Urban League’s Center for Economic Development
Ripples of development
Ripples of development
By Jonathan Gramling
For Scott Gray, president/CEO of the Urban League of Greater Madison, economic development
comes in phases with each phase setting the foundation for the next phase. For the Urban League, the first
phase began when the Urban League purchased its building on E. Gorham Street, beginning the process of
wealth accumulation. The second phase was the renovation of the League’s facilities in the late 1980s,
preserving and enhancing its value.
And now, the League has broken ground on the third phase of that development with the construction
of the Center for Economic Development and Workforce Training in the parking lot of the Villager Mall on S.
Park Street. Initially envisioned as a three-story wholly-owned League facility, the center is now a two-story
project whose ground floor will primarily be owned and occupied by the South Madison library and the
League will own the second floor and share its occupancy with Planned Parenthood of Wisconsin.
“The total physical project with just the Urban League’s build out is $2.7 million,” Gray said during an
interview with The Capital City Hues. “That does not include Planned Parenthood’s finishing of their space.
It doesn’t include us providing a shell to them, which is another $700,000. The $700,000 is not part of the
capital campaign. The entire project is $3.4 million with us and Planned Parenthood. But the Urban
League’s build out — shell and interior — is $2.7 million. The shell for Planned Parenthood will pay for
itself. Planned Parenthood has signed a ten-year lease with three five-year options. So by the time they are
ULGM President/CEO Scott Gray speaks during
the groundbreaking for the Urban League’s
Center for Economic Development & Workforce
Training on March 27 at the Villager Mall.
the groundbreaking for the Urban League’s
Center for Economic Development & Workforce
Training on March 27 at the Villager Mall.
finished with their lease, we should have that space paid for. Possibly that is space the Urban League could expand to someday. That’s an additional 4,000 sq.
ft. of space. So $2.7 million is the Urban League build out phase of the project, but then there is $1.3 million in program fundraising. So we’re at $3.4 million
now — including our recent Kresge Challenge grant of $380,000. So we basically have $650,000 to raise. Selling this building on Gorham Street is part of the
computations. It is part of the $4 million capital campaign effort. In the $3.4 million is $500,000 that we’ve estimated for this building, which is a conservative
estimate. In order to get the $300,000 Kresge grant, we have to raise the $650,000. The entire project with the library is around $5.3 million. That again, does
not include the library’s build out or Planned Parenthood’s interior build out. We think overall that this project is about $6.8-$7.0 million project.”
One immediate impact of this development is the circulation of the dollars within the disadvantaged business community. While DBE goals typically fall in
the 10-18 percent range, of the $1.6 million in contracts already let to construct the building, approximately $700,000 or 40 percent has gone to DBE firms.
Among them, Barrientos Architecture has a $160,000 design contract and Urban Construction has a $340,000 masonry contract.
There are still 14-16 contracts still to be let. Gray hopes that a significant number will go to DBE firms. “We’ll have a bid package once the interior is ready
to go for the electrical side, the plumbing side, carpentry and glass, a number of areas that we think we can continue to have minority businesses and women
owned businesses really participate at a substantial level,” Gray emphasized.
And while the expanded space will allow the League to operate employment and training programs that will facilitate investment in the human potential of
people of color and other disadvantaged persons, it will also allow the League to take the next step in the economic development od the community.
“We are moving to a project that will be, when we open the door at that new facility, appraised at $3,6 million, which we will have very little debt on,” Gray said.
“Now we’re holding almost $3 million of equity. And we want to use that equity to start creating more business opportunities and larger opportunities and all of
those things that the Urban League could really drive itself using its own equity.”
In order to complete this phase of development, the Urban League must raise $650,000 to qualify for a Kresge Foundation grant of $300,000 by October 1.
Over the course of the next five months, it will be implementing a community fundraising drive. Gray hopes to raise $200,000-$300,000 of it from the community.
He’s also looking to meet the Kresge match through in-kind contributions. “We’re working with a number of companies right now that will donate anything from
tile to computers to networking and cabling for the building,” Gray said.
Community development is done one phase at a time. The next phase is starting now.
For more information about bidding opportunities on the construction project, call Scott Gray at 251-8550. The League’s fundraising initiative will be
announced in the next several weeks.
ft. of space. So $2.7 million is the Urban League build out phase of the project, but then there is $1.3 million in program fundraising. So we’re at $3.4 million
now — including our recent Kresge Challenge grant of $380,000. So we basically have $650,000 to raise. Selling this building on Gorham Street is part of the
computations. It is part of the $4 million capital campaign effort. In the $3.4 million is $500,000 that we’ve estimated for this building, which is a conservative
estimate. In order to get the $300,000 Kresge grant, we have to raise the $650,000. The entire project with the library is around $5.3 million. That again, does
not include the library’s build out or Planned Parenthood’s interior build out. We think overall that this project is about $6.8-$7.0 million project.”
One immediate impact of this development is the circulation of the dollars within the disadvantaged business community. While DBE goals typically fall in
the 10-18 percent range, of the $1.6 million in contracts already let to construct the building, approximately $700,000 or 40 percent has gone to DBE firms.
Among them, Barrientos Architecture has a $160,000 design contract and Urban Construction has a $340,000 masonry contract.
There are still 14-16 contracts still to be let. Gray hopes that a significant number will go to DBE firms. “We’ll have a bid package once the interior is ready
to go for the electrical side, the plumbing side, carpentry and glass, a number of areas that we think we can continue to have minority businesses and women
owned businesses really participate at a substantial level,” Gray emphasized.
And while the expanded space will allow the League to operate employment and training programs that will facilitate investment in the human potential of
people of color and other disadvantaged persons, it will also allow the League to take the next step in the economic development od the community.
“We are moving to a project that will be, when we open the door at that new facility, appraised at $3,6 million, which we will have very little debt on,” Gray said.
“Now we’re holding almost $3 million of equity. And we want to use that equity to start creating more business opportunities and larger opportunities and all of
those things that the Urban League could really drive itself using its own equity.”
In order to complete this phase of development, the Urban League must raise $650,000 to qualify for a Kresge Foundation grant of $300,000 by October 1.
Over the course of the next five months, it will be implementing a community fundraising drive. Gray hopes to raise $200,000-$300,000 of it from the community.
He’s also looking to meet the Kresge match through in-kind contributions. “We’re working with a number of companies right now that will donate anything from
tile to computers to networking and cabling for the building,” Gray said.
Community development is done one phase at a time. The next phase is starting now.
For more information about bidding opportunities on the construction project, call Scott Gray at 251-8550. The League’s fundraising initiative will be
announced in the next several weeks.