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OLLIE GARRETTPresident of Tabor 100

Remembering John Berdes

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Fixing Minority Business Programs

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Sheila Edwards Lange Appointed

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Meet Tabor Members from Signs Now

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June 2016

There are many things I want to talk about in this President’s message, but I cannot get former Tabor 100 Board member and friend, John Berdes, off my mind.

John knew better than most that money lubricates business and that minority businesses many times don’t have access to it.

His philosophy about lending to minority businesses is worth repeating: “You’ve got to take a step back and get a better understanding of the starting point and recent history and roadblocks faced by minority owned businesses before you can start thinking about ways around them. There’s no time or patience for well-intended approaches that simply do not work. We’ve got to build trust in the communities and this often means pushing back against deeply ingrained historical mistrust. We’ve got to figure out ways to monetize character in because there simply is not a

lot of traditional collateral in these communities. The path to recovery is different from the path to normal business growth. So we as business lenders must be prepared to be very generous with our terms. Stretch out that interest-only if that is what is needed. If your original plan does not work, it is not a point of shame, disappointment or business failure. It’s just a time to go out there and get it done—a different way.”

John remained humble as he was featured in Businessweek and other renowned business publications, he committed himself to the community and joined the Tabor 100 board working tirelessly for the organization.

I knew John as a friend and consider him one of the most caring, compassionate and loyal individuals I have ever met. He showed me that by continuing to believe in my basic ideas of fairness and service, I would eventually prevail.

Until he died, John fully lived every day of his life and talked continually about how he would serve others in the future. We could not have wished for a better person to grace our lives and inspire us to be better.

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► ► Meet Tabor Members David and Rani Bal, owners of Signs NowBY HENRY YATES

Public Affairs Chair

This month’s feature article is about Signs Now Washington, owned by David and Rani Bal, Tabor 100 members since February 2014.

One of few MWBE Custom Signs & Graphics shops in the Northwest, Signs Now WA started in 2008 and produces any kind of custom signage both permanent and temporary along with vehicle graphics. David and Rani have benefitted greatly from their association with Tabor 100. “Tabor gives us access to government agencies and private companies that need our services,” said Rani. “We appreciate hearing from and connecting with potential customers at the regular Tabor 100 meeting and at the special events the organization sponsors.”

Signs Now WA is growing and has done work for the City of Seattle, King County, State, Snohomish County, Boeing and many other private clients. They see their greatest avenue for growth in the public sector and are interested in expanding their list of public clients throughout the Northwest. “We work hard at Tabor to both present business opportunities to our members and help them prepare for taking on bigger and more diverse projects that help them to grow,” explained Ollie Garrett, President of Tabor 100. “I am pleased to hear that Signs Now WA has benefitted from the association with our organization. There are a number of projects in both the public and private sector that they can benefit from in the future and we are here to help.”

“We want businesses to understand and appreciate the benefit that good signage can give them,” said David Bal. “Marketing, advertising and branding—your image is defined by these three visual communication essentials. Let’s face it, the success of your business depends on its ability to get noticed.”

Signs Now WA has worked in most sign mediums and creates vehicle wraps, storefront window signs, construction and project signs, church, school, bathroom and bar signs, and more. Using the latest in sign-creation technology, Signs Now WA can cover the side of a large building or produce custom business cards. The

Signs Now WA team can create the image you want from concept to completion.

Signs Now WA can be contacted at 425-481-4900.

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THE DAILY ASTORIAN

John Berdes, a banker who was pivotal to Astoria’s rebirth over the past two decades, died Sunday of lung cancer.

As president and CEO of Craft3 — an unconventional lending institution — Berdes was central to the redevelopment of Mill Pond, the restoration of the Liberty Theater and the renovation of the Clatsop Community College campus.

Craft3, based in Ilwaco, Washington, also helped lift Pier 39, Fort George Brewery, Bridgewater Bistro and the Astoria Armory.

His partnership with Paul Benoit, the former city manager and community development director, to help transform a brownfield at the old Astoria Plywood Cooperative into the Mill Pond housing project led to one of the city’s signature achievements.

