(612) 786-0869 

ANOKA COUNTY ECONOMIC 

I DEVELOPMENT PARTNERSHIP 

. 

299 Coon Rapids Boulevard, Suite 12 

Coon Rapids, Minnesota 55433 

September 17, 1998 

Ms. JoAnne F. Lewellen 

Assistant Vice President 

Community Affairs Officer 

Federal Reserve Bank of Minneapolis 

90 Hennepin Avenue 

P.O. Box 291 

Minneapolis, MN 55480-0291 

RE: Norwest CorporationWells Fargo & Company 

Public Meeting Informatidn 

Dear Ms. Lewellen: 

The purpose of this letter is to provide a brief written statement to supplement my spoken 

testimony. As Director of the Anoka County Economic Development Partnership (ACEDP), a 

501 (c)3 non profit corporation that does economic development within the 21 community Anoka 

County area and President of the Anoka Sherbume County Capital Fund (ASCCF), a multi-bank, 

multi-investor, community development corporation (CDC) that makes equity investments in 

emerging technology based companies, I would like to go on record as stating that Norwest Bank 

Minnesota has played a key role in the success of both organizations. Besides having a Norwest 

representative lend time and expertise to the non profit organization the bank has always provided 

needed financial support as well. However, it is in the lead role that Norwest played in the 

formation of the ASCCF that has made the greatest impact on the economic base and job creation 

in both Anoka and Sherbume Counties. 

Norwest took a lead role in establishing the foundation of the ASCCF by getting it designated by 

the Office of the Comptroller of the Currency as a bank CDC. Norwest was also the first 

federally chartered bank to invest in the ASCCF and is currently its largest investor. The ASCCF 

now has 22 investors including 10 banks and all major utility companies serving the Twin Cities. 

The State of Minnesota through its Department of Trade and Economic Development is the fimds 

most recent investor. The fund has made 22 investments to date and created over 100 good 

paying jobs in the area with potential for hundreds more. Two business incubators along with 

participation from the Urban Initiative Fund and McKnight Foundation have provided even more 

resources to the effort. 
Ms. Lewellen 

September 17, 1998 

Page two 

On behalf of ACEDP and ASCCF I would like to personally thank Norwest for the major role it 

played in creating what the commissioner of the Minnesota Department of Trade and Economic 

Development called in a MiMeauolis Star and Tribune article “a cutting edge approach to 

economic development”. 
METROPOLITAN ECONOMIC DEVELOPMENT ASSOCIATION 

SUiTEl06,COMMERCEATTHECAOSSl

2~2NDAKNUESOUM 

MINNEAPOllS.MINNESOTA55

612 W~MEDA(6332) 

Fax 612 317-1002 

September 16, 1998 

Ms. JoAnn Lewellen 

Assistant Vice President, Community Affairs Officer 

Federal Reserve Bank of Minneapolis 

90 Hennepin Avenue 

Post Office Box 291 

Minneapolis, Minnesota 55480-029 1 

Re: Testimony at the Norwest Corporation /Wells Fargo & Company Public Meeting 

Information 

Dear Ms. Lewellen: 

My name is Warren McLean and I am the President and CEO of the Metropolitan 

Economic Development Association, commonly referred to as MEDA. 

Thank you for giving me the opportunity to testify at this public meeting about 

MEDA’s relationship with Norwest Corporation. For the benefit of the committee, 

MEDA is a private non-profit minority business development organization. We provide 

small business consulting, financing and sales development services to nearly 600 

minority entrepreneurs each year. We have been in operation for nearly 27 years. 

For the record, MEDA’s relationship with Norwest has been outstanding. 

First, Norwest Corporation and its CEO at the time, Phil Harris, was one of 4 

individuals who helped start MEDA 27 years ago. An original founder and funder, 
Norwest remains a leading contributor to MEDA having contributed over $667,000 in 

-. ._ 

operating funds alone since 197 1. 

In 1989, MEDA spun off a minority venture capital fund called Milestone Growth 

Fund. Norwest helped capitalize the fund by providing $200,000 in capital. In addition, I 

consulted regularly with Norwest Venture Capital staff for help in designing, developing 

and implementing the fund. Norwest Venture Capital President, Dan Haggerty, was one 

of Milestone Growth Fund’s original board members. 

Further, in 1995 MEDA established the MEDA Loan Program, a $5.3 million 

working capital fund for minority business. The fund is a collaboration of 6 banks, the 

M&night Foundation and the State of Minnesota. The banks comprise a consortium and 

together they agreed to provide $3.3 million in loanable funds. Norwest Corporation was 

one of two banks that agreed to provide $1 million to the loan fund. Moreover, Wally 

Droegemueller, Norwest’s Vice President and Deputy Senior Credit Officer, took the lead 

in determining the mechanics of the program. Wally helped develop the overall lending 

criteria. He also reviewed and tested the various lending scenarios. Wally crafted a 

design that was acceptable to all six banks. For Wally’s efforts, he was selected MEDA 

Volunteer of the Year. 

