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Report on the Creekside Co-op Members Meeting – March 15, 2010

It was a dark and stormy night…the Ides of March.  The place was Curtis Hall where 70 of your fellow members of the Creekside Co-op gathered for one hour to hear an update from the Board that covered the following:  1) What we’ve been doing; 2) The path forward; 3) CreekSide Farmer’s Market at High School Park; and 4) Q&A.

Most importantly, there was a discussion of all current options for funding the start-up of the CreekSide Co-op.  Each of three viable options was discussed in detail and the following comparison of estimates was presented:

	Developer Acquisition	USDA Loan Guarantee	USDA Direct Loan
Project Cost	$3.5 MM	$3.5 MM	$3.7 MM
Annual Cost	$300,000 - $336,000	$324,000	$216,000
Fixed Interest	NO	NO	YES
Loan Term	12 year loan Rent	22 years	30+ years
Member Loans	$200,000	$150,000 - $400,000	$150,000 - $400,000
Doors Open	11/10 - 12/10?	12/10 - 2/11?	12/10 - 5/11?

The deciding factor among the options for the Board was Annual Cost.  This has the greatest influence on the prices that members will pay for food at the Co-Op.  The annual cost of a Direct Loan from the US Department of Agriculture would have an annual cost approximately 33 percent lower than the other two options. This option is also the only path forward that provides a “Fixed-Cost” option that will provide the future of CreekSide Co-op a known cost of financing vs. the un-known of rising interest rates and/or rents. Even though this option would delay the opening of CreekSide Co-op by several months when compared to the other options, the Board believes that the significantly lower annual cost is worth that wait.

The very arduous loan application process has begun and we have already received from several government officials much encouragement and cause for cautious optimism regarding a favorable outcome.   In addition we have submitted a Letter of Interest for a $100,000 grant from the Wallace Healthy Urban Food Enterprise Development (HUFED) and have submitted an application for $450,000 “near-zero” interest loan from the Department of Community and Economic Development (DCED). 

All financing options require us to implement a member loan program in order to raise up to $400,000 as part of the overall funding.  More details to follow in a subsequent communication.   In addition, to meet the funding shortfall between now and loan closing we’re asking each member household to make a $50 additional pre-payment of future equity.  Another option is to have every member introduce one more household to the Co-op.  More details will be coming this week via email and the CreekSide Co-op website.  There were also a variety of member-initiated creative options, suggestions and questions for meeting near-term expenses that include the following:

• How can we encourage members to contribute more equity or to make outright donations/loans to the co-op?
• Should we solicit letters from members to elected officials?
• How do we expand the e-mail lists or invite other groups to send Co-op news to their members?
• Should we send volunteers door to door in a membership/fund raising campaign?
• How about a member table at the Farmers' Market?
• What about gift cards towards future purchases at CreekSide Co-op as a way to raise money?

These suggestions will soon be considered for action by the Board.

Starting next Tuesday, March 23^rd from 5:00 pm - 7:30 pm and continuing monthly as we move ahead with funding, construction and membership growth, there will be an “Ask CreekSide” evening at the Co-Op Office (former Elkins Park Pharmacy).  Board Members and our General Manager will be on hand to answer all of your questions.

In another major positive development, the Board announced that the CreekSide Farmer’s Market at High School Park will begin on Sunday April 11th, 10:00am – 2:00pm and continue weekly through October.   Clearly, there is a lot happening and these weekly E-mail communications will continue to keep you informed about the latest developments.

Lastly, the spirit of Monday’s meeting was upbeat and positive.  The Board is so grateful for the support, energy and encouragement that we continue to receive from the Creekside Co-Op community.  It is your confidence and positive feedback that remind us every day about the mission that we have been empowered by you to accomplish.  It remains our privilege and our pleasure to be doing this work on behalf of the community.