“No bank wanted to touch a contaminated site,” Benoit recalled in a text message. He said Berdes

“immediately got it. He understood what the project meant to Astoria and he intuitively understood that it had a possibility for transformational change.”

Benoit described Berdes as “amazingly intelligent and intuitive. He also had a very big heart. He helped people—neighbors and others in the region— reworking loan terms to assist a borrower in distress or, at times, providing quiet assistance from his own means to help neighbors.”

Greg Hamann, the former president of Clatsop Community College, called Berdes “a friend that I valued and loved dearly.

“And beyond—or perhaps because of—that friendship, John was soon to become a critical contributor to the complex funding amalgam that constituted the financial foundation for the reconstruction of the

Clatsop Community College campus.”

Hamann said Berdes introduced him to the federal New Market Tax Credit program as a source of funding for college improvements. The college was able to build Columbia Hall and renovate other buildings with the help of Craft3.

“None of this would have happened without John’s patience, persistence, and commitment to Clatsop College and the Clatsop County community, for which I am eternally grateful,” Hamann said.

Berdes, who lived in Seattle, earned his bachelor’s degree in urban studies from Oberlin College in Ohio. He was a community coordinator for the Capitol Hill Community Council in Seattle, the founding executive director of Capitol Hill Housing, and senior program director for the Local Initiatives Support Corp.

He joined Craft3 — then called ShoreBank — in 1995, a year after the nonprofit was created. Craft3 is a community development financial institution that provides loans and other assistance to people and businesses that may not have access to traditional financing.

The nonprofit has invested about $390 million in Oregon and Washington state, including more than $48 million in Clatsop County and Pacific County through 328 loans.

“We have lost a leader, a mentor, and a friend — but John left in his wake a strong organization and legacy,” Steve McConnell, the chairman of the Craft3 board of directors, said in a statement. “Craft3 has the impact it has because John was strong, determined, deeply thoughtful, and frequently brilliant.

“John dedicated his life to helping those around him, and the greater Craft3 and community development families will miss him terribly. We ask that you keep his family in your thoughts.”

► ► Remembering John Berdes

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Long-time Seattle educator and Tabor 100 supporter, Sheila Edwards Lange, Ph.D., has been named President of Seattle Central College.

Edwards Lange assumes her new post after serving as Interim President for the School since last August. “I am honored and privileged to be selected to serve as president,” Edwards Lange said. “Seattle Central, like the other colleges in the Seattle Colleges District, is

uniquely positioned to influence the economic and social well-being for thousands of individuals and families in our region. I am thrilled to be able to use my experience to lead an institution that has such a rich history serving the community.”

Seattle Central is part of the Seattle Colleges District, which has been a long-standing Tabor 100 organization member. “Given Tabor’s focus on education opportunities, equity and inclusion, we are pleased to see Dr. Edwards Lange heading one of the most important educational facilities for minority students in our region,” said Ollie Garrett, President of Tabor 100. “Dr. Edwards Lange’s background as Vice President for Minority Affairs and vice provost for Diversity at the University of Washington, makes her well-qualified to foster success among an ethnically diverse student population like at Seattle Central. Seattle Central is one of few colleges in the region that boasts a majority minority student enrollment.”

Dr. Edwards Lange has a long history of working with minority students. In her position at the University of Washington, she was responsible for increasing diversity at the school and working with senior leadership to improve the campus climate and retention of diverse students, faculty and staff.

She also teaches as an adjunct faculty member at the Daniel J. Evans School of Public Policy and Governance at the University of Washington. Prior to joining the UW, Edwards Lange worked for Seattle Colleges at the District office in Education and Planning and at North Seattle College. Additionally, she has held positions in academic and student services at the University of California, Irvine; Western Washington University; and the

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► ► Sheila Edwards Lange Appointed President of Seattle Central College

APRIL GENERAL MEETING

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► ► Life Enrichment Group’s Black College Tour 2016

BY: MONIKA MATHEWS & KEVIN C. WASHINGTON

This year, Tabor 100 was approached with a request to help out several students who were planning to participate in the 2016 Black College Tour – but were short more than $1,500. Along with others, the Tabor 100 Education Committee was able to repurpose $450 towards the effort, and both students were able to make the trip.

