Neighborhood Development Center Building Neighborhood Economies from Within
www.ndc-mn.org
ANNUAL REPORT 2011
Entrepreneurs pictured, left to right: Grooming House • Kitchen in the Market • MAG Mechanical • El Coco Loco Catering • Sonora Grill • Sitters Circle • Alek Roslik • BG Food Market • Initiative Construction • Velasquez Family Coffee • Best Steak House • Muddy Paws Cheesecake • Metro Nursing Services, LLC • Global Translation & Interpreter • Miller Upholstering
Building Neighborhood Economies from Within
BOARD OF DIRECTORS
Dear Friends and Partners of NDC:
Kate Barr, Board Chair Executive Director, Nonprofits Assistance Fund Tim Boberg Senior Vice President, Hays Companies Muffie Gabler Senior Vice President, Wells Fargo Noelia Garcia Owner, La Loma Tamales Steve Gibson, Board Treasurer Senior Vice President, US Bank Justin Huenemann Program Officer, Northwest Area Foundation Leigh-Erin Irons Senior Associate, Fredrikson & Byron, P.A. Grover Jones Executive Director, NEON Tony Lemaire President & CEO, Western Bank Repa Mekha Executive Director, Nexus Community Partners Nneka Morgan Financial Advisor, Merrill Lynch Ed Padilla, Board Vice Chair President & CEO, NorthMarq Capital Arvid Povilaitis, Board Secretary Chief Operating Officer, Meritex Enterprises, Inc. Vivienne Williamson, Board Vice Chair Owner, Mighty Stitch, LLC May Xiong
As construction of the Central Corridor Light Rail Transit continues outside our windows, we are constantly reminded, despite incredible obstacles and barriers, of the awesome fortitude, resilience, creativity and optimism of all small business entrepreneurs. It inspires us at NDC to do more for aspiring entrepreneurs with barriers to opportunity, so that they might become one of our more than 525 open business alumni, generating more than $68 million of revenue into our regional economy and acting as role models and establishing socially connected gathering places in their neighborhoods.
Director of Employment Training, Project for Pride in Living
COMMUNITY ADVISORS Wafiq Fannoun Tony Genia William Sands
COMMUNITY PARTNERS ACER African Development Center African Economic Development Solutions American Indian Community Development Corporation Asian Economic Development Association Aurora/St Anthony Neighborhood Development Corporation City of Minneapolis City of St. Paul Cooperativa Mercado Central Dayton’s Bluff Community Council East Side Neighborhood Development Company Emerge Community Development Employment Action Center Episcopal Homes Greater Frogtown CDC Hope Community, Inc. La Conexion de las Americas Latino Economic Development Center Lutheran Social Services Metropolitan Consortium of Community Developers Metropolitan Economic Development Association MIGIZI Communications Model Cities Native American Community Development Institute Northside Economic Opportunity Network Oromo Community of Minnesota Powderhorn Phillips Cultural Wellness Center Project for Pride in Living Riverview Economic Development Association Seward Redesign, Inc. Sparc State of Minnesota Women Venture
In addition to training 178 neighborhood entrepreneurs and financing 31 of their businesses, other notable milestones for NDC in 2011 included: • Opening of Frogtown Square at University and Dale, after 15 years of work! Five local entrepreneurs opened for business, including Sunday’s Best Boutique and Grooming House Barbershop, owned by long-time residents of this neighborhood. • Beginning work in Detroit, where the NDC model was chosen by the Kellogg Foundation and Global Detroit for replication. • Receiving the Wells Fargo/Wachovia NEXT Award for “Community Impact” at the national conference of Opportunity Finance Network. We’d like to thank you so much for your support of our work! We know you see the impact that these hard-working entrepreneurs are making every day on our communities and recognize the value of the work we continue to do at NDC with your support. Sincerely, Steve Gibson, Board Chair (effective Jan 2012)
Mihailo Temali, President and CEO
STAFF Jason Allen U7 Small Business Consultant Jeff Alexander Midtown Global Market Director Darrell Beauford Real Estate Accounting Manager Daniel Birru Accountant Isabel Broyld U7 Project Manager Elizabeth (Becky) George Mercado Central Market Manager Kimberly Hanna Market Coordinator Richard Hofacre Midtown Global Market Maintenance & Repair Manager Harvey Hoffman Building Operations Manager Ryan Kidder U7 Graphic Designer
