May 19, 2008

Dear Friends,

I am pleased to report substantial progress towards the summer opening of Mandela Foods Cooperative. The delays to construction have been numerous, but we are in the final stages of the permit process with the City of Oakland. Once all of our permits have been approved we can begin breaking ground. We have contractors standing by, but what else are we doing to move us toward our opening date? Here are some of the things we have accomplished:Before getting the Permit Review Board’s approval, architects, engineers, and electricians had to complete and revise plans for both the exterior and interior of the site. All of the operating equipment (refrigeration, fixtures, registers, etc.) has been selected. We have chosen our product assortment, and developed a computerized system to let customers create individualized shopping lists, get updates on product availability, and provide feedback. We have conducted regular trainings and meetings with our worker/owners. Finally, we have been meeting with officers from the Oakland Police Department to establish an ongoing relationship and to find workable strategies for public safety in and around the store.

Mandela Foods Cooperative is a unique, courageous model for a business that can create and maintain long-term community benefit, including health, safety, connectedness and economic empowerment. It takes many hands to bring such a project to completion, and we are extremely grateful for all of the patience and support you’ve given us so far.

Certain organizations and individuals have been invaluable in their contributions and advocacy, sometimes while facing deep scrutiny and harsh criticism: District 3 Councilmember Nancy Nadel, the West Oakland Project Advisory Committee, The City of Oakland, OBDC Small Business Finance, the Federal Home Loan Bank of San Francisco, and last but not least, the Lower Bottoms Neighborhood Association. They all deserve our thanks for helping to make our vision a reality. In addition, we continue to attract new support – we thank the Kiwanis Club of Oakland for their recent interest and generosity.

Understandably we are fielding a lot of questions about the store’s timeline. The process has been frustratingly drawn out, and other businesses, like the “99 cents” store seem to get open with no problem. The short explanation is that our business model, that of a community-owned store, faces particular challenges. We are certainly able to meet these challenges, but they have caused setbacks just the same. We have had to adhere to stringent regulations and standards at every stage of development: applying for funding, gaining the consensus of numerous stakeholders during planning, and simultaneously complying with the rules of multiple agencies once we had secured their support. Of course, these demands contrast sharply with those made (or not made) on a privately-owned business with deep pockets, a traditional operating model, and no stated concern with community involvement.This level of detail in the planning and ultimately the building and operation of the store is trying, but it will result in a business that can truly serve all the residents of West Oakland.

Sincerely,

Nathan Cheng

General Manager