Social and Economic Impact Report 2007

cSocial & Economic Impact ReportCalendar Year 2007

The Village at Market Creek

cIntroduction by Jennifer S. Vanica, President & CEO Jacobs Family Foundation

Jacobs Center for Neighborhood Innovation

To Raise a Village: Exploring the Social and Economic Impact of Market Creek

1c

If 2006 was the year that Market Creek

Plaza “changed ownership” — both literally

and figuratively — 2007 was the year that

Market Creek became a village. Market Creek

Plaza’s working teams became “Village Teams,”

land planning and land acquisition expanded,

residents and funders worked

in a more interconnected and

comprehensive way, and the vision

of Market Creek transformed into

a large-scale cultural village.

Today in San Diego, it is hard to remember the

corner of Market Street and Euclid Avenue of

ten years ago. Widespread blight. No access

to a major grocery. Few businesses operating

past sundown. The toxic environment and

concrete channels of Chollas Creek.

But that was then.

The story of Market Creek and the transformation

of the surrounding area is the story of a

community that dared to dream. It’s about

residents who had the nerve to step out of

their homes and connect across cultures, across

It’s about people who took

great risks, who withstood

great criticism, and who had

the courage to believe they

could create the community

they wanted to live in.

neighborhood boundaries, across social status,

and across educational levels to bring their gifts

and problem-solving skills to the table. It’s about

people who took great risks, who withstood great

criticism, and who had the courage to believe

they could create the community they wanted

to live in.

When asked, residents spoke out. They wanted to

remove physical blight. They wanted to reclaim

public transportation. They wanted to be able

to walk their neighborhoods and have safe

routes to school for their children. They wanted

access to healthy foods

and viable housing choices

for their families. They

wanted nice restaurants.

They wanted jobs and

pathways to careers. They

wanted great schools

and quality after-school

programs for their children.

They wanted to celebrate

their cultures and share their customs,

traditions, and art. And they wanted to open

the doors to ownership for themselves, their

children, and their children’s children.

c 2007 was the year

that Market Creek

became a village.

2

There is nothing remarkable or different about

the dreams of these residents. Pick any city,

any neighborhood, on any day, and people

across the country will have the same dreams.

But what feels different to people when they

come to The Village at Market Creek is the result

of what happens when neighbors take charge

of change. It is what happens when they have

the opportunity to be heard, see themselves in

the vision and planning, and have permission

to fail, dust off, come back, and try again. It is

what happens when people are encouraged to

take risks and when they won’t take no for an

answer. It is what happens when people have

the opportunity to experience the creativity of

teamwork and take the time to celebrate each

accomplishment, now matter how small.

While its success may be

measured by square feet

of construction, number of

jobs, and value of contracts,

Market Creek is mostly

about people learning

how to work together,

developing strong and dynamic networks,

creating bridges to the larger region, and

cultivating a widespread community ethos

built on the belief that change is possible.

It is the story of resident ownership —

the ownership of planning (where vision

is built), the ownership of implementation

(where skills and capacity are built), and

the ownership of assets (where the ability

to leverage future change is seeded).

So what is the impact of Market Creek?

This report details what we know about the

social and economic impact of Market Creek.

As part of the report, we also share some of

the challenges and lessons learned during

the last year as the work of the resident teams

progressed and as Market Creek evolved

from a plaza into a large-scale cultural village.

While our team is always grappling with

identifying the right success indicators, here is

some of what we point to when asked, “How

do you know Market Creek is working?”

What feels different to people when

they come to Market Creek is

the result of what happens when

neighbors take charge of change.

3c

Business Development and Employment

Evaluating Market Creek as a vehicle for the

development of jobs and the advancement of

business, we can point to the Plaza’s ability to

recruit and sustain a major grocery. We can point

to the growth in sales for Food 4 Less over its

seven years of operation and to the growing base

of deposits at

the Wells Fargo

Bank. We can

point to Market

Creek Plaza’s

overall ability

to achieve stable employment even though

the percentage of community hiring has

fluctuated. In 2007, a change in Food 4 Less

hiring facilitated a 14% increase in community

employment over the prior year and put us back

on target with Market Creek’s original goals.

On the community business development

front, the two largest resident-owned

businesses, Magnolias and El Pollo Grill,

face the daily challenge of operating in an

emerging market. They are meeting that

challenge by expanding their catering and

events. Both are current on leases and loans.

In 2007, business roundtables brought

together representatives from the City

Council office, the redevelopment agency,

the Coalition of Neighborhood Councils,

and the Diamond Business Improvement

District to share ideas for expanding

community support of local businesses.

Market Creek Partners, LLC

Evaluating Market Creek as a business, we can

point to the Plaza’s ability to recapture over

$40 million in economic activity and sustain

approximately 195 jobs. For Market Creek

Partners, we can document $1.7 million in

annual revenues, its ability to manage its debt

service, and its profit (after depreciation) of

about $100,000 per year. We can also point to

the company’s potential for growth when the

property at Market & 47th streets is developed.

Jacobs Facilities, LLC

Evaluating Market Creek as a community

resource and gathering place, we can point to

the new Joe & Vi Jacobs Center with its indoor

and outdoor meeting and performance spaces,

along with its 5,000-square-foot commercial

kitchen. Built with the backbone infrastructure to

be competitive with the top similar-sized venues

in San Diego, the Center will assist residents in

continuing to recapture the economic leakage

associated with meetings, conferences, catering,

banquet services, and other related industries.

A new business that will be formed in the

coming year to operate its venues and culinary

academy is targeted to create an additional

200 to 250 new jobs, more than doubling

Market Creek’s current employment counts.

Community Ownership

Evaluating Market Creek as an asset-building

strategy, we can point to the ownership structure

of Market Creek Partners, LLC as a mechanism

for residents to benefit directly from the growing

value of land in their community. We can point

to the “working team” as a methodology for

facilitating broad-based ownership of project

planning and implementation. We can look at

the “Community Development IPO” as a tool for

offering community residents a financial stake

in the revitalization of their own neighborhoods.

We can detail the distribution of profits to our

local community investors at a 10% preferred

return, and to the Neighborhood Unity

Foundation, which is putting those profits

back into strengthening the community.

Evaluating Market Creek as a business, we can point

to the Plaza’s ability to recapture over $40 million in

economic activity and sustain approximately 195 jobs.

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The Built Environment

Evaluating Market Creek from a smart-growth

perspective, we can point to the investment

in restoring the vitality of one of San Diego’s

older urban neighborhoods. We can point to

its transit orientation, the strong sense of place

captured in its architecture, its walking paths,

and the longer-term vision for mixed land uses

with a range of housing and commercial services.

Through the development of The Village at

Market Creek, a 20-acre industrial brownfield

has been put back into productive use, toxic

apartment complexes have been removed and

will be replaced, fossil filter storm drainage

systems have been put into operation, and over

2,250 linear feet of wetlands have been restored.

In 2007, Cats Excavating and

Engineering, previously a

small, unbonded company,

served as the prime contractor

for the Chollas Creek Encanto

Tributary Restoration Project,

having grown its capacity for

this very specialized wetlands recovery work.

In the development of the new Joe & Vi Jacobs

Center, we can point to alternative building

materials used in framing the new building, the

cool-roof system, the measures taken to ensure

energy efficiency and air ventilation, the use

of recycled and non-toxic materials, and the

installation of the backbone for solar energy.

The impact of new construction in The Village

has been significant on our local community

contractors. Over $27 million in contracts

have gone to minority- and women-owned

businesses — an unprecedented 76% of

all contracts.

Community Building

Evaluating Market Creek as a platform for building

community, we can point to its network of

working teams. While the impact of the teams

is more challenging to quantify, these teams

have helped build the capacity of people to

conduct planning, find common ground, adopt

an action orientation, mobilize resources, create

dialogue and greater understanding among

ethnic groups, reduce tagging, and increase pride.

Most importantly, these teams have stimulated

a can-do spirit, a commitment to joint action,

and a sense of responsibility to one another.

