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4 20 09 Work Session - Washington Neighborhood Plan_Staff DocumentsT®: The Honorable Mayor and City Council Members FR®nll: Michael C. Van Milligen, City Manager SU JECI': Work Session -Washington Neighborhood Plan DATE: April 14, 2009 Housing and Community Development Department Director David Harris is transmitting information for the Work Session on the Washington Neighborhood Plan. _= -z_.__ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director T'®: Michae Van Milligen, City Manager FR® David Hrris Housin and Communit Develo went De artment 9 Y p p Sl! JECT: Washington Neighborhood Worksession ®ATE: 2 April 09 Introduction The purpose of this memorandum is to introduce the City Council to the strategic planning process that has been under way in the Washington Neighborhood for the past nine months. Background Teska Associates, from Evanston, Illinois, was selected as the City's consultant, partnering with the Chicago-based Center for Neighborhood Technology. In addition, Teska used the services of two national firms for retail business and marketing analysis: MJB Consulting, from New York; and MetroEdge, affiliated with the Local Initiatives Support Corporation (LISC), a major equity partner in affordable housing and community development projects around the country. A Citizens Coordinating Committee (CCC) was formed, consisting of about 35 persons (see attached list) representing a spectrum of neighborhood interests: resident homeowners and tenants, landlords, business owners, social services agency personnel and church and school leaders. This group met five times, beginning in August and concluding in March. This effort was staffed by the City through the efforts of the following individuals: Mary Rose Corrigan, Health Department; Laura Carstens, Planning Department; Kelly Larson, Human Rights Department; Gil Spence, Leisure Services Department; Neighborhood Specialist Jerelyn O'Connor; Police Chief Kim Wadding and Capt Russ Stecklein; and the Housing Department, including Joleen Patterson, Kris Neyen and Lisa Barton. Tara Nelson, from the Community Foundation, also served on the staff coordinating committee. Several AmeriCorps and VISTA members also assisted, including Maddie Carney, Nick Stuber and Alyssa Hauser. In addition, two "all-comers" Neighborhood Workshops were held, hosted by CCC members, in an effort to obtain as much input as possible on the several plan drafts as they were published. Over 100 additional individuals attended these meetings. The consultants began their work through interviews, both individually and in small groups, with additional neighborhood and downtown stakeholders. These sessions were held with business leaders, lenders, development professionals and realtors, among others. Special efforts were made to reach out to seek the opinions of Hispanic and African American leaders. In all, more than 70 persons participated in these interview sessions. A series of plan drafts was published and distributed to CCC members. At each stage, recommendations and strategies were discussed and modified according to feedback received. Teska served as lead consultant. The Center for Neighborhood Technology's role was to identify educational and social service needs and opportunities. MetroEdge conducted retail market analysis to determine neighborhood consumer behaviors and market trends. MJB's role was to develop a `re-marketing strategy' for the neighborhood and identify niche businesses to add to the mix of retail uses in the area. iscuaai®n Washington Neighborhood Strategic Plan The final report summarizes the analysis and strategies under three major categories: Retail Business Support and Development Youth and Family Support and Programs Housing and Community Development The report lists 68 separate recommendations under these categories, covering a broad range of strategies to directly address identified issues and to plan for an improved future for the neighborhood. The `center piece' recommendation is the formation of a neighborhood-based community development corporation - a Washington Neighborhood Development Corporation (WNDC.) Neighborhood Development Corporation The mission of a neighborhood development corporation, in this case, would be to implement the recommendations and strategies from the plan. The long-term success of this effort will depend on our ability to `base' activities in the neighborhood: to obtain the commitment and involvement of local persons to take ownership -- both to improve the physical environment and to develop the `human capital' potential of the neighborhood's residents. The WNDC would be anon-profit corporation, with a governing board of directors representing a variety of constituent groups. A key element in the success of the WNDC is the ability to hire staff - an executive director to oversee operations of the corporation. The director's duties would include staffing the board of directors and committees, organizing volunteer activities and initiatives, writing grants and otherwise seeking funding for