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DATE: January 23, 2009
TO: Michael Rubinger, President/CEO
Local Initiatives Support Corporation
FROM: Pam Kramer, Executive Director
SUBJECT: Summary of Duluth LISC 2008 Accomplishments
Section I: HIGHLIGHTS
A. Creating Neighborhoods That Work – At Home in Duluth Sustainable Community Initiative: Duluth LISC made great strides in helping both people and places prosper in 2008 through investment in real estate projects, providing technical assistance, and financing/operating support to our partners and securing substantial financial and policy support.
Duluth LISC’s 24 member Creating Neighborhoods That Work – At Home in Duluth (CNTW) collaborative provided time, energy and money to advance implementation of short-term and long-range projects and programs in the five Sustainable Community neighborhoods of the Central Hillside, East Hillside, Lincoln Park, West Duluth and Morgan Park. Facilitated by Duluth LISC, and supported by an 11 member “At Home” Core Group and the lead organizations of Churches United in Ministry (CHUM), Neighborhood Housing Services of Duluth (NHS Duluth) and Spirit Valley Citizens Neighborhood Development Association (SVCNDA), we broadened our efforts to include poverty reduction, workforce development, neighborhood clean-ups, recreational and educational activities, investment in small business development, and community safety initiatives.
Our second annual CNTW Connecting the Dots Showcase and Assembly brought together nearly 300 people to celebrate progress and commit to continued involvement. It featured speeches by Mayor Don Ness and Senator Amy Klobuchar (by video) honoring of “Neighborhood Heroes” selected by each neighborhood, updates on progress with our Sustainable Community plans and an inspiring message by LISC Consultant, Jim Capraro. The event also featured over 30 partner exhibits with information on available resources in the neighborhoods. It received wide publicity and provided energy and momentum, which helps support and sustain our work.
Great progress was also made in 2008 to fund Duluth LISC and the Sustainable Community Initiative. We secured over $1,080,000 in program and operating support from foundation, corporate, individual and government supporters, far exceeding our annual goal of $292,600. In 2008, we provided $55,700 in operating support to the Creating Neighborhoods That Work partners, $632,883 in capacity building grants, and $619,000 in loans and recoverable grants. To date, we have secured $5,939,116 for our CNTW Sustainable Community Initiative, which is 94% of our initial three year goal. Key three year support has been secured from: the Bush, John S. and James L. Knight, McKnight, and Northwest Area Foundations, and State Farm Insurance. This, and national LISC’s investments, helped leverage support from new funders and sustain local support.
The following highlights key progress and accomplishments in the five Sustainable Community objectives:
1. Expanding investment in real estate: Duluth LISC invested predevelopment and extensive technical assistance investments totaling $619,000 to further neighborhood revitalization and citywide affordable housing, levering over $10,099,600. This included facilitation of the “At Home” collaborative’s application for Minnesota Housing and Greater Minnesota Housing Fund resources for single family housing redevelopment and home-ownership assistance. $701,500 was secured to assist 34 households. The total secured since 2000 is $13,493,092 to assist 770 households. Key examples of the many LISC-supported real estate investments underway in our Sustainable Community neighborhoods and in Greater Duluth are:
• Duluth Heritage Sports Center, Boys and Girls Club and Clyde Park investment – We built on our investment of extensive technical assistance and financial commitment to the $19 million, 10 acre, Duluth Heritage Sports Center in Lincoln Park through the award of a $200,000 NFL/LISC Grassroots Program grant to the Boys and Girls Club of the Northland. It will fund artificial turf to be used by neighborhood youth, junior league and flag football teams providing a safe place for youth to practice and get active. This investment was celebrated at a community-wide event on December 2, which included Congressman Jim Oberstar, Minnesota Vikings Owner, Zygi Wilf, Mayor Don Ness, two Vikings players, Todd Johnson, Executive Director of the Boys and Girls Club and Pam Kramer, Duluth LISC. Over 250 people attended, including nearly 50 very enthusiastic young neighborhood Vikings fans.
