacement or by large developments, the agency to come to the table and to ask for what they need
to really be able to communicate what their needs are and to be able to have that decision making
power for the things that are going to impact their own livelihoods. It's really about respecting
the needs of the community and it's also about people over profit. Unfortunately, the current
proposal lacks meaningful community participation and let's be real. SILOING, engagement and
limiting community participation and decision making processes only exacerbates what the CBA
is intended to do. So why are we doing that? If you can't have a CBA without community, it's
literally in the name. So let's call it what it is. What you have before you is a benefits
agreement ordinance. It's not a community benefits agreement ordinance and it's not intended
to benefit the community and so we won't stand behind it. Thank you.
And I'm sure that's not what you probably were expecting to hear from us today. They
here are laid it out really perfectly clear. A weak community benefits agreement is like worse than
having no community benefits agreement at all. So we want to speak to this process because
while I appreciate the reflection of the Aggie Square project in the San Miguel market over
there on Stockton Boulevard which would not have triggered our community benefits agreement,
this wouldn't have the benefits of Aggie Square would not have come out if we hadn't
settled a lawsuit. These are the same things we asked then that we're asking you all now.
And the fact that the city of Sacramento put themselves in a position to be a defendant of that
lawsuit does that's not how we want to continue working. That is not how we want to continue
doing development and doing community benefits. I think that we think as a collective that it's
really unfortunate that the direction that your council gave on February 28th of this year was to
conduct a workshop to wear the Sacramento investment without displacement and the business
community and the Peabeds and small business owners and construction workers and the unions
could all come together and really talk about how we can make this a win-win for all of Sacramento
and that did not happen. When we talk about meaningful engagement it means that both parties both
sides come with their whole hearts and whole cells to the table and that did not happen from the city side.
We were really hopeful with the small business protections ordinance work that this could be
something where we could come together and work out the details to make this strong enough
to benefit all of Sacramento and that did not happen. And so that leaves us with this
this whole of what where's the trust that was supposed to be built in this process.
And that's a question I think really for your leadership for you guys here at the Dias because
that trust really has been broken. We have come in good faith over these past three years to do the
work to bring forward minimum benefits to bring a tiered ordinance to bring all these different
tools and resources to make this the best ordinance it could be and that did not happen. That is not
what's in front of you today. So as Sacramento investment without displacement rejects the city
strapped of the community benefit agreements ordinance. I suppose this means that we will continue
to look at every single development and if there isn't a community benefits agreement that
really puts community first that brings that investment that's the city is putting into that
development those investments need to go directly to the people who are impacted by them. And
it's unfortunate that we're put in a position to fight for benefits for every single project that
is not a good use of our time that is not a good use of our resources the community's resources
nonprofit we're nonprofits but also staff resources this is unacceptable.
So I'll just close with saying that this is unfortunately a lost opportunity for the city of
Sacramento. My hope is that maybe a future council will bring something back that is stronger
that has community at the forefront that has minimum benefits that the community decides where
that investment goes to. Now someone is saying that we're not going away like Cara said we started
this work in 2018 together and we're all still here and we'll continue to be here and we'll
continue to hold the city accountable we'll continue to hold big developers accountable and we
hope that you do the same. Thank you thank you thank you to all three presenters let us now
hear from the public and then we will turn it over to the council and I would say a few things
to begin and then turn it over to my colleagues. Thank you Mayor I have 11 speakers the first is
Robert Copeland, Alberto MacCardo, Scott Ford, Rashid Sedeck. As an ace member and a doc by
member which is this bill you write group here in Sacramento this ain't working for Sacramento.
A committed benefits agreement should benefit everybody in Sacramento is it going to do that? I don't
think so. Can you please get your act together? I mean along with how they should be accessible
for people in a wheelchair walkers and 20% affordable housing is that all income levels? What
income level at this rate? Does it help people on SSI minimum wage? Get it do better. We can
vote you out. Thank you. Next speaker is Alberto and Scott Ford.
Good afternoon councilmembers and mayor my name is Alberto Mercado I'm a resident of O'Para
and I've been a resident Sacramento for the last 30 years. As a resident district five I urged
my city council representative and city of Sacramento to reject the current version of the cities
proposed community benefits agreement ordinance. Currently the draft community benefits
agreement ordinance does not sufficiently address the long term until the placement protections
for the residents and the businesses as he was intended. At a personal level I am advocating for
us community benefits or agreement ordinance to include minimum benefits to make sure residents
like myself can stay and leave in our neighborhoods where we grew up. A affordable housing
transportation or first development is more local business protection and community having a
direct role in CBA negotiation is critical to the development of community benefits agreement.
