June 1st Update

[Greg Fisk]

Hi All,

Just wanted to send out a little update on things. Dennis has reminded us that the "drop ded" date for A&P is now set at Sept. 8th, so the clock is definitely ticking. And, Dennis, thanks for the reference to Fred Sayre. I will definitely get in touch with him.

I have done a bit of research on incorporating a co-op, and Andrew Crow (Uof A, Cooperaive Development Program)  has helpfully supplied a copy of the Fairbanks co-op's bylaws, which we should be able to easily modify to our purposes. A couple of us have been thinking that the way to get this rolling is to simply go ahead and incorporate so that start raising memberships and lend some "reality" to this effort. Once we had sufficient numbers we would then have a general membership meeting, elect a full board, etc. Meanwhile, all member monies would be held in an escrow account, and would be returned if we can't get sufficient numbers. I'd like to get the sense of the group. Should we "go for it"?

I have decided to attend the Consumer Cooperative Management Association meetings in Philadelphia in mid-June. Andrew Crow says it will be a great networking opportunity and a chance to meet people with resources to help us. He has already put me in touch with Stuart Reid of the Food Co-op Initiative. Andrew and I both e-mailed Stuart with info on the Juneau situation, and the following is his reply received this AM...though you might find it interesting:

"Greg and Andrew,

The situation in Juneau sounds like it has a lot of potential for a successful co-op conversion. By conversion, I mean the acquisition of an existing business by new cooperative ownership, as opposed to opening a new retail store from the ground up. We have worked with a few projects like this and they have a lot of advantages, so long as the current owners are supportive and willing to wait for the co-op to build its member base and capital. In your case, the building owner may need to take over operations from the chain for the interim. It is much better if the operations can continue and customers do not establish new shopping routines.

44,000 sq. ft. is much larger than most retail co-ops. With your unique competitive market and diverse clientele, that might be appropriate. However, a professional market study is needed to determine your sales potential and help identify potentially superior sites. You can do a lot of business in 10-20,000 sq. feet and greatly reduce your startup costs and operating budget. In Fairbanks, the co-op negotiated the lease of one section of a former grocery store; possibly something for you to consider if there are other viable and compatible tenets.

It is typical for member equity to reach only 10-20% of the total startup budget. Additional funds are then raised through member loans or preferred shares sold to members, and bank financing. The latter has become increasingly difficult, but could be a bit easier when financing the acquisition of an existing business. Another option is for the current owner to finance all or part of the sale. Some development grant funds and low-interest business loan programs may be available through the USDA or local economic development agencies.

Your planned store tours and attendance at CCMA should give you more ideas and insights than you can imagine-- it's a great way to build your vision of what a co-op in Juneau could be and to make the connections to help make it happen. Food Co-op Initiative will have an information table and our staff will be participating in many of the events-- I'm sure you won't have any trouble finding me! I look forward to meeting you and finding out more about your opportunities.

Stuart Reid

Food Co-op Initiative"

Stuart's comments about store size echo opinions expressed by Tim Whiting, one of the owners of Foodland before it was sold to Ben Williams (A&P). Tim's thought was that a well designed and managed store in the location should be about 25,000 to 30,000 sq. ft. rather than the current 44,000. His comments on financing issues were also very interesting, and I look forward to exploring those with him further, and will report back to you.

Regards...any enjoy the brief bit of sunshine.

Greg Fisk

.

[larry talley]

Greg (or others), any word on other grocers considering purchasing the
Juneau A&P? Or is that still a complete unknown?

Thanks in advance for any information.

If there is still no sign of a pending sale to another grocer, then I
(reluctantly) say let's go for it. Downtown, Thane, Douglas... all
need a grocery store. Thanks so much for continuing to lead this
effort.

Larry Talley

[Judy Crondahl]

I'm with Larry --Judy Crondahl

[kimmet...@yahoo.com]

I talked to an employee there a couple days ago and he said there's a group looking at it next week. 

Sent from my iPhone

[Patricia Ware]

I think it would be really helpful to get a firmer update either from the agent representing the seller (John Williams) or the owners themselves as to what they are willing to do (in terms of working with a potential co-op group) and what might currently be on the table. The need for a full service grocer downtown is painfully clear-- what appears less so is what the owner may already have in the works.

If there is not really a viable option for someone to occupy the space, then it would seem prudent to talk to them directly about the idea/plan for a potential co-op model and ask if they are willing to participate in any manner. Many of those options have already been discussed and include those put forth below.

In general, I strongly support the need for those of us downtown to do something to "make it happen." But I am a bit nervous about moving ahead on things without a clearer understanding directly from the horse's mouth as to what is already on the table.

Greg and others: Thank you again for all your research and work. If we do decide to push ahead, I am willing to assist/volunteer.

---

CC: juneau-f...@googlegroups.com
From: kimmet...@yahoo.com
Subject: Re: June 1st Update
Date: Fri, 1 Jun 2012 11:00:21 -0800
To: juneau-f...@googlegroups.com

[Dennis Harris]

On Fri, 01 Jun 2012 09:08:28 -0800, Greg Fisk wrote:

> I'd like
> to get the sense of the group. Should we "go for it"?

I say go for it and put the membership fees in escrow. I'm
willing to risk a little money to ensure that we have a co-op if
no one else is interested in taking over the store.

Fred Sayre told me that a successful store in that space could
serve downtown well and lure shoppers from other areas that work
downtown with much less space.