March 5, 2015
Neighbors Join Together to Buy Back the Neighborhood
An article in Yes! Magazine by Olivia LaVecchia details a group of dedicated neighbors that came together to form the Northeast Investment Cooperative, a first-of-its-kind in the U.S. cooperative engaged in buying and developing real estate. NEIC created a structure where any Minnesota resident could join the co-op for $1,000, and invest more through the purchase of different classes of nonvoting stock. The group began spreading the word to prospective members, and started looking for a building to buy.
From the article:
“Collectively, that wealth will stay in our community,” says Watson. “If you want to take the long view, that’s the goal.”
While NEIC is unique in the U.S., similar investment cooperatives are sprouting up in Canada, where they’re aided by programs designed to help them grow, as well as favorable policies. Though the model is new, and small, it holds outsize potential for the many communities struggling with northeast Minneapolis’s familiar set of problems, from business districts languishing half-vacant, to essential commercial spaces being controlled by faraway landlords or big retail chains with no regard for neighborhood needs. In the vacuum left by both traditional economic development and Wall Street’s approach to finance, community real estate investment cooperatives offer a glimpse of a better way to channel capital, with benefits that include new jobs in the neighborhood, strong incentives for people to shop locally, local sources for key goods, closer ties with neighbors, and a return on investment.