We know that “community listening” and forums

that give residents a voice are now the way

business is done here. We can see the growing

strength of the Coalition of Neighborhood

Councils, the Diamond Business Improvement

Through the development of

The Village at Market Creek,

a 20-acre industrial brownfield has

been put back into productive use.

5c

District, and the Neighborhood Unity Foundation,

and we see a growing commitment to ensure

all cultures are represented. In addition, we

know that San Diego’s broader philanthropic

community is now actively working across areas

of interest to expand organizing efforts, pilot

resident-led projects, help residents mobilize safe

neighborhood networks, strengthen schools,

and bridge The Village to the larger region.

Commitment to Shared Learning

Evaluating Market Creek as a platform for learning,

we can point to the hundreds of people that

come each year to visit and to learn from its

strategies, structures, principles, and practices,

and to be inspired by what is possible. We know

that the model embedded in Market Creek

— resident ownership of change — is helping

people grapple with the issues of equitable

development in their own communities, and

it is expanding the limits of how residents can

benefit broadly from revitalization efforts.

We know that Market Creek is becoming a

gathering place for those who want to undertake

large-scale cross-cultural organizing, gain site

control of enough land to make a difference,

and design creative financing partnerships.

It is becoming a learning hub and an R&D partner

for community development practitioners,

foundations, and researchers trying to understand

the dynamics of supporting, implementing,

and sustaining community revitalization

efforts.For those interested in public policy,

it is becoming a place to see up-close-and-

personal the tools, laws, and regulations that

either facilitate or stand in the way of change.

As we enter 2008, we still are wrestling with many

of the same questions and issues we started

with: What strategies best facilitate the economic

expansion of an under-invested area? How long

does it take for an emerging market to form?

How do you best support local business

development without getting in the way of

people’s natural problem-solving? What is the

right mix of activities and services? How do you

harness the local consumer market and attract

a capital market? How do you define scale at

the neighborhood level and how much scale

is needed for sustainability?

We can also say that Market

Creek has confirmed our

original three core beliefs

about community change:

Long-term hands-on

partnership projects

provide the most fertile

ground for learning and

capacity-building.

If you want more than

a make-over, neighborhood revitalization

demands the integration of grantmaking,

training, community organizing, and

development.

When residents own their own change,

they can develop sustaining assets while

rebuilding their neighborhoods.

Our founder, Joe Jacobs, encouraged us to always

remember that failure can be a platform for

success. He gave us the courage to keep going no

matter what went wrong or what barrier was in

the way. As a chemical engineer, he challenged

us to be intentional about our process and stay

clear about what results we were seeking.

From this vantage point ten years out, we know

Market Creek has made a difference. But we

also learned from Joe that success, just like

failure, is anyone’s interpretation of a moment

in time. Business is organic. Economics can

shift on a moment’s notice. He taught us to

be ever vigilant. To never feel like we have

arrived. To always analyze where we are and

work toward improving our performance.

With that in mind, let’s do the numbers…

We know that the model

embedded in Market Creek

— resident ownership

of change — is helping

people grapple with the issues

of equitable development

in their own communities.

lculture

commerce

community

2007 Highlights: On Becoming a Village

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The close of 2007 marked the ten-year

anniversary of the resident surveys that launched

the planning for an old factory site. It was the

seventh year of operation of Food 4 Less. It was

the fourth year of profitability for Market Creek

Partners, LLC. It was the one-year anniversary

of the country’s first Community Development

IPO. And it marked the transformation of

Market Creek from a plaza to a cultural village.

The Village is a new way to look at the work.

Moving out of individual silos of activity,

residents began convening across teams

and initiating a deeper conversation about

elements that create great communities.

Through this process, teams and partners began

to discuss a larger sense of purpose and began to

define their roles and goals in creating a strong,

safe, and vibrant village. Capacity-building plans

no longer focused on individual non-profits. It

focused on the ability of groups to work together

in developing The Village in a cohesive way.

Across Chollas Creek, the construction of

the new Joe & Vi Jacobs Center dramatically

changed the landscape at Market Creek. As the

next phase of The Village, this Center doubled

the scope and scale of new development and

catapulted the community teams into a dynamic

conversation about the vision of a bustling

cultural district. This new community gathering

place, learning center, and magnet for arts and

culture helped residents build new bridges across

teams, across cultures, and across the region.

Building on the lessons from Market Creek Plaza,

the teams working on the new Center achieved

unprecedented results in its development,

financing, and construction. The permitting

of the building was smooth, the tax credit

financing was rapid, and the “Community

Builders” program delivered an

exceptional project both in the

quality of the building and the

use of community contractors.

Teams worked on planning

the Center’s office space, its

galleries, its inside and outside

meeting and performance

venues, and its new plaza areas.

Teams advanced the market research, program

design, and financial planning for the meeting

and conference center, which will be phased

Teams and partners began to

discuss a larger sense of purpose

and began to define their roles

and goals in creating a strong,

safe, and vibrant village

8

into full operation over the next two years. They

also assessed the financing needed to complete

the audio-visual and performance capabilities

of the building, and worked on projecting the

timelines for full sustainability of these venues.

Plans were developed to bring the building

to life through community space, vibrant

multicultural art, and diverse activities that will

give it a unique place as the heart of The Village.

Work on the next three phases

of The Village also advanced.

East of Market Creek Plaza, the

Chollas Creek Encanto Tributary

restoration project, with support

from the State Water Resources

Control Board and the City of San Diego, made

way for the planning of a new industrial project.

Planning also progressed on securing an anchor

tenant for the southeast corner of Market & 47th

so development can begin on this important

western gateway to The Village. The Housing

Team also advanced its plans for the first Village

housing community and continued preparing

local residents for ownership of its 42 units.

The City of Villages Team, a partnership between

the Coalition of Neighborhood Councils and

the Jacobs Center, worked to clarify roles,

increase communication in the community,

and draft a prototype community benefits

agreement to use in The Village as it develops.

With 2007 came a growing conversation among

the teams about “scale.” What does scale mean

at a neighborhood level? How much scale is

needed to impact a regional economy? How

much scale is needed to sustain the management

structures of The Village? How much scale is

needed to create an ownership structure open

to an unlimited number of stakeholders?

These conversations resulted in an action plan

to expand acquisition of blighted, unused, or

under-utilized contiguous properties along

Market Street. To support this plan, teams worked

on securing low-cost working capital and other

strategies for reducing the holding costs of

The Village land bank.

With 2007 came a growing

conversation among the

teams about “scale.”

9l

With the vision of The Village expanding from

20 to 80 acres and working teams beginning

to envision the components of a healthy and

vibrant village, people moved toward greater

collaborative action and began to seek new ways

to deepen and broaden the voices at the table.

Writerz Blok, the youth urban art project,

collaborated with the local high schools on mural

classes. The Teen Center collaborated with a local

elementary school on recreation. The Childcare

Team expanded to address the larger issues

of family support. The principals of the seven

surrounding schools mobilized to jointly promote

a culture of learning and to strengthen services

to families. Parents, youth, law enforcement,

former gang members, non-profit organizations,

the San Diego Commission on Gang Prevention

and Intervention, the Fourth District Council

Office, and the San Diego Neighborhood Funders

mobilized to create a Safe Neighborhoods Area

Project. Those funders also initiated collaborative

action to address the challenges of residents

returning to the community from prison.

What started as a commitment to engaging

community artists in the creation of public art

evolved into an Artists-in-Residence Program

and the engagement of people across cultures in

a more comprehensive strategy for The Village.

Attracting the attention and support of

San Diego’s arts institutions,The Village

offered a platform for the broader San Diego

region to experience the community’s rich

diversity and helped residents see their

neighborhood as a cultural destination.

To support cross-cultural understanding and

facilitate organizing in and across cultures,

the International Outreach Team began to

serve all teams.

Its youth-adult

partnership strategy

helped organize

representation

across cultures and

connect all cultural groups with the 32 working

teams that make up The Village. It was through

their work that Market Creek began to take

on its unique identity as a cultural village.

