Community Vitality Center Board Minutes

January 8, 2008
Room 4350, Building 4, ISU Research Park

Present:

CVC Staff: Mark Edelman, Sandy Burke, Ron Prescott

Directors: Mayor Jim Erb, Carol Smith, Linda Barnes, Roxanne Carisch, Sandy Ehrig, Rand Fisher, Mark Hamilton, Deb Houghtaling, David Osterberg, Bonnie Meier, Mike Wells, Dal Grooms

Participating by phone: Burt Chojnowski, Bill Menner, Susan Skora

Call to Order 10:05 AM

Chairman Mayor Erb called the meeting to order. The agenda was approved with a request to reorder agenda items for discussion. A quorum of board members present approved tabling the approval of past meeting minutes until all board members have the opportunity to review them. The meeting began with introductions of participants.

Reports

Burke discussed the latest new movers report on lifestyle questions. The board discussed how to best promote the report to increase awareness about findings. Burke was asked to identify the top five points from all of the reports for purposes of developing a media package.

Ehrig – Farm Bureau and CVC started a quarterly meeting called Rural Entrepreneurship Roundtable. The topics at the most recent roundtables were Latino business development, Renew Rural Iowa seminars, business success seminars, and EntreFest Conference on February 21-22.

Edelman – Iowa Microenterprise Assistance Project (IMAP) CVC has received an award letter from the Greater Des Moines Community Foundation and Northwest Area Foundation for $300,000 to facilitate development of the new not-for-profit microlending corporation. Once established, the new entity will directly receive $225,000 for local match to federal programs. The new entity will be called the Iowa Foundation for Microenterprise and Community Vitality. Currently, approximately ten persons have agreed to serve on the board of the new entity.

A Microenterprise Summit was organized by IDED’s Microenterprise Consultants on December 17. The program included Reports on the Consultant’s recommendations including creation of a statewide microlending entity, additional support for MyEntreNet, CVC innovation grants, and IDED efforts to assist small business entrepreneurial development efforts such as Targeted Small Business (TSB) for businesses that are 51% owned by women, minorities, and disabled persons. A Panel of statewide microlenders from Nebraska and Oregon made presentations on their programs. A panel including IDED Director Mike Tramontina, Senator Dotzler, and Representative Staed presented Iowa legislative and executive agency perspectives. CVC asked questions about support and interest in supporting a statewide microlender concept. IDED encouraged some focus on serving metro areas in addition to rural. Legislators recounted previous experience of mal-performing nonprofits, but also indicated that nonprofits are eligible for federal funds so would be willing to explore concept with open mind.

Prescott presented a discussion regarding the latest Microenterprise Initiative Business Plan Proposal. The CVC Board discussed the multiple goals of community vitality and poverty reduction as complementary and sometimes contradictory goals. Prescott said that the plan currently includes three trajectories for lending funds, including the SBA Microloan Program, the 2008 Farm Bill proposal for a USDA Rural Entrepreneur and Microenteprise Assistance Program if it is approved, and the possibility of developing a Specialized Microloan Fund for Food Processing and Production.

Edelman reported that the CVC has had a recent change in staffing. Former staff Andrew Hug resigned to accept a position in Des Moines. Interviews for a Program Coordinator have been held.

Budget Planning Discussion and Action

Center Operations

Edelman presented an overview of USDA funding picture and CVC budget recommendations for FY2008-09. Funds recommended for Center Operations would be $54K which is down from the previous year. This category includes board expenses, staff travel, part of researcher’s salary, 5% of the Director’s salary, and some funding for the new staff position.

Microenterprise Initiative

Chairman Erb requested a motion to conditionally approve the separate pieces of the budget. Osterberg moved and Fisher seconded the allocation of $50,000 for the Iowa Microenterprise Assistance Project (IMAP) consistent with the Microloan Committee Report. The motion passed without opposition.

Rural Urban Policy Initiative

Chairman Erb and Edelman summarized the Rural Urban Policy Studies Committee recommended allocation of $0 for projects in this area. Work on this Initiative will be done with funds allocated in previous years and new grants being sought. Included on this agenda are new movers study, Iowa government fiscal facts, wealth transfer by gender, and diverse new resident cultures. Osterberg presented a suggestion to focus on new Iowan immigrants and their abilities and aptitudes regarding entrepreneurial business development. Wells moved the motion, Smith seconded. The motion passed without opposition.

Community Entrepreneurship Initiative

Edelman summarized each of the Community Entrepreneurship Committee proposals and recommendations.

$10k NE Iowa Entrepreneur Network - Upper Exploreland
$5k MIGP Business Succession Workshops - Mid Iowa Growth Partnership
$5k SW Grow Food Farmers – Wallace Center for Rural Research-SWICO
$5k Home Business Network - Prairie Partners RC&D
$5k MyEntrenet Community Incentive – Obrien & Adams Counties
$5k Sigourney Entrepreneur Charter School - Sigourney School District
$5k High School Business Plan Competition – Univ. of IA Pappajohn Center

Hamilton moved approval for the seven projects and committee recommended allocations that total $40,000 for this budget initiative, Barnes seconded. The motion was passed without opposition.

Community Philanthropy Initiative

Hamilton presented information on the web site front page project of three community affiliate foundations. The purpose of the project is to provide local flexibility in design of web pages. This project is also designed to facilitate online “donate now” information for out of state donors. Story County’s site was offered as a potential model to consider. The opportunity to use this tool will be offered for little or no cost to others who wish to use the model.

Edelman outlined the Philanthropy Committee budget recommendations. Skora abstained from discussion and voting on this issue due to a potential conflict of interest.

Four pilot projects at $7,500 each were proposed as co-sponsorship with the $2,500 to be provided by the Iowa Council on Foundations for enhancing local community philanthropic capacity and a local match of $10,000 for each project. Philanthropy coordination and the development of a website was allocated up to $15,000. In addition, $5,000 was recommended for continuing the Philanthropy Success Story and Best Practice Awards. Wells moved the motion to accept the committee’s $50K recommendation. Petersen seconded. The motion passed with no opposition

Approval of Budget Recommendations

A final motion was made to approve the overall budget, seconded and passed without opposition.

Philanthropy Awards

Three recommendations were made for awards. Greene County, Story County and Ida County. A fourth award to Clayton County was contingent upon further submission of information to the philanthropy committee. Wells moved to accept the award recommendations subject to approval of satisfactory information from Clayton County. Ehrig seconded. The motion passed with without opposition.

Philanthropy Academy

The agenda for the Philanthropy Academy to be held on February 4, 2008 is being finalized. Nancy Straw and Maxine Moul will be the keynote speakers discussing how philanthropy supports entrepreneurship and economic development in Nebraska and Minnesota.

Board Meeting Calendar and Updates

The next board meeting will be in April. A date and location will be finalized however it was proposed the meeting be held in Sigourney and will coincide with a visit to the Rural Entrepreneurial Charter School.

Edelman reported that Severin Roberts has resigned from CVC’s board.

Meeting adjourned. 2:30 PM