economic development and redevelopment · 4 economic development and redevelopment communities have...

A toolkit for building healthy, vibrant communities

Economic Development and Redevelopment

Economic Development and Redevelopment

Atoolkitforbuildinghealthy,vibrantcommunities

II EconomicDevelopmentandRedevelopment

WrittenbyLisaM.Feldstein,RickJacobus,andHannahBurtonLaurison

IllustrationsbyJanetCleland

CoverandgraphicdesignbyKarenParry|BlackGraphics

©2007CaliforniaDepartmentofHealthServices

Thispublicationisprovidedforgeneralinformationonlyandisnotofferedorintendedaslegaladvice.

Readersshouldseektheadviceofanattorneywhenconfrontedwithlegalissues,andattorneysshould

performanindependentevaluationoftheissuesraisedinthesematerials.

FundedbytheCaliforniaDepartmentofHealthServices,throughtheCalifornia Nutrition Network for Healthy,

Active Families.

III

Thistoolkitcouldnothavebeencompletedwithouttheassistanceofmany

people,afewofwhomarelistedbelow.ThankstotheCancerPreventionand

NutritionSectionoftheCaliforniaStateDepartmentofHealthServicesfor

generouslyunderwritingthispublication.

ThanksalsotoMariceAshe,MelissaGuajardo,JeremyHofer,ThomasMills,

Robert“Perl”Perlmutter,ValerieQuinn,andCarrieSpectorfortheircareful

readingandthoughtfulcomments.

ThankstoMariceAshe,HeatherWooten,andHeatherKinsmanforbeing

terrificresources.ThanksalsotoHeatherWootenandEduardoRochafor

theirresearchassistance.ThankstoJanetCleland,KarenParry,andCarrie

Spectorforillustrating,designing,kibitzing,andproducingthisresource.

Finally,muchgratitudetoMariceAshe,SueFoerster,MatthewMarsom,

andValerieQuinn,whosevision,foresight,andadvocacymadethistoolkit

possible.

Acknowledgements

IV EconomicDevelopmentandRedevelopment

V V

Section I

1 IntroductiontothisToolkit 1

2 TheConnectionBetweenEconomicDevelopmentandHealth 3

3 WhyDoSoManyCommunitiesLackAccesstoHealthyFood? 7

SomeHistory 7

CurrentChallenges 8

4 DevelopingaStrategy 15

SupermarketDevelopment 15

Profile:PartnersThroughFood(Rochester,NY) 17

SmallStoreDevelopment 19

Profile:CityProduce(SanFrancisco,CA) 21

CornerStoreImprovement 23

MobileMarkets 25

Profile:People’sGrocery(Oakland,CA) 27

Farmers’Markets 29

Profile:DelPasoHeightsCommunityFarmers’Market(Sacramento,CA) 31

Section II

5 WhatIsCommunityEconomicDevelopment? 35

RebuildingtheMarketforHealthyFood 36

Contents

VI EconomicDevelopmentandRedevelopment

6 TypesofCommunityEconomicDevelopmentPrograms 39

Firm-BasedStrategies 40

Place-BasedStrategies 41

People-BasedStrategies 42

7 EconomicDevelopmentInstitutions 45

LocalGovernmentEconomicDevelopmentAgencies 45

SmallBusinessAssistanceAgencies 45

EconomicDevelopmentCorporations 46

CommunityDevelopmentCorporations 46

JobTrainingandPlacementAgencies 46

BusinessOrganizations 47

8 FinancingSources 49

LocalGovernment 49

StateGovernment 50

FederalGovernment 51

CommunityDevelopmentFinancialInstitutions 52

PrivateFoundations 52

PrivateBanks 53

Section III

9 OverviewofRedevelopmentLaw 55

WhatIsRedevelopment? 55

HowDidWeGetHere?ABriefHistoryofRedevelopmentLawinCalifornia 56

10 LegalRequirementsforRedevelopment 59

WhatAretheLegalRequirementsforaRedevelopmentAgency? 59

WhatCanaRedevelopmentAgencyDo? 60

WhatAretheLegalRequirementsforaRedevelopmentPlan? 61

WhatAretheLegalRequirementsforEstablishingaRedevelopmentProjectArea? 63

WhatAretheLegalRequirementsforImplementingaRedevelopmentPlan? 65

VII

11 IntroductiontoTaxIncrementFinancing 67

WhatIsTaxIncrementFinancing? 67

Profile:CityWithoutaSupermarket(EastPaloAlto,CA) 69

HowDoesTaxIncrementFinancingWork?AHypotheticalScenario 71

12 IntroductiontoEminentDomain 73

WhatIsEminentDomain? 73

TheChangingLandscape 74

Profile:RedevelopingaDowntownDistrict(Richmond,CA) 76

13 SupportforEconomicDevelopmentProjects 79

EminentDomain 79

LandAccess 79

Grants 80

Loans 81

InfrastructureImprovements 82

OtherIncentives 82

14 FinalPoints 85

Section IV

15 BuildingCommunitySupport 87

IdentifyingInterestedParties 87

PotentialMotivators 90

16 DataCollection 93

TheProblemataStateandNationalLevel 94

LocalHealthConcerns 94

LocalFoodAccess 95

EvaluatingEconomicOpportunities 101

RetailMarketPlaceProfile 104

HiringaMarketResearchFirm 105

ConsumerSurveys 106

VIII EconomicDevelopmentandRedevelopment

17 ModelRedevelopmentResolution 107

18 CommunicatingwithPublicOfficials 109

CommunicatingwithYourElected/AppointedOfficialsandPublicAgencyStaff 109

Section V

Appendix1SampleMarketResearchConsultantRequestforProposals 113

Appendix2RedevelopmentAgencyModelResolution 117

Appendix3Resources 119

IntroductiontothisToolkit 1

Thistoolkitisthesecondinaseriesexploringwaysforadvocatestocreate

healthiercommunitiesbytransformingthebuiltenvironment.Thefirsttoolkit

focusesontheuseofgeneralplansandzoning1–wheresuccessoftenmeans

newlanguageinageneralplanorarevisedzoningdesignationthatallows

communitygardens,forexample.Butthosetypesofchangesinlocalordi-

nancesmaynottranslatetochangesonthegroundformanyyears,ifatall.

Inordertotakethenextsteptowardimprovedfoodaccessinlow-income

communities,youmustlookatthelocaleconomiclandscapeandconsider

howtoolsforenhancingthatlandscapecanbeapplied.Youmustbeginto

considereconomicdevelopmentandredevelopment.

Thistoolkitisdesignedfornutritionandotherpublichealthadvocateswho

needadditionalresources–beyondzoningandgeneralplanrevisions–to

improvefoodaccessinlow-incomeneighborhoods.Itprovidesafundamen-

tal,introductoryunderstandingoftheeconomicdevelopmentandredevelop-

menttoolsavailable,andexploreswaystoeffectivelyparticipateindecisions

abouttheiruse.Thesetoolsofferopportunitiesthatcouldincludeenhancing

theofferingsofretailoutletstoincludehealthierfoods,bringinginlocally

ownedbusinessesthatofferhealthyfoods,attractingfull-servicegrocery

stores,anddevelopingfarmers’marketsandcommunitygardens.

SectionIprovidesabasicintroductiontotheconnectionbetweeneconomic

developmentandhealth.Thissectionoffersanoverviewoftheconceptsof

economicdevelopmentandidentifieshoweconomicdevelopmentcanbe

usedasatooltoincreasehealthyfoodretailinginunderservedcommunities.

SectionIIdescribesavarietyofprogramsandresourcesthatsupport

economicdevelopment.Theseincludeprogramsadministeredatthefederal,

state,andlocallevel,aswellasnonprofitandotherprivateresources.

SectionIIIfocusesonCaliforniaredevelopment,whichisastate-defined

legalandfinancingstructureforrevitalizingblightedneighborhoods.This

sectionexplainsthelaw,includinghow,where,andunderwhatcircum-

stancesitcanbeapplied.Inadditiontolearningaboutredevelopment,you

willfindinformationabouthowtogetinvolvedinthecreationofredevelop-

mentareasaswellasparticipatingindecisionsaboutexistingareas.

1 Introduction to this Toolkit

SectionI

2 EconomicDevelopmentandRedevelopment

SectionIVdiscussesthetypesofdatayouwillneedtocollecttomakea

caseforchange,howbesttopresentthatdata,andhowtoidentifypartners

andbuildcoalitionsforsuccess.

SectionVincludessampledocumentsaswellasaresourceguideand

bibliographytohelpyoufindmoredetailedmaterialsonspecifictopics.

Thistoolkitismeanttobealivingdocument.Asfoodindustrytrendschange

andneweconomicdevelopmentresourcesbecomeavailable–andas

advocateslikeyouaresuccessfulinutilizingthesetoolstochangethefood

environmentinyourcommunities–thistoolkitwillgrowandchange.

Updatesandnewmaterialswillbepostedonourwebsite:

www.healthyplanning.org.Checkfrequentlyfornewideas!

1 L.Feldstein,General Plans and Zoning: A Toolkit on Land Use and Health,PublicHealthInstitute(2006).

TheConnectionBetweenEconomicDevelopmentandHealth 3

Obesity–causedbypoordietandphysicalinactivity–isarguablythe

leadingpublichealthchallengefacingCaliforniatoday.Leftunchecked,the

impactofincreasingobesityrateswillbedevastatinginbothpublichealth

andeconomicterms.Inadditiontotheincreasedindividualriskforheart

disease,stroke,type-2diabetes,andsomecancers,thecombinedannual

costsofobesity-relatedchronicdiseaseriskfactorsinCaliforniareach

$21.68billionayear,attributedtomedicalcare($10.16billion,ofwhich

$2.28billion,or22.44percent,isMediCalpaymentsforlow-incomepeople),

lostemployeeproductivity($11.2billion),andworkerscompensation

($338million).1

Multiplefactorshavebeenassociatedwiththerecentobesityepidemic,2

butthemarkedincreaseintheprevalenceofobesityappearstobeinlarge

partattributabletoenvironmentalconditionsthatimplicitlydiscourage

physicalactivitywhileencouragingtheconsumptionofgreaterquantities

ofenergy-dense,low-nutrientfoods.3Leadingenvironmentalriskfactorsfor

diet-relateddiseaseinclude:

4Lackofaccesstohealthyfoods:Publichealthresearchersdocumentthe

lackofaccesstohealthyfoodsasamajorcontributingfactortoobesity

andpooreating.AccordingtoarecentstudybytheUniversityofNorth

Carolina,themoresupermarketsaneighborhoodhas,themorefruitsand

vegetablesitsresidentseat.4TheFoodMarketingPolicyCenteratthe

UniversityofConnecticutfoundthatinmostcities,low-incomepeople–

especiallythosereceivingpublicassistance–tendtoliveinareasthatdo

nothavesupermarkets.5CaliforniaFoodPolicyAdvocatesnotes:

WhilepovertyisthemaincauseofmalnutritioninCalifornia,lack

ofaccesstonutritious,affordablefoodisalsoacriticalelement.

Theflightofsupermarketstothesuburbs,inadequatepublic

transportation,andapaucityofhealthyfoodsatcornerstores

areallfactorsthatcontributetolackofhealthyfoodaccessin

low-incomeneighborhoods.6

4Easyaccesstounhealthyfoods:Thecorollarytothelackofaccessto

healthyfoodsistheall-too-easyaccesstounhealthyfoods.Whilethis

problemistrueinallcommunitiesregardlessofincome,low-income

2 The Connection Between Economic Development

and Health

Phot

oby

LisaM.F

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communitieshavethefewestopportunitiesintheirneighborhoodsto

choosehealthyfoods.7Manylow-incomeneighborhoodsaresaturatedwith

smallcornerorconveniencestores,sellingfoodthatisgenerallyofpoor

qualityathighprices.8Researchhasimplicatedenvironmentalinfluences

onbodyweight(e.g.,numberandproximityoffastfoodrestaurants)asa

primarycontributortothedevelopmentoftheobesityepidemic.9

Atonelevelthiscanbeseenasalanduseproblem:thegeographiclocation

ofdifferenttypesoffoodoutletshasadirectimpactonpublichealth.It’s

truethatpermissivelanduseregulation,particularlyzoning,canmakeit

possiblefornutritiousfoodtobesoldinunderservedcommunitiesand

moredifficultforunhealthyfoodtobesold(seethefirstbookinthisseries,

General Plans and Zoning).Butnoamountoflandusecontrolcanforce

privatebusinessestolocateinagivenplaceorensurethattheywillbe

successfuliftheydo.

MostAmericansgettheirfoodfromprivatebusinesses,andtheunequal

foodaccessthatcontributestosomanyhealthproblemsisaresultofthe

choicesmadebythoseprivatebusinesses.Whilelandusetoolsareeffective

inpreventingcertainbusinessesfromlocatinginspecificlocations,attracting

businessesandinfluencinghowtheyoperaterequiresadifferentsetoftools,

oftencalledeconomic development.

Itmayseemreasonabletoexpectthatlanduseplannersandeconomic

developmentprofessionalswouldworkcloselytogethertooptimizedevelop-

mentinacommunity.Unfortunately,thatisnotalwaysthecase.Planners

mayenvisionwholecommunitiesthatmeettheneedsofresidentsandwill

planforabuiltenvironmentthatmeetsthosecriteria.Atthesametime,a

fewdoorsdown,theeconomicdevelopmentspecialistsareworkinghard

toensurethatthelocaleconomythrives.Thisoftenmeansworkinghardto

attractbusinesstothecommunitytomaximizejobsandtaxes–businesses

thatmaynotreflectthevisionofthelanduseplanners(orthevisionof

publichealthprofessionals,forthatmatter).

Overthepastfewyears,however,policymakershaveincreasinglycometo

realizethateconomicdevelopmentpolicyhasthepotentialtomakeaunique

andpowerfulcontributiontostimulatingthedevelopmentofhealthyfood

retailoptionsinunderservedcommunities.InPhiladelphia,forexample,the

citycouncilconvenedagroupofleadersfromthesupermarketindustry,city

government,andthepublichealthsectorwhocalledforgreaterpublicsector

involvementinfoodretailing.Therecommendationsincluded:

4TheCityshouldadoptfoodretailingasapriorityforcomprehensive

neighborhooddevelopment.

TheConnectionBetweenEconomicDevelopmentandHealth 5

4TheCityshouldemployinnovative,data-drivenmarketassessment

techniquestohighlightunmetmarketdemandinurbanneighborhoods.

4TheCityshouldidentifytargetedareasforsupermarketdevelopmentand

promotethemtorealestatedevelopersandthesupermarketindustry.

4TheCityshouldgiveprioritytoassemblinglandforsupermarket

development.

4TheCityshouldreduceregulatorybarrierstosupermarketinvestment.

4TheCityshouldmarkettheavailablepublicincentivestomaximizeimpact

onsupermarketsitelocationdecisions.

4CityandStateeconomicdevelopmentprogramsshouldbemadeavailable

tothesupermarketindustry.

4TheCommonwealthofPennsylvaniashoulddevelopa

businessfinancingprogramtosupportlocalsuper-

marketdevelopmentprojects.10

Acrossthecountry,localgovernments,privatedevelopers,

andcommunitygroupshavealreadybeguntotakesuch

actions.Forexample,theRetailChicagoprogramhas

successfullyattractednewgrocerystorestolong-

underservedneighborhoods.InGary,Indiana,Milwau-

kee,Wisconsin,andWashington,D.C.,local

governmentsareworkingtomakestate-of-the-art

marketanalysisofthedemandforfoodretailintheir

low-incomeneighborhoodsavailabletothesupermarket

industry.InPennsylvania,thestatehasallocated$20

million,leveragedwith$60millioninprivatemoney,to

createtheFreshFoodFinancingInitiative,arevolving

loanfundthatisavailabletofinancesupermarketsin

underservedareas.11(Seechapter8formoreinforma-

tionabouttheFreshFoodFinancingInitiative.)

Thereareadditionallinkstobemadebetweeneconomic

developmentandhealth.Communitiesthatsuffer

fromdisinvestmentoftenfeaturesubstandardhousing,

whichcanmeanunabatedtoxinssuchasmold,rodents,

cockroaches,andleadpaint.Lower-incomecommunities

mayalsohavedisproportionalamountsoftoxicland,

whichremainsundevelopedbecauseofthecostof

remediation.Roaddesignandthelocationandsiting

ofpollutingindustriescanbeimpedimentstonew

RetailChicago

Mostlargecitiesmakesomeefforttoattractnewretailers,butfew

havefocusedonmeetingtheretailneedsofunderservedinner-city

neighborhoods.OneexceptionistheRetailChicagoprogram,

launchedin1994byChicago’splanninganddevelopmentdepart-

mentinpartnershipwiththeLocalInitiativesSupportCorporation

(LISC)andtheChicagoAssociationofNeighborhoodDevelopment

Organizations(CANDO).

RetailChicagocommissionseconomicprofilesandanalysisof

selectedneighborhoods,thendrawsontheresultstoproduce

promotionalmaterialtobedistributedtoretailers.Itoffers

interesteddevelopersandretailersasinglepointofcontactwithin

citygovernmentforinformationandsupportwithsiteplanning,

permitting,andaccesstoincentiveprograms.Theprogram

publishesaquarterlynewsletterandschedulesregulartours

tobringlocalretailersandelectedofficialstogethertolookat

developmentopportunitysites.12

Strongandvisiblesupportfromthemayorhasbeenessential

totheprogram’sabilitytoleveragetheresourcesofothercity

departmentsandgetthingsdonequickly.RetailChicagomanages

astrategicplanforneighborhoodretailinChicagoandcaneducate

othercitystaffabouthowtheretailprojectsfitintoothercom-

munitypriorities.

Theresultshavebeendramatic:manyretailers,includingseveral

supermarkets,havelocatedinthetargetedneighborhoods.13


businessdevelopment;theycanalsoaffectairqualityandthereforeratesof

asthmaandotherlungdiseases.

Manyofthebasicconceptsandstrategiesinthistoolkitcanbeusedto

addresseconomicdevelopmentresponsestohealthimpactsotherthan

obesity.Thefocusinthistoolkitis,however,obesityandaccesstofood.

1 D.Chenowithetal.,The Economic Costs of Physical Inactivity, Obesity, and Overweight in California Adults: Health Care, Workers’ Compensation, and Lost Productivity,at4(April2005),available atwww.dhs.ca.gov/ps/cdic/cpns/press/downloads/CostofObesityToplineReport.pdf(lastvisited6/6/06).

2 ForamorecompletediscussionofthefactorscontributingtoobesityseeDepartmentofHealthandHumanServices,CentersforDiseaseControlandPrevention,Overweight and Obesity: An Overview,available atwww.cdc.gov/nccdphp/dnpa/obesity/contributing_factors.htm(lastvisited6/6/06).

3 C.L.Hayne,Regulating Environments to Reduce Obesity,Vol.25,No.3/4,Journal of Public Health Policy,at390(2004).

4 K.Morlandetal.,Neighborhood Characteristics Associated with the Location of Food Stores and Food Service Places,Vol.22,No.1,American Journal of Preventative Medicine,at23-29(2004).

5 R.W.Cotterill,The Urban Grocery Store Gap,FoodMarketingPolicyCenter,UniversityofConnecticut,IssuePaperNo.8(April1995).

6 E.Bolenetal.,Neighborhood Groceries: New Access to Healthy Food in Low-income Communities,CaliforniaFoodPolicyAdvocates,at4(2003),available atwww.cfpa.net/Grocery.PDF(lastvisited6/6/06).

7 USDA,FoodandNutritionServices,Promoting Healthy Eating: An Investment in the Future, A Report to Congress,at10(1999),available atwww.fns.usda.gov/oane/MENU/Published/NutritionEducation/Files/PromotingHealthyEating.PDF(lastvisited6/6/06).

8 BrookingsInstitution,From Poverty, Opportunity: Putting the Market to Work for Low-income Families,available atwww.brook.edu/metro/pubs/20060718_PovOp.htm(lastvisited8/28/06)

9 InstituteofMedicine,Preventing Childhood Obesity: Health in the Balance,at121(TheNationalAcademiesPress2005),available atwww.nap.edu/books/0309091969/html(lastvisited6/6/06).

10 TheFoodTrust,Special Report: Stimulating Supermarket Development: A New Day for Philadelphia(2004),available atwww.thefoodtrust.org/pdf/SupermktReport_F.pdf(lastvisited6/6/06).

11 TheFoodTrust,Pennsylvania Fresh Food Financing Initiative,availableatwww.thefoodtrust.org/pdf/FFFI%20Program%20Guidelines%20with%20Applications.pdf(lastvisited6/8/06).

12 K.Pothukuchi,Attracting Supermarkets to Inner-City Neighbor-hoods: Economic Development Outside the Box,Vol.19,No. 3, Economic Development Quarterly,232-244(August2005).

13 InterviewwithJoelBookman,ChicagoLocalInitiativesSupportCorporation(LISC),6/21/06.

WhyDoSoManyCommunitiesLackAccesstoHealthyFood? 7

Some History

Therehavealwaysbeenneighborhoodsthatarelessprosperousthanothers,

butafterWorldWarII,rapidsuburbanizationgreatlyincreasedeconomic

segregation.Beforethewar,mosturbanneighborhoodsandsmallertowns

containedamixofpeoplelivingatverydifferentincomelevels.Butthenew

suburbsgenerallyinvolvedlargetractsofnearlyidenticallypricedhomes.As

middle-income(generallywhite)familiesleftolderneighborhoods,prices

oftendeclined,creatingfurtherincentiveforevenmorefamiliestoleave.

Eventually,largesectionsofmanyAmericancitiesandruralcommunities

cametobeoccupiedbythepooralone.

Withfewerpeopleandlowerincomes,itbecameharder

andhardertomaintainbasicinfrastructure.Decliningtax

revenuesledmanycitiestocutbasicservices,which,

predictably,ledtofurthermiddle-classflightandlower

propertyvalues.Withpropertyvaluesdeclining,banks

becamereluctanttolendmoney.Withoutbankfinancing,

itwasvirtuallyimpossibletoturnthesituationaround.

Meanwhile,trendsinthesupermarketindustryhavemade

itevenharderforinner-citystorestosucceed.Overthe

last40years,supermarketchainshavemadedecisions

tocloseinner-citystores.1Whilethisdisinvestmentbegan

withstoresfollowingout-migrationtothesuburbs,it

alsoresultedinanewmodelofgrocerystore,onethat

requiredamuchbiggerstore“footprint”andincluded

suchservicesasbankingandpharmacieson-site,all

surroundedbyacresofparking.Thisnewmodelworked

wellintermsofmaximizingprofitsonaper-storebasis

andservedsuburbancustomerswell.Butitisnota

modelthatfitsintothebuiltenvironmentofcities.2

Theout-migrationofsupermarketshasleftmanyinner-

cityresidentsdependentuponcornermarketsforfoodpurchases.Many

ofthesestores,whichinthepre-supermarketeracarriedawidevarietyof

foodstuffs,havebecomepurveyorsofprimarilyhigher-profitgoodssuchas

Redlining

Manyoftheeconomicproblemsevidentinlow-incomeurban

neighborhoodstodaystemfromdifficultyaccessingcapital.While

lawssuchastheCommunityReinvestmentActandtheHome

MortgageDisclosureActhavemadeitmucheasierforinner-city

residentstoobtainloans,creditaccessproblemsstillhinder

economicdevelopmentefforts,andthelegacyofseveraldecadesof

systematicdisinvestmentsisstillevidentinmanyneighborhoods.

Thepracticeofsystematicallydenyingcredittocertainneighbor-

hoodsbasedlargelyonresidents’raceandincomeprofileis

calledredlining.Thepracticewasactivelypromotedbythefederal

governmentbeginninginthelate1930s.TheFederalHousing

Administrationrequiredhomemortgagelenderstoproducemaps

thatidentifiedneighborhoodswithhighconcentrationsofAfrican

Americansorlow-incomeresidents,factorsthatwerethought

tocontributetounstablepropertyvalues.(Manyofthesemaps

outlinedtheseareasinred,thusthetermredlining.)

Thisinabilitytoobtainmortgagefinancingbecameakeyfactor

leadingtodeclineintheseveryareas.Withoutaccesstobank

loans,homepricesfell,manyhomeswerenotproperlymaintained,

andsmallbusinesseswereunabletogrow.Itwasnotuntil1970

thatfederallawmaderedliningillegalandbegantorequirebanks

toundertakeeffortstoensureequalaccesstocredit.

3 Why Do So Many Communities Lack Access to

Healthy Food?


alcohol,cigarettes,andnonperishablefoodsoflimitednutritionalvalue.In

addition,becausesmallstoresmustmaximizetheprofitoneachproductin

ordertoremainviable,pricestendtobemuchhigherinthesecornerstores

thaninlargermarkets.3Neighborhoodsarealsodeprivedofemployment

opportunities,andlow-incomepeoplemusttraveloutoftheirneighborhood

(andsometimestheircity)tosecureahealthydietfortheirfamily.

Current Challenges

Inrecentyears,manylong-neglectedcommunitieshavebeencomingback.

Sincethelate1970s,theCommunityReinvestmentActhasrequiredbanksto

makecreditavailableinallcommunities,whichhasledtonewinvestment,

newhousing,andinmanyplaces,newretailactivity.Growingnumbersof

retailers–includingmanymajorsupermarketchainsandindependentfresh

foodstores–havebeguntorecognizethemarketpotentialoflower-income

communities.Newfull-servicestoreshaveopened,existingsmallgroceries

haveexpandedtheirinventoryofhealthyfoods,andfarmers’marketshave

broughtfreshfoodintoneighborhoodsthatfordecadeshadnoalternatives.

Theseeffortsstillfaceanumberofverysignificant

challenges.Advocateswhohopetoimprovelocalfood

accessmustunderstandmanyofthesechallengesin

ordertodevelopeffectivestrategies.

It’sclearthatnoteveryonehasequalaccesstoquality

foodstores.Manylower-incomecommunitieshaveno

storesthatsellhealthyfood.TheUrbanandEnviron-

mentalPolicyInstituteatOccidentalCollegeissueda

reportin2002thatincludedthefindingthatmiddle-and

upper-incomeneighborhoodsinLosAngeleshad2.26

timesasmanysupermarketspercapitaaslow-incomeneighborhoodsdid.4

Itmightbetemptingtoconcludethatthereasonforthisdisparityisthat

low-incomehouseholdsdon’thaveenoughmoneytosupportaprofitable

localsupermarket,butanumberofrecentsupermarketprojectsdeveloped

inlow-incomeurbanneighborhoodshaveproventobeamongthemost

profitableintheirregions.5Manylower-incomeareasoffersignificant

advantages,includingconvenientcentrallocations,lowerlandcosts,fewer

retailcompetitors,andhigherhouseholddensities,allofwhichshouldmake

themattractivelocationsforfoodretailers.

Sincelow-incomeneighborhoodshavesomuchtooffer,whydon’ttheyall

haveconvenientfoodshoppingoptions?Unfortunately,thereareanumber

offactors,eachcomplexinitsownright.Someoftheseissuesareproblems

ofperceptionorresultfrombiasorsimplemisunderstandingsonthepartof


retailersandfinancialinstitutions,whileothersarerealchallengesthatmust

beaddressedforanybusinesstosucceedinalow-incomecommunity.

Foodaccesschallengesinlow-incomecommunitiesareonlyonesymptomof

thebroadereconomicdevelopmentchallengethatmanycommunitiesface.

Anymarket-basedsolutiontofoodaccessissuesintheseareashastobe

partofamorecomprehensiveefforttoovercomebiasandimprovebroader

economicandsocialconditions.

Challenge #1: Spending Power

Someclaimthattheprimaryreasonlow-incomecommunitieshavefewer

retailopportunitiesisthattheyhavelessmoneytospend.Whileitisclearly

truethatlow-incomehouseholdshavelessdiscretionaryincomethanhigher-

incomehouseholds,itdoesnotnecessarilyfollowfromthisobservation

thatfoodretailersinlow-incomeneighborhoodswillexperiencelowersales

volumes.Thereareanumberofreasonsforthis:

4Concentratedbuyingpower:Low-incomecommunitiesoftenspendfar

morethantheaveragecommunityduetoconcentrated buying power.

Manyurbancommunitiesarebuiltathigherdensitiesthantheirsuburban

counterparts,whichmeanstherearemoretotalhouseholdspersquare

mile.Morehouseholdsmeansmorespendingpowerwithinastore’strade

area.(Astore’stradeareaisthegeographicareasurroundingastorefrom

whichcustomersaredrawn.)Historically,retailershavelookedatanarea’s

averagehouseholdincomeasanindicatorofmarketstrength,butthis

approachunderestimatestherealeconomicpowerofmanycommunities.

Abetterapproachinvolveslookingattheaggregatespendinginagiven

area.

4Foodspending:Whilelower-incomehouseholdshavelessmoneyavailable

tospendingeneral,mostprioritizespendingonfood(alongwithhousing)

overotheritems.AsurveyconductedbytheInitiativeforaCompetitive

InnerCityandPricewaterhouseCoopersfoundthatinner-cityresidents

actuallyspent$10to$20moreeachmonthongroceriesthantheaverage

Americanhousehold,evenwhentheirtotalincomesweresignificantly

belowaverage.6

4Undocumentedincome:Mostretailersrelyonpublicdemographicdatato

evaluatethemarketpotentialofaproposedstore.Thisdataisgenerally

basedontheU.S.Censusconductedeverytenyearsandtheannual

ConsumerExpenditureSurvey.Bothsourcestendtounderrepresentthe

economicpotentialoflow-incomeneighborhoods.TheCensusBureau

acknowledgesthatthedecennialcensussystematicallyundercountsthe

populationofmanycommunities;thisundercountismorepronounced

inlow-incomecommunitiesandespeciallyincommunitieswithhigh


immigrantpopulations.Inaddition,manylow-incomehouseholdsearn

undocumented(oftenlegalbutunreported)incomefromactivitieslike

babysittinganddaylaboring.Governmentstatisticsoverlookthisveryreal

sourceofspendingpower.(Seechapter16foradiscussionofcompanies

thathavedevelopedinnovativemethodsforaccuratelycalculatingthe

spendingpowerinlow-incomecommunities.)

Challenge #2: Higher Operating Costs

Supermarketoperatorsreportthatinner-citystorescostmoretooperate.

Thesestoresfacehighercostsforsecurity,propertytaxes,insurance,and

evenpayroll.(Low-incomeconsumersarelesslikelytoowncarsand

thereforetendtomakemorefrequentbutsmallerpurchases,whichmeans

inner-citystoresneedtohiremorecheckerstoservethesamenumberof

households.)

Challenge #3: Safety Concerns

Manylow-incomecommunitiesfacecrimeandsafetyproblems,bothreal

andperceived.Safetyconcernsaffectaretailer’sbottomlineintwodistinct

ways.Storesinhigher-crimeareasexperiencegreaterlossesduetotheftand

greatercostsassociatedwithsecurity.Atthesametime,evenwhereactual

crimestatisticsarenotparticularlyhigh,theperceptionofcrimeposesa

veryrealproblemforretailers.Retailersunderstandablyfearthatcustomers

willnotfrequentstoreslocatedinareasthatareconsideredunsafe,even

thoughtheseperceptionsareoftentheresultofhistoricalcrimeratesor

outrightprejudice.Whilemanyretailershavebeenaccusedofexaggerating

theimportanceofsafetyconcerns,groceryoperatorswithsuccessfultrack

recordsofoperatinginlow-incomecommunitiessucceedinpartbypaying

closeattentiontosafetyandreportthatincreasedexpenditureonsecurity,

lighting,andemployeetrainingareacostofdoingbusinessinmanyof

theselocations.

Challenge #4: Access to Capital

Historically,businessownersanddevelopershavefounditdifficultto

obtainthenecessaryfinancingforretailcenterslocatedinlow-income

neighborhoodsduetolenders’unwillingnesstoinvestincertainneighbor-

hoods.Manybanksrefused,bothformallyandinformally,tomakeloansin

neighborhoodsthatwereconsideredunstable.(See“Redlining,”page7.)

ThepassageoftheCommunityReinvestmentActin1977createdafederal

requirementthatallbanksmakecreditavailabletoallportionsofwhatever

regiontheyserve.CRArequiresbankstoseekinvestmentopportunitiesin

low-incomeneighborhoods.Nonetheless,manycommunitiesstillexperience

seriouschallengesinaccessingcapital.


Challenge #5: Site Issues

Twosite-relatedchallengesfacingretaildevelopersinurbancommunitiesare

theshortageofappropriatesitesandthecostof“legacyuses.”

4Lotsize: Mosturbanareasbuiltbeforethe1970sweredesignedto

accommodatemanysmallindividualproperties.Beforetheadventofthe

automobile,mostpeoplewalkedortooktrainsorstreetcarstogettowork

andtoshop.Tomakewalkingfeasible,peoplebuilttheirhousescloser

togetheronsmallerlots.Neighborhoodretaildistrictsweregenerally

madeupofmanysmallshops,sidebyside.

Withtheuseofcarsbecomingmorewidespreadandthesubsequent

migrationfromcitiestosuburbs,peoplebegantoshopinlargerand

largerstores.Bothretailersandconsumersbegantopreferlarge-store

formatswithlotsoffreeparking;thiswasespeciallytrueforfoodretail-

ers.Throughthe1950s,grocerystorestendedtobebetween5,000and

15,000squarefeet;bythe1970ssupermarketsof30,000to40,000feet

hadbecomethenorm.Todaytheaveragefull-servicesupermarketis

around48,000squarefeet,butnewstoresopenedbymajorchainscan

beaslargeas70,000.7Moreandmoreconsumersaredoingtheirgrocery

shoppinginsupercenterslikeWalMart,whichcanbeasbigas150,000

squarefeet.8

Largerstoresrequirelargersites.Thetypicalsupermarkethasfiveparking

spacesforevery1,000squarefeet.9A40,000-square-footstorewillhave

approximately200spaces,ormorethananacreofparking.

Becausemostsupermarketsarenowdevelopedaspartoflargerstrip

shoppingcenters,theirsiterequirementsaredrivenupfurther.Supermar-

ketsarerelativelylow-marginbusinesses;theirprofitsareverytight,and

mostcannotaffordhighrents.Butaname-brandsupermarketwilldraw

largenumbersofconsumersonaregularbasis,andotherretailerswillpay

ahighpremiumtolocatenexttoasupermarket.Recognizingthisreality,

developersarereluctanttobuildacenterwithonlyasupermarkettenant:

theypreferinsteadtobuildafullshoppingplazawiththesupermarket

asananchorandadozenormore“in-line”tenantswhowillgenerally

paymuchhigherrents.Acommunityshoppingcenterwithasupermarket

anchorwillgenerallyinclude65,000to150,000squarefeetofretailspace.

Whileasupermarketalonemightrequirelessthantwoacresofland,a

communityshoppingcentermightrequirefivetotenacres.10Inurban

areas,supermarketdevelopersoftenhavetoassembleasuitablesiteby

purchasinglandfrommultiplelandowners,addingsignificanttransaction

coststotheproject.


4Costof“legacyuses”: Unlikesuburbandevelopment,urbanrealestate

developmentprojectsgenerallyinvolverebuildingsitesthathavepreviously

beenusedforsomeothertypeofactivity.Thesehistoricalusesmakeurban

developmentmoreexpensivethansuburban“greenfield”developmentfor

threemainreasons.First,thereisadirectcostrelatedtodemolishing

existingbuildingsandpreparingasitefornewconstruction.Second,many

(butnotall)urbansiteshaveexperiencedsomelevelofenvironmental

contamination.Theseso-called“brownfield”sitescanbecostlytoclean

up,andevenwhentheyarecleaned,theriskoffuturelawsuitscreatesan

additionalexpense.(TheCaliforniaEnvironmentalQualityAct(CEQA)can

havetheeffectofcreatingadditionalhurdlesforthedevelopmentofurban

sites,whichmeansthatevencleanurbansitesmaybemoreexpensiveto

developthancomparablesuburbanorruralsites.)11Third,manyunder-

utilizedurbansitesarenonethelessoccupiedbysomekindofbusinessor

residentialusethathastoberelocated.Asitethatiscurrentlyoccupiedas

aparkinglotmightbetterservethecommunityifitwereredevelopedasa

supermarket,butbecausetheparkinglotearnsrevenue,buyingthesite

willcostsignificantlymorethanvacantlandwould.Also,manygovern-

ment-fundingsourceswillrequirethatdeveloperspayrelocationcostsfor

existingtenants,inadditiontopayingthepropertyownerfortheland.

Combiningseveralsmallerparcelsintoasinglesitelargeenoughfora

supermarketwillalsoaddcosts.Theseareallnecessaryandappropriate

costsofredevelopment–buttheymakeappropriatesitesexpensiveto

acquire,evenineconomicallydepressedareas.

Challenge #6: Competition

Mostsupermarkets,becauseoftheirsize,havetodrawcustomersfroma

fairlylargearea–generallylargerthanasingleneighborhood.Evenwell-off

urbanneighborhoodsmaynotbeabletosupportafull-servicesupermarket

withoutpullingincustomersfromsurroundingareas.Thismeansthatnot

everyneighborhoodcanhaveitsownsupermarket.Inurbanareas,neighbor-

hoodscompetewithoneanotherforretailers.Ifthenextareaoverhasa

supermarket,yourneighborhoodmaybelesslikelytoattractone.Inrural

areas,smallertownscompeteinthesameway.

Low-incomecommunitiesareatadisadvantageinthiscompetition.Both

retailersandcustomersperceivelow-incomecommunitiesaslesssafeand

lessattractive.Asupermarketlocatedinamiddle-classareamightcounton

drawingincustomersfromnearbylow-incomeareas,whilethereversemay

notbetrue.Oneresultisthatlow-incomepeopleandpeopleofcoloroften

havetotravelfurthertoreachasupermarket.12

Insomeplaces,overcomingthisphenomenonrequireschangingpeople’s

perceptionsofthewholeneighborhood.Inorderforafull-servicesuper-


markettosucceed,acommunitymayneedtoundertakeawholerangeof

activitiesdesignedtoimproveitsappearance,addresssafetyconcerns,and

marketitselfasasafeanddesirableplacetoshop.Somecommunitiesmay

choosetopursueotherstrategiestoincreaseaccesstohealthyfood–for

example,byworkingwithexistingsmallfoodretailerstoenhanceofferings

orbydevelopingfarmers’markets.

1 E.Bolenetal.,supranote6inchapter2,at4(citingJamesO’ConnorandBarbaraAbell,Successful Supermarkets in Low-income Inner Cities, U.S. Department of Agriculture,at6(1992),andAmandaShaffer,The Persistence of L.A.’s Grocery Gap: The Need for a New Food Policy and Approach to Market Development,CenterforFoodandJustice,at6(2002)).

2 Theeconomicdevelopmentissuespresentedbylow-incomeruralareasareequallycomplex,buttheproblemsaremorecloselyrelatedtotherelativelysmallnumberofdollarsavailablewhenlow-incomepeoplearesparselyspreadoutoversubstantialgeographicareas.

3 BrookingsInstitution,From Poverty, Opportunity: Putting the Market To Work for Low-income Families,available atwww.brook.edu/metro/pubs/20060718_PovOp.htm(lastvisited8/28/06).

4 E.Bolenetal.supranote6inchapter2,at4(citingAmandaShaffer,The Persistence of L.A.’s Grocery Gap: The Need for a New Food Policy and Approach to Market Development,CenterforFoodandJustice,at6(2002)).

5 InitiativeforaCompetitiveInnerCity,The Changing Models of Inner City Grocery Retailing(July2002)available atwww.icic.org(lastvisited6/16/06).

6 InitiativeforaCompetitiveInnerCity&PricewaterhouseCoopers,Second Annual Inner-City Shopper Survey: Inner-City Shop-pers Make Cents (and Dollars),at13(October2000)available atwww.icic.org(lastvisited6/16/06).