Residents represent the people most threatened by the impact of large developments
and in their communities and must also enjoy the benefits they bring. Thank you.
Next speaker is Scott Ford and Rashid Sidik.
Good afternoon mayor Steinberg members of the council city manager Chan and city staff.
My name is Scott Ford on behalf of the downtown Sacramento partnership representing the 66
block neighborhood in the heart of California's capital city and on personal note I also
represent the entire Sacramento community. I grew up here. Yes we represent the business community
but we represent the entire Sacramento community and we hear deeply about our city.
We recognize that the council must consider community benefits agreement ordinances part of
the Aggie square settlement however we have strong concerns with the proposal is written and we
adamantly urge the rejection of this ordinance as we are concerned it has the potential to undermine
the growing momentum in our community. We agree absolutely that community benefits should be
delivered as part of catalytic projects especially projects that receive public subsidy
but those negotiations need to play out on a case by case basis given the unique and the very
delicate nature of each project. Simply put there are no community benefits if there is no project.
Recently we've seen great opportunities legacy projects, stadiums and the rail yards adaptive
reuse live music venues and a much needed convention center hotel come forward. Those are great
projects with major potential but they're also very delicate and we're concerned that this is
well intended but counterproductive policy that may jeopardize those very projects.
Now is not the time to bring forth a one size fits all ordinance which will limit future
opportunities for the residents while also not addressing their needs. We thank you for your
consideration for your leadership and we're committed to continue to be here to work with all of
you and to work with our community. Thank you. Thank you for your comments Rashid
and then Liz Lim and Jameson Parker.
Rashid Sadeek would lift up love always. I'm here with a heavy heart because I've seen a lot of
good work go down the drain for three years. Mayor we've been waiting for I don't know 18 months
to get to our workshop. I don't know so a PLA just had a discussion. PLA is at the school just
is at one million dollars to benefit the whole community. Here we are talking about 10 million dollars.
I don't know how many times you contribute 10 million dollars to a project but I bet you it's
near to now. So what you put in front of us has to be rejected because it's a joke. It's not
intended to help anybody. It's intended to check a box and let's move on. Everybody's
mayor and then you put us on your last day on your last day. That was intentional.
No I wasn't. Yes this is intentional racism right here. This is intentional and I see it as that
and I hey listen your day is just your last day. Thank you for all your contributions but this
right here is disrespectful. We've been working on this with three four some have been working
on since the 2018 with your leadership and here we are on your last day and you feed us.
Come on this we have to do better city manager we have to do better than this next week is going to be
your week. We're going to see. Thank you thank you. Thank you. Thank you for your comments.
Luz Lim then James and Parker and Devon Strecker met McDonald.
Good afternoon my name is Lou Slim and I am here to speak on behalf of the Environmental
Council of Sacramento. I'll keep it brief because I really can't put it any better than the
SIDWD folks who are here today. It's clear how passionately they have worked over the past years
to make sure that community has a place at the table and a voice in deciding what community benefits
should be. The proposed agreement ordinance does not account for SIDWD's very thoughtful recommendations
to create an effective citywide ordinance and it excludes community at benefit negotiations.
Eco stands with SIDWD in opposition to the proposed community benefits agreement ordinance
and we have submitted a letter of the e-commerce thank you very much.
James and Parker? Good afternoon mayor and council members I just want to start by making staff
for their hard work on this project. I'm James and Parker with the Midtown Association. We're a
property based improvement district here in the central city we represent about 1200 property
owners in our urban core our mission is to make Midtown the center of culture creative the
environment see. I'm here today to voice our opposition to the agreement in front of you today.
I think actually Leslie did a really great job. We're not opposed to developing community
benefits but we believe that it needs to be done on a project by project basis. We believe that
in doing so that the city council retains its flexibility to be able to make sure that we're
able to achieve our outcomes based on individual projects impacts and that they are most supportive
and responsive to the community that they are impacting. At the same time this flexibility
ensures that economic development agreements are created that don't slow or halt positive momentum
that we have in our city and what we really experienced in the last month seeing the preliminary
term sheet come forward for the Sacramento rail yards and the development of our stadium.
