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Hey all you co-operators out there, welcome to Smooth Co-operators, a Belfast Community

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Co-op program.

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I'm Emily.

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And I'm Alessandra.

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And we're here to talk to you about the cooperative business model and the Belfast Community Cooperative

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in particular.

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And today we are going to talk about principle three, member economic participation.

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So one of the things that makes co-ops different from other businesses is that they all adhere

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to these seven cooperative principles.

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We are walking you through them and we have come now to the third cooperative principle

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which is member economic participation.

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The International Cooperative Alliance defined and established these seven principles over

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time and I think the last time they revised them was in 1995.

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And so the definition of member economic participation according to the International

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Cooperative Alliance is, members contribute equitably to and democratically control the

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capital of their cooperative.

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At least part of that capital is usually the common property of the cooperative.

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Members usually receive limited compensation if any on capital subscribed as a condition

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of membership.

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Members allocate surpluses for any of the following purposes, developing their cooperative

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possibly by setting up reserves, part of which at least would be indivisible, benefiting

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members in proportion to their transactions with the cooperative and supporting other

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activities approved by the membership.

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So basically when you decide to join a co-op, there's an investment that you have to make.

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Sometimes for a food co-op say, it's a smaller investment like $200, sometimes for a worker

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co-op or a more industrial co-op it's like $10,000.

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Basically the co-op is coming together to meet the needs of the community and they have

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to figure out how much money they need to raise to start meeting those needs.

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But in this case, the capital is not the master.

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The co-op doesn't exist to have a lot of money or to make a lot of money, but rather the

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capital is the servant.

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The capital is there to help be a tool to be utilized so that these businesses do well

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and end up serving their owners.

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There are some businesses where the capital is a little more stagnant.

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It's a startup cost and then you kind of run the business from there.

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For a consumer co-op it's a little bit different because for us our capital is like kind of

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constantly flowing in in terms of member participation because people are shopping there on a daily,

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weekly, monthly basis.

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As the co-op makes money and puts money into the bank and there's a surplus, that money

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is then the shared capital of the owners.

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We should talk about ways that owners put capital into the business.

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Obviously, the first one is going to be by shopping.

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People who are actually utilizing the store and purchasing the goods that they need from

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the co-op, which was made to provide those for them.

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Recently, we put together a new brochure called Ways to Save.

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We also have a website with the same name because there is the perception that the co-op

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is an expensive place to shop.

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It's true.

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Right now, if you wanted to go in and buy an eight dollar jar of sardines, we've got

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that for you.

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Some people really appreciate that.

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Other people would like to buy a two dollar jar of sardines and we also have that.

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In the Ways to Save brochure, it lets you know that there's all these different colored

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circles around the store that give you a clue as to what that product is.

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Sometimes that means it's on sale with co-op deals.

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Sometimes it means that it's always the lowest price that it can be and that's co-op basics.

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Sometimes it means that our store has decided to put a specific product on sale and that's

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called Fresh Picks.

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There's also ways to save specifically if you are an owner.

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Economic participation, buying groceries at the store.

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When you're an owner, you get owner reward points.

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For every dollar that you spend, you get 1% of that back.

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It goes into a little savings account.

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Once that savings account hits $3, you get to use it on any purchase like a coupon.

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We also get 2% back on local food.

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I love that part.

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Local products.

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Super cool.

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If you shop locally, then your savings account gets bigger faster.

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For owners, we also have a pre-ordering program.

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If there's a special jar of salad dressing or a special rice that you use all the time,

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you can order it in bulk or order it by the case and then you get a 15% discount on that

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because we don't have to unpack it and put it on the shelf.

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We keep it in its box.

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We call you up and you come pick it up so there's less labor.

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We can extend that benefit to our owners.

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Here's a secret.

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I do that for toilet paper all the time.

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It's the best.

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The other thing we wanted to talk about, just to put it out there, we sat down to talk about

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member participation and created a list of all of the different ways that people participate

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in the co-op.

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The list that we made was long and kind of overwhelming.

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I don't even think that we got to the end of it.

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There are so many different ways that owners participate in the co-op and that the co-op

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then participates in the community and gives back to its owners.

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Whatever that flow of money and goods is, the whole intention is to have the money coming

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into the co-op and the goods leaving the co-op end up in a positive place to try to impact

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the community in a positive way by buying locally from farmers or buying locally from

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other producers by having local banks do our payroll, by paying people who work locally,

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and then they pay their bills locally and they pay rent locally.

