Everything Under The Sun: Investing In The Community

The principles on which the coop is based.

Sometimes investment organizations can do more than just make money for its members or clients. Sometimes they can act to revitalize a community by pooling the money of a group of people who buy shares that can then be used to purchase properties that can then be used to benefit everyone. Of course, somewhere in there, the investors earn money, but even more, the community stops using property for unneeded goods and puts that property to much better use.

Towards the end of 2011, this group of like-minded individuals officially became incorporated as the NORTHEAST INVESTMENT COOPERATIVE (NEIC). The following year, the organization, already comprised of 90 investors, purchased two Minneapolis properties, one under their name and one under the name of Recovery Bike Shop. In 2013, demolition work began on the NEIC property, and the number of investors climbed to 175, as others learned about the plans for the properties.

Construction was completed in 2014 and three businesses opened on the new site, providing 25 jobs that weren't present previously. By 2015, NEIC had developed a sustainable business model that had turned a profit, and members received a return on investment, based on the type of shares bought. Before the year ended, a McKnight Foundation Grant was awarded to help defray startup costs for their next project.

After much research, NEIC purchased their second property, and was able to start on the next project, a new building located on a corner property, that converts the previous building into a lighter and brighter site for businesses. Like any other company, members get a voice when they buy into the coop. It's one member - one vote, promoting investment in the community. Because they invest in the properties, members maintain a relationship of success with the businesses on site, since the success of the business means success for the cooperative.

Before and after construction on the building at the 2nd property.

Now that NEIC's second property is ready to begin leasing, there was a gathering at the property last month for a tour and to provide information for those interested. Besides potential interested businesses, a number of potential investors showed up. This event allowed them to see the transformation of the property, along with how the cooperative operates. In addition, their newest project on another property was presented and those interested were able to find out how they could participate.