To Norwest Corporation’s credit, they have remained vigorous supporters of the 

program. Either Tom Burke, Terri Banaszewski , or Laurie Paal have attended all the 

credit committee meetings since the program’s inception in 1995. They also close and 

personally administrate each Norwest consortium loan. 
In 1996, MEDA launched Vision 2000, a major expansion of our services. To 

-.-. 

achieve this expansion we asked several of our funders to double their financial support. 

Nor-west was the first corporation to literally double its support which they did that year. 

Norwest Corporation has also funded and provided training to MEDA clients. Jeff 

Judy one of Not-west’s top internal trainers has conducted training sessions for MEDA 

clients on several occasions. 

Jerry Gray, Not-west Executive Vice President, continues a long tradition of 

proactive board leadership. Jerry recently proposed a $10 million expansion to the 

MAZDA Loan Program. Finally, Norwest Chairman and CEO Dick Kovacevich is a 

member of the MEDA Advisory board. He was the keynote speaker at MEDA’s 1997 

Annual Meeting and hosted 2 MEDA client lunches. 

This concludes my remarks. Again thank you for the opportunity to provide 

testimony. 

Sincerely, 

Warren McLean 

President and CEO 
Phalen Boulevard, the Esseatlal Unk 

Cii Buys Phalen Shopplno Center 

East Side Walkers Top Prlorlty 
Mondav. Dec. 0. 1997 THF FAST SlnF m 

Craig Johnson resigns from ,,:.I -: 

Phalen Corridor Initiative. ? : 

Due to ? new job with Norwest ‘I,, the course 0f 

Bank, Craig Johnson, chatr of the 

Phalen Corridor Initiative, resigned the ZaSf Sfi?V.rUl 

from the initiative on Tuesday after 

participating since its inception three years, I have lived .i 1~ 

years aw. literallv the -- ..’ 1 

John-n will be replaced by John PhaleiCor,.idor 

Kempe, an East Side attorney who 

ioined the initiative six months aeo: InitiUtiVe. Its WUS U , 

I’ After working’as manager Of ,,I/, di~iicult 

Nowest’s Phalen Park and Minnehaha 

: 1 ,’ 

branches for six years, Johnson is think to do,to 

taking over as vice president of the ,. 

bank’s investment management and resign from it. ’ .” 

trust division. which is located in ,_., 

Wayzata. He will begin his new job 

before the end of the month. Craig Johnson . . . 

“In the course of the last several 

years, I have lived literally the Phalen 

Corridor Initiative,” said Johnson, who has served as chair for two y&.; 

“It was a really difficult thing to do to resign from it.” 

The Phalen Corridor Initiative is a community partnership working !o, 

create new jobs, retain existing businesses and cleanup polluted land. A 

major component of the project involves transforming an under-us@ 

polluted industrial corridor from the Interstate 3SE and Interstatc;9,4 * 

junctjon to Lake Phalen. 

Johnson was reluctant to tout his accomplishments as the chair, 

insisting that the success of the initiative lies with the entire team :;Ff,l: 

take credit for one thing, it’s demonstrating how much more rapidly~w_e_~ 

move foward when we speak with a powerful voice.” 

Johnson has been active in lobbying Congress for funding to’b~uijb’ 

Phalen Boulevard. During the past year, he has testified before Congre$,, 

eking for $38 million. The proposal has the backing of Congres&+n, 

Bruce Vento, an East Sider, and Jim Oberstar of Duluth, as well as US. 

Scns. Paul Wellstone and Rod Grams. 

. ‘. 

Although Johnson is heading to the western suburbs, he said he may 

not disappear from the East Side. Johnson, who grew up on the Easi $+ 

but currently lives in Oakdale, said he may buy a home in the are:: 

“Although I’ll be working on the opposite end of the earth, there are 

reasons I want to stay over here,” he said. 

Johnson said he couldn’t announce who will take over his current job 

at Nonvest, which will be split into two positions. A manager may be 

hired at the Phalen Park office next week and at the Minnehaha office il;’ 

two weeks. ‘( 

He expressed confidence in Kempe as the new chair. Kempe is’i~ 

partner at McCullough, Smith, Wright and Kempe, a law firm whi:h 

specializes in personal injury and family law. He has worked with the f!rm 

located across from Lake Phalen on Parkway Drive since 1989. A form,+ 

East Sider, Kempe moved to Mendota Heights five years ago. 

