Economic Rebuilding

Proposal Details of the Mayor's Recommended ARP Spending, Round 2



Proposal Details

Clyde Bellecourt Urban Indigenous Legacy Initiative

Department

Community Planning and Economic Development


Amount

$3,500,000


Staffing Needs

None


Previous ARPA Funding

No


Problem Statement

The COVID-19 pandemic has revealed the urgent need to address the extreme disparities for the Twin Cities urban Indigenous community. The Urban Indigenous Legacy Initiative was founded because, Native American non-profits are routinely the best provider of services for our people. Combined, these 16 renowned urban Native organizations serve every facet of need for Natives in the Twin Cities. Our organizations are physically strapped for capacity. COVID-19 has almost exponentially increased the scope and intensity of need for their clients. Loss of income, food security, addiction, homelessness, violence…these organizations must address all of these issues simultaneously in order to empower our community to thrive.


Proposed Action Summary

The Urban Indigenous Legacy Initiative was founded because Native American non-profits do not have the resources to properly invest in their capital needs for their organizations. Instead, all available resources have been dedicated to helping the people through their programming and services to reverse these disparities. To this end, this initiative has now united to seek capital investments to modernize and bolster the capacity for all organizations participating within this effort. This funding will be applied to several of the various projects being pursued by members of the UILI.


Proposed Action Detail

Urban Indigenous Legacy Initiative has identified the following projects to be supported by this allocation:

  • $1.5 million - Minneapolis American Indian Center
  • $1 million - Indigenous Peoples Task Force
  • $1 million - MIGIZI Communications

CPED will work with the UILI to finalize the projects and amounts. Though no change is expected, project flexibility remains important.


Racial Equity Impact

As was demonstrated over the previous 18 months during the pandemic and civil unrest that rocked the Twin Cities, there remains an extreme urgency to combat the various disparities that continue to burden urban Indigenous community.


Meet Minneapolis

Department

Convention Center


Amount

$2,000,000


Staffing Needs

None


Previous ARPA Funding

Yes. Phase 1


Problem Statement

COVID 19 shut down the event industry causing large scale reductions in sales tax revenue and severe reductions in hospitality employment. As the event industry slowly re-opens, competition to host events will be intense Minneapolis has been in the spotlight over the last year and much of that spotlight has not focused on the positives that our great community possesses. A comprehensive marketing plan could work to change the narrative and reintroduce Minneapolis to the world. Incentives can also help close the sale so national event producers select Minneapolis as their host city.


Proposed Action Summary

Meet Minneapolis will use these funds to incent events to host their event in Minneapolis. By hosting events, Minneapolis will be able to restart the hospitality industry, which was severely impacted during the pandemic. More events in Minneapolis will positively impact jobs, sales tax revenue, parking revenue, and businesses by bringing visitors and their spending to our community. The leisure and travel industry has been decimated in Minneapolis during the last year and this campaign could help spur more tourism to Minneapolis with a clear plan that makes sure that all neighborhoods and communities are supported.


Proposed Action Detail

Meet Minneapolis will contact organizers of large events to offer and negotiate the provision of incentives to those organizers if their events are held in Minneapolis with the purpose of bringing the majority of attendees from outside a four hour drive to the Downtown Minneapolis Taxing district to stay in hotel rooms and generate hospitality taxes. Meet Minneapolis will create a new and/or supplement any existing comprehensive marketing plan that seeks to bring more visitors to Minneapolis by promoting the City and its tourism and leisure infrastructure. The Marketing services will involve advertising with the goal of educating potential visitors about Minneapolis' amenities including hotels, events, and the City's Cultural Districts.


Racial Equity Impact

More visitors to Minneapolis will help restart our hospitality industry which has suffered 35% of all job losses in Minneapolis during the pandemic. Hospitality workers are predominantly young, female, and BIPOC so known disparities have only increased during the pandemic. By increasing the amount of visitors to Minneapolis, Meet Minneapolis seeks to spread out the positive impacts of visitor spending to BIPOC businesses in our community.