Ten years ago, a small group of community

residents teamed up to address some of the

challenges of the Market-Euclid intersection.

The discussion was about the difficulty of

crossing streets, needing more activities for

young people, addressing gangs and long-

term disinvestment, and getting much-needed

commercial services back into the area.

By 2007, this discussion had grown into

the large-scale planning of a village

— The Village at Market Creek.

People moved toward greater collaborative

action and began to seek new ways to deepen

and broaden the voices at the table.

10


Scale of The Village 2007

Goal for Acreage in The Village 60-80

Total Acres Currently in The Village 44

Acres of New Development Completed 11

Acres In Development 5

Acres In Temporary Use 11

Village Commercial and Industrial Development 2007

Goal for Square Feet of Commercial and Industrial Development 350,000

Square Feet Developed 120,000

Commercial Development in Planning or Construction 73,500

Industrial Development in Planning or Construction 20,000

Village Housing 2007

Goal for Homes in The Village 800

Homes in Planning or Construction 42

Homes Completed 0

Resident Engagement Since Inception*

Formal Community Listening (Surveys and Focus Groups) 8,252

Informal Community Listening (Community Feedback Sessions) 2,400

Design and Planning Team Participation 2,860

Implementation Team Participation 1,082

Arts and Culture Venues 2007

MCP Amphitheater Completed

Festival Park Completed

Joe and Vi Jacobs Center Under Construction

Village Community Facilities 2007

Goal for Square Feet of Community Facilities in The Village 110,000

Square Feet in Planning or Construction 75,000

Square Feet Completed 27,000

* Cummulative participation totals (people may be counted more than once)

11

Jobs Created in The Village 2007

Goal for Jobs in The Village 800

Jobs on The Village Acres at Purchase 7

Jobs as of 12/31/07 415

Capital Investment in The Village Since Inception

Total Capital Investment in The Village as of 12/31/07 $85,000,000

The Village at Market Creek (cont.)

Village Construction Projects 2007

Chollas Creek Restoration Project - Restoration Complete

Elementary Institute of Science - New Construction Complete

Market Creek Plaza - New Construction Complete

BRYCO Business Park - Renovation Complete

Chollas Creek Encanto Tributary Restoration Project - Restoration 80% Complete

Joe & Vi Jacobs Center - New Construction 80% Complete

Community Contracting Since Inception

Total Value of Village Construction Contracts $36,185,000

Contracts to Minority- or Women-Owned Businesses $27,378,000

Percentage of Minority- or Women-Owned Contractors 76%

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Market & 47thVillage Gateway• Anchor letter-of-intent • Site plan• Continue land aquisition

Youth World• Conceptual plan for moving Youth World to this site West Village

• Zone change • Lot line for parcel separation from the Joe & Vi Jacobs CenterSouthwest Village

• Continue land acquisition • Temporary use — Festival Park until 2011• Zone change

Northwest Village — Rental Housing• Conceptual plan Joe & Vi Jacobs Center

• Construction• Interior design• Tenant improvements first and third floors• Second floor planning• Business plan for new social enterprise to operate first floor


Northwest Village — Homeownership• Conceptual plan• Temporary use — Writerz Blok until 2009

13

BRYCO Business Park • Interior renovation • Leasing program design • Leasing• Exterior renovation plan

Guymon Apartments • Demolition• Zone change • Temporary use until 2010 — Guymon Youth Park

Housing Pilot • Working Team planning• Architectural design • Homeownership financing structure• Zone change• Homebuyer readiness

Northwest Village - Commercial• Hold for lease expiration• Zone change • Temporary uses until 2012

2007 Development Overview

Light Industrial Project• Architect Selection• Massing and Zoning Studies• Grading

qservice

development2007 Highlights:


OverviewMarket Creek Partners, LLC is a community development limited-liability company that unites diverse

communities in creating social and economic strength. This innovative resident-owned company owns

Market Creek Plaza, a 10-acre community-planned project anchored by Food 4 Less, restaurants,

retail shops, and venues for multicultural art and entertainment. The company also owns

a parcel of land at Market & 47th streets scheduled for development in 2008.

Community plans call for recruitment of a major drug store to anchor this project.

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The Work in 2007The work during the past year focused on

four areas: 1) the profitability of the company,

2) achieving a 10% preferred return for the

community investors, 3) securing an anchor

tenant for the property at Market & 47th, and

4) assuring quality property management

and security.

Key ChallengeMarket Creek Plaza is more than a

shopping center; it is a cultural destination

and a community gathering place.

The small businesses located at the Plaza

can’t bear the cost of this added level of

security and maintenance. We need a

different strategy and funding mechanism

to keep common area maintenance costs

low. We also need greater scale to spread

administrative and training costs.

Key LearningBecause of the emerging market location

of the Plaza, it is more important than ever

to keep it inviting, safe, and beautiful.

Proactive maintenance schedules, stronger

trouble-shooting, and a higher level

of expertise for training and mentoring

are critical. This requires a different type

of funding short-term, and the ability

to take The Village to scale long-term.

q

Key MilestonesMarket Creek Partners, LLC was profitable in FY 2007, closing the fiscal year with cash of $745,000 after debt service and $111,000 after depreciation and lease amortization.

All loans are current.

With the close of the public offering December 31, 2006, Diamond Community Investors were owners for six months at the close of the fiscal year; members received their first distribution of profits at a 10% preferred return for that six months of ownership.

Neighborhood Unity Foundation owned 20,000 units during the first six months of the fiscal year and its full 50,000 units for the second six months; NUF received its 10% preferred return based on its ownership share.

The team worked on securing an anchor tenant for the property at Market & 47th streets, ending the year in negotiations on a letter-of-intent.

To improve the quality of property management and reduce the cost of maintenance, functions previously contracted were brought in-house, adding five permanent jobs for community residents.

Training was increased for the Market Creek Ambassadors Team in working with the public; strong relationships were developed with San Diego Police

Department southeastern division and gang unit.

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Overview Market Creek Plaza Market & 47th

Date Acquired Land 05/05/1998 07/13/2000

Total Square Footage to be Developed 104,082 Includes 25,000 square feet

of groundlease

18,000 Groundlease

New Construction or Rehab New New

Percentage of Project Complete 100% 0%

Expected Completion Date Completed June 2010

Development Costs Market Creek Plaza Market & 47th

Budgeted Development Cost $23,500,000 $300,000

Costs to Date $23,600,000 $2,500,000 in capitalized interest was

not included in original budget

$0

Projected Costs at Completion $24,000,000 Includes capitalized interest

$300,000

Source of Original Development Financing

Wells Fargo Bank and JCNI loans paid off

Appraised Value of Project Will be reported beginning one year after the close of the IPO; appraisal will be initiated at close of FY 2008

Permanent Financing Date Amount

Program Related Investments (PRI) Jacobs Family Foundation F.B. Heron Foundation Rockefeller Foundation The Legler Benbough Foundation Jacobs Center for Neighborhood Innovation Annie E. Casey Foundation Annie E. Casey Foundation

June 2002

September 2003 October 2003 October 2004

June 2005 August 2005

December 2005

$2,000,000 500,000

1,000,000 500,000

2,350,000 1,000,000

250,000

Community Investment Diamond Community Investors Neighborhood Unity Foundation

December 2006 December 2006

500,000 500,000

New Markets Tax Credit Loan Clearinghouse CDFI - Wells Fargo and Company

June 2004

15,000,000

Total $23,600,000


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Leasing Market Creek Plaza Market & 47th

Number of Units 12 Retail Suites 1 Groundlease

1 Groundlease

Total Square Footage to be Developed 104,082 Includes 25,000 for

groundlease

18,000Groundlease

Total Square Footage Leased to Date 102,482 0

Percentage of Space Leased 100% Retail Suites 100% Groundleases

Groundlease in negotiations

Percentage of Space Occupied 100% Retail Suites 100% Groundleases

0%

Market Creek Partners, LLC (cont.)

