Gillbrand Proposes $1 Billion in Grants for Grocery Stores

Senator Kirsten Gillibrand proposed $1 billion in grants and loans yesterday for her "Healthy Food Financing Initiative," aimed at building grocery stores in areas that lack access to fresh food. AP reports that the measure would try to help almost four million New York residents living in "food deserts" by providing startup grants for 350 new grocery stores statewide. She said, "By building new grocery stores in underserved areas across the state we can give people the opportunity to live longer, healthier lives, save billions in health care costs, and create tens of thousands of good-paying jobs."

Gillibrand unveiled the legislation with Rep. Nydia Velazquez, who noted that low-income neighborhoods with little access to fresh food generally have higher levels of obesity and diabetes. Currently the Bronx has the highest obesity rates in the city, and 55% of all city residents are either overweight or obese.

According to her press release, 273 of the new grocery stores would be in the city, and Gillibrand estimates that over 26,000 new jobs would be created. Velazquez said, "This initiative is about empowering families to make healthier food choices so they live longer." This is one of many healthy eating initiatives happening in the city, all which have received mixed support.

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By Jaya Saxena in News on April 13, 2010 9:50 AM

Comments [rss]

ozik

Why are these grants and not very reasonable loans?

boomshanka

Christ, how about ending farm subsidies that distort the market in favor of processed corn and soybean products, instead of subsidizing private grocery store chains.

Cautious Pessimist

This.

sfgal82

$1 BILLION in grants to private businesses, who are dying left and right due to tax increases, con edison increases, fines and penalties every time someone throws a candy wrapper on the sidewalk, who is going to fund this grant, Kirsten?

Senator, you really think this will create over 26,000 jobs- that's 95 employees per store, at $8/hr, that gives the owner a payroll of $30,400 to pay, before benefits and taxes.

Surely you think we're so stupid we won't see what this really is- a hope and change press release to help us believe you should be re-elected. I understand Chuckie Schumer likes having 2 votes in the senate, but please, get real!

Politburo

The money comes from the general fund. Do you have anything to indicate that the program wouldn't create jobs?

Bottomless Chips

History. The federal government never nets job gains.

It can only re-allocate resources.

starrygordon

It's election time, and certain of the masses are used to having Caesar ride by throwing alms from his chariot. I think most politicians have to do this now if they expect to get reelected. Watch Mrs. G. "fight for" largesse. The alternative is to be thought of as someone who "doesn't do anything."

If anyway wants to actually improve food supplies in lower-income areas, I suggest encouraging co-ops and CSAs which, once started, might be able to perpetuate themselves without subsidies.

Politburo

Care to explain how grocery stores do not improve food supplies but co-ops and CSAs do?

Leaving aside the point that co-ops can and did take advantage of the PA program that this is based on....

Eugene

That's nice. Now all the poor people can actually see everything they're missing out on while the stupid ones just continue not caring.

Chase

So we spend $1,000,000,000 to subsidize grocery stores to open up shop where there isn't enough demand? I don't think grocery stores fall into the realm of "Field of Dreams", just because we build doesn't mean they (the customers) will come. Sounds like a pretty big waste of our tax dollars.

Politburo

The PA program mentioned in the article has resulted in some examples of "if you build it, they will come". There are also some examples of failure. Failure rate appears to be below 10% but there isn't good data.

http://www.trfund.com/resource/downloads/Fresh_Food_Financing_Initiative_Comprehensive.pdf

Cautious Pessimist

Yeah, well, for some people it doesn't matter. I live on the same block (in East Harlem) as a grocery store that has a good selection of fresh vegetables, fruits, and greens. It's no whole foods, but I would say it's more than enough for someone to have a varied, healthy diet.

However, when I look at what people in line with me are buying, I would say about 25% of the people are buying only frozen, processed, or canned veggies and other foods. The fresh stuff is more expensive, and it takes more effort and more time to cook with. Availability might help for some areas, but for most people, fresh food means expensive and inconvenient.

Spirit of 76

Also, in some cases, canned or frozen vegetables are superior. For instance, tomato sauce has more available lycopene than fresh tomatoes. Likewise, canned corn, because of its heat processing, has more available ferulic acid. Both are good antioxidants. And everybody knows that unfrozen peas deteriorate quickly, within a couple of days of picking, which means we're not getting anything fresh after shipping. Frozen peas are as good as the day they're picked.

Gotham Extremist

"By building new grocery stores in underserved areas across the state we can give people the opportunity to live longer, healthier lives."

So grocery stores make people live healthier and longer.............. Really? What medical school did you go to lady?

Gothamist_Cynic

Um grocery stores that don't access to fresh food shouldn't be business. I'm surprised at the many bodegas and crappy supermarkets that sell rotten food and stay in business.