Results

The City will evaluate Meet Minneapolis based on the following performance indicators:

  • Number of large event attendees at Minneapolis events
  • Number of hotel room nights pledged and/or booked
  • Estimated lodging tax generated by the incentives
  • Estimated direct economic impact of events provided with incentives
  • Number of impressions generated by funded activities
  • Number of leisure hotel rooms pledged and/or booked
  • Estimated lodging tax generated by Marketing Services
  • Estimated direct economic impact of visits generated by Marketing Services
  • Extent to which Cultural Districts were referenced in advertisements

Youth Program - Employment and Training

Department

Community Planning and Economic Development


Amount

$1,610,000


Staffing Needs

Family Support Specialist 2


Previous ARPA Funding

No


Problem Statement

The Covid 19 pandemic created new and unforeseen challenges to our existing youth programs. The absence of in-school connections, in-person course work, hybrid or online learning environments, and inequities in technology access, disproportionally impacted our low-income, BIPOC, and young people with disabilities. These inequities have already shown to greatly reduce labor force participations, education and training enrollments, and disconnections from jobs programs. Without greater interventions, the temporary Covid 19 economic shocks could turn into structural barriers holding back many in our communities.


Proposed Action Summary

The funding will support the development of a on demand digital work readiness platform and the supports needed to allow any Minneapolis young person access the training anytime during the year. Work readiness training is a core component of our Step Up program and is instrumental in preparing a young person for their first job. The use of ARPA funding works well as this is a one-time technology cost and staffing. Following the development, this work can roll into our existing structure. We are also requesting funding for support service enhancements to deepen the job support offerings to young people by community-based partner organizations.


Proposed Action Detail

This funding for youth employment programs provides financial support to create new and expanded structures and supports to reengage and move forward disconnected youth and young people directly impacted socially and economically by Covid 19 disruptions.

  • Developing an online Step Up work readiness platform will need 1 temporary FTE, development costs of digital work readiness platform and licensing, curriculum development and/or customization, and stipends for eligible students. Technical supports will be contracted out, while internal project management will be done by the temporary FTE.
  • The support service enhancement funding will be added to Minneapolis YouthWorks and Journey Forward contracts with our community-based partners. These additional funding will be used to stabilize young people in housing, childcare, food supports, transportation, and education, as they pursue employment and training programs.

Racial Equity Impact

A top priority of our work is to identify, build, promote, and generate equitable opportunities and economic inclusion for all Minneapolis residents through workforce development services. Minneapolis Employment and Training (MET) has a long history of geographic and programmatic strategies that prioritizes equity and targets disparities among people of color and people with disabilities in areas of high poverty and unemployment. MET engages communities of color and people with disabilities through our network of non-profit providers and community outreach. Our partners have equally deep connections with communities of color which help inform program design.


Results

With an online platform for work readiness, an estimated additional 2,500 young people each year could have access to work readiness training across the City of Minneapolis. Additionally, 400 young people will receive support services and assistance which will better prepare them for the work world.


Minneapolis Downtown Council Event Activation

Department

Convention Center


Amount

$1,200,000


Staffing Needs

None


Previous ARPA Funding

No


Problem Statement

Community job losses and the lack of direct revenue generation from parking and sales taxes due to reduction of business activity in the business core impacts families and the city enterprise negatively.


Proposed Action Summary

Activating the business core of Minneapolis will bring thousands of residents and visitors downtown where they will spend money in restaurants, businesses and parking. Activation events also serve to build community spirit and camaraderie.


Proposed Action Detail

The City has partnered with the Downtown Council for many years on events like the Hollidazzle and Aquatennial. Private businesses pay for the bulk of the activities, but the City's support is vital to this public private partnership. Creating positive outlets for our residents and visitors in our City will lead to community engagement and business activity. These activities have been halted during the pandemic.


Racial Equity Impact

Downtown activation is free and open to the public and serves everyone in our community. The activities bring joy to those that participate in them. The activities seek to restart business activity, parking, and tax generation in Minneapolis, which provides resources and jobs to our community. It is estimated that 35% of all jobs lost during the pandemic were in the hospitality industry. More activity in Minneapolis will start to bring those jobs back, which tend to employ a diverse mix of residents.


Results

Increased activity will bring increased economic activity which can be tracked through the following ways:

  • Year over year increase in hospitality jobs
  • Year over year increase in parking revenue to the City
  • Year over year increase in the hospitality sales taxes
  • Estimated attendance of event(s) produced.

