Conjuring a mental image of Detroit is easy if you've been paying attention to some of the comeback stories that have been streaming out of the city: it is the Rust Belt's chrome mecca coming back from the brink, with daring restauranteurs and visionary start-ups injecting new life into ghostly factories and disinvested working-class neighborhoods. But these predominant narratives only tell part of the story: economic growth is concentrated in pockets close to the central core, and has benefited outsiders more than locals. In 2007, 36 percent of jobs in the central business district were held by Detroiters, but by 2013, that number dropped to 23.7 percent.

"The condition that Detroit is in has created a can-do, collaborative, maker culture," said Kevin Ramon, business coach at Central Detroit Christian Community Development Corporation. "But there are a lot of people in Detroit's underserved communities that don't have the financial capacity or skill sets to get their businesses off the ground as fast as others outside of those communities." But a network of organizations in the city is working to change that.

Ramon provides marketing and general business coaching support for Central Detroit residents through the business development work of Central Detroit Christian, which is part of a cottage industry including foundations, nonprofits, incubators, and co-working spaces that provide Detroit's low-income residents and people of color with resources and opportunities to launch successful small businesses.

Detroit is proving what can happen when a robust business ecosystem — one that is committed to inclusion — sprouts up to combat the economic inequality that too often accompanies a city's comeback. Below are three examples of companies owned by Detroiters that are tapping into the new business resources available to grow and ensure that Detroit's renaissance is built on a foundation of success for local residents of color.

From Returning Citizen to In-Demand Business Owner

When Craig Grissom returned to Central Detroit after 14 years of incarceration, he turned to landscaping work to make money.  "I couldn't get hired anywhere, so I had to create my job," he said.

In 2009, Grissom started to build his own small clientele. Two years later, Lisa Johanon, who oversees Central Detroit Christian's portfolio of 10 businesses, offered Grissom the job of managing one of them, Higher Ground Landscaping. "I had been making a couple of dollars on my own, but it wasn't steady," he said. "With that opportunity, I had a steady income."

In return, Grissom has tried to hire other returning citizens from the neighborhood. "Somebody gave me a chance," he added. "Lisa helped me out and if I could help someone else out, sure enough, I would. I hired someone this past summer who was just a new release and I gave him the opportunity."

Through Central Detroit Christian, Grissom completed an entrepreneur training class at ProsperUS in 2014. He was able to purchase Higher Ground Landscaping in 2015 and obtained working capital through loans from ProsperUS and Southwest Solutions (both of which have since been paid off). Grissom's contracts now include Henry Ford Health Center and the Woodward Avenue Streetcar project.

Both Central Detroit Christian and ProsperUS receive funding from the New Economy Initiative (NEI), a collaboration of 13 national and local foundations founded in 2007 that has grown into one of the largest philanthropy-led regional economic development initiatives in the United States. A recent report from NEI outlines the impact of its grantmaking, and the results are impressive: through $96.2 million in grants, NEI has helped to launch 1,700 new companies, creating more than 17,000 jobs.

The success of Grissom and other entrepreneurs like him speaks to the power of Detroit organizations working together and collaborating to build a network of entrepreneurs of color — especially those with a passion for training and employing locally. According to Matthew Lewis of NEI, the initiative wants to focus its grantmaking efforts to ramp up local hiring to ensure that Detroit residents reap the benefits of their city's comeback.  The results so far are promising: the 2016 NEIdeas winners were 75 percent people of color and 60 percent women-owned businesses, and NEI has received applications from every Detroit zip code.

From Selling out of a Trunk to the Shelves of Whole Foods

Nailah Ellis-Brown, another local entrepreneur, feels frustrated about the way that Detroit has been portrayed in the media. "A lot of people think you can just buy a building in Detroit and grow a $1 million business," said Ellis-Brown. "Detroit has been portrayed as this wide-open market, but people are just coming in and not providing jobs or training. They are bringing in the workers they want to use. It doesn't make sense to come in and fix downtown, midtown, and a couple of blocks along Woodward. That's not the entire city."

