A Rural Approach to Community Progress
21st Century Barn Raising Case Study №1
What do we do with a visionary idea for our community — one that embodies real impact potential, along with authentic place-based community support — when we don’t have the financial resources and the expertise needed to turn that goal into reality? Any effort to seriously engage this question requires creative thinking, strong relationships and in this case, stretching the boundaries of conventional design and construction practices to fundamentally accomplish more with less.
Meet Luverne
Minnesota’s Can-Do Community Builders
In the vast open plains of southwestern Minnesota, about 30 miles east of Sioux Falls, South Dakota is the community of Luverne. Luverne was founded in 1867, is the Rock County seat of government, and has a population of less than 5,000. The community has endured a wide range of challenges over its 150 year history, from 19th century pioneer settlement to 21st century rural decline. Yet it endures. Luverne understands well, at its core, the tradition of barn raising as a cooperative and necessary community action. That cultural mentality is still very much alive today. In Luverne, there is an understated, largely unspoken attitude that we can accomplish ambitious goals when we commit ourselves fully to the task. Roll up your sleeves, work hard, and make it happen. We do more and better as a community — together.
Since 1930, a small and resolute organization called the Rock County Historical Society has diligently gone about the business of collecting and recording the history of Luverne and Rock County as a resource for today and future generations. Over 87 years the Historical Society has come to own and manage a number of local properties including the historic 1892 Hinkly House, four small buildings at the county fairgrounds, and a modest museum and research library that contains only a fraction of the history that the society has to exhibit. Well aware of the physical shortcomings of their current museum facility, and how it was restricting their own community-based mission, the Historical Society stepped forward in 2015 to purchase a soon-to-be vacated property on the eastern edge of the city’s Main Street District — with a vision of transforming it into the Rock County History Center. The property was an old automotive dealer and service business called the Herman Motor Company. At 12,600 square feet, heavily-used and in concerning condition, the location was ideal, but the sale price was not.
The Rock County Historical Society is a small non-profit community organization, in a small town, with limited financial income consisting primarily of membership dues, donations, and periodic grants. The $150,000 purchase cost for the property was made with a local bank loan and the limited funds that the Historical Society had available. The cost of acquiring the property meant they had less funds available for renovation — the full cost of which was as yet unclear.
The Historical Society Board of Directors decided that they were interested in a design-build approach to renovation, as opposed to a more conventional design-bid-build process. Some of this direction came from a perception of design-bid-build as a more extensive and therefore expensive method, but more importantly it reflects their genuine desire to work collaboratively as a team — owner/board and contractor/architect. From the beginning they were interested in a strong working relationship, not just an affordable project, common values related to work and life in rural places.
After searching for the right fit, the Historical Society decided to hire the Southwest Building Specialists (SWBS), based on their favorable cost estimate and affiliation with the Southwest Minnesota Housing Partnership (SWMHP) that had performed a variety of successful housing and community projects in Luverne. All three organizations understood the value of a community-based mission, the reality of non-profit budget constraints, high regional construction costs, and the need for creative solutions to address these challenges. The strategy was for the SWBS and the SWMHP’s Rose Architectural Fellow to collaborate with the owner in a design-build process to help them save money and identify other opportunities to maximize the impact of their available resources: to do more with less.
How to do More with Less
Create a Funding Snowball Effect
After the decision to purchase the property, the Historical Society began an effective local campaign to raise community awareness and garner support in the form of capital commitments for the development of the History Center. This effort was seeded with $100,000 in donations from a small group of local businesses and individuals. That early support encouraged others to donate, and also secured commitments of financial pledges to be donated over time.
Pledged donations do matter. The local bank considered the pledges legitimate financial support, and gave the project a $400,000 line of credit. Furthermore, the energy around the History Center project caught the attention of a philanthropist who pledged to match, dollar for dollar, all donations and grant funds raised over a one year period. This matching fund opportunity created a constructive community challenge — to see how much more they could raise, and literally double the benefit of their own community support. In addition to direct fundraising, a variety of state and local grant programs were also identified and engaged to further elevate the financial bottom line.
Leverage Tax Exempt Savings
After a variety of practical, cost-effective design decisions were made, the next cost saving strategy employed was utilizing the Historical Society’s own certified tax-exempt non-profit status to exclude sales tax on construction material purchases. Working with the Minnesota Department of Revenue and a local attorney, the team was able to clarify the steps necessary for tax free purchasing by authorized contractors. The Southwest Building Specialists was also authorized to use the Historical Society’s business accounts for tax-free purchases at local vendors such as the lumber yard, hardware store, paint store, etc. Other businesses sent their tax-free material invoices to the Historical Society for direct payment, removing the need for a formal bid, authorization, and purchasing process. At substantial completion of the interior, over $20,000 in sales tax alone had already been saved. The owner retained the full saved value, and that savings grew as exterior work progressed.
