Lifting Up Entrepreneurs
Showcase and awards event celebrates businesses that meet community needs. Pg. 24
The Sandstone Solution Communities across the region are in dire need of affordable housing. The city of Sandstone is making a difference. Pg. 42
Granite Partners is a private investment and long-term holding company founded in 2002 in St. Cloud, Minnesota, with a mission to grow companies and create value for all stakeholders. We advance a culture of trust, innovation, and excellence as essential to 100-year sustainability, and we aspire to world-class wellbeing for everyone in the Granite community.
Showcase
6 Initiatives: Regional Highlights
Get the latest highlights from Central Minnesota’s 14 counties and two Native nations.
8 Economy: Pausing to Problem-Solve
Nonprofits, government agencies take time to train, make their operations more efficient. 42 Community: The Sandstone Solution
Communities across the region are in dire need of affordable workforce housing. The city of Sandstone is determined to make a difference.
Home made: Long Prairie Drive-in Theater
This magical Minnesota landmark makes it worth the drive to watch a movie.
Little Falls, Minnesota
These revitalized spaces are gems in Little Falls’ vibrant business district, contributing to its economic vitality and providing a hub for community activity.
Widseth provided planning; architecture; structural, mechanical, and electrical engineering; and construction administration.
I’ve had the joy of spending lots of time in community these past months, traveling the region, hosting our ongoing engagement events, celebrating the good work of our many partners, visiting with businesses and nonprofits we support, and taking every chance I can get to visit downtowns, parks, and other vital local spaces.
In every town, at every event, in every gathering, I’m moved by and reminded of the power of small actions that lead to transformative changes.
The people, organizations and communities featured in this issue radiate the energy of small actions and the abiding belief in big change.
Like Don Bottemiller, whose choices to grow his and his family’s giving over decades and how it now supports students and causes across the Wadena area.
And nonprofits like Family Pathways, whose staff used continuous improvement models to make small process changes that now deliver big benefits in their service to clients.
And the entrepreneurs honored at this year’s Emerging Entrepreneur Showcase & Awards event. They reorganized their busy lives to come every week Enterprise Academy classes and used their knowledge and skills to open small businesses.
And the community of Sandstone, which spent decades patiently planning and believing in a future for their long-closed historic school, which now has the traction— and an incredible developer—to transform the building into housing.
All represent small choices over time to keep investing and believing in themselves—and in their communities.
Their stories are a call to action for each of us: What small change or choice can I make today to create a positive impact tomorrow? What change or choice can I keep making to create a positive impact today—or even years or decades—into in the future?
I don’t doubt that the way in which you answer this question today will lead us to featuring your story of success in a future edition of IQ Magazine! Read on, be inspired, and thank you as always for your commitment to building healthy, vital economies and communities in Central Minnesota.
Brian Voerding PRESIDENT
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VOLUME 40, FALL 2024
Initiative Foundation
President | Brian Voerding
Marketing & Communications
Director | Bob McClintick
Marketing & Communications
Specialist | Allison Norgren
Editorial
Managing Editor | Betsy Johnson
Writer | Kevin Allenspach
Writer | Suzy Frisch
Writer | Maria Surma Manka
Writer | Lisa Meyers McClintick
Writer | Andy Steiner
Writer | Gene Rebeck
Art
Art Director | Dan MacLaughlin
Photographer | Paul Middlestaedt
Photographer | John Linn
Photographer | Mohamed Jama
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IQ Magazine unlocks the power of Minnesota leaders to understand and take action on regional issues.
The Continuous Improvement Cohort Program empowers nonprofits and local governments to identify and work towards efficiencies that help them serve central Minnesota communities. Proud to offer this program in partnership with the Initiative Foundation.
Scan to hear from past participant Jason Kempthorne on how the Continuous Improvement Program impacted operations at Salem West.
Questions? Contact Community Solutions Specialist, Tammy Filippi at 218-895-4206 or tammy.filippi@sourcewell-mn.gov.
An Initiative Foundation grant is helping to promote conversation, bridge divides and build community using humor to lift people up and make them feel seen and heard. Danger Boat Productions, in collaboration with the Minnesota Humanities Center, in August brought its Sketches of Minnesota improv show to Little Falls. Seen in nearly a dozen other Greater Minnesota communities, the two-man show had audiences howling while equipping them with the tools to tackle touchy topics.
Food pantries throughout Central Minnesota help meet the needs of food-insecure families. But some families may still have empty cupboards. With help from an Initiative Foundation grant, the local United Way is working to shore up additional needs with a backpack program to provide weekend food options for students at Long Prairie-Grey Eagle schools. With community support, the program provides about 200 students in need with kid-friendly food bags for the weekends.
Verndale-resident Lisa Finck took her passion for supporting those with epilepsy and created a business, Rainbow Hair Hats, which produces colorful hats that cover electroencephalogram (EEG) monitoring equipment. Finck’s daughter, Espen, has tuberous sclerosis complex, the leading genetic cause of epilepsy and autism. Finck, part of the 2024-2025 Initiators Fellowship, is being supported by an Initiative Foundation loan to build up her inventory. Learn more: rainbowhairhats.com
A decades-old database at Faith in Action of Cass County is getting an overhaul with help from a Compeer Financial Rural Collaborative Project grant administered by the Initiative Foundation. With the funding, the Hackensack-based nonprofit is updating its contact management, service scheduling and communication systems to better serve the community. The organization provides non-medical neighborly assistance to older adults, adults with disabilities and others experiencing difficult circumstances.
Those going through addiction recovery have a new means of support at Open Arms Community Center in Baxter. Lighthouse Beginnings, a Brainerd-based organization, launched the center to provide a safe space, one-on-one support, and other services to those in the recovery community. Lighthouse Beginnings received an Initiative Foundation grant to open the center and staff have participated in numerous nonprofit trainings offered by the Foundation.
With names like “Mermaid’s Charm” and “Mystery of the Mast,” Princeton-area residents can go on an “Uncharted Odyssey” when they visit Sunken Ship Brewery for a craft beer or seltzer. The popular and award-winning brewery—its “Minimum Wake” hard seltzer earned top honors at the 2024 Minnesota Brewers Cup & Awards—was recently supported by an Initiative Foundation loan to make building improvements. The business opened in July 2022.
“Without a loan from the Initiative Foundation, we would have not been able to launch our business. Loans like these from the Initiative Foundation help entrepreneurs like us get started.”
– Diana Morelos Señor Elote
Co-owner
A lending partnership is helping Northern Hollow Winery move from Grasston to the Foley area, where ground was broken in July on a 10,000-square-foot facility. When finished, owners Deanna and Jim Truehart will have space for wine tasting, business and private events, a wedding venue, and a kitchen that will feature wood-fired pizza and other wine-paired foods. The project is supported by the Initiative Foundation, Benton Economic Partnership and Frandsen Bank & Trust. Learn more: northernhollowwinery.com.
A new amphitheater at Sherburne National Wildlife Refuge will help visitors and students learn about sandhill cranes, bald eagles, and myriad animals and plants that inhabit the Zimmermanarea refuge. Friends of Sherburne National Wildlife Refuge is an Initiative Foundation Partner Fund. It raised more than $400,000 for the project. Construction took four months and culminated with a ribbon cutting in September 2024. The new amphitheater seats 100 and features artwork by Native artists Holly Young and Giizh (Sarah) Agaton Howes.
Central Minnesota basketball players have a new place to practice their free throws, bank shots and alley-oops with the opening of MM Basketball Training, LLC, owned by Mendell Midy. With support from a PROMISE Act loan, funded by the Minnesota Legislature and administered by the Initiative Foundation, Middy created a permanent location for his 10-year-old business with a renovated space at 2803 Clearwater Road in St. Cloud. Learn more at mmbasketballtraining.com.
COUNTY
Running a nonprofit is a lot like running a business: You need to make sense of the numbers for it to work. A series of training sessions at Central Minnesota Jobs and Training Services in Monticello helped staff from 27 nonprofits learn how to navigate financial statements and forecast a yearly budget. The free sessions were supported by the Initiative Foundation and led by consultant Julie Anderholm. Learn about Initiative Foundation training opportunities at ifound.org/training
Fresh air, fellowship and art made for a winning combination for senior citizens living in Wyomingarea independent living facilities. Led by the Wyoming Area Creative Arts Community, events provided free transportation to local parks where participants could express themselves through an art project. In all, five events served nearly 50 senior citizens. The art sessions were supported by a special Initiative Foundation grant round to alleviate loneliness and social isolation.
