67
Heart Ministry Center
2222 Binney St. Omaha, NE 68110
Same as above
https://heartministrycenter.org/
Facebook page url: https://www.facebook.com/HeartMinistryCenter/, Twitter handle: @HeartMinistry, Instagram handle: @HeartMinistryCenter
Tim McTaggart
Chief Sustainability Officer
tim@heartministrycenter.org
+1 (402) 659-3440
Yes
Please see attached organizational chart. If you have any questions please do not hesitate to contact Tim McTaggart at the phone number or email listed above.
The Heart Ministry Center (hereinafter referred to as the “Center”) is a community outreach center in North Omaha. The Center’s mission is to provide food, healthcare, and a way forward to people severely affected by poverty in the Omaha area. The Center has various programs and services in place to help address poverty in the surrounding community. These programs include a “choice” food distribution program, A Way Forward case management program, Fresh Start job training/placement program, social enterprise Fresh Start Laundromat, and Monen Healthcare Clinic (which provides medical, dental, vision, physical therapy, occupational therapy, and mental health services). One notable accomplishment is the Center’s social enterprise Fresh Start Laundromat, which opened in September 2020. The objective of the social enterprise Fresh Start Laundromat is to provide a needed good or service to an underserved community while simultaneously creating jobs. The Laundromat is the only service the Center provides where it charges patrons, however, the Center does provide approximately $10,500 a month in free and reduced laundry services. Though there are no specific restrictions on who can receive free laundry services. The staff intentionally targets families with school-aged children, however, to help curb truancy as we have learned that lack of clean clothes is one of the leading reasons that children do not attend school. The Laundromat has 20 commercial washers and 24 commercial dryers. The Laundromat is open from 7:00am to 7:00pm seven days a week to help accommodate families’ work schedules. In addition to coin slots, the washers and dryers feature smart technology that allows patrons to run the machines from their smartphones and sends alerts two minutes before a load is done. This allows patrons to utilize the Center’s additional services while getting their laundry done. Laundromats are measured in “turns” which means uses per machine per day. The Center is averaging 3.9 turns per day with the industry standard at approximately 3.0. The Center’s Laundromat has performed ahead of schedule and began consistently balancing expenses with revenues (approximately $11,000 in monthly revenue) in March 2022. The Laundromat is currently generating approximately $16,500 in monthly revenue. The revenue from the Laundromat now supports four jobs for Fresh Start graduates who need additional time and support before transitioning to one of the Center’s 50 community employers. The Center intends to continue this model with additional social enterprises, i.e., providing a needed good or service to the local community while also creating jobs.
Heart Ministry Center Expansion and Social Enterprise
8000000.0
3000000.0
Combination of capital project and service/program
The Center will create additional social enterprises that follow a similar model to the Fresh Start Laundromat as described above. The Center owns the lot at 2934 N. 24th St. and is under contract with the Land Bank for the lot at 3002 N. 24th St. and should close on that property by year-end 2022. The Center intends to purchase additional land at 3006 N 24th St. and 3022 N. 24th St., and has been in preliminary negotiations with the owners for approximately two years. Though no decision has been made, the Center would most likely demolish the building at 3006 N 24th St. and renovate the building at 3022 N. 24th St. depending on which social enterprises are created. The Center is exploring several options for our next social enterprises including a mechanic shop, restaurant, grocery store, daycare, bank, barbershop, salon, fitness center, clothing store or other business as suggested by our community member survey. We want to create social enterprises that are both community-driven and viable. We are actively surveying the Center’s clientele through our food distribution program, which is the largest food pantry in the state, through our laundromat and the A Way Forward program, as well as utilizing social media. The Center recently formed a Social Enterprise Committee from its board of directors and leadership team. The Social Enterprise Committee will provide the business acumen and support necessary to ensure the social enterprises are fiscally responsible and sustainable. This Social Enterprise Committee includes Terri Sanders of the Omaha Star and Bryan Wilson of Midwest Technology Partners who is also the incoming president of 100 Black men. The Center has grown organically and would like to continue this organic growth rather than rushing a project. With that in mind, the Center anticipates the first social enterprise to begin serving clients by July 2025. A general timeline with milestones can be found below. This funding request, if awarded, would go toward the construction costs associated with building and/or renovating structures to house the social enterprises.
