Small Box Retail Diversity Study

Small Box Retail

Diversity Study

City of New Orleans

City Planning Commission

Robert D. Rivers, Executive Director

Leslie T. Alley, Deputy Director

Prepared on: November 27, 2018

Prepared By:

Emily Ramírez Hernández

Sabine Lebailleux

Aspen Nero

Amos Wright

Travis Martin

Paul Cramer

James Gillie

Table of Contents

A. Executive Summary....................................................................................................... 3

Introduction ................................................................................................................................................ 3

Key Findings ............................................................................................................................................... 4

Recommendations ................................................................................................................................... 6

Next Steps ................................................................................................................................................. 13

B. Scope of Study ............................................................................................................. 14

Motion (As Corrected) No. M-18-256 ............................................................................................. 14

Study Goals ............................................................................................................................................... 16

C. Small Box Discount Retail Overview ......................................................................... 17

Definition ................................................................................................................................................... 17

Small Box Discount Store Expansion & Economic Impacts ..................................................... 17

Small Box Discount Store Data .......................................................................................................... 24

History of Small Box Discount Stores in New Orleans .............................................................. 26

D. Public Input ................................................................................................................. 28

Public Comments Summary ............................................................................................................... 28

Stakeholder Meetings ........................................................................................................................... 29

E. Current Regulations .................................................................................................... 30

Comprehensive Zoning Ordinance .................................................................................................. 30

Plan for the 21

Century ...................................................................................................................... 38

City Code Regulations .......................................................................................................................... 43

F. Current Enforcement ................................................................................................... 44

Department of Safety & Permits ....................................................................................................... 44

Department of Sanitation .................................................................................................................... 46

Department of Code Enforcement ................................................................................................... 47

CleanUpNOLA .......................................................................................................................................... 48

Louisiana Department of Health ....................................................................................................... 48

G. Food Retail & Public Health ...................................................................................... 52

Health Landscape ................................................................................................................................... 52

Health Department Goals .................................................................................................................... 53

Food Access .............................................................................................................................................. 53

Small Box Discount Stores & Public Health Impacts ................................................................. 70

H. Case Studies ................................................................................................................. 73

Tulsa, Oklahoma ...................................................................................................................................... 73

Kansas City, Kansas ................................................................................................................................ 78

Minneapolis, Minnesota ....................................................................................................................... 80

Baltimore, Maryland .............................................................................................................................. 86

Local Policies ............................................................................................................................................ 86

Best Practice Findings ........................................................................................................................... 90

I. Small Box Discount Store Regulation Issues, Analysis, and Recommendations ... 91

Land Use Regulation Issues ................................................................................................................ 91

Neighborhood Character & Quality of Life Issues ...................................................................105

Permitting & Licensing Issues ..........................................................................................................107

Enforcement Limitations ....................................................................................................................112

J. Summary of Recommendations & Text Changes .................................................. 114

Proposed Comprehensive Zoning Ordinance Text ..................................................................114

Permitting & Licensing .......................................................................................................................119

Enforcement ...........................................................................................................................................119

Other Recommendations...................................................................................................................120

Further Study ..........................................................................................................................................120

Next Steps ...............................................................................................................................................121

A. Executive Summary

Introduction

Small box discount stores, commonly known as “dollar” stores, have operated across the United

States for well over a century. These original “five and dime” stores, such as Woolworths, have

since closed, but newer iterations such as Dollar General, Family Dollar, and Dollar Tree, all of

which emerged in the 1950s, have filled the gap. The small box discount industry is well-

established in New Orleans and has been for decades. According to Dollar General, for example,

the chain opened its first store in New Orleans in 1983.

Following national trends, small box discount stores have rapidly proliferated across the city in

recent years. New Orleans East, in particular, contains a disproportionate number of these stores

compared to other retail options—most notably full-line grocery stores. Currently, two grocery

stores and 12 small box discount stores operate in New Orleans East.

In an effort to address this rapid expansion citywide, but particularly in the East, including the

hypothesis that small box discount stores may impede the entry of full-line grocery stores, which

are a source for fresh food, City Council adopted Motion (As Corrected) M-18-256 on June 21,

2018 directing the City Planning Commission to produce this Small Box Retail Diversity Study.

The scope of the Small Box Retail Diversity Study is outlined in the motion and directs the City

Planning Commission to explore the following subject matter in its study:

 Define “small box discount stores”

 Explore regulations such as the following:

o Use standards:

 Requirements to provide fresh food

 Limitations on the sale of alcohol

 Restrictions based on spacings/block-face

 Any necessary restrictions to assist in curbing the proliferation of small

box discount stores that fail to offer fresh fruits and vegetables

 Appropriate zoning districts where “small box discount stores” may be

permitted by right, conditional, and prohibited

 For the purposes of the study, “small box discount stores” include businesses that have a

floor area of 5,000 to 10,000 square feet, which sells at retail physical goods, products, or

merchandise directly to the consumer, including food or beverages for off-premises

consumption, household products, personal grooming and health products, and other

consumer goods, with the majority of items being offered for sale at lower than the

typical market price, but does not:

o Dedicate at least 15% of floor area to fresh foods and vegetables

o Contain a prescription pharmacy, or

o Offer for sale gasoline or diesel fuel

Key Findings

Based on the review of practices in other communities and the analysis of the current situation in

New Orleans, the following key findings informed the proposed Small Box Retail Diversity

Study recommendations:

Small Box Discount Store Findings

 Small box discount stores are prolific in New Orleans. There are 36 stores citywide,

including 12 in New Orleans East. Small box discount stores tend to cluster.

 All retail uses, including small box discount stores, fall into the retail goods

establishment category; small box discount stores are permitted or conditional anywhere

that the retail goods establishment use is permitted or conditional.

 Small box discount stores such as Dollar General, Family Dollar, and Dollar Tree range

in size from 7,800 to 12,000 square feet in floor area.

 With the 2008 economic recession, small box discount stores began to attract more

customers outside of the low-income demographic.

 Major small box discount store chains are continuing to open new stores and develop new

types of store formats.

 Some small box discount stores poorly manage store exteriors, resulting in litter,

uncontained refuse in the dumpster area, and poorly maintained landscaping.

 With one exception, existing small box discount stores in New Orleans that sell food

products do not provide fresh fruit and vegetables.

 A retail goods establishment may not sell alcoholic beverages unless retail sales of

packaged alcoholic beverages is allowed within the district or if it is conditional upon

receiving conditional use approval. Only four districts (C-3 Heavy Commercial, LI Light

Industrial, HI Heavy Industrial and MI Maritime Industrial) allow retail goods

establishments to sell packaged alcoholic beverages by right.

Grocery Stores

 Full-line grocery stores generally range from 25,000 to 60,000 square feet, though

smaller versions are also located in New Orleans.

 Larger retail goods stores, such as grocery stores, are prohibited in districts such as

HMC-1 and other districts with low maximums for total floor area. The HU-B1, HU-

B1A, HU-MU, S-B1, S-LB1, S-LB2, and S-MU Districts permit uses up to 5,000 square

feet of total floor area, but uses exceeding that threshold are subject to conditional use

approval. In HMC-2, non-residential uses over 10,000 square feet, such as a grocery

store, are conditional uses. HU-B1, HU-B1A, HU-MU, S-LB1 and S-LB2 prohibit uses

over 10,000 square feet, effectively eliminating larger full-line grocery stores from those

districts.

 Grocery stores have a wide range of location selection criteria in determining the best

areas to locate, including area demographics, existing and planned food sale

Dollar General Market at 2001 St. Bernard Avenue

developments, median home sales price, median incomes, location and size of

competitors, traffic counts, violent and property crime, and policy presence.

Public Health & Food Access

 Obesity and associated diseases such as diabetes have increased threefold since 1990 as a

result of increased consumption of calorie-dense foods paired with insufficient physical

activity. African Americans are disproportionately more obese and suffer from associated

diseases than their white and Latino counterparts.

 Many New Orleans residents have low access to healthy, nutritious food.

 Studies are mixed when it comes to the linkage between availability of fresh food and

overall health as well as the availability of fresh food and the purchase of fresh food.

 Stores can implement changes to the in-store environment to influence purchasing

behaviors, such as placing particular items in prime locations and promotional advertising

within the store.

 All store types, including traditional, full-line grocery stores, devote more shelf space to

unhealthy items than to healthy items.

 Local small box discount retailers such as Family Dollar, Dollar General, and Dollar Tree

all accept SNAP, but none accept WIC.

 No causal link has been found between childhood obesity and the existence of small box

retail stores in their communities

 Toxic chemicals have been found in the products of major small box discount store

chains. While many of these companies have yet to implement comprehensive chemical

management policies, unfortunately the presence of hazardous chemicals in retail

products is not limited to these types of stores.

General Land Use

 New Orleans East, Gentilly, and parts of Algiers are more suburban and automobile-

centric in their development pattern than older parts of New Orleans; therefore, any

policy changes may need to be tailored to different areas of the city.

 Current Comprehensive Zoning Ordinance regulations prevent retail sales associated with

an agricultural use not located in an Open Space, Rural Development, or non-residential

districts despite the fact that agriculture is permitted or conditional in several residential

districts, including the historic core, historic urban, and suburban residential districts.

