COMMUNITY BLUEPRINT:
CCLF’S NEWSLETTER OF COMMUNITY DEVELOPMENT PROJECTS, ISSUES & FEATURES 2nd Quarter/2014
President’s Message As you have been reading in our newsletter, website and other CCLF communications, Chicago Community Loan Fund continues to grow its loan portfolio - already reaching $11.1 million in financing with an additional $11.4 in commitments in the first half of the year. This compares to the $18.8 million in total closed last year. To keep up with this record pace and ensure internal capacity continues to meet our borrowers’ demand, we have affected major changes which include new hires and promotions. I am delighted to share with you that I have promoted Rob Rose to Chief Operating Officer and Executive Vice President of Programs of the Chicago Community Loan Fund effective May 1. Rob served as our Vice President of Lending over the past two years and led the organization to our new and higher standards of lending and technical assistance provision. Rob will continue to serve as the executive lender for the corporation with a team of middle managers to support him. New positions created include Director of Lending Operations, Director of Portfolio Management, Director of Operations and Director of Economic Development. I am also bifurcating our finance and administration functions which become separate departments overseen by Rob as their executive. Jane Ames, who has greatly improved our accounting systems over the past five years, will focus on accounting and finance with a new greatly expanded team which includes a Controller and Finance and Accounting Associate. As CCLF grows, we are moving to expand these departments so they can focus on their ever-broadening, but distinct, responsibilities. My board and I are confident that our new structure will allow us to improve cross-department integration and communications, develop our terrific team of emerging leaders, improve operational efficiencies and provide better service to our customers, investors, funders and other partners. We will be able to do more for the people and places that deserve a higher quality of life. Calvin L. Holmes, President
In This Issue Page 1 • President’s Message
Pages 2-3 • Alford-Axelson Award • Partners in Progress Initiative: Bringing Firsthand Knowledge of Successful Corridors to the Table
Pages 4-5 • CCLF Holds Second Annual Stakeholders Meeting • Chicago Green Office Challenge • CCLF Technical Assistance Assessment Report • Federal Reserve Community Development Resource • Donate to CCLF
Page 6 • Meet an Investor: Irene D. Ginger • CCLF 2013 Annual Report • CCLF Says Farewell to Alyce
Page 7 • CCLF Noteworthy • CCLF Board of Directors
Page 8 • Credit Memos • CCLF Staff
And the Winner Is?
The suspense level was high and all the nominees were present at the Annual Symposium held by the Axelson Center for Nonprofit Management of North Park University. Chicago Community Loan Fund was in the running for the coveted 2014 AlfordAxelson Award for Nonprofit Managerial Excellence and had shared detailed information on our strong qualifications including financial management, use of volunteers, fundraising, governance, operating policies, human resource management, strategic planning, external relations, programs and impact. CCLF had applied for this award in the past and had received honorable mention as we continued to improve our internal capacity over the years to better serve our customers. The mission of The Axelson Center is to enhance performance and effectiveness of organizations and individuals in the nonprofit sector through education, service and resources. To further this goal, they offer a professional certificate in nonprofit management for students and a variety of programs for professionals working in or transitioning into the nonprofit sector such as workshops, the Annual Symposium, BootCamp for New Nonprofit CEOs and more. The Alford-Axelson Award for Nonprofit Managerial Excellence is awarded each year to nonprofits serving the seven-county Chicago region that exemplify outstanding nonprofit management practices. This year, 19 organizations were nominated, from which six finalists were selected. The recipient organizations were announced at the 15th annual Symposium on June 3, 2014, and presented cash awards of $7,500 each and a beautiful crystal trophy. A committee of nonprofit and community leaders determined the recipients. This year’s Large Category award winner was Chicago Community Loan Fund! This announcement was made by a video that played to an audience of 400 nonprofit sector leaders. Calvin Holmes, CCLF President, was present to accept the award. He acknowledged La Casa Norte the other finalist in the Large Category, and the winners in the Small and Emerging Category - Literature for All of Us and Waukegan to College. 2