Service Worker Trainee Program Expansion

Department

Public Works


Amount

$850,000


Staffing Needs

Office Support Specialist

Program Assistant

Public Works Safety Specialists


Previous ARPA Funding

No


Problem Statement

Minneapolis Public Works is experiencing the same labor shortage as other public and private employers. Due to the early retirement program and a competitive labor market we are short-staffed in our public works service worker position.


Proposed Action Summary

These funds will enable Minneapolis Public Works to maintain current service levels, perform more targeted and innovative recruitment efforts and provide on-the-job training and experiences for new hires.


Proposed Action Detail

These funds will enable Minneapolis Public Works to expand and enhance our current one-year Public Works Service Worker Trainee program from approximately 20 participants per year to 40 participants per year over the next two years. To accomplish this, additional staff will be needed to recruit, hire and train the additional Trainees. This includes additional recruitment participation, equipment rental, commercial driver’s license training, internal and external trainers, and the overall administration of the Trainee program.


As a part of the Trainee’s development, participants perform basic construction activities under direct supervision. Trainees are able to assist our Public Works Service Workers with more routine assignments and provide additional capacity where needed.


Funds will also be used to aggressively attract, hire and train for vacant engineering positions throughout the Public Works organization


Racial Equity Impact

Our current Public Works Service Worker Trainee program has successfully produced over 100 Trainees in the past few years. Minimum requirements for this program are a valid driver’s license and 18 years of age or older with the Department providing the necessary training and experience. This program targets City residents, BIPOC communities and women. The increased funds and resources will allow us to address disparities by continuing to reach out to our communities with stable, good-paying jobs and will also assist Public Works by creating a workforce that reflects the communities we serve.


Results

Success will be demonstrated by having a department of well-trained, diverse employees that have been given the tools needed to succeed. We will be able to track the number of women and BIPOC candidates hired and trained and show an increase in representation in all areas.



Labor Standards and Workers Center Co-Enforcement and Trafficking Prevention

Department

Civil Rights


Amount

$750,000


Staffing Needs

None


Previous ARPA Funding

No


Problem Statement

Workers of color and low-wage workers have disproportionately suffered the health and economic consequences of the COVID-19 pandemic, making equitable enforcement of labor standards even more urgent at this time. All workers need to be able to defend their workplace rights to protect the health and economic resiliency of their communities.


Additionally, the City is not equipped to identify victims of labor trafficking. Community-based organizations (CBOs) connected to workers on jobsites are in the best position to identify victims of labor trafficking. Working in partnership with these organizations can help prevent labor exploitation and trafficking.


Proposed Action Summary

The City needs the help of community-based organizations (CBOs) to identify victims of labor trafficking. This is complimentary work to enforcement in the City’s Labor Standards Enforcement Division, and a holistic strategy to prevent exploitation from happening in the first place, rather than reacting after it has happened.


Co-enforcement funding of workers centers help bridge the gap between government and our most vulnerable people by training them to be frontline monitors of their workplace rights, informally resolve or mitigate workplace harm, detect and report violations when necessary, and identify high-violation industries for proactive investigations to level competition between businesses.


Worker centers hold deep connections in vulnerable working communities and serve as liaisons and the “eyes and ears” on the ground where workplace violations take place, up to and including labor trafficking. These organizations are uniquely equipped to support marginalized communities in overcoming barriers to speaking out against violations in a variety of ways. Direct connection to aggrieved workers also saves precious time and money for the city during its investigations.


Proposed Action Detail

Funding provided would allow an expansion of services provided at physical locations (brick and mortar) well known in the community as “worker centers.” These sites function as satellite locations within the community in a comfortable and accessible location. Services provided include walk-in consultation, training, capacity building, violation reporting and follow-up with aggrieved workers to gather evidence and establish relationships. This visibility and trust as a well-known workers rights service provider allows the promised benefits of City labor standards to reach those most in need.


This proposal is an expansion of existing activity through contracts with existing service providers. The project will help to actualize the City’s vision of transforming Minneapolis into an economically stronger, equitable, and inclusive city. This initiative will help prevent human trafficking through community education, outreach, and collaborative co-enforcement of labor standards ordinances predominately in BIPOC and immigrant communities otherwise disproportionately subjected to exploitative labor practices.