Ellis-Brown began selling her grandfather's hibiscus iced tea recipe out of the trunk of her car in 2008. Today, Ellis Infinity Beverage Company drinks are being sold in over 300 retailers throughout the Midwest, including at Whole Foods, and she was named one of Forbes magazine's "30 Under 30" in the manufacturing industry. Along the way, Ellis-Brown found resources throughout the region, including from Michigan State University Product Center, "which has been amazing as far as labeling and the random stuff like barcodes and nutritional information," and Michigan Minority Supplier Development Council, which helped Ellis-Brown with contracting. But she is proud of how much she's been able to do on her own.

"Being a Detroit native, I've never been the type to wait on handouts," she said. "If there's something you want, you've got to go get it yourself. That's how I was raised and how things tend to be for people within the Black community." She's committed to hiring local residents, and nine of her 15 staff members on the production line have special needs. She works through a program called Services to Enhance Potential and also hires walk-ins, online applicants, and over social media. "No one really takes the time to work with individuals with special needs. With the passions they have and the joy I see when they come to work, it makes all of the difference in the world to me," said Ellis-Brown. "One of my passions and aspirations is for my company to provide job support and job opportunities for Detroit natives."

A Master Plumber with a Vision

One of NEI's grantmaking programs, NEIdeas, challenges entrepreneurs to come up with ideas to help grow their businesses. Businesses that gross under $750,000 annually compete for one of 30 $10,000 awards; businesses that gross between $750,000 and $5 million compete for one of two $100,000 awards.

Benkari Mechanical, a plumbing enterprise, won a $10,000 award in 2015. Founded by Adrienne Bennett, said to be America's first Black female licensed master plumber and Michigan's first and only female licensed master plumber and plumbing contractor, the company was looking for a way to grow to its next level.

"We are small, we are minority, and we are just trying to fit in," said Bennett. "Until now we have been self-funded. Now we are at the point that for us to grow, we have to pursue larger projects. Banks literally want your life for the money they want to loan you." With the NEIdeas grant, the company purchased software and training to help automate its contract bidding process. The first time Benkari used the software, it won its biggest contract to date — for the new Detroit Red Wings arena currently under construction.

"It would have taken a much longer time to estimate without the software," said A.K. Bennett, Adrienne's son and project manager for the company. "We see this project as being a stepping stone to larger projects'"

One of Benkari's biggest growth challenges is finding qualified local union workers. The union provides a five-year apprenticeship program, but with the growth of the central business district and an executive order that projects are required to have 51 percent of local trade labor to qualify for city financing, Benkari Mechanical's labor pool is often dry. "After the 2008 crash, there was no push to open the apprenticeships and a big loss of people to retirement," said Bennett, the business owner. "Now since the boom has come back and it has come back so fast, there aren't that many people with talent or experience to do the work. Now there are people who have never had a hammer in their hands on a construction site."

Even so, the business is poised to meet Bennett's vision for growth. "We have set goals as far as where we would like to be financially — owning our own office space with a pre-fabrication facility and developing a fleet of company vehicles. As far as the things we see as happening in the city, we think this is all attainable."

AN OPEN LETTER TO THE UNITED STATES SENATE
Civil and Human Rights Organizations Oppose Confirmation of Jeff Sessions

On behalf of The Leadership Conference on Civil and Human Rights, a coalition of more than 200 national organizations committed to promote and protect the civil and human rights of all persons in the United States, and the 144 undersigned organizations, we are writing to express our strong opposition to the confirmation of Senator Jefferson B. Sessions (R-AL) to be the 84^th Attorney General of the United States.

Senator Sessions has a 30-year record of racial insensitivity, bias against immigrants, disregard for the rule of law, and hostility to the protection of civil rights that makes him unfit to serve as the Attorney General of the United States.  In our democracy, the Attorney General is charged with enforcing our nation’s laws without prejudice and with an eye toward justice.  And, just as important, the Attorney General has to be seen by the public – every member of the public, from every community – as a fair arbiter of justice.  Unfortunately, there is little in Senator Sessions’ record that demonstrates that he would meet such a standard. 

