2025-06-02T14:27:28-05:00 2024-12-31 410746749 CLIFTONLARSONALLEN LLP 220 S 6TH STREET SUITE 300 MINNEAPOLIS MN 55402 990 2024-01-01 364661878 MODEL CITIES PROPERTIES MODE 6516328350 839 UNIVERSITY AVE W ST PAUL MN 55104 KIZZY L DOWNIE CEO 6516328350 2025-05-28 1 0 SARAH REICHLING P01587996 6123764500 2025-05-28 2024 2025-03-06 01:10:19Z KIZZY L DOWNIE 839 UNIVERSITY AVE W ST PAUL MN 55104 1932986 0 1 X N/A X 2009 MN TO OPERATE FOR THE BENEFIT OF MODEL CITIES OF ST. PAUL, INC. AND MODEL CITIES COMMUNITY DEVELOPMENT CORPORATION. 11 10 0 9 0 0 412653 1035539 746285 780458 14 9 77892 116980 1236844 1932986 0 0 0 0 0 0 0 0 15108 1111533 1111932 1111533 1111932 125311 821054 9046118 9067158 8389961 7588930 656157 1478228 X TO OPERATE FOR THE BENEFIT OF MODEL CITIES OF ST. PAUL, INC. AND MODEL CITIES COMMUNITY DEVELOPMENT CORPORATION. 0 0 458293 0 635812 MODEL CITIES PROPERTIES ENCOMPASSES ALL OF MODEL CITIES' REAL ESTATE DEVELOPMENT PROJECTS. OUR MOST RECENT DEVELOPMENT, MODEL CITIES BROWNSTONE, IS LOCATED AT THE VICTORIA STREET LIGHT RAIL TRANSIT (LRT) STATION OF ST. PAUL'S GREEN LINE. THE DEVELOPMENT IS A 4-STORY, MIXED-USE TRANSIT-ORIENTED DEVELOPMENT THAT INCLUDES 35 UNITS OF AFFORDABLE RENTAL HOUSING; APPROXIMATELY 20,000 SQUARE FEET OF RETAIL, OFFICE AND COMMUNITY SPACE; AND CLOSE TO 7,000 SQUARE FEET OF OUTDOOR SPACE DEDICATED TO A POCKET PARK. IN 2024, 53 INDIVIDUALS (38 HOUSEHOLDS) WITH LOW INCOMES GAINED ACCESS TO SAFE, AFFORDABLE HOUSING AT OUR BROWNSTONE LOFT APARTMENTS. SEE SCHEDULE O FOR ADDITIONAL INFORMATION.SINCE OPENING IN 2017, BROWNSTONE HAS BEEN AT OR NEAR 100 PERCENT OCCUPANCY (APPROXIMATELY 97% ON AVERAGE EACH YEAR) FOR THE 35 UNITS OF AFFORDABLE HOUSING INCLUDED IN THE PROJECT. THE POPULATION OF RESIDENTS IS DIVERSE WITH A MIX OF RACES, AGES, AND FAMILIES RESIDING AT BROWNSTONE. INTEREST CONTINUES TO REMAIN HIGH IN THE RESIDENCE AS WE TYPICALLY GET MULTIPLE APPLICATIONS FOR VACANCIES WHEN THEY ARISE. IN ADDITION, MODEL CITIES IS INCREASING ITS CAPACITY AS A PROPERTY MANAGER AS IT HAS SUCCESSFULLY MET ALL THE LIHTC COMPLIANCE ISSUES THAT CAME WITH THE PROJECT. ALL FIVE COMMERCIAL SUITES ALONG UNIVERSITY AVENUE HAVE CONTINUED TO THRIVE DURING THEIR LEASE. COMMERCIAL TENANTS HAVE BEEN A BLEND OF BUSINESS OWNERS FROM THE SURROUNDING NEIGHBORHOOD INCLUDING A SOMALI-OWNED CONVENIENCE STORE/DELI, AN AFRICAN AMERICAN-OWNED BARBERSHOP, AN AFRICAN AMERICAN WOMEN OWNED EVENT CENTER, A BIPOC-OWNED APPAREL STORE, AND AN AFRICAN AMERICAN WOMEN-OWNED RESTAURANT. THESE SHOPS HAVE EMPLOYED NEARLY 20 INDIVIDUALS OVER THE PAST YEAR, MANY OF WHOM ARE RESIDENTS FROM THE AREA. 345729 0 261626 MODEL CITIES PROPERTIES ALSO SERVES AS A HOLDING COMPANY FOR OUR SANKOFA AND FAMILIES FIRST SUPPORTIVE HOUSING DEVELOPMENTS, WHICH PROVIDE 37 LONG-TERM, LOW-COST HOUSING UNITS AT NO MORE THAN 30% OF FAMILY INCOME. SANKOFA SERVES PREGNANT AND PARENTING YOUTH AND YOUNG ADULTS AGES 17-25. FAMILIES FIRST SERVES SINGLE-PARENT FAMILIES, MOSTLY SINGLE MOTHERS WITH A HISTORY OF HOMELESSNESS. 