The sky is the limit for a newly expanded and relocated Marquette Food Co-op

The "Early 2013" opening date promised on its new building's street-facing roof has come and gone, but Marquette Food Co-op finally looks poised to move out of its cramped Baraga Avenue storefront and into the 20,000-square-foot confines of the old Angeli Grocery at Washington and 7th Street in downtown Marquette.

It hasn't been an easy road, and challenges remain. Matt Gougeon, Marquette Food Co-op's general manager, points to the complex permitting system and the byzantine securities regulations that govern the issuance of new debt. "Our biggest challenge has been bureaucratic and administrative," he says.

Worse, last fall's government shutdown jeopardized a key piece of the expansion project's financing, a USDA-guaranteed loan from Range Bank. While the bank was ultimately able to retool the loan package so that the project could proceed, the co-op still aims to raise as much cash as possible--over and above a $615,000 Michigan Economic Development Corporation loan and additional financing packages from the Northcountry Cooperative Development Fund and Range Bank--from its members.

According to Gougeon, members have raised $340,000 so far. More would be welcome. "Our offering allows us to sell $1 million in preferred stock," he says. "Direct member investment is the best investment for this project, and not simply because it is the least expensive money in the pot." With more "skin in the game," members are more likely to participate in co-op events, meetings and votes.

Paid-up members can contribute in two ways. After reviewing the required disclosure document (available at the co-op), individuals can purchase up to 25 preferred shares for $1,000 each. These shares don't confer additional voting rights, but they do pay a cool 4 percent interest. Those who aren't prepared to shell out a grand or two can purchase the co-op's Expansion Gift Certificates, which can be exchanged for groceries once the new store is open. As a bonus, the co-op gives all certificate buyers an immediately redeemable shopping coupon worth 10 percent of their certificate's total value.

Regardless of how much the co-op raises, its expansion will have a significant impact on downtown Marquette's economy. Gougeon has already expanded the organization's payroll by 10 employees and may hire as many as 20 more by the end of March.

For the first time ever, members (and non-members) will also be able to buy grab-and-go sandwiches, salads, hot and cold meals made to order, baked goods, and other items at the co-op's prepared foods counter. Meanwhile, a full-service deli and fresh meat department "will make shopping here an all-in-one visit," says Gougeon.

MFC, as it's known, has been on an impressive tear. The place ran with an all-volunteer staff until the late 1990s; it now has about 60 employees and membership rolls approaching 4,000. If that kind of 15-year run is possible in an uneven economy and a cramped headquarters space, Gougeon argues, the sky is the limit for the next 10 or 15 years.

"This expansion is a direct result of the desire of the members for more of what we currently do, but what future needs will our...members have?" he asks. "A few committed people can do great things for themselves and their community."

Potential initiatives include healthcare and housing cooperatives for current and future members, an energy cooperative that could drive down costs or encourage investment in alternative sources of energy, and additional food outlets in Marquette County and beyond. Based on current growth trends, Gougeon expects to add 1,500 new members--more than 25 percent of MFC's existing membership--over the next few years. That added purchasing power is sure to boost the organization's ability to attract investment, spearhead new projects and expand existing initiatives.

One existing piece of the programming pie is set to get a lot bigger once the expansion is done: the co-op's longstanding relationship with U.P. agriculture. While it's already one of the largest individual buyers of U.P. grown and produced food, says Gougeon, "We also develop other markets for [local producers], provide training and educational opportunities, work on food safety issues...and facilitate fun marketing opportunities in the form of events like wildly popular farm tours."

Through a partnership with NMU and Northern Initiatives, the organization also administers the Marquette Hoop House Pilot Project, an educational initiative that showcases sustainable, cold-weather agricultural practices and offers classes, demonstrations, research space and internship opportunities for current and aspiring farmers. And MFC will serve as the Central Region hub for the U.P. Food Exchange, an ambitious new project that connects locavores with U.P.-sourced ingredients, farmers with new markets, and retailers with new customers. The new Washington Street location will anchor the exchange's bulk distribution efforts, connecting local restaurants and institutions with discounted, locally sourced meats and produce.

Marquette Food Co-op offers plenty of benefits for members, but it's not a members-only club. With a tentative opening date set for late April, Marquette County residents can check out its new digs in a matter of months.

Brian Martucci writes about business, finance, food, drink and anything else that catches his fancy. When he's not working out of his office on Marquette's East Side, you can find him stretching his legs on the trails or sampling local flavors at Blackrocks and the Ore Dock.