Partners in Progress Initiative
The Chicago Community Loan Fund (CCLF) and West Humboldt Park Development Council (WHPDC) are the co-quarterbacks for the Citi and Low Income Investment Fund’s (LIIF) national Partners in Progress (PIP) initiative to increase economic progress in low-income communities. CCLF and WHPDC have worked together for seven months on the West Chicago Avenue Rebuild project that will bring community partners together through a yearlong planning process to transform eight blocks of West Chicago Avenue between Kedzie (3200 W) and Central Park (3600 W) into a vibrant, attractive, inviting and safe neighborhood retail district, replete with more and better goods and services and jobs within three years. The work of the co-quarterbacks is leading a comprehensive effort that will include a review of successful multi-stakeholder micro market community development initiatives; assessment of the current conditions and development challenges of people, properties and business owners in the corridor; data sharing; planning meetings between coquarterbacks, community residents, partners and a new retail advisory committee. These activities will lead to a new, bold, achievable, silobusting action plan that will attempt to link idle people on the corridor to jobs, workforce development opportunities, case management services and youth services; improve public safety on the corridor dramatically; assist existing and new merchants in being better shopkeepers with higher quality goods and services; improve streetscaping and upkeep of open spaces; attract new businesses with a high probability of success based on spending leakage analysis; rehabilitate dilapidated and under-improved buildings; repurpose properties to new uses and create a new brand for the corridor that excites residents of the community, as well as those from a larger trade area. Continued on next page, sidebar
“This award will make CCLF work harder to improve our management practices How will all this happen? By takso that we can continue to proudly display this trophy in our offices as a remind- ing lessons learned from those that have worked to revitalize a er to be the best we can be for all of our stakeholders,” stated Calvin. commercial corridor and securing community input. The West The awards committee selected CCLF because it “demonstrated effective manChicago Avenue Rebuild (WCAR) agement through its in-depth strategic planning process, cultivation and rela- has made significant progress in tionship building with volunteers, effective resource management, and transpar- seven months to identify partency with stakeholders. The award review committee believes the effectiveness ners, gather data from successof these practices will fuel the expansion of CCLF’s economic impact, and directly ful corridors, collect community input, research public and private enable the individuals, families, and communities it serves to thrive.” resources and continue to refine its implementation plan. Three visits have been completed to study existing commercial corridors to learn how they became successful over time and what challenges they faced. Visits were made to St. Louis, MO to study The Grove district, Washington DC – Columbia Heights to study the Tivoli Square/DC USA project and New York – Harlem/125th St. area to meet with the Abyssinian Development Corporation.
Photo by John Martin-Eatinger Pictured: CCLF Board Member Ailisa Herrera; CCLF COO Rob Rose; Axleson Center Director Dr. Pier Rogers; CCLF President Calvin Holmes; widow of award namesake Jimmie Alford, Marie Bullock; and CCLF VP of External Relations Juan Calixto
Partners in Progress Initiative: Bringing Firsthand Knowledge of Successful Corridors to the Table
Lessons learned from the corridor visits indicated how engagement of the community was difficult at times and patience was needed, as some of these projects took ten plus years in their development. Another lesson was the importance of having a developer who has a great deal of corridor real estate under its control being in place to aggressively recruit tenants. Additionally, an anchor tenant helps spur development and confidence in the corridor. West Humboldt Park Rebuild has begun to engage local residents and business owners by seeking their input on a survey asking what kind of goods and services they would like to see in the area. The co-quarterbacks are taking the lessons learned from the corridor visits and community survey to further refine the implementation plan for the remainder of the year.
