The City of Saint Paul has partnered with Nexus Community Partners, a renowned nonprofit organization, to launch and administer the LOCAL Fund. This initiative, announced on March 15, 2024, signifies a major step towards fostering economic empowerment and community wealth building within Saint Paul. The Shared Ownership Center at Nexus Community Partners will spearhead the distribution of $2.5 million in funding, specifically designed to cultivate cooperative ownership models throughout the city.
Mayor Melvin Carter emphasized the practical impact of this collaboration, stating, “Helping frontline workers buy the business and facilitating group ownership of real estate is exactly the kind of practical, everyday improvement to our residents’ lives that our work from City Hall must aspire to achieve.” He expressed his enthusiasm for partnering with Nexus Community Partners to bring these impactful programs to fruition.
The LOCAL Fund is structured around two core programs: Worker Ownership and Community Ownership. This dual approach aims to invigorate Saint Paul’s economy by supporting both worker cooperatives and real estate investment cooperatives. By channeling $2.5 million into these areas, the initiative seeks to create lasting community benefits.
Ikram Koliso, Interim Director of the Saint Paul Office of Financial Empowerment, highlighted Nexus Community Partners‘ suitability for this role. “The Shared Ownership Center at Nexus brings expertise in cooperative development with a long history of building community-led coalitions that center equity,” Koliso noted. “Nexus brings the right combination of technical skills, administrative capacity, and equity-centered leadership for the LOCAL Fund.”
The overarching goals of the LOCAL Fund are to build community wealth, establish stable local jobs, expand the local economy and tax base, and cultivate a culture of ownership that benefits Saint Paul residents for generations to come. These objectives are rooted in the proven success of cooperative models.
Research from the National Center for Employee Ownership in 2018 indicates that employee-owned businesses, like co-ops, demonstrably improve financial well-being. These businesses have been shown to lead to a 92% increase in household net worth, a 33% increase in hourly wages, and significantly longer job tenure (53%). Similarly, real estate co-ops play a vital role in revitalizing commercial areas by providing stable, affordable property options for businesses. Crucially, they empower community members by giving them a voice in development decisions and a share in the generated profits.
The LOCAL Fund offers distinct programs tailored to different needs. The LOCAL Fund: Worker Ownership provides essential grants and technical assistance to support worker co-op development at all stages. This includes startups, conversions of existing businesses to cooperative models, and the growth of established co-ops. Concurrently, the LOCAL Fund: Community Ownership program focuses on supporting shared-ownership entities involved in commercial real estate. This program offers grants and technical assistance for crucial predevelopment activities, property acquisition, demolition when necessary, and rehabilitation projects.
Patty Viafara, Director of the Worker Ownership Initiative at Nexus Community Partners, shared her organization’s excitement about this new venture. “The Shared Ownership Center at Nexus is excited to build on our seven-plus years of supporting cooperative development with Black, Indigenous, and people of color at the forefront,” Viafara stated, emphasizing Nexus’s commitment to equitable and inclusive community development.
Both the Worker Ownership and Community Ownership programs are officially open for applications. Interested parties are encouraged to schedule a consultation to learn more about the application process and how they can participate in this transformative initiative. Further details can be found at the Nexus Community Partners website: www.nexuscp.org/shared-ownership-center.
This impactful project is made possible through federal award number SLFRP1612, awarded to Nexus Community Partners by the U.S. Department of the Treasury, underscoring the significance of this initiative at both the local and national levels.
About Nexus Community Partners:
Nexus Community Partners is a Saint Paul-based nonprofit with two decades of experience in fostering engaged and empowered communities of color. Through innovative programs and community-centered initiatives, Nexus Community Partners has consistently worked towards building stronger, more equitable communities. For additional information about their comprehensive work, please visit www.nexuscp.org.
The Shared Ownership Center at Nexus Community Partners, formerly known as the Worker Ownership Initiative, has been instrumental in promoting shared ownership models since 2019. They have collaborated with over 50 companies to explore cooperative structures and have directly supported the development of more than eight cooperatives across the Twin Cities region. SOC@N offers comprehensive expertise and a strong equity focus throughout all stages of cooperative development, from initial feasibility assessments to full cooperative operation.
