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Supporting access to food choices, livable neighborhoods, and entrepreneurial opportunities in Madison, Wisconsin
Heather Stouder, Author and Intern
Office of the Mayor Madison, Wisconsin Mayor David J. Cieslewicz May, 2004
Table of Contents
Acknowledgements ---------------------------------------------------------------------------------------------------------Executive Summary --------------------------------------------------------------------------------------------------------Introduction -------------------------------------------------------------------------------------------------------------------Food retail as a public issue ---------------------------------------------------------------------------------------------Access to food choices ----------------------------------------------------------------------------------------------Livable and walkable neighborhoods ----------------------------------------------------------------------------Food-related entrepreneurial opportunities ---------------------------------------------------------------------Overview of trends in the food retail industry ------------------------------------------------------------------------Trends in consumer purchasing habits --------------------------------------------------------------------------Food retailing trends: Consolidation & standardization ------------------------------------------------------Food distribution -------------------------------------------------------------------------------------------------------Efforts by other cities to attract grocery stores in other cities ----------------------------------------------------Description of the diversity of existing grocery stores in Madison ----------------------------------------------Historical city intervention with grocery stores in Madison -------------------------------------------------------Updates on three recently closed sites --------------------------------------------------------------------------------Kohl’s Food Emporium, 2525 E. Washington Ave. -----------------------------------------------------------Kohl’s Food Emporium, Sherman Plaza, 2921 N. Sherman -----------------------------------------------Ken Kopp’s, 1864 Monroe St. --------------------------------------------------------------------------------------Goals and policy options for the city to preserve and encourage neighborhood grocery stores -------Potential partners -----------------------------------------------------------------------------------------------------------Conclusion --------------------------------------------------------------------------------------------------------------------Bibliography ------------------------------------------------------------------------------------------------------------------By Late May, 2004, this report will also be available on-line at: http://www.cityofmadison.com and http://businessmadison.com 3 4 8 9 9 11 13 14 14 14 15 16 18 22 24 24 25 27 28 33 35 36
In the ways it affects individuals, cities, and the fabric of communities, food retailing is an extremely complicated issue. Determining appropriate and feasible ways for the City of Madison to support and encourage neighborhood grocery stores is an on-going, collective effort. Hopefully, this document provides a point from which City staff and citizens can move forward in support of equitable access to food choices and neighborhood grocery stores. Thank you to the many individuals that contributed their time, insights, and expertise to this report specifically, and thank you to those who will continue to shape it in the future. City of Madison Mayor’s Office David J. Cieslewicz, Mayor Jeanne Hoffman, Assistant to the Mayor City of Madison Department of Planning & Development Michael Gay Joe Gromacki Hickory Hurie Don Marx Brad Murphy Katherine Naherny Mark Olinger Peggy Yessa Other Contributors Susan Hill, Northside Planning Council Matthew Kures, UW Extension Community Economic Development Bill Lanier, Madison Metropolitan Planning Organization Todd McGrath, McGrath & Associates Steve McKenzie, Jenifer St. Market Lynn Pitman, Monroe St. Co-op Jim Powell, Northside Planning Council Brad Ricker, Monroe St. Co-op Mary Rouse, Regent St. Co-op Barbara Smith, Focus on Energy, Wisconsin Department of Administration Tim Sobota, Metro Transit, City of Madison Eric Stonebraker, Previous Intern, City of Madison
Draft - 5/14/04
Executive Summary Guiding the decisions of food retailers. walkable neighborhoods is a difficult task faced by non-profit organizations and local governments in cities across the nation. affordable. 3) Encourage food related entrepreneurial & employment opportunities that support one or both of the above goals. this report has been prepared to provide a starting point from which the City of Madison can work to preserve and encourage grocery stores as important components of healthy neighborhoods across the city. For the benefit of the Madison Neighborhood Grocery Store Advisory Group convened by the Mayor in Summer 2003. and cultivating entrepreneurial opportunities are important long-term objectives for the City of Madison to consider in the context of preserving and supporting grocery stores across the city. promoting livable and walkable neighborhoods.and providing support for them. even as many municipal governments realize this. Recent closures across the city have sparked significant concern and interest among citizens and City leaders. Since all people require food on a daily basis and shop for it frequently. Market forces and consumer behavior all too often work against the success and proliferation of small grocery stores distributed equitably across the City. the general goals and policy framework suggested in this report are as follows: General Goals 1) Retain a diversity of food buying options and preserve maximum access to nutritious. We currently enjoy a diversity of food choices across our city. food retailers should be recognized as far more than simply another retail establishment. 4) Support Madison-owned grocery stores to the extent possible.5/14/04 4 . there are limited ways for cities to intervene in support for grocery stores when particular parcels of land are owned and controlled in the private realm. 2) Encourage the development of small and medium sized grocery stores in developing and re-developing neighborhoods to provide food-purchasing options within proximity to residents in neighborhoods across the City of Madison. though some are far less accessible to citizens without vehicles. and culturally appropriate food choices for all Madison residents. Ensuring equitable access to food. or those living in neighborhoods without grocery stores. Draft . After reviewing past city interventions with grocery stores and providing updates on recently closed sites.in order to ensure equitable access to food and promote livable. However.
Draft . the City should pursue ways to support food retail within the Capital Revolving Loan Program. 3) Food Distribution: As small and independent grocers often face difficulties accessing economical food distribution networks. 2) Financial Assistance: As food retailers operate on an extremely tight margin.5/14/04 5 . assessments of blight in the area may be undertaken to determine whether or not the creation of a Redevelopment District is an appropriate way to initiate City involvement. Tax Increment Financing.High-Priority Policies 1) Redevelopment Strategy: Where severe need for a grocery store is shown outside of existing redevelopment districts. the City should examine ways to support food distribution networks that prioritize area food producers and local food retailers simultaneously. and other grants and loans.
specific language should be included in the Comprehensive Plan to identify grocery stores as important considerations for developing and redeveloping neighborhoods. the financial feasibility of providing support for parking infrastructure with Tax Increment should be assessed. considerations should be made regarding grocery store access and the need in and surrounding the proposed district. When proposed TIF districts are reviewed. Land Use Regulation During the review and negotiation process for Planned Unit Developments and mixed-use development proposals within commercial zones. CDBG and the Capital Revolving Loan Program could set-aside a percentage of their funds each year for food retail businesses. Further. 27-30 for more detailed discussion about the following suggestions) Comprehensive Plan Process Where possible. Within existing TIF districts. Within the Capital Revolving Loan Program. neighborhood associations should be able to gain financial support for administering market surveys to aide in recruitment of grocery stores appropriate to serve neighborhood needs. to ensure that among all small businesses.Policy Framework (Please see pp. applicants from food retail businesses providing entrepreneurial and employment opportunities are identified and supported in Madison neighborhoods. Draft .5/14/04 6 . but lack of adequate parking prevents a major barrier. where a grocery store (alone or within a mixed-use development) would be appropriate. Financial Assistance While essentially operating in the same way. recruitment of and financial assistance for grocery stores should be a priority. City staff could perform outreach to encourage neighborhood groups to apply for grants for this purpose. planning staff and property owners should initiate Shared Parking negotiations between potential grocers and nearby businesses in order to minimize the need for new surface parking. funds could be dedicated for equipment upgrades and facade improvements for existing grocery stores. When possible. where a grocery store would be appropriate. Within existing TIF districts. possibilities for including food retail should be considered and analyzed (see page 4 for examples). Through Neighborhood Planning Grant programs.
discussions could be initiated with landowners and developers to determine the feasibility of locating a grocer in the district. and distribute this information to business owners Provide support for the Centralized Agriculture and Food Facility (CAFF) project as a means to support area farmers and scale up the distribution of fresh and local foods to grocery stores of all sizes. compile information on state and federal support programs supporting energy efficiency. and restaurants Draft . and the Neighborhood Grocery Store Advisory Group could initiate a joint research effort to document current energy use in Madison’s grocery stores. Depending on the level of need for a grocery.5/14/04 7 . As market analyses for food retail are completed. Where severe need for a grocery store is shown outside of existing redevelopment districts. and the suitability of parcels.Real Estate Strategy Within existing Redevelopment Districts. and Children (WIC) program or food stamp recipients The City’s Energy Task Force. foodservice institutions. MG&E. possibly as a partnership with Dane County Support a focused campaign to inform citizens of existing Metro transit options to and from grocery stores Evaluate the transportation needs of senior citizens in Madison. and expand public transportation options to grocery stores or support food delivery programs accordingly Evaluate transportation needs in areas with a high concentration of residents without vehicles. such as participants in the Women. assessments of blight in the area may be undertaken to determine whether or not the creation of a Redevelopment District is an appropriate way to initiate City involvement. Infants. and provide more frequent and/or more direct public transportation routes to and from grocery stores Explore opportunities to work with and subsidize taxi companies to provide free or reduced rates to full-service grocery stores for those that meet a particular set of criteria. municipal bonds and or condemnation should be considered as methods by which the City can support improvements on the blighted sites to attract grocery stores. City staff may assess the need for neighborhood grocery stores and the suitability of blighted parcels. If both inadequate food retail access and suitable sites are discovered. procedures and findings can be shared and utilized as educational tools for citizens Other Options and Related Opportunities Pursue funding for the creation of a Food Policy Council. Market Analysis The Department of Planning and Development should assess the need for upgrades of market analysis software to more efficiently and accurately capture neighborhood food needs.