Chicago Community Loan Fund and West Humboldt Park Development Council To get involved with the planning representatives meet with Betina Dowdell of Citi Community Capital (center) and process or to launch a developMarcus Samuelsson (second from left), Chef/Owner of Red Rooster in Harlem, NY ment in the corridor, contact on March 1, 2014. Read our story about Partners in Progress on the sidebar! Chet Jackson at (773) 342-0036. 3
CCLF Holds Second Annual Stakeholders Meeting
Chicago Green Office
Chicago Community Loan Fund held its annual stakeholders meeting at the Federal Challenge Reserve Bank of Chicago on June 12, 2014. Funders, investors, partners and pubThe Chicago Green Office lic agency representatives were present to hear the programmatic goals that CCLF Challenge Award & Recognition achieved in 2013 and year-to-date. Ceremony took place on June 18. The event, held at the Chicago Cultural Center, recognized the Round 3 participants who had scored the most points in the Challenge or achieved other milestones. The Challenge makes Chicago more sustainable by having companies and Above: Audience at the Stakeholders Meeting tenants engage in friendly competition to reduce Board member Ed Jacob opened the meeting by setting the stage and then introducenvironmental impact. ing Jason Keller, Economic Development and Illinois State Director for the Community Development and Policy Studies Division of the Federal Reserve Bank of Chicago. Jason welcomed CCLF’s stakeholders to the Federal Reserve and reflected on trending new With 3,625 points, Chicago regulations and Community Reinvestment Act requirements for the financial industry. Community Loan Fund received 18th place out of over 150 Board Chair John Tuohy acknowledged special guests and Jason for providing a wonscoring participants, and was derful venue and support team for the meeting and introduced the CCLF board and awarded a gold-level business management team to the audience. He thanked PNC Bank for once again sponsoring the stakeholders meeting and announced that they have just become CCLF’s largest award. investor at $8 million. Thurman Smith, SVP Community Development Bank - Market Manager for PNC replied, “PNC Bank strategically partners with organizations that In her speech to the awardees, can efficiently and prudently address the unique demands of low- and moderateKaren Weigert, chief sustainincome neighborhoods. CDFI partners like CCLF have demonstrated a proven ability ability officer for the City of to navigate under-served neighborhoods and to address the unique capital requireChicago, mentioned CCLF ments that too often impede revitalization, growth and equality.” specifically, sharing our “Big CCLF President Cal- 3” challenge as an example of vin Holmes joined with intra-office competition. The great news: CCLF won “Big 3” challenge called for staff the 2014 Alford-Axelson Award for Managerial members to turn off the three Excellence; CCLF’s CARS electronics at their desk – comrating was improved puter, monitor and printer – befrom A 3 to AA 2 and fore heading home each night. CCLF reached its asset Other notable efforts by CCLF goal of $50 million two included our purchase of a set years ahead of schedule. He also highlighted of dishes, so that each time we the new organizational receive catering, we are not usstructure that positions ing disposable dishware. CCLF to proactively meet the growing deRound 4 of the Green Office mand for financing. CCLF celebrates PNC Bank as its largest investor. Pictured Challenge will begin around Laare Calvin L. Holmes, CCLF President; Thurman “Tony” The news continued to bor Day in 2014. Learn more at Smith, PNC Bank’s SVP Community Development Bank http://chicagogoc.com/ get better from the othMarket Manager; Jane Ames, CCLF’s VP of Finance; Rob er presenters, which inor Rose, CCLF’s COO and EVP of Programs and Paul Labonne, cluded Rob Rose, newly https://twitter.com/ PNC Bank’s VP and Community Reinvestment Act Officer appointed COO and Exchigreenoffice 4
ecutive Vice President of Programs and Jane Ames, Vice President of Finance.
CCLF Technical Assistance Assessment Report
After all the program data was presented and the audit figures fully explained, Rob introduced two of CCLF’s borrowers to share their experience with the loan fund. They both stole the show with their personal demonstrations of the effects of CCLF loans. Lynn Kardasz talked about her dream of opening a healthy foods store in Uptown called Veg Head. Contractors were delayed and so was her capital until CCLF helped filled the gap with a loan. Now Lynn is making a profit and has been approached to open a second store in another community. As a savvy business woman, she concluded by offering a 20% discount to those attending the meeting if they come by her store and make a purchase.
