Economic Stimulus Bill to Attract Supermarkets to Underserved Urban Areas

The Food Marketing Task Force and Food Trust, comprised of a group of leaders from the supermarket industry, government, and the civic sector, advocate for better access to nutritious, affordable food for families, nutrition education in schools and programs that deliver wholesome food for every child. The Food Marketing Task Force, co-chaired by Walt Rubel, director, Government and Community Relations, Acme/Albertsons, Inc., helped to convene more than 40 experts ranging from those who build and operate supermarkets; plan and finance the development of supermarkets, and work with communities and families over a 12-month period to develop ten policy recommendations that the city and state could implement to stimulate more supermarket development in Philadelphia.

Members of both the Task Force and the Food Trust joined state Representatives Dwight Evans (D-Phila.), Frank Oliver, (D-Phila.), and George Kenney (R-Phila.) along with state Senator Anthony H. Williams (D-Phila.), Philadelphia city Councilwoman Blondell Reynolds-Brown in addition to Pennsylvania Secretary of the Department of Community and Economic Development (DCED) Dennis Yablonsky and Pennsylvania Agriculture Secretary Dennis Wolff at a recent news conference to announce the first statewide supermarket-directed development program specifically targeted toward underserved urban and rural areas.

The issue was raised last year when the House adopted Oliver's HR 13 calling for a study into the lack of supermarkets in urban areas. The Health and Human Services Committee then made recommendations that called for comprehensive neighborhood development plans, partnerships with local government, a state grant pool to fund supermarket development and eliminating tax burdens.

In March, the state House of Representatives approved SB 1026 that authorizes $1.135 billion to invest in economic development programs in Pennsylvania. It was signed into law in April. This became a major portion of Governor Rendell's economic stimulus package, proposed during his 2003 budget address.

Rep. Evans diligently worked to include a provision in the stimulus package that would provide financial assistance to urban and rural supermarkets in underserved areas.

One of the initiatives in the package, the First Industries Program, will allow supermarkets located in urban and rural underserved areas to be eligible for financial assistance. The program will provide $150 million for projects related to agriculture and tourism. Supermarkets will be eligible for planning grants, loans and guarantees.

Supermarkets will be able to request planning grants for costs associated with pre-development activities and feasibility studies for a project. The grants will be limited to projects that benefit the local economy or well-being of a neighborhood.

Supermarkets also will be able to request a low-interest loan for land and building acquisition, construction, equipment purchases, and working capital. Interest rates could be as low as 2 percent and as high as 3.75 percent, depending on the purpose and circumstances.

A loan guarantee would be made by a commercial lending institution to assist with the financing of a supermarket project. To be eligible, the project would have to receive a planning grant or have at least $1 million of private funding. The guarantee could not exceed 50 percent of the outstanding principal.

Funds will not be available until the fall, but interested retailers should contact the DCED's Scott Dunkelberger at 717.720.1418 or Mickey Rowley at 717.720.1302 for more information about the First Industries Fund as guidelines are now being developed by the DCED and the state Department of Agriculture staff.

Rich Savner, Public Affairs director, Pathmark Stores, Inc.; Jeff Brown, owner of Brown's ShopRite; Pat Burns, owner of Fresh Grocer, Larry Collins, independent ShopRite owner; Duane Perry, executive director of the Food Trust; Bill Clark, executive director of PhilAbundance; and the Girard Avenue Alliance, deserve special recognition for providing testimony at the public hearings and for their help in moving the process along.