 There is a discrepancy in the interpretation of Section 21.6.A, which prohibits detached

accessory structures from being constructed prior to construction of the principal building

to which it is accessory. As agricultural uses typically rely on “accessory” structures such

as sheds and chicken coops and do not typically require a traditional principal structure,

this interpretation could negatively impact agricultural uses.

Case Studies

 With the implementation of Tulsa’s Healthy Neighborhood Overlay, which requires at

least a one mile distance between small box discount stores, several small box discount

stores have located just outside the boundary of the overlay in order to avoid this

restriction.

 Zoning is one tool that can assist in increasing the availability of healthy food in areas

with low access; however, for best results other initiatives or incentives should be

incorporated.

 Research shows that Minneapolis’ Staple Foods Ordinance has not increased the

purchase of healthy “staple” foods. In addition, it has not been linked to an increase in

healthy food availability as retailers in St. Paul, which does not have a Staple Foods

Ordinance, are also getting healthier.

 Programs with financial incentives, such as the Fresh Food Retailer Initiative and the

Healthy Corner Store Collaborative are providing access to fresh food in low-access

areas.

Enforcement

 Existing small box discount stores are currently classified under four different

occupational license categories which may create inconsistencies with enforcement

especially if the City desires a change in policy that would specifically target this use.

 Code Enforcement and the Department of Sanitation can also only enforce the City Code

on property owners and cannot write violations to the tenants of a property. This is an

issue, specifically as it relates to small box discount stores, because small box discount

stores are typically not the property owners of the buildings where they operate in New

Orleans.

Crime

 Violent crime and property crime data retrieved from the New Orleans Police Department

indicates that perceptions of crime in New Orleans East may be just that, a matter of

perception and related to the image of this area of the city. The crime data reflects that the

violent and property crime rates per 100,000 residents is actually lower in New Orleans

East than in Orleans Parish as a whole.

Recommendations

Comprehensive Zoning Ordinance

Definitions (Article 26)

Small Box Variety Store: A retail store between 5,000 and 15,000 square feet that sells at

retail an assortment of physical goods, products, or merchandise directly to the consumer,

including food or beverages for off-premises consumption, household products, personal

grooming and health products, and other consumer goods. Small box variety stores do not

include small box stores that:

1. contain a prescription pharmacy;

2. sell gasoline or diesel fuel;

3. primarily sell specialty food items (e.g. meat, seafood, cheese, or oils and vinegars);

4. dedicate at least 15% of shelf space to fresh or fresh frozen foods; or

5. dedicate less than 5% of shelf space to food sales.

Other Definitions

Fresh or Fresh Frozen Food: Food for human consumption that is unprocessed, or

otherwise in its raw state; food that was quickly frozen while still fresh.

This includes

unprocessed meat and seafood.

Grocery Store: A retail establishment primarily engaged in the sale of items in multiple of

the following categories: a general line of groceries, packaged frozen food, dairy products,

poultry and poultry products, confectioneries, fish and seafood, meats and meat products,

fresh fruits and vegetables, and other grocery and related products where fresh or fresh foods

including fresh meat, poultry, seafood, and produce make up 25 percent or more of the shelf

space and display area. A grocery store with at least 20,000 square feet of gross floor area

may sell packaged alcoholic beverages.

Home Processed Food Products: “Low-risk foods” in accordance with LA Rev Stat §

40:4.9. Home processed food products do not include animal products.

Agriculture. Land on which crops are grown and/or livestock are raised for sale, commercial

use, personal food production, donation, or educational purposes. Retail sales and home

food processing are permitted for all agriculture uses, subject to Section 20.3.C.

Use Standards (Article 20)

Article 20.3.MMM – Small Box Variety Store

1. In the Neighborhood Conservation District, a small box variety store is prohibited within

one (1) mile, or 5,280 feet, of any other small box variety store. Outside of the

Neighborhood Conservation District, a small box variety store is prohibited within two

(2) miles or 10,560 feet, of any other small box variety store. The required separation

distance must be measured in a straight line from the nearest point on the lot line of the

other property occupied by a small box variety store.

2. One litter can shall be placed for every thirty (30) linear feet of street frontage. The litter

can shall be placed directly outside the primary entrance. Where more than one (1) litter

can is required, the operator may place additional cans according to their discretion.

3. The operator of the small box variety store shall provide daily litter clean-up of the site

and along the public rights-of-way abutting the property.

The proposed definition for fresh and fresh frozen food is based on the U.S. Food and Drug Administration’s fresh,

freshly frozen, fresh frozen, and frozen fresh definitions as described in Sec. 101.95 “Fresh,” “freshly frozen,” “fresh

frozen,” “frozen fresh,” Title 21, Volume 2 (Revised as of April 1, 2018), “Subchapter B: Food for Human

Consumption.”

Proposed text to the Comprehensive Zoning ordinance is noted in bold, underlined font. Proposed deletions from

existing language of the Ordinance is noted with a strikethrough.

4. Outside storage is prohibited except for propane tanks. All business, servicing,

processing, and storage operations shall be located within the structure.

Article 20.3.C – Agriculture

[…]

20.3.C.1 – Additional Bulk & Yard Regulations

All structures and other improvements are subject to the bulk and yard regulations of the district,

except as provided below:

a. There are no yard requirements for the planting of crops.

b. All structures used for the keeping of livestock shall be located a minimum of twenty-

five (25) feet from any lot line. This does not apply to apiaries, chicken coops, pigeon

coops, and aquaponic structures, which shall meet the accessory structure

requirements of Section 21.6.

c. Accessory structures associated with agricultural uses are permitted on lots

without a principal structure.

[...]

Article 20.3.C.3 – Food Preparation, Processing, and Packaging

a. No food or other products of any plants or livestock may be prepared, processed,

or packaged in any residential district, except in the R-RE District. However, the

canning of plants or plant products Home food processing is permitted as part of

any agricultural use.

b. Food may be prepared, processed, or packaged at an agricultural use located in

any non-residential zoning district in which food processing is a permitted use, or

in any zoning district where food processing is a conditional use, upon

approval.

c. In any zoning district in which food processing is classified as a conditional use, a

property owner may apply for a conditional use to permit the preparation,

processing, or packaging of food or other products of any plants or livestock

raised on the agricultural use.

[…]

Article 20.3.C.6 – Retail Sales

Retail sales for an agricultural use are permitted at farm stands within the Open Space Districts,

Rural Development Districts, and any non-residential district, in all zoning districts in which

agriculture is a permitted use, or, where it is a conditional use, upon approval, subject to the

following standards:

a. Farm stands shall conform to the provisions of Section 21.6.

b. Retail sales are limited to the following:

i. Crops grown and/or livestock raised on the farm where the farm stand is

located.

ii. Other unprocessed food products, or home processed food products such

as jams, jellies, pickles, sauces, or baked goods created on the farm where

the farm stand is located.

Permitted & Conditional Uses (Articles 7 to 17)

Small Box Variety Stores and Grocery Stores

Below are the use tables that show the zoning districts where the small box variety store and

grocery store uses are proposed as permitted (“P”), conditional (“C”), and prohibited uses (blank

space). The table also lists the retail goods establishment use. The retail goods establishment use

is not currently permitted in Open Space Districts (Article 7), Rural Development Districts

(Article 8), Historic Core Neighborhoods Residential Districts (Article 9), Historic Urban

Neighborhoods Residential Districts (Article 11), and Suburban Neighborhoods Residential

Districts (Article 13), and thus the use tables for these districts are not shown below.

In addition, the below use tables show the zoning districts where agricultural uses (with and

without livestock) are proposed as permitted (“P”), conditional (“C”), and prohibited uses (blank

space).

Table 1: Permitted & Conditional Uses – Small Box Variety Stores, Grocery Stores, and

Retail Goods Establishments District Permissions

Use Table: Historic Core Neighborhoods Non-Residential Districts (Article 10)

Uses

District

VCC-

E-1

VCS

-1

HMC

-1

C-2

Use

Standa

rds

[…]

Retail Goods

Establishment

Grocery Store

Small Box

Variety Store

Section

20.3.M

[…]

Use Table: Historic Urban Neighborhoods Non-Residential Districts (Article 12)

Uses

District

HU-B1A

HU-B1

HU-MU

Use

Standards

[…]

Retail Goods Establishment

Grocery Store

Small Box Variety Store

Section

20.3.MMM

[…]

Use Table: Suburban Neighborhoods Non-Residential Districts (Article 14)

Uses

District

S-B1

S-B2

S-LB1

S-LB2

S-LC

S-LP

S-LM

S-

Use

Stand

ards

[…]

Retail Goods

Establishment

Grocery Store

Small Box

Variety Store

Secti

20.3.

[…]

Use Table: Commercial Center & Institutional Campus Districts (Article 15)

Uses

District

C-1

C-2

C-3

MU-

Use

Stan

dard

[…]

Retail Goods

Establishment

Grocery Store

Small Box Variety Store

Sect

ion

20.3

[…]

Use Table: Centers for Industry (Article 16)

Uses

District

BIP

Use

Standards

[…]

Retail Goods Establishment

Grocery Store

Small Box Variety Store

Section

20.3.MM

[…]

Use Table: Central Business Districts (Article 17)

Uses

District

CBD-

CBD-7

Use

Standar

[…]

Retail Goods

Establishment

Grocery Store

Small Box Variety

Store

Section

20.3.M

[…]

Maximum Total Floor Area for Commercial Uses

 In food desert areas, the CPC staff recommends allowing an additional 5,000 square feet

of floor area by right in grocery stores on major streets, where the commercial zoning

district may restrict it to 5,000, 10,000, or 25,000 square feet. The CPC staff recommends

that a grocery store wishing to take advantage of this additional floor area allowance

should also provide an additional 5% shelf space to fresh and freshly frozen foods beyond

the grocery store definition.

