The Gardiner Food Co-op & Cafe is seeking the city’s help in securing a $90,000 federal grant to put the organization in a better position to succeed when its downtown storefront opens this spring.
The $90,000 Community Development Block Grant would supplement the more than $120,000 already raised and would allow the co-op grocery store and cafe to make more equipment purchases and have more working capital when it opens, according to the application filed with the city.
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The Gardiner City Council is scheduled to hold a public hearing and vote on whether to apply for the grant on behalf of the company at its meeting at 6 p.m. Wednesday at City Hall.
City Manager Scott Morelli said he’s recommending councilors approve the action because the co-op is the kind of business the city wants to support. Applying for the grant on behalf of the organization won’t cost the city anything, although the city could be on the hook for the money if the organization doesn’t use the funds as outlined in its proposal, he said.
A strong local food economy was highlighted as a goal by a recent community planning project, and it’s been bolstered by new businesses in the local food industry that have opened in the last couple of years, Morelli said.
“I think it’s something that could be really big for Gardiner,” he said of the co-op.
The co-op plans to open sometime this spring regardless of whether it receives the block grant, board member Kala Ladenheim said, but additional funding would allow the organization to buy equipment that will create a more polished experience for shoppers and give it a better financial footing. The store and cafe plan to offer grocery items, soup, sandwiches, coffee drinks and more, with a focus on local, organic and fair-trade items.
Some of the co-op’s needs include a dumbwaiter to transport groceries from the storefront on Water Street to the parking lot in the back of the building and an inventory management system, she said.
“To the extent we can front-load these things instead of building it up over time, it enhances our chance of success,” Ladenheim said.
If the organization is able to raise the additional funds, it will also make the store more attractive to people who might not be used to shopping at co-ops, she said.
“My guess is five years from now we’ll end up at the same place, but we’ll get there faster if we get that head start. It gives us a much more solid footing,” Ladenheim said. “It gets us started really with the full dream, the full vision.”
By their nature, co-ops are owned and governed by their members, so there typically isn’t one large chunk of money available, she said. At the Gardiner co-op, members pay $100 to join and $15 after that annually to keep their memberships active.
So far, more than 260 people have signed up for memberships, according to the co-op’s website. The goal is to reach 360 members by the opening date, but Ladenheim said she expects a boost once the co-op has a completed storefront. The organization is leasing the 269 Water St. storefront that used to house Greenhouse Games, a hobby and game store that moved to a new location a few doors down.
“Not only will it be great for us, but it should be drawing people in all the other stores on main street,” Ladenheim said.
The co-op is an evolution of a local food-buying club in Gardiner, Kennebec Local Food Initiative. A storefront has been a goal of the nonprofit group since it launched in 2011, and organizers announced their plan in February to open the co-op and cafe somewhere in downtown Gardiner.
According to the grant application, the co-op will provide three full-time jobs to start, including a store manager position. The Community Development Block Grant Economic Development Program provides gap funding for communities to assist businesses in the creation or retention of jobs, according to the Maine Department of Economic and Community Development.
Morelli said he doesn’t recall the city ever applying for such grants on behalf of a business in the past.
At Wednesday’s City Council meeting, councilors also are scheduled to hold the first of two public hearings on issuing a $350,000 bond to fund the city’s match for the Highland Avenue improvement project. The $350,000 the city needs to borrow is $500,000 less than councilors approved in the current budget because of another $150,000 in carry-over funds already earmarked for the project, Morelli said.
The city is responsible for $500,000 for a 50-50 match with the state because it’s being done through the Maine Department of Transportation’s Municipal Partnership Initiative. The overall project will cost about $1.7 million and include roadwork, drainage, sidewalks, sewer and water infrastructure, Morelli said. The city is using the opportunity to make improvements to the sewer and water infrastructure under the road, he said.
Morelli said the $77,500 debt payments the city will owe for the next five years will eat into the overall paving budget, but residents have long complained about the road’s condition.
“I think most people agree that Highland was by far the worst,” he said, “so we’re tackling the number one concern of the residents.”
Paul Koenig — 621-5663
Twitter: @paul_koenig
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