Building Local Power

Building Local Power

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Building Local Power episodes

  • Why Garbage Incinerators Are A Bad Deal For Communities

    Host John Farrell speaks with Marie Donahue, ILSR researcher, and Neil Seldman, Director of ILSR’s Waste to Wealth Initiative, about the harmful impacts of burning trash to generate electricity. The trio dive into ILSR’s recent report Waste Incineration: A Dirty Secret in How States Define Renewable Energy. They also discuss:

    • Baltimore’s recent passage of the Clean Air Act, a bill that will effectively shut down the Wheelabrator incinerator.
    • Three key reasons why incinerators are a bad deal for communities including: financial risk, environmental injustice, and public health concerns.
    • The story behind the successful efforts to shutdown two incinerators in Baltimore. Neil details how residents of the marginalized Curtis Bay neighborhood organized at the grassroots level to advocate for their community.
    • How 23 states are providing subsidies to incinerators by allowing them to benefit from renewable energy tax credits.
    • What communities and cities can do instead of hosting incinerators to manage their waste, foster a healthier environment, and create jobs.
    • The economics of incinerators don’t add up. Incinerators are risky investments for the local governments and utilities that support and subsidize them, particularly as energy prices decline [thanks to renewable alternatives.]

      Related Resources

      1. Report: Waste Incineration: A Dirty Secret in How States Define Renewable Energy
      2. Webinar: Waste Incineration: A Dirty Secret in How States Define Renewable Energy
      3. Baltimore’s Historic Clean Air Act Could End Stagnation in Recycling
      4. Report on the Proposed Baltimore Clean Air Act
      5. Report: Why Should Baltimore Recycle More?
      6. 2019 Community Power Scorecard
      7. The Zero Waste Solution by Paul Connett
      8. Plastic Ocean by Capt. Charles Moore
      9. Emergent Strategy: Shaping Change, Changing Worlds by Adrienne Maree Brown
      10. Reduce, Reuse, Reimagine by Beth Porter
      11. Transcript

        John Farrell:
        Welcome to another edition of Building Local Power. I’m John Farrell, co-director of the Institute for Local Self-Reliance. With me this week are Marie Donahue, ILSR researcher and author of Waste Incineration: A Dirty Secret in How States Define Renewable Energy. Welcome Marie.
        Marie Donahue:
        Thanks for having me John.
        John Farrell:
        Also with me is Neil Seldman ILSR co-founder, director of our waste to wealth initiative, and the death knell to dozens of garbage incinerators across the country. Welcome Neil.
        Neil Seldman:
        Pleasure to be here with both you and Marie.
        John Farrell:
        Today I’m excited to talk to the two of you about how communities can save money, have healthier kids, and create more jobs by shutting down garbage incinerators.

        And I’d like to start with something very recent. Neil I was hoping you could explain how a recent city council decision in Baltimore will impact the Wheelabrator Incinerator that’s responsible for so much of the city’s industrial pollution.

        Neil Seldman
        About two weeks ago the city council voted unanimously, 14 to zero with one absent person, one city council member absent, who would have voted for the act as well. But the Baltimore Clean Air Act sets new standards for both burning garbage, and burning hospital and hazardous waste in the city of Baltimore. It requires that both incinerators meet the state of the art best practices in pollution control equipment, it requires constant monitoring coming out of the incinerator, which is technologically possible, and it also requires that the information on the constant monitoring be made public on a webpage as is being done in Montgomery County Maryland just to the south of Baltimore, Maryland.

        The situation in Baltimore is slightly different from Montgomery County, which we can get into. But in Baltimore the Wheelabrator company owns a facility called Bresco. B-R-E-S-C-O. And that facility is about 35 to 40 years old. The city sends its non recycled waste to that incinerator in downtown Baltimore. Most of the materials generated in Baltimore go there, because the city has a very low recycling rate estimated between 14 and 19 percent. By comparison the national average is 34, and, of course, some cities are at 50, 60, and 70 percent.

        So, if the city stopped sending its garbage there, in theory, because it’s a privately owned facility that facility can import garbage from anywhere they want to, Baltimore County, New York City, to fill in for the garbage that is not delivered by the city.

        However, with the passage of this law … It is not signed yet. Mayor Pugh has said she was going to sign it, it has not happened yet. It will become law if she doesn’t sign it. In about five or six days it will become law. The importance of the law it will require any facility, private or public, to meet these new standards, and it will therefor prevent the incinerator from continuing to operate with private sector trash or public trash if it does not make the adjustments to pollution control that will allow it to meet best available control technology.

        Vice President of the Wheelabrator corporation already mentioned that if this law came to pass they will probably … Actually he said certainly have to shut the incinerator, because the cost of putting on new pollution control equipment is about 70 million dollars, and that pollution control equipment will require about 11 million dollars a year of operating expenses. These expenses for the corporation are just too much for it to continue operating this plant. In theory, it could knock down the plant, and build a more modern plant, but that is highly unlikely.

        The legislation can be used in at least 11 other states according to Mike Ewall, who wrote the bill. He works for the Energy Justice Network, and there are about 11 other states where this strategy can be used, and that would include at least eight other existing old incinerators. Detroit, Annapolis among those eight other cities that have existing plants.

        John Farrell:
        Great. Well, let’s plan to come back to that too ’cause I want to talk about at the end sort of a big wrap up with some of the findings in Marie’s report as well as this, Neil. What is that cities can do?

        I want to talk a little bit about why Baltimore took this direction in terms of the incinerator, and was hoping Marie that you could give us some of like big picture here. In your report about incineration and renewable energy you talk about three reasons that incinerators, in general, are a bad deal for communities. And I was hoping that you could just kind of walk us through those reasons, so we can understand why it is that a community like Baltimore is having such an issue with this particular facility.

        Marie Donahue:
        In this report we released in December late last year we over viewed these three reasons that we found in the literature and in our reporting about why municipal solid waste incinerators are such a bad deal.

        The first being that the economics of these facilities really don’t add up. That incinerators are risky investments for the local governments and utilities that are helping support and subsidize them, particularly as energy prices decline, and that there are these more price competitive alternatives, which we’ll get into a little bit more as well. A growing number of these plants are unable to cover their operating costs, or the substantial investments needed to really maintain, or, as Neil was talking about, implement new pollution controls. And so, they’re costly to operate and maintain to remain competitive.

        And so, we’ve seen recent examples in California and in Minnesota where existing facilities are not able to offer contracts for electricity at a competitive rate in that case. In California, for example, that helped lead to the closure of one of the states remaining facilities.

        Related to this economics point the tip fees, or what waste haulers pay to dispose of waste at incinerators, are often quite a bit more costly than alternatives. So, we see two to three times higher rates of tip fee disposal than comparable recycling or composting costs. Which, again, I’m here with Neil our expert, so he can perhaps touch on some of that too as he gets more into the waste side of the equation.

        And we also see that jobs, sort of local jobs, which are generated at incinerators, are quite a bit less than other alternatives. So, we see four times the number of jobs per unit of waste in composting sites, for example.

        So, really there are better alternatives that exist when you look at these plants through an economics lens.

        We also see the impacts on public health, and that was a big motivator for, it sounds like, the Baltimore case certainly. But incinerators are these classic cases of environmental injustice in the communities that they’ve been located in. They’re often sighted in neighborhoods that are predominantly made up of people with lower incomes, people of color as the Energy Justice Network has illustrated in some really great maps that we feature in the report.

        And so, Neil has mentioned them. They’ve done some great work documenting, again, the harmful, costly, and avoidable public health risks that these incinerators present to the local communities that are living nearby.

        And we also talk a little bit, I think, more about that dynamic with partners from EJN, the Energy Justice Network. And then also another great organization GAIA, whose done more work in a webinar that we hosted on the report in January. So, can point folks more to that resource.

        And then, finally, we, especially in looking at this through our Energy Democracy lens, and the impacts that incinerators have on the energy sector, we argue the third point being that renewable trash, which these incinerators are often being classified under, is really a legal oxymoron. It doesn’t really make sense that burning garbage would be considered a renewable resource, but it is in the majority of states where incinerators are located. We have 52 plants operating in states that do classify trash burning as a renewable resource of energy.

        So, these are three reasons that we definitely see communities pushing back against this dirty practice, and we highlight those three in our report.

        John Farrell:
        Marie thank you.

        I want to jump back and ask Neil, specifically, about how some of these large scale issues apply in the case of Baltimore. Just very quickly though, is Maryland one of those states that counts burning trash as renewable energy?

        Marie Donahue:
        Exactly. Yes, it is one of those states.
        Neil Seldman:
        In fact, it’s the only one in the country that gives garbage incinerators a tier one status within the renewable portfolios standard system, which allows it to get even more money that we think should be going to wind and solar, and truly renewable sources of energy.
        John Farrell:
        So, Neil, Marie also talked about the health and pollution problems from the incinerators, in general, being a big issue; the environmental justice implications. It seems like that’s a pretty fair description of what was going on in Baltimore. So, I’m just curious was that true, in the work that you’ve done there, that the pollution was having that disproportionate impact on people of color and low income residents? And is it true as well that the city could save money with other waste processing options?
        Neil Seldman:
        Both are true. The institute did a report in 2017 detailing the potential cost reductions, and money savings for the city if it were to transition away from the incinerator.

        I’ve been fighting garbage incinerators for over 45 years now, and it’s fascinating that people get aroused because of the fear of pollution impacting their health and the environment. Ultimately it’s the economics that moves people to make the decision. In Baltimore, it was a healthy combination of both.

        In terms of the pollution I’ll point out that John you mentioned 50%. The Bresco incinerator accounts for about for exactly 36% of the industrial pollution in the city as measured by the US EPA. And these health costs are very significant. Dante Swinton, an organizer for Energy Justice Network in Baltimore, did the numbers, and he estimated that the cost to the city annually, that is the city, the businesses, and the people in the city, is about 153 million dollars a year. And that comprised of absentee workers who are sick with asthma, and other ailments, school children that miss school, and also have to go to an emergency room for asthmatic conditions. That’s quite a hefty bill that the government, businesses, and citizens have to pay.

        And the stimulus for trying to shut down an existing incinerator came from Curtis Bay, which is an industrially zoned community at the southern tip of Baltimore, and about four years ago the private industry was planning a 4000 ton per day garbage incinerator in the middle of Curtis Bay, which is already the heaviest polluted zip code in Baltimore. And this triggered simmering discontent in the community, which is low income, mixed white people, Black people, Latino people and Asian people, they were absolutely fed up when this 4,000 ton per day incinerator was announced, the plan for it. And through incredibly well organized citizens, led by united workers, and their staff all live in the community and went to Ben Franklin High School, these adults and young people … also adults, but just out of high school and in college, came up with incredible tactics, videos, small meetings, many, many small meetings, which mobilized the city.

        Among their best tactics was a video produced by the young people in the community that was sent around to the museums, the school systems in the city and the region that had pledged to buy electricity from this planned garbage incinerator. And the video made it clear that this was dirty electricity. And one by one these institutions withdrew their offers to buy electricity from this source. That was a major accomplishment, and it led to lawyers, and doctors, and organizers from other issues on the environment to join United workers. Energy Justice Network did a whole lot of work, the institute, myself and Brenda Platt did a lot of work. The institute’s work was showing, pointing to specific examples of what government, industry, and citizens have been doing to implement alternative systems that do not have incineration.

        We supported the Fillbert Street Garden, which is a community institution in Curtis Bay. We raised money to build a compost pad, that compost pad is now the basis for a collection program in nearby neighborhoods that picks up organic waste from households and businesses, brings them back to the garden for composting, and reuse. The program involves young people and also small children. There’s an elementary school right across the street, the children are growing flowers, fruits, vegetables, it’s quite an institution.

        All of this mobilized the community both from the fear of pollution, and the possibilities that the 90 acres that was going to be devoted to the incinerator could now become a green industrial park with recycling, composting, solar energy projects. So the community was turned around into what’s possible, it energized their mobilization, and after the defeat of the planned incinerator in Curtis Bay, there was a seamless transition to focus on the existing incinerator, and of course, Environmental Justice did a great job in documenting the pollution.

        I also want to tip my hat to Environment Justice Network because they also went deep into the weeds, working with communities surrounding the incinerator who suffer the most from the pollution, and raised money and developed a pilot recycling program. Baltimore has a very low recycling rate. There are reasons for it, the DPW, the Department of Public Works in the city just hasn’t paid attention to recycling and composting. And the Energy Justice Network pilots showed that citizens with the proper carts, proper information, and proper incentives, they were recycling at 39%. The city’s average is anywhere from 14 to 19%, so virtually a doubling of the recycling rate just by paying attention and proving that low income people, black, white, or green, will recycle and want to recycle.

        John Farrell:
        So this is terrific, I was just gearing up to ask you the question about how this mobilization happened around the Wheelabrator, and that led to this city policy, and so I appreciate you just jumping right in and talking about that Curtis Bay planned incinerator and the way that the community had rallied around it.

        But we’re going to take a quick break here and when we come back we’re going to talk about how many states are providing subsidies to trash burning through renewable energy definitions, which we touched on before. I’d like to dive into how industry consolidation is helping the incinerator industry. And then also to talk a little bit more about what we’ve already heard about, is what communities can do instead of hosting trash burners, in terms of waste processing and things that they can do to create jobs, and healthier jobs in their community.

        Thank you so much for listening to this episode of Building Local Power with in house guests, Marie Donahue and Neil Seldman. This is the part of a podcast where you usually hear something about a mattress company, or a meal delivery service. But the Institute for Local Self Reliance is a national organization that supports local economies. So we don’t accept national advertising. Instead, please consider making a donation to ILSR. Not only does your support underwrite this podcast, but it also helps us produce all the resources, from reports, to podcasts, to interactive maps we make available for free on our website.

        Please take a minute and go to ILSR.org/donate. Any amount is welcome, and sincerely appreciated. That’s ILSR.org/donate. We also value your reviews on Stitcher, iTunes, or wherever you get your podcasts. Thank you so much. Now, back to our discussion of trash incineration and some better alternatives.

        Okay, before the break we talked about how Baltimore’s incinerator is a classic case of environmental injustice. Aided and abetted by state policy that subsidizes trash burning. Marie, can you talk about how common it is that states allow burning in municipalities to counter renewable energy? You gave us the number before, and is that a subsidy that’s keeping incinerators afloat?

        Marie Donahue:
        So we discussed how classifying burning trash as a renewable resource is this oxymoron. How quite a number of states it’s quite common, 23 states currently allow municipal solid waste to be included in these definitions, which is quite unfortunate. And so we’ve been talking about Baltimore, we already mentioned Maryland’s case is particularly striking and unfortunate in that it puts trash incineration on the same plane as solar and wind. Not in all of these other states is that always the case, there are some stipulations, or where incineration is counted under certain conditions, but 23 states have included incineration in their goals, or in some cases these more strict renewable portfolio standards.

        This designation allows incinerators to benefit from the support of renewable energy credits in states, both within states where they might be getting credits toward their electricity production, and then also has implications for out of state credits that city’s utilities may be buying to offset other sources of energy. And we see that in Maryland as well. We cited a report showing that in Maryland, for example, rate payers reportedly spent 84 million over the last decade to purchase these unbundled, out of state renewable energy credits from Virginia, which is another state that classifies incineration as a renewable resource. And that these credits were from … a majority of these credits are from dirty energy sources. So again, these are sort of indicative of how this industry is funded and supported by these renewable credits and that designation.

        It allows the power that’s generated by facilities, and you’ll mention this a little bit just about how utilities, how these companies are able to market the energy as this renewable, attractive resource. And so, from at least a marketing perspective, in wholesale electricity contracts, with utilities, cities, or others, these power purchasers can tout that sort of green nature, and that green washing is really quite pervasive in the industry. It’s been used, and certainly they’ve changed the wording. Neil knows this history better than me, but that they’ve changed the wording to allow it to be more attractive and sound like it’s a better source or energy than it is, brushing aside the public health impacts and some of these other negative impacts that we discussed earlier.

        That said, on the flip side of what state definitions and policies are, there are examples that we found, in Rhode Island for example, of clear bans on municipal solid waste incinerators, or ones that are keeping this explicitly out of their renewable energy goals and definitions. So that’s sort of a positive, small positive story even though that’s a rare occurrence in these states we looked at. In some cases it’s just not mentioned at all.

        John Farrell:
        It sounds like that could be a potential opportunity then in how states can address this, not only does a state like Maryland need to remove municipal solid waste from its definition of renewable energy, but it’s important to also include some sort of language that says you can’t buy dirty energy from out of state and count it as renewable here. That if it comes from an incinerator in Virginia, or Ohio, that when it’s purchased in Maryland it can’t be counted as renewable.
        Marie Donahue:
        Exactly. Yeah, I think that is a clear opportunity, and we do I think call that out in the report.
        John Farrell:
        You know, I wanted to jump back to this bigger picture around incinerators, you mentioned before that ILSR has worked on helping to stop incinerators, dozens of them across the country, when folks who are building incinerators here, the name Neil Seldman, a fear is stricken in their heart about the fact that they were going to be able to build that incinerator. There have been hundreds on the drawing board, including that one in Curtis Bay that really triggered the action in Baltimore. Who is it that’s trying to build trash burners? And can you tell us about how consolidation in the waste disposal industry is playing in a role in the push to develop more of these large facilities?
        Neil Seldman:
        Yeah, quite correct, since the institute was founded in 1974 we’ve been involved in over 50 of these battles. We won all of them except for four. The point is that over 400 have been stopped since the 1970s, 80s, 90s, and going into the 2000s. There’s only one that has been built since 1996, and that was in West Palm Beach, Florida, that’s a story unto itself. And none has been built since then.

        To be frank, the citizens and small businesses, there’s a playbook on how to kill incinerators, and you could read the playbook and organize your community, and it’s more than 50/50, much more than 50/50 that organized citizens will be able to stop it.

        The consolidation of the solid waste industry is a critical component of this. The first consolidation started in the late 60s, early 70s over buying out haulers and consolidating haulers, and creating a virtual monopoly on hauling. At the same time, a virtual monopoly on landfill capacity was developed by these companies. When it comes to incinerators, it was just another form of the consolidators taking control and putting in systems that favored them, not the citizens or the environment.

        But, as I indicated, that effort was stopped cold. And the effort by the waste hauling companies to add incineration monopoly to their landfill monopoly was shut down. There are remnants of those facilities that were built in the 70s and 80s, such as in Baltimore, such as in Montgomery County, actually, Montgomery County was built in the 90s. Citizens have been fighting existing plants for 20, 30 years.

        The prospect of citizens winning in battles against the existing incinerators is now improving tremendously, and I think that Baltimore experience is certainly going to help citizens in Detroit, Indianapolis, Newark, New Jersey, and many other cities that still have these incinerators. There are about 50 remaining, 50 to 55 garbage incinerators remaining in the state. That’s down from over 100 a couple of decades ago.

        The other important thing, as I said earlier, environment concerns, people breathing air that has mercury, and lead, and dioxide, and known killers, as well as oxides of nitrogen which are not killers but certainly impact health, gets peoples’ attention. But it’s very important for anyone fighting these plants to have a sense of what’s possible. And happily, the recycling movement across the country since the late 60s has shown what can happen, that’s both grassroots recyclers and small business recyclers. And that confidence, and that merging or pro recycling and anti incineration movements, has really made a tremendous different. And the transition away from these incinerators, it can’t be done over night, but it certainly can be done within a two to three year period. And it’s relatively simple, the transition is based on best practices. Composting, which comprises about 30 to 40% of the waste stream, is a very easy alternative to incineration and landfill. The big waste holding companies fight composting because it has the potential to take away 30 to 40% of their market, into a distributed system that’s based on local markets and local small businesses.

        The other part that we recommend, it’s not essential, composting is essential. A very helpful tool, which I sometimes refer to as a magic bullet, if there is anything to get people to recycle, is unit pricing, or charging people by the amount of garbage they set out for collection, with composting set-outs and recycling set-outs either free or much, much less expensive for households to put out. This creates an immediate incentive for households to pay attention to their waste. In fact, we have documented cases through original research, as well as other research, other organizational research, that shows that when you put in unit pricing within a year to a year-and-a-half, your overall solid waste stream goes down by 40%. That’s a combination of people getting involved in recycling, composting and source reduction, meaning people don’t buy packaging that they’re gonna bring into their house and then have to pay to get collected in their curbside system.

        The other thing about unit pricing, also called Pay as You Throw, Save as You Throw, smart save money as you reduce trash, is that it can help civilize American culture. The United States, people in the United States, generate 4-and-a-half pounds of garbage a day, it’s the most of any country by far in the world. It breaks out to about 3 to 3-and-a-half pounds per day when you take out the amount of recycling we’re doing.

        John Farrell:
        You were talking about civilizing America, Neil and so I hoped that you had a solution to political polarization in this.
        Neil Seldman:
        Hm, no. I don’t, although I must say that recycling is not a partisan issue. It’s an incumbent issue, because incumbents, for many reasons like big bond issues, which is what your incinerators give you for financial patronage and all kinds of things that go on in our political system. But what I meant is, that the United States is a pariah in the world because we generate so much waste. Three or four times what most countries generate. And using a certain type of unit pricing system, the bag system, which allows you to collect organics, used products, textiles, et cetera, in your curbside recycling program, allows cities to get their per capita waste generation down to less than one pound per person. And that’s revolutionary, and it would mean that the United States finally, or people in the United States are finally taking responsibility for the profligate lifestyles we’re living, which are generating all this waste, and we can have just a good a lifestyle without all this waste, as being proved by unit pricing systems.

        There’s one other and last major area that cities need to pay attention to, and that’s the economic development side of recycling. As you recover materials from the waste stream and process them, you add value to them, meaning jobs and better, higher market prices. And then if you use that material in your region or in your city to manufacture new products, you get another way of economic stimulation. This is what the Institute for Local Self-Reliance is. Cities control this material, why not use it and create a local economy? And the job creation, as Marie mentioned, is very important, and to accomplish all this, cities need to designate industrial sites, whether they’re continuous or not, as some people call them, “Resource Recovery Parks.” Some people call them ecological industrial parks.

        In California, where these types of recycling parks were created about 20 years ago, they’re called recycling market development zones. There are at least 30 of them throughout the state in rural and urban areas, and they give economic benefits, tax breaks, marketing assistance, to companies that locate in these parks and use the recovered materials from cities to create new jobs. There are over a hundred companies that have located in California, creating thousands of jobs, all because there are available industrial spaces specifically for companies that recycle, compost and reuse old products.

        John Farrell:
        As usual, you’ve anticipated my question and offered a lot of things that cities can do. The Pay as You Throw policy, creating these Resource Recovery locations. Marie, I was hoping that you could get a last word, too, about maybe one recommendation from the report, writ large, that either states or cities can do around incineration. And then just warning both of you that as is our tradition, we like to ask for a reading recommendation at the end of the conversation.

        So Marie, tell us something from the report that communities can pursue, that can help them address this problem with incinerators around renewable energy.

        Marie Donahue:
        Sure. So I think energy is, as we mentioned, a component of this incineration dilemma, perhaps, and cities that are looking for alternatives certainly have more economical, cleaner sources available to them. We recommend that local governments look into ways of investing in solar energy on municipal properties, for example, with savings they might make from transitioning the high costs of waste hauling that they would need to dump at incinerators over to investing in municipal solar pilot projects. And community solar is another great example of really empowering communities that might be near existing incinerators with cleaner sources of energy to renters, to others that have not had access to rooftop solar. So I guess I have two answers, but both of those things can be enabled by state policy, as well, so hopefully states make more progressive policies in the future, and I’ll plug our Community Power Scorecard that gives more of the state policies that are better than classifying waste incineration as renewable energy, for folks that wanna learn more.
        John Farrell:
        So make a note before I ask Neil for his reading recommendation, that all of the reports or other resources that were discussed in this will be available on the show page, we’ll link to them. The Community Power Scorecard, ILSR’s research in Baltimore, the playbook on stopping incinerators. But Neil, do you have something that you’ve been reading recently you’d recommend to our listeners?
        Neil Seldman:
        Well I’ve read them when they came out, but they’re two terrific books for people. Paul Connett, C-O-N-N-E-T-T, “Zero Waste: Saving the World One Community at a Time.” Really emphasizes the link between organizations, such as the Institute, and community groups. We have to work together. I mentioned that the Institute had all these victories, they certainly weren’t the Institute’s alone. We couldn’t get to lunch without local partners in all our cities.

        Another excellent book is Plastic Ocean by Charles Moore, Captain Charles Moore, which deals with the plastic dilemma. The other thing I would suggest, and John already mentioned it, if you go to the Waste to Wealth blog page, we cover these issues of monopolies, single stream, the issue of China, which is important. And citizens can get a very good background just checking out our blog page at Waste to Wealth, at archive.ilsr.org.

        John Farrell:
        Thanks, Neil. Marie, what would you recommend?
        Marie Donahue:
        Book I’m reading now is called Emergent Strategy, I’m not through with it, but it’s by Adrienne Maree Brown, who’s a Detroit organizer and wears a number of other titles, but I love this quote about that concept means, about how we intentionally change ways that grow our capacity to embody the just and liberated worlds we long for. And I think learning lessons from anti-incinerator activists and other grassroots folks is just really inspiring to me, so looking forward to finishing that book.
        Neil Seldman:
        Let me just say this, another great book that just came out, by our very good friend, Beth Porter, at Green America. It’s called, “Reduce, Reuse, Reimagine”, and she introduced a great concept, perfect for Baltimore, which has a low recycling rate. “Recycling is like an acorn. If you plant it and nurture it, it will become a giant tree of economic, social and environmental benefits.” And thank you for your time.
        John Farrell:
        Thanks for sticking that in. Neil and Marie, thank you both, and all those book recommendations. We’ll have some links to them to where you can purchase them from your local independent book seller. Thank you so much, both of you.
        Marie Donahue:
        Thank you, John.
        Neil Seldman:
        Thank you very much.
        John Farrell:
        This is John with a quick editorial note. The Baltimore Clear Air Act, mentioned by Neil early in this podcast, was signed by the Mayor shortly after we recorded on March 7th. More information can be found in the show notes.

        Thank you so much for tuning in to Building Local Power. This is John Farrell, ILSR co-director. I was speaking with two terrific guests, Marie Donahue, ILSR researcher and author of Waste Incineration: A Dirty Secret and How States Define Renewable Energy, as well as Neil Seldman, ILSR co-founder and director of our Waste to Wealth initiative.

        Check out the show page for a transcript, a link to Marie’s report, and other resources, and links to the recommended books via IndieBound. While you’re at our website, you can also find more than 60 past episodes of the Building Local Power podcast, and show us some love with a contribution to help cover the costs of producing this podcast. You can also help us out by rating this podcast and sharing it with your friends on iTunes or wherever you find your podcasts.

        This show is produced by the amazing Lisa Gonzales and Hibba Meraay. Our theme music is Funk Interlude by Dysfunction_AL. Please join us next time in Building Local Power.

         

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        37 min
      12. Internet Access: Getting the U.S. Up To Speed

        Susan Crawford, Author

        Host Christopher Mitchell speaks with Harvard Law Professor and broadband champion Susan Crawford about her book Fiber: The Coming Tech Revolution — And Why America Might Miss It. Christopher and Susan talk about bringing better connectivity to rural and urban areas.They also discuss:

        • What cities should be doing to get better Internet access including examples of places where local leaders are building fiber networks.
        • Reasons to be hopeful about the future of Internet access in the U.S., including bipartisan support for better connectivity.
        • How we can foster more competition in telecommunications. Susan explains why quality service will only come from an open access approach.
        • What the federal government can do to take action on broadband and policy recommendations that the executive branch can implement.
        • The transformative impact of treating Internet access like other utilities. Susan details the story of Tiffany Cooper who was able to gain high-quality connectivity while living in public housing and has seen major improvement in her son’s grades and her own employment opportunities as a result.
        •  

          “What we need to do is to help people understand that the best interests of our country depend on reframing this entire issue. That this [Internet access] is not a luxury, that’s it’s basic to every form of business and every policy we care about.”

           

          Related Resources

          1. Fiber: The Coming Tech Revolution — And Why America Might Miss It.
          2. Community Broadband Bits Podcast
          3. Oregon’s MINET: New Approach, New Expansion – Community Broadband Bits Podcast 340
          4. Susan Crawford
          5. Transcript

            Lisa Gonzalez:
            Hey, Chris, read any good books lately?
            Chris Mitchell:
            Oh, always. So many good books.
            Lisa Gonzalez:
            Have you read any good books on fiber lately?
            Chris Mitchell:
            I’ve read one good book on fiber lately.
            Lisa Gonzalez:
            And who was the author of that book?
            Chris Mitchell:
            Susan Crawford.
            Lisa Gonzalez:
            Oh, I know her. In fact, she even mentions me in this interview that we’re gonna listen to on Building Local Power.
            Chris Mitchell:
            Yes, the woman behind the scenes, who keeps things rolling, you finally got your moment in the sun. And well deserved, from Susan Crawford.
            Lisa Gonzalez:
            Why thank you. And thank you, Susan.
            Chris Mitchell:
            I know who Susan is, you know who Susan is. Can you describe Susan for our audience?
            Lisa Gonzalez:
            Susan Crawford, in addition to being a professor at Harvard Law, and an author of Fiber: The Coming Tech Revolution and Why America Might Miss It, is one of America’s broadband champions. One of the most well-known broadband champions. And she’s gonna be the guest on this week’s Building Local Power Podcast.
            Chris Mitchell:
            And she’s touring the country promoting that new book. I’ve read it. It’s wonderful. You’ve read it. Katie read it, Jess read it. We’ve all enjoyed it. It’s getting very good reviews. It’s selling hot. But we wanted to introduce the interview to make sure that people have a sense of all the concepts we’re gonna talk about. Because when I did the interview, I kind of forgot to do it for a general audience. I was doing it primarily for an audience that’s focused on broadband issues already. And we thought the interview was so good and made so many great points, we wanted to share it with this audience, also.
            Lisa Gonzalez:
            Right, because we originally published the interview in the Community Broadband Bits Podcast, which is from the Community Broadband Networks Initiative at ILSR.
            Chris Mitchell:
            Right, and we’re very much a community here.
            Lisa Gonzalez:
            Yes. We certainly are.
            Chris Mitchell:
            Community, community, community. So one of the things that we wanted to make sure people were familiar with is that Susan had written a previous book called Captured Audience, which was about the fact that most of the country has a cable monopoly as the best or only option for high quality Internet access in their area. And so it’s useful to know that. We’ll be making reference to that, effectively. But also that a number of urban areas are seeing some fiber to the home investment, which is the best broadband access you can get today. They’re seeing some of that rolled out by companies like AT&T and CenturyLink to kind of some parts of some neighborhoods scattered across cities. So there is this sense that some people, particularly in wealthier neighborhoods, are getting this higher-quality fiber optic service. But that it is not evenly distributed and we do not envision a future in which it would be evenly distributed just by market forces alone.
            Lisa Gonzalez:
            And in this interview, Christopher and Susan get into why fiber is important. And not only to reach homes that have fiber to the home, but also because it’s gonna be used for wireless connectivity, for mobile connectivity, for 5G, which is mobile connectivity, but also for some of the more futuristic-type applications, which you hear a lot in the news such as Internet of Things and for connecting street lights and for connecting traffic lights, and all of those applications that we are trying to implement in order to just improve the quality of life in urban and rural areas.
            Chris Mitchell:
            And one of the ways that Susan actually would like to see that rolled out, and makes a strong case that this would be the beneficial way, is that cities do dark fiber, which is obviously the opposite in some ways of lit fiber, not to be too obvious about it. But if a city like Chattanooga or Wilson builds a city-wide network and offers services directly, they’re putting fiber on the poles or in the ground, and then they are lighting it, which means you’re putting information across it. Dark fiber would be where a city basically puts fiber all around the community and then different companies would lease strands of it and they would light it themselves. So they’re not really getting a telecommunications service from the city, the city’s not really competing in a market of broadband, but it’s providing the infrastructure that would lower the cost for Internet service providers to be able to develop their products and offer service to any street corner, any home, or anything like that.
            Lisa Gonzalez:
            And in some of the communities that Christopher and Susan talk about, including Wilson and Chattanooga, and Lafayette, those communities do actually offer those services directly to the general public. They do that through their utilities.
            Chris Mitchell:
            So if I’m like, “Hey, Lisa, I have a problem. My Internet’s down.” I don’t call Comcast. Lisa, you would tell me, “Well, call the electric plant board.”
            Lisa Gonzalez:
            Yes. Like LUS Fiber in Lafayette, or EBP Fiber in Chattanooga, or Green Light Community Network in Wilson.
            Chris Mitchell:
            Right. And so these are actual companies that compete with AT&T, Comcast, Time Warner, used to be Time Warner, Charter Spectrum now. They are providing the services as a municipality. They’re offering telephone, television, and Internet service. Just like a big company like Comcast. Except those cities do it at a reasonable price and with good customer service.
            Lisa Gonzalez:
            Right. And you don’t have all sorts of gimmicky prices and things like that.
            Chris Mitchell:
            Yeah, they keep it pretty transparent.
            Lisa Gonzalez:
            In comparison to something like an open access fiber network, which Christopher and Susan also talk about. That’s when the city owns the infrastructure and they invite competing ISPs to offer services over the infrastructure.
            Chris Mitchell:
            That’s right. And it’s a really exciting model that is growing and I think has tremendous potential. Particularly where cities don’t want to get involved in that day-to-day marketing battle with a big company like a Comcast.
            Lisa Gonzalez:
            And we’re seeing more communities, especially regional networks, start to build those.
            Chris Mitchell:
            And the final point in your educational lesson before this interview with Susan Crawford is that many rural areas are getting these very high quality fiber networks being deployed by cooperatives. In some cases, that’s telephone cooperatives, and in other cases it’s electric cooperatives that have started offering services. And in a very few number of isolated cases so far, there’s new cooperatives that are offering broadband service. So we just talk off hand about how rural areas are getting better service, but that’s what we’re referencing.
            Lisa Gonzalez:
            So all in all, it’s a pretty interesting interview and we do recommend the book. Because Susan explains a lot of these things, and she does it in a much more interesting way than we do just sitting here talking about it.
            Chris Mitchell:
            Right. In fact, if you’ve read the book and you’re sitting there rolling your eyes, then here’s the interview. You’ll enjoy this part a lot better.

            I’m Chris Mitchell with the Institute for Local Self-Reliance in Minneapolis, and I have one of my favorite guests back today, Susan Crawford, a professor at Harvard Law and more recently the author of Fiber: The Coming Tech Revolution and Why America Might Miss It. Welcome to the show, Susan.

            Susan Crawford:
            Well, it’s an honor to be here, Chris. This is really your movement, all I’m doing is writing it down.
            Chris Mitchell:
            Well, you have supercharged it and I am eternally grateful for you doing that. Do you differentiate between rural and urban Internet access problems?
            Susan Crawford:
            Well, problems, yes. But solutions, no. I don’t see any reason why people living in rural areas should have second-class access. And it’s just a policy decision. We did that as a country for telephone systems and for electricity and it should be the same for the basic communications network. So when we get to the end of this policy road, everybody should have ubiquitous, mostly fiber if not exclusively fiber, cheap, persistent, reliable connectivity in their homes and businesses wherever you are in America.
            Chris Mitchell:
            I think, I entirely agree with you. And one of the things that I like about your analysis is the focus on fiber. And I think that’s important for several reasons that you and I agree on. But since the last time we’ve talked, the cable companies are on a path to do DOCSYS Symmetrical, where it looks like they’ll be able to offer very high quality, symmetrical, very fast speeds. And so I’m curious, then, if you would think that the urban problem is kind of solved?
            Susan Crawford:
            Actually not. First, at what price is really important. How much are people having to pay for this service? Because it looks to me as if the entire country is paying rent to about four or five companies that are doing extremely well. So that’s one issue that remains for urban areas. At what cost? And how many people are left out of that great network connectivity because they simply can’t afford it?

            And the second point is that, yes, that looks good as an upgrade to their existing capacity, but unlike hybrid fiber-coaxial lines, the glass fiber really is, as far as we can tell, infinitely upgradeable. There is a top limit to what you can do with those cable capacity that we’ll not approach what’s possible with fiber. So the two technologies are just not the same. And the idea of making sure that we’re matching the rest of the world with our basic wire makes a ton of sense to me. And it does to most people in these other countries that I keep visiting. So long story short, that is not a solution if it’s too expensive and not upgradeable without extraordinary effort.

            Chris Mitchell:
            And so then I feel like we’re actually left in a situation in which, as you say, rural areas have second-class service. They should not into the future. But given your analysis of the cable monopoly, it strikes me that we’re moving into an era in which, over time, more rural areas will actually have the first-class service and people like me in a cable monopoly area in an urban region will have second-class service in some ways.
            Susan Crawford:
            I think that’s right. And I think that sets up some terrific incentives for people in the urban areas to be even more interested in the idea of a public option or a wholesale network or a dark air conduit available to lots of competing fiber providers in every city, or dark fiber available for lease. Something that is a wholesale version of a public option that is available to everybody at a reasonable price. So the retail market emerges in those urban areas.

            Look, nobody wants to see cable not competing, except for the cable companies. So I’m happy for them to be successful businesses, but they have to be subject to competition like everybody else.

