Healthier Communities Through Access to Banks

Financial Institution Partnerships for the California Endowment's 14 Building Healthy Communities Sites

Site Listing: Boyle Heights City Heights Eastern Coachella Valley Del Norte County & Adjacent Tribal Lands East Oakland Central/SE/SW Fresno South Kern County Long Beach SW Merced/East Merced Richmond East Salinas (Alisal) Central Santa Ana South L.A. South Sacramento

Access to mainstream financial institutions—and all the economic resources they represent—is a key determinant of a community’s health.

As a result, The California Endowment (TCE) has asked Emerging Markets, Inc. to help engage banks in each of its fourteen Building Health Communities (BHC) sites. We have aimed to do so in a way that is driven by the priorities and aligned with the strategies laid out in each site’s Community Plan.

For each community, we are reviewing the Plan, looking for areas where a financial institution could help to achieve community goals. We then map the financial service landscape in each site and interview bank leaders to ascertain their own interests, capabilities, and receptivity to partnership. Finally, we identify the natural points of commonality between the community’s plan and the bank’s operations, recommending the select few partnerships we consider most promising in light of the neighborhood’s particular economic circumstances.

Boyle Heights TOTAL COMMUNITY DEPOSITS: $601,908,000 ADDRESS BANK OF AMERICA 1 2305 E Cesar Chavez Ave 2 2400 N Broadway

3 4

MARKET SHARE BY DEPOSITS

DEPOSITS

MARKET SHARE

$335,891,000

56%

4% 1%

1308 S Soto St 3475 Whittier Blvd

6%

CHASE 5 2301 E 1st St 6 1350 S Soto St

$85,990,000

WELLS FARGO 7 2511 Daly St 8 3800 Whittier Blvd

$70,130,000

12%

EAST WEST BANK 9 2601 N Broadway

$40,401,000

7%

CITIBANK 10 3479 E 1st St

$38,353,000

6%

PAN AMERICAN BANK 11 3626 E 1st St

$25,267,000

4%

$5,876,000

1%

7%

14%

12%

US BANK 12 2708 E 1st St

N

Rd

on

t

ss i

5

NM

i

Valley B

A ve

101 tS

t

rn

1s

10

lvd

N Ea

W

bra Ave am h l

N Broadway

2 9 S i ng Spr

14%

A

7

110

56%

e st

710

1

10

St

12 E 1

st S

t

10

3 6

4 E8

th S

t

Indiana St

S Alameda St

E 4th

5

8

Wa shi n gton Blvd

½ MILE BUFFER AROUND BANK

11 60

Whittier Blvd

5

TARGET NEIGHBORHOOD BOUNDARY

E Olym

pic Blv

d

Prepared by Emerging Markets, Inc (2010)

In Boyle Heights, the recommended bank partnerships are, first and foremost, intended to increase access to jobs in the health care industry (Target Change #8 in the Plan) and household wealth (Target Change #7).

They are also designed to expand health care coverage (Target Change #1), recreational green space (Target Change #3), and the availability of affordable housing (Target Change #6). The principal partners for this work would be Bank of America and JP Morgan Chase. Specifically, we recommend that: • Bank of America could help create health career ladders for residents. In 2008, Bank of America

awarded $1 million to White Memorial Hospital to provide recruitment, training, scholarship, and internship programs for Boyle Heights residents. Bank of America can consider an additional grant to White Memorial for the continuation and expansion of this work in cooperation with the California Endowment.

Since much future job growth in the future will be related to health education, nutrition, diabetes prevention, and other activities; the grant may want to focus on funding promotoras who can work toward permanent jobs at White Memorial or the community clinics.

• JP Morgan Chase could be engaged in the financing of FQHC’s in Boyle Heights. As Health Care

Reform unfolds by 2014, adequate health coverage in the neighborhood will depend on the expansion of federally-qualified community clinics that can support major hospitals like White Memorial by providing preventative, diagnostic, and aftercare services for their patients. FQHC’s like Oscar Romero, Altamed, or others will need to expand or open facilities in the neighborhood. JP Morgan Chase has dedicated a fund to the financing of clinic construction, expansion, and equipment purchases. Through structured partnership, Chase can concentrate such financing in Boyle Heights.

• Bank of America could deliver financial education throughout Boyle Heights. Bank of America has

adopted a national priority of funding financial education and “asset-building” programs that promote household budgeting, saving, public benefits utilization, and other wealth building strategies. In Boyle Heights, the Bank can train and fund multiple nonprofits to provide such services and then organize them into an integrated delivery system. Health promotoras could be cross-trained to offer financial education, too. Programming could also be aligned with White Memorial’s career pipeline so that recent hires could have access to personal financial counseling.

• Bank of America could leverage investments for Evergreen Park. In 2008, Bank of America partnered

with the LA Dodgers and Kids in Sports to improve the baseball diamond, construct outdoor lighting, and expand sports programming on-site. The bank funded LANI to lead a community engagement process that resulted in comprehensive plan for improvements for Evergreen Park. Bank of America and TCE could together use this comprehensive plan to leverage public and private dollars to fully realize the community plan for this local green space.

• Chase, Bank of America, and Wells Fargo could jointly invest in affordable housing. Each of

these three major financial institutions, as well as others, has a community development department and community lending division that invests in affordable housing. Each tends to evaluate potential housing projects in a one-off manner, without focusing on the specific neighborhoods where the projects are located.

TCE can bring together to the major community development officers in the region to review all of the potential developments in Boyle Heights and consider cooperative financing of multiple projects in close proximity to one another. While financing of affordable housing construction is addressed in a different unit than origination or servicing of residential home mortgages, TCE may also wish to explore solutions to local foreclosure issues with bank personnel.

This is a starting point toward partnership strategies. As a next step, Emerging Markets can either assist or recommend next steps aimed at jumpstarting the working relationships.

Specifically, we can: (1) facilitate conversations between you and the health clinic fund manager at Chase and help to identify an initial pipeline of investment proposals from local clinics; (2) assist in developing a new funding request from White Memorial to Bank of America and convene a meeting with representatives from the medical center, Bank of America, First Five, and TCE to design a promotoras program; (3) help Bank of America to design a Boyle Heights-specific asset-building program tied to the promotoras and White Memorial; (4) Convene community development officers from the major banks to review the current portfolio of proposed housing developments in the area; and (5) revive the capital formation process for Evergreen Park, identifying potential sources and fundraising strategies.

City Heights TOTAL COMMUNITY DEPOSITS: $1,147,818,000 ADDRESS 3 4

BANK OF AMERICA 5 3101 University Ave 6 6801 El Cajon Blvd

7

UNION BANK 8 2927 University Ave 9 6010 El Cajon Blvd

DEPOSITS

MARKET SHARE

$265,716,000

23.1%

$240,660,000

21%

$231,361,000

20.2%

3490 College Ave 4440 Wightman Ave

10 11

1666 Euclid Ave 4390 University Ave

11%

14

6670 Montezuma Rd

$125,307,000

10.9%

CITIBANK 17 5998 El Cajon Blvd 18 3910 University Ave

$47,465,000

4.1%

CALIFORNIA BANK & TRUST 19 4305 University Ave

$13,735,000

1.2%

US BANK 20 3560 El Cajon Blvd 21 3560 El Cajon Blvd

$11,714,000

1%

SAN DIEGO NATIONAL BANK 15 3180 University Ave 16 5100 Federal Blvd

20%

21%

8

2 17 9

Madison Ave

Fern St

805 15

½ MILE BUFFER AROUND BANK

me Ho

6

El Cajon Blvd

Ro

U n iversit

ve yA

University Ave

54th St

l le

Euclid

32nd St

30th St Dr ng hi

4

Blvd

Co

19 11

18

15

Ave

s Per

5

El Cajon

7

20

21 13

land o Blvd

14

15

805

8 1

23%

20% 19.5%

12

1% 1%

4166 El Cajon Blvd

$223,574,000

WELLS FARGO 12 3299 El Cajon Blvd 13 4690 63rd St

4%

70t h St

CHASE 1 3921 30th St 2 4627 College Ave

MARKET SHARE BY DEPOSITS

ge A ve

3 Broadway

Colleg

e Grove Dr

94

e Av Federal Blvd

10 16

TARGET NEIGHBORHOOD BOUNDARY

Prepared by Emerging Markets, Inc (2010)

Relative to those BHC communities with very few banks, City Heights is comparatively well serviced by the major financial institutions: Chase, Wells Fargo, Bank of America, etc. But our recommendation is that TCE form a close working relationship with Chase, which has designated the area for its own place-based initiative.

Chase can play an instrumental role in two of the four priority outcomes identified in the BHC Plan: Outcome 5: Families are safe from violence; and Outcome 7: Neighborhood environments support health.

Since the four priority outcomes in the BHC plan are focused explicitly on health and violence protection, and Chase is emphasizing economic development, the two efforts are clearly complementary in the two efforts.

Whereas, in some sites, the role of banks will be to support the economic strategies that help to realize the BHC plan’s outcomes; in City Heights, TCE and Chase can “divide and conquer.” More specifically, Chase can help the BHC partners to realize Outcome 8, which aims to link health outcomes to economic development (and which was deprioritized in the planning process).