In working to achieve this common goal of delivering sustainable economic growth we employ the
city council to consider a thoughtful economic growth without creating a burden through this
ordinance which could create unintended limitations on our future and the city council's ability
to manage it. I appreciate your time. Thank you. If you're comments Devon Stryker, Matt Mcdonald,
Chris Valencia, Barry Brum.
Good afternoon. I'm Devon Stryker, Executive Director of the River District and a resident
of District 4. River District we'd like to express our opposition to this ordinance.
As you know we are a redeveloping area of downtown Sacramento. We are different from much of
the rest of the region and so our needs are different and so for that reason we would ask that you
would consider these type of community benefits which we do see as valuable but on a case by case
basis. We are trying to redevelop a formerly industrial warehouse distribution center. We did not
have any very many residents until just recently and our residents are looking for these
catalytic projects to come in such as the proposed Sacramento FC Stadium in the rail yards
and we are hopeful that there will be no additional layers of bureaucracy to prevent these types
of projects from moving forward. Thank you. Thank you for your comments Matt Mcdonald.
Good afternoon Matt Mcdonald from the California Department Association.
Speaking in opposition to community benefits agreement ordinance. In short we oppose the creation
of a one size fits all policy with respect to large economy building projects that have the power
to act as engines for future growth in the city. The instinct to expect community benefits to play a
role in future major projects is not wrong but Sacramento needs to respect the reality that within
this region there are multiple other jurisdictions that lack Sacramento's red tape and who are frankly
far easier for major developers to do business with. Raising your barriers to entry through an
untalered ordinance doesn't just discourage investment it creates a reputational problem for the
city. It says if you have a major project we don't want to be at the top of your destination list.
Once you've built a reputation for being hostile to this new investment that impacts your ability
to do everything else vital in the city like increase housing supply or reducing homelessness.
Being aspirational in economic development becomes impossible at that point.
We would urge you to reject this proposed ordinance today and send a signal to the region
that you're committed to being competitive for major projects region wide thank you.
Chris Valencia and Barry Brune.
Hello Mr. Mayor and City Council my name is Chris Valencia. I am here speaking on behalf
of the North State Building Industry Association. We want to thank Council and staff for working
with us to insert language on housing into this. We just want to urge caution when considering the
community benefits ordinance that this could create a cooling effect on development giving
developers pause and we definitely do not want to see home building in the Sacramento region slow
to a trickle. It is important that we continue to and continue to attract investment into Sacramento
building housing as well as other projects. Thank you.
Thank you for your comments. Barry Brune then Sarah Robilato.
Yeah thank you. We're going to contest. First off you know we want to work with the neighborhoods
and we're always available I reach out the Gabby so we can start tomorrow working together. We
don't need to be guided by the city and we're committed to helping everyone. The reality on the
Aggie Square agreement is UC Davis and the city's to pay her on this not to developer.
Developer doesn't have a discretionary penny in this settlement. So if you start moving this
around other parts of the city where UC Davis isn't backing it up you're going to run into the
private conditions which is this developer would have walked away if you decide you got to pick up
the city's contribution towards Aggie Square. The second thing if you look at the union agreements
from AFSCME they pretty much keep local businesses from participating in this project.
So maintenance construction workers have to come from UC Davis union workers. A real missed
opportunity for minority ownership and participation from the neighborhood. There's food union
agreements we already know from one local vendor that was trying to get a big opportunity to Aggie
Square that was minority owned was turned down by the legal department of UC Davis because they're
not unionized. So if you look at Aggie Square it's you know the city's paying the universities take
in the risk labor is getting all the benefits and not everybody in this community is in labor right
very small percentage of people in the private sector in California and in the union it's about
6% 12%. So 88% of the people aren't in a union and when you start looking at minority enterprises
and minority participation they're typically not unionized. So we do think the construction
agreement was very good we're all four local options on requiring local hiring. We're
Sacramento guys I live in Midtown we want to see people pulled from the neighborhoods but I think
we're overstating the value of Aggie Square when it comes to community impact when you really
start to pull it apart and take a look at it. So obviously we oppose a blanket ordinance thank you.
Thank you for your comments. Sarah Ropelato and thank you for the spelling and then Josh Leachman.
Good afternoon y'all I'm Sarah Ropelato I'm the managing attorney with legal services of Northern
California. We were at the table when the community of the idea for the community benefits agreement
ordinance was conceived and agreed upon and developed and that idea actually came from the city
to bring the parties together and to create something innovative for Sacramento and the idea is
a good one. A good CBO has the potential to create a collaborative structure for future projects
and to ensure meaningful benefits and protections for the communities that host these future projects
and bear the impacts and to prevent the mess that comes from ad hoc basis negotiating these
agreements. The work that SAWD has engaged in over the last three plus years is truly remarkable.
