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Ronald Reagan Presidential Library
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This is a PDF of a folder from our textual collections.
Collection: Roberts, John G.: Files
Folder Title: JGR/PSI (Private Sector Initiatives)
(9 of 10)
Box: 44
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$3.00
Community Journal of
Action
Vol. 1, No. 4, 1982
COMMUNITY PARTNERSHIPS
Perspectives on Partnerships
C. William Verity, Jr.
William Aramony
Hon. Pierre DuPont IV
William White
E. Morgan Williams
Partnerships in Action
Literature Reviews
HOUSING
Des Moines
Public-Private Partnership
New York
in American Cities
NEIGHBORHOOD
REVITALIZATION
Partners
Kansas City
Roanoke
Meeting Human Needs
YOUTH EMPLOYMENT
Phoenix
New York
Corporate Philanthropy
Pittsburgh
Research Reports
Community Service Partnerships
Milton Kotler
Community Development Partnerships
Susan Clarke & Michael Rich
Building Community Partnerships
Thomas Chmura
Stay current with
Community Journal of
"Helping Communities
Action
to Help Themselves"
Journal of
Community
0.00
the
Action Sept/Oct 1981
and
Donald Kent, William Schwek
URBAN ENTERPRISE ZONES
Pablo Eisenberg
Three Policy Pers
Notes from the Field:
PARTICIPATION EY
Funds Cash Flow
Community
A Research Symposium
Citizen
NEIGHBORHOOD
AC
AND URBAN CRIME
THE / I
Confront or Concede
To subscribe, use the attached business reply
card or write to:
Journal of Community Action
P.O. Box 42120, Northwest Station
Washington, D.C. 20015
Community Journal of
Action
EDITOR: Nelson Rosenbaum
DEPUTY EDITOR: Richard Rich
MANAGING EDITOR: Milton Kotler
FROM THE EDITOR
2
BUSINESS MANAGER: Pamela Farrand
DESIGNER: Jeff Middour
EDITORIAL ADVISORY BOARD:
Bertram Beck, Cabell Brand, Delores
DaLomba, Pablo Eisenberg, Carl
CURRENTS
3
Johnson, Stanley Karson, Robert
Landman, Don Sykes
CONTRIBUTING EDITORS: Lawrence
Bailis, Richard Cole, Robert Friedman,
POLICY PERSPECTIVES
Edward Humberger, Franklin James, Neil
Mayer, John McKnight, Andy Mott,
The Role of Business in Community Service
5
Stewart Perry, Janice Perlman, Hans
C. William Verity, Jr.
Spiegel, Larry Susskind, Jon Van Til,
Don Voth, Robert Woodson, Robert
Voluntary Agencies and Community Partnerships
8
Zdenek
William Aramony
Building Community Partnerships: The Foundation Role
11
William S. White
State Government and Community Partnerships
15
Pierre S. du Pont IV
Journal of Community Action, Vol. 1,
Community Partnerships at Home and Abroad
17
No. 4, 1982. Published bimonthly by the
Center for Responsive Governance. Sub-
E. Morgan Williams
scription rates: individuals $18 for one year,
$32 for two years; institutions $24 for one
year, $42 for two years. Single copies: $3.
NOTES FROM THE FIELD
24
Editorial and business offices: c/o Center
for Responsive Governance, 1100 17th
Street, N.W., Washington, D.C. 20036.
Postmaster: Send address changes to Jour-
nal of Community Action, P.O. Box 42120,
RECENT LITERATURE
33
Northwest Station, Washington, D.C.
20015.
RESEARCH REPORTS
Local Government and Community Partnerships
41
Thomas J. Chmura
Partnerships in Community Service
45
Milton Kotler
© Center for Responsive Governance 1981
Partnerships for Economic Development: The UDAG Experience
52
Susan E. Clarke and Michael J. Rich
From the Editors
This issue of the Journal concentrates upon a single
laboration with business and government to deliver
theme: the role of community partnerships in meeting
services abroad and their example has much to teach
the collective needs of American society. We believe
domestic organizations interested in developing
that the partnership concept, carefully conceived and
partnerships.
delineated, makes an important contribution to public
In the Notes from the Field section, a number of in-
debate and charts a useful direction for the evolution
novative partnerships are analyzed in detail. Coopera-
of social policy. However, the goal of this issue is not to
tive efforts in Phoenix, Pittsburgh, and New York are
sell the concept, but rather to inform our readers about
discussed in the Note on Partnerships for Youth. The
the partnership approach so that they may evaluate it
focus of these efforts is generating increased oppor-
for themselves.
tunities for youth employment. The Note on Housing
The President's Task Force on Private Sector Initia-
Partnerships examines the operation of the New York
tives has been the leading proponent of the partnership
Neighborhood Housing Services and the Des Moines
approach over the last nine months. In the Policy Per-
Housing Council, two partnerships that are emerging
spectives section, we asked a number of Task Force
as major factors in housing construction and rehabili-
members to elaborate their conception of community
tation in their respective cities. Neighborhood revitali-
partnership from the perspective of their institutional
zation is the subject of the third Note from the Field.
affiliations. Bill Verity, Chairman of the Task Force,
Partnerships in Roanoke, VA and Kansas City, MO
and retired Chief Executive Officer of ARMCO Steel,
demonstrate how business, government, and the vol-
writes from the vantage point of corporate social re-
untary sector have joined together to attack neighbor-
sponsibility. He maintains that joining in partnership
hood decay.
with government and voluntary organizations repre-
In the research department of this issue, we present a
sents the best way for business to express its commit-
set of important articles on experiences with commu-
ment to community betterment. Bill Aramony, Presi-
nity partnerships. An article by Tom Chmura presents
dent of United Way of America, details a number of
research findings on the role of local government in
partnership efforts already underway which have been
community partnerships. Milton Kotler's piece analy-
initiated by the voluntary sector. He focuses particu-
zes the emergence of partnerships in community serv-
larly on partnerships in the area of human services. Bill
ice. Susan Clarke and Michael Rich provide findings
White, President of the Mott Foundation, writes of the
on types of partnerships operating in the urban devel-
catalytic role which foundations can play in the for-
opment field.
mation of community partnerships. His article identi-
In sum, we think this issue will help our readers to
fies two prime areas of partnership building: neighbor-
understand an important emerging trend in commu-
hood development and community services. Governor
nity action-a trend which builds upon historic tradi-
Pierre Du Pont of Delaware examines the role of state
tions of voluntarism and cooperation, but which also
government in forging partnerships. He describes a
charts new directions for the evolution of social policy
creative partnership in his own state-Jobs for Dela-
in the coming decades.
ware Graduates-and identifies the mechanisms which
In the spirit of partnership, this issue was planned in cooperation
state governments have established to encourage part-
with the President's Task Force on Private Sector Initiatives. We
nership formation. Finally, Morgan Williams, Presi-
would like to thank the members and the staff of the Task Force for
dent of the Cooperative League of the U.S.A., relates
their assistance. We also deeply appreciate the funds and in-kind
the experience of private voluntary organizations
assistance provided by the United Way of America, Gannett Foun-
working in the field of international development
dation, Equitable Life Assurance Society, and The Aetna Life and
Casulty Foundation, which enabled us to devote extra editorial
assistance. These agencies have long worked in col-
effort to this issue and to distribute it to a wider audience.
CURRENTS
Community Partnerships
Political fads wax and wane with benumbing regu-
A community partnership, simply defined, is a sus-
larity in American life. After a brief swirl in the news
tained collaborative effort of two or more institutions
media and a series of foundation-funded studies, most
in which each of the partners shares in the planning of
disappear without a trace. There is thus a distinct pos-
projects and programs designed to meet a collective
sibility that the current concept of "community part-
need and contributes a portion of the resources needed
nerships" may go the way of other political fashions
to implement those projects and programs. This defini-
that have long since departed. This would be a great
tion focuses attention on the key aspects of a partner-
loss. In contrast to other contemporary nostrums that
ship endeavor-collaborative planning and invest-
will deservedly vanish without a backward glance, the
ment of independent resources-and excludes efforts
idea of forming partnerships between government,
which are primarily based on discrete business rela-
business, voluntary organizations, and other private
tionships. For example, the "privatization" of city
entities to fulfill social needs deserves a prominent role
services to private corporations is often included in dis-
in the grammar of American politics. This is because
cussions of community partnerships. Yet, if the pri-
the idea is based upon a powerful historical premise:
vatization agreement merely entails the award of a per-
American government cannot fulfill the collective
formance contract to a vendor for a service designed
needs for which it has assumed responsibility solely
and paid for by the city, such a simple business rela-
through its own bureaucratic instrumentalities and tax-
tionship should not be confused with a community
ing powers. This premise is rejected by many who call
partnership. Only in cases where the city and the pri-
for the continued growth and bureaucratization of the
vate corporation jointly plan an activity and in which
state. It is also rejected by those who indulge in a
both the city and the corporation independently invest
romantic rejection of government responsibilities.
resources in implementing the activity, do privatiza-
As with most other political ideas that have any last-
tion agreements fall within the partnership framework.
ing value, one need not look very far to find precedents
Similarly, the cooperation of business and govern-
and precursors. Political platforms of both parties
ment in promoting downtown economic development
have made reference to the desirability of partnership
is often discussed within the partnership framework
efforts in various policy spheres over the last two dec-
without careful examination of the crucial differences
ades. Much of the growth in domestic social programs
in the nature of the public/private relationship from
that occurred in the 1960s and 1970s was carried out
city to city. In some cities, economic development proj-
through more-or-less structured partnerships between
ects involve meaningful collaborative planning be-
government and private, voluntary, non-profit organi-
tween government and business and a sharing of
zations that already provided a variety of social serv-
investment, risk, and benefit. These are true commu-
ices to society. Beginning in the late 1960s, successive
nity partnerships. In many other cases, however, so-
Administrations promoted partnerships in foreign aid
called partnerships involve little more than passive city
between the U.S. government and American private
acceptance of privately planned and privately financed
organizations operating abroad. During the Carter
proposals, with minor public interest planning adjust-
Administration of the late 1970s, a central theme of
ments. It does not contribute to the impact of the com-
urban policy was the need for public/private partner-
munity partnership concept in public policy debate to
ships between business and local government in the
indulge in such conceptual confusion.
economic development of central cities.
Perhaps the central issue in policy debate about
What is important about the current political cli-
community partnerships is the relative role which gov-
mate is that the idea of partnerships has finally
ernment, business, and voluntary organizations
achieved explicit recognition by a national administra-
should play in initiating and sustaining partnership
tion as a central policy theme. Yet, as explicated by the
endeavors. Some pronouncements from the Reagan
President's Task Force on Private Sector Initiatives,
Administration emphasizing private initiatives and
the theme is still vague and inchoate. Opportunistic
volunteerism leave relatively little role for government
advocates of particular policies are rushing to bring
in community partnerships, apparently envisioning
their proposals under the friendly umbrella of the com-
collaborative efforts of business and voluntary institu-
munity partnership concept without so much as a basic
tions as substitutes for government efforts to meet
understanding of the idea. If the concept is not to be
social needs. Other pronouncements place more em-
discarded after the termination of the Task Force in
phasis upon the role of state and local government. A
December, it is essential that the meaning of partner-
healthy dose of realism is needed to ground this debate
ship be clearly delineated and that certain realities of
on a more productive level.
organizing and operating partnerships derived from
American society is distinguished by its prominent
previous experience be acknowledged.
tradition of voluntary service to society by non-profit
COMMUNITY ACTION Vol. 1, No. 4, 1982
3
CURRENTS
organizations and by the contemporary emergence of
ternal efforts may also contribute to the common-
corporate social responsibility. These attributes must
wealth by reducing the collective demands made on
be appreciated, encouraged, and engaged in our collec-
government. But business cannot and should not be
tive efforts to meet social needs. However, when the
expected to strike off on its own with major initiatives
magnitude of the collective needs facing American
to fill social needs outside some publicly-established
society is realistically acknowledged, there is little
framework. The voluntary non-profit sector, while it
question that government usually must play the prime
may-have the desire and vision to fill a large portion of
role in organizing modes of action at the appropriate
collective needs, simply does not possess the resources
scale. As indicated by the Notes from the Field and
which would enable it to operate on its own. It can
other examples of community partnerships discussed
serve as a source of ideas for programs and projects
in this issue, government is almost always centrally in-
and as an agent of service delivery, but it must operate
volved in partnership endeavors, assuming the role not
within the agenda of government and/or business in
only because of its ability to contribute more resources
order to proceed effectively.
than other sectors, but also because of its fundamental
There appears to be little recognition in the current
responsibility for collective needs. Neither business
policy climate that a great deal of government pro-
nor the voluntary sector can arrogate to itself the legiti-
gramming and corporate social responsibility spend-
macy of government's mandate to act in the interests of
ing already operates through partnership arrange-
society as a whole. Nor can government, unlike busi-
ments in which non-profit voluntary organizations
ness, expediently absolve itself of responsibility for
serve as service delivery agents. The resources which
social needs when profits fall.
business invests in partnerships most frequently are
This is not to disparage the importance of independ-
dispensed as philanthropic gifts to voluntary non-
ent initiatives by business and voluntary organiza-
profit organizations. Government resources to meet
tions. As the Note from the Field on the Kansas City
domestic and international needs also flow heavily
Neighborhood Alliance shows, corporations and
through contracts and grants to private non-profit
neighborhood associations can collaborate in a part-
organizations. It would be a cruel irony of the current
nership framework to accomplish useful collective
policy debate over community partnerships if, in the
ends on a small scale without the formal participation
haste to reduce government involvement and reject the
of government. Yet even in this situation, the partners
heritage of the past, a valuable and productive network
operate in a context established by the public sector.
of existing partnerships is lost.
Private funds are used primarily to supplement public
In sum, the debate over the role and structure of
sector funds and resources. Indeed, it is clear from
community partnerships in meeting collective needs
many of the examples in this issue that business and
has only begun. There is no more important task facing
voluntary institutions feel most comfortable in part-
the President's Commission on Private Sector Initia-
nership arrangements when government sets the agen-
tives over the remaining months of its existence than to
da and establishes the framework of cooperation.
guide the debate in constructive directions that will
Business can move authoritatively on its own to
preserve and advance community partnerships in
meet the needs of its employees through better fringe
American life. This issue of the Journal of Community
benefits and employee assistance programs. These in-
Action is offered in pursuit of that objective.
POLICY PERSPECTIVES
The Role of Business
in Community Service
by
C. William Verity, Jr.
In 1919, the American Rolling Mill Company-a
individual and collective effort by private America
steel manufacturer in Middletown, Ohio-adopted the
toward solving the problems that beset American
first known "corporate responsibility" policy in
communities.
America:
To accomplish the first mission, the Task Force has
"Industry should not only keep its own house in
established a computerized Project Bank to catalog
order, but should support every sound constructive
hundreds of innovative private initiatives and public-
agency established in the community in an effort to
private partnerships at work in community service
make civic conditions respond to the highest needs of
throughout America. It is our hope that this Project
its citizens."
Bank may become a clearinghouse through which
More than six decades later, and in a rich variety of
local and state governments and private groups can
adaptations, this basic policy of corporate involve-
learn from the successful-and even the not so success-
ment in community service has blossomed into a multi-
ful-experiences of others. We also hope that the
billion dollar annual commitment by American busi-
American news media will tell the story of private initi-
ness to improve the quality of community life in the
ative to the public at large, promoting both the recog-
United States.
nition these efforts deserve and the replication they
Almost $3 billion was contributed by American
might inspire.
companies and company foundations to community
For example, KAKE-TV in Wichita, Kansas, re-
service projects in 1980. Company employees donated
cently broadcast a ten-part series on what the private
another $3 billion worth of time and talent to commu-
sector is doing-and what more it might do-in serv-
nity assistance programs.
ice to Wichita.
Together with the nearly $70 billion in funds and
Among these services:
services contributed in 1980 by the rest of "private
The Wichita Bar Association, following the example
America"-religious and civic groups, labor unions,
of the New Hampshire Bar Association, has estab-
philanthropies, educational institutions, professional
lished a high-quality, low-cost legal aid program
and trade associations, neighborhood organizations,
(many services are free) for those who need help but
and others-this corporate commitment helps forge an
can't afford a lawyer.
important private alliance for progress in our country.
Wichita grocery stores, like those in Phoenix, Kan-
sas City, and other cities, are regularly supplying
surplus food to the community food bank run by a
The President's Task Force
local church group, and a local manufacturing com-
pany has donated 10,000 square feet of warehouse
Remarkable work is being done through private
space to store the supplies.
initiative to feed the hungry, heal the sick, shelter the
Wichita business concerns, adapting programs un-
homeless, employ the "unemployable," restore decay-
derway in Indianapolis, Dallas, Oakland, and
ing neighborhoods, enhance public safety, improve
Corning, N.Y., are forming partnerships with local
education, support the arts, and perform a multitude
schools to ensure that the education process pre-
of other services at the community level.
pares students for success in the working world.
The President's Task Force on Private Sector Initia-
Practical training in homebuilding, accounting and
tives seeks to celebrate these contributions which pri-
other workfields gives students the kind of experi-
vate America is making to improve the quality of our
ence local employers are looking for.
national life. It also seeks to encourage a still greater
Thousands of these success stories throughout the
nation testify that private initiative can be an impor-
C. William Verity, Jr. is Chairman of the President's Task Force on
tant supplement-even an alternative, in some cases-
Private Sector Initiatives and former CEO of Armco Steel.
to government action in community enterprise.
COMMUNITY ACTION Vol. 1, No. 4, 1982
5
POLICY PERSPECTIVES
The Corporate Role
profit agencies, management and financial planning
techniques for neighborhood service organizations
Many, though far from all, of these success stories
and many other services.
trace their origins to the executive offices and the
The Task Force is further requesting that businesses
factory floors of American industry. The inspiration
reassess the pattern and direction of past contributions
for these initiatives is as varied as the people and com-
and other public service involvement, to insure that
panies involved. Some act out of "enlightened self-
their community's most urgent social and economic
interest," for the benefits to be gained directly or in-
needs-not merely its most honored traditions-are
directly by the company and its employees. Other busi-
being properly served.
nesses want to project a certain "image" or corporate
And finally, the Task Force is urging businesses to
"personality" with their community involvement. Still
commit themselves actively to the creation of commu-
others respond to peer pressure from rival companies.
nity partnerships which will bring both public and
Some commit their resources automatically to com-
private resources to bear on the challenges of modern
munity causes which grew up with the company.
America.
Others may simply be looking for a tax write-off.
Whatever the reason, the role of business in commu-
Business and Community Partnerships
nity service is substantial and growing. A recent study
by the Council on Foundations showed that of 219
Local chapters of the U.S. Chamber of Commerce
companies surveyed, 94 percent made cash contribu-
the National Alliance of Business, the National Associ-
tions to community causes in 1981. Yet the average
ation of Manufacturers, and other organizations are
yearly contribution by business in general has re-
already working to establish such partnerships
mained at little more than one percent of pre-tax profit
throughout the nation.
-despite the fact that federal tax law has for years
This forging of partnerships-among leaders of
encouraged a 5 percent contribution and, with the 1981
major private sector constituencies and leaders of gov.
tax bill, raised the ante to 10 percent.
ernment-lies at the heart of the Task Force's work
Clearly the opportunity exists for business to do
The partnership concept offers American business a
more. Clearly the need exists, as well. And the same
promising new approach to productive involvement in
Council on Foundations study indicates that the future
may well see this opportunity grasped-and commu-
nity needs met-more fully by the business world.
Council president James A. Joseph states that
Corporations can do more for a
"about six in ten of the companies surveyed plan sig-
community than just writing checks.
nificant increases in their philanthropic contributions
over the next few years, provided of course that they do
not confront any significant decline in profit beyond
community service. In New York City, a consortium o
those of the current recession."
businesses, non-profit groups and neighborhood
The President's Task Force on Private Sector Initia-
organizations created 10,000 summer youth jobs las
tives has recommended that corporations try to double
year and aims for 15,000 this year. The New York City
their charitable contributions over the next four years
Partnership has also provided the city governmen
-to about $6 billion-raising the average level of such
with loaned executives to improve subway transporta
contributions to at least two percent of pre-tax profit.
tion operations and crime control. A 30,000-uni
Nearly a dozen cities across the country already
housing project is also being financed by the
boast "two percent clubs" or "five percent clubs," aver-
Partnership.
aging fifty business members each, which contribute
In Baltimore, the Greater Baltimore Committee-
far more than the national norm. The Task Force be-
another private-public partnership-was the force be
lieves the two-percent contribution goal is reasonable,
hind Harborplace, a spectacular development of shop
practical and achievable.
and scenery that has made a fine old seaport city a
Recognizing that corporations can do more for a
major new tourist attraction as well. The Baltimor
community than just writing checks, the Task Force
partnership is now working on an ambitious neighbor
has also recommended that businesses double their
hood revitalization and housing construction
voluntary and "in-kind" service contributions to com-
program.
munity action over the next four years. This would
This partnership concept is being advanced nation
raise the level of these in-kind contributions to a $6 bil-
ally just as more and more executives are seeking to
lion annual level, providing manpower training, dona-
insure, in the Business Roundtable's words, that s
tions of land for community gardens and parks, space
company's "business activities make social sense just a
for day-care centers, computer equipment for non-
its social activities make business sense."
6
COMMUNITY ACTION Vol. 1, No. 4, 1982
POLICY PERSPECTIVES
A recent U.S. Chamber of Commerce resolution put
Amway Corporation has underwritten an European
it this way: "As the United States enters a new era of
tour by the National Symphony Orchestra, as part of
turning us to greater self-reliance and less dependence
Amway's strategy for penetrating the European
on government, American business has a great oppor-
market.
tunity-and challenge-to build upon that tradition
And dollars from the American Express Company
and to contribute its expertise and other resources to
marketing budget are being earmarked-a dollar at a
help the truly needy in our society, as well as to further
time-to specific local charities each time the Ameri-
the arts and humanities."
can Express Card is used in certain metropolitan areas.
The Business Roundtable's Policy Committee
A five-city test was so successful that the program is
recently called upon the 200 chief executive officers of
being expanded to include cities throughout the
its member companies (some of the largest in the
country.
nation) to expand personal and company efforts in
The Kansas Gas and Electric Company, working
community service, including the encouragement of
with the Red Cross, has established a program allow-
more voluntarism by employees and the strengthening
ing customers to add a dollar to their monthly bills to
of community relations budgets.
help defray energy costs for the elderly and to make
"The spotlight has been turned on business with a
emergency energy improvements and repairs.
new intensity," according to Andrew Sigler, chairman
of the Roundtable's corporate responsibility task force
and chairman of Champion International (and a mem-
Conclusion
ber of the President's Task Force on Private Sector
Initiatives). "Activities of member companies vary
The programs discussed above, and many others
greatly, and many more are already involved in a wide
like them, demonstrate that business involvement in
array of public service activities," Mr. Sigler said.
community service has far more than sentimental
"Most of us will agree, however, that a vigorous new
value. It reflects good business judgment, directly and
effort is required at the community level."
indirectly, by improving the climate of enterprise in the
This vigorous new effort is already taking root.
American city.
Many companies are beginning to take an active inter-
est in understanding and establishing real community
partnerships rather than simply writing an annual
The community is a company's
check to a favorite cause. Others have decided it is time
to take some of the same risks in community service
most important supplier.
activities that are routinely taken in business activities,
reaching out to elements of the community from which
the company may be most distant. For example, a
In a way, the community is a company's most impor-
recent study commissioned by Michigan Bell Tele-
tant supplier, providing the people, the land and the
phone to determine Detroit's most critical needs led
basic services a business needs to operate. In return,
Michigan Bell to commit $100,000 to a food distribu-
the business offers jobs, goods, services and tax reve-
tion program for the city's hungry. In another instance,
nues to the community.
responding to a growing financial problem facing Chi-
This symbiotic relationship has become more and
cago's non-profit service community, the Amoco
more apparent in recent years, and the community
Foundation has sponsored a $4.7 million program to
partnership movement is a product of that growing
help reduce non-profit organizations' energy expenses
recognition.
by "retrofitting" their office buildings to make them
It is a way for business to court a major supplier
more energy-efficient. The savings over ten years is
effectively, and it is the means by which the community
estimated at $12 million, which can now go directly to
at large can better understand the serious challenges
service delivery.
facing American business today.
And while humanitarian motives serve as powerful
Buinesses can't survive for long without profits, but
inspiration for companies in community service, the
neither can they survive for long if all around them is
profit motive has a role to play, too.
crumbling at their feet. Ignoring the wider world in
In Minneapolis, for example, Control Data Corpo-
which we do business not only brings us profit without
ration opened a plant in an abandoned, inner-city
honor, but will in the fullness of time bring us no profit
bowling alley. The plant provides binding and collat-
at all.
ing services for the company. The workers are pri-
American business understands that better every
marily disabled persons and mothers of young chil-
year. Investing its resources in community partner-
dren. The hours at the plant are flexible, the work is
ships can help translate that understanding into effec-
valuable, and the profits are considerable.
tive, positive action for many years to come.