GPS 45:93 has a fresh website and a new name: the East Central Development Partnership (ECDP). The organization also has switched from monthly meetings to more topic-specific summits and trainings, which have been well received. An Initiative Foundation grant helped support the changes for the organization that supports economic development initiatives in Isanti, Kanabec, Pine, Mille Lacs and Chisago counties. Learn more: ecdp.us.
For more than a decade, Soup for the Soul in Mora has served up weekly suppers with a side of social interaction. Each Monday, the organization feeds more than 100 adults and children in the Mora area with the support of many local organizations and volunteers. Soup for the Soul received a grant from the Initiative Foundation’s spring grant round aimed at reducing social isolation and loneliness.
Completing a college degree or certification sometimes presents obstacles, and students with financial needs may require extra help to cross the college finish line. With support from an Initiative Foundation and Central Minnesota Community Foundation grant, up to 35 Pine Technical and Community College nursing or emergency medical technician students enrolled in the SNAP Employment & Training PLUS Program can have their costs covered for testing fees, boards and certifications.
Seniors enjoyed the open-air pastel classes offered through the Wyoming Area Creative Arts Community.
Nonprofits, government agencies leverage continuous improvement training to make their operations more efficient
By Suzy Frisch | Photography Courtesy of Family Pathways
As a large human services nonprofit in east central Minnesota, Family Pathways has a near constant need to hire employees and bring on volunteers to support the organization’s hunger relief programs or to work at one of its 10 thrift stores.
Executive Director Tony Buttacavoli and his team, however, faced a significant impediment: Whether new hires or volunteers, new folks must complete a sizable stack of forms through an uncoordinated process before they can hit the ground running. To counter the challenge, the Family Pathways team turned to the Initiative Foundation’s Continuous Improvement program for help. Designed for nonprofits and local units of government, and delivered in partnership with Sourcewell, the three-month program uses the PlanDo-Check-Act framework to help participants focus on opportunities to streamline their process.
Buttacavoli and his team graduated from the program in June 2023 after focusing on their onboarding obstacles. “It’s important to pause and assess processes and services from time to time
and set goals and standards,” he said. “Continuous improvement facilitates the idea of saying, ‘Let’s take a break and look at what we’re delivering and how we’re doing it. Is there a way for us to have better customer service, find efficiencies, and improve the quality of the services we’re providing?”
The answer, it turns out, is yes. Family Pathways now has a more seamless process that includes a standardized checklist to track onboarding progress and a common toolkit of forms that can be filled out and transmitted electronically.
Launched in 2022, the Continuous Improvement program uses a four-step model to help Central Minnesota nonprofits and local government teams implement change. Buoyed by real-life examples— like a New York food shelf that used the continuous improvement process to cut its per-box packing time from three minutes to 11 seconds—the participating teams take small, measured steps to identify pain points and enact solutions to simplify processes and eliminate wasted time, resources and effort.
“We know nonprofit and local government leaders are passionate about their work and that there are never enough hours in the day or resources to do all that they want to do,” said Nicole Clements, nonprofit development program officer at the Initiative Foundation. “With a small upfront investment of time, the continuous improvement process can help organizations be more efficient, and that, in turn, creates more space to meet other needs.”
Nineteen nonprofits and five local government teams have been supported through the program during the past three years.
During five meetings—four in-person and one online— participants work to identify the root causes of aggravation for customers, clients or employees, said Tammy Filippi, resource development administrator at Sourcewell. Trainers from Performance Excellence Network guide participants as they set goals, identify the necessary changes, and implement them. They then evaluate the results, make adjustments as needed, and standardize the solution. Like a circle, it is meant to be repeated again and again for ongoing improvement opportunities.
The cohort model adds value to the experience, Filippi said. Teams learn from one another as they tackle a variety of challenges— from event planning to building operations to volunteer management. “Governments and nonprofits serve different audiences, but there’s a real learning opportunity when you can hear from all kinds of organizations about their different ideas and projects. It’s a melding of experiences and expertise.”
Two teams from Morrison County Health and Human Services identified the department’s case management billing system and its intake process for walk-in visitors for their continuous improvement projects.
Jeff Bowman, adult services supervisor for Morrison County, said several departments engage with the case management billing
system and frequently encounter outdated information. His team created roadmaps to streamline processes, improve communications, and reduce billing errors. While work is still ongoing, Bowman said the department already has slashed the number of missing or inaccurate claims.
“I believe it will greatly reduce headaches and frustrations and improve collaboration so that people have a better understanding of their roles and responsibilities and how they interconnect,” Bowman said. “We will be able to better support our team and its overall functioning.”
The team tackling the intake process for walk-ins used a data-driven approach to assess traffic patterns. In the past, employees would take turns juggling their schedules—and their responsibilities—so that someone would be available for walk-ins. The strategy increased stress and decreased productivity, said Aaron Stein, human services supervisor. By tracking the frequency of walk-in visitors, the team determined that a daily on-call employee wasn’t the best use of resources. Instead, they improved the way they communicate walk-in policies and procedures for connecting residents with appropriate staff.
The training taught Stein and Bowman lessons that will inform future continuous improvement efforts—and save taxpayer dollars. Driving effective change means “learning to not spread yourself out but rather dive down to the root of the problem,” Bowman said. “Try to solve that one problem instead of trying to do them all at once.”
As the Morrison County teams continue with their improvement efforts, Stein is hopeful about the end results: “I do believe that we will be able to maintain a high level of services for residents of Morrison County and reduce some of the stress and anxiety that goes with being responsive to our residents. There will be a big payoff for our workers and residents.”
Nicole Clements
nclements@ifound.org (320) 631-2048
MAXIMIZE YOUR GENEROSITY TODAY
ENSURES THAT CENTRAL MINNESOTA WILL CONTINUE TO BE A VIBRANT PLACE TO LIVE AND RAISE A FAMILY.
When Tuleah Palmer applied to become the Initiative Foundation’s first Volunteer in Service to America (VISTA) in 1999, no one could have predicted where her future would lead. More than two decades later, Palmer is several years into her role as CEO at the Grand Rapids-based Blandin Foundation. As part thank-you and part investment in the future of Central Minnesota, Palmer has committed to a personal $10,000 gift to the Foundation’s general endowment. She deems it a gift of gratitude and advocacy. “If we want change to happen, we have to be a part of that change,” she said.
Gifts of $1,000 or more significantly impact the region and are the driving force behind heartwarming stories like Tuleah’s. Together, with recurring monthly gifts of $25, $50 or $100, we are creating lasting solutions for Central Minnesota. Make your gift today using the enclosed envelope or give online at ifound.org/give.
Contact a member of our team today to discuss detailed giving options or year-end donation strategies.
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Family with deep Wadena roots models the way for giving at a time of great generational wealth transfer
By Kevin Allenspach | Photography by John Linn
Don Bottemiller can trace his deep-seated commitment to generosity to a simple yet pivotal moment inspired by his parents.
As a recently married young father with another child on the way, Bottemiller was visiting his mom and dad one afternoon and happened to glimpse the check his mother was writing for their weekly Immanuel Lutheran Church offering in Wadena. “It was way more than I ever thought it should be,” he said. “I might have been putting in a dollar or two a week.”
Bottemiller’s budget for his young and growing family was tight. After observing his parents’ generosity, though, he made a decision that has influenced his spirit of giving to this day. “I thought, ‘I can’t give what they’re giving, but what I can do is give 10 percent of my pay increases.’ I’ve basically followed that [ever since], and it really started my interest in philanthropy.”
For decades, Bottemiller has managed a private fund benefiting the Wadena area. In 2023, to streamline operations and access professional assistance, he endowed the fund to the Initiative Foundation. Named the Bottemiller Family Fund, its focus is to fund scholarships for Wadena-area high school graduates and to support local arts and history in his hometown. Together with his children and grandchildren, they make decisions on where grants should be awarded.
Bottemiller’s decision to align with the Initiative Foundation comes at an unprecedented time. According to a study by the University of Minnesota Extension and its Department of Community Development, the next 10 years marks the leading edge of the greatest transfer of wealth in history. It comes as baby boomers, flush with their own inherited and
accumulated wealth, decide on the legacy they’d like to leave behind. The study—an analysis based on assets such as homes, businesses and investments—found that $5.6 billion in Central Minnesota wealth will transfer during the next decade. That number rises to $36.7 billion over the next 50 years.
Keeping just 5 percent of the 10-year transfer of wealth by aligning with organizations like the Initiative Foundation would result in nearly $280 million in new endowments and gifts, said study co-author Ben Winchester, a rural sociologist with University of Minnesota Extension and its Department of Community Development. “Over 20 years, this endowment could support grantmaking of nearly $335 million.”
