* Homeless Youth doubles in recession: Minneapolis Star & Tribune Article:
http://www.startribune.com/local/north/91566694.html?elr=KArksUUUycaEacyU

As needs in the city rise – We have been given an Incredible Opportunity to be part of the solution:
Bank Foreclosed Building is offered to Source for $85,000 (1/3 of $269,00 the 2009 asking price)

OverView

1) Need for Transitional Homes
....... – Recession Doubles Homeless Youth & Teen Prostitution Numbers
+ Recession Reality: Homeless Youth Doubles in Metro Area in Past Year – Transitional Homes in
greater need, but less available:In 2009 it was reported that MN had 47,000 homeless children under
18 & 20,000 Homeless Youth (20 & under on their own) – the largest state per capita. It was recently
reported by the Minneapolis Star & Tribune that homeless 18-21 year olds have doubled in the last year. Families under financial stress lead to more dysfunctional homes and many older teens find themselves on their own, fending for themselves. The number one cause of Teen Prostitution is homelessness. The reality is that in a recession there is more need, but sadly, fewer resources available. Transitional homes & resources have been very effective and in high demand – although very scarce for years. Now when they are needed even more, fewer are available.

2) Limited Resources for Victims of Sex Trafficking / Prostitution
....... - Partnerships in Housing
+ MN is reported to be an international hub for prostitution and sex trafficking. The largest porn sites
in the world are based in MN. 1 of 10 teen prostitutes arrested in Los Vegas are from MN. It is a
multi-billion dollar industry. It is as illusive as it is massive.

+ As awareness has grown over the last 5 years, more outreach has been present. This however
has revealed the incredible lack of Transitional programs, communities, and Homes needed to help
individuals with the incredible task of making a break from the past and setting a foundation for
the future.

+ Source has offered Transitional Homes since 1995 to marginalized young people. We have found
effectiveness with our 6-12 month program based on the components of 1) Affordable Housing,
2) Community of live-in role models & 3) life skill/addiction recovery program.

+ Partnering to be more effective: The on-going housing would be a partnership with Source,
providing the Affordable Housing & Role Models, and other agencies that are doing direct outreach with those in sex-trafficking & prostitution.

3) Self-Sustaining: Provide Facilities less dependent on future donations
....... - Residual income from rest of building will support Transitional Homes Apartment
+ It is a unique building that is zoned to be able to have a combination of commercial and residential
(this is rare). We have done the preliminary work with architects and contractors to come up with an
optimal plan that will allow 3 apartments (2nd floor) & 8 studio/offices (1st floor). The location adjacent (actually just 8 feet), to the Fallout Art Coop building makes it ideal to be able to expand both housing and studio rentals. In fact there is already a sound studio in the building.

+ *Residual Income: It is one of Source’s goals to be 50% self-sustaining. Through “Win-Win” initiatives that 1) serve our mission of reaching out & empowering individuals to overcome – while 2) bringing in residual income (primarily employment & rental initiatives). The “Annex” building will be able to cash-flow and support the budget to allow us to provide an apartment for a Transitional Homes Partnership.

+ The other apartments and studios in the building not only bring in residual income, but also provide a community of role models that are in close proximaty and provide a community of
encouragment & support that is an essential asset to the life skills program.
* Income/expense projections available upon request

How Can We Make this incredible opportunity a reality?
....... - Bank Foreclosure: Only gave Source limited time to act
1) $42,000 needed for down payment by No 16th
2) Renovation & Construction Volunteers Needed in Dec-Feb

Annex Building:
• $42,000 downpayment
• Deadline Nov 16th
• Adjacent to current facility
• Bank dropped price from $269,000 to $85,000
• $210,000 Total – Purchase ($85k) & Renovations ($125k)

Bank Foreclosed Property gives limited time to secure financing
Bank Foreclosed Building is offered to Source for $85,000 (1/3 of $269,00 the 2009 asking price), however bank has given Source a short window to be able to secure financing – October 2nd, 2010. Purchase agreement was signed August 1st. It took 5weeks of meeting with Architects, the city, & contractors to confirm blueprints, zoning of converting offices to residential, and costs. We now have less than a month to secure financing – which is an incredibly short window of time.

1) $42,000 needed for down payment by Nov. 16th
- DownPayment: $42,000: "2 bucks & 2 friends" we hope to get 10,000 people to donate $2 or more

2) $168,000 after down payment
- $168,000 remaining, we hope to recieve in pledges and donations of $50 to $20,000 or more after downpayment is secured. The business plan still allows us to be able to have the facility cash fow and be self-sustaining if we only get the $42,000. If we would be able to pay off the rest of the purchase and renovations it would allow us to have more monthly cash flow for programs.

3 ) Renovations & Materials
+ Volunteer Labor & Material Donations this fall can significantly reduce the cost of the renovations. We will be working with
contractors that will be overseeing the project and allow a variety of skills and experience (see details below)
+ 168,000 . Our prayer is that we would see a majority of the total cost reduced and not have to finance. This will contribute to
an organizational self sustaining goals and have less future budgets dependent on donations

Benefits & Networking Lunches/Coffees
+ October 2nd, 7pm: Annex Kickoff Rally Benefit @ the Fallout Urban Art Center
+ November 2nd, 7pm: Campus Rallies @ Mulitple Sites (web cast from the Fallout Urban Art Center)
+ November 16th, 7pm: Annex Wrap-up Benefit @ the Fallout Urban Art Center

+ November 20th: Source Annual Banquet
+ Sept-November: Networking Coffee / Lunches (see web site or contact us for dates)

How to get involved?
Spread the word: Benefits & networking Lunches
+ Music & Art Benefit to be hosted at the Fallout October 2nd, Nov. 16th & the Source Annual Banquet November 20th. Come attend, spread the word to your network, Promoters (helping spread the word), artwork, & silent auction items all needed.
+ We will be hosting networking lunches/coffees through September (& beyond). See web site for details
+ Host your own benefit/house concert. We would love to come in and share about the overall vision and specific project

Prayer
+ Join us in praying. We have a record short amount of time to generate funds & renovation volunteers. Our heart is that this is
a testimony of 100’s of partners & churches investing to make an impact.
+ See dates on web-sites for corporate prayer times, including Saturday mornings this fall

Finances:
+ Consider giving a one-time gift or year end pledge (see details above)

Renovations Groups & Building Material Donations
+ October through the end of year will bring Renovation Cost come down significantly. Saturday workdays & other times can be
scheduled. HVAC, Electrical, Plumbing, Framers, & Finishers of all skilled (or unskilled) levels are needed

Prayer & Partnerships:
We go forward with this initiative a bit overwhelmed with the short amount of time all this has to come together. We have 30 days to do what needs to be done in what would typically take 6-12 months. We continue to be in direct contact with such large needs in our own back yard, our own city. Our love for “the least of these” in need combined with our passion for God’s kingdom allows us to step out and pursue initiatives that few are doing. This specific building has been on our radar and in our prayers for over 12 years. Peter first entered it in 1997 to connect with Homeless Youth that were squatting in it.

We believe God has given us a vision and a great practical plan to provide the un-going future cost. This building will be used to partner with others to provide many with the resources to make a break from the past and set foundations for the future. We also are excited to extend the invitation for others to partner with us in being generous and making sacrifices to make this a reality. We could not do this alone and we are encouraged to see God bring together many that desire to see the Kingdom advanced.

Blessings
Peter Wohler
Director Source, 1995 - present