Community Bond FAQs

What is a Community Bond?

A Community Bond can only be offered by non-profits or charities. A Community Bond is an interest-bearing loan that allows participants to align their investments with their values, while enjoying a stable return. The bond is secured against the value of the asset (in our case, a building).

How will the Community Bond money be used?

10 Carden’s property purchase and renovation will be partially financed through Community Bonds. Achieving full accessibility through the addition of an elevator and universal and accessible bathrooms are our main priorities.

How does 10 Carden generate funds to repay my investment?

Through the main revenue streams of permanent co-working tenancy and event space rentals, the 10 Carden shared space model has the capacity to generate a surplus each year. This surplus will be put into reserve to repay the community bonds. The more the space is used, the more financially stable the organization becomes. Current pre-launch tenancy is at approximately 80%, with new coworking tenants and members joining each week.

Can I turn my investment or my interest payment into a donation?

Yes, although 10 Carden does not have charitable status and cannot issue a tax receipt.

Is the investment secure?

Your investment is secured through a formal charge on title against 42 Carden Street (the Acker’s Furniture building). Community Bonds Series A/B/C/D are registered as a unit each at the same level, and are subordinate only to the first mortgage of approximately 1.9M. Series E and F are a subordinate class to Series A/B/C/D. At present, the post-renovation appraised value of the building is $3,245,000. Total combined financing will be just below the current appraised value. This means your investment is relatively secure – but it is not guaranteed.

What happens if the project fails?

10 Carden has a history of grassroots engagement and social entrepreneurship and we are confident that this project will be a success. However, should there be unforseen circumstances that cause the project to fail, the renovated building will be sold and proceeds from that sale will be transferred to the lenders, with the first mortgage being paid first, and the Community Bonds next, followed by payments to others lenders.

What kind of impact will this investment have?

10C will provide an inclusive and accessible space in downtown Guelph. 10C will continue to support local social innovators in collaboration. Together, groups and individuals will build urban integration, resilience and establish the scaffolding for Guelph residents to work on complex issues together.

In total, over 15,000 sq feet of fully accessible community event space and collaborative workspace will be activated in the heart of downtown Guelph. Thousands of people will visit the location each year for events, workspace and connection.

Current project collaborators include these partners and more to come in 2016/17:

  • Chalmers Community Services Centre
  • University of Guelph, College of Applied and Human Sciences, Community Engaged Scholarship Institute
  • University of Guelph, Student Life
  • Guelph Arts Council
  • Guelph Neighbourhood Support Coalition
  • Local Immigration Partnership
  • Taylor Newberry Consulting
  • Wellington Water Watchers
  • Transformative Arts, Guelph
  • Main Power Corp
  • Guelph Dance
  • and more including all of our existing members, volunteers and event-space partners…

When do I pay for the Community Bond?

We are currently transacting bonds throughout 2017. They will be available until we reach capacity in the program.

When will I get my money back?

For Series A and B bonds, principal and accrued interest will be due and payable on the relevant Maturity Date – 2 and 3 years,respectively, from the date of issue. For Series C and D bonds, interest shall be calculated semi-annually on the first day of October and on the first day of April each year and interest paid within 30 days of those dates. Series C and D bonds reach maturity at 5 years from date of issue.

For Series E interest shall be calculated semi-annually on the first day of June and on the first day of December each year and interest paid within 30 days of those dates. Series E bonds reach maturity at 5 years from date of issue.

For Series F bonds, principal and accrued interest will be due and payable on the relevant Maturity Date – 5 years from the date of issue.

Am I able to re-invest my money with 10 Carden once the term is over?

Yes, this is likely. As we near the end of the bond terms, we will communicate with bondholders regarding any possible renewable opportunities. Because interest rates will be different then, we cannot provide any details of a possible offering now.

Can I sell/trade/transfer my Community Bond?

Since Community Bonds are not part of the traditional bond market, it is not possible to sell, trade or transfer them. Your money will be invested for the full duration of the term. Under extreme circumstances of serious illness or other personal situations, 10 Carden will consider a reasonable written request to redeem early.

Are Community Bonds RRSP eligible?

While mechanisms exist to enable Community Bonds to be RRSP eligible, they are highly manual (and costly) for financial institutions. As such, we are not aware of a financial institution that can offer a purchase of the Community Bond within your RRSP account. Unless this changes, we are not able to offer RRSP eligibility for our 10 Carden Community Bonds.

What if the investment level is too high for me?

10 Carden has set the minimum investment level on the Series E bond at $1,000 to enable a wider range of investors to learn more about this model. Each bond has a legal transactional cost, and we have carefully calculated this into our offering.

Why is 10 Carden offering community bonds?

We are passionate about the co-creation of community, and believe that community bonds offer a win-win mechanism to link individual investors with enterprising not-for-profit organizations. As 10 Carden’s model and mission is based on entrepreneurship, self-reliance and mutual benefit, the Community Bond Investment is an ideal financial vehicle to spark large scale community change.

One of 10 Carden’s goals is that this project will also provide a model for other future projects within Guelph and in mid-sized cities within Ontario. We believe that community bonds will play an increasing role in community development in the future.