This is actually a very good program both for small high tech businesses trying to get started and for investors looking to invest in our state.  I am dedicating this post to share a little more about this new program in the hopes that you can pass along the information to your friends both starting new high-tech businesses and to investors who are looking to add a little venture capital to their portfolio.  Although this is a little different topic than I have written on before on this blog it is essential for us to get the word out on programs like this because these are among the businesses that will become the foundation of the future and continue to allow us to have a vibrant region in which we can build leadership and community.

An investment program like this gives the State of Minnesota an advantage in attracting additional investment in our high tech businesses and increasing the number of jobs located here in Minnesota.  The tax credit removes 25% of the risk for an individual investor and therefore helps to make Minnesota a more attractive state in which to invest.  This program and others currently in place have the potential of helping us kick start the next Medtronic, 3M, Boston Scientific, EV3 and countless other major high tech innovators who call Minnesota home.

Program Details (Investor Standpoint):

• 25% tax credit on invested amount which is refunded via individual income tax credit for qualified investors.
• Maximum credit of $125,000 per year per individual (Given 25% credit a person could invest up to $500,000 per year).
• Minimum investment $10,000
• Total program credits available — $11 Million in 2010, $12 Million per year 2011 – 2014.

Minimum Qualification for Businesses seeking angel investors:

• Be headquartered in Minnesota
• Have a minimum of 51 percent of employees and 51 percent of payroll in Minnesota
• Have fewer than 25 employees
• Pay employees annual wages of at least 175 percent of poverty level, currently $18.55 per hour. Does not apply to business’ executives, officers, board members, 20 percent-plus owners
• Not have been in operation for more than 10 years
• Not previously have received private equity investments of more than $2 million
• Not have been disqualified from investment under Minn. Stat. 80 A.50 (b)(3) Small corporation offering registration disqualifications
• Not have generated more than $4 million in investments that have received an Angel Tax Credit. The Angel Tax Credit is capped at $1 million per business
• Be certified by DEED before investment is made. The certification filing fee is $150
• Committed to engage in technical innovation in Minnesota.  The primary business activity must include one or more of the following:
  • Using proprietary technology to add value to a product, process or service in a qualified high-technology field
    • Qualified high-technology fields include, aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical devices, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, or similar.
  • Researching or developing a proprietary product, process, or service in a qualified high-technology field
  • Researching, developing, or producing a new proprietary technology for use in the fields of: agriculture, tourism, forestry, mining, manufacturing, or transportation

If this sounds interesting or to learn more information, please visit the Angel Tax Credit Website, email  Angel.Credit@state.mn.us or contact Jeff Nelson at 651-259-7523.

June 10th was the official launch date of the new Nice Ride MN bike initiative across Minneapolis.  It has been neat to see these stations showing up all around town and it will be even more exciting to see how well it is adopted.

Nice Ride MN is the largest bike sharing program in the United States.  The first phase will include 1,000 bikes distributed across 75 locations (700 bikes and 65 locations are already up and running).  These locations include some of the most popular spots in Minneapolis including Downtown, Uptown, University of Minnesota, Dinkytown, Lyn-Lake, Seward, and the warehouse district to name a few.  The program will run seasonally from April to November and then the kiosks and racks will be removed for the winter months.

The program is a combination of a base subscription price and a usage fee.  The subscription prices come in three different sizes — Single Day ($5), 30 days ($30) or a full year ($60, unless you are a student then it is $50).  Once you have a subscription you can use the bikes for free as long as it is returned within 30 minutes to any station.  If you keep the bike over 30 minutes you start incurring a usage fee that adds up very quickly.  For 31 – 60 minutes it costs $1.50, 61 – 90 minutes adds another $3.00 and anything over 90 minutes you start paying $6 for each additional half hour.  This pricing structure strongly encourages users to take the bike from point A to B and then check it back in so it is available for the next user.

