YESTERDAY'S TODAY'S DATA - 90 YEARS LATER: MAPS AND - PageTurnPro
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
FEBRUARY 26, 2021 Helping businesses do business better. Price: $1.75
90 YEARS LATER:
YESTERDAY’S
MAPS AND
TODAY’S DATA
How Des Moines' redlined
neighborhoods are affected
by poverty today
SWEET TOOTH
COMMUNITY FRIDGE
1809 8TH ST
Join a Company
that Cares
We are F&G, and we are dedicated to helping those in need in the
Des Moines community.
Employees alone donated over $300k in 2020. From 16 hours of Volunteer
Time Off per employee, our Community Involvement Committee and Matching
Gift Program, F&G offers many opportunities for employees to lead charitable
initiatives such as our annual United Way campaign, food and toy drives.
By embracing our cultural values and giving back to our community, we are
able to build and strengthen our company, while being a great place to work.
$1M 90,000 $100K $600K+
IN FUNDS MEALS DONATED DONATED
to support our donated to the Food to the Polk County to the 2020 United Way
local communities Bank of Iowa Housing Trust Fund Campaign
F&G’s mission is to help more and Learn more about F&G
more people turn their aspirations
into reality, but we can’t do this if
culture and career
basic human needs such as food and opportunities and explore
shelter aren’t being met. That’s why our new headquarters.
F&G is proud to partner with amazing
Business Record | February 26, 2021
Chris Blunt nonprofits in Des Moines who are
President & making significant impacts to ensure fglife.com/about/culture.html
Chief Executive Officer these needs are met.”
“F&G” is the marketing name for Fidelity & Guaranty Life Insurance Company issuing insurance in the United States outside of ADV 2621 (02-2021)
New York. Life insurance and annuities issued by Fidelity & Guaranty Life Insurance Company, Des Moines, IA. 20-0218
2
CONTACT US
(515) 288-3336 | circulation@bpcdm.com
FOLLOW US
www.businessrecord.com
www.facebook.com/DMBusinessRecord
@BusinessRecord
CONTENTS
VOLUME 39 // NUMBER 9 // FEBRUARY 26, 2021 FEATURE STORY
LEADERSHIP
PUBLISHER & EXECUTIVE EDITOR
Chris Conetzkey
27
(515) 661-6081 | chrisconetzkey@bpcdm.com
YMCA CEO
EDITORIAL
EDITOR
OUTLINES
Emily Barske FINANCIAL
(515) 661-6085 | emilybarske@bpcdm.com
RECOVERY PLAN
SENIOR STAFF WRITERS
Kathy A. Bolten FOR STRUGGLING
(515) 661-6083 | kathybolten@bpcdm.com
Beats: Real Estate & Development NONPROFIT
Law & Government
Michael Crumb
(515) 661-6086 | michaelcrumb@bpcdm.com
Beats: Economic Development | Transportation |
Energy & Environment | Culture | Sales & Marketing
Joe Gardyasz
(515) 661-6084 | joegardyasz@bpcdm.com
Beats: Insurance & Investments | Health & Wellness
Manufacturing & Logistics | HR & Education
Banking & Finance
STAFF WRITER
Kate Hayden
(515) 288-3478 | katehayden@bpcdm.com
Beats: Tech & Innovation
OPERATIONS MANAGER FEATURES FEATURES COLUMNISTS
John Retzlaff
(515) 661-6082 | johnretzlaff@bpcdm.com
Calendar | On the Moves
FEARLESS EDITOR
Emily Blobaum
4 6 51
emilyblobaum@bpcdm.com
COPY EDITOR A CLOSER LOOK CRE UPDATE ETHANOL AND SOCIALISM
Kurt Helland TONY TIMM CONSTRUCTION UNDERWAY The Elbert Files: By Dave Elbert
ART & PRODUCTION CEO, Boys & Girls Club of Central Iowa ON NEW SOUTH-SIDE
CREATIVE DIRECTOR
Joe Crimmings CENTER
CREATIVE ASSOCIATES
52
Lauren Burt
Patrick Herteen
PHOTOGRAPHER
8
Duane Tinkey
COVER STORY THE MOST IMPORTANT
SALES
DIRECTOR OF BUSINESS RECORD 90 YEARS LATER: REBRAND CONVERSATIONS
SALES & BPC EVENTS
YESTERDAY’S MAPS AND Marketing: By Drew McLellan
Sara Brown
ASSOCIATE DIRECTOR OF ADVERTISING TODAY’S DATA
Laura Stapes
How Des Moines’ redlined
SENIOR ACCOUNT EXECUTIVES
Lori Bratrud neighborhoods are affected by
Dawn Donegan poverty today
SPECIAL ADVERTISING SECTION
ACCOUNT EXECUTIVE
Chrissy Smith
EVENT & PROJECT COORDINATOR
Stacey Thompson
ADMINISTRATION
BPC CHAIRMAN SPECIAL ADVERTISING SECTION
Connie Wimer
GIVING BACK
GIVING BACK
BPC PRESIDENT
Suzanna de Baca 2020 was a year of unprecedented challenges.
During the pandemic, our community needed help more than
BPC VICE PRESIDENT
perhaps ever. Greater Des Moines’ nonprofit and charitable
organizations were some of the first to step up. Thanks to
them, people, animals and small businesses received help or
Jason Swanson
Starting on page 31
found an escape from the harsh realities of isolation, job loss,
sickness and other problems stemming from COVID-19.
We are grateful for every one of these organizations
BUSINESS MANAGER and their contributions to Greater Des Moines.
Eileen Jackson
Business Record | February 26, 2021
ACCOUNTING SPECIALIST
Becky Hotchkiss
OFFICE MANAGER
Laura Stegemann
Business Record | February 26, 2021
INSIDE SALES REPRESENTATIVE
Alison Damon
31
WHO’S IN THIS ISSUE?
Business Record® (USPS 154-740, ISSN 1068-6681)
is published by Business Publications Corporation
Inc., The Depot at Fourth, 100-4th Street, Des A list of local people and the page number of the article in which they are mentioned.
Moines, Iowa 50309, (515) 288-3336. Contents
© 2021 Business Record. Published weekly.
Annual subscriptions $69.95. Single copy price is Leisha Barcus, 27 Mick Grossman, 6
$1.75. Copies of past issues, as available, may be
purchased for $4.50 each. Periodicals Postage Paid Fred Berry, 6 Tony Timm, 4
at Des Moines, Iowa. POSTMASTER: Send address
changes to Business Publications, The Depot at
Tyler Dingel, 27
Fourth, 100-4th Street, Des Moines, Iowa 50309.
33
CLOSER LOOK: Meet a leader you should know
TONY
TIMM
CEO,
Boys & Girls Club of Central Iowa
BY JOE GARDYASZ
Tony Timm was once the “not-so-good-kid” growing up
in the small eastern Iowa town of Tipton. He recalls the time
that he took some of his mother’s Avon cosmetics samples
and handed them out to the girls in fourth grade. And then
there was the time that he stole a silver dollar from his dad’s
coin collection and spent it on ice cream at the Dairy Queen.