Read entire letter at LCCHR.

(Cross-posted from Next City)

Just two years ago, the corner of 16th and North Avenue in Milwaukee looked like the vast majority of the commercial strip within the city's historic Lindsay Heights neighborhood: the buildings were boarded up, vacant, and in disrepair. As in so many American cities, racial redlining, decades of economic disinvestment, and the recent housing crisis devastated this once-bustling working-class hub.

Visitors today will find this intersection transformed: Teenagers gather for book clubs while they sip fruit and veggie concoctions from the Juice Kitchen. Neighbors chat over organic bulk grains at the Outpost Natural Foods co-op. And local residents facing barriers to employment get job training at the Milwaukee Center for Independence Hospitality Academy. 

This vibrant hub of commerce, healthy food, and community gathering is the Innovations and Wellness Commons, and it is the brainchild of an entire community.

Led by residents Larry and Sharon Adams and their community nonprofit, Walnut Way Conservation Corp., and supported by ongoing funding and technical assistance from the Zilber Family Foundation, The Commons proves what is possible when community, local business, and philanthropy unite around a shared vision for a healthier, more prosperous neighborhood.

"This isn't about one lot or one store. We're building a vibrant community supported by a quadruple bottom line: investments that are financially viable, green, socially equitable, and honor the culture and history of Lindsay Heights," said Sharon Adams.

Read more in Next City.

Thanks to nearly a decade of advocacy and research, and to the inspiring leadership of California Senate President Pro Tem Kevin de León — the kind of leader the nation needs — California has taken another step forward by making  portable, auto-enrolled, individual retirement accounts available to millions of Californians who lack such benefits.  Workers participating in the newly passed Secure Choice Retirement Savings Program will have at least 3 percent of their earnings deducted from their paycheck and deposited in an individual retirement account, managed by the Secure Choice Retirement Savings Investment Board. They will be able to opt out at any time.

Given that many participants will have no experience with saving for retirement and many may currently rely on public benefits programs, PolicyLink worked with partners and De León's office to advocate for equity measures within the bill to ensure that the program best serves the needs of low-income workers. Thanks to this advocacy, the Board is required to establish a comprehensive outreach and education program to inform eligible workers of the risks and benefits of the program, and there is now increased attention on ensuring that retirement savings do not count toward assets, which could potentially disqualify low-income workers from receiving vital public benefits.

Touted as the broadest enhancement of retirement benefits since Social Security, Secure Choice provides a crucial opportunity to prove the merits of state-backed retirement pans. 

Senator de León spoke with Christopher Brown, director for financial security at PolicyLink, to share his insight into this innovative new policy and discuss how other states might follow in California's footsteps.

Why is it so important that the state step in to provide opportunities for workers to save for retirement?

We have close to seven million workers in California in the private sector with no access to any retirement security plan — neither a defined benefit nor a defined contribution plan. This means that 50 percent of middle-income workers are at risk of retiring into poverty. The numbers are worse for women retirees, who make up two-thirds of retirees today who live in poverty. When I think of women like my mother or my aunt, women who raised us, clothed us, fed us — it's immoral that these women should retire into poverty. After a lifetime career of hard work, helping to make California the sixth largest economy in the world, they deserve to live with a modicum of dignity and respect. This is a not a partisan issue. Retirement insecurity impacts all Americans, regardless of the hue of your skin or your geographic location. Secure Choice is a complete game changer. It gives millions of workers the option to save automatically, through their employer's payroll.  No matter what job you hold in California, you can plan for your future. 

What were some of the challenges you faced in creating this legislation, and how were they overcome?