COMMUNITY ACTION Vol. 1, No. 4, 1982
7
POLICY PERSPECTIVES
Voluntary Agencies
and Community Partnerships
by
William Aramony
This summer, more than 700 Kansas City teens didn't
tions, and other voluntary agencies to help serve peo-
have to spend their days on the streets. Instead, they
ple with voluntary dollars and volunteer time.
worked in hospitals, day care centers, and offices, and
The focus on the "New Federalism" is shifting deci-
they will be ready to go job-hunting in the fall. All this
sions about services and programs from Washington,
happened thanks to a special fund created by local
D.C., to state legislatures and city halls around the
businesses, foundations and voluntary agencies.
country. At the same time, federal support of many
Elderly and handicapped people in Seattle, Wash-
social service programs has been drastically reduced.
ington were about to lose hot meals and home care to
As responsibility and decision-making shift to the
budget cuts. But "Project Transition" stepped in with a
local level, United Ways are increasingly called upon
special fund of $1.5 million to help carry on crucial
to unify local efforts. United Ways have nearly 100
services while state and county governments reorgan-
years' experience in community planning, partnership-
ize the distribution of federal block grants. "Project
building, and fund raising. Interdependence and coop-
Transition" was developed by a coalition of neighbor-
eration form the core of United Way's system. Volun-
hood groups, voluntary agencies, foundations, and
teers from every segment of a community gather to
businesses.
determine local needs, set local priorities, and distrib-
In Boston last summer, 37,000 youngsters enjoyed
ute voluntary dollars to help meet those needs. United
pools and basketball games through the auspices of a
Way volunteers hav faced those tough decisions every
group of voluntary agencies, foundations, and city
year, even when federal budget cuts did not loom on
parents. The Boston coalition formed to find financial
the horizon.
and volunteer support for the summer recreation pro-
gram that the city of Boston had to drop from its
Partnerships In Action
budget.
The above are only a few of the examples of how
It would be impossible to describe all of the many
people are helping each other through community
partnerships that United Ways across the country have
partnerships. In response to the country's economic
helped form. The following are descriptions of just a
and political realities, voluntary organizations have in-
few innovative efforts.
creased their activities as catalysts for new cooperative
partnership arrangements. Indeed, the essential char-
Allocating Human Services
acteristics of voluntary organizations-people of di-
One group of partnerships is working on better allo-
verse backgrounds organizing to solve common prob-
cation of available human service resources. Early in
lems, improve their communities, or just help each
1981, for example, United Way of Southeastern Penn-
other-exemplify the spirit of community partnership.
sylvania committed itself to a "vigorous community
This spirit of cooperation-people caring for each
leadership role in promoting a careful reassessment of
other in an organized fashion-lives today in commu-
our local human service system." At United Way's urg-
nities all over the country. In 2,100 of these communi-
ing, a group of key representatives of city and state
ties, United Way organizations work side by side with
government, religious organizations, foundations, and
their partners in voluntarism to serve local needs and
labor groups, met and formed the Consortium for
strengthen community ties. United Ways have been
Human Services. The Consortium's goals were: to be a
actively building community partnerships between
forum for the exchange of information and observa-
business, labor, government, neighborhood organiza-
tions on problems confronting the human service sys-
tem; to identify needs and priorities created by reduc-
William Aramony is President of the United Way of America.
tions in tax-dollar support for that system; to clarify
8
COMMUNITY ACTION Vol. 1, No. 4, 1982
POLICY PERSPECTIVES
the respective roles of the public and private sectors; to
Coordinating Human Services
help define and realign resources available for human
services; and to implement mutually acceptable
In San Diego County, California, United Way is
courses of action on a cooperative basis.
working with the city and the California Congressional
The Consortium is now working with Philadelphia's
delegation to develop a strong public-private partner-
Community Services Planning Council to analyze
ship. San Diego United Way has helped pioneer a com-
federal health and human services funding to the city,
puterized data base on human services. The data base
and to study the effects of federal budgetary reduc-
is patterned after the United Way of America Services
tions. As it completes its work, the Consortium will
Identification System (UWASIS). UWASIS was de-
also develop model systems for more effective opera-
veloped in 1972 as a service classification system aimed
tion of Pennsylvania's Social Services Block Grant
at simplifying accounting methods for agencies.
Program.
Today, many communities use the system to define the
A similar coalition is at work in Louisiana. United
functions of service agencies and clarify community
Way of the Greater New Orleans Area has helped bring
needs. The information in the San Diego computer
together several organizations to determine local
classifies state, city, and federal programs, as well as
service priorities in light of the federal cuts. At the state
private and nonprofit services. The California group
level, United Way of Louisiana has joined an alliance
intends to encourage coordination among agencies
to provide the state with information about human
offering identical services.
service needs. The state can then be expected to imple-
In Newark, New Jersey, the Essex Partnership is
ment its Block Grant program more effectively.
seeking to reorganize the area's human service system,
coordinate services among agencies, and promote effi-
Supplementing Human Services
cient agency management.
Members of the New Jersey group include United
A different example of a creative joint approach is
Way of Essex and West Hudson, the Greater Essex
found in Kansas City. Heart of America United Way
Community Foundation, the Essex County Depart-
has joined a coalition with the city government, local
ment of Citizen Services, the New Jersey Department
businesses, and foundations to lessen the effects of
of Human Services, the Association for the Children of
federal budget reductions. When it became a coalition
New Jersey, the Community Affairs Group of the
member last winter, United Way promptly contributed
Greater Newark Chamber of Commerce, and the
$700,000 from its emergency assistance fund; local
Newark Coalition for Neighborhoods. This group il-
businesses and foundations pledged a matching
lustrates the variety among private and voluntary
amount, as did the city government.
organizations that are banding together to shape com-
munity decisions.
The Essex Partnership plans to develop a single, in-
Voluntary organizations have increased
clusive information system on local social and health
their activities as catalysts for new
services to replace three different classification systems
now in use. The Partnership's computer has already
cooperative partnership arrangements.
compiled information on more than 600 agencies.
The Partnership will also help coordinate planning
among its members. It hopes to accomplish this task by
The coalition has agreed to divide the $2.1 million
surveying local residents regarding the services they
fund between unemployment assistance and emer-
need and want. This is real community planning—
gency services, currently the community's most critical
going to the people, not theorizing and trying to
needs. United Way, through a special allocations com-
impose something that won't work.
mittee, is distributing $1,050,000 for emergency serv-
ices in day care, programs for the elderly, needs of
smaller agencies and other areas.
The city is administering the other half of the fund
Resources for Partnership
under the supervision of the Board of City Trusts. That
portion of the fund is providing summer employment
New partnerships need more volunteers. Americans
and training for more than 700 city youths, as well as
are responding with the traditional enthusiasm and
some longer-term employment for adults. Besides
energy that have made voluntarism such a great force
receiving welcome paychecks, youths and adults are
in this country. The results of a Gallup poll commis-
gaining on-the-job training that will help them in
sioned last October by Independent Sector bear testi-
future job-hunting. Many of the youths are working as
mony to this fact. The poll shows that in 1981, close to
day care attendants, hospital aides, and maintenance
84 million Americans volunteered an estimated 8.4 bil-
and clerical workers.
lion hours. Their time was worth about $64.5 billion
COMMUNITY ACTION Vol. 1, No. 4. 1982
9
POLICY PERSPECTIVES
dollars. By joining and encouraging these new partner-
new organizations get started, or offer new services.
ships, United Ways continue striving toward their mis-
Thus, United Ways acquire the flexibility not only to
sion: to increase the organized capacity of people to
meet emergency needs, but to help form new commu-
care for each other.
nity partnerships.
Economics also demand better management of
In southeastern New England, a specially created
existing resources. That demand is as applicable to the
emergency fund has helped day care centers in Rhode
voluntary nonprofit sector as it is to the profit-making
Island maintain services while the centers search for
businesses. United Way of America is attempting to
alternatives to government support.
meet the need for better management through its Vol-
United Way of Southeastern New England is con-
unteer Development Program. Begun in 1978 with the
tributing more than $54,000 to assist the day care cen-
help of the W. K. Kellogg Foundation, the program
ters, and has pledged $150,000 to help other agencies
trains the volunteer leaders of United Ways and agen-
survive while they develop contingency funding or
cies. Instruction focuses on fiscal and personnel man-
service plans. To this end, United Way is training
agement, long-range planning, and fund raising. By
agency leaders in planning and fund raising.
the end of this year, United Way of America will have
15 regional training centers, and 20 by 1983.
Conclusions
An important new component of the Volunteer De-
velopment program is the Hispanic Volunteer Devel-
United Way and other voluntary organizations rec-
opment Program. It consists of workshops offered in
ognize the fact that certain entitlement programs must
continue to be supported through tax dollars. But
some important services will no longer have govern-
ment funding. The voluntary sector alone can never
The voluntary sector alone can never
supplant the services that have lost federal support.
supplant the services that have lost
Nor would it want to. Not at the expense of creating
closer ties between people. Not at the loss of such an
federal support.
excellent opportunity to solve common problems to-
gether. This renewed communication between volun-
teer agencies and the private sector could not have
come at a better time. Organizations in the voluntary
areas with large Hispanic populations such as Chi-
sector are each different in scope and goals, but they
cago, Miami, Los Angeles, Dallas/Fort Worth, and
share in their mission: to help people make better lives
San Francisco/Santa Clara. This program will help
for themselves and their children.
Hispanic agencies develop private, nongovernmental
But that's the dream of every American parent,
sources of funding. This skill is especially important
whether they are factory workers or vice presidents for
now, since many of those agencies still rely primarily
production; whether they are doctors or lawyers or
on government support. Another program objective is
bricklayers. The scope of voluntary activity is only
to encourage more minority volunteers to join the vol-
reined by our imagination. When we join together the
untary sector's decision-makers.
resources of the government, commercial, and volun-
United Ways are also helping their communities use
tary sectors, our potential for accomplishment is un-
limited resources effectively through "venture fund-
limited. Voluntary organizations like United Way are
ing" projects. Many United Ways set aside a percent-
committed now more than ever to meet the uncertain
age of donations in special emergency trusts. This
future with hope, prosperity, and well-being for mil-
money can then be used to support a particularly valu-
lions of Americans who are counting on our enduring
able program threatened by lack of funds, or to help
tradition of mutual interdependence.
10 COMMUNITY ACTION Vol. 1. No. 4, 1982
POLICY PERSPECTIVES
Building Community Partnerships:
The Foundation Role
by
William S. White
It seems to me that every person always is in a
ernment, business, private philanthropy, and volun-
kind of an informal partnership with his commu-
tary organizations into an effective problem-solving
nity. His own success is dependent on a large de-
organism. While public-private partnerships are not
gree on that community, and the community,
new-many communities can cite examples of collab-
after all, is the sum total of the individuals who
oration dating back decades-they take on new mean-
make it up. The institutions of a community, in
ings today in light of public budget cuts, and the
turn, are the means by which those individuals
current reassessment of the role of government. Sim-
express their faith, their ideals, and their concern
ply put, many of the problems confronting our cities
for their fellow man.-Charles Stewart Mott
and communities cannot be resolved by a single insti-
tution or sector working in isolation.
Charles Stewart Mott penned these words in 1963, a
A need now exists for a more concerted, systematic
year when he was well into a philanthropic career that
development of public-private partnerships in a vari-
spanned four decades. The automobile industrialist's
ety of areas.
concept of partnership was one that guided him and
the activities of his private foundation from its earliest
years. Not only are partnership and community inte-
gral concepts in the work of the Mott Foundation to-
The Foundation Role
day, but the linkage of the two is fast gaining ground
generally as a new approach to our society's ills.
Our concept of "community partnership," however,
Foundations have a role to play in the partnership
is far more subtle than it was only a generation or two
process. It is obvious that they can provide resources in
ago. We now realize that many of the problems con-
the form of hard cash. But perhaps the greatest contri-
fronting our communities are too complex, too diffi-
bution foundations today can make in the partnership
cult, to be addressed on an individual basis. Instead,
effort is taking on the role of an enabler. More explic-
citizens at the community level are doing what Ameri-
itly, they can serve as a "mediating structure", linking
cans have traditionally done when faced with problems
parties in the partnerships and integrating the partici-
beyond their individual capacities-they have pooled
pants' perspectives and roles into an effective force.
their talents and efforts. A century and a half ago
Any cooperative venture has an element of risk, and
the foundation can act as a dreamer, convener, medi-
Alexis de Tocqueville pointed out the tendency of
Americans to form associations "to give fetes, found
ator, and facilitator to help offset that risk. Founda-
seminaries, build churches, distribute books, and send
tions can nudge other sectors (government, private,
missionaries to the Antipodes." If he were to return
and voluntary) to contribute in a meaningful way, fos-
today, he would undoubtedly cite the varied and imag-
tering innovative approaches and potential solutions.
inative ways Americans are forming new organiza-
This is a particularly appropriate role in the case of
tions, to deal with contemporary social problems.
community partnerships. Every private foundation
More specifically, in many town and cities, we're
has a home base, whether it is New York, Chicago,
seeing local voluntary organizations working hand-in-
Louisville or Flint, and a community with which to get
glove with government and the private sector. On the
involved. There are also more than 200 community
foundations with close ties to their hometowns.
national level, moreover, President Ronald Reagan is
advocating such partnerships through his Task Force
It is important for foundations to realize that part-
on Private Sector Initiatives in an effort to weld gov-
nership building involves costs and that the potential
for failure can be high. The process often gobbles up
time and energy in huge quantities. Because of this, it
William S. White is President of the Charles Stewart Mott
may be easy for the members to become frustrated and
Foundation in Flint, MI.
discouraged. In its role as a mediator, a foundation
COMMUNITY ACTION Vol. 1, No. 4, 1982 11
POLICY PERSPECTIVES
must be ready and willing to nurture the relationship,
munity, there are countless opportunities and a wide
not unlike a parent raising a child. This process not
range of issues and concerns on which to focus founda-
only takes patience and a high level of energy, it also re-
tion resources and energies. Two broad areas of poten-
quires superb communications skills and the ability to
tial partnership which many experts identify as prime
truly listen to the dialogue between members. While
prospects, and in which foundations have already
not every foundation has personnel with these highly
played significant roles, are neighborhood develop-
developed skills, many do have the financial resources
ment and community services. Each area encompasses
to bring professionals that do into the process.
interlocking economic, social and political factors that
Despite good intentions, true commitment and hard
are neither exclusively private nor totally public. Suc-
work, partnerships do, on occasion, fail. Regardless of
cess in either area requires cooperation from all sides
the outcome and the associated risks, the rewards for
of the fence.
those that do succeed are great. Strong partnerships
are a true form of democracy and accomplish goals
and tasks that otherwise would never be undertaken.
In the case of our cities, particularly those in the north-
Two broad areas of potential
east and midwest, it seems clear that those that stand
partnerships in which foundations have
the greatest chance for surviving the current economic
already played significant roles are
maelstrom will be those with strong partnerships.
neighborhood development and
Why the Nurturing Role?
community services.
There are a number of reasons why foundations can
be effective in the mediating, nurturing role.
First, their agendas are generally the least political
Neighborhood Development
and complicated of the parties involved. Because of
this, they can provide leadership in initiating, develop-
It seems that everywhere one turns these days, there
ing and sustaining community partnerships. Since they
is talk about the importance of America's neighbor-
are local, they have an element of familiarity. An out-
hoods. From the nation's capitol to the local city hall,
growth of that familiarity-trust-has been men-
the pervasive feeling is that neighborhoods are the
tioned before as a key factor in the partnership build-
building blocks of the city, and that vital neighbor-
ing process.
hoods are the "last, best hope" of the nation's troubled
Second, they can facilitate communications and
cities.
information exchange between the parties involved.
Within the last few years, however, federal agencies
Community groups, particularly those in their infan-
supporting neighborhood development and revitaliza-
cies, are often quite unsophisticated in working with
tion such as the Community Services Administration
business or governmental entities. But, at the same
and the Economic Development Administration have
time, local residents are a key link in the community
been defunded. Therefore, private initiative and sup-
partnership process. Thus, their energy, interest in,
port in this area becomes increasingly important.
and dedication to the neighborhood and the commu-
Foundation involvement in neighborhoods is not
nity are major factors in any partnership venture and
new. The Cleveland Foundation and the Chicago
must be nourished and protected, but yet given the op-
Community Trust have long worked in such neighbor-
portunity to develop strength and independence. On
hood policy areas as housing; criminal justice and cor-
the other side, corporations and foundations wanting
rections; and municipal recreation and park facilities.
to support the work of community organizations often
The 1950's witnessed a massive entry by the Ford
hesitate to contact or meet with the neighborhood
Foundation into the field. Ford continues to be among
group because they are unsure of how to do so.
the most active, contributing over $29.5 million to
Third, foundations have the flexibility to provide in-
groups such as the Bedford-Stuyvesant Restoration
fusions of dollars into a project at crucial junctures. As
Corporation and the Watts Labor Community Action
a source of unrestricted capital, foundations have the
Committee in 1980. Other foundations granting over
ability to react to needs much faster than many other
$120,000 for neighborhood development in their last
funders, and with minimal red tape. Foundations can
annual reports include the Rockefeller Brothers Fund,
also provide non-monetary resources, not the least of
the Heinz Endowment, the Joyce Foundation, the San
which is staff technical assistance.
Francisco Foundation, the Houston Endowment and
Once a foundation decides to become involved in its
the MacArthur Foundation. The Mellon, Hillman and
community through the partnership process, the first
Pittsburgh Foundations, as well as others are also
question to be addressed is "how?". In any given com-
heavily involved.
12 COMMUNITY ACTION Vol. 1, No. 4, 1982
POLICY PERSPECTIVES
Today, the needs of any given neighborhood are as
In St. Paul, the McKnight Foundation has invested
diverse as the communities in which they are located. A
$9 million in the Lowertown Redevelopment Project,
foundation must first assess the particular situation to
an urban revitalization effort that includes the renova-
determine the needs and what role it might take in a
tion of several historic properties and adaptation of
partnership process. It is necessary to talk with busi-
old warehouses to new uses. McKnight has also in-
nesses, local neighborhood leaders, and civic organiza-
vested $10 million in the Minneapolis-St. Paul Family
tions to make these determinations and to put them
Housing Fund. Half the amount will be lent to city
into the perspective of the entire community.
residents for up to 20 percent of the purchase price of a
A number of specific issues within broad categories
home. Both of these projects involve the coordination
are likely to emerge. These will probably include:
of large-scale public, private, and voluntary efforts in
Preserving and enhancing the existing assets of
partnership with the foundation.
neighborhoods.
Promoting new housing and commercial and indus-
trial development compatible with the existing
Community Services
assets and character of neighborhoods.
Facilitating and supporting self-help efforts.
The quality of life for residents in a community is
In the late 1970s, the Mott Foundation became in-
determined by a host of factors-the school system,
volved in a unique partnership project which involved
the cultural and recreation opportunities, and even the
all of the above concepts-the construction of the
weather. But one of the most important contributing
Hyatt Regency Hotel and Convention Center in Flint,
factors is the quality and quantity of basic community
the profits from which support neighborhood im-
services the local government and others offer. Often
provement and self-help.
these services are taken for granted; that is, until gar-
Mott's role in the undertaking was multi-faceted. It
directly provided $6.1 million toward the $38 million
bage is collected once every two weeks instead of
project. It also brought together a variety of other
weekly, or the police patrols of the neighborhood or
central business district are reduced.
funding sources, created a financing plan which the
U.S. Department of Housing and Urban Development
Maintaining decent community services has become
a real burden for many municipalities. With the cur-
rent shifting of services provided for federal programs
back to the local community, additional stresses are
Neighborhoods are the last, best hope
added to the process of planning for, allocating and
of the nation's troubled cities.
managing these services. While this process has always
been one that necessitates a working relationship be-
tween the public and the private sector, many believe,
later cited as a model, and insured that Flint neighbor-
and probably accurately so, that an increasing burden
hoods would benefit directly from the central business
may well be added to the private half of that alliance.
district revitalization.
There is no doubt that municipalities are increasingly
Key to the neighborhood participation and resulting
unable to deal with growing demands for services.
benefits was the $6.1 million grant, which was given to
Foundations can play a nurturing and mediating
the Flint Neighborhood Improvement and Preserva-
role in this area. For instance, they can aid commu-
tion Project (Flint NIPP) to purchase a second mort-
nities in developing a process for addressing problems
gage on the hotel property. Income from that mort-
cooperatively, whether the problem involves devising
gage finances NIPP's work providing technical assis-
alternative methods of providing police protection or
tance for home repair and rehabilitation to neighbor-
planning a new regional park system. This agenda set-
hood groups.
ting assistance can take the form of dollars to help fund
Other funding participation included a $6.5 million
the planning process and experts to provide technical
Urban Development Action Grant from HUD, a $1
assistance. The dollars can also be used to provide key
million grant from the Economic Development Ad-
leaders the opportunity to visit other cities and-com-
ministration and $6 million from the private sector.
munities that have successfully addressed similar prob-
Not only did the financing have to be coordinated, but
lems through partnership arrangements.
so did the participation and interests of the project's
An excellent example of this visitation approach is
funders and partners. The Mott Foundation took this
"Learning from Europe," a project of Partners for
role upon itself in its home community.
Livable Places, funded by the German-Marshall Fund
Another example of foundation participation in
of the United States. The purpose of the project is to
local neighborhood development partnerships is the
facilitate the transfer of innovation, imagination and
"program related investment" strategy of the
leadership from Europe on ways our communities can
McKnight Foundation.
be made better places in which to live. According to a
COMMUNITY ACTION Vol. 1, No. 4. 1982 13
POLICY PERSPECTIVES
study commissioned by the National League of Cities
Staffing for the task force took the form of 89 man-
in 1977, "attractiveness" is a key community resource
agerial level staff people loaned by the business com-
in sustaining a strong economic base, as it has a direct
munity for up to 12 weeks each. In many cases, these
impact upon retaining a stable workforce and in creat-
individuals worked close to full-time on the task force.
ing a desirable location for business. Thus, residential
Six months later, 650 recommendations and imple-
traffic restraints, urban waterfront development, and
mentation strategies were submitted, 88 percent of
animation of public places are far more than nice
which could be implemented by executive order. It was
ideas; they can be considered survival tools. In Europe,
estimated that 80 percent of these recommendations
these urban options have been tried and tested through
were implemented, thus saving the city millions of dol-
cooperation of the public, private, and voluntary sec-
lars. Others are under consideration.
tors. American cities have an opportunity to profit
from the successes and failures of urban initiatives in
Conclusion
Europe and thus forgo some costly mistakes.
Although the project just began in March of this
year, six cities have already been involved: Hartford,
As the Committee for Economic Development
Richmond, Indianapolis, Pittsburgh, Memphis, and
(CED) pointed out in its book, Public-Private Partner-
Chattanooga. Partners for Livable Places will con-
ship: An Opportunity for Urban Communities, "In
tinue working with these communities, providing tech-
fashioning local partnerships there is no substitute for
nical assistance and acting as facilitators and catalysts.
the judgment and leadership of individuals who live in
While a young project, it holds every promise of being
a community, are knowledgeable about its people and
a very successful partnership venture.
institutions, can care about its future
The evidence
of recent decades demonstrates that communities
Foundations can also support evaluations that pro-
vide information about existing and needed commu-
nity services, and then find ways to link them together.
And certainly foundations are often in the position of
providing an outside business-related discipline and
financial review that is not always available in the
Building a partnership requires hard
public sector.
work, institutional maturity, and
Two years ago, Cleveland, Ohio, was the site for
sophisticated bargaining skills.
such a joint venture. At that time a new mayor had
been elected and was seeking the input and expertise of
the business, financial and foundation communities in
ways to assist his city weather the economic and man-
agement problems it was having. This appeal resulted
in the Operation Improvement Task Force.
which actively mobilize their public and private re
The task force, financed with $850,000 ($600,000
sources can deal effectively with difficult problems and
from the business community, $150,000 from the
create new opportunities." Building a partnership re
Cleveland Foundation and $100,000 from the Gund
quires hard work, institutional maturity, and sophisti
Foundation) faced a three-fold charge:
cated bargaining skills. It is a learning process b
identification of immediate ways to improve effi-
which the participants must grow to trust each other
ciency in city government through administrative
plan together, and work cooperatively. The reward fo
orders;
this kind of cooperation betwen the various sectors 0
suggest operational and managerial reorganizations
our society is communities which are better able to
to improve both short-term and long-term efficiency;
meet their needs. Foundations have a significant role
pinpoint specific areas where further in-depth analy-
to play in nurturing and sustaining such partnership
sis and studies were needed.
over the coming years.
14 COMMUNITY ACTION Vol. I, No. 4, 1982
POLICY PERSPECTIVES
State Government
and
Community Partnerships
by
Pierre S. du Pont IV
The President's Task Force on Private Sector Initia-
the responsibility for making it work, just as they
tives has been formed to encourage the private sector
shared the credit for launching this project four years
and voluntary organizations to become actively in-
ago.
volved in areas once considered the sole province of
Local businesses are enthused about the program,
government: employment, education, housing for the
because JDG gives them dependable workers for hard
poor, nutrition, and numerous other community
to fill, entry level positions.
services.
In September, students are assigned to JDG career
The Task Force operates from the premise that gov-
counselors who are also job placement experts. As the
ernment and the private sector should take every
school year progresses, the job specialists help the stu-
opportunity to join forces in the delivery of services.
dents line up interviews with prospective employers.
While philanthropic institutions, religious charities,
JDG helps youngsters to make a smooth transition
and volunteer civic organizations already perform
from school to employment by giving them the skills
extraordinary deeds of community service at both the
and the motivation they need. High school seniors en-
local and national levels, many of these initiatives can
rolled in JDG learn the "little things" no one ever
be augmented and duplicated through partnerships
thought to teach them-how to dress for a job inter-
that blend the resources of the public and private
view, how to write a resume, what an employer expects
sectors.
from a productive employee.
