Greenbelt Homes Incorporated (GHI) and Greenbelt Consumer Cooperative (GCC) (known as the Co-op Supermarket and Pharmacy), co-hosted a well-attended meeting in the Youth Center on Thursday, April 9. The topic of discourse was whether both cooperatives should further explore GHI purchasing 121 Centerway, the Roosevelt Center structure that currently leases space to GCC and the Greenbelt Arts Center, and which includes the currently vacant ground floor space that formerly housed RCCG Restoration Church and the Greenbelt Post Office.
GCC approached the landlords about the potential purchase last spring and approached GHI about being the entity to make the purchase in August. This possible property purchase, which has been the subject of much discussion, brainstorming and volunteer fact-finding between the cooperatives’ boards since October, would require earnest investigation involving preliminary expenses by GHI to procure assessment and building information, legal counsel and potentially other forms of expert advice. GHI’s current governance bylaws limit the resources its board can expend without getting formal input from the membership, and this meeting was held to gauge exactly that: whether the membership believes the next step is for the board to spend the money needed to answer two questions: 1) Can/should we do this? 2) If so, what would that look like?
At kickoff, representatives from both GHI and GCC gave an overview of how this opportunity came about, the information gathered thus far, the universe of likely outcomes for each cooperative and the known and unknowns facing both potential action and inaction. Presenters came prepared with answers to and context for questions received through many avenues (including social media) and laid out either the best present understanding for each and/or the steps necessary to fully and accurately answer those inquiries requiring more intensive investigation than has been possible thus far.
Members were also asked to contribute suggestions or insights if they had them, and a poll for GHI members designed explicitly to rapidly capture feedback on this topic was made available to all eligible attendees.
Attendees brought many insightful and creative questions about what, ultimately, a potential purchase by GHI of this building would mean for members of each cooperative. While dozens of questions were posed to both co-op delegations, several key themes emerged from questions, such as:
Is GHI allowed to purchase the property under its current bylaws, or would the bylaws need to be amended prior to such a purchase, at the upcoming annual meeting, for instance?
What sort of lease terms would be appropriate and mutually beneficial for both GHI and GCC, and what process would be followed to increase the chances of successful financial outcomes for both entities?
What is the maintenance situation of the building?
Is GHI able to move quickly enough to see the deal through?
Multiple members also stressed the profound importance to the community of having a viable anchor business like GCC, citing the effects of its stability on other businesses in Roosevelt Center as well as food security, curb appeal and quality of life considerations for many Greenbelters. Anxieties and curiosities surfaced as well, particularly around whether GHI’s potential purchase of the building would slow or accelerate the rise in GHI monthly membership fees.
Today, GHI engages in real estate business through a wholly owned subsidiary, Greenbelt Development Corporation (GDC), which maintains the Parkway Apartments which generate rental income. Under current regulations, GHI is already permitted to realize revenue other than membership fees (rentals, fee for service, GDC), which could contribute to its balance sheet and potentially offset member fee increases, though there is no guarantee that such endeavors would do so.
The next step for GHI members is to contribute feedback to the Board of Directors, as to whether the remaining investigatory work should be conducted with GHI resources, as well as the urgency and transparency with which GHI should pursue or avoid this opportunity.
GCC President Kim Kash told the News Review the current deadline the cooperatives are working towards is May 19, which is the date by which GCC must indicate to the current owners of 121 Centerway whether or not the agreement will move forward.
Throughout the meeting, members of both boards stressed the importance of the pace of the decision, as finalization deadlines and annual meetings quickly approach.
Some details, including the proposed price of the purchase and GHI’s bond holdings, were shared with members at the meeting but are not reported in this article due to the sensitive nature of the ongoing negotiation.