Occupational Licenses

 The Department of Safety & Permits and the Bureau of Revenue shall standardize the

small box variety store occupational license category to maintain consistency across

all existing and future small box variety stores;

 The City Council shall budget adequate resources for personnel and training to the

Department of Safety & Permits and the Bureau of Revenue for occupational license

reviews and renewals; and

 The One Stop Shop shall modify the occupational/general business license

application to include requests for floor area, percentage of shelf space dedicated to

fresh or frozen foods, and whether the store will offer gasoline or diesel fuel or

contain a prescription pharmacy;

 The Department of Safety & Permits staff tasked with determining occupational

licenses categories prior to issuance of the licenses by the Department of Revenue

shall receive additional training about small box variety stores.

Enforcement

 Provide more staffing power to the Department of Safety and Permits to hire and train

inspectors to enforce floor plans and site plans to ensure “small box discount stores”

are in compliance with submitted plans.

 Allow the Department of Safety and Permits and the Department of Code

Enforcement the ability to enact multiple fines for multiple violations. A $500 fine for

each violation should be heard at the same adjudication hearing.

 Define clear roles for the Department of Sanitation and the Department of Code

Enforcement to ensure proper minimum property maintenance upkeep for property

owners.

 Promote the passage of the state law pertaining to right-of-way maintenance in order

to grant the Department of Sanitation, the Department of Public Works, and other

enforcement agencies the authority to issue citations for violations such as littering or

driving in the bike lane.

Other Recommendations

Fresh Food Retailer Initiative

In order to encourage grocery stores, and healthy food in general, to locate in the communities

that most need them, the staff recommends:

 Continue the Fresh Food Retailer Initiative and examine the possibility of providing

additional incentives to areas with low food access, such as New Orleans East and the

Lower Ninth Ward.

Healthy Corner Store Program

In order to encourage sales of fresh produce within communities, the staff recommends:

 Continue to fund the Healthy Corner Store Program, contributing $100,000 for years

three through five of the program, with the possibility of extension beyond five years.

Plastic Bags Ordinance

Litter is often mentioned as a major problem in New Orleans and around retail locations. Plastic

bags are often seen clogging gutters and trapped in tree branches, though this is certainly not the

only type of litter. To combat litter and for environmental benefits, many cities and some states

have enacted ordinances prohibiting the use of disposable plastic bags. Members of a previous

City Council including the current Mayor considered sponsoring a motion that would require

retailers to charge customers for both plastic and paper bags, thereby encouraging shoppers to

bring their own reusable bags. If such a law were enacted, it would best be implemented on a

state level to ensure a level playing field; however, a citywide ordinance may still be effective.

Next Steps

The Small Box Retail Diversity Study, directed by City Council Motion (As Corrected) M-18-

256, will be presented to the City Planning Commission on December 11, 2018. Before it

considers the Study, the CPC must first hold a public hearing. Taking public input into mind, the

CPC can choose to forward the Study to the City Council with or without changes to the staff

recommendations. If the CPC chooses to modify the recommendations, the staff will incorporate

those recommendations and forward the revised Study to the City Council by the deadline of

January 14, 2019. The City Council may choose to hold its own public hearing on the Study,

though it is not required. The City Council may then direct the City Planning Commission to

consider all or part of the recommendations as text changes to the Comprehensive Zoning

Ordinance. If that is done, CPC staff will docket the request and write a staff report with

recommendations for specific zoning text changes. The zoning docket would require an

additional public hearing before the City Planning Commission. The Commission may choose to

recommend text changes to the City Council with or without modification of the staff

recommendations, or they could recommend denial of the proposal. The City Council must hold

a public hearing before considering adoption of zoning text changes. Finally, the Council may

adopt, adopt with modifications, or deny the City Planning Commission’s recommendations.

The Small Box Retail Diversity Study also makes recommendations for changes to the

permitting, licensing, and enforcement process, regulations for which are contained in the City

Code, as well as State-level law changes. The City Planning Commission would not be formally

involved in implementation of those changes.

B. Scope of Study

Motion (As Corrected) No. M-18-256

Study Goals

▪ Define “small box discount store;”

▪ Determine zoning districts where small box discount stores should be permitted,

conditional, or prohibited;

▪ Develop use restrictions for small box discount stores, including possible requirements to

provide fresh food or limit the sale of alcoholic beverages;

▪ Determine whether a requirement for small box discount stores to sell fresh food is

practical and impactful;

▪ Determine whether a spacing requirement is warranted for small box discount stores;

▪ Determine whether small box discount stores negatively impact the plans of conventional

grocery stores;

▪ Encourage healthy food access in underserved communities;

▪ Ensure the safety of customers, employees, and neighbors;

▪ Promote exterior property and premises of commercial uses to be maintained in clean,

safe, and sanitary conditions;

▪ Propose enforceable regulations;

▪ Prioritize enforcement; and

▪ Create a balance between short-term goals, such as healthy food access, and long-term

goals such as ensuring conventional grocery stores in all neighborhoods.

C. Small Box Discount Retail Overview

Definition

For the purposes of the Small Box Retail Diversity Study, staff examined small box discount

stores that met the following definition, as outlined in Motion (As Corrected) No. M-18-256:

Small Box Discount Store: Businesses that have a floor area of 5,000 to 10,000 square feet,

which sell at retail physical goods, products, or merchandise directly to the consumer, including

food or beverages for off-premises consumption, household products, personal grooming and

health products, and other consumer goods, with the majority of items being offered for sale at

lower than the typical market price. Small box discount stores do not include businesses that:

1. dedicate at least 15% of floor area to fresh foods and vegetables;

2. contain a prescription pharmacy; or

3. offer for sale gasoline or diesel fuel.

Small Box Discount Store Expansion & Economic Impacts

Small box discount retailers have grown rapidly throughout the country in recent years, despite

the general decline of the retail industry. According to a 2012 study prepared by Deloitte

consulting firm, “the 2008 recession and post-recessionary consumer habits have contributed to

the success of dollar stores, which appeal to primarily low- and fixed-income consumers but also

growingly appeal to consumers of all incomes.”

Figure 1: Top Three Dollar stores revenues and growth

Pat Conroy, Anupam Narula, Kash Muthuranam, Rich Nanda, Dan Kinzler, “Dollar Store Strategies for national

brands. The evolving dollar channel and implications for CPG companies,” Deloitte, 2012.

Source: Company 10-Ks and 10Qs, 2003-2012. Retrieved from “Dollar Store Strategies for national brands. The

evolving dollar channel and implications for CPG companies,” Deloitte, 2012.

In its report from 2012, Deloitte states that the dollar store industry is a 55.6 billion dollar

industry in the United States, in which the top three dollar-store retailers (Dollar General, Dollar

Tree, and Family Dollar) account for a little over half of that share. It indicates that sales for

these three retailers have grown an average rate of 10 percent annually between 2003 and 2012,

and the number of stores has increased from 13,403 to over 21,000 in the same time period.

Additional data show that this trend has continued since 2012 and that dollar stores are still

thriving today. Overall, dollar stores in the U.S. have seen their sales increase approximately

50% between 2010 and 2015, from 30.4 billion dollars to 45.3 billion dollars.

Dollar General

CEO Todd Vasos stated at a Goldman Sachs retailing conference in September 2017 that as “the

middle-class continues to go away, unfortunately, to the lower end of the economic scale versus

the higher end”, and “as this economy continues to chug along and creates more of our customer,

[…] there’s going to be more and more opportunities for us to get in and build more stores.”

According to Dollar General, the fastest growing retailers in the U.S. are discount retailers.

While the revenues of department stores in suburban middle-class malls are declining, Dollar

General and Dollar Tree, which are the two major competitors of the dollar store format, were

growing at 6.4% and 7.5% respectively in 2017. Dollar Tree reported an average growth rate of

8.6 percent from 2015 to 2017, excluding sales from Family Dollar, which it bought in 2015. All

together, these three chains have opened more than 1,800 stores in 2017 alone. Dollar General

finished the first quarter of 2018 with 14,761 stores in 44 states, up from 13,601 a year earlier,

according to the company’s own data. Dollar Tree opened its 15,000

store in 2018, on par with

the number of Mc Donald’s in the U.S. These two main dollar chains combined have more stores

than the six biggest retailers in the country – Walmart, Kroger, Costco, Home Depot, CVS, and

Walgreens.

Louisiana is particularly affected by the rapid expansion of dollar stores, as it counts much more

dollar stores per capita than other states. “The mid South is one region where dollar stores are

becoming prominent features of the retail environment. […] Arkansas, Mississippi, and

Louisiana each have more than 140 dollar stores per million residents. This compares to only 14

stores per million residents in California, 37 stores per million residents in New York State, […]

and 86 stores per million residents in Texas.”

