Presentation to Transit Communities Exchange Forum

Kristin Pula

Eastside Easy Rider Collaborative

2/29/12

Intro

HomeSight – 22 yr old community development organization in Southeast Seattle

Build affordable home ownership housing
First time homebuyer and lending programs
Community development work to support small, independent businesses on MLK (where light rail runs), many of which are immigrant businesses

MLK Business Association

Was formed to help the businesses along the light rail line to help these businesses build their capacity and reap opportunities the light rail and other development could create – such as attracting new customers and increasing sales

Purpose

Give some context to what we mean by equitable transit oriented development – what is equity
provide bit of a snapshot of one community‘s vision for its future within the context of a new light rail line and new development – at MLK and Othello
Highlight some steps that were taken to ensure equitable development in this area – particularly regarding the diverse businesses along light rail line
Some lessons learned and other strategies for minimizing displacement of low-income residents and small businesses

1) MLK corridor and Othello station area (overview and types of businesses)

What is equitable transit oriented development?

When we say social equity or equitable development part of what we mean is that the people living and working in a particular community will benefit from new growth in that community

New infrastructure investments like light rail or other high capacity transit systems are typically followed by private investment (residential and commercial development). These investments and growth should provide opportunities for the people already living and working in that community – incl low-income and people of color

Minimize displacement
Maximize opportunities

History of developing underinvested communities at the expense of those very communities – where low-income residents, people of color, and local businesses are negatively impacted or displaced by large infrastructure investments or land use plans and zoning changes

Often, those investments and zoning changes are planned and implemented without the participation of the existing community

In areas that do not have residents or do not have range of incomes and races represented, question is what type of community should the area become

And ensuring that public dollars/investments are used to build inclusive communities – that provide economic and social opportunities for range of families

Mention Equity Framework

MLK characteristics

Southeast Seattle is one of most diverse communities in Seattle and possibly the country

More than 60 languages spoken

Is home to many immigrants – Vietnamese, Lao, Thai, Cambodian, Korean, Filipino, Chinese, Somali, Ethiopian, Eritrean

The community has welcomed new immigrants for decades and provided them with access to affordable spaces to start businesses and earn a living. Cultural centers and places of worship followed, firmly rooting these immigrant communities along MLK and throughout the RainierValley

2/3 of the businesses are retail and services – restaurants, grocery stores, other retail

According to the 2010 census, in the four census tracts in the MLK and Othello area shows the population as 43% Asian and Pacific Islander, 25% Black, 22% White, and 7% Hispanic/Latino.

VISION – What does this mean for Planning and Equitable Development?

In planning processes over the last two decades – NewHollyUrbanVillage plan in late 90s, light rail conversations late 90s – early 2000s, Southeast Seattle Action Plan 2005, and most recent Othello Neighborhood Plan update 2009

Community meetings and forums – whenever community asked to talk about its values, what it wants to look like in 10 years, 20 years

First and foremost people overwhelmingly agree that what they most value about the community is the diversity of people and businesses who call the community home

#1 priority for development and future growth has been to preserve the diversity of the area and maintain its strong multicultural character

In equitable policy and planning terms what this means is priorities for

Preventing displacement of low-income and people of color residents and businesses
Encouraging local economic development
Preserving and expand affordable housing options

[Aside: these are the equity issues of greatest importance to a particular community. They may not be as relevant to your particular community today but the point we want to highlight throughout this conversation is that

Planning and policies directly impact what your community will look like in 10 – 30 years

Who will live there and not live there

Who will find opportunities there

No matter what your community currently looks like, this planning process – before a huge infrastructure investment is made in the community is time to really ask yourself – what do we want our community to look like and how can we intentionally shape them to be inclusive and provide opportunities to a broad range of future residents]

Given the strong history of cultural diversity in MLK community, when light rail planning began the community expressed particular concern around the impacts of prolonged construction – specifically the potential displacement and/or closure of small, independent businesses that line the MLK light rail corridor

Sharing this concern – the community, City of Seattle, King Co, and Sound Transit created the Rainier Valley Community Development Fund

2) One equitable development tool our community developed

RVCDF was created to support and prevent displacement of MLK businesses

Fund created 2002
$50 million allocation
To mitigate lost revenues of the businesses impacted by light rail construction and to invest in long-term business and real estate development in the area

Created Supplemental Mitigation Assistance (SMA) program to provide grants to businesses who could document a loss in net revenues or to businesses that had to relocate

From 2003 – 2008 CDF made $15 M SMA payments to small businesses

DATA

There were 310 businesses along entire MLK light rail corridor before construction began
181 received SMA funds between 2003 - 2008
47 of the businesses closed
85% of businesses still operating at end of construction – positive result for community
52 relocated

Success in terms of preserving community culture and character and being home to immigrant owned businesses

Ask: if community and agencies had not agreed that this was a priority and put funding in place to mitigate construction impacts, what would have happened to these businesses?

Construction was supposed to be segment by segment with no prolonged impact on any one business
That changed – to plan that affected entire corridor for longer time period
CDF changed its program 9 times to accommodate needs of biz and changes in construction plans

Post construction

City of Seattle continues to support diverse business community through

Continue capacity building and economic development grants that provide technical assistance and marketing support

City just received federal grant – Challenge grant – which focuses on supporting equitable transit-oriented development in Southeast seattle light rail station areas

Direct one-to-one technical assistance
Lease education/stabilization
Models for preserving affordable commercial space as area develops
Support for planning a multicultural center

3) Continuing challenges to equitable development – property value increase chart

We have mixed results so far re equitable development at MLK and Othello

Positive side – so far have prevented mass displacement of diverse businesses and are creating opportunities for those businesses to grow (become more sophisticated, attract new customers, increase revenues)

Neutral – the recession provided a pause on development at MLK and Othello, giving us some more time to implement strategies for equity

?? – We have the light rail investment but jury still out on whether subsequent development will be equitable – look at property values to see why

Look at property values slides

Land values at Othello increased over 500% since 2004

Leading to increased rents for both small businesses and residents

Presenting a risk of displacement

We know that with development communities change – not saying that we do not want investment and growth

Question is how to foster equitable development, so broader range of people and businesses benefit – thru increased opportunities and quality of life – from these public investments

Large infrastructure investments are public dollars – should ensure there is broad public benefit

What else can we do at MLK and Othello and your communities re affordable housing piece of social equity?

Tools and strategies

Lesson from Othello: if possible, purchase land before light rail construction begins (before property values skyrocket) in order to provide housing for broader mix of income levels

Property acquisition fund to buy properties before the values increase

Incentive zoning – requires developers to provide % of affordable housing

Equitable TIF – tax increment financing tool – that could bring additional resources for affordable housing and ah infrastructure

Opportunity – corridor task forces