Engage Goodwill Capital
As the recognized keeper of community history, the Historical Society had access to willing volunteers with skills ranging from the command of a paint brush to fine woodworking craft. Many volunteers helped with small activities throughout the project. A few took on larger roles including the creation of 14 custom ceiling panels using carefully selected stamped tin ceiling tiles salvaged during the interior demolition. The tiles were mounted on custom wood frames that hang from the ceiling in 3 different spaces. This element creates a unique architectural feature as well as a mounting structure for adjustable lighting. The market value of this professional quality work is into the thousands of dollars, and thanks to volunteer goodwill capital, it cost no more than the tax free purchase of the materials themselves, and showcases the local community talent.
Leverage Alternative Labor Resources
Another unusual, but highly effective strategy for managing cost was alternative construction labor resources. Labor can account for half or more of the physical construction cost of an average project in the region. What options exist beyond the standard labor resources? Which portions of the project can be performed successfully by individuals with limited skills?
A community service work program shared between Rock County and neighboring Nobles County, known as the RNCC, and a Minnesota Department of Corrections construction trades development program, sometimes referred to as the DOC provided helpful labor resources. Both of these state approved programs are based on voluntary participation, and have qualification requirements before individuals are accepted. The DOC in particular, is aimed at teaching construction trade skills that are useful for future employment.
The RNCC, which serves only non-profit entities such as schools, faith based organizations, and community groups performed nearly all of the interior demolition and clean-up work as well as much of the interior painting, at no cost to the owner. DOC program participants performed a range of uncontracted and miscellaneous tasks from general framing and finishing work to final installation of custom features such as the tin ceiling panels fabricated by volunteers. These programs also help build relationships, as project owners, residents and participants got a chance to meet each other and interact through the construction effort.
Facilitate and Fund with Local Connections
Just as the collaborative working relationship between the Historical Society, the SWBS and SWMHP proved critical to success, so did numerous local business relationships.
Local businesses who understood the project frequently provided best pricing and excellent service. Local contractors and suppliers often did more than expected and a few even discounted their bids or donated directly to the project. Supporting local business and the community that sustains them was so important that it became a high priority for contractor selection. As the project moved forward under budget, the Historical Society prioritized the use of local resources whenever practical. They saw it as their duty to give back to the community, and the relationships did not stop there.
The local building official was instrumental in helping keep the project moving, at times on the basis of an on-site meeting and verbal agreement. For example, following the roof reconstruction when progress could have been delayed pending a structural review, work was allowed to proceed with the understanding that the structural engineer would personally visit the site to review the new roof framing with the building official, and document any items required for follow-up and verification. Formal approvals were still necessary, but rigid rules and regulations were met with a flexible approach. The local newspaper, the Rock County Star Herald, also played an important role, publishing a series of articles on the History Center renovation generating greater interest and support for the project.
Community engagement and ownership are key elements of success, and this means embedding the project, as much as possible, into the local economy, and network of local relationships. Never underestimate the power of a community to support a community-based project!
In the end, the Historical Society raised and leveraged enough funds and resources to cover most of the nearly $1 million renovation budget, and the collaborative design-build process accomplished more than originally planned. The construction of the History Center demonstrates a different way of viewing resources and reciprocity. It is about building community buy-in, but also making sure to buy into the community. The result of that commitment has returned in the form of new visitors to the History Center from across the nation, Canada, and as far away as Australia. The response from near and far has exceeded expectations. The Rock County Nutcrackers collection even landed a primetime spot on a Twin Cities CBS network newscast.
At a post-construction open house event the Historical Society made sure to invite people who had played an important role in the project, including the RNCC participants that did so much of the early work. They were not invited by obligation, but because the Historical Society genuinely appreciated their contribution, and wanted them to see the fruitful results of their community service. These are generous people with a remarkable project that literally took a village to accomplish.
In our increasingly complex and complicated world, the History Center project should give us pause for thought. In contrast to a more conventional design and construction process guided foremost by regulations and legal obligations, this project makes clear that a less formal, more relational, value-based collaboration is not only plausible today, but valid and viable as well.
This alternative approach to community building is not just for rural communities like Luverne, but, I believe, holds great potential for urban neighborhoods also. This kind of project is not impossible in “the city.” When a community understands itself and rallies for a common purpose, great outcomes are always possible.