Market Creek Plaza Construction — at Completion (For contracts controlled by JCNI/DMI)

Since Inception

Number of Contractors 74

Number of Contractors from the 4th District 15

Number of Minority or Women Contractors 49

Total Dollar Value of Construction/Service Contracts $10,000,000

Value of Construction/Service Contracts to Minority- or Women-Owned Contractors

$7,868,000

Percentage of Minority- or Women-Owned Contractors Based on Value of Contracts

79%

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Economic Activity Generated by Market Creek Plaza

2007 2006

Total Economic Activity $40,200,000 Reported as of 12/31/07

$34,200,000 Reported as of 12/31/06

Total Property Tax Generated $147,393 Reported as of 6/30/07

$146,897 Reported as of 6/30/06

Economic Activity Generated by Market Creek Partners, LLC

FY 2007 (Reported as of 6/30/07)

FY 2006 (Reported as of 6/30/06)

Total Revenues to MCP, LLC $ 1,733,913 $ 1,733,817

Operating Expenses and Loan Interest (988,985) (1,025,753)

Income After Operating Expenses and Loan Interest

$ 744,928 $ 708,064

Depreciation and Lease Amortization (633,692) (608,209)

Net Income $ 111,236 $ 99,855

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Comparison to Original Projections — First Bottom Line

Original Projections

Projected for Completion

Total Project Costs $23,200,000 Did not include

capitalized interest

$24,000,000 Includes capitalized

Interest

Average Rents Per Square Foot $0.95 $1.12

Debt Service Coverage (All Rents to All Loans) 151% 230%

Debt Service Covered by National Tenants 125% 183%

Gross Revenue $1,700,000 $1,817,000

Blended Interest Payment $781,000 $540,000

Income after Interest Payment and Reserves $675,000 $543,688

Blended Return on Investment 7.8% 8.24%

Comparison to Original Projections — Second Bottom Line

Original Projections

Impacts as of 12/31/07

Resident Engagement (Since Inception) Formal Community Listening Participation (Surveys and Focus Groups) Informal Community Listening Participation (Community Feedback Sessions) Community Design and Planning Team Participation Working Team Participation Number of Working Teams

1,4008,252

2,400

2,8601,082

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Annual Economic Activity $31,000,000 $40,200,000

Construction Contracts to Minority- or Women-Owned Businesses

65% 79%

Jobs Created 166 193

Percentage Employed from Neighborhood 65% 72%

Percentage of Minority Employees 65% 88%

National/Regional Tenants 4 5

Local Businesses 8 7

Community Ownership 40% 40%

Aconference

growth

2007 Highlights: Jacobs Facilities, LLC

OverviewThe Joe & Vi Jacobs Center is the next phase of development for The Village at Market Creek and

the main asset of a new community development limited-liability company called Jacobs Facilities, LLC.

This new Center in The Village is a 75,000-square-foot central resource center and gathering place at the

heart of The Village with a mission of facilitating learning relationships, celebrating multicultural unity,

advancing the spirit of entrepreneurship, and contributing to the social and economic strength of the

community. In addition to providing office space for organizations working on the revitalization of the

Diamond, the Joe & Vi Jacobs Center will be home to a multi-purpose conference and performance

center, a 5,000-square-foot. commercial kitchen and culinary academy, and a multicultural gallery.

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The Work in 2007The work during the past year focused on four

areas: 1) constructing the facility, 2) engaging

community teams in planning the interior

design, exterior plazas, and garden, 3) finalizing

the plans for the initial art opportunities in

the facility’s lobbies and cultural niches, and

4) finalizing the business plan for the new

social enterprise that will run the first floor

conference and banquet services business.

Key ChallengesThe planning of working teams overlapped

with the actual construction process, which

made it both easier and harder. It was easier

in the sense that community teams could

visualize decisions that needed to be made.

It was more difficult for our small sub-

contractors who were often asked to adjust

plans while the building was in progress.

With any social enterprise, trying to secure

capital gets very complex. These businesses

are for-profit structures with non-profit

missions, so they require a hybrid approach to

capitalization. This is easier when projects are

phased. Because the square footage of Market

Creek Plaza is spread out in five buildings, its

construction could be phased. The Joe & Vi

Jacobs Center, which is 75,000 square feet in

one building, is more complicated to phase.

Key LearningsNeighborhood change requires a new

standard and a new expectation for the

quality of work. To do this without escalating

the cost of space and creating a gentrification

dynamic in the neighborhood requires a

hybrid model of development finance.

A

Key MilestonesAt the end of 2007, construction on the Joe and Vi Jacobs Center was 80% complete.

The Construction Working Team facilitated a careful “best bid” process that resulted in 74% of the contractors being historically under-utilized business enterprises (HUBE).

Planning advanced for the newest Market Creek community venture — the business that will operate the first floor venues and commercial kitchen — including a gradual phase-up in the operations of the audio-visual and performance capabilities of the Center.

Planning teams worked on every detail of the first and third floors, with the second foor to be planned in 2008.

Four artists selected for the Artists-in-Residence Program are working with the community on the art components of the Center, including the entryways and cultural niches.

Space was reserved and planning initiated for a gallery in collaboration with The Legler Benbough Foundation, members of the Balboa Park Cultural Partnership, and the Jacobs Center for Neighborhood Innovation.

Teams advanced plans to secure an additional $5 million in private investment to bring the facility to full audio-visual and performance capability and to increase the facility’s solar capability.

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Keeping residents actively engaged in the

planning and project implementation over a

long period of time is best done when planning

periods are no more than 120-days and when the

process allows the flexibility for change as plans

move from conceptual to three-dimensional.

Momentum builds within the teams as work

becomes more concrete and visual. Flexibility

needs to be factored into the construction

timelines and financial models. Adjustments to

the pace and scope of work as a project moves

along enriches the vision and quality of the work,

and provides an opportunity for full participation

by residents in implementing that work.

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Overview Joe & Vi Jacobs Center

Date Acquired Land 05/15/1998

Total Square Footage to be Developed 75,000

New Construction or Rehab New

Percentage of Project Complete 80%

Expected Completion Date May 2008

Development Costs Joe & Vi Jacobs Center

Base Development Budget $23,500,000

Full Conference and Performance Capability* $5,000,000

Projected Costs at Full Completion $28,500,000

Costs to Date at 12/31/07 $18,600,000

Permanent Financing: Joe & Vi Jacobs Center Date Amount

Program Related Investments (PRI) Jacobs Family Foundation Jacobs Center for Neighborhood Innovation To be raised*

November 2002

March 2006$5,000,000 $3,500,000$5,000,000

New Markets Tax Credit Loan Clearinghouse CDFI - U.S. Bank - Washington Mutual Bank

December 2005

$15,000,000

Total $28,500,000

Jacobs Facilities, LLC

* JCNI is currently seeking partners for grants and PRIs to assist with the added capacity.

23

Jacobs Facilities, LLC (cont.)

Joe & Vi Jacobs Center Construction 2007 Since Inception

Number of Contractors 18 45

Number of Contractors from the 4th Council District 11 16

Number of Minority or Women Contractors 15 25

Total Dollar Value of Construction Contracts $3,515,000 $16,400,000

Value of Contracts to Minority- or Women-Owned Contractors

$3,400,000 $12,100,000

Value of Construction Contract to 4th Council District Contractors

$2,640,000 $7,000,000

Percentage of Minority- or Women-Owned Contractors Based on Value of Contracts

97%

74%

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residents

2007 Highlights: Community Ownership

Ownership StategyCommunity ownership is the ultimate goal of The Village at Market Creek. As The Village pilot project,

Market Creek Partners, LLC was designed to maintain a balance of community and individual ownership.

The Neighborhood Unity Foundation (NUF) was formed to facilitate community ownership. Its community-

resident board and volunteers raised its $500,000 ownership share and committed to putting all profits back

into neighborhood strengthening grants. Diamond Community Investors (DCI), the individual ownership

structure, was launched through a pioneering Community Development IPO. Today, it is made up of

415 individual neighborhood stakeholders. Diamond Management, Inc. has a small ownership

share as Market Creek Partners’ management company. The ownership strategy called for JCNI

to retain more than 51% of the company until all the foundation PRI partners are refinanced out.

