The third cooperative principle, Member Economic Participation, defines a critical part of the cooperative difference and is an important way in which we are able to create a strong organization rooted in our local economy. Purchasing a capital certificate and shopping are two key ways that member-owners participate; loaning money to the co-op to open a new store is another.
You may know that Bloomingfoods raised money from founding members to start the co-op in 1976, and raised member loans again in 1991 when we opened the East location. We most recently raised funds in 2006 to convert the Encore Café into our Near West Side store. We are pleased to announce that all the loans that have come due have been paid back, on-time and with the full interest due. It is with your support that the co-op is able to experience such success and we are reaching out to you at this time to request your participation in our opening of a neighborhood grocery at 2nd and Fess, in the Elm Heights neighborhood.
It was our goal to negotiate with our member-owners to obtain at least $800,000 in subordinated loans in order to purchase the property at 2nd and Fess and to construct a new building on that site. Subordinated loans from member-owners are an important and normal requirement of virtually all retail co-op developments, demonstrating to our professional lenders that the project enjoys the confidence of our membership. Bloomingfoods plans to add to the member loan amount $500k of its own money, and borrow additional funds from our regional bank to complete this $3 million neighborhood grocery store project.
We are excited to report that we have exceeded our initial goal of $800,000 as well as surpassed our extended goal of $1,000,0000. You can read what some of our member lenders have had to say about why they have participated in the loan drive.