Common Ground Food Co-op Calls Off Plans for Champaign Store

By Kelly Youngblood

Common Ground Food Co-op has decided not to move forward with plans to open a second store in Champaign.

The CGFC board of directors voted on Aug. 10 to discontinue expansion plans based on “updated project cost estimates and financial projections.”

exterior_view_final_(1)-800x400 — An artist’s rendering of the proposed Common Ground Food Co-op located in downtown Champaign.

Julie Zilles, president of the board of directors, said they decided to update their market study and financial analysis this summer to ensure the project’s feasibility before kicking off the owner loan drive this fall.

“The decision not to move forward was made based on information contained in the updated financials,” Zilles said.

In a letter to co-op owners dated Aug. 13, the board of directors wrote, “the expansion project did not meet the required financial criteria necessary to confidently move forward.” (Read the full letter below.)

The total cost of building the Champaign store was estimated at $3.5 million.

A statement from Common Ground published last year indicated the co-op was working with the City of Champaign on getting a sales tax rebate for updates to the site.

The co-op was also trying to bring in 900 new owners, in addition to the almost 6,000 they had, before they could begin an owner loan campaign.

Common Ground, which has had a storefront at Lincoln Square Mall in Urbana since 2008, announced its decision in 2014 to open a second store in downtown Champaign.

The new co-op was supposed to be at 500 N. Walnut St, where Simply Amish is now located, and was projected to open this year.

Dear Owner:

After careful deliberation, the Common Ground Food Co-operative’s Board of Directors voted on August 10, 2016 to discontinue plans for a Champaign store. The decision was recommended by the General Manager based on updated project cost estimates and financial projections.

One question was central to the discussion: would expanding to a second location in Champaign be feasible and fiscally responsible at this time? Unfortunately, the answer was no; the expansion project did not meet the required financial criteria necessary to confidently move forward.

Common Ground Food Co-operative will continue to advance its Ends of building community, strengthening co-operatives, providing education, and contributing to a robust local food system through its existing programs.

Based on the owner feedback that we’ve received over the course of this project, we expect that many of you will be disappointed by this news, as are we. We could wish to ease that disappointment with a viable alternative, but the truth is that cooperatives do not make such decisions quickly. Over the coming months, we will be reflecting on this, communicating with you, and asking for your input. We hope you will participate.

Sincerely,

Board of Directors, Common Ground Food Co-operative