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Congratulations, May Day Cafe Workers Cooperative!

Fred

On Feb. 7, May Day Cafe reopened as a worker-cooperative with the help of Nexus Community Partners and Platform CRE!

With five worker-owners, the May Day Cafe Workers Cooperative is Minneapolis’ newest worker co-op. The new owners are excited to welcome you back into this beloved and longstanding neighborhood establishment with a new vision of intentionally deepening the space as a community resource. You will see lots of familiar faces, as most of the employees have stayed on and are on their way to becoming worker-owners. While sustaining a commitment to affordability and the bakery staples that regulars have come to know and love, over time you will also see some new menu items and fresh ideas.

“The last 12 months of work to make this cooperative transition have been exhausting, but an experience that I feel profoundly grateful for and changed by,” said Mira Klein, a worker-owner and barista entering her third year at the Cafe. “I have so much appreciation for being part of creating something that felt like a real community effort. There has been so much in this process that was totally new to me, and having the support of Nexus and Platform at our backs was essential to seeing this dream come to life.”

The deal was made possible by a set of public programs aimed at helping small businesses buy their real estate and become employee-owned. The Cooperative was also supported by over $100,000 in donations from more than 800 community members. The loan was funded by our partners at the Metropolitan Consortium of Community Developers (MCCD), Shared Capital, and the City of Minneapolis. In addition to Nexus Community Partners, the Cafe also received technical assistance from Platform CRE and Next Stage.

Erin Heelan, Co-founder of Platform CRE, said, “Selling your business or real estate to your workers or tenants is an excellent way to get a fair price for what you have built AND to ensure it continues to be an asset for the community. Small businesses like May Day are crucial to the local economy and the well-being of our communities. There has been an overwhelming amount of community support for the workers to buy the business and keep May Day Cafe open. Platform represented the workers to purchase the real estate. Nexus was instrumental in ensuring the workers were prepared for the acquisition by providing cooperative governance and small business Technical Assistance.”

Employee-owned businesses, such as co-ops, have been shown to create a 92% increase in household net worth, a 33% higher hourly wage, and 53% longer job tenure (NCEO 2018). Real estate co-ops have been shown to revitalize commercial corridors by offering stable and affordable properties to businesses while giving community members a voice in development decisions and a share of the profits.

Patty Viafara, Director of the Worker Ownership Initiative at Nexus, said, “We are so excited for the new owners as they take ownership of their labor. This deal is a great example of what can be achieved when we work together for the benefit of our community.”

Worker-owners Sunny and Mira stand, smiling, outside of May Day Cafe on signing day.
Sunny and Mira, center, smile with the team who helped make the new worker-ownership possible. On either side of Sunny and Mira stand Christina Nicholson and Diana Siegel-Garcia from the Shared Ownership Center @ Nexus.

About May Day Cafe Workers Cooperative
The May Day Cafe Workers Cooperative was founded in June 2024, and officially bought the business and building in January 2025. Their mission is to be a home for dignified and meaningful labor, affordable food, and community connection in the heart of the Powderhorn neighborhood. Visit mayday@maydaycafe.coop for more information.

About the Shared Ownership Center @ Nexus
Since 2019, the Shared Ownership Center at Nexus, (formerly the Worker Ownership Initiative), has worked with over 50 companies to explore models of shared ownership and supported the development of eight cooperatives across the Twin Cities. From assessing fit and feasibility to becoming cooperatively owned and operated, the Shared Ownership Center at Nexus brings expertise and an equity lens to all steps of cooperative development.

About Platform CRE, SBC
Platform CRE is a Social Benefit Commercial Real Estate Brokerage and Development Consulting Firm based in Saint Paul, MN. Platform represents small businesses and nonprofits in commercial estate transactions.

Nexus Community Partners and YWCA St. Paul are proud to announce a new home for the Neighborhood Leadership Program (NLP)!

For nearly three decades, the Neighborhood Leadership Program has provided a space for people to build their own leadership, nurture the leadership of others, increase their sense of purpose, and practice taking values-based action in their communities. NLP was housed at Amherst H. Wilder until 2021 when it found a new home at Nexus Community Partners, where its tradition of supporting and strengthening leaders continued and grew.

