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Inner City Change Inc. ( a non-profit 501c-3 organization )
8001 Wildewood Drive, Omaha, NE 68127
www.innercitychange.org
Chris Pelshaw
Programs Operations Director
chris.pelshaw@innercitychange.org
+1 (402) 713-8422
Yes
Although we are a new organization our leadership has completed hundreds of residential and commercial projects. Our program director is a Class C home builder with National Master Plumbing credentials. He owns and operates a successful remodeling business, as well as a fix and flip business. Our developer has successfully completed millions of dollars in development projects.
Below is the key staff we will launch the Omaha Construction Apprenticeship Program (OCAP) with; · Program Director – Class C Home Builder -instructor- Christopher Pelshaw · Developer – Robert Pelshaw - Project Architect: Steven Shogrin - Project Civil Engineer Lawrence Butler PE · Project Manager – TBD · Jobsite Foreman – TBD · Admin and HR Manager – TBD · Business Development - Sales and Marketing – Robin Borie · Accountant – TBD · Master Plumber – instructor -TBD · Master Electrician – instructor -TBD · Participants
Program Director Chris Pelshaw holds numerous local and national construction certifications and over the last 20 years has started and operated successful construction and house flipping businesses, training countless new construction workers in the process. Chris is passionate about showing others that might not succeed or be able to go to college that construction jobs can be an alternative path to high-paying jobs and a nice life. Steven L. Shogrin, AIA is a respected architect with over 30 years successful experience in industrial, commercial, multi-family, historic, medical, and institutional projects. Developer – Bob Pelshaw 30 years’ experience as a commercial real estate developer 2001 Acquired and did a historic renovation of the South Omaha City Hall received Historic Tax Credits 2001-05 Acquired and redeveloped the former Sutherlands Lumber into Sutherlands Plaza , received over $2.1mm in TIF 2001-05 Did site acquisitions for (14) new Walgreens stores in Nebraska & Iowa 2001-2009 Developed, owned, and sold (6) new construction Dollar General Stores (9800 SF each) using over $600k in TIF 2001-2009 Acquired property & redeveloped into (7) Dollar General Stores I owned and sold using $300k in TIF 2005 – 2009 Developed, owned, and sold (4) new construction Orscheln Farm & Home Stores (35k SF each) using $750k in TIF 2007 – 2010 Developed, owned, and sold (17) new construction Pamida Stores (35k SF each) using $1mm in TIF 2005 - 2012 Worked as fee-based developer for the $18mm HyVee anchored development Plattsmouth Plaza and received $2.3mm in TIF 2014 Obtained $380,000 in TIF for Dan Williams Tighton Distribution Center, Carter Lake IA 2014 – 2015 Obtained $460k in TIF for new apartments at 35th & Dodge for John Caniglia 2020 Helped secure TIF and CDBG funds for Ames Industrial Park LLC Lawrence Butler PE has successfully performed over a billion dollars of complex civil engineering projects ranging from new construction to neighborhood renewal.
Omaha Construction Apprenticeship Program
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2680300.0
Combination of capital project and service/program
The Omaha Construction Apprenticeship Program will be a self-administered self-sustaining program training covid-impact job seekers for new construction jobs. In our main training course students will build affordable housing. Upon completion of this program, we expect participants to be proficient in most areas of construction. We plan on building affordable housing in North and South Omaha QCTs targeting the Land Bank inventory, while training in groups of 25 covid-impacted participants at a time through our hands-on approach which combines classroom time with paid on the job training. Our 5-year training goal is 225 people trained and job-placed along with 50 affordable housing units built. Our training will be split into modules so that we can train participants with the individual skills necessary to be rapidly placed in jobs. With our program we will be able to train participants for entry level specialty fields within weeks or they can complete the program and become full blown general contractors in 1 year. We can train people on any trade involved in the home construction process for skilled entry-level positions. Our priority is to teach people the skills they need to gain employment and help them to be placed into stable rewarding careers. Our program is free to our participants and we will pay them $15 -$20 per hour for hours worked outside of the classroom. Our intention of starting this program is to train participants for careers in the construction industry while providing all different types of affordable housing solutions. Our overall goal is to provide economic opportunity and prosperity for all. Inner City Change believes in building stronger communities through career training and affordable housing. We believe the dream of home ownership should be possible for all Americans willing to work for it. We believe in providing training to anyone who has a willingness to learn and a drive to better themselves.
