Gentrification and Corporate Responsibility

[1] I serve as a pastor in Toledo’s North End neighborhood of Vistula. In our neighborhood, over half of the area residents (53%) live at or below the federal poverty level. Eleven years ago, when I began serving at Salem Lutheran Church, those figures were closer to 60% of people living at or below the federal level and 40% of those same people were at 200% below the federal poverty level. Unfortunately, the 7% change does not necessarily mean that 671 people suddenly climbed out of poverty.[1] It seems much more likely due to the redevelopment of our neighborhood. More affluent people have moved in; people experiencing economic poverty have been displaced or have chosen to move out. The composition of our neighborhood has changed.

[2] We once faced the challenges of concentrated poverty, which is undesirable as these challenges create hazardous conditions for human beings living in the area. But we also once had a place where assistance and outreach could take place when leaders chose to engage people experiencing poverty and tried to make a change for their empowerment and better living conditions. Now that we are facing redevelopment in our neighborhood, we have to ask a different set of questions. We must ask what the responsibilities are of business owners, new residents and governmental officials when an area is redeveloped with expensive condos and high-class businesses nestled in a community with extreme poverty. What is our faithful response towards the human beings who, for decades, have experienced poverty and “benign” neglect in that same place?  In what follows, I hope to address questions like these after offering our neighborhood and its process of redevelopment as an example.

[3] Around 2018, three years into my pastorate, a group of people, the majority of whom lived in one of Toledo’s more affluent neighborhoods called the Old West End, came together to make a Master Plan for our neighborhood, now named “Vistula.”[2] In retrospect, I look back at that plan as a localized, mini-version of colonization. Originally, I was included on that planning committee, but I was very wary that unexamined biases would influence this plan (to say the least). Voicing this concern, I was unceremoniously dismissed from that board with no communication to that effect, just a vote in my absence and a consequent eviction from my landlord at the time (who was also on the board) as further retribution.

[4] The promise of redevelopment often brings increased rent and a slew of offensive code reports made to the city in the hopes that the ones doing the reporting will be able to make a low offer on the property and obtain it. My purpose in bringing up the topic of gentrification was to intentionally avoid the situation whereby our neighbors living in economic poverty would lose their housing because of the hype around the neighborhood’s redevelopment. The word that I used, “gentrification,” was, it appears, an explosive and divisive term for the members of that board. As we would say in the pastoral field, I stepped on a metaphorical landmine, and the fire was then fueled by the underlying fears of the people on that board. One could also reasonably believe that profit-motives were involved, I suppose.

[5] Gentrification, as a topic, seems to generate a lot of heated debate, even amongst people who do believe in avoiding its negative aspects and who want to ameliorate its effects. Since even activists often disagree about its definition, what can we say gentrification is? According to the Uprooted Project, which is a collaboration between The University of Texas School of Law and the Community and Regional Planning Program at The University of Texas at Austin, “Gentrification is a process of neighborhood change where higher-income and higher-educated residents move into a historically marginalized neighborhood, housing costs rise, and the neighborhood is physically transformed through new higher-end construction and building upgrades, resulting in the displacement of vulnerable residents and changes to the neighborhood’s cultural character.”[3]

[6] For a ministry like the one we conduct in Toledo at Salem Lutheran Church, a mission congregation supported both by our Churchwide institution and the Northwestern Ohio Synod, the challenges that are posed by this seismic shift can feel nearly insurmountable. How do we, as a faith community and as ethical members of the larger community, the City of Toledo, respond to the displacement and changes in the neighborhood’s cultural character? Do we recognize this as a sophisticated and high-consequence form of racism and classism? How do we actually feel about high concentrations of economic poverty and the phenomena that usually appear in those areas? How can we do deep-rooted work in communities of extreme economic poverty and engage the challenges of gentrification in systemic and effective ways? Smaller scope but still important questions include: how do we help people avoid displacement because of the changing character of the neighborhood? With more-privileged people moving in, how do we still afford or create a voice and power for long-term neighborhood residents? Furthermore, how do we influence or encourage others, like non-profits, governmental organizations, and small and large businesses moving into the neighborhood, to act responsibly toward our neighbors, people who have been historically marginalized by both race and economic status?

