OND/Downtown Durham Opportunity for the Co-op?

Apr 29 2007 - 12:00pm

A group of Co-op members met a few times to discuss the Co-op's options for possibly getting involved in the revitalization of Downtown Durham - On *Sunday, 4/29 there will be a focus group discussion at 1pm* prior to the Annual Meeting the Auditorium at "J.J Henderson Towers, 807 South Duke St.":http://www.google.com/maps?q=807+S+Duke+St%2C+Durham%2C+North+Carolina+27701&sa=X&oi=map&ct=title Please come and participate in this discussion. Use parking and entrance in the back.

*Summary of Co-op options:*

The Durham Food Coop (DFC) is quite small in regards to the population of Durham (over 200,000). For example, larger successful coops exist nearby in Chapel Hill/Carrboro (pop 65,000) and Pittsboro (Chatham Co pop 60,000).

Space is constrained at the current location. Coinciding with this is the fact that downtown Durham is undergoing something of a renaissance and is not served by a nearby grocery. This confluence of facts have led some Co-op members to begin to consider the pros and cons of different scenarios for the DFC.

Four obvious choices present themselves, and are as follows:

{color: blue}# Staying Put - This is the status quo option*
# Relocation - Physically moving to another location in downtown
# Expansion/Split - Opening another Co-op downtown affiliated with the current Co-op
# Create an unrelated Co-op downtown from scrap while working with the current Co-op

Please note that this discussion is currently only a discussion and as a discussion is only in its infancy. Input from other Co-op members is crucial, including other possible options and additional pros and cons.

The pros and cons enumerated so far:

*1. STAYING PUT*

Pros:

* Supports the burgeoning neighborhood surrounding the Co-op
* Due to skillful management, the DFC has begun to shed some of its debt burden and is currently covering its costs
* Building is owned by the Co-op
* Potential for serving the community and surrounding neighborhoods better by adjusting the business model/use of space/line of products

Cons:

* Limited size
* The current location has a limited customer base because of a large dead zone created by Maplewood Cemetery and parts of Duke University
* Equity in building not available
* Downtown neighborhoods remain underserved
* DFC has had trouble staying afloat at current location, and sales have decreased in recent years
* Fuqua/SWCD Quality of Life study of West Chapel Hill Street showed the income of neighborhood residents is so low that the neighborhood cannot support a grocery store (while it could support a laundry mat or a pharmacy)
* The Co-op is dependent on outside sales in an increasingly competitive market
* Competition from nearby groceries, including Food Lion and Whole Foods

*2. RELOCATION*

Pros:

* Bigger space could allow for additional services, attracting other customers who now skip the Co-op because of the need for additional shopping trips
* Downtown community would be better served
* Help in the revitalization of downtown Durham
* Most Co-op members could potentially be better served by increased services

Cons:

* Current DFC neighborhood would be adversely affected
* Would be money and time intensive. The DFC would need to raise additional funds, perhaps in addition to taking on debt
* Finding new building, proper management would require scaling up existing DFC infrastructure, which could be difficult
* This option is particularly contentious and could produce a split in coop membership that would ultimately be fatal to the DFC

*3. EXPANSION/SPLIT*

Pros:

* Both neighborhoods could be served to some capacity, with the potential for the current location maintaining some groceries but also serving as a prepared foods/kitchen location for the other downtown location, or other use for to serve the surrounding neighborhoods
* Local neighborhood groceries promote walking/bicycling access which is much less energy intensive and will help create smaller scale/less car dependent neighborhoods. Such considerations are important as we approach peak oil and as fossil energy use destroys the planet through global climate disruption
* Downtown neighborhood is well served by a locally operated grocery of substantial size. Local farmers and other local manufacturers could be supported on a much larger scale
* A location near the new Farmer's Market would generate foot traffic and allow for Farmer's Market customers to do the bulk of their shopping downtown. Over a thousand people visit the Farmer's Market each Sat when in session (April through November)
* Higher density housing is taking place in and around downtown, meaning a steadily increasing supply of potential coop members, making financial success more likely. A downtown grocery would help promote downtown as a viable place to live
* Downtown is too lightly populated at present to support a chain grocery store. Any potential competition would be restricted
* Many people work downtown, providing additional potential coop members beyond those living in the immediate vicinity

Cons:

* Any expansion would entail financial and organizational burdens
* The success of such an expansion is uncertain
* Downtown is lightly populated at present (although denser than the area surrounding the present DFC)
* The neighborhood surrounding the present Co-op would potentially be less well served if a smaller retail outlet resulted

*4. CREATING A NEW CO-OP DOWNTOWN*

Pros:

* Downtown would be well served
* A related but unaffiliated Co-op could potentially benefit from less entrenched mindsets, and provide a friendly competitive atmosphere to the established DFC
* A downtown coop would benefit from the increases in living density and downtown's general revival
* A downtown coop would make living downtown more appealing
* Grants and low interest loans for Durham downtown development may be available

Cons:

* Creating an additional coop when the present one is teetering could produce a cannibalizing effect that made both Co-ops untenable
* Building a new coop from the ground up would require very large organizational and financial resources. These could easily come at the expense of the existing Co-op
* Such a move could easily produce ill-will and a potential rift in the broader Co-op membership
* Downtown may, in fact, not be able to support a Co-op on its own. The new Co-op could fail while the established coop limped along.
* The new Co-op would not benefit from the over three decades of experience of the existing Co-op.

That is a summary of the thinking to date. In addition, it has been suggested that downtown may be best served by an open marketplace such as exists in other cities. In this scenario, downtown grocery (and other) needs would be served by a market consisting of small stalls. Entrepreneurs with little capital could then set up shop and quickly respond to the needs of downtown residents. The market would be open most days of the week, and be located near the Farmer's Market to create a general market area. A Co-op store (any of the above scenarios) could potentially be an anchor for such a market, or the market could be left to function independently of any coop ties, allowing for smaller unaffiliated shopkeepers to provide grocery services.

*Please let us know what you think! Which of these ideas strikes you as good, and which as bad? Are there other scenarios that make sense? Thanks for your input!* Please contact Jonathan Blackwell at "lineaist@gmail.com":mailto:lineaist@gmail.com if you're interested in participating in the discussion.

Co-op members participating in the early discussions: Robin Arcus, Michael Bacon, Jonathan Blackwell, Stephen Hren, Rebekah Hren, Sven Rinke

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