With the first week and a half behind it, the biggest complaint so far appears to be the hold that is placed on a credit card for single day subscribers.  When a person arrives at the kiosk (attached to each bike rack) they put their credit card into the machine and get a single day subscription and an unlock code to check out their bike.  At the same time a credit card hold is put on their account in the amount of $250 just in case they run off with the bike.  This hold is released within a week but is giving some debit card users trouble since it holds $250 from their account until it is released.  This is not an issue for 30 day or year subscribers since their credit card information is collected online when they register and then an electronic Nice Ride key is sent to them via mail.  This electronic key allows a user to walk up to any station and unlock a bike directly without having to go to the kiosk.

Overall this looks like a great program that will get us more active and give us the opportunity to see Minneapolis from a little bit different vantage point then we are used to driving in a car.   I have seen a similar program in Lyon, France and it was widely used and enjoyed throughout the city.  I encourage everyone to try it at some point this summer and get a new perspective on Minneapolis.

One of my early posts on the Leadership and Community Blog covered the first TEDxTC event.  This last week they held their second event and it was as good or even better then the first.  A true sign of an outstanding event is when people stay around afterword to talk with each other and share ideas.  In the case of TEDxTC the main event, which was attended by almost 500 people, concluded around 9:00 pm and my guess is that there were still about 100 people talking when I left at 10:45 pm – A True Success!

This illustrated to me that people in our community are looking for any opportunity to share ideas and just talk with others about changes each of us can do to make a difference.  The entire theme of TED is to get the word out on “Ideas Worth Spreading”.

Each and every one of us has a unique story which we must start spending more time telling.  We need to share with each other the ideas we have seen that work and ask questions on those areas we want to learn more about.  Too often we feel like we can’t do anything until we have the perfect answer.  The reality is if we wait for the perfect answer we most likely will never move.

The key to our ongoing success is to keep making incremental change and learn from it instead of never moving because we are looking for the silver bullet that doesn’t exist.  Many of the most complex problems are interrelated with countless other issues in such a way there is no way to decide up front which is the first lever we should pull.

The key call to action of this post is to go out, tell your story and share your thoughts on something you have been thinking about.  This act seems so basic but it is what truly brings about change because more people are learning of the idea and also helping you refine it along the way.  Keep watch for these opportunities to share your story, experiences and ideas with as many people as you can.  Remember Margaret Mead’s quote which is as relevant today as it was when she first said it  – ”A small group of thoughtful people could change the world. Indeed, it’s the only thing that ever has.”

Build Relationships by Listening to Stories

Each and every person has a story to tell.  It doesn’t matter if they are the CEO of a company, community volunteer, retiree, out of work employee, or an elementary school kid.  By spending time listening to people’s unique stories, you will be able to learn much about their interests, passions, and dreams.  Often times we are so eager to find out where a person works or what their title is in their profession that we miss the true person under the surface.  We are all so much more than can be summed up by a title or a place of employment.

CHALLENGE: Introduce yourself to five people, but each time you must uniquely describe yourself.  Most people will tell the first person they meet their role and company — “I am a software developer at XYZ Company.”  Where it gets harder is with persons two through five, as you will have to reach into yourself to figure out some other unique thing to say.  By the time you get to person three, you will have a clearer vision of your true passions.

As I personally do this exercise I get down to the phrase, “I am a dot connector.”  This describes a completely different component of my life that you would not know from my regular profession while igniting your interest in wanting to know more.

One of the biggest mistakes people make, in my opinion, is immediately making an internal calculation of a person and how they might be able to help you today.  In my experience it is far more valuable to create ongoing relationships through genuine interest in the other person instead of the superficial interest in what they can you do for me.  It is amazing how small a world we live in and how often we can learn the most profound lessons from those that we least expect.