0 0 0 MODEL CITIES CONTINUES TO WORK ON A DEVELOPMENT PROJECT (652 SHERBURNE), A VACANT 8-UNIT BUILDING LOCATED IN THE FROGTOWN NEIGHBORHOOD OF ST. PAUL. MODEL CITIES, ALONG WITH THE FROGTOWN NEIGHBORHOOD ASSOCIATION (FNA), HOPE COMMUNITY, HISTORIC ST. PAUL, AND THE HOUSING JUSTICE CENTER, CAME TOGETHER AS THE SHERBURNE COLLECTIVE TO JOINTLY REDEVELOP THE BUILDING INTO A SIX-UNIT COMMUNITY-OWNERSHIP BASED PROJECT. RONDO COMMUNITY LAND TRUST WILL OWN THE LAND IN A TRUST ENSURING THAT THE BUILDING WILL REMAIN IN COMMUNITY OWNERSHIP IN PERPETUITY. THIS $2.9 MILLION DOLLAR PROJECT INCLUDES A COMPLETE RENOVATION OF THE BUILDING, CONVERTING SOME OF THE UNITS TO MUCH NEEDED FOUR-BEDROOM FAMILY UNITS. FUNDING HAS BEEN COMMITTED FROM BOTH RAMSEY COUNTY AND THE CITY OF ST. PAUL. MODEL CITIES SERVES AS THE DEVELOPER AND MANAGES THE CONSTRUCTION PROJECT AND WILL PROVIDE PROPERTY MANAGEMENT SERVICES UNTIL THE UNITS CAN BE CONVERTED TO OWNERSHIP UNDER A CONDO OR COOP MODEL. THE RONDO COMMUNITY LAND TRUST OWNS THE LAND. FNA WILL CONDUCT COMMUNITY OUTREACH AND WITH HOPE COMMUNITY, HELP PREPARE ELIGIBLE FAMILIES FOR OWNERSHIP. REHAB OF THE BUILDING BEGAN IN SPRING 2024 AND WILL CONTINUE THROUGH 2025, WITH OCCUPANCY ANTICIPATED IN LATE FALL 2025. 804022 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 5 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 X 11 10 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MN X X X KASAYE AYEWNEW 6516328349 839 UNIVERSITY AVENUE WEST SAINT PAUL MN 55104 KIZZY DOWNIE CEO/BOARD SECRETARY 20.00 20.00 X X 0 105538 9356 OSBORNE STRICKLAND CHAIR 0.50 0.50 X X 0 0 0 BRENDA BAILEY TREASURER 0.50 0.50 X X 0 0 0 JUDITH AMINMENTSE DIRECTOR 0.50 0.50 X 0 0 0 DANIEL ATUNAH-JAY DIRECTOR 0.50 0.50 X 0 0 0 BRENDA BOLAR FORD DIRECTOR 0.50 0.50 X 0 0 0 PETER MAY DIRECTOR 0.50 0.50 X 0 0 0 MARILYN PORTER DIRECTOR 0.50 0.50 X 0 0 0 JOHNATHAN COOPER DIRECTOR 0.50 0.50 X 0 0 0 HEIDI LEISE DIRECTOR 0.50 0.50 X 0 0 0 AMY SCHWABE DIRECTOR 0.50 0.50 X 0 0 0 0 105538 9356 0 0 0 0 FLANNERY CONSTRUCTION 1375 SAINT ANTHONY AVENUE SAINT PAUL MN 55104 CONSTRUCTION SERVICES FOR REAL ESTATE PR 512159 1 484607 443966 106966 1035539 RENTAL INCOME 532000 780458 780458 780458 9 9 SHORP REVENUE 624100 115298 115298 OTHER INCOME 900099 1682 1682 116980 1932986 897438 0 9 32709 32709 87439 65142 21073 1224 8850 6593 2133 124 288715 215093 69580 4042 111 83 28 65501 48798 15786 917 313410 233490 75532 4388 49517 36890 11934 693 INTERCOMPANY EXPENSES 121655 90633 29319 1703 TIMESHEET REIMBURSEMENT 94502 70404 22775 1323 REPAIRS