This document discusses the opportunities for urban agriculture centers to address food insecurity issues in urban areas. It provides examples of partnerships between health centers and food markets, such as a project in Harrisburg, PA where a health center is expanding its wellness program through a food and nutrition store. Another example is a proposed St. Louis Food Terminal that would include a food market, cafe, food processing facility, and rooftop greenhouse to improve food access, create jobs, and support economic development. The document argues that blending for-profit and non-profit models in "social enterprises" can successfully address social and economic issues while achieving financial sustainability and returns.

1. Urban Agriculture Centers
Issues
Examples
Opportunities

2. Food Crisis in Food Deserts
 Urban residents find it difficult to access
local, healthy, and affordable foods
 Hunger, malnutrition continue to
increase
 Lack of nutrition and costs for healthy,
whole foods contributes to obesity
and diabetes
 Public funding and policy is inconsistent
 Private capital is unresponsive

3. Urban Markets are Opportunities
 Captive population
 Large, unserved, subsidized consumer base
-

4. Urban Agriculture Supports
Economic Development Agendas
 Job creation and retention
 Increased tax base
 Improved real estate values
 Repurposing distressed properties
and brownfields
 Providing programs and support to
disadvantaged populations
 Improving peoples lives, financially,
environmentally and physically

5. Examples: Cornerstone Ventures
Harrisburg Health Center
St. Louis Food Terminal

6. Harrisburg Health Center Market:
an FQHC Partnership
 Federally Qualified Health Centers see Food = Wellness
 Serve targeted, large populations that meet poverty guidelines
 Harrisburg Health Center
– 34,000 clients + 7,000 WIC Families
– 140,000 visits per year
– 200+ onsite staff
– Funding sources go beyond food and agriculture to healthcare
– Expanding wellness program through Food and Nutrition Store
 45,000 sf food processing, distribution and retail store
 Local, fresh, healthy foods to disadvantaged population
 Products and pricing targeted to market
 Nutrition Education, Cooking Demonstrations

7. Financial Incentives
 Qualifies for HRSA (Health Resources and Services Administration)
loan guarantee
 Property owned by Harrisburg Health Center
 HHC will provide a turn key facility with working
capital
 HHC will contract for prepared foods
 HHC will contract for nutrition education
 Reward cards and discounts will be provided to HHC
clients

8. St. Louis Food Terminal
 29,000 sf Food Market featuring
locally grown and produced products.
 3,900 sf Market Café providing
prepared and ready to eat foods from
local products.
 24,700 sf Food Processing and
Distribution Facility that prepares
and packages regionally produced
food for citywide institutions.
 20,000 sf roof-top Greenhouse
Farm producing items for sale at
Food Market and for processing by
Food Processing Facility.

9. St. Louis Food Terminal Site Plan

10. Opportunities: St. Louis Food Terminal
Benefits
 Improved food security for a growing, underserved
community
 200+ new skilled and unskilled jobs
 Increased tax base and property values
 Education: Food, Agriculture & Nutrition
 Reduction in the carbon footprint
 Destination for tourism industry
 Access to healthier and affordable food options for a large
and diverse urban community
 Products targeted to Food Pantry and regional institutions
 Reduction of obesity and diabetes problems experienced
by low-income urban residents

11. Funding Mix:
St. Louis Food Terminal
Tax Increment Financing $ 4,088,656
New Market Tax Credits $ 3,019,000
Missouri Development Finance Bank $ 1,500,000
Grants $ 2,500,000
Investors and Note Holders $ 2,637,682
Landlord Debt $ 3,500,000
TOTAL PROJECT COST $ 17,245,338

12. Opportunity: Return on Investment
 Preferred Shareholders
– Annual profit distributions = 15-20% ROI
– Subordinate to Note Holders
– Senior to other Shareholders
 Convertible Note Holders
– 8% annual interest + equity = 10-15% ROI
– Secured by assets
– Provision for conversion to equity

13. Funding Allocation: St. Louis Terminal
Market and Greenhouse LLCs
Public DebtPublic Debt
$4,088,656 Tax Increment Financing and Improvement
District paid by taxes from project
$1,966,581 Landlord debt collateralized with land and
building paid through lease
$1,000,000 New Market Tax Credits
$9,692,919 Allocated to the for-profit enterprise
Public
Investment
Public
Investment
Private
Investment
Private
Investment
$2,637,682 Preferred Investors and Convertible Note Holders
Private
Debt
Private
Debt

14. Funding Allocation: St. Louis Terminal
Processing Center 501 C(3)
$1,533,419 Landlord debt collateralized with land and
building and paid through lease
$2,019,000 New Market Tax Credits
$1,500,000 Missouri Development Finance Bank
$7,552,419 Allocated to the non profit enterprise
Public
Investment
Public
Investment
Private
Investment
Private
Investment
$2,500,000 Grants and Program Related Investments
Private
Debt
Private
Debt

15. Collaborative Efforts Align with
Mission and ROI
A for-profit aggregation and distribution business
that is supported through food markets and
processing facilities under the brand of Farm to
Family Naturally.
A for-profit grocery destination that provides
consumers with locally grown and produced
foods.
A non-profit designed to advance economic,
wellness and social self sufficiency for challenged
people and communities by creating and
operating educational and economic
development programs.
Community
Advncement
Services

16. History
 October 2009. Farm to Family Naturally engages Cornerstone Ventures
to restructure and develop social enterprises to achieve its mission.
 February 2010. Cornerstone Ventures presents urban agriculture center
concept.
 March 2010. The site for St. Louis Food Terminal is contracted and the
design/funding process begins.
 May 2010. Impact Funders, LLC is created by Cornerstone Ventures to
finance Social Enterprises dedicated to sustainable agriculture, food and
wellness.
 July 2010. Impact Funders provides a $400,000 loan to Farm to Family
Naturally.
 September 2010. Missouri Business Development Group, operating as a
501C(3) was restructured with the inclusion of Cornerstone Ventures and
Farm to Family Naturally members and renamed Community
Advancement Services. CAS will be the owner of the St. Louis Processing
Facility and other related ventures.
 Spring 2011. Groundbreaking scheduled.

17. Farm to Family Naturally
Business Model
 Aggregate and distribute locally produced
foods
 Support purchasing and distribution through
Urban Agriculture and Food Centers
 Expand distribution channels to schools, day
cares, food pantries and other city institutions
 Scale through FQHCs and regional
aggregators and distributors of local foods

18.  Can be profitable
 Can sell products and services that advance
social good
 Can provide market rate returns to investors
 Can provide Security and Liquidity
 Can be accountable to Stakeholders as well
as Shareholders in efforts to meet double
and triple bottom lines
Social Enterprises MUST Serve
Shareholders and Stakeholders

19. … we must learn to
integrate the non-profit
mission into a for-profit
model.
IF WE ARE TO SUCCEED…

20. www.Cornerstone-Ventures.com
Contact: Jeffrey D. Randol
215.768.4429
Doing well is the result of doing good!
– Ralph Waldo Emerson