- Real Estate
- Food & Drink
Oct. 7, 2019
The Co-op Natural Foods is giving a glimpse at how its expanded store could look as it attempts to raise funds for the project.
The 8,000-square-foot addition to the store at 18th Street and Minnesota Avenue will double the retail space and add several new deli programs, upgrades to equipment, indoor seating and expanded offerings across the store.
“The Co-op is a community-owned organization that relies on investment from its more than 1,000 member-owners to make an additional investment to make expansion a reality,” general manager Patrick Sayler said in a statement.
“I am looking forward to engaging with our member-owners about this project. So far, the early response has been overwhelmingly positive, with tons of our shoppers telling me how excited they are to see the store continue to grow and expand.”
The drive coincides with National Co-op month in October.
The Co-op Natural Foods opened in its current location in 2014 after the previous store on Duluth Avenue was destroyed by a fire in January of that year.
Member-owners loaned a half-million dollars to remodel this space. Since the move, sales have increased rapidly, and the store has outgrown its space, the co-op said.
The expansion is estimated at $2.75 million.
While the co-op won’t solicit donations for the expansion, it will ask current individual and business members to invest in “preferred shares” in the co-op in an effort to raise $1.5 million. The rest will come from cash on hand and traditional financing.
“Just like any other successful business, to expand we need the owners to do their part and make an investment. The shares pay out interest every year just like loans, but the major difference is that the board will vote to decide when to redeem them,” Sayler said.
The expansion allows the co-op to take over the adjacent space of Davis Independent OBGYN Care and be the sole occupant of the building at 410 W. 18th St.
Koch Hazard Architects is the architect while Fiegen Construction is the general contractor. Construction is expected to start next summer.
“Most folks should expect their investment in co-op shares to be held with the co-op for at least five years,” Sayler said. “The board has a plan right now to begin redemptions in 2026 after the store operations have stabilized from expansion.”
The Co-Op Natural Foods is giving a glimpse at how its expanded store could look as it attempts to raise funds for the project.