The Milwaukee Bucks Fiserv Forum project is an illustration of the way a professional sports organization can leverage an arena or stadium project to enhance the growth of small businesses to create job opportunities that strengthen the local community. Since its completion in 2018, the Fiserv Forum and the surrounding 30-acre area known as the “Deer District” has become a premiere location in Milwaukee’s downtown area. The crown jewel of the development is a world-class arena and an open-air entertainment plaza adjacent to the arena. In non-COVID-19 times, the Fiserv Forum is a destination hosting more than 200 events per year, including Milwaukee Bucks basketball games and national touring acts.
The Deer District project was catalytic to the physical development of downtown Milwaukee and a stimulus for diversity and inclusion efforts in the region. Husch Blackwell recently hosted a panel of representatives from the Milwaukee Bucks, the City of Milwaukee, ZS Architectural Engineering, LLC, and Cross Management Services, Inc., all of whom were integral components of the historic collaboration to ensure a local and diverse workforce for the construction of the Deer District.
The rules of the game and starting lineup
One of the funding vehicles for the Deer District development project was a $47 million contribution from the City of Milwaukee. On December 22, 2015, the City of Milwaukee and the Milwaukee Bucks’ real estate development arm entered into an agreement for the construction of Fiserv Forum and the Deer District. As part of the development agreement, Deer District, LLC agreed to meet various diversity and inclusion goals relating to construction. The goals included:
- Under the City’s Residential Preference Program, 40% of all on-site construction hours were to be performed by City of Milwaukee residents who were unemployed or underemployed and living in the six most economically depressed zip codes in Milwaukee. All workers were to be paid a living-wage;
- 25% of all construction spending was to be allocated to certified Disadvantaged Business Enterprises, Small Business Enterprises, or Small Disadvantaged Businesses; and
- 18% of all professional service spending was to be allocated to certified Disadvantaged Business Enterprise, Small Business Enterprises, or Small Disadvantaged Businesses.
To ensure that the Milwaukee Bucks and Deer District, LLC met the diversity and inclusion goals, Cross Management Services, Inc. (“Cross”) and Prism Technical Management & Marketing Services, LLC (“Prism”), two local minority-owned inclusion consulting firms, were retained to coordinate and monitor supplier and workforce diversity goals. As part of the development agreement, Cross and Prism prepared monthly and quarterly Deer District Arena Development Inclusion Reports. Prism and Cross also utilized tracking computer software which allowed City of Milwaukee elected officials and the City’s office of Small Business Development to easily monitor the makeup of the Deer District workforce on a real-time basis throughout each of the construction phases.
The most significant method utilized to ensure that the project achieved the diversity and makeup goals was through the hosting of workforce development town hall meetings throughout each of the aldermanic districts in Milwaukee. This innovative process served to inform diverse contractors of business opportunities and community residents of available construction jobs and training programs, and acted as a forum for job seekers to network with employers. During the town hall meetings, job seekers were directed to a job portal for employment opportunities at the development, or alternatively to a training program to prepare for employment in the construction industry. Another function of the town hall meetings was to enable job seekers to access technology to create a computer-generated personal profile which highlighted their work experience and qualifications. Each job seeker was provided a score for each available position based upon how well their qualifications lined up with an available job.
City of Milwaukee Common Council member Ashanti Hamilton, a panelist during Husch Blackwell’s Construction Academy, attended several of the town hall meetings. Alderman Hamilton’s consistent message during the town hall meetings and during the panel discussion was to stress the importance of including all city residents in the Deer District development because their involvement would serve to build and maintain a strong and flourishing workforce throughout the city.
Valerie Jones of Cross Management Services, Inc., also a panelist during the Construction Academy, noted that the town hall meetings acted as a much-needed catalyst to facilitate the entry of minority job seekers into the workplace. Ms. Jones noted that this recruiting tool has and will continue to positively impact minority contractors and diverse skilled tradespeople in the local marketplace after project completion.
Unprecedented victory
The efforts of the Deer District and the Milwaukee Bucks led to the participation of businesses owned by women, minorities and veterans, and the hiring of City of Milwaukee residents striving to secure meaningful, family-sustaining employment, and boosted their visibility, experience, and opportunities for future success in the construction industry.
The Milwaukee Bucks exceeded all local hiring and contracting requirements. They surpassed the Inclusion Requirements goal for Professional Services at a rate of 21.3%,they surpassed the Construction Inclusion goal at a rate of 36.8%, and they eclipsed the RPP Inclusion rate goal at a rate of 42%. In all, more than $103.6 million was spent with certified Disadvantaged Business Enterprise, Small Business Enterprises, and Small Disadvantaged Business entities.
These outcomes were exactly the results the Milwaukee Bucks and the City of Milwaukee sought when they entered into this landmark partnership. The impact on the City, the region, and the construction industry will be evident in future projects. Deer District, LLC has further committed to various diversity and inclusion goals relating to the construction of the remaining land surrounding Fiserv Forum. The positive momentum can help the region overcome construction labor shortages experienced in many trades. The Deer District is a prime example of how the construction of sports venues in “major league” cities can stimulate community improvements in underserved communities.
Joshua Levy is co-leader of Husch Blackwell's Construction & Design Group, and has represented clients for more than 25 years in construction disputes and claims. He is also an arbitrator with the American Arbitration Association.
David Carr is an attorney in Husch Blackwell LLP’s Milwaukee office and is a member of the firm’s Construction Litigation team.
