SAN ANTONIO FOR GROWTH ON THE EASTSIDESAN ANTONIO FOR GROWTH ON THE EASTSIDE 2015 ANNUAL REPORT FROM...

SAN ANTONIO FORGROWTH ON THE EASTSIDE

2015 ANNUAL REPORT

WEAVING THE TAPESTRY

SAN ANTONIO FOR GROWTH ON THE EASTSIDE 2015 ANNUAL REPORT

IT’S ALL COMING TOGETHER

SAGE VISION STATEMENTOur 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.”

Championing development that benefits the quality of life for individuals, families, neighborhoods and businesses on San Antonio’s Eastside

HISTORYAt the midpoint of the first decade of the new century, San Antonio began to experience an economic renaissance. While development and growth was taking place, there was and continues to be an overwhelming concern that something equitable needs to be done to include the Eastside Community in the growing prosperity. There was consensus that the area needed a credible economic development organization (EDO) to formulate a plan of action that would include all facets of the Eastside.

There was at that time an organization called the Community Economic Revitalization Agency (CERA) that was in the process of disintegrating. It was decided that CERA needed to be revised or a new EDO was needed to fulfill promises from the past and chart a new mission for the future. With a new name, governance structure and purpose the new EDO, now known as San Antonio for Growth on the Eastside (SAGE) emerged in 2008.

Advocate for efficient, sustainable growth for San Antonio’s Eastside

Champion small business development

Provide innovative, progressive solutions to East Side challenges

Maintain and promote the area’s history and culture

OUR FOUR DRIVING PRINCIPLES ARE:

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FROM THE BOARD CHAIR & EXECUTIVE DIRECTOR

For SAGE (San Antonio for the Growth on the Eastside), 2015 was a year of weaving new ideas and developments with established community assets into a tapestry of revitalization within the Eastside business community.

In 2014, San Antonio’s Eastside was designated as one of five initial Promise Zones in the U.S. by the White House. Consequently, SAGE received a $500,000 federal grant to create a redevelopment plan for the area. A year later, SAGE continued its grants implementation in partnership with the San Antonio Housing Authority, United Way, the City and other non-profit partners, to lead economic development initiatives within the Promise Zone.

The interwoven fibers of growth and revitalization included financial assistance and economic development programs that helped businesses move into or expand within the Eastside Promise Zone. As these efforts coalesced, the bigger picture of a stronger and more vibrant Eastside has come into view.

In partnership with the National Development Council’s Grow America Fund and financial support of local bank partners, a $2 million revolving loan Grow Eastside Fund was developed. Although no loans were funded in 2015, SAGE’s assisted local businesses with their loan applications to receive funding through other financial institutions.

Tapestry of revitalization

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 in support of job creation. Our 2015 investments were in companies including Chelsea’s Catering & Bar Service, Indatatech, and MEDwheels Inc.

The SAGE Store-Front Grant Program also provided assistance for businesses to improve the façade and street-level aesthetic of their properties. In 2105, 11 grants were awarded. This brings the total number of Store-Front Grants since the program began to 70.

SAGE also served as a resource for Eastside businesses by holding public meetings to gather community input concerning the direction of area growth and provided asset trainings ranging from topics of neighborhood leadership to business development. In addition, the first “Faith in Action” symposium was presented to highlight the role of faith-based institutions in area economic development.

As a featured partner in DreamWeek 2015, SAGE held its inaugural Taste the Dream Gala to celebrate the diversity of cuisines and cultures represented within our community. Hundreds of guests participated in making the event a resounding success.

We also hosted several events geared at continuing our efforts to market San Antonio’s Eastside as a premier destination for urban economic re-development. The Eastside Business Briefings (EBB), held quarterly, allowed SAGE to update the community on the status of the Promise Zone, and other relevant development projects. In addition to the EBBs, we honored deserving Eastside businesses at the SAGE Eastside Business Awards.

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These outreach events culminated in COMMERCE@EASTPOINT, which was held at Sunset Station last fall. More than ever, the fruits of our labor were clearly evident by the mass support we received from residents, government, and community stakeholders alike—all coming together to celebrate new businesses planting roots in the EastPoint footprint.