He was quickly discovered after the shop owner, a friend of
his dad, called Timm’s father to ask him if he wanted his silver
dollar back. But the adults in his life never gave up on him,
which led him to find opportunities to give back by working
with nonprofit organizations. Timm, who was recently named
CEO of the Boys & Girls Club of Central Iowa, has more than 20
years of experience in the nonprofit sector. Most recently, he
was executive director of Children & Family Urban Movement.
Timm’s experience includes government positions and health
care, including positions with AmeriHealth Caritas Iowa,
Central Iowa Shelter & Services and the Windsor Heights City
Council. With seven club sites across Greater Des Moines,
the nonprofit serves more than 2,600 youths in grades
kindergarten through 12. AT A GLANCE
WHAT ORIGINALLY BROUGHT YOU TO
AGE: 46
CENTRAL IOWA?
HOMETOWN: Tipton
Growing up, I was the oldest of three. When my younger sister was
just 20 months old she was diagnosed with stage IV neuroblastoma — EDUCATION: Bachelor of Arts in
a tumor behind her right lung. So quickly we were the family in Tipton communications, Iowa Wesleyan University,
that had a kid with cancer. So I was in third, fourth, fifth grade, where Mount Pleasant
there was a lot going on, and everybody would ask about our sister and
how she was doing. My brother and I got bounced around to whoever FAMILY: He and his wife, Channon, have a
Business Record | February 26, 2021
could take us because my mom and dad were either at work or at the son, Charlie, and a daughter, Sophia
hospital for three weeks out of every month for Alicia to get chemo. It
wasn’t until I got involved with what was called the Heart Connection ACTIVITIES: Competitive darts player
— today, it’s called Children’s Cancer Connection — where my PHOTO BY DUANE TINKEY
brother and I went to a camp for siblings of kids facing life-threatening CONTACT:
illnesses. … At an early age that kind of put life in perspective that it EMAIL: ttimm@bgcci.org
wasn’t nearly as horrible for us as it was for others. … Growing up in the
program, I began to volunteer for [Children’s Cancer Connection] and PHONE: 515-559-4580
then coming out of college, I went to work there for 11 years.
4
HAVING LED OTHER NONPROFITS, HOW WOULD YOU so I think there’s a lot to be concerned about. At the same time, I do think there’s a
ASSESS THE STATUS OF BOYS & GIRLS CLUB OF CEN- lot of optimism, right? … We’re in it for the long haul; we’ll navigate each challenge
TRAL IOWA RIGHT NOW? that comes this year. We’ll figure out ways to be creative, whether that’s online
programming or in person. And we’ll keep delivering strong programs for our kids.
This is probably the largest organization, from a budget standpoint, to date that
I’ll be running. I think that they’re well grounded, and they’ve done a lot of great BECAUSE YOU WERE NAMED A FORTY UNDER 40 IN
work, and they have a good name in our community. I think there’s always room for 2006, WE KNOW SOME FUN THINGS ABOUT YOU. DO
growth, though — and opportunity as we look forward. How do we best serve those YOU STILL SHOOT OFF PROFESSIONAL FIREWORKS
in our community to make sure that they have those opportunities? That’s going DISPLAYS?
to take getting investors to believe in our mission with us, and us providing quality
programming and access, and staying true to making sure that we’re focused on I haven’t done a show in quite a while, but at one point I was licensed with
what the youth need to move forward. a fireworks display company here in Iowa to shoot off fireworks. That’s quite an
adrenaline rush when those big ones go off.
ARE THERE ANY PARTICULAR PROGRAMS THAT YOU
SEE A LOT OF POTENTIAL FOR GROWTH OR FURTHER AND ARE YOU STILL A COMPETITIVE DARTS PLAYER?
DEVELOPMENT?
Yeah — I took a couple of years off, but I’m back in, so we play weekly. Actually,
That’s probably going to be a little trickier for me to answer right now. I think it’s transitioned to remotely, so the teams that we play now are in other states. We
the bigger picture, the real focus for us is coming out of COVID. And you know, of don’t even see the people that we play here locally.
course, with kids coming back to school … full time, how do we safely transition to
that quality program after school, ensure safety, and provide a place for kids to be TELL ME ABOUT YOUR FAMILY.
when their moms and dads are working? … I would anticipate that [since] kids like
excitement, they like where their friends are, and so as they go to school and see My wife and I have been married 21 years. Last year, we were supposed to
their friends going to clubs, they’re going to want to come. celebrate our 20th anniversary in Hawaii. And of course, because of COVID that’s
been pushed back, and we’re seeing if we’re going to get to go this year, or maybe
HOW DO YOU SEE YOUR ROLE AS A LEADER? we’ll be celebrating our 30th sometime in the future. We have two kids. Charlie
is our oldest. He’s a freshman at Roosevelt. Sophia is our youngest and she’s a fifth
I’ve always approached it from a standpoint that we’re one entire team, right? grader at the Downtown School. And then our dog, Liberty, about a 100-pound
Either we’ll be successful together, or we’re going to fail together. Because if one golden Lab.
department isn’t where it needs to be, it doesn’t do us any good to go out and raise
a ton of money if we don’t have quality programs to invest in and it doesn’t do any DO YOU ENJOY READING, AND DO YOU HAVE ANY FA-
good for us to have such quality programs that we can’t deliver because we don’t VORITE BOOKS YOU’VE READ RECENTLY?
have money. So it’s a give-and-take [situation]. I think it’s important that all of
our departments feel like there’s cross communication, that we all have the same I try to read books that are either going to help me personally figure out how
information, we all hold ourselves accountable. And I expect the leadership team to better myself or how to better the team. I recently read one that talked about the
here to hold me accountable. If I say something wrong or do something wrong, I opioid epidemic that we created, and all of the downfalls in small communities
need to be called out just like everybody else because that’s the only way we’re going across the country, and how that really came to life and how bad it got before we
to learn. started paying attention. And actually, there’s this guy named Jim Cain, he’s out
on the East Coast and he does a lot with youth programming. I actually got to
AS WE MOVE PAST THE PANDEMIC, ARE THERE ANY participate in an article [in a book] published with him about online learning and
OTHER PARTICULAR CHALLENGES THAT YOU SEE IN what we learned with youth trying to navigate that world last year. So I finally get to
YOUR FIRST YEAR LEADING THE ORGANIZATION? say that I’m published. [The book: “The Learning Curve: Navigating the Transition
from Facilitating in the Real World to Facilitating in a Virtual One” by Jim Cain. n
I think 2021 is going to be a difficult year yet. There’s still a lot of unknowns. We
had high hopes for a fast-paced vaccine rollout, and we’ve seen a few glitches and so JOE GARDYASZ is a senior staff writer at Business Record. He covers insurance
that’s going to take a little longer. I think certain aspects of our economy are going & investments, health & wellness, manufacturing & logistics, HR & education,
to take a little longer to recover, making questionable just how much support there banking & finance.
will be in the corporate and foundation side in the world. Individuals definitely
have been affected with potential layoffs and downsizing and restructuring, and E: joegardyasz@bpcdm.com
P: (515) 661-6084
YOUR LIFE IS YOUR LEGACY.
Business Record | February 26, 2021
START LIVING IT TODAY.
Are you ready for a family office?
