Board considering termination of our lease at 225 E. Main St.

[mica.cardillo]

Dear Supporters and Members,

Since we began the experiment in the late fall of 2012, our facility at 225 E. Main St. has served a vital roll in forming what is known as the Rogue Hack Lab community.  This space has provided members with the ability to host and attend community events at any time of the day or night, meet new people, learn from each other, work on projects together, and expose the wider community to the hacker / maker ethos.  Many of you have contributed and made this possible, and it has created much positive impact.

Over the past eight months, however, our membership base of financial contributors has declined to the point where we're operating the current facility at a significant loss.  It become clear that we need to evolve our approach.  In November, we began seriously asking the question, "what can we do differently and how should we proceed."

Over the past three months, we've been gathering feedback from members regarding the future. We've interviewed members that we've lost.  We've had conversations with other hackerspace/makerspace founders across the country and learned that we're not alone; most hackerspaces have gone through the phase we are currently experiencing.  We've investigated what types of partnerships with other community organizations would be plausible and under what conditions. There were a variety of perspectives shared and we learned a little about what some community members are theoretically willing and able to support financially.

Some of the themes from those investigations include:

1. Some said they were looking for shared space and access to equipment not available in their own garages.
2. Low-bar educational programs for the wider community including topics such as "How does the internet actually work" and "Internet security for everyday people" and "coding my own website."
3. Intensive "code school" style study programs where learners can choose rapid paths to skills that today's tech companies are looking for.  RHL would provide proximity/access to mentoring from software engineers and other related technical areas.
4. An appealing shared work environment for freelancers, remote workers, and tech startups.  Essentially, growing the incubation component.
5. Carrying capacity for all makerspaces ranges between 75-150 sq ft. per member.  There are very few exceptions to this fact and the exceptions don't make sense here in Southern Oregon.  If we're going to be successful, we should aim for no less than 75 sq. ft. per member and stick to a revenue model that supports that calculation.
6. Programs (workshops, classes) are a vital component of most member-operated makerspaces.  First of all, they draw in new audiences and represent the most important marketing strategy for any makerspace.  Classes generate a modest source of side income for those members who are most likely to be contributing $100-$200/month and countless hours towards the time they volunteer to maintain and operate the space.

However, the process of trying to find a target facility, establish new programs, and put together a fundraising campaign is a pretty big challenge; one which takes both time and resources we might normally allocate to our own projects and business startups.  Although we've modeled some potential scenarios, there are few facilities available in downtown Medford that both meet the varied needs and interests of members and provide us a path to growing membership.

Our current operational costs are $850-$900/month and all of those are fixed expenses. Currently, our revenue from monthly membership dues has dropped as low as $450/month.

Tonight, the Board of Directors will be discussing the possible termination of our current lease.  While some of you have already spoken and provided feedback (thank you!), we realize that others may not have realized the gravity and urgency with which we must address the current challenges.

The Board will likely adopt one of the following paths at tonight's meeting:

1. Move to issue 30 days notice to our landlord.  This means we'd be closing the facility in two weeks and cleaning/clearing out the space in time for a February 8th inspection.   We'd also terminate any automatic member contributions via Paypal, unless the member explicitly opts-in to continuing their contribution.  Anyone who chooses to continue their contributions recognize that funds will go towards future educational/charitable activities or saving up for a new space and a refined business model.  Any keys to the current facility would need to be turned in to the Treasurer before the landlord's inspection.  Some items or materials that were donated and/or acquired through Rogue Hack Lab funds will either be placed in a storage unit (accessed for community events) and/or donated to another non-profit organization. Shared acquisitions which did not directly involve the use of RHL funds (such as the 3D printer) could involve setting up a schedule for sharing the equipment with the idea that we could bring that equipment to community events.

2. We could attempt to delay the termination of our lease to mid-March if we can raise $400 or more in the next week or so.  We'd set up a Paypal link for one-time contributions and select a deadline for raising the target amount.  This may give us the time needed to either increase monthly contributions of current members, or spruce up and rent out part of our space to someone who would like their office co-located with us, and/or identify a new facility that will allow us to better serve and attract new members.

If for some reason we haven't reached you and you have input, please feel free to email bo...@roguehacklab.com, reply to this message, or attend tonight's Board meeting.

Regardless of what happens regarding our current space, we should all be proud about what we've been able to accomplish in the past 2 1/2 years.  Many of you have generously supported the effort with your time and donations and you know you've made a difference. Think about all the learning that has taken place and the new relationships formed. These are the most important outcomes we carry into the new year and into the future.

Thanks for being a part of it.

Mica Cardillo, Treasurer / Board Member