• Chase can co-fund violence prevention/youth development. The JP Morgan Chase Foundation has

identified education and youth development as a major focal point of their giving in City Heights. To the extent that such strategies keep families safe from violence and ensure that youth have productive alternatives to gangs, this can be a point of collaboration. Currently, Chase funds Big Brothers/Big Sisters of San Diego to operate a mentoring program at five Title I schools in City Heights. It is recruiting and training young men in the area to be mentors. Chase funds the Chicano Federation, which operates out of a mixed-use development in a section of City Heights that is part of the city’s redevelopment area – it provides youth-oriented programs and early childhood development services to a population that is more than onethird City Heights residents. There is ample opportunity for a coordinated grantmaking strategy between Chase and TCE.

• Chase can invest in healthier, “greener” housing stock. The older housing stock in City Heights is in

need of repair, including new roofing, plumbing systems, asbestos removal, and painting. But repairs provide an opportunity to do something more: to bring the structures to up to a higher environmental standard.

The JP Morgan Chase Foundation has funded Wakeland Housing and Development Corporation was funded by Chase to carry out “green” rehabilitation of 93 units of affordable housing at its Village Green Apartments. The housing is not only more energy-efficient (with lower utility bills for tenants) but also constitute a best practice that can be introduced throughout the neighborhood. A combination of core operating support to Wakeland from the Chase, and a public education strategy mounted through the Mid-City Community Advocacy Network (CAN) could bring this strategy to neighborhood scale.

• Chase can lead economic development in City Heights. On the housing front, Chase is funding

Community Housing Works (CHW), an organization that was founded in a City Heights garage to provide first–time mortgage assistance, foreclosure prevention, REO acquisition and rehab, and other housingrelated services. Currently, 29 homes are being rehabilitated in City Heights. And CHW currently has 50 active foreclosure assistance cases in the neighborhood. According to estimates, however, there are 2,722 homes in foreclosure in City Heights, so a larger scale response will be required. Over the past two years, Chase has prevented 400,000 foreclosures through the opening of Community Home Ownership Centers (CHOCs), where residents speak to live counselors regarding their delinquency and to pursue workout alternatives. TCE may wish to ask Chase to open a CHOC in City Heights.

• For small businesses, Chase is funding Accion, a city wide organization, to deliver business assistance and micro-lending programs in a concentrated way in City Heights. It currently has seven small business clients in the neighborhood and plans to expand. The business owners reflect the diversity of City Heights: 70% are

people of color and almost half are women. LISC: Chase is funding LISC in its efforts to grow a commercial district in the Colina Park area of City Heights. LISC is also helping to grow the capacity of the City Heights CDC, MAAC project, and International Rescue Organization. • Finally, in the area of workforce development, Chase is supporting the International Rescue Organization, an immigrant services agency in City Heights to help professionals who are not credentialed in the United State to resume their education. IRO has found that 75% of their clients who are on TANF are actually trained to surgeons, lawyers, accountants, veterinarians, or other professionals in their home country. But they are unable to apply their skills here. It is a strategy that is particularly well-suited to the economic needs of this diverse immigrant community.

To integrate the work of the Chase and BHC Initiatives, we recommend a close working relationship between you and Myeisha Peguero Gamino, Program Officer of the JP Morgan Chase Foundation. A principal foundation of this alliance will be to try to align the populations being served by the two sets of granters, so that the same families are receiving both health-related and economic support services. Furthermore, since both TCE and Chase emphasize on building the capacity of local organizations, there are ample opportunities to combine forces on this front too.

Finally, there is an opportunity to engage the bankers at the local Chase branch in constructive conversations with local stakeholders. By learning to understand the populations of the various community groups as “customer segments,� they can more effectively meet their financial needs. It may even be possible to incorporate this work into the performance objectives of the bankers.

Eastern Coachella Valley TOTAL COMMUNITY DEPOSITS: $53,845,000

MARKET SHARE BY DEPOSITS

ADDRESS

DEPOSITS

MARKET SHARE

RABOBANK 1 1491 6th St

$28,793,000

53%

BANK OF AMERICA 2 83017 Avenue 48

$16,313,000

30%

$8,739,000

16%

WELLS FARGO 3 49201 Grapefruit Blvd

16%

30%

2

53%

10

3 1

86S

111

½ MILE BUFFER AROUND BANK

TARGET NEIGHBORHOOD BOUNDARY

Prepared by Emerging Markets, Inc (2010)

In the Coachella Valley, the recommended bank partnerships are limited. Economic development was not ranked highly as a priority area, and the retail banking infrastructure in the community is minimal. Plan priorities that could link to financial institutions included park and housing development (Outcome #4); conversion of community markets (Outcome #4); tribal land economic development (Outcome #4); and expanded neighborhood based outreach and education (Outcome #6). The principal partners for this work would potentially include Bank of America, Wells Fargo, and RaboBank. Specifically: • Bank of America could further invest in affordable housing developments. The BHC Plan

emphasizes the need for well-maintained, affordable housing stock for the local population. Fortunately, the region boasts one of the state’s more accomplished housing providers, the Coachella Valley Housing Coalition (CVHC), which has built over 1,700 units in the area in the past 30 years. Bank of America has a robust relationship with CVHC that can be continued and expanded. The bank is in the process of financing two new developments — the Fred Young Apartments in nearby Indio, and the Brisas de Paz in Desert Hot Springs. TCE can engage Bank of America to continue its partnership with CVHC within the BHC territory. Other larger banks like Wells Fargo can also be approached to investigate community lending efforts in the Coachella Valley.

• Community bank adoption of a local park. The Plan expresses interest in supporting park maintenance,

value, and usage. While not the typical purview of larger banking institutions, a smaller community bank like RaboBank might be engaged to support local amenities. RaboBank is the market share leader in the Coachella Valley and, in 2010, received a $300,000 grant from the federal government for serving economically stressed California communities like Coachella. The new grant money is to be similarly invested. Properly engaged by TCE, RaboBank might consider a small co-investment in a local park.

Vietnam Veteran’s Park and Dateland Park are the park assets closest to the bank branch, but a park near a BHC partner might also be proposed.

• SBA Lending for corner store conversions. The Plan suggests microbusiness approaches to the food

system, such as corner store conversions and small market partnerships. Given the limited retail banking infrastructure in the Eastern Coachella Valley, it is important to make sure that robust delivery of SBA lending programs to small businesses for building purchase and/or renovations are available. Bank of America, Wells Fargo, and RaboBank all have SBA products to offer.

• Bank of America could invest in nontraditional community promoters. The Plan emphasizes

engagement of the local population to educate and promote health care and healthy behaviors. This type of grass-roots outreach, delivered through nontraditional settings such as schools, churches, and health centers, can be expanded in content to include topics outside of health, such as financial health. Through the same community outreach infrastructure, basic financial literacy and asset-building education can be delivered.

Bank of America has supported integration of financial education into a promotora model in other markets, and might be willing to underwrite a similar model in Coachella Valley.

• Economic development activities with sovereign tribes. The target area is nearby the tribal

headquarters of the Torres-Martinez Desert Cahuilla Indians and the Cabazon Band of Mission Indians, located in Thermal and Indio, respectively. Both tribes own and operate casinos that generate substantial revenue and employment. We do not believe that these economic engines are necessarily suitable for TCEbanking partnership activity, but wanted to note them.

• Banks could target outreach to homeowners at risk of foreclosure. Major banks are employing a range

of strategies to minimize the number of home foreclosures. These range from renegotiated “workouts” to principal reduction. In some cases, where short sales are required, efforts are made to resell the homes to

residents of the same community. Although these efforts are typically undertaken as bank-wide policy, TCE may persuade one or more banks to undertake targeted outreach within the Coachella Valley. Candidate banks would be those with large portfolios of mortgages nearing foreclosure. By co-sponsoring corresponding community events or educational efforts, TCE could be a decisive in holding the banks’ attention on Coachella, where there are over 2,200 foreclosures already documented.

This memo is a starting point toward partnership strategies. As a next step, Emerging Markets, Inc. can either assist or recommend next steps aimed at jumpstarting working relationships. These next steps could include: setting a meeting between TCE, Bank of America, and CVHC around potential new housing developments; ascertaining RaboBank’s interest in leveraging the BHC model; conducting initial interviews with Wells Fargo and Bank of America about grass roots financial education via a promotora model; and proposing concentrated outreach to families at risk of foreclosure at the institutions with the largest mortgage portfolios.

Del Norte & Adjacent Tribal Lands TOTAL COMMUNITY DEPOSITS: $194,338,000 ADDRESS

MARKET SHARE BY DEPOSITS

DEPOSITS

MARKET SHARE

BANK OF AMERICA 1 240 H St

$54,208,000

27.9%

CHASE 2 808 3rd St

$52,038,000

26.8%

TRI COUNTIES BANK 3 936 3rd St

$36,578,000

18.8%

NORTH VALLEY BANK 4 1492 Northcrest Dr

$26,452,000

13.6%

US BANK 5 1020 3rd St

$25,062,000

12.9%

4

13% 14% 19%

28%

27%

101

N ort st D hcre r

CRESCENT CITY

e ach

St

A

9th

St

St

e bbl eB

E

SP

Dr

2 3 1 tS

n Fro

½ MILE BUFFER AROUND BANK

5

t

TARGET NEIGHBORHOOD BOUNDARY

101

Prepared by Emerging Markets, Inc (2010)

In Del Norte County and the adjacent tribal lands, recommended bank partnerships are intended to, first and foremost, increase access to jobs and entrepreneurial opportunities via highly local economic development (Outcome #8 Target Changes #1 & #2 in the Plan). They are also designed to address issues of health hazards in the home (Outcome #7 Target Change #2). Currently unconfirmed, the principal partners for this work could be local community banks North Valley and Tri Counties, and Wells Fargo. Specifically: • Local bBankers can mentor youth interested in retail banking. The Plan is clear that a skills disconnect

exists between the educational system and viable careers. An appetite is expressed for linking local business leaders to youth, likely taking the form of individual mentorships, internships, and potential hiring pipelines.

