Property Acquisition Project
Dear People’s People:
We are writing to fill you in on an exciting opportunity that came to People’s this year. Most of you are probably familiar with the driveway on the north side of the store that we use as our receiving area for the goods we sell. What many of you probably do not know is that this driveway is not wholly part of the Co-op’s property. The north half of the driveway is owned by the owners of the house to the north of People’s (which, incidentally, was built by Camelo Terrana, who started the first grocery store in 1911 in the building that now houses People’s). We have been permitted to use the neighbors’ portion of driveway by an informal neighbor agreement. However, the Co-op has always been concerned about what we would do if we lost access to that driveway, because without it the store doesn’t have a receiving area for the products you love.
This past winter, the neighbors informed us that they are going to sell the house. Fortunately, they decided to allow People’s the opportunity to purchase it before it went on the market. This is a great opportunity for the Co-op. First, allowing us to purchase the house before it went on the market avoided competition that could have driven the price up . Second, it allows People’s to finally own the driveway that is critical to our operations.
Why are you, the owners of People’s Food Cooperative, just hearing about this now?
Deciding that this opportunity should be kept confidential was not an easy decision for the Board of Directors. But we balanced the need to keep the information confidential to avoid a bidding war on the house with our desire to keep you informed about our plans. We were concerned that if the owner’s interest in selling the house became public, others would make offers that exceeded the current asking price, causing People’s to pay significantly more for the house. This was not a decision that we made lightly, but in the end we determined that it was in the best interest of the Co-op to keep the information confidential.
Over the past few months, the staff at People’s have done their due diligence to ensure that we were minimizing the risks involved with purchasing the adjacent property. They engaged a land use planner, real estate attorneys, a real estate agent, and a general contractor with a longstanding history of working with the buildings in this neighborhood. During the process, they consulted with: the Portland Bureau of Planning and Sustainability, a housing inspector, a surveyor, a title insurance company, senior staff of several Co-operative development institutions, development consultants from National Cooperative Grocers, and managers of other retail cooperatives that found themselves with similar opportunities. The Collective Management also looked at all possible alternatives to purchasing the house including moving the receiving area to Tibbetts and the possibility that a purchaser would continue to honor our usage agreement. Of all the options, we determined that purchasing the house was our best option for long term planning.
What will People’s do with the house once we own it?
For the short term, we plan on hiring a property manager and renting it. The income from the rental should mostly cover the loan payments and other costs related to the house. The long-term plan depends on Member-Owner input, and whether that property can be rezoned for commercial use. The City of Portland is about to embark on a comprehensive rezoning of Inner Southeast, including the location of People’s and the adjacent property. If, as part of that rezoning project, we can change the zoning to commercial, the Co-op might have an opportunity to expand onto that property giving us more space to do what we do, if Member-Owners are in support of such an expansion. It has been 25 years since People’s last expanded and we are just about at the limit of the current space (as some of you might notice when the store is busy). However, the outcome of the rezoning project is uncertain. If the property remains zoned as residential, People’s can either separate the driveway from the property and sell the house and remaining property or create an irrevocable easement for People’s to use the driveway. But before any decision is made on the long term plan for that property, the Board and the CM will talk to you, our Member-Owners, and get your ideas and thoughts.
However, what is important, and crucial for People’s continued operation, is that we retain the use of the driveway. We are fortunate that the Co-op is in excellent financial shape thanks, in large part, to our diligent financial team. With our strong financial footing, People’s has the ability to seize this opportunity to finally own the driveway that is so important to our continued operation.
The purchase was completed Thursday, August 14, 2025. We are planning several Member-Owner forums to receive input about this purchase, and begin our conversation about next steps for the property. The first of these forums is scheduled to be on Zoom for Tuesday, September, 9th, 6pm-8pm (here’s the link). If you have any questions, please come to a Member-Owner Forum or reach out to the Board via 3019-board@peoples.coop.
We are very excited about this opportunity and hope that you, the owners, share in our enthusiasm as we make great strides to ensure People’s future.
In Cooperation,
People’s Board of Directors