Nexus is excited to transition NLP to YWCA St. Paul because of their deep commitment to community and their mission to eliminate racism, empower women, and promote peace, justice, freedom, and dignity for all. YWCA St. Paul will honor the program’s legacy and will remain steadfast on building strong, resilient communities by equipping local leaders with the skills, resources, and support they need to drive meaningful change.

By combining their expertise in health equity, racial justice, and women’s empowerment with the robust foundation of NLP, YWCA St. Paul will amplify their collective impact. Here are some of the ways that YWCA St. Paul plans to integrate NLP into its current suite of initiatives:

  • Strengthening Community-Led Initiatives: The integration of NLP will allow both organizations to support community-led initiatives more effectively. By providing resources, mentorship, and technical assistance to emerging leaders, we will empower them to champion initiatives that drive systemic change in their own neighborhoods. This community-centric approach ensures that policy solutions are grounded in the lived experiences of those most affected by inequities.
  • Integrating Leadership Development with Advocacy Training: In addition to learning the core principles of leadership and collective impact, participants will gain a deep understanding of the policymaking process, learn effective advocacy strategies, and develop the skills needed to influence legislative and regulatory changes. This training will empower community leaders to become formidable advocates for systemic change.
  • Amplifying BIPOC Voices in Public Policy Advocacy: The Neighborhood Leadership Program has a rich history of nurturing diverse leaders who are deeply connected to their communities. By incorporating NLP into YWCA St. Paul, we will harness the collective power of these leaders to amplify their voices in the policy space — supporting them as they advocate for policies that address the root causes of inequities, particularly those affecting women and people of color.
  • Building a Robust Leadership Network: The integration of Nexus’ Neighborhood Leadership Program (NLP) with Young Women’s Initiative (a program offered in collaboration with the Women’s Foundation of Minnesota and the Governor’s Office) presents a unique opportunity to offer shared learning and engagement opportunities, cultivate meaningful community connections, and foster intergenerational transformative leadership.
  • Elevating Health Equity in Leadership and Policy Discussions: Health equity is a cornerstone of YWCA St. Paul’s mission. With NLP’s integration, we will place a greater emphasis on advocating for health policies and implementing initiatives that promote equitable access to care, address social determinants of health, and eliminate health disparities.
  • Economic Development & Social Entrepreneurship: Aligning with YWCA St. Paul’s commitment to creating sustainable, community-driven social enterprises that address systemic inequities, NLP’s comprehensive leadership development program will be enhanced with modules specifically designed to address economic development. Participants will learn about economic strategies, financial literacy, and community wealth-building, equipping them with the knowledge to drive economic initiatives in their communities while implementing innovative solutions to social issues.

YWCA St. Paul and Nexus Community Partners share a commitment to working toward a future where all people can explore and express the depths of who they are and to providing opportunities to lead the change we want to see. NLP will continue to nurture communities of leaders who will drive persistent and dynamic systemic change for years to come.

For information about the Neighborhood Leadership Program, please contact: Maricruz Lozano Rios; mlozanorios@ywcastpaul.org.

In community,

Ashley Booker, CEO, YWCA St. Paul

Repa Mekha, President & CEO, Nexus Community Partners

Six out of ten Minnesota business owners plan to sell in the next decade

Minnesota —Today, the Minnesota Center for Employee Ownership (MNCEO) released new data that reveals twin crises from the Silver Tsunami coupled with COVID-19 for businesses across Minnesota. Developed by Project Equity, the study shows that approximately 50% of all job-creating businesses in Minnesota (53,000) are owned by baby boomers. It is estimated that 60% of these businesses plan to transfer ownership in the next decade and COVID-19 has accelerated this timeline for many. The study results are presented on a county by county basis at mnceo.org/employee-ownership-101#crises.

Affecting approximately 600,000 Minnesota employees and with nearly $124 billion in generated revenue at stake, the Minnesota Center for Employee Ownership, Project Equity and Twin Cities-based Nexus Community Partners are joining together in an effort to greatly expand the number of employee owned businesses in the state to stem the tide of the Silver Tsunami and the fall out from COVID-19.  MNCEO aims to engage community leaders and state and local government officials about employee ownership as a way to preserve these at-risk businesses, provide local quality jobs, strengthen the community’s economic resiliency, and create equity and wealth for all employees regardless of their race, ethnicity or education.