operations and projects, and coordinating the activities of the corporation with the City and the many other partners required as part of this long-term effort. In simpler terms, the development corporation's mission is to mobilize neighborhood stakeholders to sustained action, in ways that City staff can't provide. The activities of the corporation are `grass-roots' based, sustainable over time because of the commitment of residents and local businesses to the effort. CDC's have a long history of success, nationally, in achieving neighborhood and community development objectives. Other Recommendations A major focus of the report concerns preservation and development of neighborhood retail businesses. The strategy is first to "protect and preserve" existing businesses, given the current fragile economic environment. Over time, recruitment of other `niche'- type retailers can be attempted. Central Avenue is the western boundary of the Washington Neighborhood. It too is a focus of plan recommendations, given the high level of storefront vacancies and marginal operations. A strategy promoting `incubator' businesses in storefronts -artist studios, small start-ups - at low or free rents, in the interest of re-occupancy and re- establishing asense of vitality in this commercial corridor is an essential element of this approach. This also includes formation of a business owner's association, with activities to include refurbishing the exteriors of these buildings with some type of uniform signage, lighting and paint color schemes. Central Avenue would also benefit from improved streetscaping and beautification, both to make the area more inviting to shoppers and as an incentive to property owners to rehabilitate their buildings. Dubuque Main Street could be a partner in these activities. Another recommendation is for redevelopment of the Five Points commercial area, through acquisition of parcels, establishment of a tax increment financing (TIF) district and construction of an expanded and up-dated retail service block. Key also to this approach is creation of a `link' to the proposed redevelopment of the former Pack site at Riverview Plaza, in the interest of establishing a connection to that retail site and capture of `spill-over' business to the Washington Neighborhood. This also includes creation of employment opportunities for neighborhood residents. Dubuque Initiatives could be a major player in this strategy. The list of recommended strategies and actions is summarized as follows: Retail Business Support and Development An important purpose in establishing a Washington Neighborhood Development Corporation (WNDC) is to provide services in support of neighborhood businesses, including: ® Remarketing campaign to create improved neighborhood image ® Creation of "neighborhood brand" to attract business investment ® Neighborhood logo ® "Protect and Preserve" existing neighborhood businesses ® Small business start-up training ® Locate sources of capital for financing small business start-ups ® Micro-enterprise training and start-up assistance ® Promote in-home small business entrepreneurship ® Develop partnerships with area college business schools to provide assistance to retailers through internships and work-study programs ® Secure `pooled' capital from area lenders for business loans ® Approach Dubuque Main Street to create partnership to deliver services ® Attract "niche" businesses to meet un-served needs, i.e., services/products to African-American and Hispanic households ® Secure funding from city for building fagade design and improvements ® Establish area business owners association, focusing on Central Avenue o Develop unified signage and lighting; repaint storefronts in period colors o Develop program to reoccupy vacant storefronts: ® Short-term rent-free use for artist studios ® "Incubator" space for new small businesses ® Create "sense" of occupancy/vibrancy along Central corridor o Establish a streetscaping and beautification program for the corridor Create "Shop Locally" program to encourage local retailer patronage, through reward cards system ® Create local business directory ® Develop program to encourage `shopkeeper' re-occupancy of vacant upper-story apartments above storefronts Plan redevelopment of Five Points retail site; activities to include: ® Planned City/Dubuque Initiatives acquisition of parcels as available ® Land banking and resale to developer(s) for new retail center ® Research use of tax increment financing (TIF) for commercial redevelopment ® Establish commercial "link" to Riverview Plaza (former Dubuque Pack) site to insure capture of "spill-over" business to Five Points/Washington Neighborhood ® Develop partnerships with Riverview businesses to encourage training/ employment of Washington Neighborhood residents Youth and Family Support and Programs Establish bus "circulator" system within neighborhood to improve transportation options for youth and transit-dependent persons Establish Neighborhood Youth Collaborative, to recruit and promote youth leadership, in partnership with existing network of