TRAINERS & CONSULTANTS Mike LaFave Vice President & Chief Operating Officer Baba Letang Market Manager Perla Mayo Loan Officer Maren Misner Training Program & Communications Coordinator Kathy Moriarty Chief Administrative Officer Samir Saikali Grants & Data Manager Dean Sanberg Resource Development Director Brian Singer Loan Department Director Emma Spillman Office Manager Mihailo Temali President & CEO
Sai Thao Loan Officer Michael Thielen Loan Fund Administrator Romaine Turner Senior Lending Officer Teshite Wako Chief Financial Officer Pangia Vang Small Business Consultant
Shahir Ahmed Dave Bonko Hussein Farah Tony Genia Wendy Hines Tarabi Jama Grover Jones Leo Montes Phillip Porter Mark Robinson
Edgardo Rodriquez Joanne Simons Sai Thao Romaine Turner Kim Urban Teshite Wako Dale White Kirsten Zache
MISSION THE MISSION OF NDC IS TO EMPOWER ENTREPRENEURS AND COMMUNITY PARTNERS TO TRANSFORM LOW-INCOME NEIGHBORHOOD ECONOMIES FROM WITHIN
VALUES
OUTCOMES
PARTNERSHIP.
LEADERSHIP.
TRUST OF LOCAL ENTREPRENEURS
83% of our entrepreneurs say they serve as role models for youth in their communities, and 31% as leaders in groups in their communities.
POWER OF CULTURE.
REVITALIZATION.
COMMUNITY PARTNERSHIPS ALLOW US TO EARN THE
ELIMINATE BARRIERS TO SUCCESS
41% of our alumni businesses occupy a building that was formerly vacant, and 35% are in spaces that were rehabbed for the business.
COMMUNITY OWNERSHIP.
NEIGHBORHOOD IMPACT.
HIGHLY ACCESSIBLE, MULTI-CULTURAL SERVICES
WORKING AT SCALE CREATES SOCIAL CAPITAL AND PHYSICAL ASSETS THAT COMMUNITIES OWN
COMMITMENT. COMPREHENSIVE, FLEXIBLE, LONG-TERM SUPPORT HELPS ENTREPRENEURS SUCCEED IN A CONSTANTLY CHANGING ENVIRONMENT
INNOVATION. IMPROVEMENT
AND
INNOVATION,
FUELED
BY
REGULAR EVALUATION, LEAD TO OUR SUSTAINED EFFECTIVENESS
In one neighborhood alone, a one-mile ring around the Midtown Global Market, Wilder found 137 NDC alumni open for business with 480 jobs, returning $13.4 million to that neighborhood annually.
ECONOMIC IMPACT.
$68 million is returned by our entrepreneurs each year to the Twin Cities regional economy, and $36 million of that is returned to inner-city neighborhood economies.
JOBS.
NDC’s estimated 525 entrepreneur businesses provide jobs for over 2000 neighbors, with a combined annual payroll of over $21 million, at a programmatic cost to NDC of $4,600 per job.
INNOVATIVE APPROACH Neighborhood Development Center (NDC) is a community-based non-profit organization that believes that residents, small businesses, and neighborhood groups in all communities have the talent, energy and ideas to revitalize their own communities. Since 1993, NDC has been working in the low-income neighborhoods of Saint Paul, Minneapolis, and Greater Minnesota, with local neighborhood partners, to empower emerging entrepreneurs with business knowledge and access to opportunity to develop successful businesses that allow them to move out of poverty, become self-sufficient, and develop and transform their own neighborhoods. NDC accomplishes this through five ongoing integrated programs:
ENTREPRENEUR TRAINING
4023 entrepreneurs trained SMALL BUSINESS FINANCING
431 loans totaling $8.5 million in financing since 1993 SMALL BUSINESS CONSULTING
35,000 hours of small business consulting to 2300 entrepreneurs since 1993 CAPACITY BUILDING
41 Community Partners across the Twin Cities SMALL BUSINESS INCUBATORS
Frogtown Entrepreneur Center Frogtown Square Mercado Central Midtown Global Market Plaza Verde Swedish Bank Building
2011 HIGHLIGHTS NDC RECEIVES ‘NEXT AWARD FOR COMMUNITY IMPACT’ NDC was honored to receive the 2011 Wachovia Wells Fargo NEXT Award for Opportunity Finance for Community Impact, based on the following impact NDC had in the previous two years:
NDC provided services to more than 1,700 individuals • NDC-trained entrepreneurs started 80 new businesses and created 250 new jobs • 56% of NDC–assisted businesses reported increasing revenues by an average of $120,000 a year, up from $48,000 a year in 2007
FROGTOWN SQUARE OPENS Secretary of HUD Shaun Donovan visited Frogtown Square in March of 2011. Pictured here meeting Dedrick Young and Daymn Johnson, owners of Grooming House Barbershop in Frogtown Square (NDC training, lending, T.A., and Incubator client).