We plan on launching our program within 3 months of meeting our funding requirements. We will build 10 units of free-standing affordable housing in QCTs in North and South Omaha starting April 2024, while training our first participants. Scaling up as we go, funded by ongoing home sales, our sustainable 5-year goal is 225 people trained and job placed, and 50 affordable housing units built.
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Fundamental Change (i.e., a proposal that will continue to elevate North or South Omaha's presence and perception within the region, significantly improving the lives of area residents through physical development) Long-Lasting Economic Growth (i.e., a proposal that will foster gainful employment opportunities and financial investment in the area, leading to the creation of generational wealth and widespread economic vitality in North and South Omaha) Transformational (i.e., a proposal that will help energize, recharge, or spur significant and favorable advancements in North or South Omaha's function or appearance)
Other Infrastructure (i.e., develop or improve broadband, business districts, roadways, sewer, etc.) Quality of Life (i.e., create or enhance natural spaces, mixed uses, parks, safety, etc.) Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)
There is a very high demand for skilled trade workers all throughout the United States. Data collected from the Census Bureau shows only 4.98% of the workforce in Omaha is employed in Construction. With the extreme demand for affordable housing and skilled trades workers to repair crumbling infrastructure all across the nation, the need for our program is greater than ever. There has never been a better time to learn a skilled trade. There is a massive nationwide shortage of skilled trade workers. In an article in the August 21, 2021 edition of The Economist was a projection that 40% of existing construction workers are expected to retire in the next 10 years. Not nearly enough people are entering the trades to make up for all those retirees. With the higher demand for workers comes a much higher wage. Students who successfully complete our Omaha Construction Apprenticeship Program, will have all the necessary knowledge to immediately enter the construction trade and begin their stable, fulfilling career. The poverty rate in Omaha is an astonishing 15.1%. This means that 1 in every 6 residents of Omaha live in poverty. According to spotlightonpoverty.org the percentage of working families under 200% of the poverty line is 29.2%, with 1/5 of the positions held being low wage. Housing costs and monthly income drastically affect a person's quality of life. Families who spend more than 30% of their monthly income on housing are considered cost burdened. These families almost always have difficulty affording necessities such as food, transportation and basic medical care. Our program aims at creating a truly sustainable community. Here is the list of services we plan on providing that we believe QCTs in Omaha can benefit from; Construction training, job placement, renting, selling and leasing of affordable housing, down payment assistance on all of our for sale projects, transitional housing, emergency housing homelessness prevention research.
This proposed project aligns with these key findings form the Visioning Workshop summary: - training opportunities - utilizing vacant land to transform targeted QCTs in north and south Omaha - substantial new investment in north and south Omaha qualified QCTs improving the quality of neighborhoods and removing problem vacant lots - improving the quality of life for the neighbors of our projects and for the new covid-impacted homeowners of the homes we build in QCTs in north and south Omaha.
Our program is transformational for the program participants trained in new careers in construction, and for the new homeowners in the QCTs we will build in. Fundamental Change occurs through our Project by the investment momentum, rising surrounding home value, and area improvements that occur when you build a new home in an inner-city area. Lasting Economic Impact occurs through the new careers we prepare our participants for, and for the new affordable housing stock added in north and south Omaha QCTs.
We plan on employing 6 full time people to administer the program. These positions will average $45000 per year. We plan on training 50 participants per year. Our participants will be paid $15 - $20 per hour depending upon initial their skill level and personal needs. We expect to see our successful participants transition into permanent employment in the construction trades industry with plenty of room for financial and economic growth.
We plan on employing 6 full time people to administer the program. These positions will average $45000 per year.
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nothing lower than $20/hour to start for training workers, and $45,000 per year for instructors
Participants that successfully complete our program will be ready for hire in specialty trade fields as well as general carpentry/ construction trades. There is a huge demand for contractors finding quality help and we plan to help bridge that gap. Front end training cost is one of the biggest hurtles that smaller contractors face when searching for quality employees. Unfortunately, many times the cost of training stops disadvantaged small businesses from expanding.
Inner City Change believes that education and affordable housing can drastically benefit a community, especially among covid-impacted job seekers in targeted QCTs. Countless studies have been conducted about the correlation between income and quality of life. Helping individuals in the community gain valuable training and giving them opportunities to high paying jobs is one of the fastest ways to better an entire community and raise the living standards in the QCTs we will build new affordable housing in. Inner City Change believes providing affordable housing is an equally important part in bettering any community. The need for affordable housing is imperative not only for families but also neighborhoods. The benefits to affordable housing are endless. When families worry less about making their rent or mortgage payment those families are able to spend more money on nutritious food and other essential items. Increasing buying power for low income families can mean steady income for local small businesses, more job creations and higher economic growth. Affordable housing developments create diversity by creating communities of people of different cultural, Socio economic, and educational backgrounds. Diversity in a community helps to increase the knowledge of cultural sensitivity, fairness, and understanding of different backgrounds, this ultimately leads to a better overall community. Building relationships across ethnic and racial lines helps to stabilize and strengthen a community.