Comprehensive Community Assessment (based on need and viability) - completed by June 2023 Research and Planning Phase - completed by October 2023 Required Real Estate Purchase and Execution of Necessary Zoning - completed by January 2024 Contractor Bidding Phase in partnership with an owner’s representative to finalize the entire scope of project - completed by April 2024 Construction Begins - beginning by June 2024 Capital Campaign Completion - completed by October 2024 Construction Completion - completed by December 2025
1.0
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.) Policy (i.e., develop or improve context-sensitive education, finance, health, training, zoning, 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.)
The Center’s plan to open and operate additional social enterprises addresses the community needs in “sustainable community” above by creating additional services. These social enterprises, which will be in large part determined by the community’s voice, will provide needed goods and services to an underserved community. In addition, when customers are struggling financially, the Center will offer free or reduced options for these services. When customers cannot afford these services over an extended period of time, the staff will connect customers with additional programs offered at the Center that assist with employment, budgeting, and any other barriers to self-sufficiency. This project addresses the “other infrastructure” need through creating additional businesses that will help revitalize 24th St. This project will not only improve the specific areas being replaced or renovated, but the increased foot traffic in this area from the newly created social enterprises will attract other businesses to the community. We believe a revitalized 24th St. would help attract people from across the metro area and help connect North Omaha with the rest of the city. This project also addresses the “quality of life” need by enhancing the area. As part of this project, the Center will most likely demolish the building at 3006 N 24th St. and renovate the building at 3022 N. 24th St. depending on which social enterprises are created. Upgrading from dilapidated buildings to new and/or renovated buildings with enhanced curb appeal will improve the beautification of the area. Finally, the social enterprises will provide new jobs to members of the community who would otherwise struggle to find employment, which will directly improve those workers’ financial stability. Additionally, the social enterprises will provide needed goods or services to the community, frequently at free and reduced prices for those in need, which will have a direct and positive impact on the financial condition of community members who utilize one or more of these social enterprises. These benefits fall under the “policy” need above.
The visioning workshops identified the existence of insufficient infrastructure in North and South Omaha. The Center has existing, stable infrastructure to support the expansion of our social enterprise. While we would face some of the same challenges of any new business, we do not lack the infrastructure to support that business. The Center also plans to play an active role in improving the infrastructure in North Omaha through our advocacy efforts and our business mentorship described more below. The visioning workshops also identified a need for development that fits within the cultural context. Social enterprise is designed to meet a need in the community and this will be a need that is specific to that particular community. We are surveying those we serve to determine which businesses should be considered for our next social enterprise. Those who live in our neighborhood are best suited to identify needs. We will also continue our planning efforts in collaboration with those who live and work in our neighborhood including the 24th St. Business Improvement District, Cluxr House, Mt. Moriah Church and others. These collaborators are well versed in the culture of the 24th St. area. Lastly, the visioning workshops identified a need to access tools and leverage community resources. The Center staff have track records in this area and would like to assist other organizations, individuals and entities with tools and resources. Not only will we support those employees who work in our social enterprise to gain marketable skills to be used in the community, we will also continue to partner with existing land owners, faith leaders, individuals and more to support their growth in the community. We will support this growth by sharing knowledge, formal and informal partnerships, offering advice and through introductions to experts. The Center is a stable partner on 24th St. and our plans to expand our social enterprise are not dependent on ARPA funding. These plans have been in process for some time and the funds made available through LB 1024 happen to align. The Center can be a powerful partner in this project as we have strong business networks and community support. We can act as a guide for the project as it seeks to address the social inequalities that have been amplified by the pandemic. The financial and social impact of the COVID-19 pandemic will be severe and long-lasting. Even before the pandemic, many of our systems did not equally benefit all members of our society. The pandemic has worsened this situation and more than ever, collaboration between different sectors is required to remedy inequalities and hardships. While we understand that consumer activity will help to revitalize the 24th St. area, we understand that there are many barriers to success for new businesses in our area. The social enterprise model allows us to take advantage of the opportunities identified in the North Omaha SWOT analysis while also considering the barriers to success.
