Green Grocer Project

What is the Green Grocer Project?

The overarching goal of the Green Grocer Project is to have more fresh and healthy food available at retail food locations in Detroit. In addition to the continued support of larger traditional full-service grocery stores, this phase of GGP will emphasize attraction efforts to create walkable neighborhood grocery shopping options through new smaller-scale fully operational neighborhood grocery stores, existing convenience stores willing to include grocery essentials, fresh meat and produce, and innovative hybrid food locations, all of which have fresh healthy food options

HISTORY

The Green Grocer Project (GGP) is a program implemented by the Detroit Economic Growth Corporation (DEGC) from 2010 until 2017 to improve fresh food access and strengthen the grocery economy in the city of Detroit. The Green Grocer Project was undertaken by the Detroit Economic Growth Association (DEGA) (philanthropic funding primarily for technical assistance and/or façade grants) and the Economic Development Corporation (EDC) (CDBG-R Loan funds).

GGP supported independent full-service grocery stores in Detroit and attracted national and regional grocery stores to the city of Detroit utilizing grants and loan funding, technical assistance, and tax incentives. These investments in grocery stores have created and retained jobs, with the improved stores serving as community anchors and providing improved access to local, nutritious, healthy food. Post GGP evaluations confirmed these positive outcomes.

Upon completion of the first phase of the Green Grocer Project in 2017, Detroit’s grocery sector was positively impacted with investment in excess of $50 Million for GGP assisted stores’ new construction, expansions, and renovations. There was over $1 Million in façade improvement grants and technical assistance grants for more than 35 Detroit grocery stores. Fourteen Green Grocer stores created 115 new jobs and after five years in operation, Whole Foods Detroit had over 170 full-time positions

EXECUTIVE SUMMARY

Upon request of the Detroit City Council, DEGC’s Green Grocer Project is being re-launched with funding from the City of Detroit for two additional years beginning July 1, 2023. Funds allocated by the City of Detroit have been sub-granted by the EDC to the DEGA for the continuation of the Green Grocer Project. In addition, EDC has on-hand loan proceeds from the CDBG-R Revolving Loan program that can be used for additional grocery store loans.

As the Green Grocer Project evolved, it became evident that food access issues remained, as the closest retail food locations for most Detroiters continued to be neighborhood convenience stores, liquor stores and gas station locations. Neighborhood market research supported these food access concerns and opportunities.

VISION AND GOAL

The Green Grocer Project vision remains unchanged from the original Green Grocer Project: increase the quantity of quality grocery options in the city of Detroit. Project activities must enhance the consumer experience, increase access to fresh food, make a positive impact for the neighborhood and for the consumer, and inspire business innovation and new neighborhood partnerships.

The Green Grocer Project intends to leverage relationships with state and local fresh food partnerships, and DEGC’s existing programs and loan products.

ANTICIPATED RESULTS

Over a two-year period, the Green Grocer Project aims to impact at least eight stores in neighborhoods throughout Detroit.

Cash and/or technical assistance grants to eight small stores
GGP CDBG loans to four grocery stores

TIMELINE

May 2024 – first GGP funded small store operating
September 2024 – four GGP funded small stores operating
June 2025 – eight GGP funded small stores operating

AWARD OVERVIEW

Technical Assistance and Cash Grants. Green Grocer Project Cash Grant Awards can provide eligible awardees with funding to assist in opening a small format grocery store or providing fresh food options in an existing retail location in Detroit (including convenience stores or other retail locations). Grant funding will enable grocery development projects to procure needed equipment, technology, inventory, and buildout completion. Technical assistance grants can provide eligible awardees with funding that may include, but not limited to market research, marketing, merchandising/display, product sourcing, supplier relationships, product handling and storage, store design and layout, customer service, fresh food requirements/compliance, food rescue, digital literacy, and sustainability. Cash and technical assistance grants may be combined, and the combined value of a single grant per store may not exceed $25,000.

Loan Financing. Green Grocer Project Loan funds can provide eligible awardees with financing to assist in opening a small format grocery store or providing fresh food options in an existing retail location in Detroit. These loans will enable grocery development projects to procure needed equipment, technology, inventory, and buildout completion in an estimated amount of up to $30,000 per store. Larger format stores with significantly greater equity investment may receive GGP loan financing up to $100,000. The amount for the small format stores and larger stores may vary based on the unique needs of the awardees. Loans are subject to US Department of Housing and Urban Development Community Development Block Grant (“CDBG”) requirements and approval by the EDC Board of Directors.

ELIGIBILITY CRITERIA

The following section provides minimum requirements that businesses must meet to participate in the Green Grocer Project. To be eligible for assistance, the business must be:

A registered for-profit business in good standing with the State of Michigan and the City of Detroit (including appropriate business and blight clearances), with a business address located within the City of Detroit.

