SMALL BUSIN ESSES U7 project / small business along the green line along the 2013 GREEN LINE Providing a model for vulnerable corridors to sur vive any major infrastructure project The U7 Project • April, 2013 • Saint Paul, Minnesota small businesses along the GREEN LINE Table of Contents Introduction…………………………………………….…....…... 1 Glossary of Terms…………………………………………...….. 7 U7 People and Partners……………………………….....……..... 8 Case Studies May’s Market………………………………………....……........ 9 Master Framers…………………………………........................ 11 Foundations Health Career Academy…………..….......…........... 13 Thai Café……………………………………………...……....... 15 Mi Linda Tierra…………………………………..…................... 17 Embodied Health……………………………..…….....…........... 19 University Furniture………………………………….................. 21 Ultimate Look…………………………………..……...….......... 23 Flamingo Restaurant…………………………………..…........... 25 Ha Tien Grocery and Deli…………............................................. 27 Capital City Auto Electric……………………………….............. 29 Ashama Grocery and Meat & Ashama Auto Repair....................... 31 Universal Hair and Travel…………………....……...……........... 33 Big Daddy’s Old Fashioned Barbeque.....……….....……............. 35 Transformation Salon……………………………..…...….......... 37 East African Bakery………………………………..….…........... 39 Introduction HISTORICAL BACKGROUND (The Green Line/Central Corridor - St. Paul, MN) small business profile / light rail infomation A major section of the Central Corridor, University Avenue, was the early to mid-20th-century thoroughfare connecting Minnesota’s two major cities: St. Paul and Minneapolis. It was an entertainment and retail destination as well as a major industrial corridor. Everything from Model T’s to airplanes, caskets to refrigerators was built along the avenue. It had a welldeveloped streetcar system that residents used to shop, work, and play. Soon after World War II, those tracks were pulled out and the newly-built Highway 94 carried much of the east-west traffic from then on. The face of University Avenue and its businesses changed from the inevitable march of progress. 1 The 11-mile-long Green Line links five major centers of activity within the Twin Cities region: DOWNTOWN MINNEAPOLIS, THE UNIVERSITY OF MINNESOTA, THE MIDWAY AREA, THE STATE CAPITOL COMPLEX, AND DOWNTOWN ST. PAUL. The corridor represents an estimated 280,000 jobs. BUILDING A TRANSIT SYSTEM Today, the Twin Cities have the 16th largest metropolitan population in the United States. Still vibrant, the faces and businesses along University Avenue have changed dramatically from a half-century ago with the arrival of immigrants from Africa and Southeast Asia. Yet for its size, and considering the success of its global business climate, the Twin Cities currently can claim only a few miles of light rail (LRT) or commuter rail tracks. The Green Line will connect with the existing Hiawatha Line, also known as The Blue Line, at the Metrodome station and will terminate at the Minneapolis MultiModal station. This station will also serve as the base for the new Northstar Commuter rail line which runs to South Central Minnesota. LIGHT RAIL TIME LINE: • June 2006 The Metropolitan Council approves construction of the Central Corridor Light Rail Transit Line, also known as the Green Line. • March 2010 Construction began • December 2012 Heavy construction concluded • Spring 2014 First train expected to run small business profile / light rail information 2 THE GREEN LINE [Central Corridor Light Rail Line] MAP STATION AREAS & CULTURAL DISTRICTS tS tC ta en Ea tio te st n /M rS ta et ro tio n do m Ea e St st at B io an n St k St St ad a t iu at io io m n n V ill ag e 394 CENTRAL STOPS & n n en l tio a St nt ow D ow G ov o tM al nm ST ic N lle er H 5T ar l thst Rai Nor uter m Com t n tr ic is D ou se eh n lis W ar in M 94 po a e u M M lti lS a od io at HINGTO WAS Hi a Downtown Minneapolis 280 35W wa 29th Ave Station Westgate Station N AVE th a T LR Raymond Ave Station A w e i UN IVE irv RS Fa ITY S West Bank Station M 55 IS SI SS IP MINNEAPOLIS PI AV E RI VE R S KEY Rail Line Downtown / Lowertown U7 Service Area Creative Enterprise Zone Central Corridor Station 00 .5 11 .5 Rondo Historic District U7 Service Area Existing Hiawatha Station Little Mekong 2 Existing Hiawatha Station Miles Little Africa Capital Area, Architectural Zone University-Raymond Commercial Heritage Preservation District Creative Enterprise Zone Downtown / Low Capital Area, Ar Little Mekong University-Raym Heritage Preser Rail Line Series: 01_overview_color2 Rondo Historic Central Corridor Station 0 0.5 1 1.5 2 Miles 3 Series: 01_overview_color2 Little Africa OTHER GREEN LINE DETAILS: • Trains: 31 new light rail transit vehicles, each with 66 seats and comfortable standing room for an additional 70 people • Stations: 18 new stations, plus five stations shared with the Hiawatha Line in Downtown Minneapolis (see map of the Central Corridor LRT route) • Service: Trains operating every 7 1/2 minutes during peak travel periods, with a travel time of 39 minutes between Downtown St. Paul and Downtown Minneapolis • Projected Weekday Ridership: More than 40,000 by 2030 • Cost: $957 million CENTRAL CORRIDOR LIGHT RAIL LINE [green line] STOPS & CULTURAL DISTRICTS Lining the corridor by the hundreds are small, ethnic “Ma and Pa” businesses tion ate Station 35E n o n i n tio tat atio on n ation i a S t t o t i S y ta Raymond Ave Station S n tat e St kw ve ve o S eS i io n P t A t v v A e a a A n t A v n t ia t S ster tS ew g A line ingto ctor i S S n NIV v e i e State Capitol ir le Vi W ER ell Ham Lex Fa SIT Da Ric Sn YA VE Downtown/Lowertown n o St. Paul a ti n t t S tio n as ta io E R t SStat on ol t i S IVE t i p R t t h a I t a S o P C 10 6th St SIP ep r S D I S da io n n n Ce U a tio & t St hS R DA CE 94 ST M IS ST PAUL Rondo Historic District Downtown / Lowertown Capital Area, Architectural Zone 4t 4 U7 MISSION: SURVIVE AND THRIVE St. Paul Mayor Chris Coleman charged Mihailo Temali, CEO of Neighborhood Development Center (NDC), with executing this mission. NDC invited a group of seven community development organizations to form the University Avenue Business Preparation Collaborative (U7). Each par tner had a long, successful history of suppor ting the growth and development of small businesses, collectively originating over 800 loans to over 700 small businesses. Together, these loans represented capital of over $10 million. These members also provided over 28,000 hours of technical assistance to more than 1,200 small businesses. Many Minnesotans — including city planners, environmentalists, and citizens — believe that public transportation is a logical course for the state’s major cities. Yet unless a project of this nature is builton a new or abandoned road, businesses are likely to suffer due to disruption from construction and loss of parking. And University Avenue, home of independent and family run shops, many of which are owned by Minnesota’s newest immigrants, was on fragile footing to begin with due to the recession. In the early stages, planners knew that this project would be a delicate operation; in addition to construction, it was critical to keep existing small businesses surviving and thriving before, during, and after the Central Corridor Light Rail project. small business profile / about u7 & profile project Lining the corridor by the hundreds, are the small, ethnic “Ma and Pa” businesses that make up The Green Line today. With this in mind, it was the strong belief of each par tnering organization that it would take a two-part equation to achieve the best possible results: 5 1. repare each business owner, with P help from U7 and other business suppor t providers, with careful financial planning, expansion of a customer base, and an increase in sales through more effective marketing before LRT. These improvements would create financial reserves prior to the expected drop in sales due to the inability to reach customers. In addition, it would generate sales even during the construction. 2. rovide additional solutions by P Metropolitan Council and other government entities. The on-street parking losses, decreased customer access, and predicted loss of sales during and after construction would, in some cases, be so extreme that individual business owners would need access to well-funded loans and grants in order to ride out the construction storm. ABOUT THIS PROJECT The following essays profile 16 such Green Line businesses. All are small and independently owned; all felt the effects of light rail construction and all have received some level of assistance from U7. These individuals represent the diversity that make up the face, economic hear t, and social vitality that University Avenue is today. There are seven women and ten men: two Hispanics owners (a couple), four Asian owners, three African owners, four Caucasian owners, and four African-American owners with storefronts that span the Green Line from Lower town/Downtown St. Paul to Highway 280. These storefronts include four hair salons, three markets, a furniture store, a framing shop, a restaurant, a yoga studio, a bakery, an automotive shop, and a health care academy. These owners were asked about their history as business owners, the effect of light rail construction on their bottom line, how they met representatives from U7, what services they were provided, and how those services made a difference in their ability to stay alive during construction. Through a combination of business assistance from U7 and an enormous amount of perseverance, patience, and sweat equity, all that are profiled here have survived the worst of the construction — some better than others but all — with U7’s assistance — with a stronger infrastructure than when they went into construction. From the very start of this project, it has been U7’s goal to think of University Avenue and St. Paul Lowertown/ Downtown businesses through multiple lenses. Each business is unique, each claims its own distinct character, history, and needs. To this end, we believe we have made a positive impact on these businesses, and therefore the U7 