By Janet Wight
The South Como Community Investment Cooperative (Co-Op) is off and running. The co-op purchased its first property in November, a parcel at 978 Front Ave. in St. Paul that includes both residential and commercial spaces.
South Como resident Jessica Willman reached out to neighbors in spring 2024 to see if anyone was interested in working together to attract more community-focused businesses in the area. This led to the establishment of the co-op.
Matt Schneider, secretary, said, “The Co-Op pools community resources to purchase vacant and underutilized properties and match them with small businesses relevant to community needs.”
The initial co-op board of directors was seated in July 2024. Original members, in addition to Schneider, were Jessica Willman (president), Luke Martinkosky (vice president) and Steve Willman (treasurer). Max Sanders and Lisa Lunsford joined the board later.
There are other similar organizations in the Twin Cities, including Midway Investment Cooperative and Taproot Investment Cooperative, Schneider said. The South Como Co-Op has learned a great deal from connecting with leaders in these two other organizations, he added.
Shared ownership is the key to growing the reach and impact of the co-op. Currently there are about 25 members, Schneider said. Any Minnesota resident aged 18 or over may buy a membership share for a one-time cost of $500.
Members are welcome to attend board meetings and take an active role in discussions and planning. Sweat equity is neither required nor expected, but may be offered by individual members, if desired.
Another advantage of membership is the possibility of receiving dividend payments. The timing and amount of any future dividend payouts will be based on the co-op’s financial situation, as determined by the board of directors.
Although the co-op decided not to set strict boundaries on its property purchases, its efforts are focused on the areas radiating from two main hubs: the Lexington/Front and Como/Front/Dale intersections, Schneider explained.
The Co-Op did not set a maximum purchase price for its first property. The board members considered many commercial and mixed-use properties.
“We have looked at so many properties!” said Schneider. “If there was a commercial or mixed-use property anywhere near South Como on the market in the past year, we looked at it!”
The 978 Front Ave. property was of particular interest since it already had two residential tenants, each occupying one-bedroom apartments, who were willing to stay. The previous owners were also community-minded local investors who were flexible and patient as the Co-Op secured financing.
The property was purchased for $335,000. A shared ownership loan of $243,000 was obtained from the Minnesota Consortium of Community Developers. Additionally, the Co-Op received a $125,000 grant from Nexus Community Partners. These funds will be applied to the principal, resulting in a loan balance of $118,000.
About $115,000 was raised through preferred investments from interested neighbors, a portion of which was used for the down payment on the property.
The current focus of the South Como Co-op is in building membership and finding an appropriate commercial tenant for the newly acquired property. However, if suitable properties become available, the Co-Op will consider additional purchases.
“We would be equally happy if our work inspires others to invest in this great community as well,” Schneider explained.
Ongoing property management, including communicating with tenants and handling repairs and maintenance, is a responsibility shared by the board members. They have committed to handling any issues that arise which match their skill sets. To date, this has included lots of shoveling and replacing one light switch.
Any issues requiring additional expertise will be handled by the Building Management Committee, which will hire local tradespeople as needed.
The Co-Op board hopes to spread the word about its mission, Schneider said. Members will participate in Como Community Council District 10 events, including the North Dale Rec Center Blizzard Breakfast on Feb. 7. They will also continue to distribute flyers to neighborhood residents and host an annual membership event in April.
Informational events are also planned throughout the year. Visit southcomocoop.org for additional details.
Janet Wight is a regular freelance writer for the Bugle.
Photo credit: Board members Luke Martinkosky, Steve Willman and Jessica Willman hold the ceremonial key as they celebrate South Como Co-Op’s first property purchase, located at 978 Front Avenue in St. Paul. Also pictured is (far left) Amy Marga, realtor who handled the co-op’s property purchase. Submitted photo from South Como Co-operative.