®
515.421.4870 | legacybridgepfo.com
A Registered Investment Adviser
5
CRE UPDATE
An architectural rendering of a new strip center under construction at 3727 S.E. 14th St. Little
Caesars Pizza will be the center’s anchor tenant. Rendering special to the Business Record
CONSTRUCTION UNDERWAY ON
NEW SOUTH-SIDE CENTER
BY KATHY A. BOLTEN
A 6,000-square-foot strip center is under construction at 3727 S.E. 14th St. in Des “That location was our highest-volume store and we wanted to stay in the
Moines on a 1.7-acre parcel that has sat undeveloped for more than two decades. area,” he said. The store began working with DoorDash in 2019, which helped
The center’s anchor tenant will be Little Caesars Pizza, which will offer de- the business thrive during the pandemic, Berry said.
livery service and a drive-thru. “Having that third-party delivery service helped us tremendously when the
The pizza store had previously been located in a building at 3220 S.E. 14th pandemic started,” he said. “We think the drive-thru helps set us up even bet-
St. that was owned by the company that operated Family Video. That video ter for this kind of environment.”
rental business closed all of its stores nationwide in late 2020 and early 2021. Berry said he had hoped to start construction on the strip center before Oc-
The move meant Little Caesars needed to find a new location, said Fred tober but experienced several COVID-related delays. The recent heavy snows
Berry of Detroit, who operates two other Little Caesars Pizza stores in Des and frigid temperatures have also slowed construction, he said.
Moines and one in Marshalltown. Berry said he expects to open the Little Caesars Pizza shop in mid- to late
“Our business had been getting better and better, and we wanted to keep it March. His previous store had about 25 employees; he said he expects the new
going,” Berry said. store to have about 35 workers.
He said when he learned he would need to move out of the space next to Mick Grossman, managing director of Keller Williams Commercial in
the video store, he began looking for a new location that could offer drive-thru West Des Moines, is working with Berry to lease the other two bays in the
service and delivery. He said he wanted to be near where his store originally center, both about 1,500 square feet. Koester Construction Co. is the project’s
Business Record | February 26, 2021
had been located. When he couldn’t find space to lease that met his criteria, he general contractor. n
decided to build the strip center.
“This will be the first time we haven’t leased space,” he said.
KATHY A. BOLTEN is a senior staff writer at Business Record.
Berry, through Badawi Properties LLC, purchased the vacant tract in Octo-
She covers real estate & development, law & government, and retail.
ber from Halle Properties LLC for $350,000, Polk County real estate records
show. The parcel is less than a half-mile south of his previous Southeast 14th E: kathybolten@bpcdm.com
Street location. Also in October, Badawi Properties took out a commercial P: (515) 661-6083
building permit valued at $1.3 million, records show.
6
Clients are the centerpiece
of our work
BTC Capital Management provides investment management and
advisory services for a wide variety of institutions, including
nonprofits and foundations.
Founded in 2003, our firm is built on principles of integrity
and discipline. We adhere to a consistent investment philosophy,
risk-aware portfolio development, and provide unbiased consultation
along with tailored solutions.
Scott Eltjes, CFA, FLMI Jon Augustine, CFA Dave Jackson
CEO and President Chief Investment Officer Senior Managing Director
Contact us today to learn more about
how BTC Capital Management, an affiliate
of Bankers Trust, can partner with
your organization for any investment
Business Record | February 26, 2021
management needs.
BTCCapitalMgmt.com | (515) 245-5638
Bankers Trust is a Member FDIC insured institution. BTC Capital Management is a SEC Registered Investment Adviser. Non-deposit
investments are not insured by the FDIC or any government agency and are not bank guaranteed. They are not deposits and may lose value.
7
8
Business Record | February 26, 2021
90 YEARS LATER:
YESTERDAY’S
MAPS AND
TODAY’S DATA
How Des Moines' redlined
neighborhoods are affected
by poverty today
BY KATE HAYDEN
One year after the 2020 public exhibit Undesign the Redline:
DSM debuted at Franklin Junior High School, the borders of the
original redlined map of Des Moines stands out in memory. It leads
you to wonder: How are these neighborhoods affected today?
As the base map, the Business Record used the original 1930s
Des Moines Securities Map created by the Home Owners Loan Corp.,
which developed a home valuation and mortgage risk assessment
now known as redlining to structure racism and inequality into
home loan assessments. This map was republished by Polk County
Housing Trust researchers along with national and local histories of
redlining during the 2020 public exhibit Undesign the Redline: DSM.
On the maps in this story, the Business Record highlighted
neighborhoods in HOLC categories “C,” which HOLC defined as
‘fair’ risk, and “D”, which HOLC defined as ‘bad’ risk. Neighborhoods
“A” (“best”) and “B” (“good”) are in gray. (Of note: The gray parcel
of land between neighborhoods C6, C5 and D4 is the Iowa State
Fairgrounds.)
Using public information from the city of Des Moines, the U.S.
Census Bureau and data collected by the Des Moines Area Religious
Council’s food pantry network, we wanted to see how some recent
community initiatives are present in highlighted neighborhoods the
HOLC deemed risky decades ago. We also reviewed visitor growth at
DMARC pantries since 2012, and how the Census Bureau identifies
Business Record | February 26, 2021
school-aged children in poverty within their district borders.
This presentation is not enough to complete a picture of
how redlined neighborhoods are affected today, but we hope to
offer a different lens for businesses and organizations invested in
understanding food assistance, poverty and redlining’s legacy in
our city.
CONTINUED ON PAGE 10
POLK COUNTY RIVER PLACE PANTRY
PHOTOS BY EMILY BLOBAUM
9
C1
C1 C6
C6
D1
C1 C6
C2 D2
D6
C5
C5
D2 D5
DES
MO
INE
SR
D4
IVE
R
C3
D3
C4
C3
C4
HOW NEGLECTED
CONTINUED FROM PAGE 9
‘NUISANCE Beginning in 2019, the city of Des Moines
identified 237 blighted properties to target through
program reviews properties across the city, most
addresses declared public nuisance (published
PROPERTIES’
the program Blitz on Blight, funded in part from online at bit.ly/3dqtNzn) are condensed in
$700,000 of local option sales tax collected in fiscal neighborhoods redlined by the original HOLC maps.
year 2020. Properties targeted must be declared a In 1938, HOLC wrote in the map description that
ALIGN WITH
public nuisances by city government, meaning that the properties in neighborhood C-2 averaged 30 years
property conditions are insufficient for resident old, and some large homes were being converted into
occupation according to the housing code. duplexes and apartments (link: bit.ly/2No1E11). The
REDLINING MAPS On the map above, each blue dot represents blue dots located between neighborhoods D-1 and
Business Record | February 26, 2021
one structure targeted by the program. As of 2021, C-6 are concentrated in what HOLC defined as the
56 of these addresses have been demolished at Highland Park District, or B-1.
an estimated cost of $1,422,870. Although the
CONTINUED ON PAGE 12
10Business Record | February 26, 2021
CLOCKWISE, FROM TOP: 1625 Eighth St., 1316 Jefferson Ave., 1507 11th St.,
1446 Eighth St., 1427 10th St.
11C1
C1 POLK COUNTY C6
RIVER PLACE C6
PANTRY
D1
CATHOLIC
C1 CHARITIES C6
OUTREACH
C2 D2
D6
DRAKE C5
AREA C5
PANTRY D2 D5
DES
MO
INE
SR
D4
IVE
R
C3
BIDWELL
RIVERSIDE
PANTRY
D3
C4
C3
C4
DMARC: WHO IN
CONTINUED FROM PAGE 10
THE COMMUNITY The Des Moines Area Religious Council
launched the first location in its Food Pantry
Data collected by DMARC-affiliated pantries
uses the race and ethnicity standards set by the U.S.