            Chris Mitchell:
            Now I think the final step of this, walking through this analysis, is that in some areas, and I would be very clear, in fact in some ways, some parts of some neighborhoods in urban areas are seeing fiber investment from AT&T, from CenturyLink, from some other of the telephone companies. And so where we see that, you’ve just mentioned creating an open market. Why isn’t that competition between like AT&T and CenturyLink fiber good enough for a first-class city? In this case, a first-class city?
            Susan Crawford:
            Again, because of the switching costs. There’s a huge lock-in effect when you sign up for any one of these operators. It’s very difficult to move to a competitor. And that’s a problem, because over time the company that has you locked in can just steadily raise prices and you’ll feel helpless to do anything about it. So as a matter of public policy and just respect for human ingenuity, we should make sure that that competition is real, not just temporary and fake.
            Chris Mitchell:
            Okay. So now that we’ve gotten there, what is the argument that you’ve made in the book in terms of what cities should be doing? Because I think it’s clear, we celebrate Chattanooga and Lafayette and Wilson, and they’re champions in the book. You tell great stories about them. And yet if you’re advising a city, you’re not advising them to go down that particular path.
            Susan Crawford:
            Right. And so many of these cities that are heroes now have depended on their existing municipal electric utilities as a first step towards bringing fiber. And that can’t be necessary because there are only a few thousand cities in the United States that have a municipal electric facility available. So there has to be a broader plan. So what we’re all advocating for, Christopher, and I think you more effectively than anybody else in the country, is taking stock of local realities with a broad cross section of the community…. making sure that civic officials and the business community and residents and local government all understand the opportunity that they’re missing by not figuring out what to do about their fiber situation. Then getting in help to do a feasibility study about what might be possible there, and then moving ahead with political leadership at the political level. It’s all about lowering the cost of capital ultimately because it’s not rocket science to build these networks, but it is about lowering the cost of capital and getting sterling leadership in place and supporting that leadership to move forward.

            Increasingly, I’m excited about regional opportunities, not just municipal ones. Watching what’s going on in the South Bay just south of Los Angeles, where a whole bunch of communities are talking about getting together and issuing a joint RFP for dark fiber services. That makes a lot of sense to me. There are ongoing economies of scale that operate at the public level, just the same way they do at the private one. But the first step is getting everybody together, having a real consensus that this is important, and then taking the necessary block and tackle steps to figure out what needs to be done, what the gaps are, where the capital will come from, and what the plan is.

            Chris Mitchell:
            I’m curious, what gives you hope that we’re gonna see more of these approaches and more of these regional collaborations, as opposed to this just being a footnote over a period in which we’ll muddle along for many more years.
            Susan Crawford:
            Well, MuniNetworks.org gives me hope because every day you’re putting out stories of different places working on this and learning from each other. This is such a terrific community of people learning from past mistakes, making things work better, becoming increasingly professional in their approach to these networks. And Americans at their best are never cynical. What also gives me hope is that this is such a thoroughly bipartisan movement across the country. So many of these areas working on fiber are Republicans or labeled that way, as well as Democratic. And that everybody once they understand this issue deeply enough is moved to do something about it.

            So far, every conversation I’ve had, let’s say with my dry cleaner or the local music store or anybody on the street, once you take the time to explain it, they just say, “Well of course that’s the way things should be. Why aren’t they?” And Americans don’t like to be behind, and we are so behind the rest of the world. So, I’m optimistic because of the American character. I’m very proud of being American. And I know that we want to get this right, and we won’t be frustrated by a few companies doing it.

            Chris Mitchell:
            Well, I really appreciate that. I know that Lisa will too. My son is now three years old, so I know that Lisa has done almost all of the work on MuniNetworks.org for the past three years because that’s when I handed it off. Since then, I still get the credit, but she does all the work.
            Susan Crawford:
            Yay Lisa. Yay.
            Chris Mitchell:
            One of the things that you just said actually reminded me of a conversation I just had in North Carolina with a small business owner who has CenturyLink Fiber. We were commiserating because I also have CenturyLink Fiber in our office now. In my experience, 100 megabit symmetrical service is amazing. He has not had as good of a result, and we both agreed that the voiceover IP that CenturyLink uses is just awful. I mean, I frequently can’t complete calls. I have all kinds of problems with it. That’s just a reminder of something we were talking about earlier in terms of just one fiber line is not enough.
            Susan Crawford:
            Right. Quality of service will only come from competition. The only way that Telco or communications competition has ever emerged is requiring structural separation between a wholesale operator or the dark fiber or dark air part of this, and the retail services. As soon as people are allowed to choose hats or wear multiple hats, they start carving up markets and discriminating against others and making sure that they don’t have to invest any more capital than they need to. So, I think what we’re driving at with this idea of dark fiber, dark air, wholesale networks is encouraging investment in tremendously useful facilities for all Americans. That will mean great persistent voiceover IP, as well as very high capacity data services that I hope someday we will simply take for granted.
            Chris Mitchell:
            I’m curious who you aimed the book at when you were writing it. In part, I have to say, the timing is almost miraculous in that it came out in January and here we are at the beginning of February, and I think we’re starting to see the media finally catching on to the fact that a lot of the 5G hype was bait-and-switch, and you lay that out in the book. When I was reading it, I was thinking it might go over the heads of a number of people, but increasingly I think it was just right for certain kinds of people. But I’m curious who you were aiming at.
            Susan Crawford:
            I was aiming it at anybody who is curious and reads a newspaper. It’s very approachable as a book. It really tries to tell the story in very human terms and get everybody all excited about the capacity of fiber. So, I was writing it for any small business owner, householder, trying to make this as … It should be a pedestrian subject frankly, and it has seemed technical and far away, but that’s because that’s the way it’s been framed by the incumbents. Actually it’s very sensible. So, that was my audience. Everybody is my audience.
            Chris Mitchell:
            Your first book, Captured, came out, and the cable companies had a plan to try and ruin you. They attacked you relentlessly. One of the things I remember is they had, on the day it was published, multiple one-star reviews on Amazon. Now I think they’re just desperately trying to ignore you and hoping that no one notices you. Is that your impression?
            Susan Crawford:
            I think that’s true. I’m still seeing a little bit. I have a particular detractor funded by Comcast who is always putting comments on Facebook and Amazon, so he’s still out there. But I think their goal right now is just to make sure this goes away. What I’m hoping is that it won’t. I’m doing my best to get into mainstream news outlets, whatever I can do to keep pushing this story along.
            Chris Mitchell:
            Well, I went to, for an employee of the Institute for Local Self-Reliance’s great extremes. I wrote a review on Amazon.
            Susan Crawford:
            Thank you.
            Chris Mitchell:
            And I really hope that other people will too, even if they are also scared of Amazon because Amazon remains one of the key places people turn to to look for reviews. So, I hope people that have read the book or who are about to read the book will do a review on Amazon, even though I hope you buy the book somewhere else.
            Susan Crawford:
            Oh, I appreciate that. And yes, I support independent bookstores and I want people to buy it there. I should do a better job of urging people to write reviews on Amazon. I just don’t. In part, I feel my role is just to write the book and then everybody else will do what they want to with it. Other authors are more active in promotion, and this is just a failing of mine not to get an army writing about it. But I appreciate the plug and I hope that does happen.
            Chris Mitchell:
            Well, I did notice that you don’t start off every answer to a question with, “As I say in my book.”
            Susan Crawford:
            No, I don’t do that, and I really should.
            Chris Mitchell:
            I am totally on board, as anyone knows who’s listened to us, with our arguments that local leaders are the ones that have to step up. You make that case very compellingly, but I’m curious because you have worked in the executive branch for President Obama. When you think about this, my impression is that the Obama administration in the last two years tried to figure out any way the executive branch could encourage these types of networks, and more or less came to the conclusion that they just don’t have much authority or power to do so. If we had a president right now that was both competent and willing to take action on this, do you think there’s anything that the executive branch can do today?
            Susan Crawford:
            Oh, absolutely, and in fact in the last chapter of my book, I make a lot of these recommendations. Setting a standard for what constitutes the basic telecom service in the United States, that’s the role of the executive branch, and having a lot of tax and loan guarantee and subsidization programs depend from that definition, would be extremely helpful. For example, operators still running copper lines across the country could be essentially forced through tax policy to abandon those lines and replace them with fiber, and with wholesale fiber, by the way. Operators in particular regions could be given loan guarantees by The Fed, which operates regionally, to lower their cost of capital there, and increase and incentivize the deployment of wholesale networks. Gosh, we could just make another Tennessee Valley Authority operation exist in rural areas that would be a wholesale provider of transmission services with connections only to publicly operated or publicly supervised glass mile networks.

            There are all kinds of things the federal government could do, but setting the standard and declaring that this is a priority of the United States would be a very first step, and that the Obama administration did not do.

            Chris Mitchell:
            That’s a very good answer. I did not see that coming, even though I read the last chapter. I think I was, as I noted, I was so euphoric for some of the stuff that came right before then in the local stories. I want to note something that some of the people who listen to this show are more of a fan of cooperatives and that sort of approach than municipal networks. There is some animosity between them. When you say the kind of authority that might do the wholesale access, I assume you’re including the cooperatives as a major component of that.
            Susan Crawford:
            Oh, absolutely, and I’m also harking back to what happened at the time of the formation of the TVA, that its policy was to make business arrangements only with cooperatives and municipals, so a definite bias in favor of these alternative modes of getting basic network connectivity out to people in rural areas.
            Chris Mitchell:
            There’s a line that I read from a 1950’s political science paper about the meeting where that decision was made. Harold Ickes, who was a person I actually have, I don’t know it’s like 2500 pages of diary for him that was published that I want to read that I haven’t gotten around to yet. But apparently in one of the early meetings about rural electrification, they were trying to figure out how to make it work. One of his people on the committee said, “Well we’re gonna have to work with the electric trusts.” And Harold Ickes said something along the lines of, “I won’t have it. We’re not gonna talk to those sons of,” we have a clean tag, so I’m not gonna finish that off. And he said, “We’re gonna find another way.” As you said, they focused on the cooperatives and the munis, and I think we’ve said probably trillions of dollars in rents because of that.
            Susan Crawford:
            I think that’s right. It takes character to do that because in the current American context, that sounds like heresy. What? Not have the private sector do absolutely everything? I’m not saying that public-private partnerships couldn’t work, but they would be the public in charge and the private operator as a vendor essentially helping with construction or operation of networks, but at the behest and under the control of the public entity or the cooperative.
            Chris Mitchell:
            Now, I want to talk about Greensboro, North Carolina because I think Greensboro makes this book work so much better than if you had excluded it. In this book, you talk so much about the great things that Wilson has done, RS Fiber with Mark Erickson and the many people that made that possible. You talk about Mynet and we actually just interviewed Don Patton recently, using some of the material from the book. You talk about Chattanooga. You talk about so many that where there’s great things happening. Greensboro, you actually mention that you read it just after reading George Packer’s The Unwinding, which is a fantastic book. Why is Greensboro important for your argument?
            Susan Crawford:
            Greensboro is important because I went to Greensboro expecting to find this scrappy spunky North Carolinian we can do anything attitude about fiber as well as everything else. And what I found was not that.

            What I found was that Greensboro was sort of sinking into genteel irrelevance in a state that is booming really. Greensboro hasn’t really gotten over its past of excluding poor and Black people from the civic life, it was my finding, and can’t really see its way past its current Internet access situation, too. These things are really of a piece, so the reason why Greensboro is so important to the narrative is that the overall story here is that places that can think about fiber as part of the decent respectable life, just a basic affordance, can also think about treating everybody with respect and making sure that the entire community is thriving. That’s more and more true in places like Wilson, but it is not yet true in Greensboro. They haven’t made that turn. It’s still suffering from the past and kind of convinced that it’s important just because it’s Greensboro.

            What I’ve found was that, although there’s some champions in Greensboro, they’re not gaining any traction because the local government isn’t really interested in fixing the Internet access situation which is dominated utterly by Spectrum and there doesn’t seem to be much will for overcoming this somnolence, really the sleepiness of the city’s business approach. That’s why it’s important. It was in contrast to these other places.

            Chris Mitchell:
            Right. For me, it was such a reminder of the importance of true local leadership, not just someone who’s willing to say, “Yeah, that’s nice.”
            Susan Crawford:
            Right, exactly. Yeah, they would sort of wave their hands at it and then not do anything. There are great people there and I hope they see that I respected what I was up to when I wrote the book, but that I could also see that nothing was going to happen. That it was sort of a plan towards a procedure towards a process without any real leadership behind it.
            Chris Mitchell:
            Right. Well, one of the things that I felt a little bit shown up on is the story you tell about Tiffany Cooper, because it’s so great. It just so illustrates why Wilson’s municipal broadband network in North Carolina, on the eastern part of North Carolina, which we’ve talked about many times in this show because they’re so path breaking. Her story is just a reminder that talking about low income households isn’t just sort of a policy issue, it’s real people’s lives. I’m curious if you want to tell us a little bit about her.
            Susan Crawford:
            Oh, I’d be delighted to, and I also hope people will buy the book. I know I need to start plugging. I’m delighted to tell the story because it’s an important centerpiece here and it’s so moving. I just about burst into tears when she said it. I went to visit Tiffany Cooper who is a young mom of three sons living in public housing in Wilson. She told me that being able to add $10 to her rent bill in public housing and have that result in a terrific fiber connection from the city of Wilson was the best thing that had ever happened to her, and that she hoped it would happen to everybody else in this country. She said a funny thing. She said, “Whoever came up with this idea? This was genius,” essentially.

            What she was really excited about was that her sons grades were improving because they could do their homework from home. She can’t get them to the library. She has no ability to drive anywhere and public transit in Wilson isn’t great. She knows that they are doing better and really focusing on grades because of the network’s presence in her home. She’s also getting new training, medical certification, for new sorts of jobs by having this fiber connection right there.

            Whenever I tell this story across the country, people just gasp. Of course you should be able to just treat this like a utility and pay an affordable amount and have it present wherever you are, in public housing, expensive houses, wherever. Wilson really saw this through and they said, “Look, we’ve got this network cost going to public housing. We’re going to make this available to people in multi-dwelling units in public housing across the city, and we’re very proud of it.” It’s one of my proudest moments in this book was being able to report that, and then have other people from other cities just gasp when they hear this story.

            Chris Mitchell:
            It’s a great story. I’ll note that there are many similar moments like that in the book. I wrote two case studies with Todd O’Boyle, who’s a Wilson native, about how Wilson built their network and then how Time Warner Cable fought back in the legislature. As I entered those parts of the book I was thinking, “Well, I’m going to know all this.” There was details in there I wasn’t aware of. If you found things that surprised me, anyone who picks this book up is going to find interesting things they did not know.
            Susan Crawford:
            Yeah. Thank you for that nice compliment. What’s particularly great about the Wilson part of the story is that they were willing to talk about the shenanigans with Time Warner Cable in getting the state law passed, and talk about them in detail. I don’t think that’s been on the record before. We all sort of know it, but it’s great to have it written down and important for us as we attack this issue across the country.
            Chris Mitchell:
            I think that’s right, and I mean, I know that’s right. I was trying to get into this point, which is that I think one of the challenges is many of us are bitter about the way in particular Republican state legislators, but sometimes Democrats, have accepted the arguments from the industry. I think whenever we talk about that we use language that is guaranteed to antagonize half of the people thinking about politics in the US. When I’m trying to talk to people in North Carolina, and particular in legislators, I have to remember that I think a number of those Republicans who voted for those bills are now angry at Time Warner Cable. They might not say so publicly. I think we might think they should’ve known better at the time, but they did think that the private sector would do better than it has.
            Susan Crawford:
            That’s right. We should always assume positive intent on everybody’s part, even on the part of the companies because, good lord, we haven’t restrained them. We haven’t given them any reason to act differently coming from the rule of law, right? Everybody’s acting according to their best interests. What we need to do is help people understand that the best interests of the country, and of our place on the global stage, and our ability to act coherently, and with respect towards everybody depend on reframing this entire issue. That this is not a luxury, that it’s not something that only rich people should have, that it’s basic to every form of business and every policy we care about. That reframing is just beginning to come into view, and whatever we can do to push that along is our job, I think, on Earth right now.
            Chris Mitchell:
            As we wrap up, I want to ask you about a phrase that you used on the Diane Rehm Show, which is one of my favorite phrases. It’s a deep history behind it, but I wasn’t sure that everyone would’ve caught it, and that is ruinous competition. I’m sure you used that for a specific reason. Tell me about that phrase.
            Susan Crawford:
            All of these businesses that seem to us today like ATMs with lawyers on top, like oil or communications, and sometimes-
            Chris Mitchell:
            Electric companies.
            Susan Crawford:
            … even banking. Electric companies. They have very high upfront costs to set up these initial networks, and so it is in the interest of the companies eventually to divide up markets. To say, “You take Minneapolis, I’ll take Sacramento.” Because if they start actually competing with each other, they’ll just run each other out of business. That’s what’s known as ruinous competition. There’s a long history of the use of that phrase in the railroad industry around the turn of the last century, and in oil. It’s only rational to have pricing power, to have control over entire markets, and that’s what’s happened with telecommunication. We can’t allow that to happen.

            This is essentially a natural monopoly service. It only makes sense to have one wire connection going to homes and businesses, and that wire should be fiber. The way to create competition, we’ve known for a hundred years, is to make sure that that facility is shared and shared according to really clear rules that keep the operator of the wholesale facility from having any incentive to pick and choose retail providers. That’s where we need to get, and the problem is that absent any restraint from law or oversight, these companies and legislators, everybody will act in their own self interest to keep the status quo in place.

            Chris Mitchell:
            Let me add onto that just briefly and see, and you can tell me that you think that I’m wrong. My way of thinking has shifted over the past 10 years. In part because of where we are, and also in part because of economic theory. If I could wave a magic wand and have a publicly owned or cooperatively owned fiber to everyone’s home and ban all other forms of access that would compete with that, I would not do that. That’s because I think it is important, even though I think it might be inefficient in some economic analyses, I think it is good to have a little bit of infrastructure competition to keep the owner honest. Even my thought is the local ownership and accountability provides the best opportunity for that in itself, but also having a competing provider, I think, creates the right incentives and if at least one of those pipes has to be open in the way that you envision to multiple providers. What do you think of that?
            Susan Crawford:
            Yeah, and I do disagree because we’ve seen this over and over again. If we believe in intermodal competition, which is what we did when we deregulated the telecom world, that we thought these wires would fight it out with themselves and that would protect consumers. Inevitably there’s consolidation and they buy each other out and then you’re left with a monopoly and no oversight, so you get the worst of both worlds. Actually, I think the competition comes from benchmarking wholesale providers against each other. This is the way Japan does it, so there’s NTT East and NTT West. You have to keep prices down coming from that wholesale provider. Then a genuine retail marketplace does emerge on top of that wire, and that is the way it should work. Because otherwise you just have private equity buying out competing networks and consolidating markets.
            Chris Mitchell:
            Well, I think this has been one of the best interviews we’ve had. I love all the different topics we got into, and I really hope that people appreciate it and they go out and buy your book. Thank you so much, Susan.
            Susan Crawford:
            Thank you, Christopher. Talk to you later.
            Lisa Gonzalez:
            Thank you, everyone, for tuning into this episode of Building Local Power. You can find links to what we discussed today by going to our website.
            Chris Mitchell:
            Oh, I know that. ILSR.org.
            Lisa Gonzalez:
            Very good, Chris, and clicking on the show page for this episode. That’s ILSR.org.
            Chris Mitchell:
            Hey, I thought I was going to do that part.
            Lisa Gonzalez:
            While you’re there you can sign up for one of our newsletters.
            Chris Mitchell:
            The community broadband network’s newsletter is the best.
            Lisa Gonzalez:
            I agree. Connect with us on Facebook and Twitter. If you like this podcast, please consider sharing it with your friends and leaving us a rating on iTunes or wherever you get your podcasts.
            Chris Mitchell:
            Actually, let’s just say, “Leave us a rating,” because that’s the part we’d really like right now.
            Lisa Gonzalez:
            A 10.
            Chris Mitchell:
            I think it’s out of five.
            Lisa Gonzalez:
            A 10. This show is edited by myself, Lisa Gonzalez-
            Chris Mitchell:
            Lisa Gonzalez.
            Lisa Gonzalez:
            …and produced by me, along with Hibba Meraay and Zack Freed.
            Chris Mitchell:
            Hey, Hibba and Zack, sorry you have to put up with me.
            Lisa Gonzalez:
            I feel sorry for you, too. Our theme music is Funk Interlude by Dysfunction Al. For the Institute for Local Self Reliance, I’m Lisa Gonzalez. I hope you join us again in two weeks for the next episode of Building Local Power.
            Chris Mitchell:
            We demand that you join us again in two weeks. Thank you, everyone.

             

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            Audio Credit: Funk Interlude by Dysfunction_AL Ft: Fourstones – Scomber (Bonus Track). Copyright 2016 Licensed under a Creative Commons Attribution Noncommercial (3.0) license.

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            39 min
          6. Race and the Economy: A Structural Problem

            Host Stacy Mitchell speaks with Maurice BP-Weeks, co-director of the Action Center on Race and the Economy (ACRE). After spending years as a community organizer, Maurice now works with community organizations on campaigns that fight wealth destruction in communities of color. Stacy and Maurice talk about ACRE’s work at the intersection of racial justice and Wall Street accountability. They also discuss:

             

            • How our current economic structure is built on extracting wealth from people of color.
            • How Wall Street preys on public budgets to further extract wealth from Black and brown folks and how cities can take back control of their finances and bank differently.
            • ACRE’s recent report on Amazon’s selective policing of the White supremacist propaganda available on their platform and its implications.
            • Maurice’s eye opening experience working with Black and brown families to save their homes during the foreclosure crisis.
            • Reasons to be hopeful about the future of the economy, including more public discourse about bold new ideas that can restructure the economy in big ways.
            •  

              Most everything that we identify as economic justice problems for Black and brown folks can find their roots in this wealth extraction model, and therefore if we’re going to change them, we really have to go after the entities and the forces and the messages and everything that drive that model forward.

              Related Resources

              1. Action Center on Race and the Economy
              2. Delivering Hate: How Amazon’s Platforms Are Used to Spread White Supremacy,
              3. Anti-Semitism, and Islamophobia, and How Amazon Can Stop It
              4. Bankers and Empire: How Wall Street Colonized the Carribean by Peter James Hudson
              5. Bankers and Bolsheviks: International Finance and the Russian Revolution by Hassan Malik
              6. Rebel Cities by David Harvey
              7. Transcript

                Stacy Mitchell:
                Hello everyone, and welcome to Building Local Power. I’m Stacey Mitchell of the Institute for Local Self-Reliance. Today on the show, we have Maurice BP-Weeks, who is the co-executive director of the Action Center on Race and the Economy, also known as ACRE. Maurice also works with community organizations and labor unions on campaigns that go on the offensive against Wall Street to beat back their destruction of communities of color. Maurice, it’s so nice to have you on the show.
                Maurice BP-Weeks:
                It’s a pleasure to be on. Thank you, Stacy.
                Stacy Mitchell:
                I want to start, ACRE is a research organization and a campaign hub. You work at the intersection of racial justice and Wall Street accountability. What is lurking at that intersection?
                Maurice BP-Weeks:
                Ooh, so much is lurking at that intersection. It might be helpful to just say a bit of how ACRE was started because I think that might answer the questions. I come to ACRE from years of doing community organizing, most notably during the foreclosure crisis in California, and my co-director comes from doing years of research at a labor union around that same period of time. I think we’ve both shared this analysis that if the way that organizations then and even now, I’ve talked about economic justice work, the way that race has been incorporated in it has been really through the frame of dispirit impact. I remember saying at press conferences and putting in materials like, “And the foreclosure crisis disparately impacts black and brown folks,” or something like that.

                While that is true, I mean I think all your listeners probably know that that’s obviously true, it also doesn’t really quite tell the full story of intentionality and actual function and how the economy is working. So, it’s more than just dispirit impact, but the very design and baked into how our economy works is based on wealth extraction. Those are the things that end up causing those dispirit impacts. They’re not just going into a mystery box and then popping out of the other end. So, I think most everything that we experience as what we would identify as economic justice problems for black and brown folks are, can find their roots in this wealth extraction model, and therefore if we’re going to change them, we really have to go after the entities and the forces and the messages and everything that drive that model forward. So, that’s why we started ACRE and that’s the very short answer of what lies at that intersection.

                Stacy Mitchell:
                Yeah. Your analysis really is about something that is structural. That there’s not this dispirit impact that’s an add-on, but is really at the center of structures of power.
                Maurice BP-Weeks:
                That’s right, yeah. It’s an analysis that’s both built on history, so you can go back in the history of this country and the way that wealth has been generated is through extraction, mostly from people of color. And current day, if you look at some of the wealthiest actors in the economy and trace the dollars that are flowing up to them, you can find where they came from in either labor that folks of color are doing and not being paid fair wages or being exploited in other ways, or other predatory schemes that are specifically targeting black and brown folks. Unfortunately, it’s been an analysis that’s rang true for the history of the country, and still it rings true now.
                Stacy Mitchell:
                So, it’s really baked into it at a deep level. What are some of the, I mean in addition to this notion of extraction, you talked about wages and the accumulation up the chain of wealth. You mentioned foreclosure. Certainly in the aftermath of the financial crisis, this systematic wiping out of the wealth of communities of color through that foreclosure crisis. What are some of the other ways that maybe people wouldn’t necessarily see about how Wall Street and the economic structure is really built on this extraction of value from people of color?
                Maurice BP-Weeks:
                I think a lot of folks, particularly folks of color, do see a number of the examples that you listed, like extraction through their housing or through their labor. It might get filtered into polls or public opinion in other ways, but really that’s what they’re expressing. I think probably one of the main ways that is less visible is how Wall Street preys on public budgets in order to extract money from people of color. A lot of the work that ACRE has done through our project, the Refund America project, has been focused on looking at city budgets, looking at predatory schemes that Wall Street has concocted with, inside of city budgets that funnel money out through either fines or fees or penalties or other ways.

                You can take an example like the city of Chicago, which had what are called, I won’t get too wonky, but what are called interest rates swaps, which basically right after the foreclosure crisis, Wall Street firms sold this deal to cities like Chicago promising to save them money over time, but after the economy crashed, those deals were actually really really bad. Wall Street knew that this was going to happen and then didn’t let the cities out of the deal. It ends up costing millions and millions of dollars. Of course, when cuts need to happen in our cities because of these deals, they happen in communities of color. So, we hear often that financial arrangements that the city is in are the reasons that we have to cut services to black and brown schools or not provide lighting or parks, or some common decencies to black and brown neighborhoods.

                I think that that’s one of the least visible immediately visible ways, but a huge way, that wealth extraction and Wall Street targeting of communities of color happens.

                Stacy Mitchell:
                It’s shocking to me that cities haven’t taken more control of their finances. I actually first knew about ACRE because I’ve known your co-executive director, Saqib Bhatti, for years around our mutual interest in public banks as one way out of this. You know, the idea that cities can create their own municipal banks and use that to finance the things that they need to finance and not be in these really just atrocious relationships with Wall Street, but it’s also just surprising that they don’t stand up to those relationships.

                Given what you’ve outlined about the essentially extractive nature of the economic model, how do you present a vision of what the solution looks like? What is the economic model that upends that and changes it into something else?

                Maurice BP-Weeks:
                Yeah, that’s a great question, and I think we can rely on the public through things like public banks for the solutions. The solution I tend towards more democracy and more public control than not as a way to get out of some of the more extractive models. I think one of the things that’s been really promising to see is listeners will probably remember the string of bad press weeks and months that Wells Fargo has recently had, both around their predatory sales goals that they had, and then their computer glitches. It seems like they’ve had a bad press week every week for the past six months or something like that. One of the things that this led to was lots of cities saying, “You know what, we’re no longer going to bank with Wells Fargo. We’re gonna look for other options and ways to pull out of Wells Fargo.”

                Many of the cities quickly found out that not only is it really really difficult for them to pull out of Wells Fargo, the other places that they could possibly reasonably go were banks like Bank of America and Citibank, all which have really similar, if not the exact same practices as Wells Fargo. This really from unexpected sources brought the conversation of public bank back up to the top as, “Hey if this industry is just systematically extracting wealth from people, maybe we just need a new model.” I find that kind of thing really promising and really an opening for us as we reach this crisis in these extractive models where we’ll probably see a lot of them failing. I hope that we start to tend towards looking for public options like that more than not.

                Stacy Mitchell:
                Yeah, I think that’s right. I mean, there’s so many places where that makes sense. We think a lot about ways in which we can use policy at the local and state and ultimately federal level to structure markets and to insist on guardrails around business to better align business decisions with our values as a society.
                Maurice BP-Weeks:
                Absolutely, yeah.
                Stacy Mitchell:
                Yeah. We’ve also gotten to know each other a little bit lately over Amazon. You can buy a lot of stuff on Amazon, like millions and millions of products. You can also buy Nazi and white supremacist propaganda for low prices and quick shipping. What is going on there? You guys did a big report last year that was really, I think, made a big splash. Talk a little bit about that.
                Maurice BP-Weeks:
                Yeah. Like you said, Amazon is the marketplace for nearly everything that we buy. That’s true both for millennials like myself, and for white supremacists and Nazis unfortunately. So, ACRE, along with our partners at the Partnership for Working Families, released a report last year that really went through and documented some of the absolutely terrible things that you can buy on Amazon’s website. This report’s about delivering hate, and folks can find it on our website, ACRECampaigns.org. Some of the items, I would give your listeners a trigger warning, some of the items are very disturbing. I mean, from Nazi swastikas or the Nazi insignia, so full Nazi uniforms to violent Confederate texts and literature to all sorts of awful, awful things. These also were pretty clearly against Amazon’s very own policies to not sell hate speech. We went through and documented a great deal of this stuff that we could pretty easily find on the website, and it caused Amazon to take some of it down immediately after the report was released.

                Unfortunately even today, you can still find some of the same things on the website. I think one of the things that it points to for … There’s many problems with Amazon’s role in our economy and our country. One of the things it really shows is that Amazon is really too big to deal with problems like this. They have a hard time really managing how to keep these things off of their website. It’s either that or they just really don’t want to. They really don’t want to develop the algorithms or hire the staffing to keep these things off our website. Really both of those are just unacceptable to us. It shouldn’t be listing up some of the worst hate speech in the country on the main platform for buying and selling things in the country.

                Stacy Mitchell:
                Yeah. Yeah. Having talked to a lot of companies that sell on a platform and sort of small businesses and individual sellers, it’s remarkable the degree to which Amazon is constantly surveilling them and how immediately it intervenes when they do something that it doesn’t like or that’s against its interests. For example, as a seller, you’re not allowed to have email communication directly with customers. You have to go through Amazon system. If you communicate certain kinds of things such as your own URL through that communication, Amazon immediately is in touch with you and they might suspend your account and so on.

                So you look at that level of kind of minute control over what’s happening on the platform, and then you look at other things, white supremacist propaganda, you look at the counterfeit stuff that’s on the platform, and they don’t seem to have the same ability to police it or they sort of selectively police it. So it’s hard for me not to conclude that they’ve just decided it’s in their interest either because it’s just cheaper to be lazy or that they actually profit off this stuff.

                Maurice BP-Weeks:
                Yeah. I think that’s part of the argument that we’re making in the report. It’s really hard to track exactly what the profits Amazon has made from this kind of speech mainly because we can’t really document how much of it is being sold. We just know it’s a good deal, a great lot of it, but we know that they are making some money. Like you said, there are other things that they’ve taken down from their website immediately under the same policies that we think that they should be taking down this hate speech on.

                So yeah, I think that it’s right to sort of call into question how Amazon is really enforcing these policies. I think it’s very important to do specifically for Amazon because they are such a large marketplace. They’re kind of the marketplace in the country, and they’re requesting so much from so many of our cities and states. You have to sort of be able to police hate speech if you’re going to be this large and request this much from the public in our view.

                Stacy Mitchell:
                Yeah. Yeah, that’s right. You’re listening to Maurice BP-Weeks, Co-Executive Director of The Action Center on Race and the Economy. We’ll be back after a short break, and we’re going to talk with Maurice more about how he got into the work that he does and maybe talk a little bit more about Amazon.
                Lisa Gonzalez:
                Hi, everyone. This is Lisa Gonzalez. I edit the Building Local Power podcast and I produce the show along with Hibba Meraay and Zach Freed. I’m just one of a team of people working to bring the show to you twice a month. If you enjoy this podcast, please consider making a donation to the Institute for Local Self-Reliance. As you may have noticed, we don’t have any ads on this show, but we do depend on your financial support. Donations not only underwrite this podcast, but they’re an important source of funding for our work and all of the technical assistance and help that we provide to communities across the country. So please take a moment to go to archive.ilsr.org/donate. That’s archive.ilsr.org/donate. If making a donation isn’t something you can do, please consider helping us in other ways. You can share this podcast with your friends, follow us on social media, and help make other people aware of our resources and the work that we do. Thanks so much for listening. Now, back to the show.
                Stacy Mitchell:
                Maurice, I wanted to ask you a little bit about how you got into this work. I know that you did some organizing work before and have been involved in various campaigns. Tell me about how you were drawn to doing social justice work.
                Maurice BP-Weeks:
                My mom is a schoolteacher and has been really involved in her union since I was a kid basically. Both of my parents really taught sort of the value not just of sort of leftist values, but really that you really do have to fight for equity and fight against injustices. That was sort of so much baked into my history that, even when I was choosing which college to go to, I remember really looking at the activist and organizing values of each school that I went to, what are some of the groups that are on campus that are doing organizing work. So I ended up at school. My alma mater probably wouldn’t like that I said that I probably spent way more time doing organizing work in college than I did doing actual schoolwork in college.
                Stacy Mitchell:
                Right. Where did you go to school?
                Maurice BP-Weeks:
                I went to Swarthmore College outside of Philadelphia. After that, I was lucky enough to have an opportunity to work with the Alliance of Californians for Community Empowerment in California, and this was right sort of at the tail end of the foreclosure crisis. So I was thrown into helping black and brown families organize to really save their home. While I was always interested in this work, I think that really deepened my analysis very quickly and brought some experiences right to the forefront for me in a way that they never had before.

                I remember, in the many instances where people really did lose their foreclosure fight, them having to move all of their stuff into the ACE office that day because they really had nowhere else to go and this all because of an unjust, totally, in some instances, illegal foreclosure that was happening. So that really deepened my really commitment and how hard I was fighting for things really and deepened my understanding of how terrible things can be because of how the economy is set up. So I cut my teeth doing real community organizing work and now run an organization that does campaigns and research.

                One thing that I certainly learned doing organizing is that those two elements are very important. You sort of can’t move forward in broad scale ways unless you have a plan to make some of your organizing work connect to other things, so like a real campaign plan, and the research that shows you really who the main targets that you should be fighting are. So yeah, that’s how I got to what I’m doing.

                Stacy Mitchell:
                That’s great. How are you feeling about where we are right now as you think about the way the economy is structured as an extractive force for black and brown communities, the way in which concentrated power is undermining democracy? I was sort of feeling like there’s a way in which I feel better about where we are because I feel like we’re actually talking about the real thing now in a way that I don’t feel like we were — and I mean we as like the sort of community of social justice organizations, civil society organizations — five or 10 years ago. I feel like we were much more stuck around sort of symptoms and incremental change and kind of “How do we fix this?” It feels like the conversation now is about the real thing. Do you feel like more hopeful or do you lie awake at night and feel like we’re really … This is all going to turn out very badly?
                Maurice BP-Weeks:
                Yeah. I feel like I’m … Yeah. There’s sort of a weird back-and-forth mix of the two of those is what I feel. I mean in some ways especially after the 2016 election and the couple of years that have followed, seeing economic justice fights that we had won being peeled away and just not only economic justice fights that we’ve won being peeled away but really the right advancing in their economic policies and theory pretty rapidly and just knowing what that is going to mean for black and brown folks is really troubling to me. That certainly keeps me up at night knowing that things like the CFPB are being gutted and a tax bill that’s just going to funnel more and more money up and things like that are really troubling to me.

                Then at the same time, I mean we are right now having a nationwide debate on whether being a billionaire is a moral thing at all which that’s actual an important conversation to have. That money has come from other folks in this country and it is being concentrated in a way that I and thousands, millions of other people think is unjust. That’s an important conversation to have. There are more and more public figures that are sort of picking up that platform of “We need to really restructure the economy in bigger and bolder ways.” One of my favorite new Congress members, Alexandra Ocasio-Cortez, comes to mind with really proposing huge, big, bold ideas in her freshman term which is incredible. Even candidates that have been around for a while longer and may not have been as critiquing the economy as radically as someone like AOC, we’re seeing some of the messages of critique even seep into their language.