The new chair is well-known in the business community, he is a pasi’ ’ 

president of the Payne-Arcade Business Association, as well as vice 

president of the East Side Area Business Association. 

Kempe says he has the diplomatic skills to balance the multi$$ 

interests in the Phalen Corridor Initiative. He described the initiative a$ 

more of a family than a partnership; just like a family, different players id 

the initiative at times disagree, but must reach a resolution. 
PHALEN.CORRlDOR INITIATIVE 

Partners & Task Forces 

Ramsey County Rail Authority 

Ramsey County Public Works 

EMPLOYERS: 

O’Keffe Cabinet 

and Furniture 

Standard Truck and A”,@ 

Sumise Publishing 

Ramesy County IJIC “case” Insurance 

Lao Family, Inc. Women’s Assoc. Welsh Companies 

Chica”0-L&“0 of Hmong and Lao 

Steering 

Committee 

St. Paul Building & Consbuction 

Trades Council 

East Side Area Business Northwest ATea 

Foundation 

Nowest Bank 

St. Paul Companies 

COMMUNITY COUNCILS: 

District Z Community Council 

Dayton’s EdufilDisticf 4 Commmunity Council 

District 5 Community Council 

Datrict 5 Community Council 

U.S. senate 

MN Senate 

St. Paul Public School District 

Mebopolitan State University 

Upper Swede Hollow N’hoods Assoc. 

East Side N’hood Dev. Company 

Phalen Wllage Business Association 

WORKFORCE DEVELOPMENT 

KEY: 

Partners 0 PHALEN CORRIDOR INITIATIVE 

506 Kenny Road 

Task Forces 

saint Paul, MN 55101 

cl 

Curt Milbum, Project Director 
Multicultural 

work force brings 

diversity’to 

customer service 

BY ERIC SANDVE 

F&C ST*WWRrrE~ 

B 

anker Kou Vang answers the 

phone with “hello:‘then begins 

speaking in Hmong to a cust0lller. 

Vang, the only Hmong bank vice 

president in the nation, works at the 

Norwest Bank of Minnesota’s office 

on St. Paul’s east side. 

When he began there five years 

ago. he was the only Hmong employee at the branch. Now bank employees 

represenl Hmong and several other 

cultures. 

“I feel very fortunate to be in this 

position,” he said. 

Vang said being able to speak a 

client’s language and unders,tand their 

culture is important in the ethnically 

diverse neighborhood. Many of the 

residents xc recent immigrants of 

varying ages. 

“We establish a relationship with 

them before any bank. This is what we 

are building on.” said Vang. 

As a community leader. he gives 

seminars every year to educate and 

update people on banking and managing their finances. 

He scwes as president of the 

Hmong-American Mutual Association and as a board membwon both 

the United Way and STAR,program in 

3.Paul. .,‘:; ., 

“I want people IO kno&&ot here 

just td do business.bdtQo help;the peo- ple,” said Vn”g. .; ~~‘>ji ‘1 ’ ,. 

Banking concepts are new to ma?y 

Hmong immigrants. He said a IOI of 

the immigrants don’t know what 

checks arc or what credit is. 

Instead of savings accounts, many 

had kept their money under the mattress or buried it in the yard. 

“It’s very important as a financial 

consultant to teach them,” said Vang. 

In addition to savings and checking 

accounts. many of the customers need 

loans for cars, houses and starting up 

businesses. 

He has helped people learn how to 

write checks and carefully use that 

privilege sensibly to earn and preserve 

good credit ratings. Vang also has 

helped people learn how to responsibly use credit cards. 

Customers, many of whom hold 

entry-level jobs, also learn the importance of having savings accounts to 

cover unexpected expenses. 

He said saving money is especially 

important for older people. 

Vang said banks arc very Westernized. which makes many immigrants 

uncomfortable. The east St. Paul 

branch has an unusually diverse staff. KouVang.vice presidpntanda managing officeraINomrest Bank’s eastSt.Paul branch. 

islhe nation’s onty.liniong bankvice president. He has helped bring banking toil diverse 

population by adding staff to represent many cultures and provide outreach to community members.,,j, 
16,” 

OCTOBER 1996 

WEDNESDAY 

CD 

SECTION 

IO PAGES 

Phalen Corridor initiative 

East End East end of corridor 

'Lake ,Ph,alkn. redevelopment 

Approximately 15 total 

k-ins Prosperity Ave. at 

Ave.) 

acres of unused and 

underused industrial 

t.w\andb”e. property. 

East consolidated area 

Residential rehabilitation through a 

variety Of sources. Selected rezoning. 

State Capitol 

Lo 

en Village area 

$ltio,ning of existing 

nerck3l property to 

land Avenue. with 

zv,,~,,5estrian. transit and 

‘ecreational amenities. 

