Executive Summary Market Place Gonaives- October 1, 2016
Kathy, and I lead MUCH Ministries, a nonprofit that works to reverse the cycles of generational poverty in Gonaives, Haiti. We and our team work through the venues of sustainable businesses and human resource development. Market Place Gonaives, is a $1,165,000 project that will impact the city of Gonaives and Haiti as well. By renovating an abandoned factory into a multi-business complex, we set in motion city changing events that facilitate the transformational agenda of Much Ministries.
Market Place Gonaives :
Catalyst for transformational change in Haiti’s second largest city.
Restoration of an abandoned factory into a showcase business complex.
Anchor tenant is the first full service grocery store outside of Haiti’s capital city.
Home to a minimum of 8 other business. Including 2nd Story Goods* retail outlet.
Creation of over 150 new jobs directly, and indirectly double that amount.
Financially, cash flow positive from initial opening for business, Dec 2016. (see proforma)
Profits reinvested in local business development, schools, and medical clinics
A place for Training, Education and Development of employees and entrepreneurs. (TED *)
Gathering place for fostering positive social and spiritual change within Gonaives.
MPG occupies 1.4 acres, strategically located on Haiti’s Route National 1. The renaissance of this historical property draws attention to change already happening in Gonaives. New and improved roads, a new hospital and increased law and order, position Gonaives for continued growth. Future components of MPG will include an Business Incubator, restaurant/culinary arts school, classrooms and meeting space for up to 300 people.
Gonaives and surrounding areas has a population in excess of 600,000. Tragically only 5% of this population is considered middle class, But this 5%, (30,000) plus NGOs, “foreigners” like ourselves, UN employees make up the “target market” for our tenants.
These 30,000 shoppers have the means and desire to frequent Market Place Gonaives. They currently drive 3 hours to Port au Prince to satisfy their shopping needs. Conservatively capturing only 25% of this market once a month will out perform current grocery store sales in Port au Prince.
Total cost is $ 1,165,000; We have invested $590,000 to date. Our needed funding to complete is $575,000. The current need to open the grocery and other tenants is $375,000.
Estimated Monthly Operating Expense, after opening is $7,100 includes: Taxes, Security, Utilities, Water, Waste Removal, Landscape, System Maintenance and Management Cost
Estimated tenant leases will create additional profits that will contribute to investable funds for local transformation. (*See proforma for fuller financial expectations.)
Our financial profits will primarily be invested in further business development in Gonaives. We Partner with Partners World Wide for training. Additionally we are excited to use profits made in Haiti to fund the other “charity” type programs that are not self sustaining. Currently we are connected to Jubilee School and Klinic Jubilee. Final decisions about profit allocation will be a BOA joint decision.
Our introduction to Haiti began in 2002 and in 2011 we made Gonaives our home. 2nd Story Goods* was formalised in 2011 and MPG was conceptualised in 2012. The property was contactually purchased in October of 2015, with 300k down. We renovated and occupied the office building and apartment adjacent to the warehouse in December 2015. We live in the upstairs apartment and 2nd Story Goods and TED currently operate down stairs on a daily basis.
*In just five years, Kathy and her team have built 2nd Story Goods, putting 70+ people to work in design, manufacturing and distribution of artisan made jewelry, accessories, clothing and leather goods. These creations are sold in Haiti and the United States under the 2nd Story Goods label.
*TED is the training, education, and development leg of Much Ministries. TED includes “Monday leadership luncheon, and Pre-Employment training. These programs are directed at empowering entrepreneurs and creating a viable labor pool for new business coming to Gonaives. Future training will involve Adult Literacy and specific business training in collaboration with Partners WorldWide an international business development non-profit.
FINANCIAL ESTIMATES (completed or in process)
$ 500,000 Acquisition of Land and Existing Structures
$ 20,000 Transaction Costs
$ 585,000 Renovation and Construction
$ 10,000 Operating Costs during Renovation and Construction
$ 50,000 Contingency Reserve
$ 1,165,000 Total Project Cost
Thank you for considering being a part of our endeavors. We realize that the successes and influence we have had to this point are because of those willing to throw their lot in with us. We all bring something to the table, our assignment is on the ground, while challenging it is rewarding. Your contributions are handled with great respect.