Healthy Food Financing Policies

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Healthy Food Financing Policies

  1. 1. Healthy Food Financing Policies From Neighborhood to Nation Community Food Security Conference May 20, 2011
  2. 2. Click to edit Master title style As of 12.31.10 Real Estate Development Policy & Information Services Business Lines Lending and Investing $1 billion in cumulative investments and loans throughout the mid- Atlantic Currently manage $668 million in capital, with more than 800 investors PolicyMap The Reinvestment Fund
  3. 3. Click to edit Master title style 19,909 homes 30,040 charter school seats 47,340 permanent & construction jobs 8.3 million sq. ft. Commercial Space 3 million MWh clean energy As of 12/31/10 The Reinvestment Fund
  4. 4. Click to edit Master title style TRF Policy Solutions is a leader in research on issues related to improving access to healthier foods in distressed communities with focus on the economics the supermarket industry and local food systems. The Reinvestment Fund TRF PolicyMap national online data analysis and mapping tool that is available for all internet users at www.policymap.com It includes the locations of areas that are inadequately served by supermarkets for the entire nation.
  5. 5. Click to edit Master title styleUnderstanding “Food Deserts” Distance measurements: USDA: One / ten miles http://www.ers.usda.gov/FoodAtlas/about.htm Other measurements TRF: •Distance traveled in well-served markets •Population density •Car ownership •Retail leakage http://www.trfund.com/TRF-LAA-widget.html
  6. 6. Click to edit Master title styleWhat Our Data Tells Us • 24.8 million people (8.1% of the population) live in low access areas • Households earning < $35,000 annually are 1.5X more likely to live in a low access area compared to those earning > than $75,000 • Children and the elderly are disproportionately affected 6.2 million (25%) of these people are under age 18 3.2 million (13%) are over age 65
  7. 7. Click to edit Master title stylePA Fresh Food Financing Initiative A public/private partnership to increase access to fresh foods in underserved communities across Pennsylvania.
  8. 8. Click to edit Master title styleStakeholder Engagement Children’s Advocates Economic Development Leaders Business and Civic Leaders Government Officials Supermarket Industry Leaders Public Health Leaders Supermarket Campaign
  9. 9. Click to edit Master title styleBarriers and Challenges Urban Areas: • Site assembly • Higher start-up costs • Security • Market structure • Perception • Workforce / Turnover Towns & Rural Areas • Access to credit suitable for small businesses • Competition from big box operators • Retiring operators • Limited supplier choice • Minimum purchase requirements from wholesalers
  10. 10. Click to edit Master title style Supermarkets Grocery stores Farmers markets Other fresh food retailers For-profit businesses Cooperatives Non-profit organizations Eligible Projects
  11. 11. Click to edit Master title style Four major required components: • Viable business enterprise- no ongoing subsidies • Located in underserved area • Located in low income neighborhood • Provide access to fresh, healthy food Project Eligibility Criteria
  12. 12. Click to edit Master title styleEligible Grant & Loan Uses • Predevelopment & start-up costs • Land acquisition • Leasehold improvements & equipment • Construction & permanent financing • Energy efficiency and conservation measures
  13. 13. Click to edit Master title style FFFI Metrics • Total Projects: 88 • Total Grants: $12.1M • Total Loans: $73.2 M • Est. Project costs: $194 M • Est. Jobs: 5,023 • Est. Retail Space: 1.6M • Improved access: 500,000 Fresh Grocer-Progress Plaza Accomplishments As of 6.30.10
  14. 14. Click to edit Master title stylePortfolio Characteristics • Majority of operators participating in FFFI own more than one store • Store size range from 900 to 70,000 sq. ft • 1/3 of the projects financed are located in Philadelphia and 2/3 are in small cities, towns and rural areas • Financed construction of new stores, equipment purchases and acquisition of existing stores
  15. 15. Click to edit Master title styleFFFI Success Drivers • Broad civic, public & private sector engagement • A champion/spokesperson • Highly-skilled CDFI & food access organization with market knowledge • Broad range of financial products, including grants • Resources to market program & provide TA
  16. 16. Click to edit Master title style Urban/Rural Connections • Economic impact of urban supermarkets on local farmers & specialty crops production • Federal and State funding opportunities & impediments Food System Infrastructure • Capital needs and gaps • Access to credit • Capacities FFFI & Local Food Systems
  17. 17. Click to edit Master title styleTriple Bottom Line Developing Quality Food Markets in Underserved Communities Health Income Economic Stimulus •Promotes a healthy diet which can contribute to reduced rates of diabetes & obesity •Revitalizes neighborhoods •Leverages private capital •Increases local taxes •Creates jobs with career paths •Lowers the cost of food
  18. 18. Click to edit Master title style Contact Information TRF creates wealth and opportunity for low-wealth people and places through the promotion of socially and environmentally responsible development. The Reinvestment Fund 1700 Market Street, 19th Floor Philadelphia, PA 19103 www.trfund.com Contact: Patricia L .Smith Senior Policy Advisor 215-574-5898 patricia.smith@trfund.com

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