DULUTH – January 14, 2004 – Nearly a half-million dollars is being invested in five organizations working to improve the economic development climate in Duluth and the surrounding region through projects ranging from online resources to storefront improvements, according to the John S. and James L. Knight Foundation and its funding partners at a press conference today.
“After studying the priorities in Duluth and listening to community concerns, the Knight Foundation’s Community Advisory Committee determined regional economic development would be its funding priority and has committed to supporting projects that can – and will – make a difference,” said Marti Buscaglia, president and publisher of the Duluth News Tribune and chair of the advisory committee. “Ultimately, economic development is about the quality of our lives and we are proud to be able to make this initial investment in five programs that promise to set a positive course for the future.”
The five grants will go to:
- Area Partnership for Economic Expansion, $190,000
- The Northspan Group, $110,000
- Northeast Entrepreneur Fund, $85,000
- Local Initiatives Support Corporation’s “At Home in Duluth” project, $61,000
- Greater Downtown Council, $40,000
While the grants are to individual organizations, together they are designed to meet Knight Foundation’s objectives to make conditions favorable for doing business in the region, provide support to existing businesses, and increase the possibility for more diversity of services and businesses in northeastern Minnesota and western Wisconsin. It is a part of a $1.75 million investment the foundation plans to make in the area’s economic development in the next five years.
“Economic development traditionally has been led by city officials and other government agencies and we have been proud to do so,” said newly elected Mayor Herb Bergson. “But it has become apparent that if we are truly going to have long-term economic development in our communities, it will take a coordinated effort between the public and private sectors. These organizations, along with Knight Foundation, are to be commended for working together to make Duluth and our surrounding communities stronger and more viable.”
At the Area Partnership for Economic Expansion (APEX), grant money will be used to secure a professional firm to hire an executive director, develop a strategic plan and conduct an evaluation, to ensure the organization’s focus on regional economic development gets off to a strong, results-oriented start. “The support of Knight Foundation will greatly enhance the ability of APEX to fulfill its mission,” said James M. McGinnis, a founding director at APEX. “The Twin Ports and the entire region will benefit from this support.”
The Northspan Group will use technology as a way to pull people and organizations together, according to Randy Lasky, president of the group. “The Internet has become the preferred method of gathering and sharing economic development data nationwide and Knight Foundation has made a significant contribution to ensure that the Arrowhead Business Connection program designs, launches and maintains a high quality regional economic web site and development portal which supports new and existing business interests,” he said.
The Northeast Entrepreneur Fund will support businesses in Duluth and Superior. “The grant will help us expand our training and technical assistance to help people start and grow small businesses – helping people create their own jobs,” said Mary Mathews, president of the fund.
A pilot program to improve storefronts will be part of the Local Initiatives Support Corporation (LISC) “At Home in Duluth” project. The grant will be used for community development corporations in Duluth’s Hillside, Lincoln Park and West Duluth business districts. “The Knight funds will allow as many as a dozen small business owners to invest in their properties,” said Pam Kramer, program director at Duluth LISC. “In addition, this support will allow us to leverage additional funds to continue this program, creating spin-off reinvestment by other business owners and a revitalization of these key neighborhood commercial districts.”
At the Greater Downtown Council, the grant will strengthen the Downtown Duluth Waterfront and its business climate, said Kristi Stokes, president of the council. “Across the country, special service districts have served as a key tool for improving the quality of life and economic vitality of downtowns and we are focused on that mission,” she said.
Polly Talen, Knight Foundation community liaison program officer, said: “Our initial support targets both existing, as well as emerging, leadership focused on economic development efforts in Duluth and the surrounding region. While several of these early grants focus on Duluth specifically, it is our expectation that future support will focus on efforts aimed to help the whole region thrive, not just survive, economically.” In addition, she said, the foundation plans to work with organizations to find ways to sustain their success and leverage additional support.
The John S. and James L. Knight Foundation promotes excellence in journalism worldwide and invests in the vitality of 26 U.S. communities where the Knight brothers had newspaper interests. Since 1986, the foundation has invested more than $10 million in the Duluth community.