The municipal-driven urban development project meets the objectives of the 2014-2020 EU programme period to expand CLLD activities to urban centres. At the heart of CLLD activities are, for example, bottom-up development and citizen engagement and capacity building. The aim of the local project is to increase social inclusion, increase local social capacity, develop municipal service production and develop a sustainable partnership between the urban organisation and actors in the 3 rd sector. The core of the project is municipal-driven urban development projects. The process of project work is progressing in five stages: in the first phase, ideas are identified among local residents. Ideas are continuously collected through existing channels such as municipal initiatives, customer feedback and local events. In addition, ideas are identified in new channels (social media, online addresses, silent messages in service production). The collection of ideas is also carried out as a network work at sector 3 events and in various forums of civic participation. In the second phase, the ideas will be worked out as a collaboration between project workers and the promoters of the idea into project designs, after which they proceed to the communitisation phase, where project plans are communicated to local residents. The platform is a media platform for open debate and dialogue on the plans. At the same time, feedback on project plans is collected. During the co-operation phase, information about the opportunities for participating in projects will be made available to the target group and to local residents in general. In the fourth phase, the selected projects proceed to the production phase and then to the evaluation phase. Municipalities participating in the work and production phases are recorded as participants in the project.The project’s primary target group is Oulu residents aged 15-29 who are in a weaker position on the labour market. The indirect target group is local actors in the 3 rd sector, as well as the employees and managers of the city’s services. The results of the project are increased social inclusion of the target group and improved social capacity. In addition, the project improves locally driven development processes, strengthens the capacity of service production and partnership in the 3 rd sector, and enhances customer-oriented cooperation and financing processes in the area of the city’s services.