Wonderful stories all around!
On Thu, Dec 5, 2024, 9:46 AM Bob Giordano via TheThinkTank < thethinktank@lists.bikecollectives.org> wrote:
Hi,
I'll add some extra info and context to what Sam wrote:
We jumped around from garages, underground caverns, fairgrounds, and parks from 1996 to 2004; rents were tough to make and no stability.. although quite fun and engaging throughout,
We rented from 2005 to 2015 a 2,000 sq ft space for $500/mo, in the heart of Missoula. That space- and the whole 2 acres and one large, connected and mysterious 28,000 sq ft building was put up for sale in 2015. We decided to go for it. The owners laughed a couple times, then said.. 'OK, we'll give you six months to raise the 1.1 million.'
Campaign kicked into high gear! We either make it, or the property would be dozed and turned into condos.
The first week of the campaign saw us raise about 20k... then it all slowed down (middle of winter) and we were concerned we might not make it. Then... got a phone call saying 'what is your address, we have an anonymous donation.' One week later: a check for $100,000 arrived. Disbelief. Elation. Let's go!
We raised $100,000 more, and with one day left, a local woman said she would loan us the needed 900k, at 6%. whew!
We kept the existing tenants, which covered the local loan payments (6k), and the taxes and insurance.
The contract for deed had a stipulation: she could call in her note after 5 years. She just did that last year... and we worked out a new deal: we pay her 100k a year for 8 years. If we default, she gets 1/2 the property and we get 1/2 (with some unspecified finanaces to be worked out). We shall not default.
This past spring, I emailed 20 people that I thought might loan us the 1st 100k. None could do it. Although- several gave us outright donations totaling 20k.
With one month left, I approached a couple folks that were here at Free Cycles working on some bicycles. One of them loaned us 30k and the other 70k. So here we are, getting loans to pay off loans.
The original lender lowered her rate to 4%. The 30k loan is at 4%. The 70k loan is at 6%. The 30k lender was honest and said they will likely forgive the loan at some point.
We worked up promissory notes for all this, and had various folks help as they could.
Our goal: pay off all this debt and do more community/bike/health programs. It has not been easy, yet very worth it. If you've been here at Free Cycles Missoula, you know we are blessed with lots of space, and within the heart of the city (so key!).
I'd be happy to share more- such as our contract for deed, the one page promissory note, and other tips for such a campaign.
Our route has been difficult- managing tenants can be time consuming; also rewarding, with the synergy of having other community groups on site.
Being in 'control' of this large property has been awesome... We look forward to slow and steady growth in quality of service; and Missoula repricates.
So we are definitely not free and clear, yet we're heading in that direction! thanks,
Bob Giordano, Director, Free Cycles Missoula, www.freecycles.org, 406.541.7284, Missoula Institute for Sustainable Transportation, www.strans.org, mist@strans.org, 406.830.7676
On 2024-09-25 5:12 pm, Sam Haraldson via TheThinkTank wrote:
Congratulations to Lansing Bike Coop - - that's such awesome news to hear!
Another to add to the list is FreeCycles in Missoula, MT, USA. They own their space including multiple buildings and a nice chunk of land. That purchase was managed through some serious fund raising efforts led by Bob Giordano (a long time member of this list).
https://missoulacurrent.com/property-line-free-cycles-envisions-future/
https://www.freecycles.org/recently/2016/8/3/cycles-of-change-capital-campai... https://www.freecycles.org/property-vision
- Sam H., Bozeman Bike Kitchen
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