Community Wealth City: Pittsburgh, Pennsylvania

Many people, when they think of Pittsburgh, tend to think of its past as the historic center of the U.S. steel industry. Not surprisingly, the demise of that industry has taken its toll on the city. At its peak in 1943, U.S. Steel alone employed 50,000 workers in the metro Pittsburgh area. Today, it employs less than 5,000. As a result, the “Steel City” has seen a steady population decline. In 1950, the population of Pittsburgh was 677,000. By 2000, it had fallen to half that level or 335,000, similar to the city’s population level of a century before. The Census estimate for 2006 is even lower— 297,000. Of the current population, about two-thirds are white, 27 percent African American, with the smaller remainder Asian, Latino, or other.

The dramatic and sustained population decline would suggest a city in freefall. Yet that impression would not be accurate either. Though not without its problems, Pittsburgh has seen a significant degree of community revitalization and the building up of new industries, including education, health care, and technology. In 2004, former Pittsburgh Mayor Tom Murphy, who at the time was facing an $80 million city government deficit, said to the New York Times, “We're a tale of two cities. We've had … an unprecedented level of development. On the other hand, the underlying financial structure reflects a city that doesn't exist anymore.''

Community wealth building in Pittsburgh has seen rapid change over the past few years and community groups and approaches are playing an important role. The Social Enterprise Accelerator, founded in 2002, has helped make Pittsburgh one of the leading cities nationally for nonprofit business development. The Pittsburgh Partnership for Neighborhood Development, a group that supports community development corporations, adopted a new strategic plan in 2004 that shifts much of its grant money toward a more integrated approach to community development. And, at the end of 2007, the University of Pittsburgh Medical Center and the Pittsburgh Foundation announced a new initiative, funded in part by a 10-year, $100 million commitment from the Pitt Medical Center, which is called the “Pittsburgh Promise.” The program awards scholarships of up to $5,000 each year for up to four years to graduates of Pittsburgh public schools who go on to attend in-state universities. Backed by one of Pittsburgh’s leading anchor institutions, this initiative has the potential both to encourage improvement in the city’s public schools, as well as encourage in-migration to the city for families to take advantage of the scholarship program. A similar effort in Kalamazoo, Michigan, has had positive results.

An overview of community wealth building efforts follows:

Anchor Institutions

Allegheny General Hospital-Northside Leadership Conference partnership
www.pittsburghnorthside.com/6_partnerships/agh.php
Since 1995, the Northside Leadership Conference and Allegheny General Hospital have had an ongoing partnership agreement to work together to achieve common goals. Both parties re-sign this agreement every two years to allow fluidity and adjustment for change. Programs include neighborhood re-investment, education initiatives, a mortgage/neighborhood marketing committee, health services, neighborhood employment, and local purchasing initiatives.

Pittsburgh Promise
www.pittsburghfoundation.org/page10001843.cfm
Established in December 2007 and housed at the Pittsburgh Foundation, The Pittsburgh Promise is designed to help students and families of the Pittsburgh Public Schools System prepare and pay for education beyond high school at a Pennsylvania state college, with scholarships up to $5,000 a year for four years of college. The fund was established through a 10-year, $100 million commitment from the University of Pittsburgh Medical Center. The first $10 million was disbursed this year, while the remaining $90 million is a challenge grant intended to spur a community-wide campaign to raise a total of $250 million to create a permanent endowment to fund future generations of graduates from the city’s public schools.

Community Development Corporations

Bloomfield-Garfield Corporation
www.bloomfield-garfield.org
The Bloomfield-Garfield Corporation seeks to re-knit the social, economic, and physical fabric of the Bloomfield, Garfield, and Friendship neighborhoods of Pittsburgh. Founded in 1975, the organization has helped to develop 60,000 square feet of commercial space along Penn Avenue, which represents $12 million in business investment. The group also runs affordable housing development and youth employment programs.

Central Northside Neighborhood Council
www.centralnorthside.com
For over two decades, Central Northside Neighborhood Council has been committed to removing neighborhood blight and revitalizing Pittsburgh’s Central Northside community through the strategic renovation of vacant properties and building of infill housing as single-family residences, as well as the development of low-income rental units for the elderly, including management of one 111-unit senior housing facility. Additionally the group participates in business development partnerships and a wide range of community and youth-oriented programs.

