COMMUNITY PARTNERS, INC.

A PLAN TO OPERATE THE HISTORIC ST. ROCH MARKET FOR THE BENEFIT OF THE PEOPLE OF NEW ORLEANS.

ST. ROCH

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TABLE OF CONTENTS

VISION....................................................................................................................3 POTENTIAL VENDOR LAYOUT................................................................................4 EXECUTIVE SUMMARY...........................................................................................5 DESCRIPTION OF BUSINESS.................................................................................7 Sustainability and Affordability...............................................................................8 Ownership/Governance........................................................................................9 PRODUCTS & SERVICES OFFERED.....................................................................10 Vendors (Criteria, Types).....................................................................................10 Restaurant..........................................................................................................10 Community Outreach..........................................................................................11 Consumer Education.........................................................................................11 Community Engagement....................................................................................11 MARKET ANALYSIS..............................................................................................12 Location.............................................................................................................12 Primary Customer Base.....................................................................................12 Secondary Customer Base.................................................................................12 Incidental Traffic..................................................................................................13 Additional Customer Sources..............................................................................13 Tourist Traffic.......................................................................................................13 Competitive Considerations.................................................................................14 INDUSTRY ANALYSIS...........................................................................................15 Competitive Environment....................................................................................15 Suppliers.............................................................................................................16 Customers..........................................................................................................16 Barriers to Entry..................................................................................................16 Substitutes.........................................................................................................16 STRATEGY AND IMPLEMENTATION....................................................................17 Market Entry Strategy.........................................................................................17 Marketing Strategy.............................................................................................17 Local Alliances...................................................................................................18 Internet Strategy.................................................................................................18 RISK ANALYSIS.....................................................................................................19 Competition.......................................................................................................19 Shifts in Consumer Demand...............................................................................19 Environmental.....................................................................................................19 Capitalization......................................................................................................19 Execution............................................................................................................19 MANAGEMENT AND PERSONNEL.......................................................................20 FINANCIAL MODEL...............................................................................................21 Development Budget..........................................................................................22 Monthly Operating Budget.................................................................................23 15 Year Operating Budget..................................................................................24 Income Assumptions..........................................................................................25 Expense Assumptions.........................................................................................26 Break Even Analysis............................................................................................27

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VISION
St. Roch Community Partners, Inc. will operate a public market for the benefit of the neighborhood and the city of New Orleans. In divi dua l ve n dor s o f lo c all y sourced produce, meat, seafood, dairy and staples will be selected based on their ability to provide an AFFORDABLE alternative to existing options. Vendors will be regularly assessed based on their pricing. All profits will be reinvested in the market.

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POTENTIAL VENDOR LAYOUT

COFFEE BREAD WINE SEAFOOD

CHEESE

RESTAURANT FLORAL SUNDRIES CHICKEN + MEAT

PRODUCE

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EXECUTIVE SUMMARY //////////////
MISSION AND VISION
St. Roch Community Partners, Inc. (SRCP) will operate the historic St. Roch Market as a public market for the public good by supplying fresh, healthy, and locally produced food. As a non-profit entity, SRCP will manage the day-today operation of the Market, serve as the primary vendor for produce and staples, and lease individual stalls to for-profit vendors committed to providing high-quality locally sourced products.

ORGANIZATIONAL STRUCTURE
SRCP is a 501(c)(3) non-profit corporation. It is run by the collaboration of local business owners including a baker, a butcher, a cheese monger, and a preservationist developer.

PRODUCTS AND SERVICES
There are 12 “stalls” in the Market. Two of the stalls will be used by SRCP to sell fresh produce and staples (e.g. rice, flour, sugar, spices) at low prices. Any profits from the SRCP stalls will be reinvested in the Market to reduce overhead and keep rent lower throughout the Market. The remaining 10 stalls will be leased to for-profit vendors selling seafood, meat, bread, cheese, etc. The Market will only lease to local vendors providing locally produced or locally sourced products. The rear of the Market will include a full service sitdown restaurant with both indoor and outdoor dining space. A restaurant operator will be selected by SRCP with preference given to a) any restaurant serving as job & life skills training program (similar to Café Reconcile or Liberty’s Kitchen), b) restaurants featuring fresh seafood and c) restaurants with a demonstrated ability to provide low-cost, high-quality meals.

COMMUNITY OUTREACH
In addition to high-quality, fresh food at fair prices, the Market will offer educational opportunities in the form of cooking demonstrations, healthy recipes, and a schedule of free seminars for adults and children on topics such as nutrition, budgeting and meal planning. The Market will also provide space for community events and meetings.

