Community Vitality Center Board Minutes

January 6, 2010
468D Heady Hall, Iowa State University, Ames, IA

Members Roll Call; 16 present 

Staff and Guests in attendance - 3

Craig Downs, Sandra Burke, Mark Edelman

Meeting called to order by Mark Hamilton substituting for Board Chair Carol Smith at 10:10 AM.  Minutes from the Oct 20th, 2009 Board meeting were distributed and Hamilton asked for comments or corrections.  Motion made by Jane Halliburton and seconded by Rand Fisher to adopt minutes as presented.  No further discussion, motion carried unanimously.

Mark Edelman reported that he received a letter in December from the USDA that the proposal for the CVC grant would need to be submitted by January 19th, much earlier than usual.  Thus this Board meeting was moved up and the main order of business today would be to make recommendations on funding requests to be included in the CVC grant.  Fisher asked about the carryover of funds if not spent by the end of the grant year.  Edelman said that the grant proposal is for the set amount of dollars and the recommended projects are incorporated into the grant proposal.  Once the money is received by ISU there can be three years to expend the funds.  Getting an extension after the first year is fairly easy; after a second year there has to be an extension request with a justification included.  Funds cannot be reassigned to other projects without seeking USDA approval and revising subcontracts that have been executed.

Craig Downs gave the IFMCV report.  A one page annual report has been included with the Board materials.  The IFMCV relocated to a storefront office in downtown Boone from Craig’s home.  Credit bureaus require a storefront for public access in order for IFMCV to be a credit reporting entity and they do a site visit as part of their due diligence.  Goals for 2010 involve establishing the Main Street Development Pilot Microfinance Project with IDED for nine Iowa Main Street communities.  Downs and Edelman met with the state Community Action Agency group; they may have some interest in becoming a possible affiliate.  Also met with other groups to discuss collaborations: SBDCs, IA Energy Group, Wells Fargo and the City of Davenport.  There will be a need this year to reapply for an additional $750,000 SBA Revolving Microloan fund.  SBA has expressed some concern that using an independent contractor for a loan administrator is not consistent with SBA Microloan rules, therefore IFMCV will likely need to convert the Loan Administrator to an employee position to remain in good standing. 

Edelman reported on the CVC’s technical assistance coordination.  An academy was held on December 18th for the TA coaches and groups.  Since Ron Prescott has now gone to Ghana full-time, another person is needed for the TA coordination.  Mary Weinand, is an ISU Extenson Specialist in Southeast Iowa who has an MBA and has done a lot of entrepreneurial development work and credit repair workshops.   Prescott’s contract with the Millennium fund will generate enough revenue to help fund a graduate student who is going to assist Dan Otto with the tax facts project.  Two letters of understanding, one between the IFMCV and CVC regarding technical assistance and the other between CVC, ISU Extension and Weinand regarding a buyout of 25% of her time plus an ISU Extension match up to an additional 25% were presented to the Board for discussion and action.  Fisher moved to go forward with the letter of understanding with the IFMCV and also with the letter for Mary Weinand pending they are approved at the January 21st IFMCV Board meeting.  Curt Heidt seconded.  No further discussion; motion carried unanimously.

The Microtest evaluation will be a part of what the CVC is doing for the IFMCV letter of understanding.  Sandra Burke gave an overview of the Microtest program.  Burt Chojnowski added discussion regarding the potential offering of a microenterprise academy. 

Edelman proceeded to a discussion of the minigrant project requests.  Each project has been reviewed by a Board member and rated.  The ratings are tallied on a summary sheet.  Edelman said he had received one more set of reviews and those ratings were added to the summary score sheet.  Edelman said that although the averages would change a bit, there were no changes in his director’s recommendations from what he had sent out with the second set.  There was consensus to have discussion for all the projects before voting on any of them.  Hamilton asked for comments on projects.

Project 1, National Policy Education Agenda (NPEA) Web Site Project.  There was discussion that this project was a duplication of other information and web sites.  This project would develop a collaboration with a national network and is not restricted to focus on Iowa community development.  The focus is on broader rural and agricultural policy.

Project 2, National Main Street Development Microfinance Pilot Project.  Had funded last year at $5,000.  Had lots of activity but not yet spent the money because was mainly preparatory work.  Sandy Ehrig, Fisher, and others spoke in support of this project. 

Project 3, Midwest RBIC/SBIC/CDFI Business Plan Development Project.  Support for this concept grows out of the expressions of need for equity capital as expressed in the CVC survey with Iowa Bankers, 3 Regional Councils of Governments, and representatives of the 3 New Market Tax Credit CDEs operating in Iowa.

Project 4. Co-Sponsorship of SBDC NxLeveL Classes.   Ehrig said this appears to be a good educational too.  Bonnie Meier also spoke in support.

Project 5, Iowa Energy Microfinance Demonstration.   Fisher commented that the project looks like one that is under development and perhaps should be focused on microfinance.  Chojnowski said that this was an evolving project but one that is important to participate in.

Project 6, Local Food Systems Microfinance Initiative.  Comment that this getting a grant writer.  Ehrig said that this was an idea, not a project.  There could be a steering committee to oversee this without putting funds to the project.

Project 7, Iowa Migration: Recession, Floods, and Tornados.  Burke presented a proposal to raise funds for conducting a statewide migration study similar to the new movers study.

Short break for lunch.

Project 8, Great River Region Microenterprise Development Project.  Could be used to establish the region as a microenterprise affiliate but would discourage project from duplicating MyEntrenet activities.   

Project 9, Put a “Face” to Local Food.  Comment that perhaps was nothing new, kids growing food.  Others said that perhaps no other resources in the region as few projects have been proposed from NW Iowa.  Could be focused on teaching them to be business people?  Could encourage project to include business/microenterprise in the project. 