Phyllis Gilliam, owner of Sunday’s Best Boutique in Frogtown Square, spoke at the Grand Opening. Pictured here holding a photo of her mother, who used to protest the streets of Frogtown in hopes of a better life for her children. 35 years later, Frogtown is cleaner, safer, and thriving with community businesses, organizations, and housing. (NDC training, lending, T.A., and Incubator client.)
NDC GOES TO DETROIT NDC brings its development model to inner-city Detroit In 2011, NDC was honored to be approached by “Global Detroit” (an immigrant-focused effort funded by Kellogg Foundation to revitalize Detroit’s inner-city economy) to bring NDC’s unique model of providing culturally competent training, financing and support to emerging inner city entrepreneurs in Detroit. NDC has made a commitment to consult with the Global Detroit coalition on replicating specific elements of the NDC model in three distinct Detroit neighborhoods, beginning in 2012.
After more than 20 years of effort by NDC, Frogtown Square was completed in 2011. The mixed-use project brings new life to a previously blighted corner of St. Paul, featuring seven retail bays on the first floor and 50 units of permanent, affordable senior housing on the second, third, and fourth floors. NDC, with its nonprofit partners Model Cities, Inc., Greater Frogtown CDC, and Aurora/St. Anthony NDC - owns and manages the project’s commercial space. Three of Frogtown Square’s tenants are alumni of NDC’s entrepreneur training program, four of the tenants have received loans and business assistance from NDC and five of the tenants have strong ties to the local community. The project has created business opportunities, nearly 40 jobs, and housing opportunities for long time residents of the Frogtown neighborhood.
IMPACT AWARDS
2011
creating success
KITCHEN IN THE MARKET Molly Herrmann & Tracy Morgan NDC Lending, T.A., & Incubator Client
Winner of 2011 award for
OVERALL TWIN CITIES SMALL BUSINESS OF THE YEAR
GROOMING HOUSE
Daymn Johnson & Dedrick Young NDC Training, Lending, T.A., & Incubator Client
Winner of 2011 award for
COMMUNITY IMPACT
Grooming House is redefining style. Filling one of the original spots in the newly opened Frogtown Square, Daymn and Dedrick have created more than a barbershop; they have created a safe and friendly place for people of all ages and backgrounds to gather. Daymn, Dedrick, and the other barbers in their nine-chair shop serve as leaders, role models, and sources of inspiration for the community.
INITIATIVE CONSTRUCTION
Isaac Carpenter Kitchen in the Market offers a unique combination of a commercial kitchen, NDC Lending & T.A.Client cooking school, and retail shop. Located in a formerly vacant corner of the Midtown Global Market, KITM provides shared commercial kitchen space for 23 caterers, food trucks, and food manufacturers, who collectively provide more than 60 jobs. Owners Molly and Tracy - together with notable Twin Cities chefs - host and teach a variety of cooking classes which entertain and educate more Winner of 2011 award for EMPLOYMENT IMPACT than 1000 guests annually, bringing new clientele to the market and its vendors. Initiative Construction is a drywall contractor that has fast become a rising star. Since opening in 2010, KITM has had a huge impact on the Midtown Global Over the past two years, Initiative has leveraged a very successful performance on Market, the surrounding Phillips and Powderhorn neighborhoods, and the local the Frogtown Square project into several new jobs across the metro. A careful and food community. thoughtful entrepreneur, Mr. Carpenter operates a union shop that is dedicated to making union quality opportunities available to residents of the local community. MAG MECHANICAL On each of his past two jobs he has put an average of 20 people to work with a Anthony Goze & Michael Goze NDC Training Client compensation package that, including benefits, amounts to more than $49/hour.
