Backup_ATCFPB_ARPA Community-Owned Food Retail Presentation 11-5-2021 — original pdf

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CITY OF AUSTIN ECONOMIC DEVELOPMENT DEPARTMENT A R P A F O O D A C C E S S C O M M U N I T Y - O W N E D F O O D R E T A I L I N I T I A T I V E DONALD JACKSON, BUSINESS PROCESS CONSULTANT NOVEMBER 2021 Community-Owned Food Retail Purpose: Support the development of a cooperative and/or non-profit grocery store in an underserved area of Austin. Supporting City Council Resolutions: • Resolution 20160303-20 (Food Access Resolution) • Healthy Food Access Initiative (Response to 20160303-20) • Resolution 20210112-043 Northeast Austin Planning - Includes supporting the development of grocery stores • Resolution 201020802-072 – Food Sector Economic Analysis C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 2 Community-Owned Food Retail Purpose: Support the development of a cooperative and/or non-profit grocery store in an underserved area of Austin. Supporting City Council Resolutions: • Resolution 20210325-111 and 20210325-66 - Prioritizes addressing food insecurity using American Rescue Plan Funding • 2021-2022 Budget Rider 1B-20210811105337 – Reaffirms “planning and designing of at least one community-owned and/or community-controlled grocery store in an area lacking healthy food retail” C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 3 Community-Owned Food Retail: The Plan Phase I Phase 2 Store Pilot Community Engagement Critical Leadership Development Milestones Funds for Memberships Feasibility Business Planning Review to Proceed Ongoing Support Planning for the Future City Council Engagement Regular Updates on Review of Regular Updates on Project Progress Project Progress Phase I Results Project Review and Future Options Evaluation of Project Options C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 4 Community-Owned Food Retail: The Plan (Fall 2021) Request for Proposals for a consultant team to lead community organizing, business and feasibility analysis, and pilot launch of a community- owned grocery store. • Phase I: Organizing and Development (Spring 2022-Fall 2023) • Pre-feasibility preparation • Extensive community engagement • Robust feasibility analysis and business planning • Recommendations on store location, format, and structure • Cultivation of a Leadership Team and a Founding Member Cohort C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 5 Community-Owned Food Retail: The Plan • Phase II: Pilot Operations (Fall 2023-Winter 2024+) • Launch Pilot operations • Ongoing assistance and support upon reaching critical milestones • Major funding to be released to support subsidized memberships or store equity C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 6 Community-Owned Food Retail: Critical Milestones To ensure viability of the initiative, funding for Phase II will not be released until Critical Milestones, including the following, are achieved: 1) Recruiting and training a committed Leadership to act as a starting Board of Directors for the store. 2) Recruiting a founding membership cohort for the store of at least 300 households and/or community organizations. 3) Demonstrating a viable business plan, including financial projections, management and operations plans, and store vision that is approved by Leaders, the founding membership cohort, and the City of Austin. C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 7 Community-Owned Food Retail: Critical Milestones Disbursement of Funding: If critical milestones have been met, a portion of the $500,000 will be released for disbursement to the pilot grocery store to be distributed as direct funding support or reduced cost membership shares. Funding Allocation Phase I: Organizing and Development Phase II: Pilot Operations Phase II: Subsidized Memberships/Startup Support C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 8 Community-Owned Food Retail: Reporting for the Treasury • Treasury Department Expenditure Category • Household Assistance: Food Programs • Evidence Base • “If you Build it with them, they will come”: What makes a supermarket intervention successful in a food desert? – Brinkley et al., Journal of Public Affairs. 2019 • Measuring the Impact of a Full Service Grocery Store in a Food Desert – Schneider et al., The International Journal of Community and Social Development, 2021 • Demographic Distribution: • Intends to serve residents living within HUD Qualified Census Tracts C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 9 Qualified Census Tracts, HUD, 2021 Community-Owned Food Retail: Timeline • Fall – Winter 2021: Releasing RFP and selecting consultant team • Winter – Spring 2022: Council Approval, Contract Launch • Spring – Fall 2022: Pre-feasibility, Business Analysis, Community Outreach and Organizing C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 10 Community-Owned Food Retail: Timeline • Fall 2022 – Summer 2023: Identifying and Training Leadership, Member Cohort, and Final Store Recommendations and Planning • Fall 2023: Review of Critical Milestones and Formal Incorporation of Store • Fall 2023 – Winter 2024: Opening Grocery Store Pilot, ongoing Technical Assistance and Consulting, Final Report, and Identifying Additional Long-term Funding Needs C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 11 C I T Y O F A U S T I N R E D E V E L O P M E N T 00/00/00 12