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AREA ANALYSIS
The historic St. Roch Market is located at the edge of the St. Roch neighborhood, facing the Faubourg Marigny on the other side of St. Claude Avenue. It is also very near the Bywater, French Quarter, Treme and 7th Ward neighborhoods. These communities are extremely diverse socioeconomically, ranging from households in extreme poverty to those with six-digit incomes. The St. Claude Avenue commercial corridor is currently undergoing a renaissance, with most properties currently being renovated, leased or sold to entrepreneurs. New businesses that have opened within the last 3 years include restaurants, a gym, a yoga studio, an herb shop, an electric bike store, many art galleries, eclectic vintage & reuse boutiques, a theater, coffee shops, a wine shop, and even an artisanal popsicle shop. With the new Crescent Park about to open just a few short blocks away along the river, and a streetcar line expansion planned for the near future, the St. Claude corridor is already becoming an exciting destination for New Orleans residents and visitors alike.

INDUSTRY ANALYSIS
Businesses providing retail food in the immediate area are limited to the New Orleans Food Co-Op (NOFC), Sav-A-Lot, Mardi Gras Zone and a few small convenience stores with limited offerings. NOFC opened in 2011, promising to provide fresh, local food at affordable prices. Currently, the consensus among its membership and the community as a whole is that NOFC has failed in its mission. Sav-A-Lot is a large discount grocery store selling generic, mass-produced, mostly low-quality, and highly processed foods at low prices. Mardi Gras Zone was a warehouse store for trinkets, masks, beads and feather boas before it evolved into a grocery to meet local demand after Hurricane Katrina. It is a quirky, atypical grocery with a rather unusual inventory. Open 24 hours, it does help to fulfill the neighborhoods’ need for a place to shop, but it is often criticized for its rather grimy appearance and unpredictable selection. There has not been a full-service, reliable, high-quality grocery store serving these neighborhoods since Robert’s at St. Claude & Elysian Fields closed due to Hurricane Katrina.

MARKETING
The Market will pursue a range of traditional marketing and advertising mediums. It will maintain a substantial online presence. Alliances with community businesses and organizations will expand on more traditional marketing efforts. The Market will also host a range of free public opening events and continue hosting public events throughout its existence.

RISK ANALYSIS
While many large external risks are present for the St. Roch Market, the greatest risk comes from lower priced competition from big box stores that can offer similar quality for less money. Because of the lack of economic buying power in the neighborhoods surrounding the Market, it will need to draw customers from other areas in order to succeed. There is a risk that the Market could fail to draw customers from other neighborhoods, which already have full-service grocery stores. SRCP will mitigate this risk by a) selecting a restaurant that will create excitement and draw customers to the Market, b) providing unique and interesting products, and c) creating a special experience for shoppers (with live music, events and lively demonstrations), making the Market not just a food source, but a destination.

MANAGEMENT & PERSONNEL
SRCP will be governed by a 9-member Board of Directors, current members of which will include Richard Sutton of St. James Cheese Company, Seth Hamstead of Cleaver & Co., Graison Gill of Bellegarde Breads, Catherine Markel of Faubourg Wines, and Neal Morris of Redmellon Restoration and Development. One seat will be reserved for the President of the Board of Advisors. (A 6-member Advisory Board comprised of community members appointed by the Faubourg St. Roch Improvement Association (1), the Faubourg Marigny Improvement Association (1), the Bywater Neighborhood Association (1), the Bunny Friend Neighborhood Association (1), the St. Claude Business Association (1) and the District C City Councilperson (1).) One person will serve as the point of contact for all communications with the New Orleans Building Corp. SRCP will hire a full-time market manager to coordinate the day-to-day operations of the business. The Market manager will be responsible for overseeing several other employees.

EXIT STRATEGY
SRCP proposes a lease term of 30 years, at the expiration of which the New Orleans Development Corp may lease the Market to another non-profit or for-profit entity.
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DESCRIPTION OF BUSINESS //////////
The objective of St. Roch Community Partners (SRCP) is to be an asset to the community, with the goal of providing the highest quality and best selection of goods at fair prices. SRCP will operate the Market by leasing individual stalls to non-profit and for-profit vendors. SRCP will operate the produce stall for its own account, and proceeds from the operation of the produce stall will be invested into the Market. By operating one stall for its own account, as opposed to leasing it to a vendor, SRCP can ensure access to micro-vendors who wish to operate in the Market. People who want to sell produce or related wares in the Market may not have the ability or desire to lease a stall on a long-term basis, but they may be able to sell products within the existing, SRCP-run stall. Operating this stall will also allow SRCP to regulate prices on necessities and staple goods. By reinvesting profits from the produce & staples stall, SRCP will also be able to lower overhead and keep rents down across the Market allowing vendors to offer affordable prices. By developing a community based non-profit, SRCP can utilize the ever-growing small farm market, providing commerce for the Market-ready vendors and much needed and wanted affordable fresh food supply for the surrounding neighborhood and city at large. SRCP has the understanding, ability, and connections in the industry to make this public market a viable option for the neighborhood and city and to purchase locally sourced and regionally grown and produced food. Unifying their talents, SRCP’s goal is to be the leaseholder and operator of the Market for a term of 30 years. Members of the board of Directors who wish to be vendors will lease an individual vendor stall at the prevailing rate from SRCP, thus ensuring a personal and financial stake in the success of the Market. Support facilities will include cold and dry storage and areas for educational programs and demonstrations, creating a full-service public market and neighborhood gathering place. The directive of the Partners is entirely community based. All profits will be invested back into the Market, its suppliers, and the community. By eliminating the need for pure profit making by the stakeholders, the SRCP can create incentives for vendors such as low stall rents, resulting in affordable goods, and offer educational programs and classes to customers and the community.

