SAN ANTONIO FOR GROWTH ON THE EASTSIDE 2014 ANNUAL REPORT
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1 SAN ANTONIO FOR GROWTH ON THE EASTSIDE 2014 ANNUAL REPORT
2 2014 was a year of putting key building blocks into place to support community revitalization
3 FROM THE BOARD CHAIR & EXECUTIVE DIRECTOR For SAGE, and for the Eastside, 2014 was a year of putting key building blocks into place to support community revitalization. The process began in January, when San Antonio s Eastside was designated as one of five initial Promise Zones in the U.S. by the White House. The Promise Zone designation provides tools and resources to help the City implement more than $50 million in recent federal Choice and Promise Neighborhood Grants, which focus on improving educational opportunities and supporting healthy neighborhoods on the Eastside. The City of San Antonio, which committed almost $20 million to leverage the federal funding, established the Office of EastPoint in 2014 to coordinate revitalization efforts. SAGE, working in partnership with the San Antonio Housing Authority, United Way, the City and other partners, is leading economic development initiatives within the Promise Zone. To establish a foundation for sustainable revitalization efforts, SAGE began laying the groundwork to develop a Master Economic Development Strategy for the Eastside Promise Zone, after being awarded a $500,000 grant from the U.S. Economic Development Administration. Other building blocks put into place by SAGE included two new financial assistance programs to help businesses move to or expand within the Eastside Promise Zone. The SAGE Grow Eastside Fund is a $2 million revolving loan fund developed in partnership with the National Development Council s Grow America Fund, with the financial support of local bank partners. In addition, a $740,000 grant from the U.S. Department of Health & Human Services provided seed capital to create the SAGE Equity Fund, which makes equity investments in Eastside businesses to support job creation. These new programs join the established SAGE Store-Front Grant Program, which made 10 matching grants in 2014 to help businesses improve their properties, bringing the total number of Store-Front Grants to 48 since the program began in
4 FROM THE BOARD CHAIR & EXECUTIVE DIRECTOR In addition to financial assistance, SAGE expanded efforts to serve as a resource for Eastside businesses. We hosted a well-received Promise Zone 101 conference and continued our quarterly Eastside Business Briefings to share information and connect businesses with available resources. We also continued to work to market the Eastside, launching the Eastside Business Awards, which recognized deserving businesses in five categories. To continue to raise the profile of SAGE, and to signal the growth and energy that these new programs represent, SAGE introduced a vibrant new logo and branding for the organization during Supporting these new initiatives also called for building capacity within the organization. This included the addition of several new staff members to coordinate programs, as well as a move to larger office space within the Beacon Light Lodge Building, located in the historic Ellis Alley Enclave which was rehabilitated by VIA Metropolitan Transit. Looking to the future, SAGE will add additional building blocks to this foundation, including partnering on initiatives that create the neighborhood and community capacity required to sustain revitalization efforts for the Eastside. As always, we recognize that the key to building long-term success lies in maintaining strong partnerships, with other community organizations, with our board members and sponsors, and with the City of San Antonio. JELYNNE LEBLANC BURLEY Board Chair JACKIE GORMAN Executive Director 4
5 2014 EXECUTIVE COMMITTEE & BOARD MEMBERS JELYNNE LEBLANC BURLEY Board Chair Executive Vice President & Chief Administrative Office, CPS Energy BOBBY PEREZ Vice Chair Sr. Vice President, General Counsel & Corporate Relations, Spurs Sports & Entertainment ED WHITE, JR. Treasurer Market Executive, BB&T JUAN GARCIA Secretary President, Dignowity Hill Neighborhood Association 5
6 2014 EXECUTIVE COMMITTEE & BOARD MEMBERS DR. PATRICIA ADAMS Member CEO, Zeitgeist Expressions, Inc. JIM CALHOUN Member General Manager, Walton Manufacturing REV. DR. ROBERT JEMERSON, SR. Member Pastor, Second Baptist Church RICHARD LEAL Member Founder, Atlas Body Shop MARQUES MITCHELL Member Local Business Development Representative, KAI Texas DR. ADENA WILLIAMS LOSTON Member President, St. Philip s College MARK WITTIG Member President, Wittig s Office Furniture 6
7 SAGE 2014 SERVICE AREA LMOS PARK H I L D E BR A N D AV E SAN PEDRO B A S S E R D 281 NEW BRAUNFELS AVE ALAMO HEIGHTS TERRELL HILLS B R O A D WAY NEW BRAUNFELS AVE R I T T I M A N R D FORT SAM HOUSTON WINDCREST 7 8 S E G U I N R D K IRBY The SAGE Service Area was re-drawn in 2014 to align with the Eastside Promise Zone designated by the White House in January. The Eastside Promise Zone includes the Eastside Promise Neighborhood and the Choice Neighborhood, as well as EastPoint, the four-square-mile footprint where the two federal grant neighborhoods overlap. M A RY S S T S T S P R E S A S T E H O U S T O N S T N HACKBERRY ST I O WA S T WALTERS ST AT & T CE N T E R P K W Y E C O M M E R C E S T M L K D R G E M B L E R R D W W WHITE RD MARTINDALE ARMY A IR F IELD S T H E D W I G R D S G E V E R S S T EY P E CA N VAL L R I G SB Y 10 SAGE Service Area / Promise Zone Eastside Promise Neighborhood Choice Neighborhood EPN/CN Overlap G O L I A D R D E S O UT H C R O S S S B LV D DR The SAGE Service Area has been re-drawn to align with the Eastside Promise Zone designated by the White House in January of