mission has been a success. BUSINESS OWNERS CITED: ( about assistance from U7 ) • N ew logo, branding, marketing, and an understanding of social media • L oans that covered some or all of the losses suffered during construction, as well as loans for façade improvements, new parking lots, energy improvements, and business expansion •W orking with U7 Small Business Consultants (SBC) to learn new accounting systems, business management tools and financial record keeping. small business profile / about u7 & profile project •P rinted materials, such as flyers, menus, business cards, stationary, and wayfinding signs 6 Glossary of Terms U7 A group of seven community-based development nonprofits, formed in January 2008, to officially make up the University Avenue Business Preparation Collaborative (U7). The mission of U7 is to help existing small businesses “survive and thrive” before, during, and after construction of the Green Line through stronger management and marketing practices. Emphasis is placed on independent businesses within the areas of Rice Street to Emerald Street, and Lower town and Downtown in St. Paul. SBC A Small Business Consultant provides outreach and direct services (such as financial and accounting reviews and/or marketing recommendations) to small businesses along the Green Line. He/She coordinates with the U7 Graphic Design department to establish marketing, branding, and social media services. small business profile / about u7 & profile project NDC SMALL BUSINESS TRAINING 7 An 11-week course designed to help graduates of NDC’s small business training build vibrant practices that create employment opportunities, provide goods and services, serve as role models, and establish community gathering places that contribute to community revitalization. The program is offered in 20 neighborhoods and ethnic communities throughout the Minneapolis-St. Paul metro area and focuses on teaching entrepreneurs how to create a viable business plan. CITY OF ST. PAUL READY FOR RAIL FORGIVABLE LOAN Created to be a modest safety net for for-profit small businesses with no more than $2 million in annual gross sales and that show a loss in sales due to the construction of the Central Corridor Light Rail Transit Line. The forgivable loan may be used for basic business expenses, including payroll, inventory, rent/mor tgage, utilities, taxes, marketing, and insurance. Up to $20,000 is available per business. Distributions are structured as 0% loans that are forgiven at the rate of 20% for each year for a total of five years the business stays on the Central Corridor Light Rail Line. CITY OF ST. PAUL STAR (Sales Tax Revitalization) Neighborhood STAR awards loans and grants for capital improvement projects in St. Paul neighborhoods, and is funded with 50 percent of the sales tax proceeds. FACADE IMPROVEMENT MATCHING GRANT Funded by federal award and the City of Saint Paul’s 2010 Neighborhood STAR fund and Living Cities Grant dollars, these monies are used to provide oppor tunities for physical improvements and revitalization of commercial proper ties along University Avenue before, during, and after the Central Corridor Light Rail Transit (LRT) construction. METROPOLITAN COUNCIL The Metropolitan (Met) Council is the regional planning agency serving the Twin Cities seven-county metropolitan area and providing essential services to the region. The Council works with local communities to plan for future growth. The Met Council is the governing body of the Central Corridor/Green Line LRT project and provide key outreach staff to the project. SPARC Sparc collaborates with community members, developers, and organizations to provide services and plan for our neighborhoods’ future. LIVING CITIES Living Cities provided U7 with loans and a grant for facade improvement projects. Living Cities harnesses the collective power of philanthropy and financial institutions to improve low-income cities and the lives of the residents who live there. The Living Cities Loan fund is a new tool to help NDC achieve its mission and is a powerful tool for change. LIVING CITIES LOAN FUND PURPOSES: SMALL BUSINESS EXPANSION FUNDS SMALL BUSINESS BUILDING OWNERSHIP FUND Assists locally- and minority-owned small businesses in purchasing their own building for the sake of promoting a long-term presence along the corridor. NEIGHBORHOOD DEVELOPMENT CENTER President and CEO Mihailo Temali U7 PROJECT STAFF Project Manager Isabel Chanslor Small Business Consultants (SBC) Jason Allen, Maria Kuria** Sia Lo*, Marilyn Porter* and Pangia Vang NDC Loan Officers Perla Mayo and Sai Thao NDC Training and Communications Maren Misner* Design Team Ryan Kidder (Lead), Steve Olson* Kirsten Zache**, Kim Urban** and Nou Vang** Small Businesses on the Green Line Author Emily Blodgett** *former employees at U7 ** contractors U7 BOARD MEMBERS AND PARTNERS Gene Gegelu, African Economic Development Solutions Nieeta Presley, Aurora/St. Anthony NDC Jill Henricksen, Greater Frogtown CDC Dave Chapman, Metropolitan Consortium of Community Developers (MCCD) Matthew Ides, Sparc Mihailo Temali, Neighborhood Development Center President and CEO U7 FUNDERS Central Corridor Funders Collaborative The St. Paul Foundation F. R. Bigelow Foundation Small Business Administration Assistance Support (federal loan secured by U.S. Representative Betty McCollum) Living Cities Catalyst Fund and Facade Improvement Grant City of St. Paul STAR funds for Façade Improvement Program Business Resources Collaborative (BRC) CITY OF ST. PAUL Craig Blakely, Economic Development; Parking Improvements Nancy Homans, Policy Director; Ready for Rail Forgivable Loan Ellen Muller, Economic Development Manager, Ready for Rail Forgivable Loan Craig O’Brien, STAR program METROPOLITAN COUNCIL Robin Caufmann and Outreach Staff Metropolitan Council Central Corridor Project Offfice small business profile / Glossary and U7 People, Partners and Funders Assists a small, select group of targeted businesses on University Avenue who have a significant long-term growth oppor tunity and who can serve as a more visible anchor for the avenue, symbolizing the strong, longterm potential for ethnic and minority-owned businesses in this district. U7 PEOPLE, PARTNERS, AND FUNDERS 8 May Yang, left and his daughter Tiffany ay’s Market... is M the oldest Asian market in the Twin Cities. May’s Market 280 th a 35E T LR Rice St. wa 55 INGTON AVE Dale St. Hi a H WAS Business Location Lexingoton Ave. 377 University Avenue May Yang, Owner Snelling Ave. 35W R DA CE M located just east UN of the May’s Market, IS IVE SI State Capitol S Western Avenue SGreen Line stop, isRSIthe TY University Ave. IP AV PI oldest Asian market the Twin Cities. E Rin MINNEAPOLIS IV Downtown/Lowertown ER For 22 years, it has sold groceries, 94 St. Paul medicinal teas, and items for Asian ST PAUL celebrations. May’s carries hundreds R IVE IR of dried herbs that when properly P IP SS combined, will produce remedies that SI are thousands of years old, yet still in demand today. Many within the Asian including a non-profit, retail, service, and a restaurant. community use May’s Market as an apothecary for May purchased the building unaware of the impending medicine. If it is a complex remedy, May requires a light rail construction project. prescription from a Chinese herbalist. M IS ST May Vang, the Hmong owner, is patient with curious customers. He speaks English and Chinese, as well as some Thai and Laotian. May purchased the 18,500 square foot building on the corner of Western and University Avenue in 2005. He has multiple tenants, 9 The summer of 2012, was the most difficult time for him. University Avenue was torn up and Western was closed, making May’s Market nearly impossible to get to. In a normal month, May said his revenues averaged $18,000 to $19,000. During construction, he averaged about $13,000 — a 31% loss. MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 In 2010, May said that SBCs Sia Lo and Sai Thao stopped by to talk with him about the imminence of the light rail construction and to discuss the services U7 could provide to help him and the other small businesses in his building. He signed on eagerly and said he was open to any help they could offer. May said that U7 has been a consistent presence these last two years. Present SBC Pangia Vang stops by two to three times a month or “whenever I call.” May has received approximately 120 hours of services, most of which was financial and façade improvement advice. Other projects included: • Offering financial advice, and giving information about an inventory tracking program. May was told to collect e-mail addresses to contact his customers about detours and sales and specials within the market. • Consulting on local media advertising options. • H elping restructure his mortgage with his bank. Helping with loan application to the Small Business Administration. • P rovided a $60,000 façade grant and $50,000 Living Cities loan from NDC. These loans enabled him to upgrade his façade with new exterior signage reflecting the Little Mekong district design guidelines In fact, the May’s Market project has served as a model for Little Mekong and other cultural districts along the corridor. The façade project improved the signage and windows for several businesses located in May’s building: a grocery store, a tax office, a hair salon, a non-profit organization, and a restaurant. • Facilitating a Ready for Rail Forgivable Loan, which went toward business expenses incurred during construction. • Designing a new simplified logo. He and U7 are in the process of launching a May’s Market website. Though May saw a decrease in revenue during construction, the uniqueness of his store, his stature in the community, and the services he received through U7 has given him confidence that he will thrive. The loans U7 helped facilitate to increase his property values, and May’s investment in both his business and his tenants, has far reaching implications for how businesses in economic distress and in a cultural district can survive a major infrastructure project. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL After initial hesitation about the project, May is excited about the prospect of a train stopping right outside his door. He hopes that a more ethnically and regionally diverse crowd will discover his shop and be interested in the herbal medicines and products May’s Market has to offer. After more than two decades and a challenging construction project, May is confident that May’s Market can survive anything now. small business profile / may’s market THE BOTTOM LINE 10 Business Location th a T LR M IS SI UN IVE RS ITY AV E State Capitol University Ave. Downtown/Lowertown St. Paul 94 R DA CE 262 E. Fourth Street PI RI MINNEAPOLIS VE Owner Roger Nielson, R SS IP 35E Dale St. wa 55 Master Framers GTON AVE SHIN Lexington Ave. Hi a WA 280 Snelling Ave. 35W ST It is a unique, niche business, where well-established ar tists, private collectors, and ar t museums are his likely clients. Restoring existing frames is about 30 percent of his income. Master Framers has been operating out of the 4th Street location since 1977, on the street level of a large, drafty 27-unit building (primarily ar t studios) he owns with two par tners. In 2010, Nielsen felt like a guinea pig for the Green Line project. “They dug up and repaved 4th Street three or four times. At its worst, there was a two-month period in 2012, when no one could get to the shop.” Nielsen said that Master Framers has had to lay off two people in order to be “leaner and meaner.” The loss of 6 to 10 parking spaces in front of the business has been very difficult because customers are usually carrying a heavy load when they leave. As a landlord, he went from having a waiting list of tenants to one or two vacancies. With the economy and light rail construction, and changing demographics of a new generation content to display ar t with pre-made frames, revenue is down 20 percent. All of these factors led to finding himself $35,000 “in the hole” – a sum he’s had to cover with his personal retirement account and for tunately, a Forgivable Loan. 11 IP P SS SI IR R IVE M Roger Nielsen’s Master Framers, located a block from the beginning of the Green Line in Lower town, couldn’t be more different from the typical strip mall poster framing shop. Though the front room has a retail feel, step in back and it feels like a workshop at the Minneapolis Institute of Ar ts. The intricate, ornate, and substantial frames hanging in the front are created in the craftsman’s workshop in the back, where shelves of sharp steel molding forms, gilding and painting stations, and board lengths of flawless milled oak and basswood wait to be transformed. IS ST PAUL MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 Roger heard about U7 because he went to a lot of early light rail informational meetings and “raised hell” with other business owners toward city planners and engineers about the route of the train and the subsequent disruption of construction. Isabel Chanslor, U7 Project Manager, approached Nielsen at one of those meetings and told him about programs she thought would be useful for his business. “I found them pleasant and surprisingly easy to work with,” he said. “She brought in a checklist and said ‘what do you need?” U7 has spent more than 35 hours working with Nielsen’s business and building, primarily providing financial advice before, during, and after construction. “Without the forgivable loan and U7’s help, I wouldn’t be here today” Roger Nielsen, Owner Other projects included: • Facilitating the City of St. Paul Ready for Rail Forgivable Loan to offset huge losses Nielsen suffered during construction. • Arranging for an Xcel Energy audit to address the enormous gas and electric bills of his building. Nielsen is weighing whether the expense of fixing a beautiful but warped front door and replacing the windows throughout the building is a cost-effective project. Chanslor is investigating options for low-interest loans for energy improvements for Nielsen. • Erecting wayfinding signs to direct customers to parking and their shop. Though “it didn’t help the parking situation though once they found us,” he said. Nielsen believes that without the financial assistance U7 helped coordinate “We had two killer years. Without the Forgivable Loan and U7’s help, I wouldn’t be here today. Just now (late 2012) things are coming to fruition.” DOING BUSINESS IN THE TIME OF THE LIGHT RAIL Nielsen does not believe that light rail is going to directly benefit his framing business. He said that his clients would rather pull up directly to the building and are unlikely to take a large framed piece of art home on a train. He does believe that it will create a demand for more downtown housing, which creates a demand for his housing rental business. small business profile / master framers THE BOTTOM LINE 12 Foundations Health Career Academy 225 University Avenue Rachele Simmons, Owner healthcarejobsmn.com Graduate of NDC’s Small Business Training Foundations Health Career Academy (FHCA) is an inexpensive, no-frills school founded to teach students the skills to pass the cer tification test to become a nursing assistant or home health aide. In 80 hours spread over 16 days, Rachele Simmons trains an average of six students for $950 a person. A similar program through the Red Cross costs upward of $1,500. With the vast majority of her clients lower income, immigrant, and minority women, the difference is significant. Located in one large room on the top floor of the Hmong Professional Building, at the corner of Rice Street and University Avenue, Simmons has created a clinic “laboratory” with beds, blood pressure cuffs, and other nursing equipment. “The academy is a labor of love,” she said. Once a specialist nurse “making six figures,” Simmons dipped deeply into her savings and retirement accounts to make FHCA happen. Her graduates have a 97 percent success rate in passing the cer tification tests. She loves telling her students, many of whom come from challenging life situations, “after this class, you’ll have something no one can ever take from you… an education and job skills.” Simmons moved to her site on University Avenue in March 2012, literally weeks before bulldozers tore apar t the street. It was a difficult star t, to say the least. Though her building has a parking lot, she estimates that approximately 65 percent of her students take public transpor tation. Though convenience was her goal in choosing the University Avenue site, there were months this summer when she couldn’t cross the street with her class to get to the nursing home where they intern. U7 branded FHCA to “a whole new level.” Rachele Simmons, Owner 13 MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 280 th a 35E State Capitol University Ave. Downtown/Lowertown St. Paul R DA CE 94 ST ST PAUL IS T LR Rice St. wa Dale St. Business Location Lexingoton Ave. Hi a Simmons went through NDC’s Small Business Training to learn the next N AVE HINGTO WAS steps after deciding to open FHCA on University Avenue. Wanting her to succeed with such a positive business plan, they putMI her in touch with Uthe U7 NIV SS 55 ER IS meeting, Simmons staff. At their first SIT SI Y P of U7’s services AVE was advised of all PI MINNEAPOLIS RIV and was told what sheERhad to do on her end to receive help, par ticularly getting all the financials in order to be eligible for the Ready For Rail Forgivable Loan. Snelling Ave. 35W I IP P SS SI R VE RI M Simmons believes that her students and graduates are potentially her best advertising for more students, but the 320 hours U7 has put in toward her business have been incredibly important in promoting FHCA’s name and services. Other projects included: THE BOTTOM LINE U7 branded FHCA to “a whole new level.” They helped her with legal issues, flyers, branding, her website, Google Maps, a Facebook page, and printed materials with address changes. These, in turn, have brought in new students and greater visibility within the Twin Cities medical community. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL Simmons thinks the light rail will definitely be good for her students, but also good for the Twin Cities. “We’re not two cities. This makes us one city. There are so many more options for people to get to where they need to go,” she said. small business profile / foundations health career academy • Facilitating a $1,000 micro-grant in 2011 that she used for relocating costs. • Creating a website that has attracted new students, kept them informed, and created a community by congratulating and encouraging her graduates. U7 staff have photographed some graduations and posted photos to her site. Both Simmons and her students are grateful for the attention and recognition. • Instructing Simmons on the importance of social media — setting up her Facebook and Twitter accounts where she has been an active poster and tweeter. • Helping digitalize all FHCA instructional and administrative’materials. • Helping secure a grant from Valspar Paint to repaint the interior of the large, one-room classroom and a matching grant of $400 for façade improvements. • Advising Simmons to approach her landlord about reducing her rent during construction. Though this never happened, she said the building owners agreed to creative lease payments. 