Pratt Center for Community Development

Bedford Stuyvesant Restoration Corporation (BSRC), Brooklyn, NY

Historically, Bedford Stuyvesant in Brooklyn was a stable working and middle class neighborhood with a solid residential core of brownstone row houses. As recently as the early 1950s, it was a racially and economically mixed community with a comfortable standard of living. Many of its residents were employed in Brooklyn's thriving manufacturing and shipping industries. But when suburban homeownership and highway expansion programs began to lure white families and manufacturers out of the city, Bedford Stuyvesant underwent dramatic changes. Between 1940 and 1960, its population shifted from 75% white to almost 85% African American and Latino. Once the neighborhood's racial composition began to change, banks undertook a policy of "redlining," refusing to grant mortgages or loans to the area's residents and businesses. At the same time, the neighborhood was ravaged by unscrupulous real estate speculators who played upon racial fears to convince white homeowners to flee the area by selling their houses at cut-rate prices. This led to the widespread exploitation of incoming African-American families, who were desperate for housing and were forced to pay exorbitant rents for overcrowded, substandard shelter. The neighborhood's deteriorated conditions were made worse by inadequate public services such as police protection, garbage collection, health care and education.

The Comprehensive Neighborhood Plan

Despite these seemingly hopeless conditions of poverty and urban decay, Bedford Stuyvesant had a strong base of neighborhood and block associations, churches, and other civic organizations that were dedicated to stemming the tide of decline. Over eighty of these community-based groups functioned under the umbrella of the Central Brooklyn Coordinating Council (CBCC), which served as one of the unifying forces for addressing neighborhood issues, particularly the needs of youth. During the early 1960s, CBCC became a leader in the War on Poverty, a national effort initiated by President Lyndon B. Johnson. By involving community residents in a participatory planning process, the group forged what was to become the blueprint for comprehensive physical, social, cultural and economic development in Bedford Stuyvesant. Through the efforts of CBCC's staff and volunteers, prominent community activists such as Elsie Richardson, and technical assistance providers such as Pratt Institute, the plan won the grudging endorsement of key city officials. The most significant opportunity to make this comprehensive plan a reality arose in 1966, when New York Senator Robert F. Kennedy agreed to tour the neighborhood and enter into dialogue with community leaders.

More Than Studies Needed

Senator Kennedy's famous tour of the neighborhood ended at a community-wide meeting at the local YMCA. Although Kennedy seemed sincerely concerned about the appalling conditions he saw, many residents of Bedford Stuyvesant were skeptical about the public sector's ability or commitment to take action. For too long, the neighborhood had been studied by a parade of academics, politicians and public officials. Judge Thomas R. Jones, a strong local leader and civil court judge, recalls challenging the Senator. "I'm glad you're here," he stated. "But I want you to know that your late brother Jack Kennedy already had seen and understood these things, and we're tired of being studied, Senator."

The Nation's First Community Development Corporation

Senator Kennedy proved willing to take up the challenge. Impressed by the strength of civic life in Bedford Stuyvesant, he decided to use the neighborhood as a testing ground for a new federally-supported model of community development. Working with the civic leaders that had forged the comprehensive plan for Bedford Stuyvesant, he helped establish the Bedford Stuyvesant Renewal and Rehabilitation Corporation. Soon after it came into existence, however, the organization reached an impasse around programmatic and leadership issues, and consequently split into two independent entities. While one entity (which went by the original name) focused on housing development, a new entity known as the Bedford Stuyvesant Restoration Corporation (BSRC) was created in 1967. As the beneficiary of national legislation crafted by Senator Kennedy and Senator Jacob Javits, the organization became recognized as the nation's first community development corporation (CDC).