AND MAINTENANCE 35752 26635 8616 501 MISCELLANEOUS EXPENSE 13771 10261 3317 193 1111932 804022 292802 15108 73785 151052 85735 136756 9376 12581401 4166351 8552170 8415050 7018 334428 347906 9046118 9067158 556789 235118 7518015 7066806 315157 287006 8389961 7588930 X 207030 1287029 449127 191199 656157 1478228 9046118 9067158 821054 1017 0 X X 0 1 X 1 0 X X X 2 MODEL CITIES OF ST PAUL INC 411687873 7 1 0 0 MODEL CITIES COMMUNITY DEVELOPMENT CORPORATION 411936584 7 1 0 0 2 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 SCHEDULE A, PART VI, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2021 AMOUNT: $ 92,134. 2022 AMOUNT: $ -65,167. 2023 AMOUNT: $ 77,892. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 557618 557618 11564975 3980687 7584288 374116 160192 213924 84692 25472 59220 8415050 LONG TERM INTEREST PAYABLE 208431 SECURITY DEPOSITS PAYABLE 78575 287006 X PART X, LINE 2: MODEL CITIES PROPERTIES IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND SIMILAR STATE INCOME TAX LAWS. THE ENTITY IS A PUBLIC CHARITY AND CONTRIBUTIONS TO THE ENTITY QUALIFY AS A CHARITABLE TAX DEDUCTION BY THE CONTRIBUTOR. THE CONSOLIDATED LLC'S ARE DISREGARDED ENTITIES FOR TAX PURPOSES AND ARE NOT SUBJECT TO FEDERAL INCOME TAXES. THE ORGANIZATION FOLLOWS GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THE ORGANIZATION REVIEWS AND ASSESSES ITS TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN TAX RETURNS. BASED ON THIS ASSESSMENT THE ORGANIZATION DETERMINES WHETHER IT IS MORE LIKELY THAN NOT THAT THE TAX POSITIONS WOULD BE SUSTAINED UPON EXAMINATION BY TAX AUTHORITIES. THE ORGANIZATION'S ASSESSMENT HAS NOT IDENTIFIED ANY SIGNIFICANT POSITIONS THAT IT BELIEVES WOULD NOT BE SUSTAINED UNDER EXAMINATION. FORM 990, PART VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE IS COMPRISED OF BOARD OFFICERS AND CHAIRPERSONS OF ANY COMMITTEE COMPRISED BY THE BOARD. THE EXECUTIVE COMMITTEE IS AUTHORIZED TO ACT ON BEHALF OF THE BOARD ON ITEMS THAT REQUIRE ACTION PRIOR TO A BOARD MEETING. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS TWO CLASSES OF MEMBERSHIP. VOTING MEMBERSHIP CONSISTS OF THOSE INDIVIDUALS THAT ARE MEMBERS OF THE BOARD OF DIRECTORS OF MODEL CITIES OF ST. PAUL, INC. NON-VOTING MEMBERSHIP CONSISTS OF PERSONS WHO ARE VOLUNTEERS PROVIDING SERVICES FOR THE ORGANIZATION INCLUDING MEMBERS OF ANY COMMITTEES. FORM 990, PART VI, SECTION A, LINE 7A THE VOTING MEMBERS OF THE ORGANIZATION ELECT THE ORGANIZATION'S BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS EMAILED TO THE FINANCE AND AUDIT COMMITTEE UPON RECEIPT AND AFTER REVIEW BY STAFF. THE COMMITTEE REVIEWS AND MAKES A RECOMMENDATION FOR THE TREASURER TO PRESENT TO THE FULL BOARD. PRIOR TO THE BOARD MEETING THE FORM 990 IS E-MAILED AS PART OF THE BOARD PACKET. IF