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A lot of the money that is generated by the co-op goes back out into the community and

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stays local.

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Some big box stores are based overseas and all the money that gets spent there leaves.

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It leaves this county and it leaves this state and it leaves this country.

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We really try to put that emphasis on that economic participation that the co-op keeps

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as much money local as we possibly can.

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The systems are not set up to make that easy to do.

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There are places where we kind of don't have a choice, but anytime we do have a choice

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and that choice leads to somebody who is local, that's what we try to do if it's for the best

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of the co-op and for the best of our owners.

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With that in mind too, it's sort of related because it's about economic participation,

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but it's not related, but I feel really connected to the Common Sense Program, which is rounding

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up at the register.

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I feel like it's amazing that our owners put forward all of these organizations that they're

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really passionate about and then the owners vote for the top 12 and those top 12 become

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the organizations that we do fundraising for every month is a different organization and

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that changes throughout the year and 100% of those donations that come through the co-op.

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We're just sort of the middle person in all of this.

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We talk to the organizations, we make a couple posters and then it's really the community

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that shows up and rounds up at the register, but that's a way that we participate in the

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economy, the members as a whole, because we are deciding that these organizations and

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their values are important enough that the co-op supports them and represents them.

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$5,000 to an organization who only has a $25,000 annual budget is a huge amount of money and

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it's like very impressive and very impactful.

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So impactful for all of those organizations throughout the month and throughout the year.

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And that's thanks to all of you who come in, shop at the co-op and donate your sense to

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these organizations.

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It's really incredible and we've had some record breaking months recently.

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So a huge thank you to everyone who participates.

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Yeah, it's really amazing.

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Well, I'd love to shout out a little bit about our core program that is cooperative ownership

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reaching everyone.

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So we do have a program that provides an at register discount for people who are receiving

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some sort of financial assistance from either the state or federal government.

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So we do require that they are participating in one of these assistance programs, but once

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that has been shown to be the case, then people can actually receive a 10% discount

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right at the register on their purchases that they make.

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And I think that has been hugely beneficial to our population here in Waldo County.

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If I remember correctly, we used to have other at register discounts, but we don't anymore.

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Why do we do that?

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I know many of you will remember when we had a senior discount.

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Historically, it was every Tuesday.

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It became pretty fun for me as a cashier at the time.

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You made a lot of friends.

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People still love you and remember you from those Tuesdays.

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Really enjoyed cashiering on those Tuesdays.

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That was really fun.

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However, in 2018, the board and operations were doing a lot of looking at our financial

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health and well-being.

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What they were seeing is that at register discount that we're providing, particularly

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with the senior discount, ended up being that we were giving away our profits before we

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were making them.

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This is also the time that the board and operations were very seriously looking at doing an expansion,

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whether building a new store or renovating the store that we have currently.

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They were trying to figure out what they needed to do to make that financially feasible.

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Signing up those at register discounts are those places where we weren't giving ourselves

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a choice about what to do with our profits.

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We were just saying no matter what, they're going to go away instead of after the fact

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like, okay, we have this surplus.

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What are we going to do with it?

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You just mentioned the core discount.

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It does mean that any seniors or any owners at all who need to have assistance, we understand

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that and we totally want them to have that assistance.

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But everybody has different income levels and different backgrounds.

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It does mean that there were people who were getting the discount who perhaps it wasn't

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a matter of eating food that day or not.

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It was just like a real benefit.

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I think too that what's notable for me is that while we were doing the at register discount

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including the quarterly discount days, we were not able to give out patronage dividend.

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Patronage dividend means that at the end of the fiscal year when the co-op has made

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money and there's a profit, the board decide what percentage of that profit goes back to

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the owners.

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That is based on how much you shop.

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The more you shop, the better the co-op does, the more patronage dividend you get back.

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The whole point of distributing that surplus goes back to this principle where the capital

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that the co-op has created is shared capital.

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Something that I get asked a lot, why do the cashiers ask for my owner number every single

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time I shop?

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Every time.

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And they do this because of patronage dividend.

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Basically we want to make sure that what you are spending at the co-op is reflected in

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the dividend that you receive at the end of the fiscal year.

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The cashiers need to be diligent in making sure that they hear the number correctly,

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they type the number incorrectly, and that they have selected the appropriate name.

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I apologize to all those people who get frustrated about that, but it really is due diligence.

