NEWARK-Brick City Development Corp. is launching a supermarket development initiative here, with the aim of bringing new grocery stores to the city as part of BCDC’s commitment to sustainable development and healthy neighborhoods.
BCDC has identified eight potential sites that will accommodate a full service grocery store between 15,000 square feet to 40,000 feet in size throughout the city. It is currently completing demographic analysis and site-specific due diligence. BCDC is also prepared to provide financing for site acquisition, development and construction costs.
“Understanding the real estate is a vital component of our approach and the lack of available sites has been one of the chief barriers preventing store development in the past,” says Lyneir Richardson, CEO of BCDC. “We have identified eight sites in viable trade areas that have visibility, access and parking to generate solid sales volume. We are now going to be marketing those sites to the grocery industry and private developers,”
Our goal is to get at least three of these sites under construction in the next 12 to 24 months.”
Richardson adds that BCDC also put the fundamental tools in place to support this initiative and help simplify even expedite the process for the grocers. “The BCDC tool box includes financing (grants and loans), an inventory of sites, technical assistance and current market and demographic data,” he tells GlobeSt.com. “To increase awareness about opportunities in the city, BCDC is also reaching out to the grocers directly, grocery industry associations and developers.”
The grocery industry is beginning to understand there is demand for new stores here in Newark. “The National Supermarket Association is supportive of the approach BCDC is undertaking and their commitment to providing food options,” says NSA president William Rodriquez, who belives there is opportunity in Newark for independent grocery store chains as well as the larger chain operators.
“Residents of Newark currently only have access to two full-service stores,” says Richardson. “But a city with a population of 270,000 can easily support three more real grocery stores; our mission is to bring those new stores to market.”
The capital available to support the Supermarket Development Initiative comes from a variety of sources including the recently announced the $15-million Living Cities Integration Initiative. Newark was of only one of only five cities selected nationally to receive this grant. BCDC has worked to get $4 million allocated for loans and grants for grocery store development and renovations of bodegas here.
“BCDC recently invested over $100,000 in funds to upgrade and strengthen two local neighborhood stores,” Richardson tells GlobeSt.com. “Three others stores are in various stages of completion. The focus on new supermarkets is the next step in providing a thorough offering of grocery alternatives here.”
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