CC_14June by a2moons

Ute Mountain Ute Tribe P R O P O S A L

CAPITAL CAMPAIGN GROCERY STORE FOOD INCUBATOR

This publication was funded with the generous support of the Rocky Mountain Health Foundation and Center for Rural Outreach & Public Services (CROPS) Photography and Creative Direction; Anthony Two Moons

Ute Mountain Ute Tribe P R O P O S A L

CAPITAL CAMPAIGN GROCERY STORE FOOD INCUBATOR

Published with the generours support of the Rocky Mountain Health Foundation.

S T EER ING C OMMI T T EE MEMBER S Chairman Manuel Heart UMUT Chairman Rita King Diabetes Program Director K’ia Whiteskunk Recreation Center Director Marie Heart UMUT Staff Development Simon Martinez UMUT Farm and Ranch Ronald Scott UMUT CFO Juanita Plentyholes Tiwahe Director Douglas Mize Jr. Souder Miller/ Enviromental Assessment James Melvin General Manager of WCA Rick Scheer Ute Mountain Casino

PROJEC T MANAGEMENT TE AM

Babie Laner Youth Representative

Bernadette Cuthair UMUT Director of Planning & Development

Kamea Clark Youth Representative

Patrick LittleBear UMUT Grants & Contracts Administrator

Chris Lopez Colorado Housing & Finance Authority Laura Lewis Marchino Region 9 - Economic Development District of S Anthony Two Moons Creative Director Helen Katich SW Regional Representative - Hickenlooper

Beverly Santicola Advisor, CROPS Eric Kornacki Executive Director, THRIVE Partners Sarah Kiminski Executive Assistant, THRIVE Partners

Contents

Executive Summary

The Council

The Community

Our Mission

Master Planning

Our Vision

Phase One

Our Strategy

Financials

Well-Being

Executive Summary Myiku, (Hello), T R A D I N G P O S T S W E R E O N C E A V I B R A N T P A R T of the Ute

reservation but have been gone for more than 40 years. Based on a recent feasibility study, the Ute Mountain Ute Tribe elders, youth, and members agreed we need a place to shop closer to home – to get fresh fruit, vegetables, meat, and baked goods, showcase our culture and traditions, get coffee, and meet up with our bóew (relatives) for storytelling. Elders remember going to the Towaoc Trading Post with their grandparents, playing card games around the front porch, and sharing stories. They want that kind of community gathering place for their children and grandchildren again, but in a new setting. While we began planning with the community even before Covid-19, the pandemic made us more aware of the need for a grocery store on the reservation for health and nutrition, job creation, and preservation of our Ute culture and traditions. We hope you will partner with us to make this cultural, health, and economic equity project a reality. Towáoc (Thank you). Manuel Heart Chairman

The Council

Chairman Manuel Heart Ute Mountain Ute Tribe Towaoc, Colorado

M A N U E L H E A R T is the current Chairman of the Ute Mountain Ute Tribe. He was sworn in for a three-year term November 2019. He has served as Chairman and a council member since 1994. Heart has served as a board member of numerous committees on tribal, state, and national levels such as Weeminuche Construction Company, Four Corners Monument, Brunot Commission, Colorado Commission Indian Affairs and National Congress of American Indians. When serving as Chief Executive Officer for the Weeminuche Construction Company, Manuel Heart was responsible for managing over $500 million in construction projects and he was part of a leadership team that worked with the United States Department of Agriculture to establish the Blue Mountain Hospital in Blanding, Utah.

Chairman Heart has been a champion for children, youth and families and played a key role in designing nearly 50 new programs that have generated $91 million in new grants in just six years.

Through his leadership the UMUT has produced six award winning films, including the tribes’ 2020 film Our Culture Is Our Strength which won 21 Telly Awards. In 2021 Chairman Heart helped write, perform, and produce We Are Nuchu – The Ute Mountain Ute Tribe. Other major achievements by Manuel Heart include: the opening of the Kwiyagatu Community Academy – the tribe’s first; Charter School on the reservation; the launch of a year-round afterschool program called Project PEAK (Pisichu Enrichment Academy for Knowledge) for K-12 students that focuses on culture, academics, media/technology, and recreation; a comprehensive educational systems development project called Growing Ute Futures; broadband to get high speed internet to all homes on the reservation, and; restoration of the boundaries of Bears Ears and Grand Staircase-Escalante monuments in southern Utah. The Bears Ears National Monument, which was created by President Barack Obama shortly before he left office, will go back to 1.36 million acres, and Grand Staircase will be restored to 1.87 million acres. Chairman Heart also serves as Chairman for the Colorado River Basin Ten Tribes Partnership. To him, “water is life” so he actively advocates for water for his Tribe. In addition to his tribal role Manuel Heart is a cattle rancher, husband to Marie Lansing Heart, and adoring grandfather. 02

THE COUNCIL

Left to right; Archie House Jr. Vice Chairman

Alston Turtle Treasurer Darwin Whiteman Jr., Secretary John Trocheck Executive Director Ronald Scott Chief Financial Officer

UMU T T R IB A L C OUNC IL A ND L E A DER S

The Ute Mountain Ute Tribe is a federally recognized tribe. The UMUT Tribal constitution was adopted in 1940. The Tribe is governed by a seven-member elected council. One council member represents White Mesa, and the other members are elected atlarge. The council selects a chairman, vice-chairman, treasurer and secretary-custodian from its membership. Government administration is headed by a Tribal council–appointed executive director. Government offices and facilities are concentrated in and around the community of Towaoc, although there are some government offices in White Mesa. According to tribal officials, White Mesa operates as a semi-autonomous government in many respects. The Tribal Administration Department provides for the administrative support services for the executive branch of the Tribal Government. This branch includes the Tribal Chairman, the Tribal Council and the Executive Director. It is the responsibility of the Tribal Administration and the Executive Branch to be completely accountable for both internal and external issues which will affect the Ute Mountain Ute Tribe and its membership. The administrative leader of the Tribe is the Chairman of the Tribal Council. This Chairman’s council seat is one of the seven seats elected through popular vote for a three-year term.

Left to right; Malcolm Lehi White Mesa Representative

Selwyn Whiteskunk Member Lyndreth Wall, Sr. Member Peter Ortego Legal Counsel Patrick Littlebear Grants and Contracts

The position of Vice Chairman is held by an elected Councilman, which is selected every year by the Chairman. The Tribal Council Treasurer is an elected Councilman voted annually by the Tribal Council members. In all matters, the Tribe is a sovereign nation and determines its own course of action. The Ute Mountain Ute Tribal Council, subject to all restrictions in the Constitution and by-laws and the U.S. Code of Federal Regulations, has the right and powers to oversee the following: • Make and perform contracts and agreements • Engage in business enterprise • Manage Tribal real and personal property • Negotiate and assign Tribal security for loans • Enact and enforce ordinances to promote public peace, safety and welfare The Tribe is structured as a Federal Corporation that may be used for business purposes in developing financial growth and Tribal economy. The Ute Mountain Ute Tribal Government Offices are headquartered in Towaoc, Colorado, 15 miles south of Cortez, Colorado, on US Highway 491/160 in Montezuma County, Colorado. 02

THE COUNCIL

The Community SPANNING 575,000 ACRES,

the Ute Mountain Ute Tribe’s (UMUT) lands are situated in southwest Colorado, southeast Utah, and northern New Mexico. The majority of UMUT’s 2,000+ tribal members live in Towaoc, the Tribe’s administrative and population center. Located two miles west of U.S. Highway 491 and U.S. Highway 160 in Montezuma County, Towaoc is comprised of single-family homes, housing complexes, tribal government structures, a recreation center, post office, and a handful of other amenities. In the last few decades, the Tribe has developed the land at the highway’s access points, building the Ute Mountain Casino, a campground, and the Travel Center, which serves truckers, tourists, and the community with basic necessities. Tribally-owned enterprises include the Weeminuche Construction Authority, Ute Mountain Casino, and the Ute Mountain Farm & Ranch and its Bow & Arrow brand. The Ute Mountain Ute Tribe is one of three federally recognized Ute tribes in the United States. Believed to have migrated East from California and Nevada to the Four Corners region, the Ute people as a whole have been in the area since the 1300s. By the late 1800s, the Ute people saw much of their tribal lands taken from them by white settlers and through the use of white settler-favoring U.S. government treaties. This theft of land left many tribes with reduced trade relations and without access to game, forcing people, which had been living a migration-centered life for centuries, to depend on the U.S. Government for food and other necessities.