14 Quickly built a great reputation online and in the community for excellent Thai dishes. Ya Poophakumpanart, Owner 280 Thai Cafe T LR MINNEAPOLIS R IVE RS ITY State Capitol University Ave. AV E Downtown/Lowertown St. Paul 94 R DA CE RI VE UN 35E Rice St. th a 371 University Avenue Ya Poophakumpanart, Owner andMISSChef IS SI P thaicafemn.com PI Dale St. wa 55 INGTON AVE Lexingoton Ave. Hi a H WAS Business Location Snelling Ave. 35W ST 15 I IP P SS SI R VE RI M Located on the north side of University Avenue in the Frogtown neighborhood, Chef Ya Poophakumpanart is taking a well-deserved rest at a sunny table after the afternoon lunch rush. Through sheer will, 95-hour 7-day work weeks, and assistance from U7, Ya finally believes that Thai Café will survive. U7 was able to provide for the immediate needs so she could continue her work in the kitchen and with customers. And this is where Ya shines: Thai Café has already earned a reputation on Yelp for delicious Thai food and thus a loyal clientele willing to brave light rail construction. IS ST PAUL Ya is a professionally trained chef who traveled her country of Thailand to gather unique recipes and flavors. She opened Thai Café in early 2011, two years after she arrived and just a year before construction started in earnest. She speaks Hmong, Thai, and only a little English. We conducted this interview through an interpreter. MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 Ya was visited by Sia Lo, a former U7 Small Business Consultant, who stopped in a month after she opened to explain what services U7 could provide. Sia, who is Hmong, was able to communicate in more detail the light rail construction schedule, other pertinent information, and what it might mean for her business. Immediately, the U7 team introduced Ya to general business management, marketing, and graphic design projects. Ya received approximately 120 hours of U7’s assistance, including the full complement of U7’s marketing and branding expertise. Other projects included: • Creating Thai Café’s colorful and modern brand, working with her on the design and pricing of her menu and business cards, and building a website using a City of St. Paul’s Ready for Rail Forgivable Loan. • Facilitating a $1,000 micro-grant in 2012 to follow through with more marketing and branding. • Maintaining, along with Ya’s high school-aged daughter, her Facebook page and website. Though clients must pay annually for the domain name and hosting, all other “backend” services are provided by U7. Lo suggested early on to gather e-mail addresses of patrons so she could contact them with the most up-todate parking and detour information. • Pushing catering to survive the times when getting to her restaurant was nearly impossible to get to. • Posting wayfinding signs that pointed patrons to her restaurant and parking. • Creating 500 flyers that were passed out in nightclubs and church parking lots (though the return was very small on this). • Maintenance of her website, which was completed before construction, encouraged phone orders for pick-up. • Coordinating façade improvement and new signage through her landlord May Yang, owner of May’s Market. THE BOTTOM LINE Ya is confident about the future and thinks that ultimately the light rail will be good for the Twin Cities and very good for her business. She knows that she provides delicious food that people will seek out; a train running by her door can only help but bring them to her. With the light at the end of the tunnel, she believes that she can hire more employees. She’d like to make the modest restaurant feel more high-end, and thus more attractive for business lunches and a more affluent clientele. small business profile / thai cafe Ya believes that the expectations of bad business due to construction were worse than the reality. Even at the height of disruption, her income and sales count were greater this summer than last. Part of this, no doubt, is due to Thai Café’s reputation, but Ya credits U7 as well, a service she said that has saved her time and money. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL 16 ail 280 35W Business Location Mi Linda Tierra SI SS IP MINNEAPOLIS PI IVE RS ITY Downtown/Lowertown St. Paul 94 ST ST PAUL I IP P SS SI R VE RI M IS R 585 University Avenue Lucio Parra & Rosie Santos, Owners State Capitol University Ave. AV E R DA CE RI VE UN 35E Rice St. T LR IS Dale St. th a M Lexingoton Ave. wa 55 INGTON AVE Snelling Ave. Hi a H WAS Mi Linda Tierra is an Hispanic grocery store just east of Dale Street on University Avenue. The façade is a brilliant green, inviting, and fun. Inside, like many of the businesses on this corridor, are two independent business owners wondering if they’ll be able to survive, even now that the worst of the construction is over. MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 Lucio Parra and Rosie Santos owned a restaurant in Lima, Peru before emigrating to St. Paul 12 years ago. They initially star ted a cleaning service, then found this struggling Hispanic grocery and thought it would be more conducive to a better family life. For a while that was the scenario. They have two children, a 14-year old girl who helps out on the weekends and 3-year old son. When they began, they worked hard to market their grocery, create relationships with U7 and with the nearby Hispanic community, stock popular items, and create a meat counter customers found wor thy of traveling long distances for. They were soon bringing in up to $1,500 a day. Construction and the recession knocked them back to square one and now they are averaging roughly $200 to $300 a day. Lucio and Rosie underwent some legal and banking issues with the previous owners of the grocery store, which was a further financial hardship. NDC Loan Officer Perla Mayo stopped by soon after they took over to introduce herself. She talked them through the financial obligations left by the previous owners and told them about NDC and the services they could provide. They were unaware of the impending light rail construction when they purchased the store. Mayo introduced Isabel Chanslor to them and their relationship with U7 began. Lucio and Rosie, who did not have retail grocery experience before they opened Mi Linda Tierra, also did not take the NDC entrepreneurial class. “I think we probably should have,” Rosie said. Rosie believes that all Mi Linda Tierra’s financial problems stem directly from the trucks, noise, disruption, and blockages caused by the construction. She said that many of their customers have more than one job, so they’re always in a hurry. “They run in and then they run out. They say ‘I can’t wait in traffic to get to your store,’” she said. Some of those customers have come back now that the worst of the construction is over, but unfor tunately many have not. 17 Despite financial difficulties Lucio and Rosie have used their help from U7 to survive another day. Lucio Parra and Rosie Santos, Owners Other projects included: • Providing financial advice before and then facilitating the City of St. Paul Forgivable Loan program. Rosie and Lucio used the money to pay bills. Rosie said they could have used a loan twice as large to cover their debts. • Designing a whimsical avocado logo and designed flyers with special deals. Also provided were business cards and a website, which has since been taken down. • Providing marketing assistance, such as making better use of both Mexican and American holidays, keeping the website up-to-date, and making use of social media tools like Facebook and Twitter. SBC Sia Lo also suggested providing weekly, monthly, and quarterly features such as recipes and photos to bring people to the site on a regular basis. • Coordinating with the community development organization Sparc and Valspar Paints to provide up to 20 gallons of paint to spruce their market up. • Erecting wayfinding signs to direct customers to parking and their shop. Despite financial difficulties, Lucio and Rosie have used their help from U7 to survive another day. Throughout the process, the couple has maintained a positive and cheerful attitude and have continued to run an organized and well-stocked Hispanic market. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL Rosie said that most of her customers come to them by bus or by car. Since the rail stop is practically outside their door, eventually the train will have a positive effect on Mi Linda Tierra. Whether they still own the business when the trains finally run, Rosie said, is the big question. small business profile / mi linda tierra THE BOTTOM LINE 18 Embodied Health 2506 University Avenue Lucinda Pepper, Owner embodied-health.com Graduate of NDC’s Small Business Training Embodied Health, a yoga and massage business, is an oasis of calm on a street that has seen much chaos. In 2007, Lucinda Pepper fell in love with the location and space in the large brick building on the nor th side of University Avenue near Highway 280. She loved it there even during the summer of 2011 when construction and detours made getting to her studio nearly impossible. Pepper is an evangelist for the transformative powers of massage and yoga, and has made it a mission to reach out to as many who need it as possible. Growing her business before she star ted working with U7, was “person to person,” pursuing free media, creating a website, and sending out an e-mail newsletter. Success was painfully slow: gross revenue her first year was slightly more than $5,000 a year. “It was nerve-wracking.” MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 Pepper took Neighborhood Development Center’s small business training class in 2005, two years before she opened the doors to Embodied Health. As a graduate of this program, she became eligible to receive a small business loan. NDC Loan Officer Sai Thao introduced Pepper to U7’s Isabel Chanslor and Ryan Kidder. “I remember them giving me their slogan: ‘Offering marketing and financial services to help businesses survive and thrive light rail construction at a free or low cost rate’ and thinking, “Yes. That’s what I need.” Pepper said that after she had assembled some qualitative data, U7 dove in and began on the Embodied Health project. Lucinda Pepper, Owner 19 “It was astounding how helpful working with NDC and U7 has been for me” Other projects included: • Facilitating a $1,000 micro-grant in 2011 that she used for marketing to new clients. • Creating a new brand and logo, and helping facilitate getting a new awning, and written materials, such as gift certificates, post cards, and business cards. She also received instruction in the importance of using her branding consistently. • Setting up a photo shoot to provide art for her website and written materials. • “Tutoring” Pepper in social media, Twitter, and Facebook. She uses these to promote workshops and keep in touch with her clients. She now tweets 2-3 times a week and posts on Facebook daily. She keeps the social media guidebook assembled by the U7 design team in her purse and uses it daily. • Launching her new, attractive website in July 2012. U7 designed and printed 1,000 postcards announcing the launch. She sent out approximately 500 to her clients, and delivered another 500 to coffee shops, restaurants, businesses, etc. • Providing continuing mentorship on an as-needed basis, particularly for website or social media issues. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL THE BOTTOM LINE AV E State Capitol University Ave. Downtown St. Paul R DA CE 94 ST ST PAUL IS SIT Y I IP P SS SI R VE RI M T LR ER IVE R 35E Prior Ave. th a UN Transfer Rd. wa “Knowing me, I’d still be slogging along had I not found NDC and U7, M IS one but I’m sure 55 I would have had SI foot off the cliff and be closeSSIP to P having to close.”MINNEAPOLIS I RIV Vandalia St. INGTON AVE small business profile / embodied health Hi a H WAS Business Location Hampden Ave. ST Downtown Minneapolis 280 Raymond Ave. TH 394 Pepper is a light rail advocate. Transit means community connectivity, a strengthened infrastructure, and a better environment. Already, she sees University Avenue looking better, with new lights and sidewalks. For Embodied Health, she envisions commuters seeing her awning from the train and one day stopping in. 280 4 She said that within one week of sending out the postcards announcing her website, her scheduled doubled; six months later, that uptick has been maintained. “I was inundated r thsta Rail Nor uter with calls. It was a quality problem.” m Com This year, Pepper says, gross revenue should top $46,000. “It was 35W astounding how helpful working with NDC and U7 has been for me.” 20 German’s longevity in the furniture business on University Avenue gives him perspective. David German, Owner University Furniture 280 T LR SI SS IP MINNEAPOLIS PI R IVE RS ITY 35E State Capitol University Ave. AV E Downtown/Lowertown St. Paul 94 R DA CE RI VE UN Rice St. th a 786 University Avenue M David German, Owner IS Dale St. wa 55 INGTON AVE Lexingoton Ave. Hi a H WAS Business Location Snelling Ave. 35W ST M IS The last few years have been very ST PAUL R IVE difficult and frustrating for David IR P IP SS German and his business at the SI corner of University and Avon. And the frustration has led to anger. The appearance of jackhammers and trucks during German emigrated from the Ukraine 26 years ago and the summer of 2012, meant fur ther disruption and has been selling furniture along University Avenue for greater inaccessibility for his customers looking to buy more than 13 years, but he is no longer cer tain he can furniture. hang on for even another six months. He says just as there’s a window of normalcy outside his shop, more “When I first star ted this business, on a scale of one to construction and detours are announced. Though the 10, business was a 9 and a half. After the recession, 4,500 square foot store is packed tightly with sofas, it was a 6 or a 7,” he said. “Now it is a 3.” Looming tables, bedroom sets, mirrors, and wall decor, much of rent and insurance bills forced German to lay off two what he sells is through catalogs and delivered directly employees. He often gets feedback from customers to customers’ homes. He says he is in the process of who say that what was once a 15 minute trip to his store reducing inventory. “I’m scared to buy more furniture.” from Minneapolis, now takes more than 30 minutes. 21 MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 German had attended a meeting where someone had handed him a card for a small business consultant at U7. He believes his relationship with U7 has been one of the bright spots of the whole light rail construction process. “(SBC) Pangia (Vang) understands how bad it is and she keeps me informed of what services can help me next,” he said. Other projects included: • Providing financial advice early to assure that German would be eligible for the City of St. Paul Ready For Rail Forgivable Loan through U7, and then helping facilitate that loan. • Acting as an intermediary with the Metropolitan Council when German had concerns with construction. • Providing advertising advice and technical assistance with promotion. German advertised in the St. Paul Pioneer Press for a monthly fee of $50, created flyers for the neighboring community and his customers for $60, and advertises in the Twin Cities Russian newspaper. He is, German said, the only Russian around selling furniture. THE BOTTOM LINE As difficult as the construction has been on his business, German believes that a train system will ultimately be good for the Twin Cities, bringing people in from the suburbs, and hopefully buying his quality, inexpensive furniture. small business profile / university furniture German’s longevity in the furniture business on University Avenue gives him perspective about his present situation. But the recession and the construction project one after the other have been the heaviest blow of his career. However, he hasn’t felt alone. German believes that Vang and others at U7 have consistently been a supportive presence. The facilitation of the Forgivable Loan allowed him to get out from under a stack of bills and Vang’s willingness to go to bat for him with the Metropolitan Council was a service he appreciated. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL 22 Ultimate Look 1455 University Avenue Dominque Wells, Owner ultimatelookmn.com MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 Ultimate Look is a full service African-American beauty and nail salon and barbershop located west of the Hamline Street rail stop. Though more than 20 years old, it gives off a modern, sleek feeling, both in the shop and on the website. This is primarily due to the young owner who took over the family business when the founder, his aunt, got sick and turned to him for help. Only 28, Dominque Wells, is a skilled businessman, juggling being owner, manager, and even barber in the shop. Wells said that a year before construction began, many representatives of U7 came to him — Small Business Consultants Sia Lo and then Pangia Vang, and graphic designers Ryan Kidder and Steve Olson gave him details about the upcoming construction schedule and suggested he attend more city and transit meetings. The most important thing that Wells heard from U7 was to keep in good contact with his existing customers. He began collecting e-mail addresses and building his database so when getting to his shop was the trickiest, he would be able to contact them to provide them with detour and parking directions. U7 has provided approximately 215 hours of assistance since partnering with Wells. Ultimate Look has survived the worst of the construction. The biggest construction-related nightmare was in the summer of 2011 when the sidewalk in front of Ultimate Look “disappeared.” He said that the customers who actually braved University Avenue and came for a cut or beauty service were sometimes 45 minutes or an hour late. Sales dropped dramatically; down 50 percent for four or five months. Despite all this, he optimistically believes that better days are ahead. 280 R RS ITY 35E Rice St. Lexington Ave. IVE Snelling Ave. UN Dale St. Business Location “We should bounce back for the better.” State Capitol University Ave. AV E Downtown/Lowertown St. Paul R DA CE 94 ST M IS ST PAUL 23 S SI P SIP IR R IVE Dominique Wells, Owner Other projects included: • Designing the branding for Ultimate Look. “They gave us a new design, a new way to reinvent ourselves,” Wells said. “We got some new business cards and promotional things done, including a new website.” • Preparing and applying for the forgivable loan. “If they hadn’t pushed me, it probably wouldn’t have gotten done.” “The loan,” he said, “went toward catching up on bills, new furniture, and other remodeling. THE BOTTOM LINE Wells believes that ultimately the light rail will be good for his business and the others along University Avenue. “We should bounce back for the better.” However, he does question whether this project was the best use of St. Paul’s money. As the Twin Cities are “moving up,” it’s probably time they connected with each other in a modern way, he believes. “This has been a tough time. I had to figure out a lot of stuff about how to make this business work, but I pushed through,” Wells said. “I wouldn’t have willingly done it, but then I didn’t have that option.” small business profile / ultimate look Wells said the overall impact of his work with U7 has been very positive. “They provided me with a more consistent structure from the business standpoint of branding, marketing, and tracking losses and gains. Because they helped me set and meet my goals, I definitely feel we’ll grow and survive,” he said. On the positive side, the majority of his old customers are back now that his shop is easier to access, and better yet, new people are coming in as well. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL 24 Flamingo Restaurant 490 N. Syndicate Stree Shegitu Kebede and Frewoini Haile, Co-Owners flamingorestaurantmn.com Flamingo is a three-year old East African restaurant located a half block north of University Avenue near Hamline. The owners are Shegitu Kebede and Frewoini Haile, two women from Ethiopia and Eritrea respectively. When they decided to bring their unique tastes to St. Paul’s Midway area, they were unaware a gigantic construction project would add one more stress to an already rocky first year. The worst of the construction was the summer of 2012. “For a while, it didn’t look like life existed out here,” Shegitu said. “Except for the construction workers, people couldn’t get to us. We were running out of nails to bite.” Instead, Flamingo ramped up its catering and delivery services. “They opened our eyes,” Shegitu said. “They told us not to just sit and wait for people to come to us.” But now, Shegitu seems to radiate calm and relief. With an Urban Spoon rating of 92 percent, Flamingo is past the worst of construction and has become a go-to spot for delicious, unique dining in the Twin Cities. MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 “I can’t remember if we looked for them or they came to us. I think, though, that God sent them to us,” Shegitu said. U7 has spent more than 450 hours, primarily on accounting assistance and marketing and branding. Shegitu Kebede, Owner 25 “We want to be a success story for U7” Other projects included: • Advising Shegitu and Frewoini to look for cheaper groceries, start a savings account, start collecting e-mail addresses to “create relationships,” and to contact customers about specials and navigating detours and to grow their catering services. • Providing far-reaching financial and accounting services. U7 SBC Mary Kuria taught them bookkeeping skills, instructing them to pay special attention to the cost of goods in order to reduce expenses and increase revenue. She also taught them to file their own taxes, has them using new and more efficient accounting software, and is offering advice in renegotiating their lease. • Designing the uniquely fun and attractive logo of a one-legged flamingo fit into the African continent, menus, signage, business cards, but also with advice on how to consistently use their new branding. • Facilitating the City of St. Paul Ready for Rail Forgivable Loan to offset construction losses, in addition to a façade improvement matching grant. • Helping Flamingo navigate at least two major setbacks. The first was the restaurant’s original and poorly installed street sign that crashed to the ground in a wind in the early morning hours. Fortunately no one was hurt. Also, the restaurant was a victim of a nearby power surge that burned out every appliance in the restaurant. They went into debt to purchase new stoves, ovens, refrigerators, etc., because the mishap was not covered by insurance. U7 assisted in rallying customers and clients to raise funds to keep the restaurant going. • Erecting wayfinding signs to direct people to the restaurant and parking were very helpful. 280 35W Business Location THE BOTTOM LINE Hi a HINGTO WAS N AVE wa Dale St. Lexington Ave. State Capitol University Ave. Downtown/Lowertown St. Paul R DA CE 94 ST I IP P SS SI R VE RI M DOING BUSINESS IN THE TIME OF THE LIGHT RAIL IS ST PAUL Shegitu, a world traveler, knows that a train system is the mark of a healthy city. “When I travel, I never take the bus. I take the train everywhere. The Twin Cities is growing, becoming more diverse and is economically very sound.” In addition, she said she is very happy that the train station is close to Flamingo. small business profile / flamingo restaurant Fairview Ave T LR 55 There was a time, she said, when M UN they thought was IS that the restaurant IVE SI RS S Iever TY SI the worst decision they had AV P E made. “We arePInow very confident RI MINNEAPOLIS VE R we will make it,” Shegitu said. “We want to be a success story for U7.” Snelling Ave. th a 35E 26 Son Dao, Owner Ha Tien Grocery and Deli 353 University Avenue Son Dao, Owner 280 Business Location State Capitol Downtown/Lowertown St. Paul R DA CE 94 ST IS ST PAUL I IP P SS SI R VE RI M T LR Rice St. th a 35E University Ave. Construction inside and outside his building has taken a bite out of Son’s bottom line. He estimated that business plummeted nearly 40 percent in the summer of 2012 when the construction began in front of his store, making getting to and parking at Ha Tien so difficult. “People stopped coming. It was easier for many of my customers to go to other larger markets,” Son said. A major employer in the neighborhood with seven full-time and 14 par t-time workers — many from Frogtown — the primary concern on Son’s mind was getting those customers back and bringing in new ones. 27 Dale St. wa 55 INGTON AVE Ha Tien Grocery Store was in a state of chaos one day in early January, 2013. Heavy plastic sectioned off a third of the M NIV IS store on the western side and theUsound ER SI S SS of heavy machineryIP made conversationITY AV E PI RI was the sound MINNEAPOLIS difficult. But it was this VE R and vision of progress for the 16-yearold Asian market right across the street from the Western Avenue light rail stop. Vietnamese owner Son Dao is upbeat, looking remarkably vibrant for working 16-hour days, seven days a week since 1996, with one 3-day vacation in 2006. Lexington Ave. Hi a H WAS Snelling Ave. 35W “Business is definitely up from the low last summer.” He knows that Ha Tien, with about 7,000 square feet of retail space, needed to create a niche to differentiate itself from the Asian “mega” markets, many of which are within a mile of Ha Tien. Currently, that niche is a deli, starring the incredibly popular banh mi, an Asian sub sandwich, as well as other quick, pre-prepared meals. Once the construction inside the store is complete — new floor tiles, wider aisles, a new refrigeration system, and greater energy efficiency; and outside, the new sign and façade — he said he will be ready to promote the store again – hopefully before the Chinese New Year’s holiday. MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 A representative from U7 first came to Ha Tien in the summer of 2010 to give him the latest on the plans for the light rail construction. Like many busy business people interviewed for this project, Son had difficulty remembering the details of how the relationship came to be and even what services he had received in the last two years. Other projects included: • Facilitating a City of St. Paul façade grant, a $200,000 Living Cities loan from NDC, and another $30,000 in grants from Living Cities and STAR. These loans enabled him to upgrade his business with new energy efficient equipment and exterior signage, lighting, and paint, reflecting the Little Mekong district design guidelines. • Providing technical assistance for on-going projects. • Creating a new logo and other branding work, as well as launching a new website (estimated launch date: Spring, 2013) • Erecting bright yellow wayfinding signs directing customers during construction. Son said business is definitely up from the low last summer, in fact he was able to maintain steady sales before and after construction and even turned a profit in 2012. His confidence is reflected in his plan to hire more employees once construction inside and outside the shop is complete. Operating in a more attractive, energy efficient site will only encourage positive outcomes for his bottom line. He said U7’s techinical support, design work, and loan assistance has been helpful in making him hopeful in the future. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL Son is thrilled and very hopeful that the train station outside his door will bring him new customers — not just Asians, but curious Westerners exploring a cultural and gastronomical experience. Son remarked that as difficult as the construction had been on his business, the change to University Avenue has been dramatic. “Parts of University Avenue were very ugly and terrible and even boring. Now it looks so much nicer,” Son said. “The train will be good and it will make this city stronger.” small business profile / ha tien grocery and deli THE BOTTOM LINE 28 Capital City Auto Electric 690 University Avenue Jeff Zrust, Owner ccautoelectric.com MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 Capital City Auto Electric is an 82-year old business located in Frogtown, located just kitty corner to the U7 offices. A simple, gritty garage located behind a building that houses two other businesses (including Universal Hair), Jeff Zrust does not attract clients with the ambiance of his facility. Zrust attributes Capitol City’s longevity in St. Paul to two things: reputation and respect in the community, and lack of competition. Capital City specializes in troubleshooting and repairing all auto-electrical systems. Because it is so specialized with low overhead, it is less expensive than traditional garages and dealerships. When Zrust heard that a light rail train was finally going to be a reality, he started going to every city and planning meeting he found out about and was talking to anyone who knew about logistics, timing, detours, and disruption. It was at one meeting that a small business consultant from U7 approached him with information about how to weather the upcoming construction storm. U7 Small Business Consultant Pangia Vang and Loan Officer Sai Thao helped Zrust devise an accounting system that has dramatically changed and simplified his billing and tax preparation so now he is “keeping better track of my money,” he said. U7 staff spent approximately 45 hours assisting Zrust with his accounting practices and branding. The construction has been a mess and customers have had a much more difficult time getting to him, Zrust said. But he believes that unlike many businesses along the Green Line, Capitol City has not felt the impact of construction as harshly as the restaurants, salons, and retail stores. There is only one other business in St. Paul that specializes in auto-electronics, so “people go out of their way to get here.” 280 R IVE RS ITY AV E 35E Rice St. Dale St. Lexington Ave. UN Snelling Ave. Business Location “(They taught me) to keep better Downtown/Lowertown track of my money” St. Paul State Capitol University Ave. R DA CE 94 ST M IS ST PAUL 29 S SI P SIP IR R IVE Jeff Zrust, Owner Other projects included: • Creating a website that included information about services and classic photos of Capital City’s founders from early in the 20th century. • Facilitating a City of St. Paul Ready For Rail Forgivable Loan through U7. • Designing a new logo for Capital City, which Zrust says he plans on using for his business cards. Capital City also had a new sign erected on the awning over University Avenue. Capital City’s U7-driven website had only been up for about three weeks in the fall of 2012 when he started getting results: “There’s a few people finding me now. I’m definitely getting some calls because of it.” All in all, Zrust said in an understated way, U7 “had done quite a bit and they’ve been pretty good.” DOING BUSINESS IN THE TIME OF THE LIGHT RAIL Zrust does not believe that the light rail will be a positive thing for his business because people need to bring their cars to him. He is also not confident that the light rail is the right thing for the city