HomeMy WebLinkAboutMJCIP Apps (48)RRRCITY OF PALM SPRINGS
MEASURE J COMMUNITY INITIATED
PROJECTS APPLICATION FORM
Name of Applicant: Lisa Hoff
Date Submitted: 9/30/2024
Applicant Type: Non-Profit Organization
Name of Organization: One PS
If yes, provide IRS ID#
Tell us about your project:
1.Project Name: Feasibility Study of a Food Co-op in response to a request
made by communities residing in a food desert section
2.Project Address: Northwestern Part of Palm Springs (north of Vista Chino and
west of Indian Canyon)
3.Project Type: Grant
4.This project improves: Business Community, Health Services, Sustainability/
Conservation, Other: Quality of Life
5. What demographic(s) does this project serve?
Children/Students, Entire Palm Springs Community, Individuals with Disabilities,
Other: Underserved population
6. Estimated project cost: $50,000.00
7. Short description of proposed project.
Co-ops keep more money in their local economy, increase access for locally
produced food and prioritize business practices that are good for the community. To
determine the viability of a food co-op it is consultants will look at 4 aspects: 1.
Community Involvement: Seeks to gauge interest, gather data on local needs, raise
awareness and assess demand/available resources. 2. The Market: Examine
market area, size, demographics, competition and identify optimal locations based on
established criteria. 3. Site Search and Feasibility: Preliminary work supports big
picture store feasibility, with site criteria helping to narrow and focus the search
which provide a strong foundation for site selection and overall project
feasibility. 4. Financial Pro-Forma: Analyze key metrics that indicate the likelihood
of a sustainable project such as the development funds, assumptions for key
operating expenses and financials for ten years of operations which include
income, balance sheet, cash flow.
Applicant’s information:
Name of Contact Person: Lisa Hoff
Contact Person’s Phone Number:(347) 528-7433
Contact Person’s Email Address: LHoff555@yahoo.com
From:lisa hoff
To:Melissa Sanchez
Cc:Ned Barker; Patrick Stonebraker; Dan Gonnella; chris.ruetz
Subject:Supplemental Documentation for Measure J Application
Date:Friday, December 27, 2024 4:54:51 PM
Attachments:Response to Measure J Request for More Info Updated 12-27-24.pdf
Co-op Start Up Attachment 1.png
USDA Charts Attachment 2.pdf
Consultants Attachment 3.pdf
CCCD General Info.png
NOTICE: This message originated outside of The City of Palm Springs -- DO NOT CLICK on links or open attachments
unless you are sure the content is safe.
Dear Melissa - I wasn't able to combine all of the attached into one document. I hope
this is not an inconvenience to you. Please let me know if you need any other info.
Thanks for your help and have a great weekend!
Lisa Hoff - Board Member
One PS
Application #48
347-528-7433
Project Proposal by California Center for Cooperative Development (CCCD)
September 27, 2024
Project Name and Location
Exploring the Viability of a Food Co-op Grocery Store for Palm Springs (proposed)
Location specifics defined by One PS
Design / Consulting Cost of Services by CCCD
$25,000
Project Duration, including lead time to order materials and mobilize contractors
The project is set to span one year, with a timeline designed to ensure a thorough and inclusive
process. It will unfold in three key stages: the Community & Preliminary Feasibility Study, the
Preliminary Market Study, and the Site-Specific Market Study. Each stage of the project will
take four months for a total of 12 months. This structured approach will enable us to effectively
engage with the community and gather essential insights at each phase.
Detailed description of the concept and benefits of your proposal
In partnership with One PS, the California Center for Cooperative Development (CCCD) will
explore the viability of a food co-op grocery store for Palm Springs with the goal of providing
affordable, sustainably produced, quality food to the region. Cooperatives bring the idea of
cooperation — working together — to the business world. A food co-op can build equity into
the food system by promoting community ownership and increasing economic resilience. The
project will begin with a Community and Preliminary Feasibility Study to gauge interest, gather
data on local needs, and raise awareness for a food co-op retail store, as well as assess demand
and available resources. A Market Study will then be conducted to analyze the co-op's potential
by examining market size, demographics, competition, and identifying optimal locations based
on established criteria. This project will build support, inform decisions, and lay the foundation
for the future success of a food co-op for Palm Springs.
The California Center for Cooperative Development (CCCD) is a 501(c)3 nonprofit organization that promotes
cooperatives as a vibrant model to address the economic and social needs of California’s communities. CCCD
supports the myriad of cooperatives in Ca
CCCD incorporated in 2007 and many staff and board members were previously employed or associated with
the University of California at Davis Center for Cooperatives, an extension program that closed in 2004 due to
budget cuts.
