Making a case for a food co-op in downtown St. Catharines

It has been awhile since I wrote about the Garden City Food Co-op, the dedicated group of individuals working together to bring a dedicated grocery store to the downtown core.  There has been a lot of activity as of late, so I thought it was time for an update.

The last two years, volunteers from the co-op have been out in public - in particular at the St. Catharines Farmer's Market on Saturday mornings - getting the word out about the venture and signing up new members.  On many Saturday mornings I was one of those volunteers last summer and fall, spreading the word.

To date, the membership is healthy and growing steadily, but more members are certainly needed.  More importantly, those members who have joined are being asked to step up to the plate and help fund the newly-launched capital campaign.

I am mentioning these two rather obvious points and separating them to make clear the stages of building a solid base on which to build our downtown grocery store.  The reason for this relates to a comment I found recently posted on Facebook in response to a news update Karena Walter of the St. Catharines Standard recently posted.

The article spelled out the current situation and the need for the capital campaign to now get underway.  But one person - who obviously saw the post but didn't bother to read the article - posted a snide remark saying in essence "these people have been asking for money for years now...the downtown grocery store is doomed to failure."

I'm paraphrasing here, but that was the gist of the comment.  And it angered me greatly.

First of all, the people behind the Garden City Food Co-op have not been going hat in hand begging for donations here for a pie in the sky idea that has not been thoroughly researched.  Proper due diligence has been done every step of the way, and I can say in my experience this is a very dedicated group of individuals who are in it for the long haul.

Once it was determined a food co-operative would work in downtown St. Catharines, the next stage was to secure enough members through the membership drive the last two years to prove the idea is a viable one and worthy of the public's consideration.

Yes, when you join, you pay a one-time membership fee of $120.  That money goes towards funding the ongoing planning processes of bringing the food co-op to fruition.  If enough members join, there is obvious interest within the community to proceed further.

That is where we arrived recently, when it was announced at the 2nd AGM last month the capital campaign was set to roll out and we needed all hands on deck to make this thing happen.

Now the capital campaign is different from the membership drive.  The latter set the foundation in place on which to build the framework with the former.  Think of it as building a house, if you will, and one can't succeed without the other.  No foundation?  No framework.  It's that simple.

So why are members and non-members alike now being asked to pony up to fund the capital campaign?  Essentially to keep the ball rolling and move the ball further towards our goal of opening the co-op in the near future.

We know the interest is there.  But it takes money to build, and some of that money has to come from the members who believe in the concept.  If the membership is willing to collectively put their money where their mouths are, if you will, it will demonstrate the financial security of the whole idea to potential leading partners.

Those leading partners are the movers and shakers in the community who also share the vision but who invest in viable investment opportunities.

The Garden City Food Co-op is very much a viable investment opportunity.

Okay, let's look at the numbers.  The overall budget for the project is $1.4-million, with the Preference Shares being sold in the capital campaign making up 40 to 60% of that budget.  The funds raised through this campaign will be used towards the renovation and outfitting of the co-op location at 57 Carlisle Street, as well as inventory and start-up costs.

The co-op is designed as a for-profit business and is projected to return a profit by its fourth year of business.  That means investors in the capital campaign should expect to be investors for the long-haul; this is not a get rich quick scheme by any means.

But you will get a return on your investment once the co-operative turns a profit.  How much?

Here's where things get a little more technical, but bear with me.

The community is being asked to invest in either Class A shares or Class B shares.  Class A shares are $5,000 per share paying an annual dividend of 4% once the co-op is profitable.  Class B shares are $1,000 per share and earn a 2.9% dividend once the co-op is profitable.  Both Class A and Class B shares are purchased for a 7 year term.

You can purchase up to 50 Class A and 100 Class B shares, and you can buy a combination of the two if you wish.  You can also purchase shares now and more later in the campaign if you wish.

But don't let those numbers frighten you.  The co-op knows either investment is a big decision for most of us, so even buying a single Class B share is a significant undertaking for a member.  But each share purchase brings us a step closer to making the Garden City Food Co-op a reality.  So don't for a minute think buying just one share will not make a difference.  It will.

The money raised in this campaign will not be used until the end of the campaign.  So in the meantime it is held in escrow until the secured minimum amount necessary is raised to make the project a success.  Should the minimum not be met, the Offering will be abandoned and subscription receipts (i.e. funds raised during the campaign) will be fully refunded.

The capital campaign runs from now until September 1st, so we have a lot of work ahead of us.  Should the minimum amount be raised before that date, all the better.  But it cannot be extended.  September 1st is the cut-off and if the necessary funds are not raised by that date the campaign will be deemed unsuccessful.

But let's think positive here.  We will do it.  And the community will respond as best they can.  I am confident of that.

Last Sunday for example, we held a launch event at Co-Work Niagara in downtown St. Catharines, where the Garden City Food Co-op has office space to plan for the various stages of the birth of the new co-op.

In just two hours, $30,000 was raised in the capital campaign to get things going, making up the first 6% of the campaign goal.  That is a promising start to be sure, but we have a long way to go towards reaching our goal, and that means we need your help.

Every day now, volunteers are calling members to explain the capital campaign and solicit funds to be invested into the project.  I am one of the people known as "closers" - I and my colleagues then go out to meet with the prospective investor, answer any questions they may have, and essentially "close the deal" by signing up the member as a part of the capital campaign.

So if you have not already considered making an investment, now is the perfect time to do so.   We need you!  And each and every member of the Garden City Food Co-op will be thrilled to have you on board as an investor and believer in the co-op concept in our downtown core.

Want to know more?  Go to the Garden City Food Co-op Facebook page or website for more details on how you can help, and consider saying yes when you receive a call.  If you are not already a member, perhaps it is time to consider becoming a member and get involved in making this idea a reality.

I'm just scratching the surface here in explaining what you need to know to become an investor, but hopefully this will arm you with enough knowledge and confidence to take the next step and show your support when the call comes.

There will also be another investor sign-up event on Sunday afternoon, May 1st at Co-Work Niagara and you are most welcome to attend and see how you can help out.

It is going to be an exciting time once the Garden City Food Co-op finally opens.  But right now things are exciting too as we work towards the goal of actually being able to afford to open it.

Come and be a part of the growth and investment in downtown St. Catharines.  We can't do it without you.

Have a great weekend!

April 23rd, 2016.