We anticipate a gap of $1.5 - 2.0 million dollars between what is currently committed to the project and the revised construction estimates that are in the works. Time is of the essence because the TIF funds that have been committed to the project expire at the end of 2025. If we don’t start construction in April, we will not have the ability to complete the project before the TIF grant expires. Our permitting process is nearly complete and we are essentially ready to press go as soon as we close this gap. We are confident in our timelines, we just need a little more help and the project is off to the races.

Here’s what you can do:

• Introduce as many friends, neighbors, and family members as possible to Chicago Market and encourage them to contribute to our mission by becoming an Owner here.
• Invest in Preferred Shares that not only contribute to our construction costs but offer you the ability to invest in your community while earning a fair return. Email the treasurer here if you want to learn more.
• Make a donation to the Market’s construction fund. Every dollar counts, and to make a donation, click here.
• Know an individual, organization, or investment firm that might be interested in supporting our mission? This approach has already resulted in the potential for hundreds of thousands of dollars in additional funding, so please email the board and make an introduction.

There are more details in the note below but if we are going to make this vision a reality, now is the time for us to show what being a cooperative is really about. 

Thank you.

Learn more

Here’s the situation: as many of you know, Chicago Market was hugely successful in obtaining funds over the past few years, including $5.8 million in TIF funding and an additional $5 million in bank financing. However, those numbers were based on our original construction estimates. Because of inflation, COVID, increases in costs of materials and the like, when we returned to those estimates, costs had increased dramatically. To address this, we obtained additional bids, and received the unfortunate news that other contractors are pricing similarly. Costs have risen and the new amounts just don’t align with the TIF funds and bank loan we have lined up. 

That said, we are still very close. That’s why we call this a funding “gap” - we have the majority of the funding lined up, but there is still a gap between our funding and the final number. And without a financial plan that closes that gap, our lenders won’t be able to give us the money. 

We are working toward solutions to this problem on three fronts:

1. Value Engineering
   We are simplifying our build plan to be as efficient as we possibly can to lower costs. This may mean things like cutting kitchen equipment in our first phase of construction, and sourcing deli and prepared foods from outside vendors. It means avoiding a renovation of the basement and the very expensive cost of an elevator that comes with that.
   
   Even with these changes, our GM is confident that the store will deliver on our values and dreams. Plus, the items we remove now can all be phased back into place over time once we’re open and financially stable.
   
   Our contractors are rebidding with this simplified plan in mind and we are hopeful it will cut approximately $4 million from the cost.
   
   
2. Equipment
   Good news here! Another local co-op, Prairie Food Co-op, connected us with a used equipment vendor. He has new equipment from three grocery stores who cancelled their orders that we can buy from at a savings of 25-50%. Depending on our final equipment list, this could save us nearly a million dollars.
   
   
3. Fundraising
   We should be incredibly proud of the enthusiasm around this project which has resulted in us raising nearly $11 million dollars to fund the project. That said, despite our fundraising efforts and the cost-cutting measures outlined above, we are fairly certain there will be a funding gap in the $1.5-2 million range for us to address.
   
   We have been making outreach to as many values-based investors as we can to seek additional loans or Series B Preferred Share purchases. One gap funding bank has already pledged $250,000, and we’re pursuing a $500,000 gap loan through Landmarks Illinois. But there is more to raise, and we aren’t there yet.

Co-ops are challenging projects to be sure, and ours has been particularly complex. The building being under a federal railway has led to a lot of design issues and delays, particularly with utility placement.

The Board is acting diligently on your behalf at all times and is facing current challenges as we always have faced challenges—with you, our Owners, top of mind. You’ve invested your personal funds, your volunteer hours, and your hopes that the Vision of a better food community—local, sustainable, connected is something we can all build together. 

Thank you for your continued support. It drives us toward seeking solutions every day.