Co-op Expansion Update

Dear Co-op Owners,

I am excited to share some wonderful news about the future of your Co-op!

After many months of planning, collaboration, and patience, we have officially cleared one of the final major regulatory hurdles for our expansion project. The New York State Historic Preservation Office has completed its review and issued a finding of No Adverse Impact, allowing the project to move forward. This milestone represents a tremendous amount of work behind the scenes. We know the process of expansion has taken longer than many of us anticipated, and we are deeply grateful for your patience and continued support throughout.

As many of you know, our vision is to create a larger, more accessible Co-op that better serves our community for generations to come. The new store will provide expanded grocery selections, additional space for local products, improved prepared foods, improved accessibility, and a welcoming gathering place for our Owners and neighbors.

With this important review now complete, our team can focus on the next phases of the project, including final design work, securing financing, and preparing for construction. While there is still work ahead, we now have a clear path forward and are closer than ever to making this vision a reality.

One of the most important pieces of the project ahead is raising the local capital needed to complement the grants, loans, and other funding sources that will make this expansion possible. While we have raised nearly $2 million in grant funding to support the project, our project is estimated to cost around $5 million to complete. Although the Co-op will rely on bank financing for a significant portion of this cost, reducing the amount of debt we take on will help strengthen our financial position and support the Co-op's long-term success.

Over the coming months, the Board of Directors and management will be exploring several ways for Owners to invest in the future of the Co-op. One option under consideration is a Preferred Share offering.

Unlike an ownership share, which establishes your membership in the Co-op, preferred shares are an optional investment that allows Owners to provide capital to help finance major projects such as our expansion. Preferred shares do not provide additional voting rights or control of the Co-op. Instead, they function as an investment in your cooperative. Depending on the final structure and regulatory approvals, these shares may earn a modest annual return and may be redeemable under terms established by the Board.

No decisions have been made, and no investment opportunity is being offered at this time. We are currently evaluating whether a preferred share offering would be an appropriate tool for our Co-op and are learning from other cooperatives that have successfully used this approach to finance growth while keeping ownership in the hands of their communities. 

This effort also reflects one of the International Cooperative Alliance's Cooperative Principles: Member Economic Participation. Cooperative Principle #3 recognizes that Owners contribute equitably to the capital of their cooperative and help build the resources needed for it to grow and serve future generations. Rather than relying solely on outside investors, cooperatives are strengthened when their members invest in the businesses they own, ensuring that local capital continues to benefit the local community.

To help with campaign planning, we ask that you please take a few minutes to complete our Capital Campaign Interest Form. As our plans continue to develop, we will share more information about the Capital Campaign and other ways Owners can participate. Our goal is to create opportunities that are transparent, accessible, and aligned with our cooperative values.

Projects of this size don't happen without an incredible community behind them. Your continued patronage, ownership, encouragement, and belief in the Co-op have brought us to this point. Every purchase you make and every investment you make in the future strengthens the Co-op and helps ensure it will continue serving the North Country for generations to come.

I look forward to sharing more exciting updates in the months ahead.

In cooperation,

Jessie LaRose, General Manager
Potsdam Food Co-op