Healthy Food Financing Policies
From Neighborhood to Nation
Community Food Security Conference
May 20, 2011
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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
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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
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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.comIt includes the locations of areas that are inadequately
served by supermarkets for the entire nation.
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
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 affected6.2 million (25%) of these people are under age 183.2 million (13%) are over age 65
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.
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
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
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Supermarkets
Grocery stores
Farmers markets
Other fresh food retailers
For-profit businesses
Cooperatives
Non-profit organizations
Eligible Projects
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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
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
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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
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
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
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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
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
Click to edit Master title styleContact 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 19103www.trfund.com
Contact:Patricia L .Smith
Senior Policy Advisor215-574-5898