Isla Vista CSD approves $50,000 equity purchase to buy memberships at Isla Vista Food Cooperative

The Isla Vista Community Services District on a unanimous vote approved a memorandum of understanding to purchase $50,000 in class C equity from the Isla Vista Food Cooperative and to allocate the resulting memberships to local households.

Board members said the purchase, to be made from the district's fund balance, is intended as an equity investment to increase local grocery access and help reduce parking and car dependence among Isla Vista residents. The board approved paying $25,000 now and $25,000 in June, with a working group to finalize allocation and outreach plans before the second installment.

The co-op and district described the purchase as equity rather than a one-way grant: Lisa, president and interim general manager of the Isla Vista Food Cooperative, told the board that the co-op has real property and solvency but limited cash. "We are long term residents of Isla Vista. We have a mortgage on our property. Our property has appreciated in value. So while we have solvency because of the value of the building, we don't have liquidity because we don't have cash," Lisa said. She explained that, if needed, the co-op could repay members by selling assets but that current constraints limit immediate cash refunds.

Under the plan presented, the district would buy 333 class C memberships (group/organization memberships) and distribute them to qualifying Isla Vista households. The district will exclude board members and staff from eligibility for allocations tied to their own addresses. The board directed staff and the co-op to form an ad hoc working group to review co-op governance and financial stability, conduct outreach emphasizing local residents, and return to the board before the June payment.

Co-op leaders described membership benefits and how owners receive discounts and loyalty points at checkout. Lisa said owners receive a small percentage back in points on purchases and that owners can access bulk/case discounts and member-only sales. She said the co-op sees high EBT usage and that sales would need to rise roughly 15% for the store to break even, 20% to build a cushion and larger increases to reduce prices.

Public commenters and board members emphasized outreach and operations. Resident Esteban Solis said he appreciated recent staff hires and improved customer service. Board members said they would assist with outreach and prioritize dense neighborhoods for allocations to support the district's parking mitigation goals.

The board voted in favor of the MOU after a motion by Director Topliffe, seconded by Director Cipos. Roll call recorded all present directors voting yes.

The board and the co-op will continue negotiations on the implementation details. The board said it intends to track usage of the memberships and reach back out to recipients after a short period to evaluate whether the program shifts shopping patterns.

A separate working-group meeting and a later board item will set the precise allocation process and timeline.