The organizational documents contain a provision for full community ownership to be achieved by 2018.

ownership

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25yKey Milestones

Elections were held and the nine-member DCI Advisory Board was seated.

The DCI Advisory Board formed four core committees: Market Creek promotions, financial education, community benefits, and governance.

In November, Diamond Community Investors received their first distribution of profits.

Over 130 DCI members asked to be included in putting together a strategy for pooling their dividends for reinvestment until the next ownership opportunity is created.

Investor workshops on tax preparation and “Understanding Your K1” were initiated.

The IPO Evaluation Investor Survey and initial analysis were completed.

The Neighborhood Unity Foundation conducted its seventh round of grantmaking and has now distributed over $150,000 to resident-led work in southeastern San Diego; in 2008, 50% of NUF’s total grantmaking is projected to come from its dividends in Market Creek Partners.

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The Work in 2007With the IPO complete and both Neighborhood

Unity Foundation and Diamond Community

Investors seated as owners, the work in 2007

focused on four primary goals: 1) evaluating the

Community Development IPO, 2) connecting

the new owners to the larger plan for The Village,

3) stimulating broad discussion and learning

in the community about the importance of

investing and asset-building, and 4) continuing

to build the overall capacity of

residents to own The Village.

Key ChallengesOver 100 DCI members want to re-invest

their dividends and are seeking new

investment tools that can leverage higher

returns based on their ability to pool funds

and gain a larger footprint in the market.

This will require a new resident team

and a new role for the Jacobs Center.

As word spreads about the Community

Development IPO, we are assessing

what tools we can provide to support

other groups across the country. We are

concerned that in some cases groups

want to offer ownership of projects without

having engaged and involved residents

broadly in the planning and implementation

of those projects. We are uncertain about

what role, if any, to play with these groups.

Key LearningOwnership brings returns — in every sense

of the word. DCI and NUF earned financial

returns from their investments in Market Creek

Partners. Many wanted to put their returns

back into The Village as a whole. The shared

risk of ownership has returned stronger social

connections and greater social responsibility.

The work to create these ownership structures

has spawned a broader conversation about

both the power of collective investment and

the importance of personal economic security.

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Diamond Community Investors (DCI) As of 6/30/07*

Original Goal for DCI Investment in MCP, LLC $500,000 (not to exceed)

Original Goal for Number of Community Investors 450 Investors (not to exceed)

Number of Participants in Sales Process During IPO Campaign 1,130

Number of Diamond Community Investors 415

Total Amount Invested by DCI in Market Creek Partners 500,000

Total Number of DCI Units Held in Market Creek Partners 50,000

Original Goal for Percentage of DCI Ownership 20%

Current Percentage of DCI Ownership 20%

Return on Outstanding Units 10%

Overview - Market Creek Partners, LLC As of 6/30/07*

Total Number of Units 250,000

Number of Units Issued 250,000

Units in Community Ownership 100,000

Original Goal for Percentage of Community Ownership 40%

Current Percentage of Community Ownership 40%

Blended Return on All Outstanding Units 4%

* Fiscal Year End

Community Ownership

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Jacobs Center for Neighborhood Innovation (JCNI) and Diamond Management, Inc. (DMI)

As of 6/30/07*

Number of Units Held by JCNI 140,000

Number of Units Held by DMI 10,000

Current Percentage of JCNI Ownership 56%

Current Percentage of DMI Ownership 4%


Neighborhood Unity Foundation (NUF) As of 6/30/07*

Total Assets of NUF (As of 12/31/07) $768,000

Grants Distributed to Date $150,000

Original Goal for NUF Investment in Market Creek Partners $500,000

Total Amount Raised and Invested by NUF in Market Creek Partners $500,000

Total Number of NUF Units Held in Market Creek Partners 50,000

Original Goal for Percentage of Ownership 20%

Current Percentage of NUF Ownership 20%


* Fiscal Year End

Community Ownership (cont.)

a

relationships

2007 Highlights: Business Development and Employment

Business StrategyMarket Creek Plaza’s business strategy focused on harnessing the value of retail leakage and

bringing the markets to Market Creek. The strategy called for anchoring the project with national

tenants to provide stability in debt service and creating opportunities for local entrepreneurs.

Community business development focused on a mix of opportunities for entrepreneurs, existing businesses,

and new ventures. Various forms of business development are being tested, including manage-to-own

and franchise models. A plan for employee recruitment was put in place to promote local hiring.

photo / text edits to come

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aKey Milestones

Gross sales for MCP totaled $40.2 million.

Employment for MCP was stable at 193 employees.

Community employment at MCP increased 14% from 58% to 72%.

Minority employment at MCP was 88%.

The Business Team planned and piloted an open-air international marketplace in conjunction with the Market Creek Plaza Arts & Culture Fest.

Community Business Roundtable workshops were held to brainstorm ways to make Market Creek an evening destination.

Relationship marketing and promotions focused on business associations, major companies headquartered in the Diamond, chambers of commerce, and the Convention and Visitors Bureau.

BRYCO Business Park was renovated and leased, adding 27 new jobs to The Village.

Negotiations were initiated on a letter-of-intent for an anchor at Market & 47th.

Total jobs in The Village are now at 415.

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The Work in 2007During the last year, the work focused on four

primary goals: 1) bringing the markets to Market

Creek by growing the foot traffic and customer

base at The Plaza, 2) promoting Market Creek

Plaza as the heart of a cultural business district,

3) cultivating the next round of businesses for

expansion of The Village marketplace, and

4) increasing community employment at

Market Creek Plaza to 65% or better.

Key ChallengesMarket Creek Plaza’s national tenants

continue to have strong sales while the

local businesses have not been able to

generate an increase in their customer base.

They continue to rely on daytime business.

Locally-owned businesses struggle to find

the right price points and products to

attract customers from the diverse cultures

and income ranges in the community.

Securing and retaining employment

for residents remains challenging.

For entry level positions, inadequate

skills hinder candidates in interviewing

and, if hired, in maintaining employment.

For skilled positions, identifying community

candidates with appropriate training

and preparation who are seeking

employment continues to be difficult.

A shift in hiring practices at Food 4 Less,

however, did boost community employment

at Market Creek Plaza to 72% in 2007.

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Key LearningsCreating and sustaining community business

ownership involves changing local consumer

habits and attitudes, as well as breaking

regional stereotypes and perceptions.

Bringing both local and regional markets

to Market Creek Plaza requires sufficient

working capital and time to develop and

implement targeted marketing plans.

It also challenges business owners to

improve operations, test products, and

explore alternative promotions strategies.

Successful resident employment requires

a comprehensive approach connecting

business owners and managers to a network

of employment training and staffing

agencies, trade unions, community colleges,

and vocational programs. Relying on any

single source for job candidates limits the

pool of qualified people, the range of job

readiness, and effective recruitment.

Market Creek Plaza as an isolated commercial

project will struggle to thrive. The scale

of The Village is critical to its long-term

success and to securing broader social and

economic impacts. At $1 million dollars an

acre, land is difficult to acquire, but is essential

in creating business synergy and assuring

sustainability. Our ability to negotiate

community benefits with major businesses

has multiplied as the scale of The Village

as broadened. Site control over multiple

commercial corners can increase impact.

PHOTO TO COME

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Market Creek Plaza Employment 2007 2006

Number of Employers 12 12

Employers Providing Benefits 6 6

Total Jobs 193 196

Full-time Jobs 77 78

Part-time Jobs 116 118

Employees from the Southeastern San Diego Zip Codes 138 113

Minority Employees 169 169

Percentage of Community Employment 72% 58%

Percentage of Minority Employees 88% 86%

BRYCO Business Park Employment 2007 2006

Number of Employers 9 5

Number of Jobs 71 44

Market Creek Plaza Economic Activity 2007 2006

Total Economic Activity $40,200,000 $32,200,000

Percent Increase (Decrease) in Economic Activity 17.5% 40%

Key Market Creek Plaza Business Benchmarks

Economic activity at Market Creek Plaza of $402 per square foot outperformed its benchmark by 10% ($365 for retail centers of 100,000 square feet with similar tenant mix).