Our proposal aligns with all LB 1024 strategic priorities. First, the priority of fostering desirable transformation. Our social enterprises will help energize, recharge, and spur significant and favorable advancements to North Omaha’s function and appearance. Our existing social enterprise of the Fresh Start Laundromat brings consumer activity to 24th St. and generates revenue with those who can afford to pay for the laundry service. The laundromat utilizes state-of-the-art machinery and technology and beautifies the area. Our new social enterprise would utilize the same model of providing a top-notch service in a revitalized space. Second, the priority area of creating fundamental change. Our proposal will significantly improve the lives of area residents by providing a needed service at a free or reduced cost for those who need it. Lastly, our proposal aligns with the third priority area of generating long-lasting economic growth. We have a proven track record in our Fresh Start Laundromat of providing employment opportunities and financial investment in our area. Not only do we provide employment opportunities, but we also provide services like job placement, credit repair, resume building, and more that lead to the building of generational wealth. These services are available to all in our community and all who visit our social enterprise.
Depending on the social enterprises the Center moves forward with, this project would create between 10 and 30 permanent jobs per social enterprise. The salaries for these jobs would range between $35,000 and $50,000 per year. In addition, this proposal would create a number of temporary construction jobs. We estimate the entire project would create 80 - 100 construction jobs with pay ranging from $22 - $105 an hour depending on the job and trade specific skill set.
Between 10-30 per social enterprise
80 - 100 construction jobs
Permanent Jobs - between $35,000 and $50,000 a year, Temporary Construction Jobs - between $22 and $105 an hour
In our process to select contractors, it would be our priority to find contractors whose businesses are located in the Qualified Census Tract. However, with the presumably large number of projects that will be undertaken from the LB1024, this may cause delays in construction as local contractors may be overwhelmed with projects. We are comfortable with a reasonable delay in our timeline to ensure we provide ample opportunities to contractors from a QCT. Additionally, the jobs created with these social enterprises will be filled by members of the community, with the overwhelming majority of these community members residing in a QCT. The proposed locations for these new social enterprises are in a QCT and the additional foot traffic created by the social enterprises will have the added benefit of increasing awareness of other local businesses in the community that are also a part of this QCT.
New social enterprises will create both permanent and temporary jobs while providing a needed good or service to North Omaha. Following a similar format to that of the Center’s Laundromat, the Center would provide these goods or services at a free or reduced cost to those who could otherwise not afford them. If a customer cannot afford to pay over an extended period of time, we will offer the Center’s additional services to help with employment, budgeting, and any other barriers to self-sufficiency. In addition, creating social enterprises along 24th St. would create a cluster of consumer activity. A revitalized 24th St. would help attract people from across the metro area and help connect North Omaha with the rest of the city. Also, new buildings that are well maintained and well manicured beautify the area. We believe our model will inspire others to create businesses that not only make a profit, but benefit the community as well. We currently engage with other property and business owners in our area to share knowledge and explore partnership. We have developed an expertise when it comes to social entrepreneurship and we are very willing to mentor others who decide to explore similar opportunities. We know that when we do good work, others are compelled to join us. We also know that through operating transparently, we will demonstrate positive change that is evident to others. Additionally, we believe that companies who pursue good work in the community will have a long term advantage. A 2017 Unilever study that showed 33% of consumers choose to buy from brands they believe are doing some environmental or social good. Another 2018 report from Mintel stated, “50% of Americans say that they would switch to a company that supports a cause they believe in, rising to 61% of [consumers ages 18-23 and 24-41].” As our employees and consumers are empowered and more companies begin utilizing this model, the possibility of our business and others playing a role in social change will grow. We will demonstrate the impact of a supported employment model and investment in individuals who may not have otherwise been employed in the traditional market. This demonstration, combined