discover what steps led to the opening of our co-op
Early Years
The concept of establishing a cooperative (co-op) in McHenry County, Illinois, emerged from discussions among a group of friends seeking to strengthen their community. In early 2013, following numerous conversations and determined efforts, a gathering of several individuals took place on a chilly March evening. They collectively decided to create a community-owned grocery store in McHenry County, embarking on an unpredictable and awe-inspiring journey. This led to the formation of a steering team, community surveys, and the compilation of a mailing list of individuals who supported the idea of opening a food co-op. Subsequent meetings followed. Initially known as the McHenry County Food Cooperative, this name remains the co-op’s legal title. In late 2013, during a Steering Team meeting, attendees each contributed $20, which was forwarded to the State of Illinois for incorporation as a cooperative business.
In January 2014, the McHenry County Food Cooperative officially received incorporation status under Illinois Cooperative Law. Shortly thereafter, on Earth Day (April 22nd), the co-op celebrated its “birthday” by launching the sale of common ownership shares at a public event held at Stage Left Café, next to the historic Opera House in Woodstock, Illinois. Nearly 100 people attended this event, eager to learn more about the co-op, and it was here that the name “Food Shed Co-op” was revealed to the public for the first time.
In October 2014, during the inaugural annual owner meeting, the first board of directors was elected by co-op owners. The commitment of the steering team and subsequent boards to thoroughly understand cooperatives was evident through activities such as reading, networking, hosting guest speakers, visiting other food co-ops, and participating in various conventions and educational opportunities. Their passion extended to sharing this newfound knowledge with the community through events, movie screenings, webinars, and workshops.
Here is a summary of their achievements in during the first few years, between 2013 – 2016:
- Participation in over 250 events.
- Securing a USDA Local Food Promotion Program (LFPP) feasibility grant.
- Completion of a market study confirming the potential for success.
- Reaching 500 owner-members by mid-2016, earning recognition as one of the top food co-op startups in North America.
Location Announced
After an exhaustive four-year search for a suitable location in McHenry County, the Food Shed Co-op made an exciting announcement in December 2020: the purchase of land for their grocery store at the intersection of US HWY 14 and Lake Shore Drive, situated between Woodstock and Crystal Lake, Illinois. This news reinvigorated the community after years of gradual growth since 2016. The board of directors set a goal to reach 1,000 owner-members by July 2021, a crucial milestone before initiating the capital campaign known as the “Community Investment Campaign (CIC).”
By August 2021, the owner-member goal had been met, and the CIC was launched. The ambitious financial target was to raise $1.75 million within the community between August 15th and October 15th of that year. Owners purchased Preferred Shares and provided Loans to the co-op, reducing reliance on costly commercial loans. By October 15th, the Food Shed had raised slightly over $1 million. The campaign was extended until Thanksgiving 2021, ultimately raising just over $1.7 million, falling just $48,000 short of the $1.75 million CIC goal. Consequently, the board voted to proceed with the next steps to build the community-owned grocery store of their collective dreams.
Simultaneously, as the CIC continued, a nationwide search unfolded throughout most of 2021 to recruit a highly skilled professional within the grocery industry who could lead the up-and-coming food cooperative. This endeavor eventually led to the co-op’s introduction to Mr. Peter Waldmann, boasting over 30 years of experience in mainstream and specialty grocery stores. Peter officially joined the Food Shed Co-op remotely in January 2022 and relocated from Seattle to Woodstock in March 2022.
Hiring the Co-op's First GM
Upon his arrival, Peter Waldmann swiftly set into motion the process of gathering all the essential components needed to bring the community-owned grocery store to life. Little did the board of directors know, when they brought Peter on board, that he possessed the capabilities to also serve as the project manager, orchestrating the store’s construction. Shortly after his arrival, he conducted interviews and, in due course, selected an architect (DDCA) and a construction firm (Gallant), both hailing from Crystal Lake, Illinois, to handle the design and construction of the building. Additionally, Peter has been diligently collaborating with equipment and other suppliers to ensure the store is outfitted to the highest standards.
Following the successful completion of the CIC, the next crucial phase was securing the remaining funds essential for the construction, equipping, and staffing of the store. The Board of Directors had previously worked with The State Bank Group (TSBG) of Wonder Lake, Illinois to provide commercial financing to purchase the store site. Needing even more funds from a commercial bank at this point, TSBG came through again. Interestingly, the co-op’s liaison at the bank possessed valuable experience in collaborating with the USDA to guarantee loans for agricultural projects, including cooperative ventures. Given the unique structure of food co-ops, with many owner-members, most banks were skeptical about handling such ambitious plans. TSBG, on the other hand, successfully secured a USDA guarantee to mitigate the loan’s risk, as they could not rely on approximately 1,850 owner-members at the time to back the loan.
During over fourteen months of working closely with TSBG and the USDA to finalize the loan details, inflation and interest rates underwent significant increases. Consequently, the USDA required the co-op to raise additional community funds before granting the loan guarantee to TSBG. In response to this, the co-op launched the Community Investment Campaign version 2 (CIC.V2) in April 2023, with the aim of raising an additional $485,000 from owner-members, investors, and donors.
Vote to Begin Construction
Even before all necessary financing had been secured, the Board of Directors felt the need to give the project a push. Thus, they voted to start construction of the store and held a very visible groundbreaking ceremony on July 18th to announce this to the public. This leap of faith by the Board turned out to be a great decision, since it generated a lot of excitement in the entire community. The co-op experienced a surge in new owner-member growth and inspired significant investment in the CIC.V2.
Although CIC.V2 had a slow start, it gained momentum after the groundbreaking ceremony in mid-July. By the August 31st deadline, the co-op had surpassed the $485,000 budget and had raised over $1,000,000 during CIC.V2.
To honor the dedication and all of the hard work contributed by hundreds of owner-member volunteers, who have tirelessly worked to bring the Food Shed Co-op to McHenry County, please consider becoming a FOUNDING owner-member before the store opens and make your plans to shop often at the Food Shed Co-op when we open in 2024.
