Posts Tagged ‘fresh food financing’

Fresh-Food Financing in the NYT!

Wednesday, June 17th, 2009

Excellent piece today in the Times’ business section about the Pennsylvania Fresh Food Financing Initiative…and the effort to replicate it in New York.

 The ShopRite owner, Jeffrey Brown, a fourth-generation grocer, said it would not have made economic sense to open the $14.5 million store, which is at 52nd Street and Parkside Avenue, if not for a Pennsylvania grant and revolving-loan program aimed at improving access to nutritious food in places with few, if any, good stores to choose from.

“In neighborhoods like this, people have less money and the first thing they cut out are all the high-margin items,” said Mr. Brown, citing prepared foods and fancy breads as examples. Costs, like extra security, tend to be higher in poorer neighborhoods, he said.

Through the Pennsylvania Fresh Food Financing Initiative, Mr. Brown, who owns 10 other supermarkets in the Philadelphia area, got a $1 million grant and $7 million in federal New Markets tax credits, which are aimed at stimulating investment in low-income communities. Several customers said the prices at Mr. Brown’s store were fairer than what they had been used to.

Inspired by Pennsylvania’s example, New York City officials have developed an initiative of their own to bring new neighborhood markets selling fresh food to areas of the city where they say the need is greatest.

PolicyLink, The Reinvestment Fund and The Food Trust are also working to bring this idea national. Check out a great two-page primer on the federal possibilities here.