In order to fulfill one of the CDC's primary goals - to strengthen the local economy and create jobs by bringing manufacturers and private investors into Bedford Stuyvesant - BSRC was assisted by a sister organization, the Development and Services Corporation (D&S). BSRC's role was to set policy and carry out community development programs, while D&S's role was to offer technical and fundraising assistance. This unusual dual structure was somewhat controversial. D&S; was managed primarily by representatives of the white power structure who were personally recruited by Senator Kennedy from the banking and corporate world. Restoration was directed mostly by African-American residents of the community who had long participated in Bedford Stuyvesant's rich civic life. Restoration's first chairman was Judge Jones, who was actively involved in community politics. The CDC's founding president was Franklin A. Thomas, a former New York City Deputy Police Commissioner who was born and raised in the neighborhood. Because of the respect he had earned in Bedford Stuyvesant, as well as the public and private sectors, Thomas was able to bridge some of the divisions in the community. He was also able to provide strong leadership to the organization, despite its dual structure. Although it was sometimes criticized for being patterned on a "colonial" model, this structure was also praised for its ability to bring together two very separate worlds for a common purpose. As Ben Glascoe, a former organizer on BSRC's staff recalls, "The legislation was unique in that it made for a marriage between the community and the business world. And in those days that meant the black world and the white world."

The Fight Against Blight

In the spirit of the planning process that had led to its creation, BSRC undertook a comprehensive range of strategies to revitalize Bedford Stuyvesant. An essential part of this community development strategy was to improve the physical conditions of the neighborhood, with the aim of catalyzing numerous private and public revitalization efforts in the area. For instance, Restoration organized residents to pressure municipal agencies to improve basic services such as garbage collection and infrastructure maintenance, thereby fighting urban blight.

One of the CDC's most successful physical revitalization strategies was a facade improvement program that helped residents to weatherize and renovate the exteriors of their homes. These efforts not only built pride in the community, but also created desperately needed jobs. BSRC made a point of employing local youth in these projects so that they would acquire a job track record and have opportunities to enter construction trades. By 1992, Restoration had rehabilitated the facades of over 4,200 units of housing in a 150-block area, creating over 2,000 temporary and permanent jobs.

To address the consequences of redlining, the organization created a home mortgage pool in 1967, eventually attracting $65 million worth of investments from public and private sources. More than 850 loans totaling $17 million were granted within BSRC's first five years of operation. The organization also created a subsidiary to rehabilitate deteriorated housing that had been abandoned by private owners and had fallen into city ownership. By the early 1980s, Restoration had developed over 3,000 units of commercial and residential property.

One of BSRC's most noted physical development projects is a multi-purpose complex known as Restoration Plaza. This shopping center was created by rehabilitating an abandoned milk bottling factory that was prominently located on Fulton Street, one of Bedford Stuyvesant's main commercial thoroughfares. Since its opening day in 1975, it has housed numerous businesses that help boost the local economy. Today, the complex accommodates BSRC's headquarters, two commercial banks, utility companies, a 214-seat theater, an ice-skating rink, a supermarket, two underground parking garages and numerous retail franchises and community-based social service organizations. Over the years, Restoration Plaza has served as a steady commercial anchor and a powerful symbol of hope for the revitalization of Bedford Stuyvesant.

Creating Jobs through Business Development

Another part of BSRC's comprehensive development strategy was to create jobs through business development. BSRC's first successful attempt to locate a major employer in the heart of Bedford Stuyvesant was made possible by one of D&S's board members, who was an executive at IBM. By locating one of its manufacturing plants in a vacant brick warehouse, IBM created 400 jobs for local residents. The plant continues to operate to this day, and is now worker-owned and managed.

Finding other large-scale manufacturers who were willing to locate in the area proved difficult. Restoration continued its business development strategy, however, by providing financial and technical assistance to small enterprises. Between 1969 and 1979, Restoration's loan programs provided over $8.5 million in desperately needed capital to more than 125 local businesses. These enterprises have created and retained an estimated 1,000 jobs and have attracted nearly $13 million from conventional investment sources. Through a revolving loan fund established in 1984, Restoration continues to offer low-interest loans to small businesses.