Bank executives could be connected to aspiring bankers through existing platforms, such as the Economic Advisory Council and an existing high school promoting a business apprenticeship program. Local community banks such as North Valley Bank and Tri Counties Bank are best situated for these highly local relationships.

• Expanded small business lending. The Plan emphasizes local employment via small business

development. At a statewide level, larger banks can be asked to reassess their small business lending goals for the Del Norte regional market. Often in smaller markets, business lending is not prioritized by larger banks such as Chase and Bank of America – especially as the banking industry emerges from a tight credit market.

Influence at the state level could translate to greater outreach and urgency to help fund small but expanding businesses that employ locally.

• Mold remediation grant funding. The Wells Fargo Housing Foundation annually awards a Focus

Communities grant for affordable housing development or home rehabilitation. The grant requires a 1:1 match and a local nonprofit administrator. TCE could assist a Del Norte intermediary to apply for the funds and advocate at a national level to Wells Fargo executives, establishing a remediation fund to address mold, which impacts 26.8% of all low-income residents in the county.

• Investment in the Crescent City Farmers Market. Commercial real estate lending can potentially be

brought to bear to build a permanent structure for the Crescent City Farmers market, a hub of fresh food and economic activity. Funding could come directly from banks, or via the FreshWorks Fund that has substantial bank participation. Such community lending has the potential of securing a loan guaranty from the USDA, a partner of TCE.

This is a starting point toward partnership strategies. As a next step, Emerging Markets can either assist or recommend actions aimed at jumpstarting working relationships. These next steps would likely include: setting up a conversation between TCE and the Wells Fargo Housing Foundation, testing interest in a jointly funded mold remediation fund; reaching out to the business lending lines at large banks like Chase and Bank of America about their lending goals in the Del Norte market; or inquiring with local banks about their interest in youth mentorship.

East Oakland TOTAL COMMUNITY DEPOSITS: $314,682,000 ADDRESS

DEPOSITS

MARKET SHARE

$102,894,000

32.7%

UNITED LABOR BANK 4 100 Hegenberger Rd

$87,091,000

27.7%

CHASE 5 3310 International Blvd 6 10800 International Blvd

$70,735,000

22.5%

CITIBANK 7 3301 E 12th St

$26,613,000

8.5%

WELLS FARGO 8 433 Hegenberger Rd

$18,994,000

6%

BANK OF THE WEST 9 3062 E 9th St

$8,355,000

2.7%

BANK OF AMERICA 1 3251 International Blvd 2 6900 Bancroft Ave

3

23% 28%

e

Av

1 5 7

M

o nt

A llo ic e

ve

55

3

th

Hillm o

ve

Ma cA rth

A

12

th

580

ur

vd

Bl

Foothill Blvd

E

33%

r

hA ve

th

9%

D nt

t

9

6% 3%

3000 E 9th St

38

29

MARKET SHARE BY DEPOSITS

St

ina

ry

ve

A

2

em

S

py

7

ve dA r 3

g He

e rg be n e

rE

x

81s

ve tA

ve

hA

90t

880 85th

e Av

Sa

n

Le an

dr o

St ve

th A

ai

M

8

105

6

tla nd Dr

½ MILE BUFFER AROUND BANK

4

TARGET NEIGHBORHOOD BOUNDARY

Prepared by Emerging Markets, Inc (2010)

In East Oakland, the recommended bank partnerships are primarily designed to support a healthy built environment, centered around stable housing and fresh food retail, as well as mechanisms to increase income and grow family assets. Complimentary bank investments could support new affordable housing developments in East Oakland, as well as capitalize loan funds that can finance new full service grocery stores to serve the community (Outcome #4). Neighborhood-based outreach and financial education can help reduce unsafe banking practices and encourage residents to undertake healthier financial behaviors such as saving, credit repair, asset-building, and ownership.

Finally, financial institutions can provide the technical assistance and capital to smaller businesses that create new opportunities and living wage jobs for local residents, including those re-entering the mainstream economy (Outcome #8). The principal partners for this work would likely be Bank of America, Chase, and Wells Fargo.

If amenable, United Labor Bank could also play a role in East Oakland. Specifically: • Bank of America could further invest in affordable housing developments. The BHC Plan

emphasizes the need for safe, affordable housing stock for the local population. The community lending units of large banks, including market share leader Bank of America, could invest in subsidized housing in the Bay Area. Locally, Bank of America is currently investing the latest phase (Phase IV) of EBALDC’s award-winning Lion Creek Crossings, formerly the Coliseum Gardens at 69th & Snell. Not far away in San Leandro, the bank is also investing in Eden Housing’s Eden Lodge section 8 housing. Other larger banks like Chase and Wells Fargo can also be approached to concentrate their community lending efforts in East Oakland.

• Major commercial banks could co-invest in healthy food infrastructure. The expansion of

independent supermarket operators, who often lack the capital to finance their expansion plans, contribute to fresh food supply and local employment in East Oakland. Banks can help finance these commercial real estate developments either directly, or through indirect investments like the California Healthy Foods Financing Initiative (CHFFI) fund. Financial capital can be further supplemented with human capital. As the economic environment improves and planning emerges for community based food system businesses (one of the Plan’s priorities), bank expertise can help entrepreneurs evaluate the small business financing options that would be required for successful operations.

• Banks could target investment along International Boulevard. Small business growth is often the best

source of local employment, especially for vulnerable and re-entry populations. As commercial development efforts resurface for International Boulevard, large banks can be approached to consider financial investment in a targeted fashion. Large banks such as Bank of America, Chase, and Wells Fargo each have a diverse toolbox of community investment tools for financing retail development and affordable housing.

In addition, commercial lender United Labor Bank has a local presence in East Oakland and can assist in commercial real estate financing for infill developments like apartment buildings, small office buildings, retail and single tenant spaces.

• Wells Fargo could expand the BankWorks Program. Through the support of Wells Fargo and others,

a “BankWorks” program has been expanded that trains local populations for potential hiring as tellers in financial institutions. While the program has existed primarily in Southern California, it is possible that a similar program could be instituted in the Bay Area where the bank is headquartered.

• Bank of America, Chase or Citibank could invest in financial education and asset-building programs. The BHC Plan emphasizes the need for increased income and wealth, as essential links to

community health improvements. Basic financial education and asset-building programs can be delivered to help residents maximize their incomes and plan for the future. Bank of America and Chase have five local retail branches that could be tapped for volunteer financial counseling within the community. Citibank offers several valuable asset-building products suitable for low-income communities.

• Banks could target outreach to homeowners at risk of foreclosure. Major banks are employing a

range of strategies to minimize the number of home foreclosures. These range from renegotiated “workouts” to principal reduction. In some cases, where short sales are required, efforts are made to resell the homes to residents of the same community. Although these efforts are typically undertaken as bank-wide policy, TCE may persuade one or more banks to undertake targeted outreach within East Oakland. Candidate banks would be those with large portfolios of mortgages nearing foreclosure. By co-sponsoring corresponding community events or educational efforts, TCE could be a decisive in holding the banks’ attention on East Oakland, where there are over 4,000 foreclosures already documented.

This memo is a starting point toward partnership strategies. As a next step, Emerging Markets, Inc. can either assist or recommend next steps aimed at jumpstarting working relationships. These next steps could include: conducting initial interviews with all major banks regarding their interest in investing in supermarkets or affordable housing; ascertaining United Labor Bank’s interest in leveraging the BHC model; inquiring with Wells Fargo about the scale of its BankWorks program; reviewing the appetite for volunteer financial education in East Oakland among the larger banks; and proposing concentrated outreach to families at risk of foreclosure at the institutions with the largest mortgage portfolios.

