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A Director's
Chair: Financing Our New Store
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by Kyle Lawrence, Chair
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One of the great privileges
of participating in our cooperative business is the opportunity to live
our mission and values each day. One of the cooperative principles that
distinguishes us from most other retail businesses is the economic
participation of our members and shareholders. Never has this
cooperative principle been more apparent than in the fundraising
efforts for our new store.
One of our most important goals in financing the project is to have as
much participation by our members and shareholders as possible. A great
way to contribute is what we are all used to--each time we work or shop
at the Co-op, we are building a thriving and financially sustainable
business. Honest Weight's financial strength allows us to contribute
over $1 million of our cash to make the new store a success.
However, our budget to purchase, construct, equip and operate the store
of our dreams is over $13 million. Our local lenders will be providing
the majority of our financing, but it is not possible for us to take on
a project of this size without a tireless fundraising effort.
To that end, we are excited to offer several programs by which each of
us can contribute financially to our project. Our innovative Building
Blocks program will be launching in early August, and will help us to
take the funding for our new store to the next step. Our Building
Blocks will allow you to make contributions to our capital reserves in
increments of $25, $50, or $100 in exchange for goods valued at 20%
more in 2016.
Our loan campaign is another way for our members and shareholders to
help finance the new store, while receiving interest rates that are
better than CDs or savings accounts. As of mid-June, we have received
nearly $600,000 in loan commitments from our shareholders! You can
follow our fundraising progress on the giant carrot located between the
Cheese and Bulk Departments.
To learn more about the Building Blocks or our shareholder loan
program, visit our website, or ask us the next time you are in the
store. Of course, we are also pursuing a host of other financing
sources for the project. These run the gamut from agencies that offset
our costs for Leadership in Energy and Environmental Design (LEED)
certification, to our applications for federal stimulus funding. One of
the promising funding sources is through a federal tax credit program
called New Markets Tax Credit, which could save us over $1.5 million.
We remain committed to financing the new store in a way that
strengthens our organization and encourages the participation of all
our members and shareholders. After all, our investments bring back
great returns to our community far and wide, and our risks are shared
by us all.
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