This aligns with the Wage Theft Ordinance 2019-031, which identified wage theft as an indicator of labor trafficking, and recently adopted City Council Resolution, 2022R-019, which acknowledges recommendations from “A Holistic Response to Human Trafficking and Exploitation: A Framework for Action” and directs staff to operationalize its goals to end and prevent human/labor trafficking and exploitation. This project will help to further advance this work, prepared in consultation with internal (Labor Standards Enforcement/Civil Rights, Transgender Equity Council/Race and Equity, Workplace Advisory Council, etc.) and external stakeholders by the City’s Senior Advisor for Human Trafficking Prevention, in the City Coordinator’s Office.


Racial Equity Impact

At the time of minimum wage ordinance passage in 2017, 54% and 41% of Latinx and Black workers, respectively, earned less than $15, compared to only 17% of their white counterparts in Minneapolis. The business cost of labor is unlike other expenses because labor is people. Economic investment in people, or lack thereof by employers, ripples outside the business, across families and the entire society. Workers of color and low-wage workers have also disproportionately suffered the health and economic consequences of the COVID-19 pandemic, making equitable enforcement of labor standards even more urgent at this time. 7-in-10 Black employees have filed for unemployment insurance during the pandemic, compared to a little more than 1-in-3 non-Hispanic White employees.


CBO’s work directly with workers and partner with other organizations to address economic injustice and carry out equitable change. Outreach and educational efforts both ensure that the most vulnerable workers in our workforce (the very workers who are most likely to be caught in situations of labor trafficking) are trained to identify existing cases of labor trafficking and are empowered to defend their workplace rights to prevent the conditions that lead to labor trafficking from occurring in the first place.


Results

Results are greater compliance with City labor standards across otherwise high-violation industries, lower risk and less frequent occurrence of labor trafficking, a more even playing field for businesses, and the elimination of downward pressure on wages in those industries. The end goal is empowerment of otherwise vulnerable community members to assert their rights and invest in their own economies where they choose to spend rising earnings. In short, inclusive economic growth from the bottom up.


Workers in Minneapolis’ non-union construction industry estimate that 1-in-4 jobs won’t pay them their full wage. Over the last year community-based partners have recovered more than $2.6 million in stolen wages for workers by leveraging City labor standards.


This proposal focuses efforts on both the enforcement of labor standards and proactive, preventative measures for those historically excluded. Though this work is difficult to quantity, we would expect qualitative data for this project to involve:


  • Number of outreach contacts to low-wage BIPOC, Immigrant workers
  • Number of people educated about their rights
  • Increase in number of formal complaints submitted to the City by low-wage, BIPOC and Immigrant workers

Career Pathway Program expansion

Department

Community Planning and Economic Development


Amount

$600,000


Staffing Needs

None


Previous ARPA Funding

No


Problem Statement

During Covid 19, one of the most challenging aspect of Workforce Development nationally is the significant reductions participant enrollment into training programs. Whether the challenge was related to the digital divide, fear for health, lack of access with disruptions to mass transit, or increased pressures from children learning from home, fewer and fewer of our low-income residents were seeking career pathways. Today, as Covid 19 continues to recede, more and more job seekers are looking for career pathway training which will increase their earning potential and provide a gateway into living wage jobs.


Proposed Action Summary

The expansion of our career pathways program will leverage existing workforce investments to continue partnering with community-based organizations to scale and expand workforce and career pathways programs that can provide living wage jobs and career paths in growing sectors such as hospitality, construction, tech, renewable energy, healthcare, and manufacturing targeting people experiencing the largest economic disparities.