Bottemiller grew up in the shadow of World War II. While attending Wadena high school in the 1950s, he worked for Homecrest— an indoor-outdoor patio furniture company started in 1953 by his father and an uncle.
After earning a degree from St. Olaf College and attending graduate school, he served in the Air Force and worked two years at Control Data Corporation. He returned home and rejoined the family business in 1966, and his career took off. Bottemiller climbed from purchasing agent and shipping supervisor to plant engineer, where he supervised building expansions that led Homecrest to employ hundreds of local workers.
In 1973, the family sold the business to Sperry & Hutchinson (S&H). Bottemiller remained as chief executive. While attending a company dinner atop the Pan Am Building in New York, he experienced yet another epiphany about his own generosity when he met William Sperry Beinecke, whose great uncle founded S&H in 1896, and his wife, Betty.
ALL IN THE FAMILY:
invited his children and grandchildren to join in the decision-making process on where to award grants from the Bottemiller Family Fund.
Philanthropy was part of S&H’s core values, and the Beineckes had just given a major gift to Yale University to fund a rare book library. “We were having an afterdinner conversation, and Betty looked across the table and said, ‘Hey, Don. What’s your philosophy on philanthropy?’ Everybody went silent. I gulped and stammered something, including the story about my mother writing that check. I got through my answer, but I decided maybe this is something that needs a little better definition.”
Not long after, Bottemiller was able to reclaim ownership of Homecrest. One of his first moves was to create a stand-alone 501(c)(3) nonprofit foundation to award college scholarships and to support activities benefitting the Wadena area.
As global competition increased, times got tight for Homecrest. The business was briefly shuttered, but in 2008 Bottemiller helped to recruit a new buyer and became a minority shareholder in a separate entity. The assets of the foundation, however, continued to grow and produce earnings that were used to make local grants. Bottemiller’s children, Sharon Trahan and Mark Bottemiller, eventually took over as director and secretary/ treasurer around the time the fund was endowed with the Initiative Foundation.
The transfer of wealth potential across Central Minnesota is noteworthy: $5.6 billion over the next decade. Across all 87 Minnesota counties, that number jumps to $78 billion—a sum that would generate almost $4 billion
in new endowments if just 5 percent was directed to philanthropic purposes.
“The opportunity that Minnesota has coming is for local communities—especially rural ones, because we know from the study that this wealth is not concentrated in the Twin Cities metro area,” said Susie Brown, president of the Minnesota Council on Foundations. “People who have lived and raised their families here, got their education here, perhaps farmed or built their businesses, and have been a part of our communities, now have the chance to think about where to invest the fruits of all that labor.”
Philanthropic experts see great potential to make inroads to support childcare, economic development, education, health care, workforce housing and other community needs that can’t or won’t be addressed by federal, state and local government funding.
Paul Grassmann, an attorney specializing in estate planning with Tennessee-based Thompson & Associates, is an Initiative Foundation partner who meets with local people who want to explore their philanthropic interests. One day each month, in a service provided for free by the Initiative Foundation that might otherwise cost thousands, Grassmann engages with families and individuals who might want to transition ownership of a business, save on taxes, or channel wealth to heirs while also giving back to the organizations and communities that matter to them. He listens to their wishes and responds with possibilities they can take back to their lawyers and financial consultants for consideration.
“The work I do is more about the ‘why’
of people’s giving,” Grassmann said. “I have clients who will say, ‘Paul, I can do anything I want. I can leave so much to my children that they wouldn’t have to work another day. But if all I do is transfer my wealth and not my values, I have failed my children.’ Giving back and supporting your neighbor is important to them, just as it was to their parents, and their parents before that.”
Some donors support churches or local schools. Others create charitable funds as a seed for their families to follow and nurture. Corporate donor-advised funds can be a tool for employees to help channel a company’s philanthropic principles. Still others simply want to leave a legacy. The paths are many and varied.
“I recently met with family members who had sold their grandfather’s business,” Grassmann said. “It was life changing. They became the first generation to really experience wealth. As children, they could remember growing up where it was a luxury to be able to go out for fast food. But now it was also important to them that they knew the values that drove their grandfather and that company to success. It was fun seeing these grandchildren throw out stories about their grandfather and how they related his experience to staying involved in the community where he was from.
“People are being intentional, and there’s been a generational shift, too, in the sense that money went from being this taboo subject that nobody talked about to now being
Almost $78 billion will transfer in Minnesota alone within the next decade. If even 5% of that were captured for philanthropic purposes, it would generate almost $4 billion in new endowments.
During the next 10 years, an estimated $5.6 billion in personally held Central Minnesota wealth will transfer from one generation to the next. Over the next 50 years? It’s $36.7 billion.
“A lot of what we’re looking at is: where wealth is held and by whom,” said Ben Winchester, a rural sociologist with University of Minnesota Extension and its Department of Community Development. Winchester is co-author of a deep-dive transfer-of-wealth study published in April. “Never before have three-quarters of homeowners been baby boomers and older, so a lot of this wealth is in rural Minnesota.”
Rural communities have twice the population of people 65 and older than urban communities do, Winchester said. “That means all this wealth is going to turn over in the next 10 years. Then there will be a little lull and, once Millennials get to the same stage, the transfer of wealth will pick up again.”
THE REGION HAS ASSETS: Central Minnesota has a current household net worth of $212 billion. Communities regularly struggle to overcome the perception that they lack the means and the ability to make a lasting change for the better. Simply understanding the scale of Central Minnesota’s net worth can help to dispel the low- to no-resource perception and lead community members to dream more fully about what might be possible.
THE 5 PERCENT DIFFERENCE: If just 5 percent of the 10-year transfer of wealth were directed to philanthropy, Central Minnesota could support nearly $335 million in local grantmaking over the next 20 years.
“That would create significant additional funding for local nonprofits, our community safety nets, and for recreation, food shelves, crisis centers, childcare solutions and other critical community needs,” said Carl Newbanks, vice president for philanthropy at the Initiative Foundation. “As traditional sources of local funding come under increasing pressure, local generosity and planned giving can be a solution and a means to direct benefits to the place you call home.”
BILLION BILLION $212 $5.6 MILLION $335
Central Minnesota has a current household net worth of $212 billion
More than $5.6 billion will transfer from one Central Minnesota generation to the next by 2030
If just 5 percent of the transfer of wealth were directed to philanthropy, Central Minnesota could support nearly $335 million in local grantmaking over the next 20 years.
“ Givi ng back and supporting your neighbor was something that was important to them, just as it was to their parents, and their parents before that.”
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something where you should have advisors and others working with you and be diligent about communicating intentions with your heirs—even if you don’t talk about the dollar amounts themselves.”
Now 85, Don Bottemiller doesn’t get to Wadena much anymore. In retirement, he splits his time between a home on Gull Lake near Nisswa and a residence in Minneapolis. His son Mark, who could be found on the Homecrest shop floor not long after he learned to walk, returned to Minnesota this spring after an absence of nearly 20 years to become the company’s vice president of sales. Don’s daughter and her husband, Ted Trahan, live in St. Paul and have two adult children—Greg, 29, and Käthe (pronounced Kayta), 26—who have already signed on to be future advisors to the family fund.
“I think you can learn an appreciation for the joy of giving,” Sharon Trahan said. “You do it by rote when you’re little—it felt like duty to me, to be honest. But then you get involved with something and you’re like, ‘Oh, this is actually really cool.’ Money follows action, and those actions are important. When your skill set meets a problem, that’s where the joy comes in.”
She said the greatest value the Initiative Foundation brings is providing a steward to handle compliance with the IRS, reporting, and verification that funds are used properly. Donors simply focus on the fun: figuring out what causes to support and making grants. It’s also important that the funding remains permanent and yet flexible into the future.
“Someday we’ll be able to address the different priorities I have, and that my brother has, and that my children will have,” Trahan said. “They know someday they might have to sign some papers, but it’s not going to encompass their life—unless they want it to. We spent quite a bit of time with dad talking about values and reasons, and they’re comfortable with it as much as we can see what the future holds. Eventually they’ll foster their own passions and hopefully put this money where it can do some good.”
Don Bottemiller further has designated a portion of his estate that will go to the family fund after his death, perhaps doubling its value.
“There’s definitely a philosophy of sharing the wealth,” he said. I want to make the world a better place, and this is how I can address a small part of it.”
When you partner with the Initiative Foundation and leave just 5 percent of your wealth, you’re securing your legacy and investing in your community’s future.
