Another appeal for loans is going out to owners of the $3.6 million grocery store co-op being constructed at 921 E. Washington Street in Bloomington.
Green Top Grocery had secured $1.3 million in owner loans through two campaigns late in 2015 and earlier this year. But a $300,000 gap remained between the amount raised through owner and bank loans and construction costs.
GTG General Manager Michael Pennington said the organization was able work with designers and builders to decrease costs, leaving $120,000 to be raised by owners. Pennington says $15,000 has already been contributed this week, lowering the amount needed to $105,000.
"The banks are very confident in this project. The fact that, as a start-up, we have raised $1.3 million--a national record--makes both banks that we're working with very excited for this project to go forward," Pennington said. "We just have to have all our 'i's dotted and 't's crossed in a timely fashion," he added.
Pennington explained that, since commitments from bank lenders expire at the end of the year, the financial shortfall must be covered by November 18 to initiate the closing process. Complicating things financially for the co-op is grants it had applied for either have not materialized, or won't in a timely fashion, Pennington said.
Loans must come from owners. Pennington said there are 1,366 owners as of November 7, with 300 of those coming on board since the last owner loan campaign ended last winter.
"This will be their first opportunity to participate in an owner-loan campaign," Pennington said.
Loan amounts must be at least $1,000 and carry interest rates varying from two to five percent, depending on the size of the loan. Terms are negotiable over eight to nine years. Ownership in the co-op is available with a one-time $200 purchase.
Construction on the 10,000 square foot Green Top project in a development known as The Foundry is expected to be completed by next spring or summer.