Central/SE/SW Fresno TOTAL COMMUNITY DEPOSITS: $871,870,000 ADDRESS

MARKET SHARE BY DEPOSITS

DEPOSITS

MARKET SHARE

$263,304,000

30.2%

BANK OF THE WEST 5 2035 Fresno St

$201,505,000

23.1%

WELLS FARGO 6 1206 Van Ness Ave 7 2425 N Blackstone Ave

$152,901,000

17.5%

8

CITIBANK 9 5545 E Kings Canyon Rd 11 2303 Kern St

10

CENTRAL VALLEY COMMUNITY BANK 12 2404 Tulare St 13 570 S Clovis Ave

$38,416,000

4.4%

UNION BANK 14 5669 E Kings Canyon Rd

$36,118,000

4.1%

WESTAMERICA BANK 15 2440 Tulare St 16 2625 Divisadero St

$28,588,000

3.3%

UNITED SECURITY BANK 17 855 M St

$17,060,000

2%

CHASE BANK 18 4848 E Kings Canyon Rd

$5,208,000

0.6%

BANK OF THE SIERRA 19 5775 E Kings Canyon Rd

$1,075,000

0.1%

N Fresno St

3

2 5 12 17 6 10 15 oS

t

½ MILE BUFFER AROUND BANK

E McKinley Ave

41

180

16

E Belmont Ave

4 18

E Ventura Ave

E Butler Ave

TARGET NEIGHBORHOOD BOUNDARY

9

13 14 1 19 8 S Fowler Ave

N Palm Ave

N Chestnut Ave

11

7

n es Fr

23%

3141 N Cedar Ave

E Shields Ave

99

15% 18%

14.6%

W Olive Ave

30%

5642 E Kings Canyon Rd

$127,695,000

W Clinton Ave

4% 4%

1264 Wishon Ave 4445 E Tulare St

N Clovis Ave

3 4

N Peach Ave

BANK OF AMERICA 1 5708 E Kings Canyon Rd 2 2513 Fresno St

2% 1% 0.1% 3%

Prepared by Emerging Markets, Inc (2010)

Relative to other BHC sites, Central/West/Southeast Fresno is well represented by financial institutions.

Within the target area, there are 19 banks, including Bank of America, Citi, Chase, Wells Fargo, Union Bank, and Bank of the West. There are also smaller banks like West America, Central Valley Community Bank, United Security Bank, and Bank of the Sierra. However, in the target area, 50% of families with children are below 100% of the poverty level by far the highest of the 14 places. The challenge, then, is not that there is inadequate banking infrastructure, but that the financial services and opportunities are not filtering down to low income populations or areas of concentrate poverty.

The most strategic opportunities for incorporating banks into the Fresno BHC initiative relate to the economic empowerment of families; increased access to jobs; and small business development (all grouped under Outcome 5, Strategy B in the Plan), as well as improved physical planning (Outcome 4, Strategy A). These are summarized below along with the specific roles that local banks might perform in realizing these: • Bank on Fresno can economically empower families. The Plan aims to support efforts that lead to

the socio-economic empowerment of youth and families. The Fresno BHC planning team recognized that lack of economic opportunities is a leading cause of poor health outcomes and contributes to violence in the community. Of particular concern are those individuals who have had contact with the juvenile justice system. In order to advance the economic standing of these individuals, banks can be mobilized to provide financial education, job and career training, and entrepreneurial/small business assistance. Ideally, such a strategy would involve multiple banks; not just one.

Fortunately, there is already a collaborative structure in place. Bank on Fresno, which includes virtually every bank in the city, can partner with the Endowment’s key youth serving partners to ensure that each of their clients has access to financial knowledge and a bank account.

Bank on Fresno also provides opportunities to advocate among the banks for products that are most useful to the unbanked, such as free or low-cost checking accounts with low balance requirements and limited ability to overdraw funds, as well as accounts for people without standard identification or who are on Chex systems. Constituencies who have been organized through the BHC process can contribute to Bank on Fresno’s advocacy efforts. Bank on Fresno leadership can also work closely with the Endowments’ grantees to incorporate financial education into their ongoing programs in a relevant way. We recommend a close working relationship between TCE and the Bank on Fresno Coordinator, Sevag Tateosian, as well as Yvonne Freve, Vice President of Community Impact at the United Way of Fresno.

• Banks can lead local hiring efforts. The Plan emphasizes the need for local businesses to hire and train

residents, including recent immigrants and young men and boys of color. Fresno already possesses a number of career development and job training programs, but the Plan suggests that the content of their education may not be sufficiently customized to employer needs. Banks may help to advance this process by convening their commercial customers, introducing them to TCE grantees who offer job training. There is often a disconnect between employer needs and the skills being taught to job seekers, so structured sessions of this kind can be very important. The banks may be able to do this through the auspices of the Fresno Regional Workforce Investment Board, although the conversation will need to focus on the BHC target area. Finally, banks themselves offer career ladders that are attainable to those with a high school diploma, since much training is carried out on-the-job.

• Banks can lead small business development. The plan explains the need to support small business

start-ups. Banks can be organized to fund the small business outreach activity of the University of Fresno’s Craig School of Business, the Fresno West Coalition for Economic Development, and the Fresno Merchants Association, which they should also join (if they are not already members.) The Craig School of Business also has a scholarship program for high school students operated jointly with the Merchants Association, which the banks can be encouraged to support. Ultimately, the banks will need to bring their most accessible small business financial products to the table so that entrepreneurs can have the capital they need. Wells Fargo, the Fresno Area Hispanic Chamber of Commerce, and the Valley Small Business Development Corporation have already partnered to expand delivery of services and credit to Hispanic entrepreneurs in the Fresno area and Central Valley. Wells Fargo has provided an EQ2 investment to VSBDC for a revolving loan pool to be administered by the Fresno Hispanic Chamber of Commerce. On its own the Chamber could not qualify for the capital needed for a loan program. But with VSBDC acting as the intermediary, the chamber can now serve as the “face” in extending microloans to Latino business leaders.

• Banks can support improved physical planning. According to the Plan, the timing is ripe for the

community to become engaged in zoning and planning issues as Fresno’s Downtown & Community Revitalization Department is embarking on a series of community revitalization efforts in areas of concentrated poverty. These include commercial districts in the Lowell neighborhood and Fulton corridor, both of which are located in the BHC target area. In particular, young leaders have identified the need to replace unhealthy land uses, such as fast food restaurants and liquor stores (especially those near high schools). Local banks can be organized to aggressively finance small businesses that are deemed desirable by the local constituents, such as healthy restaurants, grocery stores, pharmacies, and even banks. In fact, there may be a possibility of helping to open a new bank branch in one of the priority commercial districts.

To begin exploring these strategies, Emerging Markets, Inc. can facilitate an introduction between TCE staff and the leadership of Bank on Fresno. IT can also identify the appropriate executives in each bank to be convened around a small business development strategy. Finally, we can raise the possibility of opening a new bank branch in the target area with the Fresno market leadership of the major banks.

South Kern County TOTAL COMMUNITY DEPOSITS: $191,608,000 ADDRESS

DEPOSITS

MARKET SHARE

BANK OF AMERICA 1 500 Bear Mountain Blvd 2 2708 Ming Ave

$81,601,000

42.6%

4%

WELLS FARGO 3 2100 White Ln 4 3401 Panama Ln

$40,150,000

21%

11%

CHASE 5 2050 White Ln

$36,021,000

18.8%

MISSION BANK 6 10 Panama Ln

$20,615,000

10.8%

STATE BANK OF INDIA 7 3400 Panama Ln

$7,813,000

4.1%

FINANCE & THRIFT 8 125 N Acala St

$2,724,000

1.4%

SAN JOAQUIN BANK 9 4814 Panama Ln

$2,684,000

1.4%

BAKERSFIELD

2

5

9

MARKET SHARE BY DEPOSITS

4

1% 1%

43%

19% 21%

58

3

7 99

6

8 1

ARVIN

½ MILE BUFFER AROUND BANK

TARGET NEIGHBORHOOD BOUNDARY

Prepared by Emerging Markets, Inc (2010)

South Kern has few banks, and its community-based infrastructure is undeveloped. The recommended bank partnerships are therefore intended to increase economic opportunities, especially through the reduction of small business toxic waste (Outcome 4, Targeted Change 1); the creation of new small businesses (Outcome 8, Targeted Change 2); financial stability support services aimed at helping residents to grow assets (Outcome 8, Targeted Change 4); and workforce development programs (Outcome 8, Targeted Change 5).

• Wells Fargo could capitalize a Toxics Reduction Fund. Given South Kern’s dependence on extractive

and often hazardous industries (including oil fields and open pit mines for borax and borate) the BHC Plan identifies the need for healthier industries. Cleaning up Green Industries can be costly. Small businesses may need to adopt new production processes or acquire new equipment that they cannot afford. A “green EQ2” like the ones made available through Wells Fargo could capitalize a loan fund that could finance these changes at below market rate.

• Banks can support business assistance/micro-lending. The BHC Plan calls for providing services to

support and fund small business creation or expansion. Local residents seeking to start or expand a business would have one central location where they could go for assistance and access to resources. This could also translate to a cooperative model for business support services, providing shared resources or space such as a kitchen for starting businesses. Additionally, business incubation services such as use of a computer, fax, phone, and mailing address, as well as support with business functions such as accounting and billing could be provided to develop the capacity of local businesses through the economic development efforts of the Dolores Huerta Foundation and local Chambers of Commerce. Financial institutions that provide banking services to small businesses (especially SBA loans) should be engaged, as well as bank foundations that can help to fund this work.

• Banks can help integrate financial stability services. Adults in South Kern need to be financially self-

sufficient if order to make healthy choices for their families using existing resources. There are a scattering of programs (like financial education classes, matched savings accounts, credit repair, and tax preparation assistance) that respond to these needs. These are offered by the Dolores Huerta Foundation (which also operates a micro-enterprise program), the Kern County Family Resource Centers, United Way of Kern County (which has a financial stability funding stream), and local high schools. The Plan coordinating these existing programs so that local residents can access them in an integrated way. It also notes the need to engage banks in the programs so as to facilitate the transition to the financial mainstream. South Kern residents can be guided along a pathway toward full financial independence by providing them a “Pathway to financial stability”: a ladder of attainable financial goals. Bank of America has dedicated national human resources to focus on the integrated delivery of financial stability services and could be enlisted as an asset.