East Liberty Development, Inc.
www.eastliberty.org
East Liberty Development, Inc., has, since 1979, established residential and commercial development programming to transform the East Liberty neighborhood and provide development services to partner organizations throughout the East End of Pittsburgh. The group controls over $80 million in commercial or residential neighborhood assets and has helped support area commercial development, including by providing loans and technical support to local small businesses.

Friendship Development Associates
www.friendship-pgh.org/fda/about
Since its formation in 1989, Friendship Development Associates has constructed 78 units of housing and developed 29,135 square feet of commercial space. Since 1998, it has also help promote the investment of over $6.4 million in the Penn Avenue Corridor to develop space for artists. Between 1998 and 2005, 69 arts spaces were created along Penn Avenue with six arts organizations creating over 70 arts-related jobs in the Penn Avenue Corridor. All told, there are over 300 artists who are active in the Penn Avenue Arts District.

Lawrenceville Corporation
www.lawrencevillecorp.com
Lawrenceville Corporation is a community development corporation that focuses on bringing investment to the Pittsburgh neighborhood of Lawrenceville. Among its efforts are a streetfront façades program that has improved over 100 storefronts and a housing development project that is creating 33 town houses along Penn Avenue.

Lawrenceville United
www.lunited.org
Lawrenceville United is a non-profit, resident-driven, community-based organization, which was established in May of 2001. As of October 2007, LU had over 460 members. Lawrence United focuses on community organizing and works to complement the development work of the Lawrenceville Corporation

Oakland Planning and Development Corporation
www.oaklandplanning.org
The Oakland Planning and Development Corporation began in 1980 with a focus on real estate development in Pittsburgh’s Oakland neighborhood, but over time it has expanded into the areas of community organizing and workforce development. To date, the group has developed over 320 units of affordable housing. In 2005, its workforce development program placed 416 residents in jobs, more than a third of which paid $10 an hour or more. The group also maintains a $500,000 loan pool to support local neighborhood development.

Pittsburgh Partnership for Neighborhood Development
www.ppnd.org
Founded in 1983, the Pittsburgh Partnership for Neighborhood Development is one of the nation’s oldest local community development intermediaries. PPND provides not only capital to local community development efforts but also vision, strategy and technical and training assistance to the system, as well as providing core operating support to area community development corporations. In 2007, PPND became an affiliate of Local Initiatives Support Corporation (LISC), a national community development intermediary group.

South Side Local Development Company
www.southsidepgh.com/SSLDC/index.php
Formed in 1982, South Side Local Development Company is a non-profit community development organization committed to the historic preservation and economic development of Pittsburgh’s South Side. The group operates with a Board of 27 directors who are mostly residents and business owners on the South Side and has a staff of six. The group develops housing through its Neighborhood Development Ventures subsidiary, but more broadly the group has helped led a process of community revitalization. Between1982 and 2003, the neighborhood saw 150 new businesses, more than 120 storefronts were renovated, and over 100 new homes constructed, while the area’s vacancy rate fell from 40 percent to 10 percent.

West Pittsburgh Partnership for Regional Development, Inc.
www.westpittsburgh.org/west_pittsburgh_partnership/index.cfm
West Pittsburgh Partnership for Regional Development aims to strengthen and revitalize the western neighborhoods of Pittsburgh. Main areas of work include community planning and advocacy, housing development, business assistance, business recruitment and site location assistance, and employment and workforce development.

Community Development Financial Institutions

CL Fund
www.clfund.com
Started in 1990 as a housing and social service lender, CL Fund has broadened its work by adding small business lending in 1994. CL Fund aims to provide capital and technical assistance to increase employment and expand economic opportunity across 15 counties in western Pennsylvania. To date, CL Fund has placed 380 loans, injecting $38.5 million in capital directly into the region and leveraging an additional $164 million in capital for its borrowers, helping create or retain 2,200 jobs. From 2001 to 2006, its loan volume climbed from $2 million to $10.1 million, while asset volume has climbed 60 percent over those 5 years to $28.5 million.

Northside Community Development Fund
www.nscdfund.org
Established in 2000 by the Northside Leadership Conference, a Pittsburgh-based nonprofit group, Northside Community Development Fund provides loans and financing for businesses and real estate development projects throughout the Northside of the City of Pittsburgh. The loan fund also operates a micro-enterprise fund that makes small loans of up to $35,000 for Northside small businesses for six-year terms with fixed interest rates.

