[4] Developments can cause inner-city gentrification, pushing out low-income residents as housing prices rise, or they may create only low-wage retail and service sector jobs.
As a result, many metropolitan regions continue to experience problems related to poverty and housing, despite major investments in economic development.
[6] As local governments grappled with their responsibility to shape development and land use patterns, the community benefits movement emerged to challenge conventional thinking and offer a broader vision.
Organizations allied with the community benefits movement have pressured the public sector to play a more strategic role in land use planning and urban growth, and to leverage economic development subsidies toward the creation of good jobs, affordable housing, and neighborhood services that improve the quality of life for all residents.
[5] The community benefits movement began in Los Angeles, with successful implementation at mixed-use projects at Hollywood and Highland,[7] and Staples Center / LA Live.
[17][18] Organizing and maintaining a coalition, facilitating compromise and crafting a shared agenda are essential to creating a successful CBA.
To address this issue, CBAs have included periodic reporting and disclosure requirements, complaint investigation mechanisms, and provisions establishing oversight committees.
[23] Although numerous CBAs have proven to be successful tools to improve the economic development process, a variety of criticisms have emerged.
A report from the New York City Bar Association has also questioned whether CBA negotiators will drive appropriate bargains with developers, and whether CBAs will interfere with the planning process.
[29] In preparation of the 2010 Winter Olympics, the city of Vancouver, British Columbia, Canada, awarded a contract to Millennium Development Corporation to build its 600,000-square-foot (56,000 m2), 600-unit athletes' village on south east False Creek.
[30] The CBA included investment and support from the Canadian Federal Government, BC Provincial Government, the City of Vancouver and Building Opportunities with Business Inner-City Society Building Opportunities with Business (a community economic development non-profit also known as BOB) these parties collectively are recognized under the Vancouver Agreement.
[31] The CBA also received support from Bell, VanCity, the Canadian Housing and Mortgage Corporation and the Vancouver Regional Construction Association.
Though the Olympic Village was widely criticized for going over budget, in a 2008 report to the City prepared by BOB the creation of 120 jobs with procurement closer to $50 million is cited.