Mary Hanbury, “Dollar General is dominating America. Here’s how it keeps its prices low”, Business Insider,

August 30, 2018, https://www.businessinsider.com/dollar-general-low-price-strategy-2018-8 (accessed October 11,

2018)

Taylor Pipes, “How Dollar Stores Are Staying Competitive In A Changing Retail Climate”, Shiftonomics by

Branch Messenger, December 22, 2017, https://blog.branchmessenger.com/how-dollar-stores-are-staying-

competitive-in-a-changing-retail-climate-2/ (accessed October 11, 2018)

Kate Taylor, “Dollar stores are dominating retail by betting on the death of the American middle class”, Business

Insider, December 8, 2017, https://www.businessinsider.com/dollar-general-sales-soar-death-of-american-middle-

class-2017-12 (accessed October 11, 2018)

Warren Shoulberg, “Are Dollar Stores The True Retail Disrupters?”, Forbes, July 22, 2018,

https://www.forbes.com/sites/warrenshoulberg/2018/07/22/are-dollar-stores-the-true-retail-

disrupters/#25efd8467a6e (accessed October 11, 2018)

Andreas C. Drichoutis, Rodolfo M. Nayga, Jr., Heather L. Rouse and Michael R. Thomsen, “Food Environment

and Childhood Obesity: The Effect of Dollar Stores”, Health Economics Review, 2015.

In rural towns, the development of dollar stores is a two-faced issue. On one hand, the dollar

store companies claim that it benefits the communities because it offers customers more

affordable prices for everyday goods and employment in rural areas that might lack jobs. In

remote areas where customers would have to drive over 20 miles to reach a supermarket, a new

dollar store provides a more accessible way to find essential household and food items. As

declining small towns have seen their businesses close in recent years, a new dollar store is

sometimes the first commercial investment they have seen in many years.

On the other hand,

critics often say that “the stores hurt local businesses, drain money from local economies because

profits leave town, and contribute little to the communities where it does business.”

The few

small grocery stores that may still exist in these towns struggle to compete with the lower prices

offered by dollar stores.

In cities, mom-and-pop independent dollar stores, neighborhood corner stores, and small grocery

stores often struggle to survive as large chain dollar stores move in. Dollar stores’ growth

impacts other retailers by pressuring them to reduce their prices and by reducing their margins.

While in response some supermarkets have started to offer more dollar items in special sections

stocked with deals and generally inexpensive products, this disruption of the market can force

other retailers to sell some products at a loss, which eventually can drive them to close down.

Location Criteria / Marketing Model

Historically, dollar stores have predominantly served rural and suburban low-income

communities, and smaller communities where larger retailers like Walmart cannot implant

because of their footprint and/or the low population density. More specifically, Dollar General

tends to focus on rural areas, while Dollar Tree and Family Dollar are often found in urban and

suburban areas. All three chains try to open their stores closer to lower-income neighborhoods

than superstore rivals such as Walmart. The target shopper for Dollar General, for example, is a

household making $40,000 or less a year, and is often living several miles away from grocery

stores, in areas referred to as food deserts. “The strategy in the early 2000s, when Dollar General

started to grow, was to go where Walmart wasn't, David Perdue, Dollar General's chief executive

from 2003 to 2007, told The Wall Street Journal”.

The current CEO of Dollar General, Todd Vasos, indicated that because the U.S. economy is

facing stagnant wages and decreased job opportunities, the company has started to attract higher

income shoppers as well. Discount stores have growingly appealed to middle-class customers

who have become more conscious about spending. Typically, dollar stores, which are smaller

Frank Morris, “How Dollar General Is Transforming Rural America,” NPR, December 11, 2017,

https://www.npr.org/2017/12/11/569815331/loving-and-hating-dollar-general-in-rural-america (accessed October

17, 2018)

Blake Gumpercht, “Dollar General creates worry in small towns”, The Bismarck Tribune, December 10, 2017,

file:///H:/My%20studies/Small%20Box%20Retail/chain%20stores/Dollar%20General%20creates%20worry%20in%

20small%20towns%20_%20_%20bismarcktribune.com.html (accessed October 17, 2018)

Mary Hanbury, “Dollar General is dominating in America. Here’s how it keeps its prices so low,” Business

Insider, August 30, 2018, https://www.businessinsider.com/dollar-general-low-price-strategy-2018-8 (accessed

October 12, 2018)

than supermarkets or big box discounters, have targeted consumers seeking to quickly fill some

of their weekday foods or toiletries, and party supply needs.

The Retailer Expansion Guides of Spring 2015 and Spring 2016, which are published by the

retail advisor ChainLinks, provide information about the type of market that different discount

stores are looking at to expand their number of stores, as well as minimum and maximum square

footage of the buildings they wish to implant in.

Table 2: Small Discount Chain Retailers Market Information

RETAILER

# OF

STORES

2015

# OF

STORES

2016

# OF

STORES

PROJECTED

IN 12

MONTHS

(2017)

MIN

SQ. FT.

MAX

SQ. FT.

EXPANSION

COMMENTS

SUMMARY

EXPANSION

99 Cents

Only

350

316

120

10,000

25,000

Downtown,

free standing,

neighborhood

strip, power

center, high

volume

markets, drug

and discount

stores

West coast,

Texas

Dollar

General

12,000

12,195

1,460

9,000

12,000

Downtown,

freestanding,

neighborhood

strip, regional

strip, special

strip, co-

tenancy (if

strip center)

consisting of

frequently

visited stores

(grocery,

drug store,

auto parts

store, video

store, etc)

Nationally

Dollar

Tree

4,000

4,900

600

8,000

12,000

Strong traffic

counts, free

standing,

Nationally

Sruthi Ramakrishan, “U.S. dollar stores stand their ground in escalating retail price war,” Reuters, August 18,

2017, https://www.reuters.com/article/us-usa-retail-dollarstores-idUSKCN1AY1XY (accessed October 12, 2018).

neighborhood

strip, regional

strip, special

strip, regional

neighborhood

centers,

anchored by

big box

discounters

or dominant

grocery

stores

Family

Dollar

7,500

7,847

600

7,800

10,000

Downtown,

free standing,

neighborhood

strip, regional

strip, special

strip, co-

tenants with

strong retail

synergy,

preferably

with a

grocery

anchor. 5

year with 5

year options

Nationally

Five

Below

200

192

7,000

10,000

Lifestyle

center,

neighborhood

strip, outlet

mall, power

center,

regional mall,

regional strip,

special strip,

regional and

super-

regional

power

centers

anchored by

national big

box and

junior anchor

South,

Southeast,

Northeast

tenants.

Lifestyle

centers

anchored by

value-

oriented big

box retailers.

Regional and

super

regional

enclosed

malls that

feature value-

oriented big

box retailer.

According to this table, the dollar store retailer chains found in New Orleans look to locate in

buildings that are between 7,800 square feet and 12,000 square feet. Overall, while each chain

has its own formula for determining what population and demographics are needed to support a

store, dollar store location criteria resemble those of other retailers: regional or neighborhood

centers, freestanding locations in a strong retail corridor with street presence, maximum street

frontage, easy ingress/egress, and ample parking, shopping centers that are highly visible and

have strong traffic counts, and acquisitions rather than ground-up construction.

Economic Impacts

The majority of small box discount stores are located in rural and suburban areas where they cost

less to operate. According to Dollar General’s senior vice president of real estate and

development, it costs the company around $250,000 to open a new leased space. The stores are

smaller than supermarkets, typically locate in metal buildings rather than masonry, and invest a

minimal amount of money in store aesthetics and design with typically metal shelving, strip

lighting, and inexpensive signage.

In a meeting that CPC staff held with representatives of Rouses Supermarkets on September 14

2018, Steve Black, CEO, and Charles Merell, Vice President of Real Estate, indicated that in

comparison, Rouses needs 4 to 5 million dollars to open a supermarket (which includes

refrigeration, lighting, etc.). As a result of the low cost of construction, dollar stores benefit from

the highest return on investment of any other retail, and they do not face the same risk of failure

since the company would not lose a significant amount of money in the event of a store’s failure.

Since the companies do not own real estate, they have much more flexibility to move less

successful stores to other locations. The cost of operation is also very low since smaller stores

require less staff, and there is less emphasis on service than in larger retailers or supermarkets.

Additionally, dollar stores operate on small margins, carrying a limited number of items, rather

than every brand and size of the same product, which allows them to have more buying power

https://www.dollartree.com/real-estate/

with suppliers by buying in bulk.

According to Rouses representatives, the low cost of

merchandise sold in dollar stores disrupts the market, forcing other retailers to sell the same

goods for less, and sometimes without profit.

While some products are sold in smaller quantities at higher prices in dollar stores than in larger

supermarkets, other items are more economical at dollar stores, and the dollar stores are still

cheaper for locals than the convenience stores and liquor shops they compete with. They have

the advantage of being more accessible to locals who do not own personal vehicles and are not

within reach of a larger supermarket. Dollar stores' success is based on their ability to provide

what lower-income households need when they have no other options. Instead of selling items in

bulk, allowing for long-term savings, dollar stores sell small quantities of items that customers

can afford — even if they end up paying more on a per-ounce or per-item basis in the long run.

