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May. 23, 2010 at 11:19am
May 13th Board meeting minutes
TFC Board Meeting May 13, 2010
Present: Ken, David, Amber, Casandra, Molly, Michelle
Ken presented a chart of our present course
We need to be more specific in our agreement with John Loesch
“Circular issues”
- How much do we need to have escrowed before we can begin spending what we have?
- frequency of interest payment on loans
- minimum loan
- interest rate
- member benefits
(1) We need $85K just to open the door and have inventory
We have $20K now
Inventory projection can be modified based on new numbers but we will stay with the $40K inventory figure for now.
Consensus was reached around the idea of having $100K in escrow (two-thirds of the total we aim to raise). We could make our GM hiring decision at that point.
What happens if it takes longer to raise the money? What happens if the fundraising goes more quickly than anticipated?
(2) Madison Market saved interest payment until the end of the term but recommends paying earlier and more frequently (e.g. quarterly) in order to avoid taking a big hit all at once.
We could pay the first installment after six months and then quarterly thereafter.
Consensus was reached that payments will be made quarterly.
(3) Two kinds of investors:
accredited (those with $1,000,000 or more, etc): unlimited
non-accredited: no more than 20 investors
Consensus was reached that the minimum investment will be $5,000.
(4) Interest rate:
Molly used a rate of “money market plus 3%” in her projections
We agreed on the following:
Tiered approach: lenders of $5K-$19,999 get money market plus 3%;
lenders of $20K+ get money market plus 4%
Fundraising goal is set at $200K
(5) Member benefits: what will they be?
Innovation committee has been waiting for an assignment and they should take on this issue.
Counsel: do we need it a this point?
We have the paperwork that the Bellingham Co-op submitted successfully to the state. Ken is comfortable with the idea of having a local business attorney look over our final documents and advise us of any major exposure concerns.
Molly would like to take the business plan that John Toler wrote and condense it into a strategic plan.
Ken raised the question as to whether it makes sense to explore whether a viable local business would be interested in setting up shop (Marlene’s? PCC? Central Co-op? Olympia Co-op? Metropolitan Market?). Consensus emerged that the board wants this to be a grassroots Tacoma venture for the good of the members and the local farmers rather than primarily a business venture.
Ariel will be sending out a newsletter later this month.
- We decided not to include any additional information about the GM search in this newsletter.
- Board members should read the five questions on Google Groups and contribute any necessary info regarding the newsletter.
Pete Davis would be willing to do a market study for $2000.
Board members need to keep working toward the goal of recruiting five new members each.
We discussed the logistics of tabling at the farmers markets this summer.
By this Sunday the 16th, John T. will have 16 dates for us to do outreach at farmers markets. With this information, Corrinne can solicit members to table and take charge of our farmers market presence. Also, we could have a table at Terry’s Berries on any Tuesday or Wednesday in May.
David will mail this document to the board at tacomafoodcoop@googlegroups.com
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Next Board meeting will be on Thursday, May 27th from 5 to 7pm at Trinity House on 6th Ave
posted by Michelle under board meeting, minutes
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