As a follow-up to Bruce Shoemaker's e-mail of January 7, 2003, I wanted to clarify 
several points about LISC's approach to the work of community development.  I had a 
good opportunity to sit down and talk with Bruce and Kevin Reich of the Holland 
Neighborhood Improvement Association late last week.  We had a very direct and 
productive conversation about a range of tough issues facing not only the Northeast 
community, but many neighborhoods throughout the city.   

In his e-mail, Bruce raised a number of core questions about the formation of a new 
community development corporation (CDC) in Northeast Minneapolis and LISC's approach 
to community development, in general.  These questions centered on the organizing role 
of CDCs vis-a-vis area neighborhood organizations, the appropriate size, scale and 
model for development entities in general, issues of competition for development 
opportunities, and the appropriateness and timing of city funding for the commercial 
corridor program along Central Avenue.  As I noted above, we had a good conversation 
about all of these issues, but I wanted to clarify a few key points:     

First, LISC highly values the role of neighborhoods and communities in the development 
arena.  It is at the heart of our mission and is essential to good community 
development work, in our opinion.  Part of the tension that often exists between CDCs 
and neighborhood groups, from our perspective, lies in the constant battle of finding 
the right mechanisms for meaningful community input and the right balance between 
community process and a nimble, aggressive community-driven development organization.  
This has been particularly tricky in the Twin Cities where community organizing 
functions have often been disconnected from community development processes and are 
underfunded in many ways.    

Second, we view competition as a good thing.  There can be no question that the 
private market has returned to many of our core city neighborhoods.  Private 
developers are active in most of our neighborhoods and often have access to 
development opportunities on an equal if not more favorable basis than nonprofit 
developers do.  Indeed, we view the community development environment in Minneapolis 
as one that favors private developers-perhaps appropriately so.  Given the value we 
place on community-driven development, we've found ourselves more often battling to 
keep CDCs, nonprofit developers and neighborhoods at the development table than 
anything else.  

Third, LISC has a long track record of being open to, and supporting, many different 
"models" of community based development.  We have invested millions of dollars over 
the years in a range of community development models, including neighborhood 
organization/CDC partnerships, partnerships among multiple organizations in a 
neighborhood, cross-neighborhood partnerships, as well as single purpose and/or 
comprehensive CDC models.  We have always believed that community development work can 
take many forms and still produce good results.  Bruce's point about LISC favoring 
broader, cross-neighborhood CDCs or models is somewhat correct.  Unfortunately, over 
the past few years, we have become increasingly convinced that the funding 
environment, the development system and policymakers are less and less supportive of a 
widely scattered, smaller scale approach where individual neighborhoods have their own 
development capacity.  This has been a painful realization for us here at LISC, one of 
the few organizations that has invested substantial sums in building neighborhood 
based development capacity.   The challenge now is to figure out how to maximize 
community voice and input while also seeking out efficiency in production and 
implementation capacity.   

Fourth and finally, in terms of  the appropriateness and timing of the city's support 
for the commercial corridor work along Central Ave. and West Broadway, we obviously 
feel this is a good investment.  LISC's current fast track request is a reflection of 
the fact that LISC has, on good faith, carried the full costs of Year 3 of this 
program, including the city's portion of the funding for this program, which actually 
began in the Spring of 2002.  The city initially made a four-year commitment to this 
program back in 2000, supporting a funding partnership between the city and LISC in 
which LISC raises private funding to match, dollar-for-dollar, the city's funding- a 
pretty good deal from our perspective.  Unfortunately, our annual city funding for 
this program was caught up in the 2002 HRA Levy discussion which, after several twists 
and turns, has been approved but pushed into the current year.  In the meantime, LISC 
has kept the corridors running by making $96,000 in grants that should have been 
covered by the city.  Given our own scarce grant dollars, we are unable to continue 
this.  As they have since the middle of last year, city staff is recommending that the 
Year 3 funding, and the funding for Year 4 (which begins in Spring, 2003) come out of 
the 2002 HRA Levy.  This action will be considered by the City Council in late 
January.   

There are many tough issues facing neighborhoods across the city in these times of 
constrained resources.  I believe that we here at LISC have been investing our own 
scarce resources in ways that meet several critical shared community goals, including 
the creation of vibrant commercial corridors along two of the cities top four priority 
corridors: Central Ave. and West Broadway.  I appreciate the time Bruce and Kevin took 
to talk with us about their concerns and hope this brief response helps readers of the 
Issues Forum understand just a bit more about our approach.  I'd be happy to sit down 
with anyone else to continue the discussion.  I can be reached at (651) 265-2297.      







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