APPLICABLE, QUESTIONS ARE DISCUSSED AT THE BOARD MEETING AND A RESOLUTION OFFERED FOR A VOTE TO ADOPT AND THE FORM 990 IS THEN FILED. FORM 990, PART VI, SECTION B, LINE 12C GOVERNANCE POLICY GB-23 ON ETHICAL CONDUCT STATES A CONFLICT OF INTEREST POLICY SHALL CONTAIN STANDARDS AND CODES OF CONDUCT WHICH ENSURE THAT BOARD DIRECTORS, BOARD CONSULTANTS, CONTRACTORS, STAFF OR VOLUNTEERS ARE NOT IN A POSITION OF CONFLICT OF INTEREST OR THE APPEARANCE OF CONFLICT OF INTEREST AND DO NOT USE THE AGENCY RELATIONSHIP FOR PERSONAL GAIN. A DISCLOSURE QUESTIONNAIRE IS REQUIRED OF EACH INDIVIDUAL COVERED BY THE POLICY ANNUALLY AND THE FORM IS REVIEWED BY THE CEO TO DETERMINE WHO HAD OR WILL HAVE THE POTENTIAL TO BE INVOLVED IN AN ACTIVITY THAT MIGHT BE INTERPRETED AS A POSSIBLE CONFLICT OF INTEREST. NO BOARD MEMBER, STAFF PERSON, CONSULTANT OR VOLUNTEER SHALL HAVE DIRECT OR INDIRECT FINANCIAL INTEREST IN THE ASSETS, LEASES, BUSINESS TRANSACTIONS, OR PROFESSIONAL SERVICES OF THE AGENCY, EXCEPT AS EXPRESSLY DEFINED IN THE BY-LAWS. THIS DOES NOT PRECLUDE THE BOARD FROM RECRUITING AND ELECTING BOARD MEMBERS WHO ARE VENDORS OR SERVICE PROVIDERS OF THE AGENCY. THE POLICY GOES ON TO SAY THAT NO DIRECTOR SHALL BE THE BLOOD RELATIVE OF THE FIRST ORDER TO ANY AGENCY STAFF PERSON. BOARD MEMBERS CANNOT RECEIVE HONORARIA FOR WORK ON BEHALF OF THE AGENCY, EXCEPT AS SPECIFIED IN THE BY-LAWS. NEITHER THE BOARD MEMBERS, NOR THEIR FAMILY MEMBERS, SHALL BE ENTITLED TO PREFERENTIAL TREATMENT FOR SERVICES. AT ANY TIME WHEN A CONFLICT OF INTEREST EXISTS, THE BOARD DIRECTOR, VOLUNTEER, OR CONSULTANT IS TO DISCLOSE THE RELATIONSHIP AND CANNOT PARTICIPATE IN ANY VOTE OR DECISION TAKEN WITH RESPECT TO SUCH TRANSACTIONS OR SERVICES. SIMILAR RULES APPLY TO STAFF. STAFF SIGNS OFF ON THE EMPLOYEE HANDBOOK THAT STATES NO EMPLOYEE CAN PARTICIPATE IN THE RECRUITMENT, INTERVIEWING, HIRING, OR SUPERVISION OF A RELATIVE. NO TRANSFER OF PROPERTY OR LENDING OF MONEY IS ALLOWED BETWEEN THE AGENCY AND BOARD OFFICERS, DIRECTORS OR STAFF. ALL EMPLOYEES SHALL DISCLOSE ANY CONFLICT OF INTEREST REGARDING HIS/HER WORK, AND SHALL REFRAIN FROM ENGAGING IN ACTIVITIES WHICH MAY BE PERCEIVED AS BEING A CONFLICT OF INTEREST. ALL PROCEEDINGS RELATED TO CONFLICTS OF INTEREST ARE DOCUMENTED IN THE MEETING MINUTES OR AS OTHERWISE APPROPRIATE. FORM 990, PART VI, SECTION B, LINE 15 MODEL CITIES OF ST. PAUL (RELATED ORGANIZATION) COMPLETES A COMPARABLE WAGE STUDY IS PERFORMED TO IDENTIFY THE AGENCY'S COMPARABILITY WITH MARKET WAGES AND BENEFITS WITH OTHER SIMILAR NON-PROFIT AGENCIES. FINAL WAGES ARE INFLUENCED BY FUNDS AVAILABLE. THE WAGE STUDY IS PRESENTEDTO THE BOARD ALONG WITH MODEL CITIES PAY RANGES. THE BOARD DETERMINES THE COMPENSATION FOR THE CEO BASED ON THE STUDY. THE OFFICE MANAGER PRESENTS THE COMPARABLE WAGE STUDY