Lynn Kardasz of Veg Head and John Tuohy, CCLF Board Chair
Lynn was followed by Rick Guzman, Chair of the Board for Emmanuel House. Rick showed a video of Khai and Lun who are refugees from a western Burmese village. At Emmanuel House in Aurora, IlRick Guzman of Emmanuel House and linois they found stable and affordable Mark Fick, CCLF Director of Lending housing that allowed them to keep their jobs and save for a down payment on a Operations home. A key service of Emmanuel House is establishing saving accounts for residents using part of their rent payments, as well as providing financial literacy and credit building classes. The video concluded with Khai and Lun’s emotional move from Emmanuel House into their new home.
CCLF conducted a multi-year assessment of its Gateway to Community Development Technical Assistance Program from 2009-2013. The report indicates CCLF’s technical assistance has been instrumental in helping a wide range of developers make meaningful impact in their communities. CCLF’s staple workshops, including Project Readiness and Building for Sustainability, have been well-received, with 680 participants attending 135 workshops between 2009 and 2013. To learn more, access the report at http://cclfchicago.org/ about-us/publications
Federal Reserve Community Development Resource
The Federal Reserve’s community development offers research, outreach and technical assistance and other activities to promote a more robust economy overall with a focus on low- to moderate-income communities. They have launched FedCommunities.org as a gateway to access community development resources from all 12 Federal Reserve Banks and the Federal CCLF showcased photos of completed borrower projects and with the goal of Reserve Board of Governors. transparency, presented charts and graphs detail- Be sure to bookmark this site to ing CCLF loans and financ- learn about practical resources to es. The impact of CCLF’s help you in your role as a comloans is measured in units munity development professional of affordable housing, and you can also provide feedsquare feet of community back on what information will be facility and commercial re- helpful for your community. You tail space developed and can access the site at number of jobs created or http://fedcommunities.org/ retained. Yet, the real impact of CCLF’s financing Donate to CCLF was witnessed in the hapWe need your financial support piness shared by Khai and to provide targeted technical and Lun as they packed their financial assistance that empowboxes and carried them ers community-based developers into their own home and to help create communities where CCLF Board Member Ed Jacob and Herman Brewer, in Lynn’s proud smile when people thrive. she talked about Veg Head Director of Cook County’s Bureau of To support our work with a secure and invited everyone to online donation, please visit Economic Development share her healthy snacks. http://cclfchicago.org/support-us 5
Meet an Investor: Irene D. Ginger
by Alyce Eaton
Community Blueprint showcases our borrowers and their projects that are helping to revitalize low- to moderate-income neighborhoods in the Chicago area. What may be less apparent is where CCLF gets the capital to be able to make these loans, and the answer is: investors. Some of our investments are from banks and corporations, but almost half of our investors are individuals and families. Irene D. Ginger is one such investor placing worth on the social impact that CCLF can help deliver. Ginger, who lives in Park Ridge, first learned about CCLF through her son, Paul, who now Irene D. Ginger works for the Office of the Comptroller of the Currency. In the past, he was a member of the CCLF Board of Directors and mentored CCLF President, Calvin L. Holmes when he was a lender. “I decided I was interested in socially-conscious investing and so I decided, well, a couple thousand dollars is not going to break me, so I went ahead and gradually, I increased my investment in CCLF,” Ginger said. Ginger, who has lived in or near Chicago all her life and attended the University of Chicago, also credited some of her interest in socially responsible investing to her faith and the Catholic social doctrine. “When I was in high school, there was a Chicago Inter-Student Catholic Action group, and they used to meet on Saturday mornings downtown,” Ginger said. “That was what really got me into thinking about all of these social issues.” Though Ginger has several family members involved in community development and other nonprofit work, including a granddaughter working at Women Employed, her own background is in the realm of science. She worked as a biochemist, then left to raise her five children before working in medical legal research and, finally, as a technical editor at Argonne National Laboratory. Ginger noted how much Chicago has expanded and changed since she grew up near Humboldt Park and attended the Chicago Holy Family Academy, including the developments in mass transit. She also mentioned seeing the University of Chicago become more aware of the neighborhoods and people surrounding it. “When I went back to the neighborhood where I grew up, which was Bucktown/Wicker Park, that area, the street on which I lived was still intact. Across the alley from where I lived, those houses had been demolished and there were townhomes,” Ginger said. “They didn’t physically change most of the buildings … but they were gentrified. The iron fences, I felt like they were a gated community and I felt like they were closing me out of my neighborhood … so that was a little bit of a shock.”
