MARKET OPPORTUNITIES. Incentives for Food Retailers

Transcription

1 MARKET OPPORTUNITIES Incentives for Food Retailers

2 South : Opportunity for Growth... Increasing healthy eating options by locating new grocery stores, sit-down restaurants and fresh food markets in the South region is a top priority for City leaders. To achieve this objective, the Mayor and City Council, in partnership with the Community Redevelopment Agency of the City of (CRA/LA) have developed an incentive package to attract new food retailers to these neighborhoods. Located just South of the 10 Freeway, and immediately East and West of the 110 Freeway, South is close to Downtown growing residential population, the University of Southern California (USC), the LA Live complex, and has the fastest growing population in the City of. With a large stock of single-family homes, a diverse population, and proximity to thriving residential, entertainment and business centers, South is the best investment opportunity in. The City s commitment to attracting new restaurants, groceries and produce marts comes at a time when land costs in South are rising quickly but are still lower than the City average, and the CRA/LA has a ready list of prime opportunity sites for new commercial development. Combined with the City s incentive package, all factors suggest that a healthy yield awaits food retailers who are ready to discover South.

3 in a Neighborhood Hungry for Options South covers a broad geographic area. To demonstrate the market potential for grocers, restaurants and produce marts, the retail capture areas around six targeted intersections were analyzed. Within a two-mile radius of five targeted intersections, South residents are spending $119 million - $260 million annually on food for the home and $74 million - $173 million on food outside of the home. Consumers are spending over $1.3 billion on food at home within a five-mile radius of Main Street and Washington Boulevard. All six of the South zip codes demonstrate higher purchasing power, per square mile, than other heavily retailed communities. With a demographic profile showing strong demand for food options and significant consumer purchasing power, South is a prime location for supermarkets, restaurants and other food operators looking to expand. CRA/LA Redevelopment Project Areas Hollywood & Central Region Downtown Region South Region City Limit County/ Other Municipalities Existing Supermarkets by Size Less than 10,000 sq. ft. 10,000-15,000 sq. ft. 16,000-25,000 sq. ft. 26,000-40,000 sq. ft. 41,000 sq. ft. Targeted Intersections 1. Main St. & Washington Blvd. 2. Central Ave. & Jefferson Blvd. 3. Broadway & Slauson Ave. 4. Crenshaw Blvd. & Vernon Ave. 5. Adams Blvd. & La Brea Ave. 6. Manchester Ave. & Vermont Ave.

4 Compare Area Spending Expenditure per Square Mile SOUTH LOS ANGELES ZIP CODES $93,356,967 $110,669,389 $123,814,134 $123,894,493 $191,897,919 $203,357,509 Source: University of Wisconsin, Milwaukee Employment and Training Institute, edu/dept/eti/ PurchasingPower/ purchasing.htm SANTA MONICA ZIP CODES ALHAMBRA ZIP CODE PASADENA ZIP CODE THOUSAND OAKS ZIP CODE $10,348,437 TORRANCE ZIP CODE $41,034,839 $54,105,095 $35,257,366 $56,644,175 $56,644,175 Demographics at major intersections A 5-mile radius is the standard capture area for a regional retailer, and a 2-mile radius is the standard capture area for neighborhoodserving retailers. The CRA/LA and the City of are targeting the blocks around Main and Washington for a regional retail center. MAIN & WASHINGTON within 5 mile radius CENTRAL & JEFFERSON BROADWAY & SLAUSON CRENSHAW & VERNON within 2 mile radius ADAMS & LA BREA MANCHESTER & VERMONT Population (2012 projection) 1,368, , , , , ,758 Total households 396,715 39,411 61,430 54,703 62,592 58,445 Average household income 52,284 46,409 46,911 67,606 69,133 57,617 Percentage (%) of households with income greater than $50,000 Owner-occupied homes (as % of total housing units) Annual consumer spending, selected retail categories Amount spent on a variety of goods and services, shown by broad budget categories that are not mutually exclusive. Source: ESRI Business Analyst: esri.com/marketing/ freereports/ 2012 PROJECTIONS MAIN & WASHINGTON CENTRAL & JEFFERSON BROADWAY & SLAUSON CRENSHAW & VERNON ADAMS & LA BREA MANCHESTER & VERMONT Apparel & services 649,839,240 55,919,059 88,752, ,911, ,780,321 90,005,365 Entertainment/recreation 764,412,849 68,370, ,764, ,927, ,959, ,585,368 Food at home 1,327,208, ,360, ,937, ,123, ,484, ,391,347 Food away from home 853,401,449 74,943, ,543, ,834, ,888, ,511,118 Household furnish/equipment 490,526,696 44,761,397 70,591,932 86,809, ,938,252 71,730,756 Retail goods 6,155,363, ,015,332 87,4431,322 1,051,902,669 1,225,184, ,151,482

5 Grocery Store and Sit-Down Restaurant Incentive Package The food retailer s incentive package offers an array of benefits for selected foodrelated businesses locating within the South area The incentive package focuses on financing, energy discounts, planning and technical assistance The incentives are available to: Grocery stores with at least 12,000 square feet Restaurants with seating capacity for at least 30 patrons Produce markets that dedicate 80% or more of their floor space to fresh fruits and vegetables Financing Predevelopment loans for acquisition or site preparation work from CRA/LA The Development Fund, a joint authority of the City of and the CRA/LA, has been awarded $75 million in New Market Tax Credits that can provide equity investment to qualified projects Low Interest Acquisition and Capital Loans through the Community Development Department s Section 108 program and State Enterprise Bonds Financial assistance with off-site public improvements Gap financing of up to 49% of sitespecific tax increment and sales tax revenues generated from the project Priority assistance from the CRA/LA s façade improvement conditional grant program, that can provide up to $150,000 for a grocery store or restaurant opened in an existing building and up to $250,000 for historic buildings Hiring Tax Credits for businesses that locate within empowerment, enterprise or renewal community zones For businesses locating in the State Enterprise Zone, tax credit rebates of up to 100% of the sales and use taxes paid for eligible machinery Energy Discounts up to 35% on electricity rates for businesses in the first year of operation that are located within empowerment, enterprise or renewal community zones Low interest loans up to $1.25 million from the Department of Water and Power for the installation and maintenance of equipment for electric and water service, and energy efficiency Case management services if new or upgraded utility service is needed A match of up to 50% of the cost when a new business undergrounds at least 600 feet of power lines Planning and Entitlements Expedited plan review by the City Planning Department and LADBS Assistance from CRA/LA in identifying and assembling potential sites for development Assistance with identifying qualified local employees through the City s One- Stop Worksource Centers For more information please contact Jenna Gulager Assistant Project Manager, CRA/LA 354 S. Spring Street, Suite 300,, CA T [email protected]

6 The Opportunity is NOW! Tap into the South market. Community Redevelopment Agency City of City of 354 S. Spring St. Suite 300 CA Bernard Parks Councilmember 8th District City Hall 200 N. Spring St. Room 460 CA Jan Perry Councilmember 9th District City Hall 200 N. Spring St. Room 420 CA Herb Wesson Councilmember 10th District City Hall 200 N. Spring St. Room 430 CA councilmember. councilmember.