with the Center’s advocacy efforts, will be powerful and persuasive. We believe we will create a cycle of social impact that is sustainable and inspiring to others. Our commitment to supporting employees to build marketable skills is another huge community benefit. Not only will employees of the social enterprise learn job specific skills, they will continue to learn the soft skills that are emphasized in the Fresh Start program. They will also continue to receive support from our Fresh Start staff on budgeting, transportation, legal issues and any other factors that relate to their mind, body, or spirit. In this way, the social enterprise model helps not only to support good employees, but healthy and productive human beings who will ultimately improve the community. We will continue to build relationships and work in collaboration with long term residents and business owners of North Omaha. As an organization doing business along 24th St., we have made a commitment to the preservation and revitalization of the area. We understand that not all members of our organization were born and raised in North Omaha, however. We understand that guidance from those who have lived and worked in the community for generations is critical and an integral part of any process we pursue. We believe that our commitment to work with long term stakeholders in our community will be a great benefit.
Plans for sustainable community include plans to meet multiple human needs, not just one need at the exclusion of others. These plans include a vision for future generations, not just short term gains such as profitability. Our social enterprise model will meet a need in the community for a service, provide jobs, consider the needs of the employee and the needs of the community. Our employees deserve a high quality of life, competitive wages that balance their household budgets, sound minds, bodies and spirits. The services we offer our social enterprise employees help them to build marketable skills and important life skills that lead to the building of sustained, generational wealth. Strong people who lead a high quality of life are essential to a sustainable community. We will support a sustainable community through the support of people. Employees of the Center are regarded as whole human beings with family, financial, health, transportation, housing and other fundamental needs. If an employee of the Center experiences hardship, they have access to all of our services to assist with this hardship. If an employee is in need of mental health, literacy, budgeting or other particularized assistance, we will help them to obtain that support. We believe that this is the only way to build a long-term, sustainable workforce by supporting our employees as whole people with complex needs. Sustainability is inherent in the social enterprise model. Although the government may help us to initiate the creation of this social enterprise, ultimately our business will be self-funding through revenue. A successful business in the 24th St. neighborhood will contribute to a sustainable community through ongoing job creation, attraction of consumer activity, beautification of the neighborhood and creation of social cohesion through the fulfillment of the Center’s mission.
Before opening our Fresh Start Laundromat in 2020, the Center staff visited Homeboy Industries in Los Angeles, CA. Homeboy is widely recognized as a pioneer in the social enterprise field as they have been doing the work for over 30 years and currently run 10 social enterprises. Homeboy’s overarching goal “is to see individuals heal from trauma, allowing them to contribute fully to their family and community.” This principle guides our work in the Fresh Start program as participants face addiction, mental health struggles and issues with toxic relationships. Trauma accompanies all of these struggles and those we serve must have the time, space and support to heal before they can graduate and move to one of our partner community employers. Fresh Start participants find the service they provide to our community members in the food distribution area very healing and learn that assisting another person in need is a very powerful tool for healing and growth. Participants also heal through their daily work with their assigned Fresh Start Facilitator as they pursue personalized goals related to their specific needs. A few of the questions we must ask ourselves to determine whether we are following best and proven practices related to social enterprise are: Is our enterprise solving a social problem while also meeting a genuine need in the market? With respect to our Fresh Start Laundromat, we knew that lack of transportation and a lack of clean clothes were the top two reasons that children missed school. Our guiding principle of “Dignity for all” guides us in our decision making and we know that a child can only have a dignified experience at school if they feel confident. We also know that an adult can only have a dignified employment experience if they have that same opportunity to gain and maintain