After exploring its options while undergoing foreclosure proceedings in court, the nonprofit CommunityWorx is confident it will be able to fulfill its financial obligations after making a deal to sell its West Main Street campus — while also remaining in the Carrboro buildings.
The latest hearing for CommunityWorx — which runs the thrift shop and co-working space at 117 and 125 West Main Street — took place on October 8, where the organization alerted the Clerk of Court to having signed and executed a purchase for sale agreement with a new partner, according to President and CEO Barbara Jessie-Black.
The buyer is not being publicly named yet, but is a nonprofit entity, Jessie-Black confirmed to Chapelboro. She also described it as the “best-case scenario” for CommunityWorx and its goals.
“We always wanted a partnership with someone or entity that’s aligned with our values [and] our work with marginalized communities,” Jessie-Black said. “We ended up with a nonprofit partner who is interested in this opportunity not just from an investment perspective as it relates to property, but also understanding our vision and our work as an organization over the last 70+ years. They wanted to see this work continue and bring value to the community [along with] the partners we have.”
In June, CommunityWorx shared with its YouthWorx on Main tenants and press that the bank began foreclosure on the property, with the nonprofit citing lagging business caused by and after the COVID-19 pandemic’s disruption to in-person retail. The organization had previously put the building up for sale, but had not landed on a buyer that would satisfy CommunityWorx’s hope to maintain operations as a tenant — and, similarly, fielded offers over the summer around the start of the foreclosure process.
Jessie-Black said the foreclosure was not “a complete surprise” because of the financial hit from the height of the pandemic, and said staff were generally aware of the challenges ahead. She added that with history as long as the organization, it drew upon its experience to figure out how to best adjust. In the Great Recession of the late 2000s, the thrift shop’s board decided to explore expanding its operations to include other elements beyond simply retail in order to diversify how the nonprofit made money. This time, Jessie-Black said, it included closing the Chapel Hill location in Village Plaza and starting an online shop. And now, that ongoing pivot includes becoming a tenant instead of an owner.
“Much like after the pandemic, it’s a new normal,” Jessie-Black added later. “We’re still wearing masks, but people are still shopping. We will have a new owner of this campus, but we will still function in the way that we have functioned.”
According to the president, the organization is still operating like normal in the meantime and is planning events, like a fundraiser and information session on Nov. 19 hosted by its board of directors. Jessie-Black said the nonprofit was able to and has continued to employ its staff, offering stability at a time of instability during COVID-19. The foreclosure proceedings also helped draw out support from the public and, ultimately, led to the partnership with the future buyer.
“I would argue that although this has been a really challenging time, there are so many bright spots,” she said. “And as we continue to move through this situation, even this is a bright spot — because we do see a way forward and we know that we’ll come out at the end continuing to do the good work that the organization has done for so many years.”
“The tenor of the word ‘foreclosure’ — we all bristle when we hear it,” Jessie-Black added. “It conjures up all kinds of things that none of us want to deal with. But it’s also had an effect on the community that… we just didn’t realize [people] were connected to us in that way.”
According to Jessie-Black, the next court hearing on the matter is set for early December – which is when the agreement to buy the West Main Street parcel could be formalized through the court’s side of foreclosure proceedings.
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