The Sheelytown Limited Cooperative Association (LCA) is a cooperative made up of local businesses in the Sheelytown neighborhood. The LCA’s mission is to revitalize the area by developing new commercial properties that are owned and operated by the member businesses. Through the cooperative, members gain access to prime commercial real estate and the benefits of cooperative ownership.

The LCA functions as a cooperative organization where member businesses contribute capital in exchange for an ownership stake. The LCA then develops commercial properties and leases them back to the member businesses at favorable terms. Profits from the cooperative are distributed to the members based on their level of participation through patronage dividends.

The LCA is open to local businesses that:

• Operate in or plan to operate in the Sheelytown neighborhood.

• Have the ability to contribute capital to the cooperative.

• Commit to being an active participant in the cooperative’s governance and activities.

By joining the LCA, your business will:

• Own equity in the commercial property developed by the cooperative.

• Secure long-term, affordable, prime commercial space.

• Participate in the governance of the cooperative, giving you a say in key decisions.

• Receive patronage dividends, which are profit distributions based on your participation in the cooperative.

• Contribute to the revitalization of Sheelytown and be part of a community-driven development initiative.

The LCA distributes profits to members in the form of patronage dividends, which are based on the member’s participation in the cooperative (e.g., the square footage they occupy). Dividends can be distributed in cash or reinvested as additional equity in the cooperative, depending on the financial performance and decisions made by the Board of Directors.

To become a member of the Sheelytown LCA, you must:

• Complete the Letter of Interest.

• If selected for consideration, complete the Membership Application and submit it with your financial statements.

• Make an initial capital contribution to the cooperative.

• Commit to actively participating in the governance of the cooperative by attending meetings and voting on important matters.

• Comply with the terms of the cooperative’s Bylaws and Membership Agreement.

The amount of capital required depends on the square footage of space you are requesting and the overall needs of the cooperative. Details about the initial contribution will be discussed with each prospective member, and a capital contribution schedule will be provided.

Space is allocated based on each business’s needs and the total available commercial space. Members are required to specify their requested square footage in their application, and the LCA will allocate space based on availability and the needs of the cooperative.

Each member of the cooperative has voting rights, which may either be one vote per member or voting proportional to their capital contribution, depending on the cooperative’s Bylaws. Voting allows members to participate in key decisions, including electing the Board of Directors and approving major cooperative initiatives.

Membership interests are non-transferable, except with the prior written consent of the Board of Directors. This ensures that ownership remains within the local business community. If you decide to leave the cooperative or cease operations, the cooperative may redeem your membership interest in accordance with the terms of the Bylaws.

The LCA is governed by a Board of Directors, which is elected by the members. The Board is responsible for overseeing the operations of the cooperative, making financial decisions, and setting policies. Day-to-day management of the cooperative is handled by the executive team, which reports to the Board.

The LCA is committed to the revitalization of Sheelytown by developing modern commercial spaces and providing local businesses with affordable ownership options. By creating a member-driven cooperative, we ensure that the businesses benefiting from the revitalization are those invested in the community’s long-term success. This structure keeps wealth within the community and fosters sustainable economic growth.

Yes, you can leave the LCA, subject to the terms of your Membership Agreement and the cooperative’s Bylaws. Upon leaving, your membership interest may be redeemed by the cooperative, and any outstanding financial obligations must be settled before your departure.

Yes, members of the LCA have the option to leave the cooperative and purchase the property they occupy outright, based on a specific pricing schedule that resembles an amortization schedule.

The purchase price for your property will be determined by a pre-agreed amortization schedule, which sets the price at various stages of your membership. This schedule will take into account the following factors:

• Initial property value: The value of the property at the time you join the LCA.

• Time spent as a member: The longer you lease the property as a member, the lower the purchase price will be, similar to reducing the principal balance on a loan.

• Capital contributions: Your capital contributions to the cooperative may also be factored into the purchase price, giving you credit for your equity stake in the LCA.

• The amortization schedule will outline the declining purchase price over time, ensuring that members who have been with the cooperative longer can benefit from a reduced price when they decide to purchase their property.