service/school agencies Identify "signature" Neighborhood youth project targeted to older youth for design and implementation Establish Neighborhood Welcome Center; activities to include: ® Provide place for newcomers to learn of neighborhood resources ® Publish monthly "Calendar of Events" ® Create neighborhood website Establish working relationship with the expanded Multicultural Family Center, to promote joint programming and eliminate duplication of services Establish bike safety program; place bike racks throughout neighborhood Examples of youth programs to be developed: ® Intramural sports ® Little league teams; secure corporate sponsorships ® Hip Hop dance clubs ® Drill team ® Mentoring programs (expanded with existing or new partners) ® Expand Open Gym programs ® Expand after school programs, including securing business/agency sponsorships ® "Warm Summer Fun on Cold Winter Days;" promoting youth-parent activities Hold an annual Sports-Health Fair Hold an "Eat-n-Greet in Washington Neighborhood" annual event, celebrating ethnic foods and featuring neighborhood grocers and restaurants Establish amulti-generational community garden Examples of career programs for youth to be developed: ® Career Fair, including vocational training and career counseling opportunities ® Rising Star training program ® NICC/IWDC outreach for interview training/resume preparation ® "Saturday Resume Workshops" ® Job shadowing in local businesses for neighborhood youth Housing and Community Development Include information on housing programs on neighborhood website Establish Neighborhood Tenants Association Educate tenants and landlords about rights and responsibilities Support City programs promoting homeownership and maintenance of rental properties Expand existing conservation districts to Neighborhood boundaries Explore establishing historic preservation district in the Neighborhood Establish pedestrian-bike `greenway' connections to Pack Site, Warehouse District and the Bee Branch parkway Retract commercial zoning at south end of Neighborhood Phase out industrial uses at south end of Neighborhood Install "traffic-calming" devices, like speed bumps, and raised or painted sidewalks, to promote pedestrian safety Rebuild alleys; multiple activities/objectives to include: ® use of pervious pavement to control chronic storm water run-off ® install high speed Internet cable to "wire" Neighborhood ® install geothermal or biomass shared power generation infrastructure (shared with Warehouse District?) reconstructed alleys would serve as incentive to more responsible resident management of trash and recycling and would facilitate snow removal and ease of entry by Public Works and emergency vehicles Install "gateway" monuments at major street entries to identify Neighborhood Install signage throughout Neighborhood, reinforcing identity and historic character. In time, the Neighborhood Development Corporation could become more involved in delivery of housing programs and services, including purchasing and selling properties, recruiting buyers and administering rehab loan programs Buelget Innpact Implementation of these recommendations would entail a combination of continuing and expanding existing programs, creating and funding new programs and funding new CIP requests. A budget for all the recommendations has not been developed. A cost estimate for the Washington Neighborhood Development Corporation, including annual operating costs, is attached. Conclusion .Like all planning documents, the Washington Strategic Plan will prove useful only to the extent that a sustained implementation effort is maintained and achieved. Achieving measurable success in the Washington Neighborhood will be a long-term effort, requiring a partnership between the City and neighborhood interests. Developing a core group of stakeholders to `steward' this effort is our greatest challenge. With a combination of financial and human resources, vision and a `reborn' sense of faith in the neighborhood's future, this strategic plan can become a reality. Citizens Coordinating Committee -Washington Strategic Planning Process Victor Anderson Beverly Berna Michelle Brown Avery Butler Theresa Caldwell Gary Carner Noreen Carter-Wade Keith Clark Steve Cook Janice Craddieth Amy Esterhuizen Andy Ferguson Larry Gearheart Doris Hingtgen Pastor Jay Ilten Stephanie Joyner Tom Kane David Kapler Cathy Kelley Wayne Klosterman Pastor Parker Knoll Butch Lee Nancy Leslein Dan LoBianco AI Lundh Angela Mangeno Chris McCarron Michelle Mihalakis Charlotte Miller Fred Miller Mark Otterbeck Susie Peterson Jim Schumacher David Shaw Kendra Stoner Kathy Weber Margie White Jay Winger Julie Woodyard Sharon Carner Terri Krier Mark Litka Tammy Lynch Sandy Tilton Washington Neighborhood Plan Addendum: Neighborhood Development Corporation (WNDC) We have recommended that the development corporation be the driving force behind implementation of strategic plan recommendations. This is the strategy that will build long-term resident/stakeholder participation in reinvestment in the neighborhood's future. It is a grass roots-based