NEEDS FOOD
Network in 1976, but it was not until DMARC Census Bureau and U.S. Department of Housing and
launched its own data dashboard project in 2012 Urban Development, which designates ethnicity
that the organization and its affiliate partners could options as Hispanic/Latino or Non-Hispanic/Latino.
ASSISTANCE?
see connections between location visits, client The analysis, seen in the map above, shows that these
demographics and other context. highly used pantries are in or near neighborhoods
Above, DMARC’s four most-visited pantries that were redlined.
are Bidwell Riverside, Drake Area Food Pantry, Polk While the majority of clients served are white,
Business Record | February 26, 2021
County River Place and Catholic Charities Pantry. the data shows people of color are disproportionately
DMARC Mobile locations are the network’s fifth- affected by food insecurity as they make up a larger
most used pantry locations, and DMARC keeps an portion of DMARC clients served than within Des
updated schedule of the trailer’s appearances at 31 Moines’ population.
potential locations online.
CONTINUED ON PAGE 14
122021 MID-IOWA COUNCIL, BSA
GOVERNOR’S LUNCHEON –
ANOTHER GREAT SUCCESS!
The 2021 Governor’s Luncheon was held Feb. 3 at the Maytag Scout Center. The
event was virtual and attended by hundreds of community and business leaders,
legislators, county and city officials, Scouting leaders and families.
Mr. Greg Edwards, President and CEO of Catch Des Moines served as Event
Chair. With his leadership, this year’s event was one of the most successful in the
luncheon’s history, generating revenue of $113,425 that will directly benefit Scouts
in the 27 counties served by the Mid-Iowa Council, Boy Scouts of America.
The program featured local Scouts, as well as an inspirational, memorable message
from Keynote Speaker Katie Higgins-Cook, the first female Blue Angels Pilot.
Top photo: Matt Hill (Scout Executive/CEO Mid-Iowa Council) and Greg Edwards (President & CEO Catch Des Moines)
Bottom photo: Katie Higgins Cook (First Female Blue Angels Pilot)
THIS IS ONLY POSSIBLE THANKS TO OUR MANY GENEROUS DONORS. We hope you can join us for the
2022 Governor’s Luncheon, Feb.
PRESENTING SPONSOR PLATINUM SPONSOR GOLD SPONSORS
2, 2022. You or your organization
can support local Scouts by
being an event Sponsor, Table
Host, or guest. For inquiries
SILVER SPONSORS
and sponsorship details contact
Darla Hunzelman at the Mid-Iowa
Council: Darla.Hunzelman@
Scouting.org or (515) 266-2135.
Business Record | February 26, 2021
Led by Scout Executive/CEO, Matt Hill, Mid-Iowa Council serves 13,700 youth throughout a 27-county Central Iowa area.
Scouting for boys and girls (ages 5-17) and young adults (ages 14-20) builds character through outdoor adventure, prepares
youth to be participating citizens, and develops physical fitness. Scouting is the premier leadership development program
for youth today. 40% of the youth we serve are living at or below poverty level, but no young person is ever turned away for
inability to pay. We raise funds in order to give a Scouting experience to every boy or girl who desires to join. This is only pos-
sible thanks to our many generous sponsors and donors. Thank you!
13BIDWELL RIVERSIDE PANTRY
CONTINUED FROM PAGE 12
8.5%
OTHER
25.1% 9.8%
HISPANIC ASIAN
BIDWELL BIDWELL
RIVERSIDE RIVERSIDE
PANTRY PANTRY
ETHNICITIES RACES
SERVED 18.6% SERVED
BLACK
60.7%
Business Record | February 26, 2021
WHITE
74.9%
NON-HISPANIC
Categories in the “Races Served” charts on
the following pages include the top four
fields. HUD categories Native Hawaiian/
Pacific Island, American Indian/Alaskan
Native and Unknown are not included.
1429.3% 13.4%
HISPANIC OTHER
9.6%
ASIAN
CATHOLIC CATHOLIC
CHARITIES CHARITIES
OUTREACH OUTREACH
ETHNICITIES RACES
58%
WHITE
SERVED SERVED
12.1%
BLACK
70.7%
NON-HISPANIC
11.2% 7.6%
OTHER
HISPANIC
7.7%
ASIAN
POLK POLK
COUNTY COUNTY
RIVER PLACE RIVER PLACE
PANTRY PANTRY
ETHNICITIES 24.9% RACES
SERVED BLACK SERVED 57.5%
WHITE
88.8%
NON-HISPANIC
14.6%
22.8% OTHER
HISPANIC
9%
ASIAN
DMARC DMARC
MOBILE MOBILE
ETHNICITIES RACES
SERVED SERVED 49.7%
WHITE
Business Record | February 26, 2021
24.2%
76.8% BLACK
NON-HISPANIC
CONTINUED ON PAGE 16
15DRAKE AREA PANTRY
11%
14.2% OTHER
CONTINUED HISPANIC
FROM PAGE 15
5.2%
ASIAN
DRAKE DRAKE
AREA AREA 47.6%
PANTRY PANTRY WHITE
ETHNICITIES RACES
SERVED SERVED
33.7%
85.8% BLACK
NON-HISPANIC
Business Record | February 26, 2021
CONTINUED ON PAGE 18
16IOWANS WHO REPORTED THEY COULD
NOT COVER ONE MONTH OF EXPENSES
INCREASED FROM 18% PRE-PANDEMIC
TO 31% BY FALL 2020.
COVID-19 FINANCIAL IMPACT SURVEY, BY UNITED WAYS OF IOWA, DEC. 2020
Trusted advice
in uncertain times.
The COVID-19 outbreak is an evolving crisis,
and we want to keep nonprofits up to speed
on the latest tax and accounting updates
to help you navigate the economic effects.
Visit our COVID-19 Resource Center at
bkd.com/covid-19 for relevant news,
changing guidelines, and new regulations.
Everyone needs a trusted advisor.
Business Record | February 26, 2021
Who’s yours?
515.223.0159 • @BKDNFP
17CONTINUED FROM PAGE 16
DMARC WATCHES STEADY
GROWTH OF NEIGHBORHOOD
FOOD PANTRY VISITORS
Since launching DMARC’s data collection initiative, the
nonprofit has tracked a year-over-year growth in client visit
counts across its Central Iowa network. 2013, the first full year
on record through DMARC’s data dashboard, counted 22,828
unique individual visitors to DMARC pantries in Des Moines city
locations. By 2018, DMARC reported 30,933 unique individual
visitors to Des Moines pantries, making up about 76% out of the
food pantry network’s total 40,522 visitors.
In 2020, the first year the COVID-19 pandemic and
accompanying economic recession affected Iowans, the DMARC
Food Pantry Network tracked another edge up in individual
visitors: 31,781 to Des Moines pantries, about 77% of the
network’s total 41,041 visitors.
