By GINA KINSLOW
GLASGOW — A local farmers’ cooperative is looking to open a storefront soon.
Members of Green Market Inc. are hoping to locate in a building on South Broadway in Glasgow. Whether that happens will depend on on how much capital the cooperative can raise.
The cooperative estimates start-up costs to be around $297,000.
According to an e-mail about the cooperative’s recent annual meeting, it has less than $12,000 in the bank and $3,300 in outstanding member equity from cooperative owners who are on payment plans.
The cooperative is also using what it refers to as “source monies” on professional fees, such as the feasability study, the sources and uses budget, the financial proforma, Web site construction, brochures and postage. The cooperative has raised $40,000 in capital.
Kimberly Page, president of the cooperative’s board of directors, said the cooperative has recently launched an owner/loan program to help build additional capital. The owner/loan program allows the cooperative’s board of directors to borrow money from the cooperative’s owners.
“As a coop we have to have a large percentage of our capital through our owners. Part of that is through the sell of common stock,” she said. “We’ve tried to make that feasible for everyone.”
The cooperative hopes to raise $120,000 in owner loans.
Through the owner/loan program the cooperative’s board of directors can borrow from $2,000 to $9,999. Interest rates range from zero to 4 percent.
“Our owners can choose at what interest rate we will pay them back,” Page said. “Anything over $10,000 can receive a 5 percent rate.”
At one time the cooperative’s board of directors were hoping to have a cafe or deli, plus sell grocery items.
“We’re downsizing a little bit. Just with the economy the way it is, the board decided starting small and working our way up would be the best thing to do,” she said, adding the space the cooperative’s board of directors is looking at is only big enough for them to offer groceries.
Page said the cooperative is still planning to offer bulk foods. It is also planning to sell only local meats and milk.
“We feel like Kentucky, in our area specifically, we have enough producers that we wouldn’t have to go outside our area to purchase those things,” she said.
The cooperative will also offer customers local produce.
“During the off season (the selection) will be a bit more limited,” Page said, “but in the peak season we see no reason why we can’t have strictly local produce.”
Owners will receive discounts. To become an owner, a one-time fee of $200 is required. The cooperative has just under 200 owners.
“Every owner helps to build capital in Green Market,” she said. “We anticipate moving forward and we’re excited. We want the community to be excited and build the momentum.”
For more information, visit the cooperative’s Web site at www.greenmarketcoop.com