8 BUILDING ON SUCCESS Attendees at the SAGE Promise Zone 101 conference learned how to access opportunities and resources available through the Eastside Promise Zone. SAGE celebrated the move to expanded office space in the historic Beacon Lodge Building in VIA s Ellis Alley Enclave redevelopment. Community leaders joined the San Antonio Housing Authority in marking the start of demolition of the former Wheatley Courts to make way for new mixed-income housing as the centerpiece of the Choice Neighborhood Initiative. The Eastside community celebrated the introduction of EastPoint, the four-squaremile area within the Eastside Promise Zone where the Choice and Promise Neighborhoods overlap. 8
9 BUILDING ON SUCCESS, CONT D The list of activities around San Antonio s MLK March continued to grow during DreamWeek Winners of the inaugural Eastside Business Awards were recognized at a SAGE Eastside Business Briefing. SAGE and the Eastside celebrated success in several areas in The Alamo Beer Company invited the community to celebrate the completion of its new brewery on the Eastside. The Cherry Street Modern was one of several new residential developments underway on the Eastside in
10 A FOUNDATION FOR ECONOMIC REVITALIZATION THE EASTSIDE PROMISE ZONE ECONOMIC DEVELOPMENT PLAN SAGE was awarded a $500,000 grant from the Economic Development Administration in 2014 to support a new initiative to develop an Eastside Promise Zone economic development strategy, and to implement initiatives identified within the plan. The goal is to provide a roadmap for catalytic development that will create jobs and provide opportunities for growth for existing and new businesses. Specifically, funding will be used to identify opportunities, supported with economic feasibility scenarios, for developing mixed-use, transit-oriented development projects within the Promise Zone. The focus in on formulating and implementing an economic development program that puts in place systematic efforts to reduce unemployment and increase incomes. The SAGE Promise Zone 101 Conference was the forum for more good news: an announcement by the Economic Development Administration that SAGE was awarded a $500,000 grant to support development of the Eastside Promise Zone Economic Development Plan. 10
11 THE EASTSIDE PROMISE ZONE The designation of the Eastside Promise Zone in January of 2014 brought new attention to the three building blocks that are critical to an integrated approach to community revitalization. Economic development, education and housing are the three pillars that support a firm foundation for revitalization, operating in balance like a three-legged stool. These issues are being addressed in an integrated way during the implementation phase of more than $50 million in federal grants: the Eastside Promise Neighborhood Grant from the Department of Education, and the Choice Neighborhood Grant from the Department of Housing and Urban Development. The City of San Antonio leveraged these federal dollars with almost $20 million in local funds, and established the EastPoint Office to coordinate efforts. While SAGE focuses on spearheading economic development initiatives for the Eastside, it works with other community partners that are leading initiatives in the areas of education and housing. 11
12 THE EASTSIDE PROMISE ZONE Economic Development: SAGE was awarded a $500,000 grant from the Economic Development Administration to develop the Eastside Promise Zone Economic Development Plan, partnered with the National Development Council s Grow America Fund to establish the SAGE Grow Eastside Fund, and received $740,000 in seed capital from U.S. Department of Health and Human Services Community Economic Development Program to create the SAGE Equity Fund. Housing: The San Antonio Housing Authority and the City of San Antonio are spearheading the Choice Neighborhood transformation, including its signature project, new mixed-income housing to replace the former Wheatley Courts, where demolition work began in SAGE led development of the economic development plan for the Choice Neighborhood, and supports and promotes private development and in-fill housing, with several projects underway in Education: The United Way, the San Antonio Independent School District and the City of San Antonio are spearheading efforts to create cradle to career educational opportunities in the Eastside Promise Neighborhood. Progress in 2014 included rising high school graduation rates, the implementation of new STEM programs, and new initiatives at Wheatley Middle School and St. Philip s College. ECONOMIC DEVELOPMENT EDUCATION HOUSING 12