COMBINED UNIQUE TOTAL
FOR ALL DMARC SITES IN
CENTRAL IOWA
41,041
DES MOINES UNIQUE
40,000
TOTAL INDIVIDUAL PANTRY 40,522
VISITORS BY YEAR
31,781 35,000
30,000 30,933 30,000
25,000 25,000
22,828 22,828
20,000 20,000
15,000 15,000
10,000 10,000
5,000 5,000
Business Record | February 26, 2021
0 0
2013 2018 2020 2013 2018 2020
CONTINUED ON PAGE 20
18Business Record | February 26, 2021
The Sweet Tooth Community Fridge was started by Monika Owczarski in November 2020 as a way to
address food insecurity in the metro. The fridge is located in the River Bend neighborhood on Eighth Street.
19CONTINUED FROM PAGE 18
U.S. CENSUS REPORTED
DOWNWARD TREND OF
DES MOINES COMMUNITY
SCHOOL CHILDREN IN
POVERTY PRE-PANDEMIC
240,000 231,313 232,719
220,000 214,439
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000 36,026 38,217 38,244
20,000
8,420 6,815 6,127
0
2013 2018 2019
TOTAL POPULATION WITHIN DES MOINES INDEPENDENT
Business Record | February 26, 2021
COMMUNITY SCHOOL DISTRICT BORDERS
POPULATION OF RELEVANT CHILDREN 5-17 YEARS OF AGE
EST. NUMBER OF RELEVANT CHILDREN 5-17 YEARS OF AGE IN
POVERTY RELATED TO HOUSEHOLDER
20The estimated number of school-aged children living in poverty
within district borders of the Des Moines Independent Community
School District has declined since 2013 even as the general
population within the district grows, according to the U.S. Census
Bureau’s Small Area Income and Poverty reports from the last few
years.
However, the most recent data available from the U.S. census
comes from Jan. 1, 2020, using school district boundaries from the
2019-2020 school year. That precludes families financially affected by
the 2020 COVID-19 pandemic and economic recession.
In a study released in December 2020 by United Ways of Central
Iowa, researchers identified a growing population of the “newly
needy.” As the Business Record reported that in December, Iowa
respondents who reported the household’s primary source of income
was a job or jobs of more than 35 hours a week was 74% pre-COVID,
but dropped 8 points to 66% at the time of the survey. Those relying
on unemployment payments as the primary source of household
income rose from 1% pre-COVID to 11% at the time of the survey.
Iowans who reported they could not cover one month of expenses
increased from 18% pre-pandemic to 31% at the time of the survey.
Thirteen and one half percent of respondents reported they were
now visiting food pantries to meet household needs. n
KATE HAYDEN is a staff writer at Business Record.
She covers tech & innovation.
E: katehayden@bpcdm.com
P: (515) 288-3478
Get back
to wellness
Your personalized care is more important than ever. We are
open with extra safety precautions to keep you healthy. Our
expert physicians, nurses, specialists and care teams are
here for all of your health and wellness needs.
Business Record | February 26, 2021
Call 515-2HEALTH (243-2584) or visit
MercyOne.org/desmoines today.
21ONEVOICE
MONTHLY INVESTOR AND REGIONAL MEMBER NEWSLETTER
D E S M O I N E S , I O WA Sponsored by
MARCH 2021 | VOLUME XVI | ISSUE III
PROGRESS CONTINUES ON DSM USA
DICO SITE TRANSFORMATION EVENTS
IN DOWNTOWN DSM
Pro Iowa, the campaign working to bring professional soccer to Iowa,
is working in partnership with Iowa Soccer Development Foundation, The Greater Des Moines Partnership is focused on hosting virtual
the owner of the Pro Iowa Stadium and Global Plaza, Krause+, the events during the social distancing period as dictated by COVID-19.
real estate development arm of Krause Group and the City of Des Stay tuned for information on virtual events as they are scheduled.
Moines to drive revitalization of areas in Downtown Des Moines
(DSM) including transformation of the Dico Superfund site, into a Go to DSMpartnership.com/events for the most
welcoming community space for sports, community gatherings and
up-to-date information.
events. The U.S. Environmental Protection Agency also announced
the court approval of a settlement agreement with Dico, Inc. and
Titan Tire Company for payment of the Agency’s past cleanup costs
and future cleanup work at the Des Moines TCE Superfund site.
FIND UP-TO-DATE
Learn more about the USL Pro Iowa project at uslproiowa.com.
COVID-19 RESOURCES
FROM THE PARTNERSHIP
DSM BOOK FESTIVAL EVENT DMDC 2021 DATES The Greater Des Moines Partnership continues to update its COVID-19
Rapid Response Hub to share guidance and resources for businesses,
RETURNS THIS SPRING WITH ANNOUNCED organizations and individuals.
HYBRID PROGRAMMING
Learn more at DSMpartnership.com/covid-19.
DSM USA BUZZ
• The Ascent named DSM as #1 Most Affordable City in
the Midwest. The rankings were decided by comparing a
typical resident's income to the city's cost of living.
• DSM was ranked #2 Safest Place to Live in the U.S. by
U.S. News & World Report. The analysis is based on metro
areas’ murder and property crime rates per 100,000
people.
• The State of Iowa was ranked #2 among “States Whose
Unemployment Rates Are Bouncing Back Most” by
WalletHub.
The DSM Book Festival announced that the event will be back in The dates for The Partnership’s annual DMDC event have been
2021 with hybrid programming options. The Festival will span tentatively set for Sept. 22 – 24. Each year, DSM businesses, civic and • Dallas County is the #3 Fastest-Growing Exurb over the
four Saturdays: March 27, April 3, April 10 and April 17 and last decade according to CapRelo and is #8 over the last
regional community leaders travel to Washington D.C., to present The
will feature nationally acclaimed authors, hands-on learning 30 years.
Partnership's Federal Policy Agenda. Stay tuned for more information
activities, writers’ workshops, children's activities and more. All • DSM was ranked #8 on WalletHub’s list of cities whose
as the impacts of COVID-19 are taken into consideration for a hopeful
four dates will offer a mix of online and in-person programming unemployment rates seem to be on a decline after the
return to Washington, D.C. initial impact of the COVID-19 pandemic. The analysis is
from 9 a.m. – 5 p.m. The in-person events will follow all health
and safety guidelines. based on the latest changes in the city's unemployment
Learn more about DMDC at DSMpartnership.com/publicpolicy. numbers compared to the year prior, as well as the overall
unemployment rate.
Learn more and see the list of headlining authors at
DSMpartnership.com/DSMbookfestival. • DSM was ranked as the #11 Most Affordable City to Buy a
Home by Forbes Advisor.
DSMpartnership.comMARCH 2021 ONEVOICE PAGE 2
host pre- and post-game gatherings and community events to BLOG PREVIEWS
provide a welcoming space for all residents from all backgrounds.
Public seating, landscaping, restaurants and other retail will
contribute a variety of opportunities to aid in activating the area. The Partnership publishes regular posts to its blog covering
Recognized as a global sport the Pro Iowa soccer stadium is another a wide range of topics. See these blog posts and more at
amenity that will help attract talented, diverse young professionals DSMpartnership.com/blog.
to DSM. The project will create a magnet for new business
development and boost civic pride for our region.