Ultimately if people are budget constrained, they do not have the luxury to make better choices

in terms of spending. “Seen one way, dollar stores, like a layaway plan or payday loan, are yet

another manifestation of people of limited means getting around an unaffordable cost-of-entry by

paying more to get less.”

In a meeting with staff, Tom Hadir, a property owner who has been looking for a grocery store

operator to occupy a vacant commercial space in his shopping center in New Orleans East,

shared that a grocery store located on Michoud Boulevard closed down when a Dollar General

store opened next to it. He added that small grocery stores and corner stores cannot compete with

dollar stores because of the cost of operations. The cost of providing 15 employees and security

for a large, full-service grocery store is prohibitive when it has to compete with dollar stores that

often operate with minimal employees on-site and provide really inexpensive products. He added

that dollar stores on average lose approximately 40 shopping carts a month, at a cost of 150

dollars each, which is a loss that small, independent supermarkets cannot afford. Existing small

grocery stores on Bullard, Crowder and Read Avenues have allegedly all declined in sales since

dollar stores have multiplied in New Orleans East. According to him, the lack of existing large

grocery stores, and the lack of transportation options benefit dollar stores because people in the

area without access to reliable transportation rarely have the means to get to a large grocery

store.

Current / Future Marketing Efforts

While at the moment, the majority of dollar stores do not offer fresh food or perishable items,

both Dollar General and Dollar Tree are planning on developing their food and beverage

offerings with healthier consumable options, according to CEO Todd Vasos

. Dollar General

Mary Hanbury, “Dollar General is dominating in America. Here’s how it keeps its prices so low.” Business

Insider, August 30, 2018, https://www.businessinsider.com/dollar-general-low-price-strategy-2018-8 (accessed

October 12, 2018)

Joe Eskenazi, “Dollar stores are thriving – but are they ripping off poor people?” the Guardian, June 2018,

https://www.theguardian.com/us-news/2018/jun/28/dollar-store-ripping-people-off-poverty-inequality (accessed

October 12, 2018)

Russell Redman, “Dollar stores eyeing bigger helping of food,” Supermarket News, June 1, 2018,

https://www.supermarketnews.com/retail-financial/dollar-stores-eyeing-bigger-helping-food (accessed October 12,

2018).

plans to focus on upgrading its existing stores with more cooler doors. “These store remodels

typically drive amongst the highest returns” Vasos said. In fiscal year 2018, Dollar General was

planning to open 900 new stores, remodel 1,000 mature stores and relocate about 100 stores.

About 400 of the 1,000 planned remodels will be to the Dollar General Traditional Plus format

(DGTP), which is a traditional size store with expanded space dedicated to coolers that can

accommodate more perishable items.

One hundred and twenty five (125) of the stores that Dollar General remodeled in its first quarter

of 2018 followed the DGTP format, which added a fresh produce section in 45 stores in the U.S.

According to Dollar General’s CEO, the company now has more than 400 stores throughout the

chain which carry produce. Approximately half of these stores are Market format stores, while

the other half of these stores are DGTP format stores with a fresh produce section. The company

aims to bring these categories to more locations. In an archived conference call from May 2018,

Dollar General’s CEO stated that the company has experience in treating produce within its

Market stores, but that it is still learning to apply that experience to smaller store formats. “We

see it as a competitive advantage, especially in rural areas where there isn't a lot of competition

and/or food choices — especially healthy food choices — for our core consumers. I would tell

you it's not going to be for every store, somewhere down line, but could it be for thousands

eventually? Yes, it could.” This last statement indicates that the company seems to already plan

on expanding their healthy food options to stores located in areas where there is not much

competition in terms of food choice.

Small Box Discount Store Data

During the course of the study, staff identified 36 small box discount stores in New Orleans,

including 12 operating in New Orleans East.

Table 3: Existing Small Box Discount Stores by Council District

LOCATION

NEIGHBORHOOD

COUNCIL DISTRICT

3612 S. Carrollton Avenue

Hollygrove

8201 Earhart Boulevard

Hollygrove

4115 S. Carrollton Avenue

Mid-City

5201 Canal Boulevard

Navarre

2650 S Broad Street

Hoffman Triangle

2841 S Claiborne Avenue

Hoffman Triangle

230 N. Broad Street

Mid-City

3157 St Claude Avenue

St. Claude

2900 General De Gaulle Drive

Algiers

3620 Macarthur Boulevard

Algiers

3771 General De Gaulle Drive

Algiers

Permit status is “not operating-pending approval by Safety & Permits.”

4021 Behrman Place

Algiers

4300 Woodland Drive

Algiers

4840 General Meyer Avenue

Algiers

1919 St. Claude Avenue

New Marigny

Seventh Ward

2130 N. Claiborne Avenue

New Marigny

Seventh Ward

2125 Caton Street

Gentilly

2170 Filmore Avenue

Gentilly

4525 Old Gentilly Road

Gentilly

4774 Paris Avenue

Gentilly

1841 Almonaster Avenue

New Marigny Ninth

Ward

2001 St. Bernard Avenue

Seventh Ward

1111 Poland Avenue

Upper Ninth Ward

4314 Downman Road

New Orleans East

6500 Downman Road

New Orleans East

11020 Morrison Road

New Orleans East

11701 Morrison Road, Suite 106

New Orleans East

11902 I-10 W. Service Road

New Orleans East

13100 Chef Menteur Highway

New Orleans East

4511 Michoud Boulevard

New Orleans East

5700 Crowder Boulevard

New Orleans East

7300 Read Boulevard, Suite A

New Orleans East

7313 Chef Menteur Highway

New Orleans East

8400 Chef Menteur Highway

New Orleans East

9711 Chef Menteur Highway

New Orleans East

5523 Saint Claude Avenue

Lower Ninth Ward

Figure 2: Small Box Discount Retail by Council District

History of Small Box Discount Stores in New Orleans

In the post-Hurricane Katrina environment, the development of small box discount stores was

accelerated by the Great Recession a few years later. This development trend is not unique to

New Orleans, as small box variety stores have proliferated exponentially nationwide. Locally,

the phenomenon is especially acute in New Orleans East and other neighborhoods with

affordable commercial real estate.

The image below maps median household income against the locations of small box discount

scores. This map image suggests a strong correlation between median household income and

where small box discount stores choose to locate; specifically, small box discount stores are most

prevalent in areas where median household income is lowest. It is noteworthy that more affluent

neighborhoods such as Lakeview and Uptown have not been developed with small box discount

stores. Due to the heavy saturation of these small box retail stores in low-income areas in

particular, and the concomitant problems reported with their operations and management, the

present study has focused on those areas of greatest overlap between median household income

and small box retail locations.

The prevalence of discount stores in New Orleans East, for example, is partially a function of the

area’s Euclidean zoning and the separation of uses, which is autocentric in character, as the East

lacks the granular development pattern conducive to the traditional corner stores common in so

many of the City’s historic urban neighborhoods.

Small box discount stores tend to locate on

larger parcels with greater automotive access. Historic urban properties are more difficult to

retrofit in conformity with the building footprints and parking demands associated with their

business model.

Figure 3: Small Box Retail Stores & Median Household Income

However, Euclidean zoning is but one factor with repercussions for the prevalence of discount

stores. At some indeterminate threshold, the socioeconomic and demographic profiles of a

community may supersede the role of Euclidean zoning where real estate values are conducive to

the discount stores’ business model. A perception among stakeholders and interview subjects

implies that the stigmatizing ubiquity of discount stores is precluding full-service grocery stores

from penetrating markets in New Orleans East. This stigma is associated principally with crime

rates, lackluster operations and management, poorly maintained grounds and parking lots, and

the perception that discount stores only cater to low-income market segments of the population.

Because discount stores exhibit a penchant for locating in distressed communities, their

inordinate presence sometimes contributes to the conflation of cause and effect, but like most

highly visible signifiers of distressed communities, discount stores are oftentimes symptomatic

of more underlying structural physical design and socioeconomic conditions: correlation does

not imply causation.

Euclidean zoning is a zoning regime based on the landmark U.S. Supreme Court decision in Village of Euclid,

Ohio v. Ambler Realty Co. which inaugurated the principle of the separation of uses. This zoning regime sorts

particular uses into more generic land use categories such as residential, commercial, industrial, agricultural, etc.

D. Public Input

Public Comments Summary

Throughout the research and composition of this special study, the City Planning Commission

staff received public comments regarding the adverse impacts – perceived and actual – of

discount stores. Staff received both written comments, which are posted on the City Planning

Commission website and included in this report, as well as public testimony at the September 11,

2018 hearing. Comments can be tentatively categorized under complaints about products, use

standards, economy, and store operations and maintenance. There follows a synopsis of the most

common themes that emerged during the exploratory conversations and interviews with diverse

stakeholders.

Products

 Inferior products

 Discount stores purvey expired, damaged, or toxic goods

 Unhealthy and processed foods

Use Standards

 Parking lots are poorly maintained

 Stores are poorly illuminated at night

 Inadequate landscaping

 Aesthetically unappealing buildings

Economy

 Perception that discount stores adversely impact property values

 Promote low-wage jobs

 Market saturation of discount stores precludes larger grocery retailers from entering

the market

 The prevalence of discount stores stymies the diversification of the retail economy in

New Orleans East

Operations and Maintenance

 Poor customer service

 Untrained staff

 Insufficient staffing which results in excessive queuing at points of purchase

 Litter

 Inadequate security

 Crime

 Loitering

 Parking lots of discount stores function as a staging area for a second market of

illegal vendors

All written public comments may be found beginning on page 123.