“The timing is crucial to educate business owners across Minnesota and to provide resources to help them navigate their options,” said Sue Crockett, Executive Director of the MNCEO, a nonprofit that serves as the central hub for information on employee ownership in Minnesota. “Each year, Minnesota ranks in the top ten in the number of employee-owned companies across the country. We’re on a mission to continue the momentum by turning the entire state of Minnesota into a place where every working person can also be an employee-owner.”

Roger Ryberg, former owner of Windings, Inc. in New Ulm, Minnesota, identified employee ownership as a pathway to retirement by choosing an ESOP (Employee Stock Ownership Plan) model. His daughters were not interested in assuming management responsibility in the 100-person manufacturing company, and he did not want to walk away. Employee ownership allowed him to sell the business on his own timeline, preserve jobs and keep the company rooted in the community.

“Transitioning a business you have grown from scratch is not only a financial transaction, but an emotional experience. Employee ownership kept my company anchored in New Ulm, retained valued employees, and provided opportunity for growth, not to mention the financial benefits the employees have gained over the years,” states Roger Ryberg. Due to the strong culture of employee ownership, Windings, Inc. was better able to weather the COVID-19 economic downturn.

“What businesses are experiencing in Minnesota is reflected across the country. As half of all business owners near retirement age, most do not have an exit strategy for what will happen to their business and employees once they retire. Employee ownership creates a roadmap for resiliency,” stated Alison Lingane, co-founder of Project Equity.

“This moment is an opportunity to grow and perpetuate community wealth by teaming up with government and community leaders to expand opportunities for business ownership,” said Benjamin Tsai, Director of Community Wealth Building at Nexus Community Partners, a nonprofit that helps businesses transition to employee ownership, with an expertise in worker-owned cooperatives.

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Minnesota Center for Employee Ownership

The Minnesota Employee Ownership Center (MNCEO), a member of the Employee Ownership Expansion Network of state centers,  serves the entire state of Minnesota as the central hub for free, unbiased information on employee-ownership. Its primary mission is to educate business owners and their advisors on the benefits of employee ownership. MNCEO provides resources, case studies, articles, and a list of service providers who can assist with employee ownership transitions.

Project Equity

Project Equity is a national leader in the movement to harness employee ownership to maintain thriving local business communities, honor selling owners’ legacies and address income and wealth inequality. Project Equity works with partners around the country to raise awareness about employee ownership as an exit strategy for business owners, and provides hands-on consulting and support to companies that want to transition to employee ownership.

Nexus Community Partners

Nexus Community Partners, based in the Twin Cities, works to build a more inclusive economy for communities of color. The Nexus Worker Ownership Initiative helps business owners with succession planning and specializes in exploring the benefits of incorporating employee ownership into their transition plans.

For Immediate Release

Contact:
Sue Crockett
Mobile: 612-590-1191
Email: scrockett@mnceo.org

FOR IMMEDIATE RELEASE
January 9, 2020

Contacts: Theresa Gardella
Vice President of Programs and Operations Nexus Community Partners tgardella@nexuscp.org

Erin Jerabek Heelan
Consultant, WOI Nexus Community Partners erin@erinhconsulting.com

New Year Brings Employee Ownership to Happy Earth Cleaning

Happy Earth Cleaning LLC is the first employee-owned cleaning company in Minneapolis

The new year began at Happy Earth Cleaning with employee ownership. Marion and Jesse Dunbar, founders of Happy Earth Cleaning, completed the sale of the business to their employees on December 30, 2019, and new ownership took effect on January 1, 2020. Five staff members became employee-owners with a plan for additional owners over time.

In 2010, Marion founded Happy Earth Cleaning LLC in Minneapolis, MN, with a mission of providing environmentally-safe cleaning with a people-first culture. In the beginning, Marion was the only staff member: she did all the cleaning, management and client cultivation. In 2013, her husband Jesse joined the business. Today, Happy Earth Cleaning has 19 employees, and they pride themselves on their culture and community impact. This includes participating in community events, offering full-time employment to their staff, and now employee ownership.