                Stacy Mitchell:
                Mm-hmm (affirmative).
                Maurice BP-Weeks:
                So you see these Democratic Party folks who might have been to the center left before saying things like, “Medicare for all,” or, “We need to make sure pharma’s not out of control,” or all these other things they’re talking about really reeling in the nature of the economy and that’s really hopeful to me. That means that we’re, in some ways, we’re heading in the right direction. So yeah, it’s a mix. Some days I feel really good and really inspired and other days I feel like we’re screwed. We need to do a lot more faster, yeah.
                Stacy Mitchell:
                Yeah, I know. I feel the same way and of course the climate kind of hanging over everything.
                Maurice BP-Weeks:
                Right.
                Stacy Mitchell:
                You know, it’s interesting. I too feel it’s like AOC and the big proposals and the way that people are like, “No, let’s put big things on the table. Let’s really talk about it and in big structural ways.” What’s been fascinating to me to watch, especially the billionaires thing, how the establishment, how the powers that be, have reacted, the degree to which they’re affronted by this and the way in which politicians and others are sort of discovering that people across the political spectrum want to tax billionaires at a huge rate and think this idea of Medicaid for all sounds like a great idea. There’s really a lot of popular support for those ideas.
                Maurice BP-Weeks:
                Right.
                Stacy Mitchell:
                And how it’s sort of interesting to watch people squirm at Howard Schultz, is that his name, from Starbucks wanting us to refer to the wealthy as people of wealth.
                Maurice BP-Weeks:
                Don’t call him a billionaire, yeah.
                Stacy Mitchell:
                Right. He’s a person of wealth.
                Maurice BP-Weeks:
                Right.
                Stacy Mitchell:
                Yeah.
                Maurice BP-Weeks:
                Right. That has been really interesting and it’s sort of indicative of a little bit of a crisis that they are facing too. I mean, I think this is the part of the American Dream, it’s like one day I will be wealthy and I will be a billionaire and that’s kind of been sort of baked into what most Americans think, a good deal of Americans think and believe. So I think it’s probably really disconcerting to see what shifting for people who are of wealth, billionaires like Howard Schultz and other millionaires and people who are power brokers to see the importance of the American Dream fading away and the importance of everyone really being treated fairly and having everything that they need to survive rising up, probably is really disconcerting. I totally understand why he’s nervous about it.
                Stacy Mitchell:
                Yeah. I’m surprised that they don’t seem to have any intention of getting out in front of it in any way. I mean, there’s a sort of nervousness but they also seem like Bezos, they seem kind of oblivious to the consequences that this is untenable and it’s gonna come apart in some way. It’s either gonna happen through people organizing and restructuring the system and recovering democracy and creating our vision of an equitable society or it’s gonna hit the rocks in a really nasty way.
                Maurice BP-Weeks:
                Yeah, I imagine that once you get to that level of wealth like a Jeff Bezos there probably aren’t a lot of people around him that are critiquing him very often.
                Stacy Mitchell:
                Mm-hmm (affirmative).
                Maurice BP-Weeks:
                In some ways, I bet it’s a relatively politically lonely place and I mean that in the most negative way possible for them.
                Stacy Mitchell:
                Right.
                Maurice BP-Weeks:
                There’s only people saying that everything that he’s doing and thinking is correct and right and his obliviousness probably comes from the fact that he’s not really paying attention to what other folks are saying that much. And yeah, that’s not gonna work for very long for him I don’t think.
                Stacy Mitchell:
                Yeah, it’s true.
                Maurice BP-Weeks:
                Yeah.
                Stacy Mitchell:
                Well, we often end this show by asking for a reading or watching or listening recommendation or two or three so what would you recommend for listeners?
                Maurice BP-Weeks:
                Sure, yeah, so my stash actually as you may imagine for a staff of researchers, we’re a staff of nerds, we do a lot of reading and listening to things relating to the economy, we have a select channel that’s dedicated to it. So I will highlight some that I recently dropped onto the select channel that I think are really interesting. I’m doing a lot of reading on sort of historical roots of some economic financialization practices. So one is a book Bankers and Empire. The short review is that it’s about Wall Street practicing some of their current practices on the Caribbean in the late 1800s and early 1900s by Professor Peter James Hudson. I just thought it was really, really good and I had no idea about any of it.
                Stacy Mitchell:
                Just to give us some examples of those kinds of practices or that sort of parallels to what you see now?
                Maurice BP-Weeks:
                Yes. Some of the sort of core banking fees and trade regulations and other stuff that really we think of as the core practices of banks before they were sort of tried and practiced here in the U.S. There were things that banks did in the Caribbean. I mean, it’s all based on sort of debt, which is ACRE’s main sort of focus often. I don’t want to blow some of the examples because they’re really, really good.
                Stacy Mitchell:
                Uh-huh (affirmative).
                Maurice BP-Weeks:
                And really I want people to have their minds’ blown.
                Stacy Mitchell:
                That’s great. So that’s Banking and Empire.
                Maurice BP-Weeks:
                Yeah, Bankers and Empire, yeah by Peter James Hudson. And then the other book that I’ll recommend is another book called Bankers and Bolsheviks. So it’s about international finance during the Russian Revolution. It’s a part of the world that I don’t really good knowledge about, how finance worked during that period of time. I just started reading it. People can read along with me and the author is Hassan Malik. Other people on our staff are reading Rebel Cities by David Harvey and Crashed, which is about the 10 years after the economy and lots of other stuff. I wish I could add all of your listeners to our slack channel because there’s a lot of stuff in there.
                Stacy Mitchell:
                Yeah, yeah, maybe we should start a thread on Twitter or something that people could contribute to and that’d be fun. Yeah.
                Maurice BP-Weeks:
                Yeah.
                Stacy Mitchell:
                So I also want to ask you about sneakers because every time I see you, you have fantastic sneakers on and I guess from the perspective of someone who’s always thought of running shoes as a mundane functional item that you wear to the gym. Where would one begin if you’re kind of interesting in exploring the fashions of running shoes.
                Maurice BP-Weeks:
                So yes, so for the rest of the listeners, I have a ridiculous amount of sneakers. It’s kind of like my vice. I don’t really smoke cigarettes or anything like that so this is how I spend my vice money. Yeah, I would start with just buying some really fun colored sneakers because I think that’s actually the thing that is the gateway drug. I was once like you Stacy where I just only bought sort of sneakers for the gym and they were usually just black or gray and I think that all changed when I got a really nice shiny pair of very colorful sneakers that every one when commented on when they saw it. I feel like that’s the gateway drug for sneaker purchases.
                Stacy Mitchell:
                That’s great. Do you wear all of your sneakers, like in a rotation?
                Maurice BP-Weeks:
                No, no. I even have some that I’ve never worn before and probably won’t.
                Stacy Mitchell:
                Wow.
                Maurice BP-Weeks:
                I have a lot. I have way too many I know and I keep telling myself I’m gonna stop buying them and then I keep seeing cool ones and keep buying them, so.
                Stacy Mitchell:
                Nice. Well, maybe next time you see me I will have crossed the threshold.
                Maurice BP-Weeks:
                I hope so. I hope so, yeah.
                Stacy Mitchell:
                Thanks so much for taking the time out today. It was great to talk with you.
                Maurice BP-Weeks:
                It’s my pleasure. Thank you so much.
                Stacy Mitchell:
                Thank you for tuning into this episode of Building Local Power. You can find links to what we discussed today by going to our website, archive.ilsr.org and clicking on the show page for this episode. That’s archive.ilsr.org. While you’re there you can sign up for one of our newsletters and connect with us on Facebook and Twitter. If you like this podcast, please consider sharing it with your friends and leaving us a rating on iTunes or wherever you get your podcasts. This show is edited by Lisa Gonzalez and produced by Lisa along with Hibba Meraay and Zach Freed. Our theme music is Funk Interlude by Dysfunction Al. For the Institute for Local Self Reliance, I’m Stacy Mitchell. I hope you join us again in two weeks for the next episode of Building Local Power.

                 

                Like this episode? Please help us reach a wider audience by rating Building Local Power on iTunes or wherever you find your podcasts. And please become a subscriber! If you missed our previous episodes make sure to bookmark our Building Local Power Podcast Homepage.

                If you have show ideas or comments, please email us at [email protected]. Also, join the conversation by talking about #BuildingLocalPower on Twitter and Facebook!

                 

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                Photo Credit: Bob Simpson via Flickr

                Audio Credit: Funk Interlude by Dysfunction_AL Ft: Fourstones – Scomber (Bonus Track). Copyright 2016 Licensed under a Creative Commons Attribution Noncommercial (3.0) license.

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                32 min
              8. People Love Local Food. But Local Farmers are Disappearing. What’s Going On?

                Host Stacy Mitchell speaks with Leah Douglas, a staff writer and associate editor at the Food and Environment Reporting Network. As a reporter, Leah focuses on corporate power and political economy in the food sector. Her work sheds light on alarming consolidation in the food industry and its implications for farmers and consumers.

                Leah Douglas, Journalist

                Although grocery stores offer an illusion of choice with many different brands lining shelves, most brands are owned by just a handful of companies. Leah and Stacy unpack how consolidation in the food industry is bad for both consumers and farmers. They explore this problem by examining the poultry industry, where vertical integration of the supply chain has rendered chicken farmers dependent on the whim of their corporate buyers, forcing farmers out of business.

                Stacy and Leah also discuss the dairy sector. Dairy farms have long been the backbone of many rural towns across the nation. Leah explains why the number of dairy farms in America has dwindled from 600,000 to only 40,000 today.

                Stacy and Leah discuss how a major change in U.S. farm policy in the 1970s led to the consolidation we see today and the growing debate about whether we should reverse course and return to supply management, a policy approach that’s more conducive to independent farming. They also explore some encouraging examples of communities fighting back against giant corporate actors including the success of a small town in Missouri, which blocked a large scale livestock farm from coming to their community.

                Tune in to hear how advocates, local communities, and states are taking on agriculture monopolies!

                Anything you can point to in the food system has really been rolled up to the point where just a few companies are controlling 50, 60 or as much as 80 percent or more of the market.

                Related Resources

                1. Factory Farms No Longer Have to Report Their Air Emissions. That’s Dangerous for Their Neighbors
                2. A Democrat Hopes to Tip the Vote in Pennsylvania’s Cow Country
                3. Farmers Are Struggling to Make Ends Meet. This Controversial Policy Could Help
                4. Federal Appeals Court Strikes Down Idaho’s Ag-gag law
                5. How Rural America Got Milked
                6. African Americans Have Lost Untold Acres of Land Over the Last Century
                7. Psst! The Farm Bill Includes a Rare Provision That Could Help Black Farmers
                8. Farmers increasingly look to supply management to steady U.S. agriculture
                9. ABI’s Venture Capital Fund Quietly Expanding the Mega-Brewer’s Reach
                10. Weighing In: Obesity, Food Justice, and the Limits of Capitalism by Julie Guthman
                11. Freedom Farmers: Agricultural Resistance and the Black Freedom Movement by Monica M. White
                12. Right Proper Brewing Company
                13. DC Brau
                14. Running for Congress on an Anti-Monopoly Platform (Episode 53)
                15. Supporting Family Farming in the Age of Monopoly with Joe Maxwell (Episode 33)
                16. This Ag Economist Preached Bigger is Better. Now He Says the Evidence Favors Small Farms. (Episode 32)
                17. Transcript

                  Stacy Mitchell:
                  Hello and welcome to building local power. I’m Stacy Mitchell of the institute for local self reliance. Today on the show we have Leah Douglas, Leah is a reporter who covers food and agriculture. Her main focus is corporate power, consolidation and political economy in the food sector. She’s a staff writer and associate editor at the food and environment reporting network. And you can find her work online at theFERN.org. She’s also a regular contributor to mother Jones. And before that, she created the website food and power, which is a project of the open markets institute. Leah, so nice to have you on the show.
                  Leah Douglas:
                  Thank you so much for having me.
                  Stacy Mitchell:
                  I feel like if we had done this right, we would be recording this after work over some craft beer.
                  Leah Douglas:
                  That would be great. Yeah I would come up to visit in Maine and we could go to one of the many local breweries.
                  Stacy Mitchell:
                  Yeah it would be nice. Except these days what’s kind of challenging is that you go to reach for a craft beer only to find that maybe it’s not a craft beer anymore because ABB bev, Anheuser-Busch seems to be buying up all sorts of beers. They bought Goose Island out of Chicago. They bought another one out of Virginia, Devil’s Backbone. And now there’s this other thing called the craft brew alliance that’s going around and buying up craft beers. What’s going on?
                  Leah Douglas:
                  One of my party tricks that no one else enjoys but me is I can always tell people whether the beer they’re drinking is actually a craft beer or not. And a lot of men with beards get upset when I tell them that their beer is actually owned by ABI. Yeah, we’ve seen sort of enormous consolidation in the beer industry, particularly in the past couple of years. Although it’s been going on for a while. I think the stats now is that Anheuser-Busch controls one in four beers sold across the world.
                  Stacy Mitchell:
                  Wow.
                  Leah Douglas:
                  And they of course bought SABMiller, which was the other sort of mega brewer, global mega brewer for $100 billion in 2016. And so ABI has really been marching forward with acquisitions in the craft sector. I think they’ve bought over a dozen really sort of prominent craft brewers just in the past couple years alone.
                  Stacy Mitchell:
                  Wow, wow. This really feels like it in a way encapsulates something that’s going on in the food system, which is as an eater or as a consumer, you walk into the grocery store and there just seems to be this huge amount of choice. All kinds of different milk brands and cheeses and all these different seemingly different beers lining the supermarket shelves. And yet you read the newspaper and you see farmers going out of business in incredible numbers. And you hear these figures about consolidation in the food sector. How does that all fit together? How can those things be true at the same time?
                  Leah Douglas:
                  It’s definitely as a consumer sort of hard to decode if your main interaction with food is as with most people, just sort of going to the store and shopping. It would seem as though we’re sort of living in a golden era for farmers, for food companies, for even small manufacturers. But the reality is that the vast majority of what we’re seeing on the shelves is owned by just a few companies in each sector. And those few companies are increasingly catching on that consumers are moving towards fresher products, want to know where their food is coming from. And so many of the brands that we see that we might read as being healthy or locally produced, made by a small manufacturer are in fact off shoots and brands that are owned by some of the biggest food manufacturers in the world such as Kraft or General Mills.
                  Stacy Mitchell:
                  So when you’re at a party telling people what they’re really drinking for beer, what if you were to talk to somebody, what are some of the more sort of scandalous examples or more concerning examples of what’s going on in the food sector right now?
                  Leah Douglas:
                  Sure. So we’ve seen pretty much any sector, anything you can point to in the food system has really been rolled up to the point where just a few companies are controlling 50, 60 as much as 80 or more percent of the market. And one of the most often pointed to examples is the meat industry where the top four processors depending on which sector control anywhere from 50 to over 80 percent of the market. And those are just a few companies that are operating in each of those sectors. So in reality, companies like JBS, a Brazilian meat packer are the largest beef company in the world. Or Smithfield’s, which is now owned by WH group, a Chinese company that’s the largest pork producer in the world. Those companies have presence in multiple meat sectors.

                  And so the reality is that as few as two or three companies control just an enormous percentage of the meat that we’re eating.

                  Stacy Mitchell:
                  So what does that mean to take chicken for example. How does that actually play out for people who grow chickens?
                  Leah Douglas:
                  Sure. So this is something that yeah, I think it’s important to explain sort of the whole impact of this consolidation on the supply chain because on it’s face it’s hard to understand why this would be an issue per se. And so I think it’s important for consumers to sort of get a sense for what consolidation actually means is happening to everyone that’s in the supply chain. Poultry is a particularly interesting example because the poultry industry is structured mostly on contract production. And by mostly I mean overwhelmingly over 95% contract production. Which means that farmers are contracted to the poultry company. And the poultry company owns all of the inputs and the chickens that the farmers are growing. So the farmer’s role has basically become to sort of babysit the chickens for the six weeks that they’re being grown in the chicken house.

                  And then the company, the same company owns the distribution that comes and picks up the chickens, brings it to their company owned slaughterhouse and controls their own packaging. And often even transportation to the retail store. So that consolidation is not just that they control 50% of any one of those operations. But it’s the entire supply chain has become vertically integrated. And the role of the farmer has become diminished and along with that, the power of the farmer has also become diminished where farmers are now in most of these sectors price takers rather than price makers. And are really subject to the whims of their corporate buyers.

                  Stacy Mitchell:
                  It doesn’t even really seem like in that situation that you describe with chicken farmers. And I read some stats about how many chicken farmers are living in poverty. It doesn’t sound like they’re independent farmers at all. It’s more like they’re employees, but maybe even without the protection of employment with these companies. If essentially you’re being told what to grow and getting your chickens from this big company and they’re setting all of the terms and parameters for what you do, that’s not really like being an independent operator. And it’s not a market. It’s some sort of surf kind of relationship.
                  Leah Douglas:
                  Yes, absolutely. And it’s so important to identify that farmers in many of these sectors in fact most, are indeed losing money and many cases living in poverty. Their costs of production are way below, way above, excuse me, the money that they’re taking in. In the case of poultry it’s quite interesting because actually federal regulators have even started to identify that poultry farmers don’t really look like independent businesses. There was actually a report last year from the office of the inspector general of the small business association that was looking at the SBA’s loan program for poultry farmers. And identified that poultry farmers are so under the control of their corporate processors that the SBA was saying why are we lending to “independent farmers” when in fact there’s such a captured relationship there that it’s hard to justify why this is independent.

                  And so that’s getting some attention and momentum on capital hill and certainly shores up what a lot of advocates and farmers have been saying for a long time, which is that the farmers are controlled so much by the corporate processors and sort of the end buyer that they don’t have the authority and agency that we would associate with an independent business person.

                  Stacy Mitchell:
                  That’s interesting about the SBA because we’ve seen something similar with franchises. So there are franchise operators who will get small business administration back to loan similar to the poultry growers. But when you look at the terms of their contract with the franchise company, essentially the business is being run by the franchise company. The franchise company, it might be 7/11 for example, or Subway. They’re taking the lion’s share of the profit and the benefit of that business. So there’s a real question about whether there should be taxpayer loan guarantees going to those firms when it’s really the big guys that benefit the most. It sounds like it’s a very similar thing in poultry. Is there real movement to actually get to change that through something that congress might do? Or is the SBA maybe even looking at just closing that up?
                  Leah Douglas:
                  It sort of remains to be seen. Just this week there was some momentum, there were two senators who I believe it was Senator Jon Tester and Senator Chuck Grassley who signed a letter saying that they agreed with the recommendations that SBA, that this report from the office of the inspector general, excuse me, put forward about sort of SBA refining its loan giving practices to account for the fact that basically related to what you were saying that taxpayer dollars shouldn’t be going towards guaranteed loans that are essentially going towards Tyson foods.

                  That they should reevaluate whether the loans are actually serving the farmer or if they’re serving the corporation. So there’s been a little bit of movement on it. We’ll have to see whether the SBA does move ahead with shifting its loan giving practices.

                  Stacy Mitchell:
                  Another area in addition to chicken where there are just really a lot of disturbing headlines about what’s happening with farmers right now is the dairy sector. And that’s at least here in New England is a big deal. And we just have been seeing farmers go under left and right. And I know dairy is complicated in terms of how it works, but can you tell us a little bit about what’s going on?
                  Leah Douglas:
                  Sure. So the dairy industry has been experiencing a price crisis for several years where farmers are now looking at prices so low that as you said, farms are really going out of business at an extremely alarming rate. I was just looking back over a story I reported last year, a little over a year ago about dairy cooperatives. And in that story I cited that the new low for dairy farms was hit in 2016, 2017 was 58,000 dairy farms in the country whereas we once had over 600,000 dairy farmers in the country.
                  Stacy Mitchell:
                  Wow.
                  Leah Douglas:
                  And actually as of today that stat is now down to about 40,000. So that’s even just in the last year and a half, that’s another 15 up to 20,000 farms that have gone out of business.
                  Stacy Mitchell:
                  Wow.
                  Leah Douglas:
                  It’s really staggering. And those are small businesses that are sort of the skeleton of a lot of rural towns in places that have always had sort of a relatively stable agriculture economy. Dairy farms have always been in every state and have always sort of been around to sort of keep rural communities going. And so I think it’s particularly destabilizing that dairy farms are the ones going out of business most rapidly. Now, I think that’s why part of the reason why it’s been talked about a lot because it really has a strong impact on the community. So there’s a number of reasons, but I would say that corporate consolidation is at the root of some of the problems. The dairy industry, like every other industry in the food sector has become enormously consolidated. And in particular dairy has an interesting structure because 80% of milk in the country is sold through a dairy cooperative.

                  And cooperatives were originally conceptualized in the sector as a means for farmers to have a bargaining power against powerful middle men. But over time the cooperatives themselves have become so powerful that now we see more like a relationship between the cooperative and the processor than the cooperative and the farmer. And so that has become a very difficult thing for many farmers to navigate. And particularly in the northeast, there is often issues trying to switch between different cooperatives. Farmers will find that other cooperatives aren’t taking on new farmers or that their cooperative has an unspoken agreement with the competitor that they won’t sort of poach each other’s farmers.

                  And so if farmers are struggling to make ends meet with the prices they have, basically their only option is to tough it out or to sell their cows. And that’s why we’re seeing such a dramatic drop in the number of farms.

                  Stacy Mitchell:
                  It’s astonishing that there isn’t the political will to deal with that. As you said, given how much dairy farms are the backbone of rural regions of many different states. Now I guess part of it, there seems to be this sense, there’s this idea out there that maybe small farms are inefficient. They’re just sort of naturally going to go away.

                  I know that we’ve seen in California and Arizona these huge dairy farms with thousands and thousands of cows. Is that something that, if we can get cheaper milk through these big farms, isn’t that something that we should be in favor of even if we feel nostalgic about the lost dairy farm?

                  Leah Douglas:
                  Yeah, I think that’s a great question to discuss, because I think a lot of people feel that way. And not necessarily from a place of malice, just from a place of not necessarily understanding the context and history. One of the things I really try to drive forward with my work, my reporting, is to show that nothing that’s happened in the past 50 years, or certainly longer than that, is the result of a “natural process,” quote, unquote. It’s all a series of decisions that are made by powerful decision-makers. And those decisions aren’t inherently good or bad, but it’s important to analyze those decisions as they come along and not see … Certainly the collapse of certain industries in rural America is the natural process of capitalism or natural process of the country’s evolution, which is something that I think a lot of people believe. So particularly in the case of dairy, I think it’s important to identify that we have had, in the past, completely different ways of regulating our dairy industry that worked for decades. And this is something that a lot of farmers have been pointing to in the wake of the current dairy crisis is particularly a set of policies known as supply management which we used to sort of build our entire agricultural economy around supply management in the first half of the 20th century, which basically involves a combination of a floor price for commodities that helps farmers keep their prices stable, a commodity reserve that helps manage how much of a supply of a certain commodity is in the market, and then conservation programs that can take agricultural land out of production if the supply gets out of wack.

                  And I think that that’s a set of policies that, now, is seen as antithetical to capitalism, antithetical to American values, but we forget that that was our sort of guiding agricultural philosophy for a long time. And it was only the introduction of the idea of quote “free market” agricultural economy that overturns the plan management and moved us more towards industrial production and more towards the types of farming that we see today, such as you mentioned farms in California that have hundreds of thousands of cows for dairy production. And so I think that it’s important to recognize that there was a decision to make that transition that was federal policy-makers decided that this was the way we were gonna go for a variety of reasons and incentives, and that there are other models, if we look to other countries. For instance, Canada has always had certain types of supply management in their dairy economy. And if we also just look back to our own history not so long ago.

                  Stacy Mitchell:
                  That’s great to hear about the growing conversation around supply management, and I wanna come back and dig into that a little bit more and also just generally talk about the Farm Bill and public policy around agriculture. But first, we’re gonna take a short break.

                  You’re listening to Leah Douglas, a staff writer and associate editor and the Food and Environmental Reporting Network. I’m Stacy Mitchell, with the Institute for Local Self-Reliance, we’ll be right back after a short break.

                  Hello everyone. Thanks again for listening to Building Local Power, I hope you’re enjoying today’s episode. I wanted to take just a short break today to let you know about a few of the other ways that you can get involved with the Institute for Local Self-Reliance. If you like this podcast, you might also really appreciate our newsletters, and we have several. The one that I’d recommend if you’re particularly interested in following issues of corporate concentration, a growing movement around addressing monopoly power, is our Hometown Advantage newsletter. It’s got our latest writing on corporate power, companies like Amazon and Wal-Mart, plus it’s got great stories and resources on how communities are effectively fighting back.

                  So you can sign up for the Hometown Advantage newsletter and all of our other newsletters by going to archive.ilsr.org, our homepage, and scrolling down to the bottom and clicking on the big, orange “newsletter” button. Thank you.

                  Alright, and we’re back with Leah Douglas, staff writer and editor at the Food and Environmental Reporting Network. So, just before the break, we were talking some about supply management, and I wanted to just dig in a little bit more to why that shift happened. As I understand it, in the early part of the 20th century, we used to have policies that, as you said, basically put a floor below which the prices that farmers were paid couldn’t drop. They had to get a minimum sort of price, and there was also a management on the overall supply so that the market wouldn’t become so flooded with milk, for example, that prices would crash and then farmers would be left not able to get the money they’d put in to producing milk back out of it.

                  My understanding, from looking at some of your reporting on this, is that that system seemed to work pretty well, that it was a pretty sustainable way to go for rural economies, pretty good for maintaining a good, affordable supply of food. Tell me a little bit about the moment when we abandoned that, and how that came about.

                  Leah Douglas:
                  The sort of point that often folks look at when we’re thinking about the shift of agriculture away from regionalism and towards a national and export-oriented economy was, in the 1970s, under a Secretary of Agriculture named Earl Butz, and he’s famously known for calling on farmers to plant quote, “fence row to fence row,” which would increase the country’s commodity harvest and enable us to better participate in the global commodity economy. That was a period of time when farmers were very strongly incentivized to shift their production away from maybe what we now call “specialty crops,” which are sort of basic range of fruits and vegetables, and towards a certain set of commodities that can be introduced into commodity exchanges in the national export market. So that might include corn, soy, cotton and other types of grains.

                  And so, as a result, in the decades shortly after that, there was a massive shift towards producing certain types of commodities very intensively in a practice that’s now called “mono-cropping,” which means planting the same crop over hundreds and hundreds of acres without much rotation, without much regenerative soil practice. And that was a period of time where we saw this major change taking place.

                  Stacy Mitchell:
                  That’s so interesting. I feel like there’s so many ways in which this country took a big wrong turn in the 1970s.
                  Leah Douglas:
                  Well, I don’t think it’s coincidence that it coincides with a lot of other ways that we were starting to think about, again, quote unquote “free markets,” and moving away from certain types of regulated markets and towards another approach that emphasized high levels of production and deregulation. I think all those policies went hand-in-hand.
                  Stacy Mitchell:
                  Mm-hmm (affirmative). Yeah, and really set up a situation where large corporations had the upper hand. From a set of policies that really structured markets to decentralized production to make sure small and mid-sized farms and companies had an opportunity to compete and to be viable, towards a system where, as you said, national … Oriented towards exports, oriented towards commodity crops, oriented towards companies that had the wherewithal to take advantage of this so-called free market that really wasn’t all that free. It was really more about letting them off the leash in terms of being able to do what they wanted to do.
                  Leah Douglas:
                  Yup.
                  Stacy Mitchell:
                  Yeah, I’ve certainly heard more people talking about supply management and seen more coverage of that as an idea, certainly in the dairy industry, with Canada as an example. People have been talking about supply management. Do you think that that’s got real legs? I mean, is it possible that we could make a wholesale shift in how we approach farm policy to go back to a system more like that?
                  Leah Douglas:
                  Yeah, it’s hard to say. I think that it sort of depends on a variety of elements, politically. I think that there’s definitely momentum around the idea of at least, if not supply management per se, then at least of shifting conversations around what our national farm economy looks like and who it’s serving. I think that there’s a lot more, just in the course of my reporting, I’ve seen a lot more conversation around farmers identifying, which they have identified for decades, but particularly being unified around a message that corporations and corporate actors are, by far, the entities best served by our current regulatory system. For farmers, for rural communities, for consumers, which is everyone, that there might be more investment in creating a system where corporations aren’t the entities being best served.

                  Though I will say, I think that these are still controversial ideas, and I think that there’s … I’ve heard from a number of farmers that the idea of particularly drawing land out of agricultural production in order to control supply is something that’s quite controversial because farmers feel very sensitive to wanting to work and the idea that certain land would not be worked in order to maintain a certain commodity level, is very unappealing to a lot of farmers. There’s certainly a good argument to be made there, too. So I think that there’s …What’s interesting, and I think unique, about this moment is just the amount of conversation and openness to new ideas and to pushing back on this sort of system that’s become so overwhelming and so the harms of consolidation are becoming so apparent that new partnerships are being made and new bridges being built between different types of producers who can all identify that this sort of era of corporate control is not serving them.

                  Stacy Mitchell:
                  Mm-hmm (affirmative). That’s good to hear. We passed another farm bill every few years that Congress passes a big farm bill. The most recent one passed in the fall. As I understand it, it was basically the same way that the farm bill has been for quite a long time now, which has large subsidies, particularly for the biggest farms, the biggest commodity-growers, and maybe a little bit of support around the edges for family farms, but not a whole lot. But there was one significant shift in this year’s farm bill, which I know relates to an issue that’s close to your heart, that you’ve been covering a lot, which has to do with black farmers, particularly in the South, who don’t have clear title to their land and have been locked out of USDA programs, have trouble getting loans. Tell us a little bit about that issue, and what the farm bill did to solve it.
                  Leah Douglas:
                  So, yes, I’ve done some reporting over the years on this issue of heir’s property, which is a type of property ownership that occurs when land has been inherited over the course of generations without a will that identifies a clear heir. What can happen, in low-income families in particular who may not have access to legal services consistently, is that over the course of generations the land maybe be owned by sort of a constellation of relatives rather than one clear heir.

                  This is an issue for low-income families of all races and across the country, but it’s been a particular issue for black farmers in the Southeast, where there’s a very high concentration of heir’s property-owners. And so there’s been decades of advocacy done on behalf of those farmers and by those farmers to change some of the laws and regulations in USDA, the Department of Agriculture, because if you don’t have a clear title to your land, then you’re not able to participate in most types of USDA programs, including getting loans through the Farm Service Agency, which is known as quote, “the lender of last resort,” for farmers who have trouble accessing capital through other means.

                  And because farming is such a loan-dependent industry, FSA loans are really essential tool that heir’s property-owners have been boxed out of. And so, this farm bill, in large part due to the work of the Congressional Black Caucus, which really took on this issue, includes some stipulations that USDA is going to provide some services to families that own heir’s property to help them figure out who might be a clear owner to the land, and help them simplify their titles, and then also to lower the bar for accessing a farm number, which is the piece of information you need to get into these USDA programs.

                  So this is the first time that this issue’s been taken up by the farm bill, and it’s quite exciting for many advocates who have been working on the issue for a long time.

                  Stacy Mitchell:
                  That’s really good to hear. Are there, much of farm policy is at the federal level, the farm bill, what the USDA does, are there other things that people should be thinking about in terms of what their communities can do? What their state can do? Are there ways that we as eaters as citizens can take action in our own communities to address these issues and to better support a more diversified farming system?
                  Leah Douglas:
                  Yes! Definitely! And that’s something that I really, it’s a big body of work for me, is looking at state and local regulations around agriculture production. Because in fact, there’s a lot of activity there and I think it’s often under reported. At least sort of in the national media, it’s hard to understand what’s going on at the state level to regulate these types of industries. But there’s a lot happening.

                  One area I think is really interesting is to look at certain laws that have been taken up by farm industry groups as sort of vehicles for deregulation even though on their face the laws are pitched as protections as farmers. So a couple examples of these laws would be Ag-gag laws which are laws that prevent documentation of farms, farming operations. And then some states it goes so far as to prevent even photo journalism or other types of public interest documentation of what’s happening at large scale farms.

                  Another bucket of laws that’s similar to this is right to farm laws which exists in every state. And are basically, were originally imagined as just protecting farmers from basic, sort of nuisance lawsuits. So if a neighbor didn’t like the smell of five pigs living next door they couldn’t sue the farm out of business. That bucket of laws has been taken up by the food industry and their perimeters have been greatly expanded through lobbying at the state level to encompass all types of restrictions on what farms can be sued for. So, and to be clear, when I’m saying farms, quote on quote, the visual is more like a contained animal feeding operation, a massive industrial scale farm, not a mom-and-pop operation.

                  Stacy Mitchell:
                  Yeah, so you’re talking about these places where they’ve got just huge numbers of animals in confined feeding, big lagoons of waste. That’s what you’re talking about. Those industrial scale. And essentially they’ve been able to, what you’re saying, is game state law so that people who live near them may wanna be documenting what they’re doing or inhibiting, putting some limits on what they’re doing, are being impeded by these right to farm laws.
                  Leah Douglas:
                  Yes, exactly. And there’s been some great momentum against, particularly Ag-gag laws and other types of state laws that state watchdog groups have been taking on to identify that this is happening and to push back on the use of these local regulations to sort of be a vehicle for deregulation of the industry. And I would say another place where there’s a lot of really exciting momentum is community fights against individual CAFO’s or other types of, particularly large scale, livestock farms. There seems like all the time a new community campaign in an agricultural state to fend off the introduction of a new mega livestock farm. And that often involves hyper local regulations and going to local town hall and board meetings to fight these types of introduction of this industry. And so there’s a lot of really exciting work happening at the very, very grassroots level to identify how state and local laws are being co-opted to pave the way for industrial production.
                  Stacy Mitchell:
                  Is there a story you can think of from, I dunno, in the last year or so, of a place that stood up to a CAFO, a confined animal feeding operation, if I’ve got that right? And won?
                  Leah Douglas:
                  Yes, actually! I reported a little bit on a community that is just outside the suburbs of Kansas City, Missouri. So kind of a peri-rural community that was facing expansion of an existing farm to go from a couple hundred head of cattle to several thousand head of cattle. And there was a lot of resistance to this from the local community. There was a nearby botanical gardens that folks were really concerned about. Tanking the tourist industry of this town or the local attractions. And they started a Facebook campaign and made lawn signs and T-shirts. They ended up defeating the CAFO. I think they’ve now been through two or three rounds of having to fend off the CAFO expansion at various types of state and local boards. But it’s been really interesting to watch because it’s just one example of something that actually is … There’s been several success stories along those lines from the past couple of years.

                  Unfortunately, in the case where those CAFO’s are driven by a corporate factor, what we’ve also seen is that if one community succeeds at fending off the introduction of a new CAFO the company can pick up and move to the next state over or the next community over where maybe the people there have less resources, maybe they just don’t have enough capacity to fight it off. And they can then plant the CAFO there. So that’s another way where it can be still important to think about the national context of these corporate entities. Because as long as they still have that national reach they’re still able to move their operations around and dodge some of these fights. But with that particular example of, Lone Jack is the name of the town in Missouri, is quite optimistic.

                  Stacy Mitchell:
                  Mm-hmm (affirmative). Yeah, I think that’s so true and something that we see at ILSR across our work is we’re certainly big advocates and provide a lot of resources for communities taking things into their own hands and ways that they can stand up and fight rule by corporations, and succeed in a lot of cases. But we also believe very much that we live in an environment in which it’s harder for communities to succeed because of all the federal policies because of the consolidation in the power that these monopolies have been allowed to amass. It can be an uphill fight and we have to deal with those deeper structures if we’re gonna hope to put communities really on an even playing field in terms of being able to set their own future.

                  Well that’s great. I have just a couple of last questions for you. I’m gonna ask you for some recommendations, both reading and drinking recommendations. But first, I was actually curious to know a little bit about how did you get into this? How did you become such a passionate advocate for food systems and so interested in reporting on it?

                  Leah Douglas:
                  Well, I would say my first sort of entrée was I was a foodie 1.0 when I was a young person, a younger person, and I was really into cooking and thinking about where food came from, just purely from a consumer perspective. And when I was studying my undergrad, which I studied agricultural production and sustainable agriculture, I was really, my eyes were really opened by mentors and other work that I did in the food system around how there was really a broader system of power and control in place that I had understood as purely a consumer. And so over time, through studying and reading about these issues and working in the food system, really became drawn to this area of work around corporate control which I think it also is extremely under examined in the food system. And one of my rants that I go on after enough craft beers is about how the food industry should be covered just like any other mega industry whether it’s technology or oil production. And it’s very under examined. So I think the combination of my foodie background and then mixed with an anti-authority streak drove me to continue years of railing on about corporate power.
                  Stacy Mitchell:
                  Nice. Well we often end this show by asking our guests if they have a reading or watching recommendation. And it can be related to these issues or it could be something completely not related.
                  Leah Douglas:
                  My go-to book that I really love and recommend often, and I’ve been thinking about recently, that really changed the trajectory of my thinking about food systems is Weighing In by a scholar named Julie Guthman. Not a popular book per se, kind of an academic book, but written quite accessibly about how capitalism as a system has shaped our conception of food and how we interact with the food we eat. So that’s definitely one I always come back to. And next on my reading list, I’m really excited to read the book Freedom Farmers by Dr. Monica White. Just came out that’s about the legacy of black farmers in the Civil Rights Movement which is a really essential history. So those are two, an old read, and a new read.
                  Stacy Mitchell:
                  Those are great recommendations and we will put links to both of those on the show page for this episode. That’s Weighing In by Julie Guthman and Freedom Farmers by Dr. Monica White. And finally, what do you like to drink for craft beers? You’re in D.C. right?
                  Leah Douglas:
                  I am, I am. And we’re lucky in D.C. There’s a very vibrant craft brewery ecosystem here.
                  Stacy Mitchell:
                  Yeah! So what should people drink when they visit D.C.?
                  Leah Douglas:
                  Well, D.C. Brau is the big, most favorite craft beer by many. And I’m also partial to Right Proper which is a local brewhouse that’s just a couple blocks from my house so that’s my local haunt.
                  Stacy Mitchell:
                  Yeah, hyper local.
                  Leah Douglas:
                  Hyper local. Yeah, exactly! Their brewery is just down the street, so I can walk there for my cravings.
                  Stacy Mitchell:
                  That sounds great! Leah, thanks so much for being on the show today! It’s been great to have you!
                  Leah Douglas:
                  Yeah! Thank you so much for having me Stacy, this is great.
                  Stacy Mitchell:
                  Thank you for tuning in to this episode of Building Local Power. You can find links to what we discussed today by going to our website, archive.ilsr.org and clicking on the show page for this episode. We’ll include links to some of our favorite pieces by Leah along with her book recommendations. That’s archive.ilsr.org. While you’re there you can sign up for one of our newsletters and connect with us on social media. If you like this podcast please consider sharing it with your friends and leaving us a rating wherever you get your podcasts. This show is produced by the inimitable Lisa Gonzales along with Zach Freed and Hibba Meraay. Our theme music is Funk Interlude by Disfunction Al. For the Institute for Local Self Reliance I’m Stacy Mitchell. I hope you tune in again in two weeks for the next episode of Building Local Power.