This project is one of a long list of major projects planned or in the
works. Another to keep an eye on: The City of Urbandale, City of Des
Moines, Polk County, Merle Hay Mall and the Des Moines Buccaneers
are working on a transformation of the Merle Hay Mall Campus
that would include a 3,500-seat hockey arena and entertainment
venue occupying the former Younkers department store, an ice
sports training and competition center occupying the current Kohl’s
department store, redevelopment of the former Sears store site into
a new Kohl’s store and additional retail, upgrades to the Merle Hay FIND BLACK HISTORY RESOURCES + EVENTS IN IOWA
CHAIR’S COLUMN Mall buildings and surroundings and addition of affordable housing Discover DSM-based Black-owned businesses and find Black History
to the site. The project is expected to produce an economic impact to
FRED BUIE, 2021 CHAIR the State of Iowa of nearly $127 million and more than 1,000 jobs.
Month resources and events across the region.
DICO SITE REDEVELOPMENT ADDS TO PLACEMAKING Additionally:
MOMENTUM
• Lauridsen Skatepark — the largest skatepark in the U.S. — is
As we continue to work toward economic recovery, one of the most scheduled to open in Downtown DSM in May.
important things our community can do is continue to invest in
• The Central Iowa Water Trails project continues to move
major projects. Communities that invest in themselves even during
forward, as recently the Des Moines Zoning Board of Adjustment
tough times are communities that thrive during good times. Greater
approved conditional use permits for three access points at
Des Moines (DSM) is one of those communities.
Prospect Park, Birdland Marina and Harriet Street.
We have a number of major placemaking and economic development
• Des Moines Public Schools and Drake University are planning
projects in the works in DSM. These projects continue to take
significant steps forward.
for a new $19.5 million stadium complex adjacent to Drake’s Knapp VACCINATIONS - DEBUNKING THE MYTHS
Center that will host local football and soccer games.
In February, Pro Iowa, the campaign working to bring professional Learn how vaccines are effective and necessary at keeping the DSM
• Construction on the Des Moines Transload Facility will begin community safe.
soccer to Iowa, Iowa Soccer Development Foundation, the owner of
next month.
the Pro Iowa Stadium and Global Plaza, Krause+, the real estate
development arm of Krause Group and the City of Des Moines • Des Moines International Airport continues to take steps to
announced more details on plans to transform the Dico Superfund build a new terminal.
site into a welcoming space for sports, community gatherings and
events. A few days later, The U.S. Environmental Protection Agency These are just a few projects that are taking place.
(EPA) approved a settlement that will officially transfer 43 acres of
the site to the City of Des Moines for development.
In an age where people can increasingly live anywhere, we want
Transforming the Dico site has long been a priority for the city, and them to choose to live right here in DSM. It is critically important
this is the right project at the right time to get it done. The Dico site to continue to invest in these projects to create a community where
is proposed to become the Pro Iowa Stadium and Global Plaza. The people want to be, with world-class amenities that are accessible
6,300-seat stadium will house a USL Championship professional and inclusive for all. LEADERSHIP TRAINING DURING THE 2020 PANDEMIC
division two soccer team beginning in 2024. The Global Plaza will
Look at all the offers that the DSM Fellowship Program provides to help
others grow in leadership through virtual options and diversity training.
CHAMBER SPOTLIGHT
WEST DES MOINES CHAMBER OF COMMERCE
President: Katherine Harrington
Number of Members: 711
What Initiative/Project Are You Looking Forward to
in the Upcoming Year?
There are so many things to mention, however, we are
most looking forward to the Black and Brown Business
Summit. We are also working on a big event in West Des FUTURE READY IOWA EMPLOYER INNOVATION FUND
Moines (WDM) that draw people from all over the state to Dan Greteman, CIO of Ruan Transportation Management Systems,
help position WDM as the best place to live, work and play. discusses the company’s dedication to leverage technology today and
into the future to drive business.
DSMpartnership.comMARCH 2021 ONEVOICE PAGE 3
DOWNTOWN FARMERS’ MARKET 2021 RAISING GLOBAL INSURANCE
SOCIAL DISTANCE-FRIENDLY CAPITAL SERIES KICKS SYMPOSIUM ANNOUNCES
EVENT OFF IN MARCH 2021 EVENT
The Downtown Farmers’ Market will return for its 2021 season The Greater Des Moines Partnership, LWBJ and BrownWinick The Global Insurance Symposium has announced its 2021
as a modified in-person Market in its traditional location in the announced the return of the 2021 Raising Capital Series. The first conference is a hybrid event that will be held on June 28 – 30.
Historic Court District. The season will begin on Saturday, May 1, session, The Process of Raising Capital, will kick off on Thursday, Attendees can participate virtually or in-person at the Community
and is scheduled to continue each Saturday through the end of March 25 at 8:30 a.m. During this five-part series, local startup Choice Credit Union Convention Center at the Iowa Events Center in
October. The scaled-back Market will focus on providing only fresh company founders in DSM will have the opportunity to learn from Downtown DSM.
produce and farm and artisan packaged food from around 110 local
other entrepreneurs and investors on how to raise equity capital.
vendors to the community in a safe, socially distanced way. Social
Learn more at globalinsurancesymposium.com.
distancing guidelines will be followed in accordance with COVID-19
regulations and guidelines. Masks will be required for attendees and Learn more and register at DSMpartnership.com/events.
participating vendors.
Learn more at DSMpartnership.com/desmoinesfarmersmarket.
#DSMstrong
BRAGGING RIGHTS
• Three key sites for the Downtown DSM portion of the Central Iowa Water Trails project received approval. The Des Moines Zoning Board of Adjustment approved permits for three Raccoon River access points at
Prospect Park, Birdland Marina and Harriet Street.
• Hubbell Homes won the bronze National Housing Quality Award from Pro Builder magazine. Hubbell was the first Iowa builder to win this honor.
• BKD was named as one of Glassdoor's Best Places to Work in 2021.
• Simpson College was named one of the top online programs in the country by U.S. News & World Report.
• Des Moines Public Schools and Drake University announced a collaboration for a DMPS community stadium to be completed by the Summer of 2022. The new field will house high school and middle school
football and soccer games.
• The UnityPoint Health – Iowa Methodist Transplant Center reached its transplant record in 2020. The team preformed 125 kidney transplants, which doubled the number of transplants from the previous high.
• Wellmark Blue Cross Blue Shield of Iowa earned a perfect score for the Human Rights Campaign Foundation’s 2021 Corporate Equality Index for the fifth year in a row. This benchmarking tool analyzes the
corporate policies and practices that impact the LGBTQIA+ community.
• TrustLayer, a collaborative risk management platform, announced that it completed a $6.65 million financing round to help fund their insurance verification and compliance program. Announced participants
included DSM-based companies Holmes Murphy & Associates and BrokerTech Ventures.
• MercyOne Des Moines Medical Center celebrated its second year providing care as a unified health system. The collaboration effort brought in 3.3 million patients and contributed over $95 million in
community benefits.
• Paul Ruppercht, President of R&R Real Estate Advisors, was inducted in the Midwest Commercial Real Estate Hall of Fame.