Food 4 Less experienced 6% growth in gross sales for 2007.

Wells Fargo Bank reported a 34% increase in deposits.

Business Development & Employment

The Village Employment 2007 2006

Goal for Jobs in The Village 800 800

Jobs on The Village at Purchase 7 7

Jobs as of 12/31/07 415 342

growth

q2007 Highlights:


Smart-Growth StrategyRestoring the vitality of this older urban neighborhood requires new ways of thinking about densities,

mixed-use zoning, environmental sustainability, public transportation, and use of community contractors.

The Village at Market Creek is part of a growing conversation in San Diego about smart growth and

regional equity. The orientation of The Village around public transit, coupled with the restoration of Chollas

Creek as an environmental amenity, provide the backbone of The Village’s smart-growth strategy.

As a “City of Villages” pilot project for the City of San Diego, The Village at Market Creek will bring new land-use

zoning to the Diamond that will encourage mixed-use site planning, more walking paths, and increased densities.

Planned on the theory that smaller footprints create more space for amenities, The Village at Market Creek is also

challenging the community to plan for long-term sustainability, build for local ownership, and invest upfront for

future cost savings and energy efficiency. Planning teams are challenged to recycle in every sense of the word.

Most important is recycling benefits to local residents through jobs, contracts, ownership, and business strategies.

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The Work in 2007During the last year, the work focused on six primary

goals: 1) completing the next round of development

planning, including the general plan amendment and

entitlements for The Village working with the City and

the redevelopment agency, 2) advancing construction

of the new Joe & Vi Jacobs Center, achieving at

least 65% participation from HUBE contractors,

3) completing renovation of an old industrial property

into a light industrial business park, 4) setting up a park

as a temporary use on a site not due for development

for three years, 5) completing restoration on

the Chollas Creek Encanto Tributary and expanding

the capacity of a local contractor in the area of

wetlands recovery work, and 6) expanding the scale

of The Village for greater social and economic impact.

Key ChallengesThe development of a mixed-use, transit-oriented

village requires the complete alignment of

financing tools, market interest, zoning, and

entitlements. The zone to facilitate mixed-use,

high-density development doesn’t currently

exist in San Diego’s southeastern neighborhoods.

To secure New Markets Tax Credit financing,

projects must have a minimum of 20%

commercial use if they also include rental

housing. Portions of The Village plan that call

for higher density homeownership or mixed-

use rental housing require this new zone.

Adding to the challenge, it is difficult to secure

a large commercial anchor for a mixed-use

development in the current San Diego market.

The community contracting program requires close

supervision, supportive coaching, and constant

monitoring once the contract is bid, adding to

the cost and timeline of a construction project.

Key MilestonesThe next round of development planning was completed, resulting in new site plans for The Village with updated proformas and development timelines.

The redevelopment agency continued to move the general plan amendment and entitlements through the City of San Diego Planning Department on behalf of The Village; completion is anticipated in 2008.

A 20-acre industrial brownfield has been put back into productive use.

Fossil filter storm drainage systems have been put into operation at Market Creek Plaza.

An additional 10 acres was targeted for acquisition with four of the eight properties closed or in escrow.

Four deteriorated or mold-infested apartment complexes were removed or are ready for removal; all housing will be replaced.

Over 2,250 linear feet of wetlands have been restored.

A community contractor led the Chollas Creek Encanto Tributary Restoration Project, having grown its capacity for specialized wetlands recovery work.

In the Joe & Vi Jacobs Center, alternative building materials were used in framing and roofing, recycled and non-toxic materials were used throughout, and the backbone for solar energy was installed.

On the Joe & Vi Jacobs Center, over 74% of the contracts went to historically under-utilized business enterprises or HUBE contractors, unprecedented on three-story steel construction.

The renovation of the industrial building on Market Street, known as the BRYCO Business Park, surpassed its goal of 65% participation of minority and women

contractors; 70% of the building is now leased.

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Key LearningsA negotiated best-value bid process

— weighted half on the dollar bid and

qualifications and half on community

capacity building — has worked effectively

for the Construction Working Team in

negotiating community benefits and

assisting minority and women-owned

businesses in securing contracts.

For contractors outside the community,

there has been an openness and willingness

to participate in the community benefits

program, including mentoring and joint

venturing as a way to give back.

Building “smart” is aided by building to

own rather than building to sell. Putting

together a project that reflects a community’s

vision and can thrive over the 30-year term

of its debt service requires planning for

long-term sustainability rather than short-

term profitability. The care given to how a

project is planned, the quality of products

selected, the efficiency with which it will

function, the vibrancy and beauty of the built

environment in relationship to the community

around it, and the project’s sustainability

over time — these conversations are at

the forefront when there is a commitment

to long-term community ownership.

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Community Contracting As of 12/31/07

Chollas Creek Restoration Project - Completed in 2001 Value of Contracts Value of Contracts to Minority- or Women-Owned Businesses Percentage of Minority- or Women-Owned Contractors

$2,400,000

1,000,00042%

Elementary Institute of Science - Completed in 2003 Value of Contracts Value of Contracts to Minority- or Women-Owned Businesses Percentage of Minority- or Women-Owned Contractors

$5,400,000$4,500,000

83%

Market Creek Plaza - Completed in 2004 Value of Contracts Value of Contracts to Minority- or Women-Owned Businesses Percentage of Minority- or Women-Owned Contractors

$10,000,000

$7,868,00079%

BRYCO Business Park - Completed in 2007 Value of Contracts Value of Contracts to Minority- or Women-Owned Businesses Percentage of Minority- or Women-Owned Contractors

$346,000$235,000

68%

Chollas Creek Encanto Tributary Restoration Project - 80% Complete Value of Contracts Value of Contracts to Minority- or Women-Owned Businesses Percentage of Minority- or Women-Owned Contractors

$1,700,000 $1,700,000

100%

Joe & Vi Jacobs Center - 80% Complete Value of Contracts Value of Contracts to Minority- or Women-Owned Businesses Percentage of Minority- or Women-Owned Contractors

$16,400,000 $12,100,000

74%

Total Village Value of Contracts Contracts to Minority- or Women-Owned Businesses Percentage of Minority- or Women-Owned Contractors

$36,184,000 $27,378,000

76%

Smart Growth As of 12/31/07

Acres of Blight Removed 32

Wetlands Recovery - Linear Feet of Creek Restoration 2,250

Village Jobs Contiguous to Transit 415

Public Transportation Available Trolley Station Major Bus Transfer

New Village Dwellings Contiguous to Transit Goal In Planning

80042

Annual Increase(Decrease) Public Transit Ridership (Bus and Trolley) 11%

Ten-Year Increase (Decrease) in Trolley Ridership 63%

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sustainability

2007 Highlights: Community Building

Community Building StrategyMarket Creek is both a means and an end. It is an anchor project for reinvigorating an urban marketplace,

and it provides a purpose for promoting joint action and heightening expectations for change. Market

Creek creates opportunities for people to reach out to their neighbors and embrace common experiences.

Unlike traditional leadership training, it is about creating forums for people to engage each other, work

across differences, and become a community bound by shared vision and accountability. This work is

based on the assumption that all people can and must lead. Everyone is asked to bring their gifts to the

table and are given active roles. This builds talent, relationships, and networks. Resident teams bring

new voices to the table while honoring the work that has been completed. These social networks and

the larger community’s commitment to change are the foundation for long-term sustainability.

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The Work in 2007The work in the past year focused on four primary

goals: 1) strengthening the social networks

needed to create and support The Village,

2) advancing the vision of the cultural village

and the commitment of stakeholders to its

development, 3) strengthening Market Creek

Plaza as a cultural gathering place and connecting

residents to the Joe & Vi Jacobs Center as a

central community resource, and 4) developing

and coordinating platforms for collaboration

and strategic joint action among residents.