• Banks can lead workforce development efforts. Financial institutions, as employers, can play a

leadership role in bringing together the leaders of local growth industries in the South Kern region to help shape a workforce development strategy. Together, they can lay out realistic hiring goals and training needs that can drive the organization of job training programs, community colleges, and adult education centers.

These education programs can also be targeted, with information from the Economic Development Study, to meet the specific needs of local communities. This study and the developing advocacy skills of the local Chambers of Commerce can be used to advocate for changes to policies as well as the Workforce Investment Board (WIB).

Undergirding all of these strategies is an idea cited frequently in the South Kern Plan: the formation of a fully-staffed “one-stop shop” for economic development services. The creation of such a center, which also be a community development corporation (CDC) or community development financial institution (CDFI), could

serve as a major early focal point for the South Kern initiative. It could serve as a galvanizing force capable of bringing together the banks and as an organizing structure for coordinated delivery of all the service described above.

There are a handful of local organizations that should be at the planning table for this effort, including the Arvin and Greater Lamont Chambers of Commerce, the Dolores Huerta Foundation, the United Way, the Business Development Center at Bakersfield College, and the Kern Economic Development Corporation. This planning process could take the form of the South Kern Economic Summit mentioned in the Plan. If it is of interest, Emerging Markets, Inc. can reach out to the appropriate leadership at each bank to test their interest in joining these partners at the planning table.

Long Beach TOTAL COMMUNITY DEPOSITS: $420,980,000 ADDRESS

MARKET SHARE BY DEPOSITS

DEPOSITS

MARKET SHARE

$157,505,000

37.4%

US BANK 4 2633 Cherry Ave 5 3210 E Anaheim St

$63,048,000

15%

UNITED LABOR BANK 6 3750 Kilroy Airport Way

$54,065,000

12.8%

FARMERS & MERCHANTS 7 2801 Atlantic Ave

$48,000,000

11.4%

WELLS FARGO 8 2598 Cherry Ave 9 251 E Willow St

$45,924,000

10.9%

GOLDEN COAST BANK 10 850 Long Beach Blvd

$34,844,000

8.3%

UNION BANK 11 1900 Atlantic Ave

$17,594,000

4.2%

BANK OF AMERICA 1 101 E Willow St 2 600 W Willow St

3

4%

2000 E Anaheim St

8% 11%

37%

11% 13%

15%

405 E Spring St

7 9

E Willow St

11

Ave

Magnolia Ave

W 10th St

10 E 6th St

½ MILE BUFFER AROUND BANK

3

E Anaheim St

Alam

itos

W Anaheim St

Pacific Ave

710

Long Beach Blvd

E Hill St

4

Cherry Ave

1

Atlantic Ave

2

6 8

5

E 10th St E 7th St

TARGET NEIGHBORHOOD BOUNDARY

Prepared by Emerging Markets, Inc (2010)

In Central Long Beach, the recommended bank partnerships are intended to increase economic opportunities, especially through sector-based workforce development for young adults (Target Change #8 in the Plan).

They are also designed to promote healthy land uses (Target Change #4), which range from recreational green space to positive commercial development and mixed-income housing. Although there are a number of bank branches in the area (see map), no financial institution has established itself as a major force for revitalization in the area. TCE may need to play a role in convening these leaders and helping to cultivate as civic leaders.

The specific strategies proposed are listed below: • Create a hiring pipeline for jobs in banking. As part of the larger strategy to create sector-based

workforce development strategies for Central Long Beach residents, TCE can help to launch a hiring pipeline for jobs in banking. In Los Angeles, former Wells Fargo COO Les Biller organized a consortium of banks in 2006 to co-invest in a training program for bank tellers. The program sourced individuals from lowincome neighborhoods of Los Angeles through community-based organizations, and trained them for the nearly 2,000 bank teller positions that are open in Los Angeles every year. Wells Fargo has a workforce of 452 employees working in its Long Beach offices alone.

Although there is not a parallel structure in Long Beach, Mr. Biller has publicly expressed interest in replicating the model. If prompted by TCE, banking executives may be able to leverage the participation of other industries as well.

• Finance commercial development in the Redevelopment Zone. After the 1992 civil unrest, the Long

Beach Redevelopment Authority (LBRDA) designated a “Central Long Beach Redevelopment Zone” that roughly approximates the target area identified by The California Endowment. LBRDA’s plans are designed to promote retail development on select commercial corridors, such as Pacific Coast Highway and Magnolia Avenue. The plan also identifies a scattering of specific buildings and land parcels for mixed-income housing and green spaces. TCE could convene a collaborative of community development lenders from across the banks, asking them to consider allocating a portion of their investment dollars to the Redevelopment Zone. Union Bank, which led a similar multi-bank investment strategy elsewhere, might wish to take the lead. Bank of America is currently investing in several mixed use concepts in central Long Beach, including affordable housing components, which require partners for additional social services.

When interviewed, bank leaders indicated a paucity of strong community development corporations (with the exception of LINC) and an interest in strengthening CDC’s or attracting new ones to the neighborhood.

• Create a micro-loan fund for truck drivers at the Port of Long Beach. The Plan specifically calls for a

joint emissions inventory of the carbon emissions from the Ports of Long Beach and Los Angeles. It also calls for a strategy to reduce these emissions while accounting for the economic impact of the workers. The City and Port of Los Angeles, with the support of the Coalition for Clean and Safe Ports, instituted the “Clean Truck Program.” This program requires the trucking industry to buy and maintain trucks with minimal toxic exhaust. With leadership from TCE, one or more banks could consider co-investing in a micro-loan fund for individual truck drivers who own their vehicles, but cannot afford to upgrade to a more fuel efficient model.

• Explore the possibility of a new bank branch. Although it has 13 branches in the City of Long Beach,

Wells Fargo has no branches in Central Long Beach. Opening a new retail location in the area would be a stretch goal, but not impossible. Wells Fargo has a close relationship with Councilman James Johnson in District 7, which overlaps the target area, and recently won the banking relationship with the City of Long Beach through a competitive bidding process. Moreover, local leadership in the market has experience with place-based work. In 2005, Wells Fargo launched its second place-based initiative in the Compton/Long Beach markets with the opening of the Compton Gateway Plaza store. This was followed by the opening of

the Compton Towne Center in December 2007. Both stores are deemed financial successes. In the process, local market leadership developed relationships with Long Beach Community College and Long Beach Unified School District. • Develop Health Savings Accounts. The Plan specifically cites the high cost of healthcare as a reason to

address economic issues in Central Long Beach. Health savings accounts (HSA’s) exist to help lessen the burden of high deductible insurance policies by providing a way for individuals to save for future health care expenses, and receive care when needed. They also encourage responsibility over health care choices.

Farmers & Merchants Bank, a prominent bank serving the Long Beach, South Bay, and Orange County communities might be asked to consider providing incentivized health savings accounts for the lower-income communities of Central Long Beach.

To begin exploring these strategies, Emerging Markets, Inc. can reach out to bank leaders to see if they would be willing to have TCE convene them for joint community development investments or workforce development strategies. We can also float the idea of a new bank branch, a micro-loan fund for truck drivers, or the creation of incentivized health savings accounts among the appropriate banks.

SW Merced/East Merced TOTAL COMMUNITY DEPOSITS: $938,138,000 WESTAMERICA BANK 1 550 W Main St 2 490 W Olive Ave

3 4

MARKET SHARE BY DEPOSITS

DEPOSITS

MARKET SHARE

$265,716,000

32.2%

735 Bellevue Rd 640 Main St

8%

BANK OF AMERICA 5 170 E Bellevue Rd 6 710 W Main St

$240,660,000

21.2%

WELLS FARGO 7 3538 G St 8 555 W 18th St

$231,361,000

13.4%

9

243 Bellevue Rd

$223,574,000

12.6%

CITIBANK 12 700 Bellevue Rd 13 1840 M St

$125,307,000

9%

CHASE 14 800 W Olive Ave

$47,465,000

8.4%

PREMIER VALLEY BANK 15 3337 G St

$13,735,000

1.2%

FARMERS & MERCHANTS 16 2936 G St

$11,714,000

1%

RABOBANK 17 2000 M St 18 731 E Yosemite Ave

$11,714,000

0.5%

$11,714,000

0.3%

7

Fe A

21%

18

15 ve W Olive Ave

11

2 14

E Olive Ave

16 t

0th

RS

½ MILE BUFFER AROUND BANK

M

W2

t

6th S

VS

W1

t

St

99

20

17 6 1 13 8

St

t

ta

13%

GS

Sa n

32%

1861 Bellevue Rd

FINANCE & THRIFT 20 850 W Main St

3 5 9 10 12 19 ATWATER

9%

13%

GUARANTY BANK 10 1329 Broadway Ave 11 3065 G St

19

1% 1% 1% 0.3%

TARGET NEIGHBORHOOD BOUNDARY

Prepared by Emerging Markets, Inc (2010)

In Merced, we have experienced limited interest in local community investment. The market share leader is a regional bank, West America Bank, which has limited corporate resources. Therefore, our recommended bank partnerships are relatively modest in nature. Specifically: • Community connections to UC Merced. In early conversations between Elaine Peacock and Wells Fargo

Foundation officer Brenda Gonzalez, an interest was expressed in exploring a bank partnership in Merced.