Stakeholder Meetings

In studying small box discount store issues, the City Planning Commission staff met with the

following offices, organizations, groups, and individuals:

 City of Tulsa (phone conference)

 City of Minneapolis (phone conference)

 Tulane Prevention Research Center

 Propeller

 Hope Credit Union

 Top Box Foods

 Eastern New Orleans Neighborhood Advisory Commission

 Robert Fresh Market

 Rouses

 Tom Hadir, Fresh Food Retailers Initiative Recipient

 University of Minnesota School of Public Health - STaple foodsORdinance

Evaluation (STORE) study

 Sanitarian Services, Louisiana Department of Health

 Department of Sanitation, City of New Orleans

 Department of Health, City of New Orleans

 Department of Code Enforcement, City of New Orleans

 Department of Safety & Permits, City of New Orleans

 Bureau of Revenue, Department of Finance, City of New Orleans

E. Current Regulations

Comprehensive Zoning Ordinance

The Comprehensive Zoning Ordinance does not generally differentiate between different types

of retail; however, it does provide a comprehensive definition of a generalized retail zoning

category. Retail Goods Establishments are defined by Article 26 of the Comprehensive Zoning

Ordinance as “a business that provides physical goods, products, or merchandise directly to the

consumer, where such goods are typically available for immediate purchase and removal from

the premises by the purchaser. A retail goods establishment does not include any adult uses. A

retail goods establishment may not sell alcoholic beverages unless retail sales of packaged

alcoholic beverages is allowed within the district and a separate approval is obtained for such

use. A retail goods establishment that sells food products, such as a delicatessen, bakery, or

grocery, may offer ancillary seating areas for consumption of food on the premises.”

Retail goods establishments are permitted by right in a preponderance of the City’s zoning

districts. No use standards currently exist for Retail Goods Establishments.

Permitted and Conditional Uses – Retail Goods Establishments (Articles 7 to 17)

Below are use tables showing the zoning districts where Retail Goods Establishment are

permitted (“P”), conditional (“C”), and prohibited uses (blank space). Because discount stores

are currently classified as Retail Goods Establishments, such stores would be allowed in any of

the districts tabulated below which permit Retail Goods Establishments by right and conditional

in any district which limits Retail Goods Establishments to conditional use review.

Table 4: Permitted & Conditional Uses – Retail Goods Establishment

Use Table: Open Space Districts (Article 7)

Uses

District

OS-N

OS-G

OS-R

GPD

[…]

Retail Goods Establishment

[…]

Use Table: Rural Development Districts (Article 8)

Uses

District

R-RE

M-MU

[…]

Retail Goods Establishment

[…]

Use Table: Historic Core Neighborhoods Residential Districts (Article 9)

Uses

District

VCR-1

VCR-2

HMR-1

HMR-2

HMR-3

[…]

Retail Goods Establishment

[…]

Use Table: Historic Core Neighborhoods Non-Residential Districts (Article 10)

Uses

District

VCC-1

VCC-

VCE

VCE-

VCS

-1

VCP

HMC

-1

HMC

-2

HM-

[…]

Retail Goods

Establishment

[…]

Use Table: Historic Urban Neighborhoods Residential Districts (Article 11)

Uses

District

HU-RS

HU-RD1

HU-RD2

HU-

RM1

HU-RM2

[…]

Retail Goods Establishment

[…]

Use Table: Historic Urban Neighborhoods Non-Residential Districts (Article 12)

Uses

District

HU-B1A

HU-B1

HU-MU

[…]

Retail Goods Establishment

[…]

Use Table: Suburban Neighborhoods Residential Districts (Article 13)

Uses

District

S-

LRS

S-

LRS

S-

LRS

S-

LRD

S-

LRD

S-

LRM

S-

LRM

[…]

Retail Goods

Establishment

[…]

Use Table: Suburban Neighborhoods Non-Residential Districts (Article 14)

Uses

District

S-B1

S-B2

S-LB1

S-LB2

S-LC

S-LP

S-LM

S-MU

[…]

Retail Goods

Establishment

[…]

Use Table: Commercial Center & Institutional Campus Districts (Article 15)

Uses

District

C-1

C-2

C-3

MU-

[…]

Retail Goods Establishment

[…]

Use Table: Centers for Industry (Article 16)

Uses

District

BIP

[…]

Retail Goods Establishment

[…]

Use Table: Central Business Districts (Article 17)

Uses

District

CBD-1

CBD-2

CBD-3

CBD-4

CBD-5

CBD-6

CBD-7

[…]

Retail Goods

Establishment

[…]

Maximum Total Floor Area for Commercial Uses by District

Below is a tabulation of the maximum total floor area requirements for commercial uses in each

applicable zoning district. Larger retail goods stores are prohibited in districts such as HMC-1

and other districts with low maximums for total floor area. Elsewhere, HU-B1, HU-B1A, HU-

MU, S-B1, S-LB1, S-LB2, and S-MU Districts permit uses up to 5,000 square feet of total floor

area, but uses exceeding that threshold are subject to conditional use approval.

Some of the tabulated district regulations can have the unintended consequence of

problematizing conditions for grocery stores; for example, non-residential uses over 10,000

square feet, such as a full-service grocery store are conditional uses in HMC-2. Even more

draconian for grocery stores are those districts, such as HU-B1, HU-B1A, HU-MU, S-LB1 and

S-LB2 which prohibit uses over 10,000 square feet, effectively eliminating larger full-service

grocery stores from those districts.

Table 5: Maximum Total Floor Area

for Commercial Uses by District

District

Maximum Total

Floor Area –

Commercial Use

HMC-1

3,000 SF

HMC-2

Any non-residential

use over 10,000 SF

is conditional

HU-B1A

Permitted up to

5,000sf of total floor

area

Conditional use

approval required

for 5,000sf to

10,000sf of total

floor area

Uses with over

10,000sf of total

floor area are

prohibited

HU-B1

Permitted up to

5,000sf of total floor

area

Conditional use

approval required

for over 5,000sf of

total floor area

Uses with over

10,000sf of total

floor area are

prohibited

HU-MU

Permitted up to

5,000sf of total floor

area

Conditional use

approval required

for over 5,000sf of

total floor area

Uses with over

10,000sf of total

floor area are

prohibited

S-B1

Permitted up to

5,000sf of total floor

area

Conditional use

approval required

for 5,000 or more

square feet of total

floor area

S-B2

Permitted up to

25,000sf of total

floor area

Conditional use

approval required

for 25,000 or more

square feet of total

floor area

S-LB1

Permitted up to

5,000sf of total floor

area

Conditional use

approval required

for 5,000 or more

square feet of total

floor area

S-LB2

Permitted up to

5,000sf of total floor

area

Conditional use

approval required

for 5,000 or more

square feet of total

floor area

S-LC

None

S-MU

Permitted up to

5,000sf of total floor

area (ground floor

only)

Conditional use

approval required

for 5,000 or more

square feet of total

floor area

No stand-alone

commercial uses are

allowed unless on

the same lot as

multi-family

residential

Permitted and Conditional Uses – Retail Sales of Packaged Alcoholic Beverages (Articles 7

to 17)

Below are use tables itemizing the zoning districts where Retail Sales of Packaged Alcoholic

Beverages are permitted (“P”), conditional (“C”), and prohibited uses (blank space). The CZO’s

definition of Retail Goods Establishment stipulates that “a retail goods establishment may not

sell alcoholic beverages unless retail sales of packaged alcoholic beverages is allowed within the

district and a separate approval is obtained for such use.” Only four of the districts tabulated

below (C-3 Heavy Commercial, LI Light Industrial, HI Heavy Industrial and MI Maritime

Industrial) allow Retail Goods Establishments to sell packaged alcoholic beverages by right; a

preponderance of the districts below either prohibit the use or subject it to the conditional use

process.

