Frequently Asked Questions

What does a cooperative patron owner share cost?

As a cooperative member/owner share costs $250.  It is a lifetime share; once paid in full, there are no more payments.  It can be paid in full, half, or for as little as $50 annually for five years.   As long as you remain current in your payments you will have full benefits of a member/owner including voting rights and discounts to the bathhouse.

How is this different from the membership now?

Currently we sell  memberships for $100 which have to be purchased every year.  These memberships provide discounts to the bathhouse.   Members do not currently have the right to vote on major co op decisions or  for their Board Representatives.

Basically, from a service point of view, the co op member benefits are going to remain very similar to the  current member benefits.  The major advantage to buying a co op share is that once the payment is made in full there are no additional payments, unlike our current membership.

Can I sell my cooperative share in the future?

Yes, but only back to the cooperative and only for the amount you have paid in.  The shares are fully refundable minus a small administration fee.

Will I earn dividends or refunds as an owner?

As a patron owner, you will not be eligible to receive a cash dividend or refund from the profits of the cooperative.  The Board will decide on an annual basis (as part of the budgeting process) whether or not to create a credit based on an owner’s usage over the past year and the member discounts that will be redeemed for services at the bathhouse.

The worker and practitioner groups may be eligible for a cash dividend from the profits in the future, but those types of ownership shares will cost considerably more than a patron ownership share.

Can a patron owner share be purchased for a family?

No, Oregon statute states that one share can only be owned by one person and only conveys one vote.

What is my liability as an owner?

You are only liable for the amount of money paid towards your share.  In the unlikely event the cooperative were to go bankrupt and owed more money than it could pay out you would only lose the amount of money you’ve paid in; you would not be liable to help pay off the rest of the debt.

Why is CGWC becoming a  Co op?

When CGWC formed in 1996 we were required to form as a non-profit by the City of Portland.  This was because our old location was zoned residential and if we wanted to operate there we had to be non-profit.  However, the Federal government did not approve our application for 501c3, tax-exempt status.  This, in essence,  made us a “for-profit” business with no actual legal owners; even though many of us have felt a sense of ownership for the success of the business.

We have always functioned in a collaborative manner.  We have patron, practitioner, and staff representation on our Board of Directors and we have included input from these groups in our business decisions.  We have functioned more like a cooperative than any other business model.

Going to a cooperative model will allow us to more actively involve patrons in the business (for instance, patrons will directly elect their representatives to the Board.)  And we will finally, really and legally, own our community bathhouse.

The state will not let us just convert the business to a cooperative, but they have given us permission to sell our assets to a cooperative. (Usually a non-profit cannot sell its business to a for-profit entity.)

We are splitting the business into 2 pieces: the bathhouse and booking service housed at 33^rd Street will be sold to the new Common Ground Wellness Cooperative.  The existing non-profit will retain ownership of the Flanders House and start to better develop the Wellness Education piece of our business to reapply for 501c3 status.

How does going Co op help financially?

When CGWC lost its lease on the bathhouse in 2007 it took us 2 1/2 years to move, remodel the  new bathhouse, and reopen for business.  We stayed open for massage and other wellness services during bathhouse construction, and took on a considerable amount of debt  because the bathhouse is our major source of income.

The financing to operate and build the new facility over those 2 ½ years came from about many different sources.  Some of this debt, most notably the credit cards, has extremely high interest rates.

Refinancing to lower interest rates is extremely difficult for any business these days, but especially for a business that is not owned by anyone, nor has a 501c3 status.

By becoming a co op and raising money through the sale of ownership shares we will be raising equity to take out a loan to buy the bathhouse business from the non-profit.  Buying a full share is great, but even a partial share helps because it helps us reach our financial goals and it shows that the business has a broad base of community support for refinancing loans.

What if I am currently a member?

Your annual membership will have full benefits until its expiration date.  You cannot use your current membership towards purchasing a co op share.  After your current membership expires, you have the option to become a  member/owner by purchasing a lifetime co op share which costs $250. After you make your full payment there are no additional membership fees.