INC OME & E C ONOMIC OP P OR T UNI T Y

The community’s median household income is significantly lower than averages. In Towaoc, the median household income in 2019 was around $28,800. By comparison, the medians in Colorado and the United States are approximately $69,100 and $60,000, respectively. According to the UMUT Economic Development Report, 40% of UMUT residents live below the poverty line and the unemployment rate is nearly double the state’s unemployment rate. Per capita income is $13,073 compared with $36,345 for the state of Colorado. Employment opportunities on the reservation and in the region are limited. The primary on-reservation jobs come from the Tribal Government and the three tribal enterprises (Weeminuche Construction Authority, the Ute Mountain Casino & Hotel, and the Farm & Ranch Enterprise). Many individuals commute to Cortez for work. Less than 10% of Towaoc community members have a bachelor’s degree, compared to 32% in the state of Colorado.1

GR OC ER Y A C C E S S

Other than some pre-packaged meals and mostly non-perishable goods available at the Travel Center (which is two miles outside of Towaoc), tribal members must travel close to 15 miles to Cortez, Colorado, for groceries and everyday household needs. People also travel to Mancos, Colorado (33 miles away), Shiprock, New Mexico (33 miles away), and Farmington, New Mexico (60 miles away) for groceries and other basic necessities. E X IS T ING SER V IC E S & P R OGR A MS

The Ute Mountain Ute Tribe has several existing programs and access points for healthy living and mental health services, providing an opportunity to be built upon through future healthy food access: • Ute Mountain Ute Health Center • Center for Rural Outreach & Public Services (CROPS) • Ute Mountain Tribe Senior Center • Mógúán, a new behavior and mental health center currently in development • Care and Share, a monthly mobile grocery program providing bread, produce and snacks • Ute Mountain Recreation and Community Center offering various programs in youth leadership, youth and adult basketball leagues, workout programs, youth hockey, co-ed volleyball leagues and more • Tiwahe Tour de Ute: Trail & Fitness Zones, pedestrian and bicycle trail featuring fitness stations and informational guides for upper and lower body workouts S OC I A L C A P I TA L

Some tribal members retain a deep-seated knowledge of food, hunting, and nutrition. This collective knowledge is increasingly at risk of disappearing, particularly as the younger generations embody different preferences and a faster pace of life. The disconnect from ancestral food traditions began at the onset of colonization and the subsequent removal of the Tribe from its own food system. The community has expressed a desire for increased communication and teaching around food preparation methods, particularly between the elders and younger generations. A potential grocery store or community hub should consider opportunities to promote ancestral food traditions and knowledge sharing.

THE COMMUNIT Y

P UR P O SE OF F E A SIBIL I T Y S T UD Y & P R OC E S S

Between 2016 and 2018, the Planning Department facilitated a grant-funded project called the Rural Communities Development Intitiative through the U.S. Department of Agriculture. The project engaged youth and elders in the community to determine what they would like for the future of the Ute Mountain Ute Tribe. One of those wishes was to have a grocery store in Towaoc to provide fresh produce as well as healthy frozen meals currently not readily available. This project was supported by Colorado Fresh Food Financing Fund (CO4F) in conjunction with Region 9 Economic Development. CO4F is a private, statewide fund that aims to improve access to healthy food in underserved Colorado communities. Progressive Urban Management Associates (P.U.M.A.) supports CO4F through marketing, outreach, and technical assistance services. P.U.M.A. is a Denver-based economic development firm that works to deliver community- based solutions in both rural and urban contexts. The purpose of this study is to provide the Ute Mountain Ute Tribe (UMUT) with information to help decide if and where a grocery store could be built on tribal land. It also considers the financial, social, and cultural implications of various food access solutions. Based on market data, community outreach, and best

practice research, the report provides realistic recommendations and a preliminary plan for next steps. The process included a site visit of Towaoc, the Ute Mountain Casino and Travel Center, and community engagement meetings. An online survey was created to gather additional information about the Tribe’s vision for future food access. Combining market data, case study research, community outreach and considerations of tribal, cultural, and historical context, the consultant team assessed several possible store models. In 2012, a brief grocery study was initiated in conjunction with Region 9 Economic Development. The report concluded that, “a small grocery with basic offerings could probably capture many of the potential resident sales, as well as provide convenience goods to people passing through. It would also provide some job opportunities to tribal members both in the construction and operations phases. The location of the market will be important – close enough to the highway to be visible yet near enough to the residential area to be convenient.” This 2020 study builds on the 2012 report’s data and observations, while taking a deeper dive into market research, community feedback, and innovative ownership models. 03

THE COMMUNIT Y

GOALS

Based on community feedback, the community should strive for a grocery store that will provide food that is heathy, affordable, convenient, culturally relevant, and fresh. A grocery store should serve as a community gathering place and increase economic opportunities for the Ute Mountain Ute Tribe. Unique Assets • Community members appear willing to work together and eager to improve food access • Demonstrated success with other tribal enterprises (i.e. Casino, Travel Center, Construction) • Significant local food movement in Montezuma county (e.g. the Sharehouse in Cortez) • No nearby competitors (closest is in Cortez) • High traffic counts on the nearby highway • Casino has significant purchasing power and existing relationships with food distributors Limitations • Low household spending on groceries • Difficulty in attracting an established operator without significant financial package • Possibly limited experience/skillset to develop and run a grocery store • Difficulty in developing supply-chain, lots of logistics 03

THE COMMUNIT Y

HE A LT H DISPA R I T IE S

Ute Mountain Ute Tribal members experience significant health disparities as evidenced by the following table. These disparities need not be accepted but can in fact be changed.

UMUT

Montezuma County

Colorado

USA

Obesity Rate

70.0%

22.3%

23.0%

39.8%

Cancer Rate

4.0%

5.5%

25.5%

6.9%

7.4%

10.0%

55 years

77.6 years

80.2 years

78.5 years

Diabetes (Type II) Life Expectancy

Mental and physical health among tribal members has become a key issue. Common mental health afflictions include drug addiction, depression, and social isolation. Physical health challenges are prevalent. The lack of fresh food access only exacerbates the rates of diabetes, obesity, and other chronic illnesses. According to a 2016 UMUT Community Health Assessment, 1 in 4 of tribal members have Type II Diabetes, and over 70% of adults and 50% of youth are struggling with obesity. Compared to Colorado as a whole, Towaoc has larger households and higher proportions of households with children.

1 in 4

Tribal members have Type II Diabetes

The best practice to prevent and manage Type II diabetes is by maintaining a healthy diet.