They commissioned professional research about CBAs and CBAOs across the nation they met continuously
as a coalition to pool their collective wisdom and experience. They did several workshops and
community surveys that reached over 300 residents and over and over more than 20 zip codes and they
drafted memos and ordinance language and they met with the city on a weekly basis for months at a
time and when the city ultimately brought forward a framework and an ordinance that lacked any
resemblance to the CIVD's proposals they cuffed up their sleeves and they got to work and good
faith with the city to provide detailed comments and recommendations. They spent countless hours
in meetings with with the city with you all with stakeholders all to try to reach a compromise
and bring the vision that the city promised to life but the CBO before you doesn't live up to that
promise. The community is absent from this CBO. There's no role for the community to be at the
table negotiating future CBAs. It's relegated to and to enroll of providing input. There's no guard
rails or requirements for community oversight and it lacks specifics that is required by research
and for the reason stated in our letter neither the process nor the draft complies with the settlement
agreement. This is a missed opportunity. Thank you for your comments. Josh Leachman, then Dianne Dwyer.
Good afternoon Dianne Dwyer representing the Archery Partnership.
Good afternoon mayor and council. I want to thank staff and everyone here. This is obviously a topic
that's important to the entire community and as a residents of Tahoe Park I understand
how we try to balance community and we try to balance development. The ordinance that you have
before you today we are opposed. The one size fits all model. We realize that we need to negotiate
on a one by one basis for what fits the developer and what fits the community. So I would like to say
again on record our street partnership of poses and thank you for your time. Thank you for your
comments. I have three more speakers. Josh Leachman, James Allison and Liz Williams.
I don't see Josh. James.
Good afternoon mayor councilmembers and staff. My name is James Allison with the power and alliance.
Property business improvement district representing Sacramento's manufacturing and industrial core
as well as the 1300 businesses within it. I am here today to offer a few of our concerns with the
community benefits agreement ordinance and rather than simply reiterate many of the same concerns
that you've already heard I'd like to speak to our chief concern and how it relates to our district.
Firstly we believe that community benefits are an integral part to any transformative project.
We simply believe that this ordinance is not the strategy by which to achieve them.
The power alliance is home to the Sacramento Center for Innovation, a 24 acre special planning
district with the hopes of becoming Sacramento's hub for pioneering and innovative businesses.
We believe that the success of such a district would bring significant investment to the city
of Sacramento but not without a centralized tent post catalytic project that can truly attract
investment in the same way that we have seen in other parts of our city. We however believe that
the ordinance in front of you today would create a hindrance in securing such a project.
As we have seen with some of the projects here in Sacramento the ability to create these benefits
is not impossible without such an ordinance in place. We simply ask that the SEI be given the same
opportunity to create a truly tailor-made and customized approach to our own community benefits
to maximize the benefit within Southeast Sacramento. Thank you very much and we appreciate your time.
Liz Williams will be our final speaker on this item.
Good afternoon. Mayor, City Council, City staff, City Manager. Thank you all for your work
that you've done on this. I'm here today on behalf of the Metro Chamber and the member businesses
we represent, their employees, their families, who all grow up in this city. We would like to take
a moment to appreciate the tenacity of the mayor and this council and the City Manager and staff
for working diligently to bring together a space for public-private partnerships that drive
inclusive economic prosperity for this city and region. We have seen over the last few weeks and
years what this type of collaboration can do to bring to life catalytic projects to the City of
Sacramento but as we all know projects with such magnitude like the ones coming to the rail yards
like the Golden One Center and like Aggie Square are delicate, complex and require flexibility to
bring to fruition. For these reasons we urge you to reject a one-size-fits-all policy to address
community benefits for large-scale public-private investments. Community benefits should not be
prescribed by policies that could have unintended consequences and deter the viability of the types
of investments we want to see in the city and region for the future generations to enjoy.
We should strive to create a climate that attracts and retains major projects in every part of
Sacramento. As they come forward investments into the community should be proactive and tailored
to the uniqueness of the project and the surrounding neighborhood for the betterment of all.
Flexibility will be pivotal to ensure project acquisition and economic investments land here
and without projects our ability to nurture our communities and grow collectively is limited.