The Life Enrichment Group (LEG) was founded by Monika C. Mathews in response to a disproportionate number of students of color that were failing in school. LEG has been actively serving many communities in Seattle and surrounding areas since 2003. During this time, LEG has been able to transform the lives of at-risk youth and their families who are often overlooked in society at large. Our philosophy revolves around providing meaningful experiences for youth, which address the challenges that African American and youth of color face on a daily basis. Our highest mission is to provide guidance and support for our youth through positive channels of education and cultural awareness. In 2011, we offered our first East Coast Black College Tour which was a huge success. Currently, we have a 95% success rate with our seniors who participate in our college tours. This means that 95% of seniors that attended our Tour have graduated from high school and are now attending a 2- year, 4-year, or vocational/university or college! We now are collecting data on tour participants who are graduating college!!!

During April of each year, a cohort of students travels to the East Coast to visit Historically Black Colleges

and Universities in New York City, Philadelphia, Maryland, Washington D.C., and Virginia. We accept youth in the 8th grade and up to attend our tours. Youth who participate in our tour receive access to an Academic Coordinator who assists with the college process from start to finish. This service is available until the end of the student’s senior year. Prior to Tour departure, youth participate in a series of college preparation workshops covering topics from college and career assessments to creating an application portfolio. Juniors and seniors have the opportunity to apply on the spot at universities of their choice. Many students also walk away with on the spot scholarships as well!

We are excited by our success in changing the lives of youth thus far, as LEG provides more than just college campus tours. In addition to the Tours, we also provide mentoring and youth development programming as well as workshops throughout the school year that include like skills development and social entrepreneurship classes. Our main programs include Young Queens, Know To Grow, Girl Power and Youth In Business. We also offer an academic summer program, The Scholars Project specifically for African American youth. We take pride in serving our community and are invested in the success of our youth one life at a time! We are always looking for ways to strengthen and enhance this work so we operate in the spirit of collaboration! We are better together!!!!!

For more information please contact us at info@lifeenrichmentgroup.org or at 206.302.8114.

BY THOMAS DANNY BOSTON

During the late 1970s and early 1980s, federal, state and local government agencies established minority business programs to address decades of unfair treatment experienced by minority entrepreneurs. Today, the worse of the unfair practices have ceased, but some issues still remain.

The mandates of those programs were a watershed for minority businesses because they opened market opportunities that did not exist otherwise. The opportunities transformed the character of minority enterprises.

Federal law prohibits discrimination in the award and execution of contracts that are financed wholly or in part by public funds. Nevertheless, before minority business programs, the contracting record of most public agencies indicated wide disparities in awards to minority and nonminority contractors. Even controlling for differences in capacity, studies have shown that minority entrepreneurs were not nearly as successful as were similarly situated nonminority entrepreneurs in securing prime contracts, subcontracts or in providing commodities and supplies to public agencies.

In many locations, the historical record revealed racial barriers operated beneath the surface of what appeared to be open and fair contracting practices. While most of these practices adversely affected minority business owners, some also put nonminority small businesses at a significant disadvantage. Based on the consulting experience of EuQuant (which powers the Gazelle Index) we list some lingering problematic areas for minority business programs. Below are problems that still need to be resolved. Some of them are old problems, but some are relatively new:

1. Many programs have subcontracting goals, which mandate prime contractors use minority subcontractors up to a given percentage. In such cases, it is too often true that minority firms are crowded into low value added subcontracting activities, e.g. clearing and hauling, rather than paving and heavy construction.

2. Sometimes minority firms reinforce their own victimization by failing to diversify their

revenue stream beyond the low value added opportunities made available by non-minority primes.

3. No matter how well a minority subcontractor performs, many non-minority primes will not use the minority contractor on private work outside of a program mandate. For example, there is usually a large difference in the use of minority firms by prime contractors on state highway projects that have mandates (because they receive federal funds) and state projects that do not have mandates (because they involve only state funds).

