Project 1 – Sangudo Custom Meat Packers – Lease
The owner of Sangudo Custom Meat Packers (SCMP) had been unable to find a buyer for the business and was ready to close the doors.
In 2010, SODC worked with Jeff Senger and Kevin Meier to purchase the business. SODC purchased the real estate, and Jeff/Kevin purchased equipment and inventory.
Working together, a 3-year lease was developed. There was a reasonably small monthly payment to SODC, plus a percentage of revenue paid quarterly. The lease gave Jeff/Kevin a first right to purchase the real estate at the end of the term at a pre-agreed and reasonable price.
Project 3 – Expansion at Sangudo Custom Meat Packers
It seems the facility was in poor condition and extremely unhandy for slaughtering and processing animals.
A Federal/Provincial grant was received to make major renovations to the facility for animal, food, and human security. This was a matching grant and cash was needed.
In 3 weeks, SODC collected local funds from new and existing members to allow the renovations to be completed.
Project 4 – Conversion of Lease to Mortgage
At the end of the 3-year lease, Jeff and Kevin did not want to use conventional financing sources to fulfill the purchase of the real estate and pay out the Project 3 loan. They preferred to have their interest payments going to the people who had supported them so far.
Some additional renovations were needed, so SODC collected additional funds from members, and consolidated the loan and purchase, whereby Jeff and Kevin became the owners of the real estate and business, with SODC holding a mortgage.