We urge you to reject this proposal before you today and instead working collaboration with
the community and development partners to proactively create active strategic initiatives throughout
Sacramento by navigating each development opportunity with imagination and individuality.
Thank you for your consideration and opportunity to comment today.
Thank you. It's all about a clerk. Thank you very much. Okay, let's start off here and then turn it
over to my colleagues. First of all thank you for all the public participation. Thank you to SIDWD
for all of the time you spent on this. Thank you to the city staff. I hear your disappointment.
But I don't think we should pass anything that has virtually no support from either side.
And that's the case here. So I guess that's the bottom line but I want to use a moment here just to
say something which may sound a little bit corny but I mean it. We all are friends. We are not
enemies. We are not enemies here. We may see things a little bit differently about how to achieve
community benefits. But my whole life as well as the lives and the contributions of everyone
sitting on this day as has been for and about community. Trust goes both ways.
I understand. I see Rashid. I understand you're distressed of the systems and of people like me.
And I could say till I'm blue in the face we've produced more affordable housing these last years
than ever before. We have a comprehensive CWTA community worker agreement, a PLA for anything
over a million dollars. I could say to you that we've invested on precedent at amounts of
money and workforce development or in forgotten commercial corridors or we've gotten to 1500 beds now
in terms of our homeless response from a low of less than 100 when we start I could say all of that.
And I know this and I'm not offended by it. I just recognize that we all have a long way to go
including me and all of us when it comes to building trust that none of that has an impact on you.
But telling us that Aggie Square, the community benefits agreement would not have occurred
in any form but for what SIDWD did I disagree. You were a key partner and yes you were the catalyst
and you pushed us farther there's no question about it. But frankly when I got involved with Aggie Square
you better believe front and center in my mind was community benefit that's the whole reason for it.
I negotiated the mandatory not not advisory local hiring requirement the only one in the country
that didn't come from SIDWD that came from me this office. We put the number of 50 million dollars
into the affordable housing trust fund and so trust goes both ways and I look at Aggie Square
and I ask why was it so important and impactful? It was important and impactful because it was in fact
organic and you deserve a lot of credit for that. It was organic. It was the product of a dynamic
and sometimes uncomfortable tension between the stakeholders, careholders in the community
from whatever side and their elected representatives who you do have the opportunity,
Mr. Copeland said to elect or to throw out of office if you don't like the job that they are doing.
It addressed the unique circumstances of Aggie Square including the real threat of gentrification.
That was the impetus behind this and it was right. The ideal of a citywide ordinance is
lawtatory and whether you believe me or not I believe in community benefit agreements.
But a citywide ordinance with mandatory minimums in my view is a flawed concept.
It's a flawed concept because every project is different and needs different community benefits.
As I mentioned we have minimum benefits in the city, PLAs for example for public works projects
but minimum benefits are premised on the idea that every major project causes displacement.
That isn't true. I mean look at the rail yards. What is the displacement that is being caused in
developing the rail yards, the waterfront, the hospital in Atomas by the way?
As well as the rail yards have mandatory affordable housing requirements, significant mandatory
affordable housing requirements built into the development agreements.
So I just think that sometimes trust or lack of trust is conflated with disagreement
because I applaud and in many ways trust you because you're out there fighting for the community.
But I think the best community benefits agreements are ones that are derived
when we repeat what we did with Aggie Square. We organize, you organize, you have effective
representation that meets you more than halfway and that fights for what's best for the community.
The defeat of this today does nothing to inhibit or limit that kind of
ethic, that kind of pattern, that kind of activism going forward. It should continue.
I just think this concept of a citywide ordinance for the enemies is flawed.
Thank you. Councilmember Valenzuela.
Thank you Mayor. I agree. I mean sometimes when nobody agrees it means
we've reached a good compromise and sometimes it means we've just missed the mark.
And I think that latter case is the case today.
You know there's a lot of details in this ordinance and discuss that I'm not going to get into
because I raised very detailed comments every time it was at long-ledged, every time it came
to this body and gave detailed suggestions, a lot of which I don't see in here.
And I do want to applaud the community work because as was mentioned these are nonprofits,
many of whom are not paid to do this who engaged with us diligently for a very long time,
to try to find a solution that made sense. And I want to thank you for your time and energy on that.
And I want to reiterate your comment because I do agree and it's one point I disagree with the
mayor that this ordinance was an effect when Aggie Square came about that we wouldn't have gotten
near the level of benefits that were achieved in Aggie Square. It sets way too high a bar.