4. A personal net worth ceiling exists in most state and federal minority business programs. This threshold cannot be exceeded by persons who participate in the program. The rationale is to target the program to disadvantaged individuals. However, the ceiling makes it difficult for participants to grow their business because bonding and loans are tied to personal wealth. Furthermore, the ability to bid competitively for prime contracts depends on bonding capacity.

5. A particularly distressing outcome is that some minority business owners keep their business small intentionally. They do so to qualify for minority business programs. One reason for this is minorities have problems winning private sector contracts. However, the problem is magnified by the conscious decision of some minority business owners to keep their business small.

6. Competitively bid prime contracts often contain language that is written specifically to give a certain prime contractor a unique advantage. Under such circumstances, the lowest and most responsible bid can be predetermined.

7. Some prime contracts are unnecessarily bundled into large amounts that are beyond the capacity of small and minority businesses to perform – even when they can be broken down efficiently into smaller lots.

8. Bonding requirements often prevent small and minority contractors from bidding on larger projects because (as many minorities complain

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► ► Minority Business Programs: Problems that Need Fixing

Your First Step Toward Success

Sign up online today!

The Port of Seattle’s Small Business Program promotes access for small minority, women, and disadvantaged firms. Take your first step toward equal access and economic opportunity.

Contact:Office of Social Responsibilityosr@portseattle.org

www.portseattle.org/About/Organization/Pages/Small_Business

...Minority Business Programs continued from page 6.

repeatedly) unregulated bonding practices are often characterized by unfair and discriminatory treatment of minorities.

9. Authoritative studies have documented that blacks, and Hispanics are less likely to receive a bank loan and more likely to pay a higher interest rate than do similarly situated non-minorities.

10. Non-minority women are increasingly receiving a larger share of benefits from minority business programs. This is causing some unspoken polarization between minority entrepreneurs and white women. The irony is that in many locations, white women are still underutilized relative to their capacity, even if they receive a larger percentage than minorities.

These are major problems. In a future post, we will outline our view of how these problems can be corrected.

...Sheila Edwards Lange continued from page 4.

University of Washington. She has served on a number of national, state and local committees and boards to advance equity and inclusion in higher education.

Edwards Lange received a doctorate in education leadership and policy studies and a master’s in public administration, both from the University of Washington, and she earned a bachelor’s in social ecology from the University of California, Irvine.

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THE TABOR 100 BOARD

President: Ollie Garrett President@Tabor100.org

Vice President: Brian Sims VP@Tabor100.org

Treasurer: Anita DeMahy Treasurer@Tabor100.org

Secretary: Sherlita Kennedy Secretary@Tabor100.org

Membership: Sharlene Spencer Membership@Tabor100.org

Education: Kevin C. Washington Education@Tabor100.org

Public Affairs: Henry Yates PublicAffairs@Tabor100.org

Economic Development: Edson Zavala EconomicDevelopment@Tabor100.org

Government Affairs: Jamila Johnson GovernmentAffairs@Tabor100.org

Fund Development: Open Position FundDevelopment@Tabor100.org

Business Development: Anthony Burnett BusinessDev@Tabor100.org

TABOR 100 OFFICE 2330 130th Ave NE #101 Bellevue, WA 98005 425-881-8768 Staff@Tabor100.org

Newsletter Editor: Mel DePaoli mel@omicle.com | 425.440.1099

Webmaster: William H. Dudley WilliamDudley@jcisreal.com 425.917.8288

WE ENCOURAGE YOU TO REACH OUT!

UPCOMING MEETINGS

Jun 29: Subcontractor Open House. 2 - 5 p.m. at the Union Station Santa Fe Room.

Jun 30: Alaska Airlines' Business Community's Salute to Boeing. 10 a.m. - noon at The Museum of Flight.

Jul 21: City of Seattle Reverse Vendor Trade Show. 11 a.m. - 3:30 p.m. at the Seattle Center Fisher Pavillion.

COMMITTEE MEETINGS

Education Committee meets after the Tabor General Meeting, the last Saturday of the month from 12 p.m. to 2 p.m. at The Central.

Please contact any of the Chair’s for more information about their committee.