and doesn’t think it’s been thought through enough. small business profile / capital city auto electric THE BOTTOM LINE 30 Ashama Grocery and Meat & Ashama Auto Repair 804 University Avenue Yusuf Ali and Mohamed Salah, Owners ashamagrocery.com Two Ethiopian men, Mohamed Salah and Yusuf Ali, began Ashama Grocery and Meat and Ashama Auto Repair in 2002 on the corner of Avon and University avenues with little or no business experience. They had instead a philosophy of hard work, catering to a diverse community with service and product, and including members of their community to ensure success. Yusuf, who runs the automotive center, wants Ashama to be known as a place that is trustworthy, friendly, and fair. Salah proudly gives tours of the grocery; there are plastic containers with extraordinary spices and traditional cooking pans and teapots that you’d never find at Target. Also striking is the employees. There are currently 35 “shareholders” who work parttime to keep Ashama afloat during difficult times; they have invested money, helped pay taxes, and contributed toward improvements, but they also can be seen carrying trays of bread or delicious fried lentil pastries, or in the refrigerator, making sure the goat is being drained of all its blood and butchered in accordance with Islamic law. That kind of buy-in was important when construction was so overwhelming that customers were directed to enter through the back door. Yet still, business is down 30 to 35 percent Salah said, and it hasn’t fully come back. MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 Mohamed Salah, Co-Owner 31 When word of a major construction project in front of their business was announced, Yusuf attended city and contractor meetings to understand the scope of the project. It was here that Yusuf was approached by SBC Marilyn Por ter who offered U7’s help. U7 has provided approximately 100 hours of assistance to Ashama, most of it bookkeeping and accounting assistance. Other projects included: • Facilitating a Ready for Rail Forgivable Loan that helped the business cover losses incurred during the construction period. Because Islamic law outlaws owing money, the partners never applied for a traditional loan. • Establishing Quickbooks as Ashama’s accounting and organizational software instead of a spreadsheet. SBC Mary Kuria spends approximately two hours a week assisting Yusuf with bookkeeping and training. This year Kuria is planning on teaching them to track inventory and print business checks to employees and suppliers for the first time. With reports now generated from Quickbooks, the owners are able to make better financial decisions. • Designing a logo, and soon, refreshing the website built by the U7 design team two years ago. Rail THE BOTTOM LINE Business Location 35E State Capitol University Ave. small business profile / ashama grocery & meat and auto repair Downtown/Lowertown St. Paul R DA CE 94 ST IS ST PAUL I IP P SS SI M T LR Rice St. th a DOING BUSINESS IN THE TIME OF THE LIGHT RAIL Dale St. wa Although business has not rebounded to pre-construction days, Ashama GTON AVE forward with a much is HINmoving WAS more sophisticated and streamlined accounting system, an attractive logo, and an updatedMI website, in addition UN SS IVE RS to its loyal clientele. The two men IS ITY SI AV P E PIto dream about are confident enough MINNEAPOLIS RIV expanding with a deli andERmaybe one day building upward with housing. But today there is still a lot of work, even with U7’s help, to thrive. “They have made my life and my job easier,” Yusuf said. Lexington Ave. Hi a 55 280 Snelling Ave. 35W “(U7) have made my life and my job easier.” Most shoppers walk or take public transportation to get to their Ashram, so Salah is all smiles about the prospect of a train running by their store so many times a day. “Maybe new people will want to stop in,” he said, grinning. R VE RI 32 “It made it much less stressful knowing someone (U7) was there to help me.” Wonneda Hing, Owner Universal Hair and Travel 280 T LR IS IVE RS ITY State Capitol University Ave. AV E Downtown/Lowertown St. Paul 94 R DA CE ER UN 35E Rice St. th a M SI 690 University SS Avenue IP Wonneda Hing,PI ROwner MINNEAPOLIS IV Dale St. wa 55 INGTON AVE Lexington Ave. Hi a H WAS Business Location Snelling Ave. 35W ST Her dream has been battered by the recession and light rail construction: a one-two punch. When construction was in full force, Wonneda says business was down 33 I IP P SS SI R VE RI M After a difficult childhood in wartorn Cambodia, Wonneda Hing had a dream of not just making it, but one day opening up her own hair salon in the United States and actually thriving. Wonneda has operated Universal Hair and Travel on University Avenue since 1992, first by the State Capitol, then four years ago in her own building two blocks west of Dale. She provides hair and manicure services, but also has a small travel agency as well, booking flights mostly to Southeast Asia for those who are not comfortable using computers. IS ST PAUL 50 percent. She believes parking issues are the biggest road block to having her once-loyal customers come back to her. Early on in the process, she was told she would have three on-street spots in front of her building. As time has gone on, the spots were dropped from the plan and she has not been able to get anyone from the City of St. Paul or Metropolitan Council to tell her why. “I have an 82-year-old customer who walked two blocks to get to me,” she said. Because times are tough, the owner of a nearby parking lot now wants her to pay rent if her customers want to park there. “Winter will be a real struggle.” MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 U7 approached Hing well before construction was underway. Living through the ramifications of detours, noise, dust, and the loss of the three on-street parking spots her customers counted on, has been economically and emotionally painful. A bright spot in the process has been that her relationship with U7 has been very positive and respectful, “at this point, anything helps. They have always been very informative about what programs would be most helpful for me,” she said. U7 has spent more than 130 hours primarily strategizing on attaining loans and façade improvements. Other projects included: • Designing a new logo and providing business cards, website, and social media assistance. • Providing practical advice before construction began regarding her customers and financial preparation. • Facilitating a City of St. Paul Forgivable Loan and a $1,000 micro-grant in 2012 for marketing purposes. Most of this money went toward paying bills, but she was also able to purchase a new product line to sell in the shop. She also received nearly a $10,000 grant to upgrade her building’s façade from Living Cities and STAR funds. • Assisting in working with the contractor to negotiate, design, and install an awning over her front door. Long after the machinery is gone, business is still down at Universal. On the up side, Hing said that friends and customers compliment her on her new, much more attractive and noticible awning. She hopes this will one day draw train travelers to come in. She also credits U7 with doing everything they could and standing by her when business was at its lowest. “It made it much less stressful knowing someone was there to help me,” she said. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL Hing has great hopes that the Green Line will mean good things for her business, but is cautious about increased crime, the continued impact on businesses, and greater congestion of cars along University. These days, Hing draws on the strength and perseverence she needed as a girl in Cambodia. “I will survive,” she said “I have to. This is my life.” small business profile / universal hair and travel THE BOTTOM LINE 34 Big Daddy’s Old Fashioned Barbeque 625 University Avenue Ron Whyte, Bob Edmond, Gene Sampson, Owners bigdaddysbbq-stpaul.com MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 Big Daddy’s Old Fashioned Barbeque is a beloved institution in St. Paul. For 28 years, Ron Whyte and his par tners Bob Edmond and Gene Sampson have been practicing traditional smokehouse barbecuing using impor ted hickory wood. The three have been friends – as well as rivals, always trying to out-cook each other in backyard barbeques. They joined forces and went into business when friends and family told them their food was too good not to share with rest of the community. For years they sold their ribs and chicken out of a trailer (“we had a food truck before food trucks were popular”); this was an outdoor process and the smell was a beacon for Frogtown residents and visitors. When they moved indoors, first on the nor theast corner of Dale and University, and then three years ago, across Dale to the west corner, they built an enormous silver smokehouse, which features prominently inside their small restaurant. r thsta Rail Nor uter m Com ST Business Location th a Snelling Ave. wa T LR SI SS IP MINNEAPOLIS NIV ER PI RI VE Down St. P 94 ST PAUL M IS R State C University Ave. AV E ST were barely making anything as it was so tough.” SIT Y R DA CE “We IS Lexington Ave. Hi a 55 35E Rice St. H 5T Recently, the economy and construction have taken a toll on sales. Whyte often remembers the days when 280get to the customers sometimes had to wait 20 to 30 to 35W head of the line at lunchtime. There are no lines now. 394 Catering has been an economic savior as the walk-in Downtown N AV E business decreased. Never theless, Big Daddy’s has a HINGTO Minneapolis WAS loyal following, a strong word of mouth reputation and lots of positive reviews in online customer comments, and local and regional newspapers. M U Dale St. 94 Ron was nervous when he heard that light rail construction was actually going to happen. Mike Temali, CEO of NDC and a fan of both Big Daddy’s and the three men, alerted Ron about the U7 project and how it could lessen the negative impact should they contract for its help. They met with U7 for the first time in early January, 2010. “Mike told us that we better start putting aside money. We were barely making anything as it was so tough,” he said. Big Daddy’s became an enthusiastic client of U7’s, logging nearly 360 hours of both in-house and contract assistance. 