Over the years, BSRC has invested equity in a number of business ventures, including a for-profit real estate management company, a drug store, a fabric design shop, a supermarket, a fast food franchise, a clutch manufacturing firm and a recording company. During the economic recession of the 1980s, some of these ventures began to operate at a loss and were divested. Others have been quite successful, however. The Pathmark supermarket, for instance, thrives to this day in Restoration Plaza, and has become a significant source of revenue for the organization.

Addressing Social Needs

Another important dimension of BSRC's work over the years has been social development. To combat high rates of unemployment and illiteracy in Bedford Stuyvesant, the organization offers job referral, educational and youth services to area residents. Up until the 1980s, BSRC ran numerous summer youth employment programs with funding under various federal programs, including the Comprehensive Employment and Training Act (CETA). This program provided opportunities for thousands of participants to acquire basic skills while working on BSRC's revitalization projects. Today, BSRC's youth programs are operated with private funds.

Restoration recognized early on that one of Bedford Stuyvesant's most urgent social issues was a lack of preventative health care, which forced many residents to seek medical treatment in hospital emergency rooms rather than in doctors' offices. Under the leadership of Dr. Vernal Cave, BSRC established a family health care center in 1976, making regular visits to the doctor possible for 55,000 patients a year.

Another part of BSRC's social development mission is to foster a sense of pride and identity in the community's heritage and culture, especially among youth. Thus, BSRC has an art gallery and offers classes in music, dance, and the visual arts. Through the Billie Holiday Theater in Restoration Plaza, it hosts numerous musical, dramatic, and educational productions.
The Struggles of the 1980s

Despite the impressive breadth and scope of its programs, BSRC became, to some extent, a victim of its own success in the 1980s. For over fifteen years, the organization had flourished with significant support from the federal government. Because it served a large community of over 300,000 people, BSRC had received a substantial share of the $100 million appropriated for the federal Special Impact Program for CDCs between 1966 and 1981. With the advent of the Reagan administration in the 1980s, however, BSRC suffered heavy losses. One of its strong points - its close relationship with federal government - became a weakness when state and local governments became the primary source of funds for community development under President Reagan's policy of New Federalism. Reflecting on BSRC's funding history, Ben Glascoe observes, "I think in all honesty we were somewhat too reliant on federal funds for a long time. And we were a little too late getting into state and city arenas for funding."

When the Reagan administration eliminated the Community Services Administration in 1983, BSRC lost nearly all of its core administrative support. Like many other CDCs, the organization began to operate at a deficit and was forced to either restructure or sell many of its assets, eliminate some of its social programs, and downsize operations during the 1980s. Drastic reductions in staff made it difficult for Restoration to sustain the comprehensive range of programs that it pioneered in its earlier years. These cuts also had a negative impact on the organization's ability to maintain contact with the community. In its early years, BSRC ran five storefront neighborhood centers that offered social services and fostered community participation in its programs. The need to reduce operating costs in the 1980s forced the organization to close these facilities, with the effect of reducing the CDC's presence in the community.

A Coming of Age

In recent years, BSRC has begun to come of age. Under the leadership of Roderick Mitchell, who has served as BSRC's president since 1988, it has focused on expanding its funding base, reducing its deficits, addressing the deferred maintenance of its physical assets, and rebuilding relations with community residents, particularly through its family and youth initiatives. To help strengthen neighborhood businesses, the organization is looking for ways to expand its revolving loan fund, to establish a revolving equity fund, and to create targeted technical assistance programs. Despite its hardships during the 1980s, BSRC has had an impressive record of achievement over the past two and a half decades. It has attracted over $370 million worth of investments to Bedford Stuyvesant since 1967, and, more importantly, has given thousands of people the opportunity to engage in management, entrepreneurship, decision-making and control of the community development process. The organization has undoubtedly made a significant impact on Bedford Stuyvesant, as well as the wider field of community development.

Bedford Stuyvesant Restoration Corporation (BSRC)
1368 Fulton Street
Brooklyn, NY 11216
(718) 636-6900