UPDATED: Newbury ReStore Future in Question

May 11, 2020 by Ann Wishart

This article has been updated with a follow up response from Lake-Geauga Habitat for Humanity Executive Director Jim Thie, as well as a series of questions and answers.

Lake-Geauga Habitat for Humanity Inc. won’t be reopening its Newbury Township ReStore soon and the nonprofit organization might close it for good, said LGHH Executive Director Jim Thie in May 9 email to customers.

Thie explained why he is considering selling the property at 12180 Kinsman Road, where the ReStore has been located since 2010, according to its website.

“The impacts of COVID-19 … will be felt for years – if not decades. Because of this, and because I have been entrusted with the responsibility to continue to provide affordable housing to Lake and Geauga citizens in need, I need to adjust our business plan,” he wrote. “The Geauga ReStore will not reopen for the foreseeable future.”

Habitat stores must raise money so the organization can purchase materials and cover other costs to provide homes for area families.

“Our ReStores exist to help provide funding to build affordable housing,” Thie said. “Please know that there are many, many, many other secondary positive benefits, but this is the primary purpose. Therefore, it is my expectation for ReStores to provide substantial profits.

“While the Geauga ReStore had challenges going into the pandemic, the economic impact from this event has not only magnified the original challenges, but introduced new, difficult concerns. This created question marks around all aspects of successfully operating this ReStore.”

Thie said he will be exploring the possibility of selling the property “to further understand the full set of options available. These actions are intended to provide clarity in the decisions that are ahead of us.”

In a phone interview May 11, Thie said the Geauga ReStore has about 35 volunteers and a few employees who run the store and drive the trucks to pick up items to be sold.

“In its heyday, there were almost 70 volunteers there,” he said.

Some of those who remain have contacted him saying they understand the necessity of the changes, but they are sad, Thie said.

“Decisions like this cut me to the core. COVID has taken everything off the table,” he said, adding the annual April fundraising gala had to be cancelled, which put a hole in plans.

However, Thie said the houses already scheduled will be completed.

The LGHH administrative staff has been located in Chardon, but will be moving to the Newbury site in the fall, remaining a part of the Geauga business community, he said.

The ReStore sits on 4.48 acres next door to the new Dollar General store west of the intersection of Kinsman and Ravenna roads, according to the Geauga County Auditor’s Office. Originally open Thursdays, Fridays and Saturdays, it was open only Fridays and Saturdays before the COVID-19 pandemic.

It carried a wide variety of household items, furniture and building materials donated from area businesses and residents.

Chris Yaecker, a member of the Newbury Township Board of Zoning Appeals, said he was surprised by the announcement.

“That’s a shame. The place always seems to be rocking,” he said in a phone interview May 11. “It seemed to draw a lot of people. They’d come in to find stuff for remodeling.”

Yaecker said a friend he took to the ReStore recently purchased several antiques and was pleased with what he found.

He said he wishes he could continue to take his unwanted items to the site.

Thie said he hopes donations from the area will continue and residents will shop at the Eastlake ReStore at 34225 Vine Street, where profitability has trended upward over the last two years, to help support LGHH’s mission.

In his email, Thie added he would “re-introduce the Geauga ReStore as soon as reasonably possible. We will continue to monitor the Lake ReStore recovery process to help us decide what the next best step will be.”

The building of new homes for economically disadvantaged families will restart when possible, he said.

“We will continue construction activities as restrictions are lifted and funding allows,” Thie concluded his email.

He said he is passionate about LGHH’s mission and the measures he and the board have taken will, when the crisis is past, support that.

“We have to make sure we are here for the long haul,” Thie said.

Follow Up Response From Thie and a Q&A: 

“As seen in our recent communications, Lake-Geauga Habitat for Humanity has felt the impact of the COVID-19 crisis. Our focus has been and remains to provide affordable housing to Lake and Geauga citizens.

“We realize that our communications may have caused some confusion and concerns. For that, we apologize. The purpose of this communication is to further answer questions that have surfaced. The decisions are complex, difficult and sad, but they are necessary in order to continue to serve the families in need in Lake and Geauga counties.

“Our hope is that you will appreciate the complexity of the decisions and work alongside us, in action and prayer, for a positive outcome.”

Why open one store at a time?

Response: We can only afford to start up one store at this time. Once we are generating revenue, we will open other parts of our business such as finishing the current homes for the families waiting.

Why would Geauga residents continue to donate if items are going to the Lake ReStore?

Response: We are one organization with one mission that serves both Lake and Geauga families. ReStores are meant to generate profits towards building affordable housing. We are pursuing the most viable path of returning to the “new normal”.

Geauga ReStore makes money. Why would you not open it?

Response: Yes, Geauga ReStore makes money. However, we have seen a sharp decline in Geauga’s profit margin and revenue over the past year and a decline over several years prior.

The Geauga ReStore carries the Lake ReStore / Lake is unprofitable

Response: Geauga did carry Lake’s losses when the Lake ReStore first opened. However, the losses for the start-up were in line with guidelines gathered from over 900 ReStores nationwide. Lake’s profit margin has steadily increased while Geauga has experienced a sharp decline. Lake’s profitability was projected to be five times higher than Geauga this fiscal year. Additionally, Lake’s revenue was projected to be 1.8 times higher than Geauga’s this year.

Material Donations Were Diverted From Geauga To Lake

Response: This is incorrect. Typically, the operating rule was that donations made in Geauga, stayed in Geauga; donations made in Lake, stayed in Lake. There were minimal exceptions to this rule due to donation demand and to keep our pickups timely.

Why sell the Geauga store?

Response: This is an option we are exploring– our cash reserves have been impacted by the COVID-19. Again, our first priority is to our families and we need to finish their homes. Especially now, the crisis has created great hardship for them as well.

Why would you move the administrative offices to Geauga if you’re going to sell it?

Response: Simply put, the Chardon office is an expense that we can eliminate. Yes, we are aware that if we were to sell the Geauga location we would have to move again. These are complex situations that don’t always have a linear path connecting the facts.

Why not change the name to just Lake Habitat for Humanity

Response: The mission of Habitat is to build houses. ReStores are a means to that end. We have current projects in both counties and will continue to serve both counties with affordable housing solutions.

Is there a way to do online sales?

Response: We believe there are many creative ideas that we can pursue to form the ReStore of the future. Right now, the focus is getting a ReStore operational. From there, other decisions can be made.