and cultivating entrepreneurial opportunities are important long-term objectives for the City of Madison to consider in the context of preserving and supporting grocery stores across the city. even as many municipal governments realize this. where less expensive parcels of land become big box retail spaces and surface parking lots. How might the City of Madison take a proactive. which are often seen as challenging to locate in established urban neighborhoods. food retailers should be recognized as far more than simply another retail establishment. but tend to persist in middle to high-income areas where consumer dollars provide sufficient revenue to pay the high rent. Market forces and consumer behavior all too often work against the success and proliferation of small grocery stores distributed equitably across the City. Ensuring equitable access to food. policy-oriented approach to maintain and encourage grocery stores in city neighborhoods? For the benefit of the Madison Neighborhood Grocery Store Advisory Group convened by the Mayor in Summer 2003. Small neighborhood grocery stores with high quality or specialty foods often struggle. Tight profit margins in the food retail industry make it difficult for businesses to survive without efficient distribution networks and large stores. The average supermarket size is 54. However.Introduction Guiding the decisions of food retailers. promoting livable and walkable neighborhoods. included but not limited to the following: Large. This leads to several trends. 2004).5/14/04 8 . Though Madison is not a city plagued by vast “food deserts” (large areas of primarily low-income residents without access to grocery stores). this report has been prepared to provide a starting point from which the City of Madison can work to preserve and encourage grocery stores as important components of healthy neighborhoods across the city. and convenience stores offering foods of lower quality and less nutritional value (often at higher prices) are frequently the most viable options for those without access to a vehicle. In low-income urban neighborhoods.in order to ensure equitable access to food and promote livable. recent closures across the city have sparked significant concern and interest among citizens and City leaders. there are limited ways for cities to intervene in support for grocery stores when particular parcels of land are owned and controlled in the private realm. Draft .000 square feet (Pothukuchi.and providing support for them. walkable neighborhoods is a difficult task faced by non-profit organizations and local governments in cities across the nation. there are few full-service grocery stores. Since all people require food on a daily basis and shop for it frequently. full-service supermarkets have tended to move to the urban periphery.
the location of stores certainly affects the ability of those without automobiles (typically low-income and elderly citizens) to make a trip to the grocery of their choice feasible. super-sized stores. WI: access to food choices. it is not at all rare for corporate grocery store chains to close less profitable stores and focus operation in higher profit areas. the majority of consumers relying on automobiles to make trips to a grocery may not consider the location of grocery stores a critical place for public concern.S. First. especially if young children are involved. consistent access to affordable. It is important to note that while they are integrally related. a giant super center). livable and walkable neighborhoods. citizens have easy.food retailers simply follow customer dollars as suburbs grow. and support for entrepreneurship. With costs and revenues spread throughout multi-state regions or even internationally. colorfully packaged. One grocer on Madison’s East side reportedly collects grocery carts daily at the nearby East Transfer Point Bus Station. As Madison’s elderly population continues to increase. income level. If long bus trips or expensive taxi rides are too inconvenient. cities? Why should a city pay specific attention to grocery stores. fresh and processed food products sourced from around the world. and has an arrangement with at least one grocer to drop-off and pickup customers right at the door. With a quick trip to a grocery. Many residents must rely on public transportation or taxis to take them from underserved neighborhoods to a store with an adequate choice of affordable food. many food retailers have left urban neighborhoods for larger tracts of suburban land. For independent stores facing low profit margins and difficulty accessing an economical food distribution system. since a short drive can get them to a wide variety of stores in the region. and what policy tools might be used to support small neighborhood food retailers in the face of widespread trends of corporate consolidation. 2003.. which offer a much narrower range of (and Draft . the Madison Metro Public Transit “Ride Guide” includes routes to 20 area grocery stores among popular destinations. many rely largely on corner convenience stores. there are a variety of ways to “frame” food retail as an issue in the public domain. every person needs to purchase or otherwise obtain food on a regular basis. or location. However.5/14/04 9 .) Regardless of age. 2/04). pursuit of each of these goals might require a unique combination of strategies. and perhaps most importantly.S.to stock up on food for a large family) one can imagine the time and difficulty in planning and executing the trip. This occurred (and continues to occur) for two primary reasons. grocery carts are often left at bus stops and transfer stations (see photo). Access to Food Choices First. Yet if a customer is making a trip other than a small errand (for instance. In Madison.undeveloped tracts of suburban land offer the space perceived as necessary for adequate square footage and parking. Getting to the Grocery Importantly. this will become more and more important.Food Retail as a Public Issue Is food retail an issue that should be included in the public agenda? Doesn’t the free market dictate the most efficient number and ideal locations of food retailers across U. the importance of access to healthy affordable food for all citizens in Madison must be considered (see Bolen and Hecht.S. In a process that began decades ago. (or increasingly. where customers relying on buses have had to wheel their goods before getting back on the bus (Sobota. and second. many U. and onestop shopping? In cities across the U. Understandably. Following are three ways in which food retail might be framed and addressed in the City of Madison. closure may be imminent without assistance.
Though such obvious “gaps” may not be as evident in Madison. While a very large grocery store exists between the two sites. similar patterns do exist. Further.UW Campus and the Capitol Square. The census blocks nearest them contain hundreds (even thousands) of households without cars.5/14/04 10 . statistical patterns and maps have shown significantly fewer supermarkets in areas with a high percentage of low-income and minority residents (Shaffer. Los Angeles. Madison’s downtown center and the UW Campus are also worth noticing. UEPI. In large cities across the U.and the concerted efforts of neighborhood residents to do something about it. The two recently closed Kohl’s Food Emporiums depicted by blue squares on the map below are immediately surrounded by census blocks with large numbers of households without cars. students and downtown area residents would benefit greatly from an additional walkable option. If large grocers were to locate in these areas. Recent closures of grocery stores.S. residents across the entire city that rely on bus transportation for grocery shopping or commuting to work would have a convenient option near the most frequent and consistently used transit nodes in the City. 2002. Draft . it is unlikely that former patrons of either of the closed grocery stores can feasibly walk the extra distance to this store. 2002. and yet the area completely lacks a large grocery store.often less nutritious) food products at higher prices than full-service supermarkets. 2003). The Food Trust.have significantly raised the importance of the issue of access to food choices in Madison. and Philadelphia. such as Detroit. and can be clearly seen when looking grocery store locations and car ownership.
