Chapter 3.1
Development Patterns and Infill

• ALL
• Remove Code Barriers
• Create Incentives
• Fill Regulatory Gaps

Grocery Stores and Infill Development

INTRODUCTION

Some communities are attempting to address two challenges with one action. Specifically, local governments are identifying infill areas as promising locations for grocery stores, particularly in areas that are also “food deserts” or “food swamps.” Grocery stores play an important role in communities. A grocery store is a retail establishment that primarily sells food, beverages, and household items and, for purposes of this brief, may include small stores selling healthy food, beverages, and household items.[1] Ensuring access to groceries can aid in increasing access to healthy food and increasing food security. An estimated 23.5 million Americans live in food deserts.[2] Defined as an area with “limited access to a variety of healthy and affordable food,”[3] food deserts are influenced by a variety of factors including income level, distance to supermarkets, and vehicle access (for our brief specifically identifying ordinances addressing food deserts see Grocery Store Development in Recognized Food Deserts).[4]

Some communities define grocery stores as retailers that primarily sell food and cover a minimum lot size.[5] In an attempt to increase access to grocery stores some communities have broadened their definition of grocery stores, opting for more generalized definitions that focus on healthy food, regardless of size of the retailer.[6] More general definitions of grocery stores may include convenience stores, supermarkets, and other businesses, which sell food for off-premises consumption.[7] While this can be beneficial to ensure that grocery stores are permitted, some local governments have gone further and are actively encouraging development of new grocery stores, particularly in infill projects. Infill projects consist of new construction in vacant lots, which adds utility to these otherwise unused areas (to view our briefs specifically address infill see our chapter on Infill Development).[8]

Local governments can encourage grocery store development in a few ways. Some local governments choose to take a hands-off approach, simply suggesting developers consider grocery stores as potential projects.[9] Local governments may also suggest anchor grocery stores in various development projects.[10] An anchor store is “a store that increases, through its name’s reputation [or distinct industry type], the traffic of shoppers at or near its location.”[11] In addition, communities can highlight the success of supermarkets as anchor stores, and potentially even require grocery stores to be the anchor.[12]

Other local governments are taking a more proactive approach by providing incentives to developers to consider grocery stores in development projects. Some districts provide tax incentives for the construction or expansion of grocery stores.[13] Further, some local governments exempt grocery stores from density[14] and dispersal requirements, while others prioritize grocery stores as a use in designated districts.[15] Some governments even require grocery stores in certain districts.[16]

Local governments can provide incentives based on the ability of the community to walk to the grocery store or other characteristics the community finds important, such as organic or local food requirements. These measures are designed to encourage the construction of grocery stores in infill development projects, particularly when the local government identifies areas where healthy food is sparse.

EFFECTS

Encouraging the building of grocery stores can be beneficial for several reasons. First, it may create local jobs. For example, a Pennsylvania initiative to bring new grocery stores to underserved neighborhoods resulted in almost 5,000 new jobs.[17] Some jobs created by new grocery stores include farming, food processing, and food transportation.[18] In addition to providing jobs, some studies have shown that grocery stores do not compete with farmers markets nor farm stands, but rather act harmoniously with these activities.[19] That said, local communities should consider whether grocery stores will harm farmers markets or places where people purchase local foods. This may be a particular concern when those farmers markets or local food options are prominent in the community.

Second, new grocery stores can help increase local revenue.[20] New grocery stores can be a source of significant tax revenue for local communities.[21] Grocery store development may also help increase property value of surrounding real estate.[22] Furthermore, supermarkets are known to be good anchor stores, which results in increased demand for other stores in the area surrounding the supermarket.[23]

Third, encouraging new grocery store development could be beneficial to neighborhoods classified as food deserts. As discussed above, food deserts are areas with little access to fresh produce largely due to a lack of grocery stores or healthy food providers.[24] Encouraging new grocery stores may help make fresh produce and other healthy food more accessible.[25]

Fourth, new grocery stores could aid communities defined as “food swamps.”[26] Food swamps are communities that have an overabundance of unhealthy food options, and comparatively few options to access healthy food alternatives.[27] Food swamps have been linked to increased rates of obesity, diabetes, and heart disease.[28] Communities that encourage grocery store development and discourage unhealthy food options can help to reduce the effects of food swamps.[29]

Lastly, encouraging grocery stores could have a positive impact on the health of individuals who reside in or near the development.[30] Studies have shown that supermarkets can lower the obesity rate in the surrounding area.[31] This is further supported by findings that a higher Body Mass Index (BMI), a measure of body fat, correlates with living further from grocery stores.[32] Overall, encouraging grocery stores in new developments can contribute to the economic development and health of the surrounding community.

