Leadership shift marks new chapter for The Industrial Commons in Morganton

A leadership change Burke County’s most visible nonprofit economic development organization signals what its board describes as an evolution in strategy as The Industrial Commons prepares for its next phase of growth.

Based in Morganton, The Industrial Commons (TIC) eight-member Board of Directors voted Feb. 23 to dissolve its co-executive director model and appoint co-founder Molly Hemstreet as interim executive director.

The move follows the Jan. 30 sudden departure of co-founder Sara Chester, who had served alongside Hemstreet in the shared leadership role since the nonprofit’s inception in 2015.

In a written statement dated Feb. 23, the board said the change comes as the organization “continues to grow and expand its work” and positions itself to carry forward its mission of advancing “a diverse working class through locally rooted wealth” and strengthening the communities it serves.

The board did not elaborate on the specific strategic changes that led to the dissolution of the co-executive director model. Its statement expressed gratitude for the “dedication of its leadership, staff, partners, and supporters” and emphasized continuity in mission and programming.

“This was a board decision,” Hemstreet said. “We have put a lot of thought into (this). .... We’re really excited about the direction of the organization and the good things we can bring to our county.”

Chester said she could not comment on the development. Hemstreet.

TIC Board Chair Debbie Sigmon said she couldn’t comment beyond the TIC statement.

Hemstreet, who now serves as interim executive director, has long been a public face of the organization and its efforts to reshape the regional textile industry through community ownership structures and processes where materials are reused, repaired, and recycled instead of being thrown away.

The board’s statement highlighted more than $30 million in current investments in manufacturing facilities in Morganton. That includes renovations to its Hopewell Road headquarters and environmental remediation, as well as planned new construction at the former Drexel 3 and 5 site in Morganton, expected to begin in fall 2026.

Combined, those projects would return more than 200,000 square feet of manufacturing space to productive use.

Planning is also underway for a 10-acre parcel on Dixon Street north of the Drexel site that would create 20 to 30 units of workforce housing aimed at working-class families seeking a path to homeownership.

In addition to facilities investments, TIC has expanded its workforce development initiatives. In the past year, nearly 5,000 public high school students across North Carolina were enrolled in the textile curriculum supported by the organization, according to the board’s statement. Eighty-five Career and Technical Education teachers received training, and more than 200 workers completed customized industry training programs.

The leadership transition comes amid dramatic financial growth for the nonprofit over the past eight years. IRS 990 tax filings report revenues of $8 million in 2024, up from $102,143 in 2017.

By 2018, revenue had grown to more than $1.3 million. After fluctuations in 2019, the organization reported $3.47 million in revenue in 2020 and $4.55 million in 2021.

In 2023, revenue surged to $11.6 million, driven largely by contributions, which accounted for more than 94% of total revenue that year. Net assets climbed to more than $15.7 million. The most recent available filing for 2024 shows net assets of $20.16 million.

Contributions have consistently made up the majority of the organization’s revenue, supplemented by program service income and investment income. Executive compensation has also increased over time, reflecting the organization’s growth.

In 2018, Hemstreet reported compensation of $31,384 and Chester $10,500. By 2024, Hemstreet’s reported compensation was $124,125 and Chester’s $107,925, according to IRS summaries.

In its 2024 Annual Report, TIC stated it began reshaping its internal structure as part of what leaders described as an effort to ensure sustainable growth.

In the report, then-Co-Executive Directors Sara Chester and Molly Hemstreet wrote that, “To meet our vision and accomplish our goals, TIC worked this year to build an organizational structure to foster leadership and ensure sustainable growth well into the future. We said goodbye to the ‘Pie’ and crafted a new framework, called the ‘Field Guide,’ to organize the Programs and Enterprises of our ecosystem.”

The shift was intended to foster leadership development and position the organization for long-term stability as it expands its work.

For Morganton and Burke County, TIC’s projects represent both economic ambition and a test case for whether nonprofit-led industrial revitalization can take root in a region long defined by the rise and fall of textile manufacturing.

With new construction planned, workforce programs expanding and a leadership structure now consolidated under one interim executive director, The Industrial Commons enters its second decade at a scale far larger than when it began.