Wells Fargo recently made a $250,000 grant to UC Merced as part of a series of charitable contributions to the campus. Through Wells Fargo, community benefits generated at an anchor institution like the campus can be focused into the target community.

• Joint grantmaking for educational programs. West America Bank contributes a portion of earned

income back to local nonprofit organizations in the areas of health and human services and education. While grant amounts are modest, they are highly localized. Given the Plan’s emphasis on connecting with at-risk youth, an educational partnership with West America could be explored.

• Community development lending to housing, schools. As part of its standard community investment

portfolio, West America Bank has helped finance new school construction and affordable housing development. The bank has expressed an interest in special community development projects that could leverage TCE investments.

• Basic financial education delivery. As part of community activities, West America Bank conducts basic

budgeting seminars and senior financial abuse seminars in the Merced Community. Wells Fargo also markets a web-based financial tool called Hands on Banking that works very well with younger populations.

This is a starting point toward partnership strategies. As a next step, Emerging Markets can either assist or recommend next steps aimed at jumpstarting the working relationships. These next steps would likely include: setting up a conversation between TCE and Wells Fargo Foundation regarding the UC Merced relationship, and testing interest at West America Bank regarding a local banking partnership.

Richmond TOTAL COMMUNITY DEPOSITS: $423,364,000 ADDRESS

MARKET SHARE BY DEPOSITS

DEPOSITS

MARKET SHARE

MECHANICS BANK 1 4 W Richmond Ave 2 4100 MacDonald Ave

$134,499,000

31.8%

CHASE 3 12121 San Pablo Ave

$86,312,000

20.4%

9%

BANK OF AMERICA 4 4800 MacDonald Ave 5 1250 MacDonald Ave

$64,319,000

15.2%

12%

CATHAY BANK 6 3288 Pierce St

$49,889,000

11.8%

FIRST BANK 7 13830 San Pablo Ave

$36,907,000

8.7%

WELLS FARGO 8 4300 MacDonald Ave

$28,058,000

6.6%

CITIBANK 9 3635 MacDonald Ave

$22,638,000

5.3%

US BANK 10 4925 MacDonald Ave

$742,000

0.2%

5% 0.2% 7% 32%

15%

Market Ave

ond

23rd St

13th St

Ca str

m

ve

y Barrett A

ve

5 Ca

1

McBryde Ave

lo A

ch Ri

w

80

Pab

Pk

7

San

St

o

7t h

St

Cutting Blvd

9 rls

on

3 4 10

2 8

Bl vd

580

Potrero Ave

6 ½ MILE BUFFER AROUND BANK

20%

TARGET NEIGHBORHOOD BOUNDARY

m Fair

oun

t Ave

Prepared by Emerging Markets, Inc (2010)

TCE’s partnership with banks can focus most fruitfully on Outcome 8: Community Health Improvements Linked to Economic Development. As explicitly as any of the sites, Richmond has articulated the need for the integrated delivery of support services that build financial stability: workforce development, entrepreneurial training, financial education, asset-building programs, as well as larger-scale efforts to build up Richmond as a center of economic growth. Specifically, TCE can: • Attract banks to support the West County Sparkpoint Center. SparkPoint Centers help families create

step-by-step plans to tackle their unique financial needs, and connect them to services to address each one. Based on the Annie E. Casey Foundation Prosperity Hub model with an emphasis on the bundling of services, West County SparkPoint Center works with each family for up to three years to achieve their goals. The center is a one-stop location for a full-range of services including personalized financial coaching, employment services, asset building, and credit counseling. Services are provided by local nonprofit and government partners. The Center has specific strategies to reach these goals: improving credit scores by designing a budget and reducing debt; increasing incomes by enrolling in career training and connecting with money-saving programs such as free tax preparation and utility discounts; and boosting assets through matched savings programs, buying homes and funding a retirement plan. Counselors ask clients for a two- or three-year commitment. The West County Sparkpoint Center will open in 2011.

• Establish the Healthy Richmond Economic Development and Education Council to ensure long-term

partnerships between the corporate and education sectors that effectively prepare young adults for careers and employment. The vision for this council, laid out in the BHC community plan, is that it will “serve as a vehicle for public schools and community colleges to partner with government and the business community to create a long-range strategy to increase job readiness and employment for Richmond's youth and young adults.” Collaboration between schools, the business community, and residents is critical to having a prepared, career and job-ready workforce graduating from Richmond’s schools. There also is a need to support current job readiness programs, and initiate new, innovative training and professional development strategies in schools.

Financial institutions have a track record with such ventures and can provide philanthropic funding for the council operations, anchor institution grants for educational institutions, branded sponsorships for convenings, corporate leadership, school-based voluntary activity for their employees, and workforce opportunities.

• Advocate for growth-friendly policies. According to the Richmond Logic Model, improving Richmond’s

economic vitality will require policy and systems initiatives at the city, county and regional levels. The longterm goal of these initiatives is to develop policy initiatives that build Richmond's future as a regional center for sustainable employment, responsible economic development and growth, and economic opportunity for local residents. This strategy will help promote socially responsible economic development practices, including sustainable jobs creation and green jobs, economic development zones, tax incentive programs, community benefit agreements, first-hire agreements, and other community development strategies to create employment opportunities for residents. And finally, the initiatives will provide a continuing effort to invest in the promotion and improvement of the public image of Richmond through public awareness campaigns and marketing. All of these require the presence of financial institutions in order to be successful. Through structured dialogs between the government relations departments at major banks and TCE’s public policy team, points of advocacy collaboration can be identified. A partner bank can also work with the City’s Economic Development Department to attract a “green” or health-related industry.

• Invest in small businesses. Increased support for small businesses and other residential entrepreneurial

efforts within Richmond, including technical support and economic assistance programs, will build an active sector of small businesses and resident-initiated micro-enterprises. The City of Richmond currently operates a small business assistance program, but its clients often struggle with lack of access to credit, especially in the tight credit environment. One or more partner financial institutions could offer a structure micro-loan program (as a complement to the city’s existing microloan program) through which access to credit would increase as clients completed training modules. Such a program could have particular impact for the informal sector businesses in Richmond. In collaboration with Contra Costa Health Services, the City of Richmond is revising its current Outdoor Vendor and Peddlers Ordinances to promote healthy food vendors and address public health and safety concerns. Credit and assistance for these small businesses could go a long way toward achieving both health and economic results.

Emerging Markets, Inc. can facilitate conversations for TCE around any of these options with one or more financial institutions located in or near the target area, such as Bank of America, Cathay Bank, or Mechanics Bank. Alternatively, given the limited presence of banks, we could seek a new bank branch for the community.

East Salinas (Alisal) TOTAL COMMUNITY DEPOSITS: $19,387,000 ADDRESS

MARKET SHARE BY DEPOSITS

DEPOSITS

MARKET SHARE

$15,830,000

81.7%

$3,557,000

18.3%

BANK OF AMERICA 3 1010 E Alisal St

N/D

N/D

CHASE 4 1516 Constitution Blvd

N/D

N/D

CHASE 1 800 E Alisal Blvd US BANK 2 1516 Constitution Blvd

18%

82%

E

Pk

wy

rel Dr

m

Rd

E Lau

da

Fr ee do

n ro

Bo

4 2

lM

De

d

e e Av

S

R rn

t on

N

bo an

E Market St E Alisal St

W

1

3 y Sk wa yB lvd

½ MILE BUFFER AROUND BANK

d

sR

am illi

S Sanborn Rd

N Madeir

a Ave

101

TARGET NEIGHBORHOOD BOUNDARY

Prepared by Emerging Markets, Inc (2010)

East Salinas/Alisal is a low-income neighborhood comprised largely of migrant farmworkers living in overcrowded conditions, in a region where the patterns of development are rapidly changing. Financial institutions can play an important role in helping the residents of East Salinas/Alisal to navigate these changes. Banks can help local families to start their own businesses, developing an ownership stake in the local agricultural or hospitality industries. They can help local leaders influence local land use policy to provide more high-density affordable worker housing, and they can help to attract new industries to the area.

Specifically, banks can: • Grow a green vehicle industry in East Salinas. The Salinas Valley Enterprise Zone, which formed in

March 2009, includes the cities in the Salinas Valley (Salinas, Gonzales, Soledad, Greenfield, and King City) and the County of Monterey. It is responsible for creating 391 jobs and retaining 1,386 jobs. There are 231 businesses that are currently benefiting from Salinas Valley Enterprise Zone program.” Salinas Mayor Dennis Donohue and the President of Green Vehicles Inc., Mike Ryan, have worked together to locate a Green Vehicles factory in Salinas. The California Enterprise Zone program, which provides tax credits and other incentives to businesses that operate in economically depressed areas, was a major factor in the decision to locate the business there. TCE can play several partnership roles in helping this business to survive and thrive. These roles may include advocating to Governor Jerry Brown, who had expressed his intent to discontinue the Enterprise Zone Program, or forming a consortium of financial institutions to coinvest with TCE in the company’s expansion.