EXAMPLES

Clark County, NV

Clark County, Nevada, attempts to ensure its residents have access to grocery stores through mixed-use development incentives.[33] The county provides density bonuses to encourage sustainable communities.[34] One of these density bonuses is unique to a grocery store within or near a development.[35] The ordinance specifies walking distance as around one-quarter of a mile.[36] If there is a grocery store within walking distance of a project, the developer can receive up to a 20 percent density bonus.[37]

This density bonus helps encourage construction near grocery stores.[38] Encouraging further construction near existing grocery stores will hopefully place citizens closer to grocery stores.[39] Placing citizens closer to grocery stores helps increase access to fresh, healthy food.[40] Density bonuses of this sort help ensure that construction occurs close to grocery stores, contributing to more food secure neighborhoods.

To view the provision see Clark Cty., NV, Code of Ordinances § 30.48.770 (C)(1)(b) (2018).

Tybee Island, GA

Tybee Island, Georgia, designates one of their districts a “neighborhood grocery store district.”[41] The district establishes a grocery store as the focus of a primarily residential district.[42] The purpose of this district is to sustain the residential quality of the district, while supporting access to fresh food.[43] This district is designed to meet both of those goals by means that do not negatively affect the character of the neighborhood.

To ensure the aesthetics of the neighborhood are not affected, this district has some restrictions in place.[44] The restrictions are designed to improve traffic flow in and out of the grocery store.[45] The district is also designed to ensure there is enough parking available for the grocery store.[46] Finally, the district limits the land uses to grocery stores, single- and multifamily homes, and accessory buildings.[47] Districts of this nature may better be able to provide neighborhoods with access to fresh food, without hurting the character and aesthetics of said neighborhood.

To view the provision see Tybee Island, GA, Land Development Code § 4-050 (R).

Salinas, CA

Salinas, California, addresses grocery stores in its village center district. Within this district, the City encourages the development of an anchor grocery store.[48] The Code explains that an anchor grocery store is “one of the most important local destinations and critical for the economic viability of a local shopping area.”[49] The Code makes anchor grocery stores the paramount acceptable use of the zone in order to encourage grocery development.[50] By allowing the development project to be built around an anchor grocery store, the City can promote economic stability and help ensure its residents have access to healthy food.[51]

To view the provision see Salinas, CA, Code of Ordinances § 37-30.480(e)(1) (current through 2019).

ADDITIONAL EXAMPLES

Carteret Cty., NC, Code of Ordinances § 3207.4(e) (2011) (allowing potential density bonuses for planned unit developments that are located within one road mile of a grocery store).

Cambridge, MA, Zoning Ordinances § 14.32.2.1(12)(a) (current through 2019) (requiring infill developers to submit a plan which references target uses and users of the development, particularly targeting grocery stores).

Peoria, IL, Unified Development Code § 4.3.1(A)(2) (2018) (recommending full-service grocery stores as a common type of anchor for the general commercial district).

Prince George’s County, MD, Code of Ordinances § 10-311 (2014) (providing tax credits for expansion of grocery stores, renovation of grocery stores, and building of new grocery stores).

Tulsa, OK, Code of Ordinances § 20.060 (C) (3) (current through 2020) (exempting grocery stores from dispersal standards).

ADDITIONAL RESOURCES

Food Retail Expansion to Support Health (FRESH), NYCEDC, https://perma.cc/EA7N-KJWU (last updated March 2019).

Fresh Food Retailers Initiative (FFRI), City of New Orleans, https://perma.cc/SHU6-FE26 (last visited June 2020).

Local Laws & Policies That Promote Access to Healthy Food: A Food System Crosswalk, Healthy Food Policy Project, https://perma.cc/2YT3-GC8D (last visited June 2020).

Michele Ver Ploeg & Ilya Rahkovsky, Recent Evidence on the Effects of Food Store Access on Food Choice and Diet Quality, USDA (May 2, 2016), https://perma.cc/YK94-YBCH.