Feasibility study results expected in June will determine whether North of 53 Consumers Co-op proceeds with a new grocery store, board president Dave Kendall told members Wednesday.
The possibility of a new store along Highway 10A was a hot topic as members gathered for an annual general meeting that capped off another highly profitable year for the cooperative.
“If the feasibility comes in and it makes no sense, then it’s not going ahead,” Kendall told 50-plus members gathered at the St. Ann’s Roman Catholic Church hall. “If it makes all kinds of sense, then it will go ahead.”
But he believes the choice won’t be that simple, adding: “Where it’s probably going to be is somewhere in the middle.”
Kendall, one of seven board members, said no one on the board will make up their mind on the new store until financial figures are obtained from the feasibility study. Results are expected in June.
There would “probably not” be a vote among the general membership, he said, adding that Federated Co-operatives Ltd (FCL), to which the Co-op belongs, believes the board of directors exists to make such decisions.
Kendall said a membership vote could also delay the project for years, referencing “wicked battles” that played out over a new Co-op building in Swan River.
If the feasibility study is affirmative, he said the timing favours the project in three ways: the Co-op has funds for a down payment and FCL would cover 15 per cent of the cost while providing low or no-interest financing for the remainder.
“If there’s ever a time to do it, it’s now,” said Kendall.
Ken Mansell disagreed. The long-time Co-op member said a petition he circulated last year accumulated 460 signatures of members who want the grocery store to remain at its current uptown location.
“Most of them, I don’t think, are opposed to renovating the store as it is or perhaps moving things around in the store,” he said. “But they certainly do not want to part with their store as a grocery store. That was the message that was given loud and clear in that petition.”
Mansell argued that now is a bad time to consider a new building. He favours a wait-and-see approach given the planned closure of Hudbay’s 777 mine in 2020.
But Kendall said that even if Flin Flon’s population decreases 10 or 15 per cent, or another figure, he believes the community will still have a Co-op store.
While acknowledging that opposition exists, Kendall said Mansell’s petition included instances of married couples signing even though only one of them is a Co-op member, and of the same person signing more than once.
Kendall said the Co-op has had 500 customers, typically younger people, express their support for a new store. When Mansell sought proof of this, Kendall suggested the staff members who hear the feedback be asked about it.
Mansell said Flin Flon’s population has been in decline since 1961. To that, Co-op general manager Tom Therien said the store in fact has a large trading area that includes fast-growing First Nations.
“We’re going to be in a positive growth situation” as a region, Therien said.
Therien further bolstered the case for a new store by saying the current building lacks the space to meet the evolving demands of consumers.
“You can only go so far with the space that you have – and we’ve reached the maximum,” he said.
If the board approves a new building, Kendall said it’s possible some land work at the chosen site – the former armoury property – could take place this summer.
H said he doesn’t realistically expect progress beyond that to happen in the summer, but he acknowledged he could be wrong.
Co-op members present for the meeting, most of them aged 60 and up, heard fresh details of the potential building.
The store would be built behind where Habitat 53°’s ReStore is now located on the armoury property. Land now in front of the ReStore would be for parking.
The armoury building would be demolished and the site leveled. The new store would essentially be only a grocery store, with no plans to sell gasoline.
Kendall said talk of the new building began after the Co-op investigated the possibility of erecting a store in Snow Lake.
FCL found that Snow Lake lacks the volume for a new building but then asked why a new store for Flin Flon was not being considered, he said.
Kendall said FCL believes the Flin Flon Co-op has “aged out” and that business would be “much better” with a larger facility.
He said the Co-op initially inquired about the former Extra Foods building but has been told three times that it is not for sale. Even if the vacant building were on the market, Kendall estimates it would cost more to upgrade it than to build a new facility at the armoury site.
The new building would be 39,000 sq ft – 70 per cent larger than the current facility.
If the new store proceeds, the Co-op plans to rent out the upper level of its current building. Kendall said Co-op shoppers who live in the uptown area, along with other customers, would continue to access grocery delivery services.
Should the store remain at its current location, he said the board is not averse to spending money on upgrades.
Good year
Nearly overshadowed at Wednesday’s annual general meeting was the fact that North of 53 Consumers Co-op recorded another highly profitable year.
Audited statements show the Co-op – a grocery and gasoline retailer – generated savings (profits) of $1.64 million in 2015.
That was down 7.7 per cent from 2014 but was still the fourth-best year for the cooperative since at least 2007. As a result, equity cheques totaling $954,424 will be sent out to members.
General manager Tom Therien reported that the Co-op picked up 201 new members in 2015. And of 4,272 total members, he said just under 4,100 are active customers.
Board president Dave Kendall, vice-president Rob Schiefele and secretary Linda Clark are all returning to the board by acclamation.
Their terms were due to expire, but an election is not necessary as no other candidates stepped forward. Sinclair James was nominated from the floor, but he declined the nomination.