DIE T, DOL L A R S & DI A BE T E S

People with diabetes have 2.3X higher annual medical costs than people without diabetes ($7,900 on diabetesrelated expenses per year.) Medical cost average for 500 Tribal members with Type II (diet-related) diabetes:

7,900

500

UMUT Poplution with Diabetes (2016)

Diabetes-related expenses per person each year

1,500 UMUT Poplution without Diabetes (2016)

3.95M

X 50 Years (Average life span with diabetes) / Cost per year

197.5M

Total cost of diabetes-related medical care over 50 years

Research shows that grocery stores with abundant fruits, vegetables, whole grains, lean meats, and low-fat dairy products result in healthier choices for consumers. 03

THE COMMUNIT Y

Adults with no supermarkets within a mile of their homes are 25 to 46 percent less likely to have a healthy diet than those with the most supermarkets near their homes.

V OIC E OF T HE C OMMUNI T Y

Feedback from tribal members and community partners played an essential role in this feasibility study. The community participated in two ways: through an online survey and during a series of community focus group meetings. In total, 150 surveys were completed. The focus groups took place at the Ute Mountain Casino conference room and generated a strong turn-out (100+ people) with lively discussions. Other focus groups included Elders, Community Health Professionals, and Tribal Enterprises. The following themes emerged from the community meeting focus groups that took place on October 28th, 2019. This summary includes the opinions of the community at-large (with a particular emphasis on elders as participants), a community-health focus group, a business enterprise focus group, and other key voices in the community. Tradition There is a strong desire for traditional foods and passing down recipes and food production techniques. • • • • • • • •

Teaching youth to grow vegetables and cook Re-introducing hunting/preparing deer meat Replanting wild onions and potatoes Knowledge of herbs for healing purposes Traditional cooking (e.g. outdoor wood stoves) Loss of the Trading Post as a place to shop, gather, eat affects community in many ways Social/cultural impacts on food: Living in a white man’s world; Bear Dance & Sun Dance Communing around food is important and key to survival

Health The community meeting participants, including those who work in health and social services, saw the value of grocery access for improving health outcomes. • • • • • • 03

THE COMMUNIT Y

Support diabetes prevention and WIC nutrition programs Depression in community from lack of purpose – especially impacting elders Mental health begins with a healthy diet Need for nutrition education Need for healthy food/support for pregnant women, neonatal health Tele-health services

Amenities When asked about “wishes, hopes and dreams” for the community’s future, much of the responses overlapped with “food memories,” as well as answers from the survey regarding additional amenities in the store. • • • • • • • • • • • • •

Need for a community gathering space A place to buy prepared foods, particularly smaller portions for elders who live alone Convenience items including baby supplies, household goods, and over-the-counter medications A coffee shop with Wi-Fi A place for hunters to prepare meat A restaurant with healthy options and later hours Prepared meal section featuring Native foods A way to get there; transportation The ability to purchase from local producers; possibility of a CSA share Limit alcohol, tobacco, marijuana, and candy Low prices, affordable options Add-on services could include: pharmacy, banking, and a copy machine Community-focused, not tourist-focused

Business Enterprise & Economic Opportunity Existing and future business enterprises could support grocery store development. There may be opportunities to increase the breadth of healthy food options available at the Travel Center. The building’s layout and floor space could be utilized to expand the inventory of fresh produce, prepared foods, and other healthy groceries. The Travel Center is a primary destination for truckers and travelers passing through on the highway, as well as for local residents. With few nearby alternatives, this location is the primary option for quick and convenient food. Stakeholders expressed a desire for healthier food options. Increasing the overall availability, as well as the quality of prepared foods and healthy groceries should be viewed as an opportunity to both improve health and create new economic opportunity. • • • • • • • • • • •

THE COMMUNIT Y

Tribal owned grocery – opportunity for ownership, purpose, micro-enterprises Create jobs for young people Sell beadwork & other crafts, products carrying the tribal seal (either at the grocery store, or at Travel Center) Limited or lower taxes in Towaoc- make that an incentive for folks to shop at a tribal store Adding a grocery store could attract new customers to the Casino RV Park visitors tend to value frugality and would likely buy products at a grocery store The grocery store could be a source for freshly baked bread and other supplies for the Casino Leverage the casino’s purchasing power Existing food distributor contracts could be utilized to get purchase order discounts Shamrock and Sysco could work with the casino on purchasing additional goods for sale Co-market promotions with the Casino & Travel Center, supported by the existing points-earning system

INC R E A SE T R IB A L F OOD P R ODUC T ION The Tribe boasts large amounts of arable land suitable for agricultural production. Bow & Arrow is a successful tribally-owned agriculture company, which operates over 7,000 acres of land, 500 to 600 head of cattle, and grows corn and wheat. However, there is little land cultivated for fruits and vegetables for local consumption. Agricultural production of fruits, vegetables, grains, and herbs could positively increase the amount of accessible and affordable healthy food, while also decreasing food insecurity, mental and physical health issues. Agriculture is also an important cultural practice - many elders interviewed shared stories of growing up with gardens, as well as foraging for wild crops and herbs, and utilizing these ingredients in their cooking. According to the UMUT Economic Development Report, there is a 160-acre demonstration farm “which has provided valuable research, as well as an opportunity to train staff and Tribal members.” Assuming a conservative production rate of 0.3 pounds of food grown per square foot, this demonstration farm has the potential to produce an estimated 2.1 million pounds of food per year, enough to provide 4,427 pounds of food per household in Towaoc. Additional considerations related to food production include:

•

• •

•

Allocate land for growing (e.g. community garden with individual plots or larger community-based farm), along with an orchard and a perennial garden. Ensure that existing agricultural assets (i.e. greenhouse and irrigation system) are functional and being fully utilized. Develop relationships with local farmers, producers, and food system advocates in surrounding Montezuma County (e.g. the Sharehouse in Cortez). Develop ‘Growing Farmer’ mentorship, pairing farmers and gardeners, with younger and/or less experienced growers. Emphasize traditional hunting and foraging programs, and couple it with modern classes on food preservation, such as canning and pickling. Create cooking education programming that focus on retaining the knowledge of traditionally prepared foods, and create connections between elders and youth

PA R T NER SHIP S & F UNDING R E S OUR C E S

Connecting with Regional Food Partners Interest in a thriving food system is growing in Montezuma County, including a revitalization of local food production, food banks, farmers markets, mobile market programs and more. The UMUT could partner with nearby organizations who are already working to address regional food security. Funding Resources • Colorado Fresh Food Financing Fund (CO4F) • The Reinvestment Fund/Healthy Food Financing Initiative • New Market Tax Credits: • Loan Guarantee and Subsidy Program (Division of Capital Investment) • USDA Business & Industry Guarantee • USDA Community Facilities Loan and Grant Program: • Dept of Health & Human Services Community Economic Development: $800,000 • Economic Development Association: $1-2M grant • Indian Community Development Block Grants • Tribal Economic Development Bonds • NB3 Foundation • First Nations 03

THE COMMUNIT Y

Our Mission We cannot have Tribal Soverignty if we do not have Food Sovereignty. Our ancestors knew where to hunt, where to forage, but times are changing, the climate is changing and our food security and health are suffering as a result. A Tribally-owned grocery store is an important piece of building a resilient and soverign food system.