• Form a consortium of banks in support of Lideres Communitarios de Salinas. In 2001, LandWatch

in Monterrey County helped from Lideres Communitarios de Salinas (Community Leaders of Salinas), a group of farm workers from East Salinas, to increase resident participation in land use and affordable housing policy decisions in Monterey County. The General Plan Update adopted by the Salinas City Council in 2002 proposes the conversion of over 3,000 acres of prime farmland to accommodate new developments. Lideres Communitarios de Salinas is urging that future growth decisions provide significant affordable housing for local workers and residents, and that Salinas do everything possible to minimize the conversion of agricultural land. If a consortium of bank community development departments committed to back the plans of this group, it could give it greater viability and political weight.

• Build the “Alisal Marketplace.” Alisal Marketplace is a planned major redevelopment project located

in the eastern portion of the central city area is anticipated to include more than 50 acres of currently developed properties. This project, as proposed, will offer mixed-use environment for residential, retail, services, commercial, office space and municipal uses. An exclusive negotiating agreement has been entered into between the City of Salinas and the Bristol Group/Cooley Development Partners to initiate a preliminary development plan. Santa Cruz County Bank, Santa Cruz Community Credit Union, and other local banks could be mobilized to help finance the development if TCE were to take the first step.

• Engage Banks in the Salinas and Pájaro Valley Small Business Initiative. The Salinas and Pájaro

Valley Business Initiative was founded by the Agriculture and Land Based Training Association (ALBA) with the goal of providing business education, business incubation and assistance, and policy education and advocacy to a larger audience in the Santa Cruz and Monterey Counties. Because of the primarily agricultural-based economy, seasonal work leaves many people looking for other forms of income throughout the year. This Initiative recognizes this need and seeks to find ways to reach the community to ensure economic sustainability throughout the year. Specifically, the initiative provides: technical support to small business farmers, assistance to under-served groups seeking to start a business, networking opportunities between farmers and business owners. If the technical assistance provided by Alba could be paired with a portfolio of micro-loan and other financial products from a group of banks, the initiative could multiply its outcomes.

Since all of these strategies would most likely involve a consortium of banks, Emerging Markets, Inc. can work with TCE to reach out to banks that are located in Monterey County to see if they would be willing to collaborate around one or more of these efforts.

Central Santa Ana TOTAL COMMUNITY DEPOSITS: $1,399,339,000 ADDRESS

MARKET SHARE BY DEPOSITS

DEPOSITS

BANK OF AMERICA 1 102 W 4th St 2 801 N Main St

3 4

2015 W 1st St 2001 S Main St

CHASE 6 1300 N Main St 7 2781 W MacArthur Blvd

8 9

2407 S Bristol St 3600 S Bristol St

WELLS FARGO 10 101 W 4th St 11 3717 S Bristol St

12 13

2% 1% 2% 2% 0.3% 3%

MARKET SHARE

$501,511,000 5 3730 S Bristol St

35.8%

$404,714,000

28.9%

36% 24%

3650 S Bristol St 2741 W MacArthur Blvd

$339,610,000 14 2301 S Main St 15 3764 W McFadden Ave

24.3%

29%

CALIFORNIA NATIONAL BANK 16 130 S Main St

$45,974,000

3.3%

CITIBANK 17 518 N Broadway

$33,394,000

2.4%

BANK OF THE WEST 18 3931 S Bristol St

$28,452,000

2%

CASS COMMERCIAL BANK 19 3000 W MacArthur Blvd

$23,858,000

1.7%

SANTA ANA BUSINESS BANK 20 1666 N Main St

$17,292,000

1.2%

$4,534,000

0.3%

BBVA BANCOMER 21 117 W 4th St 22 100 N Harbor Blvd Hazard Ave

W 5th St W 1st St

3

405

S Bristol St

20 5

W McFadden Ave

McFadden Ave

S Flower St

t

S Fairview S

8

4 15

E Warner Ave

7 13 Sunflo wer Ave

½ MILE BUFFER AROUND BANK

12 9 11 5 16

S Main St

55 W Segerstrom Ave

Talbert Ave

E 4th St

W Edinger Ave

or Blvd H ar b

Newhope St

Euclid St

14

1 18 10 21 17

S Grand Ave

22

TARGET NEIGHBORHOOD BOUNDARY

E Dyer Rd

Prepared by Emerging Markets, Inc (2010)

In the Santa Ana Plan, the recommended bank partnerships are explicitly identified. Unlike almost any other Place, Santa Ana’s hub received active participation from local bankers and specifically identified community interests as they relate to financial institutions. Our recommendations mirror those change strategies that includes greater affordable housing stock (Outcome #4), broadening access to financial services to all residents regardless of immigration status, expanding financial literacy, and building the capacity of a community development corporation that can address financial issues (Outcome #8). We believe that the primary partners for this work will be Wells Fargo, Chase, and Bank of America. Specifically: • Incentivize Wells Fargo to expand their presence in Central Santa Ana. Although retail coverage is

adequate, Wells Fargo has considered the opening of a new bank branch in Central Santa Ana. An MRI deposit might be helpful in a decision-making process around potential profitability. If a bank de novo is not feasible, Wells Fargo may be willing to commit to a place-based community development strategy centered around its 4th and Main location on the BHC neighborhood border. Substantial outreach to youth and immigrant segments, identified in the BHC Plan and part of a banking initiative, would serve as an economic development compliment to place-based TCE grantmaking.

• Co-invest in pending affordable housing developments with Bank of America. There are currently

multiple affordable housing developments in play, all potentially financed by Bank of America, that could represent 100-150 units of new affordable housing in or near the BHC neighborhood. TCE could compliment core financing with enriched services and co-brand the developments as healthy housing.

• Wells Fargo or Bank of America could deliver financial education throughout Central Santa Ana. The Plan calls to increase the number of residents with active bank accounts through outreach and

education, specifically adopting a promotora model that has proven highly effective in delivering health education to immigrant communities. Existing promotora networks can be cross-trained with banking curriculum to rapidly spread financial information to the large unbanked population. Both Wells Fargo and Bank of America have shown some interest in this grass-roots model in immigrant markets.

• All major banks could build capacity in an economically-oriented Community Development Corporation for Central Santa Ana. Currently, Central Santa Ana does not have a CDC that can deliver

asset-building programs or credit to local residents or businesses, something that can stimulate broad-based economic development in the neighborhood. Led by TCE, the three major banks can be influenced to build capacity in a new organization to provide those core services.

This is a starting point toward partnership strategies. As a next step, Emerging Markets can either assist or recommend actions aimed at jumpstarting the working relationships. These next steps would likely include: setting up a conversation between TCE and Wells Fargo around a potential de novo or place-based banking initiative; reviewing affordable housing partnership opportunities with Bank of America, and interviewing existing promotora networks for interest in cross-training into financial curricula.

South L.A. TOTAL COMMUNITY DEPOSITS: $780,862,000 ADDRESS

MARKET SHARE BY DEPOSITS

DEPOSITS

BANK OF AMERICA 1 2703 S Figueroa St 2 985 W Jefferson Blvd

3 4

8564 S Broadway 6400 S Avalon Blvd

CHASE 6 1027 W Manchester Ave 7 5717 S Vermont Ave

3% 2% 0.2%

MARKET SHARE

$535,517,000 5 5700 S Vermont Ave

68.6%

$107,704,000

13.8%

6% 7% 14%

BROADWAY FEDERAL BANK 8 4001 S Figueroa St

$56,536,000

7.2%

WELLS FARGO 9 141 W Adams Blvd

$44,542,000

5.7%

CITIBANK 10 3615 S Vermont Ave

$20,882,000

2.7%

US BANK 11 2600 S Vermont Ave

$14,428,000

1.8%

UNION BANK 12 1100 W Slauson Ave

$1,253,000

0.2%

W Adams Blvd

69%

Exposition Blvd

dA SG

2

ra n

1

W 30th St

W Jefferson Blvd

ve

11

10

10

9 EA EJ

effe

rso

S Vermont Ave

W Vernon Ave

E Was

sB lvd

h ington Blv

d

nB

lvd

Avalon Blvd

8

W Martin Luther King Jr Blvd

d am

110

E Florence Ave

E 79th St

6 ½ MILE BUFFER AROUND BANK

4 S Broadway

W Florence Ave

S Hoover St

W Gage Ave

7 5 S Figueroa St

12

W Slauson Ave

S Normandie Ave

Crenshaw Blvd

E 51st St

3

TARGET NEIGHBORHOOD BOUNDARY

Prepared by Emerging Markets, Inc (2010)

In South Los Angeles, the recommended bank partnerships are, first and foremost, intended to increase access to jobs and entrepreneurial opportunities via economic development (Outcome #4 Target Change #1, and Outcome #8 Target Changes #1 & #2 in the Plan). They are also designed to expand access to healthy foods (Outcome #4 Target Change #2), and the availability of affordable housing (Outcome #4Target Change #3). The principal partners for this work would be Bank of America, JP Morgan Chase, and Wells Fargo.

Specifically: • Bank of America could invest in “green” job career ladders. In 2008, Bank of America awarded $1

million to Los Angeles Trade Technical community college to increase sector-based opportunities within the REDI program. Given its influence, the Bank might consider another grant to Trade Tech that would help to connect the college’s programs with South Los Angeles nonprofits. Through structured referral arrangements, nonprofits could channel clients into workforce pipelines. Many nonprofits that participated in the Plan could play this role. Further, some Trade Tech programs train students for living wage “green” construction jobs, an expressed priority in the Plan.