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SUSTAINABILITY AND AFFORDABILITY
St. Roch Community Partners strives to make The Market an integral part of the surrounding community. This means attracting vendors who can offer the community affordable everyday groceries and healthy food options. Although in order to make the St. Roch Market a viable marketplace, SCRP believes it will need to attract customers from other communities in New Orleans at the same time. The ideal vendor for The Market would be able to offer affordable grocery staples for the community and also offer higher-end products and services customers would be willing to travel across the city for. SRCP has approached several vendors with established businesses in other parts of the city who believe they can offer such a range of products and services. For these vendors, St. Roch offers a unique opportunity since many of them operate in parts of New Orleans also served by traditional grocery stores which occupy the lower end of the market. In order to differentiate themselves in the marketplace, they fill a niche in the upper end of the market not served by traditional grocery stores. St. Roch allows these vendors to explore the lower end of the market without having to overcome the tremendous market dominance of an established grocery store in the community. These vendors will offer more affordable lines of products along side the higher priced products they currently sell at their other locations and will likely adjust their selection as the customers and community dictate. The variety of vendors SRCP intends to attract will also allow The Market as a whole to approximate all of the products and services of a traditional grocery store using independent vendors. SRCP will expect all vendors to follow similar practices and the management of The Market will enforce the rules and regulations of the market to ensure vendors are offering quality products at fair prices. SRCP will require all food vendors to accept WIC and SNAP benefits. SRCP also expects that vendors will follow these policies on their own as a vendor who does not effectively attract and maintain a customer base will not have a sustainable business on an ongoing basis and ultimately fail. We also expect vendors to take into consideration existing businesses in the community as competition when deciding whether to enter The Market. SRCP will give preference to vendors the board views as filling unserved or underserved aspects of the community.

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OWNERSHIP/GOVERNANCE
SRCP is a New Orleans-based 501(c)(3) entity made up of local business owners who specialize in creating and providing the highest quality foods and products. Each partner operates their businesses independently; they are forming SRCP to combine their food service knowledge to bring the freshest possible foods at fair-market prices to areas that currently have limited access to such products.

Rich and his wife Danielle opened shop in New Orleans in 2006 with the goal of providing artisanal cheeses, charcuterie, and gourmet grocery items to all. Seven years in, the shop and the Suttons have proven that quality products and knowledge make them the Big Cheeses of the Big Easy.

RICHARD SUTTON, St. James Cheese Company

SETH HAMSTEAD, Cleaver & Co.

A degree in Chemistry doth a butcher make? Apparently so. Seth Hamstead opened Cleaver & Co. in 2012 after realizing the reaction he was truly interested in was that of customers to high quality and custom cuts of meat. His vision of local, sustainable sourcing combined with outstanding service has created a comfortably professional meeting place.

Leaving L.A. for LA, Graison Gill established himself solidly in the New Orleans baking community in 2012 with the opening of Bellegarde, a wholesale purveyor of hand crafted breads. Gill made a name for his wares at the Crescent City Farmers Market; his success there has parlayed into his breads being broken at many of New Orleans’ finest restaurants and grocers.

GRAISON GILL, Bellegarde Breads

CATHERINE MARKEL, Faubourg Wines

Catherine opened her boutique wine shop and wine bar on St. Claude Avenue in 2012. Providing a laid-back atmosphere and high-quality, low-production wines, with many selections priced under $15, the shop instantly earned many fans within the surrounding neighborhoods. Today, neighbors, visitors and folks from all over the city sip and shop at this “Friendly & Fearless Neighborhood Wine Shop.”

NEAL MORRIS, Redmellon Restoration and Development

Neal is a mission-driven real estate developer who has rehabilitated over 400 units of blighted housing in New Orleans, including the former Marquer Drugs (now housing the Shadowbox Theater) at 2400 St. Claude Ave. He is a Loeb Fellow at the Harvard Graduate School of Design where his research has focused on neighborhood redevelopment. He is an Adjunct Instructor of Sustainable Real Estate Development at Tulane School of Architecture. Neal’s firm, Redmellon Restoration and Development, is working with SRCP on the St. Roch Market as a civic venture and any fees earned will be donated to the Market. Either Neal or his designee will serve as a Director of SRCP.

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Clea ver & Co.