Most food Beyond the way they affect energy use in the form of customer retailers. Thus. broad region. the market and particular zoning codes have Reducing energy use in grocery stores worked against these goals. Certainly. the “human scale” associated with small and mediumsized grocers is well worth preserving.energystar.focusonenergy. planners.largely devoid of interaction in the long bright aisles and sea of parking spaces that surround them. and municipal leaders across the nation recognize the benefits of livable. demand very large refrigeration (which alone accounts for 38% of the energy used in parking lots to accommodate grocery stores!) pose enormous costs for stores of all sizes. and well-designed receiving docks can minimize noise from food delivery trucks. small and medium-sized grocery stores hold enormous potential as components of livable and walkable neighborhoods. appliances. entrepreneurs.Livable and Walkable Neighborhoods As Madison continues to develop and redevelop. How might the City of Madison encourage this trend? Draft . In dense. and air a minimum number of stalls per square conditioning equipment with assistance from the local utility district foot of retail space. the EPA’s Energy Star work with small tracts of urban land and Program has dedicated a category for grocery & convenience make the neighborhood grocery store stores.gov/index. employment.000 after installing new lighting. Whereas small grocery stores used to be popular community gathering spaces. investments in below or above ground parking may be far more economically viable (see next page). the provision of parking spaces for grocery stores is still important in order for them to remain economically viable. refrigeration. it is often (Energy Star. For on the program can be found on-line at: this reason and others. However. consumers driving to their stores from a Federal and state programs to encourage energy efficiency may help to significantly reduce long term energy costs for stores. Smaller full service food retailers can survive in these neighborhoods. air conditioning. mixed-use neighborhoods.jsp?pageId=1183 industrial land uses have historically been separated from residential areas by zoning codes. trends are changing as citizens. Further. Parking requirements are eventually leading to higher profit margins. Developers. commercial and http://www. Extensive information might pose significant problems.cfm?c=grocery. even if parking was not http://www. frequent walking or biking trips are a far more viable option than the auto-dependent weekly stock-up. Further. difficult from a business perspective to Within its information for small businesses. and corporate owned. a small family also enforced by zoning codes that set owned grocery store in Sacramento has saved an estimated $22. Over the past few decades. In fact.whether independent or vehicle trips. grocery stores themselves have a high metabolism. early developed a special effort focused on supporting grocery stores including technical and financial assistance for monitoring energy morning noise from delivery trucks use and the installation of new equipment.5/14/04 11 .sb_grocery a significant issue and large grocery Recognizing the unique fiscal challenges and energy needs of stores did exist within primarily food retailers. which can be accessed on-line at: “work”. mixed use neighborhoods in areas underserved by grocery stores. However. Proximity of food retailers to residents can drastically reduce the number of vehicle trips used to fill the kitchens of Madison households. and grocery store chains are recognizing the true potential of dense. 2003). as full service grocery stores exist within walking distance of residential or mixed-use neighborhoods. residents have increased transportation options that reduce the need for vehicles. and until major changes occur in U. lifestyles and landscapes. and retail amenities existing at a human scale.S. The use of energy for lights. many car-owners will still drive to grocery stores. In mixed-use developments that include grocery stores along with residential and/or office spaces. walkable neighborhoods that include a variety of residential. typical big-box supermarkets are generally quite the opposite. Wisconsin’s Focus on Energy Program has also residential neighborhoods.com/page.
At 16th Avenue and East Madison Street. Oregon’s East Side (shown at right). Washington Puget Consumer’s Co-op. recently became the anchor retail tenant in a mixed-use commercial/ residential development in Seattle’s Fremont neighborhood. “Madison Crossing” (shown at left) includes 24 residential units. each of these stores is accessible by car. Subsequently.000 square foot grocery.000 to 50.000 square feet. which includes both rental and owneroccupied housing.5/14/04 12 . Underground parking is available onsite. a 15. Oregon Wtih approximately 20. a 50. bus. or foot. The project has been recognized nationally for its excellence as a model of urban infill and mixed-use development. In the rapidly densifying inner NW area of Portland. Seattle.000 square feet of retail space. a regional natural food co-operative with 7 stores. The City of Portland helped to finance underground parking for the project. and 4 bus routes provide access to the store. Zupan’s Market anchors the retail portion of the mixed-use and mixed-income retail/residential Belmont Dairy Project on Portland.smaller than those mentioned before. this mixed-use development. Public-private partnerships to encourage grocery stores within attractive mixed-use developments might be an important strategy to consider both downtown and in Madison’s neighborhoods. Draft . Importantly. a Safeway Foods has opened within a similar project downtown.Livable Neighborhoods: Grocery Stores Within Mixed-Use Developments To fit into redeveloping urban neighborhoods without needing swaths of surface parking. many food retailers are finding success by locating in mixed-use developments in city centers or other areas surrounded by medium-to-high density residential use. Following are four examples of such stores in the Pacific Northwest ranging in size from 15. Portland.000 square foot Whole Foods Market utilizes two floors below office spaces within a mixed-use redevelopment project. bike. rail.may be a more appropriate prototype for some of Madison’s neighborhoods beyond downtown. and a second level shared parking garage.
the City of Madison can indirectly support the first two goals. Madison’s growing cultural diversity demands increased access to appropriate and familiar foods. According to a member of the Co-op’s Board. Small entrepreneurial grocers may be better able to serve the specific food needs of their neighbors. Almost by nature. as strips of small businesses line up alongside grocery stores in suburban strip malls across the country.Food-related Entrepreneurial Opportunities By encouraging entrepreneurial efforts related to food retail and food distribution.) A local neighborhood example of this tendency was shown when the Regent St. entrepreneurial businesses begin on a small scale and are thus able to fit in seamlessly within existing neighborhoods and provide diverse food purchasing options for residents across the city. Finally. Madison’s Locally Owned Food Retailers * To be completed with input from Neighborhood Grocery Store Advisory Group* Draft . (This trend is certainly recognized and replicated beyond urban neighborhoods. They can provide important entry-level or management-level job opportunities accessible by people of a wide variety of ages and backgrounds. grocery stores typically serve as important community spaces and “anchor businesses” to help to catalyze further economic development in neighborhoods. businesses adjacent to the grocery suffered significantly during those months. Co-op briefly closed its doors in 1998. and were quite supportive of the reopening of the Co-op.5/14/04 13 . Small and medium-sized stores provide important opportunities for entry-level workers and entrepreneurial small business owners within their own neighborhoods. and respond quickly to changing demands.
shoppers spend an average of 47 minutes per trip inside the grocery store. Food Retailing Trends: Consolidation & Standardization Operating with razor-thin profit margins.000 square feet (Pothukuchi. and convenience stores) actually decreased from 228 to 209. process. and refrigerate the vast majority of foods. typical supermarkets are seeing increased competition from warehouse stores. Dane County. only 9 food retail establishments in the county employed over 50 people. 1977-2001 # Est. and 60% make ”fill-in” trips for less than 10 items on a weekly basis (Supermarket Guru. In order to survive as a business.people in the U. This is certainly in line with nationwide trends of consolidation in the food retail sector. food retailing has quickly become more and more consolidated over the past few decades. Draft . while in 2001. evidence suggests that consumers will take more time to seek out value (which could mean lower prices or higher quality). Further. and stores are super-sized at a national average of 54. stocking their shelves with a wide variety of foods and a combination of other products to fulfill consumer food needs in one trip. 2004). First.000 Residents. store.S. Supported by tremendous federal subsidies for oil. However. water.Overview of food retail industry trends Trends in Consumer Purchasing Habits Consumer habits simultaneously depend on and dictate decisions by food retailers. transport. natural food stores. Madison area food retail history Data obtained for Dane County shows that between 1977 and 2001. is WalMart. 2002). small grocers. package. Without even realizing it. are accustomed to the option of convenient one-stop shopping at supermarkets for a weekly stock-up. the presence of Wal-Mart Supercenters puts extreme pressure on food retailers of all sizes to either find niche markets or reduce labor costs and prices in order to remain in business. most consumers in the U. The graph below shows this trend in relation to the County population. which only began its food retail super-centers in the mid-1990’s. where most have access to a wide variety of food and non-food household items. 30 such establishments existed. per 10. the average shopper shops at 2. the number of establishments defined as food retailers (including supermarkets. According to a 2002 survey. though it tells us very little about where stores are located with respect to city residents. 2002).S. citizens pay far less for food compared to income levels than consumers elsewhere. and others. food retailers feel the pressure to get big. Though not yet present in the Madison area.S. expect cheap food. specialty food stores.2 stores each week for food (Supermarket Guru.5/14/04 14 .000 Residents 8 7 6 5 4 3 2 1 0 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 Source: US Economic Census County Business Patterns A closer look at the data shows that area food retailers have become larger over time. many of us pay only a small portion of the true cost to produce. It should come as no surprise that the largest food retailer in the U. Instead of relying solely on a particular supermarket.S. Thus. A handful of corporations now operate the vast majority of the food retail market. Food Retail Establishments per 10. In 1977. U. and large-scale agricultural production.
