April 19, 2021 (MINNEAPOLIS) — The civil unrest that followed the murder of George Floyd last year left countless properties in Minneapolis and Saint Paul destroyed, bringing additional hardship to communities that had already been devastated by the pandemic. Now, the areas that have been most affected will have access to up to $30 million from the Community Asset Transition (CAT) Fund, created by the Local Support Initiatives Corporation (LISC) in partnership with Hennepin County, JPMorgan Chase, the Minneapolis Foundation, the Bush Foundation, and the McKnight Foundation. This partnership will work closely with local organizations to help finance the temporary acquisition of critical properties and buy time for the transformational restoration the community seeks. In the process, community ownership and wealth building will be enhanced.
The Fund will provide an accessible and affordable source of capital to prevent displacement. It will help empower community-driven visions, plans, and development for transformational community ownership and wealth building in the areas most affected by the civil unrest. LISC will be managing these funds to help with ownership transfers and rebuilding efforts in the area.
The partnership, in collaboration with local organizations, will identify properties that are at risk of market conversion and gentrification. The Fund will provide loans to help the community acquire and operate properties and make critical repairs for up to five years. LISC Twin Cities will also be working closely to help build the capacity of community partners, developers of color, and other BIPOC organizations throughout the implementation of this project.
“For the real estate development project we have planned, we wanted to work with LISC specifically,” said Anthony Taylor, development and new initiatives lead at the Cultural Wellness Center. “LISC’s history of work in our neighborhood, such as their support of anchor and legacy cultural institutions in the community, have been instrumental. Being able to work with a lender that brings knowledge and relationships and is working towards the goal of community ownership is key. We’re trying to build wealth here.”
Hennepin County provided the critical initial investment of first-loss funds that helped elicit further investments for the community. The County approved $3 million last September for the Fund — which will be matched by $7 million from LISC and its philanthropic partners — and has also set aside a second $3 million allocation contingent upon an additional $7 million investment from LISC and other partners.
“By being a first-in funder, Hennepin County serves as a catalyst to spark additional investment in communities that have been disrupted by civil unrest,” said Marion Greene, Chair of the Hennepin County Board of Commissioners. “This critical initiative builds on 570 Small Business Relief grants totaling $5.86 million Hennepin County provided to businesses in heavily impacted corridors to help them survive and recover from the COVID-19 pandemic. Our ultimate goal is to prevent displacement and to support BIPOC ownership, wealth building, and long-term affordability along corridors that are economic engines for our region. We want to amplify what is already happening organically.”
The County’s action was followed by major investments from JPMorgan Chase, the Bush Foundation, and the McKnight Foundation, totaling $11 million. The $1 million grant from JPMorgan Chase will be split between capacity-building grants to community partners and first-loss investment.
“We’re proud to team with LISC to preserve local, Black, Indigenous, people of color ownership of commercial and residential buildings in these important cultural districts in the Twin Cities,” said Dave Rudolph, Region Manager, JPMorgan Commercial Bank. “Investing in these communities, with the right partners, can bring real change and help minority-led small business create sustained growth.”
The Bush Foundation and the McKnight Foundation each committed $5 million in Program Related Investments (PRI’s) for use in the capital stack available for community acquisitions. The Minneapolis Foundation has also made a $1 million dollar PRI commitment to the Fund, the details of which are still being negotiated. When coupled with Hennepin County and LISC, the total available for financing will exceed $25 million.
“We are excited to be investors in this fund to help rebuild valuable cultural corridors that were damaged last year,” said Tonya Allen, president of the McKnight Foundation. “We need to seize this important moment to advance transformational wealth building and community ownership. We appreciate this chance to collaborate with other organizations on this timely action in pursuit of this goal."
“We welcome this opportunity to be part of LISC’s work to preserve and enhance community assets in our region,” said Greg Keane, Chief Financial Officer of the Bush Foundation. “Our great hope is that other funders will join this effort and create even more impact in this time of critical need.”
In addition to the civil unrest, the COVID-19 pandemic has disrupted the livelihoods of many residents and their businesses. Hundreds of small businesses saw a drop in their business operations, and several had to close over the past year. To help support small businesses, LISC has also invested over $1 million in the area, and has been collaborating with multiple partners to obtain additional funds to support small business owners stay open and rebuild.
“To be successful, the rebuilding efforts must go beyond simply recreating what was there. They must provide transformational rebuilding with community ownership at the center,” said Peter McLaughlin, Executive Director of LISC Twin Cities. “We want the rebuilding to result in more inclusion, engagement and ownership by people of color not only to repair what was damaged, but also to help generate new prosperity and wealth for members of the community.”
“We’re excited about the opportunity the Community Asset Transition Fund is going to bring to our neighborhood,” shared Anthony Taylor. “We are collaborating with LISC to leverage their institutional privilege and our understanding of historical impacts to put wealth and ownership where it should be: back into the hands of the community.”
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About LISC Twin Cities
With residents and partners, LISC forges resilient and inclusive communities of opportunity–great places to live, work, visit, do business and raise families. Since 1988, Twin Cities LISC has invested $900 million to build or rehab 17,404 affordable homes and apartments, developed 2.4 million square feet of retail, community and educational space, and served over 7,500 families at Financial Opportunity Centers. To learn more, visit tclisc.org or follow us on Twitter @LISC_TwinCities and Facebook @LISCTwinCities
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.7 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
About Hennepin County
The mission of Hennepin County is to enhance the health, safety and quality of life of our residents and communities in a respectful, efficient and fiscally responsible way. County services, programs and partnerships reflect our commitment to sustaining the vitality of our communities and reducing disparities within them. To learn more, visit hennepin.us.
About Minneapolis Foundation
About the Minneapolis Foundation: The Minneapolis Foundation drives collective action to realize strong, vibrant communities. The Foundation cultivates generosity by taking action on the greatest civic, social, and economic needs—partnering with nonprofits, facilitating grantmaking, driving research and advocacy, and providing services to donors seeking to make a difference in their communities. www.minneapolisfoundation.org
About the McKnight Foundation
The McKnight Foundation, a Minnesota-based family foundation, advances a more just, creative, and abundant future where people and planet thrive. Established in 1953, the McKnight Foundation is deeply committed to advancing climate solutions in the Midwest; building an equitable and inclusive Minnesota; and supporting the arts in Minnesota, neuroscience, and international crop research.
About the Bush Foundation
The Bush Foundation invests in great ideas and the people who power them in Minnesota, North Dakota, South Dakota and the 23 Native nations that share the same geography. Established in 1953 by 3M Executive Archibald Bush and his wife Edyth, the Foundation supports organizations and people to think bigger and think differently about what is possible in their communities. The Bush Foundation works to inspire and support creative problem solving — within and across sectors — to make its region better for everyone.