Stacia Thompson is out as president and CEO of Sherman Phoenix Foundation after nearly two years in the post amid signs of financial trouble at the nonprofit organization.
The board of directors of Sherman Phoenix Foundation, which operates a marketplace for small minority-owned businesses at 3536 W. Fond du Lac Ave., confirmed Thompson’s departure to the Milwaukee Journal Sentinel.
Thompson received nearly $136,000 in total compensation in 2023, the most recent year for which tax records were available — up from $95,608 a year earlier.
Thompson’s exit comes as Sherman Phoenix owes more than $95,000 in delinquent property taxes to the City of Milwaukee and is the subject of a tax warrant from the state Department of Workforce Development for $1,289 in unpaid unemployment tax payments, according to city and state records.
In a statement posted to its website, the Sherman Phoenix board said it’s committed to ensuring the “long-term health, transparency, and sustainability of our organization.”
Thompson’s departure followed “tenant feedback and an internal review of operations,” according to the board’s statement.
The board will take “steps to strengthen leadership and accountability,” it said.
Urban Milwaukee first reported Thompson’s abrupt departure. She left her position on Oct. 9, according to the board.
Thompson became the foundation’s president and CEO in January 2024, according to her LinkedIn profile, after serving as executive director for two years.
In the interim, Romero McCants will lead day-to-day operations while Rashidah Butler-Jackson will assist with transition and continuity. The board will maintain direct oversight as it searches for an interim executive director. But it expects to share updates on its leadership search soon.
“We are deeply grateful to our tenants, partners, and the greater Milwaukee community for your continued patience and support,” the statement said. “Sherman Phoenix takes seriously its responsibility to operate with integrity, accountability, and transparency.”
Records show extent of financial trouble
Records show Sherman Phoenix has been on a financial roller coaster in recent years.
It reported having $23,489 in the bank at the beginning of 2022, but that figure jumped to $281,006 by the end of that year. In 2023, the group’s balance had again fallen to $2,823 at the end of the year.
Sherman Phoenix is behind in paying its property taxes to the city for 2023 and 2024. It owes $23,626 for 2023 and $72,329 for last year on its building, which has an assessed value of more than $2.5 million, according to city property tax records.
The city has turned over the 2023 debt to a collection agency. The Department of Workforce Development filed a tax warrant against Sherman Phoenix in August for the unpaid unemployment taxes.
When reached for comment, the foundation’s board of directors, in a statement, reiterated that the organization is a registered 501(c)(3) nonprofit and legally tax-exempt. The board is working with the city to ensure its exempt status is correctly reflected across municipal records.
“Our work continues uninterrupted, and we remain fully committed to serving the entrepreneurs and community who rely on Sherman Phoenix,” the statement said.
Complex created following 2016 unrest after police shooting
Sherman Phoenix grew out of the ashes of civil unrest following the police shooting death of 23-year-old Sylville Smith in 2016. Protests erupted and several buildings were set ablaze, including the BMO Bank at 3536 W. Fond du Lac Ave.
Two years later, the building reopened as the Sherman Phoenix with nearly 30 businesses. Developed by Juli Kaufmann and JoAnne Sabir, Sherman Phoenix aimed to be an entrepreneurial hub to foster a more inclusive economy.
It has birthed several notable businesses, including TrueMan McGee’s “Funky Fresh” spring rolls. McGee brokered a deal with Palermo Villa Inc. to expand the spring rolls variety and place the product in 150 grocery stores throughout Wisconsin and Illinois.
Siblings Marcia and Marc Taylor first launched Lush Popcorn, a gourmet flavor-infused popcorn company, in Sherman Phoenix. Now they have a standalone business in the Riverwest neighborhood.
Sherman Phoenix will host an anniversary fundraiser, Phoenix Forward, on Nov. 29. The foundation billed the event as a “celebration of resilience, entrepreneurship, and community renewal.”
Dan Bice of the Journal Sentinel staff contributed to this report.
This article originally appeared on Milwaukee Journal Sentinel: Sherman Phoenix CEO leaves amid signs of financial trouble at the Milwaukee business hub
Reporting by La Risa R. Lynch, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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