Challenges to Fundraising
Despite clear needs, funding sources for the Project are extremely limited. Most grant programs target very low-income populations which are identified based on federally compiled income statistics. Unfortunately, income levels reported for SJC significantly curtail funding opportunities for the Project. This is because the extreme gap in income levels among SJC residents, skews the calculation of “average” county income statistics which are the standard statistic for determining eligibility for most federal and state grant programs.USDA Local Food Promotion Program Grant
The fundamental nature of the Project also limits conventional bank funding options. The Project will provide multiple services. However, it does not have a track record in demonstrating that sufficient cash flow would be available to pay debt service on a bank loan. The LFC organization, itself, has limited financial resources and its anchor tenant, LIFRC Lopez Food Share and Recovery Café are largely supported by federal grants and local private donors.
Gift of Project Site
A nine acre parcel of land in Lopez Village was secured through the donations of a small group of generous community members who care deeply about the local food system and affordable housing. The Food Center will be developed on the 1.15 acre parcel on Weeks Road to the west of the post office in partnership with Housing Lopez, who plans to develop 15+ affordable rental housing units on the adjacent parcels east of the post office.
Rooted and Rising Capital Campaign
The Lopez Food Center and Housing Lopez (a 501(c)3 organization dedicated to providing affordable housing on Lopez Island) are combining expertise to collaborate on a campaign to bring essential housing and food resources to the Lopez community. https://lopezrootedandrising.org/. The Rooted and Rising Campaign is led by an independent steering committee of dedicated community leaders. As of March, 2024, this group has raised $3.8 million on behalf of the Project and the 15 unit rental housing complex under development by Housing Lopez on an adjacent parcel of land. 50% of funds raised by Rooted and Rising are expected to be used by the Project.
Grant and other State and Federal Sources of Funds
The most likely sources for grants and other federal and state funds include: USDA Rural Development, USDA AMS Planning and Implementation Grants, Congressional Discretionary Spending Allocations, WA Department of Agriculture, WA Department of Commerce, and WA State Legislature Capital Budget Allocation. As of March 2023, the Project has received a $167,000 USDA AMS Planning Grant for predevelopment planning costs not included in the Project budget, $61,810 grant from Rural Development and $197,000 as an allocation from the WA Capital Budget. The LFC will apply for additional funds from these sources in 2024-2025.
Foundations
Six foundations have been identified as likely sources of funding. Several of these foundations require letters of inquiry to be submitted initially. A determination is then made by these foundations as to whether there is sufficient interest to invite submission of a formal application for funds. The LFC will submit letters of inquiry to these foundations by September 2024, after results of the campaign and other funding requests can assessed.