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Making the Move
by Matthew Stanley & Leon Johnson
Our cooperative has surely seen its share of change. Over several decades, the community has witnessed the store’s development from a small buying club to an incorporated cooperative that democratically serves an entire region of members. Once again it is time for the Co-op to embrace change.
The Logistics
The lease on the Co-op’s store front (Norblad Building) expires December 31, 2008. This summer the Co-op Board and General Manager started lease renewal negotiations with the landlord and discovered the building had been sold. The new owners, Brian Faherty and Paul Caruana, also own the Shark Rock Center at the southwest corner of 14th & Exchange Street and are two of the three owners of the Commodore Hotel. These properties are currently being reconstructed and renovated.
Current rent on the Duane Street store is below market, and the new owners want a significant increase. Not only is the rent going up, but the Duane Street store suffers from deferred maintenance. The Co-op faces costs for repainting the store interior and properly ventilating the basement. Poor ventilation causes compressors to work inefficiently and is shortening equipment life. In addition, the new owners need to fix the recurring problem of water leakage from plumbing on the second floor. This work could result in business interruption and possible lost revenues for the Co-op.
To get a sense of the rental market for storefront property, we looked at the availability of other properties. The focus was on rent rates, increasing store size, more efficient use of space, and obtaining customer parking. It quickly became apparent that the Shark Rock Center space at 14th & Exchange Street was the best fit for the Co-op’s needs. The Co-op will be renting half of the Shark Rock building, approximately 3,000 square feet. Negotiations with Faherty and Caruana on leasing the Shark Rock property are now going on.
In order to fund relocation costs, a number of Co-op members have committed to lend funds, at below market rates, to the Co-op. In addition, cash from previous equity drives and proceeds from the sale of the Co-op’s interest in Friends-Astoria Community Store, LLC will be used to fund the move and purchase equipment and fixtures.
The Big Picture
Relocation to the Shark Rock building will certainly be an immediate and dramatic improvement for our Co-op. It will be the result of much hard work and years of community supported development. Our relocation will also reflect a continuation of the momentum that we have created over the last six months.
As we consider the immediate and exciting future, we must also understand why relocation serves as a strategy for long term store development. I’d like to think of it as a holistic long-term development plan that we are undertaking. Our new and expanded offering will aim to increase membership and create an overall wider shopper audience. The space, and improvements like parking, make possible these opportunities for the Co-op and thus offer our store a future characterized by sustained long-term growth.
As Natalie Paulson mentions, the improvement also results in a healthier work environment for our staff. It will definitely be a work place we can be proud to come to everyday. Furthermore, as sustained growth occurs, employees can work toward earning livable wages. In terms of a holistic outlook, fulfilled staff create an environment that naturally produces excellent customer service based on positive attitudes. The move creates a full-circle effect, one that ultimately aligns with the cooperative mission of a sustainable community business based on healthy food.
Our relocation also coincides with the development of our corner of downtown Astoria, the businesses that make up the 14th and Duane Street area. Further development is planned that will only serve to enhance the synergy among the businesses in our area. We are looking forward to being in this leadership position during this exciting time for our store. This is a step forward for the entire Astoria community.
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