as well as a growing number of restaurants and grocery stores. As depicted in the photo at right. and the University. government buildings. and truckloads of food may not be perceived as appropriate within the existing neighborhood framework. and non-profit organizations initiatives. Thus. and meaningful employment opportunities related to product development. equipment. restaurants. and institutions such as public schools. such a facility could greatly increase market opportunities for existing and new local farmers while providing a smaller scale food distribution network to cater to area grocery stores. It could catalyze an increased flow of nutritious foods to Madison eaters while increasing the profitability and diversity of area farms. (For more insight on food retailing and local foods. increasing competition to an even greater extent. increasing competition. such as Whole Foods. but also the implications of food distribution systems on the success of stores themselves. small.To increase shopping convenience. Thus. nutritious. shelf patterns. food retailers have standardized store layouts. where large lot sizes may not be available. University groups. permanent space for an indoor winter farmers’ market. more and more food items are appearing on shelves at pharmacies and department stores. yet at the same time. see Guptill & Wilkins. capacity for small-scale food processing. the vast majority of institutional food service establishments still serve fresh produce and other foods originating on farms across the country or beyond the U. a commercial kitchen. Importantly. food retailers have diversified their product lines to include more nonfood items. and pricing for food retail businesses. Analogous to the trend in consolidation. and often must purchase and sell things at higher rates than corporate chains. Ideally. when independently-owned stores cannot “access” food distribution systems. and product offerings to make the distribution and stocking of products more efficient. food retail chains with sufficient capital. etc. and locally produced foods more widely available? Envisioned by area farmers. the feasibility for a “CAFF” is currently being studied.5/14/04 15 . location. Central Agriculture and Food Facility (“CAFF”): missing piece of the local food puzzle? In a city where locally produced food is visible in vibrant farmers’ markets. food retailers often insist on a very specific store size and parking lot size in order to locate in a given area. it could provide a new food distribution mechanism for area grocery stores. 2002. and distribution. the issue of access to grocery stores by people is paralleled at the next level. and office space for area non-profit organizations. Has the time come to make fresh. often own and control their own regional shipping and distribution systems to cut down on profit loss. hospitals. On the other hand. This presents significant problems for developed urban neighborhoods. receiving docks. Not only is it important to consider the neighborhood effects of food distribution (early morning trucks. and consequently may have less flexibility in the location and size of stores that “fit” within their established distribution system. marketing. the project has gained significant attention from City staff and others who recognize it as a missing piece of the local food puzzle. The scale of food distribution networks is a critical part of the decision-making process regarding size. Woodman’s has a similar advantage in that they incorporate warehouses into their stores for increased storage space.) Artwork by Mark Harmon Draft . independently-operated stores dealing with lower volumes of product experience difficulty tapping into the mainstream food distribution system.). Ideas for the bricks and mortar facility include storage space for locally produced foods.S. Though in very early stages. Food Distribution Closely tied to the food retail industry is the entire food distribution system on which retailers depend to ensure a consistent flow of products to keep shelves full.
of Housing & Community Development. Further research may be necessary to find models relevant to Madison. Of course. entrepreneurs. as most residents have automobiles or access to public transportation lines. The following examples provide only a glimpse at how peer cities have been involved in similar efforts. St. the “gap” in grocery store accessibility between lowincome and other communities has persisted over time. A 2002 study comparing the number of supermarkets in various zip codes found that in areas where only 10-20% of the households earn less than the $35.5/14/04 16 . Sacramento. TX and Rochester. Des Moines. Michigan Economic Development Corporation reported that the city tried to encourage neighborhood grocery stores in 1998 by paying for an economic analysis. tax abatements. • Lansing. 2002). and in some cases. MI A Project Coordinator with the Lansing. proactive policy measures to specifically encourage neighborhood grocery stores are rare. Paul. • • Peer Cities Review of on-line documents and/or telephone calls to planning and community development departments in a handful of Madison’s peer cities1 revealed that while grocery stores have been recognized as unique and valuable pieces of the neighborhood fabric. MI. Currently. Incentives included proposed sites. Lansing. but nothing resulted from it. 2001). environmental remediation. and yet even if such examples are difficult to find.000/yr. and a reduction of permitting fees (Ferguson and Abell.Efforts by Other Cities to Attract Grocery Stores Large Cities Larger cities across the U. The city has not yet taken a proactive stance towards grocery stores. Lincoln. but recommendations within a report prepared by the Urban and Environmental Policy Institute call for the following: a City-wide ordinance on supermarket access in low-income communities. IA.S. city assistance with land identification. NY After little success encouraging leading area food retailers to add new stores. organized citizens. MD A partnership between the Baltimore Dept. MN Draft . but the strong tides of the food retail industry are hard to turn. 1998). there are over 3 times as many supermarkets as in those where 60-70% of the households earn less than $35. OR. Examples of city government actions to attract and preserve food retailers in underserved areas are as follows: • Dallas. TX. and other incentives to encourage grocery stores (Shaffer. these city governments compiled incentives to encourage outside chains to locate not one. market feasibility studies. the way issues are framed and addressed across cities varies tremendously. the Baltimore Development Corporation. the State of Maryland. 1 i.000/yr. CA. but a package of five stores within each city. Baltimore. and Save-A-Lot Foods brought a Save-A-Lot store to West Baltimore to fulfill a need for a supermarket and jobs for residents. tax breaks. have experienced gaps in food retailing that especially affect low income and inner city neighborhoods. Austin. Los Angeles In Los Angeles County. Portland. Madison could certainly become a leader in taking proactive policy measures to support a diversity of food purchasing options. NE. A press release in June 2001 stated that 6 more locations in Baltimore were “on the drawing board” (Brown.e. Coordinated responses from local community development corporations. access to a variety of grocery stores in Lansing is sufficient. city governments have made positive changes in many cities.
yet no formal plans. worked with the Austin Transit Authority to create more frequent circulation routes between public housing developments. Portland. The city is currently involved in a unique project to redevelop a contaminated industrial site. Hispanic. 2003). Paul.000 square foot store in the city. of Business & Community Services. a Food Policy Council created in the Spring of 2002 began to take a comprehensive look at food issues as they relate to hunger. Austin.not excess. of Health and Dept.nearly an impossible request in a built-out city such as St. With staffing resources from the City of Portland’s Office of Sustainable Development. low-income neighborhoods.5/14/04 17 . (whether the need be for a full service grocery store. policies.space for parking. Paul. and currently stocks culturally appropriate foods for ethnically diverse area residents. the Austin Food Policy Council. and supporting local agriculture. the policies suggested by the Food Policy Council make linkages between regional agricultural production and ensuring access to food for area residents (City of Portland Office of Sustainable Development. Finally. Multnomah County’s Dept. or incentives are in place with regard to food retail in the city. When possible. the current owner took over when a national chain went out of business. For instance. no longer in existence. one of 6 major goals expressed was to develop community-based solutions for areas with inadequate food access. entrepreneurial Asian-owned food stores (10. OR The City of Portland is one exception to the otherwise reactive stance most city governments take with regard to grocery stores and other food-related issues. a community garden. In its October 2003 report. and plans include a medium-sized Super Saver store with adequate. MN In St. and supermarkets. • • Draft . Paul. and Irish descent. diet-related illness. planners are involved in site-by site negotiations and plans involving groceries. including those of Asian. TX With a focus on getting people to grocery stores as an interim solution to a lack of grocery stores in low-income neighborhoods. Minnesota. Perceived needs for parking have presented significant difficulties. Cub Foods required 5 acres of parking and was unwilling to negotiate shared parking arrangements.• St. in order to locate a 60.000-15. and play an important role in the St. or a farmers’ market). In a unique East side store.000 square feet) have “boomed” recently. Paul food retail landscape.
Each must work within the prevailing global trends and maintain a dedicated customer base to exist. The corporation then closed the sites on East Washington Avenue and North Sherman Avenue (see pp. Copps Food Stores currently have four locations in Madison with 267 full-time and 341 part-time employees. Located on the east and west sides on very large parcels of land (total lot sizes are 13. and specialties among grocers that can and will continue to thrive in Madison. & 725 S. 35% of whom are minorities. while the fourth is smaller at just over 25. 3817 Milwaukee St. Following are five examples chosen simply to illustrate this diversity. Copps Food Stores One of the major food retail chains with stores in Madison.2 acres. Woodman’s has the capacity to purchase extremely large quantities of food and other products from a variety of distributors and offer customers a variety of affordable products. Woodman’s is an important employer in Madison.00/hr plus health insurance. recently purchased three Kohls Food Emporiums in Madison as they went out of business. With large stores on Madison’s East and West sides. Gammon Rd.000 square feet of combined space between the two stores.000 square feet (see right).000 and 70. Woodman’s caters to customers across and beyond Dane County who stock up on products for the week. It is important to appreciate the various sizes. Large Supermarkets: Woodman’s Food Stores.5/14/04 18 . with significant opportunities for advancement within the company and access to stock options after three years. earn $14/hr on average. WI-based Woodman’s is an employee-owned cooperative with nearly 410. Copps offers a wide array of food choices in their mediumto-large stores. ownership structures. With its own on-site warehouses. and consumer desires for convenient one-stop shopping. a substantial diversity of food retail businesses remains successful in Madison. Woodman’s is a regional store and does not consider neighborhood grocery stores as competition. Aside from offering a wide variety of affordable foods.6 and 17.75-$9. which owns and operates Copps. Its 500600 employees. Three of the sites have between 50. Janesville. Rather. Roundy’s Corporation. large-scale food distribution.The Diversity of Existing Food Retailers in Madison Despite the prevailing currents of corporate consolidation. respectively). All employees begin earning $8. or even the month. 22-24. serving different consumer needs and providing access to a variety of food and employment opportunities throughout the city.) Draft .000 square feet of retail space.