MISSION

2021 J

Community Engagement Program Development Site Master Plan Concept Building Conceptual Architecture Site Feasibility Study Business Plan Development Financial Pro-forma Fundraising

goal of bringing a grocery store to Towaoc is divided into three phases; pre-development, construction and operations. T HE U T E MOUN TA IN U T E T R IB E ' S

focused on site location analysis, business plan refinement, fundraising, and store design and layout. 1 PRE-DE V EL OPMENT

serving as the owner’s representative throughout the construction process, including selection of general contractor, managing budgets and timeline, and guiding the construction process. 2 CONSTRUCTION

assisting in the business development, branding, marketing and advertising, hiring and training of employees, and overall operational guidance. 3 OP E R AT ION S

Analysis of several potential site locations resulting in the selection of a site for further analysis included a geotechnical study, traffic impact analysis, existing utility analysis, and cultural resource study. This site was selected to move forward with a conceptual site plan. The conceptual site plan demonstrates how the site could be constructed to accommodate a variety of current and future commercial uses, including the construction of the Ute Pottery Center and other economic activity.

Community input, as well as additional new market research, informed the creation of a business plan for the grocery store. A conceptual design for the grocery store of 16,500-30,000 to square feet of retail was developed including space for a community meeting room, a stand alone coffee shop, a commercial kitchen supporting a food business incubator program, and a Native Food Hall showcasing local entrepreneurs selling prepared food items. A business plan for the full-service grocery store shows a minimum annual revenue of $3.4M, hitting break-even in year seven at nearly $7.7M in revenue, and creating nearly 30 full-time equivalent jobs at full sales capacity of $8.8M annually. Nearly 1M has been raised to cover the cost of pre-development activities, as well as funding pilot programs which will lay the ground work for the success of the grocery store. An additional $3M is likely to be awarded in early 2022. Development of several food-related programs, which will support the UMUT’s goal of achieving food sovereignty. Development of a pilot project utilizing shipping containers to activate the proposed site location in the Fall of 2022, demonstrating success to funders while raising the remaining amount for the full-service grocery store.

OUR MISSION

UMUT Grocery Shopping Drivers A community-wide survey was used to gather information about UMUT member's shopping habits, trends and preferences.

Price Quality Sale Price

3 4

Brand Name Value Organic

5 6

P R E-DE V EL OP MEN T S C OP E OF W OR K A S T E E R I N G C O M M I T T E E C O M P O S E D O F VA R I O U S S TA K E H O L D E R S ,

including Tribal Council members, key UMUT staff members, funding partners, youth and elders, guided the pre-development phase. The steering committee guided the site selection process, providing key input on existing site uses, pros/cons for the slate of potential sites, and more. The committee also weighed in heavily on the primary benefits of the grocery store, providing greater insight into the current shopping reality for Tribal members, as well as employees and tourists.

Grocery Items Wishlist In Order of Priority

Fresh Produce

Over 75 participants completed the study, and over 50 shopping receipts were collected. These efforts revealed Tribal members’ current shopping habits, preferences, needs and priorities.

Butcher Paper Products Household/Kitchen Items Deli Bakery Beauty & Healthcare Pharmacy Café Seafood Native Provisions

COVID-19 Impacts On Shopping Behaviors

Shopped less frequently

Ordered online

OUR MISSION

Found less availability of basic necessities

Unable to afford necessities

Experienced fear and anxiety during shopping

A grocery store for Towaoc is long-overdue. Since our Trading Post closed in the late 1970’s we’ve had no where local to shop, to meet and converse, a place to build community, to share knowledge. UMUT Elder

Key Results from the Survey • 64% would shop at the Towaoc store more than once per week • Price and quality were the most important factors in decision making • COVID-19 made it more difficult for UMUT members to access food, namely reducing the frequency of shopping, leading to increased fear/anxiety when shopping and simply making it more difficult to buy what people need • Online ordering isn’t currently widely used, but people would use it for ordering ahead and picking up at the UMUT grocery store • Fresh produce, butcher, deli and household items were the most requested priorities in the UMUT store • People are very price sensitive - the consensus was groceries should not be more than 5-10% higher in comparison with groceries in Cortez 04

OUR MISSION

MISSION

Master Planning Nearly all of our money spent on food, groceries, as well as dining leaves our community. Over $3 million every year leaves our pockets and does not return. We could be reinvesting it back into our community. We can create jobs, we can grow food within our community. We can celebrate our culture.

MAS TER PL ANNING

Phase 3

Phase 1

Phase 2

RV Park

Route 491

Casino / Hotel

Site Plan

A set of requirements were used to screen all potential site locations. These requirements included visibility from US-491, ease of entrance and exit for vehicles, ease of access for semi-trucks to make deliveries, adequate parking and location to existing utilities. Bonus points were awarded for proximity to additional amenities that would draw in customers. This overlay identified three parcels of land west of US-491 in the vicinity of the Travel Center and the Hotel and Casino. The site overlay narrowed down the options to two sites. As identified in the 2020 Grocery Store Feasibility Study, locations in Towaoc were not considered during the pre-development phase as they would not be economically feasible due to the lack of visibility and access for travelers and tourists. Site A was too small for future growth and expansion. There were also concerns about adding increased traffic to the intersection of Mike Walsh Road and US-491, an intersection that is already complicated due to restricted turning lanes.

Grocery Store

Receiving Dock

Pedestrian Plaza

Community Space

Pottery Center

Site B was ultimately selected through the site overlay process. The strongest selling point for Site B is that it allows for future economic growth and expansion, and it builds off of the proximity to the RV park and the Hotel and Casino. The Pow-wow grounds, which periodically bring in hundreds or thousands of visitors, are also an added boon. Both the Tribal Council and the Hotel and Casino identified the desire for a commercial growth corridor, which this site provides due to the scale of developable land and the proximity to US-491. Finally, the site provides beautiful vistas of the Sleeping Ute Mountain to the West, and Ship Rock to the South. Site B has great visibility from US-491, there are adequate acceleration and deceleration lanes from US-491 to allow for access onto Morning Star Lane. Highly visible signage is recommended at the existing turnoff from 491 onto Morning Star Lane; currently a small sign for the Hotel and Casino is displayed. Billboards along 491, both north bound from Ship Rock and south bound from Cortez, can also provide great advertising opportunities.

MAS TER PL ANNING

47 3

Front Elevation North View. 1

Store Entrance

Support Columns

Shade Louvres

Cultural Resource Survey & Results Scale 1:24,000 Towaoc Grocery Study Area Current Survey Area

The site also has close access to existing utility tie-ins for sewer, water, electricity and broadband. This is very important. Care and consideration should go into expanding these utilities to not only accommodate the proposed grocery store, but with consideration to future commercial activities, such as the discussed new pottery center. However, it should be noted that the site is large and will be expensive to develop. Parking, storm water management and utilities for a site this large are expensive and are not considered in the grocery store’s financial feasibility study. As noted in Appendix B “Future Questions,” the UMUT should consider bond financing, as well as Federal infrastructure grants and earmarks to pay for these infrastructure improvements. Souder Miller and Associates, based in Farmington, NM, conducted a geotechnical analysis of the proposed site location, a traffic engineering impact analysis, a utility and infrastructure assessment, and a preliminary cultural study. To summarize SMA’s findings, the proposed site meets all of the requirements from a geotechnical, traffic, utility and cultural assessment. Out of four possible site locations, this was the only site that met all of the requirements. Cultural Resource Study Interior West Consulting, LLC conducted a field investigation at the proposed development location (diagram page 47). The site has been previously disturbed in its entirety. Disturbances identified include about two-thirds of the site disturbed by plowing, irrigation, and agricultural operations. The remaining third of the site was obliterated by road construction, parking lots, pow-wow facilities, rodeo grandstands, an RV Park, and other related facilities. At least six previous surveys have been conducted in the immediate area of the proposed project. The proposed project is covered by two of these reports, MT.IA.R3 (Ismay Agricultural Plot) and MT.IA.R58 (Four Borrow Pits by CDOT for highway development). Both projects were apparently implemented. Only one previous site is known to occur within the project area consisting of earth and stone check dams along the west side of an arroyo. The site was apparently destroyed.