Eighty-six percent of JDG's students have been
placed in full-time jobs within three months of their
The Delaware Experience
graduation. Others are moving up the educational lad-
der in post-secondary vocational schools. Last year,
A successful state-level partnership that meshes
alumni of the program earned an average of $4. 12 an
public and private resources is illustrated by an inno-
hour in their first year of employment.
vative four year old project in my home state of Dela-
ware: Jobs for Delaware Graduates (JDG). JDG fo-
cuses upon finding full-time productive jobs for the
State Level Task Forces
high school seniors least likely to succeed-i.e., those
all but forgotten students in general education classes
who receive neither vocational training nor college
In order to stimulate the formation of community
preparatory instruction. Most have no career plans
partnerships such as Jobs for Delaware Graduates, the
and very little motivation.
President's Task Force, through a committee of Gov-
The JDG community partnership is organized and
ernors which I chair, is encouraging each state to
operated as a non-profit corporation, which receives
establish a mechanism through which the partnership
both public and private funding. Public funds are pro-
approach may be pursued. In some states, a new state-
level Task Force on Private Sector Initiatives has been
vided by the Delaware Legislature and grants from the
formed. In other states, a Cabinet Committee or an
U.S. Department of Labor. Private funds come from
local businesses and the Ford and Rockefeller
existing advisory group on volunteerism and human
Foundations.
services has assumed the role of encouraging partner-
JDG is also guided jointly by the public and private
ships. In all, some 42 states have either already estab-
sectors through a board of directors consisting of busi-
lished a mechanism for partnership formation or are in
nessmen, labor leaders, state educators, and political
the process of doing so.
The Task Force on Private Sector Initiatives in New
leaders. Public officials and private businessmen share
Jersey, established by Governor Kean in April, 1982,
illustrates the mandate and operation of a newly-
Pierre S. du Pont IV is Governor of Delaware.
formed, state-level effort.
COMMUNITY ACTION Vol. I. No. 4, 1982 15
POLICY PERSPECTIVES
The mandate to the Task Force notes that public
to the recession, and recipients of public assistance
and private human service efforts have been operating
benefits, the Governor's Task Force is providing rec-
along virtually parallel lines in New Jersey, with few
ommendations on policies that will promote and foster
ties between the two, few direct lines of communica-
public and private joint ventures in community eco-
tion, and relatively few instances of cooperative use of
nomic development and job creation.
human and financial resources. The Task Force is
A primary objective of the President's Task Force is
charged with forging systematic links between the pub-
to serve as a catalyst, encouraging the creation of part-
lic and private sectors-an opportunity virtually ig-
nerships where none currently exists or where business
nored before economic troubles forced New Jersey to
or government by itself has failed to address a commu-
re-examine the under-utilization of its human and
nity need. This desire to act as a catalyst has been the
financial resources.
primary driving force behind the work of the Gover-
The membership of the Task Force is drawn from
nor's committee. Our goal is to create as many state
the corporate community, labor and education
task forces as possible, to leave behind as our legacy a
groups, the religious community, foundations, human
vital network of task forces and partnerships that will
service groups, and other non-profit agencies. Gov-
carry on the work begun by the President's Task Force
ernor Kean chairs the Task Force personally.
The first step, currently underway, is to take inven-
Conclusion
tory of public and private human service programs
operating in the state. The second step is to devise
specific administrative and legislative steps that will
One of the issues that has consistently arisen in our
encourage and facilitate the formation of community
work is: Who should take the lead in forming partner-
ships, business or government? On a theoretical level
partnerships. This may involve removing obstacles
and impediments in state law as well as offering posi-
arguments can be constructed on either side. Some
tive incentives for coordination of efforts.
argue that since the reason government exists is to
serve the public interest, public officials should be
Another approach to establishing a state-level focus
charged with the responsibility of playing the lead role
for partnership efforts is found in Kansas. In March
1982, Governor Carlin established a sub-Cabinet com-
mittee on Private Sector Initiatives, composed of the
Secretaries of Economic Development, Administra-
tion, Aging, Human Resources, and Social and Reha-
Leadership may come from either the
bilitation Services as well as four individuals from the
public or private sector.
private sector committed to, or involved in, commu-
nity partnerships. The sub-Cabinet committee imme-
diately launched a survey of existing public-private
partnerships in Kansas and found, to its surprise, that
Still others argue that the private sector has a vested
a wide variety of community partnerships were already
interest in any community where it exists, so busines
operating within the state. Major examples included
should play the role of civic entrepreneur. However
the PLUS program, a state-wide partnership with in-
when we consider real problems in the real world, the
dustry to provide health screening, health promotion,
answer is that leadership may come from either secto
and health education at the work site; and the PRIDE
depending upon the particular situation. The private
program, a state-wide community development effort
sector may be the first to identify a problem and to sug
in cooperation with the private sector. The sub-Cabi-
gest a partnership to address it, or state or local go
net Committee is now working to identify priority
ernment officials may initiate a request for coordina
areas for further development of partnerships.
tion of resources in some area. What matters is that that
Still another approach to state-level leadership is
partnership is created, and the problems addressed-
found in South Carolina, where the Governor's Coun-
addressed by representatives of a broad cross-section
cil on Volunteerism and the Governor's Task Force on
of the community with an interest in solving the
Critical Human Needs are working in tandem to
problem.
launch joint efforts by public organizations and pri-
We have learned much from the politics of confron
vate business to assist poor families and unemployed
tation in this country. It is time for the politics of coop
workers.
eration-between levels of government and between
In addition to fostering immediate action to address
the public and private sector-to play a major role a
human needs of workers impacted by a loss of jobs due
we seek to resolve problems for the benefit of all.
16 COMMUNITY ACTION Vol. 1, No. 4, 1982
POLICY PERSPECTIVES
Community Partnerships
at Home and Abroad
by
E. Morgan Williams
The President's Task Force on Private Sector Initia-
management practices and the development of live-
tives is currently seeking to stimulate the formation of
stock breeding programs; International Voluntary
community partnerships between the public and
Services recruits skilled technicians internationally to
private sectors to attack our pressing domestic prob-
fill particular posts in community development, hous-
lems. However, it is little recognized that the partner-
ing and industrial development and the People-to-
ship approach has long been utilized in addressing
People Health Foundation of Project Hope teaches
another critical set of problems: fighting hunger and
modern techniques of health science to medical, den-
poverty in the developing nations. For many years, a
tal, nursing and health personnel in Africa, Latin
cooperative effort has mobilized resources from both
America and the Middle East.
the public and private sectors to provide coordinated
development assistance to the Third World. The ex-
The experience of the organizations
perience of the organizations operating in the sphere of
international development assistance has much to
operating in the sphere of international
offer as we begin to accelerate the formation of com-
development assistance has much to
munity partnerships at home.
offer as we begin to accelerate the
Partnerships for Development
formation of community partnerships
at home.
At the center of the cooperative relationship
through which American development assistance is
delivered to Third World nations are the private volun-
Each year thousands of individuals and corpora-
tary organizations (PVOs) which operate programs
tions in the private sector contribute to PVOs in sup-
and maintain staff in the recipient nations. PVOs have
port of their relief and development activities. Accord-
been active in international relief work globally for
ing to a recent report on American voluntary agencies
involved in overseas development assistance prepared
more than a century. However, over the last thirty
by AID, private contributions to PVOs totaled $836
years, they have focused their efforts on the poorer
million in 1980. Additional millions in in-kind services
nations and have developed an extensive network of
and volunteer time are also provided by individuals
contacts and relationships in these countries. This net-
work is an invaluable resource for delivering develop-
and corporations.
ment assistance.
The partnership effort is reflected in the support
Just as the American population represents a heter-
provided to PVOs by government through AID and
ogeneity of interests and concerns, so do American pri-
the cooperative projects undertaken abroad. Legisla-
vate voluntary organizations operating abroad. A look
tion that governs the relationship of U.S. PVOs with
the government spells out clearly the emphasis that is
at the PVOs that are registered with the U.S. Agency
for International Development (AID) to engage in
placed on partnership. For example, in Section 123 of
development work abroad shows that activities rang-
the Foreign Assistance Act of 1979 the Congress stated
ing from agricultural marketing to teaching people
that "participation of rural and urban poor people in
how to build better roads and schools are undertaken
their countries' development can be assisted and accel-
by U.S. PVOs. For example, Africare supports the
erated in an effective manner through an increase in
development of water resources, increased food pro-
activities planned and carried out by private and vol-
duction and delivery of basic health care services in
untary organizations." This commitment to partner-
rural Africa. Food for the Hungry operates integrated
ship by the U.S. Government is compatible with what
most PVOs view as their objectives and serves as the
rural development projects aimed at developing self-
reliance through food production programs; Heifer
foundation of the cooperative effort.
Project International emphasizes training in good
Government support has allowed PVOs to expand
the scope and scale of their assistance activities beyond
E. Morgan Williams is President of the Cooperative League of
levels previously sustainable with private funds alone.
the U.S.A.
Without the support of government for PVO activities,
COMMUNITY ACTION Vol. 1, No. 4, 1982 17
POLICY PERSPECTIVES
the development of such large-scale projects as agri-
have increased particularly sharply for the poorest
cultural marketing systems, nutrition centers, hospi-
members; and (3) members are investing much of their
tals, and irrigation systems would be virtually impos-
increased income in other productive assets, such as
sible in many developing countries.
land and buffalo.
Based on the Kaira Union precedent, Phase I of
A Partnership At Work
"Operation Flood", completed in 1977, organized
more than 2 million milk producers in India into hun-
A major emphasis of the overseas development
dreds of village milk collection cooperatives. These, in
effort over the past few years has been the improve-
turn, were federated into 18 integrated cooperative
ment of basic agricultural production and distribution
unions, in order to "flood" India's four largest cities
networks in the Third World. As President Reagan
with high quality, low cost milk. In Phase II, recently
noted in his speech on development assistance to the
completed, 28 additional cooperative unions have
World Affairs Council of Philadelphia last year,
been created. All of the unions operate modern, large-
"Looking to the future, our emphasis will be upon the
scale plants which process and market milk and dairy
importance of market-oriented policies
The focus
products.
will be on raising the productivity of the small farmer,
The impact of "Operation Flood" is four fold. First,
building the capacity to pursue agricultural research
the milk that is sold provides an important food source
and stimulating productive enterprises that generate
to the Indian diet and fights malnutrition in the
employment and purchasing power."
country. Second, the Indian farmer gets a better return
To illustrate how the partnership effort works in
for his product. Third, proceeds from the sale of milk
pursuit of this objective, we can examine a project
provide a source of capital formation. And finally, the
undertaken by my own organization, the Cooperative
formation of a cooperative stabilizes the economic
League of the U.S.A. In its overseas work, the Cooper-
situation in the villages and brings an improved way of
ative League works to bring cooperative structures and
life to the people in the community.
operations to bear on the problems of the Third World
farmer and consumer.
Conclusion
For over a quarter of a century, the Cooperative
League has been actively involved in developing coop-
While there have been the inevitable tensions and
eratives in the Third World. As noted by Congress in
problems in the public-private partnership for over-
1964 in reporting on the Humphrey Amendment to the
seas development assistance that attend any effort to
Foreign Assistance Act, "Living and vital cooperatives
coordinate large-scale efforts, the results to date have
embrace the social, moral and cultural values of their
been overwhelmingly positive. The U.S. PVO cannot
members
these are what give U.S. cooperatives
do it along operating abroad. Neither can the U.S. gov-
their high value as an exportable product of our
ernment. We need each other.
democracy."
The lesson for domestic policy is that partnership is
One of the current development assistance projects
more than a slogan. The AID-PVO relationship has
carried out by the League as a public-private partner-
demonstrated that the partners can accomplish more
ship is "Operation Flood" in India. Funding for this
working together than by themselves. Private sector
project was provided from a combination of founda-
initiatives and organizations do not supplant govern-
tion, government and League resources. "Operation
ment activities, but they can complement and reinforce
Flood" is patterned on the model of the very successful
public sector efforts in striving to accomplish mutu-
Kaira district Milk Production Union in Gujarat
ally-agreed upon objectives. If we can take the overseas
State. The Kaira Union today is composed of 850 vil-
development experience into account as we proceed
lage cooperatives with a membership of 300,000.
with the construction of community partnerships at
Major results of its operations are: (1) income has in-
home, we will make faster and more effective progress
creased for co-op members; (2) production and income
toward meeting our urgent domestic problems.
18 COMMUNITY ACTION Vol. I, No. 4, 1982
NOTES FROM THE FIELD
Housing Partnerships
We present below two different
and won a set of municipal and
programs. The basis for the award
models of community partnership in
county policies that provided the
was the operation of an effective
housing. One, the New York City
right conditions for new develop-
partnership among citizens, public
Neighborhood Housing Service, is a
ment to proceed. The key element in
agencies, and the private sector-
local program of the Congressional-
this partnership strategy is that the
the Des Moines Housing Council,
ly chartered Neighborhood Rein-
Des Moines Housing Council acts
Inc.-which had constructed over
vestment Corporation. Its emphasis
as a surrogate public agency with
200 new housing units on vacant
is on rehabilitation. The second, the
delegated powers from local govern-
inner-city land.
Des Moines Housing Council, is a
ment. These powers are exercised
The League of Women Voters
privately initiated partnership work-
from a broad representational base
took the lead role in constructing the
ing in the area of new construction.
of neighborhood, business, and gov-
partnership. League members who
The Neighborhood Reinvestment
ernment, rather than from govern-
had served on the housing task
Corporation operates on two basic
ment alone.
force, dismayed by their findings,
premises. First, neighborhood resi-
approached the president of the
dents and organizations must be
Des Moines
Chamber of Commerce for his help:
directly involved in the revitaliza-
would the Chamber sponsor a
tion of their older neighborhoods.
Trash-strewn vacant lots. Aban-
meeting of key business and govern-
During the 1960s and early 1970s,
doned boarded-up houses. Demor-
ment people to gauge the amount of
too many older neighborhoods took
alized residents fleeing to the
interest in revitalizing the area
a defeatist view. Organized collabo-
suburbs. All these signs of urban
around the central business district?
ration of government, business, and
decay blighted the inner ring around
As it turned out, everyone was
voluntary organizations is required
downtown Des Moines, Iowa in the
interested.
to break this attitude and give resi-
mid-1970s. Government programs
The Chamber and the city govern-
dents confidence to borrow for re-
showed little positive effect. The
ment each agreed to provide
habilitation. The second premise is
League of Women Voters, in a 1975
$100,000 to establish the Des
Moines Housing Council (DMHC)
to coordinate housing programs in
the city and to launch new initia-
Signs of urban decay blighted the inner ring around
tives. The Council was incorporated
downtown Des Moines in the mid-1970s. Government
as a non-profit organization in the
programs showed little effect.
spring of 1978 to develop "experi-
mental and innovative programs to
address the housing needs of inner-
city residents through the pooling of
that market rate loan funds are not
study, reported that Federal pro-
human, governmental and financial
sufficient to revitalize a neighbor-
grams-once thought to be the solu-
resources and actions". The board
hood. Public, below-market rate
tion-had failed in Des Moines. I ne
of directors included developers,
funds must be used to leverage loan
city's housing programs, whether
lenders, neighborhood activists,
money from local thrift institutions
administering Federal or local
leaders of business and labor, city
and commercial banks and to
funds, were cumbersome and inef-
and county government administra-
reduce the cost of revitalization.
fective. Private housing organiza-
tors, the state Housing Finance
Our second case, the Des Moines
tions were working at cross pur-
Agency (IHFA) and others. One
Housing Council, Inc., was initiated
poses.
concern of the new organization was
by the Chamber of Commerce and
Five years later, Des Moines
its ability to move rapidly. Thus, the
the League of Women Voters to re-
received the All-America City
by-laws of the new organization
vitalize a vacant area surrounding
Award from the National Municipal
vested special powers in an inner city
downtown. The Council advocated
League for its innovative housing
housing committee consisting of
COMMUNITY
ACTION
Vol.
I.
No
4
1982
19
NOTES FROM THE FIELD
seven members. Together with the
neighborhoods. Clarke was cau-
Supervisors have never superceded
officers of the Council, the commit-
tious, telling Crivaro, "If you are to
a DMHC determination. DMHC
tee members formed a workable
be successful, whether with the
also handles and judges developer
executive council for rapid decision-
public or private sector or both, you
competitions.
making.
are going to have to make such a
The program operates as follows:
Another concern was developing
good deal that you overcome the
DMHC prepares requests for pro-
an inclusive planning process and
bias against the neighborhood and
posals for competitive bidding by
allaying resident's fear of displace-
the current residents." But he agreed
local builders. The county adver-
ment. This was accomplished in part
to help.
tises, as for a regular sale; the devel-
by holding regular meetings with the
With the assistance of urban plan-
opers respond. Proposals received
Neighborhood Priority Boards, of
ner, Bil Ludwig, Clarke began to
are evaluated on "design criteria" as
which there are six in the inner city;
explore who lived in the area and
well as "highest dollar criteria"-
and in part by frequent DMHC fo-
who owned the land. They quickly
that is, the land goes to the best site
rums, public meetings, public serv-
discovered that Polk County owned
and building plan, rather than
ice announcements, and flyers for
400 properties in the prime service
simply to the highest bidder.
neighborhood residents.
area, usually for tax delinquencies.
Because of the criteria used, inno-
Many of these properties had been
vative and energy-efficient designs
Accomplishments
The Council's first foray into
In 1980, Des Moines Housing Council produced 120
housing improvement focused on
new housing units in the six target neighborhoods.
rehabilitation. Under contract with
the Housing Action Alliance, an
ecumenical religious organization,
vacant since the Depression. Within
are submitted. Red tape is mini-
the Council conducted house-to-
45 days, the two had a concept to
mized. If a builder subscribers to the
house rehabilitation using CETA
propose, built around aggregating
homeowners warranty program
workers. However, the work crews
the county properties in the prime
(HOW), he need submit only a site
were very unstable with low skill
service area into a "landbank" for
plan, building design, and a banker's
levels, and results were discouraging.
development.
statement of availability of interim
During the same time, DMHC
Following a series of presenta-
construction financing to offer a
worked with the Des Moines Sav-
tions to government agencies and
bid. The developers, in turn, agree to
ings & Loan League on an interest-
commissions, with the enthusiastic
pass on the land savings to buyers of
subsidy loan program and financial
support of DMHC leaders, the Polk
the houses they build.
counseling for low income residents
County Land Bank was established
To enhance the attractiveness of
in the Council's prime service area,
by the County Board of Supervisors.
the land offered for sale, the city, on
the ring around the downtown.
Under the plan, developed by the
the recommendation of the six
With the lenders' enthusiastic par-
county planning department and the
neighborhood advisory boards and
ticipation, this demonstration was
County Attorney's office from
the city-wide Citizens Advisory
very successful and was eventually
Clarke and Ludwig's initial pro-
Board, use CDBG funds for curb
adopted by the city government as
posal, parcels owned by the county
and sidewalk improvements, sewer
the Below Market Interest Rate
in the inner city were to be made
and water hook-ups, and other pub-
(BMIR) program.
available only for new housing.
lic services. Also, by declaring the
Following this start-up period,
Each existing parcel would be
construction zones "urban revitali-
DMHC's major focus became new
"banked" until its suitability for de-
zation areas", property owners can
housing construction in the inner
velopment had been determined.
receive full property tax abatements
city. Recognizing that the blighting
The Board of Supervisors dele-
for three years or partial abatements
influence of vacant lots covering 75
gated its power to make a determi-
for up to 10 years under Iowa law.
percent of the land area in the tar-
nation of suitability to the inner city
Financing is also attractive. The
geted neighborhoods was the most
housing committee of DMHC. The
Iowa Housing Finance Authority
critical problem, DMHC's Presi-
committee includes the city archi-
has offered $4.82 million in mort-
dent, Peter Crivaro, approached de-
tect, a private architect, the city
gage financing at 8% interest. The
veloper Lloyd Clarke with a pro-
planning director, two lenders,
Greater Des Moines Board of Real-
posal for new construction in the
and two homebuilders. The County
tors has held a loan seminar for par-
20
COMMUNITY ACTION Vol. I, No. 4, 1982
NOTES FROM THE FIELD
ticipating real estate agents and a
mortgage financing to meet
gressional appropriation of approx-
second for prospective buyers. The
DMHC's goal of 100 new housing
imately $13 million.
realtors, Savings & Loan League,
units in each year of the 1980s. There
NRC originated in 1970 when
and the Bankers Clearing House
is some discouragement about the
William Whiteside joined the Na-
Association provides advice on pur-
prospects for additional state and
tional Home Loan Bank Board to
chasing and financing.
federal funds. DMHC is now inves-
train executives for urban housing
In 1980, the DMHC produced
tigating "creative financing" and
investment. By 1971, Whiteside and
120 new housing units in the six
tapping the insurance companies
the Bank Board had become very in-
neighborhoods, mostly single fami-
and pension funds.
terested in a novel program in Pitts-
ly homes and some townhouses.
Given the difficulties of housing
burgh called Neighborhood Hous-
Half the purchasers were already
construction in the current eco-
ing Services. That program brought
inner-city residents. Forty percent
nomic environment, it is small
together neighborhood leaders and
were black, a little under thirty per-
wonder that DMHC leaders are
savings and loan associations for
cent white, and the remainder other
concerned about their ability to con-
cooperative strategies of reinvest-
minorities (mostly Southeast
tinue meeting housing needs in the
ment. By 1973, the Bank Board had
Asian). Many were young, first-time
city. But by creating an effective
funded several demonstrations of
buyers. The majority had household
partnership, there is little doubt that
the Pittsburgh model in Oakland,
incomes of $13,000 to $19,000. It
Des Moines has the energy and or-
Dallas, the District of Columbia,
was a busy and difficult year, but,
ganization to face the future
and Plainfield, NJ. It also brought
says current DMHC president
confidently.
FDIC, the Federal Reserve System,
Marilyn Staples "in 1980 we really
and the U.S. Comptroller of Cur-
hit our stride and started to do the
rency into the structure of the
innovative things we were formed to
New York
project.
do." In 1981, DMHC produced
In 1974, HUD was impressed
another 110 units.
enough to join in and signed an
New York City Neighborhood
inter-agency agreement with the
Housing Services, Inc. (NHS) is a
Bank Board to form a Task Force
Prospects
partnership of government, busi-
on Neighborhood Reinvestment.
ness, and neighborhoods which
The other federal financial agencies
With the initial success of its new
funds and coordinates the activity of
joined the Task Force and HUD fur-
housing program, DMHC has
seven Neighborhood Housing Serv-
nished demonstration funds for 34
broadened its activities. For exam-
ice rehabilitation loan units around
new Neighborhood Housing Service
ple, it lobbied for a recent ordinance
the city. New York NHS, in turn, is a
units. In 1977, the Credit Union Ad-
reducing the city's waiting period to
component of the Neighborhood
ministration joined the Task Force.
acquire abandoned residential prop-
Reinvestment Corporation (NRC),
And finally, in 1978 Congress char-
erties to six months. DMHC has
a Congressionally-chartered, pri-
tered, authorized, and funded NRC.
also started a tool lending library for
vate, non-profit organization that is
In the year of its congressional
inner-city residents and is working
mandated to improve the quality of
charter, NRC decided to broaden
on neighborhood commercial re-
vitalization in the Logan Square
project.
NRC's principal tool is utilization of a revolving loan
Noting that Neighborhood Hous-
fund to leverage private sector investment in
ing Services (which is represented on
housing improvement.
the DMHC board) recently ex-
panded into a second neighbor-
hood, DMHC would like to "move
housing stock in the nation'-s older
Neighborhood Housing Service
into preventive measures" along the
neighborhoods. NRC's prinicpal
activity in New York City. At that
NHS model: halting and reversing
tool is utilization of a revolving loan
time, there was only one Neighbor-
decline before the neighborhood
fund to leverage private sector in-
hood Housing Service organization
hits rock bottom.
vestment in housing improvement.
in New York, a small unit operating
Continuing problems also de-
NRC currently operates through
in Jamaica, Queens.
mand attention. The most crucial
171 Neighborhood Housing Service
In its own fashion of organizing,
need is to find construction and
units in 126 cities and enjoys a Con-
NRC began holding exploratory
COMMUNITY ACTION Vol. 1, No. 4, 1982
21
NOTES FROM THE FIELD
conservations about expansion with
decision to commit funds to the
Operations
local government, neighborhood
NHS revolving loan fund. Based on
leadership, and the business com-
this commitment, the expansion was
The core program of New York
munity.
able to move ahead.