Proposed Action Detail

This is an expansion of an existing program by CPED Minneapolis Employment and Training. The Minneapolis Pathways program is designed to assist employers with recruiting, training or preparing un- or underemployed Minneapolis residents with the skills needed to fill positions in their business. Through contracts with employment service providers, 150 Minneapolis residents will be trained, placed and retained in living wage jobs. Projects are reviewed based on the following criteria:

  • Engages business in the identification, development, and support of career pathways
  • Achieves measurable outcomes by organizing education, career counseling, supportive services around the needs of target populations
  • Clear and coordinated pathways that provide participants with visual roadmaps or templates depicting on-ramps, transitions, and off-ramps
  • Contextualized and modular curriculum that provides multiple entry points to family-sustaining careers in regional industry sectors
  • Accelerated training that integrates basic skills and work-readiness training with occupational skills
  • Industry endorsed training that leads to credits, credentials, or placement

Racial Equity Impact

A top priority of our work is to identify, build, promote, and generate equitable opportunities and economic inclusion for all Minneapolis residents through workforce development services. Minneapolis Employment and Training (MET) has a long history of geographic and programmatic strategies that prioritizes equity and targets disparities among people of color and people with disabilities in areas of high poverty and unemployment. MET engages communities of color and people with disabilities through our network of community-based providers and community outreach. Our partners have equally deep connections with communities of color which help inform program design.


Results

With this increase in funding, 150 Minneapolis residents will be trained, placed and retained in living wage jobs. The Adult Workforce Development programs through Minneapolis Employment and Training provides access to career counseling, career pathways to sectors of the economy with greater laddering opportunities, and access to higher wages which can lead to better family stability. Average wage gain in 2021 was $7.50 per hour.


Small Developer Technical Assistance Program (D-TAP)

Department

Community Planning and Economic Development


Amount

$400,000


Staffing Needs

None


Previous ARPA Funding

Yes. Phase 1


Problem Statement

Pandemic prevention measures devastated small businesses due to mandatory closures, capacity restrictions, and other measures to slow the spread of the virus creating financial holes and increasing the time for full recovery to a pre-pandemic state. Historically during recovery periods, BIPOC entrepreneurs, especially Black-owned businesses, lag white entrepreneurs having more difficulty obtaining capital to rebound. The Mayor's Inclusive Economic Recovery Work Group recommended funding to increase D-TAP programing, both in a cohort model and 1:1 assistance.


Proposed Action Summary

This program provides increased appropriation to expand technical assistance through service contracts with participating organizations and providing new services with additional specialized service providers.


Proposed Action Detail

CPED will offer competitive grants to the community-based organizations as a component of the D-TAP program to fund technical assistance. CPED will expand D-TAP resources and emerging developer supports based on procurement and public purpose of funds requirements.


Racial Equity Impact

Businesses owned by Black, Indigenous, Asian or Pacific Islanders, Latinx, immigrants, and other people of color (BIPOC) have been less likely to be eligible for and to receive relief funds throughout the crisis. Business activity has waned during the pandemic impacting all businesses and many BIPOC-owned business activity.


Results

  • Support the 1700 business forced to close due to the Stay-at-Home orders.
  • Reduces short-term overhead expenses to allow for business resources to rehire staff.
  • Reduces economic impact of the pandemic on small businesses allowing for quicker rebound.
  • Accelerates small business and real estate development economic activity.
  • Supports employment in small businesses.
  • Reduces barriers to access to capital and increases private leverage in economy.
  • Addresses Economic Development SREAP priority.

Black Business Week

Department

City Coordinator


Amount

$20,000


Staffing Needs

None


Previous ARPA Funding

No


Problem Statement

Between February and April of 2020, Black business ownership dropped more than 40% due to lack of access to financial relief and funding during the COVID-19 pandemic


Proposed Action Summary

This proposal would fund Black Business week for 2022.


Proposed Action Detail

Black business week will be a week of events/opportunities held in the latter part of July that will focus on business retention/technical assistance prioritizing black/ minority owned business and entrepreneurs; engage youth and immigrant communities in workforce opportunities; assist with inclusive economic solutions that will reimage public spaces to include black business; celebrate black business success.


Racial Equity Impact

While there’s been growth in black entrepreneurs and businesses over the years, these business owners still face disproportionate inequalities that hinders their abilities to gain financial support, receive equal wages, and find employment within their local communities. Between February and April of 2020, Black business ownership dropped more than 40% due to lack of access to financial relief and funding during the COVID-19 pandemic. Systematic inequalities have hindered Black Americans for decades and as a result, the wealth and wage gap between Black and white families is vast.


Results

  • Number of events
  • Event attendance
  • Number of businesses engaged
  • Number of surveys completed