Northeast Minneapolis residents take development into their own hands
Hoping to fill some of the empty commercial space on Central Avenue in Northeast Minneapolis, a group of locals has come up with a novel idea. They're forming an investment cooperative, whereby members each throw in $1,000 and the money goes toward buying and fixing up properties and helping new businesses get established.
So far, the NorthEast Investment Cooperative (NEIC) has drawn 15 members and more than 30 pledges. At a meeting in late March, the group will establish bylaws and elect a board of directors. Much is yet to be determined, such as which properties around Central and Lowry avenues might be targeted, what sort of new businesses people want to encourage and what incentives and assistance might be offered to would-be business owners.
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(Photo by Mike Mosedale)
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All over the state, communities are trying to grow businesses from the ground up by offering microloans, mentoring programs and incubator spaces with cheap rent. We reported on the approaches as part of our recent One Job at a Time project. This is yet another twist on the theme.
If all goes according to plan, the NEIC will start with a high-profile troubled property on Central Avenue. The group will buy the building, rehab it and find one or more businesses to fill it. Once the businesses are on their feet, the hope is they'll purchase the building from the cooperative. The money would then be reinvested in the next property and so on. Since the NEIC is for-profit, members might see a return as well.
NEIC co-founder Amy Fields, who also manages the Eastside Food Co-op on Central, thinks local ownership and management of commercial properties can make a difference. "For a lot of property owners, they are interested in a return on investment, not whether a particular business makes it. So many businesses come in with six months of cash flow and once they've gone through that, they're gone."
At the NEIC, she said, "We've got the triple bottom line that includes community and environment and so I think we're going to be looking at a way to have a long-term relationship with tenants."
"How the main street goes is how the rest of the community goes," Fields said. "If Central Avenue is invested in and becomes a more desirable location, everyone who lives here benefits from that."
The NEIC is aiming for a minimum of 100 members and Fields hopes the effort will strengthen the fabric of Northeast Minneapolis. "This is my community," she said. "I know people and I see people every day. I just want more of that. There is a sense that there is such talent and good will and energy and just commitment that you don't know about that is out there."