NHS is making low-interest reha-
An early meeting with the city's
Department of Housing, Preserva-
Organization
bilitation loans from a revolving
loan fund of $825,000. This fund is
tion, and Development identified
New York NHS is presently or-
divided into seven neighborhood
the possibility of leveraging substan-
ganized as a non-profit corporation
funds. The distribution of local
tial public dollars for an expanded
with seven operating neighborhood
funds must be centrally approved.
revolving fund, especially if there
units in Brooklyn, Bronx, Queens,
Local boards make loan recom-
was private sector commitment.
and Staten Island. These neighbor-
mendations to the central corpora-
NRC then met with Equitable
hoods include: East Flatbush and
tion. They also hire and supervise
Life Assurance Society-the first
Kensington/Windsor Terrace in
the staff people-in most cases, a
private sector party of potential in-
Brooklyn; Williamsbridge/Olinville
Director, an Administrative Assis-
terest. Equitable was already sup-
Wakefield and Soundview in
tant, and a Rehabilitation Specialist
portive of the neighborhood
Bronx; Jamaica and Laurelton in
-who operate the core program.
housing service approach national-
Queens; and West Brighton in
At the neighborhood level, the
ly, as a major"investor in Neigh-
Staten Island. The Jamaica division
objective is to use the revolving loan
fund to increase the total dollars in-
vested in housing rehabilitation.
The core program of the New York Neighborhood
This is done by leveraging local
Housing Services is making low-interest rehabilitation
financial institution loan agree-
loans from a revolving loan fund of $825,000.
ments. For example, a resident may
need $20,000 for rehabilitation work
which he cannot afford to borrow at
borhood Housing Services of
predated the central structure and
the current 16% market rate. NHS
America in Oakland, CA, which is
has a larger staff and budget than
might offer $10,000 at 6%, enabling
the secondary mortgage purchaser
the other divisions. Otherwise, the
the resident to afford the other
of Neighborhood Housing Service
resources of New York NHS are
$10,000 at market rate. In such a
loans.
equally divided among the neigh-
case, $10,000 in NHS funds lever-
Equitable did two important
borhood divisions. The total operat-
ages $10,000 in private funds for re-
things. First, it made the initial pri-
ing budget in 1982 is $1,000,000.
investment in the community.
vate sector contribution of $85,000
There is a 24-member central
The first step in carrying out this
for the creation of New York City
Board of Directors which is made up
program is for the NHS Rehabilita-
Neighborhood Housing Services.
of representatives of state and local
tion Specialist to conduct a site
Second, it convened a meeting of 12
government, financial institutions,
examination. Rehabilitation needs
other major companies in the insur-
and neighborhood organizations.
are carefully segmented to identify
ance industry to organize additional
Each neighborhood unit also has a
specific components that may be
support toward a goal of underwrit-
Board consisting of representatives
eligible for subsidization of interest
ing one-third of the annual operat-
from the same sectors. Two repre-
rates. For example, Brooklyn Gas
ing budget ($1,000,000) for an
sentatives from each of the seven
has a 12% loan fund for energy con-
expanded NHS. An additional one-
neighborhood Boards sit on the cen-
version improvements. NHS might
third of the operating budget was
tral Board. Government representa-
combine Brooklyn Gas money, its
committed by the savings and loan
tives on the central Board include
own loan contribution at a low in-
industry, and the final third by com-
the State Commissioner of Housing
terest rate, and a portion of market-
mercial banks. Foundation grants
and the city's Deputy Commissioner
rate commercial loan money into a
also helped to subsidize the start-up
of Housing, Preservation and De-
tandem loan package for a rehab
costs for the expanded operation.
velopment. Business representation
project involving some amount of
The contribution by Equitable
comes from Metropolitan Life, An-
energy conversion.
and other private sector companies
chor Savings, Chase Manhattan,
There is no minimum rate on
impressed the Department of Hous-
Manufacturers Hanover Trust,
NHS funds, nor any set duration for
ing, Preservation and Development
Chemical Bank, and Dollar Savings
repayment. All NHS participation is
and played an important role in its
Bank.
negotiated on the basis of the client's
22
COMMUNITY ACTION Vol. 1. No. 4, 1982
NOTES FROM THE FIELD
needs and local circumstances. Be-
past several years. It has exercised
tions, the blending in of NHS low-
yond rehabilitation loans, a NHS
strong influence over partnership
interest money helps sustain the
unit may make an occasional pur-
formation in other fields. Its politi-
market rate of interest. In many
chase loan if it deems that a particu-
cal support, both nationally and
respects, lenders prefer this to a
lar property transfer is crucial to
locally, is solid. NRC remains popu-
directly competitive subsidized in-
local revitalization. A four unit
lar with the Reagan Administration,
terest rate. The local NHS is also a
property might be a good candidate
and has strong friends in Congress.
valuable tool for identifying credit-
for decay under absentee landlord
As is seen so clearly in New York,
worthy borrowers which a small
purchase, but a purchase loan to
NHS offers benefits to all of the
bank or savings and loan institution
occupant buyers could secure the
partners: government, business, and
might not have the tools or financial
property and add to the general
neighborhood organizations. From
means to identify. For insurance
value of the surrounding area.
the point of view of local govern-
companies, NHS helps to stabilize
The skill of the Rehabilitation
Specialist is crucial in the loan
assessment process. The revolving
fund is too small to spend on cos-
From the point of view of local government, NHS
metic loans that are not general
anchors for stabilization. The loan
stretches housing dollars. It leverages private sector
strategy rests on the careful
dollars for moderate to middle income communities.
investment of scarce funds in struc-
It produces stable neighborhoods and thereby
tural work, energy modernization,
and other "hard" improvements
maintains tax revenues.
which contribute to the stability of
the neighborhood.
ment, NHS stretches housing dol-
property values and defuses the red-
Prospects
lars. It leverages private sector
lining issue. Finally, residents gain a
dollars for moderate to middle in-
pool of subsidized rehabilitation
come communities. It produces
loan money for the improvement of
Across the country, the partner-
stable neighborhoods and thereby
their community, which also lever-
ship approach of the NRC has en-
maintains tax revenues. From the
ages private investment.
joyed tremendous success over the
point of view of financial institu-
COMMUNITY ACTION Vol. 1, No. 4, 1982
23
NOTES FROM THE FIELD
Neighborhood Revitalization
Partnerships
The neighborhood revitalization
By 1978, local officials in charge
A plan worked out under the
efforts discussed in this section pre-
of community development realized
leadership of Earl Reynolds, Direc-
sent different approaches to the con-
that they could not engineer private
tor of the Office of Community
struction of community partner-
investment by themselves. They had
Planning, for the City Council to
ships. The Roanoke Neighborhood
already involved neighborhood or-
establish a new entity, initiated the
Partnership was initiated by govern-
ganizations in the development pro-
Roanoke Neighborhood Partner-
ment and reached out to the private
cess through a citizen participation
ship. This plan was influenced by
sector for support and representa-
system. The real problem was that
models of neighborhood develop-
tion. The Kansas City Neighbor-
the cooperation of government and
ment in Atlanta and Baltimore.
hood Alliance, on the other hand,
neighborhoods could not convince
Atlanta had previously reorganized
was initiated by private corpora-
banks and developers to put dollars
its planning process on the basis of
tions and is organized around busi-
and construction commitments into
neighborhood plans and assigned
ness-neighborhood collaboration.
the older neighborhoods. The finan-
planning staff to work with neigh-
The Alliance relates closely, but in-
cial community lacked a political
borhood organizations. Baltimore
dependently, to the public agency
role in the community development
had organized the staff of its com-
for housing and community devel-
process. If business could be
munity development department
opment in Kansas City.
brought into the planning process,
around neighborhood strategies.
Both cases are based on the prem-
then it might enter the spending
The Partnership is organized
ise that neighborhood revitalization
process.
around a Steering Committee,
requires an integrated commitment
of dollars, energy, and interest be-
tween neighborhood organizations,
Neighborhood organizations, government agencies,
government agencies, and private
business. Each has an important
and private business all have an important stake in the
stake in the stability and security of
security and stability of the nation's older
the nation's older neighborhoods.
neighborhoods.
Today, the premise seems obvious.
It was not so obvious a decade ago
during an era of confrontation and
In 1978, the Carter Administra-
adversarial relations between all
which is appointed by the City
tion announced its urban policy,
Council to oversee neighborhood
parties.
which was based on the partnership
development work. The Steering
approach to urban revitalization.
Committee enjoys official review
Roanoke
Federal, state, and local govern-
and approval powers, similar to the
ment; the business community;
role of the Architectural Review
The Roanoke Neighborhood
neighborhoods; and voluntary insti-
Board, which oversees historic pres-
Partnership is a city-wide neighbor-
tutions were asked to work together.
ervation activities in Roanoke, or
hood development program that has
This policy gave Roanoke officials
the Planning Commission, which
brought three new sources of sup-
the opportunity to offer business a
approves planning decisions. The
port into the community develop-
role in neighborhood planning,
Partnership operates directly out of
ment process-the business commu-
without arousing antagonism from
the Office of Community Planning
nityu, neighborhood organizations,
the neighborhood sector. Business
and is staffed by an employee of that
and voluntary agencies. Until the in-
responded with commitments of
office, selected by the Partnership. It
auguration of the Partnership in
support from the Roanoke Valley
has a budget of $67,000.
1980, the development process was
Chamber of Commerce, the bank-
There are two unique features of
primarily a direct operation of the
ing community, the Roanoke Valley
the Partnership Steering Committee
city government's Office Of Com-
Board of Realtors, and the Home-
which help to insure its successful
munity Planning.
builders Association.
operation. First, it is the official
24
COMMUNITY ACTION Vol. 1. No. 4, 1982
NOTES FROM THE FIELD
Community Development Board of
defined work agenda. Members of
came up with a convincing design
the City of Roanoke. While many
the neighborhood organizations
which was approved by the City
cities have a citizen participation
were also assigned tasks to be ac-
Council. A city bond issue was
unit in the community development
complished between meetings. All
passed incorporating the drainage
process, that unit is generally ap-
around town, neighborhood resi-
system.
pointed by the community develop-
dents were preparing issue sum-
In the Gilmer Avenue area, the
ment department as an advisory
maries, neighborhood histories,
local neighborhood organization
unit. Community development offi-
maps and surveys; then identifying,
established a housing committee,
cials report directly to the Council
contacting and meeting new re-
and brought Allstate Insurance into
or Mayor, without passing through
sources; and finally working closely
its planning efforts. Together, All-
an intervening official committee. In
to negotiate and refine action plans.
state and the neighborhood pre-
Roanoke, however, the community
At the conclusion of the work-
pared and printed a guide to housing
development agency has subordi-
shop process, city staff, consultant,
assistance programs offered by dif-
nated itself to the Steering Commit-
and volunteer assistance was avail-
ferent federal, state, and local agen-
tee in exchange for the active in-
able to help groups work on priority
cies. They were able to market these
volvement of different sectors which
projects. A small matching grant
programs more successfully in the
are viewed as essential to a success-
fund was established to help neigh-
community than the city govern-
ful community development process.
borhood groups reach out to the pri-
ment had previously been able to do.
Second, the private sector was
vate sector and learn the mechanics
In the Grandon Road area, the
brought into the community devel-
of fundraising and financial man-
local neighborhood organization
opment process not just in reaction
agement. Four neighborhoods were
worked out a plan with the business
to federal cutbacks but as a positive
selected for major demonstration ef-
association to beautify the commer-
force in building a better commu-
forts. These neighborhoods repre-
cial strip using volunteers for sign
nity. Thus, business does not feel put
sent the full range of social, eco-
control, street cleaning, and tree
upon to fill the "gap".
nomic, and geographic characteris-
planting. This Partnership project
Once the Steering Committee was
tics of the city.
responded to a need that the city
formed, the Partnership reached out
government had not previously
to involve a broad spectrum of indi-
Accomplishments
addressed.
viduals and groups in Roanoke. The
In the Belmont area, Allstate and
basic premise of this outreach ap-
The major organizational accom-
Shenandoah Insurance Companies,
proach was that neighborhood resi-
plishment of the Partnership has
as well as Kroger Foods and Ad-
dents, if organized and backed by
been the strengthening of neighbor-
vanced Auto supplied materials to
the resources of business, voluntary
hood organizations as active, credi-
the local neighborhood organiza-
organizations and the public sector,
tion for the restoration of an old
ble development entities. The four
could define and solve many of the
firehouse and its conversion into a
original demonstration neighbor-
problems affecting the quality of life
hoods have all developed powerful
community center. The City gave
in their neighborhoods.
neighborhood organizations which
the organization a long-term lease,
In early 1981, a city-wide Neigh-
compete for block grant funds and
and the organization recruited 60
borhood Forum was held for the
leverage private funds.
volunteers for this restoration job.
purpose of identifying priority
A major substantive achievement
needs. The Forum included work-
Prospects
in one demonstration neighborhood
shops to: (1) define issues-positive
was the City Council's approval of a
The Roanoke model demonstrates
and negative; (2) identify and con-
$10,000,000 storm drainage system
that government, business, and
nect with needed resources; and (3)
for Williamson Road. The William-
neighborhood voluntary organiza-
develop an action plan for neighbor-
son Road Action Forum was organ-
tions can work together construc-
hood projects. The workshops were
ized through the Partnership. Its
tively for the betterment of their
open to all neighborhood residents.
leaders mobilized the business com-
communities. In Roanoke, all
As many as 150-200 people attended
munity in that area into an associa-
parties have decided that the con-
each workshop, which were con-
tion, and then joined with that
frontational styles of an earlier era
ducted by volunteer facilitators who
group to study storm drainage utili-
are no longer affordable. Resources
were trained in group process.
zation in the area. The resulting
are too limited and problems too
The workshop format used par-
Storm Drainage Review Committee
severe to indulge adversarial
ticipatory small groups, each with a
enlisted professional assistance and
instincts.
COMMUNITY ACTION Vol. I. No. 4. 1982
25
NOTES FROM THE FIELD
The Steering Committee is a well-
Charles Curry (Home Savings Asso-
Activities
established institution and will con-
ciation), and Jake Mascotte (Mutu-
tinue over the indefinite future as the
al Benefit Life) were able to
Alliance activities encompass five
major mechanism for neighborhood
convince their peers about the im-
major goals. The first major goal is
revitalization in Roanoke.
portance of neighborhood revitali-
to strengthen the capacity of organi-
The main problem facing the
zation.
zations involved in revitalizing the
Roanoke Partnership today is that
The Civic Council formed a Task
inner city. This involves supporting
neighborhood demand for assis-
Force on Neighborhood Revitaliza-
housing rehabilitation organiza-
tance has outstripped the resources
tion which recommended establish-
tions in four neighborhoods; pro-
of the Steering Committee. The
ing a citywide organization of com-
viding direct administrative assis-
Partnership has succeeded as a
munity and business leaders to sup-
tance to East Community Team,
mechanism for neighborhood re-
port neighborhood revitalization
Inc.; and forming a development
vitalization and now must catch up
projects. The Task Force identified
organization for the Palestine neigh-
with demand.
neighborhood-based leaders for the
borhood. The Alliance is also pub-
Two additional neighborhoods
board, along with business members
lishing a city-wide survey of neigh-
have recently been added to the four
of the Council who were interested
borhood organizations.
original demonstration neighbor-
in revitalization. Finally, it recom-
It second objective is to bring
hoods for priority projects. Expan-
mended a support budget of
greater investment capital to Kansas
sion beyond these six areas will have
$450,000 for three years. These rec-
City's older neighborhoods. The
to await further infusion of re-
ommendations were adopted, and
Alliance has leveraged a $500,000
sources from public and/or private
the Kansas City Alliance was
grant from LISC-a national pri-
funds.
formed.
vate investment fund for neighbor-
Kansas City
The Kansas City Neighborhood
The Alliance was organized in 1980 as an initiative of
Alliance is a city-wide neighbor-
hood development partnership of
the Kansas City Civic Council-an organization
corporations and neighborhood
consisting of 100 large corporations.
associations. The Alliance was or-
ganized in 1980 as an initiative of the
Kansas City Civic Council-an
organization consisting of 100 large
corporations in Kansas City.
The Alliance board consists of
hood development-on a dollar for
The Council has initiated four
eleven members representing both
dollar matching basis; and will serve
major projects in recent years. It
business and community interests.
as the allocation vehicle for the re-
spawned the Council on Education,
Its Executive Director is Tony
sulting million dollar loan fund. The
which links the business community
Salazar, and its program officer is
Alliance also prepares funding ap-
to the local school system. It created
Jim White. Its principal funding
plications for neighborhood organi-
the Kansas City Corporation for In-
comes from the Civic Council which
zations, and identifies resourceful
dustrial Development, which works
has just approved a renewal grant
private sector individuals to volun-
closely with city government to re-
for another three years at a reduced
teer their time to neighborhoods. It
tain large-scale employers in the
funding level. The Alliance also re-
acquires materials and equipment
downtown and industrial areas of
ceives substantial financial support
from the private sector, operates a
the city. It founded Kansas City
from Hallmark Cards, the Kansas
$200,000 revolving Weatherization
Tomorrow, which trains young
City Association of Trade, and the
loan fund; and compiles and dis-
business, community and govern-
Ford Foundation. A new LISC
tributes energy kits. It implements
ment leaders for future responsibili-
target city fund of $1,000,000 will
an effective loan packaging proce-
ties in the public and private sectors
substitute in the future for the de-
dure among different neighborhood
of the city. Finally, it originated the
creasing support of the Kansas City
organizations and develops a con-
Neighborhood Alliance after several
Civic Council, and represents a
siderable number of actual loans.
prominent business leaders like Don
strong path of growth for the
The third goal of the Alliance is to
Hall (Hallmark Corporation),
Alliance.
establish and nurture small-scale
26
COMMUNITY ACTION Vol. 1, No. 4. 1982
NOTES FROM THE FIELD
working partnerships between the
Prospects
With regard to government par-
public, private, and neighborhood
ticipation in the partnership, the
sectors. Currently, for example, this
Alliance does not include formal
involves cooperating with the
The Kansas City Neighborhood
representation from the city's Office
Lutheran community to capitalize a
Alliance is now in its third year of
of Housing & Community Develop-
$100,000 mortgage pool to finance
growth. Some of the original sup-
ment. But it does have a close coop-
the rehabilitation of abandoned
portive business leaders have left the
erative relationship with that
houses by the Westside Housing Or-
city, but business commitment to
agency. The agency conducts joint
ganization (WHO). The Alliance
neighborhood revitalization and to
program planning with the Alliance
will also assist WHO in acquiring
its primary vehicle, the Alliance,
in the rehabilitation field and the
and rehabilitating the West Penway
remains strong. This was ratified by
two entities have co-sponsored con-
Housing Project.
the business community's financial
ferences and workshops. Three of
Fourth, the Alliance seeks to
response to the LISC challenge
the staff meembers of the Alliance
market older neighborhoods to resi-
grant.
formerly worked with the Office of
dents and new buyers. This involves
media coverage of neighborhood
news, slide presentations on neigh-
Business commitment to neighborhood revitalization
borhoods, mapping older neighbor-
and to the Alliance remains strong.
hoods, and general promotional
activity.
The final goal is to foster the
This strength may be enough to
Housing & Community Develop-
acquisition of vacant property by
advance two new goals of the Alli-
ment and the City Council, so there
neighborhood organizations so that
ance. One goal is to open the United
are strong personal ties of coopera-
they can better control their envi-
Way to support for neighborhood
tion as well.
ronment. This means researching
organization and development. The
Since the inception of the Alli-
vacant land ownership, planning
second goal is to use Alliance re-
ance, the greatest disagreement with
strategies of acquisition, holding
sources to leverage a major public/
the city's community development
workshops on vacant land develop-
private partnership of sufficient
agency has arisen from the refusal of
ment, maintaining both a revolving
scale to fulfill responsibilities to low-
the agency to directly fund neigh-
loan fund for acquisition and a bulk
income citizens formerly supported
borhood organizations for develop-
buying program, and providing
by the federal government. The
ment. This policy is gradually
$35,000 in interest free loans for
principal target is the creation of a
changing, in light of successful Alli-
vacant house acquisition by six
$10-$20 million capital pool for
ance programs with various neigh-
neighborhood organizations.
low-income housing in the city.
borhood organizations.
COMMUNITY ACTION Vol. 1. No. 4. 1982
27
NOTES FROM THE FIELD
Partnerships for Youth
Of all the social problems con-
The Gannett Foundation, with
of youth training and employment.
fronting American society, most ob-
assets of more than $200 million,
Programs funded in Atlanta, Battle
servers agree that inadequate train-
was established in 1935 by the late
Creek, MI; Cocoa, FL; Denver;
ing of youth and youth unemploy-
founder of the Gannett Group of
Oakland; Rochester; and Stockton,
ment are among the most urgent.
newspapers. It contributes (about
CA are currently providing a wide
Youth is our most precious resource.
$5.4 million in 1981) to a broad
range of counseling, employment
If we squander its potential through
range of charitable causes in more
placement, and other services to
poor schooling and condemn it to
than 100 communities in the United
youth. However, the most compre-
idleness through a lack of entry-level
States and Canada serviced by Gan-
hensive partnership effort to attack
jobs, we pay a heavy price in violent
nett Co., Inc. newspapers, broad-
youth problems stimulated by CPP
crime, public welfare costs, and lost
cast stations and outdoor advertis-
is found in Phoenix.
output.
ing companies. Its primary national
In Phoenix, the problems of
The three Notes from the Field
interest ($2 million in 1981 contribu-
youth training and employment
presented below illustrate innova-
tions) is journalism education and
have been at the forefront of public
tive community partnerships which
professionalism. The foundation
concern for some time. In May, 1980
are making a noticeable dent in the
and company both have headquar-
Mayor Margaret Hance appointed a
problems of youth training and
ters in Rochester, NY, but are
task force of youth service agencies,
employment. None of the three
legally independent of each other.
business leaders, and public officials
cases presents a panacea for the
problems of youth. The efforts are
Of all the social problems confronting American
much too small and tentative to ad-
dress more than a small piece of the
society, inadequate training of youth and youth
problem in their local communities.
unemployment are among the most urgent.
Yet they do lead the way toward a
new way of thinking about youth
In order to provide a more posi-
called the Valley Youth Coalition.
problems. The essence of that think-
tive impact on critical local prob-
The Coalition found that the
ing is this: Government programs,
lems, the Gannett Foundation
proportion of youth dropping out of
no matter how well-intentioned and
launched its Community Priorities
school and being charged with de-
how well-financed, cannot tackle
Program (CPP) in mid-1981. Local
linquency was growing alarmingly,
the problems alone. A coordinated
chief executives of Gannett subsidi-
along with the number of youth
effort of government, business, and
aries were invited to submit compet-
gangs. It thus recommended a dra-
voluntary organizations is the essen-
itive applications for a total of $1
matic upgrading of employment,
tial foundation of a solution.
million in CPP awards, with a mini-
training, and recreation opportuni-
mum of $25,000 and a maximum of
ties for youth.
$150,000 for any one community.
The difficulty with this recom-
Phoenix
Forty applications were received
mendation, of course, was that fed-
and awards were made in 20 com-
eral funds for youth training and
In Phoenix, a broad-based com-
munities nationwide to local non-
employment programs were being
munity partnership focusing on em-
profit organizations and govern-
cut drastically during 1981 and fiscal
ployment for youth in providing
ments.
pressures on the city and county
vitally-needed services. The partner-
While the awards were made in a
governments made new locally-
ship was initiated and principally
number of categories, including
financed programs problematic.
funded by the Gannett Foundation's
health care, day care, community
About this time, the Gannett Foun-
Community Priorities Program, a
development, law enforcement, and
dation's Community Priorities Pro-
national effort to foster cooperative
leadership development, the Com-
gram presented a possible solution.
structures for addressing commu-
munity Priorities Program in 1981
The Chairman of the Valley
nity problems.
focused heavily upon the problems
Youth Coalition was Robert Reade,
28
COMMUNITY ACTION Vol. 1, No. 4. 1982
NOTES FROM THE FIELD
President of Gannett Outdoor Co.
partment of Employment Security
Center for Education to assist the
of Arizona. Following the an-
(DES). In 1981, 1,800 pledges were
Phoenix public schools in establish-
nouncement of the Community
generated. In 1982, reflecting the
ing a Dropout Clearinghouse to
Priorities Program, Reade and his
economic recession, only 350 were
concentrate counselling and referral
local Gannett colleagues, Pep
produced, yielding an average of
services to dropout-prone youth.
Cooney, manager of Gannett's tele-
two part-time jobs per pledge. How-
Beyond the core employment and
vision station KPNX, and Harry
ever, without the summer job coor-
training programs, Bob Reade and
Goss of national Gannett Outdoor
dinator, it is likely that far fewer
the other community leaders who
Advertising, began a process of
pledges would have been forth-
prepared the Gannett Foundation
community consultation with the
coming.
grant application also allocated
members of the Valley Youth Coali-
The National Alliance of Business
funds to a variety of youth recrea-
tion as well as other local leaders,
also received a portion of the Gan-
tional activities, as well as to the
that, resulted in a grant application
nett Foundation grant to support its
coordinating efforts of the Phoenix
to the Gannett Foundation. This ap-
Youth Motivational Task Force.
Community Council, a non-profit
plication requested the maximum
Bob Amos explains this other facet
agency engaged in community plan-
award of $150,000 for Phoenix to
of the NAB program as a group of
ning and service referral.
support and reinforce a broad range
over 100 volunteer "witnesses",
of youth programs. Over 20 commu-
many from minority groups, who
nity leaders-ranging from Mayor
dropped out of schol, went back
Prospects
Hance and Reuben Ortega, Chief of
later, and subsequently became suc-
Police, to Lucy Quiroz, Chairman
cessful. The witnesses speak to sev-
The Gannett Foundation CPP
of the Chicanos por La Causa Jobs
eral thousand dropout-prone youth
grant, while enormously useful in
for Youth Committee, and Bob
annually to convince them to remain
supporting the work of a number of
Bartlett, local director of the
in school.
agencies, obviously does not address
National Alliance of Business-
Other allocations from the grant
the long-term funding needs for
wrote letters of support for the pro-
for job training and employment in-
youth training and employment
posal. The full $150,000 was granted
cluded: $10,000 to Chicanos por La
programs in the Phoenix area. Nor
to Phoenix in December, 1981.