                   

                  Like this episode? Please help us reach a wider audience by rating Building Local Power on iTunes or wherever you find your podcasts. And please become a subscriber! If you missed our previous episodes make sure to bookmark our Building Local Power Podcast Homepage.

                  If you have show ideas or comments, please email us at [email protected]. Also, join the conversation by talking about #BuildingLocalPower on Twitter and Facebook!

                   

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                  Photo Credit: Doug Calloway via Flickr

                  Audio Credit: Funk Interlude by Dysfunction_AL Ft: Fourstones – Scomber (Bonus Track). Copyright 2016 Licensed under a Creative Commons Attribution Noncommercial (3.0) license.

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                  40 min
                18. How Minneapolis is Planning for a More Equitable Future

                  Jeremy Schroeder, Minneapolis City Council Member

                  Host John Farrell speaks with Minneapolis City Council Member Jeremy Schroeder. Jeremy and John discuss the city’s plans to combat climate change, increase affordable housing, and make sure Minneapolis is accessible to all residents.

                  They explore how Minneapolis is working together with their utility companies to transition to renewable energy equitably by 2030 through the Clean Energy Partnership. The partnership serves as an alternative to the city taking over the utilities and instead hopes to leverage policies such inclusive financing to make sure folks that haven’t had access to energy efficiency upgrades are able to finance them.

                  John and Jeremy also dive into Minneapolis’ 2040 plan, a comprehensive zoning plan developed by the city every 10 years. The latest rendition of the plan includes a controversial change allowing up to 3 units on a single property. Jeremy explains how this density change will enable more affordable housing to be built and help mitigate historic redlining that has divided communities and kept people of color out of certain neighborhoods.

                  As Minneapolis is planning for a 10% population increase in the coming decade, Jeremy explains the importance of intentionally centering equity in policy discussions.

                   

                  It really is a balance of how do we be a good place for people to invest in and really have people that are building buildings for 100 years. How do we have that and at the same time, make sure that we have our core goals of being a city for everybody and a city that’s going to be thinking about the next generation and our impact on the Earth?

                  Related Resources

                  1. Local Energy Rules Podcast
                  2. Minneapolis 2040: The City’s Comprehensive Plan
                  3. Food and the City by Dorothée Imbert
                  4. The Reactionary Mind by Corey Robin
                  5. Transcript

                    John Farrell:
                    Welcome to another episode of the Building Local Power podcast from the Institute for Local Self-Reliance. I’m John Farrell, ILSR co-director and this episode I’m talking with Jeremy Schroeder, City Council member from Minneapolis, Minnesota, about the ways cities can exercise their local power to confront climate change. We’ll also get a brief cameo from former ILSR staffer and now City Council Policy Aide, Karlee Weinmann. Jeremy, welcome to the program.
                    Jeremy Schroeder:
                    Hello, thanks for having me.
                    John Farrell:
                    Absolutely, and Karlee, welcome back.
                    Karlee Weinmann:
                    Thanks, John.
                    John Farrell:
                    Karlee says she’s just going to sit and watch this amazing conversation, but you never know. She may feel an urge to jump back in but at any rate, we have lots of stuff to talk about today. What I’m most excited to talk about is in general, the power of cities, so as the federal government has become less relevant, both with a major government shutdown that is continuing even as we have been planning this podcast episode and also an administration that’s failing to lead and many major economic issues from climate change to economic concentration. Cities have been stepping up.

                    In the energy sector, the challenges for cities overlap as in more than 30 states including Minnesota, the utility companies that provide electricity or gas service have monopolies that are given to them by the state. Cities don’t control the utilities or where their energy comes from and yet, Minneapolis is one of a hundred cities that have, for example, committed to get 100% of its electricity from renewable resources in a decade. Jeremy, I want to start off by just asking you what I hope is a relatively simple question which is why has Minneapolis made this commitment to 100% renewable electricity?

                    Jeremy Schroeder:
                    Simple answer is we have to. We get the same data the federal government does and when you look at that, we have to act now. If we are serious about stopping and reversing climate change, the time to act was a long time ago. Now, we have to take much more immediate action, much more tougher action. We would hope for the bodies of government that have the resources like the federal government, like the state government to be leading but that hasn’t happened, not just in Minnesota but across the nation.

                    You see cities step up with what they have and we’ve had to be pretty creative. We’ve had to really be scrappy about how we do that but it doesn’t supplement for what we would hope to see from the federal government and from our state government.

                    John Farrell:
                    When it comes to achieving renewable energy goals, so the powers of cities vary a lot. We’ve talked before on my energy podcast and on Building Local Power that there are two thousand cities across the country that actually own their own utility company. There’s a few hundred more that are part of, what are called, community choice programs which allows the city to choose their energy supplier. What power does Minneapolis have in order to achieve this 100% renewable electricity goal that is urgent?
                    Jeremy Schroeder:
                    That’s a great question. I mean, it certainly would be easier if we’d be able to have the choice that a lot of other cities have, but we do have an opportunity that other cities don’t. We have some leverage with our utility companies called the Clean Energy Partnership. I know you’ve talked about that before, but it’s something that we, as a city, ventured in with our utilities to really say, “These are clean energy goals. We want to meet those. We hope that could be a beneficial partnership for not just all the residents of Minneapolis but for utility companies that claim that they want to be at the same place that they want a clean renewable future too and we’re hoping that we can be kind of the test case that can make that possible.”
                    John Farrell:
                    I was wondering if you could give an example of a way in which this Clean Energy Partnership is trying to leverage both the power of the utility companies over providing the energy and the power of the city. Is there some policy that’s come about as part of this partnership? Are there interesting ways that they have been working together?
                    Jeremy Schroeder:
                    I think the jury’s still out on whether this is the best and most effective way to do that. I sit on the Clean Energy Partnership with two other city council members and we’ve been there a year, so when you ask about specific policy outcomes like that, I would be very skeptical about. I mean, we have plans. We have some policies that we’re hopeful of.

                    An example of one would be inclusive financing. It’s a policy that if we can word that everyone including the utilities is committed to working towards but again, that’s also in its infancy. If we’re able to have inclusive financing commonly called kind of a “pay as you save” model … I’m in the room with two experts, so if I pause a little, I’ve been waiting for you two to jump in but something like that is going to be able to let folks that don’t have access to energy efficiency, we call them “upgrades” but I mean, as time goes on, these are needed things for their household. They’re going to have access and if the utilities can help us leverage that as well as look out for their consumers, I think the Clean Energy Partnership would be a benefit.

                    John Farrell:
                    It was even before you took office just last year, but the Clean Energy Partnership really began about five years ago and I was intimately involved in it for people who want to hear more, you can go to our Local Energy Rules podcast. We’ve done a couple of things. I believe Karlee was the interviewer in one of those interviewing me about the work that took part in leading up to the partnership and it was kind of an alternative to the city actually going through on our utility takeover.

                    Of these two thousand cities that have municipally utilities, most of them were formed 100 years ago and were the first utility to occupy that space but a few of them are the result of cities actually taking over using their power of eminent domain to basically buy out the utility company and you already kind of alluded to this, there’s some promise out there for this thing to develop. It’s already been going on for five years and I’m curious if you or maybe if other city council members that have been around a little longer following this are feeling like you’re getting near the break up point or if you feel like you still want to keep following through and seeing what can come of it.

                    Jeremy Schroeder:
                    I think to start on answering that question, it’s really about thinking about the residents of Minneapolis and what’s going to be better for them. We have an outcome we want to get to and that can be interchangeable with different players and different ways of getting there. I think right now we are really trying to weigh how do we get there and the way that’s going to be most cost effective, most inclusive and quickest, how will we have that.

                    I think the promise of the Clean Energy Partnership is still there, but as you pointed out, it didn’t start with me. It started many years ago and so the clock is ticking. We are watching the utilities pretty closely and pushing them because I think when the Clean Energy Partnership was started, it had the backing of all Minneapolis residents and I think that’s the power that the city brings forward to talk in that partnership. Another part of it is the residents are holding us accountable. We need to make this city a sustainable city. We need to see outcomes and that’s not just on the city and its enterprise but on the utilities as well.

                    John Farrell:
                    I’m really curious. It’s funny what you say about this notion of timing, and I know I should have pressed the question but for some context for folks too, you’ve got Boulder, Colorado, which has the same electric utility, Xcel Energy although a different division from back in the days when utilities were largely confined to operating within particular states as opposed to these multi-state conglomerates, and they’ve been pretty much actively pursuing municipalization at takeover since about 2011. It’s something that I’ve covered in some of our writing and we’ve talked with folks from Boulder for some of our podcasts and they’re still not there yet.

                    In fact, I think they’re very close to issuing the final order for the takeover of the utility but all this time has been essentially just building up to, “Are we actually going to take over?” Meanwhile, the utility and the city haven’t really been able to work together very effectively. I think I share your optimism to some degree about this partnership being able to be a quicker way as you say but there is a lot of urgency, obviously, in terms of what we’re doing.

                    I’d be remiss if I didn’t address another major policy change that the city has recently adopted, so it’s not just an energy of course that cities are doing interesting things but across a whole range of stuff, so this is around the Minneapolis 2040 plan, or the new city comprehensive plan. I’m hoping you can start by just explaining for people like me who are not experts in things outside of the energy sector, what is a comprehensive plan? Then I have a few other things that we’d like to know about. What makes Minneapolis … Why is Minneapolis all of the sudden getting in the news for this comprehensive plan?

                    Jeremy Schroeder:
                    Sure. Well, let me start with a little background though. A comprehensive plan, Minneapolis is required to submit our basically land use … Kind of started as a land use plan to the Met Council, so all of the cities in the Met Council region must do a plan, so as Minneapolis was doing a plan, Saint Paul was doing a plan, Richfield was doing a plan and it happens every 10 years.

                    We’ve been doing it for quite some time now. This isn’t the first comprehensive plan and that kind of leads into some of the other questions but to go a little bit further of what it does is it really talks about kind of the high level of what kind of growth … Looking at our population projections, how much growth are we having? Where are you going to put new housing? Where are you going to allow for transportation? Where are you going to allow … Make sure if affordable, the housing is an issue for you, where would you put that, where would you put workforce housing?

                    All those questions are there and some of it, when you think about Met Council, they want to make sure you’re not putting your sewage treatment plant on the city line next to another municipality and vice versa. I think it’s how do you play all well together is kind of one part of it and why Minneapolis was getting in the news is we took that a step further and we took that pretty seriously on a couple different fronts.

                    One, zoning has been used historically as a way of redlining, as a way of dividing communities and a way of dividing the equitable growth of a city. We have a 2040 plan, it’s important to think about how we grow, how that wealth is distributed, how all the people that are contributing to this great city get their share of that and get some benefit. How can we do that?

                    One part was really making sure that there are more housing options throughout all the city. I mean, that’s something that we got, I think, a lot of local news. There’s a pushback as well as cheers for right now. You can go up to three units on a single lot that’s staying within the same setbacks to get a little bit more in the weeds.

                    John Farrell:
                    Let’s go on those weeds in a second but I just want to take a step back in terms of this comprehensive plan and understand … We have this metropolitan government here in the Twin Cities area. We have to do these plans to make sure that we’re kind of, as you said, growing with our neighbors. I thought the sewage plant is an excellent example, right?

                    Wouldn’t it be convenient for Minneapolis to stick it right on the border with Saint Paul and let them share in the unpleasantness, of course ignoring the fact the rivers are a border for a moment? We’re doing these plans every 10 years? Are they always forecasting out 20 years? Is that kind of the way it goes? It’s a 20 year plan every 10 years?

                    Jeremy Schroeder:
                    It is, but I think that’s some of the trick to it. I mean, between 2000 and 2010, we saw minimal, double digit, that’s it for population growth and we’re projecting 37 thousand that will be coming between now and 2040. The plans look completely different, so how do you put that all in there and then I think one thing that is not in the plan but is in the planning is that this is all dependent on the market. There’s no funding, there’s no immediate plans for the comprehensive plan. There’s no developers or industry we’ve been working with that went into the plan. What it really says is if you want to know what … You’re looking to purchasing property or you want to develop your own land, this is what would be possible.

                    One of the things I would have liked to see more in the 2040 plan is really seeing it as a visioning document of what do we want to be as a community. Seeing that the type of growth we’re projecting is disruptive no matter where it’s going to be in the city, so how do we address kind of the ratio inequities that we still live with as we look at homeowner and income disparities throughout the city, how when we look at which parts of the city have access to transportation and what type of housing is available on every area.

                    If we really are about equity and access for all, what does that look like? I think some of that came out in the plan but for myself, the city did hundreds of meetings to form this document. I, myself, have been at over a dozen of them and I think there’s a lot of discussion of what people didn’t want and I would have liked a little more discussion about what we did want.

                    John Farrell:
                    One of the things I find so interesting about this is you’re talking about the population growth, it sort of being disruptive. We’re adding something like 10% to the city’s population and yet, in the 1950s, Minneapolis had half a million people and another hundred thousand more than its got now and so in some ways, we’re sort of moving back, although obviously the makeup of that population would be very different. That was after the baby boom, it was before a lot of white flight to the suburbs.

                    I remember in my first South Minneapolis neighborhood, which I think was also in your ward if I’m not mistaken, but I remember a woman who lived across the street who raised three kids essentially in the basement where they curtained off different bedrooms and I have that in quotes. Obviously, the style and the expectations of families were different.

                    Let’s just dive right into that kind of big meaty thing in the comprehensive plan. Obviously, there’s a lot of pieces to it but the thing that got all the attention was this notion of what can you build on a particular piece of property, so could you explain a little bit about how that changed? It probably will start to explain for people when you mention lots of folks came out to say what they didn’t want that this was in the cross hairs.

                    Jeremy Schroeder:
                    Certainly. I had mentioned that three units could be on a property, so right now, you can build a single family home and that home could be quite large frankly and what the new comprehensive plan would allow three units, same built form, so you would be building what you could build today under the former zoning code for a single family house is just for three units. I think as you talked about, we’re talking about this huge growth like it’s something we haven’t had before and we’re talking about Minneapolis growing to what it used to be and so that really gets to the problem the city was looking at.

                    How do you encourage more people live in that same area? We have my own single family home where we live, we had a much bigger family living there and you see that throughout the city. In our area around, we have some bigger homes that could be easily broken up into duplexes. We actually have some rather small duplexes, World War One time that are already in the neighborhoods. It was really more about allowing more options than prohibiting anything. I think that got lost in the discussion too. It doesn’t prohibit single family homes.

                    If someone wants to build a single family home, that’s there, but what it also does, is expand what’s possible for seniors, for people on a fixed income, for new families, like being able to have those options that we don’t have.

                    One other thing I would add is between 2010 and 2016, Minneapolis had tremendous growth, so we are known for our affordability and for our housing options throughout the city that you had that choice. When we saw that growth, the affordable housing worked. People found it and people are there.

                    In our neck of the woods in South Minneapolis, I would say the affordable housing is working, but the issue is, we’re just out of it.

                    John Farrell:
                    Right. I find this such an interesting conversation because we’ve already had a lot of redevelopment, a lot of people interested in moving into urban areas. I see in our neighborhood, the area you represent, and where I live. We already see a lot of change happening.

                    We see people coming in. They decide that the 1,500 square foot home that was built in the ’40s or ’50s is too small for them, for their single family, and they build a 2,500 square foot home.

                    I think one of the things, as you said, that got lost in the mix in terms of the changes, the size of the structure isn’t really what was at issue because people can already build a giant home on the property as long as they respect the setback and the height limitations and whatnot, so we’re really just talking about subdividing what could go on the property. Right?

                    Jeremy Schroeder:
                    Mm-hmm (affirmative).
                    John Farrell:
                    We’re just talking about that piece. Then, again, you have this notion of, oh, well somehow something really big is changing and yet, like we’re talking about forecasting a population 20 years from now that’s still smaller than Minneapolis was 60 or 70 years ago.

                    They’ll be fewer people in the city and all we’re really saying is why don’t we subdivide our lots a little bit more so that we can allow them to live in different configurations than they did before. Does that pretty much capture what we’re talking about?

                    Jeremy Schroeder:
                    That’s part. I also want to stress that the 2040 plan like that is really the 10,000 foot high level what will be happening in the next couple of years is the zoning change that really sets what that’s going to look like in real life. As someone wants to build a single family home or build a duplex, it will be talking about the setbacks and other things.

                    People were really concerned about what could happen. I think that a lot of folks really felt that we were going to see lots being combined that we would see bigger homes. One of the issues, I would say, was that early on, people started talking about … The earlier proposal was for four units. They talked about it as a four-plex.

                    What that really brings to mind, even to myself, like you think about those apartment buildings that are out to the property lines that are not as thoughtful about permeable surfaces and neighbors and all of those things. That’s what the image really was of. I think that people were worried about losing their community and that’s serious.

                    I mean, I think that the plans very different then their fear, but I think that the city needs to address what they’re afraid and be able to talk to how we are able to do our best to make all these goals possible.

                    John Farrell:
                    I want to come back to what you alluded to a little bit earlier about, for example, redlining. Some of the racial inequities and also about this notion about, I think I’ve heard the phrase, like living in place, where people, as they age-
                    Jeremy Schroeder:
                    Aging in place.
                    John Farrell:
                    Aging in place. Thank you. Where people maybe want to be able to stay in the same area of their community even as they are maybe buying their first home as a couple, then they’re having children, then their children have moved out, but they still want to stay in their community.

                    It seems like this is going to address some of these different issues. I’ve now broadened my question way beyond what I wanted to, which is, maybe let’s just start with the issue about redlining and racial discrimination because for a lot of people, they look at this and say, “Oh, I don’t want my neighborhood to change.”

                    But there’s also a lot of people who live in Minneapolis for whom they have always been prohibited by policy in a lot of ways from being able to have the flexibility to live in different places, to be part of communities in different places. How does this help address some of those issues about for people of color, for example, being able to find affordable places across the city?

                    Jeremy Schroeder:
                    First, when you talk about it being prohibited by policy, I think that’s part of the misconception. I’ve just found as the city’s talked about redlining, it seems like people talk about it as it would be illegal for a person of color to be moving in these neighborhoods, and that’s not it. It was an economic impossibility.

                    Our history has shameful examples of when we had families of color move down in neighborhoods around us and just the horror of what they had endure just to be able to have the right that every person should to be able to live where they want and where their means allow. That just wasn’t possible.

                    Where the 2040, I wouldn’t say that we’ve corrected that, but I would say we’ve stopped the needle. We have been able to, with the plan, look at our frankly shameful history and say, “You’re no longer going to be able to tell where people of a certain wealth are.” It’s zoned by something that goes throughout the whole city and tries as best as it can, to be equitable about it.

                    So by providing more options throughout the city, we’re hoping that we’ll be able to see more development that will allow more affordable homes, more homes that would fit the character.

                    I mean, we haven’t really talked really about the energy efficiency and resiliency and what the plan would do for that, but it’s the mixed communities are going to be the most healthy, those that have diversity of folks on income and background that are going to be able to be resilient and be able to thrive as their own small community.

                    John Farrell:
                    I appreciate you correcting on this notion about policy prohibitions because of course, the redlining wasn’t something that the city didn’t write into its previous comprehensive plan or into its zoning that people of color live here and white folks live here.

                    It was obviously an interaction on the market where banks would say, “We’re not going to loan to people of color if they move into these areas.” It was also an economic pressure about, for example, the size of the lot and the size of the property, making it economically infeasible for folks who weren’t wealthy or to live in certain neighborhoods.

                    How might a neighborhood … How does this plan address that? So, if I’m in a neighborhood like I live in, where it is a lot of single family homes right now, and fairly large lots for an urban area, anyway, how might that change over time?

                    It’s going to change slowly because of course, most people aren’t going to change their property while they live there. It’s going to change when they sell. Previously, people would buy a small house and tear it down and build a bigger house.

                    So, that was the kind of change we saw in neighborhoods. What’s going to happen now that’s going to be different that helps to address that economic barrier that was there for folks of being able to, for example, and go to Hale Elementary School, where right now, it feels like you need to have $400,000 ready to buy a house to go to that school. We want to make sure that people have access of all means.

                    Jeremy Schroeder:
                    Yep. I would add you’d have to be pretty quick if you’re trying to get something in our neighborhood too.
                    John Farrell:
                    Yes.
                    Jeremy Schroeder:
                    I would say the comprehensive plan, the 2040 plan, is more of a framework. I think when you’re fighting against racial inequity as well as climate change, and affordable housing, it’s about intention. The density and moving more people is not necessarily on its face going to fix those problems, but what will change is being able to have something like an inclusionary zoning policy.

                    Something that I’ve been working on with the council president to make sure that when developers are developing, they are held accountable to having some affordable housing.

                    My goal is something that would be throughout the city and make sure that every neighborhood is approached equitably so that when people are looking at a home, regardless of their background, they will have some options available.

                    John Farrell:
                    So, we’re going to take a short break and when we come back, we’re going to dive into it a little bit more about the comprehensive plan in Minneapolis, but then also talk a little bit more about how the city has been able to stand up to some of the incumbent power holders in the different sectors that it’s dealing with, especially back to this question of energy.

                    Thank you so much for listening to this episode of Building Local Power with guest Jeremy Schroeder, City Council member, from Minneapolis, Minnesota. This is the part of the podcast where you usually hear something about a mattress company or a meal delivery service, but the Institute for Local Self Reliance is a national organization that supports local economies, so we don’t accept national advertising.

                    Instead, please consider making a donation to ILSR. Not only does your support underwrite this podcast, but it also helps us produce all of the resources, from reports, to podcasts, to interactive maps, we make available for free, on our website. Please take a minute and go to ILSR.org/donate. Any amount is welcome and sincerely appreciated. That’s ILSR.org/donate.

                    We also value your reviews on Stitcher, iTunes, or wherever you get your podcasts. Thank you so much. Now, back to our discussion of cities and climate with council member, Jeremy Schroeder.

                    So, we’re back and I wanted to talk a little bit, I mean, the comprehensive plan is such an interesting thing, but I want to talk a little bit about some of the news that I was reading about it. Because as a resident of Minneapolis, like you said, it was in the local news all over the place. The discussions were going on.

                    They were lawn signs going up saying either people are saying my house is going to be bulldozed. There are other signs saying, we’re all happy to have more neighbors, but then I started, after the policy passed, reading stories in national publications.

                    Seeing them linked to on Twitter or other social media, people were like, Minneapolis is really done something about affordable housing in a way that other communities haven’t. You’ve addressed this notion.

                    The issue is essentially that not everybody needs a single family home and in a lot of our neighborhoods, there hasn’t been accessibility to the kind of housing that people need, or that we’ve essentially used it up in the growth that we’ve already seen.

                    So, I guess what I’m curious about is how much have we actually accomplished. We’ve got this comprehensive plan. How much does that reflect if I’m a developer?

                    Let’s just say, I’m a homeowner and I decide, you know what? I’m going to buy a house somewhere else. Like many people, I might want to rent out my current property but instead of just renting out this single family home I’ve got, I’d like to follow this new policy, build a three unit building there that could be some affordable housing, contribute to this goal of both addressing climate change by a little more density.

                    I’m addressing affordable housing. Can I just go do that now? Is it that easy? Can I build some more properties and go find a different house?

                    Jeremy Schroeder:
                    Well, I wouldn’t say it’s that, that easy. I think I want to stress that nothing changed in the process. The comprehensive plan is one thing that the city looks at when a development is proposed. So any development is still going to be going through the city.

                    It’ll look at the city planners. Depending on the height and what change would be at that site. It may need to go through the planning commission and maybe city council itself.

                    All that stays the same. As things are … I talked a little bit about we have the comprehensive plan, but the next part is the zoning change. That’s going to be the part that you’ll be able to see what else is possible on the property.

                    The comprehensive plan is really the beginning. As I talk to my constituents and others concerned about it, just saying, you’re right to push if you have concerns, because this really sets everything else up. The comprehensive plan has these high level goals and the zoning really flows from that.

                    So while we still have to get into the specifics, the specifics are written from the comprehensive plan.

                    John Farrell:
                    Sure. That’s actually an interesting … It was really interesting to hear you just say, I could end up in the front of the planning commission. I could end up back at city council. I’m assuming that you guys didn’t write this plan thinking, “Gosh, we want a chance to review every development that’s proposed in the city of Minneapolis.”

                    The goal of the zoning then that’s going to follow this is going to have to guide. The idea is going to be to establish some guidelines that you don’t have a lot of developments coming before the city council. Right?

                    You’re going to be trying to simplify this process so people understand, “Okay, if I meet X, Y, and Z, is there going to be like a cookie cutter standard for it?” I know it’s not the right term.

                    I’m trying to think about is this going to become easier for folks to follow than feeling like, I’m going to end up in front of my local neighborhood board with people talking about it. It doesn’t fit the character of the neighborhood because there’s always going to be two people like that on the neighborhood council, maybe five people. There’s a lot of them.

                    I keep thinking about, I used to serve on a neighborhood council in one of the wealthier areas of Minneapolis that shall remain nameless, and there were proposals, even for just the mother-in-law unit on the garage. Gosh, there were an awful lot of retired people that came out to say that nothing that changed the neighborhood at all was in the character of the neighborhood.

                    That’s what I’m curious about is will that get addressed as you go through the zoning process and whatnot so that stuff can actually happen or are we going to see … Are you, as a city councilman, going to spend the rest of your term reviewing development applications for triplexes?

                    Jeremy Schroeder:
                    No, our whole goal is more transparency. You talked about ease of the process and that’s part of it, but I think the overall goal is to make sure that we’re transparent, that people understand what could happen and what is happening throughout the process.

                    I think the rest would also be a balancing act. Like, there are things that are important to the city. Like one, combating climate change. Making more affordable, making it accessible, the city accessible to everybody. These are goals of the city.

                    So if there is a way, how do we make sure that we have enough process to assure that the city goals are being reflected in the development that’s happening? At the same time, hold developers and others accountable to meeting those goals.

                    So, while the 2040 plan ideally, it is the zoning that comes after it. It’s easy for people to do developments. It’s easy to add on and do things that are going to fit with what the city is going toward in its goals as well as what fits in the neighborhood, but it’s something. I think it’s too early to say, like where’s that balance, because that’s rather tough.

                    I can give you an example through inclusionary zoning. It’s something that the city has tried to make it easier for a lot of developments as in the recent years, like a lot of things have been streamlined and in a pretty good way to help the development in some of the areas we wanted more economic development to happen, but it is something that when we’ve given those things away, these are things other cities have done. I’ve been able to offer as incentives and one example is parking. We really reduced, before I came on the council, reduced a lot of the parking, and that’s helped a lot of developments become frankly, a little more affordable, in scope, but also be something that a developer would push for.

                    If they were a little bit more pushing back on the ability to do more affordable units, that’s something the city, other cities, have leveraged to say, “Well, how about you do less parking and you can do this many more units?” That’s something we don’t have.

                    So, it really is a balance of how do we be a good place for people to invest in and really have people that are building buildings for 100 years. How do we have that and at the same time, make sure that we have our core goals of being a city for everybody and a city that’s going to be thinking about the next generation and our impact on the Earth?

                    John Farrell:
                    I’m interested in this.
                    Jeremy Schroeder:
                    There’s a lot out there.
                    John Farrell:
                    I follow all these people on Twitter and so I feel like I hear all sorts of interesting things and I’m never sure how to process it, but really curious about this issue on parking. Now, you were just saying the city doesn’t have that kind of leverage that other cities have about maybe negotiating over housing units versus parking. Is that because …I think I remember that in the plan you essentially said, there are no parking minimums. There’s no requirements to include parking. So, is that what you mean when you don’t have that leverage?
                    Jeremy Schroeder:
                    That’s correct. Parking’s expensive. In a lot of the areas that you see development, like the downtowns and the uptowns like we already have, there’s not as much parking, but it also … I think one thing that gets lost in that discussion is there’s a market cost for that.

                    Like developers, when you see a development go up, they plan for a certain amount of parking that they’re going to need just to get people to buy, either buy the units or rent the units. If that’s not possible, then they add that in. But that said, there have historically been an over, other cities have asked for a lot more parking because the fear is always the people will move in and this will disrupt the community.

                    It’s really that balance and in recent years, Minneapolis has moved away from that standard where other cities have kept a much higher standard for it and then they’ve been able to bargain down for other goals.

                    John Farrell:
                    I’m also curious too, in terms of climate change, in terms of some of the other goals, that you talk about accessibility a lot. I’m assuming that transportation is part of that. The kinds of properties that we’re talking about where we’re getting more people on one space. We are getting rid of the parking requirements that would normally go with the property.

                    We seem to be moving toward a way that a lot of people are living now. Like, they’re graduating from colleges. They’re moving to an urban area. They’re maybe not owning a car.

                    How does this fit in with this whole notion of mobility, which is something that a lot of cities are focusing on and how is Minneapolis able to make sure that if people don’t have access to a parking spot, they’re still going to be able to get their way to a job, for example.

                    Jeremy Schroeder:
                    Well, some of that comes in out in the planning development. As a development is planned, accessibility to transportation, to multi-modal transportation is considered. It is something that if you’re on a transit corridor, less parking’s going to be required.

                    But, as you talk about the comprehensive plan and as we think about future in the city, it’s taking on a much different thing. Like transportation’s changing so rapidly right now. What we are seeing is that the things that millennials and like new college graduates are asking for are the same things that many seniors are asking for, and it’s something that makes a lot of people want in their community.

                    Some of that is not reflected in many Minneapolis communities. So, how do we have that growth be there? How do we really have that relationship with the community to know what they need? I know around us, people would love a coffee shop, south of the creek, and it’s just a where would it go in our current form? If there was development, how would we have a space for that?

                    It’s really on one hand, thinking about the development in that nuts-and-bolts, on paper, way, and also just doing the groundwork of talking to people, talking to neighbors, and really knowing what they would want if things were to change.

                    John Farrell:
                    Right. I feel like we keep going to restaurants over by Kowalski’s. If we could just maybe get a coffee shop there instead? Yeah. Can you work on that?
                    Jeremy Schroeder:
                    Yeah. I’ll put that on the list.
                    John Farrell:
                    I wanted to wrap up with taking this back to the big picture. Obviously, in the energy fields where I’m most familiar, but also I think other sectors of the economy, there’s some pretty powerful incumbent players.

                    You alluded in our casual conversation over break that you’ve got a lot of new people on city council and you’re starting to get familiar with the fact that we maybe have a little more power to direct where the city’s going to be for its future than we thought of before.

                    How has Minneapolis been able to stand up to or even co-op some of these big players and what advice do you have for other cities in terms of them building their own sense of power and agency over some of these really knotty questions, whether it’s mobility or affordable housing or energy?

                    Jeremy Schroeder:
                    I think it’d be two things. Like first, my advice would just be to really concentrate on transformative change. The second one is really bring all the intersections of all these problems together. One thing that I think I’m struck by is just the transformative power, like the need for really transforming these systems.

                    An example we talked about over the break was we’ve seen with my new colleagues, just an increase of awareness of the need for affordable housing and a push from city council members when developments coming up for having that.

                    Even seeing some developers come and say, “Well, we’ll do this much, a certain percentage,” and a council member going, “Well, you could do better than that,” and the developers come back with it.

                    I celebrate that as a win, but also want to take a pause and make sure that other cities learn that’s more than that. Like, we still haven’t fixed the system. We still don’t require affordable housing. Like, I mean, that’s something that an inclusionary zoning policy, it’s not going to matter who’s in those seats. The city itself will be just, and think about, how everyone can live here.

                    That level of change we haven’t hit yet and so that’s where something I work on, and my colleagues work on, but just know that work isn’t done.

                    The other thing for cities is really to bring together all these problems. As we think desperately about how we are going to combat a problem as big as climate change, while looking at the affordability crisis that we have in Minneapolis as well as other cities, as well as transportation and its impact on all of these. How do we bring that altogether?

                    That’s something where there’s so much going on in the energy sector, not just how energy is generated, but also how buildings are built. How do we live? How is transportation structured? All these things have ways that can be more sustainable and more resilient to climate change.

                    In the end, when it comes down to it, cheaper. We need to think long term and not just the point where we are now, looking towards what the change will look like, but look toward what the outcome will look like and look at, after a capital investment, are we going to be operating at a much cheaper rate?

                    I mean, we’ve seen some of that just with the change to LEDs light bulbs, to put it on a really small scale, but when you think about all the things from owning two cars to how our food systems operate, all these things, while they seem very daunting, that amount of change that would happen.

                    When you look five to ten years down the road, is that the world we want to be living in? Is that the way we want to explain the world to our kids? It’s a struggle and it’s tough, but that’s really where we have to go.

                    John Farrell:
                    I can pick on the energy sector in particular, but I’m just curious, with affordable housing, and I’m sure that developers are pretty powerful folks. I mean, some of these are really big companies that do a lot of property development. How do you, as a city council member, think about how to deal with that?

                    You’re in some ways taking on their interest, right? They have a particular way that they’re used to doing developments. Maybe they never cared about affordable housing. Maybe they like to do a lot of parking.

                    Do you feel like there’s any backlash? Do you feel like there’s any threat to a city in trying to tackle some of these thorny issues in a systemic way given that some of these are pretty powerful entrenched interests.

                    Jeremy Schroeder:
                    Absolutely. I mean, I think that’s what held up change. I think what’s giving me hope is it’s not just the size of the problem and how long it’s been there, like how entrenched the interests are, but they’re seeing the same world we all are. We finally have some cold weather here in January, but that wasn’t the case the last couple of weeks. They know something’s wrong and things have to change.

                    So when you’re dealing with a developer or others, they hear the same stories we do. I’ll also say that it’s not just me. It is every single person I represent. They have had their thoughts about what it is to succeed in Minneapolis shaken. It used to be you get your kids to the U. They get a good job.

                    You’ve done your job as a parent, but now, they’ve got that good job and they still can’t find housing. They still have to think about a really long commute in a place that’s far away from family. It’s something that’s going against our values and when people have that level of faith shaken, they’re on your side too. That’s really transcending everything from housing developers to utility companies.

                    It’s something that every elected official right now is being held to a different level of accountability and I think we’re better for it.

                    John Farrell:
                    And you’re not going to use the slogan, “Make Minneapolis Great Again.”
                    Jeremy Schroeder:
                    I’m going to resist the urge, John.
                    John Farrell:
                    So, I forgot to ask you about this ahead of time, so take your time if you need to, to answer this, but we often end this episode by asking for a reading recommendation from our guests, something that you’ve been reading. If you read books, if you have time for that as a parent, or something else that you’ve come across that you think our listeners might enjoy coming across as well.
                    Jeremy Schroeder:
                    I don’t remember the author, but Food in the City, is the last one I’ve read. One part, I’ve been struck by that’s been really missing from our answers around energy sustainability and climate resiliency is our food networks. How do we, as a city, get our food, grow our food, and our part of that, cycle?

                    It really talks about what other cities across the world are doing. I just found it fascinating to see what’s possible, to really look at the really scary truth that we’re three days from our grocery stores being empty in any major city you go to.

                    The thought of why I have a garden that barely gets me a couple of salads a summer, so it’s something that we have to think very carefully. We have really become accustomed to how we’re living and we have to think very seriously about what our options are.

                    John Farrell:
                    It’s a little bleak, Jeremy. I’m just going to say that. I’m a dark person, if the truth comes out. Jeremy Schroeder, 2021, he’s running on everyone needs rutabagas in their backyard. Carly, do you have a reading recommendation?
                    Karlee Weinmann:
                    I’ve been reading a really great book that was recommended to me by another city council aide actually called The Reactionary Mind by Corey Robin. It dissects conservatism, all the way back to the French Revolution, to help us understand how arguments are crafted.

                    It carries these theories through to our age of Donald Trump. It’s really an instructive tool in understanding the basis for a lot of the political arguments that I think we’re living through today and engaging in today. I think it’s really deepened my understanding of what folks who may not agree with me are thinking and why they’re thinking it.

                    I read it maybe a little but smugly as a way to craft my own arguments better in those situations, but I think what it’s really given me instead is this deeper understanding of where conflicts exist in our current systems and equipped me with some tools to think more creatively about ways to overcome them instead of just smashing through them with new and better arguments.

                    That’s my grand hope for it anyway, and I guess it takes two to tango, so hopefully, we can come together with those we disagree with in a constructive way.

                    John Farrell:
                    Karlee, last question for you. Is it more fun working for the City of Minneapolis or for ILSR?
                    Karlee Weinmann:
                    I would say I get the best of both worlds right now, because I get to work for the City, which I love, and John, you’re a constituent, so you’re still my boss.
                    John Farrell:
                    Very nice. Very smoothly done.
                    Karlee Weinmann:
                    I’m in politics now.
                    John Farrell:
                    Yeah. Well, Karlee and Jeremy, Jeremy, thank you so much for taking the time to talk with me about what work with the City of Minneapolis has been up to. I obviously will be following it as a constituent in terms of the work that’s going on, but it’s exciting to be able to share what’s going on in Minneapolis with folks across the country, who are really interested in how to wrestle with these knotty issues, so thank you for your leadership.
                    Jeremy Schroeder:
                    Of course. Any time, and thanks again, for having the show.
                    John Farrell:
                    Thank you so much for tuning into this episode of Building Local Power. This is John Farrell. ISLR Co-Director. I was speaking with Minneapolis City Council member, Jeremy Schroeder, about the City’s leadership on climate and inclusionary city planning. Check out the show page for a transcript and links to Jeremy and Carly’s recommended books at IndieBound

                    You can also find out more about the Minneapolis Clean Energy Partnership at ILSR.org/energy. While you’re at our website, you can also find more than 60 past episodes of the Building Lower Power podcast and show us some love with a contribution to help cover the cost of producing this podcast.