Cooperatives

East End Food Co-op
www.eastendfood.coop
East End Food Co-op is Pittsburgh's only member-owned natural and organic food market, serving the community since 1977. The food co-op has over 6,000 members, employs about 50, and also operates a credit union for its members.

Employee Ownership

HDH Group
www.hdhgroup.com
HDH Group, Inc. opened its doors in December 1982. Each of the three founding owners brought with them long careers with national broker firms. Since 1982, the company has grown from 6 employees to over 100 and now stands as Pennsylvania’s largest privately, employee-owned broker.

Kerotest Manufacturing Corporation
www.kerotest.com
Established in 1909, Kerotest Manufacturing Corporation has been making industrial valves from plastic and steel for use in the natural gas and petroleum industries for nearly 100 years. In 1983, it became an employee owned company. In 2007, the company had 110 employee-owners with estimated sales of $20 million.

Foundations

Forbes Funds
www.forbesfunds.org
The Forbes Funds were established in 1982 to provide emergency financial assistance to nonprofit organizations that were experiencing funding interruptions or short-term cash flow problems, but shifted over time to focus more on building capacity in the nonprofit sector. Today the group supports capacity-building initiatives for human service and community development agencies; funds research to foster responsive, innovative, and sound nonprofit management; and encourages emulation of exemplary practices in the nonprofit sector.

Heinz Endowments
www.heinz.org
With grant making that averages $60 million annually, Heinz ranks among the 50 largest foundations in the country. Areas of focus for this Pittsburgh-based foundation include support for reform of Pittsburgh public schools, revitalizing Pittsburgh’s downtown, and fostering “sustainable innovation,” which the foundation defines as technologies that benefit both the economy and the environment.

Pittsburgh Foundation
www.pittsburghfoundation.org
Founded in 1945, the Pittsburgh Foundation is the 14th largest community foundation in the country. Through donor-designated funds, donors may give to the organization of their choice. Community Fund grants at The Pittsburgh Foundation are awarded in five targeted areas: educational excellence and equity; economic development; families, children and youth; reducing health disparities; and support for the arts.

Green Collar Jobs

Green Building Alliance
www.gbapgh.org
The Green Building Alliance is a non-profit organization that aims to drive market demand for green buildings and green building products in western Pennsylvania. Since 1993 the group has aimed to promote green building in the Pittsburgh area. Among its accomplishments, the group has helped the City of Pittsburgh develop more than 2,748,910 square feet of LEED-certified space, placing the city eighth in the nation in this category.

Sustainable Pittsburgh
www.sustainablepittsburgh.org
Sustainable Pittsburgh is a nonprofit that aims to affects decision-making in the Pittsburgh region to integrate economic prosperity, social equity, and environmental quality by bringing sustainable solutions to communities and businesses. The crux of its work centers on building a network of individuals, businesses, and organizations that work together around the common commitment to sustainability, and which work to create and implement an action agenda. The group also hosts an annual regional conference on sustainable development.

Social Enterprise

Ambiance Botique
www.ambianceboutique.org
Ambiance Boutique is a high-end women's consignment boutique that is 100-percent owned by the nonprofit Bethlehem Haven, a group that provides emergency shelter, transitional housing, medical support, and employment services (Project Employ) to Pittsburgh-area women. Revenues were $236,000 in FY 2006, with net earnings of $13,000. The nonprofit opened a second store in 2007. It aims to raise sales to $625,000 by 2009, with a net revenue goal of $100,000. Beyond its financial contribution, Ambiance also provides all Project Employ participants (about 45 annually) with professional attire and makeover services to increase employability; on occasion, it also provides internships to Project Employ participants.

Construction Junction
www.constructionjunction.org
Construction Junction works to support and promote conservation through the reuse of building materials, striving to keep usable building materials out of the landfills and provide them to the community at very low cost. From 2000 to 2006, Construction Junction increased revenues 327 percent, from $184,000 in 2000 to $788,000 in 2006. Through its operations Construction Junction diverts 50 tons of reusable building materials from landfills every month.

Manchester Bidwell
www.manchesterbidwell.org
Manchester Bidwell and its subsidiaries, Manchester Craftsmen's Guild and Bidwell Training Center, operates a major jobs training center and community arts program. Founded in 1968, nonprofit Manchester Bidwell has grown to have a $3 million budget (less than $400,000 of which comes from donations, with the rest of its income generated by its programs). The group operates a 40,000 square-foot production greenhouse, a 70,000 square-foot medical technology complex, and a 62,000 square-foot facility that includes a 350-seat music/lecture hall, library, arts studios, and an award-winning audio-recording studio, MCG Jazz.

