FEBRUARY 2, AM PT / 1PM CT / 2PM ET

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1 HEALTHY FOOD, HEALTHY PEOPLE: THE RELATIONSHIP BETWEEN FOOD & REAL ESTATE FEBRUARY 2, AM PT / 1PM CT / 2PM ET CO-SPONSORED WITH: FUNDERS NETWORK FOR SMART GROWTH & LIVABLE COMMUNITIES, GRANTMAKERS IN HEALTH, AND SUSTAINABLE AGRICULTURE & FOOD SYSTEMS FUNDERS MODERATOR Christopher Smith, senior program officer, Colorado Health Foundation PRESENTERS Daron Joffe, director of agricultural innovation and development, The Leichtag Foundation, and founding director, Coastal Roots Farm Rachel MacCleery, senior vice president, Urban Land Institute Donna Leuchten Nuccio, director of healthy food access, Reinvestment Fund

2 URBAN LAND INSTITUTE FOOD AND REAL ESTATE PROJECT February 2, 2017 Sustainable Agriculture & Food Systems Funders Funders Network for Smart Growth and Livable Communities Grantmakers in Health CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

3 Urban Land Institute Mission: Provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide Membership: 40,000 members globally, comprised of real estate industry professionals (developers, design, financial services, public sector) Convenings Research Best Practices Education CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food 2

4 ULI FOOD AND REAL ESTATE PROJECT (J Ashley Photography) PROJECT PARTNERS Leveraging the power of ULI s global networks to shape projects and places in ways that improve the health of people and communities. Dedicated to creating healthy, resilient, and high performance communities around the world. CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

5 ULI FOOD AND REAL ESTATE PROJECT Key questions How can growing interest in local, organic food translate into improved outcomes for people and the planet via actions by real estate leaders? How can real estate practitioners help build more sustainable, healthy, and resilient food systems? Activities Convenings - two forums Seminal report Research on state of practice Local gatherings REPORT CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE Cultivating Development: Trends and Opportunities at the Intersection of Food and Real Estate uli.org/food (Donny Davis) People: Food, Health, Social Equity, and Real Estate Planet: The Links among Food, Real Estate, and the Environment Profit: Recognizing the Economic Value of Food in Real Estate Development Eight case studies profiling development projects that include food as a focus

6 PEOPLE 35% PLANET 1,500 PROFIT $43b Of adults are obese or overweight (1 in 3 adolescents & children) Miles food travels from farm to table, on average Profit from organic foods, growing 8% faster than the food market overall (2015) 16% Of people have trouble finding healthy food in their communities 18% of GHG emissions are caused by meat heavy diets 288% Increase in food hubs supporting local production and distribution ( ) CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

7 FOOD-CENTRIC DEVELOPMENT TYPES AGRIHOODS FOOD-CENTERED MIXED-USE DEVELOPMENT FOOD-CENTRIC RESIDENTIAL DEVELOPMENT FOOD HUBS + CULINARY INCUBATORS NEXT- GENERATION URBAN MARKETS INNOVATIONS + INNOVATORS Residential Working farm Restaurants Food stores Mixed-use Community gardens Restaurants Residential Regional processing Distribution centers Workforce development Food halls Workforce Development Mixed-use developments Sustainability Access to healthy food Economic development CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

8 CASE STUDIES Project Location Type On-site food growing Health or nutrition programs Events Foodbased anchors Incubators or job training Grocery stores Aria Denver Denver, CO Mixed use X X X X X Chelsea Market New York, NY Food hall/mixed use X X X CityCentre Houston, TX Mixed use X X The Constellation The Packing House The ReFresh Project Serenbe Madison, WI Mixed use X X X Anaheim, CA Food hall X X X New Orleans, LA Chattahoochee Hills, GA Union Market Washington, DC Retail/Nonprofit X X X X X X Mixed-use masterplanned community Food hall/mixed use X X X X X X X X CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

9 ARIA DENVER DENVER, CO DEVELOPMENT TEAM Urban Ventures LLC and Perry-Rose LLC PROJECT TYPE Mixed use PROJECT SIZE 17.5 acres (7.1 ha); 400 residential units planned; 30,000 square feet (2,787 sq m) of commercial space FEATURES AND INNOVATIONS: People want to be part of a larger story. The production garden at Aria Denver grants residents access to fresh produce and facilitates social interaction through a variety of classes and community events. On top of that, it makes a positive difference in terms of the marketability of the project. Susan Powers, President, Urban Ventures (Urban Ventures; Mariel Beaudoin) 1.25-acre (0.5 ha) production garden Pay-what-you-can farm stand Permaculture pocket gardens 1,800-square-foot (167 sq m) greenhouse Shared kitchens Participation in Cultivate Health partnership, supported by the Colorado Health Foundation CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