Table 6: Permitted and Conditional Uses – Retail Sales of Packaged Alcoholic Beverages

Use Table: Open Space Districts (Article 7)

Uses

District

OS-N

OS-G

OS-R

GPD

[…]

Retail Sales of Packaged Alcoholic

Beverages

[…]

Use Table: Rural Development Districts (Article 8)

Uses

District

R-RE

M-MU

[…]

Retail Sales of Packaged Alcoholic Beverages

[…]

Use Table: Historic Core Neighborhoods Residential Districts (Article 9)

Uses

District

VCR-1

VCR-2

HMR-1

HMR-2

HMR-3

[…]

Retail Sales of Packaged Alcoholic

Beverages

[…]

Use Table: Historic Core Neighborhoods Non-Residential Districts (Article 10)

Uses

District

VCC-

VCE

VCE-

VCS

-1

VCP

HMC

-1

HMC

-2

HM-

[…]

Retail Sales of

Packaged Alcoholic

Beverages

[…]

Use Table: Historic Urban Neighborhoods Residential Districts (Article 11)

Uses

District

HU-RS

HU-RD1

HU-RD2

HU-

RM1

HU-RM2

[…]

Retail Sales of Packaged Alcoholic

Beverages

[…]

Use Table: Historic Urban Neighborhoods Non-Residential Districts (Article 12)

Uses

District

HU-B1A

HU-B1

HU-MU

[…]

Retail Sales of Packaged Alcoholic

Beverages

[…]

Use Table: Suburban Neighborhoods Residential Districts (Article 13)

Uses

District

S-

LRS

S-

LRS

S-

LRS

S-

LRD

S-

LRD

S-

LRM

S-

LRM

[…]

Retail Sales of

Packaged

Alcoholic

Beverages

[…]

Use Table: Suburban Neighborhoods Non-Residential Districts (Article 14)

Uses

District

S-B1

S-B2

S-LB1

S-LB2

S-LC

S-LP

S-LM

S-MU

[…]

Retail Sales of

Packaged Alcoholic

Beverages

[…]

Use Table: Commercial Center & Institutional Campus Districts (Article 15)

Uses

District

C-1

C-2

C-3

MU-

[…]

Retail Sales of Packaged

Alcoholic Beverages

[…]

Use Table: Centers for Industry (Article 16)

Uses

District

BIP

[…]

Retail Sales of Packaged Alcoholic

Beverages

[…]

Use Table: Central Business Districts (Article 17)

Uses

District

CBD-1

CBD-2

CBD-3

CBD-4

CBD-5

CBD-6

CBD-7

[…]

Retail Sales of

Packaged Alcoholic

Beverages

[…]

Off-Street Parking and Loading (Article 22)

The parking requirements for Retail Goods Establishments are 1 space per 500 square feet of

gross floor area (GFA). Table 22-1 further requires one short-term bicycle space per 5,000

square feet of GFA, and 50% long-term bicycle parking. One loading space is required for

10,000-100,000 square of GFA for commercial uses.

Table 7: Article 22, Section 22.4.A General Requirements – Parking

Table 22-1: Off-Street Vehicle and Bicycle Parking Requirements

Use

Minimum Required

Vehicle Spaces

Minimum Required Bicycle Spaces

Required Short-

Term Bicycle

Spaces

Percentage of Long-

Term Bicycle

Spaces

[…]

Retail Goods

Establishment

1 per 500 SQF. of

GFA

1 per 5,000 SQF. of

GFA

50%

Plan for the 21

Century

Because Motion No. M-18-256 introduces the regulatory option of requiring fresh food sales in

small box discount stores, this section analyzes pertinent sections of the Master Plan. The City

has an existing mandate in the Plan for the 21

Century, also known as the Master Plan, to

enhance access to healthy food and diversify fresh food choices. This mandate is specifically

articulated in Chapter 8, Health and Human Services and Chapter 13, Land Use Plan. The

complexities of food access require the deployment of an interdisciplinary, holistic approach

synthesizing land use and other areas of expertise, as reflected in the Master Plan’s policy goals

and sub-goals summarized below.

Each goal is accompanied by a recommended action or strategy; recommended actions for

implementation are assigned to the relevant public agency or organization. Those strategies and

implementation actions most pertinent to the City Planning Commission and the present special

study are summarized below. This study serves as a preliminary research background informing

the development and implementation of these policy goals and their attendant sub-goals.

Implementation of the action items and strategies in Chapters 8 and 13 may require developing

more nuanced zoning definitions and categories that recognize the distinctness of small box retail

and the exigencies of healthy food access.

Chapter 8 – Health and Human Services

Goal 4 of Chapter 8 prioritizes access to fresh, healthy food choices for all residents. Goal 4 is in

turn subdivided into four sub-goals, which are adumbrated below.

4.A. – Establish and promote fresh produce retail outlets within walking distance of all residents

Sub-goal 4.A is supported by several recommended actions which are assigned to the CPC for

implementation of Goal 4.

▪ Identify areas that are underserved by fresh food access.

▪ Remove zoning and regulatory barriers to farmers’ markets and other temporary/mobile

fresh food vending.

▪ Support urban agriculture and community gardens.

▪ Explore and implement incentives to encourage sale of fresh and local food.

Sub-goal 4.A further appoints the CPC to “work with local partners, including the Tulane

Prevention Research Center, to establish a walkability standard for access to fresh produce

outlets for all residents (80 percent of households within a half mile of outlets) and identify

geographic areas throughout the city that are underserved by fresh food outlets according to this

standard. An example of this type of study is the New York City Supermarket Need Index, which

determines areas in the city with the largest populations with limited opportunities to purchase

fresh food.”

City of New Orleans, City Planning Commission, Plan for the 21

Century, 2010, New Orleans.

4.B. – Support access to healthy nutrition opportunities at government-run or supported facilities,

including (but not limited to) healthy foods and beverages, availability of breastfeeding spaces,

and availability of fresh water.

▪ Amenities to be included (but not limited to) healthy foods and beverages, availability of

breastfeeding spaces, and availability of fresh water.

4.C. – Explore avenues to address unhealthy food choices

▪ Explore land use and zoning policies that restrict fast food establishments near school

grounds and public playgrounds.

▪ Explore local ordinances to restrict mobile vending of calorie-dense, nutrient-poor foods

near schools grounds and public playgrounds.

▪ Promote consumer education and programming to facilitate healthy eating habits and

support demand for fresh and local produce.

▪ Educate residents about and promote advocacy to limit proliferation of fast food and

drive-thru establishments.

4.D. – Promote business development for farmers and processors of locally grown fresh food

▪ Reduce zoning and regulatory barriers to processing and distribution of value added local

food products.

▪ Promote training and instruction in food and plant production and processing.

▪ Encourage and support urban agriculture and community gardens through linkages with

land use, water management, and economy opportunity plans.

Chapter 13 – Land Use Plan

The Land Use Plan constitutes the policy framework for the regulation of the city’s physical

development and serves as a guide for city decision-makers in directing the pattern, distribution,

and intensity of land uses that will, over time, best achieve the goals of livability, opportunity,

and sustainability embodied throughout the Master Plan, while providing sufficient land to meet

demands for various future land uses.

Goal 1 of Chapter 13 enjoins the City to “promote smart growth land use patterns in New

Orleans and the region.

” The sub-goal below, in support of this broad land use policy goal

specifies a vision for implementation through interventions on the supply-side of enhanced

healthy food access.

1.E. – Adopt Sustainable Land Use and Zoning Principles

Sub-goal 1.E.7 enjoins the City to increase access to healthy food at a lower environmental cost

by supporting the production, processing and distribution of locally grown food.

Ibid

Figure 4: Opportunity Site: New Orleans East

Opportunity Sites

Chapter 13 also identifies large

opportunity sites across the city that

could support significant strategic

redevelopment and master-planned

urban infill. Located along existing or

proposed transit corridors, these

vacant or underutilized light-

industrial and commercial areas are

prime real estate for reinvestment and

enhancing access to fresh and healthy

local food options. Each opportunity

site synopsis analyzes the housing

and retail markets potential.

Opportunity Sites 1 and 4 are of

particular relevance to the present

study. Opportunity Site 1 is located

in New Orleans East. Redevelopment

of the former Plaza at Lake Forest

mall is cited as critical for enhancing

the livability and sustainability of

New Orleans East. The profile for

Opportunity Site 1 summarizes the

results of an analysis of the site’s

housing, office and retail market

potentials. The opportunities

identified at this site for full-service

grocery stores make its retail market

potential especially germane to the scope and mandate of the present study.

A retail market analysis of the site concluded that residents had approximately $686 million in

spending potential as of 2013, and that the designated trade area could support one of the

following options:

▪ A large super-community “neighborhood center” of 500,000-800,000 square feet that

would include a general merchandise store (e.g., Wal-Mart), a large supermarket, big-box

retailers, a movie theater complex, supportive chain retail, and eating and drinking

establishments. (Under this option, the supercenter should be incorporated into a “town

center” setting near one of the I-10 Interchanges, and target needs of local residents, and

not a regional population.)

▪ Up to three neighborhood-serving retail centers of approximately 60,000-80,000 square

feet, each anchored by a medium-sized supermarket, drug store and smaller service

establishments. (Under this option, these neighborhood centers should be dispersed

within the trade area.)

Opportunity Site 4

Opportunity site 4 is located on Earhart Boulevard and envisions a large supermarket with up to

500 units of new mixed-income housing. The site is advantageously located with convenient

access to transportation facilities such as rail, interstate, and transit connections. Renderings in

Figure 5 below illustrate Earhart Boulevard transformed as an Urban Big Box Boulevard with

walkable pedestrian realms and mixed-use as the opportunity site transitions from industrial uses

to commercial and residential uses. The B.W. Cooper site across Earhart Boulevard from

Opportunity Site 4 has redeveloped a housing component but the area still lacks a retail

component, particularly a supermarket or other food access. The retail market analysis of Site 4

estimates that up to 300,000 square feet of retail space could be developed on the site, including

supermarkets. The Retail Market Potential analysis envisions “a community retail center, not a

regional supercenter, anchored by general merchandise or food store (e.g., Target or Wal-Mart),

along with medium-sized big box national retailers would best serve the trade area.

”

Figure 5: Boundaries and Future Land Use of Opportunity Site 4

Ibid

Figure 6: Rendering of Earhart Boulevard as Urban Big Box Boulevard

City Code Regulations

Permitting & Licensing

Permitting and licensing are integral to the present study of small box discount stores because

they are subparts of the bureaucratic systems regulating and administering this specific use.