In 2018, Marion and Jesse needed to create a succession plan for the business because they decided to move back to their hometown of Seattle, Washington. They valued the unique “people first” culture that they had built in an industry that has been known to exploit its workers, and employee ownership was something Marion had always envisioned for the business.

Additionally, they didn’t want a new owner to dismantle their culture or take their customer list and lay off their employees. These aspirations and concerns fueled a desire to explore employee ownership as part of their succession planning.

In search of answers, Marion, Jesse, and a core group of employees took a nine-week course through the City of Minneapolis Co-op Technical Assistance Program (CTAP). The course helped them understand co-op development and solidified their choice that transitioning to employee ownership was the right choice for the business.

To help with the business transition, Happy Earth Cleaning connected with Nexus Community Partners and Project Equity. “We worked with Nexus and Project Equity to sell to our employees because they provided us with the knowledge, expertise and guidance to ensure our team was set up for success after our departure,” Marion said. “It gave us the confidence to know we are doing the right thing for the employees and ourselves.” In addition to the help from

Nexus Community Partners and Project Equity, the new owners received finance and business plan training from Neighborhood Development Center, and the sale was financed locally through Shared Capital Cooperative.

Nexus and Project Equity formed a partnership to respond to the changing business landscape in the Twin Cities region. A Project Equity data analysis shows that in the Twin Cities Metro alone, an estimated 26,180 businesses are owned by baby boomers. Over 80% of the owners have no succession plans. The partners believe employee ownership provides a solution that keeps businesses and jobs rooted locally. For Nexus, employee ownership is part of a larger initiative that seeks to build community wealth. “The model is not only good for business, it’s good for workers and good for our communities,” said Elena Gaarder, Director of Community Wealth Building at Nexus. Marion and Jesse do not fit the “baby boomer” profile that this initiative was originally created to target, yet, they are part of a growing number of entrepreneurs that are environmentally and/or socially-minded who want to leave a legacy when they choose to exit their business.

Ten years after its conception, the Happy Earth Cleaning team has made history by becoming the first employee-owned cleaning company in Minneapolis. They credit their philosophy and culture with the reason they have been able to retain employees and build a strong client base. Through their efforts, they’ve shown how employee-owned initiatives can lead to a happy team. It’s a new year for employees at Happy Earth Cleaning as they celebrate employee ownership. Zach Dennis, Happy Earth’s Dispatcher, has been serving on the cooperative development team with four of his colleagues. He shared, “I think employee ownership is a valuable opportunity to have a democratically controlled workplace allowing for worker control over growth, wages and benefits that directly affect employees.”

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Happy Earth Cleaning Employee Ownership Case study

About Happy Earth Cleaning: Happy Earth is “A People Company that Cleans.” Their business philosophy recognizes the intersectionality between a happy planet, happy community, and happy people – employees and customers. Happy Earth stays true to this philosophy by using environmentally friendly products, participating in community events, and offering full-time employment to their staff. They credit their philosophy and culture with the reason they have been able to retain employees and build a strong client base.

Read the case study.

Facebook @HappyEarthCleaning Twitter: @HappyEarthClean Instagram: @happyearthcleaning

About Nexus Community Partners: Nexus is a community building intermediary that works at the intersection of philanthropy, government, community development and community leaders. The organization builds strong, equitable and just communities in which all residents are engaged, are recognized as leaders and have pathways to ownership opportunities. Nexus supports efforts that build strong, local economies and provides services to business owners and their employees to transition to worker cooperatives.

About Project Equity: Project Equity is a national leader in the movement to harness employee ownership to maintain thriving local business communities, honor selling business owners’ legacies, and address income and wealth inequality. Headquartered in the San Francisco Bay Area, Project Equity works locally and with partners around the country to raise awareness about employee ownership as an exit strategy for business owners, and as an important approach for increasing employee engagement and wellbeing. A nonprofit organization, Project Equity provides hands on consulting and support to companies that want to transition to employee ownership, as well as to the new employee-owners to ensure that they, and their businesses, thrive after the transition. Read more at www.project-equity.org.