TO THE CEO FOR REVIEW AND APPROVAL. A LISTING OF ALL JOB TITLES, CURRENT WAGE RANGES, MARKET RANGES, AND RECOMMENDEDREVISIONS ARE INCLUDED IN THIS FINAL STUDY. IF APPROVED, THE CEO PRESENTS THE FINAL STUDY TO THE BOARD OF DIRECTORS FOR THEIR ADOPTION. A COMPARABLE WAGE STUDY WAS DONE IN SEPTEMBER 2023 AND WAS CONDUCTED BY MRA (AN HUMAN RESOURCE FIRM) USING DATA FROM SEVEN DIFFERENT DATA POINTS. WAGE RANGES ESTABLISHED BECAME EFFECTIVE IN JANUARY 2024. THE NEXT WAGE STUDY WILL BE PERFORMED IN 2025 AND WILL BECOME EFFECTIVE IN 2026. THE PROCESS DESCRIBED HERE WAS LAST COMPLETED IN 2023. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION INCLUDES ITS FINANCIAL INFORMATION IN AN ANNUAL REPORT - DISTRIBUTED TO APPROXIMATELY 1,000 RECIPIENTS WHICH INCLUDES FUNDERS, DONORS, ORGANIZATIONS, PUBLIC OFFICIALS, AND OTHER INTERESTED PARTIES. ALL OTHER INFORMATION IS AVAILABLE UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION INCLUDES ITS FINANCIAL INFORMATION IN AN ANNUAL REPORT - DISTRIBUTED TO APPROXIMATELY 1,000 RECIPIENTS WHICH INCLUDES FUNDERS, DONORS, ORGANIZATIONS, PUBLIC OFFICIALS, AND OTHER INTERESTED PARTIES. ALL OTHER INFORMATION IS AVAILABLE UPON REQUEST. FORM 990, PART XII, LINE 2C THE PROCESS HAS NOT CHANGED FROM LAST YEAR. MODEL CITIES BROWNSTONE LLC 839 UNIVERSITY AVE W ST PAUL MN 55104 364809958 REAL ESTATE MN 725277 4248454 MODEL CITIES PROPERTIES MODEL CITIES SANKOFA LLC 839 UNIVERSITY AVE W ST PAUL MN 55104 262473138 ASSET HOLDING MN 252055 1721110 MODEL CITIES SUPPORTIVE HOUSING LLC MODEL CITIES FAMILIES FIRST NO 1 LLC 839 UNIVERSITY AVE W ST PAUL MN 55104 161636663 ASSET HOLDING MN 471047 3090576 MODEL CITIES SUPPORTIVE HOUSING LLC MODEL CITIES COMMUNITY DEVELOPMENT CORPORATION 839 UNIVERSITY AVE W ST PAUL MN 55104 411936584 COMMUNITY DEVELOPMENT MN 501(C)(3) LINE 7 MODEL CITIES OF ST PAUL INC 0 MODEL CITIES OF ST PAUL INC 839 UNIVERSITY AVE W ST PAUL MN 55104 411687873 CASE MANAGEMENT SERVICES MN 501(C)(3) LINE 10 N/A 0 MODEL CITIES BROWNSTONE LIMITED PARTNERSHIP 839 UNIVERSITY AVE W ST PAUL MN 55104 320466342 LEASE MANAGEMENT MN MODEL CITIES BROWNSTONE LLC RELATED -26 213458 0 1 0.00010 BROWNSTONE ASSOCIATION 839 UNIVERSITY AVE W ST PAUL MN 55104 823462293 SUPPORTING ORGANIZATION MN MODEL CITIES BROWNSTONE LIMITED PARTNERSHIP C 23405 10994 0.35000 0 0 1 1 0 0 0 0 0 0 1 1 1 1 1 1 1 1 0 1 SCHEDULE R, PART I MODEL CITIES PROPERTIES (MCP) IS THE SOLE MEMBER OF TWO LLC ENTITIES, MODEL CITIES SUPPORTIVE HOUSING, LLC AND MODEL CITIES BROWNSTONE COMMERCIAL, LLC. MODEL CITIES SUPPORTIVE HOUSING, LLC IS THE SOLE MEMBER OF TWO LLC ENTITIES, MODEL CITIES FAMILIES FIRST NO.1, LLC AND MODEL CITIES SANKOFA, LLC. THE LLCS LISTED ABOVE ARE TREATED AS DISREGARDED ENTITIES OF MCP AND THE FINANCIAL ACTIVITY IS INCLUDED IN THIS TAX RETURN.