Mariposa Co-op is Expanding?

Mariposa is purchasing a building near our current location which will:

• create a beautiful new energy-efficient store that is 5 times larger
• provide access to more healthy, locally grown and sustainably produced food to every household in our current membership, and potentially the entire West Philadelphia community
• increase operational efficiency in a facility with room to properly display produce and process and prepare food, and room for overstock
• support us placing larger orders with our distributors, which will help to keep prices affordable even though we’re taking on new debt
• allow more residents of the neighborhood to take part in cooperative economic democracy
• advance our mission of providing information about healthy, locally-grown, and sustainably-produced food with improved space for community meetings, workshops, and seminars
• increase our buying power from local farmers

We are conducting a member loan campaign to help fund the expansion. Support from the membership of the co-op is critical—both in providing capital for the move and in demonstrating the commitment and investment of the co-op’s owners. Please consider making a loan to help the co-op grow and reach more people. For more information about making a loan complete a member loan form (also available in the store) or contact Molly Roth at mollydroth@earthlink.net.

In addition to making a loan, members can demonstrate support for the project by doing more shopping at the co-op, increasing their member equity, making a donation, or volunteering to help with fundraising. Here’s how members can get involved. Read below for more information about the co-op and the planned expansion or download the brochure as a PDF.

Mariposa is Growing

For almost 40 years, Mariposa has been providing our members access to healthy, locally grown, and sustainably produced food. We have grown from a buying club of a few dozen members to a full-service storefront open every day of the week, with more than 700 member households and well over 1,000 shoppers.

Throughout this growth, which has skyrocketed in the last five years, Mariposa has always been a business owned and run by its members, who each contribute 26 hours of work per year and who govern the organization according to the principles of the international cooperative movement.

Mariposa is poised to keep growing

• Mariposa has had to institute a waiting list for new members.
• 69% of U.S. consumers purchased organic products in 2008 (Hartman Group).
• Organic food sales have quintupled since 1997 (USDA).
• Access to healthy food is currently quite limited in the immediate neighborhood
• The closest full-service grocery store is over a mile away.
• The closest full-service grocery store offering a comparable product line is three and a half miles away—an estimated 35 minute trip on public transportation.

We have outgrown our current space

With just 500 square feet of retail space we offer a full line of produce and dairy products, but are extremely limited in the variety of dry, canned, prepared, and specialty diet foods available to shoppers.

We are doing our best to accommodate new members and guests in our current location, yet often new member households are wait-listed for several months because of our limited space. The lack of space has created a barrier between us and the community as a whole, stunting potential membership growth.

Our 2009 sales were a 16% increase over 2008 sales, which increased by 9.6% over the previous year. But we have almost maximized the potential for income in the current location, as established in a recent analysis of Mariposa by University of Pennsylvania’s Wharton Small Business Development Center.

How Mariposa plans to keep growing

Move to a new space

The Expansion Committee (formerly Space Exploration Committee) has been exploring options for more retail space for more than 2 years. This winter we were presented with the opportunity to purchase a new building. With a grant from the Community Design Collaborative, the co-op has made detailed plans for the renovation and use of the space as a store, workspace and meeting space.
In the larger retail space, we will provide greater access to healthy, locally-grown and sustainably-produced food to every household in our current membership and potentially the entire West Philadelphia community.

We will increase operational efficiency in a facility with room to properly display produce, process and prepare food, and provide faster checkouts and with more space for overstock, decreasing “out of stocks.”

A larger space will allow more residents of the neighborhood to take part in cooperative economic democracy. We will further our mission of providing information about healthy, locally-grown, and sustainably-produced food by holding community meetings, workshops, and seminars.

Welcome guest shoppers

In a new space we will expand our guest shopping policy and provide access to healthy food to everyone in the neighborhood. Guest shoppers will also encourage the membership as a whole to grow—many guest shoppers will join as members to fully gain the benefits Mariposa has to offer.

Re-define membership participation

Mariposa will always operate in accordance with cooperative principles and our commitment to egalitarian and self-sustaining business that builds community as it works. Through organizational changes we will remain true to these values—members will continue to contribute labor and governance. However, our policy changes will incorporate more new members, re-engage current members, and allow staff to focus on more efficiently and effectively managing the store.

How Members Can Get Involved

Member Loan Campaign

The purchase, renovation, and start-up costs for the new store will be approximately $1.45 million. The co-op has more than $300,000 committed between the sale of the current building and a grant from the Merchant Fund and will apply for commercial financing. Member loans in the amount of $300,000 are needed to keep down the total commercial borrowing and to demonstrate member support to the lender.
Member co-ops in other cities and even other parts of Philadelphia have successfully financed creation of expansion of a food store through member loan campaigns of anywhere between $300,000 and $1,500,000. Loans from members demonstrate the commitment of the membership to achieving the co-op’s mission and are an important statement to outside funders and lenders.

Financing a portion of our expansion costs internally will strengthen Mariposa by reducing our reliance on bank loans, allowing for a stronger cash flow position in the first critical years of operation after the move, and offering our members a meaningful way to participate economically in the cooperative that we own.
Our goals in seeking these member loans are to:

• Raise at least $300,000 dollars
• Reduce our costs of borrowing from conventional lenders
• Involve members closely in the financial health of the co-op

Mariposa is offering five and ten year loans with a simple interest rate of 3% to members—competitive with current CD rates. The minimum for loans is set at $1000, in order to keep the co-op’s administration costs down.

Fill out and return a member loan interest form to receive a call from a member of the fundraising committee who will provide you with loan documents. These documents describe the loan program in detail and provide financial reports and projections, loan terms, and the benefits and risks involved in participating. All potential lenders must consider the information in this packet before making a loan.

We are counting on member support!

Other Ways Members Can Get Involved

Pay Your Member Capital In Full

Each member makes a one-time payment to the co-op of $100, usually in five annual installments. This “member capital” represents your equity (ownership share) in the co-op. Most members currently pay this amount in $20 installments over five years, but you can pay it in full now and/or increase it up to 1% of the total member equity (currently about $500). To find out how much equity you have, Financial Manager Dan Ohlemiller can be reached in person, by phone, or by email at finance@mariposa.coop or you can login to MESS to view your account information.

Donate Dollars

Mariposa members are welcome to mail or drop off donations to the store. You can also donate money using the PayPal button below.

Donate Your Talents and Skills

Join one of the committees supporting the expansion project, or offer your talents in fundraising, carpentry, architecture, design, finances, policy changes, etc. Send an email to growth@mariposa.coop or talk to a board or staff member.

Organize or Attend a Fundraiser

Members are throwing dance parties, hosting bake sales, stetting up workshops and playing shows as fundraisers for the co-op.

Spend More of Your Food Dollars at the Co-op

The store is open Monday through Thursday from 12:00 to 9:00 pm and Friday, Saturday, and Sunday from 11:00 am to 8:00 pm. You can always call ahead to see if we have what you want in stock. Remember that as a co-op member, you have the benefit of placing bulk and special orders.