10 THE REFRESH PROJECT NEW ORLEANS, LA DEVELOPMENT TEAM Broad Community Connections, L+M Development Partners PROJECT TYPE Retail/nonprofit PROJECT SIZE 3.2 acres (1.3 ha); 65,000-squarefeet (6,039 sq m) commercial building FEATURES AND INNOVATIONS: A grocery store is necessary, but not sufficient in moving the needle on dietrelated chronic diseases. Wrap-around services that demonstrate the link between food and health like classes that teach cooking, nutrition, and meal planning skills are just as essential. Jeffrey Schwartz, Executive Director, Broad Community Connections (Jeffrey Schwartz, Matt Kleinman) Whole Foods grocery store in a former food desert Nutrition education services Community teaching farm Youth employment training kitchen and café CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

11 UNION MARKET WASHINGTON, D.C. DEVELOPMENT TEAM EDENS PROJECT TYPE Food hall/mixed use PROJECT SIZE 22,000 square feet (2,044 sq m) of retail space, 12,000-square-foot (1,115 sq m) event venue; 85,820- square-foot (7,973 sq m) parcel FEATURES AND INNOVATIONS: Social isolation and loneliness are becoming epidemics in the United States. People need community, and all community starts around the table. The real estate industry has the power to create spaces that foster community links and promote social interaction. Jodie W. McLean, Chief Executive Officer, EDENS Indoor food hall Support for local food entrepreneurs Weekly farmers market Food-oriented events (Joe Flood) CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

12 (Sarah Roberson) OPPORTUNITIES TO INCORPORATE FOOD IN DEVELOPMENT PROJECTS Conserve farmland and allocate space to gardening and agriculture within development projects Create programs, such as health, nutrition, cooking, canning, and beekeeping classes Work to reduce food waste and the distance food travels between field and plate Ensure low income residents benefit by accepting SNAP benefits, establishing pay-as-you-can food stands, job training, and other strategies Provide space for innovative restaurant and food retail concepts Consider new business models and inventive partnerships, including with chefs, restauranteurs, and farmers, higher education, and nonprofit organizations Establish frequent events or festivals that celebrate local food and foster community social ties CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

13 KEY TAKEAWAYS Investments in food-related enterprises within the context of development projects can support a developer s bottom line, while also advancing health and environmental goals. Projects at the intersection of food and real estate require innovation, creativity, new business models, and inventive partnerships to be successful. Projects that promote public and environmental health via innovative approaches to food require cross-sector partnerships among developers, the public sector, non-profits, philanthropic organizations, universities, hospitals, and health care providers. Each group brings something unique to the table when it comes to addressing local health and sustainability challenges. (Timothy Hursley) (J Ashley Photography) Food amenities can help create a sense of attachment, adding value, and fostering stronger social ties. (Chelsea Market) CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

14 NEXT STEPS Research on the state of practice in community farming, agrihoods Local programs Retreat at Coastal Roots Farm Field building (Chelsea Market) CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

15 Connect with us uli.org/health uli.org/food THANK YOU (Chet Frohlich, 2015) CULTIVATING DEVELOPMENT: TRENDS AND OPPORTUNITIES AT THE INTERSECTION OF FOOD AND REAL ESTATE uli.org/food

16 Presentation for ULI / SAFSF Webinar Feb. 2017

17 MISSION & VISION Mission:At Coastal Roots Farm, we seed, we grow and we share. We seed new ideas around sustainable farming and Jewish life; we grow healthy food; and we share the harvest with our local community. Vision: We envision a world in which every community comes together to grow and share healthy food, care for the land, help their neighbors, and strengthen the connections they have with each other.

18 GOALS 1) To grow food for the benefit of local community members who lack access to fresh produce 2) To model, teach and learn about sustainable agriculture and food justice 3) To increase the vitality of Jewish life, learning and connection in North County, the San Diego region and beyond.

19 Neighborhood Partners

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21 GROW Vegetable Production Animals Compost Food Forest Vineyard Nursery

22 EAT Produce Donations Farm Stand & Pop-ups Coastal Roots Kitchen CSA Wholesale

23 LEARN & CELEBRATE Farm Tours Volunteering Educational Programming Jewish Agricultural Festivals Community Events

24 Thank You

25 CDFIs and Healthy Food Financing Donna Leuchten Nuccio Reinvestment Fund

26 Reinvestment Fund $1.8 billion in community investments $950 million of capital under management 850 individual & institutional investors 3,000 projects financed