Project 10, Pathfinders Food and Energy Demonstration.  Favorable comments for project as it focuses on local food and energy which are important initiatives locally as well as at the state and national level. 
Project 11, Iowa County Exploring Entrepreneurial Initiatives.  Iowa County community leaders have not worked well together in the past but have come together county wide on entrepreneurship and they are in a situation where the have lost some major employers in the county.

Project 12, Villisca New Horizons.  Comment that this project was trying to do what was already being done regionally.  But liked the focus on youth entrepreneurship and thought seemed to be a lot like what was done in Sigourney.  Could perhaps add a stipulation that the project coordinate with other schools.  A suggestion that could perhaps reframe this project, but Edelman said there wasn’t enough time to reframe, just could only make a few editorial changes.

Project 13, West Liberty Regional Technology Center.  Concern expressed that this project hadn’t really settled a lot of details.  But several scored it high and liked it.  The group has talked with Sigourney.  This project could also have a diversity focus. 

Fisher commented that in future there might be a more focused effort to solicit proposals.  Perhaps there could be a specific set of areas of targeted interest.  There remains a problem in getting the information out to really grassroots organizations and people.  Edelman said that in the past he had done an email newsletter that went out to 3000 local leaders, but as spam developed, changes in university policy made such efforts less cost effective.  Jim Erb suggested that to find areas for projects it would be useful to look back at previously funded projects and evaluate what had been successful.  Edelman suggested that this would be a good discussion to bring to the next Board meeting.

Hamilton asked for motions concerning the projects. 

Project 1, National Policy Education Agenda (NPEA) Web Site Project.  Ehrig moved to not fund project 1; seconded by Heidt.  Motion carried with Mike Wells voting no.

Project 2, National Main Street Development Microfinance Pilot Project.  Chojnowski moved to fund project 2; seconded by Fisher.  Motion carried unanimously with Heidt abstaining.

Project 3, Midwest RBIC/SBIC Business Plan Development Project.  Wells moved to fund project 3; seconded by Chojnowski.  No further discussion.  Motion carried with Hamilton and Fisher voting no.

Project 4, Sponsorship of NxLeveL Classes.  Pantini moved to fund project 4; seconded by Meier.  Motion carried unanimously.

Project 5, Iowa Energy Microfinance Demonstration.  Chojnowski moved to fund project 5 but as earmarked to keep the project focused on microfinance as suggested by Fisher; seconded by Heidt.  Motion carried unanimously.

Project 6, Local Food Systems Microfinance Initiative.  Chojnowski moved to fund project 6 for $5,000 and to earmark it for a microfinance focus; seconded by Heidt.  Motion carried with Hamilton and Wells voting no.  Motion carried.

Project 7, Iowa Migration: Recession, Floods, and Tornados.  Wells moved to fund project 7 for $5,000; seconded by Chojnowski.  Fished commented that census information and demographics can drive better decision making.  Motion carried unanimously.

Project 8, Great River Region Microenterprise Development Project.  Chojnowski moved to approve project 8 for $5,000 and to connect it to microenterprise; seconded by Ed Raber.  Morain said that if there was disagreement with the amount of money allotted in the motion then that would mean voting no on the motion.  Motion carried with Erb voting no. 

Project 9, Put a “Face” to Local Food.  Raber moved to approve project 9 for $10,000 with the stipulation that there be a focus on entrepreneurial education; seconded by Heidt.  Motion carried unanimously with Meier abstaining.

Project 10, Pathfinders Food and Energy Demonstration.  Wells moved to approve project 10 for $10,000; seconded by Heidt.  Motion carried unanimously with Chojnowski abstaining.

Project 11, Iowa County Exploring Entrepreneurial Initiatives.  Heidt moved to approve project 11 for $10,000; seconded by Halliburton.  Chojnowski moved to amend the motion to approve project but only for $5,000;  Pantini seconded the amendment.  Amendment failed.  Motion carried with Erb voting no.

Project 12, Villisca New Horizons.  Wells moved to approve project 12 for $5,000 with the stipulation that they collaborate with others in the area; seconded by Chojnowski.  Motion carried with Pantini voting no.

Project 13, West Liberty Regional Technology Center.  Chojnowski moved to approve project 13 for $5,000 with the stipulation that it be more entrepreneurial and that they build a relationship with Keokuk County and Sigourney; seconded by Raber.  Motion carried with Heidt voting no.

The motions to approve projects 2, 3, 4, and 5 did not give funding amounts.  Chojnowski moved to fund projects 2, 3, 4, and 5 at the director recommended amounts of $10,000 each; Raber seconded.  Motion carried unanimously.

The budget for projects approved totaled $95,000 with $5,000 remaining.  Chojnowski moved to allocate the remaining $5,000 to support a Microenterprise academy in Iowa; Heidt seconded.  Fisher said that there were many requests that came for funding conferences and he was unsure of the value of funding something else.  Ehrig agreed with Fisher.  It was noted that the tax credits for philanthropy were not fully utilized in 2009.  Susan Skora said there had been a decrease in endowment giving in 08-09.  Motion failed.  Fisher moved to reserve the $5,000 to be used at the future discretion of the CVC Board; Raber seconded.  Motion carried unanimously.

Edelman said that the CVC budget for operations is $58,000. The IFMCV allocation is $58,000 plus the additional $5,000 the Board redirected to IFMCV for an energy pilot for a total equaling $63,000.  .  Chojnowski moved to approve the amounts for the operating budget and for the IFMCV; seconded by Heidt.  Motion carried unanimously.

Next CVC Board meeting tentatively set for April 28th.  Ehrig moved to adjourn; seconded by Halliburton.  Adjourned.