The first phase of the Heritage Sports Center opened in July. It includes a 1,200 seat hockey arena for area high school teams and public use, a restored Heritage Hall that includes a 12,000 square foot Boys and Girls Outreach Tutoring Center and a central lobby, refreshments and office space. The new turf will be installed in Phase II: the 1,000 square foot Heritage Pavilion, a multi-purpose field house that will include training facilities for hockey, football, softball, track and other activities. It will be completed in March 2009. In addition, Duluth LISC invested a $21,000 recoverable grant to assist the Duluth Children’s Museum in relocating and expanding their services to local children and families. They are undertaking a $3 million capital campaign for an adaptive reuse of a former warehouse on the Clyde Park site, adjacent to the Heritage Sports Center.
We continue to work with LISC New Markets Support Corporation and property owner, Alex Guiliani to secure NMTCs to complete the financing for the $8.5 million Clyde Park development. This will include the Clyde Park Market, Sports Medicine, and Retail Center, expected to close in March 2009, a Lincoln Park top economic development priority.
• Duluth Veterans Place – Duluth LISC provided a $50,000 recoverable grant and committed $45,000 in Home Depot Foundation funds to assist in the development of 13 units of permanent, supportive housing for homeless veterans. This project is part of the West Duluth CNTW Plan and the Heading Home St. Louis County Plan to End Homelessness. It is being developed between the Northern Communities Land Trust (NCLT), an “At Home” member and the Minnesota Assistance Council for Veterans. SVCNDA secured $20,000 in Home Depot funds for landscaping for this project and has been extremely supportive. The project has strong Minnesota Housing and City of Duluth support and is expected to get under construction in Spring 2009.
• Gimaajii Mino-Bimaadiziyaan – Provided $10,000 in grant funds to help secure historic tax credits and develop a Green Development plan for this adaptive reuse of the historic 90 room SRO, former YWCA into permanent, supportive housing for homeless and low-income American Indian families. It also includes an American Indian Center with a medical clinic, offices and support services. Located in the Central Hillside, it is part of the “At Home” plan. Construction is expected in Summer 2009.
• Urban Studios Apartments – Provided a $25,000 Home Depot Foundation green development grant and a $50,000 recoverable grant (2007) to the Women in Construction Company (WiCC) and Training Program for development of eight affordable units and one caretaker unit in a mixed-use facility which also houses their offices and work space. This is located in downtown Duluth near the Central Hillside. It is expected to be completed in March 2009 providing affordable, walk-to-work rental units for downtown employees.
• Harrison Community Center – Supported through a small $1,000 grant the Lincoln Park Community Club and Lincoln Park Business Group’s effort to restore and re-open this City-owned community gathering space, which was in danger of permanent loss due to an arson fire and the City’s financial shortfall to pay the insurance deductable. This successful $20,000 grassroots effort enabled the building to be restored and reopened with much neighborhood fanfare in September 2008.
2. Increasing family income and wealth:
• Duluth At Work – In partnership with the City of Duluth, we launched the Duluth At Work poverty reduction and workforce development initiative in July. A three-year, $400,000 grant from the Northwest Area Foundation and the Minneapolis Foundation’s Northwest Area Foundation Fund, as well as $80,000 from the John S. and James L. Knight Foundation, helped to fund a consultant Program Coordinator, Emily Larson, and help three nonprofit providers to assist 22 low-income employees and/or small businesses. They will receive intensive case management, skill development and mentoring support for three years, with a goal of increasing incomes or business assets by at least 25%. Priority is on the CNTW neighborhood residents and small businesses. This program, modeled after the successful City of Portland, Oregon Economic Opportunity Initiative, is funded and co-administered by City CDBG funds. It will serve 48 individuals/businesses through contracts with four nonprofits.
• Homeownership and Asset Building Initiatives – Duluth LISC has invested $28,480 in State Farm and other Sustainable Community Initiative funds in supporting 2008 asset and income building programs of Community Action Duluth, a CNTW Core Group Member including: Family Assets for Independence in Minnesota (FAIM) with 58 persons using their matched savings to purchase an asset; HOPE VI Matched Savings Program is assisting 17 persons who formerly lived at Harborview Public Housing; Home Repair Matched Savings Program that will assist up to 12 persons to make needed home repairs/improvements; Financial Education with 120 persons completing the 8-12 hour course; and Tax Clinics assisted over 1,200.