7 FoodMarketingInstitute, Supermarket Companies Seek Competitive Edge with Niche Market Stores and Specialty Services, According to New Fmi Study,3/20/06,available atwww.fmi.org/media/mediatext.cfm?id=803(lastvisited6/22/06).

8 R.Kingetal.,Agricultural Economic Report #839: Super-market Characteristics and Operating Costs in Low-Income Areas,U.S.DepartmentofAgriculture,EconomicResearchService(December2004).

9 Supermarket Access in Cambridge: A Report to Cambridge City Council, Community Development Department,12/19/94,at4,available atwww.ci.cambridge.ma.us/CDD/cp/zng/super/ super_report.pdf(lastvisited6/22/06).

10 S.Nax,Selma Square Work Begins; Retail Project is the Latest of Many in the City,Fresno Bee,8/23/98(HomeEdition),atG1.

11 FormoreinformationaboutCEQA,seeappendix3;see alsoL.Feldstein,General Plans and Zoning: A Toolkit on Land Use and Health,PublicHealthInstitute(2006).

12Insomecases,residentsoflow-incomeneighborhoodsmaybeunwillingtocrosscertainpsychologicalbarrierssuchasfreewaysorneighborhoodboundaries,evenwhensupermarketslocatedinhigher-incomecommunitiesarephysicallynearby.

DevelopingaStrategy 15

Thereareanumberofverydifferentapproachestothechallengeofimprov-

ingaccesstohealthyfoodinunderservedcommunities.Thischapter

exploresissuesarounddevelopingsupermarkets,smallstores,cornerstores,

mobilemarkets,andfarmers’markets.Theapproachesdifferinthelevelof

effort,start-upcapital,andotherrequiredresources,andnooneapproach

willbeappropriateforeverycommunity.However,allofthestrategies

describedinthischapteraremarket-based;theyallattempttobuildself-

sustainingbusinessesthatmeetlocalhealthneedsbytakingadvantageof

localspendingpower.

Supermarket Development

Inmanycommunitiesthatfacefoodaccessproblems,thefirstpriorityhas

beentodevelopanewfull-servicesupermarket.Manyurbanandrural

communitieshaveidentifiedrealopportunitiesforsupermarketsand

successfullymarketedtheirlocationstobothmajorsupermarketchains

andindependentoperators.(Notethatitisoftenpossibletoobtainpublic

subsidiestomakeanappropriatesitemoreattractivetopotentialoperators.)

Anumberofurbansupermarketshavecapitalizedonthesupportof

community-basedorganizations(CBOs),foundations,andotherprivate

fundingsourcestoovercomethechallengesoflocatingintheinnercity.

SomeofthemostsuccessfulprojectshaveinvolvedpartnershipswithCBOs,

whichhaveuniqueexpertisethatcanhelpcreatetheconditionsinwhich

privateinvestorsandentrepreneurswillinvest,especiallyregardingsite

development,communityrelations,andworkforcedevelopment.

Communitydevelopmentcorporations(CDCs)–nonprofitorganizations

establishedtocoordinatetheeconomicrevitalizationoflow-income

communities–oftenhaveexpertisenavigatingthepermittingandzoning

processes.Theymayalsobemajorplayersinneighborhoodredevelopment

processes.SomeCDCs,notablytheBed-StuyRestorationCorporationin

BedfordStuyvesant,NewYork,andtheNewCommunityDevelopment

CorporationinNewark,NewJersey,havenotonlyparticipatedinthe

developmentprocessbutalsotakenonleadrolesasownersoftheretail

facilityinwhichthenewsupermarketslocate.Thesecooperativemanagement

IdentifyingSitesforNewStores

Differentsupermarketcompanieshave

slightlydifferentsiterequirements,butsome

ofthemoreimportantissuesinclude:

4Size:Mostcompaniesoperatestoresin

several“formats,”butthetrendoverthe

pastseveraldecadeshasbeentoward

largerandlargerstores.Theaveragestore

isnow48,175squarefeet,andmoststores

aredevelopedaspartofretailcentersthat

requireseventotenacresofbuildableland.1

4Traffic:Supermarketstendtolocateon

high-trafficstreets.

4Adjacentuses:Ideallysupermarketssit

adjacenttootherretailuses,whichcan

benefitfromthespilloverofshoppers.

Also,someresidentialneighborswillbe

affectedifasupermarketlocatesdirectly

adjacenttoresidentialuses.

4Truckaccess:Trucksmusthaveadequate

accesstothebackofthesite.Thereare

manylargesitesinurbanareasthatcan’t

accommodatethisneedduetotraffic

configurationorconcernsofadjacent

residentialproperties.

4 Developing a Strategy


structureshelpdistributetheriskassociatedwithnewdevelopmentsand

cultivateastrongsenseofcommunityownershipandpride.

Advantages

4Mostpeopledomostfoodshoppinginsupermarkets

4Largesupermarketsoftenhavethelowestprices

4Highvolumemakesiteasierforlargestorestostockfreshproduce

4Supermarketsdrawcustomersfromalargeareaandgenerateeconomic

activitythatcanspillovertosupportotherneighborhoodbusinesses

Challenges

4Manycommunitiesthatfacefoodaccesschallengesdonothaveappropri-

atesitesforfull-scalesupermarkets

4Realestatedevelopmentatthisscalecanbeextremelyexpensiveand

risky:supermarketprojectsinunderservedareasmayrequiremillionsof

dollarsofpublicsubsidy,fundsthatcouldbeusedforotherpurposes

4Thismaybean“allornothing”strategy:wherecommunitiessucceedin

recruitingasupermarket,theirfoodaccessissuesaregenerallyreduced–

butifyearsofeffortdonotresultinasupermarket,thecommunitymay

nothaveanythingtoshowfortheeffort

4Givencurrentstoreformats,everyneighborhoodcan’texpecttohave

itsownsupermarket:largestoresneedtodrawcustomersfromseveral

neighborhoods(orruralcommunities),andthedesireforasupermarket

maykeepadvocatesfrompursuingotherstrategiesthatmayhavegreater

potentialforsuccess2

4Somesupermarketdevelopmentprojectsmaybeopposedbecausethey

arelikelytogenerateincreasedtrafficanddemandforparkingorcontrib-

utetolitterproblems3

4Anewsupermarketmaybeperceivedascreatingadditionalcompetition

forcertainexistingsmallbusinesses,makingitharderforsometosurvive


Partners Through FoodRochester,NewYork

TheUpperFallscommunity,locatedinthenortheastquadrantofRochester,

NewYork,ishometo5,000ofRochester’s219,000residents.Themajorityof

UpperFallsresidentsareAfricanAmericanorPuertoRicanandlow-income.4

From1970to1995,thenumberofsupermarketsintheRochestermetro-

politanareadroppedsteadilyfrom42toameagereight,andin1992,the

lastsupermarketintheUpperFallsneighborhoodburneddown.Withthe

lossofthegroceryinUpperFalls,peoplefromthecommunitywereforced

towalkoverafreewaytogettheirgroceries,sometimesinperilousweather

conditions.

Afterthefire,UpperFallsresidentsformedthe“GroceryGroup”andbegan

meetingin1992tobrainstormsolutions.

“Therewasacoregroupthatstartedtheballrolling,”saysHankHerrera,a

neighborhoodresidentwhotookonaleadorganizingrole.“Afteraseriesof

earlymeetings,webegantoreachouttothecommunity.”Thegroupquickly

attractedresidentsaffectedbytheabsenceofneighborhoodgroceryoutlets,

aswellasoutsideadvocatesforfoodaccessinlow-incomeareas.

Thegrouprapidlysnowballedintoastrongcollaborativeofdifferentinterests.

TheIbero-AmericanActionLeague–aHispanicAmericanadvocacygroup–

setupameetingataneighborhoodchurch,invitedeveryonewhowas

interested,andmadeintroductionsamongallthegroups.

That’swheretheGroceryGroupandtheCommunityDevelopmentBlock

Grant(CDBG)Coalition,agrouporganizedtoprioritizeCDBGfundrecipients,5

metandbeganworkingtogether.Fromthatpointthegroupsworkedcol-

lectivelytoorganizearoundtheneedforgroceryandactuallyincorporated

intoanonprofitorganization,PartnersThroughFood.

Thecollaborationwasnotyetcomplete,however.PartnersThroughFood

heldcommunitymeetings,advertisingthroughneighborhoodpreservation

clubsandhousingprojectstosolicitparticipation.TheCoalitionofNortheast

AssociationsandtheRegionalFoodBankalsoservedasvaluablecommunity

partners–engagingresidentstoparticipateincommunitymeetingsaswell

asbuildingpoliticalcloutfortheeffort,whichwascriticalforeventually

obtainingbuy-infromcitygovernment.

PartnersThroughFoodanditscommunityvolunteersbeganworkingto

attractasupermarkettothearea.Theycreatedmarketstudiesshowingthe

leakageofmoney6spentoutsidetheneighborhoodforgroceriesanddid

outreachtothegrocerychainsinRochester.

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Fromthebeginning,PartnersThroughFoodinvitedthecitygovernmentto

attenditsmeetingsandbecomeinvolvedinthegroceryproject.Initially,

theseinvitationsledtoaparallelprocesswithinthecitygovernment,which

didnotattendmeetingsbutbeganitsowninitiativetobringagrocerystore

totheUpperFallsneighborhood.ButaboutayearafterPartnersThrough

Foodwascreated,themayor,localgovernmentofficials,andthecommunity

groupsbeganworkingcollaboratively.

Afterfiveyears,thecollaborationbetweenPartnersThroughFoodandthe

mayor’sofficefinallyconvincedTOPS,amajorgrocerychain,tobuildashop-

pingplazaandfull-servicesupermarketintheneighborhood.Thefinancing

oftheprojectwasrealizedthroughacollaborationofactorsaswell.The

federalDepartmentofHousingandUrbanDevelopment(HUD)haddesig-

natedthecityofRochesteranenterprise community,makingpublicfunds

availableforrevitalization.7Thosefunds,alongwithfundingfromCommunity

DevelopmentBlockGrants,provided$6millionforthecommunitytoinvest

intheproject,alongwithadonationofafour-acreplotoflandbythecity.

TOPSinvested$28millionofitsownmoney,contractingwiththeRegional

EconomicDevelopmentCorporation(REDCO),anonprofitmanagedbythe

city,todevelopthesiteandbuildoutthespaceaccordingtoTOPS’specifica-

tions.(AlthoughPartnersThroughFood’sworkwaslargelycompleteoncethe

groceryagreedtolocateonthesite,membersoftheorganizationcontinued

toworkasadvisorymemberstotheprojectduringdevelopment.)

Theprojecthashadpositiverepercussionsbeyondtheobviousvalue

ofbringingagrocerystoretoanareathatbadlyneededincreasedfood

security.“ThephysicaltransformationofthecorneronwhichTOPSlocated

isdramatic,”saysthecity’sredevelopmentmanager,describingthechange

broughttowhathadbeenavacantfour-acrelot.“Theplazaisfull,andall

thestoresarethriving.”Infact,TOPSisdoingsowellinthatlocationthatit

openedanotherstoreinthesoutheastportionofthecity,whichhassimilar

demographics.

Residentssaytheretailareahastransformedtheneighborhood.Theynow

haveastorewithinsafewalkingdistancethatoffersawidevarietyof

affordablefoodoptions.Andthemayor’sofficehastakenitsexperiencewith

PartnersThroughFoodandtransformeditintoacity-runprogram,Neighbors

BuildingNeighborhoods(NBN),bringingcommunitiesintoplanningprocesses

thataffectthemandidentifyingprioritiesfortheirownneighborhoods.


Small Store Development

Whilenoteverycommunityhasanappropriatesiteandthemarketstrength

tosupportalargesupermarket,manyhaveconvenientaccesstofresh,

healthyfoodthroughsmallerneighborhoodgrocerystoresorproducemarkets.

Inspiteofthenationaltrendtowardlargerandlargerstores,manyinde-

pendentmarketsstillsucceedin10,000-to20,000-square-footformats.In

addition,agrowingnumberofchainsareopeningsmaller,limited-selection

grocerystoresinthissizerange.Manyurbanneighborhoodsalsohave

independentethnicmarketsthatspecializeinthesaleoffreshproduceand

targetcertainethnicgroups’needs.Thesesmallerstorescanbedifficult

tooperateandmoreexpensivethansupermarkets,buttheycanalsobe

incorporatedmoreeasilyintotheexistingneighborhoodfabric.

Communitiesconcernedaboutfoodaccesscanmakeaconcertedeffortto

attractandretainsmallfoodstores,evenofferingeconomicincentivessuch

asbelow-marketloansorstorefrontandtenantimprovementgrantstohelp

thesestoressucceedinunderservedlocations.

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Advantages

4Mostneighborhoodshavesitesthatcouldaccommodateasmall-format

foodstore

4Smallstoresrequireasmallertradeormarketareathanasupermarketto

makethemfinanciallyviable,providingadditionalfoodaccessoptionsto

neighborhoodsthatcouldnotsupportasupermarket

4Thecostofdevelopingandopeningasmallerstoreismuchlowerthanthe

costofanewsupermarket

4Smallerstoresaremoreoftenownedbylocalentrepreneurs

Challenges

4Smallstoresoftenhavehigherpricesthanlargesupermarkets,whichcan

takeadvantageofvolumepurchasing

4Someconsumerspreferlargerstores,whichofferagreaterselectionof

products

4Someneighborhoodgrocerystoresarereallysurvivingonthesaleof

liquorandtobacco

4 Jobsatsmallindependentstoresarelikelytopayless

4Evensuccessfulsmallstoresdon’tgeneratethekindofspillovereconomic

benefitthatafull-servicesupermarketcan

4Theremaybeculturalandlanguagebarriers(betweenstoreowners

andadvocates,aswellasbetweenstoreownersandthesurrounding

community):forexample,cornerstoresareoftenownedbyimmigrants

whoareaccustomedtoself-financingtheirbusinessesandmaybewaryof

receivinggovernmentsupport


City ProduceSanFrancisco,California

MercyHousing,anationalnonprofitaffordablehousingdeveloper,created

theRoseHotelasanaffordableresidentialprojectforspecial-needspopula-

tionsinSanFrancisco,oneofthemostexpensivehousingmarketsinthe

country.ThesitewaslocatedonSixthStreetinoneofthecity’stoughest

neighborhoods,whichisfilledwithbarsandliquorstoresandverylittle

otherretail.

Mercywasrequiredtodeveloptheprojectasamixed-usebuildingwithretail

tenantsonthegroundfloor.Becausetheprojectwasbeingdevelopedto

houseaspecial-needspopulation,manyofwhomweretryingtoovercome

addictionissues,Mercyfeltitwasimportantthatits

retailtenantsofferahealthieralternative.“Wewere

interestedinbringinginacommercialtenantthat

wouldhelpwiththerevitalizationoftheneighbor-

hood,”saysNancyConover,theprojectdeveloper.

“Itwasimportanttoattractfoottrafficandbenefit

theneighborhood.”Inaddition,whateverbusiness

wentintothespacewouldneedtopayenoughrent

tocoverMercy’scosts.

Althoughagrocerytenantwasnotspecifically

targeted,MercythoughtCityProducewouldbea

betterfitthantheotherbusinessesinterestedin

thespace,includingacaféandacellphoneretailer.Inadditiontobringing

affordablegroceryitemstoanextremelyunderservedneighborhood,the

marketownersmadeacommitmentnottosellalcohol.

Mercyrequiredthatthemerchantproduceabusinessplanforthenewstore

andwasabletoarrangeforfreeassistancethroughUrbanSolutions,a

localnonprofitbusinessassistanceorganization.Becausetheprojectwas

inaredevelopmentarea,thecity’sredevelopmentagencyprovidedagreat

dealofthefundingfortheproject.Inthiscasetheagencydidn’tmandate

thatallofitsmoneygototheresidentialportion,whichallowedMercyto

use$35,000to$40,000ofredevelopmentfundstobuildoutimprovements

(electricpanelsandHVACventing)inthecommercialspace.Beyondthose

components,thecommercialspacewasundevelopedtoallowtenantsto

builditoutaccordingtotheirneeds.

OnceMercyleasedthespacetothetwotenants–CityProduceandapiz-

zeria–theredevelopmentagencyworkedwiththemtooffersmallbusiness

improvementloansof$12,000each.InthecaseofCityProduce,thestore

ownerputintherestforequipmentandbuildout,amountingtoapproxi-

mately$75,000.“Theredevelopmentagencywasextremelygenerousin

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thiscase,”saysConover.“Theyweren’tinterestedinexactlywhattenantwe

chose,buttheydidwanttheentireprojecttobesuccessful,andtheyworked

withustoensurethateverythingworkedouttoallowthattohappen.”

Eventually,itdidhappen–thoughafewchallengesarosealongtheway.

DuringbuildoutMercyhadtoworkdirectlywiththemerchanttoensure

thenecessarypermitsandinspections,aprocessthatwasunusually

time-intensivebecause,duetolanguagebarriers,ithadtobedoneinperson

ratherthanthroughphonecallsoremails.Additionally,duringbuildoutand

theinitialmonthsofoperation,CityProducewasn’tabletopayitsfullrent;

Mercywroteoffsomeofittoallowthestoretogetafootholdinthearea.

Nowinitsthirdyearofoperation,thestoreisstablyfunctioning.Itsellsvery

affordablegroceryitemsatorbelowthecostoflargegroceryoutlets,and

althoughitdoesnothaveagreatdealofproduce,therefrigeratedshelf

offerssomeoftheonlyfreshfruitsandvegetablesavailableintheneighbor-

hood.Thestorehasloyalcustomersinthebuilding’sresidentsandits

neighbors;theownerhasintegratedhimselfasacommunitymemberaswell.

MercyremainspleasedwiththecontributionCityProduceoffersitsproject

andtheSixthStreetneighborhood.


Corner Store Improvement

Manylow-incomeurbanresidentsdomuchoftheirfoodshoppingatcorner

stores.Unlikesmallgrocerystores,whicharetypically10,000to20,000feet

orlarger,cornerstorestendtobe2,500feetorsmaller.Manycornerstores

sellprimarilyliquor,cigarettes,andcertainprepackagedfooditems;few

offerfreshproduce.

AnumberofhealthadvocatesinCaliforniahaveexperimentedwithprograms

designedtohelpthesecornerstoresprovideagreaterrangeofhealthy

food.In2000,CaliforniaFoodPolicyAdvocates(CFPA)developedapilot

cornerstoreimprovementprojectworkingwithSchoolMarket,acornerstore

locatedinOakland’sFruitvaleneighborhood.Througha

combinationoftechnicalassistance,training,andequip-

ment,CFPAhelpedthestoreownerofferfreshproduce

tohiscustomers.Thenonprofitpurchasedarefrigerated

displaycaseandhiredanexperiencedproducevendor

toprovideone-on-onetechnicalassistancetothestore

owneronpurchasing,handling,anddisplayingfresh

produce.Thetechnicalassistancealsoincludedexten-

sivesupportinmarketingtheproducetoneighborhood

customersandchangingcommunityperceptionsofthe

store,whichhadpreviouslysoldprimarilyliquor.

Thepilot,whichcostCFPAlessthan$25,000,ledtoadramaticincrease

inthesalesofhealthyfoodinthestore,whichcontinuedtoprovidethe

storeownerwithanewsourceofincomeforsometimeaftertheendofthe

pilot.Unfortunately,thepilotwasnotsustainedorexpanded,andthestore

eventuallystoppedsellingfreshproduce.

In2006theCalifornialegislatureapprovedAB2384,theHealthyFood

PurchasePilotProgram,designedtoprovideincentivestocornerstoreown-

ersinselectedlow-incomecommunitiestoincreasetheirsaleoffreshfruits

andvegetables.Thepilotprogramhasarigorousevaluationcomponent.

Cornerstoreconversioniscertainlynotgoingtobesuccessfulforevery

cornerstore.Herearesomefactorstoconsiderwhendecidingwhethera

particularstoreisready:

4Merchant’smotivation: Changingtheproductmixofanyexistingbusiness

canbechallenging,andintroducinghealthyfoodsintocornerstoresthat

surviveprimarilyonthesaleofliquorandtobaccorequiresamerchant

withconsiderablemotivationandanopenmind.Theretailerwillhaveto

takerealfinancialrisksandspendvaluabletimelearninghowtohandle

andsellproduce.Youmaywishtoreachouttoalocalsmallgrocers’


association(forexample,theKoreanAmericanGrocersAssociationorthe

YemeniGrocersAssociation)toidentifymotivatedmerchants.

4Space: Everycornerstorecouldprobablyaccommodatesomemixof

healthyfood.Buttobesuccessful,astoreownerwillhavetodedicatea

significantamountofhighlyvisiblespacetothesaleofproduce.Many

cornerstoreimprovementprojectshaveinvolvedmakingspacefora

refrigerateddisplaycaseaswellassomeadjacentshelfspace.

4Distribution: Identifyingadistributorforfreshfoodcanbeachallengefor

smallstores.Itmightbeaccomplishedthroughaco-opofcornerstoresto

increasebuyingpowerandsecurity.AstudybyBayAreaEconomicsfound

thatthecollectivepowerofatleast50storeswouldberequiredtooffer

customerspricescomparabletofull-servicesupermarkets,whichmightbe

challengingincitieswithrelativelylowcornerstoredensity.8Advocates

shouldalsobegintothinkabouthowlocal(freshandseasonal)foods

couldbeprocuredbyconnectingcornerstoreoperatorstoexistingfarmers’

collaboratives/markets.ThismodelwasusedbytheLiteracyforEnviron-

mentalJustice(LEJ)storeconversion(“GoodNeighbor”)programin

BayviewHuntersPoint.9

4Marketinganddesign: Somecornerstoreimprovementprojectsprovide

marketingfundsandtechnicalassistancetohelpmerchantsgenerate

demandfortheirnewproductline.Marketingfreshfoodsandimproving

acornerstoremightincludeinteriorandexterior“façadeimprovements,”

suchasnewsignsoraspecialdisplaycase(nearawell-traffickedareaof

thestore)withbrochuresonhealthyfoodchoices.Oneinnovativeaspect

ofLEJ’sGoodNeighborprogramwasarequirementthatparticipating

storesremovetobaccosignagefromtheoutsideoftheirstores.Since

storesarepaidbytobaccocompaniestodisplaythesesigns,thisobvi-

ouslyrepresentsapotentialfinancialtrade-offforthestore,butLEJwas

abletohelppayfornewsignspromotinghealthyfoodsinstead.

4Funding: Economicdevelopmentresourcesforimprovementstoanexist-

ingstorewilllikelybesomewhatdifferentfromthoseavailableforsuper-

marketdevelopment.Partnerscouldincludelocalpublichealthagencies,

citybusinessimprovement/developmentprograms,andtobaccocontrol

funders,aswellasredevelopmentagencies(especiallyforexternalfaçade

improvements).Bepreparedtoassembleenoughmoneytoprovidenot

onlyinitialinvestmentsininfrastructure(coolers,signage,displaycases),

butalsolonger-termsupportformarketingandpotentiallysubsidizingthe

purchaseoffreshfood(orguaranteeingthat“spoiled”freshfoodwillbe

reimbursed).

Note:Distributorsofferbusinessesother

benefits,includingassistancewithdis-

play,merchandising,andinsomecases,

accesstohealthinsurance.Inthe1990s,

advocatesinConnecticutexperimented

withcooperativelypurchasinghealth

insuranceforsmallstoreownersasa

hookforsellinghealthierproduce.


Advantages

4Helpinganexistingbusinessexpanditsproductlineisgenerallyfarless

expensivethanopeninganewstore

4Cornerorconveniencestoresarecommoninmostlow-incomeneighbor-

hoods;improvingthemnotonlyincreasesfoodaccess,butcanalsohelp

reducesomeofthesocialproblemsassociatedwiththesebusinesses

(e.g.,intoxication,loitering,drugsales)

4Freshproducecanhelpcornerstoreoperatorsreducetheirdependenceon

thesaleofalcoholandtobaccoproducts

4Becauselow-incomeconsumersarealreadyfrequentingthesestores,

addingaccesstohealthyfoodmakesiteasyforpeopletomakehealthier

foodchoiceswithoutchangingtheirshoppingpatterns

4Cornerstoredevelopmentbuildsthecapacityoflocalbusinesses

Challenges

4 Itisnotclearfromanyexperimentstodatewhetherthechangesare

financiallysustainablewithoutcontinuedsubsidy

4 Itisdifficulttorequirethatthebusinessescontinuetoofferhealthyfood

aftertheassistanceends

4Atbest,cornerstorescanofferonlyaverysmallselectionofhealthyfood;

mostpeoplewillstillneedaccesstoagroceryorsupermarkettomaintain

ahealthydiet

4Cornerstoresmaynothaveaccesstoefficientdistributionsystemsfor

produceandotherhealthieroptions

4 Itmaybedifficulttoofferproduceandotherhealthierproductsatafford-

ablepriceswhenthevolumeislow

Mobile Markets

Mobilemarketsaretrucksthatbringfreshproduceintolow-incomecommu-

nitiestoselldirectlytoconsumers.Ahandfulofprogramshaveshownthat

thisapproachcanmakeproduceaccessibletopeoplewithfewotheroptions.

InOakland,forexample,approximately30MexicanAmericanstreetvendors

(fruteros)haveforyearsrunmobilecartssellingfreshfruitsandvegetables,

hotcornonthecob,andhottamales.Fruteroswereoriginallyseenasa

nuisancebycitypoliceandapotentialpublichealththreatbythelocalpublic

healthdepartment.Becausethecitydidnotoffermobilevendingbusiness

licenses,thefruteroswerenotconsideredlegitimatefoodretailvendors,so


theircartsweresubjecttopolicecitationandevenseizure.Eventually–

throughapartnershipbetweenthecountypublichealthdepartment,a

community-basedorganization,andtheUniversityofCaliforniaatBerkeley

SchoolofPublicHealth–thestreetvendorsorganized,formedamutualaid

corporation,andobtainedajointlyoperatedcommercialkitchen.The

fruterosalsopurchasedapprovedpushcartsandlobbiedthecityofOakland

tocreateanordinancetoallowstreetvending.Thiscreativeandinterdisci-

plinarypartnershiphasallowedthefruterostooperatelegitimatelyunder

citycode,improvedtheireconomicstatus,andincreasedtheavailabilityof

theirproducts.10

Generally,amobilemarketwillmakestopsthroughoutacommunityona

weeklyschedule.Residentscomeouttomeetthetruckandbuytheirweekly

produce.InBaltimore,Maryland,horsecartvendorsknownasarabbers sell

produceandotherfoodinlow-income,primarilyAfricanAmericanneighbor-

hoods.Thehorse-cartvendingtraditionalmostdisappearedinBaltimore,

however,whenthestableswherearabbershadboardedtheirponieswere

condemned,anddisputesarosebetweensomeanimalrightsactivists

andotherswhoobjectedtoponieswalkingcitystreets.Recognizingthat

arabbingisanimportantculturaltradition,thecityhasnowsetasidepublic

fundstobuildacenterthatwouldincludestables,cartstorage,andrepair

space,aswellasamuseumthatwouldwelcomeschoolgroupsandothers

interestedinlearningmoreaboutthehistoryofarabbing.

Whilemobilemarketsarerelativelyinexpensivetooperate,itisnotclear

thattheproceedsfromsalescancovertheoperatingcosts.Manyexisting

programsrelyonongoinggrantfunding,whichmaynotbesustainable.

Advantages

4Thisapproachcanimmediatelyimproveaccesstofreshproduceineven

themosteconomicallydistressedcommunity

4Advocatesconcernedaboutfreshfoodaccesscanfocusonthatissue

alonewithouthavingtoaddressallofthemanyotheraspectsofretail

development

Challenges

4Revenuefromsalestendnottobeenoughtosupportoperatingcosts

4Whilegrantfundinghassupportedlimiteddemonstrationsofthisconcept,

thesefundersarenotlikelytofinanceexpansiontoothercommunities

4Theseprogramstendtoofferonlyfruitsandvegetables;healthydiets

generallyrequireconvenientaccesstoagreaterrangeoffoodproducts


People’s GroceryOakland,California

ThreeOaklandresidentscreatedthePeople’sGroceryin2002inresponseto

alackofgrocerystoresintheneighborhoodofWestOakland.Inadditionto

providingfreshproduceandhealthysnacks,theprojecthashelpedgetthe

communityinvolvedincontributingtoitsownfoodsecurity,builtcommunity

networks,increasedresidents’investmentintheneighborhood,andspread

anunderstandingofsustainablefoodsystems.11

Whentheprojectbegan,onlyone

supermarketservedthe25,000

residentsofWestOakland.Manyof

theseprimarilylow-incomeresidents

lackedtheirowntransportation

andhadtomaketheirtripsto

thegrocerystorebyfootand

publictransit.Suchtripsweretime

consumingandlimitedtheamount

offoodresidentscouldpurchase

duringeachtrip,aswellasthe

frequencyofthetripsthemselves.

Forresidentswithspecialneeds,it

sometimespreventedtheirabilityto

groceryshopatall.

Manyresidentsturnedtotheneighborhood’s36convenienceandliquor

storestomeettheirdailyneeds.Thesestorescarrybasicproductssuchas

toiletriesandpackagedfoods,butonlythreesellfreshproduceoradequate

foodforabalancedmeal.Thepricesatalloftheseconveniencestoresare

also30to100percenthigherthanatsupermarkets.Duetothehighprices

coupledwithhighunemploymentandpoverty,aquarterofWestOakland

residentsdependedonemergencyprogramsformuchoftheirfood.

Theprojectorganizersdecidedthatasmall-scaleeffortcouldnotonly

increaseaccesstofreshfoods,butalsoraiseawarenessofthenutritional

benefitsoffreshandorganicfoodsandthemethodsbywhichsustainable

foodaccesscouldbecreatedwithinthecommunity.ThePeople’sGrocery

projectfocusedprimarilyonbuildingalocalfoodsystem,ratherthan

bringinglarge-scaleprovidersintothecommunity.

Thefounderscreatedandbeganvolunteeringinacommunitygardenhosted

bytheYMCA,growingtheproducetheyintendedtosellthroughoutthe

community.Theywrotegrantstoprivatefoundationstosupporttheproject.

Theyalsopostedflyersintheneighborhood,recruitingvolunteerstohelp

growandsellfood.

Phot

oby

Grego

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Boththefundraisingandoutreacheffortsweresuccessful.Withinayear,the

People’sGroceryreceivedtax-exemptstatusandenoughfundingtopurchase

avan,stockingitwithproducetosellthroughoutWestOakland.With

additionalfundingandstafftime,theorganizationwasabletoexpandboth

itsgardenanditsprogrammaticcapacity.

TheinitialgoalbehindthePeople’sGrocerywastocreateayouth-run

gardeningprogramthatfedayouth-runneighborhoodgrocery.Buttheorga-

nizersquicklyfoundoutsuchalargeendeavorwasnotimmediatelyfeasible.

Instead,theyfocusedonaprogramthattrainedyouthtogrowproduceand

thensellitinthemobilemarketvan.Thisproject,

called“CollardstoCommerce,”quicklyexpanded

throughpartnershipswithWestOaklandschools

andcommunityorganizations.Thepartnerships

weremutuallybeneficial,providingthePeople’s

Grocerywithvolunteerstoplantandharvestwhile

involvingthehostorganizations’youthconstitu-

entsinprogramsongardening,healthawareness,

andentrepreneurship.

Themobilemarkettraveledthreedaysaweekto

fourorfivesites,dependingontheday,serving

approximately400residentswithanaverage

of30customerseachday.Theyouthvolunteers

beganrunningtheprogramandmakingdecisionsaboutwhichproductsto

carry,accordingtosalesandmemberfeedback.Theproceedsfromsales

cametosupportabout10to12percentoftotaloperations,withtherestof

thefundingcomingfromdonorsandprivatefoundations.AsthePeople’s

Grocerygrewinsizeandcapacity(from$15,000inthefirstyearto$300,000

threeyearslater),mediacoverageincreased,sparkingadditionalawareness

oftheprojectwithinthecommunityandamongfoodadvocacyandfunding

circles.

Themobilemarketwasonhiatusatthetimeofthiswriting(November2006).

ButthePeople’sGrocerycontinuestoworktowardcreatinganeighborhood-

basedcooperativegrocerystore.

PhotobyGregoryD

icum


Farmers’ Markets

Weeklyoutdoorfarmers’marketsofferaninexpensivewaytomake

high-qualityfresh,local,oftenorganicproduceavailableinjustaboutany

neighborhood.Farmers’marketsdon’tneedspecialbuildings,andtheydon’t

havedifficultsiterequirements;theycanbeorganizedinaparkinglotor

eveninastreetthatisclosedforthemarket.

Inorderforthemarkettosucceed,however,thefarmers

mustsellenoughproducetomakeparticipationworth

theirtime–sothemarkethastobelocatedinaconve-

nient,safeplaceandheldataconvenienttimeofthe

week.Marketsthatdon’tdrawenoughcustomerscanbe

closedorrelocatedfairlyquickly.

Farmers’marketsthatservelow-incomecommunities

shouldlookforwaystoacceptfoodstampsandother

publicbenefits,animportantsourceoflocalspending

power.Acceptingfoodstampsandotherpublicbenefits

notonlyhelpslow-incomefamiliesaccessfresh,local,

nutritiousfoods,itcanalsocreatenewincomesources

forfarmers.WiththerecentmovetoElectronicBenefit

Transfer(EBT)insteadofpaperfoodstamps,retailersmusthavepoint-

of-saleterminals.Manyfarmers’marketsallowshopperstoelectronically

redeemfoodstampsfor“scrip”(reusabletokensthatcanbemadefrom

hard-to-counterfeitwoodorplastic)atacentrallocationandusethemfor

purchasesatanymarketmerchant.

Tohelpestablishthesesystems,theCaliforniaDepartmentofSocialServices

(DSS)providesfarmers’marketswithEBTmachinesandtransactionservices

atnocost.12A“wired”EBTmachinerequireselectricityandatelephone

connection(landlineorcellular),butnewtechnologyisalsomakingwireless,

battery-operatedEBTterminalsavailable.Generally,DSSprovideswireless

EBTmachinestofarmers’marketsthatarelocatedinalow-incomeareaand

averageatleast$100infoodstampsalespermonth.However,EBTmachine

requestsareevaluatedonacase-by-casebasisandmaytakeotherfactors

intoaccount.

TheEcologyCenter,anonprofitorganizationthatpromotesenvironmentally

sustainablepractices,providesinformationonEBTandCaliforniafarmers’

marketsonitswebsite,includingsamplerecord-keepingformsandadminis-

trativeaswellasmarketingresources.13Marketingtolow-incomecommuni-

tiesiscriticaltoensureparticipationinafarmers’market’sEBTprogram.Itis

importanttoconnectwiththelocalcountywelfareofficetoensurethatfood

stamprecipientsfindoutaboutparticipatingfarmers’markets.Marketing

effortscanalsoincludeputtinguppostersatthefarmers’marketand


producingbilingualfliers,orconductingcookingdemonstrationsor“tastings”

thatemphasizethenutritionalandtastebenefitsoflocalproduce.

Advantages

4Farmers’marketscanimmediatelyimproveaccesstofresh,localproduce

inmostneighborhoods

4Whiletheymaynotsucceedinsomelocations,thelowstart-upcost

makesiteasytoexperiment

4Farmers’marketsprovideeconomicbenefitstosmallfarmersinadditionto

improvingfoodaccessinunderservedcommunities

4Farmers’marketscanbecomevibrantcommunitygatheringplacesthat

connecturbanconsumerswithregionalagriculture

4Farmers’marketscanofferfresherproduceatlowerpricesthan

supermarkets

Challenges

4 Itcanbedifficulttocoveroperatingcosts,especiallywithsmallmarkets

4Whilegrantfundinghassupportedlimiteddemonstrationsofthisconcept,

thesefundersmaynotfinanceexpansiontoothercommunities

4Farmers’marketstendtoofferprimarilyfruitsandvegetables;healthy

dietsgenerallyrequireconvenientaccesstoagreaterrangeoffoodproducts

4Thenumberoffarmersinterestedinmarketsalesmaynotbesufficientto

supportaregularfarmers’market,or–inareaswithmanymarkets–the

farmersmaybestretchedthin

4 Ifyouorganizeasmallneighborhoodmarket,it’simportanttomatchthe

productsofferedtolocaldemands:youmayneedtoworkwithinterested

farmersinadvanceofthegrowingseasontoplanculturallyappropriate

foods

4Someneighborsorlocalsmallbusinessesmayopposefarmers’markets

becausetheygeneratetraffic,parkingproblems,andlitter,orbecause

theyareperceivedascompetingwithlocalstores


Del Paso Heights Community Farmers’ MarketSacramento,California

DelPasoHeights,adiverselow-incomeneighborhoodinSacramento,does

nothavealargegrocerystore–anduntilacoalitionofcommunitymembers

developedafarmers’marketin2005,theneighborhoodlackedvenuesfor

buyingfreshproduce.

Acommunitycoalition,calledFEED(Food,Education,Equity,andDiversity),

builtonexistingcommunityresourcestodevelopaneighborhood-serving

market.FEEDgrewoutofagrouppartnershipincludingthelocalnonprofit

HealthEducationCouncil,theSacramentoofficeofthefederalWICprogram,

theSacramentoCountyDepartmentofHumanAssistance,andthelocal

nonprofitSoilBornFarm,aswellaslocalelectedofficials,government

agencies,andcommunity-basedorganizations.Thecoalition’svisionwasto

increaseaccesstofresh,healthyfoodinthecommunity.

Developinganeighborhoodfarmers’marketwasthefirstprojectFEED

decidedtoundertake.Unlikemostfarmers’markets,whichrelyonregional

farmers,theDelPasoHeightsfarmers’marketlookedforurban,low-income

farmerstobetheprimaryvendors.TheSacramentoCountyWICofficehad

alreadyledanefforttostartcommunitygardensandnowledtheoutreach

toidentifycommunitymemberswhocouldfarmandsellproduceata

market.FEEDsecuredfivefarmers,aswellashalf-andone-acrefarmplots

eitherownedbythefarmersor“leased”fromthelandownersatnocost.

Thefarmers,whowereallHmongimmigrants,camefromastrongcultural

traditionoffarmingandgrewculturallyspecificspecialtycrops,aswellas

vegetablesandfruitsthatcatertoabroadrangeofculturalpreferences.

Initially,thefundingtosetupthefarmers’marketcamefromthestate

healthdepartmentthroughaCaliforniaNutritionNetwork(CNN)grant,which

paidfortents,signs,andothercostsoforganizingthemarket.Thefarmers’

marketisheldintheparkinglotofacommunitycenter,whichdoesnot

chargerent.FEEDinturndoesnotchargefarmerstosellatthemarket.

Inthefirstyear,thefarmershadtheircropsplantedbyAprilandwereselling

atthefarmers’marketbyearlyJuly.Nowthefarmers’marketrunsweekly

betweenJuneandtheendofOctober.Alongwiththefarmers,students

fromalocalhighschoolsellplants,salsa,pastasauce,andflowers.The

SacramentoNaturalFoodsCo-opsellsdriedgrainsandbeans.Toboostthe

amountandvarietyoffruitatthemarket,onevendorsellsfruitthathas

beenpurchasedwholesale.

Inadditiontosellingfreshproduce,SoilBornFarmoverseesnutritioneduca-

tionactivitiesatthefarmers’marketandrunsthemarket’sElectronicBenefit

Transfer(EBT)systemtoredeemfoodstamps.TheDelPasoHeightsCom-

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munityFarmers’Marketistheonlycertifiedfarmers’marketinSacramento

CountythatacceptsEBT.Initssecondseasonofoperation,themarketdid

over$4,000inbusinessfromfoodstamps,WICbenefits,andSeniorFarmers’

Marketchecksalone.

