Community Benefits Agreements - Ontario Nonprofit Network

Community Benefits Agreements (CBAs): Development without displacement

Graphic source: Hamilton Community Benefits Network

Economic development activities are said to improve the economy, attract investment, enable job creation and foster prosperity. However, who is responsible for creating prosperity, and who actually benefits from it? Too often, significant economic development takes place without meaningful consultation of the communities directly impacted by such projects, leading to gentrification and displacement.

Community benefits leverage public and private investments in communities to create decent work, affordable housing, and social infrastructure that improve the quality of life for all community members.

Community Benefits Agreements are project-specific legal agreements or contractual requirements of construction, infrastructure, and/or development projects negotiated between communities and public or private developers to ensure that impacted communities can share the benefits of a development without having to fear displacement.

CBAs create targeted employment, training, and apprenticeship opportunities, set new procurement pathways for local and diverse small businesses, social enterprises and suppliers, and improve neighborhood amenities. They also help generate public support for economic development projects. When designed and implemented well, CBAs can be mutually beneficial for developers, small businesses, local communities, workers, and government.

Ontario’s policy history with Community Benefits Agreements

The Infrastructure for Jobs and Prosperity Act, June 4, 2015

The Ontario Infrastructure for Jobs and Prosperity Act (2015) was passed on June 4, 2015. The Act provides the planning framework for delivery of public infrastructure projects across the province, and Community Benefits are included in the principles of the legislation: “Infrastructure planning and investment should promote community benefits, being the supplementary social and economic benefits arising from an infrastructure project that are intended to improve the well-being of a community affected by the project, such as local job creation and training opportunities (including for apprentices, within the meaning of section 9), improvement of public space within the community, and any specific benefits identified by the community.” However, it currently lacks supportive regulations to set the community benefits agreement model into the provincial framework for inter-ministry program delivery, hindering the meaningful and practical implementation of this act.

Metrolinx and the federal government’s funding agreement for CBAs

In May of 2021, the federal government announced historic investment in public transit in GTA, which included a commitment to community benefits agreements. Subsequently, the federal funding for the Ontario Line project is provided through the Investing in Canada Infrastructure Program – Public Transit Infrastructure Stream (ICIP-PTIS) and is confirmed under the executed Integrated Bilateral Agreement (IBA) between the Government of Canada and Province of Ontario. Despite the Community Benefits Agreement being one of the funding conditions, the Ontario Line risks being built without any meaningful benefits for the community. In November 2022, Metrolinx awarded 50% of the project in contracts with private developers, valued at about $15 billion, without any mention of the promised Community Benefits Agreement.

Community benefits cannot end with the launch of directives and policies, such policies must also be well-defined, transparent, with articulated commitments and implemented meaningfully with accountability.

The missing piece: an enabling policy environment in Ontario for CBAs

Despite proven successes where Community Benefits Agreements have achieved additional economic and social goals when embedded in infrastructure projects in Ontario, the current ad-hoc approach limits the ability of CBAs to be applied more broadly, and thus be more effective and implemented with adequate accountability.

With the current ad hoc approach, communities have to advocate and negotiate for CBAs on an individual project basis, if there is capacity to do so through a local network or community organization. In addition, developers often look to the government for guidance, requirements, and targets for CBAs while communities could also use more guidance and support from the government during the negotiation processes.

What is ONN advocating for?

ONN advocates for the development of an Ontario community benefits policy in consultation with local community benefits networks across Ontario. Moving forward, we want government to embed Community Benefits Agreements in all public infrastructure projects to create inclusive and equitable economic development.

How are we advocating for CBAs?

Ongoing government relations with the Ontario Ministry of Infrastructure.
Convening of local community benefits networks and coalitions across Ontario.
Raising awareness of CBAs and facilitating peer learning among municipalities across Ontario.

If you would like to advocate together or have any questions about Community Benefits Agreements, please contact candice@theonn.ca.

Existing community benefits policy and frameworks in Canada

Federal

Infrastructure Canada (INFC): Community Employment Benefits

Provincial

Municipal

Examples of CBAs

City of Toronto and One Toronto Gaming: Rexdale Casino Woodbine Community Benefits Agreement
Toronto: Regent Park’s Community Benefits Agreement
Toronto 2015 Pan Am Games Community Benefits
City of Winnipeg: North End Water Pollution Control Centre
Manitoba: East Side Road Authority Community Benefit Agreement
Vancouver: Olympic Village Community Benefits Agreement

Ways nonprofits can get involved

Read and share our briefing note on Community Benefits Agreements.
Use the resources above to learn about successful case studies of CBAs and their positive impacts, and talk to your elected officials about them.
Support your local community benefits network (Toronto, Parkdale, Hamilton, Ottawa, Peel, Niagara).

Agenda

CBAs