MESSAGE FROM LEADERSHIP
///////// 2022 WAS A YEAR OF GREAT TRANSITION FOR LISC DULUTH. After crossing the one-year mark of leading this office, our team was able to maintain a strong presence within our community to ensure the impact of our mission was felt. We couldn’t do this alone. I want to express gratitude for all the hard work and support of our partners, which helped forward efforts in advancing LISC’s mission: together with residents and partners, we help forge resilient and inclusive communities of opportunity across America – great places to live, work, visit, do business and raise families.
Our work remains as important as ever. What’s so critical about LISC’s work is that we contribute to relevant change to fulfill our mission according to specific community needs. This past year we worked to positively impact our community. The following are some of our highlights:
- Kicked off Duluth’s Housing Trust Fund alongside the City of Duluth to create new affordable housing leveraging $3,000,000 of locally raised capital, including $50,000 for developers of color.
- LISC’s predevelopment lending capacity to financially support equitable development projects, in collaborations with many community partners, including 1Roof’s Brewery Creek Apartments and revitalizing the Duluth Armory.
- Provided $200,000 of federal HUD Section 4 resources to build capacity of local non-profits working to address critical community needs.
- Amplified the voices of BIPOC job-seekers and entrepreneurs through the Wealth Entrepreneurship & Economic Sustainability initiative assisting 39 BIPOC small businesses with $76,000
- Explored how our resources can be leveraged to promote housing development creating deeper impact within Duluth and further into the Northland.
Reflecting on the accomplishments of the past year makes me even more excited about what is to come. We have a lot more to accomplish and are fortunate to have such strong partnerships alongside a resilient community that wants to see all its members thrive.
Thank you for taking action with us.
Sincerely,
Sumair Sheikh Executive Director LISC Duluth
FEATURED PROJECTS
IN 2022, LISC Duluth invested in affordable housing, BIPOC leaders, and creative places to seed growth and revitalization across the city.
ECONOMIC DEVELOPMENT / FAMILY INCOME AND WEALTH BUILDING
WEES Embraces BIPOC Leadership & Entrepreneurism
In 2021, Northwest Area Foundation awarded LISC a multi-year grant to support WEES (Wealth, Entrepreneurship, and Economic Stability), a program aimed to reduce barriers and improve pathways for Duluth’s Black and Indigenous community members–two communities in Duluth facing the largest disparities in annual household income, employment, and entrepreneurship opportunities.
LISC's role and the group's work have evolved since Northwest Area Foundation's initial investment in 2019. The partnership and flexibility on this important, innovative work by the community, for the community, is supporting BIPOC community leaders, entrepreneurs, and skilled diversity consultants.
“Despite all our efforts, community members of color are still facing employment discrimination and barriers to the workforce,” says Elena Foshay, director of City of Duluth Workforce Development. Two intergenerational committees are convening to help Black and Indigenous workers find support to overcome negative past experiences and achieve employment advancement. “Their goals are beyond job placement--they want to see Duluth's workplaces are inclusive and value diversity.”
In the fall of 2022, WEES supported a pop-up market of the community's BIPOC entrepreneurs. The market, a collaboration with the Duluth 1200 Fund and Downtown Duluth, was held in an open storefront on Superior Street where 9 small businesses set up a shop from August to October. Participants also received technical support through local organizations Family Rise Together and Family Freedom Center. The WEES program provided resources to market and provide supplies for the event.
“The historical, structural and systemic racism in Duluth will affect how we build relationships and community in downtown Duluth,” describes ChaQuana McEntyre, director of Family Rise Together. “We must remember what is most important in this work: culture, community, local businesses and business owners, and community-led values. What we learned from the Tour is having a safe space is not only important, but vital in the development of community for Black and Indigenous community members.”
AFFORDABLE HOUSING
Equitable Housing Financing Fills Gaps in Development
Improved housing improves the quality of life for all Duluthians. The Duluth Housing Trust Fund (DHTF) is a partnership with the City of Duluth, creating synergy between lending institutions, community organizations, nonprofit and government agencies to increase density in designated core investment areas.
Through the Duluth Housing Trust Fund, LISC is offering low interest construction loans for new construction and substantial rehabilitation projects. LISC is targeting its funds to multi-family properties of six to 20 affordable housing units. The City of Duluth also has funds to help single-family homeowners and small rental housing projects. The fund currently has $16 million. Of the total, the city committed $4 million toward the Housing Trust Fund.