Through operating support to NHS Duluth and funds from St. Mary’s/Duluth Clinic Health System we have continued to support homeownership counseling and training, the Hillside Homeownership Incentive Program and Hope in Lincoln Park employer-assisted homeowner entry cost assistance programs, downpayment assistance preservation loans, home repairs and mortgage foreclosure referral assistance assisting 137 households since 1999.
3. Stimulating economic activity: Duluth LISC increased its role in stimulating economic activity, improving access to education and supporting healthy environments in several ways:
• CNTW Storefront Enhancement and Commercial Corridor Revitalization – Over the past year, we invested $50,000 in four storefronts in West Duluth and Lincoln Park and helped to expand, attract, or retain 12 businesses in West Duluth, Lincoln Park, and Morgan Park. One example is the new Stewarts Sporting Goods store that opened adjacent to the Heritage Sports Center.
The West Duluth Business District, through SVCNDA’s leadership, has been especially successful with over $9 million in local, state and federal resources invested in streets, infrastructure and streetscape, new businesses, and Memorial Park improvements in 2007-2008.
• ArtWorks Partnership – In March 2008, Duluth LISC co-sponsored and led a workshop at ArtWorks: Activating a Creative Economy; a day-long conference attended by over 300 individuals from the business and arts communities. It focused on ways to activate a creative economy and increased economic activity. LISC staff continues involvement in supporting Central Hillside strategies to establish an Arts and Culture District, a key priority for Central Hillside residents in the “At Home” neighborhood plan. Seed funds have been provided by Duluth LISC, ArtWorks and other resources to secure a consultant to help move this forward in 2009.
Through our Duluth At Work program, we recently invested $60,000 to create a new Artists and Entrepreneurs Program, which will be run by the Northeast Entrepreneur Fund and will assist eight artists in the five CNTW neighborhoods to grow their businesses. The initial marketing will be with Central Hillside residents.
• Duluth At Work – A component of the Duluth At Work initiative is to assist with business retention/expansion by providing technical assistance and financial support. The Growing Neighborhoods Business Program has reached out to over 350 small, neighborhood businesses in its first six months of operation by the Northeast Entrepreneur Fund.
4. Improving access to quality education:
• School Long Range Facilities Plan Partnerships – Duluth LISC, NHS Duluth, SVCNDA, and Independent School District 709 partnered on implementation of the School District’s Facilities Plan and the Sustainable Community plans. Work is underway to explore adaptive reuse of the soon-to-be closed Lincoln Park Elementary school, as well as coordinate on expansion and redevelopment for school, park and community use in the Central Hillside, East Hillside and West Duluth. We are also exploring federal Safe Routes to School funds to ensure safe, healthy neighborhood resident access to the schools.
• Service Learning and State Farm Educational Initiatives – State Farm funds are supporting two separate educational programs at the Morgan Park Middle School: 1) a service learning partnership; and 2) a truancy prevention program, which assisted 80 students in 2008 in improving attendance and decreasing risk factors. Service Learning summer school programs included community/teacher involvement in an historic community tour, St. Louis River water monitoring, and a cleanup/planting day at the Community Center. Sixty (60) summer school children and 15 adults worked with teachers to make these excellent learning activities building blocks for the Service Learning projects that began in January 2008. They included a Health Fair and survey of students on neighborhood needs and issues. As of 2009, LISC/State Farm Service Learning will occur in two additional schools: Laura MacArthur Elementary School and Denfeld High School located in West Duluth.
5. Supporting healthy environments and lifestyles:
• CNTW Community Safety Initiative – With support from national LISC’s Community Safety Initiative (CSI) and a strong partnership led by the Duluth Police Department, NHS Duluth, and CHUM, much progress has been made in ensuring all Duluth’s neighborhoods are safe and healthy.
• Fit City Duluth – A new CNTW partnership has formed with emerging citywide nonprofit, Fit City Duluth, whose mission is to create a healthier Duluth. This has generated interest in bike-ability/walk-ability changes to neighborhood central corridors, the federal Safe Routes to School program, the T4 American program, pursuing a local “Complete Streets” policy, and help in implementing broader CNTW goals.
B. Policy Initiatives: (local, state and federal level)
• Leadership on the mortgage foreclosure issue as the Duluth/Northeast Minnesota representative on the Minnesota Foreclosure Partner, Council and the Mayor’s Foreclosure Task Force. Also in helping to develop the City/County application for Neighborhood Stabilization funds and exploration of National Community Stabilization Trust investment in Duluth.
