RE: Harnessing the Power of Food Sector Entrepreneurs to Drive Economic Development

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1 December 1, 2015 Governor Charlie Baker State House, Room 280 Boston, MA RE: Harnessing the Power of Food Sector Entrepreneurs to Drive Economic Development Dear Governor Baker: We applaud your commitment to promote economic development that serves all regions of the Commonwealth. In particular, we appreciate your support in implementing provisions of the 2014 Environmental Bond Bill, which included the establishment of the Massachusetts Food Trust Program. The Food Trust Program, housed within the Massachusetts Office of Business Development, is designed to provide flexible financing to address the needs of food sector businesses through loans, grants, and technical assistance. By helping healthy food retailers and other food sector businesses overcome the barriers to entry in low and moderate income communities, or access to capital needed for renovation and expansion, the Food Trust program creates flexible opportunities to drive economic development, to improve health and wellness, and to alleviate poverty across the commonwealth. Similar financing programs across the country have a successful track record of driving economic growth. Programs in Pennsylvania and New York have leveraged between nine and fifteen dollars in private and federal funds for every one dollar of state seed funding. Other states, including Illinois, California, Maryland, New Jersey, and Michigan also have seen promising results through similar initiatives. We urge you to support the goals of the Massachusetts Food Trust Program by taking two actions: First, as part of your economic development plan, we ask that you recognize the value of the food economy in advancing economic growth in low and moderate income communities, as well as the need for the public and private sectors to work together to reduce barriers to business growth. Second, we ask that you release $2 million in bond funding to implement the Massachusetts Food Trust Program through the FY17 capital budget. These funds were authorized in the 2014 Environmental Bond Bill, but have not been released and are crucial for the successful operation of this program. 1

2 The Food Trust Program was developed because too many Massachusetts communities have poor access to healthy food and lack strong job opportunities. A 2010 study by the Grocery Access Task Force, a public-private partnership, found that over one million Massachusetts residents, including 300,000 children, live in communities with limited access to grocery stores. Many of these same communities are struggling economically and lack appropriate job opportunities for local residents. Both of these problems can be addressed by supporting food sector entrepreneurs to open and expand businesses in Massachusetts. Examples of what the Massachusetts Food Trust Program could do include: Provide loans to grocery store operators for land acquisition, construction, or renovation in underserved communities; Provide grants and technical assistance to corner stores, farmers markets, and mobile markets to address capital needs; and Provide working capital for community kitchens, food co-ops, indoor and outdoor greenhouses, and food distribution hubs; among other uses that advance the goals of the program. Successful implementation of the Massachusetts Food Trust Program has been strongly endorsed as part of the draft Massachusetts Food Systems Plan, an effort commissioned by the Commonwealth s Food Policy Council and informed by an extensive public process engaging food producers, processors, distributors, retailers, and consumers. The plan, the first of its kind in decades, is expected to be accepted by the Food Policy Council before the end of the year. Reducing barriers to successful food sector businesses in low and moderate income communities will help the state reach the goals set by the Executive Office of Housing and Economic Development to promote innovation, invest in infrastructure and make it easier to do business in Massachusetts. We look forward to partnering with you to makes these goals a reality in every corner of the Commonwealth. Sincerely, Nathaniel W. Karns, Executive Director Berkshire Regional Planning Commission Michelle Volpe, President, Boston Community Loan Fund Boston Community Capital 2

3 Keith Mahoney, Senior Director of Public Affairs The Boston Foundation Michael Gallerani, Executive Director Brockton 21 st Century Corporation Janet Pierce, Executive Director Central Massachusetts Regional Planning Commission Jane Hirschi, Executive Director CitySprouts Jen Faigel, Executive Director and Co-Founder CommonWealth Kitchen Jay Coburn, Executive Director Community Development Partnership 3

4 Virginia Foote, Director of Fund Development Conservation Law Foundation Ventures Rebecca Dunn, Executive Director Cooperative Fund of New England Jenny Silverman, Board Member and Capital Coordinator Dorchester Community Food Coop John Waite Executive Director, Franklin County Community Development Corporation Member, Massachusetts Food Policy Council Linda Dunlavy, Executive Director Franklin Regional Council of Governments Janice B. Yost, Ed.D. President and CEO, The Health Foundation of Central Massachusetts Lead Funder, Worcester Regional Food Hub 4

5 Dave Christopolis, Executive Director Hilltown Community Development Corporation Andrew Kendall, Executive Director Henry P. Kendall Foundation Gerardo Espinoza, Executive Director Local Enterprise Assistance Fund Joe Kriesburg, President Massachusetts Association of Community Development Corporations Christopher Flynn, President Massachusetts Food Association Marc Draisen, Executive Director Metropolitan Area Planning Council Chris Cooney, President & CEO Metro South Chamber of Commerce 5

6 Glenn Eaton, Executive Director Montachusett Regional Planning Commission Tim Brennan, Executive Director Pioneer Valley Planning Commission Alino Rodrigues, Owner Vicente s Tropical Market, Brockton Yvette Dyson, Executive Director Worcester Common Ground, Inc. Timothy P. Murray, President & CEO Worcester Regional Chamber of Commerce cc: Secretary Kristen Lepore, Executive Office of Administration and Finance Secretary Jay Ash, Executive Office of Housing and Economic Development Secretary Matthew Beaton, Executive Office of Energy and Environmental Affairs 6

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