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PRODUCTS & SERVICES OFFERED ///
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A survey prepared in November 2010 prepared by St. Claude Main Street, the Faubourg St. Roch Improvement Association, the Faubourg Marigny Improvement Association and the St. Roch Project indicated that the community’s preferred use for the market was fresh food, especially locally grown fruits & vegetables, seafood, baked goods and fresh butcher meats. SRCP agrees that an excellent selection of fresh produce, seafood, baked goods and meats should be the foundation of the Market. Given our state’s natural resources and the history of the St. Roch Market venue, seafood should be showcased as much as possible. Fresh and prepared seafood such as raw oysters, seafood po’boys, and a variety of fresh Gulf fish will be available. SRCP will select a quality seafood vendor with the ability to provide the widest variety of local products. Vendors secured thus far include a butcher, cheese monger, and a baker. SRCP will operate a produce & staple goods stall stocked with fresh, local produce. SRCP is currently seeking a seafood vendor and a restaurant operator. As fresh, local seafood will be a focus in the Market, SRCP will take special care to select a seafood vendor with the ability to provide the widest range of fresh, local products at the lowest prices. SRCP will select other vendors who can provide high-quality, locally sourced & produced goods at fair prices. Vendors will be selected according to their ability to provide quality at an affordable price. As a not-for-profit organization, SRCP can and will rent stalls with an eye toward maximizing public benefit, not profits. Rents charged will be the minimum amount required to attract the optimum mix of vendors. Vendors are expected to “pass savings along” to consumers. SRCP will not audit the books of Vendors, but SRCP will conduct an annual review of Vendor pricing and Vendors whose pricing is not affordable based on competitor benchmarks will not have their leases renewed. SRCP will engage the community to find out what other products are wanted. Residents will be surveyed at community meetings and an on-line survey will be circulated to allow neighbors to weigh in. SRCP will consider the community input when selecting appropriate vendors.
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COMMUNITY OUTREACH
CONSUMER EDUCATION
It will be the responsibility of the individual vendor to provide informed and passionate employees, whose knowledge and involvement in artisanal production will reflect the Market as a whole. The closer we are to the methods of production, literally or intellectually, the more we as a market will educate the consumer. Such intimate proximity to the creation of the product will be the defining aspect of the St. Roch Market: it will be, in a way, both the Market and the farm. When purchasing food at St. Roch Market, each consumer will have the opportunity to learn about the origins of that product from its respective vendor. SRCP will strive to promote quality of ingredients to create a locally, often hand made product. We will emphasize the importance of selling a product, not its packaging, and we will relentlessly stress the quality of freshness only available at St. Roch Market. At every stall, with every vendor, the consumer will participate in production through an educated shopping experience narrated by the producers and artisans.

COMMUNITY ENGAGEMENT
Through a series of innovative and thoughtful programs, SRCP will have a deep presence in St. Roch, the Faubourg Marigny, Bywater and New Orleans as a whole. By thoroughly immersing the St. Roch Market into the fabric of the neighborhood through educational platforms, culinary events, and special monthly events, we will maintain constant communication with the community. SRCP will be, so to speak, both the garden and the harvest. Such a presence will be established through the following: • Classes in conjunction with organizations like NOCCA and Tulane Medical School - An educational and vocational class teaching community members how to shop and cook. Classes can be held both in our facilities and those of NOCCA. • Monthly Pairing Classes – A journey through a certain flavor, region, process, tradition, or product by a market vendor/producer. • St. Claude Art Walk – A connection to local art through offering the Market’s walls as a venue, a food art show, or simply staying open during the monthly Art Walk. • Neighborhood restaurant spotlight month - A specially catered menu by an area restaurant highlighting products and vendors of the St. Roch Market. Potential venues/like-minded establishments, all within a 3/4 mile radius, include The Joint, Elizabeth’s, Mimi’s in the Marigny, Suis Generis, Three Muses, Sugar Park, Borracho, Siberia (Kukchnya), Booty’s, Maurepas, Pizza Delicious, Bacchanal, Fatoush, Feelings Café, Mariza, Ruby Slipper, and Satsuma. • Miscellaneous ideas, to be developed as needed – For example, a weekly chefs-only farmers market on the back gallery, vendor spotlight month, EBT program, etc.

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MARKET ANALYSIS //////////////////
As the decision to rebuild the St. Roch Market as a retail food venture has already been made by the city, it is not necessary to further argue its merits. However, we have taken the following into consideration to ensure the Market serves the community’s needs, protects the city’s investment, and creates a financially viable business that will allow the Market and its vendors to thrive as a local and regional food destination.

LOCATION
St. Roch Market is located in the geographical and cultural center of an ethnically and financially diverse neighborhood. The historic building dates from 1875 and is located on St. Claude in the neutral ground formed by St. Roch Street. The Market, along with the Colton School, the New Orleans Healing Center, the Whitney Bank, and numerous other small business and services, is the hub of activity for the surrounding neighborhoods. The return of the streetcar line to the area will solidify its position.