Key ChallengesIt is clear that the development of

The Village requires multiple collaborations

and partnerships to address the inter-

connected set of issues and challenges

within the community. As these collaborative

agendas proliferate, connecting and

communicating the work with the broader

community becomes more challenging.

Smaller teams need help connecting their

work to that of other teams. The teams

are asking for more time to share.

Taking cross-cultural organizing to scale

is demanding. Each group offers unique gifts

and talents and poses distinct challenges

in organizing. As we’ve gone deeper into

the organizing work, we have found an

increasing number of cultural groups

interested in getting involved. We are

grappling with how this infrastructure

for cross-cultural organizing might

be sustained over time.

Key MilestonesLarge “mix and match” forums for resident feedback were launched to inform the work, while smaller Village Teams implemented the work.

Teams orchestrated an Arts and Culture Fest as the signature event for Market Creek Plaza; it incorporated an open-air international marketplace, showcased major community talent, and drew over 3,000 people from the region.

Teams moved toward a more comprehensive arts strategy with a growing number of partnerships; teams decided to hold one cultural event each month at Market Creek Plaza.

Residents began working with community organizations, the San Diego Commission on Gang Prevention and Intervention, the City Council office, and San Diego Neighborhood Funders to develop of a comprehensive Safe Neighborhoods Area Project (SNAP).

Youth at the Teen Center expanded youth-adult partnering through “Friends of the Teen Center,” collaborated with the Coalition of Neighborhood Councils to address issues affecting youth, and formed a partnership with Phi Beta Sigma fraternity to provide tutoring services to youth at the Center.

The Childcare Team formed a Family Enhancement Office to expand resources for families; the team collaborated with Grandparents Connection and worked with parents and childcare providers to organize Family Day in the Diamond.

Writerz Blok, the youth urban art project, collaborated with Morse High School and the San Diego City Schools Police on mural classes .

The International Outreach Team organized in and across cultures, assisted working teams in expanding their cross-cultural representation, provided translation for meetings

and materials, and helped groups connect more effectively.

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Key Learnings Stronger, more comprehensive strategies are

developed when teams bring their issues to a

larger group for discussion. Seeing the work

from multiple perspectives expands

the creativity and break-through thinking.

Cross-team efforts deepen the sense

of commitment to and responsibility for

the success of each others’ work. A stronger

collaborative process results as teams

assist one another in program design.

This dynamic also helps residents stay

informed about the work taking place.

Arts and culture is becoming a visible

and invaluable organizing strategy for

The Village. People are excited about

the cultural aspects of the vision, and a

growing number of cultural communities

want to participate, learn, partner,

and celebrate their cultures within

The Village framework. The emphasis

on arts and culture is becoming a vital

bridge between the various cultures

within the community and the region.

Village Teams 2007Amphitheater TeamArts and Culture TeamBusiness and Leasing TeamChildcare Providers Support GroupChildcare Working TeamCommunity CoordinatorsConstruction Working TeamCoalition of Neighborhood Councils

Euclid-Market Action TeamCultural Training Kitchen TeamDiamond Community Investors Advisory CouncilDCI Education Activities TeamDCI Business Promotion TeamDCI MCP Operating Agreement TeamDCI Reinvestment Task ForceDCI Social and Economic Impact Indicators TeamFriends of the Teen CenterHousing Listening TeamHousing Applicant TeamInternational Outreach TeamJoe & Vi Jacobs Center Design TeamJVJC Exterior Landscape Planning TeamNeighborhood Unity Foundation Advisory CouncilNUF Grants TeamNUF Power in Caring TeamNUF Resource Development TeamParent Support GroupSafe Neighborhoods Area Project TeamSpirit of the Diamond Grants TeamSurvey TeamVillage Schools Principals CollaborativeWriterz Blok Mural TeamYouth Advisory Board

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Civic Participation/Resident Voice 2007

Estimated Number of Residents Who Participated in Community Listening (Formal Surveys and Focus Groups)

1,582

Estimated Number of Residents Involved in Design and Planning Teams 115

Number of Active Implementation Teams 32

Estimated Number of Residents Involved in Implementation Teams

402

Village Center Meeting Participation 550

Arts and Culture 2007

Number of Community Artists Involved 26

Public Art Projects Implemented 13

Number of Youth Participating in Public Art Projects 233

Number of Amphitheater Events 27

Community Activities and Events 2007

Estimated Attendance at Community Activities and Events May include same individuals at multiple events

31,298

Community Building

Permanent Art Installation at Market Creek Plaza 2007

Number of Public Art Projects at MCP 6

Cost of Public Art at MCP $572,500

Percentage of Art to Overall Construction Costs 2%

The Village Centers of Excellence 2007

Childcare Enhancement Center Trainings Held Providers Trained Parents Trained

15

296 120

Elementary Institute of Science Youth Served Youth Commissioners Endowment Campaign Goal Percentage of Campaign Complete

703

37 $2,000,000

34%

Writerz Blok Job Contracts Value of Contracts Youth Trained Attendance at Writerz Blok Events

55

$15,00050

3,700

Tha’ SET (The Southeastern Teen Center) Active Youth Participants Attendance at Teen Center Events

55-65

500

q2007 Highlights: Commitment to Shared Learning

Learning StrategyThe Village at Market Creek is built on the belief that for change to be sustaining, people need to own their

own change. The theory behind Market Creek is simple: create learning relationships, stay long enough to

break through mistrust, stimulate a can-do spirit, and learn by doing together. Market Creek is rooted in deep

respect for the hands on application of learning. Everyone has to “own” what they know and don’t know.

Talk about where they are stuck. Address what is working and not working. Test the theory in practice.

Market Creek is also rooted in a spirit of service and shared responsibility. Success depends on everyone

learning and changing. The differences each person brings to the table helps the team eliminate blind spots.

Spontaneous dialogue is welcomed and encouraged. What people don’t know is as valued as what they do. We have

learned that the inexperienced person at the table may be the one to see why something isn’t working or may be

the one to shatter an assumption that keeps a project from succeeding. There are no stupid questions or ideas.

Active learning agendas, ongoing reflective practice, and a commitment to sharing provide

a framework for documenting learnings and helping us improve our performance.

learning 40

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The Work in 2007In 2007, there were seven primary goals for

learning and sharing: 1) continue to host learning

exchanges with other communities and other

foundations working in neighborhood revitalization,

2) encourage residents on the working teams

to participate as host team members and trainers,

3) complete the formal evaluation of the Community

Development IPO, 4) support residents in

completing the Five-Year Quality of Life Survey

report, 5) link groups inside and outside the

neighborhoods around joint learning agendas,

6) begin to formalize a “learning institute”

at Market Creek to synthesize the principles,

practices, and learnings from resident-led

revitalization work, and 7) document

the learnings to share with the field.

Key ChallengeThe dilemma for others wanting to “replicate”

Market Creek is that the work is guided by

residents in a process of shared decision

making. Resident involvement is guaranteed

to lead to unique results in each community.

We are continuing to explore effective ways to

share our organizational culture and process

without overwhelming visitors navigating the

complexity of change on such a large scale.

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Key Milestones53 site visits and learning exchanges with foundations, community development practitioners, investors, and government agencies were hosted, involving nearly 500 visitors from 18 states and 11 countries.

Over 160 people from the Village working teams participated in learning exchanges as trainers, presenters, and discussion group leaders.

The IPO Evaluation Investor Survey and initial analysis were completed.

Residents on the survey team completed the Five-Year Quality of Life Survey report.

With the support of The Legler Benbough Foundation, the Arts and Culture Team linked with various Balboa Park museums on joint learning agendas.

Articles on Market Creek Plaza appeared in the Stanford Innovation Review and Wall Street Journal.

The Council on Foundations’ inaugural Critical Impact Award was awarded to the Jacobs Family Foundation for its role in the development of Market Creek Plaza.

Market Creek Plaza was a finalist for the 2007 Urban Land Institute Award for Excellence.