Acriticalcomponentofthismarket’sefforts,includingthoserelatedto

acceptingEBT,hasbeencommunityoutreach.Marketingandnutrition

education(supportedbyfurtherfundingfromCNN)helpstoincrease

demandforthemarket’sproducts.MembersoftheFEEDcoalitionconduct

outreachthroughcookingdemonstrationsandnutritioneducationtwoto

threetimesaweekduringthemarketseason.Theyhavemailedinformation

directlytocommunityresidentsandrecruitedneighborhoodkidstohang

fliersondoors.ThrougharecentgrantfromTheCaliforniaEndowment,one

memberorganizationislookingintodevelopingaprogramwhereresidents

whoparticipateinanutritioneducationactivitycanreceiveacouponforfree

producefromthemarket.

Thefarmers’marketseeksnotonlytoservethecommunitybyincreasing

accesstofreshproduce,butalsotohelpdeveloplocalfarmers’income

andcapacity.SoilBornFarmprovidestrainingandtechnicalassistanceto

thefarmers,whichincludeshelpingthefarmersunderstandthenutritional

benefitsoftheircrops.Inadditiontosellingatthefarmers’market,some

farmersselltheirproducetoneighborhoodcornerstores,andonefarmer

sellsspecialtyherbstoanethnicrestaurant.

Communitieslookingtodevelopafarmers’marketshouldassesslocalneeds

andresourceswhenplanningtheinitialscopeoftheirofferings,suggests

MelissaGuajardo,aprogramdirectorattheHealthEducationCounciland

oneofthefoundersoftheDelPasoHeightsmarket.“Knowthatyoucanstart

small,”shesays.14 FEEDmembersandcommunityresidentsarenowthinking

aboutwaystoexpandtheirmarketbyaddingmorevendorsandselling,for

instance,meat,poultry,andpreparedfoods.


1 Supermarket Companies Seek Competitive Edge with Niche Market Stores and Specialty Services, According to New FMI Study,FoodMarketingInstitute,March20,2006(availableatwww.fmi.org/media/mediatext.cfm?id=803(lastvisited6/22/06).

2 A2002studyfoundthatsupermarketshuttlesmaybeaneconomicallyfeasiblemethodofincreasingsupermarketaccessforlow-incomeresidents.SeeSupermarket Shuttle Programs: A Feasibility Study for Supermarkets Located in Low-income, Transit-Dependent, Urban Neighborhoods in California,available athttp://socialmarketing-nutrition.ucdavis.edu/Downloads/ShuttleReport.pdf.

3 CommunityBenefitsAgreements,orCBAs,arelegallyenforceablecontractssignedbycommunitygroupsanddevelopersthatstipulatehowdevelopmentwillbenefitthecommunity.CBAscouldbeatooltomitigatenegativeimpacts(suchasincreasedtraffic)andincreasepositiveimpacts(suchaslocalhiring).

4 InterviewwithHankHerrera,PartnersThroughFood(2/10/06);See alsoManalJ.Aboelata,The Built Environment and Health: 11 Profiles of Neighborhood Transformation,ThePreventionInstitute,at10-14(July2004)available atwww.preventioninstitute.org/builtenv.html(lastvisited6/15/06).

5 Seeappendix3formoreinformationontheCommunityDevelopmentBlockGrant(CDBG)program.

6 Seechapter16formoreinformationonleakage.

7 Seeappendix3formoreinformationaboutenterprisecommunities.

8 BayAreaEconomics,South Vallejo Ethnic Food Store Feasibility Study,1996.

9 Seewww.lejyouth.org/youth_envision.php4#gnp.

10 L.Vitale,Fruteros organizing project: An innovative approach to reducing an environmental health hazard by using principles of asset-based community development,AmericanPublicHealthAssociation,available athttp://apha.confex.com/apha/132am/techprogram/paper_89734.htm(March2006).

11 InterviewwithMalaikaEdwards,founderofPeople’sGrocery(2/10/06).

12 SeetheCaliforniaDepartmentofSocialServices’ElectronicBenefitTransferProject,Farmers’MarketInformation:www.ebtproject.ca.gov/farmers.asp(lastvisited11/06/2006).

13 TheEcologyCenter,California Farmers’ Market Electronic Benefits Transfer (EBT) Implementation and Promotion Project,availableatwww.ecologycenter.org/ebt(lastvisited11/06/2006).

14 InterviewwithMelissaGuajardo,HealthEducationCouncil(11/06/2006).

WhatIsCommunityEconomicDevelopment? 35

Communityeconomicdevelopmentprogramsaimtoimproveeconomic

conditionsforanexistingcommunityofpeople.Thismightinvolveany

combinationofanumberofdifferenttypesofprograms,includingjobplace-

mentandtraining,smallbusinesssupport,affordablehousingdevelopment,

orincreasedaccesstoretailservices.

Regardlessofthespecificprogram,theoverallobjectiveistobetterintegrate

low-incomecommunitiesintothemainstreameconomyandtohelplow-

incomefamiliesaccesstheeconomicopportunitiesthatotherAmericans

takeforgranted.

Onethemethatrunsthroughmostcommunityeconomicdevelopment

programsisthegoalofrebuildingfailedneighborhoodeconomies.Mostof

theeconomicchallengesthatcommunitiesfacearetheresultofthefailureof

onekindofeconomicmarketoranother.Whenhousingpricesareartificially

lowinaconvenientlylocatedneighborhood,itcanbeseenasafailureofthe

housing market torecognizetherealvalueofthatarea.Whenpeoplewho

wantto(andcanaffordto)improvetheirhomesareunabletoobtainloans

becauseoftheirzipcode,thatcanbeseenasafailureofthecapital market:

ifthemarketwereworkingeffectively,someonewouldrecognizethatlending

tothatfamilywasanopportunity.Whenpeoplewithmoneytospendcan’t

findstoresintheirneighborhoods,thatrepresentsafailureinthe retail

market:ifthemarketwerefunctioningeffectively,someonecouldmake

moneybyopeningastoretoservethosepeople.

Communityeconomicdevelopmentprogramsattempttorebuildthese

brokenmarkets.Aneconomicdevelopmentprogramdoesnotneedto

providefinancingforeveryhomeimprovementprojectinacommunity–it

onlyneedstofinancethefirstfewtoshowprivatelendinginstitutionsthat

profitableloanscanbemade.Ajobprogramdoesnotneedtocreateanew

jobforeveryunemployedpersoninacommunity–bysuccessfullyplacing

someresidentsintoqualityjobs,theprogramcancreateastrongerconnec-

tiontotheregionallabormarketthatcanbenefittheentirecommunity.

5 What Is Community Economic Development?

SectionII


Rebuilding the Market for Healthy Food

Foodretailingisrisky,eveninprovenlocations.Investorsgenerallyexpect

higherreturnsinexchangefortakinghigherrisk.Inhistoricallyunderserved

communities,therisks–bothrealandperceived–maybesignificantly

greater.

Oncethemarketisproven,retailersmaycompeteforopportunitiestolocate

there.Buttogettothatpoint,someoneneedstotakearealriskandinvest

largeamountsofcapitalwithoutanyguaranteeofsuccess.Whilepotential

profitsofferretailerssomeinducementtotakeonthisrisk,theprofitsmay

notalwaysbeenoughtojustifytherisksinvolved–especiallyinthelow-

profitmarginbusinessoffoodretail.

Manycommunitieshavefoundthat,bysharingsomeofthecostsandrisks,

theycanimprovetheirchancesofattractingretailersandfarmers’markets

tounderservedlocationsandimprovetheoddsthatthosebusinesseswill

succeed.Imagineasupermarketconsideringalocationinalow-income

communitywithlowlandcostsbutpotentiallyhigherlaborandsecurity

costs.Thestorecan’tknowinadvancewhattheextrasecurityandlabor

costswillbe.Thestoremightopenandfindthatitsfearsabouttheftwere

exaggerated,sothetotalprofitcouldbemuchhigherthanexpected.Onthe

otherhand,ifsecuritycoststurnedouttobemuchhigherthanexpected,the

storemightbeforcedtoclose.

Inthissituation,ifthelocalgovernmentwereabletobuythissiteandmake

thelandavailableatanevenlowercostforanextendedperiodoftime,it

wouldbeeasierforthestoretochoosetolocateinthelow-incomecom-

munityandimprovethechancesthatitwouldstayopenthere.Eventuallythe

companywouldpayfullrentontheland,butinthemeantime,thesuccessof

thisinitialstoremightspurfurtherdevelopmentintheneighborhood.Inthe

sameway,alow-interestloanorgrantforbuildingrehabilitationfromalocal

governmentmightbethekeyfactorthathelpsasmallbusinessovercome

thehighstart-upcostsassociatedwithdoingbusinessinanunderserved

area.

Local,state,andfederalgovernmentshavedevelopedavarietyofeconomic

developmentprogramstohelpcommunitiessupportthedevelopmentof

newbusinessesinunderservedareas.(Theseprogramsarediscussedin

moredetailinchapter6.)Butwhileeconomicdevelopmentprogramshave

greatpotentialtoimprovefoodaccessinunderservedcommunities,advo-

catesshouldbeawareoftwoimportantcaveatsabouttheiruse:oversubsidy

anddisplacement.

WhatIsCommunityEconomicDevelopment? 37

Assessing the Economic Gap

Subsidyfromlocalorstategovernmentisoftenthedecidingfactorthat

makesretaildevelopmentinhistoricallydisinvestedcommunitiespos-

sible.Still,communitiesneedtobesurethattheyareonlyinvestinglocal

resourcestotheextentnecessarytomakedevelopmentpossible,andonly

inproportiontothepotentialbenefitsthatthecommunitywillrealizefrom

development.

Retailersanddeveloperswhoexaggeratetherisksoroverlooktheeconomic

potentialoflow-incomecommunitieswilloverestimatethesubsidynecessary

tomaketheseprojectsworkfinancially.Ifthepublicprovidesmoresubsidies

thannecessary,thebusinessownerswillearnexcessprofitswithouttaking

extrariskwhiledecreasingtheamountofpublicdollarsavailableforother

worthwhileprojects.

Governmentstaff,electedofficials,andcommunityadvocatesneedtoclosely

studytheeconomicsofapotentialdevelopmentprojectbeforedeciding

ontheappropriatelevelofpublicsubsidytomaketheprojectattractiveto

retailersandprivaterealestatedevelopers.

Protecting Against Displacement

Communitiesneedtobeconsciousoftherealitythatdevelopmentisnot

alwaysbeneficialtolow-incomepeople.Localeconomicdevelopmentagen-

ciesandredevelopmentagenciessometimesfallintothetrapofmeasuring

progressintermsofpropertyvalues.Inthisview,anyactionthatincreases

propertyvaluesisconsidered“economicdevelopment.”Whileincreased

propertyvaluescancreatebroadcommunitybenefits(forexample,by

helpingtopayforschoolsandparks),theycanalsoleadtohigherrentsand

ultimatelytothedisplacementoflow-incomehouseholds.

Buteconomicdevelopmentdoesnothavetoleadtodisplacement.The

distinctionscanbedifficulttodraw,butdifferentkindsofdevelopment

benefitdifferentpeople,andcommunitiescanbecarefultopursueimprove-

mentsthatstrengthentheexistingcommunityandavoidthosethatthreaten

it.Anyimprovementislikelytoraisepropertyvalues,butdepressedproperty

valuescanrisewithoutleadingtorunawaylandspeculation.

Considerthedifferencebetweenthedevelopmentofasupermarketandthe

developmentofartgalleries.Thesupermarketwillprovideaservicetolocal

residentsandmayleadtonewbusinessesmovingintotheareatoserve

thesameconsumers.Artgalleriescouldhelpattractanentirelynewgroup

ofmuchwealthierpeopletotheareaandleadtorapidchangesinproperty

valuesandwholesaledisplacementoflower-incomeresidents.


Ontheotherhand,whilethesuccessfuldevelopmentofasupermarketcan

certainlyincreasepropertyvaluesandmayattractsomeslightlyhigher-

incomefamiliestothearea,theimpactislikelytobegradualandmodest.

Similarly,thedevelopmentofmoderatelypricedhomeownershipopportuni-

tiescanstrengthenapoorcommunitybyincreasingtheincomemix,while

thedevelopmentofluxurycondoscanthreatentheexistingcommunity’s

existencewhileofferingitveryfewbenefits.

TypesofCommunityEconomicDevelopmentPrograms 39

Economicdevelopmentprogramsgenerallytakeoneofthreeapproaches:

4Afirm-orientedapproach,inwhichindividualbusinessesreceiveassis-

tancetohelpthemgrowandultimatelybenefittheentirecommunity

4Aplace-based approach,inwhichadecliningorat-riskareareceives

targetedinvestmenttopreventorcounteractlong-termdisinvestment

4Apeople-orientedapproach,inwhichcertaindisadvantagedorat-risk

populationsaretargetedforjobdevelopmentorskillstraining

Withineachgeneralapproach,therearemanyindividualprograms.These

programscanbeusedintandemaswell.

6 Types of Community Economic Development Programs

ECONOMICDEVELOPMENTSTRATEGIES

Firm-BasedStrategies Place-BasedStrategies People-BasedStrategies

BusinessAttraction

BusinessAssistance

BusinessDevelopment

RedevelopmentCommercialRevitalization

EmploymentDevelopment

Microenterprise

JobCreation

JobTraining

JobPlacement


Firm-Based Strategies

Business Attraction

Businessattractionreferstoeffortstoencouragebusinessestolocatewithin

acityorneighborhood.Thisisdonethroughanumberofstrategiesdesigned

tohelpacitycompetewithotherlocationsthebusinessmaybeconsidering.

Thesestrategiesrangefromtaxabatementstoinfrastructureimprovements

tomarketingschemesdesignedtoreinforceapositiveimageforthearea.

Businessattractionstrategiescanbetailoredtoappealtoavarietyof

businesses,fromlargecorporationstoindividuallyownedsmallbusinesses.

Itcaninvolvegeneraleffortstopromoteanareaforanybusiness,orit

canfocusonspecificbusinessesthataremostlikelytomakeapositive

contributiontotheexistingcommunity.Forexample,manyprograms(like

RetailChicago,describedinchapter2)focusonattractinggroceryretailersto

underservedneighborhoods.

Business Assistance

Businessassistanceattemptstosupportexistingbusinessesandhelpthem

grow.Businessassistanceprogramstrytoconnectsmallbusinesseswith

technicalresourcessuchasfinancialplanning,marketing,productdevelop-

ment,andaccountingservices.Manyprogramsalsocoordinatebusiness

expansionfinancingforassistedbusinesses.Smallbusinessassistanceis

usuallyofferedthroughlocalgovernmentactorssuchasthesmallbusiness

commission,thechamberofcommerce,ortheeconomicdevelopmentor

communitydevelopmentdepartmentofthecitygovernment.Thefederal

SmallBusinessAdministrationworksthroughmanyoftheselocalprograms

toofferfinancingandtrainingtomanysmallbusinesses.

Business Development

Businessdevelopmentprogramseasetheentryofsmallbusinessesintoa

community,makingitmorelikelythatnewbusinesseswillbesuccessful.

Manyprogramsofferassistanceindevelopingstart-upbusinessand

marketingplansoracquiringstart-upfinancing.(Forexample,inHolyoke,

Massachusetts,anorganizationcalledNuestraRaicesoffersasmallcom-

mercialkitchentoentrepreneurswhoarebuildingfood-relatedbusinesses.

Oneoftheseentrepreneursnowownshisownartisanalbakeryandemploys

severalcommunitymembers.)1Microenterpriseprograms(seePeople-Based

Strategies)providethesesameservicestolow-incomeindividualsstarting

verysmallbusinesses.


Place-Based Strategies

Redevelopment

Redevelopmenttypicallyinvolvesthephysicaland/oreconomicrebuilding

ofdisinvestedneighborhoods.Inmostcasesthismeanstheremovalof

blighted,abandoned,orevencontaminatedproperties,theconstruction

ofnewhousingorcommercialfacilities,andthereconstructionofbasic

infrastructuresuchasstreets,sewers,andsidewalks.

InCalifornia,statelawauthorizesthecreationoflocalredevelopment

agenciesthataregivencertainspecialpowersenablingthemtobringabout

thiskindoflarge-scalephysicaltransformation.Amongthesepowersisthe

abilitytoforcethesaleofprivatepropertythroughthepowerofeminent

domainandtheabilitytoutilizetaxincrementfinancingtopayforimprove-

mentefforts.SectionIIIofthistoolkitgoesintomoredetailabouthow

California’sredevelopmentlawhashelpedcommunitiesattractandretain

grocerystores.

Commercial Revitalization

Commercialrevitalizationprogramsattempttobring

economiclifebacktostrugglingcommercialdistrictsor

corridors.Thebusinessesinthesecommercialcorridors

havetraditionallybeensmallbusinessesprimarilyowned

byandemployingneighborhoodresidents.Theyallow

convenientaccesstodailyessentialsforallcommunity

membersandcontributetoavibrantneighborhood

economy.

Commercialrevitalizationprogramsfocusondeveloping

districtswherebusinessescanlocatesuccessfullyand

increasingtheabilityofbusinessestoprovidejobsandentrepreneurial

opportunitiesforlocalresidents.Theyaccomplishthesegoalsbyimproving

theappearanceofthestreetscape(street,sidewalk,andbuildingfaçades),

strengtheningsafetyandmaintenance,attractingnewbusinesses,and

promotingtheareatopotentialcustomers.

Oftentimes,localgovernmentwillworkincollaborationwithcommunity

groupstospearheadtheseefforts,organizingandattractingpublicand

privateinvestmentuntilaneighborhood-basedcollaborationcanmanagethe

programindependently.Forexample,whenanewsupermarketopenedin

theJamaicaPlainneighborhoodinBoston,thecity’seconomicdevelopment

officialsworkedwiththesupermarketcompanytofundfaçadeimprove-

mentsandotherformsoftechnicalassistanceaspartofacomprehensive

commercialrevitalizationstrategy.


People-Based Strategies

Microenterprise

Microenterpriseprogramstargetentrepreneurswhofacedifficultyaccessing

traditionalcapitalforassistanceandloanstostartsmall(oftenin-home)

businessesandimprovetheireconomiccondition.Microlendingagenciesare

mostcommonlyprivatenonprofitsinitiatedbycommunity-basedorganiza-

tionsorneighborhoodgroups.Theloanrecipientsaregenerallylow-income

andhavelittleornocollateraltoputdownagainsttheloantheyreceive.

Theloansareverysmall,andtheyareoftencoupledwithbusinesstraining

intendedonlytoallowtherecipient’sbusinesstoattainalevelofsuccess

necessarytoobtainmainstreamfinancialproducts.

Employment Development

Jobcreationprogramsaimtocreatenewjobsforworkersincertaintargeted

categories.Someprogramsinvestpublicmoneyinnewbusinessesor,more

often,infacilitiesforbusinessesthatcreatenewjobsfordifficult-to-employ

individuals.Thefederalgovernmentofferstaxcreditstoemployersforhiring

certaindifficult-to-employworkers.2Therearealsostateprograms,suchas

theCaliforniaEnterpriseZoneHiringTaxCredit,whichoffertaxdeductions

foremployersthathireworkersfromtargetedgroups.Localgovernments

sometimesofferjobcreationincentivessimilartothosedescribedabove.

Jobtrainingprogramstrytogiveworkerstheskillstheyneedinorderto

receivehigh-qualityemploymentopportunities.Suchtrainingoftentargets

skill-buildingapplicabletoindustriesthatdemandagreatdealoflabor

inthatcommunityandcanemployalargenumberofgraduatesfrom

trainingprograms.California’sOne-StopCareerCentersoftenlinkpotential

participantswiththetrainingprogramsrunintheirareabyeitherprivateor

publicagencies.Additionally,somegovernmentprogramsofferincentivesto

employerstoprovideon-the-jobtrainingtoemployeesthatwouldotherwise

notbehired.ThePrivateIndustryCouncilofSanFrancisco’sOn-the-Job

Trainingfinancialassistanceprogramandcustomizedtrainingsubsidyisone

suchprogram.

Jobplacementprogramsconnectemployerswithemployeeswhohave

neededskillsbutmaynotknowaboutworkopportunities.Theseprograms

canbeprivateorpubliceffortsanddependgreatlyonthejobplacement

institution’sabilitytoestablishatrustingrelationshipwiththeemploying

institution.InCalifornia,twostatewideprogramsattempttoplaceemployees.

TheOne-StopCareerCenterscollaboratewithemployment-trainingproviders

inthecommunityandprovideaone-stopresourceforemployersandjob


seekerstofindoneanotherthroughtheirCareerLinkCenters.3Theother

statewideprogram,CalJobs,allowsjobseekerstoentertheirskillsand

experienceintoarésumédatabaseforemployerstoview.

1 Seehttp://nuestras-raices.org(lastvisited11/3/06).

2 ExamplesincludetheWelfaretoWorktaxcredit(afederalincometaxcreditforemployerswhohirelong-termwelfarerecipients)andtheWorkOpportunityTaxCredit(afederalincometaxcreditforemployerswhohireemployeesfromtargetedgroupsincludinghigh-riskyouth,ex-offenders,andpeoplewhoreceivefoodstamps,TemporaryAssistanceforNeedyFamilies,orSupplementalSecurityIncome).

3 Seewww.picsf.org/about/career_link.htm(lastvisited11/28/06).

EconomicDevelopmentInstitutions 45

Economicdevelopmentworkiscarriedoutinlocalcommunitiesbyanumber

ofinstitutions.Thespecificrolesofeachvaryquiteabitfromonecommunity

tothenext,butsomeofthemorecommontypesoforganizationsare

describedinthischapter.

Local Government Economic Development Agencies

Mostcitiesandcountieshavesomekindofeconomicdevelopmentprogram.

Largecitiesmayhavealargeandwell-staffedeconomicdevelopmentdepart-

ment.Smallercommunitiesmayincludeeconomicdevelopmentwithina

broadercommunitydevelopmentdepartmentorevenaplanningdepartment.

Manycommunitieshavemorethanonedepartmentwithsignificant

economicdevelopmentresponsibilities.(InSanFrancisco,forexample,the

Mayor’sOfficeofEconomicandWorkforceDevelopment,theMayor’sOffice

ofCommunityDevelopment,andtheSanFranciscoRedevelopmentAgency

allmanageeconomicdevelopmentprograms.)Localportauthoritiesand

speciallycreatedeconomicdevelopmentcorporationsmightalsooperate

importanteconomicdevelopmentprograms.

Localgovernmentsoftencoordinatefinancingandtaxincentiveprograms

designedtohelpattractnewbusinessesandhelpexistingbusinesses

expand.Whiletheseprogramsareoftenavailabletoanybusinessthathas

thepotentialtocreatejobs,somecommunitiesoperatespecialprograms

targetingspecificindustriessuchasbiotech.Othercommunitiesoperate

programsspecificallyfocusedonattractingandsupportingretailbusinesses

andevensupermarkets.Inaddition,localgovernmentsfrequentlyoperate

orprovidefundingforjobtrainingandplacement,smallbusinesstechnical

assistance,commercialdistrictrevitalization,andsimilarprograms.

Small Business Assistance Agencies

Smallbusinessdevelopmentcenters,businessdevelopmentcorporations,

andothernonprofitagenciesworkinginclosecoordinationwithlocalgovern-

mentoftenprovidedirectfinancialandtechnicalassistancetolocalsmall

businessoperators.Theseagenciesoftenadministerprogramssupported

7 Economic Development Institutions


bythefederalSmallBusinessAdministrationaswellaslocalcityorcounty

programs.Someoftheseagenciesoperateloanprograms;othersoffer

loanpackagingservices,whichinvolvesmeetingwithbusinessoperators

andevaluatingtheircapitalneeds,andthenhelpingthempulltogetherall

thematerialanindependentfinancialinstitutionwillneedtomakealoan

decision.Mostsmallbusinessassistanceagenciesalsoofferclassesand

one-on-onecounselingtohelpbusinessesdevelopbusinessplans,market-

ingstrategies,personnelplans,andtechnologystrategies,andtoaddress

otherkeyissues.1

Economic Development Corporations

Manylocalgovernmentshaveestablishedquasi-independenteconomic

developmentcorporationstomanagetheirvariousbusinessincentive

programsandcoordinatebusinessattractionefforts.Someofthesecorpora-

tionsserveasinglejurisdiction,whileothersareregionalinscopeand

receivefundingfromseveraltownsorcounties.2

Community Development Corporations

Communitydevelopmentcorporations(CDCs)arenonprofitorganizations

establishedtocoordinatetheeconomicrevitalizationoflow-incomecom-

munities.CDCsgenerallyfocusonaspecificgeographicarea,whichmight

beassmallasasingleurbanneighborhoodoraslargeasseveralrural

counties.ManyCDCsoperateprogramsinvolvingsmallbusinessassistance,

jobtrainingandplacement,neighborhoodsafety,communityorganizingor

neighborhoodplanninginitiatives,andthelike.

MostCDCsalsoplayanactiveroleinrealestatedevelopment.Manydevelop

affordablehousingandothercommunityfacilities,pullingtogetherprivate

andpubliccapitaltobuylandandfinancetheconstructionofnewhomes,

apartments,childcarecenters,healthclinics,andsometimesretailstores.

Becauserealestatedevelopmentisbothriskyandexpensive,successful

CDCshavestaffwithspecializedskillsandexperience.

Job Training and Placement Agencies

Mostcommunitieshaveoneormoreagenciesthatoperatejobtrainingand

placementprograms.Theseorganizationsfrequentlyofferone-on-onecareer

counseling,testing,andbasictrainingonjobsearchskills.Manyalsooffer

trainingingeneralskillslikecomputer/wordprocessingorworkplaceEnglish

asasecondlanguage.Someoffercareer-specifictrainingtoprepareclients

forspecificjobsingrowthoccupations.

EconomicDevelopmentInstitutions 47

Someorganizationshelpmatchclientstoemployersand,insomecases,

evenactastemporarystaffingagencies.Someofferservicesforalljob

seekers,whileothersfocusontheneedsofaspecifictargetpopulationsuch

aswelfarerecipients,limitedEnglishspeakers,orpeoplewithdisabilities.

Generallytheseprogramsareoperatedbynonprofitorganizations.Manyjob

programsarerunbysmallcommunity-based(orfaith-based)organizations,

whileothersarerunbylargemultistateemploymentdevelopmentnonprofits.

JobtrainingprogramsmayberunbylocalCDCs.Agrowingnumberof

employmentprogramsarebeingrunbyfor-profitcompaniesundercontract

withlocalorstategovernments.

Business Organizations

Localchambersofcommerce,merchants’associations,andbusiness

councilsoftenoperateeconomicdevelopmentprogramsaswell.Insome

areas,thegrocers’associationwillplayaroleinadvocatingforpoliciesthat

promoteeconomicdevelopment.Oftentheseentitiesfocusonpublicpolicy

initiativesthatsupporteconomicgrowth,buttheysometimesalsolead

businessattractionefforts(promotionalactivitiesdesignedtostrengthenthe

businessenvironment)aswellasothercleanupandsafetyprograms.

1 TheSmallBusinessAdministrationmaintainsalistoflocalpartneragenciesthroughoutthecountryatwww.sba.gov(lastvisited6/15/06).

2 TheCaliforniaAssociationforLocalEconomicDevelopmentmaintainsalistofeconomicdevelopmentcorporationsatwww.caled.org/03_corps.shtml(lastvisited6/15/06).

FinancingSources 49

Local Government

Cityandcountygovernmentsoftenadministerprogramsforeconomic

development.Sometimestheseprogramsarefundedwithlocalresources;

inothercases,localagenciesreceiveblockgrantsofstateorfederalfunds,

whichtheycantheninvestinlocalprojects.Checkwithyourgovernment’s

economicorcommunitydevelopmentdepartmenttofindoutwhatprograms

areofferedinyourarea.1

Someofthemorecommonlocalprogramsarelistedbelow.Seeappendix3

formoreinformationabouteachoftheseprograms.

CommunityDevelopmentBlockGrant(CDBG)Program Oneofthemost

commonsourcesoffundingforlocaleconomicdevelopmentprojects,CDBG

isafederalprogramadministeredbytheU.S.DepartmentofHousingand

UrbanDevelopment(HUD).Itprovidesfundstostateandlocalagenciesto

investinlocalprojects.

Section108LoanProgram Localgovernmentscanmakeverylowinterest,

federallyguaranteedloanstoeconomicdevelopmentprojectsthroughthis

program,whichisalsoadministeredthroughHUD.

TaxIncrementFinancing Alocalredevelopmentagencycanfinanceaproject

byborrowingmoneyagainstfuturetaxincomethatislikelytobegenerated

asthedesignatedredevelopmentareaimproves.(Seechapter11.)

CommunityFacilitiesDistricts Alocalgovernmentcanestablishaspecial

taxdistrictandassessataxagainstallpropertyinthedistricttopayfor

capitalimprovementprojects,suchassewerandwatersystems.

Tax-ExemptBonds/IndustrialDevelopmentBonds Localgovernmentscan

issuebondstofinancecommunityorindustrialfacilities.Investorsinthese

bondsreceivetax-freeinterest,whichallowsthegovernmentagencytolend

moneytotheprojectsatverylowinterestrates.

BusinessImprovementDistricts Propertyownersormerchantsinagiven

businessdistrictcanvotetoimposeasmalltaxonbusinesseswithinthat

8 Financing Sources


district.Thetaxiscollectedbylocalgovernment,buttheproceedsare

managedbylocalstakeholdersandspentonfaçadeimprovements,cleanup,

safety,marketing,andotheractivitiesintendedtoimprovebusinesscondi-

tionsinaverytargetedarea.

State Government

TheStateofCaliforniaoffersawiderangeoffinancingtoolsdesignedtohelp

localcommunitiesmeettheireconomicdevelopmentgoals.Stateprograms

offerloans,grants,loanguarantees,taxcredits,andotherbusinessincen-

tivesaswellastechnicalassistanceforeconomicdevelopmentprojects.

Stateretirementfundsalsoofferequityinvestmentsforqualifiedrealestate

developmentprojects.Thestatealsoadministersseveralfederalprograms

suchasCDBGandSection108(brieflydescribedearlierinthischapter)on

behalfofthestate’ssmallercommunities.2

Someofthemorecommonstateprogramsarelistedbelow.Seeappendix3

formoreinformationabouteachoftheseprograms.(Ingeneral,themajority

oftheseprogramsaremostappropriateforlargersupermarketdevelopment

projects.)

Tax-ExemptBondFinancing Statescanissuetax-exemptbondstohelp

financelarge-scaleprojects.Abondisissuedaslong-termdebt,andthe

proceedsfromthesaleofthisdebtarechanneledintoprojectsthatthestate

deemsnecessary.Thereareseveraltypesoftax-exemptbonds–including

generalfundbonds,whichareissuedtosupportongoingprogramsor

governmentactivitiesandarerepaidfromthestate’sgeneraltaxreceipts,

andrevenuebonds,whichareusedtofinancespecificprojectswithrepay-

mentproceedsgeneratedbytheprojectitself.Forexample,bondsissuedto

financeabridgemightberepaidfromtollrevenue.

EnterpriseZones TheStateofCaliforniahasdesignated39stateenterprise

zones.Businessesthatlocateintheseeconomicallydisadvantagedareasare

eligibleforanumberofspecialtaxbenefits.

PublicEmployeePensionFunds Stateemployeepensionfundsare

managedbyquasi-independententitiesthatinvestthefundsinarangeof

short-andlong-terminvestments,includingcommunityeconomicdevelop-

mentprojects,thatmeettheirfinancialgoals.Theseinvestmentscanbe

loansofferinglow-ormarket-interestrates,orequityinvestmentsgenerating

highratesofreturn.

PennsylvaniaFreshFoodFinancingInitiative

In2004andagainin2005,thePennsylvania

legislatureapproved$10milliontolaunch

theFreshFoodFinancingInitiative,aprogram

toincreasethenumberofsupermarkets

orothergrocerystoresinunderserved

communitiesacrossPennsylvania.

Theinitiativewascreatedinresponsetoa

campaignledbyTheFoodTrust,aPennsyl-

vanianutritionadvocacyorganization.The

FoodTrustbuiltpublicconcernovertheissue

byinvolvingleadersfromthesupermarket

industry,localgovernment,andthepublic

healthcommunityinataskforcecharged

bycitycouncilwithdevelopingpublicsector

responsestotheproblem.

ThestateofPennsylvaniahaspartneredwith

threenonprofitstomanagetheinitiative:The

FoodTrust,theReinvestmentFund,andthe

GreaterPhiladelphiaUrbanAffairsCoalition.

Thefundprovidesloansfornewsupermar-

ketsorrealestatedevelopmentprojectsthat

includesupermarketsorotherfreshfood

retailers.Theinitiativealsomakesgrantsof

upto$250,000tosupermarketoperatorsin

underservedcommunitieswhereinfrastruc-

turecostsandcreditneedscannotbefilled

solelybyconventionalfinancialinstitutions.

Theinitiativealsoprovidestechnical

assistanceandworkforceservicestoits

borrowersandgrantees.

AsofSeptember2006,theinitiativehad

committed$7.3millioningrantsandloansto

finance14supermarketprojects.3

FinancingSources 51

Federal Government

Thefederalgovernmenthasseveralprogramsadministeredthroughfederal

departmentsthataremeanttoaidintherevitalizationofstrugglingcommu-

nitiesandbusinesses.Mostoftheseprogramsofferlargeamountsofmoney

appropriateforlargeprojects.Manyfederalprogramsprioritizejobcreation

asarequirementforreceivingfunding.Insomecases,projectswithstrong

supportfromlocalcongressionalofficesaremorelikelytoreceivefederal

funding.

Federalfundscantaketheformofloans,grants,ortechnicalassistance,

sometimesacombinationoftwoofthese.Manytimesfederalfundsare

block-grantedtostateorlocalgovernments,whichthenmakesmaller

investmentsinlocalprojects.4

Someofthemorepopularfederalprogramsarelistedbelow.Seeappendix3

formoreinformationabouteachoftheseprograms.

NewMarketsTaxCredits(NMTC) Thesetaxcreditsaredistributedbythe

U.S.TreasuryDepartmenttospeciallydesignatedcommunitydevelopment

entities(CDEs)inreturnfortheirinvestmentinnonresidentialdevelopment

projectsinlow-incomeareas.Theseinvestmentsgenerallytaketheformof

low-interestloansorequityinvestmentsinprojectslocatedinlow-income

censustracts.

HistoricTaxCredits Thefederalgovernmentallowsdeveloperstoclaimatax

creditwortheither10percentofthecostofrehabilitationforbuildingsbuilt

before1936or20percentofthecostforbuildingsonthefederalregisterof

historicplaces.

EconomicDevelopmentAdministration(EDA) ThisunitoftheU.S.Depart-

mentofCommercemanagesseveralprogramsdesignedtosupportprojects

thatcreatejobopportunitiesineconomicallydistressedcommunities.Over

$250millionwasavailablethroughEDAgrantprogramsin2006.

OfficeofCommunityServices(OCS) TheOCSUrbanandRuralCommunity

EconomicDevelopmentprogramoffersgrantsofupto$700,000forbusiness

developmentorcommercialrealestateprojectsthatarelikelytoresultinthe

creationofnewjobsforlow-incomepeople.

U.S.DepartmentofHousingandUrbanDevelopment(HUD) HUDmanages

severalprogramsthatmakegrantsandloanstolocaleconomicdevelopment

projects,includingtheCommunityDevelopmentBlockGrantsprogram,

BrownfieldsEconomicDevelopmentInitiative,federalEnterprise/Empower-

mentZoneprograms,andspecialCongressionalgrants.

SmallBusinessAdministration(SBA) TheSBAoperatesanumberof

programsdesignedtofacilitatefinancingforsmallbusinesses.


Community Development Financial Institutions

CDFIsaresociallymotivatedlendersthatexisttoprovidefinancingforproj-

ectswithclearsocialbenefitsthatwouldhavedifficultyaccessingtraditional

financing.MostCDFIsofferlowerinterestratesandmoreflexibleloanterms

thantraditionalbanks.CDFIsarefrequentlywillingtoprovideloansthatare

“secondary”toatraditionalbankloan,meaningtheyarerepaidonlyafterthe

bankispaidoffinfull.

Nationalnonprofitintermediariesarenonprofitorganizationsthatprovide

financingandintensivetechnicalassistancetolocalorganizationsworkingto

improvetheircommunities.

Communityloanfundsarelocalnonprofitsthatgenerallyseekfundsfrom

sociallymotivatedinvestorsandlendthemoneytononprofit-sponsored

projectsintheirlocalcommunity.

Communitydevelopmentbanksareprivate,for-profitbankschartered

specificallyforthepurposeoffinancingtherevitalizationofdistressedor

underservedcommunities.Chicago’sSouthShoreBankisthelargestand

oldestcommunitydevelopmentbank,butanumberofsmallerlocalbanks

havebeenestablishedthroughoutthecountryonasimilarmodel,including

Oakland’sCommunityBankoftheBay.

Private Foundations

Someurbangrocerystoreredevelopmentprojectshavereceivedfunding

ofonesortoranotherfromlocalornationalcharitablefoundations.Forthe

mostpart,foundationsdon’tsolicitfundingproposalsforcommercialreal

estateprojectsperse.Instead,mostendupfinancingaprojectbecause

ofalong-standingrelationshipwiththeprojectsponsor(orsometimesa

nonprofittenant)andarecognitionoftheimpacttheprojectislikelytohave

onanissuethatisimportanttothefoundation.Forexample,afoundation

interestedinyouthdevelopmentissuesmightbemorelikelytofunda

buildingthatincludedyouthprograms,whileanotherfunderwithaninterest

ineconomicdevelopmentmightbemorelikelytofundaretailproject.

Foundationscanprovideoutrightcapitalgrantstohelppaydevelopment

costs,grantsforpredevelopmentexpenses,orfundsforstaffingorconsul-

tantstocoordinateprojectdevelopment.Somefoundationsofferprogram-

relatedinvestments(PRIs),whicharegenerallyverylowinterestloansfor

projectsthatfurtherthefoundation’sprogrammission.

Inadditiontomanylocalfoundations,anumberoflargernationalfounda-

tions–includingtheFordFoundation,theFannieMaeFoundation,the

RockefellerFoundation,theSurdnaFoundation,andtheCalvertFoundation

FinancingSources 53

–haveinvestedinnonprofit-sponsoredcommercialdevelopmentprojects.5

InCalifornia,theJacobsFoundationmadeaverysubstantialinvestmentin

MarketCreekPlaza,asupermarket-anchoredneighborhoodshoppingcenter

inSanDiego.6

Private Banks

Privatebanksandothertypesofdepositoryinstitutions(banks,creditunions,

etc.)arerequiredbyafederallaw,theCommunityReinvestmentAct(CRA),

toinvestinthecommunitiestheyserve,includingmoderate-andlow-income

neighborhoodswithintheirserviceareas.Thegovernmentperiodically

evaluateseachinstitution’sperformanceinthiseffort,rewardingthem

forincreasingtheiractivitiesineconomicallydistressedcommunitiesand

investingincommunitydevelopmentfinancialinstitutions.Institutionswith

poorcommunityreinvestmenttrackrecordsfacedifficultywhentheyapply

forexpansionsormergers.

Becauseofthis,alllocalbankscommitmoneyforCRAinvestments,which

typicallygotoeconomicrevitalizationprojectsinlow-andmoderate-income

areasandtaketheformofbothloansandgrants.Everymajorbankhasa

CRAofficertowhominquiriesaboutthebank’sCRAprojectsandtheavail-

abilityofCRAfundsshouldbedirected.

