The Isla Vista Food Co‑op’s board president, Lisa Oglosby, told the Isla Vista Community Services District board that the 52‑year‑old cooperative is running sustained losses and needs immediate working capital to continue operations.

Oglosby said inflation and local demographic shifts have cut sales sharply in the post‑pandemic period. At the meeting she summarized the co‑op’s financial position: double‑digit declines in recent years, with staff later noting the co‑op experienced nearly 20 percent lower sales in 2023 and another roughly 20 percent decline in 2024, leaving overall sales “nearly 40 percent lower” than prior years. The co‑op reported mounting payables, reduced cash reserves and the risk of running out of operating cash unless new revenue or working capital arrives.

Why it matters: the co‑op is one of the few local grocery sellers that offers fresh produce and other staples within Isla Vista’s walkable neighborhood. Board members framed the co‑op’s continued operation as a transportation and access question: keeping affordable, local grocery options reduces the need for residents to drive outside the neighborhood for shopping.

Co‑op request and short‑term options discussed
Oglosby and staff proposed several near‑term and programmatic partnership options the board could consider:
- Hire the co‑op as a vendor for IVCSD events, increasing sales and visibility.
- Sponsor full share memberships (the co‑op’s full share cost is $150) for targeted households or addresses to increase routine customer volume and offer recurring discounts.
- Purchase gift cards to distribute to people using CalFresh/EBT to increase immediate food access (staff noted a monthly CalFresh/EBT allotment of $292 per household as context).
- Include the co‑op in the district’s community‑spaces program to host events at the co‑op patio.
- Consider a time‑limited loan or equity purchase similar to a past A.S. (Associated Students) loan the co‑op received (A.S. provided a $40,000 loan in a previous era, referenced during the meeting) and explore repayment via goods/services or future equity refunds.

Operational context and constraints
Co‑op leaders described a smaller on‑site kitchen at the Isla Vista store and a larger downtown market kitchen used to supply prepared foods and catering. The downtown retail location, which the co‑op said helped sustain operations last year, is a leased space that the presenter said may be redeveloped by the landlord in the future; the Isla Vista store carries a mortgage on its building and is current on its obligations but lacks sufficient cash on hand for timely vendor payments.

Board discussion and next steps
Directors and staff discussed multiple options, including purchasing memberships for households, short‑term loans, and tied discounts for residents (for example: a modest, time‑limited coupon tied to proof of Isla Vista residency or an IVCSD permit). Legal staff flagged that the district would need to analyze how any funding or ownership structure fits within the district’s enumerated powers and whether the co‑op could be treated as a community facility for investment purposes.

The board took two formal steps:
1) It directed staff to develop a proposal for a potential IVCSD contribution or partnership with the Isla Vista Food Co‑op (motion passed by voice vote). The motion directed staff to examine options including loans, membership purchases and other supports that would increase food access and stabilize co‑op operations.
2) The board created an ad hoc committee to work with staff and the co‑op; Directors Freeman, Cipos and Hobart were appointed to that committee.

Clarifying figures and operational needs
Co‑op presenters said a 15 percent increase in sales would allow the store to break even; staff and board members estimated a short‑term working capital need in the range of $200,000–$300,000 depending on sales performance and the timing of other receivables such as an employee retention tax credit the co‑op expects to receive.

Community suggestions
Board members and public commenters suggested immediate promotional and outreach steps to increase sales—targeted campus classroom outreach, partnerships with student clubs, expanded curbside or ecommerce options, participation in local farmers markets, and using IVCSD events as regular co‑op vendor opportunities.

What remains open
Staff will return with a legal and financial analysis of possible contribution structures, an estimate of required staff time to administer membership purchases or coupons, and recommended terms for loans or grants. The ad hoc committee will meet with co‑op representatives to refine options and report back to the full board before any funding is approved.