California Center for Cooperative Development (CCCD)33
The mission of the California Center for Cooperative Development is to promote cooperatives as a vibrant
business model to address the economic and social needs of California’s communities. CCCD fulfills this
mission by:
• Educating the public, community institutions, and government agencies to foster and promote the
understanding of cooperatives;
• Identifying and disseminating information about successful practices and models for cooperatives;
• Encouraging cooperation and coordination among various types of cooperatives;
• Providing technical assistance and education for the development of cooperatives to best address
economic and social needs.
Summary of Services
The Center offers annual seminars to assist Cooperative Directors in effective governance, strategic and
financial planning and other issues. Technical assistance to help cooperatives address specific issues is available
through a variety of mediums (determined by the circumstances of the cooperative) including referrals, fee for
service, or by utilizing grant funding. To help address issues of particular concern to specific sectors of
cooperatives, the Center collects, analyzes, and disseminates data, technical knowledge, best practices, and
other information.
The Center educates the public and groups interested in forming a cooperative through a pallet of outreach
programs. These include basic information about the cooperative business model, as well as practical
information on how to organize cooperatives, cooperative financing, governance, management, and related
topics.
columinate.coop
Catalysts for Common Good
September 27, 2024
To: Lisa Hoff
From: Sarah Lebherz, Sarah Lebherz Consulting, LLC
Proposal for Financial Feasibility Work / Pro Forma
Description:
This proposal includes both the development of pro forma financial statements and ongoing
support for up to 24 months. The pro forma is the primary tool for the co-op to assess the
financial feasibility of the project.
The pro forma I develop includes the sources and uses of funds for development, the annual debt
service for all required loans, assumptions for key operating expenses, all three financial
statements for ten years of operations (income statement, balance sheet and cash flow
statement), and key financial metrics that indicate the likelihood of a sustainable project.
Timeline:
The pro forma will be delivered and reviewed over Zoom 3-4 weeks after introduction call.
Fees.
$7,500 for pro forma and 24 months of additional updates and support
Thanks for the opportunity; please let me know if you have any questions.
I look forward to working with you!
Sarah Lebherz
Sarah Lebherz Consulting, LLC
All information and recommendations are provided in good faith based upon the experience
and judgment of the Consultant. The Client remains responsible for the accuracy of all
information provided to Columinate and Consultant. The Client is also responsible for all
decisions made and all actions or inactions that result from this work.
Sarah Lebherz ▪ Sarah Lebherz Consulting LLC 301-788-6615 sarahlebherz@columinate.coop
From:patrick@shabram.com
To:lhoff555@yahoo.com
Thu, Sep 26 at 6:56 PM
Hello Lisa,
As discussed, market studies often come fairly early in the process of forming a co-op,
as understanding the sales potential is an important piece in developing your financial
feasibility study. Typically, a market study starts with a 2 day market visit/evaluation.
During that time, I would spend my time evaluating the market area, reviewing the
locations(s) under consideration, prevailing patterns of trade area access, the
distribution of population and demographic characteristics throughout the market, and
the competitive environment within which your co-op will operate. I could also evaluate
the best potential location(s) for the proposed co-op. Upon completion of the fieldwork, I
would return to my office to complete the analysis. More specifically, we would develop
the sales forecast for the new store and write the final report.
We utilize a rather extensive and proprietary database of market performance, trade
area, and sales performance data for many existing food stores. This information would
be used in evaluating the sales potential for the new store. The methodology whereby
this information would be used employs the concept of analogs. After determining the
trade area to be served by the new store, we would assemble the population and
demographic characteristics for each census tract in the new store's trade area. Next,
using analogous information from other stores in a proprietary database, we would
assign an estimated sales per capita level to each census tract. This sales per capita
level, when multiplied by each tract’s population, would result in an estimate of the sales
dollars to be derived from each trade area sector. Then, after summing these census
tract sales for the defined trade area, I would determine what level of sales would likely
be achieved from beyond the trade area. The total of trade area and beyond-trade-area
sales would constitute the estimate of sales potential for the proposed store.
The typical fee for conducting a market study is $8,900 plus expenses. Expenses will
include airfare, lodging, car rental and gas, meals, and incidentals (I typically ask clients
to budget $2400 for this travel). In addition, there will be two standard charges: $300 for
cartographic services and $100 for population and demographic data. A retainer fee of
$5,800 would be required to begin the study (which would be submitted by you at the
same time that you execute/sign a formal proposal from me). The remaining balance for
the market study will be invoiced through Columinate on a weekly basis, as work on the
project commences and as expenses are incurred. Columinate invoices are generally
payable upon receipt.