It's been a long, arduous journey to get this approved. The first iteration of this measure failed in 2008, and again in 2009. But in 2012 Governor Jerry Brown signed a measure that allowed us to appoint a Secure Choice Board and raise money to conduct the necessary feasibility studies and market analysis to show that this would be financially viable and self-sustaining.  It took years of going back and forth to Washington, DC to meet with the Department of Labor, the Treasury Department, and other key players on Capitol Hill. We rolled up our sleeves and went to work, going over the arcane technical aspects and trying to find a solution to this vexing problem of retirement insecurity.

All along the way we had very strong opposition on Wall Street and in Washington, DC, because our program was seen as competing with financial markets for retirement.  However, we were able to make the case that this wasn't about competition or cannibalizing an existing financial market sector, because we are trying to reach a highly fragmented, diverse community made up largely of lower-income workers who need retirement security the most and aren't being reached by private financial providers. We also stressed that this is a policy issue, not a commercial one — that too many people are hurting because they don't have access to retirement savings as part of their employment, and too many people would be forced to rely on government assistance in retirement because they had not had the opportunity to save throughout their careers.

What will be the next steps in implementing Secure Choice?

The law will go into effect on January 1, 2017, and will authorize the Secure Choice Board, chaired by Treasurer John Chiang, to begin the development of the program. Over the course of three years we will phase in employers by company size; ultimately, all employers with five or more employees will be required to participate.  We still have a lot of work to do to educate consumers about what's going to happen and why it's important. We have seven million people in California who will be eligible for this, so we need to take them all on a journey to educate them about the importance of retirement savings, and the power of saving early so that you compound your principal investment.

We've scaled the mountain and withstood the powerful, well-moneyed opposition, but now we need to roll up our sleeves and take this to the people to make sure the outcomes are positive.

The Department of Labor recently issued a proposed rule that would pave the way for local governments to follow California's lead in providing retirement plans. What advice would you give to other states wishing to provide their own retirement savings plans?

I'd say the critical thing that is going to help expand these policies is leadership — both nationally and within states. This leadership needs to be bipartisan, as it was in California, and they need to step up and make their fellow politicians understand that their citizens are hurting in retirement. They have a choice: they can represent the people and try to increase access to retirement benefits, or they can represent the interests of Wall Street and do nothing. The good news is that the concept of state-backed retirement savings has caught on like wildfire.  We know of at least 15 other states that are following our lead with plans to adopt similar programs in the future, and we couldn't be more excited.

Cross-posted from Cities Speak

Where you live determines your health as well as your proximity to opportunity. However, deep patterns of discrimination, racial segregation, and decades of federal, state and local policies have dictated where people live and the opportunities to which they have access. Despite advances in public health and improved economic prosperity, poor health outcomes disproportionately affect low-income communities and communities of color.

We cannot ignore how historical, systemic and structural racism has also shaped our nation’s cities and towns, resulting in disparities in education, housing, employment and health. Low-income communities and communities of color are still feeling the impacts of those decades-old decisions today. For these communities, the lack of key resources and services results in poor and costlier health outcomes, which are referred to as health inequities. Simply put, race and place matter when it comes to health and well-being.

In addition to having serious health consequences for individuals and families, health inequities negatively impact the economic competitiveness and vitality of cities through lost potential and productivity.

• In 2000, the infant mortality among African Americans occurred at a rate of 14.1 deaths per 1,000 live births, which is more than twice the national average of 6.9 deaths per 1,000 live births that same year
• Children who experience hunger are more likely to be in poor health and have behavioral and emotional problems in schools. Additionally, children experiencing hunger are more likely to repeat a grade and require special education services
• Researchers estimate that childhood lead exposure in homes costs society over $50 billion per year due to lost economic productivity resulting from reduced cognitive potential

Now more than ever, municipal leaders have a responsibility to lead the way in partnering with communities to reimagine, design, and plan healthy places for residents to live, learn, work, and thrive.

 “Economic development is integral to having a healthy community. If we can address the economic issues in our neighborhoods, we can help people live healthier lifestyles,” says Mayor Mark Holland, Unified Government of Wyandotte County, Kansas City, Kansas.

Read more > > >

Cross-posted from Living Cities