                    You can also help us out by rating this podcast and sharing it with your friends on iTunes or wherever you find your podcasts. This show is produced by Lisa Gonzalez and Hibba Meraay. Our theme music is Funk Interlude by Dysfunctional. Please join us next time for another episode of Building Lower Power.

                     

                    Like this episode? Please help us reach a wider audience by rating Building Local Power on iTunes or wherever you find your podcasts. And please become a subscriber! If you missed our previous episodes make sure to bookmark our Building Local Power Podcast Homepage.

                    If you have show ideas or comments, please email us at [email protected]. Also, join the conversation by talking about #BuildingLocalPower on Twitter and Facebook!

                     

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                    Photo Credit: City of Minneapolis

                    Audio Credit: Funk Interlude by Dysfunction_AL Ft: Fourstones – Scomber (Bonus Track). Copyright 2016 Licensed under a Creative Commons Attribution Noncommercial (3.0) license.

                    Follow the Institute for Local Self-Reliance on Twitter and Facebook and, for monthly updates on our work, sign-up for our ILSR general newsletter.

                    45 min
                  6. Electricity and Internet: Pieces of the Same Puzzle

                    Host Chris Mitchell speaks with community broadband pioneer Billy Ray. Billy is the Superintendant of the Glasgow Electric Plant Board, the municipally owned electric power, cable television, and internet utility for the City of Glasgow, Kentucky. He brings a plethora of experience in building local power as a longtime advocate for both municipally owned electricity and broadband.

                    Chris and Billy make the case for restructuring the electric grid and generating power locally rather than relying on giant, centralized utility companies that extract wealth from communities. Billy shares his insights on why it matters that electricity is generated locally and how making the switch can save customers money.

                    They talk about the parallels between the movements for municipal electric utilities and community broadband networks. The two also identify the ways in which the Internet fight against monopoly is almost word-for-word replaying the electric monopoly history. As a veteran of the movements, Billy explains what a difference it can make to get your internet from a community broadband network versus a monopoly Internet service provider, like Comcast.

                    Tune in to hear more about overhauling our energy system and Internet infrastructure and how far we’ve come in the past 30 years.

                     

                    For a public power system, the whole puzzle should mainly be focused on how can we make people’s lives better in this community? And how can we keep this community from being used by some distant corporate board to feather their nest at the expense of our local nest?

                    Related Resources

                    1. The Grid: Electrical Infrastructure for a New Era by Gretchen Bakke
                    2. Electricity for Rural America: The Fight for the REA by D. Clayton Brown
                    3. Power Struggle by Scott Ridley and Richard Rudolph
                    4. The Birth of Community Broadband
                    5. Transcript

                      Chris Mitchell:
                      Welcome to another episode of the Building Local Power Podcast from The Institute for Local Self-Reliance. I’m Chris Mitchell from the Minneapolis office, and today I’m talking with Billy Ray, Superintendant of the Glasgow plant board. Welcome to the show Billy.
                      Billy Ray:
                      Thank you, Chris. I’m glad to be here.
                      Chris Mitchell:
                      Billy, you’re an old time friend of the Institute for Local Self-Reliance, I think you’ve been involved with my colleague Stacy’s work with BALLE over the years. And I think of you as being a major thinker about local economies and smart investments for the long haul and things like that. I’m curious, if someone asked you to give your biography in a minute, how would you give it?
                      Billy Ray:
                      Well, I’m trained as a civil engineer but I’ve spent my whole career in public power. And public power was pretty much invented by FDR and his gang of new dealers and so there’s always been a very direct relationship between public power systems or publicly owned electric utilities and local economies. To a large part, they were invented for two reasons, number one, because rural areas wanted electric power and number two, the ones that had it were generally paying way too much for it and every bit of their local treasure that was spent for electricity was going to some distant board that took that treasure away from ever benefiting the local economy.

                      So I have been interested in all elements of local economies and local control and trying to implement pretty much the electric power micro grid concept with respect to all aspects of a local economy. There’s gotta be a way to make it work by eating your own dog food as I like to say, and concentrating on things that people are gonna buy that can be provided locally.

                      Chris Mitchell:
                      I feel like you’ve lived the same story twice, and we’re gonna get to this in a little bit with community broadband, which you more or less created, in terms of community broadband Internet systems. But what you just described about electricity and the dynamic of many people not having it and those who do have it, often unsatisfied with the rates or the quality, that’s exactly where we’ve been with Internet for the past 30 years as well.
                      Billy Ray:
                      Exactly. There’s nothing new under the sun, is there?
                      Chris Mitchell:
                      When I interviewed you to talk about the birth of community broadband as I think of it, I told you this to prepare a little bit for it, but you talked about thinking about things as a whole system and not breaking it down too much I think. And the part that I really remember is this idea of like, if you’re running a shopping mall and you see that the parking lot is losing money, nobody comes there and pays you to be in the parking lot, and so a consultant comes along and tell you, “You know what? You should just get rid of that parking lot.” It’s a sign of not understanding how the whole system works together.

                      So I’m curious, you’re there in Glasgow Kentucky, a place that many listeners may not even be familiar with, but you’ve been thinking about small towns for what I can gather, is your whole life. So what are people missing today when you’re hearing news analysis on the TV and things like that about the way small towns should be thinking about their local economies?

                      Billy Ray:
                      Well Chris, so often what you hear is generated by those who have an interest in maintaining the status quo. If you’re AT&T, you have an interest in focusing the discussion on whether a community should build it’s own broadband network for example, on the microscopic or the microeconomics as well, there’s been several of these that have failed financially.

                      And we operate a public power system and a public broadband network in this small community of 15 thousand people and it’s probably a rare board meeting that I’m involved in where if somebody wants to get way down in the weeds of the individual services that we provide and just look at the profit and loss characteristics of an individual piece of the puzzle without thinking about the whole puzzle. And really for a public power system, the whole puzzle should mainly be focused on, “How can we make people’s lives better in this community? And how can we keep this community from being used by some distant corporate board to feather their nest at the expense of our local nest?”

                      So yeah, I think that’s kind of a epidemic of people that don’t take the time to become fully involved or fully informed or even worse, they allow themselves to be pseudo informed by social networks or what have you and somebody quoting some kind of a indirect reference or just blatantly false reference to the success or failure of one of these networks, is the real problem as communities try to figure out how to make themselves stand on their own two feet. It’s not normally a five minute conversation to really consider all aspects of these things. They’re not simple and people really love simple these days. They like to make decisions based on a 40 column inch Facebook post and a lot of these things are just more complicated than that.

                      Chris Mitchell:
                      Well, and it’s interesting because one of the things that we can talk about shortly regarding electricity and the way you think about it, you are an advocate for people paying their fair share. You’re not making excuses for a part of the network not being able to generate revenue that is needed or that sort of a thing. And so, I’m curious how you react to that? The network should be paying for itself, right?
                      Billy Ray:
                      Yeah, it should. But there’s a vast difference in today’s economy between for example, a publicly owned broadband network just paying for itself versus the rates that are often charged by the classic operators of these networks. Which product pretty sizable profits for a lot of stockholders. There’s nothing wrong with it paying for itself. In fact, I’m a big proponent and have gone to a lot of trouble with respect to electric power to try to reexamine the rates that are classically charged for electric power throughout our country and try to interrupt the status quo there.

                      And the status quo with respect to electric rates is that they are just classically socialized. And it’s not that the people that are designing electric rate structures are socialists, it’s that we have for 100 years, used technology to measure electric power that provided not anything like enough information. For example, everybody gets an eclectic bill, it usually is based on kilowatt hours or some unit of energy that is not differentiated according to time and so it’s just a monthly charge.

                      But the utility that’s sending you that bill, when they either make the energy or buy it from someone else, they’re not buying it simple, wholesale rate environment like that, they’re paying different during every hour of the day depending on the mix of generation they’re having to run to provide that energies.

                      Chris Mitchell:
                      I think a good explainer of this is actually down in Texas, where they have so much wind energy at night, that I think it’s basically free to use electricity at night, and during the day, particularly in the summer days, it’s remarkably expensive to use electricity. And that’s because when you’re using electricity at night, it costs practically nothing to the utility, but if you use it during the day, it costs quite a bit because of the amount of demand. And so, if you’re getting a bill that just tells you, “You use this many hours.” Well, depending on how you structured that, you may be overpaying or underpaying relative to what you really owe the utility.
                      Billy Ray:
                      Exactly. Exactly. That’s why I said, it’s the very definition of a socialized system. And again, that was accidental because the technology lagged to provide the meter what people were using and get a good picture of when they were using it compared to the price of producing it. If we had, oddly enough, a real component of allowing that metering to flourish which would then give birth to more efficient electric systems, is a robust broadband network.

                      There’s a lot of information to be sent back and forth, information that is dramatically more important than have a better Netflix experience by virtue of having a faster broadband network. That stuff is okay but the center of the universe really is in enhancing the most complicated machine that man has yet constructed on this planet and that is the electric power grid.

                      So using broadband to make that grid work better and make it more capable of exploiting this practically free wind energy by helping people employ appliances and what have you that recognize energy at night is free. Lets figure out a way to heat and cool the house mainly at night and to restructure the way people use energy with the attempt of trying to make sure that we don’t ever have to build any new fossil fuel generation.

                      Chris Mitchell:
                      Now, you saw all this coming in ’80s and I’m actually curious if sitting here in 2019, you’re still ahead of the curve. You’re still doing things that a lot of the country may not be dealing with for another five or ten years in terms of how to deal with this world of electricity with broadband available everywhere. But I’m curious, when you were thinking back in the ’80s and even rarely ’90s, did you think in 30 years that we would be where we are or we’d be further along? What did you think?
                      Billy Ray:
                      No Chris, really I thought this all would play out in five years. In 1988, I thought this deal would all play out in five years so I couldn’t have been more wrong about that, about how long it would take or wrong about the plotting pace of the members of my fraternity.

                      The electric utility business moves so slowly. And there’s some amazing dynamics that I’ve watched across the country as a few utilities have attempt … Every time it seems that a utility go to a state public service commission and asks to make a move in the direction that I’m talking about by restructuring the price of energy where that it’s more a fixed cost and the actual value of the energy going down to mimic the actual cost of producing it, public utility commissions have a knee jerk reaction, they’re against it. They wanna maintain the status quo.

                      Every customer or consumer advocate group known to man automatically, against it. It’s this struggle to help people who seemingly don’t wanna be helped. If you restructure the energy industry and price it appropriately so that people begin to demand less capital investment for serving loads that very wildly and unfortunately use most of their energy during three hours of the day, there’s no better way to help consumers than forbidding those additional capital outlays. But we’re struggling to get to that point because consumers apparently prefer the status quo, even though the status quo is screwing them.

                      Chris Mitchell:
                      So let’s talk about that for a second, because we’ve mostly focused on money. And I actually think, particularly listeners to this show may think, “Well that’s interesting but I’m more interested in the climate impact or other aspects of equity.” How does this impact things like the climate or equity in the community?
                      Billy Ray:
                      Fossil fuel central station power, is a 1920s concept that we all through the 20th century continue to believe in, and we’ve built larger and larger central station units that burned more and more of different sorts of fossil fuels. And what we’re seeing now is that number one, I think we have to start with the foundation that there is climate change. There are plenty of people that wanna argue about what caused it but in the electric utility industry, we’re able to at least say, look there is climate change, weather is becoming more and more violent, it’s more and more difficult to keep communities with the reliable electric power that they require for anything to function, their economy and just life in general. So, we really need to get the generation closer and closer to the consumption points and kind of give up on this idea of being served by remote giant power production facilities, that may be three or four hundred miles away. And reorganize ourselves into a system that’s loosely called microgrids, that you can break this complicated grid down into components where each component has some generation resources in it. If you can also have a robust broadband network, and the appliances to be connected to that broadband network, where that a system operator or a microgrid operator can say, “Look, we’ve become disconnected from the main world here, we’ve got five megawatts that we can play with, so all of you guys, we’re gonna organize you to make sure that no more than five megawatts is used, as long as that’s what our generation capacity is.” It’s not unlike what mammals have spent three billion years developing through evolution. I’ll give you a cycling analogy.
                      Chris Mitchell:
                      Oh, I love cycling analogies.
                      Billy Ray:
                      I like to ride my bicycle, and I may approach a hill that I would like to go up at 20 miles an hour. Now my brain calculates that, and it knows what all the resources that I have, what kind of backup fat I have stored, glucose and what have you. And it comes back and says, “We don’t have that.” We could get up that hill at maybe nine miles an hour, and we’ll organize the muscles and your cells, and your energy resources to do that. And it’s a lot better than just sitting at the bottom of the hill and saying, no, if I can’t go up at 20, I’m not doing it at all. That’s the lesson from biology that we have to learn how to accept in the electric power industry.

                      Remember, the electric power industry is only 100 years old. It follows that we haven’t figured everything out, and we need to be open to learning from nature about how they have learned to manage energy and what is an effective microgrid. An individual human body is a microgrid.

                      Chris Mitchell:
                      Well let’s press into that for a second. So, if you had almost the exact amount of electricity you might need from local solar power created in town, would it matter then that you were still doing it at a time of use pricing more or less? Why would it matter in that event?
                      Billy Ray:
                      Well, because it’s hard to imagine a resource. You didn’t stipulate what kind of resource I had that was equal, but in 2019, the most likely resource that I might have for my little microgrid would be a combination of wind and solar. And so, it still does not negate the fact that price needs to fluctuate to help shape demand. If you had a complete authoritarian system, you could just operate this appliances from central control, and say look, we’ve only got five megawatts, we can’t do more than that.
                      Chris Mitchell:
                      Like call my utility and ask for permission to use my blender at 3:00.
                      Billy Ray:
                      You know, I do think that we will see the day, and this is kind of getting to my lunatic fringe part, but it may be that the light switch on the wall that is a simple opening of a circuit, will some day become more like a web browser where when you turn it on, you’re making a request. And if we had the resources to satisfy that request, we’ll do so. And you’ll be billed for the precise usage that you took from the available resources.
                      Chris Mitchell:
                      And your position, is I should not be scared about that.
                      Billy Ray:
                      No, because what you get in return for this change from the status quo, is so little of your treasure in the future having to go toward a 50 year generation, I say it, that has to be paid for whether you’re using the energy or not. So we’re gonna learn how this Infotricity concept is a way to skinny down the grid, make it more durable, and less expensive, because it’s closer to home and local people can make more decisions about how they want to invest their money for their energy use.
                      Chris Mitchell:
                      Now, is this something as you’ve been implementing Infotricity with … you built a community television system that became the first community broadband system, I’m curious if this is something that I think clearly works if you had the entire state of Kentucky working together on it. You have enough demand and perhaps control over those big generation facilities. I’m curious if your scale has limited your ability to implement it or move forward with it in the best way you’d like to?
                      Billy Ray:
                      Yes it has Chris. It’s a fairly common occurrence when we’re for example negotiating with a software vendor that we need to help us control load shape and manipulate appliance usage, and thermostats and what have you. They will often ask way too much money for the rights to use that software. And we’ll say, “Look, you’re out of your league, you don’t understand the value of this is not $10.00 per customer per month, it’s more like 89 cents.” And they’ll say, “Well fine, if you were PGE or Commonwealth Edison, and you were gonna do five million homes, we could do it for 89 cents. But in Glasgow, you’re doing 15,000. And it’s not big enough.”, and they will often be uncooperative for pricing these products the way that they need to be priced. And they’re shooting themselves in the foot, because if we can’t show how this works in a small laboratory environment, it’s never gonna get to a big rollout.
                      Chris Mitchell:
                      Hey, thanks for listening to our conversation today on building mobile power from the Institute For Local Self Reliance. As usual, we don’t have an ad, but I wanted to ask your support for our work. Reporting on these great local initiatives, it takes a lot of time and energy. Your donations keeps us working and keeps our spirits high. Please take a minute to go to ILSR.org/donate. Any amount is welcome, and we do sincerely appreciate it. Now, we’re gonna get back to Billy Ray from Glasgow, Kentucky.

                      So, let’s switch over to community broadband a little bit, just because being conscious of time, there’s so much more to discuss there.

                      Billy Ray:
                      Yeah, there is.
                      Chris Mitchell:
                      But you’ve more or less launched community broadband, and it wasn’t just through the Glasgow, it was also a certain student of yours, a lawyer that you worked with at the time, Jim Baller, who has gone to be incredibly influential nationally helping other cities build networks. What, over the past, I’m guessing actually is almost 30 years now, of you having done this. What is different in community broadband that you might not have expected?
                      Billy Ray:
                      I really think that it’s sort of the same electric utility stuff that I’ve been talking about, I mean-
                      Chris Mitchell:
                      Just repeat ourselves.
                      Billy Ray:
                      The cable TV part and then later on the Internet part, were just means to an end. We needed a robust broadband network to touch every home and business, so that we could do the really big thing, which is learn how to reshape electrical demand. I’ve been surprised on several fronts. I’m surprised that 30 years later, you and I both read daily, and in fact Jim Baller is one of the one’s that often, he does a really great email list to try to gather up headlines about communities that are still 30 years later, they’re doing studies on whether municipal broadband would work. It makes me jump and down and think, yes that question has been answered, can we skip on down. I just noticed that TVA, we buy our power from TVA, and they only last year decided that it might make sense, they serve seven states or portions of seven states, and they recently decided that it might make sense to run fiber to connect all the different utilities that they serve, so that we could have better access to … we could have better access to broadband, because a lot of those areas of those seven states are still very rural. And TVA could in turn, get better access to consumption information, so they could operate their system better. And it’s taken 30 years to get to that, and it’s still kind of a nebulous concept.

                      Just noticed they’re about to do a one or two day seminar called Fiber University, to talk to … these are the same people that are operating the most complicated system on earth, the electric grid, but in 2019, we still need to have kind of an elementary explanation of what broadband is good for and why you might want to do it. That surprises me. I know there’s 10,000 cities across the United States, and everybody can’t do it all at the same time, but in 30 years, I would think that everybody could have done it by now.

                      Chris Mitchell:
                      Well I am struck when I look at places like Lafayette Louisiana, where they decided to municipalize an 1898 both water and power, and it took 10 years or so, I think there was an effort almost immediately, but every 10 years, they have an effort to try to privatize that utility. It seems like that’s never going to go away. So on a number of these issues, people just … you know, I think it’s an issue that’s kind of boring, right. People don’t want to think about electricity, they just want it to work. They don’t want to think about the Internet, they just want it to work.

                      So that gives an opportunity for those who want to extract wealth from the communities, to try to take it over, it seems like.

                      Billy Ray:
                      Yeah, it really does seem to be a fertile field for people that can talk the talk, of this extremely complicated machine, called the electric grid, to kind of pull the wool over people’s eyes, and to a large extent that’s been tried, that happened with the robber barons, and the reason that the New Deal and the Great Depression were necessary, I don’t want to say that the Great Depression was necessary, but to a large extent the reason it happened was the exploitation of the electric power grid. And in the early days, people were being charged prices that were in no way related to the cost of delivering that energy.

                      The whole concept of natural monopolies and being regulated by state public service commissions was invented to try to protect people, but by 2019, long before 2019, but that just happens to be when we’re talking, to a large extent the state public service commissions have succumbed to the siren song of the electric utilities, and often they are kind of a handmaiden of the electric utilities, and suddenly protector of the consumers, because they too find it really attractive to stick with the status quo, you know. Whatever we’ve been doing probably is good, and we outta just keep on doing that.

                      But if you really dig into the electric utility industry, and there’s a great book that I would highly recommend for any of you listeners that are turned on by any of this and want to learn more about it, the title of it is “The Grid”, flat cop flat footed here, I can’t remember who the author is. But it’s a really great book that explains all of this. I mean I bought 50 copies to get all of my team to read it, and every time I get I new board member, the first requirement is they’ve got to read this book.

                      Chris Mitchell:
                      It looks like there’s one with the author, “Gretchen Bakke”?
                      Billy Ray:
                      That’s it.
                      Chris Mitchell:
                      Bakke is a common name, I don’t know in electricity it seems to pop up a lot of places.
                      Billy Ray:
                      Well, it seems like she is not an engineer, she’s like, is it an anthropologist or something like that? She comes from a strange direction, but she did a lot of really good research on how we got in the shape that we’re in, and where we’re gonna have to go to come out of this.
                      Chris Mitchell:
                      I’m curious, if you’re familiar with my favorite book that I’ve read so far on it, and that’s Electricity for Rural America, The Fight For the REA by D. Clayton Brown.
                      Billy Ray:
                      I haven’t read that one.
                      Chris Mitchell:
                      Okay.
                      Billy Ray:
                      It sounds like something I should read.
                      Chris Mitchell:
                      It’s as old as I am, it’s a 40 year old book, and boy, it actually tells the story of the fight for creating the co-ops. I was reading it the same time I was reading a thriller and I couldn’t figure out which one I wanted to read because they were both so exciting.
                      Billy Ray:
                      Well you know, there’s a guy that I met back in the 80s. Because … It was really weird. I remember the first time he called me and I had read his book. His name’s Scott Ridley and he wrote a book-
                      Chris Mitchell:
                      Oh yes.
                      Billy Ray:
                      Called Power Struggle.
                      Chris Mitchell:
                      That’s an incredible book.
                      Billy Ray:
                      Oh it’s fantastic! Then we became friends. I went up to New England several times to make talks for him with different community groups and what have you. The Grid is actually a new book but you’re right, a lot of these ones that were written back 40s, 50s, and 60s were the really good books on the electric power industry. Not that much has changed, because it moves in such a plodding fashion.
                      Chris Mitchell:
                      Well I want to get back to the … In the broadband and then ask you again, what difference it makes. So if you compare the service you offer in Glasgow against mine … I’m a Comcast monopoly. I’m stuck with them. I pay a lot more, although I have faster service than I think is commonly available. What is the difference between what you’re doing there, like, what would change if Comcast just took you over?
                      Billy Ray:
                      I’ll tell you what would change, Chris. You already said this earlier in some of your comments, is that people don’t want to understand this stuff. They just want it to work.

                      I have a really good prediction about what life with Comcast is like in your city, and that is that you’re pretty much on your own. If you have some strange issue with your service that you can’t figure out, your download speed is not what it should be, you just are confused, that you got a new laptop and you don’t know how to get it set up on the system, my perception is that you might spend weeks trying to get your problem solved. It may take days out of your otherwise productive life if they need to make a site visit. And just the classic monopoly service, big company, little customer.

                      Chris Mitchell:
                      Yeah, I would actually just go one further and say that in reality, I have had some of these issues and I just learn to deal with it. Because I just give up. There’s not reason to even think about it.
                      Billy Ray:
                      That’s the deal. Whereas we’re within three and a half, four miles of every one of our customers and they come right down here with their laptop and they say, “What’s wrong with this? What am I doing wrong?” Or they come with their new phone. They’ve left the AT&T store where they couldn’t get any satisfaction and they come to us and say, “Look, I’ve got my Glasgow EPD email address and I want to get it set up on this.” And we have people that sit there with them and do it.

                      With respect to cable TV, and this is another absolutely economically perverse situation, but you know, even though all the prognosticators with respect to video entertainment write off cable TV, and I’m probably one of them, it’s going to be dead in X number of years, we just can’t figure out what X is. Everybody’s gonna go to streaming. Well the thing is, there is, percentage-wise, a huge number of customers that are never going to go to streaming. They won’t even use the program guide which is available on all the TV products that we sell now. They still change channels by the plus and minus key. And if somebody sits on that remote and gets it off of the right input where they can’t get that, they often … That’s the only entertainment option that they have, and they expect us to send a truck over there with somebody that will walk in the house and get their TV back on the right input.

                      And that’s a service we provide. It’s economically insane, but it makes happy customers. We understand that that’s the basis for our existence is because we live in a rural area. People are not going to get this stuff made easy for them. They didn’t get it in 1910 with electricity, so the public power concept came along where people would teach them how to use their washing machine, and it’s just being repeated again in 2019, or in our case, since 1988 when we started building this network. We recognize that it’s fairly easy to get a flow of electrons or a flow of bits to go through conductors and arrive at your home. It’s much more difficult to democratize the technology which is constantly evolving. But that’s the difference … You asked what the difference is. That’s the difference.

                      Chris Mitchell:
                      Yeah, I think it’s scary out there. I mean I am a deeply technical person and some of these things just drive me nuts. I have a three-year-old son, and I have never gotten as mad at him as I do at my computer on a regular basis.
                      Billy Ray:
                      Oh yeah, yeah.
                      Chris Mitchell:
                      It’s scary.
                      Billy Ray:
                      I had a fit with… Even my garage doors are controlled by an app. And just two nights ago, my wife had somehow gotten into my account with the garage door company and tried to change the password, and did the deal where she tried to open the garage door so many times that it locked me out. And then came to me and said, “Something’s wrong. The garage door thing won’t work anymore.” I said, “Well, I can’t fix it now because I’m locked out!”

                      I understand where our customers are. It’s more than an inconvenience. It can border on fear that I’m not going to be able to live my life here because this system, this technology is broken down. You know, we understand that the basis for the electric power utilities, at least the public ones, were born of that same fear.

                      Chris Mitchell:
                      Well let’s wrap up with a fun story. You tell a lot of really good stories. We told one of them in the video we did with you, the birth of community broadband where we talk about Vint Cerf, once of the most credited with creating the Internet people on the planet, got in touch with you back in the day. And people want to see that story, they can watch the video that we have linked in the show notes.

                      But I want you to tell me about you going to be a guest of President Clinton’s at the time. What was happening around there?

                      Billy Ray:
                      Well, it’s his first term, and some of his associates that have been active in getting him elected took a liking to the concept of community broadband. And they were trying to talk me into leaving my post in Glasgow and creating some kind of, I guess, a sister agency to the American Public Power Association that they wanted to call the American Public Info Highway Coalition, as I recall. That’s a lot of years ago.

                      Once, when I was … They had a press release to talk about this, and I got to make a talk at the National Press Club. And that night was the State of the Union address, and they told me to be at a certain bar right there on Capitol Hill right there at a certain time. I showed up and they gave me a ticket to get into the House, which didn’t get you into the chamber. And then somehow, before the speech started, they handed a ticket that was going to let me get on the floor of the House. No more instructions other than that.

                      Well, you know, I’m just an old boy from a little town in south central Kentucky. And so I went to the door keeper person and presented the ticket and he opened the door and let me in. Of course, there was no place to sit. Every place I tried to sit was taken by somebody important. And I got run out of a couple of seats and I finally wound up just standing through the whole address and President Clinton finished.

                      Since the only place I could find to stand was right in one of the doors that goes onto the floor of the House … So when it was over and the doors swung open, I was the first one to leave because I was standing in the door.

                      The only place I knew to go was the last place I had seen my host, which was the office of the guy that introduces the President at the State of the Union address. I can’t remember if it’s the Sergeant-at-arms, or what the right term is.

                      Chris Mitchell:
                      Sure. Yeah.
                      Billy Ray:
                      But anyway, I went to that office and was standing around waiting for somebody to show up and tell me what I’m supposed to do now. And there was refreshments there, and beer. So I took advantage of that. I was hungry and thirsty and was standing around.

                      I turned back around from opening a beer and I was looking right in the face of a Secret Service guy, and right behind him was the President. And so I didn’t know what I was supposed to do next, so I just said, “Mr. President, that was a great speech. Would you like a beer?” And he said, “I’d really like that, but I’d better not.” Of course he was hoarse, sounded like he really needed one. He asked me who I was and I told him. And I’m going to tell you, he said, “Oh, Glasgow. That’s the place where y’all built the community broadband that worked.” I said, “Yeah! That’s right!”

                      So he either was just a voracious consumer of information, or these guys told him I was going to be there, but I left there impressed. I have no proof of that because there were no pictures made.

                      Chris Mitchell:
                      Right.
                      Billy Ray:
                      When I tell the story, I just have to get people to believe me.
                      Chris Mitchell:
                      No, it sounds exactly right. And it’s one of the things that President Clinton was certainly good at was reading. I mean, the stories about his habits were remarkable.

                      Yeah no, it is amazing to think of how little has changed, just looking at this and the same sort of discussions. But I do think we’re at the precipice. And I’ll say that in five years, I think things are going to look different, finally.

                      Billy Ray:
                      I hope you’re right.
                      Chris Mitchell:
                      Yeah. We’ll stick with that number.

                      Well thank you so much for coming on. It’s always a pleasure to hear from you, and I’m really glad to know that you stuck around in Glasgow. Because I think it’s easy for people to hop from job to job to job, and it’s hard to see something through. And I’m glad that you saw it through and have continued to inspire people.

                      Billy Ray:
                      I appreciate that, and I often had opportunities to jump and didn’t because the people here never really gave me a reason to do that. So I stuck, and I’m really toward the end of my career now and I’m satisfied that I never had to really get associated with a lot of moving van companies.
                      Chris Mitchell:
                      That’s great.

                      Thank you all for tuning in to this episode of the Building Local Power Podcast from the Institute for Local Self Reliance. You can find the links we discussed today at ILSR.org, clicking on the show page for this episode. That’s ILSR.org. While you’re there, you can sign up for one of our many newsletters and connect with us on the Internet socials. Take a second to rate us, or even shout the name of this show out a window. I’m pretty sure that’s how word-of-mouth works.

                      This show is produced by Lisa Gonzales and Hibba Meraay. Our theme music is Funk Interlude by Dysfunctional. For the Institute for Local Self Reliance, I’m Chris Mitchell. We’ll be back in two weeks. Let’s build local power!

                       

                      Like this episode? Please help us reach a wider audience by rating Building Local Power on iTunes or wherever you find your podcasts. And please become a subscriber! If you missed our previous episodes make sure to bookmark our Building Local Power Podcast Homepage.

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                      Photo Credit: Rennett Stowe via Flickr

                      Audio Credit: Funk Interlude by Dysfunction_AL Ft: Fourstones – Scomber (Bonus Track). Copyright 2016 Licensed under a Creative Commons Attribution Noncommercial (3.0) license.

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                      41 min
                    6. Will Santa Sleigh the Monopolies?

                      Host Chris Mitchell is joined by ILSR Co-Directors Stacy Mitchell and John Farrell for a year in review. The trio take a look back on developments in the movement against corporate concentration in the past year and reflect on what more it’ll take to grow local power in 2019.

                      Stacy explains how public opinion on Amazon has shifted this year as more and more people realized the search for HQ2 was really a play to gather data and further advance Amazon’s stranglehold on the economy. Chris and John discuss how they saw the truth about Amazon come to light in the media.

                      They also discuss massive shifts in the energy sector, as batteries proliferated this year making it possible for people to store the renewable energy they produce locally. John details how individual actors are collectively transforming the energy system, including the million customers in California that have installed solar on their own rooftops.

                      Tune in for a lively recap of 2018!

                       

                      This year was a moment when people became increasingly concerned about the ways that Amazon’s tentacles are reaching into every part of the economy, and not just dominating markets, but really controlling markets in ways that are deeply disturbing.

                      Related Resources

                      1. ILSR Resources on Amazon
                      2. Dollar Stores Are Targeting Struggling Urban Neighborhoods and Small Towns. One Community Is Showing How to Fight Back
                      3. Winners Take All by Anand Giridharadas
                      4. Reverse Power Flow: How Solar+Batteries Shift Electric Grid Decision Making from Utilities to Consumers
                      5. Visualizing California’s Booming Solar Market
                      6. Community Broadband Bits Podcast Year in Review
                      7. Transcript

                        Chris Mitchell:
                        So it’s the end of 2018, and last year we got together here, John Farrell, the now co-director of The Institute for Local Self-Reliance. Welcome back John.
                        John Farrell:
                        Thanks for having me Chris.
                        Chris Mitchell:
                        And Stacy, the other co-director, Stacy Mitchell. Welcome back.
                        Stacy Mitchell:
                        Nice to be here.
                        Chris Mitchell:
                        So I started to say that last year the three of us got together for building local power and we talked about monopolies and sort of the year end review and things like that, and we thought we’d do it again.

                        The big question on my mind is will Santa sleigh the monopolies? That’s my big hope for the end of the year.

                        John Farrell:
                        How long have you been working on that concept Chris?
                        Chris Mitchell:
                        Michelle and I decided that it’s probably in bad taste but I should do it anyway, but I came up with it about 30 minutes ago. So we’re going to talk some about Amazon, we’re going to talk about utility, where that’s going and how that’s going to really shape the future.

                        I mean, you know, it’s funny, we were talking a little bit about how we were afraid won’t think it’s very exciting, but frankly this is just the future of like whether or not the planet is habitable, what price we’re paying for energy, and things like that. So we’re going to talk about what John’s been looking at and the timeline in which the entire electric system is changing, where we get our energy from.

                        We’ll talk a little bit about broadband regarding AT&T buying Time Warner and the Department of Justice really trying to challenge that, even though it has kind of a flawed argument and it seems clear that the world is stacked against it.

                        But let’s start, Stacy, with Amazon, a year in review. And is it two years ago you released your big Amazon report around this time?

                        Stacy Mitchell:
                        That’s right. We released Amazon’s stranglehold in November of 2016.
                        Chris Mitchell:
                        And I think when we did that, I mean that was the time … There was no real opposition to Amazon. There was no even real popular sense that there was anything even wrong with what Amazon was doing.
                        Stacy Mitchell:
                        That’s right. I mean it’s changed dramatically in the last two years, and especially this year. I mean I think the Whole Foods acquisition in 2017 was moment when people kind of woke up and looked around and said oh, there’s this thing called Amazon and they really have big intentions.

                        And then this year was a moment when people started to really look at what those intentions are and became increasingly concerned about the ways that Amazon’s tentacles are reaching into every part of the economy, and not just dominating markets, but really controlling markets in ways that are deeply disturbing.

                        Chris Mitchell:
                        I’m curious, John, did you have a point in this year in which you felt that that became clear to you, that there was kind of a popular sentiment building against Amazon?
                        John Farrell:
                        In a couple of different instances, and it’s hard to distinguish sometimes between what I started to hear as just sort of a purveyor of news and what I started to hear because I work with Stacy and her stuff comes across my feed.

                        But I think … You know, I think there was … You know, that acquisition I think got some people starting thinking, but then, you know, Stacy has been relentless in terms of putting out more information to help people understand what’s going on, so she had a report about procurement and the way in which Amazon is involved in public procurement that I saw, you know, circulate in a lot of circles.

                        I saw her stuff about H2Q as that decision was kind of coming to an end, so I … To me it’s like within the last six months all of a sudden it has gone from being like there were a couple of different like select pockets of people that were caring about this, economists, you know, folks that look at online shopping or something like that, and all of a sudden now everybody is talking about it, like this is the thing to focus on when you talk about concentration in the economy.

                        Stacy Mitchell:
                        Yeah, I think that’s right. And a lot of this is because of the so-called HQ2 sweepstakes that Amazon set up. I mean as people recall, about a year ago Amazon announced that they were going to create a quote second headquarters and they were going to open up this bidding process and cities across the country … 238 cities across the country, a few in Canada, submitted proposals, went to kind of acrobatic lengths to put together all this information for Amazon, and also packaged it with a lot of giveaways, in many cases subsidies, tax incentives.

                        And then Amazon at some point in the year announced that they’d whittled the list down to 20, and there was another like flurry of media coverage. And then something began to happen in right around September of this year. I think a lot of people started to realize that this whole thing was a ruse. I mean it was like it had worked as a publicity stunt for them for months and months and months, and then something started to shift in the public consciousness.

                        And it was really interesting to watch, because the reporting started to change. Amazon, the way that they talked about it, started to change, so it was really clear that people suddenly started to think oh, this is a company that is using its power to gain government favors, to manipulate all these local governments into turning over this incredibly valuable data, and that this was really a ploy by a monopolist basically that’s a threat not just to the economy and like the opportunity that we have as workers and producers, but like a threat to democracy and to like our ability to run our own cities and our own lives.

                        Chris Mitchell:
                        Yeah. And one of the things I remember is when it was announced, I felt that you and Gregg Leroy were the ones popping up on my Twitter feed, the only ones that were saying this isn’t a great deal, this is a problem.

                        And even at times I remember thinking oh, like I agree, but I don’t want to alienate, you know, my few followers that still listen to me by just harping on Amazon. But definitely toward the end it seemed like everyone was saying this is not good and this is a sign that something is wrong.

                        Now let me ask you this Stacy. You were on the Hasan Minhaj show, The Patriot Act, on Netflix, talking about this, an entire episode about Amazon and antitrust. To me that’s another sign that things have shifted. What did you take away from like a popular show aimed at a non-policy audience talking about this?

                        Stacy Mitchell:
                        Yeah, that’s right. This whole huge long segment on antitrust, on monopoly policy, all focused on Amazon. It was super well researched and smart and hit all of these. I mean he was talking about the consumer welfare standard, you know, which is the bad standard that was adopted in the 1980s that’s really hamstrung our ability to deal with corporate power, and that a lot of people are now calling, you know, for that to be changed and gotten rid of.