To explore making charitable giving part of your transfer of wealth, contact Carl Newbanks, Initiative Foundation vice president of philanthropy. Reach him at cnewbanks@ifound.org or (320) 631-2042.
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Six recognized for building businesses while meeting local community needs
By Lisa Meyers McClintick | Photography by John Linn and Mohamed Jama
The sound of fast dance beats and cheers for energetic dancers mingled with the aroma of curries and soul food and the warmth of camaraderie during the Initiative Foundation’s Emerging Entrepreneur Showcase and Awards.
The June 25 event at The Clearing in Sauk Rapids featured dozens of entrepreneurs who have graduated from Enterprise Academy, an Initiative Foundation program that assists people from underserved communities and provides wrap-around services as they build their business. The event recognized six stand-out business owners for their achievements.
“These entrepreneurs often find an unserved need within their communities, such as culturally appropriate food and fashion, affordable transportation or creatively nurturing children who don’t have a lot of economic resources,” said Donniel Robinson, entrepreneurship programs manager at the Initiative Foundation. “We support them as they knit together a small business community and lift each other up.”
A variety of experts help Enterprise Academy participants fine-tune a business plan, navigate licensing and bookkeeping and launch a new business or strengthen an existing small business. Participants also build a support network through peers in each cohort and can apply for loans.
Since its launch in 2018, Enterprise Academy has graduated some 250 students, primarily in the Long Prairie (Spanish-language classes), Mille Lacs Tribal Economy (Onamia) and St. Cloud areas. The program has provided more than 6,000 hours of classroom training and 1,700-plus hours of one-on-one coaching.
“More than 60 percent of our graduates have followed through to start a business,” Robinson said. “That’s compared to the national average of 20 to 25 percent for startup entrepreneurs who have received some form of training. We are proud of them and their efforts.”
Here’s a look at the 2024 Emerging Entrepreneur award winners.
A CHANCE TO DANCE: Awardee Sahara Gibson, owner of Area 56
wants to bring the joy of movement to some of the St.
area’s most underprivileged neighborhoods.
Did you know a required minimum distribution (RMD) can be directed to the Initiative Foundation or one of its hosted charitable funds? Turning your RMD into a charitable contribution is a simple, seamless way to ...
• fulfill your annual distribution requirements
• support meaningful local initiatives that matter
• enjoy significant tax benefits
and value of donating all or a portion of your
Your Region. Your Initiative. Your Foundation.
The generosity of Community Builders Circle members unlocks the power of local leadership, nonprofits, small businesses and emerging entrepreneurs. Thank you for your annual contributions that help to make Central Minnesota an exceptional place to live, work and raise a family.
$10,000+
• East Central Energy
• Granite Partners Foundation of Minnesota, Inc.
• Sourcewell
• Stearns Bank, NA
$5,000+
• Anderson Brothers Construction Company
• Bremer Bank
• Compeer Financial
• Connexus Energy
• Falcon National Bank
• Schlagel, Inc.
• St. Cloud Hospital / CentraCare Health System
• Stearns Electric Association
• U.S. Bank
$2,000+
• American Heritage National Bank
• American National Bank of Minnesota
• Arvig Communication Systems
• Bush Foundation
• Central McGowan
• CliftonLarsonAllen, LLP, Northern Minnesota
• Clow Stamping Company
• Consolidated Telecommunications Company
• Crow Wing Power
• Farmers & Merchants State Bank Charitable Fund of the Central Minnesota Community Foundation
• First National Bank of Milaca
• Frandsen Bank & Trust
• IPEX, Inc.
• Long Prairie Packing Company
• McDowall Company
• Microbiologics, Inc.
• Minnwest Bank
• Rotochopper
• Sherburne State Banks & Sentry Banks
$1,000+
• Buffalo Hospital on behalf of Allina Health System
• BankVista
• Benefit Innovations
• Brenny Transportation
• Cambridge Medical Center on behalf of Allina Health System
• Citizens State Bank of Waverly
• First Bank & Trust
• First National Bank North
• First State Bank of Wyoming
• First Western Bank & Trust
• Frandsen Bank & Trust
• Harvest Bank
• Hunt Utilities Group, LLC
• Kensington Bank
• Magnifi Financial
• Marco Technologies, LLC
(877) 632-9255 | ifound.org
405 First Street SE, Little Falls, MN 56345
• Midwest Security and Fire
• MINPACK, Inc.
• Monroy Law Office, PLLC
• NOR-SON Builders
• NOR-SON Construction
• Park Industries, Inc.
• Pequot Tool & MFG., Inc.
• Pine Country Bank
• RiverWood Banks
• Schlenner Wenner & Co.
• The Bank of Elk River
• Todd-Wadena Electric Cooperative
• Wadena State Bank
• Western Bank of Cass Lake
• West Central Telephone Association
• WiDSETH
$2,000+
• John E. Babcock
• Rick and Helga Bauerly Foundation
• Don Hickman & Sandra Kaplan
• Tuleah Palmer
• John & Bonnie Schlagel
• Dorothy J. Simpson
• Bob and Carrie Willis
• Brian Voerding & Mollee Sheehan Voerding
• Diane Wojtanowicz
$1,000+
• Dick and Mimi Bitzan Family Fund of Central Minnesota Community Foundation
• Michael & Kathleen Burton
• Lynn & Darren Bushinger
• Linda Eich DesJardins & Joseph DesJardins
• David & Kim Ellingson
• Don & Deanna Engen
• Kathy & Neal Gaalswyk
• Lois Head
• Teri & Tom Hoggarth
• Jo & Larry Korf
• Robert & Susan Olson
• Robert Shadduck Family Fund of the Minneapolis Foundation
• Kimberly & Denise Slipy
• Rita & Everett Sobania
• Charlotte Stephens
• Maggie & Matt Varilek
• Dr. Robbyn Wacker & Jani Malkiewicz
• Kristi Westbrock & Mike Bjerkness
To make a pledge and join the Community Builders Circle, Contact Carl Newbanks (cnewbanks@ifound.org; 320-631-2042) or Mike Burton (mburton@ifound.org; 320-631-2059), or visit ifound.org/give to give online.
Keeping up with artist Sarah Drake’s many endeavors can be dizzying, but they all overlap with themes of art, social justice, clean water and helping young people of color succeed both near her home in Sauk Rapids or as far away as the village of Tiébélé in Burkina Faso.
Drake has proven how one person—a single parent with chronic health struggles— can make a big difference with initiative, persistence and creativity.
Her connection to Burkina Faso began with a dream she had about black-and-white geometric patterns in the 2010s. Online research revealed the patterns were folk art specific to the village of Tiébélé. The local women would paint the patterns on mud huts. Drake felt an immediate connection when she was able to visit the village and the women, but she also saw the deep need for clean and safe water sources.
She created her nonprofit, herARTS in Action, to help. Through fundraisers, sales of jewelry, and a trio of children’s books she wrote about a little girl in Burkina Faso and illustrated with paper collage, she’s been able to fund water wells in two different villages. The wells serve about 17,000 people. The books blend lessons in colors, ABCs and numbers with cultural stories from Burkina Faso.
The pandemic and civil unrest have made it difficult for Drake to get back to Burkina Faso, but she continues to collect school supplies, solar lanterns, mosquito nets and other basic items to support about 30 village girls who need to attend school.
Drake, whose biracial daughter is now attending college, often can be found in area schools and neighborhoods, working to make art experiences more equitable. She’ll help students work on Black history and projects for Martin Luther King Jr. Day, introduce them to Black artists, and do summer programs such as painting Black mermaids or a giant octopus around city stormwater drains to remind residents to keep stormwater areas free of debris that can wash into the Mississippi River and other waterways.
She nurtures kids who are quiet or don’t think they have talent and helps them tap
their own heritage and identity by finding their voice through art. She also brings empathy for facing obstacles. Her preference for paper collage came from needing a gentle medium as she deals with chronic pain with fibromyalgia, arthritis, spinal stenosis and neural processing issues after an injury.
“Art is such a therapeutic way to heal,” she said. “My work is rooted in social justice and community. My work wouldn’t be needed if everybody in the community was honored and celebrated and had what they needed.”
Go to herartsinaction.org for more information.
With displays of elegant abayahs (long loose dresses), silky hijabs with vibrant patterns, stylish shoes, purses and bold sunglasses, Asha’s Beauty brings together clothing and accessories that appeal to women who seek modern, upscale fashion while following the modest expectations of their cultures and religion.
“My biggest accomplishment, especially as a Somali immigrant, is getting into Crossroads Mall,” said Fatuma Yasin, who started Asha’s Beauty with her mother about six years ago.