In fact EIFEs aren't even covered in this CBA ordinance. You know it's really unfortunate.
And to push back a little on a comment about they're not really being benefits just because I have to.
Most service workers in this region are people of color, very, and they deserve living wages and
benefits. I don't think we ever win. We don't win when we pit business owners against workers.
And I think we can all benefit and can and should be working together to ensure that we rise the
boat for everybody. And it's not about pity minority business owners against workers because we
all have the same goal. I've heard throughout this time with staff that obviously if an
elected city council member for an area wanted a change to any agreement that they would have
a seat at the table. This is deferring to council members. But I have to say that just a couple
weeks ago when we considered the rail yards EIFD which is directly adjacent to my district and
will eventually be in my district in just a week's time. And to the mayor's comment about what
displacement is happening for the rail yards there's a lot of displacement happening because of
the rail yards development. I made a request for an enhanced community benefits process. I didn't
even ask for specific benefits. I made a request for a stronger process and that was denied.
So my time on this council has not shown that council members of that district or near that
district have the autonomy to advocate for what their community needs in a way that will guarantee
benefits in the way that this ordinance is currently designed. And so my opposition to this comes
from a very different place. That I just fundamentally don't believe that the mechanism that's
designed here will work in good faith in the way that staff says that it will. I unfortunately do
agree that we're in a stronger position to fight project by project and I don't think that's
good for anybody. And I just want to say that right now. Not just from capacity perspective. What I
have continued to insist with the business community is that we acknowledge that consistency
and predictability is good for everybody. That if we know going in that there's a 10% affordable
housing requirement. If we know going in that there's certain benchmark expectations that that's
good for everybody rather than one project getting subject to $50 million of requirements and
another getting subject to none. That is not a level of consistency that anyone can take to the
bank and it's not a level of consistency that the community wants either. I think we had an
opportunity here to find something that would have worked for everybody that we missed. And so now
I do believe we're in a stronger position without this ordinance in place to advocate project by
project. And I'm looking forward to joining you all in that work in just a couple of short weeks.
So with that I would actually like to make the motion to reject the ordinance with a lot of
heartache and regret. But I do think it's important to recognize when we just have
inreconcilable differences. I don't think we're going to get there as a majority on this body
and with the staff team. And so I think it's just important for us to put this to bed and make
that motion. Mayor, thank you. Moved in second. It counts from every get up.
Thank you very much. Mayor, I appreciate this and I wanted to also one, I think if anything,
first give a lot of thanks to our city staff that took a lot of time trying to bring
the two parties together. The two very disparate points of view. And I can imagine it's
difficult to come to the data to here and present on a proposal and hearing every single
different person come at it for a different reason why they're opposed to it. But I want to tell
you just personally because I've been in those conversations since 2019 and to say that I
greatly appreciate how much time that has been put into this. The legal work, the policy work,
the looking at the trade-offs to try to find something. And so for me, I want to personally first
think the staff because they were put in a very difficult position to try to find something that
everyone could come over here and say, this is where we should be going. And they came at it with
understanding the true needs that one, our economy is fragile, that all of the places that
the mayor just mentioned, including the need that we still have a challenge because of interest
rates and other things out of our control, the development of housing that are at risk. And also
the clear focus. And I want to thank Leslie because she was at all of those community meetings,
whether they're in Tahoe Park, Fruit Ridge Manor, Oak Park Community Center, to understand the
needs and also the fragility of the community and to be able to develop so many benefits out of
what happened in those negotiations. And it's always interesting how people remember things because
the framework that came out of the CBA actually was agreed upon before the lawsuits were filed.
You know, we are already moving down that path. And so I think to the mayor's point, the issue
of trust is one that, you know, post-this action needs, we need to work on because it was that
lack of trust that, hey, we're going to miss this deadline. So let's file the lawsuit. And what
happened because of that is it actually ended the conversations that we had. It stalled the
conversations and the work that we were already doing. We already were working on the housing
issues, the transportation issues, the small business protection issues. And in fact, the work that
that SWID presented when we passed the small business plan two weeks ago is an example of that work.
