[Lincolnparkdc] Save Mott's Market! - update
Noah Bopp
noah_bopp at yahoo.com
Wed Apr 6 17:53:58 EDT 2022
Hi Cricket,
Thanks for sharing your questions and point of view. A few short replies:
>>1. As far as I can tell, this effort is not actually to save an existing business or support the previous ownership/livelihood of the Cho's. It's to start a new one, essentially. There would be new owners. New employees. New investors. Correct?
To be clear, the Chos did not own Mott's. The Chois (note the "i") own Mott's.
If the Chos had given us any warning that they were struggling, we would have launched an effort to save them. Alas, we had about two days' notice that Mott's was closing, and the Chos indicated that they wanted to move on rather than stay. (If they were interested in returning, we would be excited to have them do so.) And the Chois (who no longer live in the neighborhood) have decided that it is time to move on, too.
So yes, new owners, new employees, new investors.
>>2. Would the Cho's be selling any of the business to the new "owners"? (Including fixed assets -- e.g. point of sale software, cash register, shelving, inventory, etc.) Would they be advising (for a fee)?
The Chos have indicated a willingness to sell us some assets, and some assets convey with the building. To my knowledge, they are not interested in advising us for a fee, but we would certainly pursue this if/when we purchase the building.
>>3. Who exactly would be running the business? What is this person or group of people's experience and capacity to do so? What profit or salary would they expect? How will the group make decisions? Who's in charge? Who will do the work?
There are a variety of options here. The business (nonprofit or for profit--a group of neighbors is researching the nonprofit option), which the ownership group would vet (as any landlord would) would rent the store, run the business, determine salaries, etc.
>>4. Would the business hire employees? What kind of compensation and management structure will be in place? Will they have opportunities for profit-sharing? Would investors be ok with that?
Here's a key point: the investors (I am one of them) are not expecting to make money from this. We don't want to _lose_ money, but nobody is expecting much monetary return. We are hoping for a social return; more on that below.
The business, not the investor group, would hire employees and determine compensation/management structure. If the employees were able to profit-share, I'm sure that would make such a company's proposal more attractive to us.
>>5. Related to the above, could this be structured like a social enterprise, with an aim to offer steady employment to groups that face barriers (e.g. returning citizens, BIPOC, veterans, etc.)? Have goals or values like this been considered on a mission or a structural basis? (That's something I could get behind...)
Yes, and I could put you in touch with the working group that is thinking this aspect through. There is already a long list of ideas. (As a side/related note: one of my personal goals is to ensure that whatever business occupies the space is welcoming to everyone--as much as we might love Wine & Butter, that space really only serves a subset of our community.)
>>6. What kind of return on investment can investors expect, and on what timeline? How is this codified? What is the legal pathway/agreement for investing?
As I said above, no one is doing this for the money. We don't want to lose money, but this is about serving the community. If you are interested in investing (it sounds like you are skeptical, but I can always hope I've convinced you!), please respond to me privately and I will put you in touch with the folks who can share the term sheet, answer specific questions, etc.
>>7. What is the legal infrastructure for this venture? Is a group forming an LLC? Have they taken the steps to register with the city, or do they know what this process entails?
We are forming a multi-member LLC. We have some highly qualified folks on the team who have a great deal of experience in these matters. This part is locked down.
>>8. Is the business viable? If the previous owners found the business no longer profitable/viable, do the new prospective owners have an understanding of why (not just COVID, I'd presume)? Has anyone seen the books?
In short, yes, we have seen the books. And we believe a business can be viable in this location, particularly with community support. I am not interested in disparaging the way the Chos ran their business, as they were beloved in our community. I will just say that we have identified many opportunities that the Chos did not take.
>>I get that the answers to many of these questions are TBD, and investors won't require all of these details, but I'd want to have a sense of at least some of them in order to invest. I suspect there are others who feel the same way.
We want to be as transparent as possible, and we really are just a group of neighbors doing our best under a huge time crunch (we need to have investors lined up by tonight!). To anyone seriously considering a key major investment, we will take the time to answer any questions before you invest.
>>But the cynic in me says this is just a nostalgia move, to preserve some history and maintain convenience for neighbors.
I may not be able to change your mind on this, but I do strongly disagree with you here.
First, I would invite you to unpack what you mean by "nostalgia." Gentrification hasn't been great for many people in our coalition. (Make no mistake here: the alternative to our project is more gentrification.) What you call "nostalgia" I might call "helping those who have lived here longer than I have--many of whom are African American--still feel welcome." Is saving Mott's the only way to accomplish this? Of course not. But I can tell you that many longtime residents are supporting our cause. (By the way, have you done any research into DC's food coop movement in the 1970s and 1980s? Happy to send you information on this; my guess is that you would love it!)
Second, I would invite you to consider that sometimes preserving history is important. (This is why the city spent so much money preserving Eastern Market a few years ago, why many have mixed feelings about U Street's recent ritzification, and why I think that Metro PCS store in Shaw should be allowed to blast go-go music no matter how many residents of the new luxury condo building across the street complain.) Mott's was founded by Jews fleeing the pogroms in Russia and was an original member of the DGS grocery store cooperative, which fought anti-Semitism and brought lower prices to neighborhoods around DC. It is/was the last remaining corner grocery store (of many) within walking distance; a small gathering place for community in a world that is increasingly fractured. It has been part of the community's daily quality of life for over 100 years. Is it the most important thing in the world? Of course not. But I think it is worth preserving.