As far as timing, I would plan fieldwork on your study to occur approximately 6-8 weeks after
execution of a formal proposal and receipt of the retainer check. The final report would be
submitted within 2-3 weeks of completion of the fieldwork.
I would be happy to prepare a formal proposal for you when you ready to proceed. In the
meantime, please do not hesitate to reach out if you have any questions about a market study.
Thank you again,
Patrick
Page 1 of 3
Proposal for Food Co-op to address ‘Food Desert’ in
North West Part of Palm Springs
Lisa Hoff, December 27, 2024
Original Narrative Submission:
Co-ops keep more money in their local economy, increase access for locally produced food and
prioritize business practices that are good for the community. To determine the viability of a
food co-op it is necessary to look at 4 aspects: 1. Community Involvement: Seeks to gauge
interest, gather data on local needs, raise awareness and assess demand/available resources. 2.
The Market: Examine market area, size, demographics, competition and identify optimal
locations based on established criteria. 3. Site Search and Feasibility: Preliminary work supports
big picture store feasibility, with site criteria helping to narrow and focus the search which
provide a strong foundation for site selection and overall project feasibility. 4. Financial Pro-
Forma: Analyze key metrics that indicate the likelihood of a sustainable project such as the
development funds, assumptions for key operating expenses and financials for ten years of
operations which include income, balance sheet, cash flow.
History
How did ONE-PS become involved with looking to develop a food co-op feasibility study in this
part of Palm Springs as a way to deal with the ‘food desert’ in this part of the city?
ONE-PS was approached by individuals in some of the Neighborhood Organizations) in
CityDistricts 1 and 2. They were frustrated because they had been trying for years to get the city
to help them develop a supermarket in their community. They felt they were ignored because
they represented a less affluent and influential population. Many were people of color who felt
underserved and marginalized.
ONE-PS believed that the first step was to do a preliminary study in Districts 1 and 2 to gauge
the resident’s interests in a supermarket.
The study was conducted between April – June 2024 and was compiled at in person meetings in
both Districts as well as online. We learned that the vast majority, 92%, of those polled wanted a
supermarket and that 71% felt that current supermarkets were too far away.
In July, the full results were presented at a meeting that included Scott Stiles – City Manager,
Wayne Olson – Chief Economic Development Officer and Councilmember Grace Garner as well
as the ONE-PS Food Desert Committee. They were very interested in the data, thought it
strongly supported an effort to proceed in this direction and arranged to meet us again in
September.
Page 2 of 3
On September 19 ONE-PS met with Wayne Olson who explained that the city was actually
already in the process of investigating the possibility of creating a “marketplace” that would be
more than just a supermarket – one that would also contain retail stalls, restaurants, bars and yes,
produce stands. He suggested that we might do better to look into a feasibility study about the
viability of a food co-op. That a food co-op could very well fold into this “marketplace”
concept. He suggested that Measure J would be a good place to start. But it had a Sept. 30
deadline.
PLEASE SEE ATTACHMENT 1
Measure J Application
City of Palm Springs Mission Statement (taken from the Government page of PS website):
“Palm Springs is an inclusive world class city dedicated to providing excellent and responsive
public services to enhance the quality of life for current and future generations."
ONE-PS is asking for this grant to respond to a portion of the PS population that currently feels
underserved and marginalized in their quest for access to local, affordable and healthy food
choices.
According to the USDA, a food desert is created when two factors converge: Low income and
Low Access to healthy food.
Attached is a series of three USDA maps with the most recent information clearly indicating
that this community can rightly be called a food desert. PLEASE SEE: Attachment 1 Palm
Springs Food Desert Maps as per USDA.pdf
We researched a variety of 501C3 organizations specializing in helping communities assess their
ability to create a successful food co-op.
The importance of selecting the right consultant to do this cannot be overstated. At its core, a co-
op is a business. Cooperatives have a different ownership and investment structure than publicly
traded corporations, but cooperatives are not nonprofits. A retail food co-op may resemble a
typical grocery store on the outside, but the organizational and business needs of cooperatives are
different. Errors made by inexperienced advisors have contributed to more than one co-op
failure. A poor market study can lead a co-op to base its financial plans on unachievable goals.
With that in mind, we selected the foremost advisor in California regarding all things co-op,
California Center for Cooperative Development (CCCD). Their history is described in the
attached and there is also a sample of the kind of services available to their membership in the
Start Up document.