1 TheU.S.DepartmentofCommercemaintainsalistoflocaleconomicdevelopmentagenciesatwww.eda.gov/AboutEDA/Edevdirectory.xml(lastvisited6/15/06).

2 Thestatetreasurer’sofficecompilesanannualoverviewofstateprogramsthatsupportcommunityrevitalization.Formoreinfor-mation,seewww.treasurer.ca.gov/cdiac/tools/2005tools.htm(lastvisited6/15/06).

3 TheFoodTrust,Pennsylvania Fresh Food Financing Initiative,available atwww.thefoodtrust.org/pdf/FFFI%20Program%20Guidelines%20with%20Applications.pdf (lastvisited6/8/06).

4 Formoreinformationabouttheseandmanyotherfederalfundingprograms,seewww.federalgrantswire.comorwww.grants.gov(lastvisited6/15/06).

5Foradatabaseofgrants,seetheGrantsmanshipCenteratwww.tgci.comortheFoundationCenteratwww.fdncenter.org(bothlastvisited6/15/06).

6 Seewww.marketcreekplaza.comforadescriptionoftheroleoftheJacobsFamilyFoundationinthedevelopmentofMarketCreekPlaza(lastvisited10/30/06).

OverviewofRedevelopmentLaw 55

Whileavastnumberofeconomicdevelopmenttoolsandfinancingsources

exist,manyarecontrolledbydistantfederalorstateagenciesandare

difficulttoaccess.InCalifornia,redevelopment agencies–createdand

administeredbylocalcitiesandcounties–areamongthemostsignificant

potentialsourcesofsupportforfoodaccessprojects.

Redevelopmentagencieshaveaccesstouniquefinancingmechanismsthat

areotherwisenotavailabletocitiesandcounties.Themostimportantof

theseistax increment financing,whichallowstheredevelopmentagencyto

usetheincreasedpropertytaxesthatresultfromredevelopmentprojects

torepaydebtsincurredinfinancingsuchprojects(seechapter11).This,

togetherwithotherpowersthatstatelawgrantstoredevelopmentagencies,

makesredevelopmentoneofthestrongesttoolsavailabletoincreasefood

accessinlow-incomecommunities.

Redevelopmentagencieshavegreatflexibility.Theycan,forexample,

provideland,grants,orinvestmentcapitaltoinducethedevelopmentof

supermarkets.Theycanprovidebusinessfinancingtosupportsmallstore

improvementprojects,ortheycanprovideoperatinggrantstosupport

farmers’markets.1

Butredevelopmentagencieshavemanycompetingpriorities,andmost

agencieshavenotplacedastrongemphasisonimprovingfoodaccess.

Healthadvocatesmayneedtoactivelyengageagencystaff,electedofficials,

andthebroaderpublicinordertosecureagencysupportforimportantfood

accessprojects.

ThischapterprovidesadetailedoverviewofCaliforniaredevelopmentlawin

ordertogivehealthandnutritionadvocatesabroadenoughbackgroundto

beeffectiveinadvocatingforfoodaccessasapriorityforlocalredevelop-

mentagencies.

What Is Redevelopment?

StatelawallowseachcityandcountywithinCaliforniatoestablisharede-

velopmentagencytooverseetheredevelopmentofurban,blightedareas

withinthatcommunity.Whilethegoverningbodyforredevelopmentagencies

9 Overview of Redevelopment Law

SectionIII


typicallyconsistsofthelocalcitycouncil/boardofsupervisors,andsuch

agenciesaretypicallystaffedbycity/countypersonnel,theagencyitselfis

technicallyconsideredanindependentstateagency.

Redevelopmentagencies,whichhavebeenestablishedbymostcitiesand

roughlyhalfthestate’scounties,havebroadauthorityoverredevelopment.

Theyexercisethatauthoritylargelythroughtheadoptionandimplementa-

tionofredevelopmentplansthatidentifyblighted“projectareas”inneedof

improvement.

Inenactingthecommunityredevelopmentlawthatgovernssuchagencies,

theCalifornialegislaturehasimplicitlyrecognizedtheimportanceofaccess

tohealthyfoodforimprovingsuchneighborhoods.Thelawexplicitlystates

thatoneofthedefiningcharacteristicsofblightis“alackofnecessary

commercialfacilitiesthatarenormallyfoundinneighborhoods,including

grocerystores.”2

How Did We Get Here? A Brief History of Redevelopment Law in California

California’sCommunityRedevelopmentAct(CRA)wasenactedin1945to

addressblightanddecayinCaliforniacities.Inthepostwarera,public

officialsatthefederal,state,andlocallevelsweregreatlyconcernedabout

theconditionoftheexistinghousingstock,thelackofhousingforreturning

soldiers,andurbanblight.3

TheCRAauthorizedcitiesandcountiesinCaliforniatoestablishredevelop-

mentagencies,gavetheseagenciestheauthoritytoaddressurbandecay,

andenabledtheagenciestoapplyforgrantsandloansfromthefederal

government.

Italsogavetheagenciestoolswithwhichtoaddressblight,whichincluded:

4Theauthoritytoacquirerealproperty,including,ifnecessary,thepowerto

useeminentdomain

4Theprerogativetodevelopthepropertyacquired(however,agenciesare

notpermittedtoconstructbuildingsthemselves)

4Theauthoritytosellrealpropertywithoutbidding,unlikemostpublic

sales

4Theright–andtheobligation–torelocateownersandtenantsofproperty

acquiredbytheagency

4Theabilitytofinancetheiroperationsbyborrowingfromfederalorstate

governmentsandbysellingbonds

OverviewofRedevelopmentLaw 57

4Thepowertoimposelanduseanddevelopmentcontrolspursuanttoa

comprehensiveplanofredevelopment

In1951,theCRAwascodifiedandrenamedtheCommunityRedevelopment

Law.4Atthesametime,theauthorityfortaxincrementfinancingwasadded,

althoughitwasdependentupontheapprovalofastateconstitutional

amendment,whichwasgrantedbythevotersin1952.

TheCRAhasbeenamendedregularlysince1951,withmajorchangesmade

in1978afterthepassingofProposition13,againin1994,andmostrecently

in2006.However,therationale(toaddressurbanblight)andthemechanism

(theestablishmentofanagencywithspecialfinancingauthority)havenot

changed.

Overtime,theestablishmentofredevelopmentagencieshasbecome

commoninCalifornia.By1976,redevelopmentprojectareashadbeen

establishedineverymajorurbanareaofthestate.5In1994,therewerea

totalof385redevelopmentagenciesinCalifornia;in2002,thatnumberhad

increasedto413.6Ofthe152citieswithpopulationsover50,000,92percent

hadactiveredevelopmentagencies,and137citieswithpopulationsunder

25,000hadsuchagenciesaswell.7

1 Notethattaxincrementfinancingcannotbeusedtoprovideoperatinggrantsforfarmers’markets.

2 Cal. Health & Safety Code§33031(b)(4)(2006).

3 D.Beattyetal.,Redevelopment in California,at1(SolanoPress2004).

4 Cal Health & Safety Code§33000etseq.(2006).

5 D.Beattyetal.,supranote3,at6.

6 Ibid.

7 Ibid.

LegalRequirementsforRedevelopment 59

RedevelopmentlawinCaliforniaisextremelycomplex.Onewaytobreakit

downintomoremanageablesectionsistothinkaboutthethreecomponents

ofthelaw:therequirementsforestablishingaredevelopmentagency,the

establishmentofaredevelopmentarea(includingaredevelopmentplan),

andtheimplementationofaredevelopmentplan.Eachoftheseprocessesis

describedinthischapter.

Notethatdifferentrulesapply,dependingonwhentheagencywasestab-

lished,whenaspecificredevelopmentplanareawasestablished,andsoon.

Thisisnecessarilyageneraloverview.Formoredetailedinformation,several

goodresourcesexist;seeappendix3formoreinformation.

What Are the Legal Requirements for a Redevelopment Agency?

California’sCommunityRedevelopmentLaw(CRL)–theCRAasmadeapart

ofstatelaw–authorizescitiesandcountiestoestablishredevelopment

agencies.Todoso,thejurisdiction’slegislativebodymustadoptanordi-

nancedeclaringthatthereisaneedforaredevelopmentagencytofunction

inthatjurisdiction.1

Theprimaryfunctionoftheredevelopmentagencyistoadoptandoversee

thelong-termimplementationofaredevelopmentplantorevitalizeblighted

anddeterioratingareasofneighborhoodandbusinessdistricts.

Becausetheauthoritytoestablisharedevelopmentagency–andthe

authorityforaredevelopmentagencytofunctionasanagency,adopta

redevelopmentplan,andimplementtheplan–isgrantedbystatelaw,2

redevelopmentagenciesarecreationsofthestate,thoughtheyoperateat

alocallevel.Thisisimportant,becauseitmeansthattheactions,scope,

andauthorityofaredevelopmentagencyaresetbythestate.Aredevelop-

mentagencyisaseparatelegalentityfromthecommunitywithinwhichit

operates,eventhoughitsgeographicjurisdictionisthesame.Itspowers

comefromthestate.Theredevelopmentagencyandthecity(orcounty)are

entirelyseparateanddistinctlegalentities.

10 Legal Requirements for Redevelopment


Anotherwaytolookatthisistounderstandthataredevelopmentagency

isapublicbodythatexercisesgovernmentalfunctionsandhasthepowers

prescribedintheCRL.Therefore,directorimpliedauthorityforitsactions

mustbefoundwithintheCRL.Aredevelopmentagencyis“an agency of the

state[italicsadded]forthelocalperformanceofgovernmentalorproprietary

functionwithinlimitedboundaries.”3Thismeansthatchangestothescope

ofauthorityoftheredevelopmentagencycanonlybeachievedbyamending

statelaw.Italsomeansthatamendmentswillaffectallredevelopment

agencies,notjustonespecificlocalagency.

Alegislativebody(suchasacitycouncilorboardofsupervisors)thatis

establishingaredevelopmentagencyhasthreeoptions.Itmay:

4Establishitselfasthegoverningbodyoftheredevelopmentagency4

4Establishaseparategoverningbodyoftheredevelopmentagency5

4Establishacommunitydevelopmentcommission

Inpracticeandingeneral,largercitiesandthosewitholderredevelopment

agencieshaveseparategoverningbodies,whilenewerand/orsmaller

agenciesaregovernedbythelocallegislativebody.(Thethirdoption,the

establishmentofacommunitydevelopmentcommission,allowsthelegisla-

tivebodyoraseparateappointedbodytofunctionjointlyasaredevelop-

mentagencyandahousingauthority.Few,ifany,jurisdictionsinCalifornia

utilizethisthirdoption.)6

Ifaseparategoverningbodyisestablished,themayor(ifacity)orthe

chairpersonoftheboardofsupervisors(ifacounty)appoints,withthe

approvalofthelegislativebody,eitherfiveorsevenmemberstotheagency.7

Oncearedevelopmentagencyhasbeenestablished,thestatecontinuesto

definewhattheagencycando,aswellastheproceduresitmustimplement

tocarryoutitsmissionandoperations.

What Can a Redevelopment Agency Do?

Broadlyspeaking,aredevelopmentagencymayengageinthefollowing

activities:

4Prepareandcarryoutplansfortheimprovement,rehabilitation,and

redevelopmentofblightedareas

4Receiveandspendpropertytaxrevenuesfromtheincreaseinassessed

valuethathasoccurredafteradoptingaredevelopmentproject(thisis

calledtax increment financing,discussedingreaterdetailinchapter11)


4Acquirepropertywithinaplanarea,whentheplanadoptionprocesshas

begun(seetheendofthischapter)

4ExercisethefullauthoritygrantedbytheCRLwithin(andincertaincases,

outsideof)theprojectareaonceaplanhasbeenadopted

4Hireconsultants

Inaddition,redevelopmentagenciesareauthorizedtohaveaccesstothe

servicesandfacilitiesofthevariousdepartmentsandofficesofthecommu-

nity.8Whilelargeagenciesoftenhavetheirownstaffsandhireconsultants,

mostsmalleragenciesrelyoncityorcountystaff,whochargetheirtimeto

theredevelopmentagency.

Statepublicmeetinglaws(theBrownAct)applytoredevelopmentagencies

andcommissions.Thismeansthatallmeetingsmustbepubliclynoticed,

andallmeetingsmustprovideopportunitiesforpubliccomment.

Ifanagencyhasnotconductedanyredevelopmentactivities(including

enteringintoacontract)withintwoyearsafterbeingestablished,thelegisla-

tivebodymaydissolvetheagencybydeclaringinanordinancethatnoneed

fortheagencyexists.9Iftheagencyhasoutstandingfinancialobligations

orcurrentcontracts,thejurisdictioncandissolvetheagencysolongasit

assumestheagency’soutstandingobligations.Thedissolutionordinanceis

subjecttoreferendum.

What Are the Legal Requirements for a Redevelopment Plan?

Aredevelopmentplanisthefundamentaldocumentgoverningaredevelop-

mentagency’sactivities.Redevelopmentplansaretypicallyverygeneral

documents,providingtheagencywithmaximumflexibilityinachievingits

goals.

Therearedetailedstatutoryrequirements–manyofwhichoutlineprocedural

prerequisites–thatmustbemetbeforeandduringtheadoptionofa

redevelopmentplan.Manyoftheserequirementsarefarmoredetailedthan

therequirementsgoverningeithergeneralplansorzoningordinances.9

Theseinclude:

4Beforeaplanmaybeadopted,thejurisdictionmusthaveaplanning

agencyestablishedpursuanttolaworcharter11

4Thejurisdictionmusthaveageneralplanconformingtotherequirements

ofstatelaw,12includingacertifiedhousingelement

4Theredevelopmentplanmustconformtothegeneralplan13

4Thelocallegislativebodymustadoptaredevelopmentplan


4TheredevelopmentplanmustmeettherequirementsoftheCalifornia

EnvironmentalQualityAct(CEQA)

Inaddition,therearecontentrequirementsforplans,whichinclude:

4 Alegaldescriptionoftheboundariesoftheprojectarea14(explainedlater

inthischapter)

4Adescriptionanddiagramshowingplannedusesforthelandwithinthe

redevelopmentarea15

4Ageneraldescriptionoftheproposedmethodsoffinancing,suchas

federalfunds,cityadvances,andtaxincrementfinancing16

4 Alimitationontheamountofindebtednessthattheagencymayhave

outstandingatanyonetime17

4Alistofspecificpublicimprovementstobeprovidedbytheredevelopment

agencyinconnectionwiththeredevelopmentplan18

4Adescriptionoftheagency’sprogramtoacquirepropertybyeminent

domain

Therearenumerousothercontentrequirements,includingadditional

provisionsrelatingtofinancing,theprovisionofaffordablehousingand/or

replacementhousing,andmore.

Theredevelopmentplanitselfestablisheslong-termplanninggoalsaswell

asimplementationpoliciesandproceduresfortheredevelopmentofa

designatedprojectarea.Planstypicallysetforththeirbasicobjectivesinvery

broadterms.Inadditiontoservingasthelanduseplanningdocumentand

charterforaredevelopmentarea,itservesasafinancingplanbyauthorizing

theagency’suseofparticularfinancingtoolstoimplementprojectsand

policies.

Onceadopted,aredevelopmentplanfunctionslikea“charter,”settingforth

thebasicauthorityfor,andlimitson,aredevelopmentagency’sactivities

overalongperiodoftime(e.g.,30years).19

Someredevelopmentplanswillincorporatebyreferencethespecificgoals,

policies,andobjectivessetforthinthejurisdiction’sgeneralplaninorder

toidentifythespecificvisionandgoalsthatwillframelanduseswithin

redevelopmentprojectareas.Evenwheretheredevelopmentplandoes

notreferencethegeneralplan,however,itstillmustbeconsistentwiththe

jurisdiction’sgeneralplan.20


What Are the Legal Requirements for Establishing a Redevelopment Project Area?

Partoftheprocessofcreatingaredevelopmentplanistheestablishment

ofaredevelopmentprojectarea.Redevelopmentprojectareasarethe

geographicregionswithinajurisdictioninwhichtheredevelopmentagency

addressesblight.Statelawprescribestheprocessforestablishingthese

areas,whichisoftenhighlypoliticalandcanbeveryemotional.

Survey Area

Thefirstplanningstepindeterminingwhetheraredevelopmentprojectis

feasibleisthedesignationofa survey area.Thejurisdiction’slegislativebody

doesthisviaresolution.21Theresolutionmustincludeafinding22thatthe

arearequiresstudytodetermineifaredevelopmentprojectisfeasiblewithin

thatarea.Itmustalsoincludeadescriptionofthearea’sboundaries.

Thedesignationofthesurveyareaisimportantbecausethefinalproject

areafortheredevelopmentplanmustbewithintheboundariesofthesurvey

area.Itisnotdifficulttoamendasurveyarea.Butthefinalprojectarea

cannotexceedtheboundariesofthesurveyarea,asoriginallyadoptedoras

amended.

Itisimportanttonotethatthedesignationofasurveyareahasnolegal

impactonthepropertieswithinthesurveyarea,andsurveyareasdonot

necessarilyleadtotheadoptionofaplan.Nonetheless,residents,property

owners,andbusinessownersmaybeveryconcernedabouttheestablish-

mentofasurveyareaanditspotentialimplicationsfortheirinterestsinthe

community.

Indeterminingtheboundariesofaprojectarea(anditspredecessor,the

surveyarea),therearesomeprerequisitesthatmustbemet.Thetwomost

importantarethattheareamustbeblighted,anditmustbeurbanized.

Blight

RedevelopmentexistsinCalifornialawfortheexpresspurposeofeliminating

blight.Eliminatingblightisthelegaljustificationfortheuseoftheextraordi-

narypowersgrantedunderredevelopmentlaw.Becauseredevelopmentis

structuredasthelocalapplicationofstatepolicy,acommunitythatelimi-

natesblightthroughtheuseofredevelopmentiscarryingoutstatepolicy

throughitsredevelopmentagency.

Thestatedefinestwokindsofblight:physicalandeconomic.Physicalblight

mightbeevidencedbyunsafeorunhealthybuildings,orincompatibleland

usesthatpreventeconomicdevelopmentofthearea.Economicblightmight

beevidencedbydepreciatedorstagnantpropertyvalues,thepresenceof

Note:Underutilizationoflandisnotthe

sameasblight.Forexample,anareamay

bezonedforahigherdensityofuses

thanarepresent.Iftheexistingusesare

ingoodcondition,communitybusinesses

arestable,andotherindicatorsofblight

arenotevident,thefactthattheland

couldsustainmoreintenseusedoesnot

meanitisblighted.


hazardouswaste,highbusinessvacanciesorvacantlots,alackofcom-

mercialfacilitiesthatarenormallyfoundinneighborhoods(includinggrocery

stores,drugstores,andbanks),residentialovercrowding,highcrime,ora

highconcentrationofbarsandliquorstores.23Bothkindsofblightmustbe

presentinordertocreatearedevelopmentarea.24

Itisimportanttounderstandthatthecourtshaveinterpretedtheconcept

ofblighttomeanthatitappliestoanareaasawhole,notnecessarilyto

particularpropertieswithinthatarea.25Inotherwords,eachindividual

propertywithintheprojectareadoesnotneedtomeetthedefinitionof

blighted;rather,itisanaggregatecalculation.

Howmuchofthepropertyintheareamustbeblighted

tomeetthedefinitionofblight?Thereisnosimple

metricwithwhichtoanswerthatquestion.Ingeneral,

thecourtshavetendedtoerrontheconservativeside.

Thelegislativedefinitionofblighthasbecomemore

restrictiveovertime,andmorerecentcourtdecisions

haveimposeduponredevelopmentagenciesagreater

burdenofproofoftheconditionsconstitutingblightthan

wasformerlyrequired.Thus,overtime,thebartofinding

blighthasbeenraised.

Asnotedearlier,thelawdoesnotrequirethateverypropertywithinaproject

areameetthedefinitionofblight.Butnon-blightedpropertiesmaybe

includedonlyiftheirinclusionisnecessaryfortheeffectiveredevelopmentof

theareaofwhichtheyareapart.Inotherwords,theymaynotbeincluded

simplyforthepurposeofobtainingtaxincrementrevenues;thejurisdiction

mustbeabletoprovidesubstantialjustificationfortheirinclusion.

PredominantlyUrbanized

Aprojectareamustmeetthedefinitionofpredominantlyurbanized,which

meansthatnotlessthan80percentofallofthelandintheprojectarea

eitherhasbeenorisdevelopedforurbanuses,orisanintegralpartofone

ormoreareasdevelopedforurbanusesthataresurrounded(orsubstantially

surrounded)byparcelsthathavebeenoraredevelopedforurbanuses.26

Therearesomeverylimitedcircumstancesunderwhichagriculturallandcan

beincludedinredevelopmentareas,butthestandardisverydifficulttomeet.


What Are the Legal Requirements for Implementing a Redevelopment Plan?

Aswithotherphasesofredevelopment,planimplementationisregulatedby

statelegislation.Afewkeyrequirementsaredescribedhere.

Project Area Committee

Iftheadoptedplanincludespublicprojectsthatwilldisplaceasubstantial

numberoflow-and/ormoderate-incomeresidents–orifasubstantial

numberoflow-and/ormoderate-incomepersonsresideintheprojectarea

andtheplanauthorizestheagencytoacquire,througheminentdomain,any

residence–thelegislativebodymustsupporttheformationofaprojectarea

committee(PAC).27Theresidentsandcommunityorganizationswithinthe

projectareaformthePAC.

TherearecomplexrulesaboutPACformation.Somehighlights:

4TheagencymustpublicizetheformationofthePACandtheopportunityto

joinwithwrittennoticetoeverypersonandentitywithintheprojectarea

4TheagencymustholdaproperlynoticedpublicmeetingtoexplainthePAC

formationprocess

4RepresentedorganizationsmustappointmemberstothePAC;the

legislativebodyandtheredevelopmentagencymaynotappointanyofthe

committeemembers

4Subsequenttothisprocess,anelectionmustbeheldtodeterminethe

finalmembershipofthePAC

4PACsmustcomplywithpublicmeetinglaws

4ThelegislativebodymustprovidesufficientfundingtothePACforitto

carryoutnecessaryoperations(neededresourcesincludeofficespace,

staff,legalcounsel,andsupplies)

ThePACplaysanadvisoryroletotheredevelopmentcommission,and

reviewstheplanbeforeitisadopted.Asacitizenbodywithsubstantial

authorityforoversightoftheplanarea,thePACpresentsanidealoppor-

tunityfornutritionadvocatestoguideplanimplementationtoincorporate

projectsthatwillimproveaccesstohealthyfoodandopportunitiesfor

physicalactivity.


Owner Participation

InaveinsimilartothePACrequirements,thelawexplicitlyrequiresthat

redevelopmentplansprovidefortheparticipationofpropertyownersinplan

implementation,solongastheyagreetoparticipateinawaythatconforms

totheplan.

Implementation Plans

Agenciesarerequiredtoadoptimplementationplanseveryfiveyears.28

Implementationplanscancombinemorethanoneprojectarea,andmust

containtheagency’sspecificgoalsandobjectivesfortheprojectarea(s)

andidentifyspecificprograms,includingestimatedexpenditures,tobe

madeduringthefive-yearperiod.Inaddition,theimplementationplanmust

explainhowtheseactivitieswilleliminateblight.(Therearealsohousing-

specificissuesthatmustbeaddressed.)

Healthandnutritionadvocatesmightusetheoccasionoftheadoptionofa

newimplementationplanasanopportunitytoraisetheissueoffoodaccess

andpushforprioritizationofactivitiesthataddressaccesstohealthyfood.

1 Cal. Health & Safety Code§33101.(2006).Notethatthisordinanceissubjecttoreferendum.

2 Cal. Health & Safety Code§33000etseq.

3 Kehoe v. City of Berkeley(1977)67Cal.App.3d666,673.

4 Cal. Health & Safety Code§33200(2006).


6 Thereareanumberoflegaldifferencesspecifictojurisdictionsthatestablishacommunitydevelopmentcommission.Forexample,whilethelegislativebodycanopttoserveasthecommissionorcanappointacommission,ineitherinstancetwoseatsmustbeaddedtothecommission,tobeheldbytenantsofthehousingauthority.

7 Ibid.


9 Cal. Health & Safety Code§33140.

10 Foradetaileddiscussionoftheserequirements,seeD.Beattyetal.,supranote3inchapter9,at29-71.



13 Cal. Health & Safety Code§33302and§33331(2006).




17 Cal. Health & Safety Code§33334.1(2006).


19 County of Santa Cruz v. City of Watsonville,177Cal.App.3d831,837(1985).


21 Unusually,thestatutedoesnotrequirenoticeorapublichearingfortheadoptionoftheresolution.However,mostjurisdictionsdon’thaveamechanismforadoptingresolutionsoutsideofapublichearing,andthepotentialforpoliticalfalloutfromtakingsuchanactionbehindcloseddoorsisgreat,sotheresolutiondesignatingasurveyareawill,inpractice,nearlyalwaysoccurinapublicmeeting.

22 Afindingisthebasisforapublicbodytotakeanaction;itisarecitationoftheissueidentifiedorproblemtobesolved.



25 Berman v. Parker348US26,35(1954).

26 Cal. Health & Safety Code§33320.1(2006).Notealsothatmilitarybaseredevelopmentprojectsaretreateddifferentlyunderthelawandareexemptfromtheurbanizationrequirement;seeCal. Health & Safety Code§33492.3.



IntroductiontoTaxIncrementFinancing 67

What Is Tax Increment Financing?

Taxincrementfinancing(alsoknownasTIfinancingorTIF)allowsredevelop-

mentagenciestoreceiveandspendpropertytaxrevenuesfromtheincrease

inassessedvaluethathasoccurredafteradoptingaredevelopmentproject.

WhenredevelopmentwasfirstdevelopedasalegaltoolinCalifornia,TI

financingwasintendedtoprovidethematchingfundsrequiredunderthe

federalurbanrenewalprograms.Overtime,however,TIfinancinghas

becomeapowerfultoolinandofitself,oneuponwhichmanyjurisdictions

relytofundaffordablehousingandotherresourcesthatimprovelow-income

communities.

OneoftheattractionsofTIfinancingisthatitsupportsurgentlyneeded

urbanrevitalizationwithoutraisinglocaltaxesorrequiringvoterapproval.TI

financingusesthefuturegrowthinpropertytaxvaluesgeneratedwithina

redevelopmentprojectareatofinancetheredevelopmentprogram,which

intheoryisresponsibleforgeneratingthebulkoftheincreaseinproperty

values.

Whenanagencyadoptsaredevelopmentplan,thetotalassessedvalueof

propertywithintheprojectareaisestablishedasthebaseassessedvalue,or

frozen base.1Foruptothenext45years,mostofthepropertytaxrevenues

generatedfromsubsequentincreasesinassessedpropertyvaluesabovethe

frozenbasewillbeallocatedtotheredevelopmentagency.

Theserevenuesarecalledthetax increment,andinmostcases,redevelop-

mentagencieswillissuebondsagainstthispropertytaxincrementtofund

theimplementationoftheredevelopmentplan.Thetaxrevenuesreceived

fromtheTIwillbeusedtopayoffthosebonds.TIfinancing,however,can

generallyonlybeusedtofinancecapitalimprovements,infrastructure,and

thelike.Itcannotbeusedtofinanceongoingoperationandmaintenance

costs.

Redevelopment agencies are also eligible to receive funds from a variety of

other sources, including state and federal Community Development Block

Grants (CDBG), the Urban Mass Transit Program, and various federal housing

programs. Unfortunately, funding for most of these programs has decreased

11 Introduction to Tax Increment Financing


steadily over the last decade and is likely to continue to do so for the

foreseeable future.

MostofthedollarsgeneratedthroughTIfinancingmustbespentinthe

projectarea,thoughtherearesomenarrowexceptionstothis(generally

relatedtohousing).Thus,TIfinancingisnotatoolthatcanbeusedtoshore

updepletedgeneralfundcoffers.

ThereareadditionalrequirementsregardingTIfinancing.Theseinclude:

420percentofTIfundsmustbespenttoincreaseandimprovehousingfor

low-andmoderate-incomepersons(unlesscertainlimitedexceptionsare

met)2

4Redevelopmentplansarerequiredtocontainlimitsonthetotalamount

ofTIthatcouldbereceived,thetotalamountofoutstandingbondeddebt

thatcouldberepaidwithTI,andatimeperiodwithinwhichdebtcouldbe

incurred

4Theagencymustfileregularreportswiththestate

4 Importantagencydecisions–includingthesaleofTIbonds,landdisposi-

tion,andannualbudgetsandworkprograms–mustbereviewedbythe

legislativebody


City Without a SupermarketEastPaloAlto,California

OnaSundayafternooninMarch2005,agroupofEastPaloAltochurches

concernedaboutthearea’slackofaccesstofreshhealthyfoodorganizeda

prayervigilatCityHall–acrossthestreetfromavacantlotwherethecity’s

lastfull-servicesupermarkethadclosed20yearsearlier.Thepastorsand

otherswhospokeurgedthecityofEastPaloAltototakeactiontosecurea

newsupermarketdevelopmentforthissiteatthecornerofUniversityand

Bay.

Sincethegrocerystoreonthissiteclosedinthe1980s,thecityofEast

PaloAltohashadnofull-servicesupermarket.Membersofthecommunity

havebeenadvocatingforasupermarketeversince.Residentsofthelargely

low-incomeareanowhavetotraveltoanothercityforgroceries.3

Whilethecityanditsredevelopmentagency

acknowledgethepressingneedforasupermarket,

nosuchprojecthasbeenattempted–despitethe

city’ssuccessinattractinghundredsofmillions

ofdollarsinnewretaildevelopmentoverthepast

decade.Infact,theredevelopmentofthecity’s

UniversityCircleredevelopmentarealedtothe

closureofanindependentgrocery.Thestore,which

hadbeentheonlyoutletforfreshproduceinthecity,

wasclosedandreplacedwithanofficebuildingand

aFourSeasonsHotel.

Onanadjacentsite,theEastPaloAltoRedevelopmentAgencysupported

thedevelopmentofaretailcenterthatincludedtenantssuchasaHome

DepotEXPODesignCenteraswellasGoodGuysandBestBuyconsumer

electronicsstores.In2001,theagencywasreceivingproposalsforthefinal

phaseofthatproject.Onedeveloperproposedamixofuses,including

asupermarket–butthecityelectedtosupportaproposaltobuilda

300,000-square-footIKEAfurniturestoreinstead.

Someadvocatesarguethatthecityhaspursueddevelopmentthatserves

out-of-townupscaleconsumersoverprojectsthatservetheunmetneedsof

thecity’slower-incomeresidents.Therealityissomewhatmorecomplex,and

itillustratesthecompetingdemandsthatpullmanyredevelopmentprojects

indifferentdirections.

ThedecisiontowelcomeIKEAratherthanasupermarketwasthesubjectof

anextensivedebate.Advocatesforthecity’slower-incomeresidentsfaceda

difficultchoice.Whilethesupermarketwouldhaveservedanimportantneed,

Phot

oby

Jord

onB.W

instea

d

PR

OF

IL

E

The city of East Palo Alto hopes

to attract a supermarket to

the vacant lot at the corner of

University and Bay.

PR

OF

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E


manyarguedthattheIKEAwouldservetwootherpressingneeds:jobsand

taxrevenue.

TheIKEAprojectwasexpectedtogenerate550newjobs.Thecoordinator

ofalocaljobtrainingcenterwasquotedinthepaperravingaboutIKEA’s

“awesome”benefitspackage,whichincludedhealthbenefitsandatuition

reimbursementplan.4Inaddition,IKEAguaranteedthecityaminimumof$1

millioninannualsalestaxrevenueandprojectedasmuchas$1.8million.

EastPaloAltofacedseriousfiscalchallengesandatthatpointwasunableto

pay$2millioninraisesforpoliceofficersthathadbeenapprovedbyvoters

butnotfunded.5PlannersarguedthatIKEAtaxrevenuewouldpayfornew

stormsewersandrepavedstreets.6

Whilemanysupermarketadvocateswerenotpersuadedbythesearguments,

intheend,amajorityofEastPaloAltovotersapprovedtheIKEAdealin

Marchof2002.

Nowthatthemoredesirablesitesalongthe101freewayhavebeenbuilt

out,thevacantlotatUniversityandBayremainstheonlydevelopmentsite

inEastPaloAltolargeenoughtoaccommodateasupermarket.National

supermarketchainshavebeenunwillingtoopenthere,however,inpart

becausethesiteisfarfromthefreeway.

In1994,thecitysoldthelandtoadeveloperwhopromisedtobuilda

supermarketshoppingcenterthere.Afterseveralfailedattemptstodevelop

thesite,theownersofferedthesiteforsale.Thecitywasnegotiatingto

providefinancialassistancetoanotherbuyerwhohadsecuredacommit-

mentfora50,000-footRanchoSanMiguelSupermarketwhen,inMay2006,

thesitewassoldtoyetanotherdeveloperwithplanstobuildahigh-rise

condoproject.

Thecityisinsistentthatthesiteincludeasupermarket,andthenewowneris

reportedlywillingtoincorporateoneintotheproject.Butanyprojectisstill

yearsaway,andthefinaloutcomeisfarfromcertain.7


How Does Tax Increment Financing Work? A Hypothetical Scenario

ThetownofSanovillehasdesignatedanewredevelopmentarea.Intheyear

thattheredevelopmentplanisestablished,propertytaxesforallproperty

locatedwithintheareatotal$3million.Overtime,wecanexpectthesetaxes

toincrease,especiallyiftheredevelopmentagencyissuccessfulinimproving

thearea.

Supposethat,afteroneyear,thetotaltaxeshadrisento$3.15

million.Thecounty,schooldistrict,andotherlocaltaxing

entitieswouldsplitthebaselineamount($3million)asthey

hadinthepast,andtheincrease($150,000,knownasthe

tax increment)wouldgototheredevelopmentagency.This

incrementmightnotbemuchinthefirstfewyears–butafter

tenyears,ifthetotaltaxrevenueshaverisento$4.88million,

theredevelopmentagencywillreceive$1.88millioninannual

taxincrement.

Oncetheagencyhasareliablestreamoftaxincrement

cominginannually,itmightchoosetoborrowmoneyby

issuingbondsthatitwillrepaywithitstaxincrementrevenue.

Thisstrategyallowstheagencyto“front-load”itsinvestment

byspendingmoreintheearlyyearsoftheprojectandmaking

capitalinvestmentsthatshould,inturn,resultingreatertax

incrementovertime.

IftheSanovilleRedevelopmentAgencyweretoissuebondsinYear10

oftheproject,itcouldpromiseits$1.88millioninannualtaxincrement

revenueforrepaymentofthebonds,whichwouldmeanthatitcouldborrow

approximately$16to$20million,dependingoninterestratesandother

terms.Severalyearslater,theagencymighthavegeneratedevenmore

taxincrement,whichitcouldpledgetowardasecondsetofbonds,raising

additionalcapitalforfurtherimprovements.

1 5 9 13 17 21 25 29

Year

BaseLine

Bond#1

Bond#2

TaxIncrement

Tax Increment Revenue

TaxRe

venu

e($M

illion)

2

4

6

8

10

12

14

0

Hy

PO

TH

ET

IC

AL


1 See, e.g., Redevelopment Agency v. County of San Bernardino,21Cal.3d255,259(1978);D.Beattyetal.,supranote3inchapter9,at209-18.

2 Redevelopmentlawincludessubstantialrequirementsregardinghousing.Theseinclude:

4 Theagencymustlocateorprovidehousingforresidentsdisplacedbytheagency’sactivities

4 Low-andmoderate-incomehousingunitsthataredestroyedorremovedmustbereplaced

4 Atleast20percentoftheTIfundsallocatedtoanagencymustbeusedtoincrease,improve,orpreservethecommunity’ssupplyoflow-andmoderate-incomehousing

4 Market-ratehousingbuiltwithinprojectareasissubjecttorequirementsforsubstantialinclusionaryhousing(affordableunitsincludedwiththedevelopmentofthemarket-ratehousing)

3 No East Palo Alto Market in Sight,Oakland Tribune,5/17/06.

4 Ikea Wins Initial Victory,Palo Alto Weekly,8/31/01.

5 Measure C Would Pave the Way for IKEA in East Palo Alto,San Francisco Chronicle,2/22/02.

6 Construction Underway on Controversial East Palo Alto IKEA,Stanford Daily,9/30/02.

7 East Palo Alto’s Grocery Store Hopes in Limbo,San Jose Mercury News,5/17/06.

IntroductiontoEminentDomain 73

What Is Eminent Domain?

IntheUnitedStates,governments(local,stateandfederal)havethepower

toacquirepropertywhenneededtofurtheralegitimategovernmental

purpose,solongastheownerofthepropertyisjustlycompensated.This

authorityisgrantedintheFifthAmendmentoftheU.S.Constitution,which

states:“Nopersonshallbe...deprivedof...property,withoutdueprocessof

law;norshallprivatepropertybetakenforpublicuse,withoutjustcom-

pensation.”1ThisclauseoftheConstitutioniscommonlycalledthe“takings

clause,”becausetheauthorityitgrantsiscalledtakings2authority.

Whenreferringtothetakingofrealproperty(landand/orbuildings)by

thegovernmenttofurtheritspurpose,thisiscalledthepowerofeminent

domain.Thepowerofeminentdomainisoneofthemostpowerfultools

availabletoredevelopmentagenciesinCalifornia.

Inpracticalterms,thepowerofeminentdomainallowsaredevelopment

agencytobuyproperty–whetherornottheownerwantstosell.However,

theredevelopmentagencycan’tsimplyseizetheproperty.Rather,itmust

purchasetheproperty–itmustprovide“justcompensation”totheowner.

Just Compensation

Toprovidethejustcompensationthat’slegallyrequiredforthetakingof

property,thevalueofthepropertybeingacquiredmustbedetermined.This

isnotalwayseasytodo,andpropertyownersoftenfeelthattheirproperty

wasundervalued.

Theremaybeanumberofreasonsforthecommonimpressionthatgovern-

ments“underpay”forpropertytakenbyredevelopmentagenciesexercising

theireminentdomainauthority.Twostandout.Oneisthatthedeclarationof

blight(seechapter10)generallyreducespropertyvaluesintheshortterm,

sotheappraisedvalueofthepropertyislikelylowerthanitwaspriortothe

findingofblight.(Thisisoneofthereasonsthatpropertyownersmayfight

againstthecreationofaredevelopmentprojectarea.)Thesecondreasonis

thatredevelopmentfrequentlyrequiresparticularparcelsoflandtorealize

plans;multipleparcelsmaybeassembledforalargeprojectsuchasa

12 Introduction to Eminent Domain

Profile:CitywithoutaSupermarket,EastPaloAlto,California


shoppingcenter.Recognizingthattheproposedprojectreliesonaparticular

parcel,peoplelogicallyconcludethatthenecessityofthatparcelraisesits

value.However,forreasonsthatarebeyondthescopeofthistoolkit,this

assumptionisinaccurate.3

The Changing Landscape

Governmentsmayonlyusetheireminentdomainpowertoacquireproperty

tofurtheradirectandtangiblegovernmentalpurpose.Forexample,blighted

housesmightbeacquiredanddemolished,withtheredevelopmentagency

financingtheconstructionofnewhousingforthelow-incomepopulationthat

wasdisplaced.InCalifornia,forexample,citiesareonlypermittedtotake

landforeconomicdevelopmentpurposesinblightedareas.4

In2005,thecityofNewLondon,Connecticut,movedtotakesomeprivate

homesthrougheminentdomainwiththeintentoftransferringtheproperty

toaprivatedeveloper,whowouldusethelandaspartofalargerplan

toredevelopasectionofNewLondonandattempttoshoreupitsailing

economy.Thepropertyownerssued,claimingthatthiswasnotalegitimate

useoftheredevelopmentagency’seminentdomainauthoritybecauseit

wouldresultnotinfurtheringagovernmentalpurpose,butinenrichingthe

developer.