Causa for classroom and on-the-job
is it meant to. No one in Phoenix ex-
training of Hispanic youth for em-
pects the Gannett Foundation to
Projects
ployment by La Causa's subsidiary,
continue funding local programs in-
Sun Sol, Inc.; $5,000 to the Phoenix
definitely and the amounts the
The highest priority identified
Urban League forhalf the operating
Foundation is able to provide are
through the community consulta-
budget of "Youth United", a publi-
very limited in relation to the overall
tion process was to provide employ-
cation by and for black youth that
spending of the agencies involved.
ment opportunities for youth. Given
the magnitude of cutbacks in federal
funds for employment training, the
The highest priority identified through the community
Gannett Foundation's private initia-
consultation process in Phoenix was to provide
tive filled a critical need in maintain-
ing community services.
employment opportunities for youth.
A portion of the Gannet Founda-
tion funds went to the National Alli-
ance of Business to underwrite a
had been discontinued due to cuts in
The true significance of the Com-
coordinator for summer job place-
federal funding; $15,000 to Call-A-
munity Priorities Program, as it has
ment in 550 area companies. Ac-
Teen to maintain a coordinator for
operated in Phoenix and other cit-
cording to Bob Amos, Chairman of
their summer youth employment
ies, lies not in the amount of money
the Phoenix NAB, the summer
program; $10,000 to the Youth
allocated during a particular year
Youth Campaign began with a week
Service Bureau, a non-profit agency
but rather in the stimulus provided
long phone bank to over 3,000 local
formerly part of the Maricopa
to the formation of long-term com-
employers in May, 1982 seeking
County government, to train 100
munity partnership efforts. In this
pledges of summer jobs. These
agency representatives in youth
regard, according to Theron Weldy,
pledges were followed up by an ex-
counseling and development; and
director of the Youth Services Bu-
ecutive loaned from the Arizona De-
$15,000 to the Bostrum Alternative
reau, the Gannett Foundation initi-
COMMUNITY ACTION Vol. I, No. 4, 1982
29
NOTES FROM THE FIELD
ative was critical because it set "an
city's school board as well as the
The industrial electricity teacher
example of behavior for the corpo-
Education Fund. After less than
wrote, "We discussed the state-of-
rate sector" in Phoenix. Thus, while
three years, 25 companies and or-
the-art of implications for the fu-
a permanent partnership structure
ganizations and 20 schools are
ture. We also discussed the quality
has not yet emerged in Phoenix, the
participating.
of vocational students available for
area does seem to enjoy a substantial
employment. There is an expanding
headstart in devising a coordinated
Programs
need for trained electrical tradesmen
approach to youth problems among
and women
Westinghouse is en-
business, government, and volun-
The operation of the Pittsburgh
gaged in technological updating for
tary organizations.
partnership is illustrated by the pair-
their employees and I believe we
ing of Brashear High School and
have much to offer in trained per-
Westinghouse Electric. The school
sonnel and possible use of our
Pittsburgh
has a huge new building with a fully
facilities."
equipped television studio, com-
After a shadow day at Westing-
Pittsburgh's widely acclaimed
puter center, auto repair shop, and
house, an English teacher designed a
renaissance is attributable in part to
drycleaning plant. Brashear's part-
mini-course on technical writing for
a long history of corporate-public
nership coordinator, distributive ed-
Brashear's annual "Superbowl of
sector cooperation. The Allegheny
ucation teacher, Judy Brant, and its
Problem Solving". Westinghouse
Conference on Community Devel-
principal, Gene Khorey, are enthusi-
employees are helping design the
opment with its board of corporate
astic about Brashear's partnership
superbowl graphics and several will
and community leaders, has been a
with Westinghouse Electric.
serve as judges in the competition.
forum for this cooperation for 38
years. The Conference sees itself in
part as a leader in bringing private
sector resources into new areas and
Partnerships in Education involves pairing local
as a proving ground for new meth-
companies with public high schools to the mutual
ods of private initiatives.
Recognizing the adequacy of pub-
benefit of students, teachers, and employees.
lic school training as a critical com-
ponent of urban well-being, the
Conference decided in 1978 to ele-
vate public education to a more
"Operation Shadow" has been
Both the Westinghouse employee
prominent position on its agenda.
among the most successful activities.
newsletter and the Brashear news-
As a successful catalyst of private
Brashear faculty are paired with
paper regularly feature articles on
sector involvement in other arenas
Westinghouse employees in related
the partnership. One unexpected
of social concern, the Conference
fields and spend one work day
result of the publicity was an offer
was able to generate approximately
"shadowing" them, learning about
from a Westinghouse senior ac-
$1 million in corporate and private/
their jobs and their training require-
countant to present a program to
foundation contributions to endow
ments. For example, the industrial
Brashear students on factors neces-
its Education Fund, established in
electricity teacher was paired with
sary for a successful career. After the
1979. The Conference strategy is to
the superintendent of maintenance
presentation, he asked the students
foster school system improvements
of the powerhouse, and the crafts
to write an evaluation. He re-
through selective use of special pro-
teacher with metallurgists at the re-
sponded to these, writing a letter to
grams and policy development assis-
search-and-development lab.
each student, and giving prizes to the
tance.
Teachers derived many insights
three who wrote the best evalua-
One of its most effective pro-
which they could use in their classes.
tions. He has since offered addi-
grams, Partnerships in Education,
"Many of the tools and pieces of
tional time for one-on-one career
involves pairing local companies
equipment were very similar to tools
counseling with students.
with public high schools to the
used in our jewelry studio I
am
mutual benefit of students, teach-
now very aware of many applica-
Prospects
ers, and employees. The program is
tions of our metalcraft experience
supported by the Greater Pittsburgh
here at Brashear with industry,"
The participants in the Allegheny
Chamber of Commerce and the
wrote the crafts teacher.
Conference partnership effort em-
30
COMMUNITY ACTION Vol. I, No. 4. 1982
NOTES FROM THE FIELD
phasize that building relationships
New York City
Jobs for Youth
between business and education
isn't easy, but once established, the
For the last two years, the New
partnerships are mutually reward-
York City Partnership has operated
The Partnership launched its first
ing. One lesson from experience is
one of the largest and most effective
fully coordinated effort to find sum-
that schools must plan and initiate
summer youth employment pro-
mer placements for youth in 1981.
requests for assistance. Corpora-
grams in the nation. Lauded by
With a grant of $100,000 from the
tions want to help without intrud-
President Reagan as a leading
Astor Foundation, "Summer Jobs
ing. They rely on the schools to set
example of private sector initiative,
for Youth/1981" produced 14,000
priorities and get the ball rolling.
the Partnership's jobs program com-
job slots for poor youth between the
Second, partnerships in education
bines the resources of business, gov-
ages of 16 and 21, and 9,300 actual
rest upon strong personal relation-
ernment, and voluntary organiza-
placements. This doubled previous
ships. Time, patience, and frequent
tions to locate summer positions
private efforts in the city. In 1982,
contacts are needed to overcome in-
herent differences in organizational
purpose and style. For example, per-
sonal relationships between Bra-
For the last two years, the New York City Partnership
shear teachers and Westinghouse
personnel forged through shadow
has operated one of the largest and most effective
days were an indispensable element
summer youth employment programs in the nation.
in the partnership. Finally, neither
the schools nor the corporation
should approach partnership as a
gift of charity from the corporate
and to fill them with disadvantaged
20,000 jobs were identified and
side. Both parties have something to
youth.
15,000 were actually filled. Program
gain. Beyond the pure public rela-
The New York City Partnership
costs increased to $150,000.
tions value, corporations may gain
was formed in late 1979 as a collabo-
The bulk of job placements for
access to a better-trained pool of re-
ration of two organizations that had
1982 were in the fields of food serv-
liable entry-level labor. Partner-
long sought a closer working rela-
ice, retailing, and recreation coun-
ships can also boost morale. As
tionship-the New York Chamber
seling. Sixty-four percent of the jobs
Michaele Camp, Westinghouse
of Commerce and the Economic De-
were located in Manhattan, with the
partnership coordinator, notes,
velopment Council. It grew out of a
rest spread relatively evenly among
"Employees are often glad of an op-
realization by business leaders that
the other four boroughs. The jobs
portunity to go out and tell people
business was diluting its effective-
were for at least 20 hours per week
about what they do. Often there's no
ness in civic affairs by spreading its
for a minimum of seven weeks, and
one else to tell, and the interest of the
resources among overlapping and
paid at least the minimum wage of
students and their teachers is excel-
uncoordinated efforts. An entity
$3.35 per hour. Many jobs were for
lent for employee morale."
was needed to concentrate and
more than 20 hours per week. It is
The Allegheny Conference plans
direct the energies of the business
estimated by the Partnership that
to have partners for all the remain-
community toward the major issues
between $8 million and $11 million
ing high schools and middle schools
facing the city: youth employment,
dollars was put directly into the
during the 1982-1983 school year. It
mass transit, public safety, housing
pockets of economically disadvan-
is hoped that the program will be-
and economic development. The
taged youth, not to mention the in-
come so successful that the Board of
collaboration was cemented by an
valuable experience gained for
Education will take it over com-
umbrella organization, known as
future placement.
pletely. This would free resources in
SERVCO, which was created to
Each year, one corporation spon-
the Education Fund to support
offer a variety of administrative and
sors and coordinates the program
other new programs. Meanwhile,
program services to the Chamber
under the aegis of the New York
numerous other cities are experi-
and EDC, as well as to serve the
City Partnership. New York Tele-
menting with business-public school
framework for a broader partner-
phone directed the 1981 drive, Citi-
partnerships and it appears that the
ship structure in which additional
bank took responsibility for the
concept may be on its way to wide-
corporations could join efforts on
1982 effort, and Phillip Morris will
spread national acceptance.
specific programs.
conduct the campaign in 1983.
COMMUNITY ACTION Vol. I. No. 4, 1982
31
NOTES FROM THE FIELD
Planning for the Summer Jobs for
isfied with the program. Eighty-
There is growing cooperation be-
Youth program begins in mid-
seven percent of company execu-
tween the city's Department of
December. In January, a public re-
tives indicated that they will con-
Manpower and the Partnership ef-
lations campaign is launched. From
tinue to participate on an annual
fort. The Manpower Department
February to March, young people
basis. However, many feel that the
operates a large CETA program for
register for the program. From
student workers should be better
private sector training and direct
March to June, job pledges are
screened for proper placement and
placement. In 1981, 13,000 people
obtained.
better prepared for work. Job site
were placed directly into private
Registration is a cooperative ef-
supervisors generally rated the work
business, while another 17,000 were
fort of business, government, and
of summer employees as average or
taken into training for subsequent
voluntary groups. The city's Man-
above average, but felt some im-
job placement. It is clear to all in-
power Department turns over the
provement in attitudes and behavior
volved that the complementary ef-
excess of registrants for its own
was warranted.
forts of the Manpower Department
larger public sector summer em-
Young workers were overwhelm-
and the Partnership's Summer Jobs
ployment program to the Partner-
ingly positive about the program
for Youth program must be care-
ship. The City University System
and indicated willingness to accept
fully coordinated.
(CUNY) also supplies a printout of
the same job in succeeding summers.
Similarly, the collaboration be-
eligible students. And finally, com-
The program staff for 1981 felt the
tween the Partnership and the city's
munity based organizations are en-
program generally had gone well,
Department of Education is grow-
couraged to send in applications.
but identified key areas for improve-
ing. The Department of Education
Securing job pledges is largely a
ment. The most pressing need for
already supplies a large portion of
corporate sector responsibility.
improved organization of the an-
the summer job slots filled by the
Partnership through the Coopera-
tive Education program. Increased
collaboration is evident in the recent
formation of an Education Task
While business can play a vital role in stimulating job
Force within the New York City
placements and youth employment, it cannot do the
Partnership, which will serve as the
vehicle for long-range cooperation
job alone any more than government or the
between the Education Department
voluntary sector can.
and private business in preparing
New York youth for the job market
of the next decade.
The importance of the voluntary
sector in the summer jobs effort is
Large companies are solicited for
nual program is automation of the
indicated by the fact that over 4,000
slots by mailings and telephone fol-
matching process between regis-
job placements in 1982 were in non-
low-ups. The annual sponsoring
trants and job pledges.
profit agencies. In addition, a num-
corporation promotes the program
ber of private universities and com-
to small businesses in the neighbor-
munity development organizations
hoods of New York through its own
Prospects
played key roles in the planning and
marketing apparatus. The City De-
execution of the 1982 summer
partment of Education also organ-
campaign.
izes job pledges (7,000 in 1982),
Plans for the Partnership's 1983
What this indicates is that while
which it contributes to the Partner-
Summer Jobs for Youth campaign
business can play a vital role in stim-
ship Program. Finally, the Private
are already far advanced and a basic
ulating job placements and youth
Industry Council sponsors a certain
commitment has been made to con-
employment, it cannot do the job
number of job placements through
tinue the program over the indefi-
alone any more than government or
its own apparatus which become
nite future. The prime direction for
the voluntary sector can. Collabora-
part of the Partnership effort.
future evolution appears to be one
tion and coordination of limited re-
A careful evaluation of the 1981
of ever closer collaboration and co-
sources is essential if we hope to
program demonstrates that partici-
ordination with government and
address the problems of youth
pating employers were generally sat-
non-profit organizations.
effectively.
32
COMMUNITY ACTION Vol. 1. No. 4, 1982
RECENT LITERATURE
Development
network of civic organizations. This
for example, Pastora Cafferty and
background is then used as the basis
William McCready highlight the im-
Duet
for a narrative summary of three or
portance of the physical and social
four major projects, which illustrate
proximity of the business commu-
partnerships in action. The list of
nity operating in the Loop and the
projects examined includes many of
particular political style and
by
the best known and most successful
approach of Mayor Richard Daley.
Nelson Rosenbaum
urban redevelopment projects of the
Neither of these factors is easily rep-
last two decades: Niccolet Mall in
licable. In Minneapolis/St. Paul,
Minneapolis, Harbor Place in Balti-
according to John Brandl and
Public-Private Partnership in
more, Pittsburgh's Gateway Center,
Ronnie Brooks, a particular ethos of
American Cities. Edited by Scott
the Reunion Complex in Dallas.
business responsibility for the com-
Fosler and Renee Berger (Lexing-
From the accumulated experience
munity has pervaded the metropoli-
of the seven cities, the editors derive
ton, MA: Lexington Books, 1982);
tan area for many decades has been
363 pp.; $24.95, cloth; $12.50, paper.
two major findings about "what
passed on to succeeding generations
works and why". First, successful
of business executives through a
This volume of edited essays,
public-private partnerships rest
carefully-nurtured set of institutions
sponsored by the Committee on
upon a set of "civic foundations", in-
and processes. While other cities
Economic Development, examines
cluding a positive civic culture that
might wish to emulate the Twin
public-private partnerships in seven
encourages widespread participa-
Cities, there is no simple formula or
American cities: Chicago, Pitts-
tion in public affairs, a commonly
action through which such an ethos
accepted vision of the community's
can be created.
burgh, Baltimore, Minneapolis/St.
Paul, Portland, Atlanta, and Dallas.
future, an effective group of civic
This is not to say that the seven
The cities were selected as "success
organizations, a network of infor-
cities studied are unique in their
stories" of sustained working rela-
mal communication among key
ability to generate public-private
tionships between the public and
leaders, and continuity in key
partnerships. Many other cities have
private sectors. While the volume's
aspects of public policy. Second,
accomplished revitalization of their
building public-private partnerships
downtown business districts
stated objective is to examine pub-
lic-private interaction across a wide
requires "effective leadership".
through the creative leveraging of
range of problems-economic stag-
Leadership may come from the pub-
public and private resources. Yet the
nation, malfunctioning public serv-
lic sector, from the private sector, or
case study cities do seem to benefit
from both, but some set of indi-
ices, neighborhood deterioration,
from an unusually strong set of cir-
viduals and institutions must take
cumstances which facilitate sus-
etc.-the essays focus principally
upon downtown revitalization and
the entrepreneurial, initiating role in
tained partnership efforts. Other
real estate development. This focus
getting matters off the ground.
jurisdictions can certainly admire
is hardly surprising since most pub-
lic-private cooperation over the past
Public-private partnerships are rooted in historical
two decades has occurred in this
arena.
circumstances and idiosyncracies of leadership and
The essays follow a common for-
personality that cannot be engineered.
mat established by the editors. Each
author initially analyzes the local
context of partnership efforts: the
While these findings may seem
these cities, but they cannot neces-
historical development of the city,
obvious, they do point to an impor-
sarily aspire to be like them.
its demographic composition, its
tant conclusion that is not drawn
One problem with this volume is
economic base and changing eco-
out by the editors: public-private
that it may confuse rather than
nomic character, its political system
partnerships are not easily repli-
clarify the concept of public-private
and government structure, and its
cable from city to city. Rather, they
partnership. Many of the projects
are rooted in historical circum-
examined hardly seem to fall within
stances and idiosyncracies of leader-
the category of partnership, in the
Nelson Rosenbaum is President of the
ship and personality that cannot be
sense that the partners share the
Center for Responsive Governance and
engineered by any explicit policy
risks and rewards of a particular
Editor of this Journal.
changes. In their essay on Chicago,
course of action. In Baltimore, for
33
COMMUNITY ACTION Vol. 1. No. 4, 1982
RECENT LITERATURE
example, the development of
ter development, the city explicitly
fail to highlight and draw out the
Charles Center was almost entirely a
sought a certain number of jobs for
significance of the different
privately planned and supported
minority residents in the Harbor
approaches taken to resolving this
venture. While the City of Baltimore
Place project. This type of complex,
issue.
cooperated with supportive zoning
mutually-rewarding project that
Despite its conceptual ambiguity
changes and infrastructure improve-
neither the public nor private sectors
and its failure to come to grips
ments, characterizing the Charles
can pull off alone represents the
squarely with the question of repli-
Center redevelopment as a partner-
cutting edge of the partnership
cability from city to city, this volume
ship seems to be stretching the con-
approach.
is a useful catalogue of major public-
cept. Similar conceptual ambiguity
One of the significant issues that
private revitalization efforts in
attends another of the Baltimore
arose in the development of Harbor
American cities. There are a wealth
projects-the development of Cold-
Place as well as in many of the other
of practical lessons to be learned
spring Newtown. This project was
projects examined in this volume is
from careful examination of each
planned by the city and financed al-
how to bring citizen participation
case study essay. The inexperienced
most entirely from public sources,
and neighborhood involvement into
"civic entrepreneur" will certainly
including city revenues, HUD
the partnership process. The opera-
wish to proceed with caution after
grants, EDA loans, and tax-exempt
tion of city government has changed
absorbing this material. The volume
mortgage-bond financing. The de-
dramatically since the 1950s and
also contains a good deal of political
veloper of the project was brought in
1960s. No longer can the top leaders
insight and personality portraiture
on a strictly-defined contractual
of city government commit the juris-
that makes for lively reading. In
basis as builder and general con-
diction authoritatively without con-
sum, the book will occupy a signifi-
tractor, with profits and fees care-
sulting the citizenry and involving
cant place on the short list of vol-
fully specified. When the construc-
neighborhood residents in the plan-
umes concerned with public-private
tion costs ballooned, the city took
ning and negotiating process. This
partnerships in America.
the loss. Again, it seems to stretch
challenge has been handled with dif-
the conventional meaning of the
fering degrees of success in the seven
term to call Coldspring a public-
case study cities. In Portland and
Corporate-
private partnership.
Minneapolis/St. Paul, for example,
Community
Consensus
by Richard Rich
One of the significant issues is how to bring citizen
participation and neighborhood involvement into
Partners by Ranae Hanson and
the partnership process.
John Mc Namara (Minneapolis: The
Dayton Hudson Foundation, 1981),
218 pp., $15.00 paper.
Partners examines public-private
neighborhood revitalization efforts
By contrast, perhaps the best ex-
citizens were brought into the pro-
from the perspective of the commu-
ample of a true public-private part-
cess with great sensitivity and little
nity. The book is presented as a
nership is also found in Baltimore:
business opposition during the
practical "how-to-do-it" description
the Harbor Place/Inner Harbor
1970s. In Atlanta, on the other
of public-private partnerships, but it
project. Here, public and private
hand, the business community be-
contains a strong dose of "cheer-
funds in substantial amounts are
came estranged from a mayor who
leading" as well. There is a good deal
mingled in the same project and
was perceived as "favoring" the
of philosophy and rhetoric designed
both public and private sectors
neighborhoods over the interests of
to pursuade the reluctant or skep-
stand to gain directly from the proj-
downtown. This perception frus-
tical community member that neigh-
ect. For example, in contrast to its
trated the progress of partnership
Richard C. Rich is Deputy Editor of the
passive posture in the Charles Cen-
efforts. Unfortunately, the editors
Journal of Community Action.
COMMUNITY ACTION Vol. 1, No. 4, 1982
34
RECENT LITERATURE
borhood revitalization is possible
rehabilitating the housing stock,
apolis case can read only the more
through the cooperation of private
and mounting effective evaluations
general discussions. Yet, the case
firms, neighborhood organizations,
of the organization and its projects.
study is there to provide concrete
and local government. It is written
Within each of these larger topics
illustrations of the principles pre-
to be read by anyone interested in
there are discussions of subjects like-
sented in the more abstract chapters.
community development, but seems
ly to be of great interest to neighbor-
especially aimed at leaders and ac-
hood activists. There are, for
For all these positive features,
Partners is not without its flaws and
tivists in neighborhood organiza-
example, informative treatments of
limitations. First, if breadth is its
tions which have not yet embarked
community crime prevention, the
structural relationships among staff
chief strength, its principal weak-
on serious development efforts.
ness is the mirror image of that
Funded by the Dayton-Hudson
and board members, and strategies
Foundation, this large and hand-
for promoting housing renovation.
breadth superficiality. The book is
some book seeks to educate readers
Most sections include some highly
not an analysis of partnership as a
in the basics of public-private part-
concrete recommendations, check
strategy for neighborhood develop-
nerships. While examples are drawn
lists of items to be concerned with,
ment, but an argument for it. Thus,
from all over the U.S., the primary
decision rules, and transferable
the authors make no serious attempt
vehicle for presenting these princi-
tools like sample forms used in resi-
to evaluate the impact of the part-
ples is an extended and detailed case
dent surveys and housing stock
nership arrangement on the neigh-
study of the partnership among the
borhood organization or the course
assessments.
Dayton-Hudson Corporation, the
This broad coverage is made even
of development in the neighbor-
hood. There is little or no considera-
City of Minneapolis, and the Whit-
more useful by the nearly flawless
tier Neighborhood Alliance. The
organization of the book. Informa-
tion of alternatives to the partner-
authors move smoothly back and
tion is presented in a step-by-step
ship approach, or of opportunities
forth between general rules and the
fashion allowing neighborhood
foregone in order to take that ap-
specifics of the case study. The
associations at all stages of develop-
proach. There is no analysis of who
benefited and who lost from the
Whittier story is told in a historical
ment to take from it only that which
fashion which enables readers to
they most need. Activists might ex-
actions of the partnership, and no
critical assessment of whose inter-
visualize the tranformation of the
pect to return to the book again and
neighborhood. The readibilty of the
again as their organization under-
ests were served in the redevelop-
book is enhanced by an extensive ar-
takes new projects or moves to new
ment process.
ray of topical photos (many from
stages of development.
The Whittier/Dayton-Hudson/
the Minneapolis area), planning
In many ways, Partners is two
Minneapolis partnership may well
maps, and colorful and functional
books in one, a general guide to pub-
have been a generally positive ex-
graphics.
lic-private partnerships, and a re-
perience for all concerned, and there
may be good reasons to expect ele-
ments of that experience to be repro-
Dayton-Hudson believed from the start that there
duced in other communities. There
were benefits to be gained by the corporation in
are, however, also reasons to doubt
supporting neighborhood revitalization.
that the Whittier experience can be
duplicated elsewhere. Not only are
there questions about the unique-
The major strength of the book is
port on the Whittier experience.
ness of the Whittier neighborhood
in its comprehensiveness. Every
Each section is divided into two
and the political culture of the Twin
major issue likely to confront a
parts; one general and one on Whit-
Cities region where business has
neighborhood seeking to stimulate
tier. There is, for example, a chapter
long displayed a strong civic con-
and manage revitalization is ad-
on the neighborhood planning pro-
science, but, far more importantly,
dressed. Principal topics include
cess or housing rehabilitation fol-
there is the crucial point that the
how to form and structure a neigh-
lowed by a chapter on how the Whit-
Dayton-Hudson Corporation, not
borhood organization, how to es-
tier neighborhood developed its
the neighborhood, initiated the
tablish a working partnership, plan-
plan or sought ot revitalize its hous-
partnership.
ning for neighborhood revitaliza-
ing stock. The advantage to this is
Dayton-Hudson manifested an
tion, providing human services,
that those readers who do not want
enlightened attitude toward its re-
stimulating economic development,
to follow the details of the Minne-
lationship with the community, and
35
COMMUNITY ACTION Vol. 1, No. 4, 1982
RECENT LITERATURE
believed from the outset that there
leaders are thus likely to encounter
oping the level of formal structure
were benefits to be gained by the
more difficulty in both establishing
and the capacity for planning and
corporation in supporting neighbor-
and maintaining partnerships with
project implementation described
hood revitalization. Indeed, there
business than this book leads them
by the authors requires a massive
was even a moral conviction that the
to anticipate, and will probably find
investment of time, energy, and
firm had a moral responsibility to
it necessary to orchestrate small
money. Many community groups
invest in its community. Moreover,
grants from many firms to forge a
are simply unable to mobilize this
it was apparently willing to trust the
partnership at all, and to avoid ex-
kind of commitment from local
neighborhood association to make
cessive dependence on a single
residents.
almost all decisions about the direc-
benefactor.
