Collegetown Crossing : Proposed GreenStar Satellite Store

Hidden - Collegetown Store Vote

collegetown-store-render

Should the GreenStar Council be authorized to proceed with the opening of a new, satellite, natural foods market at a rented site at 307 College Avenue, in Collegetown, with an initial lease term of five years and seven months (and three, 5-year renewal options)?

 


PRO Statement

By Brandon Kane,
General Manager

My opinion is an emphatic "Yes!" The primary reasons that GreenStar should open a store in Collegetown are two-fold:

It honors our mission and values:

Serving underserved communities

Our co-op is consistently looking for ways to serve underserved populations in our area. After spending a large part of this year speaking with students and residents while researching...

Read more...

 

CON Statement

By GreenStar Staff and Council
 

GreenStar's Bylaws say that the Co-op cannot open a new store, at a new location, without the approval of the Membership. Before you vote on whether to approve the proposed new store in Collegetown, here are some points to consider.

1. The proposed new store poses a potentially large financial risk for GreenStar.

- A major capital investment by GS (currently estimated at $807,270) will be required, adding to the Co-op's debt load and reducing cash reserves; much of this investment will not be recoverable if the store fails....

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In November GreenStar Membership will be asked to vote on whether or not GreenStar should open and operate a third natural food market located in Collegetown at 307 College Ave. This proposal is the culmination of nearly two years of negotiations between the owner of the property Josh Lower, GreenStar's General Manager Brandon Kane, and several members of GreenStar's Council.

A lease calling for four consecutive 5-year terms has been approved and signed by Council with the understanding that there are several major contingencies still to be satisfied before this project becomes a reality:

 

1. GreenStar's Membership must approve the store location by a 2/3 majority. The voting period is 11/1/12 - 11/30/12

2. This project requires a variance to be granted by the City on the parking space requirement associated with a residency. The timeline calls for a variance to be granted no later than February of 2013

3. All permits must be issued and construction commenced by July of 2013

4. GreenStar must be able to occupy the store by July 31st 2014

Collegetown Crossing Draft Site Plan Ground Floor

collegetown-store-floor-plan-sm

Other important facts regarding the lease:

1. Rent is based off of 2.7% of gross sales based on our conservative third-party sales projections. Rent is subject to an annual increase of 3% to account for inflation. For comparison , rent at Oasis is also 2.7% of sales while the West End Store is 1.4% of gross sales. This appears to be a generous offer given Collegetown's reputation for high commercial rental rates

2. GreenStar will occupy approximately 3,000 SF of the ground floor with an additional 500 SF of storage in the basement. It is expected that the retail space will be 2,500 SF. For comparison West End retail is 5,710 SF and Oasis is 2,428

3. It is the intention of the developer to incorporate a permanent indoor bus station facility in the front of building

GreenStar's financial projections:

Year

Year

Gross Sales

Net Income

Percent of Sales

1 2014

$757,100.00

-$114,438.00

(15.12%)

2 2015

$2,089,596.00

-$152,996.00

(7.32%)

3 2016

$2,403,035.00

-$13,858.00

(0.58%)

4 2017

$2,739,460.00

$19,151.00

0.70%

5 2018

$3,013,406.00

$35,424.00

1.18%

6 2019

$3,254,479.00

$49,384.00

1.52%

7 2020

$3,417,203.00

$57,899.00

1.69%

8 2021

$3,588,063.00

$81,848.00

2.28%

9 2022

$3,767,466.00

$112,306.00

2.98%

10 2023

$3,955,839.00

$122,441.00

3.10%

Collegetown Crossing Draft Site Plan Ground Floor

collegetown-store-floor-plan-sm

Other important facts regarding the lease:

1. Rent is based off of 2.7% of gross sales based on our conservative third-party sales projections. Rent is subject to an annual increase of 3% to account for inflation. For comparison , rent at Oasis is also 2.7% of sales while the West End Store is 1.4% of gross sales. This appears to be a generous offer given Collegetown's reputation for high commercial rental rates

2. GreenStar will occupy approximately 3,000 SF of the ground floor with an additional 500 SF of storage in the basement. It is expected that the retail space will be 2,500 SF. For comparison West End retail is 5,710 SF and Oasis is 2,428

3. It is the intention of the developer to incorporate a permanent indoor bus station facility in the front of building

GreenStar's financial projections:

Year

Year

Gross Sales

Net Income

Percent of Sales

1 2014

$757,100.00

-$114,438.00

(15.12%)

2 2015

$2,089,596.00

-$152,996.00

(7.32%)

3 2016

$2,403,035.00

-$13,858.00

(0.58%)

4 2017

$2,739,460.00

$19,151.00

0.70%

5 2018

$3,013,406.00

$35,424.00

1.18%

6 2019

$3,254,479.00

$49,384.00

1.52%

7 2020

$3,417,203.00

$57,899.00

1.69%

8 2021

$3,588,063.00

$81,848.00

2.28%

9 2022

$3,767,466.00

$112,306.00

2.98%

10 2023

$3,955,839.00

$122,441.00

3.10%

Collegetown Crossing Draft Financing Plan

Expenses Total Percent of Total Financing Total Percent of Total
Leaseholder Improvements -Ground Floor $238,400 26.66% Landlord Contribution

Leaseholder Improvements - Basement

$10,000 1.12%
Equipment - Ground Floor $238,400 26.66% Member Loans  —
Equipment - Basement $10,000 1.12% Bank Debt $295,109 33.00%
Inventory $79,030 8.84% GreenStar Cash Contribution $599,161 67%
Buildout and Inventory Subtotal $575,830 64.39%
Build-out-related Fees  $69,100 7.73%
Start-up Staffing $65,883 7.37%
Pre-opening Utilities Cost $4,875 0.55%
Start-up Promotion $7,655 0.86%
Pre-opening Interest Expense $8,000 0.89%
Organizations Development Costs Subtotal $155,513 17.39%
Working Capital $45,928 5.14%
Overrun Allocation $117,000 13.08%
Total $894,270 100.00% Total $894,270 100.00%

Estimated cash reserves as of 2013 $1,570,114*

Estimate cash usage of project $599,161

Cash remaining $970,953

* Does not include possible cash usage for offsite commissary kitchen and bakery

 

  • Lauree Myler,
    Oasis Manager

    gelato cartons largeI scream, you scream, we all scream for ... dairy-free, gluten-free, organic, or natural ice cream treats! Enjoy them while it's hot!

    Some like it hot ... but if you prefer your summer treats cold, stop by and try our assortment of ice creams and frozen goodies. At the Dewitt location we carry an array of frozen desserts sure to tickle your sweet spot. Have dietary...

    Read more...
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