And those were conversations we had right in the middle of when we were all trying to learn how to
use Zoom. And to think that those are things about the benefits that came about. And I mean,
I have to give a lot of credit to the mayor here because even in the Golden One Center project,
local hire was a goal. It was an aspiration. It wasn't a requirement. I mean, the fact that
that came out from the mayor's office to negotiate between the two parties because it wasn't the
city. It was the developers also with the UC that wouldn't all agree upon the issue, but to get
a mandatory local requirement. And then on top of that, 20% is hard enough to meet. To go say,
in 10 years, we got to get the 25. And to get everybody able to reach that, that is a huge
amount. And so, you know, I think the other point here, and there's one issue where I do disagree
with the comments about the other lawsuit with AFSCME. A lot of the local 32, 99 folks they live in
might disagree. And even before Agiswere got started or the conversation, those workers had
already faced a potential displacement from the psychiatric hospital that was going to get privatized.
And what this solidified was, and again, I want to thank the mayor on this because he was the one
that was able to get into that negotiation to find out how to be able to make sure that those
local residents who didn't have a place to go to, and they moved to these neighborhoods because
they could walk or bike to work closely or use public transit. Those were benefits out of that
point. But all of those pieces, even before then, you know, they were already happening because of
that community work. So, to all the, to say is that, again, the CB, the community benefits agreement
itself and the lawsuits, I think would have ended up almost in the same place where we were at
today. So, the question really comes down to, in the future, how do we continue to build trust
to get to these negotiations? Because if it's always going to end up in lawsuits, we're going to
find out that we were stuck in a stalemate, and it wasn't until, and I got to thank Gabby Trejo
for this because she was the broker that brought people together from both sides to say, hey,
can we, can we, you know, everybody put their, you know, what do you call it, their figuratively
legal guns decide and get back to the table with the city, the UC, and the developers. So, you know,
the, so I want to make sure that we don't conflate what the real history was and actually getting to.
What I think is a great success, and because of that, because of that, we tried to replicate it
here in a different way. And we shouldn't, you know, we shouldn't be upset that we tried, okay?
I mean, we shouldn't be upset that we tried. If you don't try, sometimes you're going to fail,
you know, but we shouldn't be upset that we actually tried to make something positive.
But the reality is, is this proposal doesn't meet what we want to meet in either way,
and the reality that I think we all can agree on, it is detrimental to both people's perspective.
And in my opinion here, I mean, I appreciate the motion to reject. So, glad to support that motion.
I also think the motion just to lay on the table is the appropriate motion as well,
indefinitely. So, but either way, glad to do, glad to, to either support the motion to reject,
but also the, if it proves that, you know, the maker of the motion, motion to lay on the table would
be the, I guess, the preferred parliamentary procedure in this one. So, with that, I'll leave it there.
Mr. Mayor, and, you know, I just, again, I just want to thank our team, you know, because we did
put you in an impossible situation. And the only thing that I think that should be recognized
is the effort that was made to try to get the council, the community, and all of the interested
parties to get to the table. Thank you, Mr. Mayor.
Yeah, I just want to add that too. For those who are disappointed, and a lot of people just
would do not blame this staff here. This is the direction of the, you know, it's represented
with the direction of the public officials. Like I said, in my view, it is a lotatory concept.
It just doesn't work to prescribe minimums for projects that are by definition fundamentally
different from one another. But this is the staff did a good job here. As did SIDWD work to TARDO.
Okay, do we have anybody else? We do not. There is a motion on the table to, to oppose, reject.
Thank you. Okay, it's called the role, please.
Thank you, Councillor Mimber-Capplin. Councillor Mimber-Tau. Mayor Protémentelementes.
Councillor Mimber-Valence-Wayla. Yes. Vice-Mimber-Maple.
All right. Councillor Mimber-Getta.
All right.
Councillor Mimber-Gennings. Yes.
Councillor Mimber-Vang. Yes.
And Mayor Steinberg. Yes.
The work continues. I hope the work continues into the next
administration. Maybe there is a formula that no one has, no one has yet come up with despite
great efforts. Okay, that concludes the afternoon meeting.
Do we have council ideas and questions? Or do we have any?
Tonight at five, we're going to begin with some special presentations.
And then we actually have a substantive agenda tonight. So we will look forward to all of that.
If there's nothing else to come before the City Council, we are adjourned.
Discussion Breakdown
Summary
Community Benefits Agreement Ordinance Rejected
Opening and Introductions
The Sacramento City Council held a special meeting to consider a proposed citywide Community Benefits Agreement (CBA) ordinance arising from the Aggie Square settlement agreement. The meeting featured presentations from city staff and Sacramento Investment Without Displacement (SIDWD), followed by extensive public comment.