ThecasewentallthewaytotheU.S.SupremeCourt,whichhandeddown

adecisionin2005.InKelo vs. New London,theSupremeCourtsidedwith

thecity,findingthattheintendeduseofthepropertyqualifiedasa“public

use”withinthemeaningofthetakingsclause,andthatthepropertywas

beingdevelopedaspartofaplanwhichwasnotadoptedtobenefitanyone

inparticular.Thecourtfeltthateventhoughthedeveloperstoodtoprofit

fromtheventure,thecitywasfurtheringalegitimateinterestbycreating

anopportunitytoproducetaxrevenue.Italsofeltthattheoverallplanfor

revitalizationwasa“publicuse,”evenifprivatepartieswhomightalso

benefitfromtheredevelopmentwerecarryingitout.

TheNewLondoncasehascreatedagreatdealofanxietyamongprivate

citizens,whobelievethisrulingmeansthatlocalgovernmentcantaketheir

propertyatwill,withoutwhattheymightfeelisa“legitimate”purpose.5This

haspromptedseveralstategovernmentstointroduceorpasslegislation

limitingthepowerofeminentdomain.

In2006,atleastpartiallyinresponsetoKelo,Californiaadoptedfivebills

amendingtheCRLandthestateeminentdomainlaw.Amongotherthings,

thebillsnarrowthecircumstancesunderwhichanagencymayfindblight,

provideadditionalproceduralrequirementsforadoptingandamending


redevelopmentplans,createnewstateoversightofredevelopmentplans,

andaddnewrequirementsonredevelopmentagencyuseofeminentdomain.

Itwillprobablybeseveralyearsbeforethestateoftakingslawhassettled

inCaliforniaandelsewhereinthecountry.Inthemeantime,localredevelop-

mentagenciesmayinsomecasesbefacedwithconstraintsontheirpower

toexerciseeminentdomainauthority.

PR

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Redeveloping a Downtown DistrictRichmond,California

In1992,thedowntowndistrictofRichmondwasintrouble.Althoughthe

districtheldmanyofthecityandculturalinstitutions,manyoftheparcels

intheneighborhoodwerevacantorunderutilized,andthesurrounding

residentslackedanytypeofcommunity-servingretailbeyondcheck-cashing

stationsandpaydayloans.

Thecity’sredevelopmentagencyinitiatedaplantorevitalizethedistrict

withcommercialuses.“Themostimportantgoalwastobringessential

neighborhoodretailoutletstotheresidents,”saysAlanWolken,directorof

theredevelopmentagency.Theagencyalsosoughttoincrease

commercialactivityaswellasthetaxbaseinthecity.

Centralamongcommunity-servingneedswasagrocerystore

forresidents.Recruitingagrocerystore,however,wasnotan

easytask.Overcominginvestors’fearsandattractingcapital

totheprojectwasdifficult.Theareawas,andremains,a

low-incomecommunity.Theneighborhoodneededagreater

densityofresidentsinordertoconvinceretailersthatthe

locationwouldbesustainable.

“Theredevelopmentagencyhadtoconvinceinvestorsthiswasonlythe

beginning,”saysWolken,“andthatwewouldcontinuetoinvestinthe

neighborhooduntilitwasabovewateragain.”

Afterpurchasingtheparcelsonwhichtheretailoutletwasplanned,6the

redevelopmentagencyreleasedarequestforproposals(RFP)foramixed-

usedevelopmentconsistingofaffordablerentalandownershipunitsand

aneighborhoodshoppingcenter.BRIDGEHousing,anonprofitaffordable

housingdeveloper,receivedthecontractforthehousingportionofthe

project,andtheMartinGroup,aprivatefirmspecializingincommercial

development,wasselectedfortheretailaspect.

Theredevelopmentagencyengagedseveralcommunitygroupsforinput

intotheselectionoftenantsanddesignoftheproject.TheMacDonald

AvenueBusinessAssociationandtheIronTriangleNeighborhoodCouncil

participatedinplanninganddesignmeetingsandmaderecommendations

ontheretailmostneededinthecommunity.

Communityparticipationwasstrong–evenmoresobecauseamemorial

parkexistedadjacenttotheretailsite,andmanyresidentswereinterested

inpreservingthetreesinthepark.Oncethecommunityinputwastaken

intoaccount,theredevelopmentagencyworkedwithBRIDGEandtheMartin

Grouptofinalizeplansfordevelopment.

PhotocourtesyofBMSD

esignGroup

Community members played

a key role in Richmond’s

redevelopment process.


Theredevelopmentagencyusedeminentdomaintoacquirethelastofthe

parcelsoflandwheredevelopmentwasplanned,andusedtaxincrement

financingtomakeitpossibletosellthepropertytothetwodevelopersat

below-marketprices.Theagencyfurtherinvestedinthedevelopmentby

commissioningpublicartinstallationsthroughoutthehousingandretail

developments,andofferedfaçadeimprovementgrantstosurrounding

businesses–animportantinvestmenttohelpwiththerevitalizationofthe

wholearea,ratherthanisolatingimprovementstoonlythesitesofnew

development.

WithBRIDGE’sencouragement,apolicesubstationmovedintoonecornerof

theprojectacrossthestreetfromtheretailcenter.Twoanchorsandseveral

in-lineshopswereplanned,andnegotiationsbegantoattractaFoodsCo.

grocerystore,aWalgreensdrugstore,andsmallerretailoutlets,includinga

clothingstore,ashoestore,andseveralfastfoodfranchises.

“Theredevelopmentagencywasmostinterestedinmajortenants,as

opposedtosmallindependents,”saysWolken,“mostlybecausetheysignal

toinvestorsthisisasafebetandaremorelikelytoprovidejobsforthe

community.”TofinalizeFoodsCo.asatenant,theredevelopmentagency

agreedtosubsidizeitsrentfortenyears.

Allofthisinvestmentultimatelyprovedextremelysuccessful.Theretail

centerisnowoperatingwithoutanyongoingrentsubsidy,andtodate,only

onestorehasleftthecenter.Thehousingunitsare100percentoccupied,

andseveralnewdevelopmentsareunderwayinthesurroundingblocks,

includingnewhousingattheadjacenttransitstation.Thisincreasedhousing

willonlyincreasethedemandfortheretailintheneighborhood.

Thedegreeofsuccesswasasurprisetoeveryone.Ithasevenmerited

severalawards.“Thesuccessofthecenterjustatteststotheneighborhood’s

sheerneedforsuchretailandtheabilityforlow-incomecommunitiesto

supporttherightkindofretail,”saysWolken.7

PR

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1 U.S. Constitution,5thAmendment.

2 Takingsactuallyencompassabroadspectrumofactivitiesthatresultinthereductionofvalueofpropertyorthereductioninuseofproperty,aswellastheacquisitionofproperty.Mosttopicsundertakingsarebeyondthescopeofthistoolkit.

3 Realestateappraisalisacomplexblendofartandscience.Therearestandardmethodologiesandmetricsutilizedasthebasisfordeterminingthevalueofaparticularparcelofproperty.Thevaluationmayhavelittletodowiththenecessityoftheparcelforcompletingaparticularredevelopmentproject.

4 Cal. Healthy & Safety Code§33030-33037.

5 Infact,theplaintiffsaskedthecourttoestablisha“bright-linerule”toavoidthepossibilityofacitytransferringcitizenA’spropertytocitizenBforthesolereasonthatcitizenBmightputthepropertytoamoreproductiveuseandthuspaymoretaxes.Thecourtfeltthiswasnotgermanetothecasebeforethem,statingitcoulddealwiththatissueinthefutureshoulditarise.

6 NotethatRichmond’sstrategywassimilartothatutilizedbythecityofNewLondonintheredevelopmenteffortthatresultedintheKelocase.NewLondonwasnotattemptingsomethingnovel.

7 InterviewwithAlanWolken,RichmondRedevelopmentAgency,6/12/06.

SupportforEconomicDevelopmentProjects 79

Asdiscussedearlier,redevelopmentagencieshavebroadpowerstosupport

therevitalizationofdesignatedredevelopmentareas.Anagencycanuseits

planningpowerstomakeaprojectpossible,oritcanprovideloansorgrants

toimprovethefinancialfeasibilityofaproject.Itcanalsohelpbyproviding

landfortheprojectorbysupportinggeneralinfrastructureimprovementsin

thesurroundingareathatmaybenecessaryforaprojecttosucceed.

Eminent Domain

Redevelopmentagencies,undercertainspecificcircumstances,havethe

powertotakeprivatepropertythrougheminentdomain(seechapter12).

Whilenotcommon,thistoolcanbeusedtosupporteconomicdevelopment

projects–eitherdirectly,bytakinglandonwhichtheproposedproject

willbebuilt,orindirectly,byremovingsurroundingblightedpropertiesor

facilitatingthedevelopmentofsupportinginfrastructure,suchasparking.

Example:TheredevelopmentagencyinRichmondassembledlandfora

supermarket-anchoredshoppingcenterdowntown(seeprofileinchapter12).

Theagencywasabletonegotiatetopurchasemostoftheparcelsfromtheir

owners,buttheownersofthefinalparcelswereunwillingtosell.Theagency

wasabletouseitseminentdomainpowerstoforceasaleofthesefinal

parcels,whichwerekeytothedevelopmentoftheproject.

Land Access

Asaredevelopmentareaisdemarcated,theredevelopmentagencymay

acquiremuchofthelandneededforredevelopmentthroughvoluntarysales

oreminentdomain.Itcanthendonate,sell,orleasethelandtoprojectsthat

worktowarditsgoalsforincreasingthepublicbenefitandvalueoftheland,

asdefinedintheredevelopmentplan.

Theagencymightgrantoutrightdonationsoflandordiscountsalesfor

high-impactprojects.Inothercases,itmightdecidetoretainlong-term

ownershipofprojectlandandinsteadenterintoverylong-termlandleases

withprojectdevelopers.Insomecasesabelow-marketleaseratecanbe

tiedtoaproject’ssuccessinaccomplishingdesignatedgoalssuchaslocal

13 Support for Economic Development Projects

Profile:RedevelopingaDowntownDistrict,Richmond,California


employment,jobcreation,oreconomicdevelopment.Inadditiontooffering

landatbelow-marketrates,theredevelopmentagencycanalsoreducecosts

attachedtolanddevelopmentbyaidinginsitepreparationcosts,suchas

remediationofhazardoussitesandgrading,andbytakingontheexpenseof

relocatingpeopledisplacedbychangesinlandusetheprojectwillcause.

Example:TheSanDiegoRedevelopmentAgencyplayedaleadrole

increatingtheCityHeightsUrbanVillageincentercitySanDiego.An

112,000-square-footretailcenteranchoredbyanAlbertsonssupermarket

wasbuiltaspartofanevenlargercommunitymasterplan,includinghousing,

apolicestation,alibrary,arecreationcenter,andofficespace.Theareawas

servedbyanolder,smallerAlbertsonsthatwaslocatedonasitethatwas

toosmalltoallowforexpansiontoalarger-formatstore.

Theredevelopmentagencyacquiredalargersiteacrossthestreetfromthe

oldAlbertsons,clearedthesitefordevelopment,andworkedwithaprivate

developertobuildthenewsupermarket.Theagencywasthenabletobuild

newofficeandcommunityfacilitiesonthesitewherethesupermarket

hadbeenlocated.Theagencyissued$16millioninbondstofinanceland

acquisition,relocation,andsiteclearance.Withouttheagency’sintervention

toacquiretheadditionalland,theprojectcouldnothavebeencompleted,

andAlbertsonsmighthavelefttheneighborhood.

Grants

Forsmallerprojects,itisnotuncommonforredevelopmentagenciesto

providedirectgrantstohelpmeeteconomicdevelopmentgoals.Often,

farmers’marketprojectsorotheractivitiesonasimilarscalewillbenefit

fromstart-up,operating,orplanninggrantsfromaredevelopmentagency.

Whilemostagenciesreceivefundsfromseveraldifferentsources,inmost

casesthemajorityofredevelopmentagencyfundswillbegeneratedthrough

taxincrementrevenue.Anyinvestmentofredevelopmentfundswilltherefore

havetobejustifiedonthegroundsthatthesupportedactivitieswill

ultimatelyimprovethetaxbaseintheprojectarea.

Itiseasiertorationalizesomeactivitiesthiswaythanothers.Grantsforbasic

infrastructurelikestreetlightsorstorefrontimprovementscanbeexpectedto

immediatelyimprovepropertyvalues,whereasimprovementsinfoodaccess

mayhavemoreindirectimpacts.Advocatesmightwanttodocumentanyway

inwhichtheproposedprojectmightincreasethetaxbase.

Example:TheSanFranciscoRedevelopmentAgencymadeagranttothe

operatorsofCityProduce,asmallcornerstorethatopenedinaredevelop-

ment-fundedmixed-useaffordablehousingprojectinSanFrancisco(see

profileinchapter4).Thegrantpaidforsomeofthemerchant’sequipment


andsomeofthecostsofbuildingouttheretailspace.

Thisgrant,togetherwithotherpublicsupport,madeit

feasibleforthebusinesstoforgothepotentiallylucrative

saleofalcoholanddedicatevaluableshelfspaceto

freshproduce.

Loans

Forlargerprojects,manyagenciesprefertostructure

theirsupportintheformofloansratherthangrants.

Taxincrement(TI)financingmakesitpossiblefora

redevelopmentagencytomakeloansonextremely

favorableterms.WhenanagencyissuesbondsagainstfutureTIrevenue,it

isessentiallyborrowingmoneythatitpromisestorepaywithpropertytax

fundsthatitexpectstoreceiveinfutureyears.Thebuyersofthebonds,who

arelendingmoneytotheagency,evaluatethelikelihoodthatthefuture

taxrevenuewillbesufficienttomakealltheloanpayments.Theagencyis

thenfreetoinvesttheproceedsinprojectsthatarelikelytocontributeto

thetaxbase.Projectsthatcontributetolandvaluedon’tnecessarilyhaveto

repaytheagency’sloaninorderfortheagencytobeabletomakeitsbond

payments.Anagencycanthenevaluatepotentialprojectsbasedontheir

economicdevelopmentimpact,offeringloantermsthataremorefavorable

forhigher-impactprojects.Someprojectsmayreceivetraditionalloanswith

below-marketinterestrates,whileotherprojectsmayreceiveloanswithno

interestorwhereallpaymentofbothinterestandprincipalaredeferredfor

30to50years.

Example:In1996theredevelopmentagencyinOaklandacquiredAcorn

Plaza,afailedsupermarketshoppingcenterinWestOakland.Theagency

issuedarequestforproposals(RFP)seekingdeveloperstorenovateand

re-tenantthecenter,ultimatelyselectingateamledbyalocalcommunity

developmentcorporation,theEastBayAsianLocalDevelopmentCorporation.

Thedeveloperwasabletorestorethebuildingsandattractanindependent

full-servicesupermarkettothecenter,whichwasrenamedtheJackLondon

Gateway.Thecityhelpedfinancetheprojectbyproviding$4millionin

HUDSection108andEconomicDevelopmentInitiativeloanfundsthrough

thecity’sEnhancedEnterpriseCommunityprogram.Theagencymadean

additionalloanof$1.5millionoftaxincrementrevenue.Theagencyloandid

notrequireanyannualpayments;repaymentwasdeferred.Inaddition,the

agencymadeanoutrightgrantof$439,000(alsooftaxincrementrevenue)

tohelppayforcostsrelatedtorenovationofthecenter.1

Phot

oco

urtesy

ofU

rban

Solut

ions


Infrastructure Improvements

Besidesofferingdirectinvestmentcapital,aredevelopmentagencycan

supportaprojectbycreatinginfrastructureimprovementstotheareathat

willbenefittheproject.Thiscanmeanconstructingoralteringroadsthatwill

allowgreateraccesstotheproject,orimplementingservicestothelandthat

didnotpreviouslyexist,suchassidewalks,animprovedelectricalgrid,or

greaterwastewatercapacity.

Inadditiontoconstructinginfrastructure,redevelopmentagenciesoften

promoteincreasedactivityintheareabyimprovingexistinginfrastructure–

perhapsthroughincreasedmaintenanceandimprovedstreetscapesand

buildingfacades.Theredevelopmentagencycancontributethecostofother

publicimprovements,suchasparkingthatcanservetheproject,plazasor

othertypesofpublicspace,andimprovedlighting.

Example:ThecityofFresnoagreedtomajorinfrastructureimprovementsin

ordertomakeSelmaSquare,agrocery-anchoredshoppingcenter,possible.

Theseinfrastructuralimprovements–includingthereconstructionofan

outboundfreewayrampandtheextensionofaneighborhoodstreet–were

designedtoincreaseaccessibilitytotheshoppingcenterandwereaneces-

saryconditiontodeveloptheprojectandattractFood4Less,thegrocery

tenant.Theprojectissupportedbytheredevelopmentagencybecauseit

bringsjobsandaffordablegroceriestoalow-incomearea.2

Other Incentives

Someagenciesusetheirlanduseplanningpowerstoencouragedevelop-

mentbychangingallowableusestosupportspecificdevelopmentprojects.

Othersprovidefeewaiverstodeveloperstohelpdefraycostsforprojects

thathelptheagencymeetitseconomicdevelopmentgoals.

Example:ParadisePlaza,aprivatelydevelopedgrocery-anchoredshopping

centerinModestoreceivedkeysupportfromthecity’sredevelopment

agencyinthemid1990s.Ratherthanprovidingadirectsubsidytothe

project,theagencyagreedtowaiveanumberofdevelopmentfeesin

ordertoassisttheproject,whichrenovatedamostlyshutteredandaging

shoppingplaza.Thedevelopersraisedtheirownfundsfortheventure,but

thecitywaivedcapitalfacilitiesfeestoencouragethedecisiontodevelop

theland,whichisinaredevelopmentarea.“Oncewedothisproject,”one

ofthedeveloperstoldareporter,“Ithinktherewillbeaninfusionofother

economicactivityinapartoftownthathasalmostbeenforgotteninterms

ofnewretaildevelopment.”3


Advocatesmaywishtoconsiderintroducingamodelresolutiontothe

redevelopmentagencytopromoteproactivestepstoaddressfoodaccess

challenges.Formoreinformationaboutmodelredevelopmentresolutions,

seechapter17.

1 A Resolution Amending Resolution no. 99-34 C.M.S. to Replace Community Plaza Developers, LLC, with JLG Associates, LLC, as Purchaser and Developer of the Jack London Gateway Shopping Center,CityofOakland,October2003,available athttp://clerkwebsvr1.oaklandnet.com/attachments/2673.pdf(lastvisited6/21/06).

2 S.Nax.,Selma Square Work Begins; Retail Project is the Latest of Many in the City,Fresno Bee,8/23/98(HomeEdition),atG1.

3 StuartGordon,New Shopping Center Intended to Revitalize West Modesto, Calif.,Knight Ridder/Tribune Business News,8/4/97.

FinalPoints 85

Itisimportanttounderstandwhatredevelopmentis,butit’sequallyimpor-

tanttokeepinmindwhatredevelopmentis not.AsoneCalifornialand-use

planningexperthasobserved:

Thoughitsmissionistorevitalizestrugglingurbanneighborhoods,

redevelopmentisnotinherentlyatoolforsocialchange.Itis,rather,a

financialtooldesignedtofacilitaterealestateinvestmentintargeted

areas.Itpermitslocalgovernmentstodesignatethetargetedareas,

tomakespecialinvestmentsintheareasinhopesofstimulatingreal

estateinvestment,andto‘take’propertybyeminentdomainifneces-

sary.Giventhisnarrowpurpose,redevelopmentcannotbyitselfhope

tosolveCalifornia’surbanproblems.Itcannotpreventcrime.Itcannot

eradicatedrugabuse....Redevelopmentwillbeusedtofurtherthese

goals only when the local government shows the political will to do so.1

ItisalsoveryimportanttorememberthatredevelopmentinCaliforniahas

oftenbeenimplementedinamannerthathas,atbest,beendisrespectful

and,atworst,irreparablydestroyedthefabricofneighborhoods.Indeciding

whethertopursuethisstrategy,publichealthadvocatesshouldtakenote

thatredevelopmenthasbeencontroversialinmanyCaliforniacommunities,

foravarietyofreasons.

OnefrequentcriticismisthatCalifornia’sredevelopmentplanningprocess–

likethefederal“urbanrenewal”programswithwhichitsharescommon

origins–hasoftencausedgentrificationandthedisplacementofthe

low-incomeresidentsthatthelawisostensiblydesignedtoassist.While

suchdisplacementisnotaninevitableconsequenceofredevelopment,

publichealthadvocatesshouldbemindfulofthiscriticism,bothinaddress-

ingcommunityconcernsandintakingappropriatestepstoseethatthe

specificmeasurestheyadvocateforensurethebenefitofthelow-income

groupstheyareattemptingtoassist.

1 W.J. Fulton, Guide To California Planning,at244(SolanoPress,1999)(emphasisadded).

14 Final Points

BuildingCommunitySupport 87

Toeffectivelyapplyeconomicdevelopmenttoolstoincreasehealthyfood

retail,youwillwanttobuildrelationshipswithstakeholdersinyourcom-

munitywhohaveleverageovereconomicdevelopmentdecisions.Inorder

todoso,youwilllikelywanttousedatapersuasivelytodemonstratethe

connectionbetweenyourproposedprojectandpositivehealthoutcomes.

Identifying Interested Parties

Foodaccessprojectsdrawinterestfromawiderangeofpeople,organiza-

tions,andbusinesses.Broadlyspeaking,interestedpartiescanbedivided

intofourcategories:

4Decisionmakers,whoareusuallyelected/appointedofficials(including

citycouncilmembers,supervisors,commissioners)

4City/countystaff(includingplanningstaff,redevelopmentagencystaff,

healthdepartmentstaff )

4Technicalpartners

4Projectalliesandopponents

Itisagoodideatoidentifyinterestedpartiesearlytodeterminepotential

alliesandopponents.

Elected/Appointed Officials

Sincethesearethepeoplewhowillultimatelyvotefororagainstyourproj-

ect,itisimportanttoascertainwhoisonyourside.Youwillbemosteffec-

tiveifyoucancultivateatleastonepublicofficialasanadvocateforyour

causeearlyon.Gettoknowthepositionsofyourcouncilpeople/supervisors

aswellasyourredevelopmentcommissioners(ifyourcityhasaseparate

redevelopmentcommission).Ideally,yourchampionwillnotbeclosetothe

endofher/histerm–yourgoalistobuildlong-termrelationships.

15 BuildingCommunitySupport

SectionIV


City/County/Agency Staff

Cityand/orcountystaffincommunityoreconomicdevelopmentdepart-

ments,andparticularlyredevelopmentagencystaff,canbekeyallies.Any

projectwillinvolveanumberoflocalgovernmentstaff,fromidentifyingand

evaluatingtheprojecttosecuringfundingandlanduseapprovals.Elected

officials,especiallyvolunteercommissioners,frequentlyrelyheavilyon

staffrecommendationswhenevaluatingcomplexeconomicdevelopmentor

redevelopmentprojects.Staffunderstandbetterthananyoneelsetheoften

complexstepsnecessarytomoveaprojectforwardtoultimateapproval.

Developinggood,supportiveworkingrelationshipswiththesestaffcanmean

thedifferencebetweensuccessandfailure.

Technical Partners

Mostfoodaccessprojectsrequiretechnicalskillssuchasrealestate

development,businessdevelopment,orbusinessmanagement.Foodand

nutritionadvocatesgenerallydon’talreadyhavethesespecializedskills,so

itisimportantattheoutsetofaprojecttoidentifypartnersthatbringkey

technicalskillstotheeffort.

Itisdifficultforhealthadvocatestoeffectivelyadvocateforthedevelopment

ofanewsupermarket,forexample,withouttheinvolvementofsomeone

withrealestatedevelopmentexperience.Manycommunitieshavelocal

nonprofitcommunitydevelopmentcorporations(CDCs)oraffordable

housingdevelopersthatcanprovideessentialsupportforredevelopment

projects,eveniftheydon’tultimatelyserveasprojectdevelopers.Similarly,

projectsthataimtoimproveexistingneighborhoodstorescanbenefitfrom

partnershipwithagenciesthatalreadyhaveskillsinsmallbusinesstechnical

assistanceandbusinessfinancing.Anindividualwithexperienceinthe

grocerybusiness,orafirmthatoperatesfarmers’marketsinothercommuni-

ties,couldplaythesamekeyrole.

Inadditiontodirectlystrengtheningtheproposedproject,thesepartnerships

lendessentialcredibilitytotheeffortintheeyesofthosewhowillevaluateit.

Allies and Opponents

Itisimportanttothinkasbroadlyaspossibleaboutthetypesofgroups

orindividualswhomaysupportorchallengeyourprojectbecauseofa

specificpolicyissue.Youmightgenerateenthusiasticsupportfrompeople

orinstitutionswhohavenointerestinfoodaccessorhealthbutareinstead

motivatedbyothereconomicbenefitsoftheproject.Youmightencounter

opposition–inspiteoftheproject’shealthbenefits–becauseofother

necessaryaspects,suchasparkingortrafficimpacts.


Itisimportanttomapoutastrategytoengagepeopleorgroupswithwhom

youmayhavehadlittleornocontactinthepast.Thislistofpotential

supportersisfarfromexhaustivebutshouldprovideastartingplacefor

brainstorming:

Manyofthesegroupsandindividualsmaybepoliticallywellconnected.

Theinterestedentitiesmayvarydependingonthepolicyareayouseekto

influence–forexample,economicdevelopmentorganizationsmaybecome

involvedwithanissuethatfocusesonincreasingthenumberofgrocery

storesinacommunity,whileanenvironmentalgroupmaybeinterestedif

youareseekingtocreateafarmers’market.Takeadvantageofopportunities

toworkincoalition;itstrengthensyoureffectivenessandprovidesopportu-

nitiestoshareworkloads.

Asyousetouttodeveloptheserelationships,itmaybehelpfultokeepa

fewpointsinmind:

4Youmayshareaninterestinanissuewithagroupthatisinterestedinthe

issueforareasonthatdiffersfromyours.Youdon’thavetohavethesame

motivationstoworktogethereffectively.

4 Itisrarelyproductivetotrytosignothersontoyouragenda.Finding/creat-

ingcommongroundwillgenerallybemorefruitfulthantryingtoenlist

othersinpursuingyourgoals.

Affordablehousingadvocates

Chambersofcommerce

Children,youthandfamilyadvocates

Civic(improvement)organizations

Civilrightsorganizations

Communitydevelopmentcorporations

Communityorganizers

Community-basedagricultureadvocates

Community-basedorganizations

Economicjusticeadvocates

Environmentaljusticeorganizations

Faith-basedcommunities

Farmers’organizations

Foodsecurityorganizations

Foodstampadvocates

Grassrootsorganizations

Homelessadvocates

Homeownersassociations

Landuseattorneys

Lobbyists

Merchantassociations

Neighborhoodorganizations

Organizedlabor

Planningandlanduseprofessionals

Planningadvocates

Povertyadvocates

Publictransportationadvocates

Realestatedevelopers

Senioradvocates

Smartgrowthgroups


4Often,otherpeoplehavebeenworkingonyour(orrelated)issuesfora

longtime.Supportingtheirprocessmaybemoreproductivethanrunning

aparallelprocess,especiallyifyouareworkingwithlimitedresources.

Alliesandopponentsmayemergewhileyouarelayinggroundwork,oryou

maydecidetorecruitspecificallies.Communityorganizingstrategiesand

techniquesarebeyondthescopeofthistoolkit,buttherearemanyexcellent

resourcesavailabletodevelopthesecapacities.Similarly,therearesuperb

resourcesavailabletodevelopexpertiseinmanagingopposition.

Potential Motivators

Foodaccessprojectsareoftencomplexandexpensive.Inmostcases,the

healthbenefitsofincreasedfoodaccessisonlyoneofseveralimportantfac-

torsmotivatingthepublicandprivateinstitutionsthatmaketheseprojects

possible.Someofthecommonreasonsthatotherinterestgroupssupport

economicdevelopmentandredevelopmentprojectsinclude:

Taxrevenue:Localgovernmentsandlocalbusinessinterestsareoften

motivatedtosupportredevelopmentprojectsthattheyperceiveascontribut-

ingtothelocaltaxbase.Evenwherearedevelopmentareacapturesany

propertytaxincreases,grocerystoreprojectsgenerateincreasedsalestax

revenue,whichsupportskeylocalprograms.

Jobcreation:Supermarketsandsmallgrocerystoresgeneratenewjobs

andfrequentlyhirelocallyforthesepositions.Manycommunitieshave

negotiatedhiringagreementswithsupermarketchainsthatmakenewjobs

availablefirsttolocalresidents.Electedofficials,neighborhoodleaders,and

businessorganizationsmaybemotivatedtosupportafoodaccessproject

bythesejobcommitments.

Qualityoflife:Foodstoresprovideforbasicneedsbeyondhealthyfoodand

generatecustomersthatpatronizeotherneighborhoodbusinesses.Quality

storeshelpcreateapositiveimageforacommunityandcombatcrimeby

bringinglifetothestreets.Thesequality-of-lifefactorsmaymotivatemany

localresidentstosupportgrocerystoreprojects.

Businessdevelopment:Programsthatprovideassistancetosmallstoresto

improvefoodaccessmayalsohelpstrengthentheselocallyownedbusi-

nesses,andcandrawsupportfromotherinstitutionsthatarefocusedon

creatingentrepreneurshipopportunities.

Blightremoval:Manysupermarketprojectsaredevelopedonsitesthathave

beenlongabandoned.Thesevacantlotscontributetocrimeandmakeother

neighborhooddevelopmentmoredifficult.Afoodstorethatlocatesonsuch


avacantparcelremovesapotentialnegativefactorandreplacesitwitha

positiveone.

Smartgrowth:Urbanfoodaccessprojectsfrequentlycontributetomore

compactandlivableurbanneighborhoodsanddiscourageautodependence.

Smartgrowthadvocatesoftenseesupportinginner-cityredevelopmentasa

waytocurbsuburbansprawl.

Profit:Storeoperators,aswellasrealestatedeveloperswhobuildsuper-

marketorsmall-storeprojects,standtoearnsignificantprofitsbyserving

communitiesthatarecurrentlyunderserved.Whilethereareuniquerisks

andchallengesintheseprojects,thesefactorsoftenkeepcompetitorsaway

andofferuniqueopportunitiestoearnhigher-than-averageprofits.

DataCollection 93

Havingappropriatedatatosupportyourcasecanmakeanenormous

differenceinaproject’slikelihoodofsuccess.

Makingthecaseforafoodaccessprojectcanbecomplicated,anditmay

involvecollectingmorethanonekindofsupportingdata.Itisnotnecessarily

enoughtoshowthatacommunitylacksaccesstohealthyfood.Advocates

mayneedtodemonstratethataneconomicopportunityexiststoprovide

foodaccess–onethatmightultimatelybeselfsustainingwiththeappropri-

atepublicsupport.

Theargumentinfavorofaprojecttypicallyinvolvesdemonstratingthe

following:

4Obesityandobesity-relatedhealthproblemsareepidemicintheUnited

States,andthelackofaccesstohealthyfoodsisacontributingfactorto

theobesityepidemic

4Thisisreflectedinthelocalcommunity,whichsuffershigh(andrising?)

obesity,diabetes,andheartdiseaserates

4Certainlocalneighborhoodslackadequateaccesstohealthyfoods

4Thereisanunmeteconomicopportunitytoprovideincreasedaccessto

healthyfoodinthiscommunity

Beforeyoubegincollectingdata,takeamomenttoassessthepolitical

climateinyourcommunity.Consideringtheaudienceforyourdatawillhelp

youdecidewhatkindsofinformationwillbemostpersuasive.Keepinmind

thatmuchofthisinformationhasalreadybeencollectedelsewhere.For

example,youmayfindthatyoureconomicdevelopmentofficialsarealready

wellawareoftheunmetdemandforfoodretailinyourcommunity.Inthat

case,itmightbemostusefultopresentcompellinghealthdatatocreatea

senseofurgency.

Consider,too,howyourdatawillplayinthemedia.Sinceitcanbedifficultto

determinetherelationshipbetweenenvironmentalfactorsandhealth,some

researchresultscanappearinconclusive.Becarefultomanagehowthe

dataispresentedtodecisionmakers,thepress,andthebroaderpublic,and

developaseriesoftalkingpointsforadvocatesearlyintheprocess.

16 Data Collection


Sincecollectingdatacanbeaverytime-consumingandexpensiveprocess,

youmaywishtoevaluatehowrigorousyourdatacollectionprocessneeds

tobe.Forexample,yourlocalgovernmentofficialsmightbemostresponsive

tohearingthepersonal,qualitativestoriesofresidentswhoareaffectedby

limitedfoodaccess.

Thedatacollectionprocessdescribedbelowisintendedtogiveyouan

exampleofhowyoumightproceed,butthebeststrategytoachievedesired

actionfromlocalgovernmentswillvaryfromcommunitytocommunity.

The Problem at a State and National Level

Someofthestateandnationaldatayoumayneedhasalreadybeencompiled.

TheCentersforDiseaseControlandPrevention1hasextensivenationaland

statedataavailableonobesityandobesity-relatedillness,andalsooffers

informationonnutritionandthebenefitsofphysicalactivity.2Thisdatacan

helpyouwiththefirstandthirditemsonthelistpresentedearlier.Forstate,

county,andlocaldata(thesecondandthirditems),theCaliforniaHealth

InterviewSurvey(CHIS)offersawealthofinformationonthesametopics.3

Local Health Concerns

Obtaininglocalhealthdatacanbeextremelychallenging.Somecounty

healthdepartmentshavewell-staffedepidemiologydepartments;othersfind

thattheirresourcesareabsorbedbyotherpressingneeds.

Itisworthcontactingyourlocalhealthdepartment(or,ifyouworkinthe

healthdepartment,talkingwithstaffepidemiologists)tounderstandwhat

kindofdataisavailable.Forexample,inJanuary2006LosAngelesproduced

Premature Deaths from Heart Disease and Stroke in Los Angeles County: A

Cities and Communities Health Report,whichlooks,citybycity,atpremature

deathratesandpovertyrates.4Thisinformationallowspublichealthstaffto

makepowerfulargumentsaboutthelinksbetweenpovertyanddisease,and

providesacontextinwhichtoofferconcretesuggestionsforbuiltenviron-

mentimprovementsthatmightreversesomeofthesetrends.Thisdatais

especiallyvaluablebecauseitisverylocal,notaggregatedacrosstheentire

countyorevenstate.

Evenifyourhealthdepartmentdoesnothavesuchdetaileddata,findout

whatitdoeshave.Itmaybethatthereisinformationavailable,forexample,

regardingtheratesofdiabetesbeingtreatedatacommunityhealthclinic

thatdrawsmostofitspatientpopulationfromidentifiablezipcodes.

Californiaprivatehospitalsarerequiredtoundertakecommunityneeds

assessmentsuponwhichtheybasetheircommunitybenefitsplans;5this

maybeanothersourcefordata.6

DataCollection 95

Asyoulookbeyondlocalresourcesforfactsandfigures,keepinmindthat

evenifyoucan’tfinddatabycommunityorzipcode,somemightbeavail-

ablebystateassemblyorsenatedistrict.Forexample,inFebruary2005the

UCLACenterforHealthPolicyResearchissuedareportthatlooksatdiabetes

ratesbyassemblyandsenatedistricts.7Similarly,in2005theCalifornia

CenterforPublicHealthAdvocacyreleasedareportonchildhoodobesity

rates,alsopresentedbyassemblydistrict.8 Findoutwhatisavailable–and

useitstrategicallytofurtheryourwork!

Dependingonthepoliciesofyourlocalorstatehealthdepartment,your

datarequestmaytriggerinstitutionalreviewboard(IRB)requirements.In

thiscase,itmaybeusefultopartnerwithalocalacademicinstitutiontohelp

prepareyourrequest.

Local Food Access

Gatheringdataabouttheextentoflocalfoodaccesschallengeswillrequire

someeffort.Inordertodeterminethefoodaccess(healthyandnot)ina

community,thecommunitymustbe“scanned”foravarietyoffactors.

Thefirststepisdeterminingwhetheranyoneelsehascollectedtheinforma-

tionyou’reseeking.Thisresearchservestwopurposes:itpotentiallyallows

youtoavoidreinventingthewheel,andithelpsyouidentifypotentialallies

(seechapter15).TheCommunityFoodSecurityCoalitionisanational

organizationthattrackslocalresearchonfoodaccessacrossthecountry.Its

CommunityFoodAssessmentProgramwebsiteidentifiesseveraldozen

food-accessscansthathavebeencompletedincommunitiesthroughout

California.

Ifyouareunabletolocateanorganizationthathasauditedfoodaccess,you

willneedtoperformacommunityfoodassessmentyourself.Insomecases

advocatesmaybeabletopartnerwithlocaluniversitiestocompletethe

necessaryresearch.Communitymemberscanalsoparticipateinorconduct

theseaudits.Therearemanyexamplesofcompletedcommunityassessments

availableonline,aswellasseveralready-to-usegeneral-purposetemplates.9

Onceyou’vegatheredthedatayouneed,you’llwanttospendsometime

thinkingabouthowbesttopresentwhatyou’vefound.Mapscanbevery

effectiveforshowingwherethingsarelocated–orwheretheirabsenceis

notable.10Chartsorgraphscancommunicatecorrelations–forexample,apie

chartmightshowthepercentageoflow-incomecomparedwiththepercent-

ageofupper-incomeresidentswholivewithintwomilesofafull-service

grocerystore.Youmaywishtocomparehealthoutcomesincommunities

withoutaccesstogrocerystoresagainsthealthoutcomesincommunities

withreadyfoodaccess.11 Youmayalsochoosetoevaluatehowthedensity

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offastfoodoutletsinneighborhoodswithorwithoutsupermarketaccess

affectsthehealthstatusofresidents.12

Gathering Data: A Hypothetical Scenario

NutritionadvocatesinSanovillewanttheircity’snewredevelopmentplanto

reflectacommitmentonthecity’sparttofreshfoodaccessforallresidents,

especiallylow-incomeresidentswhoarefood-stampeligible.Theyplanout

thefollowingsteps:

1. Utilizingcensusdata,theyidentifythethreelowest-incomecensustracts

intheredevelopmentarea.

2.Walkingthetracts,theymapoutthelocationsofallmarketsinthose

tracts.

3.Theycomparethevariousfoodaccesssurveytoolsavailableat

www.foodsecurity.org/cfa_survey.htmlandselectonethatwillbeeasy

touse.

4.Workinginpairs,they“shop”thesamplemarketbasketfromthesurvey

andkeeptrackofthedatatheygather.

5.Theywriteupabriefreportoftheirfindings.Theyalsoprepareafew

visualaids:

a.Amapofeachcensustractwiththemarketlocationsidentified

b.Achartthatshowswhetheragivenmarketbasketitemwasavailableat

agivenstore

c.Photographsofsomeofthepoorerfoodspecimenstheyfound

d.Achartshowingthereare8full-servicesupermarketswithinSanoville,

butnotonewithin1/2mileofanyofthecensustractssurveyed

e.AchartshowingtheprevalenceofobesityinchildreninSanoville,and

inthesurveyedcensustractsinSanoville

DataCollection 97

SanovilleFoodStores

Advocatesidentifiedthethreelowest-incomecensustractsinSanoville,mappingoutthelocationsofallmarketsinthosetracts.

©2005GoogleMaps

ThischartshowshowtheprevalenceofobesityamongchildreninthethreecensustractscompareswiththatinSanovilleandCaliforniaoverall.