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We want you to have the correct patronage dividend at the end of the year.

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The more you spend at the co-op, the larger your patronage dividend and actually owner

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rewards.

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Once we switched over to that a couple of years ago, that starts to make a big difference

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because if you forget to give your owner number, for example, or you accidentally say somebody

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else's and they don't ask you what your name is or there's no confirmation that it's really

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you, you could go on to spend $200 on somebody else's account or on no owner account and

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then you actually miss out on those owner rewards, which really do add up.

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I love owner rewards.

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I'm saving all of mine for the family holiday dinner that I have to be in charge of this

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year and hopefully that turkey will be a lot less hit to my wallet.

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That's amazing because I buy snacks for mine when I don't have cash and I'm like, I wonder

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if I have owner rewards.

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You have to spend $3 at a time, so sometimes I buy like a $2.50 thing and then I round

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up for common sense and I feel good.

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I like how that ties in.

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Yeah.

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When people invest in the store, I don't know if we all think about it as like buying our

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little part of the store or as like being in charge of it, but it really is that.

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Think about the equity investment and becoming fully vested.

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There's going to be a lot more talk about this later, but if you pay $15 a year and

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you need to pay $200, like my quick math tells me that that's about 13 years before

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people have fully paid in their share, which is totally fine.

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We kept it that way because it felt like an accessible amount of money.

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It felt like it was on par with what we were asking people to participate in in years past.

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When you think about investing in a company, nobody's going to be like, hey, can I become

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fully vested over the next 13 years?

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They're going to be like, you have to pay in nap.

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We want to have this successful and stable business and that's why we need your investment

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is because we need you to be emotionally and also monetarily invested in this business.

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I think that if we can encourage people to pay their equity a little bit sooner or pay

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it in full if they can afford it, that there really is stability in that because the call

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doesn't use that money.

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That money goes into a bank account and is there to show ourselves or show investors

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or show our accountants that we are a solid business, that we have a lot of backing in

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our community.

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Hmm.

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Okay.

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What's next?

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That member economic participation.

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Is there anything that we're missing about it or are there any questions you guys have?

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I haven't really gone down this road yet, but it's like, we want to hear from you.

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I think I want to hear from people in any way that they can, whether they show up on

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every other Friday.

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We do community outreach tabling in front of the store from 11 to two where I set up

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this beautiful vegetable tablecloth that Emily hemmed for us and we hand out ways to save

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brochures and annual reports and maybe free snacks and water.

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I want you to tell me what your favorite bar is.

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I want you to ask me when cherries are coming in.

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I want to hear about all your fun ideas about the new store, about paper, about art.

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I want you to tell me about anything that has to do with the co-op you used to be a

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part of in the seventies in New York City.

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I so want to know.

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If you guys have questions about member economic participation or questions about the co-op,

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it would be super fun to hear from you and you can write to ownership at bellfast.coop.

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Yeah, and we will read it and then we can write you back or we can answer it on our

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next podcast.

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So before we were talking about internal readiness, we were talking about tightening up our discounts

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because we were changing or we were starting to focus more on what we could do for expansion

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renovation on the store.

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That process started several years ago and now we are actually in the renovation process.

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Is there anything you can tell us about what's been going on at the store?

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People love videos of cement sliding down the chute into the forms.

240
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I know I do.

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00:16:20,560 --> 00:16:24,120
Like I have made amazingly detailed videos.

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00:16:24,120 --> 00:16:29,320
Doug has made videos, our general manager, has made videos just like explaining wonderfully

243
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what's happening in the basement and all of those videos get like eight views by our really

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hardcore watchers and listeners.

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I made a video where cement is just cascading down the chute into forms and like 400 people

246
00:16:42,360 --> 00:16:43,360
have watched it.

247
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That was my favorite.

248
00:16:44,360 --> 00:16:49,560
Maybe they're just like watching it over and over again or like maybe some out got onto

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like some kids channel because I know that lots of kids like construction.

250
00:16:53,400 --> 00:16:58,760
But right now they're putting up forms for the shop for me walls.

251
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I have gotten some super fun education from the guys who are working there and you have

252
00:17:03,400 --> 00:17:05,320
to like you dig the hole.

253
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You level it out.

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You do all the fancy laser things to make sure it's level and then you pour these footings

255
00:17:11,440 --> 00:17:12,680
at the bottom of the wall.