prepared foods. costs for rent. though the Board wishes it could provide a stronger compensation package. In fact. However. the small store struggles financially due to competition from larger supermarkets and difficulty accessing food distribution networks. high quality meats. According to a Co-op Board Member. Jenifer Street Market offers a wide variety of both organic and conventional products. as well as recent loans from MG&E and individual members to replace old equipment with energy efficient appliances. and staffing needs are covered. as well as in-house custom butchering. Since it operates with such tight profit margin. including fresh produce. the Co-op has remained a vital tenant in this near West neighborhood.2 M in sales in 2003. In a near-East side neighborhood. and household products. is very thankful for the supportive relationships it has cultivated with other food cooperatives in Madison. the Regent Market Co-op has been a neighborhood grocery store since 1924. The tiny store provides an impressive array of food choices. with the exception of a few months in 1998. Support for the market is working. it will surely continue.000 square feet of retail space on a half-acre parcel of land owned by the adjacent Schoep’s Ice Creamery. even against major trends in food retailing. the Co-op provides great employment opportunities for area teens and others. and they identify the store as “theirs”. Market is the only full service grocery store in Madison not located on a high-traffic street. Co-op could use financial assistance for capital investments such as facade improvement and building purchase. McKenzie feels that people support the business for several reasons. Even with a relatively low rent. Despite its small size.to residents on the near West side of Madison. With only approximately 1. alcoholic beverages. Regent St.organic and conventional foods. should the current owner ever decide to sell the property.400 square feet of space. As long as neighbors who value the ability to purchase foods nearby commit to keeping the store viable. it has been owned and operated by Steve McKenzie since 1979. they do not like Big Box retailers. as well as 1000 member-owners and volunteers. Jenifer St.5/14/04 19 . building maintenance. the Co-op also provides food delivery service to neighborhood residents that are unable to walk to the store. the store had approximately $1. With a mission to serve neighborhood needs. the Regent St. Regent Street Food Cooperative: 2136 Regent St. 2038 Jenifer St. Draft .Small Groceries: Jenifer Street Market. With 20 employees (5 full-time). With a customer base dedicated to fulfilling their weekly (even daily) shopping needs at the Market. As one of Madison’s key supermarkets over fifty years ago. it is close to home. with involvement and oversight from its board of directors. the independentlyowned Jenifer Street Market comprises just under 10. A prime example of a very small neighborhood grocery store.
5/14/04 20 . With an impressive array of Asian and Hispanic foods. 2328 S.Ethnic Food Stores: Yue Wah Oriental Foods. and grain imaginable within its 6. Mexican. space. Yue Wah Oriental Foods in the Villager Mall on South Park Street includes a produce counter. Madison is the home of a wide variety of ethnic specialty food stores featuring. and Asian foods. Its location in Villager Mall is advantageous to area shoppers. and a few other small retail stores. Italian. paste. and nearly every spice. Park St. Draft . seafood. a Madison public library.000 square ft. as it is adjacent to many other neighborhood amenities such as Harrambee health and family center.
near West side. near East side. and customer base. Madison’s weekly farmers’ markets offer an array of locally produced nutritious foods while in season. and South side. size.Other Food Purchasing Opportunities Of course. and culturally appropriate food choices. Madison residents have many other opportunities to purchase food besides those described above which were included simply to illustrate the diversity of existing retailers. affordable. Draft . Ideally. two other member owned food cooperatives. Among the variety of remaining stores (some depicted in photos at right) are Whole Foods Market on the near West side. and a plethora of gas stations and pharmacies doubling as convenience/food stores. and faces particular market circumstances due to its location. In addition. With locations on the Capitol Square. Each retailer has a unique ownership and employment structure.5/14/04 21 . The bottom line is that a diversity of food retailers is successfully co-existing in Madison. product offerings. a wide variety of ethnic and specialty food stores. this diversity will be maintained and enhanced so that residents of all income levels in neighborhoods across the City will have maximum opportunities to choose among various transportation options and ultimately have access to nutritious. the very successful farmers’ markets in Madison provide ample opportunity for city residents to purchase foods at affordable prices directly from area producers.
commercial property. a parking facility.000 square ft. and especially the elderly residents living in the adjacent subsidized housing development. the City transferred 2. One important component of the Triangle area plan was the requirement that a grocery store remain in the neighborhood. Asian Midway Foods is part of a larger mixed use project in the “Triangle area”. 200 elderly housing units. As the largest full-service grocery store in Madison’s downtown. opportunities for the City to reaffirm its commitment to grocery stores may become more evident. Draft .7 M development. the 7. and is able to continue to provide an affordable lease to the owners. market rate housing. and the store space. including townhouse apartments. 111 N. The store serves not only neighborhood clientele. and it then became Asian Midway Foods. Considering this history. Asian Midway owners Mr. All were constructed in the late 1970’s when urban redevelopment swept the country and drastically changed the Triangle area. Land Acquisition: Capitol Centre Foods. Land Acquisition: Asian Midway Foods. subsequent examples demonstrate the public assistance provided to food retailers in the past. In 1981. ft commercial space for the supermarket in a $20. high-rise apartments. In July 1981. The CDA still owns the land.65 acres of the property to the CDA and on to a private developer. The first grocer to lease the space from the City of Madison’s Community Development Authority (CDA) stocked the store with a traditional line of products.000 sq.5/14/04 22 . Capitol City Foods is easily accessible to UWstudents. As one of several ethnic specialty stores in Madison. Park St. and left in the early 1980’s due to lack of success. & Mrs. similar to other groceries.Historical city intervention with food retail Though public intervention in the private food retail sector may not be recognized.5M federal grant was obtained by the City and awarded to Capitol Centre Housing Partners as a 42-year loan to assist with project expenses. and the Madison Senior Center. who agreed to include 150 market rate residential units. downtown residents. Capitol Centre Housing Partners. the site was part of a 7. and the 25. Peter Chow agreed to lease the space from the City of Madison in 1983. Before the store existed.3 acre publicly owned site slated by the city for mixed-use development including housing for the elderly. but also provides a large Asian specialty store to serve the Madison region. Broom St. 301 S. a $2. which stocks a portion of traditional grocery items on top of Asian specialty foods.
000 square feet (9.000 member-owners and over 115 employees in 2004. Further.500 square feet of retail space)2 With over 10.Loan for Expansion: Willy Street Co-op. The loan.html Draft . the co-op supports the area agricultural economy by featuring products from small local farmers when possible and providing organizational oversight for a weekly farmers’ market on the near East side of Madison.willystreet. assisted in relocating the business to its current location. the Willy St.. Finally. but acts as an important anchor amidst other small businesses in the east-side neighborhood. the Willy Street Co-op is not only one of the most successful food cooperatives in the U. Co-op staff members have provided significant time and technical assistance to other area food cooperatives.000 loan from Madison Development Corporation (MDC). 1221 Williamson St.coop/About/history. which was paid back by 2002.S. In May of 1998.5/14/04 23 . 2 http://www. which is capitalized by the City of Madison’s Community Development Block Grant Program. The co-op donates a portion of its profits to the community. This allowed for significant expansion to its current size of 20. Co-op received a $200. the fourth location the co-op has occupied along Williamson St. and offers a living wage and healthcare benefits to employees.