approach to neighborhood revitalization, seeking to move the focus from city enforcement to resident ownership of initiatives for change. An Information Sheet has been prepared by Teska Associates, describing in general how community development corporations are formed and operate. It is attached. We have also prepared a projected annual operating budget, attached, for a WNDC office. This would include the services of an executive director. The model we are recommending would be to start small, with aone-person staff. In time, with success in obtaining foundation support or other federal or state grants, the staff could expand. This budget has been estimated at about $90 000 for the first year. A key to this approach is to identify, recruit and train a representative board of directors to oversee the activities of the corporation. For this reason, we have included proposed consulting fees from Teska Associates to perform this function, as a start-up cost. We will also research the availability of other firms to provide these training services to the new board. The WNDC office would ideally be located centrally in the neighborhood, in a location with high visibility. We have included rental costs for a small office in the budget, for a typical storefront lease in the area. A number of other locations could be in the mix for consideration. These include the Neighborhood Resource Center at Prescott School, the COP office at the Carnegie Library, the new Multicultural Family Center, Comiskey Park and the former Housing offices at 18t" and Central Avenue. Support for operations of the WNDC could come from a variety of sources. Currently, Dubuque Initiatives is preparing an application for New Market Tax Credits. A percentage of the proceeds from the sale of those credits, if awarded, would be used to assist qualified community-economic development efforts in the downtown. The neighborhood corporation would be an eligible use of those funds. We have made an initial contact with the Neighborhood Development Corporation, a national non-profit which assists local development corporations to establish operations, providing board and staff training and support, as well as access to capital for housing rehabilitation activities. Affiliates currently operating in Iowa include Community Housing Initiatives, in Spencer; and the Des Moines-based Neighborhood Finance Corporation. Direct City start-up assistance could be made available from reallocation of General Funds from the Washington Neighborhood Homeownership Grants CIP. Another possibility is reallocation of General Funds from the Multicultural Family Center pac,E 2 construction project. In the first case, there is a substantial current unspent balance; in the second, newly-available CDBG funds could be used to replace General Funds committed to the MFC project. We would expect to research foundation grant opportunities, through use of the data base at the Community Foundation of Greater Dubuque. As well, we will continue to monitor stimulus bill opportunities for assistance. Also attached is a reprint of a March article from the Cedar Rapids Gazette, announcing formation of a Neighborhood Development Corporation in that city for neighborhood housing and commercial redevelopment. The NDC has received an initial capitalization grant in the amount of $1.5 million, the majority from State flood recovery funds. Washington Neighborhood Development Corporation (WNDC) Proposed Annual Operating Budget Rent (1000 square foot office) Heat Electricity Water/sewer/trash Custodial/snow removal (in-house) Telephone/internet service Fax line Copy machine lease/contract Staff: Executive Director (Grade 34 equivalent) FICA Health Insurance ($600/month) Business liability insurance Property loss insurance Directors and Officers insurance Advertising Printing Postage Office supplies Accounting/payroll Audit Legal (pro bono) Non-recurring costs Total Consulting: Board training/business plan/fund raising plan (Teska Associates) Tax exempt filing/incorporation Phone system (2 phones) Computers (2)/printer/router Office furnishings (used from City) $ 7 200 1 200 600 400 N/C 600 450 1 095 50 000 3 600 7 200 600 1 500 600 400 500 1 000 N/C $ 76 945 $ 7 800 750 100 3 300 N/C Total $ 11 950 fn formation Sheet -Community Development Corporation f 1. O YIY1~1`f Otl .....P Q~ ,..... :. Cammunaty:Devefopmei~~.Cot'poraf:rori : .: Washington Neighborhood Development Corporation (V1/NDC~ One of the organizations recommended to take responsibility of (or be a partner for) many of the programs/projects is a proposed new organization caked the Washington Neighborhood Development Corporation {WNDC}, As a community development corporation (CDC} for the Washington Neighborhood, the WNDC would manage a variety of tasks, including (but not limited to} promoting and facilitating economic development Qobs and business activity), developing programs, fundraising, advocating for neighborhood issues and activities, and organizing residents, businesses and community groups. The mission of the WNDC would be to implement the Work