Pixar Neighbors Call for a Community Benefits Agreement

Over a year ago, a coalition of Emeryville residents, EBASE, labor unions, and housing and social service providers presented to the Planning Commission a proposal for the Pixar expansion project to help address community needs and the impacts of the project on the community.  They proposed that Pixar sign a Community Benefits Agreement (CBA) with the coalition that included:

What is a Community Benefits Agreement?

A Community Benefits Agreement (CBA) is a legally binding agreement signed by a developer and representatives of the community. It spells out the benefits that the developer (in this case, Pixar) agrees to provide to the community as part of the development. In exchange, the community agrees to support the development. CBAs are a way for the community to make projects better, and also for developers to get support for projects that will benefit the community.

Has Emeryville required community benefits from any other developments? Do any other cities require CBAs from developers?

The City of Emeryville required a number of community benefits of Chiron when it expanded its corporate headquarters in 1998. As part of their lease agreement, Chiron is required to pay a combined fee of $60,000 per year for 27 years towards Emeryville’s senior center, schools and childcare center. The company was also required to build a public park, provide community meeting space, run educational programs in the Emeryville schools and make an effort to hire locally. While these benefits are contingent on a City subsidy, they go far beyond what the coalition is asking from Pixar.  Chiron's development fees, public infrastructure construction and community benefits total over $27 million over the life of the agreement.  Download a summary of public benefits from the 1994 development agreement here:  Summary of Chiron Community Benefits (100k).

In south Berkeley, the Berkeley City Council required Bayer to sign an agreement providing a similar range of community benefits before that company could build. Both San Jose and Los Angeles have required CBAs as part of development deals, and are considering policies to make them a legal requirement for future development. 

If people demand community benefits, won’t it scare away Pixar and other businesses?

According to the Oakland Tribune, Pixar spent $100 million on the first phase of their construction. It’s likely that they will spend even greater amounts on the next two phases. According to the company’s recent reports, Pixar is in very good financial shape, with over $650 million in cash assets. Compared to these amounts, the benefits the community is asking for are tiny. It’s very unlikely that Pixar would leave town rather than provide them. Also, Emeryville has attracted scores of retail, hotel and high-tech businesses over the last decade. The City is in a position to ask future businesses and developers to do more for the community before approving their projects.

Isn't Pixar doing enough for the community through its charitable contributions?

Over the past three years, Pixar has made a number of donations to charities in Emeryville.  Pixar's charitable giving is commendable.  But, it does not give Pixar the right to develop however they want.  And it does not relieve the City of responsibility of protecting residents from traffic congestion, environmental impacts, the impact on neighborhoods of new high-rise development and loss of affordable housing.