It hasn’t been an easy road, especially with her mom now living in the Twin Cities and while having three children at home, but she broke new ground as the first Somaliowned boutique in the region’s largest shopping center.
“My customers were always traveling to the Twin Cities for clothing,” Yasin said. Now she has customers from St. Cloud, Willmar, and even the Twin Cities who come to Crossroads to shop at her store for professional and special-occasion clothing or a fresh accessory.
Going through the Enterprise Academy helped her gain business skills to expand her customer base. It also boosted her own confidence as a business owner and helped her to connect with other small business owners in the community.
“Never give up,” she advised anyone else with a business dream. “Keep going and strive for bigger and better.”
The silky fringes on the Bratz Dance Team’s neon costumes swirl and sway as the young dancers pop their hips, kick, do the splits, somersault and flip to whoops of admiration.
“I was inspired by being a dancer as a child,” said choreographer Sahara Gibson, who wanted to bring the joy of movement to some of St. Cloud’s most underprivileged neighborhoods when she started her Area 56 Dance Studio in 2022.
“We want people from all walks of life,” Gibson said. To keep costs down and involvement accessible, she sews the costumes herself and will often transport kids to and from practice. She skips the heavy makeup often used in dance competitions and has relied on older dancers and the local group Too Much Talent to braid dancers’ hair before a show or competition.
“We work with our own natural beauty,” Gibson said.
She’s seen kids who were shy and knew nothing about dance become someone who thinks about it non-stop and who cannot wait for the next performance or contest. The troupe has already brought home several dance trophies and they dream of adding more in the years to come.
“All of [the dancers] are coming out of their shells,” she said.
Jamya Jackson, 12, dances with the group and enjoys learning new moves and being a role model for younger dancers. “It feels like a big happy family,” Jackson said. “It’s fun, and you get to express all of your emotions on the dance floor.”
For more information, go to Facebook and search “Bratz Dance Team.”
For St. Cloud’s Somali population, a step inside Hussein Farah’s Thirty-Third Meat & Grocery and Horseed Deli at 710 33rd Ave. N. is filled with the scents and sights of comfort: stuffed and crispy deep-fried sambusa, anjero (a lightly fermented griddled bread) used to scoop up chicken or beef suquaar (small pieces of meat sauteed with vegetables), or sweet, spiced tea.
It serves its north St. Cloud neighborhood much like the neighborhood grocers that used to dot St. Cloud before big retailers took over.
The growing number of East African residents, however, didn’t always find what they wanted on chain-store shelves or wanted a store that was comfortable to walk to and to find familiar foods and services.
Farah’s store began about 10 years ago with groceries such as halal meat (which is processed according to religious customs), along with rice, pasta and general dry goods. He also provides money remittance services.
“My business is designed to meet people’s needs,” he said. “I made it convenient for them to shop here.”
Farah graduated from the Enterprise Academy during fall 2018 and, with the support of a culturally compliant Initiative Foundation microloan, was able to add his deli in 2019. The addition of the deli opens up catering opportunities as Farah expands his business—one of a growing number of small ethnic grocers and restaurants in the St. Cloud area.
“The nature of business is not predictable,” Farah said. “Sometimes it is slow and sometimes high, and I’m aiming to be in a better position soon.”
“My business is designed to meet people’s needs. I made it convenient for them to shop here.”
Small business support at the Initiative Foundation goes beyond just providing capital. We also offer a range of services, including entrepreneurial programming through our Enterprise Academy and Initiators Fellowship programs, and an array of supplemental training opportunities. Support can come in many forms for everything from crafting a business plan to basic bookkeeping or marketing guidance.
The Foundation and local experts provide one-on-one guidance on a variety of topics: financial planning and compliance; business structures and contracts; leasing and buying land and buildings; marketing and sales; and legal compliance.
Initiative Foundation business training and workshops are shaped by local feedback. From building basic business credit to bookkeeping and marketing, the Foundation enlists experts in their fields to offer free or small-fee workshops.
The Initiative Foundation offers a free online platform with ample resources to help entrepreneurs grow their businesses. Called Initiate Prosperity, this self-paced learning platform provides around-theclock access to calculators, templates, video tutorials and guides in English and Spanish where entrepreneurs can polish their marketing skills, learn management strategies, or zero in on cash-flow strategies.
The Initiators Fellowship is Greater Minnesota’s premier fellowship for emerging and aspiring social entrepreneurs. The twoyear program helps social entrepreneurs build their business and leadership capacity and provides wrap-around training, mentoring and guidance—plus $30,000 annually for two years—to support Fellows and their social enterprise ideas. It serves four Minnesota Initiative Foundation regions—Initiative Foundation, Northwest Minnesota Foundation, Southwest Initiative Foundation and West Central
Initiative—with a goal of expanding to all 80 Greater Minnesota counties. The Initiators Fellowship will begin recruiting for 2026-2027 Fellows during spring 2025.
Visit fellows.greaterminnesota.net for details.
Enterprise Academy is the singlelargest early-stage entrepreneur training program in Central Minnesota. At the heart of the program is a 12-week business course that provides training and individualized advising to help underserved entrepreneurs start and grow small businesses. The expertly taught classes lead students through basic business principles and helps them start—and ultimately finish—a business plan. Graduates receive ongoing technical support and can also apply for market-rate microloans through the Initiative Foundation. A youth Enterprise Academy also is being piloted in the St. Cloud area to inspire young entrepreneurs.
Community Development Financial Institutions (CDFIs) like the Initiative Foundation are specialized entities that provide financial services to underserved communities. When lenders operate as CDFIs certified by the U.S. Department of Treasury, they serve their communities in several impactful ways:
Small Business Support: CDFIs provide loans and other financial products to small businesses, especially those in low-income areas. Lending initiatives help businesses in overlooked communities manage cash flow, expand operations, and sustain employment.
Job Creation and Retention: By supporting local projects, CDFI lenders contribute to job creation and retention—a particularly important role in areas with limited economic opportunities and high unemployment.
Economic Inclusion: CDFIs prioritize lending to underserved and overlooked entrepreneurs to advance inclusion and to empower those who have operated in the margins.
Flexible and Patient Capital: CDFIs take higher risks and offer more lenient terms, making them a critical resource for projects that might otherwise not secure financing.
While low-interest, flexible loans are a critical tool in the CDFI toolbox, CDFIs provide a broad range of investments across different forms of capital to support small businesses, economic growth, and community development. Forms of capital include:
Financial: Delivering loans, investments, grants and other dollars to businesses that otherwise struggle to access financial products.
Knowledge: Classroom learning through workshops and cohort programs that provides core education on starting and running a businesses.
Skill: One-on-one and group coaching and training to develop hands-on skills and learning for specific business types.
Social: Connections and access to networks and relationships that provide critical resources at the right time.
Cultural: Identifying and utilizing culturally specific practices as unique assets for success.
Advocacy: Championing policies, securing funding, and navigating regulations on behalf of entrepreneurs and communities.
Charles Owusu
Ibrahim Soumare
he expert resources provided us with mentorship and guidance that really helped us in our journey to where we’re at today.”
When St. Cloud State University professor Ibrahim Soumare needed frequent rides to the Minneapolis-St. Paul International Airport for work, he yearned for a more affordable, convenient option that didn’t involve long waits for a shuttle service.
“I’m pretty sure there are other people who are also frustrated,” he said at the time. “Perhaps we need an additional
Soumare partnered with Charles Owusu, who has a master’s degree from the University of the West of Scotland, and had started a thriving facilities maintenance business. Together, they worked on a business plan for a new shuttle service named Yenko, which means “Let’s Go” in the Akan language family of West Africa.
While attending a spring 2023 Enterprise Academy class, Soumare and Owusu created a website, put together pricing, planned pickup and drop-off locations, and figured out licenses, permits, and insurance.
“As an African immigrant here in the United States, it’s never easy to be an entrepreneur,” Soumare said. “We have a lot of barriers, such as access to information and access to resources.”
With support from an Initiative Foundation microloan, the duo invested in their first van in 2024 and began to offer shuttle rides between St. Cloud and MinneapolisSt. Paul International Airport. They’ve since expanded their service to residents in Alexandria, Little Falls, Monticello and Rogers, with plans to keep growing.
“The expert resources [with the Enterprise Academy] provided us with mentorship and guidance that really helped us in our journey to where we’re at today,” said Owusu.
More information can be found at yenkodrives.com
The centerpiece of Enterprise Academy is a 12-week business training program offered by culturally competent trainers serving diverse entrepreneurs in St. Cloud, Long Prairie, and the Mille Lacs tribal economy. Classes are offered in spring and fall.