DSMpartnership.comONEVOICE MARCH 2021 | PAGE 4
SMALL BUSINESS SUCCESSES
TOP FIVE FINANCIAL BLIND SPOTS OF
GROWING BUSINESSES
BY COURTNEY DERONDE, CPA, CO-MANAGING PARTNER
AT TDT CPAS AND ADVISORS
Each stage of business has unique opportunities and challenges.
Just when you think you’ve figured out how to navigate one stage, the
growth and scale you’ve achieved can result in a whole new set of
challenges you didn’t anticipate.
Here are the top five financial blind spots for growth stage businesses:
1. You’ve Reached Your Limit: Carrying out tedious roles and
responsibilities can be risky. If someone else wouldn’t pay you to
process payroll, keep the books or screen resumes, your business
shouldn’t be paying you to do it either.
2. Your Gut Feeling That Something is Inaccurate: As your
business grows, you can no longer keep the financial details
in your head. You need accurate, relevant financial reports that
provide a clear picture of your company’s revenue. Without
this information, you can end up with lots of activity, but little
profitability.
3. You Are Spending a Lot of Time Putting Out Fires: As you add
more people and activities in your business, it becomes challenging Neumann
is a full-service
to tell whether you’re fixing symptoms or the underlying causes.
You must deal with the acute issues in your business and prevent
future issues.
4. You Have More Cash Than You’re Used to: As your business commercial builder.
We are committed to
grows and becomes more profitable, you’ll find yourself with a
new problem — excess cash. Is more money really a problem?
It’s also easy for inefficient processes to become the status quo.
The comfort of excess cash can cause you to undermine your
own success.
being the builder SPONSORSHIP
and AD
5. You Have a Blurry Vision of The Future: You have a sharp
vision and accurate financial projections for your business.
employer of choice in
Otherwise, you’re relying on a strategy of hope. Though hope is a
wonderful virtue, it is not an effective strategy. the communities we
Read this and other small business blog posts at
DSMpartnership.com/blog
work and live in.
ABOUT THE PARTNERSHIP
The Greater Des Moines Partnership is the economic and community
development organization that serves Greater Des Moines (DSM), Iowa.
Together with 24 Affiliate Chambers of Commerce, more than 6,500
Regional Business Members and more than 365 Investors, The Partnership
drives economic growth with one voice, one mission and as one region.
Through innovation, strategic planning and global collaboration, The
Partnership grows opportunity, helps create jobs and promotes Des
Moines as the best place to build a business, a career and a future.
Send us your news! To be featured in “Bragging Rights,” send us news
items such as business expansions, awards, industry recognition, etc.
You must be a Greater Des Moines Partnership Investor or an Affiliate
Member to be featured. Contact Kyle Oppenhuizen at (515) 286-4972 or at
koppenhuizen@DSMpartnership.com or email info@DSMpartnership.com.
PUBLICATION INFORMATION
For editorial comments or questions, contact Courtney Shaw, Senior
Vice President of Communications, at (515) 286-4919. For circulation
changes, contact (515) 286-4950.
The Standard of Excellence
DSMpartnership.com
NeumannBros.comCONGRATULATIONS TO THE CLASS OF 2021
Nola Aigner Davis Dylan DeClerck Kendra Marshall Emily A. Stork
Polk County Health Department Can Play Sammons Financial Group Bankers Trust Co.
Shaimaa Aly Goizane Esain Mullin Cory McAnelly Amy Strutt
Wells Fargo RBI Marketing Principal Financial Group Wells Fargo
Rita Bettis Austen Dr. Anthony Ferguson Jr. Elizabeth Meyer Ruffin Tchakounte
ACLU of Iowa West Des Moines Community Davis Brown Law Firm Des Moines University
Schools
Leah Brandon Manisha Paudel Kristine Thompson
ChildServe Molly Hanson City of Des Moines Greater Des Moines Partnership
RDG Planning & Design
Ben Butzke Rachel Pfundstein Manny Toribio
Butzke Burch Construction Eric Heininger Holmes Murphy & Associates McClure
Eden+ Fundraising Consulting
Kenia Calderón Cerón Courtney Reyes (she/her) Melissa Vine
GreenState Credit Union Ben Keenan One Iowa Beacon of Life
Principal/Coldwell Banker
Lindsay Chase Jennifer A. Rhuppiah Kasey Vogel
Holmes Murphy & Associates Julie Kenney ITC Midwest LLC Community Choice Credit Union
Iowa Department of Agriculture
Tyler Coe Jon Sargent Leng Vong Reiff
and Land Stewardship
Whitfield & Eddy Law PLC Todd & Sargent Inc. Akili Design & Marketing
Jen Cross Magan Lewis Megan L. Srinivas Services
Corteva Agriscience
Great Outdoors Foundation University of North Carolina Michelle Yoshimura-Smith
Alexis J. Davis Gregory Lin Institute of Global Health and Wells Fargo
Drake University Infectious Diseases
United Way of Central Iowa/ Elizabeth F. Zaletel
Pyramid Theatre Company Colleen R. MacRae Dave Stone Wells Fargo Bank, National
Nyemaster Goode PC United Way of Central Iowa Association
VIRTUAL EVENT | WEDNESDAY, APRIL 7 | 4-6 PM
Registration opens March 5. Learn more at businessrecord.com/40
Business Record | February 26, 2021
SPONSORED BY
26HEALTHCARE & WELLNESS
YMCA CEO OUTLINES
FINANCIAL RECOVERY PLAN
FOR STRUGGLING NONPROFIT
BY JOE GARDYASZ
The YMCA of Greater Des Moines wants to get out of the business of that help our community,” Barcus said. “I know from listening to the
owning real estate, and is moving forward with a strategic sale-leaseback United Way’s priority funding area, knowing what’s happening with the
plan to eliminate its heavy load of debt and free itself to focus on carrying pandemic and its effect on our mental and physical health, we need to
out its programs and mission. be here as an organization. So we’re looking to get out of the real estate
The 152-year-old nonprofit organization has for a number of years business, if you will, and refocus on our mission.”
been struggling with an increasingly heavy debt load from a growing With the approval of its board of directors in December, the
inventory of branch properties — capped by a multimillion-dollar project Y has begun working with Tyler Dingel, a senior vice president at
to complete a world-class competition pool at its anchor Wellmark CBRE|Hubbell Commercial, a leading broker who specializes in sale-
YMCA facility in downtown Des Moines. leaseback transactions.
The community organization has lost one-third of its paying In the interim, the YMCA plans to apply for a $1.9 million Paycheck
memberships over the past 10 months as it was forced to shut down and Protection Program loan from the U.S. Treasury, provided the entire
then limit access to its facilities and shed hundreds of staff members. Yet amount will be forgivable, Barcus said.
Business Record | February 26, 2021
the Y still has had to pay a $1.9 million annual long-term debt service cost Dingel, who joined Barcus on the videoconference, said that
— a burden the nonprofit has found to be too heavy a lift to continue. sale-leasebacks have provided a good path for many companies and
In an exclusive interview with the Business Record, the Y’s chief organizations to refocus on their core missions. He completes an average
executive, Leisha Barcus, laid out the organization’s plans to move of 25 to 30 of these transactions annually.
forward with finding a buyer or buyers for its owned branch properties in “I really think that this is a good opportunity for the Y to explore how
Greater Des Moines, as well as the Y Camp in Boone. The plan calls for no they can refocus that capital and that energy into the YMCA programs
closures of any of its facilities, which under the plan would be leased back and services they provide, and not have that large debt load hanging over
from one or more investors who acquire the properties. the head of the organization,” he said.