35 IP P SS SI IR IV From Left to Right: Ron, Bob and Gene, Owners Other projects included: • Developing a marketing strategy, tweaking their branding, and revising the menu using monies from a City of St. Paul’s Ready for Rail Forgivable Loan. • Pushing the owners to invest, build, and rely on their catering services. • Providing assistance in bottling and selling Big Daddy’s BBQ sauce. U7 Lead Graphic Designer Ryan Kidder spent hours creating an original look for the branding of the bottle, but this project is currently shelved. • Improving their basic website. Business “went way up” when it was re-launched with pictures, biographies, and an updated menu. Ron said neither he nor his partners were interested in social media maintenance. U7 provided a volunteer willing to manage Facebook and tweet for them. • Staging a photo shoot of three staged food scenes: holiday, graduation, and a picnic These photos have been used on the restaurant’s website, for flyers, and sent out as mailers to bolster Big Daddy’s catering operation. • Erecting bright yellow wayfinding signs directing customers during construction. The first week U7 launched Big Daddy’s website, they received reservations for 20 catering orders. Also, Big Daddy’s re-engaged old fans when they launched their Facebook site; many posted that they thought the restaurant had closed and were happy they were wrong. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL As for the impact of a completed light rail line on his business “people tell me it’ll help my business, but I can’t see it.” small business profile / big daddy’s THE BOTTOM LINE 36 Transformation Salon 931B University Avenue Mary Milton, Owner transformation-salon.com Graduate of NDC’s Small Business Training on-street parking her once-loyal client base counted on. Customers have told her that it’s too difficult to get to her and they didn’t want to be bothered with the traffic. But still, Milton, who has owned the shop since 2007, is playing it one day at a time. In addition to owning Transformation, she works in a salon and is a part-time minister at a church in Brooklyn Center to pay the bills and the $700 per month rent on the salon. She doesn’t know how long she can juggle it all. Milton remembers as a girl watching her mother cut hair in her Arkansas living room and knowing it’s what she wanted to do in her life. She moved north and got a degree from St. Paul Technical College in cosmetology and has been in the beauty business for 20 years. It was a dream come true to open her own salon, and University Avenue seemed to be just the place because of its central location and convenience to her client base, the African-American community. MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 Mary Milton, Owner It was a Thursday afternoon and Transformation Salon owner Mary Milton had had only three clients that week. Business has been painfully slow at the one-chair beauty salon located equidistant between the Hamline and Lexington rail stops. Snow had been plowed into her only parking spot behind her building, and the light rail has taken all of the 37 When Milton first heard that a huge construction project would be causing huge disruption outside her store, she star ted talking with other nearby businesses. It was at Blessings Salon, her former employer and another U7 client, where she first heard there was a non-profit offering help to business owners like herself. She had taken the small business training class at Neighborhood Development Center, so she was confident that anything associated with the organization would be helpful. It was in the spring of 2010 when she made a phone call to U7. Milton sat down with Isabel Chanslor to determine what services she was eligible for and what U7 could do to prepare Transformation Salon for what was to be a devastating blow for her business. U7 has provided approximately 180 hours of assistance since par tnering with Milton. Other projects included: • Facilitating a $1,000 micro-grant that she used to purchase a new product line for the salon. • Facilitating a Ready for Rail Forgivable Loan. • Designing a new logo for her business, as well as new business cards and punch cards. • Creating a new website touting Milton’s prices, services, history, and glowing testimonials. U7 staff has encouraged Milton to use social media, but she has not followed through on learning how to set up or maintain a Facebook page or Twitter account. • Helping negotiate use of a nearby church parking lot. This worked for three months, but the owner finally locked his gate citing vandalism to cars parked there. UN SS IP IVE PI RI VE R State Capitol University Ave. AV E Downtown/Lowertown St. Paul 94 R DA CE ST ST PAUL Milton is a woman of strong Christian faith who cares not only about the effect of light rail construction on her business, but on her neighbors. “Life has changed completely because of this. So much has been uprooted,” Milton said. “People are hurting. Restoration has to happen.” “Life has changed completely because of this LRT.” I IP P SS SI R VE RI small business profile / transformation salon MINNEAPOLIS DOING BUSINESS IN THE TIME OF THE LIGHT RAIL RS ITY IS T LR SI M th a IS 35E Rice St. wa M Business Location Snelling Ave. Hi a 55 Transformation Salon is in a difficult financial spot, but U7 has lessened GTON AVE of hard times and taught theHINimpact WAS Milton budgeting skills to project profits and losses in the future. Dale St. 35W THE BOTTOM280LINE Lexington Ave. Rail 38 Francesco O’Ryan, Owner East African Bakery 786 University Avenue Francesco O’Ryan, Owner eastafricanbakery.com Graduate of NDC’s Small Business Training Francesco O’Ryan is the unlikely name of an East African mechanical inventor turned wholesale bakery owner working on University Avenue. But O’Ryan and his bakery are filling a niche that’s far from unusual. East African Bakery is the second largest provider of two traditional breads — hambasha and injera — to restaurants and groceries (like Flamingo and Ashama) in the Twin Cities. And that’s saying something: the Twin Cities has the nation’s highest population of residents originally from East Africa. O’Ryan owns the building that both East African Bakery and University Furniture are housed in. Where University Furniture’s windows are covered with signs advertising sofas and bed sets, there is nothing to mark the presence 39 “...in less time, I’m more accurate with where my money is going...” of the bakery. His six East African employees work through the night in a small warehouse operation aside pallets of flour, bags of the African grain teff, and two unusual, original machines O’Ryan and his friend Jerome Guettler invented to streamline the creation of his breads. His background is as a machinist, and a decade ago he and Guettler attempted to mechanize a process that has been done by hand on another continent for probably centuries. The damage done to East African Bakery because of light rail construction is different from many profiled here because of the nature of his business. During the worst of the construction in the summer of 2012, his drivers were able to get out of the parking lot for their deliveries, but their clients were suffering: huge amounts of hambasha and injera were coming back unsold and had to be thrown out. Businesses that had been affected took their toll on O’Ryan’s bottom line. “Since construction, everything has slowed down,” he said. “It’s been a pain, to say the least.” MEETING U7 & BUSINESS SOLUTIONS PROVIDED BY U7 280 Business Location 35E State Capitol University Ave. Downtown/Lowertown St. Paul R DA CE 94 ST IS ST PAUL I IP P SS SI R VE RI M T LR Rice St. th a Dale St. wa O’Ryan is graduate of the Neighborhood Development Center’s small business GTON AVE HINwhere training he wrote a business plan and WAS “learned how to go forward.” His bakery was formerly located in Roseville, but he M IS University andUNAvon moved to the larger IVE 55 SI RS ITY SI spot to be closer to hisScustomers. In 2010, AV P E PI RI MINNEAPOLIS he connected with U7’s Loan Officer Sai VE R Thao who updated him on the construction schedule and checked-in with him on his finances and accounting practices. U7 has provided approximately 100 hours of assistance since partnering with O’Ryan. Lexington Ave. Hi a wn olis 35W Snelling Ave. tar il rthster Ra mu Other projects included: • Streamlining and improving the bookkeeping operations. U7 Small Business Consultant Mary Kuria introduced O’Ryan to Quickbooks and other more efficient computer accounting programs. She visits O’Ryan every two weeks to go over his books and plan for the coming fiscal quarter. • Investigating whether he would be eligible for a forgivable loan through the city to cover the losses he sustained during construction. • Helping O’Ryan focus more on reducing the cost of goods he purchases, therefore increasing his revenue. • Connecting with the West Side Community Center Neighborhood House and arranging for the unsold and returned injera and hambasha to go to their multi-cultural food shelf. The impact of U7’s attention, O’Ryan said, is that “in less time, I’m more accurate with where my money is going and I can spend more time finding customers.” O’Ryan believes from the NDC class and accounting, U7 has helped him get over the $40,000 loss in revenue attributable to construction during those summer months. DOING BUSINESS IN THE TIME OF THE LIGHT RAIL O’Ryan is positive about the way the light rail will change the landscape of the Twin Cities, making it easier and more attractive to walk around. He believes that the restaurants and grocers buying his products will be healthier, his staff will have better transportation to work, and the value of his building will increase. small business profile / east african bakery THE BOTTOM LINE 40 Providing a model for vulnerable corridors to sur vive any major infrastructure project 2013
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