Cooperative Community – Clearwater MB
The community of Clearwater, Manitoba is not one that gives up easily; it is small but vibrant.
Though a town of only 75 people, Clearwater has managed to maintain its store, restaurant and post office. When both businesses were for sale for nearly two years, with no serious inquiries, the community knew something had to be done. So they organised a cooperative to run the businesses, and today the store and restaurant remain a vital part of the community.
A New Beginning
In 1999, Linda Gundrum, original owner of the Clearwater grocery store, was trying to sell the business. Although Linda wanted to get out of the business, she would never close the doors on the community, and knew she would continue the business herself if she couldn’t find a buyer.
But Linda had an idea; she approached a few community members and suggested that they try running the store as a cooperative. The group met a number of times to discuss the idea, and organise a system of shares. The group began by advertising for a manager, knowing it would be easier to sell the idea to the community with the security of having someone to manage day to day operations.
The Cooperative
When a manager was found the group presented the idea of a cooperative to the community at a town hall meeting, and shares in the Clearwater grocery sore were put up for sale. With 300 shares selling for $100, enough money could be raised to purchase the store. Within 48 hours all shares were sold. Even when unexpected expenses arose and the cooperative was short of funds, community members continued to provide donations and loans.
There is the opportunity for dividends in any cooperative system, but Linda believes that most people did not care about the money. In the end, the main concern was keeping the store in town. Most people viewed the shares as a donation to their community.
A New Store
In 2001, Linda Gundrum sold the store to the community. The store was closed for six weeks while renovations took place. Like the purchase of the store, renovations were a community effort and everyone chipped in.
A new bakery was developed in the store to offer variety and this feature helps to draw customers. Every Thursday, Marion Chewings, a local baker, comes in to bake biscuits, scones, cookies and muffins. The smell of fresh baking is usually enough to entice customers. In summer, fresh salads are also available at the store.
New owners have since been found for the store. Al and Lynne Wallis took over the store in 2003. The Wallises had been living in Winnipeg for 15 years, but when Al left his job at Canadian Pacific Rail, they were looking for something new. Lynne had grown up in Clearwater and her family still live in the village, while Al’s roots lie in the village of Glenboro. Clearwater could have maintained the store under the cooperative system but the opportunity of having a young family move into town was appealing.
All Over Again
In 2005, a similar situation arose in Clearwater with the town’s restaurant. After 2 years on the market, it was announced that the restaurant would be closing. The building would likely be moved out of town. It was evident that the community had to do something to keep the business.
The Social Place
The restaurant is an important meeting place that helps tie the community together. It is a central part of social life in Clearwater, where people gather to talk about farming, hockey, curling, and family.
“I think for people in a small farming community, it’s therapy. You know people have the same problems as you have, you share that and you can benefit. You can talk about whatever is bothering you and people are going to listen.”
—Linda Gundrum
The restaurant is the also the meeting place of the Clearwater Senate, a group of women who gather once a week to discuss town events and the issues. The women of the senate can tell you anything you want to know about the Clearwater community. The Senate is a huge source of support for families and community projects.
This is the third time that the Clearwater community has pitched in to save the restaurant. In the early 1990s, the old coffee shop was run down, and a new building had to be found and moved to Clearwater. While the new coffee shop was being set up, coffee was served by volunteers in the curling rink from 8 a.m. to 5 p.m. daily.
The Second Time Around
Once again a group of community members gathered to organise a cooperative system. The purchase of the restaurant was somewhat easier, given the community’s past experience with the cooperative system.
However there were a few additional details that needed to be ironed out, including the matter of the post office, which operated out of the restaurant, and reapplication for a liquor license. There were additional expenses with the restaurant that were not considered at first.
Additionally, a deadline for the purchase of the restaurant was given to the community, as the former owner wanted to leave by a certain date. So the community was rushed to sell shares. This time the number of available shares was left open and shares can still be purchased today.
Government Support Program
The community council in charge of the restaurant applied for a tax credit through Manitoba Agriculture and Rural Initiatives. This credit gave share holders a 30% personal income tax credit on the purchase of each share. Shares could not be sold until the application had been approved; meanwhile the deadline for the purchase of the store was quickly approaching. Confusion at the minister’s office forced the community to ask the Clearwater Sports Club for a loan.
The tax credits were likely a selling point for a few people in the community, however it caused a lot of hassle for the council, and would likely be avoided in the future.
A New Face
Amy, manager of the new store, had been working at the golf course in Pilot Mound when two council members approached her about managing the restaurant; she liked the idea and accepted it. She now runs the business as if it was her own, ordering products, organising finances, hiring staff and the day to day operations.
Amy is considering buying the restaurant from the community after a year, if the business is viable. If she does purchase the restaurant, Amy has many ideas for additions to the restaurant, including a patio, sports bar and special functions room.