[7] When I was brusquely dismissed from the aforementioned Master Plan board, I realized that the business leaders in our community had a vision that didn’t necessarily include my church or the people who are our neighbors, volunteers, and friends. The shame of it, and the part that made me most inwardly frustrated, was that these businesses and corporations could easily act more responsibly towards our neighborhood and the people who had suffered long years of disinvestment in it; ameliorating gentrification and redevelopment’s effects are not necessarily unachievable or unduly expensive. In fact, I would argue that, as with other complex issues, such as environmental stewardship, there are a multitude of common-sense ways that we can start small and find ways to work up to greater economic impact. Though we as churches often have a vastly different focus from business owners, who need to churn a profit and at least appear to be successful, there are ways that we, the Church, can innovate a “third way” with business owners that rides between the twin pitfalls of gentrification and further “benign” neglect in the neighborhood. We can intentionally create, with business leaders and others, a multi-income neighborhood where people benefit from economic diversity, where we can model the beloved community and better recognize and appreciate the diverse reality of the places we live.

[8] In a neighborhood like Vistula, where we have suffered disinvestment and “benign” neglect, there is a reality to our needing some investment and development. Even talking amongst those members of the neighborhood who have the least amount of money, there is a belief that development is a good thing. But the question that lingers among us is: “Who is this for?” One of our ministry leaders, LaTrina J. Smith has frequently told others, “When the Starbucks came downtown, I was telling people, that’s not meant for you.” Amongst those of us serving at Salem, there is a belief that development and businesses coming in aren’t inherently bad, but we choose to ask about how it can be done – and why it isn’t done – in a way that seeks to benefit a larger cross-section of people.

[9] For instance, recently, in our neighborhood, with the help of our Metroparks, and thus our tax dollars, a place for a business was created as a part of forthcoming and much-touted Glass City Riverwalk; the business that moved in was the Toledo Pickle Co.  Time on the pickleball court will cost anywhere from $10 to $20 an hour.[4] Further down the street, there is a beautiful and well-curated private club, Tolhouse, where dues are between $100-per-month (under 30 years old) and $255-per-month (over 40 years old), not including the unspecified “monthly minimum spends.”[5] Other recent developments in the neighborhood include the Wonder Bread Lofts, which cost between 1,250 to 1,750 dollars per month[6], and Ostrich Towne, a series of storefronts that hold many fine businesses and which has been allowed to take over one of the city’s alleyways.[7] What if business leaders in our community were presented with opportunities to work with large and reputable non-profits, like the Local Initiatives Support Corporation (LISC)[8] or the local Public Housing Authority, under its Section 3 program, to create opportunities for work amongst adults and youth in this community of disinvestment?[9]

[10] The businesses in our neighborhood have been successful money-makers and leading lights in neighborhood redevelopment, and they therefore would have the capacity to take on community members who are ready and prepared to create self-chosen “redevelopment” in their own lives. Grassroots organizations, such as our churches, other faith communities, clubs, or organizations, could be worthwhile partners through which to find people in the community who desire and have the social support (social capital) needed to bring about major life transitions.

[11] One of the blessings that we have in our denomination is a pervasive belief in accompaniment, an important theological gift from our South American siblings.[10] With our people and the resources we gather to support mission congregations like Salem, we could come alongside neighborhood residents and area business leaders in the process of redevelopment in order to support the vocational development of our siblings in neighborhoods that are undergoing development or gentrification. For example, many of the young adults who were once a part of Salem’s Teen Program (which explored various vocations and in which the YMCA once gave sessions about job-readiness) seek to work at places like the Amazon Warehouse or steel factories just over the Michigan border. Some of those jobs are better than others, in my humble opinion, but with actual and intentional community outreach, young people – and older adults too! – in these communities can be found and cultivated for the vocations which might prove to be life-changing for them, giving them livable wages and further opportunities for self-determination in life. These community members could be invested in and could develop for themselves pathways to becoming business owners in their own neighborhood which was once neglected. If business professionals in our area, politicians, and other professionals were sincerely interested in such developments and could walk with us all in accompaniment, these vocational avenues could be built.