000 and 25. The exact size and particular type of store remain undecided. Forecasted for construction from 2005-2008. Ideally.000 square feet to serve as the retail anchor for the site. of Planning and Development. pedestrian-friendly nature of the proposed development will likely reduce the need for surface parking. One advantage in the recruitment of a grocer for Union Corners is that the highdensity. this remains unknown. now owned by developer McGrath Associates of Madison. Citizen input on the store has varied. and has already been contacted by a handful of businesses (including the Willy St.000 square feet of commercial space. yet with a small enough footprint to allow for ambitious mixed-use design on the property as a whole.000 feet of retail space. All indications are that the district will gain City staff approval as a TIF district. McGrath Associates purchased the Kohl’s site along with the large adjacent Rayovac site and others. McGrath plans to cover much of the surface parking within the development with a green roof. while also encouraging the City to create a Redevelopment District and Tax Incremental Financing (TIF) District to facilitate project implementation. Some strongly support the idea of a grocery cooperative. though the store will likely have between 10. Todd McGrath claims that the need for a grocery is one issue that has reached consensus among residents. and are one year into the planning process for the 12 acre Union Corners Redevelopment Project. and others to determine vehicular access to the site. while others feel it may not be the right match.. but also by those driving along East Washington Avenue to and from downtown. Residents’ strong desire and need for a grocery store has been heard from the beginning of a series of neighborhood meetings held to discuss the project (City of Madison Dept. Kohl’s building will be removed. the mixed-use redevelopment may include as many as 300-400 residential units and approximately 100. which will greatly reduce the storm water run-off typically associated with parking lots.5/14/04 24 . McGrath anticipates no difficulties in recruiting a grocer. McGrath Associates is currently working with City of Madison planners and traffic engineers. is destined for replacement by a new full service grocery store within the next few years.Updates on Recently Closed Sites Kohl’s Food Emporium: 2525 East Washington Avenue The vacant Kohl’s site at 2525 East Washington Ave. and much of the surface parking on and around the site will be replaced with mixed income housing and mixed-use development. Draft . He envisions that the grocery would be supported primarily by the residents in the new residential development and adjacent neighborhoods. McGrath would like to see a store no smaller than 15. That said. ft. but as of spring 2004. The existing 23. Coop) interested in locating a new store within the site. 2004).700 sq.
a store can be stocked with a wide variety of products to serve area food needs.Kohl’s Food Emporium. In order to renovate Sherman Plaza in 2000.000 square foot space with a newly renovated facade stands vacant and surrounded by underutilized surface parking.000. 2003. a store cannot simply close or move away at the whim of market forces.000 USDA grant to Draft . The high occupancy cost helped the owner secure a large loan to renovate the shopping center. city staff. 2004 meeting attended by approximately 100 people. resulting in more pledges. At a March 21st. residents coming together in support of a new grocery store do not face a positive market situation with regard to recruiting a new occupant. Sherman Plaza: 2921 N. as this shopping center remains the “downtown of the Northside” Pressure from residents. Grocery Co-op. A crucial point made at the meeting was that in the case of a member-owned cooperative. a site of at least 10. area residents have formed the store on July 29. a partnership of interested groups has applied for a $95.5/14/04 25 . NPC member Susan Hill talks with Northside Community Co-op in order to create a Madison Mayor Dave Cieslewicz about his just-concluded meeting with Roundy's Inc. but has proved to be a major hurdle in attracting another grocery store for the site. and Northside residents rally to bring back a community grocery many volunteer hours. loans and volunteer hours) has been made in the April/May issue of the Northside News. For now. In addition. CEO Robert Mariano has verbally expressed his support for allowing another grocer to take over the remainder of the lease. its owners signed a 20-year lease with Kohl’s (which is now owned by Roundy’s) with what has proved to be a very high rent. high occupancy in the remaining space at Sherman Plaza attracts good business. A plea for support (memberships. However. and the Mayor has not yet produced a solution to this complicated problem. the Williamson St. and citizens are taking the matter into their own hands. With technical assistance from the Northside Planning Council (NPC). When governed by member-owners. The cooperative is not tied to a particular location at this time. CEO Robert Mariano. this would require the site's owners to refinance the mortgage for the site. but once feasibility for the store is determined. the 44. the seven-member steering committee garnered support from 57 citizens intending to buy a full $200 share and/or loan money for a total pledge of $24. Approximately one year after the closure of Kohl's Food Emporium in Sherman Plaza left a food retail gap in Madison's diverse north side neighborhoods. Sherman Ave. and remain in business as long as residents continue to support it.000 square feet will likely be sought. in contrast to the way Roundy’s decisions and the situation with the vacant site have affected the neighborhood. as residents food needs are underserved. member-owned grocery cooperative to fulfill Photo by Abha Thakkar/ Northside News neighborhood food needs. Though Roundy's Inc.
they hope to undertake a door-to-door survey to determine actual shopping patterns and food demands of area residents to deepen the market analysis. NPC members and volunteers are undertaking a "food basket study" to determine current food access opportunities and purchasing power on the north side at a finer level of detail than can be obtained by publicly available data 3. 2001. 2002).help the Northside Community Co-op conduct a feasibility study and market analysis.5/14/04 26 . see Pawasarat and Quinn. Subsequently. 3 Draft . While supporting the effort of those involved in the Northside Community Co-op. outdoor farmers’ market and a foodbuying club. and Stewart and Morris. Other innovative ideas for the space include a seasonal. locate a site and needed capital and retain operations management. create a business plan. For information on the shortcomings of market studies in underserved areas. the Northside Planning Council continues its effort to attract a food retailer or a mix of food retailers to move in to the vacant space at Sherman Plaza and fulfill the more general neighborhood demand for access to a full-service grocery store.
the partnership is working to set up meetings with the neighbors and businesses in the area to discuss their plans and to respond to questions or concerns that they might have. including the MSGC. and they want one that will stay for the long term. Recent Developments In the first quarter of 2004. a new partnership entered into an agreement with High Pointe Properties to purchase the site from them.7-acre site in the midst of a high end retail and residential neighborhood is ripe for redevelopment. the 0. With the high cost of the site and the thin profit margins characteristic of food retailers. Sold to Ft. In one of Madison’s near West. Atkinson. The Madison-based partnership has held discussions with a wide variety of food retailers. well-off neighborhoods. The bottom line is that area citizens want a small to medium-sized grocery store (approximately 10. it seems as though the best chance for a grocer to succeed on the site may be as a part of a mixed-use development with either underground or rooftop parking provided. Though the site and neighborhood context are quite different than those at East Washington Avenue and Sherman Plaza. The costs of providing this kind of infrastructure are substantial.000 square ft. off-street parking. but it may be perceived to lack ample parking.Ken Kopps: 1864 Monroe St. Draft . From the perspective of any food retail business. has expressed interest in leasing the space for a grocery store for over 3 years. and the development of housing as part of the project.5 M in 2001. though their discussions with the property owner have not indicated that plans for the site include a co-op. one condition is similar.5/14/04 27 . the Monroe Street Grocery Cooperative (MSGC) is continuing its efforts to design an economically feasible grocery store with this particular site in mind. Preliminary discussions between the City and the partnership have focused on the grocery store prospects. two leaders of the MSGC effort expressed support for another independently owned grocery store moving in to do business in the neighborhood. Since few or no other appropriate sites exist in the neighborhood. Input from citizens and City leaders is important.) to serve their needs. this former grocery store site has been vacant since Ken Kopps food store closed in 2001. which has 500 paid members and 200 pledged members. and the building itself requires significant improvement. to evaluate the feasibility of a grocery store returning to the site. but the right public/private financing partnership could prove effective to ensure that a grocery store returns to the Monroe Street Neighborhood. but can have only limited influence over the timing and decisions involving a privately held parcel of land. Recently named as a Redevelopment District by the City of Madison. The Monroe Street Grocery Cooperative. They have also briefed area Alders about their concept plans for the site. While no formal plans have been submitted to the City. expectations are that something will soon occur at the site. the location of the site is attractive. Aside from their primary goal of obtaining a site for the Cooperative.based High Pointe Properties for $1.
Therefore. as long as a particular parcel is owned by a private entity. the City could utilize eminent domain and condemn a parcel of land for the public good. what follows is a policy framework within which specific language and/or programs could be added to explicitly include the importance of preserving and maintaining neighborhood grocery stores in the City of Madison. 2) Encourage the development of small and medium sized grocery stores in developing and re-developing neighborhoods to provide food-purchasing options within proximity to residents in neighborhoods across the City of Madison. and prepare it for redevelopment with the hope of attracting a grocery store. There are a few places within the existing policy and planning framework worthy of recognizing. the City as an entity faces significant limitations on what can be done to ensure that a particular use (a grocery store) occurs on site. it is difficult to pull apart and suggest policy options to work toward them separately. At the most drastic level. Draft . and perhaps amending. To do this is extremely rare. a grocer would not come about automatically. rather than breaking down each goal into specific objectives and recommendations. however. and culturally appropriate food choices for all Madison residents. affordable. 4) Support Madison-owned grocery stores to the extent possible. and would require an unlikely set of circumstances. The City has and will continue to support citizen-led initiatives and aid in negotiations to promote grocery stores on a site-by-site basis. Since the four goals are so closely interrelated. Further. significant input from the Neighborhood Grocery Store Committee and City of Madison staff in order to shape specific policies and determine specific “triggers” for action if necessary.Goals and Policy Options for the City of Madison As demonstrated in the updates on recently closed grocery store sites.5/14/04 28 . 3) Encourage food related entrepreneurial & employment opportunities that support one or both of the above goals. Essentially. General Goals 1) Retain a diversity of food buying options and preserve maximum access to nutritious. followed by a framework of realistic opportunities to work towards those goals within municipal policies and programs. Recommendations for three general goals are outlined below. Even then. in order for the City of Madison to take proactive measures to retain existing food retail businesses and encourage neighborhood grocery stores to locate in developing and re-developing neighborhoods. acquire it. many situations regarding food retail operate in the private realm at the whim of market pressures that the City of Madison has a limited capacity to alter.
