Public Markets development for strong community development Abundant Community Regional Convenings- May 14, 2015

Why Public markets They are small business incubators They provide jobs to community residents They sell goods and services produced in the community, and to the community They grow out to bigger spaces usually within the community They subsidize other services within the community They serve as community gathering spaces They promote, and subsidize art and cultural events, as well as local festivities They also incubate “new community leaders”

Public markets, Who owns them? Government entities Non profit entities Private entities Tenant associations Business cooperatives A combination of two or more of the above

The challenge and the opportunity: Comprehensive Community Development in Low Income Communities Build the economy -- business development Develop the physical infrastructure -- real estate development. Develop human capital in the community – leadership, institutional structures. Asset development – accumulation/pooling of wealth.

What the project will require A physical space A business plan Financial support Management

Tenants: What they will need Community organizing Micro entrepreneur training Financial assistance Business opening phase assistance Ongoing Technical Assistance Expansion opportunities

Non profit owned public markets in Minneapolis Midtown Global Market 60 + businesses 1/3 anchor businesses 1/3 second stage businesses 1/3 Start up businesses Mercado Central Business Cooperative 47 Businesses Only 3 anchor businesses The fourth aspect of NDC’s four-pronged approach to economic development is business incubation through real estate development. These are examples of our business incubators. We create spaces: To provide places for our entrepreneurs to open To turn vacant, blighting properties into attractive, productive properties To create community gathering places We will only be focusing on the Mercado and the Global Market today. 7

Origins of the Cooperativa Mercado Central Asset inventory conducted of Latino congregation. Many parishioners took business training Dream of a Mercado came from people in this training. 8

Cooperativa Mercado Central transformed a derelict building A building only a non-profit could see potential in. When a staff first attended a meeting at the site, she was propositioned three times between her car and the building. The Mercado Building before renovation in 1999. 9

Implementation Establishing a cooperative. Identifying development partners. Implementing proposal. Now the intersection is vibrant and healthy. Additional development and renovation has occurred. Instead of drug dealers and prostitutes, you are more likely to see families and shoppers. 10

Mercado Central Picture: Mercado Central 2008

Immediate Outcomes 47 tenants (44 start – ups). $2 million in sales first year, $6 annually after 5 years. More than 90 jobs created immediately. 12

Long term MERCADO CENTRAL FACTS 45 Businesses operating. 0% vacancy on the last 9 years. Incubator of businesses and leaders. Estimated Annual sales $10 million. 1600 clients per day. 165 employees (not including business owners). Picture: Mercado Central 2008

Accomplishments Catalyst for revitalization of Lake Street commercial strip 250 plus Latino. 750 Latinos trained in micro-business training. At least 3 Mercado Central graduated entrepreneurs have created other businesses that have annual multimillion dollars sales

47 BUSINESSES OPERATING

Examples of on going technical assistance and training to LEDC’s members. Picture: English for customer service training

Midtown Global Market - a public market in the former Sears Tower Vacant for 7 years. Second largest commercial building in the state of MN In low-income Phillips and Central neighborhoods

Midtown Global Market Opened in May, 2006 50 business from 12 cultures This is our newest real estate project – again creating business incubation space. Before and After photos Opened in May, 2006 50 business from 12 cultures 18

Origins of the Midtown Global Market Latino businesses resisted City plan for chain grocery Neighborhood wanted community "face" and gathering place A team of 4 Non-profit organizations formed MGM

Midtown Global Market facts $10M in sales in 2007 1.3M customers in 2007 Partners provide training, technical assistance, and financing 90% of the owners are minority. Manny and Vicki Gonzales (here with Minneapolis Mayor Rybak) started their first location in the Mercado in July 1999. They opened a second location in about 2002 and have just opened their third location at the MGM. Faduma Hirshi is a start-up business at the MGM. Some of her challenges – preparing cakes and pastries to the American pallate, merchandising – making her product and space appealing to customers – printed signs rather than hand lettered, focusing on one type of product rather than a little bit of everything. 20

Other Public markets in Minneapolis/St Paul The entrepreneurs/Businesses housed at the following Public markets have also received Training, Technical and financial assistance from LEDC: International Bazaar (Privately owned, it houses 26 Businesses) Lake Plaza (Privately owned, it houses 75 businesses Plaza Latina (Privately owned, it houses 12 businesses) La Hacienda Plaza (Privately owned, it houses 10+ businesses) El Patito Plaza (Privately owned, it houses 30+ Businesses)

What we learned during Implementation? Very complex, continuous process including a) organizational process b) development c) ongoing operations Requires multiple partners with a variety of skills to implement

Application/Replication Creating a public market implementing our model is a complex task That requires multiple skills/multiple partners LEDC offers a 3 day Training workshop to cover all the Implementation Bases. We can provide consulting support to other projects

Building socially responsible business communities of Minnesota Building socially responsible business communities

E-mail: info@ledc-mn.org of Minnesota 1501 E Lake St Minneapolis, MN 55407 Phone: (612) 724- 5332 Fax: (612) 724- 5342 Web: www.ledc-mn.org E-mail: info@ledc-mn.org Building socially responsible business communities