27 Why Access Matters

28 How We Work to Improve Access Financing Research & Analysis Capacity Building Public Policy

29 What are LSA areas? Areas where residents must travel significantly farther to reach a supermarket than the comparative acceptable distance that residents in well-served areas travel to stores 1,807 clusters around the US including 12,959 block groups average size of 11,100 people. Determined by density and car ownership rates. Areas can be prioritized based on access, demand, and leakage data Uses Trade Dimensions Retail Site Database 5

30 Challenges for Food Retail In Urban Settings Food Retail Margin National average store net income = % of sales Start-Up Costs Employee Training Real Estate Costs Security Costs Operating Costs Ongoing staff training costs are higher for urban stores Maintenance costs are higher for urban stores Reduced grocery gross profit* Lower penetration of high margin departments *Most applicable to conventional grocery stores Find more detailed information on our website:

31 Challenges for Food Retail in Rural Settings Food Retail Margin National average store net income = % of sales Density Volume Product Turn Over Quality Operations Purchasing Power Supply Infrastructure Less competition among suppliers Irregularities in deliveries Competition Big box stores

32 PA Fresh Food Financing Initiative A public/partnership to increase access to fresh foods in underserved communities across Pennsylvania.

33 Fare and Square - Nonprofit Grocery Store in a Food Desert 23,500 -sq.-ft., full-service grocery store in a USDA-defined Food Desert Total Project Costs: $7.3mm grocery store staff jobs created, most of which filled by local residents Located in a USDA food desert and Reinvestment Fund designated limited supermarket access (LSA) area Offers access to a full range of food staples for purchase at a low cost, along with donated a percentage off of future purchases for members who qualify. Operated by Philabundance, a food bank organization that serves in and around southeast PA. Chester, PA 23,500 Square Feet of additional access to fresh, healthy, and affordable food 40+ permanent jobs created $1.3MM Philadelphia, PA Bridge Loan $3MM New Markets Tax Credit Investment

34 Mariposa Food Cooperative Expanded from 500 square feet to 2,500+ square feet in a low income community Provided $475K in acquisition and renovation financing Employment grew to 38 FTE from the 9 FTE before expansion Owned and operated by 1,550 members, so profits will stay in and be reinvested in this LIC Philadelphia, PA 29 FTE permanent jobs created $1.5MM Total Project Costs Philadelphia, PA $475,000 Financing Reinvestment Fund provided

35 Second Harvest Food Bank of Metrolina Currently provides 45 million pounds of food and household items to a 19 county region where over 500,000 individuals, including over 189,000 children, are food insecure. This $14 million project will result in a doubling of the size of Second Harvest s main warehouse, including doubling the amount of cold storage space. The expansion increases the % of fresh product to 40% of total distribution. Newark, NJ Reinvestment Fund s term loan also including a $1mm participation from South Carolina Community Loan Fund, one of our ReFresh partners. Charlotte, NC 50%+ Increase in warehouse capacity 20MM Pounds of fresh food that can now be distributed $4.4MM Philadelphia, PA Reinvestment Fund led Leverage Loan $9MM New Markets Tax Credit Investment

36 Whole Foods at Hahnes After 30 years, an abandoned and run-down department store will be hub of activity Newark, NJ Designated a food desert by the USDA and a Limited Supermarket Access area by Reinvestment Fund Building will include Whole Foods, as well as rentable office space, educational space for the Rutgers University art programs, and 160 housing units 40% of which will be affordable and incomerestricted. Critical retail anchor to accelerate longterm efforts to revitalize downtown Newark Newark, NJ Newark, NJ 28,000 Square Feet of additional access to fresh, healthy food 200+ permanent jobs created $5MM Financing Reinvestment Fund provided Philadelphia, PA

37 Improving Access: A National Movement Federal Healthy Food Financing Initiative (HFFI) CDFI Fund, U.S. Treasury Grants to CDFIs Health and Human Services Grants to CDCs U.S. Department of Agriculture National Fund Manager Statewide Initiatives Alabama, California, Colorado, Illinois, Michigan, New Jersey, New York, Ohio, & Pennsylvania.

38 ReFresh The goal of ReFresh is to share expertise and pursue opportunities so that practitioners can finance more food access projects that benefit low-income communities, improve healthy food options and contribute to economic revitalization. Resources A platform through which national, regional and local funders and investors can reach effective intermediaries that can target grants, loans and other resources directly to communities with inequitable and inadequate access to healthy food. Partnerships Brings together organizations with a strong mission dedication to opening access to healthy food for communities. Food Entrepreneurs Includes a broad set of financing partners to help diverse entrepreneurs and projects access capital. Research Offers policymakers and other stakeholders access to a comprehensive body of research and expertise including on food access, financing mechanisms, program design, and food systems.

39 Donna Leuchten Nuccio Director, Healthy Food Access Reinvestment Fund