no specific guidelines regarding grocery stores currently exist. perceived inadequacies in market demand and space for parking are often limiting factors in the business decisions of food retailers. Through its Business Loan Program. grocery stores are currently a permitted use. mixed-use developments may be better able to work out shared parking arrangements. When possible. specific language should be included in the Comprehensive Plan to identify grocery stores as important considerations for developing and redeveloping neighborhoods. Draft . The land use and economic issues linked to grocery stores are relevant in both developed and undeveloped areas of the city. From a developer’s perspective. Rather than specific changes to zoning policy to accommodate grocery stores. the Madison Development Corporation (MDC) is able to obtain CDBG funds and provide loans for businesses that are creating new jobs in the City of Madison.are allowed and encouraged in commercial zones. These are more related to market factors than to specific regulatory barriers Importantly. and perhaps even include underground parking to minimize the need for large surface lots. Financial Assistance Loans: There are two city financial resources in which existing loan programs could explicitly support grocery stores: The Community Development Block Grant (CDBG) program and Capital Revolving Funds. While grocery stores are recognized as key components of healthy neighborhoods in some existing plans. Where possible. Though it is certainly not specific to food retailers. Land Use Regulation In all existing commercial zoning districts in Madison. and could certainly be considered as a future source of assistance. the following two recommendations may help to support neighborhood grocery stores in existing and developing neighborhoods: During the review and negotiation process for Planned Unit Developments and mixed-use development proposals within commercial zones. planning staff and property owners should initiate Shared Parking negotiations between potential grocers and nearby businesses in order to minimize the need for new surface parking. MDC has assisted a handful of other food retailers in the past. and are being planned for in undeveloped areas. and are limited to 50.5/14/04 29 . As citizen groups and neighborhood associations meet to contribute to the planning process. mixed-use developments – which could include grocery stores on ground floors.000 square feet unless a conditional use is provided. since the inclusion of other uses (second and third floor office or residential) could significantly offset the low rents food retailers can afford. While grocery stores are widely allowed within the zoning code. possibilities for including food retail should be considered and analyzed (see page 4 for examples). Further. such developments may render grocery stores financially feasible in the long run. grocery stores should be explicitly recognized as key components of healthy and livable neighborhoods.Comprehensive Plan Process Madison’s comprehensive plan process is a crucial and very current place to include support for existing and new grocery stores.
According to Wisconsin legislation and City of Madison policies. By itself the need for a grocery store will not likely be a catalyst for the formation of a new TIF district. Through TIF policies and procedures. a total of $20. Neighborhood Planning Grants: Currently.5/14/04 30 . CDBG and the Capital Revolving Loan Program could set-aside a percentage of their funds each year for food retail businesses. where a grocery store would be appropriate. applicants from food retail businesses providing entrepreneurial and employment opportunities are identified and supported in Madison neighborhoods. Specifically. where a grocery store (alone or within a mixed-use development) would be appropriate. In 2004. where cursory market studies have fallen short in illustrating the true need for grocery stores. to ensure that among all small businesses. Tax Increment Financing (TIF): Put simply. neighborhood associations should be able to gain financial support for administering market surveys to aid in recruitment of grocery stores appropriate to serve neighborhood needs. funds could be dedicated for equipment upgrades and facade improvements for existing grocery stores. and its increased value is returned to the general city tax base. City staff could perform outreach to encourage neighborhood groups to apply for grants for this purpose. financial assistance for businesses locating in existing TIF Districts is a strong possibility. TIF is an economic development tool that allows municipalities to invest in public improvements. Within existing TIF districts. As neighborhood groups have taken the lead on organizing in support of grocery stores on Madison’s North and West sides.000 will be divided among various applicants across the city. Further. there are a few ways for the City of Madison to support grocery stores. considerations should be made regarding grocery store access and the need in and surrounding the proposed district. but lack of adequate parking prevents a major barrier. attract private investment in an approved district. citizens on the North side are sponsoring market basket analyses and door-to-door surveys to determine true food purchasing options and needs in the area. Importantly. specifically. and utilize property tax from the increased tax base within that district (the tax increment) to pay back the loans needed for the initial public investment. Within existing TIF districts. recruitment of and financial assistance for grocery stores should be a priority. TIF should primarily be used to encourage the redevelopment of “blighted” urban areas.While essentially operating in the same way. the financial feasibility of providing support for parking infrastructure with tax increment should be assessed. However. Draft . Neighborhood Planning Grants are awarded to neighborhood and business associations to assist with strategic planning for the future. Through Neighborhood Planning Grant programs. When proposed TIF districts are reviewed. this seems an appropriate way in which they could gain financial assistance from the city. When initial public costs are recovered. Within the Capital Revolving Loan Program. TIF should be limited to those areas where private investment would not otherwise occur without initial public expenditures. the district is terminated.
which requires a period of 90 days and a public hearing. it is possible for the City to invoke its authority to condemn. procedures and findings can be shared and utilized as educational tools for citizens on the City of Madison website. As market analyses for food retail are completed. or infrastructure improvements before releasing a Request for Proposals (RFP) for a specific type of development. which focus primarily on redeveloping areas. the City or CDA could certainly specify that a grocery store of a particular size must be included in a proposed development. market studies are often completed to assist the private sector in making business location decisions.Real Estate Strategy If a grocery store is much needed in a particular neighborhood. yet simply not being provided by the market. Within existing Redevelopment Districts. but demonstrates need for financial assistance to do so.a much less expensive scenario. it can take several months to relocate existing tenants (if applicable). purchase. City staff may assess the need for neighborhood grocery stores and the suitability of blighted parcels. municipal bonds and or condemnation should be considered as methods by which the City can support improvements on the blighted sites to attract grocery stores. The Department of Planning and Development should assess the need for upgrades of market analysis software to more efficiently and accurately capture neighborhood food needs. Preliminary Planning Grants are the major source of funds for these studies. If this were to occur. but also to bond for necessary improvements. the next step would be for the City to complete any necessary demolition. and the suitability of parcels. within an RFP. Thus. Market Analysis Within the City of Madison Department of Planning and Development. assessments of blight in the area may be undertaken to determine whether or not the creation of a Redevelopment District is an appropriate way to initiate City involvement. After a Redevelopment District is created. This particular scenario is rare because of the great expense incurred to the City. or to recruit particular types of businesses. Where severe need for a grocery store is shown outside of existing redevelopment districts. if a current private landowner wishes to make necessary improvements to locate a grocery store within a Redevelopment District. The creation of a Redevelopment District not only authorizes the City to condemn land. and resell land at a belowmarket rate for the specified development of a grocery store. Importantly. The most likely way for condemnation to occur to make way for a neighborhood grocery store would be in conjunction with the elimination of blight. Draft .5/14/04 31 . before the City or the Community Development Authority (CDA) can condemn and acquire control of the property. Before condemnation can occur for this purpose. the City may issue bonds to assist with improvements rather than condemn the property. The City has broad discretion for condemning properties in order to eliminate blight or to serve a public purpose. Depending on the level of need for a grocery. environmental remediation. discussions could be initiated with landowners and developers to determine the feasibility of locating a grocer in the district. yet procedures for condemnation are important to clarify. If both inadequate food retail access and suitable sites are discovered. a particular parcel or group of parcels must be declared a Redevelopment District. As an item within the capital budget.
