From the Board
Why is the site selection process so secretive?
"Where will the co-op be built?" is the most frequent question board members get asked, and for good reason: we all want to know!
We wish it were as easy as seeing a vacant lot or store for sale and saying "Let's build the co-op there!", but there is a lot more to it. For each individual site being considered, the Site Selection Team has to reference and compare:
The market study, which forecasts sales revenue in regards to its specific location in town.
The pro forma, which compares the costs needed to build or renovate with the estimated sales revenue info from the market study.
The ability of the site to fit the co-op's mission and vision, as well as fulfilling the needs and wants of the owners.
Ultimately, the co-op has to be a financially sustainable business so the profits can be put back into the community to fulfill our vision. While having the store a block in one direction or another may not seem like a big difference at first glance, it can be a make-or-break decision for the co-op's long-term financial viability. This is why each potential site has to have its own market study and pro forma completed to pinpoint differences in financial projections and help guide the decision on where to build.
At a certain point during the process, the Site Selection Team (and the board) will be privileged with the most valuable information the co-op has: its future location. What we want more than anything is to be able to shout from the rooftops "This is where Free Range Food Co-op is going to be built!!!" but we can't do that prematurely because:
Building owners have been known to suddenly up the price on that vacant building, once they knew the co-op was interested. (A developer or commercial real estate agent will help negotiate on our behalf to prevent this.)
Sites fall through, and getting our owners’ hearts set on a site is a recipe for frustration, giving the perception that a “set back” has happened. In reality, co-ops often see several sites fall through for one reason or another before landing on the site that works.
A competitor, once aware of a site suitable for a natural foods store, may decide to put one in faster than we can. It’s happened to other co-ops before.
For whatever reason, we may later learn more information and reconsider which site is our primary choice. We're free to do that until we sign a lease… unless we’ve already set the expectation with members. Then it gets tricky.
For these reasons, there have to be some secrets about the site until every box is checked to make sure it's the right choice. Once the lease or purchase agreement with contingencies has been signed, everyone gets to find out! As soon as we can, we will share the site location with everyone and hopefully by that point we'll be able to safely throw a big in-person party to celebrate with all FRFC owners!
For now, we ask you to be patient with the organizing team as we inch closer to narrowing down the ideal site. It's a slow process but the end result is so worth it! The co-op's continued growth depends on your continued support, so THANK YOU for supporting your co-op by volunteering on teams and at events, engaging with us on social media, and encouraging others to join as owners!