They are an umbrella co-op organization that really specializes in helping communities start a
co-op. But in this case they would be analyzing the various components that make for a
successful and profitable co-op to create a feasibility study. The consulting fee of $25,000 is for
Page 3 of 3
the development of a Community and Preliminary Feasibility Study and a Market Study. These
studies provide the foundation for gathering information on local needs that far exceeds the
preliminary study we conducted earlier this year. It gauges not only the interest but also
commitment of the community. It takes a big picture overview of all aspects of the development
of a co-op but has unique experience in working with the communities themselves.
It is because of this hands on, grass roots approach to communities that CCCD estimates it will
take a year to finish their part of this project.
In addition to CCCD, we understand that the Marketing and Financial projections are so critical
to this operation that we also felt it was necessary to bring in other expert advice. With that in
mind, we contacted a company by the name of Columinate that has made its reputation by
providing consultants in all areas for co-ops.
Columinate can make its consultants available to us immediately and the time frame would be
approximately 8 weeks from the beginning of their involvement.
The lead marketing consultant is Patrick Shabram, Location Research Consultant, G2G Research
Group within the Columinate organization. His fees total $17,400 and per the attached cover the
creation of a more in depth market study utilizing a proprietary database of market performance
and other data. It evaluates the population and demographic characteristics of the market in
addition to analyzing the competitive environment. He anticipates needing 4 weeks to develop
this report.
Immediately after the completion of his report, his findings will be provided to the financial
consultant at Columinate, Sarah Lebherz. She will develop pro forma financial statements that
report on key operating expenses, sources and uses of funds for development, financial
statements for 10 years of operations and key metrics necessary for success. Her fee is $7,500
and the project will take 4 weeks as well.
PLEASE SEE ATTACHMENT 3 CONSULTANTS INFORMATION
One of the criteria that you mentioned in the original specs for the Measure J applications was:
Smaller projects that require minimal staff time are preferred. As you can see, this application is
for a feasibility study accessing the expertise of outside consultants that does not involve city
manpower. The actual creation of a food co-op is a major expenditure. But the feasibility study
itself is not.
We are not asking for support, at this time, to actually create a food co-op. We are simply trying
to fund a feasibility study to determine if this is a viable option to support this community.
We hope you will support our endeavor to respond to a community in Palm Springs that has been
trying to find good, affordable, healthy food in their own neighborhood.
USDA Food Access Research Atlas (FARA)
(formerly: the Food Desert Locator)
•This USDA data uses census data to determine which census
tracts have inadequate access to food stores / groceries.
•The following three maps clearly indicate that the northwest
portion of Palm Springs has inadequate grocery resources.
The USDA’s Criteria are Income Level,
“Foodstore” Locations, and Vehicle Access
•The USDA divides its measurement criteria into two categories:
urban and rural.
•Census tracts with 2,500 or more persons is considered “urban”.
NOTE: Census Tract data documenting the populations numbers
may be found here: 2020 Census Demographic Data Map Viewer
•Northwest Palm Springs, therefore, for this purpose, is “urban”.
When Evaluating an Area, the USDA Uses Census
Data to Determine If Low Income (LI) is significant,
and if Low Access (LA) to food is significant
•The USDA divides its measurement criteria into two categories:
urban and rural.
•Census tracts with 2,500 or more persons is considered “urban”.
•Northwest Palm Springs, therefore, for this purpose, is “urban”.
Low Income (LI) is Determined as Follows
Low Income Measurements (LI)
•Tract Poverty Rate = or > 20%
•Tract Median Family Income = or < 80% of the metropolitan area or state
median income leve
Low Access (LA) is Determined as Follows,
Establishing Four Categories
Low Access Status Measurements (LA)
•Low Access (LA) a significant number of people (at least 500) or at least 33% of the census
tract population is greater than:
1.“LA at .5 / 10*” mile(s) or more from the nearest foodstore ORANGE
2.“LA at 1 / 10*” mile(s) or more from the nearest foodstore RED
3.“LA at 1 / 20*” mile(s) or more from the nearest foodstore
4.“LA using vehicle access: census tracts with 100 or more households without a vehicle
AND are more than ½ mile from the nearest foodstore YELLOW
The Following Three USDA Maps Indicate
Inadequate Food Access in Northwest Palm
Springs (“Food Deserts”) as Measured by Three
Sets of Criteria
•Low Access (LA) a significant number of people (at least 500) or at least 33% of the census
tract population is greater than:
1.“LA at .5 / 10*” mile(s) or more from the nearest foodstore ORANGE MAP
2.“LA at 1 / 10*” mile(s) or more from the nearest foodstore RED MAP
4. “LA using vehicle access: census tracts with 100 or more households without a vehicle
AND are more than ½ mile from the nearest foodstore YELLOW MAP