STORE ELIGIBILITY REQUIREMENTS

Small format specialty stores (1,500 – 5,000 sq. ft.) increase groceries and fresh foods to over 15% of selling space.
Mixed market community stores (3,000 – 15,000 sq. ft.) increase fresh produce, meat, dairy, specialty, organic or other alternatively sourced product.
New Construction (over 10,000 sq. ft) with fresh produce, meat, and dairy.
Alternative format stores with preponderance of fresh food.

APPLICATION PROCESS

Project applications for cash and technical assistance grants open January 1, 2024. Application review occurs bi-weekly, and grant awardees will be notified on a rolling basis. Applications for loans will be solicited and accepted in accordance with CDBG requirements. Loans are subject to CDBG requirements and approval by the EDC Board of Directors.

WHERE TO APPLY

Click here to complete the application for the Green Grocer Project.

Loan financing available through the Green Grocer Project will be made available later this year. Please check back for updates.

APPLICATION CONFIRMATION

Applicants will need to electronically sign their application and verify their e-mail address by following the instructions from Adobe security before the final submission. Following the submission, a confirmation email containing a copy of the signed application will be sent to the GGP Program Manager and applicant.

Applicants will receive an email from the GGP Program Manager once applications are processed informing them on whether their business was accepted or denied for the Program and the next steps.

SCORING CRITERIA

Businesses will be scored based on three criteria and applicants can earn up to 100 points:

Vision and plan for the business based on the clear articulation, and relevancy of benefit. (30 points)
Employment impact of the business owners and stakeholders of the business. (20 points)
Community support for businesses includes benefits to community’s access to fresh healthy food. (30 points)
Financial need and business plan viability is demonstrated. (20 points)

GREEN GROCER APPLICATION, APPROVAL, AND AWARD PROCESS

Interested Grocery Retail Businesses in Detroit can apply for business assistance on the DEGC Website.
Once you apply, your information is reviewed, scored, and verified, you will receive an acceptance or denial response within 30 days of applying for Green Grocer assistance.
Green Grocer Grant Awardees are required to execute an Agreement with DEGA and Green Grocer Loan awardees are required to execute all EDC loan documentation requirements. Loans are subject to EDC Board approval.

ADDITIONAL INFORMATION

EXPECTATION OF AWARDEES

Awardees will be expected to attend events where they will be connected to other award winners and resources. They will also be asked to share their story through a variety of media opportunities. These types of opportunities will be determined after awardees are announced.

Cash and Technical Assistance Grants received through GGP may be considered taxable income by the U.S. Internal Revenue Service, the Michigan Department of Treasury, and/or the City of Detroit Finance Department. The awardee is strongly urged to consult with a tax professional to determine the federal, state and/or city tax implications of receipt of business assistance. The Detroit Economic Growth Association will issue a Form 1099 to each awardee.

CONFIDENTIALITY

Except as noted below, the DEGA will not share a business’s proprietary and confidential data with third parties except as needed for review during the award selection process, providing business support, and seeking funding under its funding agreement with the City of Detroit. Applicants should clearly mark such information as proprietary and confidential. Applicant data will not be sold.

NOTE: Some or all funding for the Project is provided to the DEGA by the City of Detroit. The City of Detroit is a governmental body. Thus, documents in the DEGA’s possession may be provided to the City of Detroit and will be subject to disclosure under the Michigan Freedom of Information Act (FOIA). DEGA will endeavor to not disclose any information of a Project applicant or participant it believes to be exempt under the FOIA but, notwithstanding anything stated otherwise herein, the DEGA cannot guarantee the confidentiality of Project applicant or participant submissions and specifically does not warrant that the application and any documents submitted therewith or in connection with the Project are exempt from disclosure under the FOIA. Project applicants and participants are advised that documents and information submitted to the DEGA or GGP may become a public record. With respect to information which a business submits to the DEGA as part of its application, businesses should give specific attention to the identification of information they deem confidential, commercial, or financial information, proprietary information, or trade secrets and should appropriately mark such information as confidential prior to submission. A business should be prepared to provide justification why such marked information should not be publicly disclosed under the FOIA. Each business is advised that, without notice to the business and upon request from a third party, the GGP is required to make an independent determination as to whether the information may or must be divulged to that party and does not warrant that such information will be exempt from disclosure.

DISCLAIMER

The information contained herein is subject to the actual grant-award documents and the written terms and conditions of the Green Grocer Project and the Detroit Economic Growth Association which govern the Project, as the same may be amended from time to time. GGP also reserves the right to make the final determination of any person’s or organization’s eligibility and/or qualifications for Project benefits, and to make allocation of Project benefits as it may, in sole discretion deem appropriate.