MAS TER PL ANNING

Our Vision Reinen Consulting developed a preliminary master site concept plan. Insight from the community surveys and focus groups, along with feedback from the Steering Committee, informed the master site plans as well as the design of the grocery store building, which included plans for a cafe, food hall, commercial kitchen and community room. F O L L O W I N G T H E S I T E S E L E C T I O N F E A S I B I L I T Y,

Key Site Considerations: • Incorporate existing uses of site, particularly the powwow grounds and other festivities, such as the 4th of July gathering • High visibility from US-491 • Incorporate walkability from Casino/Hotel and RV grounds • Feature a bus circulator for pick-up and drop-off route to Casino/Hotel and Towaoc town center • Incorporate potential Ute Pottery Warehouse and Retail center • Highlight the mountain vistas to the West On April 29, 2021, THRIVE Partners, Reinen Consulting, Bernadette Cuthair, Chairman Heart, representatives from the Casino, and Souder Miller and Associates attended an on-site meeting to discuss the latest rendition of the conceptual layout plans developed with the tribe’s latest comments.

Food access solutions for the UMUT community will provide food that is heathy, affordable, convenient, culturally relevant, and fresh A grocery store should serve as a community gathering place and increase economic opportunities for the Ute Mountain Ute Tribe.

Final design of Ute Grocery Store and Pottery Center view from Morning Star Lane.

OUR VISION

Multiple conceptual plans were reviewed over the tailgate overlooking the proposed site for spatial recognition. Major discussions included how the new plans incorporated pedestrian and vehicular connectivity between the grocery store, pottery factory/showroom, event area vicinity (the existing rodeo arena), the pow-wow grounds, the casino, and delivery circulation outside of the normal traffic pattern. Additional discussions included site drainage and utilities. No major concerns were identified at that time.

Final design of Ute Grocery Store and Pottery Center view from Morning Star Lane.

OUR VISION

UMUT accepted the conceptual layout presented. On July 30, 2021, Reinen Consulting presented a revised conceptual architectural rendering that incorporated the feedback from the Tribe and Souder Miller. This revised rendering was presented to the UMUT Council in October 2021 and will be the basis of the design moving forward if approved.

Rendering of approach to Grocery Store entrance.

in the 2019 Market Feasibility Study specifies for 10,000 SF of retail space. The market feasibility study used this number as a benchmark when looking at comparison formats for grocery retailers. Based upon the community survey and focus groups, it became apparent that a larger store format would be needed to meet all of the identified community needs. A grocery store model was developed based upon the necessary grocery departments, down to the specific linear feet of shelving and associated square footage, along with necessary back of house, restrooms and common areas. Additionally, the store design includes a commercial kitchen and food vendor kiosks for a food entrepreneur program, a coffee shop/cafe and a multi-purpose community space used for meetings, classes and more. With these additional uses, the size of the grocery store increased from an anticipated 10,000 SF specified in the market feasibility study, to nearly 30,000 SF total space with 16,000 SF of retail. THE INITIAL CONCEPT FOR THE GROCERY STORE

West Elevation

OUR VISION

View looking Northwest.

Key Store Design Considerations: • Integration of grocery store and community serving space such as a wifi cafe and meeting room • Emphasis on Native foods and showcasing Native Entrepreneurs/Artisans/Craftsmen • Clean, modern design yet integrating traditional materials and design elements, such as radial/circular elements • A destination for the majority of UMUT members’ grocery needs, while also serving as a gathering place for community • Separation of grocery store from coffee shop and community space to allow them flexibility with hours of operation Construction costs are the largest cost-driver in this project, and so careful consideration needs to be made into the design and size of the store. Finally, the grocery store conceptual plan shown below demonstrates how the shipping containers (detailed in Section 3: Alternative Proposal) can be integrated into the future grocery store design and operation.

In 2019, the Tribal Council commisioned a market feasibiltiy study. In 2020, it moved forward with site planning and developing a business plan for a fullservice grocery store.

OUR VISION

View looking Northwest.

The store design includes a commercial kitchen and food vendor kiosks for a food entrepreneur program, a coffee shop/cafe and a multi-purpose community space.

OUR VISION

View at point of sale looking towards food vendors.

7 6

13 11 12

14 3 2 1

15 16

60 6

4 10

3 12

Floor Plan First Floor.

OUR VISION

Entry

Bulk Items

Customer Service/Information

Prepared Foods

Point of Sale

Deli/Bakery

Food Vendors

Pharmacy

Dry Goods

Kitchen

Produce

Community Space

Frozen Items

Café

Meat & Seafood

Delivery/Storage

Juice/Drink Cooler

Phase One for the grocery store was the U.S. Economic Development Agency (EDA). EDA funding is designed to spur economic development activity and job creation in underserved communities. In 2021, the EDA announced a new funding set-aside for Native businesses and Tribal Enterprises. The Western region has $11M to award and funding is on a firstcome basis. Our team has worked closely with Trent Thompson, the Economic Development Representative for Colorado and Utah, to ensure our proposal is well received. Mr. Thompson has advised our team that we need to have our proposal completed by the end of December in order to receive a review in February. After this, they cannot guarantee funding in the current allocation. We are in current discussion for a funding request of $3M and have a high confidence rate in winning this funding. O N E O F T H E M A J O R F U N D E R S I N I T I A L LY I D E N T I F I E D

There are several preconditions that need to be navigated: • EDA funding cannot be co-mingled with other Federal funding, meaning that no other Federal dollars can be spent on the same project. This requires that EDA is the only Federal funder. • Project must demonstrate all of the funding is committed. • Project merit is scored on the number of jobs created and private investment leveraged.

Due to the aforementioned cost and timeline for constructing the full-service grocery store, and with a narrow window to apply for an EDA grant where we believe we are strongly competitive to win $3M in funding, our team has devised an alternative standalone project to the full-service grocery store that could be fully funded by EDA, while building momentum for the full-service grocery store. Utilizing retrofitted and fabricated 8’ x 40’ shipping containers, we propose creating a food and economic incubator hub located on the site for the future pottery center (adjacent to the proposed location of the full-service grocery store). Using modular shipping containers allows the project to scale, is more cost efficient than new construction, and can ultimately be moved and retrofitted into the future grocery store construction. The site will offer: • • • • • •

PHASE ONE

Produce/grocery stand Commercial kitchen to support start-up restaurant concepts Butcher and meat department Coffee shop Office space/training center Fab lab (light manufacturing, fabrication, with an emphasis on computers, technology and robotics)

Grant-funded programming will focus on job training, culinary arts, business and entrepreneurship, STEM (science, technology, engineering and math), and health and nutrition. This project would provide an immediate benefit to the Ute Mountain Ute Tribe. Namely, it would provide access to healthy food — both produce as well as prepared food items — job training programs, and small business/entrepreneurship development, all which will benefit the future grocery store. If awarded, the EDA grant would also help fund a significant portion of the infrastructure that will be required for the future grocery store and pottery center, such as sewer, water, and electrical. Additionally, it is important to note that if the EDA funds the pilot project, it would not preclude the grocery store for being eligible for EDA funds in the future — in fact, EDA views it as a positive that the incubator hub will support the development of the future grocery store. The design team has taken great care to identify how the shipping containers can operate as a stand-alone and then be incorporated into the grocery store in the future, ensuring no money is wasted on the alternative plan concept.