Second, becoming bureaucratized
tion the development process was to
Similarly, the cooperation which
in order to deal with business and
take.
Whittier enjoyed from the city gov-
government is directly contrary to
the widespread Alinsky approach to
community organization. This
school of organizing holds that
The neighborhood must become an institution if it is
neighborhoods (especially low in-
to enter a successful partnership.
come and minority neighborhoods)
obtain whatever measure of power
they have by remaining formally un-
Few neighborhood groups are
ernment was probably largely lever-
organized and unpredictable while
likely to be in this fortunate posi-
aged by Dayton-Hudson's strong
building a strong social network to
tion. They are more likely to find it
support, and facilitated by Minne-
support direct action. To commu-
necessary to convince businesses of
apolis' commitment to the neighbor-
nity organizers of this school, part-
the wisdom of strong support for
hood concept. Other community
nership means that community peo-
community development. The
groups may well encounter more
ple must accept government's and
authors of Partners make the case
hostile and hard-pressed city gov-
businesses' definition of neighbor-
for business involvement in their
ernments.
hood problems. This can prevent
first chapter, and there clearly are
A final limitation of the book is
local organizations from addressing
benefits for firms in helping their
that the approach it suggests is inap-
the root causes of decline and disin-
communities. These benefits, how-
propriate for many neighborhoods.
vestment. Obviously, Partners will
ever, are very diffuse and often sym-
It demands more than many are
be of little utility to organizations
bolic. Whether they are realized at
ready for or willing to undertake.
that take this perspective.
all depends on the success of a very
Throughout the book a major theme
Despite these limitations, Part-
delicate and complex neighborhood
is that the neighborhood must be-
ners is an important contribution to
revitalization process, and the "pay
come an institution if it is to enter
the bookshelf of any neighborhood
back period" for corporate invest-
into a successful partnership. Busi-
organization or any business leader
ments in community development
nesses and governments must be
or public official seeking to enter
is, even under the best conditions,
able to deal with some entity which
into relations with such organiza-
quite lengthy.
speaks for the neighborhood, can
tions. Even those organizations
commit it to a course of action, and
which cannot emulate the model of a
Corporate officers are thus likely
can be held accountable for funds
highly developed neighborhood
to regard support for neighborhood
and legal obligations. The commu-
association set out in the book can
improvements as more a philan-
nity thus needs a stable, rationally
benefit from specific advice con-
thropic activity than a sound inv st-
structured organization with sub-
tained in it. If the purpose of Part-
ment. Where they can be persua led
stantial popular support and admin-
ners is to stimulate creative thinking
to join because of anticipated bene-
istrative capacity.
about solving neighborhood prob-
fits to the company (rather than out
This is obviously a sound conclu-
lems through the illustration of
of a perceived moral responsibility
sion, and I would agree that those
creative organizational approaches,
of the firm to the community), they
neighborhoods which become insti-
it is well suited to that purpose. In
may wish to exercise a good deal of
tutionalized will accomplish a great
fact, perhaps its greatest contribu-
control over how their funds are
deal more than those that do not.
tion is in dispelling the image many
used in order to insure the efficacy of
There are, however, two counter-
hold of neighborhood revitalization
their investment. Neighborhood
veiling considerations. First, devel-
as limited to planting flowers and
COMMUNITY ACTION Vol. 1, No. 4, 1982
36
RECENT LITERATURE
picking up trash. Partners shows
The philosophical essay in this
neighborhood organizations argues
that neighborhood associations,
volume is by William Schambra,
that mediating structures, or indige-
working with business and govern-
who addresses the obvious question
nous social arrangements, are more
ment, can mount sophisticated at-
for private initiatives: how can
effective agents of social welfare
tacks on basic social and economic
social obligation be nurtured in
than the "New Class' of profes-
problems through complex legal, fi-
nancial, and social arrangements. It
may not provide a blueprint for
every community, but it certainly
offers an inspiration for the forma-
Our American beginnings were as much filled with
tion of community partnerships in
Biblical sources of obligation to the poor as they were
many areas.
with the creed of self-interest.
Who Needs
America when American life is
sionals and experts which has grown
Government?
rooted in a tradition of self-interest.
since the New Deal. According to
Social obligation has to struggle
Woodson, changing emphasis from
against this basic tendency.
government financed professional
by
Schambra argues that the liberal
agencies to private non-profit neigh-
approach of building social obliga-
borhood initiatives would result in
Milton Kotler
tion upon a sense of national com-
vastly improved services. But who
munity which transcends narrow
would finance these services? With-
self-interest, has collapsed after fifty
out some degree of government sup-
Meeting Human Needs. Edited by
years. President Reagan is attempt-
port it is not clear what neighbor-
Jack A. Meyer, (Washington, D.C.,
ing to reconstruct social obligation
hood organizations could accom-
American Enterprise Institute,
upon another ground-voluntary
plish. Woodson offers no new lode
1982), 469 pp., $13.95 paper.
action and local community. He
of private sector funding to neigh-
walks in the shoes of Alexis De-
borhood groups.
Toqueville. The President's pro-
Woodson suggests that neighbor-
Jack Meyer introduces this vol-
gram of private sector initiatives is
hood organizations can meet com-
ume of essays with the careful dis-
an attempt to stimulate social obli-
munity needs if government will
claimer that private sector initiatives
gation upon this ground.
remove "barriers" to service and
are not a compensatory fund for lost
But what fuels voluntarism as a
development. Granted that zoning
federal dollars. Nor, he maintains, is
basis of obligation? Our American
barriers are often a needless hin-
it an article of faith that the private
beginnings were as much filled with
drance to starting a day care center,
sector can outperform government
Biblical sources of obligation to the
it still takes money to operate the
in every aspect of public service and
poor as they were with the creed of
facility. How can women pay $2 an
development. Instead, he stakes out
self-interest. In fact, those same
hour for day care when they are
the "sober mission of highlighting
Biblical sources implanted obliga-
earning $3.20 an hour before taxes?
the potential of private sector
tion in the liberal vision of national
Nor does it contribute to a serious
approaches to social problems". To
community. Never once does
discussion of community economic
examine this theme in a number of
Schambra analyze the contempo-
development to suggest that the lack
fields, the American Enterprise In-
rary religious basis for voluntarism
of access to capital and credit is a
stitute summoned an impressive col-
and social obligation. However
"barrier" imposed by government.
legium of social analysts.
weak that tradition may be in
What law could be removed that
modern times, lacking a genuine
would result in a new gush of capital
Biblical passion for the poor, the
and credit to poor communities?
Milton Kotler is Vice President of the Center
proposed alternative has little
Poor communities need positive
for Responsive Governance and Managing
chance of success.
public and private sector interven-
Editor of this Journal.
Robert Woodson's essay on
tion to insure that credit and capital
37
COMMUNITY ACTION Vol. 1, No. 4, 1982
RECENT LITERATURE
go there. Indeed, that is the core idea
health cost containment. The basic
Tax Equity and Fiscal Responsibil-
of the community partnerships con-
theme running through most of the
ity Act of 1982, much talk emanated
cept that the President's Task Force
essays is the same as that in the
from the Reagan White House
on Private Sector Initiatives is
chapters by Woodson and Pryde:
about the prospect of grateful cor-
advocating.
our society would be far better off if
porations plowing portions of their
The debate over the relative
government left the fulfillment of
new tax savings into benevolent and
merits of "New Class" professional-
pharmaceutical development and
altruistic purposes.
ism vis a vis neighborhood voluntar-
social needs to private mediating
James S. Rosebush, then a presi-
ism is a useful framework for discus-
structures. While the evidence pre-
dential assistant in charge of private
sion, but Woodson confuses the
sented to support this proposition is
sector initiatives, said in a Septem-
issue by assuming that neighbor-
certainly not overwhelming, the
ber 1981 interview, that the business
hood organizations neither need nor
thesis is at least worthy of serious
community, in effect, was on notice
welcome outside financial support.
debate.
to demonstrate a new surge of public
A related article on community
Meeting Human Needs reflects a
spiritedness. "The tax provisions are
economic development by Paul
profound distrust of the role of gov-
well known," said Rosebush. "The
Pryde offers a number of sensible
ernment, extending not only to the
people will be watching to see if it
suggestions for economic growth in
federal government, but to state and
means more jobs or safer and more
distressed cities. He draws on David
local government as well. The vol-
sound communities. We won't point
Birch's work on the relation of small
ume thus forms a challenging coun-
out the bad performances, but I
business to employment growth to
terpoint to the concept of commu-
think the American people will."
stress the importance of assisting
nity partnerships in which state and
A year later, Rosebush has moved
new firms with tax incentives such as
local governments play a promi-
on to head the first lady's staff and
allowing investments in new firms to
nent, active role. Those who wish to
Reagan has won passage of new tax
be written off by investors in the
consider the future of our society in
legislation imposing some $48.6 bil-
year the investment is made, defer-
terms of a highly-restricted govern-
lion in new business taxes over the
ring capital gains taxes on such
ment role, will find this volume a
next three years-wiping out more
investments so long as proceeds are
valuable source of ideas.
than half the tax savings conferred
reinvested in similar firms, and tar-
upon the business community the
geting industrial bonds to specific
previous year.
areas. He also wisely advises that the
In the wake of Reagan's second
development process must be a
tax measure, speculation about the
managed operation.
future of corporate philanthropy is
The problem in Pryde's argument
The Limits
likely to become considerably more
is his failure to focus on the only unit
guarded and realistic. A timely
of government that has a real
incentive for community develop-
of Charity
guide for sober assessment of the
challenges and limitations facing
ment. That unit is the distressed city.
business givers has been provided by
Community development must rest
the Washington-based Council on
on the active public entrepreneur-
by
Foundations in its June, 1982 re-
ship of city government, working in
Dick Kirschten
port, Corporate Philanthropy.
constructive partnerships with busi-
The report is useful in providing
ness. UDAG is a concrete example.
an independent perspective on
That kind of public-private partner-
Corporate Philanthropy (Washing-
social responsibility, as viewed from
ship has to be amplified and encour-
ton, D.C.: The Council on Founda-
the executive suite or the corporate
aged. It is not enough to simply
tions, 1982) 160 pp., $12 paper.
boardroom. It helps to separate the
enact tax incentive for central city
issue from the ups and downs of the
investment.
In the brief but euphoric interim
"Reaganomics" program. The re-
There are many other contribu-
between passage of the Economic
port makes clear that corporate
tions in this massive volume cover-
Recovery Tax Act of 1981 and the
philanthropy is neither a by-product
ing private sector initiatives in such
of supply side tax cuts nor a panacea
familiar areas as transportation,
for David Stockman budget cuts.
housing and education as well as
Dick Kirschten covers the White House for
Long before White House image
some less familiar areas such as
the National Journal.
makers thought of creating an office
COMMUNITY ACTION Vol. 1, No. 4, 1982
38
RECENT LITERATURE
of private sector initiatives, enlight-
own and foreign governments re-
Avoy raises a point that is likely to
ened self-interest had drawn an in-
sponsibly, and acts in the public sec-
trouble many corporate executives.
creasing number of business con-
tor responsibly."
"Corporations should not do
cerns into the field of charitable
By no means the least of the cor-
what is better done by the political
good works. In one of some three
poration's charitable contributions
system," he writes. "The corpora-
dozen essays in the Council's report,
is the influence it does or does not
tion is structured
to
maximize
Exxon Corp. chairman Clifton C.
exert over the activities of its em-
the return on investment to share-
Garvin, Jr. points out that "con-
ployees. Ira S. Hirschfield, execu-
holders. It is undemocratic in its de-
tributions by U.S. businesses and
tive director of the Levi-Strauss
cision-making and legally protected
corporations are the fastest growing
Foundation, discusses company
from most judicial second-guessing
segment of private philanthropy.
programs designed to engage
of its business judgment
Any
Since 1970, annual giving by U.S.
workers in community volunteer
attempt to democratize the corpora-
corporations has increased 220 per
programs as well as incentives to in-
tion would undermine its pursuit of
cent
Indeed, since 1979 corpo-
crease cash contributions by em-
economic objectives."
rate contributions have exceeded
ployees. Hirschfield stresses the
Among those who dispute Mac-
those of foundations for the first
importance of strengthening "social
Avoy's argument as shortsighted is
time since the 1950s."
networks and employees' awareness
James F. Bere, chairman and chief
executive officer of Borg-Warner
Corp. Bere writes, "As business-
By no means the least of the corporation's charitable
men, we understand that corpora-
tions and society are tightly inter-
contributions is the influence it does or does not exert
woven. Unless we intensify our long-
over the activities of its employees.
term social efforts, our own viability
may be threatened." And, rather
than fearing democratization of the
Despite that healthy rate of
of community concerns." He makes
corporate decision-making process,
growth, the report points out that
a strong argument for involving
Bere advocates it.
only one-fourth of the nation's cor-
employees in corporate decisions as
The Borg-Warner official argues
porations engage in charitable
to which charitable causes to
that corporate philanthropy must be
giving. It also points out that busi-
support.
expanded beyond the "old boy net-
ness giving-$2.7 billion in 1980
Hirschfield and other contribu-
work" that used to concentrate gifts
(and $3 billion in 1981)-amounts
tors to the report touch upon the
among "a relatively few outlets-
to only 5.6 per cent of total charita-
sensitive issue of accountability for
schools, museums, symphonies,
ble contributions, the vastest por-
the difficult choices that must be
hospitals." He calls for "risk-taking"
tion (nearly 85 per cent) of which
made among various claimants for
in the dispensation of corporate gifts
comes from individuals.
both corporate contributions and
in order to foster change and inno-
However, as Council of Founda-
the individual contributions that are
vation. He argues that it is impor-
tions president James A. Joseph
made through company charity
tant to support newer organizations
notes in his foreward to the report,
campaigns. Hirschfield also notes
that often have difficulty gaining
counting the cash receipts is too nar-
that some companies promote indi-
membership in traditional distribu-
row a view of the corporate sector's
vidual giving among their workers
tion networks such as the United
contribution to the well-being of the
by providing matching gifts.
Way.
community. "Corporate philan-
The question of the corporation's
"Executives are uncomfortable
thropy," writes Joseph, "is only one
accountability for the disposition of
with social service risk-taking, Bere
kind of initiative from the private
philanthropic largesse is identified
writes. "They avoid innovative or
sector that can help alleviate social
as a red flag issue by Yale University
dramatic approaches, choosing in-
problems, extend social benefits,
economist Paul W. MacAvoy who
stead to contribute to established
and contribute to desirable social
writes in the report that corpora-
causes. That's a mistake."
change. A responsible corporation
tions "should only pursue those
C. William Verity, the former
is one that locates a site responsibly,
social objectives that are consistent
Armco, Inc., chief executive, who
produces goods or delivers services
with long-term profit goals." Al-
now heads President Reagan's task
responsibly, sets prices responsibly,
though his is a minority view among
force on private sector initiatives,
deals with local communities and its
the report's various essayists, Mac-
challenges business leaders to
39
COMMUNITY ACTION Vol. 1, No. 4, 1982
RECENT LITERATURE
broaden the philanthropic decision-
cate that federal budget cuts from
philanthropic area.
making process by joining in com-
social programs will total $131 bil-
William D. Ruckelshaus, senior
munity partnerships that include
lion over the next three years
vice president of the Weyerhauser
"leaders of religious, neighborhood,
Some estimates indicate that a 50-
Co., wrote somewhat presciently
and civic groups, labor unions,
fold increase in corporate donations
prior to this year's tax legislation
volunteer and educational organiza-
would be needed to fill the gap, and
that failure on the part of business to
tions, as well as leaders from
that's just not possible."
help fill unmet social needs could be
government."
But whether "the gap" can be
costly. "We may not only lose the
Throughout the report, one
filled or not, the consensus among
new-found tax and regulatory in-
senses an underlying theme of ap-
contributors to the report is that the
centives needed for prosperity, but
prehension that more is suddenly
business community will be well
also face a national environment far
being expected of the business com-
advised to do the very best that it can
more hostile to the success of free
munity in the way of charitable good
and to put more thought and effort
enterprise."
works than can possibly be deliv-
into getting the most out of those
ered. As Bere puts it, "reports indi-
investments it is able to make in the
COMMUNITY ACTION Vol. 1, No. 4, 1982
40
RESEARCH REPORTS
Local Government
and
Community Partnerships
by
Thomas J. Chmura
Private sector initiatives, voluntarism, corporate
together local government and business for the pur-
social responsbility and public/private partnerships
pose of fostering new public/private ventures. Through
are the new buzz words of the 1980s, as responsibility
this set of diverse activities, a number of important in-
for meeting many community needs shifts from federal
sights about the process and factors involved in build-
to local governments and public to private sectors.
ing local partnerships have been gained, particularly
However, one of these terms-public/private partner-
regarding the changing role of local governments.
ship-is qualitatively different from the others. For
What is the appropriate local government role in
some people, there seems to be a simplistic belief that
encouraging greater private sector involvement?
the private sector will, on its own, simply step in to
Under what conditions can local partnerships develop
assume substantially more responsibility for solving
and prosper? What kind of problems can be addressed
social problems. What is significant about the concept
effectively by partnerships? These are the issues that
of partnership, however, is the recognition that there is
are addressed in this article.
an essential and continuing role for government in pro-
moting and facilitating private sector involvement in
community problem-solving. It implies an under-
The Challenge for Local Officials
standing that private initiative does not simply "just
happen" and that private resources alone cannot solve
Even before the Reagan administration took office,
every community problem. Only by linking reforms in
local governments began to recognize important shifts
public policy with the considerable resources and
in public attitude about the appropriate role of govern-
talents of the private sector can new, more effective
ment in community problem-solving. After decades of
community problem-solving approaches be developed.
public sector growth, strong concern about the size,
Over the past three years, the Public Policy Center at
cost and effectiveness of many government-funded
SRI International has undertaken a number of studies
programs was evident. Large-scale public bureaucra-
pertaining to public/private partnerships (Chmura,
cies are seen as increasingly unresponsive, and many
1982; Grindley, 1980; Hentzell, et al., 1980; Waldhorn,
public service programs are viewed as ineffective.
et al., 1981). The project is aimed at developing an
Critics charge that some public programs actually dis-
understanding of how local government and business
courage private sector and individual initiative.
can develop collaborative approaches to community
At the same time, however, there are clearly many
problem-solving.
social needs to be met. Public opinion polls suggest
The thrust of this work is to document, analyze and
continuing citizen concern about protecting the envi-
synthesize information about the process and factors
ronment, assisting the truly needy, promoting sound
involved in developing local partnerships. The study
community development and stimulating job creation.
primarily focuses on acquiring information from local
This puts the local official in a difficult position: how
practitioners through extensive field work. Over 25
does one meet continuing social needs with con-
local communities were visited, dozens of local busi-
strained public budgets and citizen resistance to new
ness and government leaders were interviewed, and
public programs?
over 100 examples of partnerships were studied. In
Most officials enter "public service" to do what the
addition, first-hand experience was gained in 6 com-
job title implies-deliver public services. Most entered
munities (Macon, San Antonio, Tacoma, Toledo, Buf-
their profession during a period of dramatic public
falo, and Worcester) where SRI and the Conference
sector growth.
Board provided technical assistance to help bring
Now, quite clearly, the challenge is different. In the
past, when a community problem arose, the standard
Thomas J. Chmura is a Senior Public Policy Analyst at the Public
question was: What kind of program, publicly-funded
Policy Center of SRI International.
and publicly-administered, do we develop to solve the
41 COMMUNITY ACTION Vol. 1, No. 4, 1982
RESEARCH REPORTS
problem? Now and in the future, the question has be-
guage, and way of looking at the world.
come: how can government help to bring the full range
Both parties are often guilty of stereotyping the
of resources (public and private, fiscal and non-fiscal)
other and being insensitive to the constraints under
into the problem-solving process?
which each operates. Some in government tend to see
The role of local officials is thus changing from that
business as small-minded, greedy, and lacking in con-
of direct service provider to that of convener, catalyst,
cern for the public interest. Many in business view gov-
and mobilizer of community resources. Accepting re-
ernment people as bureaucratic, meddlesome, incon-
sponsibility for a problem no longer necessarily means
sistent, would be do-gooders. Government typically
developing a government program to address it.
sees the public interest responsibility of business as
extending beyond everyday production and opera-
tions activities. Business usually believes that the
Building Partnerships
goods and services it produces are its most important
contribution to the public interest.
Attitudes about "corporate social responsibility"
Public/private partnerships are not new. Most
communities can cite individual examples of collabo-
will vary from business to business and community to
ration between government and business dating back
community. Yet government must recognize that,
for decades. What is new at this time, when public
whatever the corporation's attitude, there are real
budgets are being cut and the role of government is
limits to corporate philanthropy and to activities that
are seen as "charity". Partnerships find a much firmer
being reconsidered, is the need for more concerted and
systematic development of public/private partner-
footing in activities that relate to businesses' direct self-
interest.
ships in a wider variety of areas.
For example, many firms are coming to realize that
Public/private partnerships may be defined as
concerted activities jointly undertaken by government
inadequate public education and public infrastructure
systems affect their operating costs, that local housing
and business to solve community problems in a way
that yields benefits to both the firm(s) and the commu-
and transit problems create upward pressure on wages,
and that low quality of life precipitates employment
nity at large. Analysis of numerous examples across
the country suggests that there are several important
turnover at middle and upper management levels. To
the extent that certain local problems are not resolved,
factors which condition the prospects for building
the costs and difficulties of doing business in a commu-
partnerships.
nity will increase. The lesson to local officials is clear:
Local Context
partnerships work best when the business community
is approached on the basis of mutual self-interest
Every community is different, and several aspects of
rather than charity or abstract notions of "social
a community's local context affect the kind of public/
responsibility".
private partnerships that can take place there.
The degree of trust between business and govern-
Availability of Private Sector Resources
ment clearly affects what kinds of partnerships are pos-
sible. In Cleveland, a few years back, antagonism be-
Research suggests that partnerships work best when
tween the two sectors seriously constrained oppor-
private sector resource contributions are broadly con-
tunities for significant new partnerships. In such a
ceived and flexibly utilized.
case, it might be necessary to start with modest efforts
There is a wide range of private sector resources that
and build a record of success before embarking on
creative and entrepreneurial local officials can tap for
major new initiatives. In Saint Paul, however, where
community problem-solving. Different problem areas
there is a strong history of collaboration, more sub-
will require the packaging of different kinds of corpo-
stantive efforts may be possible. Social and economic
rate resources (e.g., the city payroll department might
conditions also determine the kinds of opportunities
borrow a corporate executive, while the neighborhood
on which partnerships may be focused. A weak econ-
development program may seek corporate investments
omy and limited corporate profits, for example, clearly
in a housing rehabilitation fund).
can inhibit new private initiatives in employment and
Cash donations made by private firms have often
been seen as the principal corporate resource for part-
training programs.
nerships. Philanthropy is usually a highly visible
Attitudes Toward Social Responsibility
activity. However, it would be a mistake for local offi-
cials to over-emphasize the value of philanthropy.
Government and business are different. They exist
Even the most optimistic projections of increased cor-
for different purposes. They attract different kinds of
porate giving represent only a small fraction of recent
people who have different values, motivations, and
reductions in federal aid. Clearly, other private re-
measures of success. Each side has its own culture, lan-
sources need to be tapped as well.
COMMUNITY ACTION Vol. 1, No. 4, 1982 42
RESEARCH REPORTS
Corporations take in and pay out huge amounts of
be a need to "invent" new kinds of organizations or
cash on a continual basis. Their financial holdings can
processes to take vantage of the potential of partner-
be used in ways that help meet community needs. They
ship approaches to community problem-solving.
can decide for example, to deposit some of their cash in
local or minority-owned banks as a means of support-
ing the local economy. Corporate operational deci-
Areas of Opportunity
sions concerning hiring, employee benefits, purchasing
of goods and services, and facility locations also affect
Evidence from the field suggests that partnerships
work best when they are focused on specific commu-
the local community in which it is located. Special
efforts to hire minority youth, develop training pro-
nity problems that both government and business see
as important and where both have an interest in seeing
grams for the handicapped, and implement flexible
work schedules represent some of the ways that corpo-
that the problem is resolved. Areas of particular op-
rations can help meet human needs in the community
portunity are economic development and job creation,
and reduce the burden on public agencies. Corpora-
community development and housing, education and
tions can also donate or lend resources on an in-kind
training, human development, and public services and
facilities.
basis. Managers and technical specialists can be loaned
In economic development, the withdrawal of federal
to city agencies to apply their business skills in areas
assistance and the increased recognition of the impact
like cash management or scheduling. Corporate equip-
of local policies on private firms suggest the need for
ment (e.g., trucks, tools), facilities (e.g., cafeterias,
more collaborative arrangements. Thus, in Phoenix,
meeting rooms) and services (e.g., computer software,
large corporations are working with the city govern-
mailroom services) can also be made available for
ment-sponsored Business Development Center to
community activities at little or no cost to the firm if
provide management and technical assistance to
the timing and use are carefully thought out. Finally,
minority-owned small businesses.
individual firms or groups of firms can use their pres-
In community development, new understandings
tige (call it "clout") to help address community prob-
about the roles of realtors, lending institutions and
lems. For example, a chief executive active in commu-
other private actors are encouraging partnership. In
nity affairs might encourage other firms to get involved
Pittsburgh, Neighborhood Housing Services brings
in local problem-solving efforts.
banks, local government and neighborhood residents
The Work of Facilitators
together to stabilize inner-city communities.
