Healthy Food Financing Policies

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

[email protected]