confidence. Our laundromat provides free and reduced laundry for those who need it, provides jobs for Fresh Start graduates and also generates revenue from those customers who can afford to pay. Our new social enterprise ventures will utilize the same model to meet needs identified in the North Omaha Visioning Workshop. We must also ask if our venture is building on our strengths, assets, and core competencies. The Center staff is made up of individuals with strong for-profit and nonprofit business backgrounds. This uniquely positions us to launch businesses that utilize the social enterprise model. In those areas where we are not as knowledgeable, we are able to leverage existing partnerships. Expanding our social enterprise also builds on the success that we have already achieved in our Laundromat. Thirdly we must assess whether the venture energizes board members, senior managers, and stakeholders. Our board members, senior managers, and stakeholders have seen positive results from our Fresh Start Laundromat social enterprise and all are supportive of the expansion of this aspect of our business. As mentioned above, this venture was in the planning stages before the availability of ARPA funding. The ARPA funding simply aligned with the planning that was already in the works. Lastly, we must ask if our enterprise will make enough money to achieve realistic financial goals. When we started our laundromat business, we partnered with a laundromat business owner in the area who helped us analyze our business model, financials, equipment, and overall design. With our next social enterprise venture, we will partner with expert business owners in the relevant field and perform the same analysis. Because we will not have the burden of a loan to start the business, this will accelerate our ability to make a profit.
We will measure the outcomes of our new social enterprise in the same way that we have measured the outcomes in our existing social enterprise: Job creation - high-wage jobs will be created at the Center’s social enterprise as measured by the employees’ ability to balance their household budgets. Marketable skills - All employees at the Center’s social enterprise will build marketable hard and soft skills as measured by successful placement in long-term employment with one of the Center’s community employer partners. Stimulate North Omaha - The Center’s social enterprise will energize, recharge and spur significant and favorable advancements in North Omaha as measured by community member surveys. Fiscally responsible - The Center’s social enterprise will demonstrate fiscal responsibility through reinvestment in our community. This will be measured by reinvestment of revenue in: high wage positions; free and reduced cost services for community members; and training on marketable skills for social enterprise employees.
The outcomes listed above will be measured by the Center’s social enterprise management staff. We will utilize the same methods utilized in our Fresh Start Laundromat. In the Laundromat, we collect feedback from community members through social media, Google Form surveys, and verbal conversations. We keep track of financial performance through spreadsheets and financial software in collaboration with our Chief Financial Officer and bookkeeper. We manage matters related to Human Resources in collaboration with our Chief Resource Officer and HR-related software.
Yes. For example, one of the potential social enterprises the Center is considering is a restaurant. While the Center is aware of the high failure rates associated with restaurants, the Center would have support from Flagship Group LLC if a social enterprise restaurant was created. Flagship is a local restaurateur who both owns and manages close to 50 restaurants across the country. The group's initial concept was Blue Sushi Saki Grill. This concept has been duplicated in 20 different locations, spanning across 10 states, during the Flagship Group's 20 years in business. The principal of this group is a high school classmate of the Center's CEO. The Center’s CEO was a commercial banker for 15 years and also the Flagship Group’s banker from inception through their first nine years in business. If this venture moves forward, the Flagship Group would both create and oversee the concept as a part of their Flagship umbrella with the Center providing the labor and ensuring collaboratively with the group that this new concept is North Omaha-centric as a part of the Center's existing campus. However, Flagship Group would not secure any profits as all profits would be reinvested in the community through the Center’s other operations. The Flagship Group has been looking to develop a philanthropic concept to give back to the city of Omaha, the city where its roots lie. It will also give Flagship Group the ability to centralize the training of labor, which the Center could distribute on an ongoing basis to the 100-plus jobs at their other concepts across Omaha. If we pursue a different business, we will secure a similar partner that is a proven expert in the relevant area.