EL COCO LOCO CATERING
Andrea Macias NDC Training & Lending Client Winner of 2011 award for
GROWTH IN REVENUE
Mag Mechanical, an MBE and DBE certified HVAC contractor, started, in 2007, just as the economy began to crash. Undeterred, and determined to grow in a smart, sustainable manner, the company diligently persisted in 2008 and 2009. In 2010, when the company landed, and performed on, a contract with Target, Mag Mechanical began to take off. Between 2010 and 2011, Mag Mechanical added 20 accounts (including several other jobs with Target), saw revenue grow by over 400%, and demonstrated impressive profitability. 2012 is already on pace to more than double in growth.
Winner of 2011 award for
BEST BUSINESS PLAN
El Coco Loco Catering has been serving the Twin Cities for more than 16 years, offering authentic Mexican cuisine for any occasion. Andrea Macias grew up in her family’s restaurant, and is now bringing a new level of creativity to the traditional dishes and strengthening the business’s focus on healthy, sustainable practices and products.
2011
I M PA C T Alek Roslik - Alek Roslik • The Best Steak House - Mike Hatzistamoulos & Steve Hatzistamoulos • BG Food - Ge Lee • Global Translation and Interpreter - Robsan Itana • Metro Nursing Services, LLC - Abdi AWARDS Market & Nasra Gonjobe • Miller Upholstering - Helen Miller • Muddy Paws Cheesecake - Tami Cabrera • Sitters FINALISTS Circle - Kiwana Cannon and Sherrie Jones • Velasquez Family Coffee - Cathy and Guillermo Velasquez
NEIGHBORHOOD DEVELOPMENT CENTER CONSOLIDATED STATEMENT OF FINANCIAL POSITION (DECEMBER 31, 2011) Assets
Cash and Cash Equivalents Restricted Cash Contributions receivables Other receivables Prepaid expenses Loan receivables, net of allowance for loan losses Rental Properties and Equipment, net Other assets
Total Assets
443,869 1,223,057 350,400 549,415 27,448 4,503,745 12,691,042 327,314
$20,116,290
Liabilities and Net Assets Liabilities: Payables and other accruals Loans Payable
593,748 17,672,221
Total Liabilities
18,265,969
Net Assets Unrestricted net assets Temporarily restricted net assets Total Net Assets
997,821 852,500 1,850,321
Total Liabilities and Net Assets
$20,116,290
CONSOLIDATED STATEMENT OF ACTIVITIES (DECEMBER 31, 2011) Revenues & Support
Expenses Fundraising $57,549
Government Revenue
Lending
$343,905
$466,570
Earned Income $664,160
Management and General
$341,134
Grants and Contributions $2,463,188
Incubators Rent $651,526
Incubators Program $1,698,083
Technical Assistance $433,863
Training $274,527
Incubators Operations $1,017,623
Source: Audited Financial Statements by Mahoney Ulbrich Christiansen Russ P.A. Certified Public Accountants. Full audit available on request or online at www.ndc-mn.org/about/financial-reports
FINANCIAL SUPPORTERS Government City of Minneapolis City of Saint Paul Community Development Financial Institution Fund Hennepin County Library Minneapolis Empowerment Zone Rondo Community Outreach Library U.S. Small Business Administration Office of Community Services Saint Paul Port Authority State of Minnesota
We are extremely grateful for our financial supporters and volunteers. Your support helps us carry out our work in low-income, inner-city and ethnic communities: creating local jobs, generating local income and wealth, strengthening the local economy, supporting local entrepreneurs and creating community leaders and role models, building visible and inspiring signs of redevelopment, and supporting businesses that will serve as community gathering places. Thank you for your support of NDC and the entrepreneurs we work with.