                        And I got a little … As you mentioned, a little cameo along the way in his montage on Amazon, and I just … It was so encouraging, because I thought there’s a way in which this has entered the mainstream popular discussion. I couldn’t have ever guessed that this would happen, but it’s critical, because I think, you know, we have, as you noted, economists and some policymakers and other folks who are looking at this and are deeply concerned about Amazon and about monopolies in general.

                        But what is going to actually make action happen is going to be popular will. And so the fact that this issue is resonating, I think people in their own lives know that there is something fundamentally wrong with economy. We’ve got polling on this now that shows that most people, the vast majority of people in both parties believe that monopoly is a problem, that big companies have too much power, that our local economies, or job opportunities are all being squeezed by these company.

                        So I mean it’s interesting in the context of Amazon, because there’s this way in which we’re sort of of two minds. A lot of people enjoy Amazon as consumers, and at the same time are deeply concerned about its power, and those things can be true at once, and we really saw that this year.

                        Chris Mitchell:
                        Let’s talk a little bit about New York and its relation to Amazon, because, John, you had mentioned I think the surprise that we have with kind of actual local organizing … Kind of an uprising against the state and the city of New York for welcoming Amazon in. What surprised you about that?
                        John Farrell:
                        What I find really surprising about the reaction in New York is that I thought that even though people, like Stacy then and many others that have picked up this tread, were going to criticize Amazon for trying to soak up all these public benefits, that folks would just shrug their shoulders and be like well, that’s the way the game is played. Look, another town is going to give out a bunch of money, and of course it’s going to be a town that we thought would get Amazon anyway without having to do any bidding, whoop-de-doo.

                        And then all of a sudden we start to see New York City Council members re-tweeting Stacy’s stuff and saying hey, this is really kind of crappy, like this might not actually even be a good deal for us. We don’t want to be an HQ2 city. We could more profitably invest this in a lot of other local initiatives.

                        So I think that’s where for me it felt like this notion that Amazon is a problem really had some traction. When you have cities willing to turn down the potential to host this headquarters and say actually we have lots of other ways we think we can support our economy that are a much better deal.

                        Chris Mitchell:
                        Yeah. Stacy, I’m curious as well. My impression is actually that some of the City Council members who may have signed off on Amazon in that deal to begin with then changed their tune.
                        Stacy Mitchell:
                        That’s right. I mean there was a public letter of like support from a variety of like state lawmakers and I think some city councilors as well. I’m not quite sure who all that went out to, but a lot of people signed on to it, and a number of them when this deal was announced rescinded their support of it.

                        And, you know, I think John is right. I mean I was surprised, and it’s been great to see … I sort of expected that people would be maybe upset about the subsidies and there may be some debate about getting something in return for those giveaways, that kind of thing.

                        But instead what we’re seeing is people are like definitely no subsidies, and we don’t even think we want Amazon here at all. And it spoke about we don’t want to be part of supporting this monopoly and all of the negative impacts that it’s having, but it’s also like looking at what this is going to mean Queens and all the ways in which local people are going to lose because of Amazon.

                        It’s just galling too when you have the world’s richest man … I mean Jeff Bezos is worth something like $160 billion. It fluctuates, but something like that. The idea that taxpayers, in a state where the school systems are really struggling and there are a lot of other problems, are going to be ponying up this incredible amount, billions of dollars. It’s just so galling to people. There’s something about that that I think is really crystallized what’s at stake with Amazon.

                        Chris Mitchell:
                        nature is a claim that New York is still better off with Amazon there because many feel that if Amazon doesn’t create a certain number of jobs then they won’t get these subsidies, and that the subsidies are supposedly coming out of taxes that Amazon will be paying.

                        So I’m curious if you can respond to the argument that New York, even though they’re giving all these subsidies, is better off because Amazon is coming because of how it’s structured?

                        Stacy Mitchell:
                        Yeah. I mean Cuomo, Governor Cuomo of New York, who, you know, is the lead negotiator of this terrible deal, he’s made this argument. He’s made this exact argument that you’re saying right now, and I just think it’s ridiculous for a couple of reasons.

                        I mean the reason Amazon is going to New York and also the Virginia suburbs of Washington, DC is because that’s where they think they can find and attract the tech talent that they need, and that’s the only reason. The reason they split the HQ2 into two locations is because they recognize that they wouldn’t be able to find enough of the right kinds of workers in one locations, so there are very few places that actually work for what it is that Amazon needs.

                        So, you know, a smart negotiating strategy on the part of the city is to recognize that and say oh, you need to be here. You need New York, so what is it that you’re going to do to support this city, to help us alleviate affordable housing, the strain on the transportation system? I mean that’s the right way to go into that negotiation, instead of let me figure out how we can give away, you know, the public bank to a private entity.

                        Chris Mitchell:
                        So HQ2 … I mean this is certainly a national story, if for no other reason than the 200 some cities that gave all this data to Amazon, but it’s really part of this larger issue of how the economy is working or not working for communities across the country. You just did a Building Local Power talking about the dollar stores, and you released a report on the dollar stores. And I think it’s safe to say it’s swamped our Twitter feed. There’s been a lot of reaction. I was just at an event about preemption, and this guy comes up to me, and he’s like, “Hey, I’m from Louisiana, and I loved the dollar store report. Can you get me a connection to Stacy?” This thing went everywhere. So I’m curious if you can talk a little bit about the reaction to it, and now that it’s several weeks since it’s out, what you your thoughts are?
                        Stacy Mitchell:
                        I think you’re right. The story of Amazon going to the Washington, D.C. metro and New York metro is part of this story of as the economy increasingly concentrates and you have these superstar firms, you also have a few metros that are like the superstar metros. And I don’t want to gloss over inequality within those places. There are a lot of neighborhoods that are part of those cities that are really suffering and losing out. Then, across the country, the other part of the HQ2 story are all the places that have been left behind by this economy, that have had their economic foundations pulled out from under them, because mergers have caused the local plant or the local … The headquarters of the regional company that’s been swallowed up is now no longer there. The local bank is gone. The main street businesses are gone. The farming economy has been screwed because of agribusiness.

                        So it’s all these second tier cities, and rural areas and small towns are really struggling. And one of the things … At ILSR, we’ve been getting a lot of email for the last couple of years about dollar stores. People writing us and saying, “I’ve got Dollar General coming in, and we’re really concerned about what it’s going to do to the community, or maybe after it’s come in, the impacts that it’s having.” And so we decided this year to take a deep look at this. And Marie Donahue on our staff led our research on this and started looking at this question of dollar stores. Dollar stores had a … The two major chains, which are Dollar General and Dollar Tree, which owns Family Dollar, they had about 20,000 locations in 2011, at the end of the financial crisis, and today they have about 30,000 locations. And they have plans to grow to a total of 50,000 locations in the next few years. They’re expanding in places where they feel like that the economy is hopeless and that they can find sort of a permanent state of poverty and economic distress.

                        Chris Mitchell:
                        I’m just so eager on this point, and I’m curious, because I think I saw this reflected … I didn’t read the full Dollar General store — don’t fire me — report. But one of the things I saw, was that much like during the subprime crisis, we saw that banks were really treating non-white applicants, particularly African-American applicants, worse. And so even if you had a higher education, you were getting worse loan terms than a person who had a much lower education but had white skin. Now, one of the things I thought I saw was that Dollar General, the dollar store, specifically, were going into areas based more on … not just low income neighborhoods, but specifically higher incidences of other races, that people that are not white. African-Americans, Latino perhaps.
                        Stacy Mitchell:
                        That’s exactly right. So as we were doing this research, we got a call from a city councilor in Tulsa, Oklahoma, Vanessa Hall-Harper, and what we learned is that the city of Tulsa has over 50 dollar stores. And she told us that many of them are concentrated I her district, which is North Tulsa. It’s a predominantly African-American neighborhood.

                        And we’ve now … Since this report came out, we’ve just been inundated with email messages and Twitter messages, people telling their own dollar store stories from New Orleans, Detroit, rural Louisiana, and there’s this consistent pattern of these companies targeting areas based on race.

                        Chris Mitchell:
                        Right. I think it’s not just poverty. It’s not just low income. It’s powerlessness that they’re going after, because they want to trap those people into that cycle.
                        Stacy Mitchell:
                        There are two explanations that we’ve come up with for why that is, and we can’t prove that these are true, it’s just our guesses, kind of looking at the information. One is that dollar stores target areas that already lack grocery stores. And we know that banks are less likely to lend to African-American entrepreneurs. We know that supermarket chains often bypass black neighborhoods. And so those are places that are already a food desert, and so the dollar stores see an opportunity.

                        And then I think you’re right. I think another part of this may be that they think, “Well, these are areas that don’t have political power.” I mean, in Tulsa there are dollar stores that are sometimes just a few blocks away. I mean, they’re packing them into this district. And I wonder if these companies think, “Well, if we try to do that in a whiter neighborhood, we probably wouldn’t get away with it.” But there’s a lack of political power, at least that they perceive. In the case of Tulsa, the neighborhood has fought back, and they’ve now passed an ordinance that has become a model that cities across the country are looking at. So it’s great to have a story of some of that political power coming back.

                        John Farrell:
                        Stacy, to me it seems … I saw one of the threads on Twitter, and a response to this I thought was really striking, because they described what is happening with dollar stores as sort of the subprime economy, the permanent subprime economy, that the financial crisis was caused by banks creating all these tricky loans to extract wealth from lower income folks, for people of color, who had traditionally not had access to credit, thought they were finally getting a chance to get into the American dream, and got utterly screwed. And now, in its wake, there’s the subprime everything. First there’s the subprime mortgage, now there’s the subprime grocery store or the subprime retail store.

                        And so … You used the term food desert there, which is that one plausible explanation, right? They’re coming in where there hasn’t been a grocery store. But in some ways, it’s more like grocery deforestation, right? It’s Wall Street coming in and saying, essentially, “We’re going to eviscerate this neighborhood by not lending to the people that live there, to the entrepreneurs that would provide the full service grocery store, or any of the other kinds of services. Instead, we’re going to back these extractive companies that come in, build overwhelmingly to drive out other local merchants that would help retain some local wealth, and not even give people access to the basic things that most people expect in a neighborhood, like a grocery store or fresh produce.”

                        Stacy Mitchell:
                        That’s right. I mean, I think you’re absolutely right about the way that the capital system, the way that Wall Street works in terms of where capital is allocated. The fact that we don’t have as strong a local banking system as we used to have, that’s really driving a lot of these decisions. I also don’t think you can’t overlook Walmart’s role in all of this. I mean, Walmart has marched across the country and devastated a lot of the local food system, a lot of local grocery stores, a lot of local retail. Walmart now controls 25% of the food system in the country. One out of every four grocery dollars go to Walmart. And that’s meant that there are neighborhoods and small towns that have really nothing.

                        Walmart, in the region, has pulled all the dollars away for the most part and then left these places that are like a denuded landscape. It’s like an ecology. It’s like when you have a landscape that’s been compromised in some way. And then the dollar stores are like the invasive species that prey on that and just multiply and come in. And in doing so, they’re not just a symptom or a byproduct of the deeper problem, they’re also making it worse. They’re coming in in such numbers that they make it hard for new local businesses and grocers to get started.

                        And in some cases … I mean, they’re not just going into food deserts. As we talk about in the report, there are a lot of places where they’re going in and there is still a local grocer that managed to hang on through Walmart and all the rest of it, and the dollar store is the thing that tips them over and causes them to close. So you’re right, we’re increasingly living in this world that’s two different places. There’s Whole Foods land and then there’s dollar store land, and people don’t cross over very much. And if you live in Whole Foods land, it’s very hard to even see that there is a dollar store land.

                        So, my turn to ask the question. So the first one I have is … It’s the end of the year, and we’re in our big annual fundraising drive to try to scare up the donations that matter so much to us, and to what we’re able to do in 2019. So Chris, why do you think people who are listening to this should chip in to help ILSR?

                        Chris Mitchell:
                        Well, I have to say … We give recommendations at the of the show, traditionally, but I thought I’d plug a book that I think explains some of it. And it’s a book that we’ve talked about some internally, and I hear talked about all over the place. It’s called Winners Take All by Anand Giridharadas, and it explains how, I think, a lot of the big non-profit organizations … They’re really trying to figure out how to tackle the problems without changing the structure of the economy and things like that. And it’s a great explainer as to how this develops and how these people think, and that sort of a thing. And in my mind, it really solidified the importance of organizations like ours. And so I would just really encourage people to maybe read the Wikipedia summary of it, come to ilsr.or/donate, that’s archive.ilsr.org/donate, then buy the book from a local bookstore, read it, and give to us again in 2019.

                        But the fundamental effect is that it’s organizations like ours … I mean, in particularly, I would plug Stacy. There’s a reason we put so much emphasis on your work at the end of the year. There’s no one else doing the kinds of stuff you’re doing, and we need people to support that, to make sure that we can keep doing it.

                        John Farrell:
                        I would put it even just more specifically, in the same way that we started our conversation with Stacy about Amazon, asking the question about when did this hit the news. I think you can trace back, in some ways, the entire national conversation about why Amazon is a problem as a platform monopoly, as a company that wants to control all the methods of online commerce, to ILSR’s work. It was really Stacy doing the deep digging to understand how Amazon’s platform worked, what it meant for local merchants, how it undermined cities through its use of public subsidies for avoiding sales taxes, and how it uses its platform to co-opt merchants, to understand their products and their customers, and then to take them.

                        ILSR tries to do that in all of the different pieces of the economy, to help us understand, how is it that the players that are out there work? Who is it that has the power in the economy, and in what way are they trying to use that power to either advantage or disadvantage our communities? And so Stacy’s work does that with Amazon. Your work does that to help people understand that basic question of access to the digital economy. In my work, we talk about the fact that energy is this opportunity to transform to not only an environmentally benign way of doing business, but a way that communities can keep wealth in their economy.

                        Our Waste to Wealth program talks all about all of these inputs into our system that can be preserved, rather than burning them or throwing them away. And we fundamentally do that in a way to explain how there are these incumbent powers that have a way of doing things that may not be good for our economy, and how to understand not only why that might be harmful to us, but how we can solve that at the local level. And there’s just not a lot of other organizations that take that perspective.

                        Chris Mitchell:
                        I see Stacy leaning in, but I just wanted to say, that’s archive.ilsr.org/donate.
                        Stacy Mitchell:
                        Well, I want to say first, I appreciate all that praise. We have some great allies who’ve also been leading the way in grappling with what Amazon is all about…Out of helping people understand it, folks like The Open Markets Institute, Lina Khan who’s a fellow at Columbia right now, Scott Galloway. There’s some really good work being done out there and so it’s great company to be in. I think one of the things that I really appreciate about ILSR is that we not only do the big picture analysis about concentrated power across all these different sectors, but we’re on the ground helping communities do something about it right now, building broadband municipally on broadband networks, taking control of their energy systems from the big utilities and rethinking how they want to have electricity produced in the future and what that’s going to look like that actually meets local needs. Helping the city of Tulsa figure out a way to keep dollar stores from continuing to proliferate. Those are the kinds of practical stuff that we do every day at the same time that we’re moving these bigger ideas and it’s a great organization. So, islr.org/donate.

                        And you know, I think the one other thing I wanna say is that individual donations are really important. We are supported by foundation grants and those are incredible, but individual donations do make up a significant share of our funding. They’re the funding that gives us some flexibility to do some of the most important work that we do and those individual donations, they come in amounts of 50 dollars and 500 dollars and they really matter. So, really appreciate everyone who’s listening, if you can think about us as we head into the end of the year.

                        Chris Mitchell:
                        And I hope you find that to be somewhat useful in terms of the work that we’re doing, as well as a pitch for you to support our work. John, in the few minutes we have left, let’s do the abbreviated, super fast version of Utility 3.0. You’ve been working on this for several years. What’s changed and what do you expect maybe a little bit, in 2019, to be different in terms of how things have moved along as we transition from this monopoly command and control grid to one that’s more broken up and has more local control in it?
                        John Farrell:
                        What I think it’s really exciting that’s happening in the energy sector, Chris, is really that this is sort of the year of self-reliance and it’s all about batteries. So if you’re holding a smartphone, maybe you’re listening to this podcast in a smartphone, if you have a laptop, batteries are everywhere, all of a sudden. They are becoming an integral part of our digital economy and all of a sudden, they’re entering the electricity business in a way that’s super exciting because now, instead of just being able to produce some energy from solar panels on my house, which has become incredibly popular, almost a million customers in California have solar on their own rooftops for example. Now I have a way I can store that energy when the sun isn’t shining or I can store it to use it at a different time or I can simply be resilient to when the grid goes down. And so, it’s really changing the game.

                        This is the year where there were huge increases in people installing solar behind the meter, which is to say they installed it with a solar array, they were using it to store energy at home. It’s also interestingly enough, a year in which a major US Midwest utility just announced that it’s going carbon free by 2050. And these things are happening at the same time and in some interesting ways and creating some interesting tensions.

                        Chris Mitchell:
                        Right and one of the things I saw, is something that I think we predicted 15 years ago when we were in grad school maybe, maybe 12 years ago, I don’t remember, I’m getting old now I guess. But, there was this discussion then about the renewable energy standards or the renewable portfolio standards depending on what they were called at the time, but the idea that the major utilities would have to supply a certain amount of their electricity from renewable sources. And there was all these arguments, could it be met, was it too aggressive, would it destabilize the grid and it seems like all of the utilities are meeting them way ahead of time and they’re setting more aggressive goals now.
                        John Farrell:
                        Absolutely. I think what’s fascinating is the argument, 10 years ago for example, was can we actually transition the fuel sources of our electricity system, can we actually rely increasingly on renewable energy and the answer is, absolutely. At this point, you have several states where at least a quarter of the electricity that’s generated on an annual basis is coming from wind or coming from solar. The question we have now that we’re really starting to wrestle with, now 2018 is, do we still need big utilities in order to meet those ambitious goals or can we do it in a decentralized manner? Can we make these decisions at a city level, at a household level, at a community level? Because we have solar, because we have energy storage. One super exciting thing that we looked at this year was, we did this time lapse graphic of all the solar that was installed in California, and as I said before, it was almost a million, individual people deciding to install solar on their home or their business, over the past decade. And it’s enough capacity to replace like three nuclear power plants in terms of instantaneous power delivery.

                        It’s huge, but the bigger thing, even the amount of power that’s generated by all those installations, is the fact that all of these people made that decision, not because they want to be a little power plant operators, but because it made financial sense for them. And that’s really the crux of what’s happening all of a sudden in the energy business is, you have all of these individual actors are wanting to act together individually or collectively, they can make decisions that impact our energy system, but that aren’t done through this traditional top down planning method and that don’t rely on the incumbent utility.

                        Chris Mitchell:
                        John, one of the things that I’ve found in our work, is this sense coming out of Washington, DC and often state capitals, that you need to have one big entity. And even when we have successful small entities, the first question I get from people is, “Will is scale?” What you’re talking about here, these people who have made these decisions, that’s what’s changing things. It’s not convincing the utilities that they wanna go green, I mean I’m not gonna say that hasn’t had an impact, but fundamentally, what’s changing our utility system is all of the decisions that are made in a decentralized fashion. I see that in our broadband work, where the best networks in this nation are often built by municipalities or locally driven companies that have rooted in their communities. But I just feel like a lot of people, that obtain high power, they’re used to thinking this big way and they just cannot imagine change coming from lots of small actions.
                        John Farrell:
                        It’s really funny too because for 100 years at least, we’ve known that mass producing things, turning things into commodities, allowing people to make individual decisions is what makes stuff available to everybody, whether it’s for cars with a Model T and Henry Ford or whether if it’s batteries and smartphones and computers and computer chips or transistors. I mean all of these things that move our economy forward in the digital age, can be mass produced, but they don’t have to be all controlled by the same person. They can be purchased and installed at small scale. If solar panels … I have solar panels on my roof now, at 27 panels. It’s the same technology that you would have in an enormous power plant that would be built by a utility company. And for the batteries, the battery that I could put in the wall in my home for battery storage or the battery the utility could put at their substation is all made up of the same little cells. Except it’s thousands and thousands and millions and millions of them.

                        And the real difference is that, because we don’t have to deploy that capital in billion dollar chunks to accomplish good things in the energy sector, those decisions can be made by anybody. So you’re absolutely right, people have this notion like, “We can only make decisions if they’re big.” And especially in the energy sector, where we’re facing this climate crisis. People are like, “Well the only thing we can do is big things because this problem is so big.” Missing the fact that all of these little decisions often add up to faster reactions and more substantial steps towards solving the problem. And the perfect example of this is, in Minnesota right now, this utility company, this big utility it serves half the customers in the state, it said, “We’re going carbon free by 2050. We don’t totally know how we’re gonna do it, but we’re gonna do it.”

                        And the thing is, it’s a great commitment, I’m excited about it because it sort of helps set a standard in the public consciousness for what can happen. And yet at the same time, we’ve just installed hundreds of megawatts of solar in community solar arrays that are owned by third parties, that are subscribed to by tens of thousands of Minnesota residences and businesses and the utility had nothing to do with it. And so, people sort of miss that fact and unfortunately what’s gonna happen is that when the big player decides to make this commitment, they also have some big asks. They’re gonna be at the legislature this year saying, “Hey, in order to meet that goal that we set, we have these two big nuclear power plants, they’re getting kind of expensive to run. We’re gonna need to fix them up and we would like you to take the risk of fixing them up for us. It’s probably gonna be billions of dollars.”

                        And the worry that I have is because they made a big commitment that people see as important and because they’re a big player, we’re gonna give them a big handout instead of thinking about, how could we spend … Best spend, for example, five billion dollars on clean energy? Is it really to give a handout to the big guy or would we be better off investing it into all of the ways that small individuals or cities could make investments in clean energy?

                        Stacy Mitchell:
                        So that’s the work for 2019?
                        John Farrell:
                        It sure is
                        Chris Mitchell:
                        The deep irony of course is that the climate crisis is a pollution problem that comes from billions of non-point source pollution. I mean it’s literally one of the biggest problems we have to deal with and it doesn’t come from a single source. So I think people just, they don’t understand the power. They don’t think about it in those terms.
                        John Farrell:
                        No. Although ironically, the folks most responsible for it and who own most of the pollution are the very largest publicly traded companies that have invested deeply in fossil fuel infrastructure. Which is why even as this Midwest utility is making carbon free promises, they’re out there asking to buy a new natural gas power plant. Or they’re saying as part of this deal, “Well, we don’t wanna have to close any power plants early.” And so, the question is, okay, so if you’re gonna have to make these carbon commitments, are you essentially saying that we have to buy you off? Because in a market economy, in a capitalist economy, we often let the better solutions out compete the other ones. And so my question is always, let’s give this playing field a try, let’s see how else that we can solve these problems that doesn’t involve having to buy off the big player just because they’re big.
                        Chris Mitchell:
                        So, we’re gonna wrap up there, I think. We were gonna talk a little bit about a broadband topic, but let me encourage you instead to check out the broadband bits podcast that we did with our year end review because you’ll be able to hear Lisa Gonzalez, Katie Kienbaum and Jess Del Fiaco. Two voices who are new to our podcast talking about some of the things we saw over the course of a year and then, maybe people will have better sense of all the work that comes from the teams at ILSR rather than just those of us that happen to be at the head of them. So as we wrap up, we have a couple, maybe, closing comments, but we wanna wish everyone a Happy New Year and Happy Holidays, Merry Christmas, all that stuff. Hanukkah’s already passed, so we’re gonna leave that one out, I guess.
                        John Farrell:
                        What’s your New Year’s resolution?
                        Chris Mitchell:
                        I wanna be more daring. I think there’s a lot of potential. I think I played it too safe in 2018. I think there’s … People need to get out there and be a little bit more bold and recognize that there’s a massive hunger for better solutions. We have those and we need to find more ways of getting them out there. So I wanna try and be more bold in 2019.
                        Stacy Mitchell:
                        That’s great.
                        Chris Mitchell:
                        Thank you all. We’ll be back in 2019. There’s gonna be a lot of great stuff to talk about. There’s new research coming out, so please come back.
                        Stacy Mitchell:
                        Thanks to everyone who’s listened.

                        Thank you for tuning into this episode of, Building Local Power. You can find links to what we discussed today by going to our website, archive.ilsr.org. That’s archive.ilsr.org. While you’re there, please consider supporting our work with a donation. And if you enjoy this podcast, please consider sharing it with your friends. This show is produced by, Lisa Gonzalez, Zach Freed and Hibba Meraay. Our theme music is, Funk Interlude by, Dysfunctional. For the Institute for Local Self Reliance, I’m Stacy Mitchell, joined today by John Farrell and Chris Mitchell. I hope you’ll join us again in two weeks with the next episode of Building Local Power.

                        Lisa Gonzalez
                        An earlier version of this podcast referenced maps of dollar stores in Tulsa that misrepresented the relative strength of the correlation between dollar stores and household income. These maps have been updated in our feature on dollar stores, and the podcast audio and transcript have been edited to correct this error.

                         

                        Correction: An earlier version of this podcast referenced maps of dollar stores in Tulsa that misrepresented the relative strength of the correlation between dollar stores and household income. These maps have been updated in our feature on dollar stores, and the podcast audio and transcript have been edited to correct this error.

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                        Audio Credit: Funk Interlude by Dysfunction_AL Ft: Fourstones – Scomber (Bonus Track). Copyright 2016 Licensed under a Creative Commons Attribution Noncommercial (3.0) license.

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                        38 min
                      8. How Community Composting Disrupts Big Waste

                        Terry Craghead, Founder of Fertile Ground

                        In this episode, host Brenda Platt speaks with Terry Craghead. Terry founded Fertile Ground, a worker-owned cooperative collecting and composting food scraps on a small scale in Oklahoma City. They discuss the power of community composting to transform the monopolized waste system and build up the local economy by reducing food waste, creating jobs, and combatting climate change.

                        Terry got started in his own backyard by composting scraps from his garden and using the resulting soil to grow food with neighbors in a community garden. Today, Fertile Ground has nine worker-owners and is part of the growing community composter movement across the country.

                        Brenda and Terry also discuss worker-owned cooperatives and how setting up a business as a cooperative allows the workers to earn a livable wage, build wealth, and cycle money back into their local community.

                        Listen in to hear how community composters are playing a vital role in building up their local economies!

                        “I think there’s potential here for local, community scale folks to disrupt the waste industry. When we accumulate waste in these giant landfills, giant incinerators, we’re really creating a disaster. We want to teach people how to compost in their own backyards. We want to teach people that they can compost at their community garden, at their neighborhood schools, at their workplaces, hospitals, universities.”

                        Related Resources

                        1. Fertile Ground
                        2. ILSR Resources for Community Composters
                        3. Monopoly and the U.S. Waste Knot
                        4. US Federation of Worker Cooperatives
                        5. Democracy at Work Institute
                        6. Industrial Cooperative Association
                        7. Shared Capital Cooperative
                        8. Local Enterprise Assistance Fund
                        9. Crowdfund Main Street
                        10. Transcript

                          Brenda Platt:
                          Hello and welcome to Building Local Power, a podcast from the Institute for Local Self-Reliance. I’m Brenda Platt, the director ILSR’s Composting for Community Initiative, and I’m super excited for you to hear this week’s podcast. We’ll be discussing an option for building local power that can address a wide range of problems: soil fertility, soil erosion, food waste, food insecurity, climate destruction, and the threat of corporate concentration. This option can address all these issues while at the same time creating local jobs and enterprises that build community. Well, what could this one solution be you might ask? If you guessed compost or more specifically community-oriented or community-scale composting, you are right. Our guest this week is Terry Craighead, a founding member of Fertile Ground, a worker owned cooperative collecting and composting food scraps on a small scale in Oklahoma City. He oversees day to day operations in the cooperative. Terry, welcome.
                          Terry Craghead:
                          Hi, Brenda. Thanks for having me.
                          Brenda Platt:
                          I am so excited to talk to you today because it’s rare to find a single solution that can address so many issues at once. As we know, compost is a soil amendment often called black gold and can be made from a range of waste materials. As we get started in this discussion, tell us a little bit about Fertile Ground and what services you offer?
                          Terry Craghead:
                          Fertile Ground is a worker owned cooperative here in Oklahoma City, Oklahoma and we provide a series of environmentally beneficial services. Primarily, our flagship service is residential composting service. We do a bike-powered compost service and we do a truck-powered service for folks who are outside of the downtown area. We provide commercial composting for businesses, for offices with break rooms, cafeterias, residential and commercial recycling for apartments and multifamily buildings that don’t have recycling, for businesses that have small volume needs of recycling. Then we also do Zero Waste Events where we help plan, strategize events for small private events and big public events, how to reduce the waste that’s created by those events.
                          Brenda Platt:
                          Can you tell us a little bit more about the composting part of your business? How are you composting and what materials in particular you’re collecting for composting?
                          Terry Craghead:
                          We have two different systems, we have a residential composting service and so we have, like I mentioned, a bike-powered service where our workers ride up to our customer’s homes. A customer has set out their bucket of food scraps and in our residential service, we stick to backyard composting Best Management Practices. We ask for vegetables, fruit scraps, coffee grounds. Things that aren’t going to cause a problem composting at a community garden. Then we take those food scraps, and we ride on down the street to our community garden where we mix the food scraps from our customers in with the composting efforts going on at the community garden. The community garden gets to keep part of that compost and then we get part of that compost to give back to our customers. Our customers literally contribute to the composting efforts of the community garden and thus contribute to the community garden.
                          Brenda Platt:
                          I love that you’re collecting food scraps from the local community and composting it at local community gardens, and then those gardens are using the finished compost to grow more vegetables and more food for people. It’s really cycling those community assets within your local community. How did you get started in this field of composting and how did you decide to do it so locally?
                          Terry Craghead:
                          I literally got started in my backyard. I wanted to grow my own food for my family and I thought, “Wow, why am I going to go buy fertilizers when I have these resources that I’m throwing away in my trash sending to the landfill.” I just simultaneous started a garden in my backyard and started a composting pile in my backyard and I just started collecting my food waste while I was planting my tomatoes. Then over time I started adding that into my garden, then I started to get curious, “Are there others in my community that are gardening? I’d like to find a community garden.” I reached out to a friend and was like, “Hey, I think I want to start a community garden here in our neighborhood.” Well, just a week or two later, she was contacted by another person who wanted to do the same thing.

                          We ended up meeting up and we organized what became CommonWealth Urban Farms, which was this hybrid volunteer nonprofit community urban farm where volunteers would come every Saturday. We would compost together, learn how to grow food together, and it was really that experience that I saw the amount of waste that was produced. We had a partnership with one local grocery store and we had volunteers that would come three days a week and we would process food waste from this local grocery store. Just seeing that amount of waste was really the impetus for low ground I thought, “Wow, this is so much waste from one store. We should knock on doors of restaurants and see if we can organize something to divert more of this food waste from the landfill and create soil that we could grow good food in.”

                          Brenda Platt:
                          Yeah, I mean it’s awesome that you partnered with what is it? CommonWealth Urban Farm and really harnessing the power initially of volunteers to make this happen, and then it transitioned into an enterprise with paid workers. Before we get into the business structure of Fertile Ground, which I think people will be interested in hearing, let’s just talk first about the benefits of compost to local soils. What does compost offer and why is it better than say conventional fertilizers?
                          Terry Craghead:
                          Yeah, sure. Compost has a multitude of benefits. When you add it to the soil, it improves the soil structure, porosity, density, making a better plant root environment. It increases the infiltration and permeability of heavy soils thus reducing erosion and run off. It improves the water holding capacity for sandy soils, so it acts like a sponge. It supplies a variety of macro and micro nutrients for plants, a slow release fertilizer. It also helps stabilize pHs that are out of balance, whether that’s high or low. It improves the Cation Exchange Capacity of soils, which allows plants to take up nutrients at a better rate. Like a probiotic, one of the prime benefits is that compost supplies lots and lots of beneficial microorganisms to the soil. And those organisms have a symbiotic relationship with your plants. Composting is like feeding the soil and healthy soil makes healthy plants.

                          Then it increases the organic matter of your soil, so over time composting, adding it to your soil, adding it to your yard helps sequester carbon from the atmosphere by feeding those microorganisms in the soil. It’s like one thing that’s so simple that we can do that has so many benefits includes water quality, air quality, soil quality, plant quality or human health. It’s just kind of a no-brainer that we’re not doing this at a bigger level than we are.

                          Brenda Platt:
                          Yeah, no kidding. I mean, compost certainly earns its nickname as black gold and I will say your name of your business, Fertile Ground, is obviously a spot on name. One of the products I know that you produce is compost filter socks which are not designed to be added to soil to amend it. Tell us a little bit about what that product is?
                          Terry Craghead:
                          Yeah, sure. So compost filter socks are a sediment in erosion control, BMP, Best Management Practice, and think of a snake that’s eight inches, nine inches in diameter, maybe 20 feet long, 200 feet long. We fill the snake with it, we use durable fabric and we fill this with overs of the composting process and these snakes act as a three-dimensional filter when you put them around construction sites. Anytime you disturb the soil, you’re going to have erosion and so what these socks do is they catch those soil particles, nutrients, pollutants, hydrocarbons that are on site. If somebody is developing a neighborhood or building a road, and it filters those things out of the storm water thus creating better rivers, creeks, streams, and lakes here in Oklahoma.
                          Brenda Platt:
                          Yeah, and I’ll just add that compost filter socks are one of the many applications for compost in the growing “green infrastructure market.” In contrast, gray infrastructure, as pipes, concrete ditches, detention palms, etc. Green infrastructure, on the other hand, harnesses nature to control stormwater runoff. As Terry you were just describing, it includes, rain gardens, bioswales, green roofs, and the like. There are at least two dozen compost-based products that are considered Best Management Practices for controlling stormwater runoff and soil erosion. We have compost engineered soil, compost blankets for stabilization of steep banks, embankments. When I think one of the coolest applications for compost is in vegetative retaining walls where you basically take these socks you were describing, stack them on top of each other and create a retaining wall.

                          Often that compost has the vegetative seed in it, which then grows and becomes this kind of vegetative infrastructure. These products are so cool and I love that a lot of what fertile ground is doing is partnering with other groups. Can you talk a little bit about your many partnerships and collaborators? We found that, surprise, small-scale composters are rooted in their community and they have so many community relationships and partnerships.

                          Terry Craghead:
                          Gosh, we would not exist without our community. From the ground level when we first started, we partnered with Commonwealth Urban Farms and they were closely connected to a nonprofit youth group that taught kids organic gardening skills, they’re called Closer to Earth. We partner with 612, which is a local art space, event space, education space focuses on sustainability. We partner with churches, Joe – Mennonite Church, Mosaic, United Methodist, 8th Street Nazarene Church, and those folks allow their community members to bring their compost to their church. And then we collect that compost and take it to local community sites. We have our medium-scale composter is Minick Materials here in Oklahoma City, they’ve been a big supporter and encourager of growing the composting infrastructure here in Oklahoma.

                          There who we bring our commercial scale compost to, we drop that material off with them and then they use that screen, that compost and sell that in the community. We have partnerships with local peace and social justice groups, we do Zero Waste Events for those folks. There are so many partnerships and friendships and people that we support. The local businesses that we serve in our composting service. When we’re on our social media feed, we’re often sharing things that they’ve got going on, but when we’re buying gifts for our families, we’re stopping off at Black Scintilla and supporting local businesses. Buying local foods from Urban Agrarian, Oklahoma Food Cooperative, other local food producers here in Oklahoma City to try to grow this local economy.