Prevalence of Obesity Among Children in Sanoville

Region Percentage of children who are overweight/obese

California 28

Sanoville 28

Censustract18 34

Censustract20 33

Censustract24 32

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FoodAccessSurveysAhypotheticalmarketbasketwasshoppedinallofthestoresinthecensustracts–andintheMegaMartinanotherneighborhoodforcomparison.

DataCollection 99

Summary of Findings

Product Store I Store II Store IIIAverage

Price MegaMart% Price

Difference

Dairy Products

A Fullgallonswereavailablefor$2.25onsale

B Fullgallonswereavailablefor$2.40onsale

C Expiredsell-bydate

D 1⁄2lb.

E 1⁄2lb.

F 1⁄2lb.

G 1⁄2lb.

H 1⁄2dozen,large

I medium

J large

K large

L Bananaswerebrown

MOrangesweremoldy

NOnionsweresprouting

OPotatoesweresprouting

P Breadwasmoldy

QBuy1get1freesaleequatesto$1.25perloaf.

R 10perpackage

S 8perpackage

T 12perpackage

U 10perpackage

V 50perpackage

W50perpackage

1⁄2gal.nonfatmilk $2.96 n/a $4.29 $3.63 $1.80 201%1⁄2gal.2%milk n/a n/a n/a n/a $2.09A n/a1⁄2gal.wholemilk $2.96 $3.79 n/a $3.38 $2.29B 147%1⁄2gal.lactosefree/reducedmilk n/a n/a $5.75 $5.75 $3.50 164%

Powdereddrymilk n/a $11.26C $7.99 $9.63 $2.39 403%

Cheddarcheese $3.99D n/a $4.50E $4.25 $2.79 152%

Mozzarellacheese n/a $4.79F $4.99G $4.89 $3.50 140%

ProcessedAmericancheese $4.99 $5.34 $5.16 $5.16 $2.50 207%

Protein Foods

Onedozeneggs $2.99H $3.72I $4.89J $3.87 $1.99K 194%

18oz.jarofpeanutbutter $4.39 $3.29 $3.98 $3.89 $2.50 155%

Driedbeans $2.29 $1.99 $2.19 $2.16 $0.79 273%

Driedlentils n/a n/a n/a n/a $0.79 n/a

1lb.chicken n/a n/a $6.49 $6.49 $0.99 656%

6oz.cantuna $2.99 $2.98 $3.19 $3.05 $0.66 463%

1lb.groundbeef(<15%fat) n/a n/a $7.99 $7.99 $1.99 402%

Fruits & Vegetables

1lb.carrots n/a $1.55 $1.79 $1.67 $0.59 283%

1lb.bananas n/a $0.89 $1.19L $1.04 $0.79 132%

1lb.apples $1.89 n/a $2.19 $2.04 $0.80 255%

1lb.oranges n/a n/a $1.89M $1.89 $0.59 320%

1lb.tomatoes n/a n/a $3.99 $3.99 $1.50 266%

1lb.onions $1.19N $1.19 $0.99 $1.12 $0.40 281%

1lb.potatoes $0.99O $1.19 $0.99 $1.06 $0.58 182%

Bread & Cereal

1lb.rice,bulk n/a $2.19 n/a $2.19 $0.32 684%

32oz.bagrice $2.59 $2.88 $3.97 $3.15 $1.49 211%

Wholewheatbreadloaf $4.19P n/a $4.89 $4.54 $2.49Q 182%

12oz.bagspaghetti $2.29 $2.29 $2.19 $2.26 $0.79 286%

Flourtortillas n/a $2.71R $2.50S $2.61 $1.99T 131%

Corntortillas $2.79U n/a $4.99V $3.89 $1.50W 259%

Total Market Basket Cost $43.49 $52.05 $92.98 $62.84 $44.40 142%

% of Market Basket Items Available 54% 57% 86% 100%

Average Cost Per Item $2.90 $3.25 $3.87 $3.34 $1.59 211%

Other yes/No yes/No yes/No yes/No

Alcohol Y Y Y Y

Handicappedaccessible N N N Y

Foodstampsaccepted N N Y Y

Creditcardmachine N Y N Y

WICchecksaccepted N N N Y

Nutritionpromotion N N N Y

Microwave N N N Y

Couponsaccepted N N N Y

Storeclubcard N N N Y

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Summary of Findings

Thethreelowest-incomecensustractsinSanoville(tracts18,20,and24),

allofwhicharelocatedwithintheredevelopmentplanarea,weresurveyed.

Tract18doesnothaveanyretailfoodoutlets.Tract20hastwo,andtract24

hasone.Ahypotheticalmarketbasketwasshoppedineachofthethree

storesinthethreecensustracts.Inaddition,thesamemarketbasketwas

shoppedintheMegaMartintheRoseHillneighborhoodforcomparison

purposes.Keyfindingsarepresentedbelow.

4Allproductsweremoreexpensiveatthesmallermarketsinthelower-

incometractsthanequivalentproductsatMegaMart.

4Theaveragetotalmarketbasketatthesmallermarketscost142percent

ofthebasketatMegaMart.However,thecostdifferenceisactuallygreater

thanthisbecausenoneofthesmallerstoreshadalloftheitemscalledfor

inthemarketbasket.

4Theavailabilityoftheitemsrangedfrom54percentto86percent.Mega-

Marthad100percentoftheitemscalledforinthemarketbasket.

4Thecostperitemaveraged$3.34atthesmallerstores,vs.$1.59at

MegaMart–adifferenceof211percent.

4Onlyoneofthesmallmarketsacceptsfoodstamps,andnoneofthem

acceptWIC.MegaMartacceptsboth.Thesmallstorethatacceptsfood

stampshasthehighestper-itemcost:$3.87.

4Spoiledandexpiredfoods,aswellasdentedcansandtornpackaging,

werecommonatthesmallermarkets.

DataCollection 101

Evaluating Economic Opportunities

Ifthegoalistofindmarketsolutionstofoodaccessproblems,documenting

thehealtheffectsofpoorfoodaccessisonlyafirststeptowardasolution.

Thenextstepistoevaluatewhetherovercomingthoseproblemsrepresents

abusinessopportunityforsomeone.Noteveryneighborhoodthatsuffers

fromalackoffreshproducewillbeabletosuccessfullysustainafull-service

supermarket.Whetheritisasupermarket,asmall-formatproducestore,

orafarmers’market,theprojectcanonlysurviveifitultimatelygenerates

enoughbusinesstosupportitscosts.

Ingeneral,itishelpfultounderstandafewbasicfactsaboutthelocal

economy:

4Consumerspending:Howmuchdolocalresidentsspendonfood

annually?Thisinformationisoftenreportedastheaveragespendingper

household–butthetotalspendingforallhouseholdstogethermaybea

bettermeasureofdemandindenseurbanneighborhoods,wherecon-

centrationofhouseholdscanmakeupforlower-than-averagespending.

Inadditiontothetotalspending,itishelpfultounderstandthespecific

qualitiesthatmotivateresidentstochooseonestoreoveranother.Some

peoplearemotivatedbylowprices;otherscaremoreaboutqualityor

convenience.Manyconsumersaremotivatedbytheneedtobuycertain

ethnicspecialtyproductsortoconductbusinessintheirnativelanguage.

Otherfactorslikeperceptionofsafetycanalsomakeadifferenceinwhere

peoplechoosetoshop.

4Competition:Itisimportanttounderstandthelocalfoodstoresthatexist

inandaroundthecommunity,andtoestimatehowmuchofthelocalfood

demandtheyaremeeting.Youwouldliketounderstandwhoshopsatthe

localstores,howfartheycometoshopthere,andwhattheylikeordislike

abouttheexperience.

4Leakage:Inunderservedcommunities,manypeopleleavetheareatodo

someoralloftheirfoodshopping.Thetotalfoodsalesreportedbylocal

storeswillbefarlessthantheamountthatlocalresidentsareestimated

tospendonfood.Thisdifferenceiscalledleakage(or float)–itismoney

thatleavestheneighborhood,whichcouldpotentiallybecapturedbynew

orimprovedlocalfoodstores.Ingeneral,thegreatertheleakage,the

greatertheeconomicopportunityfornewstores.

4Unmetneeds:Evenwheretotalleakageislow,thereareoftenbusiness

opportunitieswhenexistingstoresdoapoorjobofmeetingpeople’sreal

needs.Donotrelyonleakageastheonlyindicatorofmarketopportunity.

Forexample,inmanycommunities,residentshavelittlechoicebutto

patronizesubstandardsupermarketswithhighpricesandlowquality.

0%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Richmond SanFrancisco

LocalSales

Leakage

Total Spending in Grocery Stores

Leakage13

ThecityofRichmondishometojustover

100,000peoplewithamedianincomejust

abovehalfthatofthesurroundingcounty.

Richmondhas44grocerystores,including

supermarketsandcornergroceries/

conveniencestores.Thesestoresare

reportedtosellover$90millioningoods

annually.However,Richmondresidents,

inspiteoftheirrelativelylowerincomes,

areestimatedtospendmorethan$165

millionannuallyingrocerystores.While

localstoresare“capturing”$90million

ofthisspendingpower,$75million

is“leaking”outtostoresoutsidethe

community.14Richmondgrocerystores

areonlycapturinghalfofthespending

poweroflocalresidents,whilestoresin

SanFranciscocapturenearly80percent

ofresident’sspending.


Ahigher-qualitymarketcanoftenreplaceexistingstoresbyproviding

asuperiorproduct,betterpricesorservice,orevenjustanimproved

appearance.Justlikecommunitiesthatlackstores,thosewithpoor-quality

storesareunderserved–inbothcasesarealmarketopportunityexistsfor

asuperiorbusinesstosucceedandmakemoney.

4Supermarkettradeareas:A“gravitymodel”liketheoneillustrated

belowpredictsthetotalpopulationthatislikelytopatronizearealor

potentialsupermarketlocationbystudyingthesite’slocationrelativeto

othercompetingstores.15Eachstoreisthoughttoexertastrongdraw

oncustomerswholiveespeciallyclose,andasomewhatweakerdraw

onthosewholivefurtheraway.Theringsintheillustrationrepresentthe

tradeareasforeachofseveralsupermarketsinanarea.Ratherthandraw

asimpleringaroundasiteandassumethateveryonewithinthatring

willpatronizethestore,gravitymodelsassesstheprobabilitythateach

householdwillshopateachstore.

Store 1

Store 4

Store 3

Store 2

DataCollection 103

Beforeyoubegintocollectthiskindofdatayourself,itisworthdoingsome

researchtoseeifthisinformationhasbeencollectedbefore,eitherby

yourlocalgovernmentorbyotheradvocategroups.Obviously,evaluating

allofthesefactorsiscomplexandrequiresrealtechnicalexpertise.Many

communitiesbeginthisprocessbyhiringaspecializedretailmarketresearch

consultant,butitisalsopossibletocompilesomebasicmarketinformation

tohelpinthedevelopmentofastrategypriortoengagingaconsultant.

Dependingonyourgoals,youmayevenbeabletomakeyourcase

usingdatacollectedinothercommunitieswithasimilardemographic

compositiontoyours.Anumberofcompaniessellbasicmarketreports

thatprovidequantitativedataaboutconsumerdemand,existingsales,and

evenroughestimatesforretailleakage.TwoofthemostpopularareESRI

(www.esribis.com)andClaritas(www.claritas.com).Youcanpurchase

asimplereportfocusedononeneighborhoodforunder$100fromeither

company.Thesebasicreportsarenosubstituteforhiringaqualifiedprofes-

sionalpriortolaunchingasignificantproject,buttheyprovideorganizers

withaquickandinexpensivewaytobeginthinkingandtalkingaboutthe

marketopportunities.

Thiscolumnprovidesanestimateofthetotalamountthatneighborhoodresidesspendannuallyineachtypeofbusinessbothinsidetheneighborhoodandelsewhere.

Thiscolumnlistthetotalannualsalesbybusinessesofeachtypewithinthestudyarea,basedmostlyonsalestaxfigures.

Ifarearesidentsspendmoremoneythanlocalbusinessesreceive,thedifferenceiscalled“leakage”–moneythatisseenasleakingoutsideoftheneighborhood.Azerointhiscolumnwouldmeanthatthetotalsalesequaltheestimatedspendingbylocalresidents.Apositivenumbermeansthatresidentsspendmorethanlocalbusinessessell.Anegativenumber(surplus)meansthatbusinessessellmorethanresidentsarelikelytobespending–i.e.,thatpeoplefromoutsidetheareaareshoppinghere.

Inthisareathereare21foodandbeveragestoresthattogetherdo$25,928,939inannualsales.Residentsintheareaareestimatedtospend$34,330,709eachyearatfoodandbeveragestores.Aleakagefactorof13.9indicatesthatresidentsarespendingmuchoftheirmoneyoutsideofthearea.

Thisreportprovidesa

countofthenumber

ofbusinesseslocated

withinyourstudyarea

ineachofseveral

standardcategories.It

alsoprovidesthenumber

ofemployeesinthese

businesses.

ThisreportwasgeneratedbyESRIBusinessAnalystOnline(http://bao.esri.com).ESRIandESRIglobelogoareregisteredtrademarksofESRI,Inc.


Retail MarketPlace ProfileFromESRIBusinessInformationSolutions

DataCollection 105

Hiring a Market Research Firm

Whilebasicdemographicandeconomicdataarereadilyavailablefrom

firmssuchasESRIandClaritas,demographicsandspendingpowerare

onlytwofactorsthatmightinfluencewhetherstorescansucceedinanew

location.Thereareanumberofresearchandconsultingfirmsthatregularly

contracttoperformmorein-depthmarketstudiestoevaluatethepotential

foradditionalneighborhoodretail.NationalfirmssuchasLISCMetroEdge

(www.metro-edge.com)andSocialCompact(www.socialcompact.org)havedevelopedspecialtoolstouncovertheuntappedspendingpower

presentinmanyunderservedinner-cityneighborhoods.Inaddition,thereare

localeconomicdevelopmentconsultantsineverypartofthecountrywith

experienceconductingretailmarketstudiesforurbanneighborhoods.To

getaclearerpictureofthedemandforfoodretailinanyneighborhood,itis

generallynecessarytocontractwithoneofthesefirms.

Insomecases,localgovernmentagencieswillpayforandoverseethiskind

ofmarketresearch.Forexample,thecityofChicagoproducesneighborhood

reportsshowingtotalretailexpenditureandleakageforfourmajorstore

types,includinggrocerystores.16 Inothercommunities,community-based

organizationsraisemoneyandcontractdirectlyfortheanalysis.17 Ineither

case,itisimportantforcommunityleaderstoparticipateintheprocessof

definingthescopeofworkfortheconsultant.

Itiseasytospendmoneyonamarketstudythatanswersthewrongques-

tions.Itisverycommonformarketresearcherstolimittheirresearchtoan

analysisofspendingpower,forexample.Inneighborhoodswithverylittle

retail,largeamountsofuncapturedspendingpowershouldnotbesurprising.

Documentingtheexactextentofthisleakagedoesnotgenerallymakemuch

ofadifferenceifretailersareavoidingtheareaforotherreasonsentirely.In

thiskindofneighborhood,amarketstudyshouldputthedataincontextby

evaluatingotherfactors,suchassiteavailabilityandtheexistingcompetitive

landscape,whichmighthavemoreofanimpactonaretailer’swillingness

toopenanewstore.Inanothercommunity,thesiteopportunitiesmaybe

clearbutretailersmaybeunderestimatingthelocalspendingpower.Here,

investingconsultanttimeinquantifyingtheleakagemaypayoff.Evenwhen

hiringamarketexpert,communityleadershavetobedirectlyinvolvedin

formulatingthequestionsfortheresearch.

Thesamplerequestforproposals(RFP)inappendix1outlinesafairly

comprehensivescopeofwork.Manycommunitieswillalreadyhavesomeof

thisinformation.Someprojectsmaynotrequireallofthetypesofanalysis

reflectedinthesample.Budgetconcernsmaypreventothercommunities

fromundertakingthisfullscope.


Consumer Surveys

Simpleconsumersurveysalsocanprovideimportantinformationabout

wherepeopleshopandwhy.Ifcommunityresidentsaregenerallyshopping

outsidetheneighborhood,itisimportanttounderstandwheretheygo

andwhytheychoosetogothere.Likethefoodaccessauditdescribed

above,asimplecustomersurveycanprovidestrongammunitionthatcan

helpconvincepolicymakers,developers,andevenretailersthatamarket

opportunityexists.

1 Seewww.cdc.gov/nchs(lastvisited6/15/06).

2 NationalCentersforChronicDiseasePreventionandHealthPromotion,Division of Nutrition and Physical Activity: Home,available atwww.cdc.gov/nccdphp/dnpa(lastvisited9/25/06).

3 Seewww.chis.ucla.edu(lastvisited6/15/06).

4 Seehttp://lapublichealth.org/epi/docs/CHR_CVH.pdf.

5 Health & Safety Code§127350.

6 Individualhospitalsshouldmaketheirplansavailabletothecommunity.CopiesshouldalsobeavailablefromCalifornia’sOfficeofStatewideHealthPlanningandDevelopmentHealthcareInformationDivision:www.oshpd.state.ca.us/HID(lastvisited11/28/06).

7 Seewww.healthpolicy.ucla.edu/pubs/publication.asp?pubID=122.

8 Seewww.publichealthadvocacy.org/policy_briefs/ overweight2004.html.

9 See,forexample,communityfoodassessmentsurveytoolsfromtheCommunityFoodSecurityCoalition(www.foodsecurity.org/cfa_survey.html)ornutritionhandoutsfromtheCaliforniaDepartmentofHealthServices’5aDayCampaign(www.dhs.ca.gov/ps/cdic/cpns/lat5aday/download/handouts.pdf).

10 TheNutritionNetworkoffersanexcellentandeasy-to-usemappingtool,available atwww.cnngis.org(lastvisited6/15/06).

11 SeeaspecialreportfromTheFoodTrust,Food for Every Child,foranexampleofthismethodology,available atwww.thefoodtrust.org.

12 SeeExamining the Health Impact of Food Deserts on Public Health in Chicago(2006),byM.Gallagher,foranexampleofthe“foodbalance”methodology(available atwww.lasallebank.com).

13 ESRIBusinessInformationSolutions,BusinessAnalystOnline,April2006.

14 Ibid.

15 B.Hamilton,Utilizing the Probability Gravity Model to Evaluate Supermarket Expansion in Southern Palm Beach County, Florida,at16(12/12/03),available atwww.clas.ufl.edu/users/rahamilt/pdf/Final%20Presentation%20Hamilton.pdf (lastvisited6/15/06).

16 Seehttp://egov.cityofchicago.org/webportal/COCWebPortal/COC_EDITORIAL/chicagoneighborhoodreports.pdf.

17 See,forexample,TheFoodTrust’sPhiladelphia’s New Markets: Ripe Opportunities for Retailers,available atwww.thefoodtrust.org.

ModelRedevelopmentResolution 107

Itcanbedifficulttoconvincealocalgovernmentorredevelopmentagency

totakeproactivestepstoaddressfoodaccesschallenges.Redevelopment

agencies,forexample,attempttobalancetheconcernsofmanydifferent

constituencies,andaccesstohealthyfoodmaynothavebeenraisedasa

prioritywhenaredevelopmentareawasadopted.

Onestrategyforbringinganagency’sattentiontotheseissues

istobegingraduallywithanon-bindingresolutiondirecting

theagencysimplytostudytheissue.Themodelresolutionin

appendix1isdesignedtobeintroducedtotheredevelopment

agencyboard/commissionbyasympatheticboardmember/

commissionmember.Itsimplyrequiresstafftoholdmeetings

abouttheextentoffoodaccessproblemswithintheredevelop-

mentarea(s)andreportbacktotheboard.Thiskindofprocess

cancreateanopeningforadvocatestomaketheircaseand

identifymoreproactivestepsthattheagencycouldtaketo

improvefoodaccess.

Ifyoudonothaveasympatheticearattheredevelopmentagency,youmay

wishtoexplorethepoliticalimplicationsofaskingtheboardofsupervisors

orcitycounciltopassaresolutionsupportingyourcause.Forexample,in

2005,theSanFranciscoBoardofSupervisorsadoptedaresolutioninfavor

ofcreatinghealthyfoodandactivityenvironments.1

1 Seewww.sfgov.org/site/uploadedfiles/bdsupvrs/resolutions05/r0575-05.pdf.

17 Model Redevelopment Resolution

CommunicatingwithPublicOfficials 109

Onceyouhavecollectedthedatathathelpsbuildyourcase–andhave

possiblygottentheredevelopmentagencytopassaresolutiontostudyfood

accessinyourcommunity–youwillwanttoadvocateforchangesinyour

community.Thiswillinvolvetalkingtothemediaandtopublicofficials.

Thischapteroffersgeneraltipsforadvocatingeffectivelywithelectedand

appointedofficials.Thefirstsetofsuggestionsfocusesonone-on-one

communications,thesecondonpublictestimony.1

Communicating with your Elected/Appointed Officials and Public Agency Staff

In Writing

4Keepitshortandsimple.Presentyouropiniononthesingleissueathand,

andbebrief.Stateyoursupport/oppositionupfront,asmanyofficials

simplytallyadvocacycorrespondencewithoutreadingit.

4Writeyourletterasanindividual,andpreferablyonletterhead(organiza-

tionalorpersonal).

4Personalizeyourletter.Lettheelectedofficialorpublicagencystaffknow

howtheprojectwillaffectyouandothersinthecommunity.

4Beasspecificasyoucanaboutthedetailsoftheproject(thesite,ifoneis

identified,andthetypeofprojectbeingproposed).Makesureyouhavea

specific“ask”ofthepublicofficial.

4Giveyouropinioninabrief,polite,andconciseway.Usearespectfultone

inyourletter.It’sOKtodisagree,butneverattackhimorherpersonally.

4Concludeyourletterbyurgingtheelectedofficialorpublicagencystaffto

takeactioninsupportofyourposition,andthankhimorherfortakingthe

timetoconsideryourviews.Besuretoprovideyourname,andinclude

yourmailingaddressandphonenumber.

4 Ifyouareaconstituentlivinginthelegislator’sdistrict,besuretoinclude

thisfactinyourletter.Sometimesyoumaywishtocontactacommittee

18 Communicating with Public Officials


headorotherofficialwhoservesoutsideofyourarea.Besuretoexplain

howtheissueaffectsyou,andwhatyourconcernsare.

By Telephone

Phonecallsareagreatwaytoletyourpublicofficialsknowrightawayhow

youfeelaboutanissue,especiallyonatime-sensitiveissuesuchasaproject

underconsiderationforapproval.Generally,youwillspeakwithastaff

person,notdirectlytotheofficialwhoseofficeyouarecontacting.

4Beforeyoucall,writeoutalistofthepointsyouwishtomake.

4Callduringbusinesshours(MondaythroughFridaybetween9amand5pm).

4Don’tbeintimidated.Youarenot“bothering”yourlegislatorandhisorher

staffbycalling.Theyreceivedozensofcallseachdayfrompeoplelikeyou.

4 Identify,ifpossible,thespecificprojectyouarecallingabout.

4Bepoliteandbrief.Evenifthelegislatoryouarecontactingisknownto

disagreewithyourposition,askthatheorshe“considerotheropinions”

ontheissue.Thankthepersonyouaretalkingtofortakingthetimeto

hearyouropinion.

In Person

Meetingwithanelectedorappointedofficialisaveryeffectivewayto

conveyamessageaboutaspecificproject.Belowaresomesuggestionsto

considerwhenplanningapersonalvisit.

4Planyourvisitcarefully.Beclearaboutwhatitisyouwanttoachieveand

askoftheofficial.

4 Identifypotentialdevelopers,operators,andprivateequityinvestorsin

advanceofthefirstpublichearingtogiveaddedcredibilitytoboththe

planandtheproponents.

4Makeanappointment.Contacttheappointmentsecretaryorother

appointmentscheduler.Explainyourpurposeformeetingwhenyoumake

yourappointment.

4Bepunctualandpatient.Iftheofficialislate,oryourmeetingisinter-

rupted,beflexible.Iftheopportunitypresentsitself,continueyour

meetingwithastaffmember.

4Beprepared.Wheneverpossible,bringinformationandmaterialssupport-

ingyourpositiontothemeeting.Ifyouhavealotofmaterials,besureto

provideaone-pageexecutivesummary.

CommunicatingwithPublicOfficials 111

4Behelpful.Officialswanttorepresentthebestinterestsoftheirdistrict.

Wheneverpossible,demonstratetheconnectionbetweenwhatyouare

requestingandtheinterestsofthecommunity.

4Beresponsive.Bepreparedtoanswerquestionsorprovideadditional

informationintheeventtheofficialexpressesinterestorasksquestions.

Don’tbeafraidtoadmityoudon’tknowsomething.Ifanofficialwants

informationyoudon’thaveoraskssomethingyoudon’tknow,saythat

youdon’tknowandthenoffertogettheinformation.Besuretofollow

through!

4 Ifappropriate,offeratourthroughthecommunitytoshowofficialswhat

youwantthemtosee.Iftheyaccept,repeatalloftheabove.

4Besuretothankofficialsfortheirservicetothepeople.Whenitis

appropriate,remembertoaskforacommitmentonyourissue.

Providing Testimony at Public Hearings

4Gettoknowtheenvironment.Ifpossible,attendatleastonehearingof

thebodyyou’llappearbeforepriortoyourcalendareddate.Itwillreduce

youranxietyifyouknowhowmeetingsarestructured.

4Bringcommunitymembers,youth,foodstamprecipients,physicians,and

othercontentspecialistswithyou.

4Findouthowmuchtimeyouwillhavetotestify.Differentbodiesprovide

differentamountsoftime;theallottedtimemayvaryfromoneagenda

itemtothenext(statelawrequiresonlythateveryoneprovidingpublic

commentonaparticularitembegiventhesameamountoftime.)Find

outalsohowtogetontothespeakerlist.Somebodiesrequireadvance

sign-up.

4Keepinmindthattheallottedamountoftimemaybedifferentfrom

whatyouexpect,evenifyou’vechecked.Ifameetingisrunninglong,if

alotofpeoplearetheretotestifyonanitem,orifanitemisseenas

non-controversial,theamountoftimefortestimonymaybereduced.Be

preparedtoadjust.

4 Ifyouhavemorematerialtopresentthancanbepresentedinthetime

allotted,considersplittingthepresentationupbetweenseveralpeople,

witheachfocusingonatopic(e.g.,metadata,localdata,apersonalstory).

Ifyouwanttomakesureyourpresentationhappensintheorderyoufeel

willbemosteffective,makesuretoputallofthenamesonthespeakers

listinorder,andexplainyourintenttotheclerk/secretary.


4 Ifthereisoppositiontoyouritem,itmaybeworthwhiletohaveone

speakeronyoursidewhospeakstowardtheendofpubliccommentto

respondtoanyissuesraisedbyopponents.

4Don’tberepetitious.Nobodywantstositthroughahearingthatislonger

thanitneedstobe.Ifyoubringsupportersalong,youmaywishtoask

themtostandorraisetheirhands,butdon’thavetenpeoplespeakto

thesamepointsjustbecauseyoubroughtthemalong.Doacknowledge

theparticipantsinyourcollaborativeeffort;itshowsthestrengthofyour

coalition.

4Practiceyourpresentation!Makesureyouarecomfortablewithyour

materialandanyvisualaidsyouhave.BecarefulwithPowerPoint;you

mayspendallofyourpresentationtimetryingtogetaslideshowrunning

thatwasworkingjustfinehalfanhourearlier.Low-tech(flip-charts,

posterboard)canbejustaseffectiveandislesssubjecttomalfunction.

Ifyouareuncomfortablewithpublicspeaking,trytopracticebeforean

audiencebeforehand.

4Provideanywrittenhandouts,maps,andsuchtothemembersofthebody

atleastaweekaheadoftime.Someofthemwillreaditinpreparation

forthehearing,butifyouhandthemthematerialsasyoubeginspeaking,

noneofthemwillhavetimetodoso.Bringextrahandoutstothehearing

incaseanofficialrequestsanothercopy.

4Manycommunitiesbroadcastpublicmeetingsonlocalcable.Don’t

becomeflusteredbycameras.

4Bepreparedforalongmeeting.Agendasaresubjecttoshuffling.An

itemthatyouexpectwillbeheardataparticulartimemaybeheard

hourslater–orearlier.Hearingscangolateintothenight.Makesure

yourcalendarisclear;you’velinedupchildcare;andyou’vebroughtwater,

snacks,andperhapsknittingoracrosswordpuzzle.

4Bepolite.Looktheofficialsintheeye.Speakclearly.Thankthemfortheir

time.Addressthembytheirhonorifictitlesandtheirnames(Supervisor

Cortez,CommissionerChang,CouncilwomanWashington).Whenthe

bellsignifiesthatyourtimeisup,finishyoursentencewithinfourorfive

words,thanktheofficials,andmoveawayfromthepodium.Ifyoufinish

beforethebellrings,thankthem,askfortheirsupport,andtellthemyou

areavailableforquestions.Ifnoneareforthcoming,takeyourseat.

4Publicizeyourresults!

1 Forinformationaboutmediaadvocacyaroundpublichealthissues,seewww.bmsg.org.

2 Adaptedfromwww.bayareacouncil.org/site/pp.asp?c=dkLRK7MMIqG&b=242058(lastvisited6/15/06).

SampleMarketResearchConsultantRequestforProposals(RFP) 113

Model Document

FOOD ACCESS PROJECT REQUEST FOR PROPOSALS FOR

RETAIL MARKET STUDY

Introduction to the Program

[Describe target area, key stakeholders, and general program goals here]

Key Questions

The purpose of this research project is to help Client to refine a strategy for business development and improved access to fresh food in the community. While improved market information will be useful in a number of different ways, Client has identified the following key questions for this research project:

4 To what extent are existing local food businesses meeting local demand for food and grocery products?

4 Is there sufficient unmet demand to support an additional full-service super-market in the trade area?

4 Are there appropriate sites in the community for the location of a full-service supermarket?

Scope of Assistance

A consultant will be chosen to conduct a retail market study to evaluate the potential for a new supermarket to succeed in the neighborhood.

The study should include, but need not be limited to, the following items:

Background review4 Consultant shall review existing research reports, community planning

documents, and other written material provided by Client and conduct a walking tour of the target area jointly with Client and other key community stakeholders in order to become familiar with the current conditions and community goals for the project.

Appendix 1 Sample Market Research Consultant

Request for Proposals (RFP)

SectionV


Trade area identification4 Based on existing conditions and current plans for the district, Consultant

shall identify appropriate geographic boundaries for the likely primary trade area for a supermarket located in the target district. The trade area should be defined in a way that takes existing physical, social, and psychological boundaries into account.

Demand analysis4 Provide estimates of total consumer spending for groceries within the trade

area.

4 Demand analysis shall incorporate potential spending by individuals employed within the trade area, as appropriate.

Competitive supply analysis4 Consultant shall analyze the neighborhood’s competitive position in relation

to neighboring commercial districts and shopping centers with particular attention to food retail. Consultant will produce a map identifying competi-tive destinations, and a narrative description of the competitive environment and the relative strengths of each competing destination.

4 Consultant shall provide estimates of the total sales by food stores within the identified trade area (including food stamps).

Leakage analysis4 Consultant shall provide detailed estimates of retail sales leakage (comparing

estimated spending (including food stamps spending) with sales of area businesses) in the grocery category.

4 Consultant shall estimate the approximate number of additional square feet of grocery/supermarket space that could be supported assuming that the target district were to succeed in capturing a reasonable share of the identified retail leakage.

Retailer needs analysis4 Consultant shall research retailer requirements and conduct brief interviews

with supermarket operators retailers in order to provide an outline of likely physical, demographic, and economic requirements for appropriate tenants, including:

4 Lot size requirements

4 Parking requirements

4 Traffic/foot traffic/visibility requirements

4 Demographic/economic requirements

4 Population/household density

4 Income level (median income/concentrated buying power)

SampleMarketResearchConsultantRequestforProposals(RFP) 115

4 Age composition

4 Ownership rate

Opportunity site analysis4 Consultant shall evaluate a short list of key real estate development oppor-

tunity sites provided by Client and identify sites that could potentially be appropriate for a supermarket. For each of the most promising sites, Con-sultant shall compile a brief site assessment that provides basic information about the size, location, physical features, and existing buildings on the site, and recommendations for the most appropriate retail configurations for reuse of the site.

RecommendationsBased on the above analysis, Consultant shall provide client with recommenda-tions for:

1. Types of food retailers that would be most likely to succeed in the target area given the existing and expected market conditions

2. Steps that community stakeholders and local government could take to improve the competitive position of the district and its marketability to prospective food retailers of the recommended types

The scope of the assistance should also include regular meetings with the client to ensure understanding of the study, and to help devise next steps.

Proposal Content

Proposals submitted in response to this RFP should contain three parts:

1. Statement of Qualifications This section of the proposal should describe the general capacity of the respondent to the types of assistance listed above and the specific assignment of individuals with the background and skills to carry them out. This section should contain the following:

Firm profile:Describe the applicant firm and the range of services commonly provided. Provide an overview of the firm’s general approach to retail market analysis and experience performing the types of tasks identified above under Scope of Assistance. Please highlight any experience working in underserved urban neighborhoods and/or with community-based organizations.

Project team: Identify all individuals (including any subcontractors) who will be providing the technical assistance services, including a description of their proposed assignments and the skills they bring that are appropriate to the assignments. Please attach a resume for each team member.

References: Provide the name, address, and phone number for three refer-ences who can comment on the respondent’s qualifications.


2. Scope of Work and Timeline This section should describe the specific methodology to be used in produc-ing market studies and provide an estimate of the time commitment required for element.

3. Cost In this section, the respondent should provide a cost breakdown for the proposed costs of the research project, with appropriate explanatory detail and justifying costs and calculations. If applicable, please submit hourly rates for each individual as well.

Selection Process

A committee of local stakeholders will evaluate the proposal received based on the following criteria:

4 Quality of proposal content and consistency with the RFP

4 Overall qualifications and references

4 Experience with the target audience

4 Cost of technical assistance

Responses

Please submit one original and two copies of your proposal by 5:00 pm on Friday, _________________________ to:

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

Feel free to call _________________ at ( ____ ) ________ - __________ with any questions concerning this RFP. Thank you for your interest.

RedevelopmentAgencyModelResolution 117

Model Document

_________________________________ REDEVELOPMENT AGENCY

RESOLUTION NO. ____________

ADOPTING A POLICY TO REDUCE OBESITY AND PROMOTE COMMUNITY HEALTH

WHEREAS, obesity is a leading public health challenge facing California today and is approaching epidemic proportions; and

WHEREAS, medical experts agree that obesity increases the risk for a number of health hazards, including heart disease, stroke, type-2 diabetes, and some cancers; and

WHEREAS, the economic impact of obesity in terms of chronic disease risk fac-tors reaches $21.68 billion a year in California, including $10.2 billion in medical care, $11.2 billion in lost employee productivity, and $338 million in workers’ compensation costs, and will be devastating if left unchecked; and

WHEREAS, the problem of obesity is particularly acute among population groups in low-income, underserved communities that generally have less access to nutritious and healthful foods and fewer opportunities for physical activity; and

WHEREAS, the [City of ______________ /County of ______________] Redevelopment Agency (“Agency”) was established to oversee redevelopment of urban, blighted areas, revitalize the community, and stimulate reinvestment in local neighborhoods, and the Agency has adopted a Redevelopment Plan to help further these purposes; and

WHEREAS, the Agency’s Redevelopment Plan was locally created in order to respond to the specific and unique needs of the community; and

WHEREAS, the Community Redevelopment Law expressly recognizes the impor-tance of access to healthy food in order to improve neighborhoods by including the absence of grocery stores as one of the defining characteristics of urban blight;

Appendix 2 Redevelopment Agency Model Resolution


NOW THEREFORE, BE IT RESOLVED, that, to the maximum extent feasible, the Agency should strive to promote community health, prevent and reduce obesity, and provide access to healthy food and physical activity in Redevelopment Areas;

NOW THEREFORE, BE IT FURTHER RESOLVED, that there may be previ-ously overlooked opportunities for the Agency to integrate public health concerns into its policies and plans for Redevelopment Areas; and

NOW THEREFORE, BE IT FURTHER RESOLVED, that the Agency directs staff to conduct meetings, workshops, or public hearings in order to solicit input from interested individuals and organizations on opportunities and recom-mendations for integrating public health concerns into the Agency’s planning for Redevelopment Areas; and

NOW THEREFORE, BE IT FURTHER RESOLVED, that the Agency directs staff to report back to the Agency Board in [insert time frame] with recom-mendations of ways the Agency may incorporate these public health concerns into actions taken by the Agency in Redevelopment Areas.

ADOPTED BY THE FOLLOWING VOTE:

AYES:

NOES:

ABSENT:

Resources 119

Appendix 3 Resources

Whatfollowsisanalphabeticallistoforganizationsandpublicationsthat

areusefulforeconomicdevelopment,redevelopment,andfoodsecurity

work.Whilethislistiscertainlynotcomprehensive,itshouldhelpyoufind

theinformationyouneedtoachieveyourgoals.

Usetheindexasaquickreferencetoidentifythelistingsmostrelevantto

yourinterests.