Visit ifound.org/business-services/enterprise-academy to learn more.
Baby's on Broadway, Little Falls
Backroad Meats, Milaca
BT Diesel Performance & Repair, Rice
Cold Spring Dental Arts, Cold Spring
Credent Care, St. Cloud*
Happy Tails Daycare & Boarding, Ironton
Integrity Auto Glass, Little Falls
Iron Horse Trading Co., Albany
Jupiter Moon Ice Cream, St. Joseph
Lakeside Center, Pine City
Libertas Family Medicine PC, Little Falls*
Loscheider Helicopter, Inc., Wadena
Lucky Charms Childcare and Preschool, Maple Lake
McPete’s Sports Bar & Lanes, Big Lake
Middleville Crafts, South Haven
Milaca Meats, Milaca
MM Basketball Training, St. Cloud
Mogadishu Meat & Grocery, St. Cloud*
Northern Hollow Winery, Foley
Northern Oaks Events, Sauk Rapids
Nourish Now, St. Cloud
Rainbow Hair Hats, Verndale
Royalty Care, Inc., St. Cloud*
Sunken Ship Brewery, Princeton
TB Industries, Inc., Ostego
Thunderstruck Exteriors, Elk River
Viva Tobacco & More, Long Prairie*
To learn more about the Initiative Foundation’s lending program, or to see if your project is a fit, visit ifound.org and select “Business Services” in the navigation.
With a special IRS designation that recognizes lending as a charitable purpose to alleviate poverty and create quality jobs, Initiative Foundation loans are contributing to a diversified economy in Central Minnesota. The Initiative Foundation is certified by the U.S. Department of the Treasury as a Community Development Financial Institution. Loans signified by an asterisk (*) are supported by the Impact Fund, a wholly owned subsidiary of the Initiative Foundation. Learn more at cdfifund.gov.
By Andy Steiner / Photography by John Linn
For families living at or below the poverty line,
purchasing baby basics like diapers and wipes can compete with other immediate needs.
As executive director of the Remer-based Northland Area Family Service Center (NAFSC), Leslie Bouchonville sees the need on a daily basis. “Most of the families we serve really struggle to make ends meet,” she said. The nonprofit provides preschool, parent education and other services for families in the Northland Community School District (including Outing, Remer, Longville, Boy River and Federal Dam) and parts of the Leech Lake Native nation where 20 percent of households make less than $20,000 and 12 percent live below the poverty line.
Some clients report having to ration diapers to make their supply last. “When families can’t afford diapers, we see more illness and infection because kids are getting diaper rash,” said Bouchonville, whose organization became a Diaper Bank Minnesota regional distribution site in early 2024. “Having
access to free diapers takes a little of the stress away.”
Each quarter, beginning in April 2024, the nonprofit gets a delivery of 25,000 diapers in various sizes. It’s up to Bouchonville and her small staff to store, organize and distribute the diapers to families in need. Their efforts were buoyed this summer when Northland Area Family Service Center received a $25,000 grant from the Initiative Foundation to support the diaper bank program. The money, part of a $3 million award from the St. Paul-based Otto Bremer Trust (OBT) and its Community Responsive Fund, was distributed across 80 Greater Minnesota counties served by the Minnesota Initiative Foundations.
“Bringing resources like this into the region is one of our superpowers,” said Brian Voerding, president of the Initiative Foundation, which administered the OBT grant on behalf of its five Minnesota Initiative Foundation sister organizations. “It’s an innovative way for us to work alongside the Trust to accomplish our shared mission of deepening the success of nonprofits—both in our region and across Greater Minnesota. The Trust chose us because we live here. We work here. We know our nonprofits, and we’re primed to help people and have the greatest impact.”
COORDINATED CARE: Linda Leverty, Northland Area Family Service Center administrative manager, helps to organize and manage the 25,000 diapers the organization receives each quarter.
With the creation of its Community Responsive Fund in late 2023, the Otto Bremer Trust initiated a partner-based approach to delivering meaningful grants across its service area of Minnesota, Wisconsin, North and South Dakota, and Montana. Working with intermediaries like the Initiative Foundation, which serves 14 counties and parts of the Leech Lake and Mille Lacs Bands of Ojibwe, strengthens OBT’s mission and outreach, said Frank Miley, co-CEO and trustee.
“The Trust’s mission has always been to provide funding to organizations and programs that effectively address challenges and opportunities in the local community,” he said. “And what better way to have a deeper understanding of where those challenges are than to work with the Minnesota Initiative Foundations, which are fully integrated into the community and regions we serve. We look forward to working closely together to increase our impact.”
Bouchonville is a proponent of local foundations partnering with larger regional funders to direct significant awards to smaller organizations like the Northland Area Family Service Center. “This partnership has the potential to make a huge difference for small nonprofits like ours,” she said. “It’s a great idea and a really good partnership.”
Once it secured its status as a regional distribution site for Diaper Bank Minnesota, the reality of the work got serious. With each quarterly delivery, staff members have to store, organize and distribute the new nappies. Staff and volunteers also are required to collect detailed demographic data on all diaper recipients and must complete and file a monthly report.
The financial support that came along with establishing the nonprofit as a diaper hub didn’t include operational resources, Bouchonville said. “It was just diapers. It takes staff time to handle this project.” When she learned about the Initiative
Foundation’s Community Response Fund partnership with OBT, Bouchonville thought it made perfect sense to apply. The grant, part of $750,000 distributed in Central Minnesota, could help pay for additional staff time—and help upgrade the organization’s technology to accurately track diaper distributions.
“We are going to update the computer and figure out the best way to collect and record the data,” she said. “This grant is significant to us. It will help us out a lot.”
Leaders across the family of Minnesota Initiative Foundations were excited to showcase their connections for the Otto Bremer Trust collaboration. Karen White, president and CEO of the Northwest Minnesota Foundation, said she and her staff have deep knowledge about effective community organizations that might otherwise be overlooked by outside funders.
“We know the nonprofits that are serving the needs of our area,” she said. “We are able to get the word out quickly to the right places.”
One Northwest Minnesota recipient is Marshall County Group Homes, a small housing support program for adults with intellectual disabilities based in Argyle, about 40 minutes northeast of Grand Forks. “People from the Twin Cities might not know about that organization,” she said. “But we do. And we were able to help them secure a grant.”
Local knowledge is essential to maximizing a collaborative process like the Community Responsive Fund grant round, said Scott Marquardt, president of Southwest Initiative Foundation.
“We can reach very deep into the community,” he said. “We know who the nonprofit leaders are, who the community leaders are, who are the gatekeepers to populations that the Otto Bremer Trust might not be able to reach. By teaming up on this project, we’ve been able to get the money to the right people. It’s been incredibly satisfying.”
The Longville Area Food Shelf extends the diaper hub’s reach by making baby-care items available to clients. Pictured are Andrea Richard, executive director for the food shelf, and Kit Arnquist, Northland Area Family Service Center board member and food shelf volunteer.