Securian Foundation Simikis Foundation Trillium Family Foundation Allina Health System The Jay & Rose Phillips Family Foundation Campbell Foundation The Jaye F. and Betty F. Dyer Foundation Deluxe Corporation Foundation The McKnight Foundation Fredrikson and Byron Foundation John S. and James L. Knight Foundation F.R. Bigelow Foundation The Emily J. & Emily D. Slowinski Fund General Mills Foundation The Saint Paul Foundation George Family Foundation Local Initiative Support Corporation Travelers Foundation Living Cities/The Integration Initiative US Bancorp Foundation University of St. Thomas Hardenbergh Foundation Valspar Foundation Heron Foundation Wells Fargo Foundation of Minnesota Marbrook Foundation The Marquette Financial Companies Wells Fargo Bank Margaret and Angus Wurtele Family Western Bank Metropolitan Transportation Network Foundation Joyous Care & Family Preservation SVCS Mosaic Minneapolis Foundation Otto Bremer Foundation Opportunity Finance Network Individual Donors Allianz Life Insurance Company of Patrick John Alexander N. America Wendy Annis Nexus Community Partners Mary Kay Bailey Northwest Area Foundation Dorothy Barnes-Griswold Northmarq Capital Kathryn Barr Piper Jaffray & Cos Lisa Boyd Pohlad Family Foundation
Corporate and Foundation
THANK YOU!
GRACIAS!
UA TSAUG! MAHADSANID! SHUKRAN! GALATOOMA! THANK YOU for your support of Neighborhood Development Center and the entrepreneurs we work with.
Allison Brummel Greg and Janice Dames Samantha R Dean Rachel Dolan Cristina Edelstein Brian Richard Eklund Paul Engh Steve Erdall J & Family David Fey J. Marie Fieger Daniel Flicek Robbin Frazier John Gelderman Steve Gibson Ben Goldfarb Kimberly Hanna Lynne Hanna Melissa M Hanna Thomas Heuer JoAnna Hicks Nancy Homans Bruce Johansen Cynthia Johnson James LaFave Mike LaFave Laurie Lafontaine
Dara Lee Tony Lemaire Earlsworth Letang Robin Lockwood Vicki Lofquist Paul Lundgren Nancy Maeker Elizabeth Mafe Emily Maltz Hector Martinez Charles Misner Cynthia A Misner Phil & Jamie Misner Joshua P Misner Maren Misner Bev Mooney Nneka S Morgan Dan Nordley Diana L Okelly Mara O’Neill Bette Packer Ed Padilla Ernesto Palestino Reuel B Persaud Mark & Heidi Peterson Arvid Povilaitis John Ries
Carolyn Roby Susan Roe Samir Saikali William Sands Joyce Saucier Joel F Shapira Kristin G Simonson Selmer Simonson Brian D Singer David Smucker Steven Solbrack Erik Takeshita Christine and Annop Tantisunthorn Mihailo Temali Sid Tincher Blair Tremere Haiyen & Neeson Vang Joan Velasquez Carla B Vernon Teshite Wako Kevin J Walsh Dale White May Xiong Phia Xiong Karen Young
VOLUNTEERS AND INTERNS Emily Blodgett Phillip Brien Kayla Casavant Erin Faber Clemesha Fombe Sarah Gehring David Hietzman John Hunchar Sara Lopez Keng Lor Bobby McGraw Daniel Murphy Nick Peterson Sam Reeves Tsion Rumicho Jordan Sipe Dumisaini Thomsen Kim Urban Blia Xiong Kirsten Zache
*Every effort has been made to ensure the accuracy of this donor list; please contact us with any corrections or questions.
Become a financial supporter! Your gift of any size is greatly appreciated, but please consider joining us as a “Sustainer” at one of the following levels:
Venture Club Angel Family Circle
$10,000 + $5,000 - $9,999 $1,000 - $4,999
Thinking of leaving a legacy gift? Please keep Neighborhood Development Center in mind when you are preparing your will, trust, or other estate plans. A charitable gift to NEIGHBORHOOD DEVELOPMENT CENTER preserves your legacy beyond your lifetime. For more information, call or email Dean Sanberg: 651-379-8429, dsanberg@ndc-mn.org