TRANSFORMING CRIME-RIDDEN BUILDING INTO GROCERY AND TORTILLA FACTORY

La Poblanita
Minneapolis, Minn.

Situation:

Primitivo Morales wanted to open a grocery store, deli and tortilla factory on the site of a former brothel in a distressed Minneapolis neighborhood. The building was in extremely poor condition. Due to unreported code violations and unreliable contractors, the original rehab estimate of $60,000 ultimately ballooned to $200,000. Morales had enough resources to operate his store, but he needed help to pay for the required improvements and renovations. Conventional lenders were unwilling to solely finance the escalating cost.

Solution:

The City of Minneapolis and CRF teamed up to provide Morales with an $80,000 and a $20,000 loan, enabling him to go forward with his plans. He completed the renovations, which created a restaurant on the first floor and an apartment on the second. After selling his family’s original home to provide the equity portion of the financing package, the Morales family now lives in the apartment.

Benefits:

La Poblanita was an immediate success, with sales exceeding projections by a wide margin. Over the past six years, the business has grown to employ 30 members of the local Latino community and has expanded into an adjacent building, this time using only conventional financing. Instead of being a source of crime, the property is now a positive force in the neighborhood and an anchor in the surrounding commercial strip.