Using modular shipping containers allows the project to scale, is more cost efficient than new construction, and can ultimately be moved and retrofitted into the future grocery store construction.

PHASE ONE

SHIP P ING C ON TA INER B UDGE T & T IMEL INE

Our team has developed a budget for the construction, fabrication and operation of the shipping containers, along with the necessary civil engineering and utility work required on-site. Additional funding will be secured from the Colorado Health Foundation. NE X T S T EP S Shipping Container Pilot Project It is recommended to move forward with a pilot program to install and activate up to 20 shipping containers as part of a food and business incubator hub. This project will provide valuable insight into customer engagement and adoption, and the operations and capacity required to operate a full-service grocery store. This will also demonstrate to funders that the Tribe is taking incremental steps. Many funders want to see a concept in action before having confidence in investing in the full iteration. This will also allow the Tribe to iterate, make mistakes and learn in a low-cost, low-risk environment. Finally, it will provide immediate benefit to Tribal members, increasing their access to healthy food, jobs and economic opportunity.

Local Food System Development Establishing a successful independent grocery store in a rural community is a difficult undertaking. Corporate concentration in our food system over the past 50 years has squeezed out innumerable independent retailers, producers, farmers and distributors. Building a supply chain that can provide the quality and variety of products at price points the UMUT consumer can afford will be one of the most consequential and difficult aspects of this project. It is our recommendation that the UMUT begin developing a local food system that will serve the grocery store’s needs. This should begin with the UMUT’s own Farm and Ranch Enterprises and then extend to both independent local producers, as well as Native producers around the country. A significant amount of funding has been secured in the pre-development phase to begin this work.

PHASE ONE

Workforce Development Following the importance of developing a supply chain for the grocery store comes the importance of developing a reliable and capable local workforce. As mentioned previously, the grocery store projects to create 30 jobs for an annual investment of over $1M in salaries and wages. This is a significant opportunity for the UMUT people. Developing a workforce takes time, and it is our recommendation that this work should begin as soon as possible and leverage the resources and relationships the UMUT has already cultivated. Food Business Development One of the unique opportunities for the grocery store is to develop and showcase Native food businesses. Funding has been secured within a proposed project called FEED Towaoc. A Native Food Hall can become a draw for tourists and travelers who are looking for new and unique food experiences. The program would also create numerous jobs and new economic opportunities as Tribal members gain valuable business skills and experience.

F U T UR E C ONSIDER AT IONS

Master Site Planning and Costs During the site feasibility study, the question of master site development and ownership emerged. The financial pro-forma developed by THRIVE does not include site construction costs, such as civil engineering, utilities, storm water management and parking. The identified site has good proximity to existing utilities; however, the site is very large and will be expensive to develop. The UMUT may want to consider using a Tribal Bond to pay for this infrastructure. Other options are limited to Federal infrastructure grants; private foundations would be highly unlikely to pay for these costs. This infrastructure needs to be put into place before the grocery store can be constructed. Pottery Center The Chairman has asked for plans to include a potential pottery center located adjacent to the grocery store in the master site plan. While outside the scope of work, the team developed a concept plan for the pottery center as we felt it important to include at this point in time to ensure that all known uses are accounted for when investing in the infrastructure and parking needed for the grocery store. The pottery center, which has both a production and retail floor, offers significant benefit to the grocery store as it will attract outside tourists and business. Moving forward, plans for the pottery center, including budgets and timelines, should be developed as soon as possible. 07

PHASE ONE

Our Strategy The UMUT Grocery store will be structured as a Triballyowned enterprise of the Ute Mountain Ute Tribe. as documented by the report by the Region 9 Economic Development Small Business Development Council identified the need and feasibility for a small grocery store located in Towaoc. The 2017 UMUT Housing and Open Space Master Plan highlighted the need for a grocery store, as well as small business development. In 2019, after the urging of UMUT leadership, the Colorado Housing and Finance Authority (CHFA) commissioned a grocery store feasibility study. The study was conducted over a 4-month period at the end of 2019 and into early 2020 by Progressive Urban Management Associates (PUMA), and THRIVE Partners. The findings and recommendations of the feasibility study were presented to the UMUT Tribal Council in February 2020 prior to the Covid-19 pandemic. Several months into the pandemic, where the entire UMUT reservation was closed and travel restrictions were in place, the Tribal Council unanimously voted to move forward with the business planning and pre-development for the construction of the grocery store. In December 2020, Tribal Council also unanimously voted to hire THRIVE Partners to lead the pre-development, construction and operational technical assistance for the grocery store. THE NEED FOR A GROCERY STORE

S T R AT E G Y

One of the innovative and central features of the store will be a local vendor area that will house 4 to 6 food businesses.

The UMUT Grocery store will be structured as a Tribally-owned enterprise of the Ute Mountain Ute Tribe. The Tribe currently runs a number of successful enterprises including the Ute Mountain Casino and Travel Center, the Weeminuche Construction Authority, and Ute Mountain Farm & Ranch and its Bow & Arrow brand. The Tribe will utilize its experience running these successful businesses when operating this new grocery store. The grocery store will be run by a General Manager. The Tribe’s goal is to hire a GM with relevant experience running grocery retail operations. The Tribe hopes to employ as many tribal members as possible in the grocery store in positions such as cashier, department managers, and general department positions. The grocery store will provide job training for all positions through the Tribe’s workforce development program. The 16,000 square foot full-service grocery store will feature local produce, foods from Native suppliers, a butcher, a deli, a bakery, and a limited pharmacy. There will also be a prepared foods section with a hot food and salad bar, as well as grab-n-go items for the breakfast and lunch crowd. One of the innovative and central features of the store will be a local vendor area that will house 4-6 food businesses. These businesses will be part of the food business incubator program, FEED Towaoc. The grocery store will include a commercial kitchen for use by the food businesses in the incubator program. When the businesses are ready to launch, they will sell their products at

one of the kiosks in the food vendor area. This area will include both indoor and outdoor seating for customers. A small percentage of the sales from the food vendors will go to the grocery store to help pay for the space and utilities. In addition to the grocery retail and food vendor sections, the 30,000 square foot building will house a Native-run coffee shop and a community room. The community room will be available for educational events like cooking classes and job training, as well as rental by community members for private events and gatherings. The coffee shop and community room, although part of the building, are being designed with separate access from the grocery store so they can have different hours if necessary.

2,500

Average annual spending on groceries in Towaoc and UMUT households

Trade Area Other than some pre-packaged meals and mostly non-perishable goods available at the Travel Center (which is two miles outside of Towaoc), tribal members must travel close to 15 miles to Cortez, Colorado, for groceries and everyday household needs. People also travel to Mancos, Colorado (33 miles away), Shiprock, New Mexico (33 miles away), and Farmington, New Mexico (60 miles away) for groceries and other basic necessities. To quantify regional demographics and spending potential, several trade area “rings” were established: 3 miles (encompasses Towaoc), 10 miles, and 20 miles from Towaoc. Household Food Spending Data obtained through ESRI Business Analyst software shows that the average household in Towaoc/UMUT spends around $2,500 on groceries annually. By comparison, the average American household spends almost twice as much. Anecdotal findings from the survey confirms that average annual spending is around $2,500, if not lower. The most common response (32%) was $100-$199 per month (less than $2,000 annually). Answers ranged from less than $100 per month to over $600 per month. Retail Gaps Within the 3-mile trade area, which is primarily composed of the UMUT reservation, there is a retail gap of nearly $2.6M for food. Within 10-miles, the gap for food is nearly $6M.