Yes
In progress
No
The Center owns the lot at 2934 N. 24th St. and is under contract with the Land Bank for the lot at 3002 N. 24th St. and should close on that property by year-end 2022. The Center intends to purchase additional land at 3006 N 24th St. and 3022 N. 24th St., and has been in preliminary negotiations with the owners for approximately two years. Though no decision has been made, the Center would most likely demolish the building at 3006 N 24th St. and renovate the building at 3022 N. 24th St. depending on which social enterprises are created. These locations are directly across 24th St. from the Center’s current location. If the Center is unable to acquire the lots at 3006 and 3022, we would look at additional locations within a six block radius of our campus. The Center is working with Alley Poyner to develop concepts and layouts for the social enterprises. This is a work in progress but Alley Poyner can provide more details and answer any specific questions in the upcoming months.
Within one or more QCTs
Please see uploads. The properties are not brownfield sites.
No
Yes
Yes
No
No
Through work with Alley Poyner. Please see attached budget.
No
Please see uploaded budget information including a breakdown of overall project costs. The Center will secure additional funding as outlined below.
If awarded, all funds from LB1024 would go toward construction costs associated with the project. Though our plans are not fully formed at this point, we anticipate these costs would be associated with site demolition and the construction. As we make progress on the project’s plans, a more detailed description of how funds will be specifically allocated toward these construction costs will be provided upon request.
Yes
Revenue generated from the social enterprise will cover the majority of the social enterprise budget. The Center will use General Operating funds to cover any remaining gaps in funding.
Olson Foundation/Bridges Trust – $1,000,000 - currently pending William and Ruth Scott Foundation – $1,500,000 - anticipate exploring for this proposal Lozier Foundation – $1,000,000 - anticipate exploring for this proposal Sherwood Foundation – $500,000 - anticipate exploring for this proposal Hawks Foundation – $250,000 - anticipate exploring for this proposal Peter Kiewit Foundation – $250,000 - anticipate exploring for this proposal Heider Family Foundation – $250,000 - anticipate exploring for this proposal Mutual of Omaha Foundation – $250,000 - anticipate exploring for this proposal
Olson Foundation/Bridges Trust – $1,000,000 – Pending (Expected Decision Date 12/1/2022) William and Ruth Scott Foundation – $1,500,000 – Have not yet submitted request. (Expected Decision Date 12/1/23) Lozier Foundation – $1,000,000 – Have not yet submitted request. (Expected Decision Date 2/1/24) Heider Family Foundation – $250,000 – Have not yet submitted request. (Expected Decision Date 6/1/24) Hawks Foundation – $250,000 – Have not yet submitted request. (Expected Decision Date 6/1/24) Mutual of Omaha Foundation – $250,000 – Have not yet submitted request. (Expected Decision Date 6/1/24) Peter Kiewit Foundation – $250,000 – Have not yet submitted request. (Expected Decision Date 9/1/24) Sherwood Foundation – $500,000 – Have not yet submitted request. (Expected Decision Date 10/1/24)
If the Center does not receive full funding from LB1024, the Center will seek additional funding sources from local foundations. The Center has a great reputation in Omaha and has worked hard to build relationships with local foundations and corporations. The Center was recently able to complete a $6,100,000 capital campaign to construct a new 17,000 square foot building and renovate its existing structure, which were completed in September of 2019 and August of 2020, respectively. The Center’s board and leadership team feel confident we could cover any funding gap though this may push back our timeline.
Yes
We can do one or more social enterprises depending on funding and results of our community survey.
The Center will contribute $5,000,000 to the project, which we intend to secure from foundations, corporations, and individual donors. A breakdown of anticipated funding sources is detailed above.
1.0
1.0
1.0
1.0
Additional Location Documents (see application for list) Data table of uses (breakdown of how the requested funds will be used for your proposal) Documentation of site control (proof of ownership, option, purchase contract, or long-term lease agreement) Organizational Chart Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Proposal Budget/Sources and Uses Request Rationale Documentation Schedule