Looking to the future, SAGE will continue to partner and champion initiatives that sustain revitalization efforts for the Eastside. One such exciting initiative on the horizon is the Choice Façade Improvement Grant Program.

As always, we recognize that the key to long-term success lies is in coming together and maintaining strong partnerships, with the Eastside business sector, our partner organizations, our board members and sponsors, and the City of San Antonio.

FROM THE BOARD CHAIR & EXECUTIVE DIRECTOR, CONT’D

JACKIE GORMANExecutive Director

JELYNNE LEBLANC BURLEYBoard Chair

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JELYNNE LEBLANC BURLEYBoard ChairmanExecutive Vice PresidentCPS Energy

CHRISTINE DRENNON, PH.D. Director, Urban Studies Program, Trinity University

ANDREW NICHOLASTreasurer Senior Manager, Global Tax Compliance & Reporting, Ernst & Young

BOBBY PEREZVice ChairSr. Vice President, General Counsel, Spurs Sports & Entertainment

ALISA HERNANDEZDirector of National Accounts, Walton Signage

CRISTINA J. BAZALDUA-SALAZARCommunity Affairs Director, Univision Communications

TRACY ROSS-GARCIASecretaryDirector of Community & Public Relations at Alamo Colleges: SPC

RICHARD LEALFounder, Atlas Body Shop

BRIAN DILLARDVice President , Dignowity Hill Neighborhood Association

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2015 BOARD OF DIRECTORS


DONA LISTONOwner, Lambermont Events

MICHAEL WESTHEIMERPresident & CEO, Coldwater Ventures

FRANK PAKUSZEWSKIPrincipal, 1836 Asset Development, LLC

MARQUES MITCHELLBusiness Development, KAI Texas

MARK WITTIGPresident & CEO, Wittig Office Interiors

WILLIAM “CRUZ” SHAWAttorney, Law Offices of William Shaw

CARLOS PADILLADirector of Spiritual Growth, Taking It to the Streets Ministries

JOANN SOSADirector of Design, Valla Design Group

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2015 BOARD OF DIRECTORS

The SAGE Service Area was re-drawn in 2014 to align with the boundaries of the federally designated Eastside Promise Zone.

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.

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SAGE 2015 SERVICE AREA


YEAR IN REVIEW: EASTSIDE BUSINESS BRIEFINGS (EBB)

The third quarter EBB (Q3) featured a special presentation by Bank of America, as well as updates from Promise Zone partners including SAISD, SAHA, Eastside Promise Neighborhood, EastPoint, SAGE and University Health System.

The Eastside Business Awards (Q2) honored the best: • Emerging Business: BethanyEast PR & Management • Consulting Business Role Model: The Mighty Group• Transformation: VIA, Ellis Alley Project• Community Partner: NALCAB• Catalytic Investment: Alamo Beer Company• Eastside Pioneering Spirit: Pancho’s & Gringo’s

The first EBB of the year (Q1), Breakfast with the Mayor, included Mayor Ivy Taylor discussing the importance of inner city revitalization, as well as a special presentation by Spurs Sports and Entertainment on the renovation of the AT&T center.

The quarterly Eastside Business Briefing series continued.Topics included Breakfast with the Mayor, The Eastside Business Awards, Promise Zone Update and Breakfast with the Commissioner.

The final EBB of the year (Q4), Breakfast with the Commissioner, featured Tommy Calvert Jr., Commissioner Bexar County, Precinct 4. There was also a special presentation by Overland Partners.

Q1

Q3

Q2

Q4

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SAGE hosted a celebration of 19 new businesses on the Eastside and near Eastside. Recognized participants included:

• Alamo Beer• Toro Taco• CoLab• Alamo City Studios• Alamo City Comicon• Guardian Knight Comics• Training Solutions & Associates• Conceivable Resolutions• Taste of Jazz Coffee Shop• Powell Law Firm• SA 2020• UH: School of Hospitality• Alamo City Chamber• Tony G’s Soul Food & Southern

Cuisine• Amaya’s Tacos• Dignowity Meats• Alamo Depot, New Ownership • Navarro Hernandez Farmers Agency• San Antonio Panic Room• Big Hops

COMMERCE@EASTPOINT


SAGE also hosted Neighborhood Leadership Training for neighborhood associations and other non-profits. Topics included: Taking Minutes, Running a Meeting Using Parliamentary Procedures, Bookkeeping, and Marketing an Organization through Social Media.