“I believe that the YMCA needs to focus not so much attention Dingel said that he and his team are close to completing a survey of
and financial resources on real estate, but rather turn our attention to the Y’s properties, and once further approval is given by the Y’s board
the mission work of the YMCA and the many programs that it offers of directors, “we’ll be able to take it to market and work to identify who
CONTINUED ON PAGE 29 >
27HEALTHCARE & WELLNESS
MIX OF BUDGET CUTS, FUNDRAISING AND FEDERAL AID HELPED Y TO SURVIVE
MEMBERSHIP DROP
In February 2020, the YMCA of Greater Des Moines was forecasting its first
break-even year financially in quite some time, despite having a $1.9 million
annual debt service expense. Then the pandemic hit.
In less than a year since the beginning of the pandemic, the Y has gone from a
$19 million annual operating budget to a $14 million budget. The organization has
lost $2.5 million in program revenue since March 2020.
The organization has lost more than 6,100 membership units since March
2020, bringing membership down from nearly 18,000 membership units to
fewer than 12,000 units across its eight metro branches. Membership fees
are the organization’s largest category of revenue, accounting for 65% of its
total revenue. A membership unit can be an individual membership or a family
membership.
It’s important not to lose sight of the Y’s mission, Chief Executive Leisha
Barcus said. “We’re here to strengthen the community and the well-being of
our residents to support important community needs. We do that in three fundamental ways — through
paying attention to youth development, to healthy living in our community and to social responsibility.”
While many people know about the Y’s supportive housing program that serves 140 vulnerable residents
with housing and support services, they may not have heard that the Y established a return-to-learn
program to help kids at the Grubb YMCA to get up to speed on using laptops for remote learning, or that
the branch offers parenting classes, and enrolls more than 100 men each year in a fatherhood program.
Such mission-critical programs like these, along with swimming lessons and basketball camps and other
key activities, are why it’s so important to get the Y onto firmer financial footing, Barcus said.
More than 625 members currently take part in virtual groups in which they can take live classes on
Facebook, with instructors leading about 16 classes per week, providing a community of support for members.
Uncertainty is still a major hurdle, however.
“While we hope for the return of membership and programs, we don’t know what’s coming this spring
and summer, either. So while we’re hopeful and we’re planning for these programs to come back, we can’t
just sit on our laurels if we want to ensure the long-term financial stability of the Y,” Barcus said.
Other measures that the Y has taken to make it through the pandemic and the remainder of this year
include applying for a forgivable federal loan through the Paycheck Protection Program.
Early on in the pandemic last year, the YMCA applied for a Paycheck Protection Program forgivable
loan of $1.9 million, which it received. However, although the nonprofit had just over 90 full-time
employees at that time, it found that the rules required it to count all of its part-time staff, which pushed
it over the 500-employee mark and made it ineligible. “So I had to send back the $1.9 million, which was
devastating for us,” Barcus said.
Since then, the Y has taken advantage of the Employee Retention Tax Credit program to receive
$864,913, and also received an Economic Impact Disaster Loan of $150,000. It also has used a tax relief
provision that allowed the Y to delay payment of the employer portion of its FICA (Social Security) taxes
until next year.
“That, coupled with aggressive fundraising — the community stepped up with an extra $280,000 — and
our relationship with our lender, which has been incredibly helpful, has helped us hobble through these last
few months,” she said. “I think that’s a testament to our management team that we’ve been able to do that.”
Barcus and her team are anticipating that membership and activity revenue will tick upward as more of
the population becomes vaccinated and people begin to feel more comfortable returning to the branches.
Business Record | February 26, 2021
She acknowledged that the Y shut down much of its marketing efforts in the latter half of 2020.
“It just didn’t feel right to be marketing and encouraging people to come back to the gym in a period
when so many are uncertain and they are quarantining at home and they weren’t going to work, or to
school or to church. We’re just now in the new year starting to put out some messages to tell people, ‘Hey,
if you’re ready to reclaim your fitness and be with others and work out, then we’re ready for you.’ ”
28HEALTHCARE & WELLNESS
This year ciLive! is virtual
March 10–11, 2021 | www.ci.Live
Fundraising shortfalls for the 50-meter competition pool at
the Wellmark YMCA added $17.8 million in debt to the Y’s
financial burden. Submitted photo
< CONTINUED FROM PAGE 27
DR. SIAN PROCTOR NIKKI VAN SCHYNDEL GABOR GEORGE BURT
would be the best suitor for a portfolio like this.”
Geologist and Survivalist and Innovation, Creativity
While a single investor or entity would be the ideal buyer, multiple
Analog Astronaut Best-Selling Author and Strategy
buyers would not be ruled out if particular properties suited the interests
of particular investors, Dingel said. development expert
The properties identified for sale-leaseback transactions include:
The Wellmark YMCA in Des Moines; Walnut Creek YMCA in West Des
Moines; Waukee YMCA; and the Y Camp in Boone.
“I would see this portfolio as an opportunity for folks like that to
continue what they’ve done over the years — to invest in good, quality
real estate and to have a tenant in place like the YMCA that gives you a
great return on investment. Coupled with that is, with this deal, not only
does [the investor] own the facility, but you can really feel good about
owning that real estate because you have a tenant that provides so many
services to the community.”
Possible consolidation of some of the existing 146,000-square-
foot Wellmark YMCA space — its largest owned facility — is being KYLE HILL KAI KIGHT
considered. Science Celebrity Classic Violinist
“There’s a lot of square footage down here and we could consolidate and Educator and Composer
into [a smaller portion of] that. We have skywalk access, which is really
great,” Barcus said. “So there could be any kind of retail or commercial
operation. There’s a beautiful corner down on Fifth and Grand that
would make a great coffee shop. It would really add a lot of vibrancy with This year, simply download the
the Y being here as well.” FREE e360tv app and WATCH
Now that a plan is in place to move forward with sale-leasebacks of WATCH LIVE ON:
ciLive! 12 FREE on your mobile device
its owned branches, the board is looking ahead to a brighter future. In
late January, the board began a strategic planning process that will look or through your television using your
ahead to the next three to five years. Roku, Amazon Fire, AppleTV,
“We’re going to really take a look at how we intend to impact the
Business Record | February 26, 2021
community and our mission going forward,” Barcus said. “So it’s nice to or Android TV device.
finally be able to turn our attention to that. … It’s been a long couple of
years, but I think we’re going to make it.” n
JOE GARDYASZ is a senior staff writer at Business Record. He covers
insurance & investments, health & wellness, manufacturing & logistics,
HR & education, banking & finance.
E: joegardyasz@bpcdm.com
P: (515) 661-6084
Des Moines Area Community College (DMACC) shall not engage in nor allow discrimination covered by law against any person, group or organization. This includes in its programs,
activities, employment practices, hiring practices or the provision of services. The full DMACC Nondiscrimination policy is available online at nd.dmacc.edu. 13642-1-21-A
29You can also read