The failure of public manpower programs not linked
It is no accident that some of the more successful and
to private employment opportunities shows the impor-
long-lasting partnerships have been linked to an
tance of partnerships in training and education. Thus,
organizational vehicle or process that goes beyond any
in Washington, D.C., five major corporations are
individual corporation or local government.
working with the D.C. school district to develop new
As local governments strive to develop more con-
"career high schools" in computer sciences, engineer-
certed partnerships with the private sector on a wider
ing, communications, hotel management and finance.
range of issues, it will be increasingly important to
The realization that publicly financed social service
move beyond current ad hoc and informal arrange-
programs cannot meet all human needs has encour-
ments to some kind of structured negotiation process.
aged new approaches in this area as well. Efforts such
The need is for a facilitating mechanism that can bring
as the continuation of legal aid in Montgomery
both parties together in order to develop specific part-
County, Maryland through a partnership between the
nerships. There are a variety of organizational options
County Bar Association and the county government
that appear to work, such as: (1) Business civic com-
respond to these realities.
mittees (e.g., the corporate-sponsored Bay Area Coun-
Lastly, local spending and tax limitations make
cil in the San Francisco area); (2) Public/private fo-
clear the necessity of privatization of some public serv-
rums (e.g., the Citizens League in Minneapolis/St.
ices and facilities. The development of a wide range of
Paul); and (3) Local foundations (e.g., the Mott Foun-
private sector options to municipal services by the Citi-
dation in Flint).
zens' League in Minneapolis/St Paul is an example of
There is, of course, no one "right" vehicle that a
this approach.
community should use for public/private partner-
ships. In a few cases, the appropriate vehicle(s) may
already be in place. In others, an existing organization
Conclusions
like the Chamber of Commerce or a community foun-
dation might be able to play the appropriate role in
The key message of this article is that partnerships
stimulating, developing or implementing a partner-
don't just happen. Rather, leadership is required. In
ship. However, it is likely that in many places there will
the headquarters cities like Pittsburgh, or in special
43 COMMUNITY ACTION Vol. 1, No. 4, 1982
RESEARCH REPORTS
places like Minneapolis/St. Paul, the business com-
-public and private, fiscal and non-fiscal-to address
munity may provide that leadership. In many other
its problems. In light of very real and continuing bud-
communities, local governments will need to take a
get constraints at all levels of government, new kinds of
more active leadership role.
problem-solving partnerships with the private sector
Local officials in the 1980s will need to be more
would seem to be the best hope for communities in the
aggressive and entrepreneurial in developing partner-
years ahead.
ships, moving away from their traditional role of direct
service provider to a new role as mobilizer of public
References Cited
and private resources for community problem-solving.
Specifically, local government leaders will need to:
Chmura, Thomas J.. Developing Public-Private Approaches to
Take the lead in reaching out to other sectors in the
Community Problem-Solving: A Guide for Local Officials.
community to organize concerted, problem-solving
(Menlo Park, California: SRI International, 1982.)
efforts with business and community-based interests.
Grindley, William. Making and Measuring Corporate Urban
Ventures. (Menlo Park, California: SRI International, 1980.)
Review local laws, regulations and policies to deter-
Hentzell, S. W., Fletcher, T. W., Grindley, W. C. and McGwire,
mine how they might be changed so as to provide
J. M. Exploring Urban Action Optionsfor Local Firms. (Menlo
greater incentives for, or remove barriers to, private
Park, California: SRI International, 1980.)
sector involvement.
Waldhorn, Steven A., Gollub, James O., et al. Rediscovering
Work with other sectors to develop new intermedi-
Governance: Using Nonservice Approaches to Address Social
ary mechanisms for partnership development.
Welfare Problems. (Menlo Park, California: SRI International,
1981.)
The opportunities for moving local communities
toward new, more effective kinds of problem-solving
have never been greater-or more needed-than they
The research upon which this article is based was primarily
are now. Effectively moving in this direction will not
supported by the Office of Community Planning and Development
fill the "gap" left from budget cutbacks or bring about
of the U.S. Department of Housing and Urban Development. The
author wishes to thank Tom Fletcher, William Grindley and
instantaneous solutions to long-standing community
Steven Waldhorn of SRI's research program in public/private
problems, but it will help assure that a community
partnerships. However, the views expressed in this article are
is making the best use of the full range of its resources
strictly those of the author.
COMMUNITY ACTION Vol. 1, No. 4, 1982 44
RESEARCH REPORTS
Partnerships
in
Community Service
by
Milton Kotler
As a result of funding cutbacks, local government is
received money from Community Development Block
seeking alternative means of service delivery that are
Grants, Title XX Social Service grants, Law Enforce-
less costly than traditional governmental administra-
ment Assistance Grants, CETA grants, and so on were
tion. One method that is emerging is the establishment
encouraged to utilize neighborhood groups as con-
of community partnerships with neighborhood organ-
tractors for direct delivery of services. By the late
izations that are capable of delivering public services.
1970s, many neighborhood organizations had built a
From the city side, partnerships are attractive because
strong track record of practical experience in carrying
they produce more service out of the same, or fewer,
out service delivery contracts within these programs.
dollars. From the neighborhood perspective, commu-
nity partnerships promise better service delivery and a
steady source of annual revenue for local organizations.
This article reports briefly on the findings of re-
City governments are increasingly forced
search and consultation by the Center for Responsive
to look for economies in service delivery.
Governance on community service partnerships in fif-
teen cities (see Kotler, 1981; Kotler, 1982). We first
describe the various types of partnerships that have
emerged over the past few years, and illustrate these
Throughout the 1970s, however, there were almost
types with case studies from selected cities. This analy-
no neighborhood service contracts drawn directly
sis is followed by a discussion of some of the generic
from municipal revenues for mainline city service func-
issues and obstacles that arise in the development of
tions such as trash collection, public safety, park main-
community service partnerships. Finally, we present a
tenance, recreation, etc. Urban jurisdictions reserved
set of prescriptions for encouraging further expansion
internally-generated revenues for their own direct serv-
of the partnership approach.
ice operations while transferring some portion of fed-
eral grant funds to neighborhood groups. Within the
The Emergence of Partnerships
last few years, this perspective has changed. As federal
grants are cut, capped, and blocked, local revenues can
The involvement of neighborhood organizations in
no longer be reserved for traditional service delivery.
the planning and delivery of community services is not
Instead, city governments are increasingly forced to
new. Over the last twenty years of change in municipal
look for economies in service delivery that can loosen
administration, citizen participation in budgeting and
up funds for other areas previously supported by fed-
planning has evolved into a highly institutionalized
eral funds. Thus, community service partnerships for
form. For example, some twenty cities across the
mainline public services have begun to form. These
country now operate elaborate, formal neighborhood
partnerships are based on the management capability
council systems through which the views of neighbor-
and performance record established by neighborhood
hood residents are sought on issues of service distribu-
groups during the previous period of citizen participa-
tion (Rosenbaum, 1981; Rosenbaum and Rich, 1982).
tion in planning and federally funded service delivery,
Within the last decade, largely under the aegis of
but they are moving into areas once reserved exclu-
federally sponsored programs, neighborhood groups
sively for traditional municipal administration.
have also moved into the actual delivery of services.
To date, the formation of community service part-
With federal encouragement and support, cities that
nerships is heavily concentrated in the areas of envi-
ronmental services, public works, and facility manage-
Milton Kotler is Vice President of the Center for Responsive
ment. This is not surprising because these are also the
Governance and Managing Editor for The Journal of Community
prime areas in which cities are experimenting with the
Action.
"privatization" of city services to profit-making con-
45 COMMUNITY ACTION Vol. 1. No. 4, 1982
RESEARCH REPORTS
tractors. Indeed, community service partnerships with
sponsibility for direct service delivery held by each of
neighborhood organizations can be viewed as one
the partners.
aspect of the larger movement toward increased com-
At one end of the spectrum, is the partnership ar-
petition and diversity in municipal service delivery
rangement in which city government retains primary
mechanisms. Some of the specific service functions in-
responsibility for the delivery of services, but seeks
volved in community partnerships which either al-
assistance from neighborhood organizations through
ready exist or are in the process of being formed are
part-time employment of neighborhood residents
noted in Figure 1.
and/or recruitment of neighborhood volunteers. This
type of arrangement is the least formal of the partner-
ship approaches. The neighborhood organization is
generally asked to locate potential part-time workers
and/or volunteers to coordinate their activities. There
Figure 1
may or may not be a formal financial relationship be-
tween the city and the neighborhood organization.
Environmental Services and Public Works
Volunteers and part-time workers are generally as-
signed the least skilled tasks within a given service area,
Cleaning and maintenance of vacant
freeing up full-time public employees for more difficult
lots and structures.
tasks.
(New York, NY; Philadelphia, PA)
Street and sidewalk maintenance.
(Kansas City, MO; Louisville, KY)
Formation of community partnerships is
Park maintenance.
heavily concentrated in the areas of
(Baltimore, MD, Columbus, OH;
environmental services, public works,
San Diego, CA)
and facility management.
Facility Management
A second approach to partnership organization, in-
volving a greater sharing of service delivery responsi-
Social service center management.
bility, may be termed the co-production model. In this
(Jacksonville, FL)
approach, city government and neighborhood organi-
Alcohol detox center management.
zations segment a particular service delivery responsi-
(Multnomah County, OR)
bility into component tasks and then divide the tasks
among themselves. Neighborhood groups thus accept
independent responsibility for completion of specific
jobs on a systematic basis. This model usually involves
Other Service Areas
some assistance by city government to the neighbor-
hood group in the form of training, technical assis-
Building code inspection.
tance, or financial support. In addition, the neighbor-
(Kansas City, MO)
hood is usually assigned the easier and less skilled jobs
Youth counseling.
within a particular service function. Nevertheless, the
(San Diego, CA)
co-production model does represent a significant step
in neighborhood responsibility beyond volunteer co-
Services to the elderly.
ordination or recruitment of supplementary em-
(Essex County, NJ)
ployees.
The third approach to the formation of community
partnerships transfers prime responsibility for service
delivery to the neighborhood organization through
performance contracts. City government retains
While the development of community service part-
responsibility for monitoring and supervision, but the
nerships is still in an early stage, it is already evident
service function itself is carried out by the neighbor-
that different types of partnerships are being utilized
hood organization with its own personnel. These
from city to city and across different service areas. At
contracts may include a cost-sharing element,
least three distinct "partnership models" are in use.
involving a contribution of volunteer effort or funds by
The different models vary primarily in the degree of re-
the neighborhood group. This makes the partnership
COMMUNITY ACTION Vol. 1, No. 4. 1982 46
RESEARCH REPORTS
spirit; (3) to augment service delivery through the use
highly attractive for financially-pressed city govern-
of volunteers; and (4) to build citizen self-reliance.
ments. Indeed, in some cases, the partnership with
The city hopes that the neighborhoods will eventu-
neighborhood organizations has evolved through a
ally be able to provide services with wholly volunteer
competitive bidding process, in which the neighbor-
work forces. This would reduce the transportation
hood group was able to underbid other potential con-
costs of public employees to and from the neighbor-
tractors due to its cost-sharing ability. In most cases,
hood centers, and also reduce the number of salaried
however, contracts with neighborhood groups are let
public employees. The Department will train neigh-
under a deliberate city policy of partnership building
borhood personnel and assist the neighborhoods in
and the city tries to establish the best possible financial
assuming service functions.
terms in the negotiation process.
Multnomah County, Or (Portland)
Cases
The Department of Human Services in Multnomah
The following are illustrative examples of commu-
County, OR is pursuing a policy of building service
nity service partnerships currently being negotiated or
partnerships with qualified neighborhood organiza-
in operation. They are not presented as an exhaustive
tions and community-based agencies. Within the last
catalogue of the various approaches to constructing
year, responsibility for managing the county nursing
partnerships, but they do incorporate considerable
home was transferred by contract to a community-
variation.
based group. The county also plans to transfer its men-
tal health clinics to neighborhood organizations by
July, 1983.
Jacksonville
The basic reasons for this policy are: (1) to expand
The city of Jacksonville, FL has a long history of
services by merging public expenditures with resources
privatizing a variety of physical and social services.
which private, non-profit organizations may generate;
One source of this practice is the tremendous size of
(2) to increase the cost effectiveness of public expendi-
Jacksonville. Its vast jurisdictional territory, which ex-
tures; (3) to empower the community with service re-
ceeds 700 square miles, makes it second only to An-
sponsibilities, and (4) to reduce the growth of govern-
chorage, AK in size. In the past two years, the city's
ment.
Department of Community Development has worked
Most recently, Multnomah issued a $1.07 million
to transfer the management of social services from a
contract to the Burnside Consortium to manage an
centralized administration to neighborhood-based
alcohol detoxification center. The contract involves
multi-service centers. As part of this policy, the depart-
medical supervision and the operation of a sobering
ment is presently negotiating contracts with the Ocean
station, licensed by the state to detain violaters of the
Way Improvement Council and the Robinson's Addi-
state's public inebriation statutes. Public drunkenness
tion Improvement Association for the management
has been decriminalized in Oregon, but it remains a
and operation of two such centers, carrying senior citi-
misdemeanor. Police and Burnside personnel may
zen, nutritional, recreational, and other programs cur-
place alleged violators in civil hold within Burnside
rently provided by the city.
facilities. The contract finances the operation of two
Burnside radio-dispatched cars which transport de-
tainees to the civil hold in lieu of police transportation.
In most cases, contracts with
Burnside is principally a neighborhood develop-
neighborhood groups are being let under
ment organization which owns and manages 300 units
a deliberate city policy of
of housing. The detoxification contract fulfills Burn-
side's objective to better serve its residents and to
partnership building.
attract new revenues for the organization's improved
operations. Burnside won this contract in a competi-
These two neighborhood organizations were se-
tive process. Prior to this contract, the county-run
lected because of their experience in managing and
detoxification facility was housed in a building owned
providing neighborhood-based services and their
and managed by the Consortium.
ability to mobilize volunteers. Other neighborhood
organizations will be considered as their management
Baltimore
capability improves. Until then, the city will continue
An interesting approach to co-production as a part-
to manage services directly in those neighborhoods.
nership model is the Baltimore Sparkle Program,
From the city's perspective, there are four objectives
which was introduced to the neighborhood organiza-
in multi-service center transfer to neighborhood
tions of the city early in 1981. Project Sparkle involves,
groups: (1) to reduce cost; (2) to enhance community
"
a partnership arrangement in which the commu-
47 COMMUNITY ACTION Vol. 1. No. 4, 1982
RESEARCH REPORTS
nity performs on a self-help principle and city forces
borhood groups for the delivery of city services. The
complement community efforts to improve commu-
guiding policy behind this process is to implement spe-
nity appearance and maintain those improvements
cialized service roles by neighborhood organizations
which have been identified as needed by community
which would reduce the overall cost of municipal serv-
organizations." The program is limited to activities
ice. For example, neighborhood organizations can
which improve or maintain the appearance of real
identify potholes at an early stage of formation and
property, open spaces, public buildings and grounds,
make minor repairs. This early action will reduce long-
commercial establishments and installations, and
run repair costs. Neighborhood organizations can
public thoroughfares or which aid in rat control and
identify and seal vacant property more quickly than
eradication.
the city. This reduces property damage and subsequent
The program is basically an invitation by the city to
rehabilitation costs.
neighborhood organizations to identify their service
The Managing Director of the city has conducted
needs in these areas and to divide responsibility with
meetings over the past 10 months with neighborhood
the city for meeting those needs. Negotiated co-
leaders in 23 districts of the city to identify reasonable
production schemes are expressed in written compacts
areas of service sharing and to enlist interested and
and signed by both neighborhood organizations and
capable neighborhood organizations into partner-
the city government.
ships. Teams of neighborhood and city personnel will
be organized in these districts to oversee the perform-
ance of the contract.
These neighborhood meetings have identified the
Negotiated co-production schemes are
following areas of partnership:
expressed in written compacts and
vacant lot cleaning and maintenance;
signed by both neighborhood
cleaning and securing of vacant buildings, (involv-
ing the boarding up of vandalized vacant buildings
organization and the city government.
and the organization of surveillance activities);
street maintenance (including the repair of potholes
with "cold patches", the repair of some cracks as pre-
The operation of the Sparkle Program is illustrated
ventive maintenance, and the inspection and report-
by a co-production agreement with the Mayfield Com-
ing of more extensive damage to the Street Depart-
ment;
munity Organization to clean and maintain the stream
in Herring Run Park. The city provided a truck for
park and/or recreation area maintenance (involving
cleaning and litter control of neighborhood parks
hauling away numerous truck loads of trash and the
and the Hunting Park system).
neighborhood provided the manpower to clean the
The city administration will award five to seven con-
streambed. The city has since maintained a follow-up
tracts in these areas of service delivery. Bids will be re-
program of stream cleaning. The Mayor's representa-
ceived and evaluated on a competitive basis with the
tive in the Harbel Multi-Service Center is authorized
following minimal criteria governing the kind of
to continue further co-production efforts on the
organization considered for selection:
stream, as well as handle complaints.
the bidding organization must be located and recog-
Another co-production agreement covers a city-
owned tot lot in the Poinsor Hills neighborhood. The
nized as working in a particular geographical area;
the organization must possess private, non-profit
neighborhood organization does weekly trash
removal, which the city then picks up. The organiza-
status;
tion also maintains a citizen park watch program to
the organization must have a proven record of serv-
discourage private truckers from dumping garbage in
ice or experience in related tasks;
the organization must have experience in the man-
the park, while the city has provided guard rails
agement of public funds; and,
around the park to prevent dumping. Finally, the
neighborhood group periodica Ily spreads wood chips
the organization must propose to satisfy the service
needs and demands of the District Council in the
which the city provides.
Baltimore anticipates that at least thirty other neigh-
geographical service area.
borhood organizations will participate in the Sparkle
At present, Philadelphia's city administration has
described the services to be bid and the equipment and
Program over the next few years.
supplies that will be required by neighborhood groups
performing the service; identified an initial set of
Philadelphia
capable neighborhood organizations that will bid on
The city government in Philadelphia has initiated a
the city offer; and ascertained ballpark costs for the
process of establishing formal partnerships with neigh-
different service contracts.
COMMUNITY ACTION Vol. I. No. 4. 1982 48
RESEARCH REPORTS
Louisville
Overcoming Obstacles
The transfer of service responsibility to neighbor-
The city of Louisville has been contracting with
hood development organizations to any significant
neighborhood organizations for housing development
degree causes justifiable concern among public
services since 1976. These services were primarily the
employees and their unions. Any service partnership,
purchase and rehabilitation of residences. In 1979, the
from contracting through co-production to volunteer
city began a $500,000 project of sidewalk construction
recruitment, creates fear of job displacement. In order
in the Butchertown area. The local neighborhood
to prevent this fear from becoming an obstacle to
organization, Butchertown Neighborhood Govern-
expansion of the partnership approach, it is vital that
ment (BNG) welcomed this public improvement proj-
this issue be treated with utmost sensitivity.
ect as an enhancement to its housing revitalization
A number of cities have entered into service partner-
work.
ship negotiations under the ground rule that no present
The city faced enormous problems in carrying out
employee will be displaced. Full-time public em-
the sidewalk construction program. Neighborhood
ployees may be re-trained for new assignments and
residents and owners of commercial establishments
transferred, but they need not fear for their positions.
complained about faulty design and torn-up thorough-
This approach seems to be working well, although
fares. In 1980, the city asked Butchertown Neighbor-
there is not yet enough experience to reach any firm
hood Government if they would take over the project
conclusions. Further analysis of this issue is of great
and complete the sidewalk construction. BNG had
importance.
strong community support as well as proven technical
and managerial capabilities for this kind of work. BNG
negotiated a contract for $150,000 and has carried out
its responsibilities successfully.
Any service partnership creates fear
An interesting aspect of this performance arose from
of job displacement.
a city ordinance requiring commercial businesses to
pay one-half the cost of sidewalk repair. BNG negoti-
ated an agreement with commercial establishments
Another "obstacle" issue that frequently arises in-
that it would lay sidewalks at no charge to these estab-
volves the management of liability risks involved in
lishments, providing that the businesses invested one-
delivering public services. While cities are willing to
half the cost of their new sidewalks in the physical im-
carry liability coverage for certain services, they are
provement of their properties.
inclined to transfer some part of this burden to neigh-
In 1982, the city negotiated a second sidewalk con-
borhood organizations under partnership agreements.
struction contract with BNG for $73,000. The public
Neighborhood groups, on the other hand, have little
improvement in this instance will be targeted to spe-
experience with such risks and approach liability cov-
cific areas where housing development is planned.
erage with extreme caution. Development of a widely
BNG is moving in two further directions. It has
accepted approach to resolution of this issue would
begun negotiations with the city for a co-production
greatly facilitate the building of community service
agreement on sanitation and recycling services. These
partnerships.
negotiations aim to divide the sanitation functions of
Finally, there are many specific legal obstacles in
the neighborhood's geographic area into those parts
state statutes and city ordinances which inhibit the for-
which the city can best serve and those parts which can
mation of partnerships. For example, in one city,
best be served by the neighborhood organization.
partnership formation was held up over the issue of
BNG also plans to expand its public service work in the
whether the city could legally transfer public works
area of general street and sidewalk repair.
equipment to a neighborhood non-profit organiza-
tion. In other cities, there have been delays and prob-
lems over particular procurement methods utilized in
Issues
negotiating contracts. While each particular case may
ultimately be resolvable within the local context, there
is a clear need for a broad-based review of legal issues
Our research and technical assistance has uncovered
which stand in the way of forming community service
a number of generic issues which arise as local govern-
partnerships.
ment and neighborhood, non-profit organizations
attempt to build community service partnerships.
Improving Capacities
These may be loosely categorized under the headings
Beyond the specific obstacles discussed above, there
of "Overcoming Obstacles" and "Improving Capaci-
are also a number of issues concerning the internal
ties".
capacities of neighborhood organizations which bear
49 COMMUNITY ACTION Vol. 1. No. 4, 1982
RESEARCH REPORTS
upon the expansion of the community partnership
sions of most neighborhood groups. While the attrac-
approach.
tion of directly improving services for their commu-
One issue concerns the ability of neighborhood
nities is great, the leadership of neighborhood groups
organizations to participate in a competitive contract
cannot be sure that the citizens they represent will
environment. While some kinds of community service
endorse the shift. Clearly, the formation of community
partnerships are targeted to specific organizations,
service partnerships needs to be handled with great
regular contracting presents a different picture.
care and full consultation between the leadership and
Under the rules of competitive bidding, contracting
the community.
out for the operation of a neighborhood-based service
Fourth, neighborhood organizations actively enter-
may involve bids from both the profit and non-profit
ing the service contract market must begin to adjust
sectors, including bids from large, efficient out-of-
their relations with City Hall and the municipal and
town firms. In this context, neighborhood groups will
county agencies. They have to relate professionally to
have to become thoroughly versed in local procure-
the agency staff. They have to build a political relation-
ment practices, marketing analysis, and the drafting of
ship to the Mayor and the City Council, so that there
responses to purchase orders. They have to know who
are mutual advantages for service agreements. And
their competition is and how to out-price and out-
they have to relate in a businesslike manner to private
perform that competition.
sector companies which will be involved with them in
Another issue concerns the ability of community
service performance.
groups to establish appropriate personnel policies and
productivity standards. As long as partnerships are
limited to volunteer efforts and recruitment of part-
time workers for the city, neighborhood groups do not
Conclusion
have to concern themselves with personnel policy.
However, as soon as partnerships move into co-
Community service partnerships are a permanent
production schemes or contracts, the ability to manage
new element in the changing picture of city govern-
large numbers of paid personnel becomes an issue.
ment and neighborhood relations. They have evolved
over the past 20 years out of citizen participation in
service delivery and service decentralization as well as
recent budget cutbacks and revenue declines.
Within the coming years, community service part-
Neighborhood groups that enter into
nerships will become as prominent as development
service partnerships will have to make
partnerships have been during the past ten years.
sure that they have the full support of
Returns from neighborhood development have been
sluggish in the present economy, and enterprising
their communities behind them.
neighborhood organizations will turn to the service
market for sound business and political reasons. At the
same time, cities will be looking at various cost effec-
tive options to retain neighborhood based services.
The two partners are meeting and setting an agenda for
Neighborhood groups typically operate with a small
the 1980s.
staff of highly-motivated, low-paid community
workers. Assumption of service delivery responsibili-
References Cited
ties involves a completely different set of personnel.