Advocacy

Organizations that advocate

AmericanPlanningAssociation

CaliforniaAssociationofLocalAgencyFormationCommis-sions(CALAFCO)

CaliforniaCenterforPublicHealthAdvocacy(CCPHA)

CaliforniaFoodPolicyAdvocates(CFPA)

CommunityFoodSecurityCoalition(CFSC)

TheFoodTrust

InitiativeforaCompetitiveInnerCity(ICIC)

InternationalCouncilofShoppingCenters(ICSC)

LeagueofCaliforniaCities

NationalCongressforCommunityEconomicDevelopment(NCCED)

PolicyLink

StrategicAllianceforHealthyFoodandActiveEnvironments

How-to/resources for


TheFoodTrust

Idealist.org:Civic Engagement Curricula

PolicyLink

ProjectforPublicSpaces(PPS)


AgricultureSeewww.healthyplanning.orgforresources

California Environmental Quality Act (CEQA)Seewww.healthyplanning.orgforresources

Community and Urban GardensSeewww.healthyplanning.orgforresources

Community Development Financial Institutions

CommunityBankoftheBay

EnterpriseCommunityInvestment

LocalInitiativesSupportCorporation(LISC)

NorthernCaliforniaCommunityLoanFund

OpportunityFinanceNetwork

Economics of Food and NutritionTheBrookingsInstitution

CentersforDiseaseControlandPrevention(CDC)


CaliforniaFoodPolicyAdvocates(CFPA)

U.S.DepartmentofAgriculture:FoodandNutritionService

FoodPolicyMarketingCenter

Economic DevelopmentCaliforniaAssociationforLocalEconomicDevelopment


Knowledgeplex




LocalGovernmentCommission

MinorityBusinessDevelopmentAdministration(MBDA)

NationalCongressforCommunityEconomicDevelopment

WilderFoundation

Environmental PlanningSeewww.healthyplanning.orgforresources

Farmers’ MarketsAgriculturalMarketingService(U.S.DepartmentofAgriculture)

CaliforniaDepartmentofHealthServicesPreventionServices

CaliforniaFederationofCertifiedFarmers’Markets

CenterforUrbanEducationaboutSustainableAgriculture(CUESA)


TheFarmers’MarketCoalition

TheFoodTrust


U.S.DepartmentofAgriculture:FoodandNutritionService

Financial support

AgriculturalMarketingService(U.S.DepartmentofAgriculture)

FoundationCenter

Grants.gov


U.S.DepartmentofAgriculture:CommunityFoodProjectsCompetitiveGrantsProgram

Guides to development

SustainableAgricultureEducation(SAGE)

Lists of

AgriculturalMarketingService(U.S.DepartmentofAgriculture)

Financing

Equity investments

CaliforniaPublicEmployees’RetirementSystem(CalPERS)

CaliforniaStateTeachers’RetirementSystem(CalSTRS)

Federal

HistoricTaxCredits

MinorityBusinessDevelopmentAdministration(MBDA)

NewMarketsTaxCredits(NMTC)

SmallBusinessAdministration(SBA)

U.S.DepartmentofCommerce–EconomicDevelopmentAdministration(EDA)

U.S.DepartmentofHealthandHumanServices–OfficeofCommunityServices

U.S.DepartmentofHousingandUrbanDevelopment(HUD)

Grants

FoundationCenter

Grants.gov


U.S.DepartmentofAgriculture:CommunityFacilitiesProgram

U.S.DepartmentofAgriculture:CommunityFoodProjectsCompetitiveGrantsProgram

U.S.DepartmentofHealthandHumanServices:JobOpportunitiesforLow-IncomeIndividuals

U.S.DepartmentofHousingandUrbanDevelopment:BrownfieldsInitiative,CommunityDevelopmentBlockGrants(CDBG)

Local

BusinessImprovementDistrict(BID)

CommunityDevelopmentBlockGrants–SeeU.S.Depart-mentofHousingandUrbanDevelopment(HUD)

CommunityFacilitiesDistrict

IndustrialDevelopmentBonds–SeeTax-ExemptBonds

Section108LoanProgram–SeeU.S.DepartmentofHousingandUrbanDevelopment(HUD)

Tax-ExemptBonds

TaxIncrementFinancing(TIF)

Loans

CaliforniaDebtAllocationCommittee:Small-IssueIndustrialDevelopmentBonds

CalvertFoundation

EnterpriseCommunityInvestment


NorthernCaliforniaCommunityLoanFund(NCCLF)

OpportunityFinanceNetwork

PacificCoastRegionalSmallBusinessDevelopmentCorporation(PCR)

RuralCommunityAssistanceCorporation(RCAC)LoanFund

U.S.DepartmentofHousingandUrbanDevelopment:Section108Loan

WallStreetWithoutWalls

State of California

CaliforniaBusinessPortal

CaliforniaChamberofCommerce

CaliforniaDebtLimitAllocationCommittee(CDLAC)

CaliforniaEnterpriseZones

CaliforniaInfrastructureandEconomicDevelopmentBank

CaliforniaPublicEmployees’RetirementSystem(CalPERS)

Resources 121

CaliforniaStateTeachersRetirementSystem(CalSTRS)

CaliforniaTaxCreditAllocationCommittee(CTAC)

CaliforniaTechnology,TradeandCommerceAgency:DivisionofEconomicDevelopment

Tax credits

CaliforniaEnterpriseZones

CaliforniaTaxCreditAllocationCommittee:CommercialRevitalizationDeductionProgram

NewMarketTaxCredits(NMTC)

Food SecuritySeewww.healthyplanning.orgforresources

Grocery Stores

Financial support

CaliforniaBusinessPortal

CaliforniaChamberofCommerce

CalvertFoundation


MinorityBusinessDevelopmentAdministration

NorthernCaliforniaCommunityLoanFund

PacificCoastRegionalSmallBusinessDevelopmentCorporation


U.S.DepartmentofHealthandHumanServices:JobOpportunitiesforLowIncomeIndividuals

U.S.DepartmentofHousingandUrbanDevelopment:BrownfieldsInitiative,CommunityDevelopmentBlockGrants,Section108

U.S.DepartmentofCommerce,EconomicDevelopmentAdministration

Guides to development


NationalCongressforCommunityEconomicDevelopment

Industry/grocers’ associations

CaliforniaGrocersAssociation


NationalGrocersAssociation(NGA)

Research


CaliforniaNutritionNetworkGeographicInformationSystem(GIS)


FoodMarketingPolicyCenter

TheFoodTrust

PolicyLink

UrbanandEnvironmentalPolicyInstitute(UEPI)

Health DataCaliforniaDepartmentofHealthServicesPreventionServices

CaliforniaHealthInterviewSurvey(CHIS)


NationalInstitutesofHealth(NIH)

SanFranciscoDepartmentofPublicHealth:ProgramonHealth,Equity,andSustainability


Financial support for data and research



FoundationCenter

Grants.gov


HousingSeewww.healthyplanning.orgforresources

Land UseSeewww.healthyplanning.orgforresources

LegislationSeewww.healthyplanning.orgforresources

Mobile MarketsTheFruitGuys

ThePeople’sGrocery

NutritionCaliforniaNutritionNetworkGeographicInformationSystem(GIS)




U.S.DepartmentofAgriculture(USDA)

Financial support


FoundationCenter

Grants.gov




Guidelines





ObesityCaliforniaHealthInterviewSurvey(CHIS)

CenterforLawandthePublic’sHealth:ZoningandObesityProject



Planning

Agencies and commissions

AmericanPlanningAssociation(APA)


CouncilsofGovernment(COG)

SanFranciscoDepartmentofPublicHealth:ProgramonHealth,EquityandSustainability

How-to guides

AmericanPlanningAssociation(APA)

CaliforniaPlannersInformationNetwork(CalPIN)


Knowledgeplex

LocalGovernmentCommission(LGC)

PlannersNetwork

Planner’sWeb


Redevelopment

In California

CaliforniaRedevelopmentAssociation

Guide to California Planning, 3rdedition

Redevelopment in California, 3rdedition

Regulatory framework

Financing Economic Development in the 21st Century

Tax Increment Financing and Economic Development: Uses, Structures, and Impact

Smart GrowthSeewww.healthyplanning.orgforresources

Statistics

Agriculture

Seewww.healthyplanning.orgforresources

Demographics


CaliforniaDepartmentofHealthServices(DHS)PreventionServices



Claritas

DataPlacebyKnowledgeplex

ESRIBusinessAnalystOnline


LocalInitiativesSupportCorporation–MetroEdge

SocialCompact

U.S.CensusBureau

Food policy


FoodPolicyMarketingCenter

Health


CaliforniaCenterforPublicHealthAdvocacy(CCPHA)




DataPlacebyKnowledgeplex

HealthImpactAssessments(HIA)


Quality-of-life indicators



Resources 123

Full Resource List

Agricultural Marketing Service (U.S. Department of Agriculture)www.ams.usda.gov/farmersmarkets

Describingitselfas“anintegralpartintheurban/farmlinkage,”theAgri-

culturalMarketingService(AMS)dedicatesseveralpagesofitswebsiteto

farmers’markets.Hereyoucanfindanextensive,thoughnotcomprehensive,

directorylistedbystateandcity.TheAMSalsoprovidesfactsandstatistics

abouttherisingpopularityoffarmers’marketsfrom1994-2000aswellas

tipsforfundingfarmers’markets.

American Planning Association (APA)www.planning.org

TheAPAisaninternationalnonprofitpublicinterestandresearchorganiza-

tionthatfocusesonplanninginurban,suburban,regional,andruralareas.

Whileitswebsiteoffersmyriadresourcesthatmaybeusefulforlocal

organizingefforts,weespeciallyrecommendthefollowingsections:

4LooktoKnowledgeExchangeforarticles,research,andnewsineasily

searchablesections:SmartGrowthReader,AffordableHousingReader,

Planning&EnvironmentalLaw,andPlanning&LandUseLaw

4SearchYourCommunityforResourcesandtheNeighborhoodPlanning

Initiative(“NeighborhoodRelatedResources”),whichofferlinkstouseful

resourcesandorganizations.

4IntheLegislation&Policysection,theEffectiveAdvocacylinkprovides

atoolboxforemail,faxandletterwritingcampaigns,aswellastipsfor

workingwithmedia.YouwillalsofindPlanningGuidesontopicsincluding

housing,sustainability,smartgrowth,agriculturalland,andsurface

transportation.

4UnderResearch,theProjectslinklistsawealthofinformationabout

healthycommunities,brownfields,“growingsmart,”statelaws,energy,

andplanningandurbandesignstandards.

The Brookings Institutionwww.brook.edu

TheBrookingsInstitutionisanindependent,nationalinformationclearing-

housethatservestofacilitatescholarlyresearchintoawidevarietyofsubjects,

includingU.S.economics.Oneofthepublicationsresultingfromsuch

research,Exposing Urban Legends: The Real Purchasing Power of Central City

Neighborhoods,dealswiththeeconomicjustificationforgrocerystoresto

relocateininner-cityareas.Arecentpublication,From Poverty, Opportunity:

Putting the Market to Work for Lower-Income Families,containseconomic

dataonthehighercostsofbeingpoor,whichmaybeusefultoadvocates.


Business Improvement District (BID)

Businessimprovementdistrictsaregenerallyinitiatedbybusiness

ownerswithinaspecificneighborhoodorcommercialarea.Allbusi-

nessownersagreetopayanextratax,whichispooledandusedfor

capitalimprovements,supplementalservices,security,orotherdesired

changeswithintheBID.MostoftenaBIDiscreatedbypetitioning

thecity,whichsetsthemoneyraisedasideandtrackshowmuchis

availableforimprovements.(Dependingonthestate,BIDscanalso

becalledcommunityimprovementdistricts,economicimprovement

districts,orpublicimprovementdistricts.)Formoreinformation,see

http://web.mit.edu/11.204/www/webportfolio/BID/index.html.

California Association of Local Agency Formation Commissions (CALAFCO)www.calafco.org

LAFCOsworktopreserveagriculturallands,discourageurbansprawl,and

encouragetheorderlygrowthofgovernmentagencies.TheAssociation’s

websiteprovidesacompletedirectoryofLAFCOs,positionpapersonpend-

ingstatelegislation,andresourcelinkstostatewideorganizations,“spheres

ofinfluence”studies,andlegislativereports.

California Association for Local Economic Development (CALED)www.caled.org

CALEDisastatewidetradeassociationofeconomicdevelopmentcorpora-

tionsanddepartmentsservinglocalcitiesandcountiesthroughoutthe

state.Itmaintainsaweblistingofeconomicdevelopmentcorporationsinall

regionsofthestate.

California Business Portalwww.ss.ca.gov/business/business.htm

TheCaliforniaBusinessPortalisfundedthroughandofferedbytheSecretary

ofState’soffice.Theportaloffersstatelegislationandtaxinformationas

wellasfiling,businessstart-up,andbusinessmanagementinformationand

linkstotechnicalassistanceforCaliforniabusinesses.

California Center for Public Health Advocacy (CCPHA)www.publichealthadvocacy.org

CCPHAisanonpartisannonprofitorganizationthatraisesawarenessabout

criticalpublichealthissuesandmobilizescommunitiestopromotetheestab-

lishmentofeffectivestateandlocalhealthpolicies.CCPHAusesthetoolsof

publichealth–epidemiologicalresearch,grassrootsorganizing,publicand

policymakereducation,andpartnershipbuilding–todesignpolicysolutions

toaddresscriticalpublichealthchallengesfacingCaliforniatoday.Onefocus

ofitsworkisexpandingaccesstohealthyfoodincommunities.

Resources 125

California Chamber of Commercewww.calchamber.com

TheCaliforniaChamberofCommerceisfundedthroughthefederaland

stategovernmenttoimprovethejobsandbusinessclimateinCaliforniaby

targetingkeystateandfederalpoliciesthatwillachievethisgoal.Itprovides

informationandlinkagestoresourcesforbusinessesinCaliforniaandserves

asaforumforCaliforniabusinessestoexpresstheirneedstothestate

government.ManycommunitiesinCaliforniahavetheirownlocalchamberof

commerce,whichprovideslocal-levelinformationandresources.

California Debt Limit Allocation Committee (CDLAC)www.treasurer.ca.gov/cdlac/current.htm

CDLACadministersthetax-exemptprivateactivitybondprogramavailable

annuallyforCalifornia.Therearesixprogramsfortheissuanceoftax-exempt

privateactivitybonds,manyfocusedoncreatingaffordablehousing–but

one,theSmall-Issue Industrial Development Bond(IDB)program,relates

toindustrialdevelopmentforeconomicrevitalization.Thisprogrammostly

allocatesfundstotheexpansionofexistingmanufacturingfirms.Federal

andstaterevenuesarenotutilizedinthisprogram.Thebondsissuedare

purchasedbytheprivatesector,andtherepaymentisnotanobligationof

thestateorofthefederalgovernment.

California Department of Health Services (DHS) Prevention Serviceswww.dhs.ca.gov/ps

TheDHSPreventionServicesisagovernmentumbrellathatsupports

community-basedpreventionactivities,amongothers,that“create

measurableimprovementsincommunityhealth.”Programsinclude:

ChronicDiseaseandInjuryControl(CDIC)CancerPrevention&NutritionServicesSection(CPNS)

CaliforniaNutritionNetwork(CNN)–VisittheResourcesareaonCNN’s

websiteforlinksto:

4CACountyFoodAssistanceBinder,whichcontainsrankingsforeach

Californiacountyrelatingtofoodsecurity,hunger,useoffederalfood

assistanceprograms,andbodyweightstatusoflow-incomechildren

4NutritionandPhysicalActivityResourceListofnearly200nutritionand

physicalactivityeducationmaterialscompiledbyCNNpartnersand

grantees

4TheGeographicInformationSystem(GIS),whichisalsolistedinthisguide

California Department of Housing and Community Developmentwww.hcd.ca.gov

TheDepartmentofHousingandCommunityDevelopment(HCD)isthestate’s

principalhousingagency,providing“leadership,policies,andprogramsto


expandandpreservesafeandaffordablehousingopportunitiesandpromote

strongcommunitiesforallCalifornians.”Thefollowingprogramsandonline

resourcesareespeciallyusefulforadvocates:

4Affordable Housing Preservation:Approximately149,000California

homesareprivatelyowned,federallyassistedmultifamilyrentalhousing

occupiedbyelderlypersonsandfamilieswithlowerincomeswhocannot

affordtopaymarket-raterents.Whensubsidiesorregulatoryagreements

expire,manyofthesewillconverttomarket-ratehousing.Tohelpmanage

thiscriticalproblem,HCDprovideslegalregulationsandinformationabout

thisprocess.

4Financial Clearinghouse:TheClearinghouseforAffordableHousingand

CommunityFinanceResourcesisanonlinedatabaseofmorethan200

housingprograms,government,privatelenders,andfoundationgrants.

Thoughdesignedtoassistprivateandnonprofitdevelopersandunitsof

government,individualsarealsopermittedaccess.

4Morethan20HCD Loans and Grantsprogramsprovidefundsfor

construction,acquisition,rehabilitation,andpreservationofaffordable

rentalandownershiphousing,“homelesssheltersandtransitional

housing,publicfacilitiesandinfrastructure,andthedevelopmentof

jobsforlower-incomeworkers.”HCDprovidesthesefundstolocal

publicagencies,serviceproviders,andnonprofitandfor-profithousing

developers,someofwhichcaninturnbeawardedtoindividuals.

California Enterprise Zoneswww.caez.org

ThestateofCaliforniahasdesignated39stateenterprisezones.Businesses

thatlocateintheseeconomicallydisadvantagedareasareeligiblefora

numberofspecialtaxbenefits,includingcreditsforhiringdifficult-to-employ

workers,salestaxcreditsforthepurc¢haseofcapitalequipment,andthe

abilitytoimmediatelydeductcertainpropertythatwouldotherwisehaveto

bedepreciatedovermanyyears.

California Federation of Certified Farmers’ Marketswww.cafarmersmarkets.com

TheCaliforniaFederationofCertifiedFarmers’Marketsisastatewidetrade

associationoffarmers’markets.Thefederationlobbiesonpolicyissues

affectingfarmers’marketsandmaintainsadirectoryofcertifiedfarmers’

marketsthroughoutthestate.

California Food Policy Advocates (CFPA)www.cfpa.net

CFPAisastatewidepublicpolicyandadvocacyorganizationdedicatedto

improvingthehealthandwellbeingoflow-incomeCaliforniansbyincreasing

Resources 127

theiraccesstonutritiousandaffordablefood.Theorganization’smainareas

ofactionconsistof:

4ResearchthatdemonstratesthescopeandnatureofhungerinCalifornia

andtheefficacyofpublicandprivatefoodprogramsinmitigatingit(A

reportfromCPFA,Neighborhood Groceries: New Access to Healthy Food

in Low-Income Communities,containsprofilesofinnovativefoodretail

models)

4Developmentandpromotionofstrategiesandprogramstomeetthe

nutritionneedsoflow-incomecommunitiesandindividuals

4Publiceducationandadvocacytoensuretheinclusionofnutritioninthe

formationandimplementationofsoundpublicpolicy

4Technicalassistance,training,andsupporttolow-incomecommunities

intheireffortstoidentifyandovercomehungerandhunger-related

deficiencies

4Collaboration(throughconferences,communication,andcoalition-building)

amongfoodprogramprovidersandothercommunity-basedorganizations

throughoutCaliforniatofacilitatetheirworkingtogethertomitigate

hungerandpoverty

California Grocers Associationwww.cagrocers.com

TheCaliforniaGrocersAssociationisanonprofit,statewidetradeassociation

representingthefoodindustrysince1898.Itrepresentsapproximately500

retailmembersoperatingover6,000foodstoresinCaliforniaandNevada

andapproximately300grocerysuppliercompanies.Retailmembership

includeschainandindependentsupermarkets,conveniencestores,and

massmerchandisers.

California Health Interview Survey (CHIS)www.chis.ucla.edu

Everytwoyears,researchersfromUCLA,theDepartmentofHealth

Services,andthePublicHealthInstitutesurveymorethan40,000California

households,inmultiplelanguages,abouttheirhealthandhealthcare.This

informationiscompiledintoaCHISdatabase,availableonline,thatoffers

statewideinformationontheoverallpopulation,includingmanyracial

andethnicgroups,andlocal-levelinformationonmostcountiesforhealth

planningandimportantcomparisonpurposes.

California Infrastructure and Economic Development Bankwww.ibank.ca.gov

Statescanissuetax-exemptbondstohelpfinancelarge-scaleprojects.A

bondisissuedaslong-termdebt,andtheproceedsfromthesaleofthis


debtarechanneledintoprojectsthatthestatedeemsnecessary.General

fundbondsareissuedtosupportongoingprogramsorgovernmentactivities,

andtheyarerepaidfromthestate’sgeneraltaxreceipts.Revenuebondsare

usedtofinancespecificprojectswithrepaymentproceedsgeneratedbythe

projectitself.(Forexample,bondsissuedtofinanceabridgemightberepaid

fromtollrevenue.)California’sInfrastructureandEconomicDevelopment

Bank,aprogramoftheStateDepartmentofCommerce,issuesindustrial

development bondstofinancemanufacturingfacilitiesand501(c)3 revenue

bondstofinancecommunity-servingfacilitiesdevelopedbynonprofit

organizations.Italsooperatesabond-fundedrevolvingloanprogramfor

localgovernment-sponsoredinfrastructureprojects.Thesebondfunds

mightbeusedtofinancesupermarketprojects.Thesebondprogramsmake

itpossibleforprojectstoborrowmoneyatalowerinterestratethanthey

wouldotherwisepay.

California Nutrition Network Geographic Information System (GIS)www.cnngis.org

Thisonlinedatabasetoolallowsyoutosearchfornutritiondataanddisplay

itasavisual,geographicalmap.Forexample,thetoolcouldenableyouto

createamapthatdisplaysgrocerystorelocationsonacountymap,aswell

astheraceandlanguagedemographicsofresidentswholivenearby.The

GIStoolincludesdataon:

4nutritionandschoolhealthprograms

4WICgrocerystores

4otherlocalfoodandnutritionresources

4demographicsofgeneralandat-riskpopulations

4variousDepartmentofHealthServicesregions

4political(senateandassembly)districts

California Planners Information Network (CalPIN)www.calpin.ca.gov

CalPINisanonline,searchabledatabaseofgeneralplansandplanningagen-

ciesinCalifornia.Usethiswebsitetofindthenamesandcontactinformation

forkeyplanningofficialsandLAFCOs,regionalplans,thecurrentstatusofa

localgeneralplan,andmore.CalPINalsoincludesabulletinboarddiscus-

sionforlocalplanners.TheinformationpublishedonCalPINisalsoprintedin

anannualguidecalledtheCalifornia Planners’ Book of Lists.

California Public Employees’ Retirement System (CalPERS) www.calpers.ca.gov

CalPERSisamutualfundforallpublicemployeesinCalifornia.Itcollects

retirementcontributionsfromemployeesandmatchingfundsfromtheir

Resources 129

employers,andinveststhosefundsinlong-termprojects.CalPERShastwo

investmentprogramsrelatedtoeconomicdevelopmentinCalifornia:

4TheCalifornia Urban Real Estate (CURE)investmentsstrategyis

focusedonaddressingboththehousingshortageaswellasalackof

generaldevelopmentinurbaninfilllocationsthroughoutthestate.The

projectprioritizeseconomicdevelopment,mixed-usedevelopments,and

commercialdevelopmentsforawardingequityinprojects.$1.6billionhas

beenallocatedfortheCaliforniaurbaninfillinvestment.

4TheCalifornia Initiativeisdesignedtodeployequitycapitaltosmall-and

middle-marketcompaniesintraditionallyunderservedmarketsprimarily,

butnotexclusively,locatedinCalifornia.Theobjectiveistodiscoverand

investinopportunitiesthatmayhavebeenbypassedornotreviewedby

othersourcesofinvestmentcapital.Seedandearly-stagecapital,later-

stageventurecapital,growth/expansion-stagecapital,middle-market

buyouts,andcorporatepartnershipstorelocateorexpandoperationsin

underservedareasarealleligibleforinvestment.Underservedmarkets

canbeinurbanandruralareaswhereunderutilizedassetsandresources

maybeleveragedfortheformationofnewbusinessesorinvestmentsin

companiesthatprovidegoodsandservicestotraditionallyoverlooked

consumergroups.

California Redevelopment Associationwww.calredevelop.org

TheCaliforniaRedevelopmentAssociationrepresentsredevelopment

agenciesandalliedfirmsthroughoutthestateofCalifornia.Theassociation

respondstolegislativeproposalsandadministrativeregulationswithits

memberagenciesaswellasprovidingmemberservices,conductingtraining

andprofessionaldevelopmentevents,andprovidingpublicinformation

regardingredevelopmentlawandactivities.Thewebsiteholdsgeneral

informationaboutredevelopmentandrelatedtopicsinCalifornia,aswellas

legislativeupdates.

California State Teachers’ Retirement System (CalSTRS)www.calstrs.com

SimilartoCalPERS,CalSTRSisamutualfundforallCaliforniateachers.It

collectsretirementcontributionsfromemployeesandmatchingfundsfrom

theiremployers,andinveststhosefundsinlong-termprojects.CalSTRShas

twoinvestmentprogramsthatrelatedtoeconomicdevelopmentinCalifornia:

4TheUrbanRealEstateProgramisdesignedtoinvestinrealpropertyin

underservedmarkets,primarilyinCalifornia.Thefundsareeligiblefor

residential,office,retail,entertainment,hotel,andmixed-useprojects,and

prioritizeanythatimplementanurbaninfilland“smartgrowth”strategy.


$500millionisavailabletoinvestthroughpartnershipsanddirect

investments.

4UnderservedUrbanandRuralMarketsandNewandNextGeneration

Managersfundsaredesignedtomakeprivateequityinvestmentsin

marketsthathavebeentraditionallyunderserved.TheBankofAmerica

CaliforniaCommunityVentureFundtargetsfundsinvestingincompanies

thatprovidegoodsandservicestounderservedmarkets,employethnic

minoritiesandwomen,orhavemanagementandownershipbyethnic

minoritiesandwomen.TheYucaipaCorporateInitiativesandNogales

InvestorFundsbothmakedirectinvestmentsincompaniesmeetingeach

oftheirrespectiveunderservedstrategiesandperformancecriteria.$250

millionisallocatedtoUnderservedUrbanandRuralMarkets.

California Tax Credit Allocation Committee (CTAC)www.treasurer.ca.gov/ctcac

CTACissuestaxcreditsonacompetitivebasistononprofitspursuingwork

thataccomplishesstatedprioritiesinCalifornia.Nonprofitsreceivingtax

creditscanthensellthecreditstofor-profitinvestorsinordertoraisecapital

fordevelopmentprojects.Inreturntheinvestorscandeducttheamountof

thetaxcreditfromtheirtaxes.CTAChasoneprogramfocusedspecificallyon

encouragingeconomicrevitalizationinthestate:

TheCommercial Revitalization Deduction Programisafederalprogram

designedtostimulatejobgrowth,economicdevelopment,andinvolvement

ofnonprofitsandresidentswithinfederallydesignatedrenewal communities.

WithinCalifornia,areaseligibletoreceivethesecreditsincludeportionsof

thecitiesofSanFrancisco,LosAngeles,andSanDiego,aswellastherural

communitiesofOrangeCoveandParlier.Underthisprogram,eachcom-

munityisallowedtoutilizeavarietyoftaxincentivestostimulateeconomic

revitalizationwithinitsrenewalcommunity.CTCACcanallocateupto$12

millionintaxdeductionstoqualifyingbusinessesineachoftherenewal

communitiesannuallythrough2009.Taxcreditsaregiventoorganizations

thatacquireandrenovate,rehabilitateexistingstructure(s),orbuildproperty

forcommercialuse.Prioritiesarejobcreationandcommercial/economic

revitalization.

California Technology, Trade, and Commerce Agency: Division of Economic Developmenthttp://commerce.ca.gov/state/ttca/ttca_homepage.jsp

TheDivisionofEconomicDevelopmentisdedicatedtosupportingthelocal

businessandcommunity.Itsdifferentofficesprovidefinancialresourcesfor

projectsrangingfromcreatinginfrastructurethatcanhelpimprovetheability

todobusinessinCaliforniatoprovidingdirectassistancetoCalifornia-based

businesses,aswellasprovidingtrainingandassistanceforsmallbusiness

Resources 131

ownersinterestedinstartingabusinessinCalifornia.Italsohasinformation

aboutcommunitiesinCaliforniatargetedforeconomicdevelopmentand

theprogramsavailableforbusinessesinterestedinlocatingintheseareas.

Additionally,theagencyoffersresourcesforexpandingexistingbusinesses

andinformationabouthowtodobusinesswiththestateitself.

Calvert Foundation www.calvertfoundation.org

TheCalvertSocialInvestmentFoundationhasinvestment,research,and

donationproductsthatsupportcommunitydevelopmentorganizations,

acrossthecountryandaroundtheworld.Throughsociallyresponsible

investment,theCalvertFoundationsupportsaffordablehousing,microcredit,

andsocialenterpriseprogramsthatcreatejobs,buildhomes,andchange

lives.TheCalvertFoundationmakesloanstoCDCsbringingeconomic

developmenttolow-incomeareasthatdonothaveaccesstotraditional

financingstructures.

Center for Law and the Public’s Health: Zoning and Obesity Project www.publichealthlaw.net/Research/Affprojects.htm

Byexaminingwaysforzoninglawstoencourageaccesstonutritiousfood

andlimitaccesstonon-nutritiousfood,thisproject’sgoalistoeducate

planners,publichealthofficials,andothersabouthow“zoninglawhasthe

potentialtobeaneffectivetoolforaddressingobesityasapublichealth

problem.”Twooftheproject’spublicationsofferlegalanalysisandpotential

strategiesforusingzoningtocombatobesity:

4The City Planner’s Guide to the Obesity Epidemic: Zoning and Fast Food

4The Use of Zoning to Restrict Fast Food Outlets: A Potential Strategy to

Combat Obesity(asupplementtotheCity Planner’s Guide,thismonograph

alsodiscusseszoning’straditionalfocusonprotectingthepublic’shealth)

Center for Urban Education about Sustainable Agriculture (CUESA)www.cuesa.org

CUESAisaBayAreanonprofitorganizationthateducatesurbanconsumers

aboutsustainableagricultureand“createslinksbetweenurbandwellersand

thefarmerswhopracticesustainableagriculture.”CUESApublishesoneof

themostextensivefarmers’marketwebsites.

4TheSustainable AgriculturesectionincludesanAtoZoverview(from

“AnimalsGrazing”to“ZonesthatBuffer”),glossary,andlistoflinksrelated

tothesection’snamesake.Alsovisit“IssuesinaNutshell”forinformation

abouthowfaryourfoodtravelstogettoyourplate,andwhatdetermines

foodquality.


4TheSeasonalitysectionincludesarecipearchiveand“Vegetable

Calendar”thatexplainswhenspecificvegetablesareinseason.

4TheFarmers’ Marketsectionliststhemorethan100farmersandartisans

thatparticipateinCUESA’sFerryPlazaFarmersMarket,whichisheld

SaturdaysindowntownSanFrancisco.

Centers for Disease Control and Prevention (CDC)www.cdc.gov

TheCentersforDiseaseControlandPrevention(CDC),abranchoftheU.S.

DepartmentofHealthandHumanServices,conductsresearch,publishes

up-to-dateinformation,andfundsormanages“publichealtheffortsto

preventandcontrolinfectiousandchronicdiseases,injuries,workplace

hazards,disabilities,andenvironmentalhealththreats.”TheCDCwebsiteis

anextensiveresourcefordataandguidelinesonhealthandhealthpromo-

tion,updateddaily.Advocatesmaybeespeciallyinterestedinthefollowing

sections:

4Environmental Health:Visit“UrbanPlanningforHealthyPlaces”for

informationaboutaccessibilityforpeoplewithphysicalimpairments,

children’shealth,andthebuiltenvironment.AlsoseethePhysicalActivity

pageforresearchandguidelinesaboutreducingobesityanddiabetes.

4TheGuide to Community Preventive Servicesreportsevidence-based

recommendationsoneffectivepopulation-levelinterventionstopromote

physicalactivity:www.cdc.gov/nccdphp/dnpa/physical/recommendations.htm

4TheOverweight and Obesitysectionidentifieshealthandeconomic

consequencesofobesityonlocalandnationallevels,provides

recommendationsandstate-basedprogramsforcombating

obesity,andclearlydefinesobesityanditscontributingfactors:www.cdc.gov/nccdphp/dnpa/obesity

4Improving Nutrition and Increasing Physical Activityprovides

comprehensiveobesitystatisticsandlinkspoornutritionandinactivityto

healthandtheeconomy:www.cdc.gov/nccdphp/bb_nutrition

Claritaswww.claritas.com

Claritasisaprivatecompanythatsellsmarketresearchdatathatis

frequentlyusedtoevaluateeconomicconditionssurroundingpotential

retaillocations.Claritasreportscanbeusedtoprovideaquicksnapshotof

aneighborhoodeconomyandtoevaluatethedemandforadditionalfood

retail.(SeealsoESRIBusinessAnalystOnline.)

Resources 133

Community Bank of the Baywww.communitybankbay.com

CommunityBankoftheBayisaprivatecommunitydevelopmentbank

locatedinOaklandandcharteredtoprovidefinancingforcommunityand

economicdevelopmentprojectsthroughouttheBayArea.

Community Facilities District (CFD)

Amunicipalitycanformaspecialtaxassessmentdistricttofinancevarious

capitalinfrastructureprojectsthroughthesaleofbonds.Unliketaxincre-

mentfinancing,thesespecialassessmentdistrictsresultinanetincreasein

thetaxthateachpropertyownerpays.Theadditionaltaxrevenueisused

torepaythebonds.Whilebondproceedsgenerallycannotbeusedtopay

directdevelopmentcosts,thefundsareoftenusedtopayforbasicinfra-

structurelikeroadsandsewers,whichcanlowerthecostofdevelopinglarge

projects.Acommunityfacilitiesdistricthelpedfinancekeyinfrastructure

relatedtoasupermarketdevelopmentprojectinMarinCity,California.

Community Food Security Coalition (CFSC)www.foodsecurity.org

TheCFSCisanationalcoalitionof325socialandeconomicjustice,

environmental,nutrition,sustainableagriculture,communitydevelopment,

labor,anti-poverty,anti-hunger,andothergroupsthatworktogetherto

ensureaccessto“affordable,nutritious,andculturallyappropriatefoodto

allpeople,atalltimes.”Theirextensivecombinedeffortsprovideuseful

resourcesforadvocates.

4TheCaliforniaFoodandJusticeCoalitionisastatewidemembership

coalitionthatcollaborateswithcommunity-basedfoodsecurityeffortsin

California.

4FarmtoSchoolandFarmtoCollegeprogramsincorporateproduceinto

schoollunches,snacks,andsaladbars.Theprograms’webpagesprovide

organizingtools,casestudies,publications&links,andalistofpossible

fundingsources.

4TheCFSCiscurrentlyadvocatingfornationalpolicyeffortsthatmaybe

relevanttolocalCaliforniaefforts.Amongothertopics,CFSCalready

successfullyadvocatedtocreateandreauthorizetheCommunityFood

Projectsgrantprogram,whichfundsmorethan100projects,andto

reinstatetheWICandSeniorFarmers’MarketNutritionPrograms,which

providevouchersforWICrecipientsandlow-incomeseniorstouseat

farmers’markets.

4Trainingandtechnicalassistanceresourcescovertopicsincluding

evaluationsandcommunityfoodassessments.


Councils of Governments (COGs)

COGscoordinateplanningactivitiesamonglocalgovernmentsinaregion.

Californiaisdividedinto25regions,eachrepresentedbyanindependent

COGthataddressesfunding,long-rangeplanning,affordablehousing,

transportation,andotherissuesimportanttoitsregion:

4Assn.ofBayAreaGovts.(ABAG) www.abag.ca.gov

4Assn.ofMontereyBayAreaGovts.(AMBAG) www.ambag.org

4ButteCountyAssn.ofGovts.(BCAG) www.bcag.org

4CentralSierraPlanningCouncilandEconomicDevelopmentDistrict

4CouncilofFresnoCountyGovts. www.fresnocog.org

4EasternSierraCouncilofGovts.

4HumboldtCountyAssn.ofGovts.(HCAG) www.hcaog.net

4KernCouncilofGovts.(KernCOG) www.kerncog.org

4KingsCountyAssn.ofGovts.(KCAG) www.co.kings.ca.us

4LakeCounty-CityAreawidePlanningCouncil

4MendocinoCouncilofGovs.(MCOG) www.mendocinocog.org

4MercedCountyAssn.ofGovts.(MCAG) www.mcag.cog.ca.us

4SacramentoAreaCouncilofGovts.(SACOG) www.sacog.org

4SanBenitoCountyCouncilofGovts. www.sanbenitocog.org

4SanDiegoAssociationofGovernments(SANDAG) www.sandag.org

4SanJoaquinCouncilofGovts.(SJCOG) www.sjcog.org

4SanLouisObispoCouncilofGovts.(SLOCOG) www.slocog.org

4SantaBarbaraCountyAssn.ofGovts. www.sbcag.org

4SierraPlanningOrganizationandEconomicDevelopment

District www.sedd.org

4SiskiyouAssn.ofGovernmentalEntities(SAGE) www.co.siskiyou.ca.gov

4SouthernCaliforniaAssn.ofGovts.(SCAG) www.scag.ca.gov

4CoachellaValleyAssn.ofGovts.(CVAG) www.cvag.org

4ImperialValleyAssn.ofGovts.(IVAG)

4SanBernardinoAssn.ofGovts.(SANBAG) www.sanbag.ca.gov

4VenturaCouncilofGovts.

4WesternRiversideCouncilofGovts.(WRCOG) www.wrcog.cog.ca.us

4StanislausCouncilofGovts.(StanCOG) www.stancog.org

4TahoeRegionalPlanningAgency(TRPA) www.trpa.org

Resources 135

4Tri-CountyAreaPlanningCouncil

4TulareCountyAssn.ofGovts.(TCAG) www.tularecog.org

DataPlacewww.dataplace.org

DataPlaceisanextensiveandsimple-to-usedatabaseofhousingand

demographicdata.Inadditiontoassemblingavarietyofdatafrom

multiplesources,DataPlaceprovidescutting-edgetoolsthatletyoudisplay

informationusingcharts,profiles,andevensatellite-renderedimagesand

maps.Thesitealsoassistsyouwithanalyzing,interpreting,andapplying

theinformation,soyoucanmakemoreinformeddecisions.AsofNovember

2005,DataPlacecompilesdatafromthefollowingsources:

41990Census

42000Census

4HomeMortgageDisclosureAct

4Section8ExpiringUseDatabase

4ConsolidatedPlanspecialtabulations

WehighlyrecommendDataPlaceforalllanduseefforts.Itisaprojectof

KnowledgePlex,whichisalsolistedinthisguide.DataPlacewillsooninclude

datafromtheU.S.DepartmentofHousingandUrbanDevelopmentandfrom

theCensusBureau’sZIPBusinessPatternsDatabase.

Enterprise Community Investmentwww.enterprisecommunity.com

Enterpriseisanationalleaderininvestmentanddevelopmentservicesfor

affordablehousingandcommunityrevitalizationefforts.Usingtaxcredits,

financing,andotherinvestmentmeans,EnterpriseCommunityInvestment

developsandacquiresaffordablehousingandothercommunitydevelop-

mentinitiativesinunderservedneighborhoodsacrossthecountry.

ESRI Business Analyst Onlinehttp://bao.esri.com

ESRIsellsprepackagedmarketdatareports,whichhelpretailers,realestate

developers,andothersunderstandlocaleconomicconditions.

Fannie Maewww.fanniemae.com

FannieMaeisaprivate,shareholder-ownedcompanythatoperatesundera

congressionalchartertoprovidefinancialproductsandservices–including

mortgages–thathelplow-,moderate-,andmiddle-incomefamiliespurchase

homes.FannieMaedoesnotlendmoneydirectlytohomebuyersbutworks

withlenderstomakesuretheydon’trunoutofmortgagefunds.In2000,


FannieMaeannouncedits“AmericanDreamCommitment”toprovide“$2

trillioninprivatecapitalfor18millionminorityandunderservedAmericansto

ownorrentahomebytheendofthedecade.”Atleasttwoinitiativesofthis

plan,detailedonthecompany’swebsite,areofspecialinteresttoadvocates:

4America’s Living Communities Plan(locatedintheInitiativessection):

TheALCPwillinvestupto$3billionovertenyearsin300communities

tohelplocallenders,developers,governmententities,andnonprofit

organizations“achievetheiraffordablehousinggoalsandinvestintheir

communities.”

4Affordable Housing and Community Development:Bydeveloping

mortgageproducts,services,investments,nationalpartnerships,and

localinitiatives,theHCDprogramworkstoexpandhomeownershipand

affordablerentalhousing.Specifically,theAmericanCommunitiesFund

(ACF)“investsdebtorequityinhousingdevelopmentsthatsupport

neighborhoodsandcommunityrevitalizationefforts,”andCommunity

DevelopmentFinancialInstitutions(CDFI)providesinvestmentcapitalto

community-basedfinancialinstitutionsandintermediariesthatdirectly

supportaffordablehousingdevelopment.

RegistertousethePropertyGeoCoder(intheTools&Resourcessection)to

findoutwhetherpropertiesbeingconsideredforpurchasequalifyforFannie

MaemortgageoptionsandCommunityLendingproducts.

The Farmers’ Market Coalitionwww.nafdma.com/FMC

TheFarmers’MarketCoalition,aprogramoftheNorthAmericanFarmers’

DirectMarketingAssociation(NAFDMA),providesplanningandnetworking

resourcestogroupsacrosstheU.S.thatoperateorpromotefarmersmarkets.

TheCoalition’ssectionoftheNAFDMAwebsitefeaturespressreleases,a

discussionforum,andacalendarofregionalworkshopsthataddresstopics

rangingfromliabilityissuestomediamarketing.

Financing Economic Development in the 21st Centuryby Sammis White, Richard D. Bingham, and Edward W. Hill (ME Sharpe, 2003)

Thisbookoffersacomprehensivesurveyofthemajormechanismsfor

financingeconomicdevelopment.