Working together, the DHTF is designed to fill gaps in the housing financing market to accomplish the following goals:
- Increase housing stock in Duluth, especially affordable rental and homeownership that costs no more 30% of the income of households earning 80% or less of Duluth’s area median income
- Invest in Duluth neighborhoods making affordable units available citywide
- Remove blight, improve safety and encourage pride in neighborhoods
- Leverage existing municipal infrastructure
- Promote density wherever possible
LISC leverages the power of community to transform our neighborhoods. We want to put people first. We want to raise those voices up in a different way.”
Dan Collison Sherman Associates Director
ECONOMIC DEVELOPMENT
Historic Armory: Culmination of Efforts & Art
The Duluth Armory honors the past and reimagines the future in the East Hillside. In 2011, it joined the National Record of Historic Places for its state-level significance for its military history and past premiere entertainment venue. Awaiting a decision from the Minnesota legislature, the Duluth Armory and North Country Creative Center is seeking $6.5 million to match a combination of federal funding, new market tax credits, historic tax credits, state and local grants. LISC Duluth provided $270,000 in predevelopment funding to attract a developer and hire a new market tax consultant to help market the project as a unique arts, food destination, and entrepreneurial center.
Connecting with Sherman Associates, who already has a strong connection to Duluth, Lars Kuehnow, LISC Duluth Program Officer describes Sherman Associate’s redevelopment approach is to ensure the renovation costs enable a low barrier to entry for early-stage entrepreneurs, especially emerging BIPOC who are looking for an affordable place to open a business. “The longtime challenge to the redevelopment of the Hillside neighborhood is the changing and expanding needs of our strong medical footprint. The Historic Armory and North Country Creative Center will serve as an anchor and a catalyst of continued neighborhood development for family entertainment, tourism, and a place to start a business.”
Duluth, as a post-industrial city, does not have empty warehouse spaces or large vacant lots that are common in other urban centers. The Historic Armory is Duluth’s opportunity to emulate successful business incubator models and help foster a BIPOC economic ecosystem.
The $42 million renovation is working to access State Historic Tax Credits. Construction is expected begin in early 2024.
Historic Amory and North Country Creative Center highlights:
- The former drill hall will be the centerpiece of a vibrant mixed-use commercial space; with a public marketplace filled with small businesses and food vendors. This will be an opportunity for entrepreneurs who may not be able to afford a storefront to have a retail space.
- A state-of-art Food Enterprise Center consisting of a Production Kitchen, Training Kitchen, and a farm Food Hub storage and distribution center, will be located on the lower level. The Center will involve partnerships consisting of an array of multi-ethnic groups and businesses and be an incubator for local and regional food entrepreneurs
- The stage will be a focal point to the mixed-use commercial space; allows the opportunity to foster local and regional talent and keep the space active and fresh.
- North Country Creative Center will be an exhibit space that celebrates the creative spark of the people and entertainers who were at the Duluth Armory. This includes Duluth native Bob Dylan who will have a permanent exhibit showcasing his ties to the Armory, Duluth, and Hibbing. The Music Resource Center will host an after-school music education program for area teens.
SMALL BUSINESS DEVELOPMENT
Duluth's Mama Roots Receives Infusion from Grant Funds
Mama Roots is one of 50 small businesses led by Black and Latinx entrepreneurs across the nation to receive funding from a new LISC partnership with Gran Coramino® Tequila. The Coramino Fund is the centerpiece of a give-back program to support small business owners who have historically faced racial barriers to the capital resources to grow their businesses.
Mamma Roots, operated by Desiree Jenkins, is a food truck serving 100% plant-based, scratch cooking that utilizes fresh, seasonal ingredients to challenge the world’s view on vegan food. Be on the lookout for the big blue school bus or visit their calendar for upcoming locations and globally-inspired catering.
SMALL BUSINESS DEVELOPMENT
Seeding Great Ideas
Building a vibrant future for all Minnesotans with shared power, prosperity, and participation, McKnight Foundation partners with LISC Duluth to annually award seed grants. Recipients receive funding to advance economic mobility, build wealth, and increase capacity and BIPOC leadership, for equitable and inclusive community and economic development in Duluth. In 2022, LISC partnered with Family Rise Together and AICHO to award 20 seed grants to BIPOC entrepreneurs and small business owners.
Family Rise Together combined the funds with additional grant resources and joined Family Freedom Center and Entrepreneur Fund staff to provide seed grants and technical assistance to help 5 entrepreneurs get their businesses started
- The Fresh Kid (Anthony Miller III) Upscale used clothes, shoes, and bags.
