Former congressman Tim Penny to retire from southern Minnesota nonprofit

Former U.S. Rep. Tim Penny plans to retire later this year from the economic development foundation he’s helmed for close to two decades.

Penny announced Monday he plans to step down as CEO of the Southern Minnesota Initiative Foundation. He plans to stay on as the foundation board searches for a new CEO, then transition out of the role over the next few months.

“Leading [the foundation] has been one of the greatest honors of my life, and I am deeply thankful for the opportunity to contribute to the vibrant communities we serve,” Penny said in a statement. ”I will remain connected to the Foundation as an ambassador, trusted advisor and friend, continuing to offer my insights and support in whatever ways I can.”

Penny served in Congress as a centrist Democrat from 1983-1995, then ran for governor as an independent in 2002. He also served as an advisor to then-Gov. Jesse Ventura’s administration. He joined the foundation in April 2007 as its head after a stint at public affairs firm Himle Horner and a fellowship at the University of Minnesota’s Hubert H. Humphrey School of Public Affairs.

The Southern Minnesota Initiative Foundation is one of six Minnesota-based foundations started by the McKnight Foundation during the 1980s farm crisis to help boost greater Minnesota’s economic development.

The foundation in southern Minnesota offers grants and development programs for businesses, child care and community revitalization, among other issues. It has put more than $170 million toward southern Minnesota communities since 1986, dedicating about $5 million annually.