Frequently Asked Questions
What type of store will this be?
Community Market Cooperative (CMC) will be a full service grocery store with all the typical departments including: Fresh produce, Refrigerator/freezer section, Dry grocery, Bulk foods, General merchandise and a deli with ready to go food. CMC will be managed by a General Manager and will have full and part-time employees. Products will include local foods such as fruits, vegetables, meat, dairy, eggs, honey and value-added products. We will also have bulk foods available such as pastas, flours, grains, and dried beans. A national supplier, such a United Natural Foods, Inc., will supply dry, frozen and refrigerated items, except for those items we can get locally.
Who can shop at the store and who can join?
Anyone will be able to shop at the store and anyone can become an owner by purchasing a Patron Share for $100. Owners may receive Patronage Dividends when the store is profitable, special discounts throughout the year and other benefits that the general public won’t receive. Daily pricing of goods in the store will be the same for owners and the public.
What is the difference between the two types of ownership interest?
The Patron Share is an investment of $100. This ownership entitles you to all the benefits, such as a vote, the ability to be on the Board of Directors or Advisory Committee, discounts throughout the year, the newsletter, special and case order privileges and a Patronage Dividend when the store is profitable. Once the store is up and running the Board will allow for refund of units for anyone who wants to leave the cooperative. This is explained in the Bylaws. Patronage Dividends are a percentage voted upon by the Board and based on how much the owner has spent at the store for a one-year period.
The Non-Patron Investor Unit allows owners and other Iowans to invest more into the store. Each unit is currently $500. There is no limit on how many units a person can buy. These units allow CMC to increase their equity capital without claiming it as income. Only citizens within the state of Iowa can purchase Non-Patron Investor Units.
Since both types of these ownership interests hold voting privileges, it is imperative that we protect the interest of our owners. Therefore, as written in our Bylaws, the owners will always have a 60% majority of the vote. The collective vote of the Non-Patron investors cannot exceed 40%. Both the Patron Share and Non-Patron Investor Unit can be purchased in installments. Voting privileges and dividends will be withheld until the share or unit is paid in full, however other benefits will be available.
Besides purchasing shares, are there other ways to give money to CMC?
Yes. Since M&M Divide is acting as our fiscal agent you can make a tax-deductible donation to them, naming Community Market Cooperative as the recipient. Another option is to participate in our member loan program. This is for owners in good standing, who would like to give a larger amount, such as $1,000 or more. These loans are typically low-interest and do not begin repayment until after the store is open.
How many owners/how much money do you need to make this work?
According to a financial consultant within the cooperative community, we need at least 30% of the total project costs to come from Patron Shares, Non-Patron Investor Units, grants, donations and member loans. Establishing this amount will enable us to procure bank loans to finance the rest of the project. In addition to capital, we must also prove a strong ownership base.
When will you be accepting names of producers and how do I sign up?
We are currently collecting names and contact information from anyone interested in supplying to the store. We are setting up a Producer Liaison Committee, who will be creating our policies and contracts. We are looking for producers who practice organic, certified organic, and Integrated Pest Management farming, including free-range animals, no hormone or antibiotic use, no/low chemical sprays/fertilizers. Producers do not have to be USDA certified organic; but we will prefer those producers who are involved with these practices over conventional producers.
How can I get involved?
There are some exciting opportunities to be involved with our efforts. Our Membership Committee is looking for people to help put on events, send out letters of requests, help put membership and prospective packets together and work towards our membership goals as previously mentioned. Our Membership Committee will eventually put together a group of people who will be responsible for creating store policies which will be approved and adopted by the Board of Directors. Our Producer Liaison Committee will be putting together proposed guidelines for producers, which will be approved by the Board of Directors.
Most importantly we need all our member-owners to help get new members. A cooperative is a unique business model and not something easily explained. If you'd like more information on how to talk about CMC, please call or email us.