PRIMARY CUSTOMER BASE
The St. Roch Market’s primary customer base resides in the neighborhoods of the Faubourg Marigny, Bywater, and Upper Ninth Ward. These neighborhoods have a population of approximately 17,271, which resides primarily in owner occupied single-family and duplex dwellings. These neighborhoods are economically diverse, with Area Median Incomes that range from to $9,009 to $106,389. Given the wide economic mix of the area, we seek to make the goods sold as broadly financially accessible as possible, while still adhering to our quality standards. We anticipate shoppers from this area will visit the Market regularly for their food needs, on average two or more times a week.

SECONDARY CUSTOMER BASE
The St. Roch Market will offer a unique array of fresh foods that will be compelling enough to attract regular shoppers from the French Quarter, Treme, and Esplanade neighborhoods. These neighborhoods comprise an additional 10,814 residents, with Area Median Incomes of $9,148 to $178,874. With continued redevelopment throughout Treme and the French Quarter, particularly along Rampart Street and Esplanade, we believe that the area will continue to see a growth in residents in the coming years. We believe shoppers from these areas may visit the Market on average once a week.

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INCIDENTAL TRAFFIC
The St. Claude Corridor is a major feeder into the Lower Ninth Ward and River Parishes and a designated truck route. There were approximately 23,215 vehicle trips per day in 2008 on this route, which passes immediately in front of the Market, making it a convenient stopping point en route to or from work. The number of vehicle trips per day continues to rise as the surrounding neighborhoods move closer to pre-Katrina population. The anticipated number of visitors in this category is difficult to measure.

ADDITIONAL CUSTOMER SOURCES
The population within a 3-mile radius of the Market is estimated at 152,170. Within this radius are numerous affluent neighborhoods, including the Warehouse District, the Lower Garden District, Mid City, Broadmoor and Uptown. The unique mix of specialty foods on offer at the St. Roch Market will be a strong attraction to predisposed residents in these areas, who will make the St. Roch Market a destination once a month.

TOURIST TRAFFIC
While the primary focus of the Market is to provide fresh foods to residents, it cannot be ignored that New Orleans is a world famous food destination, and visitors to the city seek out its culinary treasures. In 2012 there were 9.01 million visitors to the city. The historic nature of the Market and the neighborhood will be a strong draw to some of these tourists, particularly on the weekends. Additionally, the specialty food industry is the fastest growing segment of the retail food industry, worth $20.3 billion in 2011, averaging 3% growth in the 5 years prior. Artisan foods are in high demand and are a destination in their own right. The anticipated number of visitors in this category is difficult to measure, but it is not unreasonable to assume that within 12-18 months of operation the St. Roch Market will become a “must see” destination for visitors eager to obtain an authentic New Orleans experience.

ECONOMIC PROSPECTS
The last several years have seen significant growth in the local retail landscape, with numerous new independent businesses opening. Many of these businesses are in the restaurant sector catering to casual but affluent diners and shoppers, particularly in the Marigny and Bywater neighborhoods. Our professional contacts with these businesses have revealed to us that they thrive on both local and tourist traffic. Across St. Claude, the Lower Ninth Ward also continues to grow, with increased population and new or renovated businesses apparent along the St. Claude Corridor. There is increasing night traffic to numerous clubs and restaurants; there is a vibrant artistic community; the Healing Center is thriving; and there is a monthly arts market that draws visitors from around the city. The location of the St. Roch Market at the center of this activity will ensure high visibility amongst residents and visitors, which will assist us in quickly accessing the previously mentioned customers. In addition, with the return of the streetcar anticipated in 2015, we believe these historic neighborhoods will continue to attract new residents and tourists from within and beyond the boundaries of Orleans Parish.

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COMPETITIVE CONSIDERATIONS
The comparative landscape in retail food industry in New Orleans continues to be underserved by both large and small grocers. • In the immediate environment of the St. Roch Market, the leading retail food businesses are The New Orleans Food Co-op, located near the St. Roch Market, and Mardi Gras Zone, about 7 blocks away. Those ventures are both well trafficked, but each offers only limited fresh foods. Most goods are packaged, shelf stable, or prepared foods. Some categories of foods that will form the core of the St. Roch Market, including fresh meat, bread, cheese, and seafood, are virtually absent. • There are approximately 12 small convenience stores in a 12-block radius. These stores sell primarily packaged prepared foods, beverages and snack foods, with few fresh food options. • Beyond the immediate neighborhood, there are three small groceries in the French Quarter, two of which (Rouses and Verti Marte) offer a traditional array of grocery items alongside a limited selection of fresh foods. The third (Central Grocery) offers more specialized goods but also draws heavily on prepared food traffic. • The French Market in the French Quarter offers a limited selection of fresh food items; however, its primary business is to service tourist traffic with prepared foods, beverages, and souvenirs. • Larger supermarkets in the New Orleans market include Rouses, Whole Foods Market, Winn-Dixie, Wal-Mart, Fresh Market, and Robert’s Fresh Market. With some significant overlap, each company targets slightly different demographics. Of particular interest to this venture is Whole Food Market and Rouses. Both retailers were indicated as primary sources for fresh foods by residents, according to the St. Roch Market Survey conducted in 2008. Both Rouses and Whole Foods Market do a good job of offering quality fresh foods, fair prices, and reasonable support of local producers. While neither has a presence in the immediate vicinity of the St. Roch Market, we expect they will be our primary source of competition. • There are several farmers markets operating in New Orleans on a regular basis. While the quality of the foods at these markets is high, most operate no more than once a week, and selection is limited. It is not our desire to stifle existing farmers markets but to enhance the model in this particular neighborhood by operating daily and offering a more comprehensive array of fresh foods.

