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Brett Gerber, President and CEO, Impact Seven
Challenge: For rural communities, economic decline is usually a one-way trip. As major employers disappear, so do the retail and service businesses. Housing and public services decline and young people move elsewhere in search for jobs. After decades of gradual decline and layoffs, Park Falls' local paper mill threatened to close leading to the loss of hundreds of jobs throughout the region.
Impact Seven, Inc. was founded in 1970 by Wisconsin residents in a seven-county area who were concerned with a waning economy, outmigration of youth, and high poverty. Over the past 45 years, Impact Seven has directly created or preserved dignified housing for tens of thousands of low-income households and generated thousands of jobs by supporting businesses ranging from microenterprises to major local employers. Today, Impact Seven builds capacity in communities across the entire state with integrated services and development in small business lending, affordable housing, and property management.
Impact Seven's business development programs provide flexible, affordable financing capital for expanding businesses. This was especially important during the 1990's after a series of disastrous layoffs at the local paper mill in Park Falls. In 1999, Impact Seven secured a $500,000 Community Economic Development grant from the U.S. Department of Health and Human Services Office of Community Services for the Forest Region Renaissance Initiative which leveraged $10.5 million and supported the development of an 18-acre industrial park. Impact Seven also assisted in setting up a Tax Increment Finance district which was later instrumental in supporting the ongoing financing needs of the mill and of other area employers.
In 2006, despite best efforts to save it, the Flambeau Paper Company declared bankruptcy and closed the 100-year-old mill. Braced for disaster, state and local agencies began delivering relocation, education, and mental health services for hundreds of displaced workers and their families. But just five months later, through the efforts of state government and private investors, the mill was saved and re-opened under the new name of Flambeau River Papers. Under new ownership by northern Wisconsin native William "Butch" Johnson, the mill hired back most of the workers with their same living wages and benefits.
However, the facility still needed upgrades to be competitive and compliant with federal regulations. In 2009, Impact Seven provided key financial support for a $2.3 million replacement of the 93-year-old rock towers which blend water and gases into the acids that reduce wood fiber to paper pulp. Then in 2012, Impact Seven financed the acquisition of a warehouse complex to use for mill operations, and in 2014, it provided a $1.5 million loan funded from New Markets Tax Credits for boiler upgrades needed to meet EPA pollution requirements.
In an increasingly digital society, the paper industry's future is uncertain. For this reason, Impact Seven helped to diversify the Park Falls economy. They mobilized Economic Development Administration and Community Development Block Grant funds to construct speculative buildings that were later occupied by a major local employer, Weather Shield Manufacturing. Other businesses came into the area, including a manufacturer of custom racing products, a sporting goods store, and a metal manufacturer that went out of business in 2002 but reopened with financing from Impact Seven.
In 2010, Impact Seven was awarded another Office of Community Services - Community Economic Development grant to support the ambitious $270 million Flambeau River Biofuels project, an industrial facility to convert wood waste products into energy and create hundreds of jobs. Although changes in the energy market made this infeasible, the funds were used to set up a revolving loan fund for Park Falls businesses, including a $345,000 loan in 2015 to All Stone Solutions LLC, a startup producer of specialty locally-quarried stone. With no bank willing to make the loan, Impact Seven's financing package was critical for equipment purchases, building improvements, and to meet working capital needs.
Altogether, Impact Seven investments directly contributed to the creation or retention of over 100 permanent jobs in addition to mill-related jobs, rounding out the Park Falls' employment base.
Small business lending is only one facet of Impact Seven's mission. In Park Falls, Impact Seven has developed and now owns and professionally manages 54 units of safe, healthy, affordable multifamily housing for low-income families and seniors. This includes three 10-unit rent subsidized HUD 202 properties for low-income seniors complete with a service coordinator who provides on-site support and connections for residents.
In 2009, Impact Seven opened Lincoln School Apartments, a new 24-unit affordable family housing project. Developed in partnership with housing developer MetroPlains, LLC, this beautiful restoration and adaptive reuse of a vacant 1916 landmark used Low-Income Housing Tax Credit, HOME, and Affordable Housing Programs funds from Federal Home Loan Bank-Chicago (FHLB-Chicago). With 10 units set aside for incomes below 50 percent average minimum income and an additional 14 units for 60 percent average minimum income, the project preserved an important element of the community's historic fabric.
Over the decades, Impact Seven teamed up with many federal, state and local partners to build local capacity, leverage public and private resources, and to provide flexible, affordable financing to help the mill and many other small businesses in Park Falls grow and thrive. At times Impact Seven serves a leadership role, but usually a supporting role is also needed to provide just the right puzzle pieces. For its sustained work in Park Falls, Impact Seven and Johnson Bank were jointly recognized in 2009 with the first annual FHLB-Chicago Community First Partnership Award recognizing outstanding, ongoing partnerships that result in sustainable contributions to a community's quality of life.
