I am writing to you and TNDC’s other closest friends and allies to update you on what’s been happening with us and in the Tenderloin.

Bringing the Holidays Home
To help our tenants enjoy their holidays, TNDC gave away 900 food bags before Thanksgiving and Christmas, and we sponsored more than a dozen building-wide meals for each of the two holidays.  One social worker wrote to say “I do not lie when I say their eyes literally lit up when they saw the cereal box.”

The children and families of TNDC’s Tenderloin After School Program, too, enjoyed holidays made richer by their involvement in the program. During December, TASP brought hundreds of children, parents and others together for traditional holiday celebrations, seasonal foods, tree-trimming, and a special gift-giving visit from Santa. Thanks to our great staff and the partnership of civic organizations, local companies and caring individuals, TNDC enabled TASP families to enjoy a few special extras for the holidays that they could not otherwise afford, in a familiar and trusted community hub – “the Center,” as the kids call it.

The Grocery’s Next Chapter
The Tenderloin is San Francisco’s only neighborhood without a full-service grocery store, and in September TNDC’s Board of Directors formally declared its intention to bring one to the site it owns at the corner of Eddy and Taylor Streets.  We have committed to designing the space to accommodate a grocery, and are currently in the process of seeking financing and trying to secure an operator, though the current economic and retail climate make that even more difficult.  We hope that by the time the building is ready for occupancy, we will have identified a grocer who understands that what TL residents lack in income they make up in density: 14,000 people live within a few blocks of the site.  In fact, our research shows us that Tenderloin residents spend approximately $52 million in grocery stores outside the community.

In order to make the grocery store a reality, TNDC will need to secure an additional $3M in charitable or public funds.  Staff is currently working on plans for a possible capital campaign to address this capital shortfall.

The Impact of the Recession
The global recession is taking a toll on Tenderloin residents.  For most, struggling under the stress and weight of financial problems is a fact of daily life.  Yet it’s worse now: some are losing their jobs, while others are seeing their hours cut back, adding to the financial stress that already burdens them.

TNDC is being impacted by the economic meltdown as well.  Charitable giving is likely to decline, and three TNDC developments have been formally suspended for lack of financing, with a commensurate delay in TNDC’s fees.  Recognizing this, we are reducing a wide variety of expenses to achieve $300,000 in savings out of a $6 million General Fund budget) – yet by avoiding layoffs, at least for the time being, we’ve explicitly chosen to continue delivering the same level of services, knowing that that risks dipping into our reserves, in order to shield our tenants and clients from even greater stress from the deteriorating economy.  We’ve written in much greater detail about our organizational response to the recession, and those interested can write me at dfalk@tndc.org for a copy.

And More
Much is happening in other areas of TNDC’s work as well:

• we’ve broken ground on three projects that together will house over 300 people, most of them formerly homeless.
• we have now completed construction on two other projects that together will house over 130 individuals and 60 families.
• the Pool Toss once again lived up to its reputation as the wackiest fundraiser in town.  Raising $275,000 has never been so fun, with people like SF Ballet Executive Director Glenn McCoy ACT Artistic Director Carey Perloff, and Accenture CEO Steve Wilcox dressing in costume, and SF Planning Director John Rahaim wrapping himself in red tape.

The Continuing Push to Build a Stronger Organization
TNDC also undertook important internal work in the past six months.  To better gauge and communicate our performance, we have developed a simple and comprehensive “dashboard” capturing key measures of our work.  A strategic planning committee meets bi-weekly to keep living the five-year Plan that was completed a year ago.  And in addition to generating 5-year planning budgets to maintain an understanding of our financial status, we began work on nearly $2 million of capital improvements in TNDC’s existing portfolio, largely paid from building reserves.  This is particularly important in light of TNDC’s responsibility for the long-term physical integrity of $200 million of property.

Our Stakeholders
We count among our key stakeholders some 1,500 people, ranging from donors to public sector staff to community leaders to elected officials and beyond.  It is only by virtue of your support – be it financial or otherwise – that the organization continues to thrive.  But we bear in mind that TNDC exists not for its own sake, but to fulfill the promise of its mission:  to provide affordable housing and support services to low income people and to make the Tenderloin a better place to live.  We thank you for doing your part to help make that vision a reality.

Sincerely,

 

Donald S. Falk
Executive Director