CUSTOMER BEHAVIOR

The specialty food industry has seen tremendous growth in the last 10 years. Consumers have become increasingly conscious of the nature and quality of the food they eat. While this differentiation has been seen in higher income brackets for some time, consumers across all incomes are starting to make choices based on how and where products are sourced. The demand for locally sourced goods continues to grow. Our selection of vendors will be strongly influenced by clear consumer demand for high quality, nutritious, responsibly produced fresh foods.
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INDUSTRY ANALYSIS ///////////////
The St. Roch Market is positioned uniquely within the industry, as it provides a venue and marketplace for independent operators in addition to physical real estate. Therefore, SRCP competes within the industry at several levels. Independent operators are both customers and suppliers to the Market, depending upon perspective. Competitors also exist at many levels. Within this section, we will discuss how the St. Roch Market is positioned within the industry and the competitive environment it faces.

COMPETITIVE ENVIRONMENT
The St. Roch Market is positioned within several industries. At one level, the Market is a real estate venture providing space and shelter to independent vendors to operate their businesses. In this capacity, the Market competes with any vacant storefront in the area as a location for a business to operate. What makes the Market unique in this sense is the curated collection of businesses that the Market will house multiple vendors under one roof, providing customer convenience and opportunities for cross promotion currently unseen in the local retail food industry. In this sense, the Market is analogous to what shopping malls like Lakeside Mall and shopping districts such as Magazine and Broad Street offer retail stores and restaurants. At another level the Market acts as a marketplace for consumers and vendors and competes with other public markets, such as the French Market Corporation, Market Umbrella’s Crescent City Farmers Market, and various smaller farmers markets and art markets around the city. With the exception of the French Market, all of the competitors are occasional markets, operating one or two days a week in a given location. The French Market is open seven days a week and offers vendors permanent or temporary stalls and utilities for a fee, although the location is not convenient for most residents of the city and the vendors largely cater to the tourist trade with very limited fresh food options. The Crescent City Farmers Market operates three farmers markets around the city; each market operates for one day a week at one location using temporary shelters and facilities. Other farmers markets and art markets exist throughout the city, including the Sankofa Market in the Ninth Ward, the Algiers Point Market, and the Frenchman Art Market, and like the Crescent City Farmers Markets, these operate one day a week using temporary facilities. Unlike any of these markets, the St. Roch Market will operate seven days a week as a fresh food-centered public market of independent vendors vetted and overseen by SRCP. At another level, the Market as a collection of independent stores is an approximation of a grocery store or food market to consumers. As what some would consider a food desert, the St. Claude Corridor has few high quality options for consumers. Most food retailers in the neighborhood are small “Mom and Pop” stores, operating neighborhood convenience stores out of small storefronts or former residential properties. The only full service grocery stores in the neighborhood are Mardi Gras Zone and the New Orleans Food Co-op. Mardi Gras Zone started as an outlet for beads, boas, and other trinkets until the owners realized the need for a food retailer in the neighborhood Post-Katrina and added packaged foods and deli items to the store. The New Orleans Food Co-op is a relatively new addition to the neighborhood and is located in the New Orleans Healing Center, across St. Claude Avenue from the Market. The New Orleans Food Co-op operates as a cooperative grocer, where the consumers can purchase shares of the store and participate in its operation. As it runs today, the Co-op operates as a full-service grocery store but has struggled to consistently stock fresh food items such as those we plan to offer at the Market. We believe the Market will compliment the currently existing food retailers in the neighborhood and bring fresh food into a market that currently has few options.

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SUPPLIERS
The Market will be dependent on independent vendors to fill the stalls and offer high quality fresh foods to the community. The Market will allow current businesses located in other neighborhoods of the city the opportunity to expand into the St. Claude Corridor and fledgling entrepreneurs a venue to start new businesses. In operating the Market, SRCP will vet these vendors on quality of products offered and business viability to ensure consistency in the Market. Vendors will be reviewed periodically by the management to ensure they are maintaining the expected levels of quality and affordability. The Market infrastructure will be designed to minimize disruption in the event of vendor turnover if a vendor chooses to vacate or is asked to leave the Market. We believe that the number of current businesses and potential vendors for the Market will be sufficient to fill the Market with high quality vendors offering a diverse array of products and expect a competitive process for selecting vendors.