Be Involved

The amount you can learn about others, the community, and yourself by being involved is remarkable.  First off, the most important thing about being involved is that you choose something tied with your passion.  Only you can know what gets you excited and energized, and if you choose an activity that you have passion for you will be outstandingly successful.  For some people it is volunteering, for others it is serving on a board or running for elected office.  The key is to take that first step to be involved and the impact you will make on that organization will often far exceed what you thought possible.  Be involved with all of your energy and excitement and make a difference.  When you get to a point when you’re losing energy and you are no longer looking forward to being involved, it is more than likely time to move onto the next opportunity.  A wise person once shared with me a thought that will always stay with me — As you get more involved in the community you will be asked more and more to get involved with different organizations; remember it is always fine to say no if it isn’t a good fit and you lack the energy since by saying no you are giving someone else the opportunity to say yes.

CHALLENGE: Examine the organization you are currently involved with and ask yourself if you still have the energy, excitement and passion you did when you first started.  If you don’t, think about what might be missing and create a plan to re-energize, or consider moving to another opportunity to give someone else a chance at this opportunity.  If you are not currently involved, spend some time looking at organizations where you can share your passion and give that new group a try.

Try something New

It is so easy to fall into a routine whereby you do the same thing over and over.  Force yourself to try one new thing each year that will stretch you in new ways, broaden your perspective, and open up new opportunities.  This new activity should be considerably different from your regular routine in order to shine a new light on an area that you have not explored in the past.  Examples could include taking a creative writing class, participating in a community leadership program (Humphrey Policy Fellows, Leadership Twin Cities, FBI Citizens’ Academy, etc), or teaching a class on a topic you enjoy.  I started following this advice as I left undergrad, and it has become a core value that I strive to meet each year.  The experiences are amazing, and often it is truly remarkable how after going through an activity you find ways to relate it back to your regular occupation.

CHALLENGE: Identify one new activity that isn’t related to your regular work and go give it a try.  It will have the most impact if it is something that will stretch you a little and broaden your perspective.  Share your experience with friends and encourage them to also try something new!

Please, take two minutes to get a glimpse of how one person started down the wrong path.  This blog is all about Leadership and Community and you owe it to yourself, your love ones and the community to listen and learn from this story.

The Story of Nick and Carolyn Ryberg

Please watch this 2 minute video before proceeding.

Nick’s video is the background most people never have the chance to hear about a person who seems just like you or I.  The difference is Nick is a convicted white collar criminal that was sentenced to 30 months in jail.  His wife Carolyn was sentenced to 24 months in jail and they had to sell everything and find temporary homes for their two daughters.

After listening to Nick video, you can listen to what it was like for his wife to leave her kids and be confined in the same prison as Martha Stewart.

Here is Carolyn’s video.

You can get the full details and more background on the Ryberg’s story at: http://www.stthomas.edu/ethicalleadership/research/professions/Ryberg.html

Leadership and Ethics

I was fortunate to hear the story of Nick and Carolyn Ryberg first hand this last week as they gave a presentation at General Mills to kickoff our Ethics week discussion.  This is the type of story everyone should have the opportunity to hear.

The story was moderated by Hank Shea, Senior Distinguished Fellow at the University of St. Thomas.  Mr. Shea started a program series which brings white collar criminals to colleges, corporations and community groups to tell their story and hopefully prevent others from going down the wrong path.  They are cautionary tales of how easy it is to take that first small step and what it can lead to down the road.

I had the great fortune of meeting Mr. Shea about five years ago when I was in the Leadership Twin Cities program and he was the Assistant US Attorney in Minnesota responsible for handling White Collar Crimes.  He had another felon speaking that day.  Overall I have attend three or four different sessions where Mr. Shea has brought different speakers to tell their story.  This is an amazing program that he has developed and one I hope each of you someday have the opportunity to attend and hear first hand.

The Overnight Website Challenge brings together professional web developers with Minnesota non-profits to design and create a new website for the non-profit organization in 24 hours.  This is an amazing opportunity for non-profits to get over 200 hours of web development done for free and for the developers to get additional experience while having fun.  The challenge has a huge impact on everyone involved because it helps build community and gets more young professionals involved.

The reason I am writing about this event on these pages is that it completely exemplifies the type of out of the box thinking that we hope to trigger in our readers.  This event creates new opportunitiesto get people involved in their community while building both leadership and professional skills.  We always need to keep thinking of new ways to engage people and also share the great work non-profits are undertaking throughout the community.

