Evergreen Cooperatives

Evergreen Cooperatives. The Evergreen Cooperatives are a network of employee-owned, for-profit companies based in Cleveland, Ohio, designed to create jobs and build community wealth in historically disinvested neighborhoods. Launched in 2008, the initiative is a pioneering model of community economic development that leverages the purchasing power of large local institutions, known as "anchor institutions," to foster stable, green businesses. Its structure is inspired by the Mondragon cooperative model from Spain and aims to provide an alternative to traditional economic development strategies.

History and founding

The initiative emerged from a collaboration between the Cleveland Foundation, the city's Democratic administration, and local anchor institutions including the Cleveland Clinic, University Hospitals, and Case Western Reserve University. Key architects were community economic development expert Ted Howard and philanthropist John L. Zitzner. The model was developed in response to severe economic decline and poverty in neighborhoods like Glenville, following decades of deindustrialization in the Rust Belt. Planning began around 2007-2008, with the first cooperative launching operations in 2009, aiming to create a replicable model for inclusive economic growth.

Business model and structure

The operational framework centers on the "Cleveland Model" or "anchor institution strategy," which directs the procurement spending of large, place-based nonprofits toward locally owned businesses. Each enterprise is structured as a worker cooperative, where employees are member-owners who share in profits and participate in governance. A central nonprofit entity, the Evergreen Cooperative Corporation, provides centralized support services like human resources, marketing, and access to capital. Financing has involved program-related investments from foundations, loans from community development financial institutions like the Northern Ohio fund, and patient capital from partners. The businesses prioritize green and sustainable industries to align with modern market demands.

Member cooperatives

The flagship enterprise is Evergreen Cooperative Laundry, an industrial laundry providing services to the healthcare sector. Green City Growers operates a large-scale, climate-controlled hydroponic greenhouse producing lettuce and herbs for regional distributors and grocery chains. Evergreen Energy Solutions provides energy efficiency and renewable energy installations, including solar panel services, for commercial and institutional clients. These cooperatives are physically located in or near the University Circle and Midtown Cleveland areas to maintain proximity to their anchor institution customers and the employee-owner community.

Impact and economic development

The primary impact has been the creation of living-wage, wealth-building jobs for residents of disadvantaged neighborhoods, with employee-owners building equity through patronage dividends and ownership stakes. The model has contributed to local economic stabilization by recirculating capital within the Greater Cleveland economy and reducing wealth inequality. It has gained national and international attention as a case study in community wealth building, inspiring similar initiatives in cities like Pittsburgh, Rochester, and Washington, D.C.. The cooperatives also advance sustainability goals through their business practices, contributing to the city's environmental initiatives.

Challenges and criticism

The initiative has faced significant hurdles, including slower-than-anticipated growth in jobs and revenue, and difficulties in achieving financial self-sufficiency without ongoing philanthropic support. Some critics argue the model has not scaled to its originally envisioned potential or transformed the broader regional economy. Internal challenges have included managing the complexities of democratic workplace management and ensuring effective training for employee-owners. The reliance on a small number of large anchor institution contracts has also presented a concentration risk, making the cooperatives vulnerable to changes in procurement policies at institutions like the Cleveland Clinic.

Category:Organizations based in Cleveland Category:Cooperatives in the United States Category:Community economic development Category:2008 establishments in Ohio