CUSTOMERS
The Market will draw retail consumers locally from the St. Claude Corridor, Bywater and Marigny neighborhoods and more broadly from the Greater New Orleans area. While we believe the Market will draw customers from the local neighborhoods who are currently in an underserved food market, we also believe that the unique mix of high quality vendors at the Market will draw from a larger geographic region. Customers from around New Orleans will be able to shop at many of the city’s premier vendors all under one roof. We think the diversity of vendors and products available in the Market will attract a significant retail customer base from a local and broad region. In addition, Market vendors will also be able to serve customers wholesale. Many restaurants in the Bywater and Marigny neighborhoods must travel to other parts of the city to procure high quality products. We anticipate many of these restaurants could instead pick up products from similar, if not the same, vendors through the Market. This will allow the Market to become more engrained in the local business community.

BARRIERS TO ENTRY
Given the historic nature of the Market building, the geographic location in an underserved market, and the breadth and quality of vendors involved, we believe the Market is a unique project that cannot be imitated within the area served. If a competing market did emerge, it would face several significant barriers to entry. A competing market would need to find a large parcel of land, vacant building, or group of vacant storefronts sufficient in size, condition, and configuration to accommodate this new market in a dense urban environment. Given the competing market was able to obtain such real estate, it would need to recruit vendors from the same pool of vendors available to the St. Roch Market. Beyond that, given the assumption of the successful execution of this business plan for the St. Roch Market, few investors would believe there would be room in the economic market for a competing public market around the St. Claude Corridor.

SUBSTITUTES
For consumers, the natural substitutes to the Market would be full-service grocery stores, farmers markets, the New Orleans Food Co-op, and the many local corner markets. For consumers in the neighborhood, the ability to obtain high quality fresh food relies on owning a car and driving to other neighborhoods. Options within the neighborhood are either poor quality processed foods or high prices. The Sankofa farmers market does operate close to the Market but only once a week and in various locations. Emerging substitutes, for vendors and consumers, are online marketplaces and delivery services, such as Good Eggs, which could potentially compete with the Market but cannot substitute for the experience of smelling, touching, and selecting fresh food in person.

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STRATEGY AND IMPLEMENTATION ///
MARKET ENTRY STRATEGY
Upon securing financing and obtaining a lease on the St. Roch Market, SRCP will begin renovations on the physical building to finish the space and start recruiting local vendors to fill the stalls. As an incentive to entice high-quality vendors, SRCP will offer discounted rent for the first six months until shopping traffic at the Market stabilizes to normal levels. SRCP will also engage the community with free public events to commemorate the opening of the Market with our local partners. These events will bring potential shoppers into the Market and give local media outlets events to cover, allowing the Market free press.

MARKETING STRATEGY
SRCP will rely initially upon free press generated by the interest and curiosity surrounding the St. Roch Market to publicize the return of the Market to commerce. SRCP will also stage free public opening events to engage community members and potential customers while obtaining additional press coverage for these events. After the initial flurry of media coverage has subsided, SRCP will begin traditional and social media marketing en force. SRCP will use non-profit underwriting rates with WWNO and WWOZ to advertise the Market and feature individual vendors, as well as print media outlets such as The Gambit. SRCP will coordinate with community organizations to co-promote events and marketing campaigns to increase the reach of our marketing to larger customer bases. SRCP will become a greater part of the community by hosting and participating in local events, such as community meetings and coordinated gallery openings, to engage the neighborhood. The Market will also host periodic farmers markets on the patio and perimeter of the building to allow small producers and organizations in the community to sell their wares. SRCP will make full use of Internet resources to promote the Market and create a community of customers. In addition to creating a website containing pertinent information on the Market, SRCP will create a Facebook page, a Twitter account, and other social media services to create a community of engaged consumers and promote market activities. Whenever possible, SRCP will design social media campaigns to produce direct and measurable results, in order to validate successful social media tactics and abandon unsuccessful campaigns.

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LOCAL ALLIANCES
SRCP will work with other businesses and organizations in the community with similar visions and goals to coordinate efforts and build a community of support for the St. Roch Market. These local alliances will include local businesses, such as Faubourg Wines, Gerkin’s Bikes, St. Coffee, Shadowbox Theatre, and Café Istanbul, and local governmental entities, such as the Alvar Branch Library, NOCCA, and the Colton School. SRCP will also work with other non-profit organizations, such as Market Umbrella (operator of the Crescent City Farmers Market), Hollygrove Market & Farm, Sankofa CDC, and Slow Food, to promote proper nutrition and access to local vendors and producers.

INTERNET STRATEGY
SRCP and the St. Roch Market will maintain a strong Internet presence both autonomously and through its individual vendors. Such outlets as Facebook, Twitter, Flickr, and Instagram will keep customers and vendors alike informed, inspired, and in-the-know about products, events, and news from St. Roch Market. In addition to our social media presence, we will have an informative website. SRCP will also canvas local media—with whom individual vendors already have a healthy rapport—to maintain a constant media presence. Such venues include: Nola.eater. com, The Times-Picayune/nola.com, The Advocate, and The Gambit.