This year’s event takes place March 20 – 21, 2010 and is actually the 3rd time this challenge has been run.  The format of the challenge starts with individuals coming together to form teams of ten and then these teams are paired up with a non-profit organizations.  Then, on the appointed day, everyone gathers and has 24 hours to design and build the website before the judges come around to determine who wins the competition.

Looking back at some of the past successes you can easily tell the competition is fierce and everyone is trying to win.  One of the organization that benefitted from the challenge last year was Students Today Leaders Forever (a truly amazing non-profit!).  Take a look at the recap which including a look at what the original site looked like and then what the team developed — http://blog.nerdery.com/2009/04/students-today-leaders-forever-like-jet-fuel-at-overnight-website-challenge/

The deadline for this year is approaching very quickly or has already past depending on when you are reading this post.  Even if you missed the challenge this year please share this story and links with non-profits that you know, maybe they will be able to get involved next year!  I applaud the work of Sierra Bravo and all of the volunteer who take time to make a true difference for these non-profits.  May this year’s challenge be even more amazing and I look forward to many more years of challenges to come.

DEADLINE: Non-Profits need to sign up by January 8th & Volunteers need to form teams by January 18th.

The addition of commuter rail extends Minneapolis’s reach into train based transportation.  Twin Cities residents most recently came to enjoy light rail transit with the opening of the Hiawatha line.  That line runs from downtown Minneapolis to the Airport and ultimately to the Mall of America.  This line was also extended as part of this project by a couple blocks so that it also now goes as far as Target Field.

Mass Transit and the Future

Transit is one of those topics that citizens have strong passions for on both sides.  It helps to reduce the number of cars on the roads, provides transportation for individuals who rely on public transportation and creates fairly regular commute times between locations.  Detractors point to the high costs, ongoing subsidies, low route flexibility and underutilization during most non-peak times.  Depending on what side of this debate you are on will help contribute to your thoughts on this newest addition to the Twin Cities.  It is still too early to tell if Northstar will also surpass the ridership projects like the Hiawatha line has since it’s opening.

Mass transit will continue to be a topic of discussion for many years to come.  Current debate is easy to find with the Central Line Corridor between downtown Minneapolis and St. Paul.  This is mainly in the news right now due to the impact the University of Minnesota says the trains will have on the sensitive equipment housed in building near the proposed route.  Below is a recap of current and proposed routes for the future.

• Light Rail
  • Hiawatha Line – Minneapolis to Mall of America — Already Completed
  • Central Corridor – Minneapolis to St. Paul along University Avenue
  • Southwest Line – Minneapolis to Eden Prairie
  • Bottineau Line — Minneapolis to Maple Grove/Brooklyn Park
• Commuter (Northstar) — Extension from Big Lake to St. Cloud.  Initially envisioned but only got as far as Big Lake due to funding.
• High Speed — Federal discussions currently underway to do a high speed rail corridor from Chicago to the Twin Cities and ending in Duluth.

Virtual Ride

I had the opportunity to ride the new line for the grand opening voyage from Fridley into Target Field and back.  It was a great ride and I got to see a part of Minneapolis from a different vantage point then normal.  The following weekend I decided to take my parents on the full trip from Target Field to Big Lake and back.  I recorded the ride out the train car window and have uploaded it to YouTube so if you would like to take a virtual trip please click below.  It is broken up into a smaller segments but the entire ride takes 51 minutes to go 40 miles.  I would encourage you to take a ride and experience both the train and a different side of the Twin Cities then you see most days.

