REVITALIZING TROUBLED NEIGHBORHOOD WITH LANDSCAPE BUSINESS

Phillips Garden, Inc.
Minneapolis, Minn.

Situation:

Ed Burke, a landscape designer with a commitment to his disadvantaged neighborhood wanted to build a landscape design business, plant nursery, garden store and coffee bar on the site of an abandoned gas station. The gas station corner was a haven for drug dealers and prostitutes, which made that volatile corner unsafe for passersby from the neighborhood. Conventional lenders were unwilling to lend Burke all the money needed to complete the environmental cleanup and build his business in such a risky location.

Solution:

The City of Minneapolis and CRF provided a $62,000 New Markets Tax Credit loan, which represented 40 percent of the needed capital, Burke’s bank loaned him $76,000, and Burke put up $15,000. The business prospered but has since been refocused to provide design and horticultural services primarily.

Benefits:

Today the former crime hotspot has been eliminated and replaced with a thriving business that employs 20 people and helps anchor the neighborhood.