[12] Additionally, business leaders have a great opportunity to be more than just leaders in business; As a real partner with neighborhood residents, with neighborhood places like our congregations, and with others key players, they can be important community leaders and social engineers. As I have heard Robert Luption, the author of Toxic Charity, remark in one of his in-person talks, business leaders are a tremendous resource and we need to eventually develop a theology that includes how to use their gifts for the good of all people.[11]  If there were or are business leaders who are open to vocational development and work with people in the neighborhoods into which their businesses are moving, they could affect tremendous change; together, we could benefit our neighborhoods in extremely powerful ways as a team. If business leaders were able to effect the sort of humility that healthy disciples are taught and live-out, they could use their knowledge, power, and access to pave the way for initiatives that are larger and even more impactful than just vocational development.

[13] For an important example, in Toledo, one of the ways that the City’s Department of Housing and Community Development has acted helpfully towards community members is by creating first-time home-owner opportunities, such as help with down payments.[12] For my part, along with our local housing authority (Lucas Metropolitan Housing), I helped to advocate for a congressional appropriation, which Rep. Marcy Kaptur obtained, for first-time owner opportunities to be created in our neighborhood. This project will create around a dozen first-time home-owners, with some of the restored homes needing quite a few repairs and others needing only minimal work. The goal for both programs is a neighborhood with less vacant properties, further community development, and – most importantly for me – benefit for neighborhood members outside of only the wealthy alone. Those first-time home owners, the majority of whom have been long-time community residents, will now be building equity with their homes and, possibly for the first time, it may give them a chance to build generational wealth and ride the same wave that the privileged new community members are attempting to ride.

[14] My assertion, however, is that if successful business leaders were also active in these programs – and not just people in the social service realm – and advocating for programs such as these then further resources could be developed and more home-owners could be generated, more people accompanied and uplifted. What would it look like for an insider at the Rotary Club to champion such programs and opportunities? What further investment could then be made with their donations, volunteering, or expertise? A coalition of business owners who are intent on building socially-beneficial pathways in a neighborhood undergoing redevelopment and threatened with gentrification could, I believe, with the power and access they possess, be more effective than pastoral, non-profit, or even political leaders alone. What would it mean for a business leader to seek first-time home-owner opportunities from Rep. Kaptur or Senator Moreno? What could 5/3^rd Bank, which has a headquarters in downtown Toledo just down the road from our neighborhood, do with our Local Initiatives Support Corporation or NeighborWorks Toledo Region? They might be able to build even more homes for people from a variety of income levels.

[15] Furthermore, with business leaders partnered together with people from the neighborhood and other community leaders, we could engage in multi-sector advocacy with our city’s other organizations, such as the MetroParks, the Homelessness Board, and Human Relations Commission.  We could discover what is required for the long-term stability and needs of people in our neighborhood. Business leaders using redevelopment to make a profit can also “do justice” in non-imperialistic ways, in accompaniment with people from the neighborhood and other organizations.  Imagine would could be achieved! It may sound grandiose – and maybe it is – but I honestly believe that there isn’t much that we couldn’t do or accomplish in such as situation; people want business leaders and corporations that act ethically and responsibly; people would love to support business leaders and corporations that act in ethically-responsible and socially-beneficial ways.  I think that we only need the leaders, community members, the shepherds, and the prophetic imagination necessary to accomplish it.

[16] Finally, while much has been made of the economic opportunities in the neighborhood, another important piece is to build up the self-esteem, pride, and buy-in of neighborhood residents. This could lead to a better overall neighborhood ethic that will benefit the businesses and people in the neighborhood. Opportunities for people in our once-neglected communities to help plan new parks, form community associations, and successfully advocate for the repair of their sidewalks and roads are opportunities to build up residents in the neighborhood and to change some of the harmful narratives that people in neglected neighborhoods find themselves hearing and living.