Sarah Heinz House
www.sarahheinzhouse.org
Founded as a settlement house in 1913, Sarah Heinz House is the largest independent Boys & Girls Club in the country with an annual budget of $2 million, 14 percent of which is earned income. The group recently expanded its facilities and plans to offset increased operating expenses with additional earned income. The first priority is the café. The goal is to generate unrestricted income for programs while connecting the café to their mission of increasing the nutrition of meals served, maximizing retail opportunities, and introducing programming into the café, such as nutrition/cooking classes and leadership/café training for youth.

Social Innovation Accelerator
www.acceleratenow.org
The Social Innovation Accelerator, a nonprofit group founded in 2002, aims to increase the sustainable social impact of nonprofit organizations in the Pittsburgh area through the development of earned income initiatives. The nonprofit group works primarily with a “portfolio” group of selected nonprofit partners, and employs strategic investments, engaged coaching, and outcomes measures to assist social enterprises to grow their leadership teams, hone their strategies, and increase their sustainability.

Union Project
www.unionproject.org
Founded in 2001, the Union Project has become a community center with 20 employees, four operating social enterprises, and extensive educational and community programming. A cooperative ceramics studio and a stained glass restoration company, which employs ex-offenders, have been established, and a production ceramics facility is in the works. In addition, there is a community café, as well the renting of office, studio and gathering-space.

State and Local Policy

Pittsburgh Community Reinvestment Group
www.pcrg.org
Formed in 1988, the Pittsburgh Community Reinvestment Group brings together community groups and area banks to address community reinvestment issues. Working through partnerships, PCRG has created fifteen community-lending relationships with local financial institutions committing them to sound and equitable lending in Pittsburgh's communities and contributing to community revitalization and the production of affordable housing. PCRG also works on related issues concerned the disposition of vacant property and anti-predatory lending campaigns.

Urban Redevelopment Agency of Pittsburgh
www.ura.org
Incorporated in 1946, the Urban Redevelopment Agency of Pittsburgh undertook the first privately financed downtown redevelopment project in the United States -- Gateway Center. Since then, the URA has constructed and rehabilitated tens of thousands of homes, reclaimed thousands of acres of environmentally contaminated brownfield and riverfront sites, and assisted hundreds of businesses in neighborhoods throughout the City of Pittsburgh.

University Partnerships

Bayer Center for Nonprofit Management
www.rmu.edu/OnTheMove/findoutmore.
about_rmu?iattr=redirect&ipage=1680
The Bayer Center for Nonprofit Management at Robert Morris University was founded in 1999 and offers workshops on topics such as: collaboration, technology, innovative financing, human resources, and other nonprofit management topics. The Center offers a variety of academic programs; provides information and referral services; conducts applied research; and serves to convene in-depth discussions on the problems of society addressed by nonprofit organizations.

Institute for Social Innovation, Carnegie Mellon University
http://www.heinz.cmu.edu/isi
The mission of the Institute for Social Innovation at Carnegie Mellon University’s John Heinz III School of Public Policy and Management is to foster innovation and entrepreneurship among individuals and organizations driven by a social mission, through education, research, and local and global partnerships. Course topics include social enterprise, micro-enterprise, and an incubator practicum where students develop business plans for social enterprise businesses.

Nonprofit Leadership Institute, Duquesne University
www.nli.duq.edu/nli/main.cfm
The Nonprofit Leadership Institute is a resource center for nonprofit leadership. Founded in 1996 at the request of southwestern Pennsylvania's foundation community, the group is supported by Duquesne University, local foundations grants, and by registration fees from program participants. It operates within the University's School of Leadership and Professional Advancement and has developed a Masters of Science program in Community Leadership, which aims to provide professional development for existing community activists and assist leaders of community-based organizations to enhance their impact within the community.

Technology Consulting in the Community, Carnegie Mellon University
www.cs.cmu.edu/tcinc/index.html
Technology Consulting in the Community is a special university-community learning partnership. Non-profit organizations, schools, and government agencies improve their technology use, management, planning and integration by working with Carnegie Mellon students. Students develop technical consulting and management skills while collaborating on site with a leader of a local organization. Formed in 1998, to date the program has worked with over 180 organizations through 200 partnerships.