Successful Food Policy Councils with City (and often County) support have been created in many North American cities. compile information on State and Federal support programs supporting energy efficiency. a Food Policy Council could be created to better coordinate and prioritize proactive measures to address the following issues. Importantly. energy efficiency within the grocery store industry can have a significant impact on profit margins. and Children (WIC) program or food stamp recipients 3) Promote Energy Conservation as an Opportunity for Food Retailers to Cut Costs With substantial energy needs for lighting and refrigeration. Nutrition & Health. the concept of energy efficiency contributes to more ecologically sustainable businesses and neighborhoods. the Metro Transit “Ride Guide” already identifies grocery stores as popular destinations along bus routes. and Farmers’ Markets. and restaurants Draft . and landscapes are affected by food (Borron. each of which already receive attention from City staff in some form: Hunger Prevention. However. cities.) Pursue funding for the creation of a Food Policy Council. 2003. independent grocers profitable. Grocery Stores. and help to keep small.Other Options / Related Opportunities 1) Create a Food Policy Council Rather than considering the formation of a completely new committee requiring support from City staff. an alternative strategy might focus on providing more convenient transportation options for seniors and others without vehicle access to existing full-service grocery stores. but perhaps transportation and food could be more closely linked as a short term strategy to increase access to a variety of food choices Support a focused campaign to inform citizens of existing Metro transit options to and from grocery stores Evaluate the transportation needs of senior citizens and those without vehicles in Madison. The City’s Energy Task Force. 2003. such as participants in the Women. and expand public transportation options to grocery stores or support food delivery programs accordingly Explore opportunities to work with taxi companies to provide free or reduced rates to full-service grocery stores for those that meet a particular set of criteria. and the Neighborhood Grocery Store Advisory Group could initiate a joint research effort to document current energy use in Madison’s grocery stores. possibly as a partnership with Dane County 2) Focus on a Transportation Strategy to Increase Access to Grocery Stores This report has focused primarily on municipal land use and economic development strategies to encourage grocery stores. Portland-Multnomah Food Policy Council. foodservice institutions. Community Gardens. 4) Assist Area Food Producers and Small Grocery Stores by Supporting Local Food Distribution Provide support for the Centralized Agriculture and Food Facility (CAFF) project as a means to support area farmers and scale up the distribution of fresh and local foods to grocery stores of all sizes. Infants.5/14/04 32 . MG&E. and distribute this information to business owners. and are important to consider as ways to better understand and prioritize responses to the many ways people. Moreover.
the much needed parallel efforts undertaken by citizens. and the private sector to preserve and encourage neighborhood grocery stores in the City of Madison.though hopefully support. urban land economics. and non-profit entities to organize cooperative efforts to support the goals outlined in this report.usda. and private funding sources to leverage City support. The following list illustrates both the sheer complexity of grocery store issues. issues related to grocery stores are quite complex.cfm?fonum=1080 Draft . Programs.5/14/04 33 . many of the recommendations would require finding State. private. In addition. Federal. City of Madison Departments Department of Planning & Development • Office of Business Resources • Community Development Block Grant • Community & Economic Development Unit • Planning Office of the Mayor Madison Metro Transit Traffic Engineering Department of Public Health State of Wisconsin Agencies. entrepreneurship and job training.gov/fo/fundview. As evident in the report. non-profit organizations. and include food security and health. and more. and Possible Funding WI Department of Administration: Focus on Energy Program WI Department of Health & Family Services WI Department of Commerce: Business Incentives WI Department of Agriculture and Consumer Protection WI Housing & Economic Development Authority (WHEDA): Small Business/Agriculture Financing Federal Funding Possibilities Dept.csrees. neighborhood livability.Potential Partners/ Related Programs The preceding recommendations omit. as well as the immense potential for public. entrepreneurs. of Housing & Urban Development (HUD) Economic Development Initiative USDA Community Food Projects Grants http://www.
cwd.org REAP (Research.org Friends of the Dane County Farmers’ Market Friends of Troy Gardens University of Wisconsin Entities UW Extension Center for Cooperatives Center for Integrated Agricultural Systems Department of Urban and Regional Planning Department of Consumer Science Community & Economic Development Organizations Madison Development Corporation Commonwealth Development Wisconsin Women's Business Initiative Corporation Wisconsin Business Development Finance Corporation http://www.wbd.Area Nonprofit Organizations related to Food and Hunger Prevention Dane Cty Hunger Prevention Council http://www. and Policy) Food Group http://www.cacscw.com/communities/hpcdc/index.com/ http://www. Action.org/ Private industry leaders Draft .mdcorp.reapfoodgroup.wwbic. Education.php Community Action Coalition http://www.5/14/04 34 .madison.org/ http://www.org/ http://www.
healthy neighborhoods.5/14/04 35 . Innovative partnerships with citizen groups. nutritious foods are a vital component of healthy lifestyles. Draft . sustainable neighborhood development. Within the existing framework of land use. who must continue to recognize their many benefits and support them. and affordable food choices to all Madison residents. organized action on the part of City agencies can be an important part of a proactive effort to retain the diversity of existing food retailers and encourage the development of neighborhood grocery stores to better meet the needs of city residents. Through consumer choices and input into neighborhood and comprehensive planning processes. finances. For those without easy access to transportation. city agencies should explicitly recognize neighborhood grocery stores as a vital component of the city as a whole. private industry. and redevelopment policies. Even for those with easy access to transportation. and a healthy city. That said. changes in consumer purchasing patterns.Conclusion Grocery stores offering affordable. and food choices throughout the City. responsibility also rests on city residents. However. culturally-appropriate. and support for food-related entrepreneurship. State and Federal agencies. In order to keep grocery stores in city neighborhoods. food retailing becomes a public issue. non-profit organizations. The prevailing trends of the food retail industry are a nearly impossible tide to turn in any city without strong public private partnerships. With regard to equitable access to food choices. and transportation choices. financial assistance. the benefits of having full-service neighborhood grocery stores may be even more important. each and every citizen can be a part of the effort to retain and encourage neighborhood businesses that offer nutritious. and the University of Wisconsin are likely to significantly strengthen the effort and provide a model for other Wisconsin cities facing similar needs. the benefits of having entrepreneurial and employment opportunities and nutritious food choices within a short distance from home are wellworth supporting.
ncced. Economic Development Commentary. Accessed on-line 3/04 at: http://departments. Discussion paper prepared for the Brookings Institution Center on Urban and Metropolitan Policy. 2003. Report issued by the City of Portland Office of Sustainable Development.pdf Supermarket Guru. pp.. 2001.brook.unioncorners. Neighborhood Groceries: New access to healthy food in low-income communities. (2002). October. City of Baltimore Press Release. (2004). June. & Abell. Pawasarat. Winter. 39-51.A. Food Policy Recommendations. (2002). The Need for More Supermarkets in Philadephia: Food for every child. J. Guptill. Policy brief. Accessed on-line 4/04 at: http://www. A. Sarah. K.S. 2004. (2004). & Morris. Report prepared for the Congressional Hunger Center.htm Draft . Accessed on-line 4/04 at: http://www. Buying into the food system: Trends in food retailing in the U.baltimorecity. The urban grocery store gap.sustainableportland.’s grocery store gap. (2003). & Hecht. Special Report accessed on-line 3/04 at: http://www.edu/dybocroot/es/urban/pawasarat. 2003. & Wilkins.thefoodtrust. (2003). (2002). E. Portland-Multnomah Food Policy Council. Report prepared for the California Food Policy Advocates. Inner city grocery retail: What planners can do. The persistence of L. B. Report issued by the Occidental College Urban and Environmental Policy Institute. J. K.pdf UEPI (Urban Environmental Policy Institute at Occidental College).cfpa. May.pdf. 2002. Accessed on-line 4/04 at: http://www. (2003).com/page. July. (2003). Accessed on-line 4/04 at: http://www. Shaffer.html City of Madison Department of Planning and Development. 2001. Accessed on-line 3/04 at: http://www. C. January.uepi.oxy. 2002. Save-A-Lot foods launches new store in Baltimore’s Edmonson Village Shopping Center.org/programs/cdcRetail/UnderservedMarkets.lanefood. Accessed on-line 3/04 at: http://www.5/14/04 36 . The Food Trust. 2002.org Ferguson. Development in underserved retail markets. Progressive Planning. (2002). February. B. K. A. 1:4 pp.net/ Borron. Agriculture and Human Values. Union Corners.pdf Pothukuchi.edu/cfj Stewart. A. (1998). 2002.6-14. Brown. & Quinn. Transportation and food: The importance of access. June 5th.oxy. and implications for local foods.) Poll reveals consumers’ grocery shopping habits are changing.org/pdf/food_policy_councils/food_policy_council_report_february_2003. October. L.Bibliography Bolen. Accessed on-line 5/04 at: http://www.edu/uepi/cfj/resources/TransportationAndFood.pdf. (2001). August 18. Supermarket Guru. Exposing urban legends: The real purchasing power of central city neighborhoods.org/pdfs/supermar. 19. (2002. Report prepared by teh International Council of Shopping Centers and Business for Social Responsibility.org/stp_food_full_report_10-03. Accessed on-line 3/04 at: http://www.gov/government/hcd/press/010605.cfm/67. Food Policy Councils: Practice and possibility.supermarketguru. 2003. (2001). Accessed on-line 3/04 at: http://www.
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