                          Brenda Platt:
                          Yeah, and this is a perfect example of growing local power where you’re supporting the community on and running a local business that’s employing local workers and keeping those assets within your local community. Let’s talk about big waste corporations versus community enterprises like yours. What people may not understand is what typically happens is we’re collecting food waste mixed with garbage. It’s collected very often by a large hauler, even if it’s collected by your local community or town or local government, it ends up going to a landfill or a trash and center that’s owned by a huge waste corporation. What happens in Oklahoma City with garbage that you’re not collecting separated?
                          Terry Craghead:
                          Yeah, so almost all of the waste in Oklahoma City, 98% of the waste goes to the landfill. When food waste is buried in a landfill, it is not able to decompose naturally with oxygen the way it does in nature. This anaerobic decomposition creates methane and methane is 20 to 30 times more heat trapping than carbon dioxide which is the natural byproduct of the composition. We’re basically enriching these giant waste corporations to destroy our environment through creating these giant methane pollutants and they talk about, “Oh, well, we can capture some of the gas, they can capture a very small percentage of the methane gas that’s produced in the landfill.” In Oklahoma, it’s virtually non-existent. We have one landfill that tries to capture some gas but it’s like maybe 10% of the gas that’s produced in the landfill. Yeah, we’re just we’re creating these giant methane machines by burying all of this food waste.
                          Brenda Platt:
                          Yeah, and I’m glad you mentioned the benefits of diverting food waste from landfills to combating changing climate. Landfills are a top source of methane that you mentioned and when we do the opposite, when we convert food waste into compost and add it to soils, it’s a win-win for the climate because organic matter, increasing organic matter and soils is now recognized as one of the most important things we can do for stemming climate change in the short term. According to the UN, Restoring the world’s soils. Can we move 51 gigatons of carbon from the atmosphere? You’d think with all these benefits, we’d be composting so much more. Why do you think we aren’t doing more composting?
                          Terry Craghead:
                          I think that places like Oklahoma, where there’s still low visibility, people just don’t think about waste. They think about things that are urgent in their life, the things that have to get done, or waste is something, you know, throw it in the trash and it’s gone. It’s out of sight, out of mind. So, unless it becomes a problem, unless your trash can is overflowing or it’s stinking, people just don’t tend to think through, “What happens?” The whole concept of away. People don’t think about what happens to their waste, and what it means for their children and grandchildren, that they’re not considering what happens to that. So, I think it’s just a mindset that people have to be made aware of. Hey, there are consequences of our actions, and if we can think through a smarter way of dealing with our waste now, our kids will have a better environment, a better quality of life down the road.
                          Brenda Platt:
                          Yeah, I mean, couldn’t agree more with that sentiment, and one beauty of composting is that there’s no one way to do it. It can be small scale, large scale, and everything in between. A local government can decide it’s going to divert food scraps and start with home composting, or community scale, or starting a training program to teach community gardeners how to compost. They don’t have to start from the get go with rolling out a curbside collection program and offering it to every household to get on the path to diverting food scraps from landfills. One of the things I love about what you’re doing is that you’re demonstrating that independent community scale composters like Fertile Ground can roll out these programs, get customers, get clients, make the case, and demonstrate what’s possible in a part of the country that has historically really low recycling rates, and really low landfill disposal cost as well. That you’re able to make a business out of this is quite amazing.
                          Terry Craghead:
                          Yeah, yeah. It’s definitely been a challenge. It’s something we knew that we were gonna have to spend some time, some years educating the public about the need for our services, but we’ve kind of found a community of folks that are cheering us on and making it more visible, and we started to figure out some strategies. The PR benefits of composting that a lot of people think of when they’re marketing services, I was real big on. In Oklahoma City, that’s not a big draw. We’re starting to see some more folks that value sustainability, but we’re also starting to find some strategies of cost savings by partnering with other local haulers, compared to just people relying on the big waste management companies.
                          Brenda Platt:
                          Yeah, you know one of the things I think is really interesting about your enterprise is the part that you’re using, the bike powered collection, and I would think if I was one of your residential customers, I would be like, “Oh my God, somebody is coming to my house to pick up my food scraps on a bike. That is the coolest thing. Yes, sign me up.” Can you talk a little bit about how that offering service with bikes and trailers is helping get people excited about what you’re doing? Is that a draw?
                          Terry Craghead:
                          Oh yeah, definitely. People see our little bike and trailer riding through the neighborhood, riding through town, and they see the Fertile Ground logo. We call the bike the Dirt Bike, and people are just intrigued like, “What is that? Why is that person hauling a barrel on the back of a bike?” Something that people visually go to and they see. Most people, initially, are like, “Why on Earth, for one, are you collecting food scraps? Why are you doing it on a bike?” When we explain it and we start to talk about it it’s like, “Oh, that makes so much more sense. You’re reducing my carbon footprint by dealing with my food waste responsibly, and then you’re also not throwing a bunch of carbon emissions into the air by using a bike, and you’re staying healthy by giving your riders a workout.” It makes a lot of sense in addition to just being a cool piece of what we’re doing.
                          Brenda Platt:
                          Yeah, I can’t think of anything more inherently distributed or local than a bike powered enterprise. Do you see Fertile Ground as playing a role in breaking the big waste monopoly over the trash system? Is that something you think about or that plays into your mission at all?
                          Terry Craghead:
                          Most definitely, yeah. Fertile Ground really, as a concept, the business name is there’s potential here for community benefit, for people working together to create something that disrupts the destructive status quo. I think there’s potential here for local, community scale folks to disrupt the waste industry. When we accumulate waste in these giant landfills, giant compost facilities, giant incinerators, we’re really creating a disaster. While it seems like, “Wow, there’s a lot of benefits. This is efficient,” what happens when those things go wrong? When your compost facility gets shut down for environmental concerns? Then there’s nowhere to take the compost if you’ve set up a hauling infrastructure. We want to teach people how to compost in their own backyards. We want to teach people that they can compost at their community garden, at their neighborhood schools, at their workplaces, hospitals, universities. We want folks to watch what they’re wasting. Don’t waste as much of your food. Weigh, measure, pay attention. Reduce the amount of food waste that you’re creating.

                          Give it away to a food panty, to a homeless shelter. Find community partnerships. There are people who are hungry, who will eat good food if we can just think a little bit farther ahead. There are Good Samaritan laws in place that protect folks who want to do good, who want to make sure hungry people are eating. All of these things work together, this big circular system of reducing waste, protecting the environment, building community, feeding people, creating local jobs. They all work together, and I think it’s a much more resilient way of building our communities, and of doing life together.

                          Brenda Platt:
                          Absolutely. Big waste dominates every aspect of solid waste in this country. The four top consolidated companies earn an astounding $30 billion of the $70 billion waste sector. I think that those companies own or control something like three quarters of the permeative landfill capacity in major metropolitan areas. So, what folks I think would be interested in understanding is that instead of giving our waste, our community resources, to these big waste corporations when we do instead, Terry, what you were just describing, keep it local, reduce waste, rescue edible food, do it on a distributed scale, on bikes, still using maybe some other trucks as you described, but send it to a network of community gardens, urban farms. Produce food that you can now sell back to your local restaurants. I mean, that is what we’re talking about. That is a resilient community. That’s a more resilient soils. That’s creating more jobs, keeping it local, and it’s not that hard.

                          There are no technology obstacles to doing this. It’s really getting your local community to agree that you want to move towards a zero waste economy, or you want to recover food scraps. You want to do it in a distributed way. There’s a hierarchy, a priority of the things you can do. I think you’re leading the way in Oklahoma on how this can happen, and I hope you can spur many other businesses to do the same throughout your area and city, and hopefully you’ll be able to get your city on board with supporting your efforts. We have to take a break now. To learn more about Fertile Ground, please check out its website at FertileGroundOK.coop. When we come back we’ll dive into why Fertile Ground’s business is structured as a worker owned cooperative, and the benefits of such coops.

                          Thank you so much for tuning into this episode of Building Local Power. This is the part of a podcast where you usually hear an ad, but that’s not how it works on ISLR’s podcast. We are a national organization that supports local economies, which means we don’t accept national advertising. Please consider making a donation to ILSR. Not only does your support underwrite this podcast, but it also helps us produce the resources and research we make available for free on our website, like the one we’re discussing today. Please take a minute and go to ILSR.org/donate. Any amount is welcome, and sincerely appreciated. That’s ILSR.org/donate. Thank you so much, and now, back to our discussion with Terry Craghead of Fertile Ground.

                          So, Fertile Ground is organized as a worker owned cooperative. Explain to our listeners what a cooperative is, and specifically, what’s a worker owned cooperative?

                          Terry Craghead:
                          Lots of folks are familiar with coops that they interact with in their daily lives. There are credit unions, there are housing cooperatives. All sorts of cooperatives. So, a cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. So, a worker coop is a values driven business that puts worker and community benefit at the core of its purpose. The two central characteristics of a worker coop are that the workers own the business, and they participate in the financial success on the basis of their labor contribution to the coop, and workers have representation on and vote for the board of directors. The workers manage the coop. There are different styles of worker coop management. Some elect management through their board, others are completely self directed. No hierarchy in their management structure. There’s lots of different ways of doing that.
                          Brenda Platt:
                          Terry, how many worker owners does Fertile Ground have?
                          Terry Craghead:
                          Yes, so there are nine worker owners in our group.
                          Brenda Platt:
                          Do the worker owners have specific jobs? I mean, is somebody in charge of fund raising or financials, is somebody else in charge of marketing? How does that work?
                          Terry Craghead:
                          We’ve had to build job descriptions organically and as we had the ability. We really started with no financing. We just started with our sweat equity, but we’ve created jobs now for drivers, for bike haulers, we have one of our members that does our office management, bookkeeping, accounts payable, receivable. Other members are our social media experts. They focus on getting the word out about what we do and our partnerships in the community, and we have people that do sales, that knock on doors for businesses. People that are strategizing how to grow the business.
                          Brenda Platt:
                          Do your workers earn a livable wage?
                          Terry Craghead:
                          Yeah, that’s really important to us. There is a universal living wage calculator you can find online. For us, we’ve decided in this stage of our growth, we’re gonna pay our workers $13 dollars an hour. That is not a flat, set rate. I assume over time as we get more skilled folks in the coop, there might be some pay discrepancy, if we have to hire outside folks that have a specialization, but worker coops in general, they try to keep those wage differences between the highest and the lowest paid workers to a minimum. So, the average business in America, a corporation, I think the top CEOs get paid something like … it’s 271 to one, is the wage gap. In a worker coop, often three to one is the top end of pay inequality there is. For us right now, we’re all getting paid $13 an hour.
                          Brenda Platt:
                          How has being a worker coop helped Fertile Ground?
                          Terry Craghead:
                          There have been a lot of benefits. Just right of the bat, we have distributed responsibility. It’s not up to one founder or two founders to do all of the work and to build the business on their back. We’re able to distribute the workload to our worker owners, who are not just in it for a paycheck. They own the business, and so they have responsibilities to help grow the business. So, distributed responsibility has been huge. We’ve been able to finance some of our capital costs through sweat equity, when workers come in. If they’re able, we allow folks to pay off their membership fee upfront, but they could also work that off over a period of years, but those payments, that sweat equity has helped us to grow our capital when we didn’t just have cash in the bank. We’ve had flexible roles. People are able to switch from driving the bike route, to the commercial route, to helping with events. As our folks have gone through different stages of life, having children, going through a sickness, taking a sabbatical, we’re able to shift and change our roles as we need to.

                          We have a bigger network of supporters as a coop. When you just have one person who’s the business owner, they have their network of friends and family that support them, but being a group of nine people now we have a broader network of support when we’re trying to fundraise, build business. We have a lot of people supporting us, and then just the synergy of working in a group that’s building something bigger, that’s working towards a goal. The interstitial characteristics of people. When my motivation is done, I’ve got a teammate, a partner. They it’s like they are motivated, and it’s not all just about what’s going on in my personal life. I have the benefit of a team that can help build me and lift me up, and then likewise, I help build them up and get them going. That’s just a few of the benefits, but those are a few of the things that just come to my mind immediately.

                          Brenda Platt:
                          You mentioned paying off membership fees. Can you just describe what you mean by that?
                          Terry Craghead:
                          There are a lot of benefits of being in a co-op, but there’s also responsibilities, and so worker co-ops want to ensure that the worker-owners that share in the benefits also share in the cost and responsibilities. So, one of the things is having skin in the game. Having something to lose in the co-op gives you more impetus to struggle and to push for the survival of the organization, if you have something to lose. It also helps with capital as you’re trying to buy equipment.

                          We have a member fee of $2000 to join Fertile Ground, and we have a process for folks who join. You have to work with us for six months. You have to go through training of worker-ownership, what does it mean to be a worker-owner, and then set up some kind of payment plan for your membership share. Maybe you don’t have $2000 upfront, but you could set up a payment plan and pay that over a period of four years, and then you’re voted on by the members in the co-op, “Is this going to fit? Is this going to work?” Then, yeah, that’s kind of how folks become members of our co-op.

                          Brenda Platt:
                          Very cool. One of the things I think is really amazing is how fast community-scale, community-oriented composting, is growing in the country, but we’re also seeing more and more interest in worker-owned cooperative like yours. In addition to Fertile Ground, we’ve been tracking CERO, which is near Boston, and they describe themselves as a bilingual team of worker-owners that are connected with Boston’s working class and communities of color. Also, in Massachusetts there’s the Pedal People Cooperative, and I know they maintain that environmental sustainability is not possible without the social equity.

                          In other parts of the country, like in Flagstaff, Arizona, there’s Roots Composting, and that’s another whose philosophy is really rooted, pun intended maybe, not just making a profit but also providing an array of community benefits while making compost or soil amendments. It’s really been exciting to see the growth in this kind of business-entity structure, and the benefits that brings, not only to the scale of their community composting enterprise, but also the benefits it brings to the community in terms of community wealth. That’s one thing I want to ask you about is how does your work or cooperative differ in terms of the flow of money or building wealth in the community compared to a conventional business?

                          Terry Craghead:
                          Right, so in a conventional business profits are distributed based on the amount of money that you’ve put into the entity, the organization, but in a worker co-op, not only are people earning a wage, but people are sharing in the profits of the business. So, we’re not investing in a distant stock market. We’re not sending our money offshore. We’re investing in our neighborhoods, in our communities. We’re shopping locally. Our members are also able to build wealth. They can maintain and grow their savings through keeping the surplus that we build inside the cooperative through their internal capital accounts. So, really well developed co-ops in other parts of the world, they’ve developed retirement plans and systems, college-savings plans just internally with co-op members saving the surplus, their dividends, within the co-op so that they can decide to pull out some money to take a vacation once in a while, save for their child’s college, save for their retirement. But, in general, folks that work in worker co-ops are not sending their money far away. They’re investing that money in the local economy.
                          Brenda Platt:
                          That’s right, and that’s along the line of other independently-scaled enterprises and businesses. That’s one of the benefits of supporting local businesses is you’re keeping your dollars and resources, reinvesting in your local community, rather than sending it to the headquarters of national conglomerates. For those wanting to learn more about worker-owned cooperatives, do you have some favorite resources that you like to share?
                          Terry Craghead:
                          We’re a member of the US Federation of Worker Cooperatives, so you can check them out. Their site is usworker.coop, but they provide a lot of benefits to worker co-ops: connections, they do annual conferences, they help with strategizing, finding financing. Just a great organization that’s building the worker co-op movement around the country. Some educational resources: The Democracy at Work Institute is a sister organization with the US Federation, and they are at institute.coop. The Industrial Cooperative Association, you can go to their website, the ica-group.org. They have a lot of great educational PDFs that you can download — how to set up your internal capital accounts. Just some really specific information that helped us out a lot.

                          There are financing resources for worker co-ops. There is a National Cooperative Lending Organization that co-ops from around the country are members of, and they invest their money into Shared Capital Cooperative, and then Shared Capital then turns around and loans money to cooperatives that are maybe start ups or doing an expansion or doing a conversion, where employees are buying the business from their aging business owner who’s retiring. Then the workers can own and run the business. Shared Capital is an excellent resource. Check them out, sharedcapital.coop. There’s Local Enterprise Assistance Fund, the Cooperative Fund of New England, the Working World. The Catholic Campaign for Human Development, they do grants around the country for worker co-ops. They have local grants, and then they have big national grants. We’ve gotten a lot of support through the local Catholic campaign here in Oklahoma City through Catholic charities.

                          There’re also crowdfunding platforms. There’s a lending platform that we’ve used in the past called Kiva U.S., and so you can borrow up to $10,000 in microloans at a 0% interest rate from people in your community and all around the world. Then there’s also a new crowdfunding equity platform, so folks from all over the world can invest in your business, and you can set up non-worker-owner class of shares in your company. One way of doing it, a preferred stock so that the workers retain control and ownership of the business, but folks could maybe pull their money out of the stock market, and instead of investing and hoping for a return of 10% on their investment, they can invest in this community-oriented enterprise, and they’re willing to accept maybe 3% return on their investment. They don’t get a say in the major decisions of the co-op, but they know that their money is going to something good. That equity crowdfunding platform is called Crowdfund Main Street, so check them out. Those are a few of the things I would point people to

                          Brenda Platt:
                          Those are great resources. Thank you for sharing those. You shared tips and these resources for folks wanting to consider becoming a worker-owned cooperative. What about tips for those wanting to start a community-scaled composting business like yours, especially in areas of the country with low landfill fees and little recycling? Any tips there?
                          Terry Craghead:
                          Yeah, sure, I would just say to start small, make a plan, look for adequate financing, but there’s a market for this. People are interested in not just dollars and cents. There’s a growing number of people, especially in urban areas, who want to do the right thing, and they want to avoid sending their waste to the landfills. Yeah, I would say start small, dig into your community, find out, “Are there any local organizations that would support our work that we can partner with?” Start showing up to events. Setting up zero-waste events where you can maybe trade for table space while you’re also collecting the compost at the event. Those are just a few ways to get the word out there, and to build partnerships, and build a community of support around your organization.
                          Brenda Platt:
                          Here at ILSR, we also have lots of resources on community-scale composting. We facilitate the Community Composter Coalition, and organize a National Cultivating Community Composting Forum, and we have a series of webinars, and a Google group, and various guides. So, check out our resources as well.
                          Terry Craghead:
                          I would be remiss to point out that ILSR has an excellent community-composting support environment. They have the Community Compost Coalition, where you can join webinars, learn about bike-powered composting, entity structures. They also host the Cultivating Community Composting Forum. Last year, that was my first time to attend the forum, and it was so helpful to me, other community scale composters doing what I’m doing all around the country. Really encouraged me, and sent me home in high spirits to keep going and sharing what I learned with our team here in Oklahoma City. Then they’ve also made this Growing Local Fertility Guide a few years ago. It’s just like case studies full of like what different people are doing around the country, different organizations are doing, to compost and keep compost local.
                          Brenda Platt:
                          Well, thanks, Terry, for that plug. Really appreciate that. Is there anything else that you would like to share, or a question I haven’t asked you yet?
                          Terry Craghead:
                          If you see a problem, find some friends that can help you solve the problem. We all have our own locus of control. We’re not powerless to change our situation, we can start in our backyard by growing our own food and composting, and just reach out and meet other people who share the same values that you have because you really can make a difference, but you have to start with where you are.
                          Brenda Platt:
                          That’s right, and Fertile Ground is just one of many enterprises and organizations from coast-to-coast doing work like this. That’s all the time we have today. Thank you for joining us today, Terry. Really appreciate it. For our listeners, if you weren’t convinced before to compost, we hope you are now. Starve a landfill and a trash incinerator. Feed the soil. Feed the community. Create dignified jobs in community-benefit enterprises. Save the climate and the planet — compost. Thank all of you for tuning in to this episode of the Building Local Power Podcast from the Institute for Local Self-Reliance. You can find the links we discussed today at archive.ilsr.org and clicking on the show page for this episode. That’s archive.ilsr.org. While you’re there you can sign up for one of her many newsletters, and connect with us on social media.

                          Finally, you can help us out with a gift that helps produce this very broadcast, gets us great guests like Terry Craighead, and helps us provide original research and technical assistance. Once again, please help us out by rating this broadcast and sharing it with your friends on iTunes, or wherever you find your podcast. This show is produced by Lisa Gonzales and Hibba Meraay, our Communications Manager. Our theme music is Funk Interlude by Dysfunction_AL. For the Institute for Local Self-Reliance, I am Brenda Platt, and I hope you join us again in two weeks for the next episode of Building Local Power.

                           

                          Like this episode? Please help us reach a wider audience by rating Building Local Power on iTunes or wherever you find your podcasts. And please become a subscriber! If you missed our previous episodes make sure to bookmark our Building Local Power Podcast Homepage.

                          If you have show ideas or comments, please email us at [email protected]. Also, join the conversation by talking about #BuildingLocalPower on Twitter and Facebook!

                           

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                          Photo Credit: Ben_Kerckx via Pixabay

                          Audio Credit: Funk Interlude by Dysfunction_AL Ft: Fourstones – Scomber (Bonus Track). Copyright 2016 Licensed under a Creative Commons Attribution Noncommercial (3.0) license.

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                          43 min
                        11. How Phoenix Became an Unlikely Champion of Local Business

                          Kimber Lanning, Founder of Local First Arizona

                          In this episode, host Stacy Mitchell speaks with Kimber Lanning, founder of Local First Arizona. A seasoned entrepreneur and community development expert, Kimber has made it her life’s mission to cultivate self-reliant communities. Her work focuses on implementing systems and policies to ensure a level playing field for entrepreneurs.

                          Currently only 7% of Arizona’s total deposits are in Arizona-owned banks and credit unions, well below the national average. Kimber started the “Move Your Money” campaign to encourage cities, businesses and individuals in Arizona to bank with local banks. Stacy and Kimber discuss how crucial access to credit is for small businesses and how community banks play an important role in providing that credit.

                          Kimber’s record store.

                          They also discuss land use policies and Phoenix’s innovative approach to turning vacant buildings into great spaces for local businesses. Thanks to shifts in zoning policy, more than 125 new businesses have moved into and renovated formerly blighted and abandoned buildings in Phoenix. Local First Arizona built a strong case for preserving, rather than tearing down, older building stock, in part by showing how historic mixed use areas provide a better environment for local entrepreneurs than new development. Because of their efforts, Phoenix has the most effective adaptive reuse program in the country.

                          Kimber also explains how Phoenix’s government decided to spend no money with Amazon — in contrast to many cities that have turned over much of their procurement to the online giant. Instead, Local First has built a database of local business to help Arizona cities spend their money locally.

                          Listen in to hear more about how Arizona First is leveling the playing field for small businesses and how other states can follow suit!

                          We aren’t going to put our money into a company that extracts wealth from our communities. We are going to invest in the companies that are here, investing in our future together with a shared vision.

                           

                          Related Resources

                          1. Local First Arizona
                          2. Older, Smaller, Better Report from Preservation Green Lab
                          3. Adaptive Reuse of Commercial Buildings
                          4. Report: Amazon’s Next Frontier: Your City’s Purchasing
                          5. Guide to Policy Tools that Expand Opportunity for Independent Businesses
                          6. Local Policy Matters: How to Grow Independent Businesses in Your City
                          7. Winners Take All by Anand Giridharadas
                          8. Transcript

                            Stacy Mitchell:
                            Hello and welcome to Building Local Power. I’m Stacy Mitchell of the Institute for Local Self-Reliance. Today on the show we have Kimber Lanning. Kimber is founder of Local First Arizona and Local First Arizona Foundation, two distinct state-wide organizations working in tandem to strengthen Arizona’s economy.

                            Under Kimber’s leadership Local First Arizona has grown to a membership of more than 3,000 independent businesses across the state. Kimber herself is an entrepreneur and she’s also a community development specialist who works to cultivate strong, self-reliant communities and inspire a higher quality of life for people across Arizona.

                            Kimber, welcome to Building Local Power.

                            Kimber Lanning:
                            Thank you so much for having me.
                            Stacy Mitchell:
                            I want to start by asking you what led you to found Local First Arizona. Tell us a little bit about the conditions and the state, what it is that you’re trying to change?
                            Kimber Lanning:
                            Sure. It’s a really interesting place in that we were the last of the continental states to actually become a state. It wasn’t until 1912 that we had statehood, and we grew very rapidly after the 1950s. Phoenix is very much built after the advent of the automobile and we grew in such a way that there wasn’t a lot of sense of place because two-thirds of the people living here came from somewhere else and so therefore there’s not a lot of loyalty to old school companies that you might see in a place like Philadelphia or Boston. To have a company here in Arizona that’s been here more than 30 years is rare. More than 50 years, I could probably count on just a handful of fingers.

                            I think it’s important to understand that as we grew, the chain model, the model of chain store was actually also hitting its stride. They didn’t have to fight any brand loyalty that was already here. They could just come on, set up shop and people would support them, particularly if they were coming from another area that we had a lot of transplants from. You could take a company like Culver’s that was popular in Chicago, they’d set up shop here, and there’s a bazillion people from Illinois that would immediately flood their stores because the people that are living here that came from Illinois, they don’t put their roots here, they want to bring Illinois with them. And that shows in everything from their habits in terms of commerce to the landscaping choices that they have. They brought their grass and their pine trees with them or oak trees or other such things that are not native to the desert here.

                            I think that the first thing to contextualize in Arizona is that it’s taken us a minute to figure out who we are because everybody moved here and tried to convince us who we were, and there weren’t enough local Arizonans to say, “No, that’s not who we are. This is who we are.”

                            When we started Local First Arizona it really resonated with people. They went, “Yeah, wait a minute. You’re right. There are local businesses here and they don’t have a voice and they’re being overrun by chain stores. Let us link arms and do this.”

                            I think it catches people off guard how large we’ve grown, but really I think it was a matter of resonating with enough people that we really needed it. You don’t need to go to New York City per se and say support local businesses because people are already doing that by and large. Now they’re just facing an influx of change now, but we already went through all of that and now the local restaurant scene is striving over the chain … We’re seeing chain restaurants close left and right.

                            Stacy Mitchell:
                            As you formed this organization and as you’ve been doing this work across the state, what are some of the biggest challenges that you’re seeing for independent businesses, for this idea of having a strong local economy in Arizona?
                            Kimber Lanning:
                            I think the biggest challenge we see is access to capital. There are a number of reasons for that. I think that the largest reason is that we as a state, our residents, our businesses, and our governments have put our money in the three biggest banks that exist in the country. So that’s Chase, Bank of America, and Wells Fargo, and those three banks are largely not lending to small businesses in Arizona. They are not interested in doing $25,000 loans. They’ll only consider doing about 250,000 and up, and even the $250,000 loans are pretty rare. That pretty much cuts off the lifeblood of the small business here, and when we get into underserved markets, they’re relying on predatory lenders for those loans and paying exorbitant interest rates. I think that’s really the biggest issue that we have and I suspect that’s certainly true around the country.

                            We’re also seeing banks cut off capital in rural areas at an alarmingly high rate. When the last bank pulls out of a small town, it’s hard for that small town to survive. This is an issue we’ve been drawing attention to, and I think that it’s one of those sleeping giant issues that everybody should be moving their money into local credit unions or community controlled banks, that it’s just sort of like keeping an eye on your money. You need to know where it is and where it’s invested. If you have it in one of those three big banks, then frankly you have no idea where it’s invested and somebody’s making money off of you that could be in a very non-values aligned manner.

                            Stacy Mitchell:
                            Yeah. It’s the data on what’s happened to the banking system as things have consolidated and we’ve lost local banks and credit unions, it’s had a real impact on the ability of businesses to get loans, to grow. There’s just such a direct connection there and it’s I guess disturbing that political leadership has not been more aggressive about addressing that because it really is like a functional issue, or it’s a structural issue in a sense that big banks, they’re not going to start lending to local businesses, they’re operating at a scale that’s just out of touch with local needs.

                            Tell me a little bit about like as you’ve been delivering this message about local banking, have you gotten a response from that? Have you seen anything shift in that work?

                            Kimber Lanning:
                            Yeah, we’ve been very pleased. Here in Arizona we’ve been able to shift 6% market share out of those big three banks and into our community banks. We’ve been running an active Move Your Money campaign now for a couple of years and it’s been significant. The number of businesses that have moved their money, we’ve successfully convinced the city of Phoenix to move $50 million, which is just a piece of their money, but it’s a start. I was able to convince them of that because the elected officials were talking about having a 24/7 vibrant city and I said, “No, you’re not. You’re not because the small businesses here cannot access capital, and if that’s your goal, then you need to move your money into a bank that shares that vision, and that’s not one of the big banks because they are not invested in small businesses here in Arizona.” And they got it, and they moved some of that money.

                            We also convinced the city of Tucson to move about $30 million. Then I think we’ve tracked almost 100 businesses that have moved their money and then countless individuals. We’ve been very excited about the impact that we’re having.

                            Stacy Mitchell:
                            Have local banks and credit unions talked to you about this? I mean, are they … Has this come up on their radar? Are they feeling this shift?
                            Kimber Lanning:
                            There’s only 13 community banks in Arizona and we have all 13 of them engaged. We have a Speed Dating for a new bank event every February where it’s we play it off Valentine’s Day and they all come out to that, and it’s a place where you can actually come out, meet bankers, learn what their areas of expertise are, and pick one that works for you to move your money. We have at least two of them represented on our board of directors and so, yes, they’ve been very engaged and very receptive and I think frankly shocked at the impact that we’re having.
                            Stacy Mitchell:
                            That’s really great to hear. It’s striking because Arizona, I mean, that’s a much lower level of local banks. You have a much smaller share of your deposits and local banks than is average. I think another way in which Arizona is perhaps behind other states is in terms of land use policy.

                            One of the things that we found and I know that you found is that land use is really critical to the health of local businesses, like how your planning and zoning works, what kind of built environment you’re creating has everything to do with whether you’re creating opportunity for local entrepreneurs or room for chains to take over everything.

                            I guess just having visited Phoenix and other parts of Arizona, it seems like a place where there’s been not a lot of attention to having good zoning for a long time, and I think you’ve sort of alluded to this in the beginning when you were talking about this is a state that really has grown up around the car and not around having walkable places.

                            Tell me a little bit about working on the issue of land use and whether you’re seeing any shifts in movement in Arizona?

                            Kimber Lanning:
                            We work successfully at the city level to get them to rethink the value of older building stock. We got them to adopt the international existing building code which enables inspectors in the field to be a little bit more tolerant and lenient toward getting an older building occupied.

                            The shifts that we made with the adaptive reuse program here in Phoenix has led to what is really today the most progressive adaptive reuse program in the country where it spans city, all 500 square miles of the city of Phoenix, any building up to 100,000 square feet, so that’s going to be a big box size building, and anything that was built before 1990. It is an extensive program, anybody can apply to go through it, and it’s just slightly different process that allows more tolerance for older components to a building that may be safe for humans … I mean, we’re not talking about endangering life safety. Things in regular building code, maybe more rigidly interpreted and therefore more cumbersome to get a certificate of occupancy. It’s been a wild ride. It’s been hugely successful. I would credit those shifts in policy, to why we now have 100, 125 new, small businesses, have opened in our city center, that we’re formally in a blighted or abandoned buildings.

                            Rather than tear those buildings down and build large new develops, we’ve been able to make the case that protecting the older building stock is a better economic development strategy. I do wanna just shout out, Preservation Green Lab did a fantastic study that can be useful for your listeners called, Older, Smaller, Better. If you just Google Older, Smaller, Better, you can read the report. It measures a wide variety, jobs per block are higher in places that protected their older building stock.

                            Small business owned by people of colors, there’s a bunch of measureables there that make an economic case for protecting older building stock and zoning that doesn’t allow enormous footprints, to come in, abandoning alleys and dominating entire blocks, because that’s not how to create the most jobs.

                            Stacy Mitchell:
                            That’s great. We cited that research by Preservation Green Lab ourselves. It’s a really interesting study. It looks at several, different cities, to look at the data on why diverse historic mixed kinds of districts are actually much better for a lot of different indicators of economic and social health. We’ll make sure to include a link to that study on the show page for this episode.

                            We’ll also link to some materials about Phoenix as adaptive reuse program, which has been just hugely successful. I mean, that’s just terrific to hear that 125 businesses have been able to start up in buildings that were previously derelict, because the city has stepped in and made that easier to do. I mean, that’s … It seems like a very … It’s kind of, a low hanging fruit, and yet the results of it have been really terrific.

                            Kimber Lanning:
                            Yeah, you know, the other piece of it I wanna mention Stacy, is there is a storefront improvement program, where the city grants one large award to an architectural firm, that then is tasked with giving away services at five, to 10,000 dollar increments, to help small businesses. Again, occupy those older buildings that may need a façade overhaul if you will. We actually, where our office is, we participated in that program and got approximately 7,000 dollars worth of architectural services, to get through the process to get our certificate of occupancy. That’s a wonderful program as well.
                            Stacy Mitchell:
                            That’s great. You’re listening to Kimber Lanning, executive director of Local First Arizona. I’m Stacey Mitchell with the Institute For Local Self Reliance. We’ll be right back after a short break.

                            Hey everyone. As you know, we don’t have ads on this show, but we do depend on your for financial support. We hope as the year winds up, you’ll consider making a donation to the Institute For Local Self Reliance. We’re a national non-profit organization. Our research, our advocacy, our work with communities really depends on support from people like you. Please go to ILSR.org/donate. That’s ILSR.org/donate. Thanks.

                            We’ve been talking some about policy areas that are really abut leveling the playing field, like making sure that local businesses have access to capital the same way that big businesses do, making sure that land use policies are actually creating the kind of build environment that works for local entrepreneurs. I wanna turn a little bit to this question of, okay, in addition to leveling the playing field, how do cities do further? How do they actually use their policy tools to grow local businesses, to really actively promote and develop a different kind of economy?

                            One of the places I wanna talk about is procurement. It’s really interesting. As some of our listeners know, back in July, we released a report about this national contract that Amazon has secured to supply cities and school districts across the country with things like office supplies and classroom supplies. Our report details a lot of the problems in that contract. We learned that about 1500 local governments have already signed on to that deal, and are shifting their purchasing increasingly to Amazon.

                            What was interesting is that we pulled data on a bunch of different cities as we were doing that report, looking at how much are different cities spending with Amazon. We found that Phoenix basically spends no money with Amazon. That really stood out in the list of cities. How is it that Phoenix has managed to avoid purchasing on Amazon. Tell us a little bit about how the city approaches its procurement.

                            Kimber Lanning:
                            Yeah. There was a lot of work that went into that, working in partnership with city staff and also I wanna give a shout out to former Phoenix Mayor, Greg Stanton, who really saw the vision of taking city dollars, investing them in Arizona companies as a strategy to grow the economy. We worked in partnership with city staff, to come up with a program that we still do today, which is to help them grow the number of Arizona companies they have in their database. They also empower city staff to anything under a contract worth less than 100,000 dollars, they have the ability to only use the Arizona based database.

                            They’re not technically preferencing the Arizona companies, they’re just using a process where only the Arizona businesses get to bid on those particular contracts. The only way it will go to a national full bid is if they don’t get at least three competitive bids on any particular item they’re sourcing. I think having those relationships with city staff, has been one key thing that has helped us stay on track.

                            Also, reminding the elected officials who come and go. City staff might there 30 years, whereas the elected official is gonna come and go every eight years, or four years, depending. It’s important to engage them both. It’s important to give credit to city staff, when they make smart decisions like this. I was mentioning to you earlier, we sent thank you cards to all of, the decision makers after your study came out, because they really made us shine. They made us the smart city that we are, which is that no, we aren’t going to put our money into a company that extracts wealth from our community. We are going to invest in the companies that are here investing in our future together, with a shared vision. We’re very proud of that.

                            I think that the procurement process in its first year, was significantly smaller than it is today. I think in year one, we did an additional 22 million dollars worth of business locally. I don’t have the latest statistics, but it’s significantly higher than that. We host doing business with the city, study sessions, two times a year. We had 170 businesses come out to the last one. They can ask questions. We had about six or eight city staff there, to answer questions and to walk people through the process of getting registered and helping them understand how to watch for and reply on bids. It’s been a great experience. We think that … We’re very proud of the city and the decisions that they’re making.

                            Stacy Mitchell:
                            That’s terrific. It seems like the kind of thing that more cities across the country should be doing. I mean, instead of just handing over everything to Amazon, or you know, other large out-of-state companies. Why not use procurement as a tool to actually grow the kind of businesses that you wanna have in the community. Part of Local First Arizona’s mission is around encouraging diversity and inclusion. I’m curious how you bring that to your work.
                            Kimber Lanning:
                            We live in a very diverse state. I think that in this work, I personally went through somewhat of an awakening and realizing that we thought we had been inclusive, but we weren’t really being that inclusive. Ultimately I think the bi-local campaigns, although very well intentioned, they really started in a place where only middle and upper class white folks were participating or even had the opportunity to participate. Many of our underserved areas, had been over run with cheap fast food places, big chains, and there weren’t enough local businesses to support, even if they wanted to.

                            As part of that, we created a business accelerator program called, Fuerza Local. That’s F-U-E-R-Z-E-A, Fuerza Local. That is a Spanish Business Accelerator program, that it’s a six months to get through the program. They have to come to class one night a week. They learn not only about how to run stronger, more efficient businesses, and they’re all small business owners already when they start the program. In addition to getting the business curriculum, they need to build better businesses.

                            They also have a financial literacy component, that help them gain access to fair market capital. Like many states, we have a crisis of having a huge number of predatory lenders here, like check cashing places, and title loan places, that are feasting and victimizing our Latino population through Spanish language advertising and promotion. The average interest rate our small businesses, that come through this program are paying at the start of the program is 48%.

                            Stacy Mitchell:
                            Oh my gosh, wow.
                            Kimber Lanning:
                            And a lot of people will say, “Oh, well they’re at the check cashing place because they ruined their credit.” But what if I told you that no, they didn’t ruin their credit. Nobody just told them that there was a better way, that there was another way they could get a loan through a credit union.

                            So our program takes a … It’s called a money pool, or in certain parts of the world it might be called a tanda or a cundina. It is a model that families have used for centuries to save money together without paying interest. We had digitized that in partnership with a local company called eMoneyPool, and we put our students in pods of 12 people. They each make payments into the money pool each month with a goal of saving a $1000 over six months. So they make those payments together and all of them get their money back out of it. At the end of the six months, they’ve all saved $1000. We, through our foundation, we match them at $1000, so now they have $2000 and an updated business plan. Many of them have a business plan for the first time of how they’re going to invest that money.

                            But what’s most important about this is we take their payments and report them to the credit bureau Experian, so when they graduate they have a credit history. We have a relationship with two credit unions that will accept that certificate of completion and six months of credit history in lieu of any other background at all. That’s all they need to access a $2500 line of credit to get them started.

                            We really believe strongly in this program. We had over 400 graduates who have gone on to create over 500 jobs in a community. We just have some amazing success stories where people just needed a fair deal and an opportunity to learn so that they can be more competitive in their business. So it’s a wonderful program and it’s really changing the face of some of our more diverse communities of color here in this area.