Food Policy Marketing Center www.fmpc.uconn.edu

TheFoodMarketingPolicyCenterattheUniversityofConnecticutconducts

researchonfoodandagriculturalmarketingandrelatedpolicyquestions.

Thoughprimarilyaneconomicresearchorganization,theCenteralso

providesresearchonselectedfoodaccessandsecurityissues,including

thefirstnationalevaluationof“theabsenceofsupermarketsinmanyurban

Resources 137

neighborhoods.”Twopublicationsareofparticularinteresttoadvocates

interestedindevelopinggrocerystoresinunderservedareas:The Urban

Grocery Store Gap and Market Competition and Metropolitan Area Grocery

Prices.

The Food Trustwww.thefoodtrust.org

Foundedin1992,TheFoodTrustrespondsto“diet-relateddiseaseand

malnutritionbyworkingtoincreaseaccesstoaffordableandnutritious

foodandhelpingpeopletoimprovetheirdiets.”ThePennsylvania-based

organization’swebsiteoffersanextensivelistofreportsandpublications

freefordownload,aswellasteacherlessonplans.Italsodetailsinnovative

andsuccessfulprograms,suchas:

4Supermarket Campaign:TheFoodTrustmanagestheFreshFood

FinancingInitiative,an$80millionpublic-privatepartnershipthatsupports

thedevelopmentofgrocerystoresinunderserved,low-incomeareasof

Pennsylvania.

4Farmers’ Market Program:TheFoodTrust’sfarmers’marketsinclude

nutritioneducationprogrammingandvoucherchecksthatenablelow-

incomepatronstopurchasefreshfruitsandvegetables.

4Corner Store Campaign:Usingsocialmarketingandeducation,this

programworkstoincreasedemandforhealthysnacks.Thisdemand

servesasthebasisforworkingwiththefoodindustrytoincreasethe

availabilityofhealthyfoodchoicesinstores.

Foundation Centerwww.foundationcenter.org

TheFoundationCenterisaone-stopshopwheregrantseekerscanidentify

potentialfundersandlearnhowtonavigatethegrantmakingprocess.The

CentermaintainsacomprehensivelibraryofU.S.philanthropy,whichisavail-

ableonlineforasubscriptionfee,oratnochargeintheirlearningcenterin

SanFrancisco.Thepublishersofthistoolkithighlyrecommendthisresource.

The FruitGuyswww.fruitguys.com

TheFruitGuysisamobilefruitdeliverybusinessofferingfreshfruitto

businessesandindividualswhowouldotherwiselackeasyaccesstohealthy

snacks.TheorganizationgotitsstartbydeliveringfruitoutofaHonda

CivicintheSanFranciscoBayArea,andhasnowexpandedtoservesome

businessesinNevada,Arizona,andNewMexico.Thecompanycontinues

toservemanyunderservedneighborhoodsintheBayArea,focusingon

individualsthatdonothaveaccesstofruitratherthanonbusinessesthat

havestandingorders.


Grants.govhttp://grants.gov

Grants.govisaone-stopshopforfinding,learningabout,andapplyingfor

federalgrants.Itoffersapplicationsformorethan$400billioningrantseach

year–everygrantannouncedbythe26federalgrant-makingagencies.The

databaseissearchablebyprogramarea,agency,RFPdate,andkeyword.

Guide to California Planning, 2nd edition by William B. Fulton (Solano Press Books, 1999)

Oftenusedasacollegetextbook,theGuideprovidesasolidoverviewof

allaspectsoflanduseplanninginCalifornia.Chapter15providesaconcise

overviewofCaliforniaredevelopmentlaw.

Health Impact Assessments (HIA)

HealthImpactAssessmentsareobjectiveprocessesthatcanbeusedto

evaluatehowapolicy,program,orprojectwillaffectthehealthofapopula-

tion.HIAscancallattentiontopublichealthissuesinwaysthatofferhelpful

insightsandrecommendationstodecisionmakers.HIAsareoftencredited

withprovidingtheinformationnecessarytoincreasehealthbenefitsand

minimizeadverseeffectsofpublicprojectsandpolicies.Learnmoreabout

HIAs,andhowtheymaybeusedintransportationandlanduseefforts,at:

4U.S.CentersforDiseaseControl&Prevention www.cdc.gov/healthyplaces/hia.htm

4NationalAssociationofCounty&CityHealthOfficials www.naccho.org/topics/hpdp/land_use_planning/LUP_HealthImpactAssessment.cfm

4WorldHealthOrganization(WHO) www.who.int/hia/en

Historic Tax Credits

Thefederalgovernmentallowsdeveloperstoclaimataxcreditwortheither

10percentofthecostofrehabilitationofbuildingsbuiltbefore1936or20

percentofthecostofbuildingsonthefederalregisterofhistoricplaces.

Creditsareawardedthroughstatehistoricpreservationagencies.Interme-

diariessuchastheNationalEquityFundandtheNationalTrustforHistoric

Preservationmatchnonprofitdeveloperswithinvestmentpartnerswhocan

benefitfromthecredits.

HUD Userwww.huduser.org

HUDUserisaportaltofederalgovernmentinformationonhousingpolicy

andprograms,economicdevelopment,urbanplanning,andothertopics

fromtheU.S.DepartmentofHousingandUrbanDevelopment’s(HUD)Office

ofPolicyDevelopmentandResearch(PD&R).Specificresourcesavailable

onlineinclude:

Resources 139

4Regulatory Barriers Clearinghouse:HUDcreatedthisfree,searchable

databasetosupportstateandlocalgovernmentsandlocalorganizations

“seekinginformationaboutlaws,regulationsandpoliciesaffectingthe

development,maintenance,availabilityandcostofaffordablehousing.”It

includesregulatorymeasuresproposedorpassedincommunitiesacross

theUnitedStates.

4Data Setsleadstousefulhousing-relateddata,aswellasa

GeographicInformationSystemstoolthatallowsyoutocreateamap

ofyourcommunitythatintegratesthisHUDdatawithenvironmental,

demographicandotherdata.

4SearchtheState of the Cities Data Systems (SOCDS),locatedinthe

StateoftheCities(NationalUrbanPolicyReport)section,forhousingand

otherdataforindividualmetropolitanareas,centralcitiesandsuburbs.

4TheBibliographylinkleadstoadatabaseofmorethan10,000full-

abstractcitationstoresearch,books,monographs,anddatarelatedto

housingandcommunitydevelopmentissues,includinghousingpolicy,

urbanplanningandothertopicsusefultolanduseadvocates.

Idealist.org: Civic Engagement Curriculawww.idealistoncampus.org/ioc/learn/curriculum/index.html

Originallywrittentohelpcollegestudentshonetheircommunityorganizing

andadvocacyskills,thesecurriculaareequallyeducationalforadultsof

allages.Theyaredesignedasgroupactivities,butmanycanbeusedfor

individuallearningaswell.

Initiative for a Competitive Inner City (ICIC)www.icic.org

TheICIC’smissionistopromoteeconomicprosperityinAmerica’sinnercities

throughprivatesectorengagementthatleadstojobs,income,andwealth

creationforlocalresidents.AspecificfocusoftheICIC’sresearchisinner-city

retail.Publicationsofinterestinclude:

4The Changing Models of Inner-City Grocery Retailing

Aresearchstudyofferinginsightsintokeystrategiesofoperatinginner-

citysupermarketsthroughprofilesoffourinner-citygroceryretailers

42nd Annual Inner-City Shopper Survey: Inner-City Shoppers Make Cents

(and Dollars)

Analysisofnationalsurveyfindingsofinner-cityandnon-innercity

householdsontheirretailpurchasingpatterns

4The Inner-City Shopper: A Strategic Perspective

Analysisofnationalsurveyfindingsofinner-cityandnon-innercity

householdsontheirretailpurchasingpatterns


4The Business Case for Pursuing Retail Opportunities in the Inner City

Identifiesthesizeandopportunitiesoftheinner-cityretailmarket

International Council of Shopping Centers (ICSC)www.icsc.org

TheICSCistheglobaltradeassociationoftheshoppingcenterindustry.

Its57,000membersintheUnitedStates,Canadaandmorethan80other

countriesincludeshoppingcenterowners,developers,managers,marketing

specialists,investors,lenders,retailersandotherprofessionals,aswell

asacademicsandpublicofficials.ICSC’sprincipalaimsaretoadvancethe

developmentoftheshoppingcenterindustryandtoestablishtheindividual

shoppingcenterasamajorinstitutioninthecommunity.Towardthatgoal,

theICSCresearchesandproducespublicationsaboutretaildevelopment.

Onesuchpublication,Development in Underserved Resource Markets:

A Summary of a Discussion of the Challenges and Recommendations for

Improving the Process of Retail Development in Underserved Urban Markets,

maybeusefultopractitionersattemptinginner-cityretaildevelopment.

Economicdevelopmentofficialswhowishtoattractshoppingcenterstotheir

communitiesattendICSC’sannualconference.

Knowledgeplexwww.knowledgeplex.org

CreatedbytheFannieMaeFoundation,Knowledgeplexisacentralized

resourcefordocuments,news,discussions,events,andmediaaboutthe

followingtopics:

4affordablehousingdevelopment&finance

4economicrevitalization

4fairhousing

4homelessness

4homeownership&mortgagemarkets

4landuse&housingplanning

4organizationaldevelopment

4publichousing

4social&comprehensivedevelopment

League of California Cities (LCC)www.cacities.org

TheLeagueadvocatesforcommoninterestsofCaliforniacitiesregarding

issuesthatincludeenvironmentalquality,housing,economicdevelopment,

publicsafety,andtransportation.Itswebsiteprovidesnewsandinformation

onthesetopicsfromamunicipalperspectiveandanextensiveonline

Resources 141

advocacyresourceforitsmembers.TheLeaguealsoprovidesaone-stop

shopforgeneralinformation,linkstomunicipalwebsites,alistingofcity

officials,ordinances,municipalcodes,andcitycharters.

A Legal Guide to California Redevelopment, 3rd editionby Goldfarb & Lipman, LLP (Goldfarb & Lipman, 2006)

Thiscomprehensivelegalguide,writtenasareferenceworkforattorneys,

providesanexcellentanddetailedguidetotheworkingsofredevelopment

lawinCalifornia.

Legislative Councilwww.leginfo.ca.gov

TheLegislativeCouncilhoststheOfficialCaliforniaLegislativeInformation

websitetoallowthepublictosearchCaliforniastatelawsandbillsby

keyword,number,ordate.Inadditiontoprovidingthefulltextofexisting

laws,thelegislativeinformationwebsitelistseachpendingstatewidebill

anditsprogressthroughthelegislature,fromintroductiontoenrollment.Bill

informationincludesadescriptionofitspurpose,alistofsupporters,full

textofeachrevision,andarecordofalllegislativeactionsandvotes.You

canevensignuptoreceiveanemailnotificationeachtimeactionistakenon

aparticularbill.

Local Government Commission (LGC)www.lgc.org

TheLGCencourageshealthy,walkable,andresource-efficientcommunities

byhelpinglocalgovernmentsdeveloppoliciesandprograms.TheLGC

providesworkshops,guidesandpublications,anemailnotificationservice

foravailablestateandfederalgrants,andanextensiveresourcelibrary.

Local Initiatives Support Corporation (LISC) and LISC Metro Edgewww.lisc.org

LISCmobilizesprivateandpublicsupporttoprovidepolicyguidance,various

typesofcapital,training,andtechnicalassistancetononprofitcommunity

developmentcorporations(CDCs).LISC’sgoalistocreateaffordablehousing,

businesses,jobs,andcommercial,industrialandcommunityfacilities.The

PublicPolicysectionofthiswebsitehighlightsimportantfederalandstate

policydevelopments.LISCalsopublishescasestudies,tools,guidesand

otherinformationonfundingopportunities,affordablehousing(including

communitydevelopment,design,housingpreservation,andvacant/

abandonedproperties),andplanningandlanduse(includingsmartgrowth

andvacant-abandonedproperties).Food, Markets, and Healthy Communities

discusseshowfoodmarketscanaffectlow-incomeneighborhoodsand

providesseveralstrongcasestudiesthatillustratetheirsignificantimpact.


LISC’sMetroEdgesubsidiaryprovidesin-depthmarketresearchtosupport

retailattractioninlow-andmoderate-incomecommunities.

Minority Business Development Administration (MBDA)www.mbda.gov

MBDAactivelybuildsthecapacityofminoritybusinessentrepreneursto

growandcompeteintheglobaleconomy.Itprovidesinformationandtechni-

calassistancetominoritybusinessentrepreneursaswellasreferringthem

topartnersthatwillhelpthemgainaccesstofinancing,themarketplace,

education,andtechnology.

National Congress for Community Economic Development (NCCED)www.ncced.org

NCCEDisthetradeassociationforcommunitydevelopmentcorporations

(CDCs)andthecommunityeconomicdevelopment(CED)industry.Itsmission

istopromote,support,andadvocateforCDCsandtheCEDindustry,whose

workcreateswealth,buildshealthyandsustainablecommunities,and

achieveslastingeconomicviability.NCCEDprovidesmemberswithoppor-

tunitiestomeetandlearnfromoneanother,aswellasprovidingguidesfor

differentaspectsofcommunitydevelopment.ThepublicationOvercoming

Obstacles to CDC Supermarket Developmentisahow-toguideavailablefor

purchasebygroupsinterestedinbringingagrocerystoretotheirarea.

National Grocers Association (NGA)www.nationalgrocers.org

TheNGAisanationaltradeassociationrepresentingwholesaleandretail

groceryandfooddistributioncompanies.Itsassociatemembers,listedon

thewebsite,alsoincludeproductmanufacturersandservicesuppliers.NGA’s

websitemaybeusefultohelpadvocatesunderstandtheindustry’sperspec-

tivesandtactics.YoucanfindNGApositionpapersandupdatesonpending

nationallegislation,andlearnmoreaboutNGA’slocalpolicyefforts:

4TheGovernmentRelationsLeadershipCounciladvances“thepublicpolicy

interestsofretailandwholesalegrocersthroughaneffectivegrassroots

governmentrelationsprogram”

4TheGrassrootsGrocersActionNetwork(GAN)isanall-volunteernetwork

designed“tocreateacoalitionstrongenoughtoinfluencelegislation

pertainingtothefooddistributionindustry”(theGANcommunicates

directlywithmembersofCongressonindustry-relatedissues)

4NGA’sCenterforMarketingExcellenceworksinpartto“enabletheretailer,

wholesaler,manufacturer,andservicesuppliertobetterunderstandthe

needsandpurchasingtrendsoftheAmericanconsumer”

AlsovisittheAboutUssectionforalistofitemsonNGA’sWorkingAgenda.

Resources 143

National Institutes of Health (NIH)www.nih.gov

TheNationalInstitutesofHealthistheprimaryfederalagencyforconducting

andsupportingmedicalresearch.Itswebsiteoffersaclearinghouseof

healthresearch,nutritionguidelines,up-to-datehealthnews,andgrantsand

fundingopportunities.NIHisalsohometoavarietyofresearchinstitutes

andcentersthatexaminespecificareasofhealthinformation,suchas:

4NationalCenteronMinorityHealthandHealthDisparities(NCMHD) http://ncmhd.nih.gov

4NationalInstituteofChildHealthandHumanDevelopment(NICHD)

www.nichd.nih.gov

New Markets Tax Credits (NMTC)www.ustreas.gov

TheU.S.TreasuryDepartmentdistributesNewMarketsTaxCreditsto

communitydevelopmententities(CDEs)inreturnfortheirinvestmentin

nonresidentialdevelopmentprojectsinlow-incomeareas.Theseinvestments

generallytaketheformoflow-interestloansorequityinvestmentsincom-

mercialprojectslocatedinlow-incomeareas.TheprocesstoreceiveNMTC

investmentsiscompetitive,andthestructureoftheinvestmentsfavorsvery

largeprojects.FormoreinformationabouttheprogramandalistofCDEsto

approachforinvestments,visitwww.cdfifund.gov.

Northern California Community Loan Fund (NCCLF) www.ncclf.org

NCCLFprovidesfinancingandexpertisetostrengthenlow-incomeneighbor-

hoodsandenabledisadvantagedpeopletobuildabetterfuture.Theirpro-

gramsincludealendingprogram,fourconsultingandgrantsprograms,and

anongoinginvestmentfundraisingcampaign.NCCLFmakesloansranging

from$10,000to$1millionforfourtypesofnonprofitprojects,oneofwhich

iseconomicdevelopment.NCCLFmakesloanstoventuresthatproducejobs,

income,wealth,andeconomicstability,includingworker-ownedcooperative

businesses.Loanssupportarangeofeconomicdevelopmentinitiatives,

includinghumandevelopmentandjobpreparednessprojectsfordisabled

peoplealternativeownershipbusinessessuchasworker-ownedcooperative

ventures,andsmallbusinessincubators.


Opportunity Finance Networkwww.opportunityfinance.net

TheOpportunityFinanceNetwork(formerlytheNationalCommunityCapital

Association)isatradeassociationofcommunitydevelopmentfinancial

institutionsthatprovideloansandequityinvestmentsincommunity

economicdevelopmentprojectsincludingfoodretailprojects.Thenetwork

maintainsanationallistofmemberorganizationsaroundthecountry.

Pacific Coast Regional Small Business Development Corporation (PCR)www.pcrcorp.org

PCRprovidesfinancial,educational,andconsultingservicesthrough

contractswiththefederalgovernmentandthestateofCalifornia,aswellas

partnershipswithprivateinstitutions.PCR’sprimarygoalistohelpthesmall

businessownersucceed.PCR’sfinancialprogramsincludeloanguarantees,

bondguarantees,disasterbridgeloans,anddirect(environmental)loans.

Theonlyqualificationfortheseloansisthatthebusinessislocatedwithin

thestateofCalifornia.

People’s Grocery http://peoplesgrocery.org

People’sGroceryisacommunity-basedorganizationinWestOaklandthat

developscreativesolutionstothehealth,environmental,andeconomic

challengesthecommunityfaceseveryday.Themissionistodevelopaself-

reliant,sociallyjustandsustainablefoodsysteminWestOaklandthrough

community-based,youth-focused,andinnovativesocialenterprises,urban

agriculturalprojects,educationalprograms,andpublicpolicyinitiativesthat

fosterhealthy,equitable,andecologicalcommunitydevelopment.Aspart

ofitsactivities,thePeople’sGroceryrunsseveraleducationalcommunity

gardensandamobilemarket.

Planners Networkwww.plannersnetwork.org

PlannersNetworkisanassociationofpeopleinvolvedinphysical,social,

economic,andenvironmentalplanninginurbanandruralareas.Adiverse

groupofplanningprofessionals,activists,organizers,andstudents,Planners

Networkisthe“voiceforprogressive[s]concernedwithurbanplanningand

socialandenvironmentaljustice.”ThePlannersNetworkwebsiteincludes

planningcasestudies,publications,andfreearchivesofProgressive Planning

magazinesearchablebyissueorkeyword.

Resources 145

Planners Web www.plannersweb.com

PlannersWebprovidesinformationaboutcommonorcurrentlyrelevant

planningissuesandservesasahostforthePlanning Commissioners Journal.

As“thenation’sprincipalpublicationdesignedforcitizenplanners,”the

Planning Commissioners Journaloffersmorethan14yearsofarticlesforfree,

searchablebykeyword.Sampletopicsandarticlesinclude:

4Howtodealwiththemedia

4Basicsofputtingtogetheracomprehensiveplan

4Conflictsofinterestandex-partecommunications

4“PublicBuildingsKeepTownCentersAlive”

PolicyLinkwww.policylink.org

PolicyLinkisanationalresearch,communications,capacitybuilding,and

advocacyorganizationworkingonarangeofissuesrelatedtostrengthening

low-incomecommunitiesofcolorincludingequitabledevelopment,housing,

publicinvestment,andhealth.

Healthy Food, Healthy Communities: Improving Access and Opportunities

Through Food Retailing,apublicationfromPolicyLink,providesanoverview

ofstrategiesthatcommunitiescantaketoincreaseaccesstohealthyfoodas

wellasprofilesofseveralsuccessfulprojects.

Project for Public Spaces (PPS)www.pps.org

PPSprovidestechnicalassistance,education,andresearchtohelpcommuni-

tiescreateandsustainparks,buildings,transportation,andpublicmarkets.

Thewebsiteoffersresourcesineachoftheseprogramareas:

4Parks:PPSoffersguidelinesandcasestudiesforthedesignandplanning

process,comprehensivemanagementandmaintenanceinformation,and

methodsforinvolvingthecommunity.Thissectionincludesanetwork

ofexpertswhoarewillingtoshareadvice,adatabaseofspeakersand

teachers,andlinkstoparkorganizations.

4Transportation and livable communities:Searchthissectionforplanning

guidelines,casestudies,research,photos,andotherusefulinformation

onwaystodesignpublicareastoaccommodatedrivers,bicyclists,transit

users,andpedestriansalike.

4Markets:InconjunctionwiththeFordandW.K.Kelloggfoundations,PPS

developedapublicmarketsresearchandgrantsprogramtodevisenew

waysofincorporatingpublicmarketsandcommunitydevelopment.Find


profilesofsuccessfulfarmers’markets,trainingsandconferences,and

grantopportunitiesinthissection.

Redevelopment in California, 3rd editionby David F. Beatty et al. (Solano Books, 2004)

Oftenusedasacollegetextbook,thiseditiongivesadetailedoverviewof

Californiaredevelopmenthistory,law,andpractice.

Rough and Tumblewww.rtumble.com

Rough and Tumbleisaportalwebsitethatprovidesanup-to-the-minute

lookatCaliforniapolicyissuesandthepoliticalenvironmentsinwhich

theydevelop.Thesitewasoriginallyintendedtobeanin-housetelevision

newsroompublicationtohelpreportersbetterunderstandCaliforniapolitics.

Itlistsreputablecurrentnewspaperandmagazinearticles–alsosearchable

bytopic,publicationdate,orkeyword–aswellaspollingdata,legislators’

websites,andotherpoliticalinformation.Rough and Tumbleisareliable

resourceforkeepingabreastofthestatewideCaliforniapoliticalscene.

The Rural Community Assistance Corporation (RCAC) Loan Fund www.rcac.org

RCACfunctionswithinallCaliforniaruralareas,fillingfinancinggapsand

servingthosetraditionallyneglectedbyconventionalmarkets.Itprioritizes

projectsthatservelow-andverylow-incomepeopleorpopulations

withrestrictedaccesstocapital,includingagriculturalworkersorNative

Americans.RCAC’sloanfundoffersacomprehensivearrayofproductsfor

affordablehousingdevelopment,retailprojects,environmentalinfrastructure,

andcommunityfacilitiesinruralcommunities.Eachisdesignedtomeetthe

uniqueunderwritingandstructuringneedsofnonprofitandlocalgovernment

borrowers.RCACisafinancingpartnerwithotherfinancialinstitutions,not

acompetitor.Financingisprovidedalongwithconventionallendersand

othercommunitydevelopmentfinancialinstitutionsundertermsthatensure

projectfeasibilityandcommunityaffordability.

San Francisco Department of Public Health: Program on Health, Equity, and Sustainability www.sfdph.org/phes

ThePHESinitiativeisanumbrellaofprogramsthroughwhichtheSFDPH

addressestopicsrelatedtohealthylivingthroughcollaborationswith

communityorganizationsandgovernmentagencies.ThePHESwebsite

sectionsoncommunityplanning,landuseandenvironmentalplanning,

publichousing,andtransportationincluderesearch,statistics,casestudies,

andotherpublicationsthatmaybevaluablemodelsforadvocates.This

Resources 147

sitealsodocumentstheEasternNeighborhoodsCommunityHealthImpact

AssessmentbeingundertakenbytheSFDPH.

Small Business Administration (SBA)www.sbaonline.sba.gov

TheSBAmaintainsandstrengthensthenation’seconomybyaiding,

counseling,assisting,andprotectingtheinterestsofsmallbusinessesand

byhelpingfamiliesandbusinessesrecoverfromnationaldisasters.Itoffers

trainingandtechnicalassistancetobusinessesinbusinessplanning,financ-

ing,management,andotheraspectsofstartingandrunningabusiness.

Centralizedinformationallowseaseofcommunicationtoanyonelookingfor

businessknow-how,regardlessoftheirexperienceandeducationalrequire-

ments.

Smart Growth Americawww.smartgrowthamerica.org

SmartGrowthAmericaisanationwidecoalitionthatworkstosupport

“citizen-drivenplanningthatcoordinatesdevelopment,transportation,revital-

izationofolderareas,andpreservationofopenspaceandtheenvironment.”

SmartGrowthAmericaworkswithmemberorganizationstodeveloppolicies,

publishresearch,andbuildsupportforaffordablehousing,efficientdevelop-

ment,neighborhoodschools,preservationandrevitalizationofurbanareas

andfarmland,socialequity,and“smarttransportation”thatincorporates

publictransitandpedestrianandbicycletraffic.Itswebsiteoffersgeneral

informationoneachoftheseissues,aswellasupdatesonfederallegislative

activityonissuesrelatedtosmartgrowth,sustainabledevelopment,and

environmentalprotection.

Social Compact www.socialcompact.org

SocialCompactisacoalitionofbusinessleadersfromacrossthecountry

promotingsuccessfulbusinessinvestmentinlower-incomecommunitiesfor

thebenefitofcurrentresidents.Theydevelopeda“drilldown”approachto

retailmarketanalysisthatcombinesfederaldatawithdatafrommorelocal

sourcestoconstructamoreaccuratepictureoflocalspendingpower.Social

Compactprovidesconsultingandtrainingthroughoutthecountry.

Strategic Alliance for Healthy Food and Active Environmentswww.eatbettermovemore.org

TheStrategicAllianceisacoalitionofnutritionandphysicalactivity

advocatesinCaliforniathatusesthedebateonnutritionandphysicalactivity

toexamine“corporateandgovernmentpracticesandtheroleoftheenviron-

mentinshapingeatingandactivitybehaviors.”TheStrategicAllianceworks

infivekeysectors:Children’sEnvironments,Government,IndustryPractices,


HealthCareSystem,andMedia.Ineachsectionfindresearch,data,reports,

andadditionalresources.VisittheEnvironmentalNutritionandActivityCom-

munityTool(ENACT)formorethan60concrete,detailedstrategiesdesigned

tohelp“improvenutritionandactivityenvironmentsonalocallevel.”

Sustainable Agriculture Education (SAGE)www.sagecenter.org

SAGEisaBayAreanonprofitorganizationthatdevelopsprojects,programs,

andmaterialstobuildsupportforsustainableregionalfoodandagriculture.

SAGEprojectshaveyieldedseveralusefulreportsandtools,availablefor

freedownloadontheirhomepage,includingtheFarmers’ Market Resource

Kit,writtentohelpadvocatescreatenewfarmers’marketsinSanFrancisco.

Thekitexplainsapplicablestatelawsandprovidesinsightsintothemarket

planningprocess.

Tax-Exempt Bonds

Localandstateeconomicdevelopmentagenciescanissuetax-exemptbonds

orindustrialdevelopmentbondstofinanceeconomicdevelopmentprojects.

Thebondsprovideameansforaprojectthatservesaclearpublicpurpose

toborrowmoneyatalowinterestrate.Thelenders(buyersofthebonds)

receivetax-freeinterest,whichallowsthemtochargemuchlessinterest

thantheynormallywould.Bondissuanceiscomplexandexpensiveand

thereforetendstobeappropriateonlyforlargerprojects.(SeealsoCalifornia

Infrastructure and Economic Development Bank.)

Tax Increment Financing (TIF)

Taxincrementfinancingisusedinallstatestofinancecommunity

improvementprojects.InCaliforniathelocalRedevelopmentAgencymust

declareanareawithinacitya“redevelopmentarea,”atwhichpointthe

currentpropertytaxesarefrozenasthebaseamountthatcontinueto

bepaidtothegovernment.Fromthatpointon,anyriseinthevalueof

theareaandthecorrespondingincreaseintaxespaidarepaidtothe

redevelopmentagencytorepayanycostsincurredintheimprovementof

theareaorforfutureprojectsinthatorotherredevelopmentareas.Check

withyourlocalorstategovernmenttoseehowareasaredesignated

fortaxincrementfinancinginyourstate.Formoreinformation,visit

www.emich.edu/public/geo/557book/d232.tif.html.

Tax Increment Financing and Economic Development: Uses, Structures, and Impactby Craig L. Johnson and Joyce Y. Man, eds. (State University of New York Press, 2001)

Thisbookprovidesacomprehensivediscussionoftheuses,structures,and

impactsoftaxincrementfinancing.

Resources 149

U.S. Census Bureauwww.census.gov

TheCensusBureauwebsiteprovidesinformationaboutdemographics,

economics,housing,income,physicalinfrastructure,internationaltrade,

andmyriadotherdataabouttheAmericanpopulationandgeography.The

websiteprovidessearchableaccesstothisinformationbystate,county,city,

town,politicaldistrict,andothergeographicareas.Inadditiontosurveying

thegeneralU.S.populationeverytenyears,theCensusBureaualsorecords

economicactivityandstateandlocalgovernmentseveryfiveyears,and

conductsmorethan100annualsurveys.ThesiteincludesAmericanFact-

finder,auser-friendlyinterfaceforcreatingdemographicprofilesofcensus

tracts,cities,counties,andstates.

U.S. Department of Agriculture (USDA)www.usda.gov

SignificantaspectsofUSDAarededicatedtotheeconomicdevelopment

ofruralareas.USDAbringshousing,moderntelecommunications,and

safedrinkingwatertoruralAmericaaswellasmoderninfrastructure,allof

whichformthefoundationforagribusiness,industrialfirms,tourism,and

otherbusinesses,creatinganenvironmentinwhichbusinessesareableand

willingtolocateinruralareas.USDARuralDevelopmentBusinessPrograms

helpfundprojectsthatcreateorpreservequalityjobsand/orpromotea

cleanruralenvironment.

4The Community Facilities Programaidsprojectstoconstruct,enlarge,

extend,orotherwiseimprovecommunityfacilitiesprovidingessential

servicestoruralresidents.Seewww.rurdev.usda.gov/rhs/cf/cp.htm.

4The Food and Nutrition Information Centerwebsite

(www.nal.usda.gov/fnic)isaportaltonutrition“resourcesforconsumers,

nutritionandhealthprofessionals,educators,andgovernmentpersonnel.”

4The Food and Nutrition Service (FNS)administersprogramsthatimprove

foodsecurity,whichitdefinesas“accessbyallpeopleatalltimesto

enoughnutritiousfoodforanactive,healthylife.”Theseprogramsinclude

foodstamps,theNationalSchoolLunchProgram,theFarmers’Market

NutritionProgram,andothersthatsubsidizeaccesstonutritiousfoodsfor

peoplewithlowincomes.TheFNSwebsiteprovidesdetailedinformation

abouttheseprograms.AdvocatesmayalsosearchtheResearchsection

forstudiesonfoodsecurity,obesityinAmerica,andothertopics.Nutrition

educationmaterials,programs,andresearcharealsoavailableinthe

NutritionEducationsection.Seewww.fns.usda.gov/fsec.

4The Community Food Projects Competitive Grants Programannuallyfunds

projectsthatpromotetheself-sufficiencyoflow-incomecommunities.See

www.csrees.usda.gov/nea/food/in_focus/hunger_if_competitive.html.


U.S. Department of Commerce – Economic Development Administration (EDA)www.eda.gov

ThisunitoftheU.S.DepartmentofCommercemanagesseveralprograms

designedtosupportprojectsthatcreatejobopportunitiesineconomically

distressedcommunities.Over$250millionwasavailablethroughEDAgrant

programsin2006.Public Works and Economic Development Program

grantsaveragebetween$70,000and$4millionperprojectandareawarded

onthebasisofthenumberofjobscreated.TheLocal Technical Assistance

Programprovidesmuchsmallergrantsforfeasibilitystudiesandproject

planning.Bothsourceshavebeenusedtofinancefoodretailprojectsin

low-incomecommunities.

U.S. Department of Health and Human Services – Office of Community Serviceswww.acf.hhs.gov/programs/ocs

TheOfficeofCommunityServices,aprogramoftheU.S.Departmentof

HealthandHumanServices,operatesseveralgrantandtechnicalassistance

programsthatsupportcommunityeconomicdevelopmentprojects.

4TheUrban and Rural Community Economic Development Programoffers

grantsofupto$700,000forbusinessdevelopmentorcommercialreal

estateprojectsthatarelikelytoresultinthecreationofnewjobsforlow-

incomepeople.Awardsarelimitedtonomorethan$15,000pernewjob

created.

4TheJob Opportunities for Low Income Individualsprogramprovides

grantstoorganizationsthattestandevaluatewaysofcreatingpermanent

full-timeemploymentandbusinessopportunitiesforwelfarerecipients

andotherlow-incomeindividualsthrough(1)self-employment,(2)

microenterprise,(3)newbusinessventures,(4)businessexpansion

throughtheprovisionoftechnicalorfinancialassistancetoprivate

employerstocreatenewjobs,and(5)nontraditionalemployment

developmentinitiatives.

TheOfficeofCommunityServicesalsomanagesCommunity Food and

Nutrition Program Discretionary Grants.Theprogramprovides40to

50grantseachyearofupto$50,000tosupportcommunityprojects

that“coordinateprivateandpublicfoodassistanceresourcestobetter

servelow-incomepopulations,assistlow-incomecommunitiestoidentify

potentialsponsorsofchildnutritionprogramsandtoinitiatesuchprograms

inunderservedorunservedareas,ordevelopinnovativeapproachesatthe

stateandlocalleveltomeetthenutritionneedsoflow-incomeindividuals.”

Resources 151

U.S. Department of Housing and Urban Development (HUD)www.hud.gov/economicdevelopment/index.cfm

HUD’smissionistoincreasehomeownership,supportcommunitydevelop-

ment,andincreaseaccesstoaffordablehousingfreefromdiscrimination.

StrengtheningcommunitiesispartofHUD’smission,andeconomicdevelop-

mentisanimportantpartofthateffort.HUDhasseveralprogramstocreate

andretainjobs,mostfocusingonunderutilizedsitesinurbanlocations.

4TheBrownfields Economic Development Initiativeisakeycompetitive

grantprogramadministeredbyHUD.Itisdesignedtoassistcitieswiththe

redevelopmentofabandonedandunderusedindustrialandcommercial

facilitieswhereexpansionandredevelopmentisburdenedbyrealor

potentialenvironmentalcontamination.

4TheOffice of Economic Developmentworkswiththepublicandprivate

sectors,aswellasnonprofitorganizations,toprovidefinancialand

technicalassistancetolocalcommunitiestodevelopandimplementtheir

owneconomicdevelopmentandcommunityrevitalizationstrategies.

4TheprimaryobjectiveoftheCommunity Development Block Grant

(CDBG)programisthedevelopmentofviableurbancommunities

byprovidingdecenthousing,asuitablelivingenvironment,and

expandingeconomicopportunities,principallyforpersonsoflow

andmoderateincome.TheCDBGprogramisadministeredbystate

orcitygovernmentsaccordingtolocalpriorities.Theprogram

administratordistributesmoneytoprojectsthatmeetfunding

prioritiesranginginsizefromverysmall($5,000)toverylarge,

accordingtothescaleandneedsoftheproject.Formoreinfo,visit

www.hud.gov/offices/cpd/communitydevelopment/programs.

4Enterprise/Empowerment Zones and Renewal Community Zonesare

placedonspecificgeographicareas,thegoalbeingtoemphasizethe

importanceofstimulatingthecreationofnewjobsthatempowerlow-

incomeresidentsreceivingpublicassistancetobecomeeconomically

self-sufficient,andtopromotetherevitalizationofeconomicallydistressed

areas.Thesezonesprovidetaxincentivesforbusinessestolocatewithin

them,andtheyofferotherincentivesandfinancialaid.Theseincentives

cantakemanyforms,includingloansandgrantsforspecificbusiness

improvements.

4Section 108istheloanguaranteeprovisionoftheCommunity

DevelopmentBlockGrant(CDBG)program.Loansprovide

communitieswithasourceoffinancingforeconomicdevelopment,

housingrehabilitation,publicfacilities,andlarge-scalephysical

developmentprojects.Thismakesitoneofthemostpotent

andimportantpublicinvestmenttoolsthatHUDofferstolocal

governments.CommunitiesaccessSection108loansthroughthesame


administratorthatdispersesCDBGfunds.Formoreinformation,visit

www.hud.gov/offices/cpd/communitydevelopment/programs.

4Congressional Grants:EveryyearCongressauthorizesanumberof

specialgrantsforspecificeconomicdevelopmentprojectsaspartofthe

annualHUDappropriationandaccompanyingconferencereport.Congress

authorizesaspecificleveloffundingtoeachspecificproject,andthere

isnopublicapplicationprocess.Accesstothesefundsrequiresclose

coordinationwithyourlocalcongressionaloffice.

TheAboutCommunitiessectionofthewebsiteincludesmaps,histories,

censusdata,statistics,andfederalfundingopportunitiesforlocalprojects.

Alsofindlinkstolocalcommunityconsolidatedplansandtolocalandstate

governmentwebsites.TheOrganizingsectionincludeshow-toguideson

holdingneighborhoodmeetings,startinganeighborhoodorganization,and

communityorganizingaroundanissueorgoal.

Urban and Environmental Policy Institute (UEPI)http://departments.oxy.edu/uepi

UEPIisacommunity-orientedresearchandadvocacyorganizationbased

atOccidentalCollegeinLosAngeles.Itservesastheumbrellaforavariety

ofaffiliatedprogramsaddressingworkandindustry,foodandnutrition,

housing,transportation,regionalandcommunitydevelopment,landuse,

andurbanenvironmentalissues.AreportfromUEPI,The Persistence of L.A.’s

Grocery Store Gap: The Need for a New Food Policy and Approach to Market

Development,isanexcellentresourceforthosewishingtounderstandthe

persistenceoffooddesertsinLosAngeles.

Urban Land Institute (ULI)www.uli.org

ULIisanonprofitorganizationthatdrawsonitsnetworkof28,000members

worldwidetoshareideas,problemsolve,anddevelopbestpracticesforland

usepolicyandpractice.ULIpublishesthesebestpractices,casestudies,and

researchonitswebsite–someavailableforafee,othersforfree.Advocates

mayfindthefollowingsectionsespeciallyuseful:

4Research:ULIpolicypapers,advisoryservicespanelreports,trends,and

otherpublicationscanbedownloadedinPDFformat.Topicsinclude“Best

PracticesintheProductionofAffordableHousing”(March2005)and

“InvolvingtheCommunityinNeighborhoodPlanning”(September2004).

4In the Community:ULI’sCommunityOutreachProgramworkswithULI

memberstohelpinfluencepolicyandpracticerelatedtocommunity

buildingandlanduse,including:

Resources 153

4CommunityActionGrants“toencourageentrepreneurialprojectsatthe

state,regional,andlocallevelstobuildcommunityconsensusforaction

andchange”

4TheCaliforniaSmartGrowthInitiative,whichproducedareport

entitledPutting the Pieces Together: State Actions to Encourage Smart

Growth Practices in California(2002)thatanalyzeswaystopromote

developmentthatmorecloselylinkshousingtojobsandpreservesopen

space(seewww.smartgrowthcalifornia.uli.org).

Wall Street Without Walls www.wallstreetwithoutwalls.com

WallStreetWithoutWallsbringsfinanceprofessionalsandWallStreet

executivestogetherwithcommunitydevelopmentorganizationstoassist

withspecificfinancingneeds.Inadditiontotrainings,theprogramprovides

directfinancialtechnicalassistanceonacompetitivebasis.

Wilder Foundationwww.wilder.org

ApublicationfromtheWilderFoundation,The Community Economic Devel-

opment Handbook: Strategies and Tools to Revitalize Your Neighborhood,

providesageneralintroductiontoneighborhoodeconomicdevelopment

strategies.

Resources 155

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