&Tk!~: Reintroduction of a 

@JF ~~! $.&land extendi”g into 

the current Ph.&en 

Shopping Center site 

surrounded by 

rehabilitated apartment 

units. 
Testimony 

Norwest Bank Merger with Wells Fargo 

Federal Reserve Bank 

Minneapolis 

Curt Milburn 

Project Director, Phalen Corridor Initiative 

Executive Director, East Side Area Business Association 

506 Kenny Road 

St. Paul MN 55101 

651-772-6220 

Fax 651-772-6262 

It makes good business sense and common sense to help 

rebuild the inner city, and Norwest bank through its housing 

and lending pro rams continues to contribute to the urban 

revitalization of 8 t. Paul. But that is a story best told by 

others. I feel compelled to give you some background about 

the community where I work and Norwest Bank’s 

participation with that community. 

The East Side of St. Paul, once a manufacturing 

powerhouse has lost 2500 jobs over the last thirty years. 

Today, certain areas of the East Side have as much at 17% 

unemployment. 

Since the 1970’s, companies like Whirlpool closed plants 

throwing hundreds out of work. Just last year, the Stroh 

brewery and Cannon Conveyor closed their doors with a 

loss of over 500 jobs. 

There has been a number of dreams to redevelop the East 

Side over the years, but it wasn’t until the City Parks 

Department brought together businesses and community 
members to give input on a proposed bike path that the 

spark of renewal caught hold. 

The community responded with envisioning much more 

than just a bike way. 

Craig Johnson, the branch manager of two Norwest Banks 

on the East Side volunteered to chair a comprehensive 

initiative the likes of which has never been tried in St. Paul 

before. 

(see Craig article) 

Craig was raised on the East Side and remembered it as a 

place of opportunity not despair. The Phalen Corridor 

Initiative is about reclaiming polluted lands called 

brownfields to attract manufacturing companies. It’s about 

workforce development striving to get East Siders in the 

jobs we attract. It’s about green space, with the nation’s first 

project turning an abandoned shopping center back into the 

wetland it once was. It is also about building a road to get 

access to these community assets. 

(see City Business Article & PCI Today) 

On his own time, Craig led the initiative even flying to 

Washington to secure funding from the Federal 

Government to begin construction on the road. 

But Norwest is not just one Banker. The East Side is 

changing and our Initiative reflects those changes. When 

Craig was promoted to a new position, Norwest had the 

foresight to replace him with the first Houng banker in the 

nation. 

(see Kou article) 
Kou Vang is the first Houng branch manager and bank Vice 

President in the US. The cash machine at the bank reads in 

English and Houng. A visit to that bank is like visiting the 

United Nations. African American, Latino, Houng and 

whites are not only customers but employees as well. I am 

proud to report that Kou has recently been made the Vice 

Chair of the Phalen Corridor Initiative, a position that leads 

directly to the position of the Chair of the project. 

It is not just on the neighborhood level that Norwest has 

integrated itself with the community. Norwest has backed 

up this commitment with joining nine other community 

funders to support this Initiative. Also, Larry Haeg, a media 

relations expert with the bank has provided three media 

trainings for us. You must keep in mind that the Phalen 

Corridor Initiative is a collaboration of community members, 

business people, residents, and local officials,, not slick P.R 

professionals. Most of us had rarely spoken with a 

newsperson, none the less had been confronted with the 

lens of a television camera. Larry helped us communicate 

our vision, a vision that has since captured the imagination 

of local and national leaders. 

Joan Grzywinski, president and District Manager of 

Norwest sits on what we call our Advisory Committee. 

Along with our Mayor, Congressman and others, Joan 

helps chart our course, strongly stressing our use of the 

programs Norwest offers to inner-city residents. 

Another community leader is Pat Donovan. Mr. Donovan is 

the Norwest Regional President and he acted as the CoChair of the City-Wide Community Development Agenda, 

Pat helped devise a blueprint of how a city can 

compassionately build its members and its institutions. Mr. 

Donovan continues to honor us and the employees of 

Norwest who work with us by siting the Phalen Corridor as 
St. Paul’s best example of comprehensive community 

development. 

Without the commitment of Norwest Bank and its 

employees we would not have the success we have today. 

Our wetland project is underway, our first industrial park 

has three confirmed tenants bringing hundreds of jobs to 

the East Side, and the first funding for our roadway is in 

place. 

Without the contribution of Norwest Bank in the future1 fear 

we may not realize our vision of rebuilding the East Side. 

We have been assured that their commitment will continue 

and we have never been misled by this institution or it’s 

dedicated employees. 

I thank you for this opportunity to talk about one of our 

community partners and I am free to answer any questions 

you might have.