• First segment – Leaving  Target Field
• Full collection of Virtual Tour

Location

The ramp in question is 501 Self Park located at 501 4th Avenue South in Downtown Minneapolis.  To give you a reference it is the ramp just across 6th Street from Thrivent.  It is surrounded by government facilities — Hennepin County Government Center  is just across 4th Avenue,  Minneapolis City Hall is just across 5th Street and the Hennepin County Jail is right next door across the Light Rail tracks.  If you drive past this ramp you will see signs directing you into this ramp that say “Court Parking”, Public Parking, and an advertisement saying $2.00 for the first 20 minutes.  There is no question in my mind that they are praying on the occasional parker who is coming downtown to interact in someway with one of these government entities or a nearby business.

Pricing

The sign is accurate that the first 20 minutes are $2.00.  If you are there 21 – 40 minutes it jumps up to $13 and then it is an additional $2.00 every 20 minutes until you reach the daily maximum of $24.  If this is where the story ended I would attribute it to high downtown prices and just move on.  The piece that really angered me was the parking special, if you arrive by 9:00 it is only $8 for the entire day.  But wait!  I arrived at 6:50 am and left at 8:23!  There is one more catch — you cannot leave until after 12:00!  From a business perspective why would you add the limit of not leaving until a certain time, this goes against better judgment whereby the sooner someone leaves the more space is available for others to park.  Then it hit me, they want to pray on the short term parker who has to come downtown for some type of government service!  The $2 rate for the first 20 minutes is very nice but lets be honest, when was the last time you had to go to a government office and was able to get in and out including walking to the office in under 20 minutes?  Anyone coming downtown to renew their license, talk to a city official, attend a court hearing or bail someone out of jail will be caught by this pricing!  The true municipal parking ramp can be found by just driving to the other side of the same block and entering the parking ramp off of 5th Avenue and paying $3 an hour up to a daily maximum of $10.50 if you are there less than 12 hours.  The entry to the skyway looks identical and are within 30 feet of each other.

Who Runs the Ramp?

The ramp is operated by Allied Parking.  When I called to inquire about the pricing policy I was told by management that they are absolutely taking advantage of the location and are charging high rates for short-term parkers.  The individual suggested that more customers should shop around and that they allow a 15 minute grace period if someone enters and decides not to park.  He indicated that they try not to be false in their advertising and try to make it as clear as possible through their signage.  After talking to Allied I went back to look at the signs and realized why I didn’t think twice about parking there.  The most visible sign said “Court Parking” and Public Parking.  There is only one little sign once you are already in the ramp that said the rates and it blends into the wall so it would be very easy to miss as you are going around the corner.  It is also posted where you pull a ticket but by that time you are committed since there isn’t an easy way to exit and are more focused on figuring out how to get your ticket then looking at the rates.  In reviewing the signage I think much more can be done to make sure customers don’t think this is a government ramp and to ensure parkers know the price before they are shocked.  The most interesting thing of the whole conversation was at the very end when I was offered some free parking passes for my trouble and to keep my future business.  I declined — I wasn’t calling because I couldn’t afford the $19, I am much more concerned for the citizens that have to use the government services, park and then are ripped off!

Who Owns the Ramp?

Given the location and the signs, you would easily think this might be a government owned ramp — It is not!  After considerable looking it actually is owned by a very well known national company.  The ramp itself is owned by an entity called Urban Growth Properties Trust with an address of Scottsdale, Arizona.  If you look into the trust you find that it is owned by a private company called InterPark out of Chicago.  I called InterPark and found out it is actually owned by GE Capital Real Estate which is an operating unit of General Electric!  I am sure GE corporate is not specifically aware of this pricing strategy as I would hope they would also see that this practice is unfair.  The thing that makes this that much more insulting is that I am a GE shareholder — In essence I am benefitting personally from this terrible pricing policy!

Outcome

My hope in writing this post is that you share this terrible story with as many others as you can and hopefully enough people will hear and express their disappointment that the predatory pricing changes.  My greatest fear is that users will continue to park in this ramp, be ripped off and then leave thinking it was the City of Minneapolis or Hennepin County taking their money which will lead to even more distrust and dissatisfaction with government.  What I would ask the ramp to consider is making it explicitly clear that this ramp is a private business — Not Government Owned, and to remove the restriction penalizing parkers who arrive early but leave before noon.

