WCA SOCIAL ENTERPRISE

Westmoreland Community Action

Mission:

Westmoreland Community Action strengthens communities and

families to eliminate poverty.

Westmoreland Community Action

Agency Growth

1990 – 5 Programs, 90 Staff, $1.5 Million Annual Budget

2013 – 23 Programs, 230 Staff, $15 Million Annual Budget

Westmoreland Community Action

Poverty Statistics

Westmoreland

County

Population 364,471 Poverty Rate 10.5%

Families 7.2% Single Mothers 35.8% Unemployment 7.6%

Social Enterprise

WHS, Inc. and Greensburg Construction

Mission:

To lease to non-profits at a lesser rate while

making donations to low-income programs.

Social Enterprise

• Purchased 1st building – 24,000 sq. ft.

•1995• Lease to two non-profits•2013 – Own 7 office buildings and apartment building

• 100,00 sq. ft.• 6 are paid off• $6 million in assets

• Purchased Greensburg Construction in 2004• $1 million in annual revenue• Made profit last 3 years

Social Enterprise

WCA – Social Enterprise Research

• Job Creation/Training• Tax Paying Entity• Good Community Partner• Quality Service/Business

• Restaurant• Catering• Lawn Service

Social Enterprise

What Does WCA Do Best?

• Community and Economic Development

Social Enterprise

What Does WCA Do Best?

• Community and Economic Development

Social Enterprise

What Does WCA Do Best?

• Community and Economic Development

Social Enterprise

Missed Opportunities

One example: S. 6th Street, Jeannette

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3 Agency Collaboration

• 3 Community Action Agencies• $60 million annual budgets• $50 million Economic Development• Heavily involved in development

Westmoreland Fayette Washington Greene

Population 364,471 136,606 207,820 38,686

Poverty Rate 10.5% 19.9% 10.4% 15.0%

Families 7.2% 15.1% 6.7% 10.8%

Single Mothers

35.8% 55.7% 40.8% 34.5%

Unemployment 7.6% 10.0% 7.3% 7.2%

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• Clearinghouse for donated and salvaged materials

• Converted items to charitable dollars to support 3 Community Action Agencies

3 Agency Collaboration (continued)

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• Reduce waste of natural resources while diverting usable materials from landfills.

• Deconstruction vs. Demolition• 40% of solid waste to landfills

3 Agency Collaboration (continued)

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Community Mission

• Hire people from community• Purchase from the community• Taxpaying entity• Self-sustaining by 4th year

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Start-Up

• Pooling resources -- $330,000• Development experience• Construction relationships• Business contacts• Temporary location• Hire key staff• Build clients/donations

4 County Area

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Financials

• Foundations -- $750,000-- Location• OCS Grant -- $500,000 -- Staff• ARRA $ -- Start-up -- Equipment• State Funds -- $200,000

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Marketing and PR

• Marketing Team• Website (www.ShopDemoDepot.com)

(.net, .org)• Signage• TV/Radio• E-mail Blasts• Social Media

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Marketing and PR (continued)

• Construction Associations• Business/Human Service Contacts

• 6 Chambers of Commerce• Builders/Contractors• Speaking Engagements• Rotary• Small Business Association• Events

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Building Goods Donations

• General (Public, Craig’s List)• Business (Wal-Mart, Lowe’s, Home Depot)• Construction Companies• Private Contractors• Demolition Companies• Trade Specific Manufacturers

• For example, Kitchen and Bath

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Location

• Temporary/Permanent• Smithton, PA

• 15% Poverty• 22% Children in Poverty

• Jones Brewery• Shirley Jones – Partridge Family

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Location (continued)• 23 Acre Site

• 8 buildings and water treatment plant

• Bottling Plant – Rehab/SDD•Brewery – Deconstructed/200 parking spaces•Railroad Spur•Stoney’s Brewing Offices•Smithton Borough – vehicles and supplies•Greensburg Construction

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Bottling Plant

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Brewery

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Railroad Spur

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Stoney’s Brewing Offices

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Smithton Borough Building

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Brewery Site

Greensburg Construction

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• Close proximity to all 3 CAAs•Accessible major roadways•Easy signage – 4 convenient routes to location

Brewery Site

Greensburg, PA 17 miles

Washington, PA 31 Miles

Uniontown, PA 21 Miles Shop Demo Depot

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Brewery Site (continued)

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Phase II

•Deconstruction – Inventory source for Shop Demo Depot•Staff/Training•Partner with Demolition Contractors• Deconstruct – Activities by 3 CAAs (4 County Area)

• County Contracts

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Projected Time Line

• Start-Up• Hiring of Key Staff• Temporary Staging Site•Completion of Business Plan•Submit Grants• OCS – Staff• 3 Foundations – $1 Million – Acquisition and Rehab

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Move to Permanent Location

• Buyer for brewery• Found closed lumber yard•Negotiated purchase/lease agreement•Moved entire Shop Demo Depot business in January 2012

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Cook’s Lumber Yard

• Mount Pleasant, PA• Statistics

• Population 4,454• Poverty Rate 16.7%• Single Female w Child 69.6%• Median Income $35,987• Median Property Value $107,600• Located on Rte. 31• Surrounding roadways• 26,000 vehicles daily

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Cook’s Lumber Yard (continued)

• 5.6 acres• Railroad spur• Outbuildings• 20,000 sq. feet of indoor space• Bike trail collaboration

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Cook’s Lumber Yard (continued)

• $550,000 purchase price• Lease/Purchase• Rehab needs -- $250,000• Purchased property -- January 2013• Foundation assistance -- $500,000• NAP tax credit -- $415,000 – 2012-2013

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Cook’s Lumber Yard (continued)

• Open House• Deconstruction• Hiring of Staff•Permanent Location• Evaluation

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Cook’s Lumber Yard (continued)

• Grand opening – April 2012• Average sales to date -- $550 daily• eLoop• Partner with Construction Junction• Amazon paints• Software -- tracking• Habitat purchase

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Shop Demo Depot’s Future

• Rehab work• OCS proposal

• 25 staff• Warehouse and deconstruction

• Other business ventures• Plastics• Office furniture

• Profitable by 2016

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Challenges

• Marketing -- committee• Staffing• Diversity of business• Not asking for funds• Staff salaries and benefits

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Contact Us

Tay Waltenbaughtwaltenbaugh@westmorelandca.org

Jack Brownjbrown@westmorelandca.org

www.ShopDemoDepot.comwww.WestmorelandCA.org