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RISK ANALYSIS ////////////////////
There are several risks involved in any business. The following are the major risks we have identified during the conception and operation of this business. While we believe we have given these risks much thought, we also expect unforeseen risks and challenges to make themselves apparent during the execution of this business plan.

COMPETITION

There is a risk that currently identified competitors may change their business model to directly compete with the St. Roch Market and its vendors or use their pricing power to preclude the establishment of a sustainable business. There is also the risk that an unforeseen competitor or new market entrant may move into our market to serve our customers. We believe that current identified competitors would have already changed their business models if they were pursuing this market and establishing good relationships with our vendors and customers will either preclude new market entrants or raise the barrier of entry into the Market.

SHIFTS IN CONSUMER DEMAND

Consumer diets change with the seasons. Foods go in and out of fashion. Movements come and go. Consumer demand for locally-sourced and sustainably-raised products and independent vendors could take a drastic and unforeseen downturn with little notice and leave the St. Roch Market with an unsustainable business model. We believe we have designed the business model to be flexible enough to respond to these shifts in consumer demand.

ENVIRONMENTAL

The St. Roch Market is located in, and is dependent upon suppliers, vendors, and customers within, the Gulf Coast region of the United States, an area vulnerable to tropical storms and hurricanes. While we expect occasional business interruptions due to storm evacuations, there is also a risk of a major storm hitting New Orleans or one of our source farms and causing significant damage. Climate change and coastal erosion also pose risks to our business, suppliers, and customers in the future.

CAPITALIZATION

While we have conservatively forecasted our financial models, there will always be a risk that we have over or under estimated any variable. If we significantly overestimated our revenue and underestimated our costs, there is a risk that the business becomes under capitalized and runs out of money prematurely. To reduce this risk, we have taken a conservative approach to our estimations, although we cannot alleviate this risk entirely. The Directors have committed considerable funds to the non-profit thus ensuring a financial stake and continued commitment to the project.

EXECUTION

While we have diligently prepared our business plan, there is a risk that execution of the plan is not sufficient to build a profitable business. Internal and external factors contribute to this risk as unforeseen events may occur and management may not be capable to react in a manner to maintain the business. During our formation of this business plan, we have taken steps to prepare ourselves for as many of these events as we can and developed our skills to react in a timely manner to minimize this risk. Collectively the Directors have committed to invest significant funds into the Market.

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MANAGEMENT AND PERSONNEL
NON-PROFIT LEGAL STRUCTURE
St. Roch Community Partners is a 501(c)(3) non-profit organization. Directors will not stand to gain personally form the organization’s activities. It is important to the members of the Board that the organization’s function be a community-driven entity, so any profit accrued by the running of the Partner-established produce stall is to be funneled back into the Market for operations, educational programs and cooking classes, and vendor incentives. The Members will be directly involved in the operations of the Market: as vendors with individual market stalls, as administrators reviewing applications for qualified vendor-tenants, ensuring the hiring of managerial personnel, and overseeing the development of the facility. One individual will be designated as the liaison between the New Orleans Building Corp and the Market.

PROJECT STAFF POSITIONS
While the Board of Directors of SRCP will provide leadership and oversight, SRCP will also hire an Executive Director and 4 other full time equivalent positions.

MARKET GENERAL MANAGER

A full-time position, $45,000 salary. Plans and directs the day-to-day operations of the Market. Contributes to developing strategies to improve service, sales and profitability. Assists in selecting vendors and negotiating lease agreements. Ensures vendor and customer needs are met; complaints are resolved. Assesses and hires employees and interns (produce manager, janitorial support, sales support for produce stall) and handles payroll duties. Candidate will have at least 3 years experience in the field or related field and will be familiar with a variety of concepts, practices and procedures relating as such. Provided support and reports directly to the Board of Directors.

PRODUCE MANAGER
A full-time position, $30,000 salary. Oversees the Market-run produce stall, includes stocking saleable goods, interacting with retailers and customers, has knowledge of the products and the Market. Assists the General Manager, acts as General Manager during any extended absence from the Market, and reports directly to the General Manager.

JANITORIAL AND MAINTENANCE SUPPORT
1.2 full-time equivalent positions, $12.00/hour wage. Maintains general cleanliness and neatness of the Market service areas, conduct preventative maintenance, perform repairs as needed,. Will maintain bathroom supplies and cleanliness, keep aisles clutter-free, remove refuse from the Market areas and put out for sanitation, keep outdoor areas of market clutter and trashfree. Reports directly to the Manager.

FLOOR STAFF
1 full-time equivalent employee (2-3 part-time employees), $20,000/year allotted for wages. These employees will operate the produce stall, work with customers, collaborate with and report directly to the Produce Manager.

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