SAGE hosted an interactive symposium, Faith in Action: The Churches Role in Economic Development. Examples of successful community/economic development programs started by faith-based institutions were presented, showing San Antonio’s faith-based institutions the possibilities of being an effective blessing to the Alamo City.

YEAR IN REVIEW, CONT’D

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The inaugural Taste the Dream Gala took place in January at the Institute of Texan Cultures. The official DreamWeek event was a celebration of the diversity of cultures that make up the Eastside through food from around the world.

Over three hundred guests ate, drank, and danced the night away while supporting Eastside revitalization. Glazer’s Distributors hosted the VIP Lounge along with the Eastside’s own Alamo Beer Company, providing specialty coctails, beer and wine throughout the evening.

Featured chefs included Johnny Hernandez, David “Bully” Page, Charassri “Nong” Saeng-On, Gus Bard, Alice “Ma” Harper. The master caterer was Chef Donald Mitchell of Chef Don’s Catering.

TASTE THE DREAM


A TAPESTRY OF ECONOMIC REVITALIZATION

THE EASTSIDE PROMISE ZONE

The designation of the Eastside Promise Zone in January of 2014 brought new attention to areas critical to an integrated approach to community revitalization: Economic development, education and housing, all three operating in balance like a three-legged stool.

This integrated approach to community revitalization began with over $50 million in federal grants from the Department of Education, the Department of Housing and Urban Development and the Department of Justice. The federal investment is leveraged by almost $20 million in local funds, contributed by the City of San Antonio. These initial investments focused on Education and Housing.

EDUC ION ATECONOMICDEVELOPMENT

HOUSING

This year SAGE moved forward with two economic development initiatives funded by over $1.2 million in federal grants.

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 was used to identify opportunities, supported with economic feasibility scenarios, for developing mixed-use, transit-oriented development projects within the Promise Zone. The focus is on formulating and implementing an economic development program that puts in place systematic efforts to reduce unemployment and increase incomes.

An integrated approach to community revitalization

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LOANS STRUCTURED TO MEET THE NEEDS OF SMALL BUSINESSES

THE SAGE GROW EASTSIDE FUNDThe 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 TO:

• 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

Although no loans were closed in 2015 through the SAGE Grow Eastside fund, there were several businesses that that were able to get loans approved through other financial lenders, based on the assistance SAGE provided.

SAGE GROW EASTSIDE FUND PARTNERS:Spurring economic developmentin the Eastside Promise Zone

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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 • Permanent working capital• Other areas needed to grow

SAGE EQUITY FUND RECIPIENT/AMOUNT USE OF INVESTMENT

CHELSEA’S CATERING & BAR SERVICE$289,000

Startup costs and working capital for opening Tony G’s Soul Food including: building rehab, kitchen equipment, signage, initial advertising costs, restaurant supplies, and furniture/fixtures

INDATATECH$102,041

Working capital covering operating expenses compensating for accounts receivables while entering a new market

MEDWHEELS$50,000 Purchase new truck and new inventory

THE SAGE EQUITY FUNDA $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 low-income individuals.

AN INVESTMENT IN THE GROWTH OF SMALL BUSINESS

Jane Gonzalez, CEO and president of MEDwheels, a medical equipment company, was a SAGE EQUITY Fund recipient. She used the funds to purchase a new truck for her business.

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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 property 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 70 grants.

PUTTING OUR BEST FACE FORWARD

Tony Gradney, owner of Chelsea’s Catering & Bar Service, was a SAGE STORE-FRONT GRANT recipient. He used the funds to renovate an office building, which had been vacant for twenty years.

In 2015 there were 16 Active Store-Front Grant’s totaling to over $167,000

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BEFORE

AFTER


ACTIVE SAGE STORE-FRONT GRANT PROJECTS IN 2015

RECIPIENT AMT USE OF GRANT

AWARDED IN 2014

SMART SHOP $10,000 Demolish existing and construct new building

VALLA CONSTRUCTION $10,000 Repair roof, parking lot, landscape, exterior painting, lighting, reception desk

PRINCE ENTERPRISES $15,000 Repair parking lot and roof, upgrade exterior lighting

CHAS SUPERMARKET $10,000 Repair parking lot, interior and exterior lighting

CENTRAL TEXAS EXPRESS METALWORK, LLC $5,000 Demolish existing and construct new building, create more parking

AWARDED IN 2015

LOU MILLER STATE FARM, INSURANCE $20,000 Exterior/Interior Renovations.