• Wells Fargo or US Bank could spur redevelopment at key intersections. Redevelopment of key

commercial intersections like Vermont/Manchester and Broadway/Manchester provide the opportunity for local hiring and a platform for adjacent entrepreneurial growth. A bank can not only provide real estate financing for such a project, but potentially locate a retail bank branch on site to further create jobs and contract with local vendors. Both of these intersections are located in a gap in coverage for Wells Fargo and US Bank (as well as some other large financial institutions). TCE can consider potential grants or investments to leverage bank dollars in pivotal transactions, or make available Social Compact data to make the case for new branches.

• Major commercial banks could co-invest in healthy food infrastructure. The expansion of

independent supermarket operators, who often lack the capital to finance their expansion plans, will contribute to the fresh food supply in South LA. Banks can help finance these commercial real estate developments either directly, or through indirect investments like the California Healthy Foods Financing Initiative (CHFFI) fund, which will have an initial focus on South Los Angeles before scaling statewide.

Ideally 3-4 new supermarkets that sell healthy food can be opened with bank support. Additionally, the city has announced a program with two nonprofits partners (HEAC and LANI), to makeover four existing South LA school-adjacent stores to community markets that offer less junk food, and larger selections of healthy snacks. The selection of those four community markets has not taken place yet. To steer resources to the BHC target area, TCE can offer augmenting grants to the community markets through the CRA’s nonprofit partners. Banks can offer further grants, marketing technical assistance, as well as SBA loans to enhance the impact of each market renovation.

• Major commercial banks could jointly invest in affordable housing. Every major financial institution

has a community development department and community lending division that invests in affordable housing. And despite some political resistance in South Los Angeles, several affordable housing producers are actively pursuing the construction of affordable housing. Among those that are familiar to major banks are Beyond Shelter, Abode, Meta Housing, and Amcal. In each case, TCE may wish to sit down with community development leadership from the major banks (Bank of America, Chase, Wells Fargo, Citi, Union) to collectively pursue deals that seem to be stuck. Ideally a portfolio of 2-4 projects totaling 200300 housing units could be undertaken. At a more local level, Broadway Federal Bank is an active lender to individual owners of small (1-4 unit) apartment buildings in South Los Angeles. TCE can look to support the bank’s approach to working with local property owners – including the possibility of loan modification – to minimize the risk of speculative, absentee developers buying foreclosures in the area.

• Banks could target outreach to homeowners at risk of foreclosure. Major banks are employing a

range of strategies to minimize the number of home foreclosures. These range from renegotiated “workouts” to principal reduction. In some cases, where short sales are required, efforts are made to resell the homes to residents of the same community. Although these efforts are typically undertaken as bank-wide policy, TCE may persuade one or more banks to undertake targeted outreach within South Los Angeles. Candidate banks would be those with large portfolios of mortgages nearing foreclosure. By co-sponsoring corresponding community events or educational efforts, TCE could be a decisive in holding the banks’ attention on South Los Angeles.

This is a starting point toward partnership strategies. As a next step, Emerging Markets can either assist or recommend next steps aimed at jumpstarting the working relationships. These next steps would likely include: setting up a conversation between TCE and Bank of America and Trade Tech, testing interest in a new branch locations at Wells Fargo and US Bank, conducting initial interviews with all the major banks regarding their interest in investing in supermarkets or affordable housing, and proposing concentrated outreach to families at risk of foreclosure at the institutions with the largest mortgage portfolios.

South Sacramento TOTAL COMMUNITY DEPOSITS: $155,388,000 ADDRESS

MARKET SHARE BY DEPOSITS

DEPOSITS

MARKET SHARE

BANK OF AMERICA 1 3810 Broadway 2 5744 Stockton Blvd

$84,467,000

54.4%

WELLS FARGO 3 5695 Stockton Blvd

$55,519,000

35.7%

CHASE 4 5322 Stockton Blvd

$9,302,000

6%

US BANK 5 3418 Broadway

$6,100,000

3.9%

6%

4%

36%

54%

34t

kt Fols o

37t

lvd

hS

t

B on

5

50

oc

2 n d Ave

St

hS

t

80

5th Ave

1

le Rd

Power Inn Rd

Broadway

Perry Ave

65th St E xpy

58th St 23rd Ave

21st Ave

4 Fruitridge Rd

44th St

38th Ave 41st Ave

2

Sampson Blvd

3

99

24th St

62nd St

14th Ave

Martin Luther King Jr Blvd

il Sutterv

m Blv d

Lemon Hill Ave

Elder Creek Rd

47th Ave

d

Blv

lvd

on

nB

ckt

kli

Sto

n Fra

53rd Ave

65th St

½ MILE BUFFER AROUND BANK

TARGET NEIGHBORHOOD BOUNDARY

Prepared by Emerging Markets, Inc (2010)

In South Sacramento, the recommended bank partnerships are primarily designed to support a healthy built environment, jobs and entrepreneurial opportunities via economic development, and expanded financial literacy. Complimentary bank investments could support neighborhood-based outreach and education (Outcome #2), mixed income housing supporting jobs-producing business corridors (Outcome #4), as well as larger commercial development concepts on underutilized land parcels (Outcome #8). The principal partners for this work would likely be Wells Fargo, Bank of America, and Citibank. Specifically: • Bank of America could invest in nontraditional community promoters. The Plan emphasizes

engagement of the local population to educate and promote health care and healthy behaviors. This type of grass-roots outreach, delivered through nontraditional settings such as schools, churches, and family resource centers, can be expanded in content to include topics outside of health, such as financial health.

Through the same community outreach infrastructure, basic financial literacy, credit repair, and assetbuilding education can be delivered. Bank of America has supported integration of financial education into community resource infrastructure in other markets, and might be willing to underwrite a similar model in South Sacramento.

• Wells Fargo or Citibank further capitalize micro-loan funds for local businesses. The South

Sacramento target area is a patchwork of residential neighborhoods with commercial activity concentrated on a limited number of corridors, including Stockton Boulevard where three banks are located. Stockton, as well as Franklin Boulevard on the west side of Hwy 99, house a large number of small and medium-sized businesses that tend to be family-owned and operated. Working through their Community Investment units, large banks like Wells Fargo and Citibank (who is not located in the target area, but is active within it) are capable of capitalizing microloan funds or funding technical assistance for loan applicants. TCE could help initiate this conversation. Nonprofit California Capital FDC would be a potential vehicle for such investments.

• Major commercial banks could co-invest in healthy food infrastructure. The expansion of

independent supermarket operators, who often lack the capital to finance their expansion plans, will contribute to the fresh food supply in South Sacramento. Banks can help finance these commercial real estate developments either directly, or through indirect investments like the California Healthy Foods Financing Initiative (CHFFI) fund. As a business plan and financial modeling develops for a food distribution hub, one of the Plan’s priorities, bank expertise can be helpful in evaluating potential layers of financing that would be required.

• Banks could target investment along Stockton Boulevard. As redevelopment plans come together for

Stockton Boulevard, large banks can be approached to consider financial investment in a targeted fashion.

Bank of America, Chase, and Wells Fargo all have branches in the commercial corridor, and each has a large and diverse toolbox of community investment tools for financing commercial development and affordable housing. Early engagement with the appropriate lenders can improve the chance for project financing.

• Wells Fargo or Citibank could pilot multi-lingual financial education. South Sacramento, with no

majority ethnicity, offers a unique opportunity for banks to pilot multicultural programs. Of all 14 places, this community may be best-suited to help financial institutions develop and field-test culturally-appropriate financial education curricula in a variety of languages other than English and Spanish. TCE could potentially assist in a pilot roll-out in South Sacramento, with an eye towards affecting statewide change within the industry. Wells Fargo already has some strong in-language marketing capacity in Southeast Asian languages. Citibank also has capacity, given its robust international footprint. Asian Resources, Inc. might be a potential leader in this collaborative effort.

• Banks could target outreach to homeowners at risk of foreclosure. Major banks are employing a

range of strategies to minimize the number of home foreclosures. These range from renegotiated “workouts” to principal reduction. In some cases, where short sales are required, efforts are made to resell the homes to residents of the same community. Although these efforts are typically undertaken as bank-wide policy, TCE may persuade one or more banks to undertake targeted outreach within South Sacramento. Candidate banks would be those with large portfolios of mortgages nearing foreclosure. By co-sponsoring corresponding community events or educational efforts, TCE could be a decisive in holding the banks’ attention on South Sacramento, where there are over 2,200 foreclosures already documented.

This memo is a starting point toward partnership strategies. As a next step, Emerging Markets, Inc. can either assist or recommend next steps aimed at jumpstarting working relationships. These next steps could include: conducting initial interviews with Wells Fargo and Bank of America about grass roots financial education via a promotora model; exploring the notion of multi-lingual financial education curriculum with marketing executives at Wells Fargo and Citibank; conducting initial interviews with all major banks regarding their interest in investing in a supermarket fund or commercial development along Stockton Boulevard; and proposing concentrated outreach to families at risk of foreclosure at the institutions with the largest mortgage portfolios.