Dear Durham Central Market Owner,
As we move closer to our goal of a grocery store owned by the people of Durham, many of you have asked when Durham Central Market will open its doors. In short, this depends entirely upon you. What we have now is a team comprised of leaders in the Durham community, including the 18 years of grocery expertise of our project manager Don Moffitt; an exhaustively detailed business plan forged with the support of national co-operative development organizations; and an increasing regional and national focus on the importance of healthy local foods. I think this represents a perfect storm for DCM.
What we need to move into this next phase of our development is serious investment of capital—your capital. We have charged our Owner Investment Campaign with raising $1.5 million of owner investment over the next several weeks. The success of this campaign will propel us into a second round of financing, allowing us to acquire a site and open a thriving grocery store in central Durham. As it stands, we are roughly one quarter of the way towards our goal, with less than 10% of our owners participating. While we stand in awe at the level of support that has poured in from our owners, reaching our campaign targets will require that many more of you invest over the coming weeks.
I’m asking each of you to seriously consider an investment in Durham Central Market at a level that reflects your belief in a true community enterprise in Durham. We have a compelling array of investment products, from interest-bearing “preferred” equity investments to traditional interest-bearing loans that provide you with a real financial stake in the success of our store. Please see the articles below, or join us for one of our upcoming informational sessions, for more information on how to invest. I’m probably biased, but I believe these investments offer a very unique chance at a solid financial return coupled with tangible benefit to our city for generations to come.
We know that many of you are concerned that your hard earned dollars will be wisely spent. That is why we have bound ourselves to spending no more than 5% of your investment until the Board of Directors is confident the co-operative can execute its business plan, including the opening and operation of a retail grocery store. We are poised to move forward with tangible steps towards this goal, and we take our fiscal responsibility seriously. The Board is participating heavily in this round of investments, so you have both our personal commitment and our shared financial stake that your dollars will be spent wisely.
Over these past few weeks, I have felt increasingly honored to be a part of this co-operative venture we call Durham Central Market. The strong and unwavering support you’ve shown for community-owned grocery in Durham has inspired me, and the entire DCM team, as we forge ahead. In the weeks to come, we will be reaching out to you, and asking you the question, “When will Durham Central Market open its doors?” We look forward to hearing your clear & resounding charge!
President, Durham Central Market
Investing in Durham Central Market
We’re working hard to make investing in the co-op accessible to each of our owners. To that end, we are offering an array of investment products to suit your needs and your abilities. And, aside from the benefit of seeing your money build a brick-and-mortar neighborhood grocery store, we’re offering a highly competitive return on investment. Let’s take a look at the details..
What investment products are we offering?
- Share Value: $500/share
- Minimum Investment: $1,000 (2 share minimum purchase)
- Rate of Return: 0 - 5.0%, at your option
- Term: Preferred Shares have no “term” and can be held indefinitely. However, they may not be redeemed (sold back to the co-op) for a period of 10 years. After that, you may sell your stock back to the co-op at any time.
Community Investment Note (CIN)
- Minimum Investment: $2,000
- Interest Rate: AFR* - 3.0%
- Term: 5, 7 or 9 years
- Minimum Investment: $10,000
- Interest Rate: AFR* - 4.0%
- Term: 5, 7 or 9 years
*AFR stands for Applicable Federal Rate, and represents the federally set minimum interest rate that we can offer. AFR is set quarterly, so feel free to ask us for the most current rate.
Interest will accrue quarterly, is non-compounding, and will be paid annually. After the term expires, the investor will be given 30 days written notice to redeem the note before it is automatically renewed for an additional 3 year term.
How are CINs and Preferred Shares different?
Community Investment Notes (CINs) are small loans from individual owners, with a fixed rate of return (interest) and a fixed term. They are considered long-term debt held against the co-op.
Preferred Stock is an equity investment in the co-op, and has no fixed term, though it may not be redeemed for a period of 10 years. They are different from Common Stock (“Owner Shares”), in that they confer no voting rights to the holder. They are considered equity.
Which security is most beneficial to the co-operative?
Preferred shares will be viewed as equity by banks and other large lenders. This equity will help us secure additional loans, necessary to reach our financing goals.
Who is eligible to be an investor?
Investors must be a resident of North Carolina.
Will I get my money back if Durham Central Market is unable to move forward?
The Board of Directors has committed to spending no more than 5% of your investment until they are confident the co-operative can execute its business plan, including the opening and operation of a retail grocery store. 95% of your investment will be put aside safely until that time.
Interested in learning more about Durham Central Market?
Still have questions regarding the business plan, or how to invest?
Come to one of two informational sessions hosted by Michael Bacon, DCM Board President at First Presbyterian Church.
Sunday, March 13, 3:00-4:00pm (Parlor)
Thursday, March 17, 7:30-8:30pm (Fellowship Hall)
Michael and others will be on hand to explain the road ahead for DCM,
options for investing, and the risks involved.
First Presbyterian Church is located at 305 E Main Street (corner of Roxboro & Main Sts.)
Enter through the glass door from the parking lot.
Wondering where the Owner Investment Campaign stands now?
As of today;
- 92 people pledged
- $346,500 pledged
- $1,153,500 yet to go!
- $1,500,000 Total Campaign Goal
It's simple. Email your intention to email@example.com
We'll walk you through the rest.
Invest in Durham Central Market. Together we can build something great!