CCLF 2013 Annual Report
CCLF’s 2013 Annual Report highlights the story of three borrowers whose projects help revitalize Chicagoland’s more challenged neighborhoods: a commercial retail property in the Chatham neighborhood in Chicago completed by Veja Enterprises; an affordable housing program for refugees that leads to homeownership operated by Emmanuel House in Aurora; and a project currently under development by Theaster Gates, owner of The Stony Group, in Chicago’s South Shore that is creating a cultural space that will house arts, food, the John H. Johnson archives and more. You can read about the impact of these projects and all the highlights from 2013 by accessing the Annual Report at http://cclfchicago.org/about-us/ publications
CCLF Says Farewell to Alyce
Lutheran Corps Volunteer Alyce Eaton concludes her term with Chicago Community Loan Fund in July 2014 after completing a full year of service to the CDFI industry. Alyce has been a steadfast contributor to Community Blueprint, doing all the design and layout for CCLF’s e-newsletter and print newsletter. Her contributions to the lending team assisted many potential borrowers by providing information and referrals and support during technical assistance workshops. CCLF wishes Alyce much success and thanks her for her dedicated service to community development.
When Christmas or her birthday comes up, rather than acquiring gifts, Ginger now likes to find something to invest in or make a contribution to, including other local and environmental causes, such as urban farming on Chicago’s South Side. Ginger stated she believes in the idea of CCLF and is happy to see the positive results of her investment. “I like the idea of helping somebody else get established,” Ginger said. “It’s the old saying – you can feed a man for a day, but if you teach him how to fish, he’ll eat forever! Assuming, of course, that he’s near water.” 6
Alyce Eaton, Lutheran Volunteer Corps 2013-2014 member
CCLF Noteworthy
CCLF Board of Directors
For their recent grants, CCLF thanks Axelson Center for Nonprofit Management, Citi Foundation, MB Charitable Foundation, The PrivateBank and the Searle Fund at The Chicago Community Trust.
John L. Tuohy, Chair Chapman and Cutler LLP (retired)
Thank You to Funders and Investors
For their recent investments and renewals, CCLF thanks Kathy Tholin, Trinity Health, The Sisters of Charity of Saint Elizabeth and Marisa Whitesell.
CCLF Staff & Board News
CCLF welcomes Deborah Sabol as our new Director of Operations. Deborah was originally hired as the Office Manager and was immediately promoted. She has over 10 years of experience as an operations manager for several corporations. Deborah holds a bachelor’s degree in Business Management and Development from DePaul University. Kevin Truitt is the new Senior Loan/Program Officer, further expanding our lending team. Prior to working at CCLF, Kevin spent the bulk of his career in finance as a corporate and commercial banker working for major financial institutions. Kevin earned his Bachelor’s in Business Administration from Loyola University and MBA from DePaul University’s Kellstadt Graduate School of Business. Deandre Tanner joins CCLF in the newly created position of Finance and Accounting Associate. Prior to his employment with CCLF, Deandre was an accounting intern. He has a Bachelor of Science degree in Accounting from Chicago State University. Recent staff promotions include: Rob Rose to Chief Operating Officer and Executive Vice President of Programs from Vice President of Lending; Mark Fick to Director of Lending Operations from Senior Loan/Portfolio Officer; Lycrecia Parks to Director of Portfolio Management from Senior Portfolio Management Officer; Deborah Sabol to Director of Operations from Office Manager, Evelyn Turner to Senior Loan Closing Officer from Loan Closing Officer and Lincoln Stannard to Portfolio Management Associate from Lending Associate.
