Officials break ground on West Broadway Crescent, a 54-unit affordable housing project going up on West Broadway.
Data released by the U.S. Department of Commerce last month showed that Minneapolis and St. Paul have emerged from the economic recession more quickly than other large Midwestern cities like Chicago and Detroit. The Twin Cities saw a 1.5 percent increase in economic output between 2008 and 2011, even as many other metro areas experienced decreases.
While the Twin Cities may be on the rebound from one of the worst economic periods in U.S. history, the recovery has been uneven. Particularly in North Minneapolis, residents are not enjoying the benefits of significant growth.
Instead, the area has seen job losses—despite a Twin Cities-wide unemployment rate (5.1 percent) that is well below the national average (7.9 percent). Vacant storefronts, foreclosed homes and a high poverty rate are indicators of just how badly the Northside has fared economically.
Poor economic indicators, of course, are not a recent development in North Minneapolis. For the last three decades, lack of opportunity on the Northside has led to an overall decline in the number of residents. During a period from 2000 to 2010, for example, the area saw a population drop of 11 percent. The Great Recession has only worsened long-term economic difficulties.
Despite these grim realities, City of Minneapolis officials have voiced optimism that the Northside can again see increased investment, improved economic metrics and, most importantly, greater opportunity for individuals and families living in the area. Former Mayor R.T. Rybak devoted his last State of the City address to revitalizing the Northside, noting “this part of town has a spirit that can accomplish truly great things.”
New Mayor Betsy Hodges has pledged to continue and expand upon revitalization efforts in North Minneapolis, prioritizing the need to address inequalities among city residents. Ground zero for this work is the Department of Community Planning and Economic Development (CPED), a body tasked with growing a sustainable city by increasing population and financial opportunity.
The methods by which the CPED seeks to foster economic development vary considerably, but functions of the department fall under three primary categories: leveraging public resources to attract private investment, focusing funding on areas where markets have failed and working to eliminate economic gaps that divide communities and neighborhoods.
Director of Economic Development and Policy Cathy Polasky acknowledges the pressing need for economic development on the Northside. “I think things have come back a long way from the economic downturn throughout the city,” Polasky says, “but the recovery has been uneven, and we still have a ways to go in North Minneapolis in particular.”
Polasky cites the Grow North initiative as one way in which CPED is seeking to increase economic development on the Northside. This tool meant to attract more businesses to North Minneapolis targets companies that will hire Northside residents and encourage their workers to live here. “We want businesses that will invest in the community,” Polasky says.
The Minneapolis Advantage program, a complementary initiative, provides down payment assistance on a Northside home for employees who work for companies that move into or expand in North Minneapolis. On the business side, forgivable loans of up to $200,000 are available for companies moving in who bring a certain number of jobs and hire a significant portion of the workforce from North Minneapolis.
“We think that there are so many assets in North Minneapolis that people are just not aware of,” Polasky says, “assets that include the talented workforce that is in North Minneapolis as well as accessibility to freeways that can get you anywhere in the city or the region.” She says, “We also think that there’s a good quality of life here, including access to the river. It’s just an underappreciated part of the city that businesses should know about.”
Efforts to foster economic development incorporate many community partners. Some involved stakeholders include the Camden Business Association, West Broadway Coalition, Northside Economic Opportunity Network (NEON), Metropolitan Economic Development Association (MEDA), and neighborhood associations throughout the Northside.
In addition to bringing in businesses, CPED strives to prepare area residents for the 21st Century workforce. “Jobs are changing,” Polasky notes, “and we all owe it to ourselves to explore what’s out there and get advice on how we can consider our options.” The department works with the North Workforce Center, the Employment Action Center, the Minneapolis Urban League, Goodwill Easter Seals and other community organizations dedicated to helping residents develop job skills of all kinds.
One recent example of public/community partnership includes the development of a technology center at the old North Library. Emerge, a community development organization, has obtained a $500,000 loan from the City, which also served as a co-applicant on a federal grant that brought in $2.7 million for the project. County and state levels of government as well as private foundations were also involved in the effort.
Polasky notes that there are many elements beyond business development and workforce training. “To have a healthy community, you have to have a strong residential community,” she says. “It’s important to have housing options available no matter what your income or what your age is. A strong residential community supports retail and other services, and so they really go hand in hand in growing together.”
Increasing economic opportunity and strengthening the community will require the dedicated efforts of many stakeholders, a fact reflected in CPED’s efforts to involve a wide range of community partners. “We all have aspirations for North Minneapolis to be stronger and better than it ever was,” Polasky says. “I think we’re on a good forward path, but I think there’s more that we can do.”