Economic deliverance thru the church - Black churches and Black economic development: from housing to business enterprises

Black Enterprise, Feb, 1997 by Tomika DePriest, Joyce Jones

Black churches are bringing the gospel of economic development to inner city communities.

IN THE HEART OF THE MARTIN LUTHER KING JR. historical district in Atlanta lies Auburn Avenue, home of the civil rights struggle, a rich black business legacy and Sunday morning sermons at some of the largest African American congregations south of the Mason Dixon line. A quarter-block stretch of the avenue is lined on both sides by Wheat Street Plaza North and South and its two strip malls that house 10 small business

What makes these malls significant is that they are the product of the Wheat Street Charitable Foundation, the nonprofit organization that serves as the development arm of Wheat Street Baptist Church. All the shop owners in the malls are members of the church and most of the businesses are black-owned. Four of the merchant have been in the mall since it was built over 25 years ago.

Wheat Street has known for some time what many black churches across the country are quickly discovering: that they can be catalysts for the creation of black businesses, jobs and wealth in African American communities. Currently, the Wheat Street church, which doesn't own any of the businesses, dears more than $50,000 annually in rent. But business manager Eugene Jackson explains that it's not all about creating money for the church: "Our mission is about creating economic opportunities for the people in our community."

This brand of Christian capitalism encourages African Americans to pool their dollars to invest in each other and their communities. Unlike a corporation that keeps its profits, church-based business enterprises enrich the neighborhood by providing resources and much needed services like day care, soup kitchens and substance abuse counseling. When once empty storefronts become thriving businesses, property values of neighboring homes increase. In turn, this attracts more affluent residents and other businesses, which are more likely to take an active role in improving quality-of-life issues, such as safety and good schools. At its best, the cycle of inner-city poverty is reversed, creating a foundation for economic empowerment.

THE FRUITS OF GOOD WORKS

Through the efforts of its Charitable Foundation, which was essentially created to separate church and state for tax purposes, Wheat Street boasts more than $33 million in real estate. The church holdings include Wheat Street Towers, a senior citizens' home, and Wheat Street Gardens, a low-income family housing development. The Towers were built in 1973 and the Gardens in 1964, financed with a combination of grants from the Department of Housing and Urban Development (HUD) and church contributions.

The 2,000-member congregation also has a 1,000-member credit union with over $1 million in assets. "By belonging to a credit union, you are paying yourself first because you are saving and growing what you earn," says Ben Logan, a 52-year-old accountant who has been a church member for 40 years. "Besides, If you go to a commercial bank, you're nothing but a customer. If you join a credit union, you become an owner and share in the proceeds through interest dividends."

The church's involvement in developing real estate and creating a credit union came about under the leadership of Wheat Street's Rev. William Holmes Borders Sr., who was the church's pastor from 1937 to 1988. "His vision was to make religion pragmatic," says Jackson. "It's not enough to have worship service on Sunday. The church had to meet the needs of its members and their community."

Now, Wheat Street is looking to acquire and develop land once again. "As opportunities and resources become available, the church plans to build additional housing and retail space," says Jackson.

ACQUIRING PROPERTY

For a church to acquire and develop real estate is no easy feat. It requires business savvy and a keen understanding of the city bureaucracy, attributes that the leader of any church must have to be a successful change agent. A good example is the Rev. James Wallace Edwin Dixon II, senior pastor of the 2,500-member Northwest Community Baptist Church in Houston. Churches interested in acquiring real estate can benefit from the lessons that Dixon learned while mastering the art of the deal.

The church's budget under Dixon, who took over as pastor 16 years ago at the age of 18, has increased from $50,000 to $ 1.5 million. Under his leadership, Northwest has engineered the construction of a 36,000-sq.-ft. shopping center, home to several small businesses including the Deliverance Grocery and Deli Institute Inc., a grocery store training initiative. The church also owns a drug rehabilitation center, and in 1990 purchased 22.6 acres of land, at a price of$955,000, on which it will build a 3,000-seat sanctuary, community life center and Christian educational facility.

Churches that want to duplicate Northwest's success should begin with a biblically-based vision for the church and community, Dixon advises. Never rush to make a purchase and never buy under pressure, he adds. "I think we get in too big a hurry because we're excited thinking about how we want to use the land and the good it will do." While these are noble ambitions, they can work against the buyer, he says. During negotiations, it is critical to be professional, polished and, most important, prepared. Once an acquisition site has been found, learn everything about the property and the surrounding neighborhood through public records and/or by talking to long-time residents, he continues. Find out how many times the property has changed hands, including when and why it was sold and the last price it went for. "When buying property, you have to become a student of real estate," Dixon counsels.