Matthew R. Reilein, Vice Chair Chase Charles S. Walls, Treasurer ComEd Mohammed M. Elahi, Secretary Consultant Jody Adler The Law Project Jerome Byers Citi Robert G. Byron Blue Vista Capital Management, LLC Charles F. Daas University of Illinois at Chicago Thomas P. FitzGibbon, Jr. Talmer Bank and Trust Erik L. Hall Grosvenor Capital Management, L.P. Ailisa Herrera MB Financial Bank Edward J. Hoynes Community Accounting Services Ed Jacob Neighborhood Housing Services of Chicago Patricia Y. McCreary Consultant Raymond S. McGaugh McGaugh Law Group LLC
New CCLF staff, clockwise:
Eric S. Phillips Village Bank & Trust (a Wintrust Community Bank)
Deborah Sabol, Director of Operations; Kevin Truitt, Senior Loan/Program Officer and
Nancy Radner The Primo Center for Women and Children
Deandre Tanner, Finance and Accounting Associate
Mark C. Spears The PrivateBank
7
Kathryn Tholin Center for Neighborhood Technology
Credit Memos: CCLF Lends $2.23 Million in 2nd Quarter 5655 S Indiana, LLC received a $440,000 permanent loan to refinance 22 units of affordable rental housing in Washington Park. This loan is part of the Cook County Preservation Compact. Community Service Council of Northern Will County received a $150,000 revolving loan to purchase and renovate foreclosed properties across Will County. This loan is part of CCLF’s Neighborhood Investor Lending Program. Thanks to Doug Tedeschi of Kirkland & Ellis LLP for serving as CCLF’s counsel on this transaction. Genesis Cooperative received a $410,000 construction/mini-permanent loan to refinance and complete minor repairs to a 22-unit housing cooperative in South Shore. This loan is part of the Cook County Preservation Compact. Thanks to Esther King of Kirkland & Ellis LLP for serving as CCLF’s counsel on this transaction. Blue Chair Capital, LLC received a $90,000 construction/mini-permanent loan to refinance two affordable rental properties in Burnside and Greater Grand Crossing. This loan is part of CCLF’s Neighborhood Investor Lending Program. Thanks to Joy Spezeski and Coree Smith of Kirkland & Ellis LLP for serving as CCLF’s counsel on this transaction. XT Properties, LLC received a $666,240 mini-permanent loan to finance 2-3 unit rental properties across Chicago’s South and West Sides. This loan is part of CCLF’s Neighborhood Investor Lending Program. Thanks to Patrick Herndon of Mayer Brown LLP for serving as CCLF’s counsel on this transaction. West Humboldt Park Development Council received a $225,000 mini-permanent loan to refinance a community office and a healthy food restaurant in Humboldt Park. This loan is part of our commercial real estate initiative. Thanks to Brian Dole of DLA Piper LLP for serving as CCLF’s counsel on this transaction. Lifeline Productions, Inc. received a $250,000 mortgage refinance and working capital loan to offer access to live theatre and education in Rogers Park. Thanks to Meredith Morgan of Chapman and Cutler LLP for serving as CCLF’s counsel on this transaction.
CCLF Staff Calvin L. Holmes President Rob Rose Chief Operating Officer/Executive Vice President, Programs Jane I. Ames Vice President of Finance Juan Calixto Vice President of External Relations Mark Fick Director of Lending Operations Lycrecia Parks Director of Portfolio Management Deborah Sabol Director of Operations Wendell Harris Senior Loan/Program Officer Evelyn Turner Senior Loan Closing Officer Kevin Truitt Senior Loan/Program Officer Kallie Rollenhagen Technical Assistance Program Officer Bettye Claggette Finance & Accounting Associate Elizabeth Ginsberg Portfolio Management Associate Lincoln Stannard Portfolio Management Associate Deandre Tanner Finance & Accounting Associate Alyce Eaton Program Assistant
Consultant Chelsi Cicekoglu Lender
Newsletter Credits The mission of the Chicago Community Loan Fund is to provide flexible, affordable and responsible financing and technical assistance for community stabilization and development efforts and initiatives that benefit low- to moderate-income neighborhoods, families and individuals throughout metropolitan Chicago.
Compiled by: Juan Calixto Alyce Eaton Calvin Holmes Printed by: Salsedo Press
@cclfchicago