>>Is this truly a public good? Whom does it benefit most? Personally, I'd love to pour my support behind saving the livelihood of a current business owner who is struggling.
These are questions that are top of mind for me and many in our group. I would invite you to imagine that this is not an either-or (Mott's or Eastern Market) situation; it is a both-and. Remember that the alternative here is luxury condos. Couldn't Mott's be a place that provides economic opportunity for the disenfranchised and is a community hub for those who care about making our community and world more welcoming? I think it could be.
Please don't take my thoughts as 100% representative of our entire group; again, we are just a group of neighbors trying to do a thing that we believe will keep/add good. This may not be a perfect enterprise, but we are confident that it will beat the alternative.
I hope that helps!
--Noah
On Wed, Apr 6, 2022 at 2:14 PM Catherine Schoenwetter <cathy at schoenwetter.net> wrote:
>
> Hello Neighbors,
> A group of neighbors formed SaveMottsMarket (mottsmarket.com) just before Mott's closed, to engage neighbors in preserving the long-standing market. The group will be presenting a bid for 233 12th St SE (Mott's) this Friday. As they are going up against developers, they need to present as strong a bid as possible! If you are interested in investing, please email SaveMottsMarket at gmail.com as soon as possible. Thank you!
> Best,
> Catherine
>
>> On Mar 29, 2022, at 2:04 PM, mary ann <maryann.brazell at gmail.com> wrote:
>>
>>
>> Someone should call ABRA to see if possible to get the license. ABRA charges 1300/year for wine/beer and I think $2600 for beer/wine and hard alcohol.
>>
>> On Tue, Mar 29, 2022 at 11:42 AM Marche' Maine <markrichardgrace at gmail.com> wrote:
>>> It would be great if it could sell liquor with competitive pricing.
>>>
>>> On Tue, Mar 29, 2022, 5:37 PM mary ann <maryann.brazell at gmail.com> wrote:
>>>> Hi all-
>>>>
>>>> I have owned The Cupboard for almost 10 years (1504 East Capitol St).
>>>>
>>>> My thoughts:
>>>> - Is the plan to buy the building and then have someone rent upstairs apartment?
>>>> -Who will run the store? Will need to have someone to oversee deliveries, supplies for the store. Deal with ABRA for the wine, DCRA for permitting, accountant, cash management, payroll etc. And someone to oversee running the store will make more than minimum wage.
>>>> - would you keep rent at the same level? Thought I saw that it was $3500/month. Are there escalations in contract? Do we know if that includes property tax?
>>>> -Assume people have been in touch with owner
>>>> - clearly pandemic cost them business but would need to see p&l and tax return to see if was just pandemic or has been losing $ for years.
>>>> - investments by community- i am assuming people want a return on that $ or is it more of a donation? If a return is expected- need to look at it as a loan and factor that in to the monthly expenses.
>>>> -should figure out what else to add to inventory to make $- hard alcohol? Small deli or even bring sandwiches, bagels in to sell…
>>>>
>>>> I love MOTT’s and was sad to see it close.
>>>>
>>>> Anyway just some initial thoughts
>>>>
>>>> Mary Ann
>>>> 142 13th St SE
>>>>
>>>>
>>>> On Tue, Mar 29, 2022 at 11:18 AM Paul Krupa <paul.krupa at gmail.com> wrote:
>>>>> I support this effort. Anxious to learn more.
>>>>> Paul and Jessica
>>>>> 159 Kentucky Avenue
>>>>>
>>>>> Sent from my iPhone
>>>>>
>>>>>> On Mar 29, 2022, at 10:29, Helene Monteil <hmonteil73 at gmail.com> wrote:
>>>>>>
>>>>>>
>>>>>> Same here!
>>>>>>
>>>>>> On Tue, Mar 29, 2022 at 7:32 AM Catherine Schoenwetter <cathy at schoenwetter.net> wrote:
>>>>>>> Thank you for your efforts. I saw the building and property being measured when I walked by last week, and hoped it hadn't been sold privately. Looking forward to updates on how we can help.
>>>>>>> Catherine
>>>>>>>
>>>>>>>> On Mar 28, 2022, at 10:53 PM, Noah Bopp <noah_bopp at yahoo.com> wrote:
>>>>>>>>
>>>>>>>> Neighbors,
>>>>>>>>
>>>>>>>> You're going to hear a lot more about this in the future, but many of us participated in a call tonight about saving Mott's Market, a beloved corner store at 233 12th Street SE that has benefited our neighborhood for 80-90 years. Tomorrow, a developer is likely to submit an offer to purchase the property and convert it to something other than its current use (likely condos).
>>>>>>>>
>>>>>>>> Though we have no ill will toward any developer, we are eager to preserve a bit of old Capitol Hill and maintain the convenience and camaraderie that Mott's has long provided. And we have enough momentum (and funding) to put up a fight.
>>>>>>>>
>>>>>>>> As I said, much more to come. But if you are interested in helping us, please contact me, Scott Davis, Christine Campbell, or Jordan LaCrosse (all CC'ed here). We have already raised substantial early funds and have many volunteers, and we could certainly use more early investors and advocates.
>>>>>>>>
>>>>>>>> Thank you, and long live Mott's!
>>>>>>>>
>>>>>>>> --Noah
>>>>>>>>
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