JPM COMMUNICATIONS $9,525 Exterior Signs, lighting, deck

W. EWING DEVELOPMENT, LLC $20,000 Exterior Signs

CHELSEA’S CATERING & BAR SERVICE $10,000 Exterior Renovations

MEDWHEELS, INC $9,999.51 Painting, Replace Windows and Sign

LAW OFFICE OF ARLENE M. GAY $8,980 Improve façade and parking lot, Fence installation, landscape

SAMS CONTRACTING CONSULTING AND TRAINING LLC $5,020 Exterior façade improvements, painting, landscaping

STRAIGHT LINE MANAGEMENT, LLC $10,000 Exterior façade improvements, Window and door replacement

JAMES LAWNMOWER SALES AND SERVICE $9,604 Outdoor façade improvements, lighting, signage

BIG MOE AUTOMOTIVE REBUILDERS, INC. $7,129 Outside façade painting, signage , door replacement and awning

JAIME’S TIRE & MUFFLER $7,129 New Signage

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LOOKING TOWARD THE FUTURE

SAGE STRATEGIC DIRECTIONTo keep focused on the long term strategic objectives of the organization, all of SAGE’s work will support one of these goals:

Engaging stakeholders and marketing the Eastside

Expanding SAGE’s capacity

Developing and empowering neighborhood leaders

Catalyzing Eastside developments and investments

Photo: Lisa Krantz /San Antonio Express-News

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LOOKING TOWARD THE FUTURE

CHOICE FAÇADE IMPROVEMENT GRANTAnother new and exciting program on the horizon is the Choice Façade Improvement Grant. This program will be seamlessly woven into the other existing SAGE financial empowerment programs as another great way to help businesses on the Eastside.

The CHOICE Façade Improvement Grant Award maximum amount is $25,000 per qualifying project in the target area and $20,000 per qualifying project outside of the target area in the broader CHOICE footprint. The maximum grant amount includes the $5,000 environmental assessment fee.

Grants in the target area (close proximity to Wheatley and Choice Infill Area and along New Braunfels Corridor) require only a $.25 match on every $1.00 received. Grants outside of the target area require a $.50 match for every $1.00 received.

CHOICE Façade improvement program is limited to for-profit businesses

A match is required on all CHOICE Façade Improvement Grant awards.

All funded projects must be on commercial properties located within the CHOICE footprint

An environmental assessment fee of up to $5,000 will be allocated to each grant

Property must be zoned for an appropriate commercial use at the time of the application

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2015 AUDITED FINANCIALS

SOURCES OF FUNDING 2014 2015

CONTRIBUTIONS: $142,425 $84,051

GRANTS/CONTRACTS: $431,674 $1,244,326

MISCELLANEOUS: $46,029 $147,691

EXPENSES 2014 2015

GENERAL & ADMINISTRATIVE $90,793 $110,275

PROGRAM SUPPORT: $466,122 $1,488,367

Financial Assistance Programs $141,360 $218,185

SAGE Equity Fund $84,051 $497,564

Promise Zone Economic Development Plan $1,244,326 $521,289

*Complete copy of the 2015 SAGE Audit Report can be found online at guidestar.com

10% MISCELLANEOUS

5.7% CONTRIBUTIONS

84.3% GRANTS/CONTRACTS

2015 TOTAL: $1,476,068

2015 TOTAL: $1,598,642

6.9% GENERAL & ADMINISTRATIVE

93.1% PROGRAM SUPPORT

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SAN ANTONIOFOR GROWTH

ON THE EASTSIDE

220 Chestnut, San Antonio, Texas 78202Ph: 210-248-9178; Fax: 210-222-8673

sagesanantonio.org

SAN ANTONIO FOR GROWTH ON THE EASTSIDESAN ANTONIO FOR GROWTH ON THE EASTSIDE 2015 ANNUAL REPORT FROM...

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