In addition to the Northland Area Family Service Center in Remer, 18 other Central Minnesota nonprofits received Community Responsive Fund grants:
• Relationship Safety Alliance, Brainerd: $75,000 to support those escaping domestic violence situations. (Cass, Crow Wing, Morrison, Todd and Wadena counties)
• Pearl Crisis Center, Milaca: $73,000 to support those experiencing domestic violence and sexual assault. Pearl Crisis Center provides direct service, prevention and community awareness. (Mille Lacs County and Mille Lacs Band of Ojibwe)
• Oasis Central Minnesota, Little Falls: $60,000 to help those experiencing homelessness by providing emergency shelter and a potential pathway to permanent housing. The organization also provides housing support to those on the verge of homelessness. (Morrison County)
• Recovery Community Network, St. Cloud: $60,000 to provide peer support, education, advocacy and prevention strategies to reduce the impact of substance use disorder and improve health and wellbeing. (Benton, Crow Wing, Mille Lacs, Morrison, Pine, Sherburne, Stearns and Wright counties and the Mille Lacs Band of Ojibwe)
• Feeding Area Children Together, St. Cloud: $50,000 to support a weekend food gap program for students facing food insecurity. (Benton, Sherburne, Stearns and Wright counties)
• PHASE-Industries, Sandstone: $50,000 to support adults with developmental and physical disabilities. The funding will be used to hire more staff to serve clients who want to explore work and obtain and retain employment. (Chisago, Isanti, Kanabec, Mille Lacs and Pine counties)
• YES Network, St. Cloud: $50,000 to respond to the youth mental health crisis by providing community-based afterschool and summer health and wellness programming. (Benton and Sherburne counties)
• Central Minnesota Habitat for Humanity, St. Cloud: $45,000 to put low-income families on a path to homeownership while focusing resources to serve those who have experienced generational barriers. (Benton, Sherburne, Stearns and Wright counties)
• New Pathways, Inc., Cambridge: $45,000 to provide shelter and support to families with children experiencing homelessness and put them on a path to permanent housing. (Chisago, Kanabec, Isanti, Mille Lacs counties and Mille Lacs Band of Ojibwe)
• Central Minnesota Dementia Community Action Network, St. Cloud: $41,000 to support dementia-informed counseling for patients, families and caregivers while navigating the effects of dementia. (Benton, Sherburne, Stearns and Wadena counties)
• Wright County Community Action, Maple Lake: $40,000 to expand services to support independent living for low-income older adults. (Wright County)
• Tusen Tack, Braham: $34,000 to support community assetbuilding through the Braham Event Center. In 2023, Tusen Tack hosted more than 300 events at the center and offered free or discounted access to nonprofit organizations. The event center also hosts a food shelf, library and community meals. (Chisago, Isanti, Pine counties and the Mille Lacs Band of Ojibwe)
• North Star Family Advocacy Center, Braham: $30,000 to support children and vulnerable adults impacted by sexual abuse. The organization provides forensic interviews, family advocacy, trauma-informed mental health services and forensic medical exams. (Chisago, Isanti, Mille Lacs, Pine counties and the Mille Lacs Band of Ojibwe)
• Too Much Talent, St. Cloud: $25,000 to reduce disparities experienced by children and families of color. The funds will help the organization provide tutoring and community programming. (Benton and Stearns counties)
• Pine River-Backus Family Center, Pine River: $15,000 to provide local produce at the food shelf, which benefits local farmers and food shelf clients. (Cass and Crow Wing counties)
• Breath of Life Adult Day Service, Brainerd: $12,000 to provide dependent adults with activities and services while giving respite to their caregivers. These funds support scholarships for those who can’t afford the organization’s full slate of services. (Cass and Crow Wing counties)
• Verndale Family Life Church of the Assemblies of God, Verndale: $10,000 to support the organization’s community food shelf. In addition to food, the organization provides personal care items. (Cass, Morrison, Todd and Wadena counties)
• Crisis Line and Referral Service, Baxter: $10,000 to provide a listening ear, crisis mental health services, referrals and information. (Cass, Crow Wing, Morrison, Todd and Wadena counties and the Leech Lake and Mille Lacs Bands of Ojibwe)
More than 90 grants were distributed across all 80 Greater Minnesota counties. The Initiative Foundation’s share of the OBT Community Responsive Fund grant was $750,000. Other regions distributed the following: $400,000 to Southwest Initiative Foundation; $350,000 to West Central Initiative; $350,000 to Northwest Minnesota Foundation; $400,000 to Northland Foundation; and $750,000 to Southern Minnesota Initiative Foundation.
“Our Central Minnesota communities are desperate for workers. ... If potential workers can’t find housing or lack quality, affordable childcare, it’s next to impossible to attract or retain them.”
Communities across the region are in dire need of affordable workforce housing. The city of Sandstone is determined to make a difference.
By Gene Rebeck | Photography by John Linn
Folks around Sandstone call it “The Rock,” and it could soon be ready to roll as a renewed source of workforce housing.
Originally built in 1901, then rebuilt after a 1909 lightning strike, the school was the educational hub for generations of students until 2004 when a combined new school opened 10 minutes away in Finlayson. Constructed of sturdy sandstone harvested from nearby Kettle River quarries, the venerable old structure was named to the National Register of Historic Places in 1979.
“It’s such an iconic building,” said Kathy George, city administrator for Sandstone, which sits about 10 miles north of Hinckley on Interstate 35. “In a town the size of Sandstone, everything happened in that building.” When it was vacated, she said, “it was heartbreaking.”
As the building fell into disuse, and as its role in the community diminished, it fell prey to vandalism and decay. Already unappealing to developers due to the presence of lead paint and asbestos, it fell into further decline as windows were broken, water permeated the roof and leaked into the interior, and mold took hold. Pigeons roosted in its interior while rodents nested in walls and sodden insulation.
If all goes to plan, Sandstone School will be converted into 31 affordable apartments: two studios, 10 one-bedroom units, and 19 two-bedroom apartments. The project needs significant funding—and lots of renovation work—before it can welcome residents. Still, prospects for The Rock appear to be on a more solid footing than ever before.
In many respects, the story of The Rock reflects the complicated nature of workforce and affordable housing in Central Minnesota.
PEOPLE-POWERED POTENTIAL:
“THE MODEL WE HAVE IS BROKEN, AND SO WE NEED TO REASSESS HOW WE APPROACH HOUSING.”
– Derrick Miedaner, director of policy research and analytics for Flaherty & Hood
With high interest rates, rising insurance rates, a tight construction labor market and fluctuating and increasingly expensive materials costs—a simple 8-foot 2x4 costs up to 46 percent more than it did 10 years ago—it’s no simple matter to get low- and moderate-priced housing built in Greater Minnesota or elsewhere. Additional factors have made the challenge even more daunting.
“For years, researchers said there’d be no affordable housing shortage because baby boomers would sell their houses in large enough numbers,” said Don Hickman, vice president for community and workforce development at the Initiative Foundation. “It’s not happening.” There are myriad reasons, including a greater propensity for people to age in place, but other factors include historically high replacement home prices and mortgage rates that are more than double their all-time low of 2.65 percent reached in January 2021.
During the past few years, an acute shortage of workers has exacerbated the problem. It’s attributed to what demographers call a “trough,” where baby boomers are retiring faster than young workers are replacing them. “Our Central Minnesota communities are desperate for workers,” Hickman said. “In some places, we have two jobs for one worker. But if potential workers can’t find housing or lack quality, affordable childcare, it’s next to impossible to attract or retain them.”
Derrick Miedaner, director of policy research and analytics for Flaherty & Hood, a St. Paul-based legislative advocacy firm, has conducted extensive affordable and workforce housing research for the
League of Greater Minnesota Cities. The looming issue, he said, is that we’re less efficient in standing up homes than we’ve been in the recent past. Higher material costs, fewer construction workers and industry wage pressures have led to an increase in the cost per housing unit built. “The model we have is broken, and so we need to reassess how we approach housing,” he said.
The Sandstone School project serves as just one example of a new housing model. George said the city cycled through two decades of optimistic possibilities followed by dashed hopes. The city ultimately took ownership of the school building in 2018, hoping to rejuvenate efforts to save the aging structure. “Then, out of the blue,” George said, the city connected with Meghan Elliott.
The founder and principal of Jillpine, a Minneapolis-based historic building redevelopment firm, Elliott has years of experience preserving historic structures. Her background as a consultant and developer was crucial. “Historic buildings are very difficult to redevelop,” George said. “But they can make very good apartment buildings.”
The level of craftsmanship and the construction materials originally used for Sandstone School are hard to replicate, Elliott said. Since the 1970s, however, the federal government has offered tax incentives to repurpose historic buildings that “tend to be more expensive than equivalent new construction.”
The Sandstone School plans call for the original three-story structure and a 1962 two-story addition to be redeveloped. The school’s auditorium, built in 1936, will become home to the Sandstone History and Art Center. Non-historic additions have been demolished.
In 2023, Minnesota Housing, a state agency that funds low- and moderate-income residential projects, received $39 million from the Legislature to fund workforce housing projects with an emphasis on smaller communities. The city and its developer learned in September that they have been awarded nearly $4 million for the school project.
An early investor, the Initiative Foundation leaned in with a $10,000 site-planning grant that ultimately helped the city of Sandstone secure a $675,000 Minnesota Department of Employment and Economic Development (DEED) award. The Foundation followed with a $5,000 grant to help the city draft its Minnesota Housing application. A third grant of $10,000 helped the city explore geothermal as a heating and cooling source.
www.growbrainerdlakes.org
info@growbrainerdlakes.org | (218) 828-0096
finding
efforts
find.
refers to residential units that are economically accessible to individuals or families with low to moderate incomes. Typically, it means housing costs (rent or mortgage, including utilities) do not exceed 30 percent of a household's gross income.
refers to affordable housing options targeted at middle-income workers, such as teachers, police officers, and nurses, who earn too much to qualify for traditional affordable housing but struggle to afford market-rate housing. It aims to ensure that essential workers can live near their workplaces.
• Central Minnesota has the highest owner-cost-burden rate in the state, with one in five households spending more than 30 percent of their income on housing.
• Permits for single-family housing in the region decreased by 3 percent from 2022 to 2023, indicating a potential challenge in meeting housing demand.