The economic impact of the temporary and permanent jobs created, as well as the long-term impact of new affordable housing stock will transform the impacted environment and greatly increase livability inside the QCTs the program operates in.
Our OPAC program is innovative in the way that we pay to teach our participants the skills that they need to be successful in the construction industry while creating affordable housing. The people we hire and train to build housing are likely to be the people that are most at need of affordable housing. Inner City Change is committed to implementing a diverse trade program and creating affordable housing throughout Omaha. America was built on the backs of tradesmen. Unfortunately, throughout the last few decades trade skills have been rapidly declining. People have instead turned to higher education, four-year degrees and let’s be honest, years of debt. Not everyone is cut out for college. Many students struggle to graduate from high school, forcing them into mediocre jobs in retail or service. Our program aims to provide students with lifelong skills and job placement into rewarding, high paying careers. The Omaha Construction Apprenticeship Program will be implemented in the very neighborhoods our students grew up in. Our unique program will help revitalize and improve these blighted neighborhoods, bringing affordable housing, and higher property values to existing homes. Our students will truly be giving back to the same community that embraced them as they grew, creating a stronger, even more tight knit environment. The concept of affordable housing is not new, but it is a problem most of our nations‘ cities are facing. With the rising cost of land, labor, material and lack of skilled trades workers to build these homes, it would seem that “affordable housing” is no longer attainable. Inner City Change believes everyone should have access to affordable housing. Our not for profit program was designed to provide affordable housing, while implementing the use of our Apprenticeship Program attendees and their Master instructors to build these affordable, energy efficient units. Keeping costs low means our marginal profits from the sale of these affordable homes can sustain the cost of the program so more affordable housing can be built. The innovation to our program lies in the sustainability and multifaceted benefits of giving the residents of Omaha access to high paying careers while building affordable housing in their communities.
Our programs will measured the numbers of trainees completing the curriculum, the number of them hired into construction jobs, and the number of new affordable houses we provide the community.
Our programs success will be measured by what skills we train, how many people are trained, how many participants are placed into careers, as well as the amount of affordable housing built. These outcomes will be monitored and measured by our program director. This program can be a catalyst for secondary investment as many of our units will be sold to continue funding our program. This gives investors safe clean housing to rent. This program will also open up the possibility of homeownership to individuals who may not otherwise qualify.
New homes built in existing neighborhoods will increase the values of neighborhoods through their higher than surrounding sales price, which coudl inspire surrounding owners to improve their properties, improving the appearance and enjoyment and safety of the neighborhoods and QCTs we build new homes in.
Yes
We will be partnering with the Omaha Municipal Land Bank to acquire buildable sites, as well as Nebraska Workforce Development, Reconnect Inc., Goodwill Industries, The Stephen Center, The Open Door Mission to aid in finding participants and continue development of our training program.
No
We plan on focusing our development efforts in QCTs in North and South Omaha. The first 12 proposed lots for affordable housing development are; 4522 n 40th street, 3555 n 36th street, 2207 n 18th street, 2607 spencer street, 4712 n 18th street, 4744 n 13th street, 4522 n 15th street, 5328 n 8th street, 5415 n 6th Avenue. These are all Omaha Municipal Land Bank Properties. These lots are cleared, properly zoned, and ready for the development of affordable housing.
Within one or more QCTs
Yes
Yes
Yes
No
No
Cost per square foot estimated agreed upon with the Project Architect and General Contractor
Yes
No
Applicant is the Licensed General Contractor, who will self-perform the Project to reduce construction costs.
All project costs, including materials, land, payroll are all at or below the average costs per square foot, or average rates, based upon publicly available information relating to the Omaha market.
The Grant funds will provide the initial seed funds, and will be self-sustaining thereafter.
Yes
As the attached 5-Year Proforma shows, while the Project operates at a loss in Year 1, it is projected to be profitable in Year 2, and all net income after tax will be used to fund and sustain the Project
No
No
Inner city change will be selling, and if necessary refinancing properties that are built to bridge fiscal needs and continue funding this self-sustaining program.
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Data table of uses (breakdown of how the requested funds will be used for your proposal) Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Pro Forma Proposal Budget/Sources and Uses Schedule