13 BUILDING BLOCKS FOR ECONOMIC DEVELOPMENT THE SAGE GROW EASTSIDE FUND The SAGE Grow Eastside Fund was created in 2014 as a $2 million revolving loan fund. It is operated by SAGE in partnership with the National Development Council s Grow America Fund, with additional funding provided by local bank partners. The goal is to spur economic development in the Eastside Promise Zone by offering below-market-rate loans to business that locate or expand within the targeted area. Along with lower interest rates, SAGE Grow Eastside Fund loans offer longer terms, lower down payments and a more favorable loan structure. Loans will typically range from $250,000 - $500,000. SAGE also announced a partnership with LiftFund (formerly Accion), which has committed $750,000 for micro and small business loans ranging from $500-$250,000 in the Promise Zone footprint. Funds can be used in a number of ways, including to: SAGE Grow Eastside Fund Partners: Purchase land or buildings Fund new construction or expansion or conversion of existing facilities Purchase equipment, machinery, furniture, fixtures or supplies Obtain long-term permanent working capital Refinance existing business indebtedness 13
14 BUILDING BLOCKS FOR ECONOMIC DEVELOPMENT THE SAGE EQUITY FUND A $740,000 grant from the U.S. Department of Health and Human Services Community Economic Development Program in 2014 provided the seed capital to establish the SAGE Equity Fund. Operating like a venture capital fund, it will make equity investments in businesses that are expanding or locating in the Eastside Promise Zone. The equity investments made by the fund will provide new opportunities for Eastside businesses and support job growth. To qualify, companies must commit to creating at least one new full-time job for every $10,000 SAGE invests in the business, with at least 75% of the jobs created going to certified low-income families. SAGE Equity Fund investments can be used to: Support the purchase or renovation of facilities Acquire new equipment or technology Increase sales or marketing efforts Expand operations and staffing Other areas needed to grow 14
15 BUILDING BLOCKS FOR ECONOMIC DEVELOPMENT SAGE STORE-FRONT GRANT PROGRAM To support the revitalization of Eastside commercial corridors, the SAGE Store-Front Grant Program provides qualified Eastside business owners with matching grants of up to $10,000 to improve the exteriors of their properties. To qualify, applicants must own the building they are planning to renovate, and must match Store-Front Grant funds dollar-for-dollar. Grants are awarded only for renovation of commercial properties that are located within the SAGE service area, and that are zoned appropriately for the proposed use. Since it was established in 2010, the SAGE Store-Front Grant Program has awarded 48 grants. The program awarded 10 grants in
16 BUILDING BLOCKS FOR ECONOMIC DEVELOPMENT STORE-FRONT GRANT RECIPIENT Beacons 321 N. New Braunfels Central Texas Express Metalwork, LLC 420 Milam Chas Supermarket 1431 N. Pine East San Antonio Medical Center 1954 E Houston Mesa Blanca, LLC 1320 E. Houston Prince Enterprises 3003 Martin Luther King Signature Photography 217 Casa Blanca Smart Shop 304 S. New Braunfels The Medicine Shoppe Pharmacy 2004 E. Houston Valla Construction 1232 N. Hackberry USE OF GRANT Third-generation, family-owned clothing store repainted the exterior and re-paved the parking lot. Steel fabricator business demolished an existing structure, constructed a new building and created additional parking. Market and take-out kitchen repaired the parking lot and upgraded interior and exterior lighting. Medical office center installed new signage and lighting and renovated the parking lot. Douglas Architects did external renovations and landscaping. Repaired the roof and parking lot, painted the exterior and improved lighting. Photography studio repaired the foundation, replaced the roof and windows, upgraded landscaping. Demolished existing structure and constructed new building. Neighborhood pharmacy painted exterior, replaced signage, coated parking lot with asphalt, installed lighting. General contractor firm repaired roof and parking lot, painted exterior, installed lighting and landscaping. 16
17 BUILDING THE FUTURE Building on a strategic planning effort that began in 2013, the SAGE Board of Directors refined the organization s Mission and Vision statements, aligning them with the strategic direction identified in the plan. SAGE Mission Statement SAGE champions development that benefits the quality of life for individuals, families, neighborhoods and businesses on San Antonio s Eastside. SAGE Vision Statement Our goal is to be a multi-faceted community development organization that is the go-to agency for Eastside revitalization. We envision the Eastside as a flourishing and sustainable community, with diverse and engaged neighborhoods and vibrant, exciting destinations with swag. SAGE Strategic Direction Catalyzing Eastside developments and investments Engaging stakeholders and marketing the Eastside Expanding SAGE s capacity Developing and empowering neighborhood leaders 17
18 2014 AUDITED FINANCIALS 7.42% MISCELLANEOUS 19.51% PROMISE ZONE ECONOMIC DEVELOPMENT PLAN 22.97% CONTRIBUTIONS 25.38% FINANCIAL ASSISTANCE PROGRAMS 69.61% GRANTS/CONTRACTS 61.55% PROGRAM SUPPORT 16.30% GENERAL & ADMINISTRATIVE SOURCES OF FUNDING $620,128 Contributions: $142, % Grants/Contracts: $431, % Special Events/Miscellaneous: $ 46, % EXPENSES $556,915 Financial Assistance Programs $141, % Promise Zone Economic Development Plan: $108, % Program Support: $216, % General & Administrative: $90, % 18
19 SAN ANTONIO FOR GROWTH ON THE EASTSIDE 220 Chestnut, San Antonio, Texas Ph: ; Fax: sagesanantionio.org
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