O U R S T R AT E G Y

Local Market Opportunity/Demand Based on the 2020 Grocery Feasibility Study, the breakdown of potential demand for groceries by market segment is estimated as follows: • Residents: $2,063,032 representing 62% of total grocery sales • Employees: $503,750 representing 15% of total grocery sales • Tourists: $776,475 representing 23% of total grocery sales. • The breakdown of potential demand for prepared foods by market segment is estimated as follows: - Residents: $1,291,040 representing 50% of total store sales - Employees: $503,750 representing 20% of total store sales - Tourists: $776,475 representing another 30% of total store sales Store Management The store is estimated to need about 30 employees. This includes managers and staff for all of the departments listed under Operations. The General Manager will lead the store and staff and have significant experience operating a grocery store. The GM will be involved in many aspects of planning and running the store and is anticipated to be hired 6-12 months before the grocery store opens. This will allow the GM to be involved in the construction and inventory planning of the store. The Tribe will conduct a national search to find the best candidate for this position. In addition to the GM, there will also be department level managers and administrative staff, as well as hourly positions like cashiers, stockers, janitors, etc. The Tribe’s goal is to hire as many Tribal members as possible to work in the grocery store. This will require job training for interested candidates, both specific to their department (bakery, produce, cashier, etc.), as well as more general workforce skills. The Tribe is actively fundraising to help pay for this important investment in economic opportunities for the Ute Mountain Ute community. Operations and Inventory Management As a small store in a small market, the UMUT store will need to closely monitor and manage inventory in order to avoid high amounts of shrinkage and to be proactive in its inventory ordering. It is likely that distributors will make weekly or bi-weekly drops at the store due to its somewhat remote location. The store will utilize an efficient Point of Sale (POS) system to track both instore and online orders. This sales data will be used to order and track inventory, helping to cut down on shrinkage.

2,063,032 Potential total grocery sales by residents

The store will have the following departments/items: • Produce, including fresh and frozen fruits and vegetables • Meat, Poultry and Eggs, including fresh and frozen raw cuts and processed meats and possibly seafood • Deli Case, including cold cuts, cheeses, as well as pasta salads, potato salads, and other prepared foods • Dairy, including fresh milk, cheese, yogurt, and butter • Packaged Foods, including consumer packaged goods • Bakery Goods, including bread, tortillas, pastries, cakes, and other baked goods, many made in-house • Bulk Items, including grains, legumes, flour, herbs, teas, etc. • Other Grocery Items, including juices, honey, maple syrup, etc. • Non Food Products, including health and beauty products, vitamins and supplements, personal care products, household supplies, garden supplies, and miscellaneous general merchandise • Prepared food, including a hot and cold bar, sandwiches and salads, and drinks to go The store will also have a coffee shop with wi-fi access for locals and travelers. The coffee shop will be managed by a separate business (potentially another Tribal enterprise) and pay rent to the grocery store. There is interest in setting up a locally-owned coffee business, which would provide economic opportunity for the Tribe. If this does not come to fruition, then an existing coffee operator will be brought in. As outlined in the 2020 Marketing Feasibility Study, the store needs to hit a target of $450 in sales per square foot ($/ SF) of retail floor space in order to reach a critical profitability threshold. The Market Study also planned for a 10,000 square foot store, based on the assumption that people would continue to shop in Cortez and the grocery store would not need to be a full-service store. There are two factors driving the size of the current store: 1) COVID-19 severely limited UMUT members ability to access food when a lockdown was in affect. Even after lifting travel restrictions, UMUT members indicated they do not feel comfortable shopping in Cortez where mask and vaccination requirements are more lax than on the reservation. 2) UMUT members indicated in the most recent community survey that they would like for the store to be a full-service store where they can shop several times a week for all of their needs. Furthermore, as UMUT members indicated that price is the most important factor in their shopping decisions, the size of the store matters. If the store is too small, not enough product variety and volume can be carried,

Members indicated that price is the most important factor in their shopping decisions. which makes it hard to sell enough volume to have lower prices. Conversely, too big and the store will not have enough sales to support the volume. We believe that the current proposed store format at 30,000 sf (16,000 sf retail) can be supported and is the optimal size to carry enough variety of products and a unique customer experience to change the population’s existing shopping habits. Despite there not being a grocery store in Towaoc, people have adapted and developed shopping habits. Those habits — as expensive and/or as inconvenient as they are — can be difficult to break. Convenience, selection, price and customer experience are critical to shifting shopper’s habits from driving to Cortez and towards where the UMUT grocery store is their primary destination. Additionally, a substantial amount of the store’s success lies in its ability to attract outside revenue, namely travelers and tourists in the region. In order to do so, the grocery store must either be more convenient, more affordable, and/or have unique products, service and/or experience. By including the cafe and Native Food Hall, we believe the proposed format will make the UMUT grocery store a destination for tourists, travelers and the like throughout the Four Corners region. 08

O U R S T R AT E G Y

Financials Development Budget The Development Budget looks at how much capital is required for pre-development, construction, and operations prior to opening, along with how much working capital is needed to help the grocery store operate the first year when revenue will be the lowest. Construction costs are based on a per-square foot basis and are not actual construction bids. Construction costs do not include site-wide infrastructure and civil engineering costs. The total development budget for the UMUT Grocery Store and Food Incubator are estimated to be $14M. Sources & Uses The bulk of contributions will come from Grants and Philanthropy, which account for nearly 70% of revenue below. Grants include funds already committed as well as the current pipeline for funding. It is our recommendation that the UMUT should contribute 10% in equity towards the project. We also identify an opportunity to solicit donations from individual donors, with a goal of 10%. The remaining gap will need to be filled with traditional financing. We have identified a mission-related funder — Oweesta — who can contribute up to $2.5M in financing at 1.7% with a 15-year repayment. We advise that total debt for the project does not exceed 10%.

Projected Revenue Projected Sales are the lowest in year 1 over a 10-year period, as it will take time to build a strong customer base. Year 1 Sales are forecasted to begin at 52.6% of the average annual sales of the 10-year period. The annual growth rate will be strongest from year 1 to year 2 with double-digit growth projected until year 7, when growth begins to plateau as the store reaches capacity of between $9M - $10M in annual revenue. As specified in the Market Feasibility Study, the Target Sales per SF is $450 - an industry wide target for a store of this size and based on the demographic served. Projected sales do not reach the Target Sales/SF until year 7; this threshold also matches the 10-year Profit & Loss projections which forecast a breakeven point reached in year 7. Operations Model The grocery department which includes most in-aisle products, makes up the largest percentage of retail square feet as the variety and volume of products is the most extensive. On a $/SF basis, dairy, meat and frozen foods are the most profitable. Pharmacy and Household Goods are projected to be the least profitable on a $/SF basis; however, they are necessary to attract people into the store, who will likely purchase other items. Prepared Foods are another highly-valuable area for the business as there are few restaurant options in the immediate area and many people indicated a strong need for pre-made options. We also believe that the Native Food Hall, featuring small-independent food entrepreneurs running their own food kiosk, and the cafe area will be strong customer attractions. At this point in time, however, the profit and loss projections are not reflected in the P&L statements for the grocery store due to the lack of understanding if these businesses will be part of the grocery store business model and/or Tribal Enterprise, or if they will operate independently. If they are part of the same Tribal Enterprise as the grocery store, we will adjust the financial projections accordingly. If they are not part of the same Tribal Enterprise, we will add a line-item for Rental Income on the Grocery Store’s Project & Loss.

FINANCIAL S

35.7

Projected number of full-time equivalent positions created by the grocery store

1.1 M

97,435

Estimated annual cost of full-staffing

Estimated sales per employee

Dairy, meat, and frozen foods are the most profitable.