• There is a scarcity of homes available for renters with extremely low incomes* in Central Minnesota.
Source: 2024 Minnesota Housing Partnership study: mhponline.org/state-of-the-states-housing-2024
*Households defined as extremely low income earn 30 percent of the area’s median income. According to the 2023 American Community Survey, the median household income in Central Minnesota is $71,306.
Repurposing The Rock has garnered additional support from the League of Minnesota Cities and the Pine County Housing and Redevelopment Authority. And, thanks in large part to Elliott’s experience, Sandstone won a grant from the Minnesota Historical Society to put a much-needed new roof on the school this summer.
Thus far, $1.5 million has been invested. “If the current roof remained for another two years, we probably would have lost the building,” George said.
Now, the Initiative Foundation stands ready with a loan of up to $500,000 to help bring the project to completion.
The Sandstone School renovation also has garnered support from the Mille Lacs Band of Ojibwe, which has built two affordable projects of its own. Still in need of workforce housing to support its Grand Casino operations in Hinckley, the band is exploring a management agreement to lease the Sandstone School units through Mille Lacs Corporate Ventures, its business management and development arm.
“The combination of Meghan and Mille Lacs Corporate Ventures opens a lot of doors for this project,” George said.
Construction is expected to begin in earnest during spring 2025 with project completion planned for summer 2026. The Minnesota Housing grant was the last big piece of the puzzle needed for this project to open up partnership financing, Elliott said.
“This grant makes this project feasible,” she said, noting that it will support local workers, their employers and future job growth. “This is an important project for the regional economy.”
With a population of just 300, Hackensack is home to Mann Lake Bee and Ag Supply—an anchor business that employs about 600 people. About one-third of those workers trek to the Hackensack headquarters every weekday. “Workers at Mann Lake come from 60 miles around, partly because the wages are so good, and partly because there’s no housing in Hackensack,” Hickman said.
Long plagued by a shortage of housing stock, and backed by a study that demonstrated need, the city of Hackensack in late 2023 purchased property for a project of its own. Working with the Central Minnesota Housing Partnership, a St. Augusta-based nonprofit that provides affordable housing services and management, a group of local leaders put together a plan for Woodland Corners, an apartment building with 30 one- and two-bedroom units. The project’s estimated cost is $7 million, with city supporters kicking in about $1 million and the state providing $2 million. Other funders include Mann Lake, the Blandin Foundation, and the Initiative Foundation.
The housing project has the potential to alleviate some major pinch points: The Hackensack housing study found that workers generally travel 40 miles to get their jobs. Land suitable for housing projects also is scarce, and even though there are 127 lakes within a 10-mile radius, lake home prices are cost-prohibitive for the average local worker.
Supporters were eager to land a Minnesota Housing grant at the end of September, but that award did not materialize. The team is now regrouping and vows to find a new way forward. “We are not deterred,” said Gary Dietrich, team lead of the Hackensack Affordable Housing Program, part of the local Hackensack Game Changers initiative dedicated to enhancing the city. “We have such a great need for housing in the Hackensack area, and we’re going to keep going to find a solution.”
1 2 3 4 5
1) A room full of Central Minnesota nonprofit leaders learned how to draft competitive grant proposals during an August grant-writing workshop in Sartell led by trainer Deneene Graham. The Foundation provides numerous training opportunities for nonprofits and small businesses. Learn more at ifound.org/trainings.
2) The Initiative Foundation welcomed members of the Target Foundation board of directors in May for a tour of the greater St. Cloud area. With an eye on rural vs. urban dynamics, the Target team learned about the region’s shifting demographics and deepened their understanding of the Foundation’s status as a certified Community Development Financial Institution (CDFI) and the role it plays in diversifying Central Minnesota’s economy.
3) Initiative Foundation staff brought the Engagement Tour to the Uncommon Loon in Chisago City in July. Tony Buttacavoli and Venus Griffin from Family Pathways discussed the impact of
Foundation grants on their work. Several other Foundation grantees and loan recipients shared testimonials.
4) Cows, cornfields and collaboration: The Initiators Fellowship held its annual Brain Trust in August at Redhead Creamery near Brooten. Co-owned by Fellowship alumna Alise Sjostrom, Redhead Creamery’s new event space provided the perfect backdrop where 2024-2025 Fellows from throughout Greater Minnesota could share their social enterprise challenges with an array of experts who helped them work toward solutions.
5) Initiative Foundation staff members (left to right) Brian Voerding, Doug Adams, Carl Newbanks, Allison Norgren and Brenda Gugglberger visited Sauk Centre in June to co-host the Sauk Centre Chamber’s Third Thursday Networking event. Staff members networked with friends new and old at the Lynx National Golf Course. Similar events have been held in Melrose and Pine River.
By Maria Surma Manka
by John Linn
In an era where nearly every movie ever made is just a click away, it seems unlikely that people would drive long distances to watch a movie under the night sky from their car. But that’s exactly what thousands of people do each year to visit the Long Drive-In Theater.
As one of only two continuously running drive-ins in Minnesota since the 1950s, the Long Drive-In has been a magnet for generations of movie lovers. Built in 1956 by Tillie Smith of Sauk Centre, the theater had several owners until it was purchased by Cliff and Laurel Meier in 1985. Both had worked at the drive-in throughout the 1970s—Cliff as a projectionist and Laurel at the box office—and both wanted the drive-in to continue.
In the mid-1980s, there were 10 drive-ins within 60 miles of Long Prairie, according to Cliff and Laurel’s daughter, Michelle Claseman. By the early 1990s, all were closed except Long Prairie. “My parents were determined and able to ride out the tough years until business picked back up,” she said.
Cliff passed away in 2008 and the business was too much for Laurel to manage on her own. The drive-in was a passion and an opportunity that Michelle and her husband Dan couldn’t pass up. “It didn’t take long to see why my parents loved it so much,” said Michelle
Today, moviegoers drive for hours to Long Prairie to experience the thrill of a drive-in. The Clasemans take that effort seriously.
“It’s our responsibility to present them with the best a drive-in has to offer,” said Michelle. “We have oldies music that welcomes them on to the lot, original 1956 car speakers, and lots of fun events. We embrace the movies and have fun with them whenever possible.”
• The Clasemans make movies an immersive experience. The showing of “Taylor Swift | The Eras Tour” included friendship bracelet-making stations that were a huge hit with the Swifties. A Barbie Pink Party had more than 90 percent of the audience dressed in pink for the opening weekend. “We had Barbies and Kens all over!” said Michelle. “That was a down year until Barbie and Taylor Swift came along and saved our entire season.”
• The annual Classic Car Cruise in August is one of Michelle’s favorite events. A scene straight out of the 1950s, classic car owners shine up their rides for a night under the stars. “Those are the best nights ever,” she said.
• Up to 80 percent of ticket sales go right back to the film studios, so the Long Drive-In’s main revenue is from concessions. The Clasemans have expanded menu options and even offer camping spots for tents and RVs.
• With just a single screen, deciding which films to show takes a strategy. “We look at the movie release schedule at the start of the season, do a lot of research and have a very rough draft of the season once we open. We also have a booking agent who screens movies and advises us. But sometimes movies come up out of nowhere, and we adjust our schedules for that.”
• The drive-in has to be flexible when movies become wildly popular. Films like “Toy Story 4,” “Top Gun: Maverick” and “Inside Out 2” had more showings than planned because there was no drop in attendance (a 25 to 40 percent drop each week is typical). This year, the drive-in ran two features, “Twisters” and “Deadpool & Wolverine,” back to back. “We couldn’t pass on either movie,” said Michelle.
• During 2023, the drive-in received a Minnesota Main Street Economic Revitalization Program grant administered by the Initiative Foundation. “We were very fortunate to be chosen for the grant,” said Michelle. “We’ve done many needed upgrades and repairs, and the next project will be repainting and restoring our original 1956 marquee. We are all pretty excited to get that started. Next spring we are taking out the cracked concrete in front of concessions and replacing it all with pavers. These improvements will all make the drive-in more inviting.”
Send your best guess to IQ@ifound.org by Nov. 30, 2024.
Three winners will be chosen, at random, to receive a $25 credit to apply toward their favorite Initiative Foundation-hosted Partner Fund.
HINT: At this site in 1894 approximately 300 people were laid to rest following one of the worst natural disasters in Minnesota history.
Congratulations to everyone who correctly identified the Goose Creek Rest Area in the spring 2024 edition. Readers Patricia Turnbloom and Jeff Andres were the lucky winners of the “Where’s IQ” contest.
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