Ozark Natural Foods to Pay Off Mortgage

Jeff Alvine, staff member at the Ozark Natural Foods in Fayetteville, puts out fresh fruit Wednesday afternoon. Ozark Natural Foods announced in a news conference Wednesday afternoon they will pay off the building loan early in an effort to save money. The decision to pay off the loan early was debated for the past 16 months among the owners.
Jeff Alvine, staff member at the Ozark Natural Foods in Fayetteville, puts out fresh fruit Wednesday afternoon. Ozark Natural Foods announced in a news conference Wednesday afternoon they will pay off the building loan early in an effort to save money. The decision to pay off the loan early was debated for the past 16 months among the owners.

— Ozark Natural Foods will soon own its building after the cooperative’s board voted to pay $1.5 million remaining on the mortgage.

The board voted last July to pursue the loan payoff and voted Nov. 27 to make the final payment Dec. 10.

At A Glance

Ozark Natural Foods

Ozark Natural Foods opened in 1971 and was incorporated in 1974. It began in one of the original owners’ living room and moved several times before finding a home in the Evelyn Hills Shopping Center in fall 2000. Anyone can shop at the store. Shoppers can become owners by paying a $20 annual fee.

Source: Staff Report

Joshua Youngblood, president of the board of directors, announced the decision Wednesday in front of the cooperative’s building at 1554 N. College Ave., to a group of about 35 workers and owners.

The mortgage was refinanced four years ago and has 16 years remaining. The early payoff carries a fee of $300,000 to $495,000.

Youngblood said at least $500,000 will be saved in interest payments over the life of the loan after the fee. He said the cooperative will have $1.1 million in the bank after the payoff.

Not all members feel the decision is the best use of the co-op’s cash. This debate is one of several issues surrounding the business in recent months.

The store was closed for one day in June after employees held a walk-out seeking the resignation of board members Linda Ralston and Sue Graham. The group claimed Ralston and Graham were obstructionists, Youngblood said. The board took no action on the request and both women remain on the board.

“We have had disagreements on some issues over the past year, but we are a thriving business,” Youngblood said.

The co-op had $12 million in sales last year.

Peggy LaMendola of West Fork is not happy with the decision. She has been a co-op owner since the late 1970s.

LaMendola is a tax preparer and wants an outside debt and asset management professional to examine the co-op’s financials.

“The board is treating this business debt like someone paying off a personal mortgage. It’s not the same thing,” she said.

Youngblood said no one from outside the business has looked at the books and professional employees handle the bookkeeping. He added owners with financial backgrounds have also looked over the issue and agree with the board that paying off the note early is beneficial.

“Could we get an outside opinion? Yes, but at the end of the day it is the board’s decision to make,” Youngblood said.

LaMendola was part of an owner’s group who submitted a petition asking the board to get an outside opinion on the advantages and disadvantages of using cash on hand to pay off the mortgage and allow owners to vote on how to best spend the cash.

Youngblood plans to hold a closed board session Friday to discuss the petition signed by 150 owners. Ozark Natural Foods has almost 10,000 owners.

LaMendola said if the board hired an outside consultant who said the payoff was the right action she would accept the decision.

“I can’t, however, concede under the current conditions. This is not a wise decision,” she said.

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