Seventeen funders joined San Diego Neighborhood Funders (SDNF) around a common learning agenda; topics focused on local schools, gang prevention and intervention, Earned Income Tax Credit programs, and the vision of The Village.

SDNF invested over $1 million in collaborative support for projects that advance The Village pilot projects.

Market Creek served as a learning site for Leadership California, the Annie E. Casey Foundation Fellows Program, and the Jane Fellows from the Russell Family Foundation.

Written and media documentation of team strategies, practices and principles, and key learnings continued.

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Key Learnings In community revitalization, as in all work,

training to a task is the most effective and

relevant way to accelerate a learning process.

To achieve scale and sustainability, local

communities need regional and national

partners who are interested in the broader

application of learning. While this is time

intensive, it has become an important tool

for residents to see themselves as leaders

and teachers. This facilitates, rather than

slows, the work of the local teams. It is

important to see sharing as central to our

mission and not a side responsibility.

Site visits and learning exchanges give our

teams the chance to step out of the day-

to-day challenges of the work and reflect

“The work is so impressive because it brings

together the rare alignment of values, voices,

and vital resources. It does so with an

entrepreneurial spirit fueled by two views of

time – at once urgent and patient.”

— Richard Woo

Russell Family Foundatiion

on all that has been learned. These forums

provide rich opportunities for understanding

the work in the context of the larger field

of neighborhood revitalization and help

residents experience a deep sense of pride

in accomplishment.

Feedback feeds the spirit and is often the

gift that helps us pick ourselves up, dust

off, and keep on moving – with the urgency

that time places on us and the patience

that the human experience asks of us.

43

What We Have Learned Together in Ten Years

Build RelationshipsStart with residents if you want

ownership rather than participation.

Work with residents as neighbors.

Earn trust by working together over time.

Surround every problem and

opportunity with a team.

Do with and not for.

Listen to All VoicesMake it comfortable for all people to get

involved (language, location, process).

Listen broadly as way of doing business.

Give up preconceived ideas about

how problems should be solved.

Encourage and embrace differences.

Look for the both/and not the either/or.

Build OwnershipFor change to be sustaining, people

must own their own change.

Owning the plans = vision and hope.

Owning the implementation = capacity

and skills.

Owning the assets = power to

leverage future change.

Partner BroadlyLead with residents.

Develop a broad partnership strategy

that includes residents, businesses, non-

profits, funders, and public agencies.

Make sure all partners

are in alignment

with the strategy

residents have

developed.

Build a committed

and connected

set of stakeholders over time.

For change to be

sustaining, people must

own their own change.

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Organize ComprehensivelyWork in inter-disciplinary teams across

the social, economic, and physical,

development of the neighborhood.

Integrate grantmaking, organizing,

training and development.

Let no corporate structure be a barrier.

Think long-TermSeed the capacity of groups to carry out

and carry on the work.

Use community capacity to benchmark plans.

Set timelines that give people a chance

to practice, adapt, and try again.

Be clear about exit strategies.

Take Risks

Nurture creativity and risk-taking as

important ingredients in community change.

Organize for fast and flexible decision making

with systems of shared accountability.

Be clear about the outcome you seek,

but be willing to change the process.

Risk change in yourself and in your

organization as an example for others.

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Shared Learning 2007

Site Visits and Learning Exchanges Hosted 53

Number of Visitors Participating in Site Visits and Learning Exchanges 495

Working Team Participants in Learning ExchangesAs trainers, presenters, and discussion group leaders

160

States and Districts Represented in Learning Exchanges 18 Alaska Maryland Arkansas Michigan Arizona Minnesota California New York Colorado Ohio Connecticut Oklahoma Georgia Pennsylvania Illinois Virginia Massachusettes Washington DC

Countries and Territories Represented in Learning Exchanges 11 Angola Kazakhstan Australia Namibia England New Zealand Gaza United States Ireland Venezuela Italy

Learning Agenda

Conclusion: Moving into The Village — What’s Ahead for 2008

stakeholders 46

47

If we were hosting the Olympics, we would

need to engage many countries, support

them in training athletes, have a strong team

of sponsors, and recruit a well-run organizing

committee. While the sponsors and organizing

committee worked to stage the event, each

country would build its best possible team.

We have developed an integrated network of

stakeholders to build a world Village. Some, like

the International Outreach Team, serve on the

organizing committee. Others, like Writerz Blok,

the Elementary Institute of Science, the Teen

Center, and the Market Creek Plaza Merchants,

are recruiting and training their teams. Still others,

such as the San Diego

Neighborhood Funders

and The Village investors,

are key sponsors. All of

these stakeholders must

connect and coordinate

for The Village to

come to fruition.

We have learned over the years that moving to

a new place requires preparation and planning.

It is unsettling and stressful. Things don’t always

go according to plan. Once you have arrived in

the new place, it takes time to re-establish order.

For many, The Village at Market Creek is still a

foreign destination. It is big and complex. But in

2007, Market Creek’s working teams began full

preparation and planning for the “move into

The Village.” The conversation shifted from

Market Creek Plaza as a project to Market

Creek as a large-scale, live-work-play learning

community. It is our new destination.

We have developed an

integrated network of

stakeholders to build

a world village.

In the coming year, we will

continue our work in building

the social and financial

networks needed to raise

The Village. Investors,

residents, financial

institutions, the City of

San Diego, the redevelopment

agency, neighborhood

funders, school principals,

gang prevention advocates, and businesses —

all convening around a common agenda.

Building buildings as a way of building

bridges. Finding value and meaning

by working together. Reviving hope.

Rekindling the belief that all is possible.

We have learned over the last ten years that

independent action around isolated issues can

not get at the underlying conditions that need

to be changed. We need to see across issues

and build an understanding of the neighborhood

from the outside in and the inside out. Find

the connecting points. Start and stay together.

Move to a new place. Become a community.

In 2008, the new Joe & Vi Jacobs Center will

open as the central resource of The Village

and serve as a symbol of the rejuvenation of

the once-disinvested Diamond. At that time,

JCNI will coordinate a major move from its

home of the last 10 years on Federal Boulevard

to the Joe and Vi Jacobs Center at the heart

of The Village. We expect it to be somewhat

stressful and overwhelming. Like any move,

it will take time to re-establish order.

That is our work.

We need to see across

issues and build an

understanding of the

neighborhood from

the outside in and

the inside out.

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Village Investors Organizations providing program-related investments, working lines, and New Markets Tax Credit investments in Village Projects

The Annie E. Casey FoundationCalifornia Southern Small Business Development CorporationClearinghouse Community Development Financial InstitutionDiamond Community InvestorsDiamond Management, Inc.Evelyn & Walter Haas, Jr. FundThe F.B. Heron FoundationJacobs Center for Neighborhood InnovationJacobs Family FoundationThe Legler Benbough FoundationNeighborhood Unity FoundationPacific Western BankThe Rockefeller FoundationSoutheastern Economic Development CorporationUS BankWashington Mutual BankWells Fargo & Company

San Diego Neighborhood FundersOrganizations supporting grassroots and collaborative grants for Village projects and resident-led pilot programs

Alliance Healthcare FoundationAlice T. and Douglas B. DiamondThe Annie E. Casey FoundationBank of AmericaThe California EndowmentCalifornia Southern Small Business Development CorporationCox CommunicationsGirard FoundationJacobs Center for Neighborhood InnovationJacobs Family FoundationKaiser PermanenteThe Legler Benbough FoundationNeighborhood Unity FoundationThe Parker FoundationPatricia and Christopher Weil Family FoundationSan Diego Foundation for ChangeSan Diego GrantmakersSan Diego National BankWells Fargo Bank

The Village at Market CreekInvestment Advisory Board

EngageBring residents and investors together to connect and communicate about the work.

LearnShare the lessons and impact of Market Creek Plaza and The Village at

Market Creek, and discuss other double-bottom line projects.

Report

Report on investment in Market Creek Plaza and The Village at Market

Creek from both social and economic perspectives.

Social and Economic Impact Report 2007

Documents

Transcript of Social and Economic Impact Report 2007