Impact Seven's three-decade relationship with Park Falls illustrates important lessons learned:
Challenge: For rural communities, economic decline is usually a one-way trip. As major employers disappear, so do the retail and service businesses. Housing and public services decline and young people move elsewhere in search for jobs. After decades of gradual decline and layoffs, Park Falls' local paper mill threatened to close leading to the loss of hundreds of jobs throughout the region.
Impact Seven, Inc. was founded in 1970 by Wisconsin residents in a seven-county area who were concerned with a waning economy, outmigration of youth, and high poverty. Over the past 45 years, Impact Seven has directly created or preserved dignified housing for tens of thousands of low-income households and generated thousands of jobs by supporting businesses ranging from microenterprises to major local employers. Today, Impact Seven builds capacity in communities across the entire state with integrated services and development in small business lending, affordable housing, and property management.
Impact Seven's business development programs provide flexible, affordable financing capital for expanding businesses. This was especially important during the 1990's after a series of disastrous layoffs at the local paper mill in Park Falls. In 1999, Impact Seven secured a $500,000 Community Economic Development grant from the U.S. Department of Health and Human Services Office of Community Services for the Forest Region Renaissance Initiative which leveraged $10.5 million and supported the development of an 18-acre industrial park. Impact Seven also assisted in setting up a Tax Increment Finance district which was later instrumental in supporting the ongoing financing needs of the mill and of other area employers.
In 2006, despite best efforts to save it, the Flambeau Paper Company declared bankruptcy and closed the 100-year-old mill. Braced for disaster, state and local agencies began delivering relocation, education, and mental health services for hundreds of displaced workers and their families. But just five months later, through the efforts of state government and private investors, the mill was saved and re-opened under the new name of Flambeau River Papers. Under new ownership by northern Wisconsin native William "Butch" Johnson, the mill hired back most of the workers with their same living wages and benefits.
However, the facility still needed upgrades to be competitive and compliant with federal regulations. In 2009, Impact Seven provided key financial support for a $2.3 million replacement of the 93-year-old rock towers which blend water and gases into the acids that reduce wood fiber to paper pulp. Then in 2012, Impact Seven financed the acquisition of a warehouse complex to use for mill operations, and in 2014, it provided a $1.5 million loan funded from New Markets Tax Credits for boiler upgrades needed to meet EPA pollution requirements.
In an increasingly digital society, the paper industry's future is uncertain. For this reason, Impact Seven helped to diversify the Park Falls economy. They mobilized Economic Development Administration and Community Development Block Grant funds to construct speculative buildings that were later occupied by a major local employer, Weather Shield Manufacturing. Other businesses came into the area, including a manufacturer of custom racing products, a sporting goods store, and a metal manufacturer that went out of business in 2002 but reopened with financing from Impact Seven.In 2010, Impact Seven was awarded another Office of Community Services - Community Economic Development grant to support the ambitious $270 million Flambeau River Biofuels project, an industrial facility to convert wood waste products into energy and create hundreds of jobs. Although changes in the energy market made this infeasible, the funds were used to set up a revolving loan fund for Park Falls businesses, including a $345,000 loan in 2015 to All Stone Solutions LLC, a startup producer of specialty locally-quarried stone. With no bank willing to make the loan, Impact Seven's financing package was critical for equipment purchases, building improvements, and to meet working capital needs.
Altogether, Impact Seven investments directly contributed to the creation or retention of over 100 permanent jobs in addition to mill-related jobs, rounding out the Park Falls' employment base.
Small business lending is only one facet of Impact Seven's mission. In Park Falls, Impact Seven has developed and now owns and professionally manages 54 units of safe, healthy, affordable multifamily housing for low-income families and seniors. This includes three 10-unit rent subsidized HUD 202 properties for low-income seniors complete with a service coordinator who provides on-site support and connections for residents.
In 2009, Impact Seven opened Lincoln School Apartments, a new 24-unit affordable family housing project. Developed in partnership with housing developer MetroPlains, LLC, this beautiful restoration and adaptive reuse of a vacant 1916 landmark used Low-Income Housing Tax Credit, HOME, and Affordable Housing Programs funds from Federal Home Loan Bank-Chicago (FHLB-Chicago). With 10 units set aside for incomes below 50 percent average minimum income and an additional 14 units for 60 percent average minimum income, the project preserved an important element of the community's historic fabric.
Over the decades, Impact Seven teamed up with many federal, state and local partners to build local capacity, leverage public and private resources, and to provide flexible, affordable financing to help the mill and many other small businesses in Park Falls grow and thrive. At times Impact Seven serves a leadership role, but usually a supporting role is also needed to provide just the right puzzle pieces. For its sustained work in Park Falls, Impact Seven and Johnson Bank were jointly recognized in 2009 with the first annual FHLB-Chicago Community First Partnership Award recognizing outstanding, ongoing partnerships that result in sustainable contributions to a community's quality of life.
Impact Seven's three-decade relationship with Park Falls illustrates important lessons learned:
- Successful community development requires sustained partnerships and long-term commitment.
- A city's economic health depends on a multifaceted approach and diversified economic development.
- Flexible, affordable financing capital is essential for expanding businesses.