256
00:17:12,680 --> 00:17:18,280
You want a nice wide base for stability, but then that has to dry and cure and we all know

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what a wet and wonderful summer it's been in man.

258
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So I think took a while and then they build with rebar.

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They like build the walls on top of that and then in within that wall is going to be the

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slab.

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00:17:31,360 --> 00:17:35,400
But so right now they're building the forms, which are these like really sturdy boards that

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hold in all the concrete.

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And it's so precise like you don't want to mess this up.

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The rebar has to be in the right place.

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00:17:42,560 --> 00:17:46,280
The boards all have to be like in the right order because when you think about how much

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concrete that is and how heavy it is, it's pretty impressive.

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So that's outside the store.

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The cafe footings have also been dug and they're going to start to build those in the next

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couple of days out in the back of the store.

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We're pouring the footings for the hydraulic lift and that will be outside the store, but

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it will be fully covered once it's installed.

272
00:18:06,760 --> 00:18:08,720
It'll be within the envelope of the store.

273
00:18:08,720 --> 00:18:09,720
Yes.

274
00:18:09,720 --> 00:18:10,720
Yay.

275
00:18:10,720 --> 00:18:16,920
And we buried a 1000 gallon propane tank because propane tanks that are not buried are like

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pretty dangerous.

277
00:18:17,920 --> 00:18:18,920
Yeah.

278
00:18:18,920 --> 00:18:19,920
You can run into them.

279
00:18:19,920 --> 00:18:20,920
Drive their cars into them.

280
00:18:20,920 --> 00:18:21,920
Yeah.

281
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That's very scary.

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So we buried that.

283
00:18:24,160 --> 00:18:26,840
We are building a dumpster pad.

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00:18:26,840 --> 00:18:31,480
If a dumpster gets picked up and put down on asphalt over and over and over again, it

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00:18:31,480 --> 00:18:34,600
can really grind away the asphalt.

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00:18:34,600 --> 00:18:38,920
So we've built a concrete pad in hopes that it lasts longer, is more durable.

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00:18:38,920 --> 00:18:43,680
And in the basement, they're doing the framing for the walls because in the basement, we're

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building a meat, cooler, a meat preparation area of prepared foods, cooler and freezer

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00:18:50,280 --> 00:18:54,920
and a preparation area because right now so much prep for meat and prepared foods happens

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00:18:54,920 --> 00:18:55,920
on the sales floor.

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But guess what is going to be on the sales floor?

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Things to sell.

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00:18:58,960 --> 00:18:59,960
I love that.

294
00:18:59,960 --> 00:19:00,960
Yeah.

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00:19:00,960 --> 00:19:06,000
So we're going to prepare things downstairs and have more space on the floor because

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00:19:06,000 --> 00:19:09,200
it will allow us to design the store in a way where you can walk through it.

297
00:19:09,200 --> 00:19:10,760
It won't feel like a traffic jam.

298
00:19:10,760 --> 00:19:11,760
That'll be nice.

299
00:19:11,760 --> 00:19:12,760
Yeah.

300
00:19:12,760 --> 00:19:13,600
I think so.

301
00:19:13,600 --> 00:19:14,600
I'm excited about that.

302
00:19:14,600 --> 00:19:15,880
What else is going on?

303
00:19:15,880 --> 00:19:20,320
The parking lot flow changed, which I know is really hard and I think it was hard because

304
00:19:20,320 --> 00:19:23,120
parking was a challenge anyway.

305
00:19:23,120 --> 00:19:24,120
Mm-hmm.

306
00:19:24,120 --> 00:19:25,120
Sorry.

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00:19:25,120 --> 00:19:26,120
All over the city.

308
00:19:26,120 --> 00:19:27,120
That's true.

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00:19:27,120 --> 00:19:29,160
It's a good opportunity to shop early.

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We open at eight o'clock, get here at eight, we would love to see you.

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00:19:32,440 --> 00:19:34,640
Or shop late, we close at eight.

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00:19:34,640 --> 00:19:39,200
As long as you come in at like 7.30 if you're doing a big shop, we would love to see you.

313
00:19:39,200 --> 00:19:45,000
If you come in at 7.55 and you have a lot of shopping to do, we might be sad about that.

314
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But you should definitely shop when you can.

315
00:19:48,160 --> 00:19:51,320
And we have a free curbside pickup service.

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00:19:51,320 --> 00:19:53,080
It's called Shop for Me.

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Even through all of this, it's still operating.

