IEDC Philadelphia- Invigorating Your Community through Local Ownership- Evergreen Cooperatives


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David Ebersole, Manager of Brownfields and Special Projects for the City of Cleveland Department of Economic Development, gave the following presentation at the annual International Economic Development Council Conference in Philadelphia.

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IEDC Philadelphia- Invigorating Your Community through Local Ownership- Evergreen Cooperatives

  1. 1. City of Cleveland EVERGREEN COOPERATIVES IEDC Annual Conference October 8, 2013
  2. 2. Project Partnership The City of Cleveland was approached by the Cleveland Foundation to participate in the Foundation’s Greater University Circle Initiative The Foundation established the Evergreen Cooperative Development Fund The Fund will support start-up companies that provide local services to the City’s institutions (hospitals, governments, universities). Fund start-ups will be cooperatives and target low-income residents to become employee-owners The City will use Empowerment Zone, HUD 108, and other funds to assist in the financing of these important job- and wealth- creation projects.
  3. 3. Anchor Institutions • Anchor institutions are large economic drivers that remain constant in our community. • Businesses seek to co-locate with these institutions • Cleveland Anchor Institutions: – Cleveland State University – University Hospitals – Cleveland Clinic – NASA – Cuyahoga Community College – St. Vincent’s Hospital – Metro Hospitals
  4. 4. Leveraging Anchors • Cleveland’s anchors make billions of dollars in purchases of goods and services • Can we provide those goods and services locally? • Can we locate these providers in surrounding, challenged neighborhoods? • Can we do so in a way that provides jobs and grows wealth in our community?
  5. 5. Evergreen Initiative • Create a system of cooperative, employee- owned businesses • Target to market needs • Get “Experts” to Manage the Start-Up • Leverage the purchasing of institutions • Locate in & employ neighborhood residents • Create wealth for the community
  6. 6. Evergreen Cooperative Laundry - Provide laundry services to Cleveland’s hospitals and nursing care facilities. - Universities, Hospitals, and Nursing Facilities privatize laundry services - Laundry contracts were coming available in the upcoming years - Providing neighborhood service would reduce fuel and transport fees
  7. 7. Community Benefits Provide training in: • Job-specific Skills • Life Skills • Management Skills Provide employment opportunities for neighborhood residents Provide opportunity for wealth creation in the community
  8. 8. Project Funding  $1.5 Million in City of Cleveland Empowerment Zone/HUD 108 Funds  $750,000 Loan from ShoreBank  $1,326,500 from the Evergreen Cooperative Development Fund  $1,373,500 in New Markets Tax Credits Investments  $200,000 in City of Cleveland EDA Title IX Working Capital Loan  $250,000 in Commonwealth Fund loan  $183,500 in Enterprise Grant
  9. 9. Project Funding
  10. 10. Project Results  LEED- Certified Building  10 Million lb Capacity  Opened for business: October 2009
  12. 12. Opportunities  Employees have moved into supervisory roles  Employees have selected leaders who are training for roles on the Evergreen Board.  Employees have earned equity in Evergreen
  13. 13. Green City Growers - City owned most parcels on a 10-acre site ideal for a greenhouse. - Greenhouse could produce leafy greens that would be marketed to institutions and groceries - Institutions to leverage their suppliers to locally source produce - Market for leafy greens was ideal for local production.
  14. 14. Project Funding Total Sources $16,476,896 Cleveland HUD 108 Loan $ 8,000,000 NMTC Investor Equity (PNC) $ 4,761,900 Cleveland BEDI Grant $ 2,000,000 Evergreen Development Fund $ 1,400,000 Project Grants $ 415,000 Cleveland EDA Equipment Loan $ 250,000 City of Cleveland NDP Grant $ 40,000
  15. 15. Project Results  150,000 sq. ft. Greenhouse  Largest food production greenhouse in an urban area in US  Produces 3,000,000 heads of lettuce annually  1% of product donated to Cleveland Food Bank
  16. 16. Employment Results TOTAL EMPLOYMENT: 24 CLEVELAND RESIDENTS: 20(83%) MINORITIES: 19 (79%) CRIMINAL CONVICTIONS: 4 (16%)
  17. 17. Conclusions Reproducable Model People-Planet-Profit ROI Community-based Investment • Employees Earn Equity valued at $60,000 in 10 years • Re-invest Equity in Community
  18. 18. City of Cleveland Department of Economic Development David Ebersole Brownfield Program Manager (216) 664-2204