Program defined in this section. leadership for the WNDC would be comprised of active residents, business leaders, and other community leaders in the Washington Neighborhood. The WNDC would work in close collaboration with the Washington Neighborhood Association (WNA}, the City, and other local community groups, schools, churches, and businesses to address the needs of the neighborhood, particularly as they pertain to the programs and projects outlined in the Work Program, The WNDC would be a partner to other agencies and organizations serving the Washington Neighborhood in the planning process, helping to leverage their resources and focus them as effectively as possible, What is a CDC? A community development corporation (CDC) is a common type of not-for-profit organization that exists to generate commercial business, housing, or job development in a community, in the interests of that community. CDCs commonly play an integrative role -they bring together local government support, funding from a number of public and philanthropic sources, private business investment, and the vision and local knowledge of community residents to make projects happen. The projects might be new businesses, homes, or services (such as job training or transportation) that are needed in the community, What makes a protect happen might be the CDC's work in identifying a funding source and writing a successful grant application; or the CDC becoming an equity partner in a development deal; or the CDC becoming a counselor to small businesses or home buyers in a targeted community. As organizations created for the good of the community CDC's also sometimes organize or support community initiatives on issues that are generally not viewed as directly related to development such as programs for the care of the elderly and the training of youth in practical skills. CDC's are supported by a combination of contributions from residents and stakeholders in the community area, fees for service or other earned income, funding from local or higher levels of government (sometimes in the form of contracts to perform specific services), and philanthropic grants. Younger CDC's tend to be more dependent on philanthropic grants and general support from local government, More mature organizations tend to derive more of their revenue from earned income. CDCs share a general mission of achievfig economic redevelopment for the benefit of their communities, but the specific functions and tasks they take on vary according to local needs and opportunities, In virtually all cases, partnerships and influence are critical, and the value that CDC's bring to their communities lies less in what they do or spend directly than in what they leverage. CDC's work with their partners in government, business, and civic institutions, and they generally perform the tasks that wiEl enable a partner to invest more in the community, or they fill a gap in what the other partners can do so that the community's deveiopment plan is implemented. Washington Neighborhood Pian -- City of Dubuque IA Page 1 The Cedar Rapids Gazette -Cedar Rapids, Iowa City, Eastern Iowa Page 1 of 1 a3e~ This is a prJnter friendly version of an article from www.gazetteanline.com 7o print this article open the file menu and choose Prfnt. Article published: Mar 26, 2009 dew n~nmpr®~it gr®u~ t~ r~gr~~ Cedar ap~ds neighb®r~~d~ The City Council last night created a new non-profit corporation, the Neighborhood Development Corp., and also funneled $1.5 million in state grant money to fhe endeavor. Carol Bower, who has run a similar non-profit in Des Moines and who has been providing advice fo the city of Cedar Rapids since the fa11, has been chosen to run the Cedar Rapids operation. In conversations Wednesday with Bower and Marty Hoeger, the city of Cedar Rapids' real estate development coordinator, the two said the new Neighborhood Development Corp. will become a driving fiorce behind reinvestment In fhe city's core neighborhoods, particularly those now frying'to get back an their feet since the June flood. The operation will focus on helping bring about fhe buiEding of affordable pausing, but, in addition, will concentrate on revitalizing neighborhood commercial development as well. Hoeger said the commercial developmenf effort is likely fo focus on Czech Village, New Bohemia and tpe Ellis Boulevard area of Tlme Check. "The idea is to get businesses back into those neighborhoods," Hooger said. Look for the Neighborhood Development Corp. to quickly Identify properties in need of redevelopment and, in some instances, to acquire the property and "get it back online," said Hoeger. The corporation will operate Independently of fhe city of Cedar Rapids, It will have a nine-person board. Three of the members will be from neighborhoods; four wlil be people in the business community familiar with development; and an elected official or employes from both the city and county governments will round out the board. Click hereto go back to tine article http://wwvv.gazatteonline.com/apps/pbcs.dll/article?Date=20090326c~Catego;_y NEWS&... 3/27/2009