[17] People who can successfully work with the Landbank to create a side-yard out of a formerly vacant lot next door to them gain buy-in and care about their neighborhood. For example, on the street where Salem exists, we have concerns about speeding cars. Because the majority of the tenants around us at this time have children, we were able to complete and turn-in a speed study request for the City of Toledo. This will prompt the city to study the speeds on our road and they could take action to put traffic calming measures into place. This shows how businesses can help work with residents to achieve these outcomes. Since such partnerships are cross-sector partnerships, they carry more influence than initiatives coming from a single individual alone.

[18] Furthermore, at Salem, through a grant that was shared with us from a large non-profit partner, we were given the resources to start a community association. That association, NORF-end Neighbors (Neighbors Offering Resources and Fellowship), now has neighborhood leaders, people experiencing economic poverty, leading our annual block party, safe trunk-or-treat, holiday family assistance, and annual community baby shower.[13] The pride that members of the community association feel for their organization and their work would not have been possible if we had tried to do it all under the name of the church alone. By having their own group and voice, their own brand and logo, their own responsibilities and officer roles, the members of our community association ensure that the beneficial work of the church continues even if we were to disappear one day.  Likewise, socially-responsible businesses and corporations can create entities like community associations and consider it an investment in the area, building them in order to make a better social environment for all, including the businesses themselves.  It might not even require a lot of capital from them to do so, only time, care, and effort.

[19] I want to bring us to a conclusion by telling a story from one of my seminary professors.  At Trinity Lutheran Seminary, I was able to talk my way into a senior-level course during my first year of studies. In the subsequent years, Dr. Tim Huffman then requested me to be his teaching assistant. This meant that I heard a lot of his material repeatedly. My favorite illustration he used was the following, perhaps accidentally paraphrased by me: “Let’s say that you had two sons, and they were very different. One son grew up to be athletic and strong. The other, for whatever reason, became scrawny. One day, your sons get into an argument and it escalates into a physical altercation. Now, you love both of your sons, but which one do you rush to protect in order to break up the fight?” The answer was the son who wasn’t regarded as being as strong. Though it’s not a perfect illustration, as there is never such a thing, I like this story because it illustrates for us God’s preferential option for the poor. In our context of 21^st-Century United States of America, in local situations where businesses are likely to be prioritized over individual citizens, especially citizens of color who have less economic means because of historical systemic realities, we have to ask and encourage those who have been most empowered, most fortunate, most privileged, and who have the tide of intersectionality in their favor to be mindful and work alongside of people who have lived on the underside of popular history.  We must work for those human beings who have been rendered most vulnerable, which includes people experiencing poverty.

[20] As Christ’s disciples, we are called to the aid of the child of God who faces the stronger opponent. When those who have the most available resources share with and find opportunities of empowerment for those who have been rendered most vulnerable by circumstances and our systems, the beloved community begins to get knit together, ultimately for the benefit of all people. When powerful people with a privileged place of priority, like leaders in business and finance, work with people on the margins and the organizations that exist with them, beautiful things can happen, like a form of redeemed redevelopment that helps people to ride the wave of investment instead of being displaced and stranded ashore by it. Grace, humility, and accompaniment are necessary for this to happen in a healthy way, of course, but when all of that comes together, we will find that, corporately, as business leaders and community members, we can shape a world that looks and feels better for all of us. That, in the context of gentrification, is the start of what corporate responsibility looks like.

[1] https://censusreporter.org/profiles/86000US43604-43604/

[2]  https://cdn.toledo.oh.gov/uploads/documents/Vistula-Master-Plan-2020.pdf

[3] https://sites.utexas.edu/gentrificationproject/understanding-gentrification-and-displacement/

[4]  https://toledopickle.com

[5]https://tolhouse.com/membership#:~:text=Must%20be%2021%20years%20old,What%20Happens%20Next

[6] https://skaenterprisesllc.managebuilding.com/Resident/public/rentals/222384

[7]  https://ostrichtowne.com

[8]  https://www.lisc.org

[9]  https://www.lucasmha.org/section-3

[10] https://wordandworld.luthersem.edu/wp-content/uploads/pdfs/25-2_American_Empire/Interdependence%20rather%20than%20Domination.pdf

[11] https://jofum.com/urban-voices/gentri-church/

[12] https://toledo.oh.gov/residents/landlord-tenant-resources/down-payment-assistance

[13] https://www.norfendneighbors.com