Our History

The catalyst: A need for fuel

 

In March, 2002 a notice appeared in the window of the High Street petrol station announcing that it would be closing in ten days time. Seven local people decided to do something positive about it and formed a company called the Yackandandah Community Development Company Pty Ltd (YCDCo).

YCDCo’s initial goal was to secure the future supply of fuel in Yackandandah. Supply of fuel was regarded as an essential service that was crucial to retain in the town . Initially, this involved taking over the operation of the existing petrol outlet at 12 High Street to ensure continuity of a fuel supply to the township while a longer term solution was developed.

A voice for the community

 

Having established a company, the directors of YCDCo formed the view that the fuel station issue may be the ‘thin end of the wedge’, that similar issues requiring a community led response may emerge in future. We therefore decided to establish the company on a solid commercial basis but with a community focus. By being commercially independent we could be self-sustaining. We are locally controlled, not beholden to politics, and not reliant on grants, subsidies or donations.

Our vision for YCDCo was to become a strong, independent ‘voice’ for the broader Yackandandah community. We are focussed on both general community wellbeing, as well as the economic interests of the Yackandandah community and surrounding areas.

Indigo Shire Council also plays an important role in supporting local communities but may be limited by legal, political and resource constraints. The rationale for the existence of an organization like YCDCo is that the community has the ability to respond to issues and challenges which impact its well-being. Being able to respond depends on collective economic power and resources in an organization which has only the town’s interests at heart.

The vision

 

Therefore, the initial goals of YCDCo were as follows:

  1. To undertake projects and initiatives which will economically and socially and culturally benefit the community of Yackandandah and its surrounding areas;

  2. To operate YCDCo on a commercially sustainable basis and generate profits to shareholders in the long term;

  3. To extend the ownership base of YCDCo so that it has a broad-based community ownership structure;

  4. To return 50% of any future profits the company generates (e.g. after operating expenses) back to community causes and projects (to be defined); and,

  5. To return the remaining 50% of any profits to YCDCo shareholders.

Establishment of a community owned-structure

 

As of 5th December 2002, YCDCo Ltd became an ‘unlisted public company’. What this meant is that we could have as many shareholders as necessary to raise public funds through the issues of shares, subject to the Corporations Act.(At the time rules governing cooperative structures limited shareholders to 20) Our shares are not traded on a stock exchange (as with listed public companies) but can be sold or purchased via Board approval. In order to raise the funds necessary to build a modern fuel outlet meeting current environmental and industry standards, an Offer Information Statement was issued. The process was launched in the Yackandandah Public Hall with between 200 and 300 people attending. Applications for shares closed on 21st May, 2003. The share issue was a resounding success:

  • Total Share Applications Received - 473

  • Number of Applicants - 649

  • Average share package value - $871

  • Largest individual package value - $10,000

  • OIS target - $382,000

  • Total funds committed (applications) - $412,100

  • Subscription rate (%) - 107.9%

The store opening

 

Using the capital raised, together with a State Government contribution, made through the Indigo Shire to develop the Industrial Estate on which the new Yackandandah Station was to be located, the new service station was built, opening for trade on 5th December, 2003.

The rural supplies/hardware business opened for trade at Yackandandah Station on 18th February 2005. Despite some early glitches in getting the rural supplies/hardware/produce businesses up and running, the Board remains confident that together with fuel, the combined businesses will underpin the long-term profitability of YCDCo.