318
00:19:55,560 --> 00:19:57,520
And it means that you can shop online.

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00:19:57,520 --> 00:20:00,920
You can even go online and only shop the things that are on sale.

320
00:20:00,920 --> 00:20:04,040
And then someone will shop it for you in the store and then you pick it up.

321
00:20:04,040 --> 00:20:05,240
Like you don't care of your car.

322
00:20:05,240 --> 00:20:06,240
You call.

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00:20:06,240 --> 00:20:07,240
You say, I'm here.

324
00:20:07,240 --> 00:20:08,240
And they bring it to you.

325
00:20:08,240 --> 00:20:12,840
And it's a nice way to sort of like stay out of the flow of construction, but still

326
00:20:12,840 --> 00:20:14,280
buy the food that you want to buy.

327
00:20:14,280 --> 00:20:15,480
That sounds pretty great.

328
00:20:15,480 --> 00:20:16,600
I'm excited about it.

329
00:20:16,600 --> 00:20:19,440
I haven't actually utilized that service before.

330
00:20:19,440 --> 00:20:21,880
Probably because I'm at the co-op every day.

331
00:20:21,880 --> 00:20:22,880
Every day.

332
00:20:22,880 --> 00:20:23,880
I used to make my kids do it.

333
00:20:23,880 --> 00:20:27,400
So I would be like, oh, you don't like this food that we have for this week?

334
00:20:27,400 --> 00:20:29,880
I would love for you to shop for food that you want to eat.

335
00:20:29,880 --> 00:20:30,880
I love that.

336
00:20:30,880 --> 00:20:31,880
It's pretty adorable.

337
00:20:31,880 --> 00:20:33,440
Well, what else do we have coming up?

338
00:20:33,440 --> 00:20:35,360
There's something really fun.

339
00:20:35,360 --> 00:20:38,720
You want to tell us about the really fun event that we have in August?

340
00:20:38,720 --> 00:20:42,480
It is August 12th from 12 to 2.

341
00:20:42,480 --> 00:20:44,160
Annie and the Rainmakers.

342
00:20:44,160 --> 00:20:45,160
Go check them out.

343
00:20:45,160 --> 00:20:49,360
They're like a very high energy, super fun local band.

344
00:20:49,360 --> 00:20:50,360
Yeah.

345
00:20:50,360 --> 00:20:51,360
Little rock band.

346
00:20:51,360 --> 00:20:52,360
Definitely some dancing.

347
00:20:52,360 --> 00:20:56,640
So we'll be at Marshall Wharf on Saturday, August 12th from 12 to 2.

348
00:20:56,640 --> 00:20:59,360
This is a celebration and a dance party.

349
00:20:59,360 --> 00:21:01,920
This is the capital campaign was successful.

350
00:21:01,920 --> 00:21:04,080
The renovation is moving right along.

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00:21:04,080 --> 00:21:10,320
This is also one of the first events that we have had publicly post COVID because we

352
00:21:10,320 --> 00:21:13,920
really lost a lot of space inside the store.

353
00:21:13,920 --> 00:21:16,880
Can't close down the parking lot because we need parking.

354
00:21:16,880 --> 00:21:18,800
It should be a really fun time.

355
00:21:18,800 --> 00:21:22,480
They've been in this area for a long time and they called us up and said, hey, back in

356
00:21:22,480 --> 00:21:27,960
the day, we used to donate our time and Goldie would shut down the parking lot and we'd have

357
00:21:27,960 --> 00:21:32,680
a big party and we would do a fundraiser to do this or that thing for the co-op.

358
00:21:32,680 --> 00:21:35,160
And we really want to do that for you guys again.

359
00:21:35,160 --> 00:21:36,480
We love your store.

360
00:21:36,480 --> 00:21:38,760
We love the owners in the community.

361
00:21:38,760 --> 00:21:40,200
We said, make it happen.

362
00:21:40,200 --> 00:21:41,200
Yes, please.

363
00:21:41,200 --> 00:21:42,920
We will figure out the logistics.

364
00:21:42,920 --> 00:21:44,720
So August 12th, Marshall Wharf.

365
00:21:44,720 --> 00:21:48,040
The other fun thing that we're doing is we're going to be at the street party.

366
00:21:48,040 --> 00:21:51,920
So the Belfast Summer Street Party is on July 31st this year.

367
00:21:51,920 --> 00:21:53,520
I think it starts around five.