Key Participants
- Mayor Darrell Steinberg
- City Staff (Leslie Fritzsche, Ellen Sullivan)
- Sacramento Investment Without Displacement (SIDWD) Representatives
Public Comments
- Multiple stakeholders spoke, including:
- Business groups (Downtown Sacramento Partnership, Metro Chamber)
- Nonprofit organizations
- Community advocates
- Overwhelming consensus against the proposed ordinance from both community and business perspectives
Discussion and Deliberation
- Councilmembers highlighted concerns about the ordinance:
- Lack of meaningful community engagement
- Insufficient flexibility for project-specific benefits
- Potential deterrent to economic development
Key Outcomes
- City Council voted unanimously to reject the proposed Community Benefits Agreement ordinance
- Mayor Steinberg emphasized continued commitment to community benefits on a project-by-project basis
- SIDWD and city leadership acknowledged need for continued dialogue and trust-building
Next Steps
- No citywide CBA ordinance will be implemented
- Future community benefits to be negotiated individually for specific projects
Meeting Transcript
Good afternoon everyone. The Sacramento City Council please come to order with the clerk call the roll to establish a quorum. Thank you. Councilmember Kaplan. Councilmember Tao. Mayor Per Tem Telemontes. Councilmember Valenzuela. Here. Vice Mayor Mayful. Here. Councilmember Gettas. Here. Councilmember Jennings. Here. Councilmember Vang. Here. And Mayor Steinberg. I am here. Good afternoon, everyone. I'm going to ask Councilmember Tao and Valenzuela please together to please lead us in the land acknowledgement and the pledge of allegiance may one or the other. How ever you choose to do it. Okay. Thank you, Mayor. Please rise for the opening acknowledgement and honor of Sacramento's indigenous people and tribal lands to the original people of this land, the Nisanan people, the southern Mahidu Valley and planes me walk the put one went to people and the people of the well-ten retiree of Sacramento's only federally recognized tribe. May we acknowledge and honor the native people who come before us and still walk beside us today on these ashrerstral lands by choosing to gather together today and the active practice of acknowledgement and appreciation of Sacramento's indigenous peoples history contributions and lives. Thank you. A please remain standing in salute pledge. I pledge allegiance to the five of the United States of America and to the Republic for which it stands one nation under God in a visible liberty and justice for all. Thank you. Next time we'll switch. Yes. How about it five o'clock? Yeah. That's exactly the way we should do it here. Thank you to both the good and great public servants, council members, town, balance, wayla. Members, we have one item of business this afternoon. It's a very important item. It is a consideration of a community benefits agreement ordinance. And Leslie Fritch, are you going to present? I want to thank you and the entire city staff for working so hard on all this. Let me make an opening comment if I may. I mean, you know, don't get to make opening comments too much longer. So make a brief. This of course arises out of the Aggie Square settlement agreement, which was a model community benefits agreement that was organized essentially by the community with some creative tension, ultimately in collaboration with the city, the developer, Wexford and the University of California at Davis. And we created something that I think was really impactful and important to that project. As part of the settlement agreement, there was a provision that was requested by the SIDWD to consider a city wide community benefits ordinance that could or would apply to other projects throughout the city. And so it's taken a while. It's often does in government a lot of discussions with the community, with the city staff, some with the elected officials, etc. We actually heard this, I think, in some form at the beginning of 2024. And we are here now today to consider a staff proposal and the community's perspective both the SIDWD and the business community's perspective on all of this. And that's what brings us here today. So I just wanted to make that opening remark to kind of set the context. Leslie? Well, it's my pleasure, Mayor Steinberg. I can say that I think perhaps the last time this afternoon to be here with you and council members. Thank you for allowing us to present today this afternoon. We're bringing forward for your consideration a draft community benefit agreement ordinance as required by the Aggie Square settlement agreement with the Sacramento Investment Without Displacement. The ordinance before you would require community benefit agreement for projects receiving over $10 million in city assistance. Putting this draft ordinance together, as the mayor has mentioned, has taken some time for we've tried to strike a balance between the input received from SIDWD and community members and the business community. And what we've created is a defined CBA requirement, which includes benefits to the residents and neighborhoods adjacent to a proposed project while not negatively impacting development activity in our city. Our approach is to allow the tailoring of a CBA to the needs and parameters of the proposed project rather than being too prescriptive and since one size doesn't fit all. We have outlined a framework and not a specific outcome. The draft ordinance contains the elements as required in the settlement agreement. Additionally, the draft