- Scarlet Blu Cosmetics (Ladajah Richmond) Handcrafted organic cosmetics
- Woosha (Jayden Edwards) Spa and wellness services focusing on mental health and addressing isolation of young adults struggling with identity issues and belonging to community
- My Brother’s Keeper (Timothy McCray) Clothing and accessories
- King’s Klothing (Maurion Travis) Rap artist and clothing line
Awardees received assistance with registering their businesses, create a plan for 2022-2024, and participation in Duluth Sidewalk Days andThe Culture pop up shop.
AICHO awarded 15 Seed Grants to Indigenous and BIPOC food producers, botanical vendors, and artists who participated in the AICHO Food & Art Markets from May-October 2022. Grant recipients purchased vendor equipment, business equipment to accelerate sales, marketing and branding materials, and business supplies. The vendors represented retail food, botanicals, art, manufactured items, and fashion design products. Seed grant recipients were able to build a customer base and will be able to use the equipment they purchased for future market opportunities.
BY THE NUMBERS 2022
With residents and partners, Local Initiatives Support Corporation (LISC) invests in underserved communities nationwide – helping bridge racial, health, wealth, and opportunity gaps plus building more affordable and resilient places to live, work and play. Since 1979, LISC has invested in $29.7 billion to build or rehab 489,000 affordable homes and apartments and develop 81.5 million square feet of retail, community and educational space.
LISC Duluth is one of 38 local offices in the LISC network, a national nonprofit organization and community development financial institution (CDFI) supporting cities and rural areas throughout the country. We work with local leaders and collaborating partners to invest in affordable housing, creative placemaking, economic development, education, financial stability, health, and vibrant neighborhoods.
in total investments
in capacity building grants to local partners
in small grants and sponsorships
in economic and community development
OUR FUNDERS
2022 Private Sector
A&A Enterprises Charitable Fund, a donor advised fund of the Duluth Superior Area Community Foundation
Gary Anderson
Apter Family Fund, a donor advised fund of the Duluth Superior Area Community Foundation
Gabriel Barrera
Bell Bank
Benedictine Sisters of St. Scholastica Monastery
Otto Bremer Foundation
Center City Housing
Matt Cochran
John Cole
Stephanie Cummings
Tony Cuneo
Erica Danielski
Jessica Deegan
Michael Dixon
DSGW Architecture
Duluth News Tribune
Gary & Barbara Eckenberg
John Erickson & Gail Blum
Essentia Health
Jean Farmakes
Elena Foshay
Annika Frazer
Gilbert Law Office
David & Lisa Goldberg
Cammy Hansen
Housing and Redevelopment Authority of Duluth
Helena Jackson
Joe Johnson III
Lloyd K. Johnson Foundation
Pam Kramer & Grey Doffin
Lars Kuehnow
Latino Economic Development Center
Daniel Lew
LHB, Inc.
Christine Lunde
Daniel Maddy
Jane Mason
Maurices
McKnight Foundation
Members Cooperative Credit Union
Minnesota Power Foundation
North Shore Bank
Northland Foundation
Northwest Area Foundation
Emily Nygren
Sandy & Geoff Popham
Derek Reise
Chad Ronchetti
Melanie Shepard & Alan Netland
Carin Skoog
Nathan Smith
St. Louis County
Lee Stuart
Carolyn Sundquist
Lonnie & Pam Swartz
Kenneth Talle
Anna Tennis
U.S. Bank
U.S. Bank Foundation
Katherine Welch
Wells Fargo Foundation
2022 Public Sector
City of Duluth
Minnesota Housing Finance Agency
U.S. Department of Housing and Urban Development
OUR TEAM
LISC Duluth Team
Sumair Sheikh Executive Director
Lars Kuehnow Program Officer
Emily Drevlow Assistant Program Officer
Tina Robbins Program Assistant
Johan Lopez Ortega Intern
Local Advisory Board 2022
Stephanie Cummings, Chair SVP – Chief Retail Officer National Bank of Commerce
Michael Boeselager Vice President Support Services St. Luke’s
Anthony Bonds Assistant Superintendent ISD 709
John Erickson Principal DSGW Architects
Jean Farmakes General Counsel LHB, Inc.
Elena Foshay Director of Workforce Development City of Duluth
Geoffrey Popham Vice President – Private Client Group US Bank Private Banking
Cammy Hansen Vice President -NBC Signature Banking National Bank of Commerce
Frank Jewell St. Louis County Commissioner St. Louis County
Joe Johnson, III Senior Vice President North Shore Bank
Neal Ronquist Publisher Duluth News Tribune
Laura Thorsvik Operations Administrator – Surgical and Procedural Specialties Essentia Health
Kody Thurnau Research Analyst/GIS Coordinator Minnesota Housing