• One of 10 members on the Mayor’s League of Cities trip to Savannah, Georgia with follow-up on citywide collaboration to address and reduce poverty.
• Leadership in bringing the Transportation for America Campaign, LISC Green Jobs resources and other national resources to Duluth.
• Appointment to the City of Duluth’s Zoning Advisory Committee to implement the City Comprehensive Plan, updating the zoning and continued leadership as Chair of the Knight Community Building Charrette Stewardship Group.
• Help in securing federal delegation support for HUD Section 4, CDBG, Economic Stimulus and transportation funding, in partnership with Twin Cities LISC.
• Member of the Minnesota Housing Resource Advisory Committee, also in partnership with Twin Cities LISC and others.
C. New community development partners:
• The Minnesota Vikings and Boys and Girls Club of the Northland as partners on the Heritage Sports Center.
• The Zeppa Foundation and their Program Officer (City Councilor), Tony Cuneo, on the Duluth At Work health and Fit City Duluth and T4 America on Transportation issues and in development of a Green Jobs Program.
• Northwest Area Foundation as the lead funder of the Duluth At Work program.
• The John S. and James L. Knight Foundation as a major funder of Duluth’s CNTW initiative.
• United Way of Greater Duluth President, Paula Reed, and LHB Architect and Engineering, with CEO Bill Bennett, as new organizations serving on our LAB.
Section II: LEADERSHIP AND RECOGNITION:
A. Special Honors:
• Duluth LISC was recognized by the Mayor and media as a leader in the accomplishment of the goal of creating a net gain of 1,000 housing units by 2010. This goal was achieved in June 2008.
• NCLT secured third place in a national competition, receiving $250,000 for green rehabilitation work through HOME CHDO funds for Energy Efficient and Environmentally-friendly Housing for Low Income Families.
• SVCNDA (business development) and NHS Duluth and CHUM (CSI) each received a “Building Healthy Community” Award at the Duluth LISC Annual Meeting on November 6th.
• Steve O’Neil, County Commissioner and staff member of CHUM was awarded a Virginia Binger Award by the McKnight Foundation; and
• The Heritage Sports Center received the Economic Development Association of Minnesota (EDAM)’s 2008 Redevelopment Award.
B. Media Coverage:
• Recognized locally through local PBS broadcasts and at the Duluth Chamber of Commerce Annual Dinner, attended by over 1,600 as an investor in Fresh Duluth, a half-hour DVD about Duluth as a vibrant place of opportunity and assets.
• Recognized for our investment in Center City’s Housing Corp’s. New San Marco through their half-hour DVD production, No Losers, which has show on local PBS and at numerous events. LISC/NEF were sponsors of this DVD.
• Community development activity and successful local Sustainable Community fundraising resulted in several well-attended press conferences, including Northwest Area Foundation, Knight Foundation, the Home Depot (Urban Studios and Duluth Veterans Place), and NFL Grassroots (which got exceptional coverage due to the Vikings players and owners visit).
• Connecting the Dots II Showcase and Assembly and the Duluth LISC Annual Awards luncheon were also covered by TV and print media. Nan Stubenvoll, Program Officer, appeared with two lead agency representatives on Almanac North (WDIO TV) for Duluth LISC’s CNTW Sustainable Communities Initiative.
• Kris Ridgewell and the West Duluth Neighborhood Hero, Angelo Simone, were featured on an October radio show.
• “Connecting the Dots” billboards in each of our five neighborhoods, along with postcards, posters, and programs were distributed widely.
• A special video was prepared for the “Connecting the Dots” by Senator Amy Klobuchar.
• Pam Kramer appeared on television on local PBS’ Almanac North regarding the Housing 1000 goal 18 months ahead of schedule.
• Crime prevention meetings were covered in the Duluth News Tribune, Budgeteer, Hillsider and local television throughout the year.
C. Special Events:
Our Annual Awards Luncheon on November 6, 2008, which attracted 125 people and featured the newly appointed Commissioner of Minnesota Housing, Dan Bartholomay, former Senior Program Officer with the McKnight Foundation. According to Mr. Bartholomay, “Duluth LISC has created a lot of energy with community development organizations, the business community, and residents, linking assets for a sustainable community. The work done here is amazing.”
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