Employment Model The grocery store alone (not counting the coffee shop or food vendor hall) is projected to create 35.7 full-time equivalent positions (full-time is represented as 36 hours worked per week.) Five administrative management positions — all full-time salaried positions — comprises the general manager, human resources manager, finance manager, marketing manager, and point-of-sale/data manager. Five department-level management positions comprises the grocery/produce manager, bakery manager, butcher/meat department manager, deli/prepared foods manager, and a front-end manager. Department-level managers are hourly paid employees who report to Administrative Management and oversee department-level production employees, who are also hourly. Hourly production employees’ starting wage is between $13/hr and $17/hr. At full-staffing, personnel will cost an estimated $1.1M annually. Total wages as a percentage of sales is approximately 24% of sales, and with benefits factored in, full personnel costs are approximately 31% of overall sales. Sales per employee is an estimated $97,435.

10-Year Projected Sales Growth and Sales Per Square Foot (Retail) Sales Year

Projected Sales in USD

Projected Growth Rate

Projected Sales/ SF

Delta from Target Sales/SF

3,473,812

213.67

(236.33)

4,421,267

27%

271.94

(178.06)

5,084,457

15%

312.74

(137.26)

5,847,125

15%

359.65

(90.35)

6,548,780

12%

402.80

(47.20)

7,203,658

10%

443.08

(6.92)

7,779,951

478.53

28.53

8,246,748

507.24

57.24

8,576,618

527.53

77.53

8,833,916

543.36

93.36

10-Year Profit & Loss The table above shows the projected profit and loss for the first 10-year period of grocery store operations. The grocery store is projected to lose money through year 7, then reaching a break even point mid-year 8, and posting a net profit moving forward. However, net income/profit includes interest expenses and depreciation on equipment and the building, which have a 7-year and 15-year depreciation schedule respectfully. When backing out interest and depreciation in order to calculate Earning Before Interest, Taxes, Depreciation and Amortization (EBITDA), we see that the grocery store shows break-even much sooner — at the end of year 3. EBITDA is a commonly used metric to compare businesses side-by-side as it provides a better understanding of company’s profitability of the operating business only, thus before any effects of indebtedness and costs to maintain its asset base. 10-Year Cash Flow Projections Assuming the grocery store secures working capital in the amount of $788,044, we can project that the grocery store will have enough cash to navigate the first three years of operational loss. At the end of year 3, the store ends with barely over $50,000 in cash; by year 10, cash reserves are projected to be at $4.4M. A fully detailed 10-year P&L is provided in the accompanying Financial Statements. 09

FINANCIAL S

Grant Funding Sources & Uses Name of Funder

Amount in USD Uses

Duration

USDA Community Food Project Competitive Grant

354,528

Grocery Store and Food Entrepreneur Incubator

9/1/21 - 8/31/24

USDA Rural Business Development Grant

297,000

Pre-development for the Grocery Store

6/1/21 - 5/31/22

USDA Local Food Promotion Program

Development of Native Food 198,112 Business, Hiring of a ValueChain Coordinator

Harris Block Foundation Food Access

25,000

Native Food Sovereignty Projects

6/9/21 - 6/8/22

Blueprint to End Hunger Emergency Assistance Grants

15,500

Emergency food assistance, local supply-chain development

3/1/21 - 12/31/21

Gates Family Foundation

15,000

Pre-development for the Grocery Store

6/9/21 - 6/8/22

TOTAL

$905,140

Fundraising Fundraising is the biggest variable in the timeline for constructing the grocery store. Initial conversations in 2020, discussed utilizing current Federal funding towards the grocery store — estimated to cost between $5M and $7M — leaving approximately a $4M fundraising gap. However, conversations with UMUT leaders in 2021, after the scope of work was signed, indicated that 100% of the funds needed to be raised. As the size of the store and associated programming increased throughout the pre-development phase, the price tag for the full project increased from an estimated $7M to $13M. The increased cost, plus the Tribe’s desire to have 100% of funding raised through grants, has moved the target opening date of the store of 2022 to 2023/2024. A quicker path would be to explore either a Tribal-bond to raise money, or to utilize a bridge loan or construction loan, which can be paid off in the future with grant funding. During the pre-development phase, $905,311 was raised — achieving an 82% funded success rate. This funding covered all of the pre-development design and site civil feasibility work, along with the business plan and financial development. Additionally, we secured grant funding for program activation and other activities necessary to build out and support a Native and regional food ecosystem which will be imperative for the success of the future grocery store. Fundraising for Phase 3 - Construction and Operation - has begun in 2022 following the adoption of the business plan and financial pro-forma by Tribal Council.

9/30/21 - 9/29/23

FINANCIAL S

Well-Being

where all communities begin - in agriculture. Through our family experience eating our grandmother's cooking or celebrating a special occassion gathered around the dinner table that food has so much power to bring us together. Growing a garden can transform more than just the landscape. We believe that if we can change the food of a community we can affect the health and the well-being of an entire community. Here, we feature two chefs, Crystal Wahpepah and M. Karlos Baca, whose missions can be inspirational for the Ute Mountain Ute Tribe, not only for this current generation but for many generations to come. They offer a glimpse into redefining the Indigenous cuisine, reworking recipes and cooking techniques yet honoring their Native origins. OUR C A P I TA L C A MPA IG N B E G IN S

https://wahpepahskitchen.com/

W E L L- B E I N G

ways people eat and to see the impact diet has on lifestyle is not something most Indigenous Peoples are exposed to. Instead we accept, grow accustomed to, and become dependent on a diet that does not entirely benefit us. The exposure to more beneficial diets opens the door to a whole new world and endless possibilities. Crystal Wahpepah is an enrolled member of the Kickapoo nation of Oklahoma. She was born and raised in Oakland, California, on Ohlone land, surrounded by a multi-tribal, tight-knit, urban Native community. Crystal’s objectives for Wahpepah’s Kitchen are threefold: (1) to acknowledge that we live on stolen land; and (2) how that acknowledgement connects to the reclamation of Native food ways (food sovereignty); as well as (3) to educate communities and organizations on the health benefits of Native food ways using the knowledge passed onto her. Crystal values deeply the reciprocal practices of mindfully choosing Indigenous food sources with which she creates her cuisine. Her ingredients come from people and lands to which she is connected and has a relationship. She views her business as a portal to food sovereignty and a reclamation of ancestral knowledge in Native and Indigenous communities. Crystal has plans for herself and her community that give voice and claim ground for an ethical and sustainable way to nourish ourselves on this planet. THE ABILIT Y TO EXPERIENCE THE MANY DIFFERENT

W E L L- B E I N G

Regaining control over what we put into our bodies is a critical and defining link between who we once were and who we wish to become. What has been made readily available to us over many past decades has had a negative impact on our minds, bodies and spirits and, therefore, tribally controlled foodways are a necessity, not a privilege.

is the experience and research done by M. Karlos Baca (Dinè/Nuchu), an Indigenous foods activist from the Southern Ute Nation. He is the founder of Taste of Native Cuisine, which was created alongside the Southern Ute Cultural Center and Museum to promote traditional Indigenous Foodways in the community, although it has grown over the last decade into work with Tribal Nations across the country, a co-founder of the I-Collective, an Indigenous Food Sovereignty group with members spanning over 20 tribes from Oaxaca to 1ST Nations, and are founder of 4TH World Farm, focused on pre-colonial foods and agricultural systems of the high desert region of the southwest.. ESSENTIAL TO OUR MISSION

W E L L- B E I N G