Kotler, M. (1981). Report and Recommendations on Neighbor-
For the first time, many neighborhood groups will
hood Service Delivery. Washington, D.C. Center for Respon-
have to deal with concerns such as pensions, career
sive Governance, Report to HUD.
advancement, overtime, employee security, and so on.
Kotler, M. (1982). Community Service Partnerships. Washington,
Building such personnel management capacity will
D.C., Center for Responsive Governance, Working Paper
Series.
take time and a great deal of effort.
Third, neighborhood groups that propose to enter
Rosenbaum, N. (1981). Neighborhood Councils and the New
Federalism. Washington, D.C. Center for Responsive Govern-
into service partnerships will have to make sure that
nance, Working Paper Series.
they have the full support of their communities behind
Rosenbaum, N. and Rich, R. (1982). "Neighborhood Councils in
them. Service delivery represents a significant change
Urban Politics," Paper presented at the 1982 meetings of the
from advocacy and citizen participation, the key mis-
Midwest Political Science Association, Milwaukee, Wisconsin.
COMMUNITY ACTION Vol. 1, No. 4. 1982 50
RESEARCH REPORTS
Partnerships for
Economic Development:
The UDAG Experience
by
Susan E. Clarke and Michael J. Rich
Community partnerships are being promoted as
gram (1978-1981), as well as interviews with economic
solutions to a range of urban problems, but rhetorical
development officials in over 50 cities, indicates that
fervor outweighs conceptual rigor in popular usage of
contemporary partnership arrangements reflect
the term. Our objective in this article is to examine a
changes along several key dimensions: formality and
number of issues concerning the composition of part-
representation, scope of activity and goal complexity,
nerships formed for economic development: Who is
and local fiscal roles.
involved in such public-private partnerships? Under
what conditions do they participate? Do cities act as
Formality and Representation
public interest entrepreneurs in these partnerships or
do they cater to the needs of the private sector?
Contemporary, public-private partnerships involve
A major difficulty in analyzing urban public-private
formal arrangements for cooperative activities among
partnerships is the lack of any systematic standardized
two or more groups and individuals from the public
information about these arrangements. However, the
and private sectors. The private sector, as here defined,
mandated partnerships of the Urban Development
includes both profit-making and non-profit firms and
Action Grant Program offer an opportunity to over-
organizations. Partnerships are based on the proposi-
come these constraints. The Action Grant program,
tion that some goods and services are best provided by
cornerstone of President Carter's national urban
a cooperative mix of public agencies and private
policy announced in 1978, is designed to encourage
organizations, rather than by either sector alone.
innovative partnerships for community and economic
The new wave of public-private partnerships is char-
development.
acterized by explicit contractual agreements, including
In the first section of this paper, we briefly discuss
the major dimensions of the contemporary partnership
concept; we then describe UDAG project-specific part-
nerships and develop a typology for classifying public-
The formality of contemporary
private partnerships; in the final section we note fac-
partnerships tends to politicize the arena
tors that may account for variations in partnership
composition and the city's fiscal role.
of economic development.
The Partnership Concept
public documentation of the partnership arrangement
Business, government, and civic organizations have
and specification of the expectations and responsibili-
long been partners in community development in most
ties of each partner.
American cities, based upon close, informal working
The formality of contemporary partnerships tends to
relationships among local elites. Contemporary pub-
politicize the arena of economic development. The
lic-private partnerships, while building on these his-
public sector role in local development opens the door
torical relationships, represent important changes in
to all sorts of groups interested in participating. For-
this long-standing tradition. Our research, based on an
mality and visibility also invite challenges from groups
examination of nearly 400 partnership agreements
not included. For example, challenges to UDAG part-
executed during the first four years of the UDAG pro-
nerships have included existing firms' objections to
public subsidization of their competitors, complaints
Susan Clarke is Assistant Professor in the Department of Political
about the absence of minority contractors, and claims
Science at Northwestern University. Michael Rich is a PhD. candi-
that the neighborhood business impacts of UDAG
date in the same department.
projects have not been fully taken into account. In
51 COMMUNITY ACTION Vol. I. No. 4. 1982
RESEARCH REPORTS
short, formal partnerships require explicit, active,
ing, site selection, construction marketing, and utiliza-
public policy choices concerning representation. In
tion. Such coordinated partnership arrangements
entering the realm of "political architecture" (Ander-
appear more effective at some stages than at others
son, 1979) local officials must carefully consider the
but, in general, the city's entrepreneurial fiscal role is a
appropriate extent of competing firms, low-income in-
distinctive aspect of contemporary partnerships.
dividuals, and so on. The legitimacy of administra-
tively-designed partnerships appears to rest to a sig-
The Action Grant Experience
nificant degree on the inclusion of relevant interests
and groups inside the partnership.
The Urban Development Action Grant Program,
adopted as part of the Housing and Community De-
Scope and Complexity
velopment Act of 1977, is designed to increase jobs and
In contrast to the limited, functional scope of most
tax revenues in distressed cities through the stimula-
previous public-private relationship, cities are today
tion of private investment that would not have oc-
building broad-based partnerships linking public and
curred "but for" the UDAG injection of public capital.
private interests in new institutional arrangements.
This effort to stimulate economic development
These joint development institutions encompass a
through private sector initiative and participation is an
variety of organizational forms: mayoral task forces
explicit acknowledgement that the public sector can-
on economic development, quasi-public development
not and should not attempt urban economic revitaliza-
tion without significant private sector involvement in
project design and implementation. Urban develop-
ment action grants are awarded by HUD on a competi-
Joint development institutions
tive basis among eligible cities. Cities qualify for par-
encompass a variety of organizational
ticipation in the action grant program by demonstrat-
ing significant community development need as meas-
forms.
ured by the age of housing, poverty, unemployment,
per capita income, job lag/decline and population lag/
decline. As of June 1982, more than 1,321 action grant
projects in 429 cities had been approved by HUD, rep-
corporations, special authorities, and economic devel-
resenting more than $2.2 billion in federal assistance.
opment corporations (CUED, 1978).
Public-private partnership ventures are organized
These new institutions are being vested with a wide
around specific development projects prior to submis-
range of powers from advisory to policy-making func-
sion of the application for funding to the Department
tions, and may involve both policy formulation and
of Housing and Urban Development (HUD). UDAG
policy implementation responsibilities. The redevelop-
projects are primarily initiated by private sector inter-
ment activities carried out by these new entities often
ests. For example, in over 50 percent of the projects
involve large-scale projects operating over extended
time periods, and investment climates characterized by
significant uncertainty and relatively high risk.
The public sector cannot and should not
attempt urban economic revitalization
City Fiscal Roles
without significant private sector
involvement.
Traditional public-private relations in American
cities usually involve an exchange of resources and
privileges among the two sectors. Cities, for example,
sampled in a HUD evaluation study of UDAG im-
reduce taxes, build sewers, or ease zoning variations to
pacts, private sector interests initiated the develop-
encourage investment in particular areas. Private in-
ment project (HUD, 1982: vi). Furthermore, the feasi-
vestors may promise new jobs. purchase of particular
bility of action grant projects is determined primarily
land parcels, or employment of specific social groups.
by private lenders' willingness to commit funds for a
The new genre of partnerships is distinguished from
particular project (HUD, 1982: 34).
the old by the increasing use of joint development
The action grant program is designed to give cities
activities in which the city shares in the costs and risks
considerable discretion in the types of activities they
of economic development. As detailed below, city
may undertake with their action grant funds. UDAG
fiscal roles are limited only by the imagination-and
grants may be used for a variety of direct and indirect
legal constraints-of the partners. Coordinated part-
incentives for development activities, including below-
nership functions may occur at every stage of the devel-
market rate loans, land write downs, demolition and
opment process, from project design to project financ-
clearance, relocation of businesses and families, site
COMMUNITY ACTION Vol. I, No. 4, 1982 52
RESEARCH REPORTS
improvements, and public infrastructure activities.
munity development) assumes direct responsibility for
HUD classifies the types of projects it will consider
carrying out program functions such as land acquisi-
into three categories-neighborhood, commercial,
tion, site preparation and public improvements itself
and industrial-and strives to maintain a balance
or whether it transfers responsibility and funds to
among them in making action grant awards. However,
another public entity, such as a local redevelopment
several researchers (e.g., Gist, 1980; Jacobs and Roi-
authority; or (b) whether or nor non-profit groups are
stacher, 1980; Webman, 1981; and Rich, 1982) have
included as participating parties in the partnership in
shown that while a balance has generally been achieved
addition to private business. Capsule illustrations of
in terms of the numbers of projects funded, UDAG
prototypical partnership models, in descending order
dollars are skewed towards commercial activities.
of complexity, are as follows:
More than one-half of all UDAG dollars allocated
have been awarded for commercial projects.
1. City/Private. The city uses its UDAG funds to
finance the extension of a sewer line to enable a
Types of Partnership Arrangements
private manufacturing firm to expand its
facilities.
While each action grant project requires a minimum
2. Public/Private. The city transfers its action
of at least two participants (one public, one private),
grant funds to the local redevelopment author-
there do not appear to be any boundaries on either the
ity which uses those funds for land acquisition,
number or type of parties included or the complexity
demolition and clearance, and infrastructure
of legal responsibilities each partnership entails. The
improvements. The redevelopment authority
simplest partnership arrangement is one that involves
then leases the site to a private developer who
the city government and a single private sector partici-
has agreed to construct a new hotel on the site.
pant, such as a local manufacturing firm. Generally, as
3. Nonprofit/Private. The city transfers its UDAG
the size and scope of development activity increases so
funds to a non-profit organization based in one
does the number of participating partners and the
of the city's community development target
complexity of the partnership. Oakland, California,
areas. The nonprofit uses the UDAG funds to
establish a revolving loan fund for housing re-
habilitation loans. A consortium of private
As the size and scope of development
lending institutions agrees to participate in the
program and provides the bulk of the funds
activity increases, so do the number of
necessary for the rehabilitation work.
participating partners.
4. City/Nonprofit/Private. The city loans UDAG
funds to a non-profit neighborhood develop-
ment corporation which uses those funds for the
completion of a neighborhood shopping plaza it
for example, lists more than 10 participating partners
has been developing. Income generated from
(including the city's redevelopment agency, the Eco-
the plaza's tenants is used to repay the UDAG
nomic Development Administration, a private devel-
loan and to establish a revolving commercial
oper, a Canadian development corporation, a local
loan fund to assist minority businesses.
bank, and a Canadian bank) in its grant agreement for
5. Public/Private/Nonprofit The city tansfers its
an action grant project designed to construct a major
UDAG funds to the local redevelopment au-
new downtown hotel and convention center complex.
thority which in turn acquires and prepares a
An even more complex partnership in Minneapolis
site for a private developer. The developer then
and St. Paul, MN involves the respective housing and
constructs 200 housing units, of which a portion
redevelopment authorities of the two cities, a private
are set aside for low-and moderate-income fam-
foundation, a pension fund, and several contractors,
ilies. A neighborhood nonprofit organization,
developers, and individual homeowners. This project,
using funds received from the city's CDBG pro-
in tandem with a $170 million housing mortgage reve-
gram, administers a home purchase assistance
nue bond issue jointly sponsored by the two cities, will
program in which funds are lent to low- and
provide home ownership assistance to low- and mod-
moderate-income families for down payments
erate-income families in the Twin Cities area.
on the newly constructed homes.
We have developed a typology of prototypical pub-
In most of the cases in which responsibility and
lic-private partnership arrangements under the action
funds are transferred to another public entity, local
grant program. These arrangements vary along two
governments lack the legal authority and/or the ad-
basic dimensions: (a) whether the general purpose
ministrative capacity to fulfill the public sector's proj-
local government (e.g., the city's department of com-
ect obligations (e.g., land acquisition through eminent
RESEARCH REPORTS
domain, execution of loans or grants to the private
tation, neighborhood public improvements, and loans
sector, issuance of bonds for supplemental project
for commercial and industrial enterprises.
financing).
In most action grant projects that generate program
The inclusion of nonprofit organizations in action
income, the designated functional reuse of the pro-
grant partnerships, either as transfer agents or as oper-
ceeds is closely related to the initial project. For
ating partners, is usually motivated by the desire to
example, one of the most common uses of program
lend legitimacy to a development effort or to insure
income has been the establishment or supplementation
that affected interests in low income communities
of revolving loan funds. Proceeds from commercial
benefit financially. In some cases, inclusion is also
and industrial loans have generally been used to make
generated by the demonstrated competence of non-
additional commercial and industrial loans. Similarly,
profit groups in specific functional areas, such as the
payments on UDAG-funded housing rehabilitation
administration of housing rehabilitation and neigh-
and home purchase loans have been recycled for addi-
borhood revitalization groups.
tional home improvement and mortgage assistance
loans.
Public Fiscal Roles
The major mechanisms through which UDAG
funds are recaptured and program income is generated
A distinctive feature of the UDAG program is its
are as follows:
recent transformation from primarily a grant program
in which cities or public authorities used their action
Land Disposition. Cities have traditionally used
grant funds for one-time development expenditures to
federal grant-in-aid proceeds for land acquisition and
an investment program in which government agencies
site preparation. Program income is generated
loan their action grant funds to private or nonprofit
through the disposition of land to the private sector.
participants, enabling the public sector to recapture its
However, because cities have generally used their
UDAG funds and recycle them for future housing and
federal development funds to write down the cost of
community development activities. A recent HUD
land as an incentive to stimulate private investment,
study reports that the proportion of UDAG projects
land disposition proceeds generally can only partially
recapture public funds expended on a particular devel-
opment activity.
Lease Agreements and Municipal Enterprises. Local
The proportion of UDAG projects
governments have also generated program income
through the use of land and/or facility lease agree-
containing provisions for the recapture
ments. Frequently cities will acquire and clear a parcel
of public funds has increased.
of land for development and then lease the site to a de-
veloper. In other instances cities may construct an
underground parking garage and lease the air rights to
a private developer. Cities have also used their action
grant funds to construct facilities which in themselves
containing provisions for the recapture of public funds
generate revenues. Perhaps the most frequently occur-
has increased from 30 percent in 1978 to 62 percent in
ring example is the construction of municipal parking
1980 (HUD, 1982: p. 147).
garages in which the city generates income through the
We call cities that recapture none or only a small
collection of parking fees. In some instances the city
portion of their action grant funds "donor" cities, as
may lease a specified number of parking spaces to a
they are in essence making a public contribution to a
developer or private firm. Similarly, several cities have
private development. We label cities at the other end of
constructed other facilities with the specific goal of
the continuum "entrepreneurial" cities that are able to
revenue generation-e.g., neighborhood shopping
"make money" with their acti on grant.
centers, trade centers, exhibition halls, and industrial
Perhaps one reason why ci ies are becoming more
parks.
entrepreneurial in the use of t heir action grant dollars
Loans. Inreasingly, cities are using their urban
is that all UDAG funds recaptured by the city stay in
development action grant funds as loans to private and
the city; there are no provisions for returning recap-
nonprofit participants. A recent HUD evaluation
tured program funds to the federal government. The
study found that about one-third of all UDAG funds
only restriction is that recaptured UDAG funds must
awarded through FY 1980 were executed as loans as
be allocated for activities that are eligible under Title I
opposed to grants (HUD, 1982: 149). Generally
of the Housing and Community Development Act of
UDAG funds are used for loans at below market inter-
1974, as amended. Thus, cities may use their UDAG
est rates although in a few cities loans have been ex-
program income for activities such as housing rehabili-
ecuted at or near the prevailing market rate. In a few
COMMUNITY ACTION Vol. I, No. 4. 1982 54
RESEARCH REPORTS
cities, a sliding interest scale has been employed in
partnership participation because they are more acces-
which interest rates increase over the term of the loan.
sible to such groups' demands. Unreformed cities may
Net Cash Flow and Equity Participation. Finally,
be pushed to more entrepreneurial styles with greater
and perhaps most noteworthy, several projects have
public benefits through pressures from these interests
included "kicker" provisions into their action grant
but these competing interests may also impede
agreements which permit the city or its agent (e.g., a re-
evolution of newer fiscal roles aimed at recapturing
development authority, nonprofit organization) to
and recycling funds.
share in the net cash flow after a specified return to the
Organizational and bureaucratic needs also shape
developer. Generally, there are three different types of
partnership composition. Organizing for economic de-
net cash flow participation. Under the first type, in
velopment usually occurs in a milieu crowded with
which the project's profits are used to repay an out-
planning units, special authorities, and bureaucracies
standing UDAG loan, net cash flow participation rep-
from previous Federal programs. Weak mayoral
resents no real advantage for the city. That is, the city is
control over development resources and business com-
setting back its UDAG funds, generally with interest,
munity pressures for a more visible, coherent public
and nothing more. The real advantage in this situation
appears to rest with the private sector whose debt serv-
ice payments only begin once the development activity
generates a profit. Furthermore, these agreements
usually include provisions which allow the developer
Many mayors are reluctant to include
to defer debt service payment in years in which the
"kicker" provisions that would possibly
project does not generate sufficient net cash flow.
jeopardize private sector participation.
A second type of net cash flow participation is one in
which the city receives a portion of the net cash flow as
an "additional interest payment" on its UDAG loan. In
these instances, net cash flow participation represents
a bonus payment to the city since the city already is re-
development partner often lead to delegation of eco-
ceiving principal and interest payments on its UDAG
nomic development responsibility to public authorities
loan.
outside the city government line departments.
The third type of net cash flow participation occurs
Finally, national bureaucratic influence seems to be
when the city uses its UDAG funds as an equity invest-
a particularly important influence in the evaluation of
ment and thus, shares in the profits of the development
local fiscal roles in UDAG partnerships. Many mayors
activity in proportion to its investment. Cities have
are reluctant to include "kicker" provisions and other
thus far used their UDAG funds for equity contribu-
non-market conditions in UDAG agreements that
tions in such diverse activities as hotels, office towers,
would increase the potential public benefits but pos-
shopping plazas, and housing developments.
sibly jeopardize private sector participation. National
HUD officials thus sometimes play a broker role be-
Explaining Partnerships
tween local political and economic interests. When
applications proposing projects with substantial profit
What accounts for the variation between cities in the
margins are submitted, HUD officials may propose
composition and organization of urban development
inclusion of "kickers" both to test whether or not the
partnerships? First, local political structure appears to
private benefit has been correctly estimated and to
significantly influence partnership composition and
increase the city's rate of return on its investment.
local fiscal roles. Urban public-private partnerships
HUD's brokerage role is an important factor in under-
seem the latest in a long line of urban "reforms"-from
standing the increasing prevalence of more entrepre-
special authorities through urban renewal and model
neurial roles in action grant partnerships.
cities-that attempt to isolate "technical" development
activities from politics. Thus, reform cities with city
managers and nonpartisan, at-large elections seem
Conclusions
most receptive to partnerships which transfer
authority and funds to special administrative units.
To recapitulate, our research found that contempo-
Administrative specialization also is likely to allow
rary urban development partnerships are based on
more entrepreneurial roles, both because of greater
formal agreements among partners rather than infor-
administrative capacity and less political interference.
mal bargains. They tend to be extensive in scope and to
Unreformed cities, on the other hand, are more likely
involve multi-goal development projects rather than
to keep control directly in city government and more
distribution of discrete resources. They also reflect a
likely to be responsive to nonprofit and neighborhood
range of local fiscal roles, with cities steadily shifting
55
RESEARCH REPORTS
from a donor mentality to a more entrepreneurial, rev-
also an issue of distributional politics, involving the
enue-generating perspective.
costs and benefits to various neighborhood and com-
The recapture of action grant funds for future devel-
munity-based groups that represent them. The in-
opment activities has a number of important implica-
volvement of community-based groups is thus a per-
tions. First, it represents a movement by the cities away
sistent equity issue in local policy-making on partner-
from their dependency on the federal government and
ships. The UDAG experience includes a number of
towards local self-sufficiency. In addition, it also
creative ways of building inclusive partnerships. Per-
points out that given the difficulties in raising revenue
haps even more importantly, given declining resource
from alternative sources-e.g., declining federal aid,
bases and decreasing federal support, cities must
citizen and business resistance to increased taxes, voter
develop more entrepreneurial approaches to every
rejection of major capital bond issues, and the tighten-
policy area they are responsible for. The UDAG ex-
ing of the capital market-recycling public develop-
perience may again point the way.
ment funds may be the only way in which cities can
assure themselves of the future revenues they will need
References Cited
for housing, community and economic development
activities.
Anderson, Charles W. (1979). "Political Design and the Represen-
Significantly, the entrepreneurial city roles we
tation of Interests," pp. 271-297 in Phillipe C. Schmitter and
describe for the UDAG program are becoming evident
Gerhard Lehmbruch (eds.), Trends Toward Corporatist Inter-
in other program areas. For example, some cities have
mediation. Beverly Hills: Sage Publications.
drawn down their unexpended CDBG entitlement
Clarke, Susan (1982a). "The Private Use of The Public Interest."
funds to "float" loans for other development activities
Paper presented at the 1982 meetings of the Southwestern Politi-
cal Science Association, San Antonio, Texas.
of their choosing. The prinicipal payments received on
these outstanding loans must be earmarked to the
Clarke, Susan (1982b). "Trends Toward Local Corporatism: Insti-
tutionalising Local Business/Government Relations." Paper
CDBG projects to which they were originally allo-
presented at the 1982 meetings of the Midwest Political Science
cated, but the city is free to use the interest earned on
Association, Milwaukee, Wisconsin.
these loans for a variety of housing, community, and
Committee for Economic Development (1982). Public-Private
economic development activities. Thus, federal devel-
Partnerships: An Opportunity for Urban Communities. New
opment programs appear to increasingly function as
York: Committee for Economic Development.
investment capital pools through which the more
Council for Urban Economic Development (1978). Coordinated
entrepreneurial cities leverage private investment.
Urban Economic Development: A Case Study Analysis. Wash-
ington, D.C.: National Council for Urban Economic Develop-
The irony in these conclusions is that two contradic-
ment.
tory developments seem to be at work: greater business
Gist, John R. (1980). "Urban Development Action Grants: Design
interest in joint development activities with city gov-
and Implementation," in Donald Rosenthal (ed.), Urban Re-
ernment but declining federal funds for local participa-
vitalization. Beverly Hills, Calif.: Sage Publications.
tion in such partnerships. As one Midwestern official
Jacobs, Susan S. and Elizabeth A. Roistacher (1980). "The Urban
notes: "There seems to be more cooperation lately
Impacts of HUD's Urban Development Action Grant Program,
because of the economic decline. There is a recognition
or Where's the Action in Action Grants?" pp. 335-362 in Nor-
of a common need". A Pacific Northwest administra-
man Glickman (ed.) The Urban Impacts of Federal Policies.
tor reports that: "The economic climate is rapidly
Baltimore: Johns Hopkins University Press.
changing. Private firms are now beginning to look
Rich, Michael J. (1982). "Hitting the Target: The Distributional
favorably upon government involvement as 'risk-
Impacts of the Urban Development Action Grant Program,"
Urban Affairs Quarterly. 17 (March): 285-301.
sharers' in development projects". Yet many officials
point out that Federal budget cuts are eliminating
U.S. Department of Housing and Urban Development (1982). An
Impact Evaluation of the Urban Development Action Grant
many of their resources for front-end investment in
Program. Washington, D.C.
joining projects as well as for the services in-kind that
Webman, Jerry (1981). "UDAG: Targeting Urban Economic De-
are often part of their project contribution. Continua-
velopment, Political Science Quarterly. 96:189-207.
tion of the UDAG progran insures some of those
funds but local officials antic pate increased competi-
tion for these reduced funds.
The authors appreciate the assistance of Edward Goetz and Angela
While the typology of partnership variations pre-
Hendrix, Northwestern University, Department of Political
sented here is drawn from UDAG research, we feel that
Science and Center for Urban Affairs and Policy Research
this analysis of structure and roles also includes lessons
Fellows, in conducting the telephone interviews with local eco-
nomic development officials. Partial support for this research
for other policy areas of potential partnership at the
came from a Northwestern University Research Grant and from
local level. For example, given the territorial context
the Center for Urban Affairs and Policy Research; we gratefully
of local politics, every issue of developmental politics is
acknowledge this assistance.
COMMUNITY ACTION Vol. I. No. 4. 1982 56
ANNOUNCING
Important New Working Papers from
the Center for Responsive Governance
Nelson M. Rosenbaum and Bruce L. R. Smith
The Fiscal Status of the Voluntary Sector
(Working Paper Series. 1982, 50 pp., $5.00)
This study is a path-breaking analysis of the financial condition of voluntary non-profit
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revenue base. The major sub-sectors and clusters of related organizations within the
voluntary sector are clearly delineated and their financial outlook is compared and
contrasted. This paper is essential reading for all those concerned with the future of
voluntary organizations in the United States.
Milton Kotler
Community Service Partnerships
(Working Paper Series, 1982, 60 pp., $6.00)
In an era of concern about the ability of municipal governments to pay for and deliver
essential services. alternative methods of service delivery are at the forefront of public
attention. This study breaks new ground in assessing the capacity of neighborhood
organizations to assume responsibility for delivery of public services through contractual
agreements with city governments. Based upon a review of specific examples in nine
cities with experience in contractual service delivery by neighborhood groups. the paper
outlines the major issues in negotiating a contract and monitoring performance, The
technical assistance needs of both city governments and neighborhood groups in under-
taking this new relationship are identified. Citizens and public officials concerned with
urban policy and the future of neighborhood organizations will find this paper an important
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