368
00:21:53,520 --> 00:22:00,640
They shut down High Street and there's games and food and music and lots of local businesses

369
00:22:00,640 --> 00:22:01,920
have tables.

370
00:22:01,920 --> 00:22:02,920
You're going to be there.

371
00:22:02,920 --> 00:22:07,680
Again, that's another great place to talk to us, to come get updates, seeing what we're

372
00:22:07,680 --> 00:22:11,320
doing and talk to the board of directors.

373
00:22:11,320 --> 00:22:16,320
There's other fun things that we're doing and you can find all of those fun things in

374
00:22:16,320 --> 00:22:20,680
a very amazing bi-weekly newsletter that the co-op puts out.

375
00:22:20,680 --> 00:22:26,200
If you would like to sign up for this newsletter, all you have to do is go to Belfast.coop and

376
00:22:26,200 --> 00:22:30,640
at the bottom of that page, there is a place for you to put in your email address and you'll

377
00:22:30,640 --> 00:22:34,240
have a super sweet bi-weekly newsletter that you can go check out.

378
00:22:34,240 --> 00:22:40,880
It tells you updates about the renovation, updates about blueberry pre-orders, for example,

379
00:22:40,880 --> 00:22:43,760
anything you want to know about the common sense groups.

380
00:22:43,760 --> 00:22:48,160
I would also say that if you are interested in any of the videos that Alessandro and Doug

381
00:22:48,160 --> 00:22:52,520
have put together, the Belfast Community Co-op does have a YouTube page.

382
00:22:52,520 --> 00:22:54,240
So it has all of those on there.

383
00:22:54,240 --> 00:22:55,480
I would check them out.

384
00:22:55,480 --> 00:22:59,880
And next time they pour concrete, you better believe I'll be taking another video of it.

385
00:22:59,880 --> 00:23:02,960
I'll watch it.

386
00:23:02,960 --> 00:23:06,680
The other thing that we have going on that we always like to touch on is the Board of

387
00:23:06,680 --> 00:23:07,960
Directors meetings.

388
00:23:07,960 --> 00:23:11,400
So those happen on the fourth Wednesday of each month.

389
00:23:11,400 --> 00:23:16,120
We have a couple obviously coming up, a whole year full of them actually.

390
00:23:16,120 --> 00:23:21,160
The next couple dates will be July 26 and August 23.

391
00:23:21,160 --> 00:23:25,760
Those are happening at 6 p.m. in the Abbott Room at the Belfast Free Library.

392
00:23:25,760 --> 00:23:28,040
You can find more information about that on our website.

393
00:23:28,040 --> 00:23:32,560
If you'd like to attend via Zoom, there is a link to register for that meeting on the

394
00:23:32,560 --> 00:23:34,160
website also.

395
00:23:34,160 --> 00:23:35,520
So we've said it a bunch of times.

396
00:23:35,520 --> 00:23:36,600
I won't say it again.

397
00:23:36,600 --> 00:23:37,600
You know how to find it.

398
00:23:37,600 --> 00:23:38,720
All right, guys.

399
00:23:38,720 --> 00:23:40,480
Thank you so much for joining us today.

400
00:23:40,480 --> 00:23:45,480
We're really excited to talk about everything that's going on the Co-op and Principle 3.

401
00:23:45,480 --> 00:23:50,560
And I would also like to give a big shout out to Vic, who's in charge of the radio station

402
00:23:50,560 --> 00:23:52,520
here in Belfast.

403
00:23:52,520 --> 00:23:56,040
The radio station is in the basement of Waterfall Arts.

404
00:23:56,040 --> 00:23:59,800
And you may have heard of all the ruckus going on around us.

405
00:23:59,800 --> 00:24:03,520
We believe there's a summer camp going on and perhaps a little bit of construction here

406
00:24:03,520 --> 00:24:04,600
and there.

407
00:24:04,600 --> 00:24:09,240
But again, Vic has done an amazing job producing this for us.

408
00:24:09,240 --> 00:24:10,240
Thank you, Vic.

409
00:24:10,240 --> 00:24:12,280
And thank you all for joining us.

410
00:24:12,280 --> 00:24:19,560
You have been listening to Episode 4 of Smooth Co-operator from the Belfast Community Co-op,

411
00:24:19,560 --> 00:24:26,320
hosted by Alessandra Martinelli and Emily Berry, produced at the Facilities of Belfast

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00:24:26,320 --> 00:24:53,700
B errands at the CO-OP.