First we must define philanthropy — by definition philanthropy at it’s core is the investment of private capital for the public good. Charity or donations are what we all think about when we get the solicitation in the mail around the end of the year asking for a year-end donation to help a cause that is close to our heart. These donations tend to go towards an immediate need, usually are smaller dollar amounts but are given by a large number of people. These are crucial to the operations of non-profits and make an impact in the community.

The idea behind strategic philanthropy is to take it to the next level. It doesn’t mean that it has to be a large donation but instead it focuses on solving problems at their root. Strategic philanthropy works to identify opportunities for leveraging change much greater than the size of the investment — small amounts of money that start making large impacts. These investments tend to be long-term in nature, upstream focused and come with a higher risk for a higher potential return. These are often focused on changing systems and regularly have an influence or public policy connection.

After spending five days looking at the difference between charity and strategic philanthropy I have a much better respect for some of the amazing work being done across this country in our non-profit sector. During my time in New York City we were able to conduct over a half dozen site visits to see social entrepreneurship in action. It is amazing to see some of the truly innovative approaches to societal problems. At the bottom of this post I have included three of the best individuals/organizations I had a chance to interact with during my visit.

In the end it is not a question of strategic philanthropy or charity, it must be both. We will always have immediate needs and charity/donations help solve those gaps. I think it is imperative though, that everyone also keep an eye on how they can think strategically about their philanthropic dollars and find those times when we can give to help target root causes for issues and help our investments multiply many time over! Some years you will give more to charity while another time you may see a truly innovative idea and can make a strategic investment directly to the root cause. The most important thing is to keep watching for ideas and investing in our community to keep this an amazing place to live.

Innovative Organizations and Individuals

Echoing Green — Outstanding organization investing in individuals who are making a difference. We had the opportunity to meet with Cheryl Dorsey, President of Echoing Green who was outstanding.

Red Hook Community Justice Center — Innovative community justice model which is reinvigorating the community. The Red Hook community of southwest Brooklyn, where 70% of residents live in public housing, had been plagued with crime and drug issues but this new approach to justice is helping it take back it’s streets and improve the lives of it’s residents.

Honorable Michael Corriero — Amazing individual who helped form Manhattan’s Youth Part as one of the first models for dealing with 13, 14 & 15 year-olds who were charged in adult court with serious crimes. Corriero grew up in the tenements of Little Italy and went on to become a State Supreme Court Justice. He has since retired and is now the Executive Director of Big Brothers Big Sisters of New York City.

Substance is officially five years old but it really has taken off in the last year.  About a month ago they went multi-site by adding a 10:30 am service at Northwestern College in addition to their standard location at Fridley High School.  In their first service at Northwestern they had 500 people in attendance and of those only about 100 had ever been to a Substance service prior.  After 4 weeks the audience at Northwestern has grown to over 800.

I have attended a few different types of events over the last month and each have had a large turnout of members & visitors that show the same passion, friendship and commitment to building community that is quite impressive.  The pastoral staff, led by Pastor Peter Haas, truly encourages everyone to step forward and be a leader.  They have the support systems and training to help members be successful and lead.  It is an amazing group to look at both from how to build a successful organization as well as develop the next generation of leaders.

Since first hearing about Substance I have started listening and am surprised how many times it has started to come up in conversations with other young professionals already involved in the Twin Cities community.  It is gaining great momentum and overall membership is approaching 3,000.  I encourage you to listen for others who mention Substance and check it out if you have an interest.  You can find out more about their sub groups at http://www.beingsubstance.com or about the church itself at http://www.substancechurch.com.  The website includes both video and podcasts of sermons as well as details on their next sermon series which starts this weekend – “When Life Gives You Lemons”

Featured Upcoming Events:

Torch Community Building

Wednesday, October 7th – 5:30 – 8:00 @ International Market Square ($25)
Torch Community is a new organization focused on connecting young and young thinking professionals into community around three values: career development, diversity and inclusion, and social responsibility.