                            Stacy Mitchell:
                            Tell us about one of the entrepreneurs that went through that program and opened a business.
                            Kimber Lanning:
                            Yeah, so one that jumps into my mind, we have a woman that just was a fantastic baker. She creates these amazing wedding cakes, but she didn’t know how to run a business. She had her company, she had no website, no online presence at all. She would quote people on the phone, it was all word of mouth, and she quote people on the phone, maybe say $500 for this wedding cake, and she’d go to deliver it and the family would say, “Well, sorry. We only have $275.” She would just feel sad and go back home, and her husband kept saying, “This is never gonna work.” She was paying 46% interest on the money she had borrowed, working out of her home kitchen. She had no business license, no health permit, and she had been sold three kinds of insurance that she didn’t need.
                            Stacy Mitchell:
                            Wow.
                            Kimber Lanning:
                            She was a star student, came through, took advantage of every mentorship we offered her. Front row, every class, did all of her homework with gusto. Now she has … She graduated from our program three years ago. To give you a recap, she’s now with a credit union, paid 6% interest. We got her out of her bad loan. She has the right kind of insurance. She has her business permit, her health permit. We helped her get out of her home kitchen and into a commercial kitchen, and she just landed a contract with the largest local grocery chain in this area, and she has six full-time employees.

                            In a three year period, she went from having one failing home-based business to having six full-time employees. It’s quite remarkable when you see somebody that would just needed to be able to learn in their primary language. She speaks English, but she learned better in Spanish. And be given an opportunity to access capital at a fair market rate, and it just transformed her entire life.

                            Stacy Mitchell:
                            That’s great. That’s great. Well, I want to turn now to your own business. You are a record store owner. You own Stinkweeds, which is a terrific store. I’ve really enjoyed visiting it. I think a lot of people think that record stores are from a bygone era, but Stinkweeds seems to be going strong. What’s the secret?
                            Kimber Lanning:
                            I’ve had this store since 1987. We just passed our 31st anniversary. 2016, 17, were the strongest years we have ever had in history of this store. So vinyl is very real. It is wonderful to see three generations of people come into the store, enjoying buying vinyl records. We sell tons of turntables, and I think the reason we’re successful is two fold. One is just flat out we’ve got the best customer service and the best selection. I mean, it’s just a great store and we pay for used records better than many of our competitors do. We’re more of a fair wheeler dealer of new and used records.

                            But also, Stacy, the honest to God truth is that I bought my building 15 years ago, and that has enabled me to keep my cost down. I’ve been able to fight the gentrification that’s occurred around me by simply owning my own property. So I want to help other small businesses figure out how they can buy their buildings as well. So while the rents of all my neighbors have gone up two and three times, I’m still there with my mortgage and my tiny little building. I mean, my building is 1000 square feet, and it’s sort of like a little engine that could. But that’s a very real reason for why we’ve been able to stay this long. We’re trying to figure out how to get more small independent businesses to be able to buy their buildings.

                            Stacy Mitchell:
                            That’s so important. We’ve just been hearing from people across the country about that problem, and it’s really critical. It’d be great to see more places have programs to help support that. And again, another link with local banking, and why it really matters to have capital available.

                            As we’re wrapping up today, I think one of the last things I want to ask you about is you went from being an entrepreneur to being a community organizer and a policy advocate. You’ve grown Local First Arizona into this large, vibrant organization with a lot that’s going on, and you’ve changed a lot of policies in the state and within Phoenix and other communities. I’m curious what kinds of advice you would have for people who want to do this in their state. What is it that you’ve learned along the way that you wish you knew when you started?

                            Kimber Lanning:
                            I think one of the most important things that we are able to do is to think about big systems and to be able to whittle it down into stories about people. If I want people to move their money, I don’t just talk about the big financial systems and the policies behind them. I think in order to motivate and inspire people, we have to talk about the guy who applied at 14 different big banks and got turned down. And yet now, he’s there shaking the hands of the community bank president who shares a vision with him about what that neighborhood could look like. To tell other people how we do this work, it’s just really that.

                            People, you lose them if you’re gonna constantly talk about big, huge systems change things because it seems overwhelming. What we need to do is show them individual people who are succeeding, how they’re succeeding, and then tie it back to an action that we’re asking them to do. The reason this guy could meet with this bank president is because the community bank is only chartered locally, so we need to get more money to that guy so he can lend to more people just like Jim, or whatever.

                            That is really the secret sauce. It’s giving it to people in a way that they can relate to it.

                            Stacy Mitchell:
                            That’s great. To wrap things up today, we often ask our guests to make a reading recommendation, and it can be anything.
                            Kimber Lanning:
                            Yes. So I am super inspired by Anand Giridharadas, I’m not totally positive on the pronunciation of his name, but I believe it’s Anand Giridharadas, and the book is called Winners Take All. I’m super inspired that he is really taking to task a lot of these big corporations that are hiding behind the banner of conscious capitalism, and they’re pretending to do good without actually changing any systems. Let me tell you, the only way to change these things is to dismantle them.

                            If anybody is pretending to do good in a community while they’re doing harm in the community at the same time, we need to hold them accountable for that. We can’t just rush to support the companies that offer free yoga on Tuesdays for all their employees while their money is invested in coal, and oil, and other extracted economies somewhere else. So he’s really encouraging big picture thinking and accountability, and I just love the book. Highly recommend it.

                            Stacy Mitchell:
                            And that’s Winners Take All, right?
                            Kimber Lanning:
                            That’s right.
                            Stacy Mitchell:
                            Well, excellent. Thank you, Kimber. It’s been so great to have you on the show. Really appreciate the time.
                            Kimber Lanning:
                            Well, thank you so much for having me, and thanks for all the good work you do.
                            Stacy Mitchell:
                            Thank you for tuning into this episode of Building Local Power. You can find links to what we discussed today by going to our website ILSR.org and clicking on the show page for this episode. That’s I-L-S-R dot org. While you’re there, you can sign up for one of our newsletters, connect with us on Facebook and Twitter, and if you liked this podcast, please consider sharing it with your friends or leave us a rating. The show is produced by Lisa Gonzalez, Zach Freed, and Hibba Meraay. Our theme music is funk interlude by Dysfunction_AL. For the Institute for Local Self-Reliance, I’m Stacy Mitchell. I hope you’ll join us again in two weeks for the next episode of Building Local Power.

                             

                            Like this episode? Please help us reach a wider audience by rating Building Local Power on iTunes or wherever you find your podcasts. And please become a subscriber! If you missed our previous episodes make sure to bookmark our Building Local Power Podcast Homepage.

                            If you have show ideas or comments, please email us at [email protected]. Also, join the conversation by talking about #BuildingLocalPower on Twitter and Facebook!

                             

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                            Photo Credit: Local First Arizona

                            Audio Credit: Funk Interlude by Dysfunction_AL Ft: Fourstones – Scomber (Bonus Track). Copyright 2016 Licensed under a Creative Commons Attribution Noncommercial (3.0) license.

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                            33 min
                          9. Reining in Dollar Stores

                            Since 2011, the number of chain dollar stores has grown from 20,000 to a staggering 30,000 locations nationwide, as these stores profit off of continued economic distress and insecurity across the country. In this same period, the number of full-service grocery stores supplying communities with healthier food options has been in decline.

                            The city of Tulsa, Okla., is no stranger to this phenomenon. There are 50 dollar stores within the city limits, many concentrated on the city’s north side, where residents are left with few if any other options to buy their groceries.

                            Tulsa City Councilor Vanessa Hall-Harper

                            In this episode, co-hosts Stacy Mitchell and Marie Donahue speak with Tulsa City Councilor Vanessa Hall-Harper. Earlier this year, Vanessa led a successful effort to convince the City Council to pass an ordinance restricting dollar stores from building new locations in the community of North Tulsa, a historically and predominantly African-American area of the city. The ordinance was part of community members’ and Vanessa’s efforts to address the lack of healthy food options in their neighborhood.

                            Drawing some inspiration from ILSR’s policy tools, Vanessa was able to amend the city’s zoning code to stop the proliferation of chain dollar stores that have crowded out full-service grocery stores in North Tulsa. She overcame opposition from developers, chambers of commerce, and even some city agencies that were hesitant to exercise Tulsa’s local authority in this unique way. Stacy, Marie, and Vanessa discuss the two-year journey to pass the ordinance. They cover both the challenges and successes Vanessa had along the way, concluding with a discussion of Vanessa’s more recent efforts to bring a full-service grocery store to North Tulsa.

                            Tune in to learn more about Tulsa’s innovative example of building local power!

                            If we continue to just accept Family Dollars and Dollar Generals, that’s all we receive, then we’re not going to get anything better. We have to make our voices heard, and we have to demand better. That was a lot, to a large degree, a part of this process in saying, no to this, and this is what we want.

                            Interested in learning more about the rapid proliferation and impacts of dollar stores? Our team has released an in-depth feature “Dollar Stores Are Targeting Struggling Urban Neighborhoods and Small Towns. One Community Is Showing How to Fight Back.” We have also compiled a shorter 2-page fact sheet The Impact of Dollar Stores and How Communities Can Fight Back, with facts and strategies to take action. Sign up for our Hometown Advantage Bulletin newsletter to get updates and related resources straight to your inbox.

                             

                            Related Resources

                            1. Dollar Stores Are Targeting Struggling Urban Neighborhoods and Small Towns. One Community Is Showing How to Fight Back. — Featured Story on How Dollar Stores Impact Local Economies
                            2. The Impact of Dollar Stores and How Communities Can Fight Back (2-Page Fact Sheet)
                            3. Dollar Store Dispersal Restrictions
                            4. ‘They was killing black people’: In-Depth Feature of the Tulsa Race Massacre via The Washington Post
                            5. 1921 Tulsa Race Riot History, Tulsa Historical Society & Museum
                            6. Guide to Policy Tools that Expand Opportunity for Independent Businesses
                            7. Formula Business Restrictions
                            8. Want to Strengthen Independent Businesses? Use These Policies (Building Local Power Episode 51)
                            9. Transcript

                               

                              Stacy Mitchell:
                              Hello, and welcome to Building Local Power. I’m Stacy Mitchell, of the Institute for Local Self-Reliance. Today, I’m joined at hosting this episode by my colleague, Marie Donahue. Hey, Marie.
                              Marie Donahue:
                              Hi, Stacy. Happy to be here.
                              Stacy Mitchell:
                              In the years since The Great Recession, many retail chains have been closing their stores, but one striking exception to this trend, are dollar stores. Since 2011, the number of dollar stores has grown from 20,000, to nearly 30,000. If you map the location of these stores, it quickly becomes clear that these chains have figured out how to profit, from economic insecurity, and they’ve done so largely under the radar.

                              It might surprise you to learn that dollar stores, most of which sell only a limited selection of processed foods, and offer no fresh produce at all, are now feeding more Americans than Whole Foods is. These stores are not nearly a by-product of economic distress. It’s becoming increasingly clear that they’re also a cause of it. In small towns and urban neighborhoods alike, dollar stores are leading full-service grocery stores to close, and their strategy is saturating urban neighborhoods with multiple outlets, is making it impossible for new grocers to take root and grow.

                              Today on the show, our guest is someone who has been on the front lines of battling this trend. Vanessa Hall-Harper was recently re-elected to her second term on the Tulsa, Oklahoma City Council. There are more than 50 dollar stores within the city limits of Tulsa, and many are located in Vanessa’s neighborhood, a neighborhood that does not have a single full-service grocery store. Thanks in part to Vanessa’s work though, that’s about to change.

                              Earlier this year she passed an ordinance that puts limits on dollar stores, and now, there is a new grocery store coming to her neighborhood. So, we’re really looking forward to having Vanessa on the show, and hearing how she’s done this. Vanessa, welcome to Building Local Power.

                              Vanessa Hall-Harper:
                              Thanks so much. I’m happy to be here.
                              Stacy Mitchell:
                              Well, I want to start by asking, why did you decide to run for city council?
                              Vanessa Hall-Harper:
                              I was bothered by the fact that I continued to see my community deteriorate, and so, knowing that there was so many things that are needed in the community, I actually have … my educational background is in Political Science, and so, politics and at least the process, and how politics work, has always been near and dear to my heart, and so, just knowing better, knowing how better to get things accomplished on a local level, and not doing anything about it, finally just got to me.

                              I believe this was a calling for me in my life, and I decided after several years of trying to put it off, to go ahead and throw my hat in the ring, and I ran for the first time in 2014 for city council for District One, here in my community, the community that I was born and raised in. I lost my first election, and then when I ran again in 2016, I won. So, that’s kind of how it happened.

                              Stacy Mitchell:
                              What were some of the issues that were motivating you, when you ran? Tell us a little bit about your neighborhood, and you mentioned sort of seeing these problems that you knew there were solutions to, but not seeing those solutions get implemented. Talk a little bit about what those were.
                              Vanessa Hall-Harper:
                              I just felt like our leadership was not there, as a true voice for the community. One of the continuing problems, that we’ve had in my community, is the lack of full-service quality grocery stores. That is overwhelmingly, the number one concern, that citizens in my district complained about for years, and still to this day. Although, we have some light at the end of the tunnel, but again, I would say that’s probably number one, the greatest concern for my community.

                              Other things, as far as just not having a real voice, not having the, I guess, liberty, or the permission if you will, to come down to City Hall, and to say, “Look, we have a problem with this.” Our parks in our community are something that’s a dying breed. Several of the community centers have been closed, one even demolished, and so, that was a great concern to families in our community, and again, decisions being made for the community, but without the community. That is not how our American government is set up to work. Our government is set up in a Democratic way, in which, people can have a voice, and input on the very decisions that are changing, or could possibly change their lives.

                              In a nutshell, I wanted to run so that I can not only improve the quality of life for my district, but to give the people a voice so they would feel like they’ve been heard, and if they have a say on how they live day-to-day.

                              Marie Donahue:
                              Kind of curious, just to have you speak a little more about this question of dollar stores in the North Tulsa community, and to just maybe paint a picture for us a bit, about the extent of these stores, that you’ve seen, and then maybe expand on that to some other sort of questions around geography that you have, both in your district, but in the larger urban area as well.
                              Vanessa Hall-Harper:
                              Absolutely. So, we definitely have a proliferation, or an issue of proliferation of these discount dollar stores, and the only two that exist in my district are Family Dollar and Dollar General. There are Dollar Trees in other parts of the community, but I believe that Dollar Tree is being marketed towards the more upper class, white community, and not the black, brown, and poor communities. That’s just really, I don’t have any data or anything on that, but that’s just what I see. That’s how I perceive that marketing to go, or the way they market Dollar Tree, but for Family Dollar and Dollar General in my community, there’s definitely, what I would call proliferation. They’re were nine. Now there’s 10. There is currently an 11th store, that’s being built right outside of the Healthy Neighborhoods Overlay, that we were able to put in to place in our zoning code.

                              They are built in such a way, that they are literally on top of each other. So, there is no spacing. Before the Healthy Neighborhoods Overlay, there was no spacing requirements, and so Family Dollars, and Dollar Generals, would literally build across the street from each other, or next door to one another, and I believe, and after studying, and doing some research, that when these stores proliferate communities, particularly low-income communities, it makes it more difficult for full-service grocery stores to survive, and if they’re aren’t any to begin with, it makes it more difficult for them to come in, and set up shop and be successful.

                              Knowing a little bit about government, and how things work, I knew that as a city government, we have the authority to address these types of issues and concerns, that ultimately affect the community, both economically, as well as, the health, the overall health of a community. I sought to do something about it, and that’s when I started some research, and came upon your website, and found a lot of good information. I’m so thankful for that. I was really kind of getting discouraged for a while there, until I came across your website, and it just really gave me some good direction in which to go, so that I can use that information, and share it with our zoning department, and our econ department. So, that’s kind of how it got started.

                              Stacy Mitchell:
                              I’m really interested to talk about the ordinance, and about the process that you led to actually get this passed, ’cause my sense was that it was a process with a lot of twists and turns, and some uphill fights, but before we turn to that, I wanted to ask you a little bit more about the geography about dollar stores. Marie made some maps, as we were putting together, the article that’s on our website of dollar stores in Tulsa, and then looked at census tracks, both percentage of poverty, and percentage of people that identify as African American, or black, and what was so striking is that, there didn’t seem to actually be a lot of correlation with income, but there was a real strong correlation with race.

                              I’m curious about, do you have insights on why that is? I mean, is that your experience in the city, is that dollars stores are much more closely correlated with African American neighborhoods, and particularly with North Tulsa, and do you have a sense of why it is that they’ve targeted those communities so much?

                              Vanessa Hall-Harper:
                              I do believe they target the black brown, in poor communities. As far as here in Tulsa, and I’m assuming that it’s the case in other communities as well, but in Tulsa, we are a very polarized community, and that would stem back to the 1921 Race Massacre, if you’re familiar with that.
                              Stacy Mitchell:
                              Mm-hmm.
                              Vanessa Hall-Harper:
                              Just how our city came in to being. There’s a cliché that’s used, oftentimes in movies and government that says, “The other side of the tracks.” Well, that is absolutely 100% true, when it comes to Tulsa. Our city is literally divided by a set of railroad tracks, and the south side of town is overwhelmingly white, and the north side of town is overwhelmingly black. That is changing somewhat, but it still holds true to this day. I guess, as a company, as a business, when you come to Tulsa, it is deeply polarized, and when you are looking for the black community, it is more of Tulsa.

                              Of course, there is also Hispanic, Native American, and white in the community, but overwhelmingly, it is the African American community, and I would have to say that, that is the case because of just how this city came in to being, before statehood and since. When you came to Tulsa, as a light person, you went to North Tulsa to live. You could not live anywhere else. That still holds true today, as far as locating, but you know, with integration you can live other places, but for the most part, North Tulsa’s do the African American side of town.

                              Marie Donahue:
                              Could you expand a little bit for us, Vanessa, and for our listeners about The Race Massacre that occurred in the 1920’s in Tulsa, for those who may not be familiar? I certainly know that there’s a quite rich history of Black Wall Street, for example, in that community, and if you could just kind of share a little bit more for those who may not be familiar.
                              Vanessa Hall-Harper:
                              Absolutely. So, O.W. Gurley, who’s an African American, who actually came from or by way of Greenwood, Mississippi, who was a successful businessman, came to Tulsa in 1906, before Statehood, and was able to purchase 40 acres of land, in, what we now know, as to be North Tulsa, but in the part of town where African Americans could purchase land.

                              So, it grew to be a very successful, very bustling business district, which became known, I think Booker T. Washington, is the gentleman that named it Black Wall Street. There were over 600 successful businesses, homes, home to several millionaires back then, which was very rare, and so, at the end of May of 1921, D. Rowland, who was a bellhop at a hotel downtown, was said to have to tried to attack a white woman, who actually rode the elevator. We know now that, that was not true. In fact, they were involved in a relationship, and was later married in Chicago, we found out just from history, but I believe it looks like they were caught maybe kissing or holding hands, or something to that affect, and at that point, someone, we don’t know who that is, but said, that he had raped her, or at least attempted, to rape her, which was obviously not true, but that is all that was needed to start what we know now to be The Race Massacre of 1921.

                              This is something that happened all over really, the Southern United States, and our Eastern border. It was not new. In fact, The Red Summer of 1919, it happened in Rosewood, Florida. It happened in Arkansas, in Chicago, in cities, in black cities, black communities throughout the country, where normally that was what was said. A black person, a black man, touched, winked, spoke to, anything to a white woman, and then that gave the city the justification in their minds at least, to go in and to destroy.

                              Tulsa is known because it was certainly by far, the largest black business community in the country, that was destroyed, and it was the first time, that aerial bombs were flown from an airplane. There was an airplane out in Southwest Tulsa, where when the rioters, the white mob, was not able to come in and take over the community, because there were people fighting back. They then got in airplanes, and dropped bombs, and that’s really how they were able to win and to destroy, because who could fight against aerial bombs. That’s a really short history of what happened, and to a very large degree, that division still exists today, unfortunately.

                              Certainly working on it, to change through our government, the government, the city, and the state was very complicit in the massacre, as well as the KKK. Very complicit in the massacre that took place in 1921, and we are approaching the 100 year centennial of the 1921 Race Massacre, so we’re working to acknowledge, and to hopefully find some reconciliation with the truth, as we try to improve our city and our state.

                              Stacy Mitchell:
                              It seems in some ways that the huge number of dollar stores that you have in North Tulsa, it really connects to this history, in the sense that the absence of grocery stores for miles in your neighborhood is in some ways, a legacy of that history of the destruction of the economic base of the community, and also maybe is connected to a lack of political power. I wonder how much these corporations perceive, if they try to open stores in more politically powerful white neighborhoods, that there’s gonna be pushback, and maybe they feel like that’s something they’re not gonna encounter in black and brown neighborhoods, in the same way.

                              You have passed the first ordinance, as far as we know, in the country, that limits the proliferation of dollar stores, and so, your work is very much about bringing political power back to your community, back to this neighborhood. Tell us a little bit about what you first proposed, as you came in to city council, and what kind of reception you got.

                              Vanessa Hall-Harper:
                              The first step was to put a moratorium in place. There was a store, that was in the process, I wouldn’t say of being built. It hadn’t. We have an authority here, called The Tulsa Development Authority, and they came about as a result of urban renewal, back in the 70’s, and they essential bought up a lot of properties in depressed areas, which was mainly North Tulsa, and they’re responsible for the development of that.

                              When I first learned that there was another proposal for a discount dollar store right after I came in to office, I went to the Authority and spoke and said, “With all due respect, this is not something we need, another dollar store in the community.” In fact, that same project had been proposed three times prior to the moratorium, and it was put down by the community, because the location where that store was initially trying to move to was zoned residential, which was literally a stone’s throw away, from a Family Dollar store, that was already in existence.

                              The neighbor’s in that direct community went to planning, ’cause whenever there’s a zoning change, they have to notify the community, by law. The community showed up at these meetings, and said, “We don’t want another dollar store.” So, again, there were three times, when that store was denied. The first time, they waited two years, and did it again. Waited another couple years. I guess they were just hoping that the community would forget about it, but again, when your zoning is changing, by law, the community has to be notified, and so, after those three failures, they decided to move to another piece of land, that was already still in the very close proximity, but was already zoned retail or zoned commercial.

                              They started that process, and one of the problems that I had with that, is that the Tulsa Development Authority, which is an authority of the city, did not adequately publish what type of store, or what type of business that would be. They left out that it was going to be a dollar store. They left out that it was a Dollar General, even though they knew what kind of store it would be, and I believe that was intentional.

                              Currently, as we sit here today, there is a pending lawsuit against the Tulsa Development Authority. I, and four other citizens that live in the area, filed the lawsuit claiming violation of the Oklahoma Open Meetings Act, against the Tulsa Development Authority. I would venture to say, I’m the first elected official in our city’s history to sue an authority of the city, but I think these types of things are necessary for, just as you were saying earlier, that the community’s voice is heard, that we understand the political power that we have, and to use that political power. We protest it. We have said from day one, this is not what we want.

                              In fact, I reached out to the headquarters, the corporate offices of Dollar General early on, and said, “Look, if this is something you’re going to do, why not make it your market concept?” So, I’m not sure if you’re all aware, but Dollar General has a market concept store, where it is a full, I won’t say very full, but it offers fresh fruits, meats, and vegetables. There’s two in the state of Oklahoma, but out in very rural communities, and I had not seen it myself. I’ve had other people in the community saying, “I was in Okemah …” or whatever the little town it was, and saw that Dollar General had a full-service store, or what they considered a full-service store, and so, I requested that. If you’re going to do this, why don’t you make it one of those stores, so that you would at least offer some fresh fruits and vegetables, and some fresh meats, and they basically said no. They said, “We don’t have to.” And they know that they don’t, because they know in communities that are a disenfranchised in communities that do not have options, which I believe is their market strategy.

                              They go in to communities, where they know that there aren’t many options. That ensures their success, and again, makes it in my opinion, more difficult for fuller service quality stores to come in later, and survive, and provide those much needed fruits and vegetables. That’s kind of how that came about. The store had not broken ground or anything. It was still in the process of transferring the property, when I started working on the moratorium, and yes, there was a lot of push-back, particularly from the business community. There were calls made, not so much to me, but there was definitely more calls made to some of my fellow counselors.

                              In fact, there were two other city counselors, that were on-board with me initially, because they have some low socioeconomic communities as well, like brown and poor, and they were facing, and are facing, the same proliferation issues, but after some calls were made by some very powerful people, they said they’re not gonna do it. They backed down, and I didn’t. So, I continued the fight.

                              Marie Donahue:
                              So, Vanessa, you’re speaking a bit about Dollar General’s power, the area’s business community, and some of the opposition that you faced in that community and in government. I’m curious how you, and how the community overcame that opposition to successfully pass this moratorium, and then some of the later policies, that will get in to a little bit, in more depth later, but some of the strategies were what who was involved, in building that power more locally?
                              Vanessa Hall-Harper:
                              My tool for everything, but particularly in this effort is transparency. Everything that I do, everything that I find out, every steps that we’re taking, I make it public. I make it known to the community, and I encourage, and demand, in fact, for the community to come out and have their voices heard.

                              Education … letting them know. I can’t tell you how many things I’ve printed off of the Institute For Local Self-Reliance. Sharing this information about formula based businesses, and restrictions, and so forth, to say, there are examples. There is information out there, that we can take, and implement in our own communities, to demand better, and unless the people demand better, we can’t expect better. Transparency is my greatest tool. I would have to say, and that empowers people to speak up, and say, no.

                              Most people probably don’t understand proliferation. When I’ve had my town hall meetings, and I’ll ask, “The problem’s proliferation. Does everyone know what that means?” Most did not. A lot did, but a lot didn’t either, and unbalanced development. So, we talk about those things, and we’re raising awareness around these issues, so that you can open the eyes of those that don’t see what’s taking place around them, and for a lot of people, they said, “You know what? I never thought about it that way, but you’re right. You’re right.”

                              We have these stores, and that’s all that we are receiving. You have this one particular company or developer, who was building this Dollar General in North Tulsa, but you go a half a mile to downtown, south, and they’re building this huge beautiful development of flats or apartments, which are housing in retail on the bottom, on the first floor of the buildings, and my question is, why can’t we receive some of those same types of developments? If we continue to just accept Family Dollars and Dollar Generals, that’s all we receive, then we’re not going to get anything better. We have to make our voices heard, and we have to demand better. That was a lot, to a large degree, a part of this process in saying, no to this, and this is what we want.

                              As I said, there were people very powerful, when I say powerful people, you’re talking about developers. You’re talking about chambers of commerce. You know, all of the same key players, that I’m sure that are making development decisions, in any other city who were against this. I got some pretty nasty emails and comments, but you know, I stood the course, and I stood the course with my community in saying, “No, and we’re not going to accept anything less.”

                              Stacy Mitchell:
                              You’re listening to Vanessa Hall-Harper, City Council Member in Tulsa, Oklahoma. I’m Stacy Mitchell with the Institute for Local Self-Reliance. We’ll be right back, after a short break.

                              If you enjoy this podcast, please consider making a donation to the Institute For Local Self-Reliance. As you may have noticed, we don’t have any ads on this show, but we do depend on your financial support. Donations not only underwrite this podcast, but they’re an important source of funding for our work, and all of the technical assistance, and help that we provide to communities across the country. So, please take a moment to go to archive.ilsr.org/donate. That’s archive.ilsr.org/donate, and if making a donation isn’t something that you can do, please consider helping us in other ways. You can share this podcast with your friends. Follow us on social media, and help make other people aware of their resources in the work that we do. Thanks so much.

                              So, you passed the six month moratorium, and then went on to devise an ordinance, that’s a kind of a dispersal ordinance. It limits the ability of dollar stores, as I understand it, to locate within a mile of an existing dollar store. So, it basically says, “We’re not gonna accept this kind of saturation, because that saturation is what’s preventing grocery stores from being able to come in. They can’t find any room in a market, that’s got so many dollar stores, kind of squeezing out room for other options.

                              One of the things, as I understand it, that the opposition was, as you noted from developers and the Chamber of Commerce, and sort of this sense of like business ought to be able to just do what it wants, but it also is coming from within City Hall, right? I mean, there were city councilors, but also just a reluctance on the part maybe of city agencies, to exercise owning authority in this way. Is that right?

                              Vanessa Hall Harper:
                              Absolutely. Absolutely. Initially, our planning department felt like that’s not something that should be done. I was even told, that it’s illegal. That we are a little concerned about lawsuits. You know, all the reasons not to do something, and what I considered fear tactics, rather than addressing the need. Absolutely. I eventually had to go to the mayor, because as I was reaching out to department heads. In our form of government, the department heads, whether it’s the planning department, the parks department, the water department, whatever the case may be, answers directly to our mayor. They don’t answer to City Council, and so, I was experiencing road blocks. I was trying to schedule meetings to get this information out. To share the information that I had found in my research, asking them to look as they are the experts in zoning. That’s not my area of expertise by any stretch, but I just kept getting road blocks, or the door shut, or you know. It just was not being taken seriously. When it comes to our planning department, or even our legal department, was not taking it seriously.

                              So, I went to the mayor, and I said, “Look, I need your help.” Our mayor actually came in to office with me. He had previously been a city councilor about eight years, and he ran for office, so we actually won our elections at the same time, and he ran on a platform of health, and improving community, and putting down the racial barriers that are so strong in Tulsa. I went to him and told him, “I need your help. This is yet another opportunity that the city, our community, the poor community, and black community has gone to the city for help, and so many times, in the past, we’ve had the door closed in our face.” And so, I appealed to him at that level, and he said, “Okay.” He made calls to the people again, that answer to him, the legal department, and the planning department, and said, “You all need to work on this.”

                              So, some more work started to be done, with that directive, and at the first meeting didn’t go as well as I had hoped, because on of the assignments were to go out and find other examples of policies, where the city has been able to address these issues, proliferation, unbalanced development, et cetera, you know, address the issue, and improve quality of life. We’ve had those here in the city, where when it comes to moratoriums, and zoning code changes, but it always related more so to retail. We don’t want anymore parking here downtown, on other affluent communities in the city, but when it came to North Tulsa, that wasn’t a priority.

                              It took us a while, but we started making some progress. Again, I shared a lot of information from The Institute For Local Self-Reliance with our legal department, our planning department, and the mayor said, “Figure it out. Do something. If it’s unique to Tulsa, if it’s unique to this country, figure something out, that’s going to work for us.” And they did.

                              So, I started working with Susan Miller, who’s actually in INCOG, and she did some research and came up with what’s called a Healthy Neighborhood’s Overlay, and working with some area sector plans, that already existed, and using those sector plan boundaries to incorporate The Healthy Neighborhoods Overlay, to address some of the issues, that we had raised as a community.

                              Marie Donahue:
                              Thanks, Vanessa. I’m curious just to draw on that success a little bit, about the Healthy Neighborhood ordinance, now that it was passed earlier this year, and has been incorporated in to the zoning code, as you mentioned. That we have understood that you have also been actively working on developing some other grocery store options, and really advocating for that. I’m curious just to have you expand a little bit more about that stores, some of the details of it. Sort of why you think it’s important for North Tulsa.
                              Vanessa Hall-Harper:
                              Oh, yes. Absolutely important. I actually, the day after I won the election, I reached out to TEDC, which is the Tulsa Economic Development Corporation. There was a young lady named Rose Washington, who’s the Executive Director, and I reached out to her for help. I said, “Look, we need a grocery store in my community.” She’s very familiar with my community, and she said, “Okay, let’s see what we can do.” There were federal dollars, that were available called The Oasis Grant, and it’s through CDBG, Community Development Block Grants, and she applied for the Oasis Grant, which is specifically addresses food insecurity, and food deserts. She applied for it, and received it, and that was awesome. It was a 1.5 million dollar grant, and so, with that and some other resources, that she has available, or at least access to, reached out to a local grocer, who was going to come in and be the operator of the store.

                              The funds that we received from this CDBG, will be used to build a store. That’s not gonna cover it all, but it’s gonna cover a huge chunk of it, so that we can have a full-service, quality store directly in the community. I’m hoping that that’s the first of more. Easily, my community can accommodate two, maybe even three, grocery stores, but I think if we start with one, that will give us some hope. Hopefully, that will make other operators notice that, hey, you can survive here, and there’s a need for full-service, quality groceries, and it would be a good bet to come here as a grocer, and open up a grocery store, and survive.

                              That’s kind of where we are. I actually need to talk to some to get an update on that process, but we have a architect that has been selected, that’s going to do the architecture for the building, and I think the next step is to meet with the architect and work with the community, and the development and the design of the store. I’m excited about that, because one thing I did want is the community to be involved as much as possible, in every aspect of us addressing our food security issue in our community. I think that empowers people, and it lets the community citizens know, that I have a say. I have a voice, and I have power, and if there’s something that we need to improve the quality in our communities, that will improve the quality of life, then I can participate in that, and I can demand that these things happen. I’m excited about that. I’m waiting for the call to say, “Look, we can start community meetings on what we want our grocery store to look like.” That’s when I’ll probably turn some back flips.

                              Stacy Mitchell:
                              Oh, that’s great to hear, Vanessa. Well, that’s really wonderful news. Yeah, I guess just as a last question. I’m curious just reflecting on this two year process, that you’ve been through, in trying to control the proliferation of dollar stores. The fight that you had to go through, to get this piece of legislation through you marshaling the community really, to overcome even a sense on the part of local government, that there was not the authority to do exactly what they had the authority to do, and now this new grocery store coming in with a lot of community input. I’m curious just stepping back from all of that, if you feel like this marks a kind of a new era in inclusion for Tulsa’s African American community, and in local politics, and having some power over the future?
                              Vanessa Hall-Harper:
                              I do. I believe that strongly. I believe we have a lot of work to do, but I do think we have taken a first step in reconciliation, which is something we need a great deal of in Tulsa, but what we want is honesty. We want honest reconciliation. We just don’t want words on a page. Just to give you an example of another issue in our community, that has racially divided this community. There was a street in our community, that was named Cincinnati.

                              Well, a previous city councilor asked for that name. That street’s one of our main streets to be named Martin Luther King Boulevard. There was a lot of drawback to that in the community, ’cause the street runs from north to the other side of town, and it’s South Tulsa, and obviously, a lot of people in South Tulsa did not want that name change. So, the city agreed to go ahead and change it, but it stops at the railroad tracks. It stops at the dividing line, of the black community and the white community. Things like that, that are still happening today, is a reminder of just how much work we need to do. This work, I believe, as you said, it is at least a step. It is a step, and I’m just committed, and I want to keep my community engaged and committed to improving it, because without the work, and without the dedication of citizens, and of elected officials who’s willing to put their head out there, with the possibility of it getting chopped off, we’re not going to have reconciliation. We’re not going to be the community we all want to be.

                              There’s a saying here, our regional chamber constantly calls this one Tulsa. Well, we’re one Tulsa, and I’ve said publicly in interviews, and in public places, that, “No, we’re not. We’re not one Tulsa yet, but there are things that we can do to become one Tulsa, and this fight for putting this moratorium in to place, is just one step or one way, in which we are fighting and making progress. That was some very discouraging times, during this process, because it just did not make sense for some of the reasons of why people were saying, No, we don’t want this for you.” Because the people that were saying no don’t live in the community, but yet the city wanted to take the position of the powerful, and say, “No, this is not something we need. It’s not good business, free market.”

                              You know, I’m sure you’ve heard all of the excuses, and it was discouraging to get it for a while, but we were able to overcome that, and a lot of the reason for that, is because we were speaking truth to power, and we were saying that, “You all are putting profits over people, and that’s not right.” And we hollered it, and we screamed it from the rooftops, and we were not quiet with it. We protested, and a lot of people are turned off by those tactics, but they work. We’ve had some success, and got a lot more work to do. This is one success we can say we were able to overcome, and hopefully, we can use this as an example for future work, that we must do.

                              Stacy Mitchell:
                              Vanessa, thank you so much for joining us today, and sharing the work that you’re doing in Tulsa. We really appreciate it.
                              Vanessa Hall-Harper:
                              Thank you. Thank you so much. I mean, you guys here are a great resource, and I’ve been getting calls from other people in New Orleans and other cities, and I tell them, “Go on this website.” This improvisation and the work that you all do and provide, you can’t put a price to it, so I appreciate the Institute for Local Self-Reliance a great deal.
                              Stacy Mitchell:
                              Oh well, that’s great. Thank you so much for saying that.

                              Thank you for tuning in to this episode of, Building Local Power. You can find links to what we discussed today, by going to our website archive.ilsr.org, and clicking on the show page for this episode. That’s archive.ilsr.org. We’ll be sure to include a link on that page to Marie’s new article about dollar stores, where you can find out more about what Tulsa has done, and more about how dollar stores are impacting local economies across the country.

                              This show is produced by Lisa Gonzales, Zach Freed, and Hibba Meraay. Our theme music is Funk Interlude, by Dysfunction Al. For the Institute for Local Self-Reliance, I’m Stacy Mitchell. I hope you’ll join us again in two weeks, for the next episode of Building Local Power.

                               

                              Like this episode? Please help us reach a wider audience by rating Building Local Power on iTunes or wherever you find your podcasts. And please become a subscriber! If you missed our previous episodes make sure to bookmark our Building Local Power Podcast Homepage.

                              If you have show ideas or comments, please email us at [email protected]. Also, join the conversation by talking about #BuildingLocalPower on Twitter and Facebook!

                               

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                              Photo Credit: Vice News

                              Audio Credit: Funk Interlude by Dysfunction_AL Ft: Fourstones – Scomber (Bonus Track). Copyright 2016 Licensed under a Creative Commons Attribution Noncommercial (3.0) license.

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                              42 min

                            About Building Local Power

                            From the publisher's feed

                            Building Local Power brings you thought-provoking stories and new ideas for breaking the hold of corporate monopolies and expanding the power of communities to chart their own futures. We deliver insights from trailblazing lawmakers, scholars, business leaders, and advocates. Plus, conversations with in-house experts at the Institute for Local Self-Reliance help reveal the patterns and policies that shape our economy and communities. These stories and conversations help map solutions that distribute power to everyday people.

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