Moreover, permitting and licensing can be thoughtfully and strategically utilized to effectuate

and support certain outcomes regarding healthy food access and the progressive regulation of

small box discount stores.

Section 150, Article VII of the City Code mandates and regulates occupational license taxes for

businesses conducting business in Orleans Parish. This section stipulates rules for the licensing

of new businesses, remuneration of taxes, changes of ownership or lessee, business

classification, recordkeeping, license applications, tax delinquency, fees, public utilities,

exemptions, deductions and other special provisions. Section 150 also mandates a separate

license for each location, based on the majority of business transacted. The Department of

Revenue will issue a new license subsequent to Department of Safety & Permits review.

Department of Safety & Permits

The Department of Safety & Permits receives occupational/general business license applications

for new businesses desiring to conduct general commercial/retail sales or operate home-based

businesses in Orleans Parish. New businesses initiate the process with the Department of Safety

& Permits because occupational license applications trigger the need for zoning inspections to

confirm the proposed use.

Bureau of Revenue

The Bureau of Revenue is tasked with collecting occupational license tax annually. Revenue

field agents are assigned to zones in the city for which they are responsible. Because

occupational licenses are based on the majority of a business’ income, half or more of a discount

stores’ business would have to be in food sales before being classified as a grocery store. The

Bureau of Revenue has more than six-hundred codes used in the classification of sundry business

operations. The most common code types for discount stores are General Merchandise,

Miscellaneous Store Retailers (Except Tobacco), Department Stores, and Durable Goods

Wholesalers, Other Miscellaneous.

Occupational licenses renew automatically on an annual basis. Annual renewals, which can be

transacted online or by mail, include reporting of gross sales and receipts. The Department of

Revenue mails reminders prior to the renewal deadline and occupational licenses are deemed

delinquent on March 1st with a grace period of 60 days. The penalty for delinquency is 5% per

month plus 1.25% interest per month.

F. Current Enforcement

Public comments provided during the September 11, 2018 hearing highlighted concerns over the

public health and safety of New Orleans discount retailers. Complaints of unkempt parking lots

and landscaping, unscreened dumpsters, and security issues were common themes brought up

both during the hearing and during individual stakeholder meetings. General maintenance to both

the interior and site appear to be an issue for discount retailers. Maintenance issues included

specifics such as required landscaping at sites falling in disrepair with dead or non-existent plant

materials. Speakers cited trash and litter as visible in the parking lots, in areas behind the stores,

and extending into the public right-of-way beyond the property. Security was another issue

brought up multiple times by the community, which included complaints of a lack of staffing at

stores, theft and shoplifting during store hours, and activity outside the stores such as loitering

and selling illegal materials.

Section 66 of the City Code includes regulations on environmental issues within the City

pertaining to the smoke free air act, removal and disposition of abandoned and nuisance motor

vehicles, noise, nuisances, and abandoned property. Section 66 gives the Department of Health,

Department of Property Management, Department of Safety and Permits, Department of Parks

and Parkways, the New Orleans Recreation Development Commission, the Fire Department, and

Code Enforcement the authority to enforce provisions within Section 66 which regulate the

maintenance of public and private property.

Section 66 of the City Code

The nuisances article of Section 66 includes general nuisances, litter, weeds, and abandoned

property. General nuisances pertain to property issues such as dumping, debris removal, burning

of trash or debris on site, and removal of unhealthy or foul material found on site. Section 66-287

states “the owner, his agent, or occupant of all premises shall be responsible to take up or cause

to be taken up all aggregate sweeping of garage, trash, litter, grass cuttings, leaves and all other

waste materials from the premises, sidewalks and abutting property including the space between

the property line and the curbline in front, extending 18 inches from the curbline into the street or

roadway and in the rear and alongside thereof of such premises owned or occupied so that such

sweepings shall not under any circumstances reach the drains, gutters, street, or roadways. The

owner, his agent, or occupant shall be responsible to have all sweepings placed into containers

sufficient to prevent such sweeping from being scattered by the wind and placed out on the days

designated for collection.” This regulation gives the City authority to regulate litter in the public

right-of-way up to 18 inches. Section 66-291 provides the City to enforce these regulations

through the adjudication process. Chapter 6 of the City Code further details the administrative

procedures of enforcing public health, housing, environment, historic district, fire, vegetation,

zoning, nuisance, and building code. Details of the enforcement process, including noticing

property owners and the adjudication process are provided below.

Department of Safety & Permits

The Department of Safety and Permits performs inspections on properties during the inspection

period for a property prior to the issuance of certain permits and licensing. Inspections and

enforcement after the Certificate of Occupancy is issued are usually performed due to

complaints. Inspectors will visit a property for inspection based on complaints about properties

violating the zoning code. Complaints are first filed by contacting 311, the City’s Service Center.

Complaint based inspections follow the same process as inspections done by sweeps, or standard

permitting inspections. Property owners will receive a warning which can lead to an adjudication

hearing with fines if no actions are taken to remedy the issue.

Sweeps

The Department of Safety and Permits’ Zoning Administration Division has started performing

sweeps throughout the City along major corridors. To date in 2018, the department has

performed sweeps along Broad Street, Claiborne Avenue from the Interstate 10 intersection to

Napoleon, and along Crowder Boulevard. St. Claude Avenue is scheduled as the next sweep. The

Mayor’s office has identified Wall Boulevard, South Carrollton Avenue, Chef Menteur

Highway, North Claiborne Avenue, North Robertson Street, St. Bernard Avenue, Elysian Fields

Avenue, and an additional section of South Claiborne and North Claiborne Avenue from Poydras

Street to Poland Avenue. These sweeps are designed to identify zoning and code violations

throughout the City and promote a cleaner and safer city. Zoning violations that Safety and

Permits inspectors identify can include illegal signs and screening violations. Signs violations

could include signs that were installed without permits, signs with animation and illegal

illumination, and temporary signs or banners. These sweeps deal with infractions on the outside

of properties. Improperly screened dumpsters and trash refuse areas are included in the sweeps.

The sweeps are a part of the Mayor’s CleanUpNOLA initiative. Safety and Permits inspectors do

not go inside buildings during the sweeps.

Discount Retailers Sweeps

Prior to the start of the study, inspectors for the Department of Safety and Permits performed

sweeps on all 36 discount retailers in New Orleans and found several violations which included

property maintenance, working on the property without permits, illegal signs, unscreened

dumpsters, as well as additional building and zoning code violations. The sweeps included 10

Family Dollar stores with improperly screened dumpsters. Article 23, Section 23.13.A of the

New Orleans Comprehensive Zoning Ordinance requires all dumpsters and trash refuse areas be

fully enclosed on three (3) sides by a solid fence, masonry wall, or principal structure wall seven

(7) feet in height.

Citation and Adjudication Hearings

The inspectors will visit the property and identify any violations to the zoning code regarding

premises maintenance, appropriate signage, dumpster screening and maintenance, and

appropriate addressing. At this visit, the inspectors will give the business owners a “Field

Observation” alerting them to any issues the inspector observed and providing information on

how to abate those issues. After this initial inspection, if no corrective action is taken within 14

days, a violation letter will be mailed to the property owner giving 14 days to abate the issue. If,

after that 14 day period the violations are not abated, the inspectors will submit the case for an

adjudication hearing. Property owners have until the morning of the hearing to show proof that

the violation has been remedied. The adjudication hearings may result in fines on the property

owner of up to $500 per violation. If the fines are not paid in the proscribed time, the property

owner may be subject to a lien on their property in the amount of the judgement, and the

property may be brought back for a second adjudication if the violations remain unabated.

Figures 7 and 8: Department of Safety & Permits Field Observation Forms

Department of Sanitation

The Department of Sanitation is in charge of trash collection and street cleaning throughout the

City. Many commercial uses and businesses are required to set up their own private trash

collections outside of the City’s contracted trash collection for residences. In addition to

overseeing waste disposal throughout the city, Sanitation also requires property owners to

maintain lots and remove or abate weeds, grass, and other vegetation on the public right-of-way

in front of their property.

Detailed in Section 66, the Department has the right to enforce

property owners to maintain the first 18 inches of land that projects into the public right-of-way.

Article IV, Division 4 of the City Code outlines the requirements for private property owner

maintenance.

Interoffice Memorandum Advice Response No. 18-07-15 Right-of-Way Maintenance, City of New Orleans Law

Department.

Litter Abatement Plans

The Department of Sanitation requires a litter abatement plan for all newly issued permits on all

commercial uses. A litter abatement plan details how the owners of the property propose

handling waste collection and disposal. The plan exempts property owners from the fees

collected from the City for municipal trash collection.

Complaint Based

Sanitation can respond to complaint based reports of specific properties, but can only issue

warnings pertaining to litter. Complaints about the state of private property cannot be enforced

by Sanitation. Only litter within the public right of way and code violations such as unscreened

dumpsters can be monitored. A severe offense can eventually go to either Code Enforcement or

Safety and Permits for citation and adjudication.

Sweeps

Currently, the Department of Sanitation has three sanitation rangers for the whole City that issue

sanitation warnings. These warnings are based on non-compliance of litter abatement plans,

unscreened dumpsters, and visible trash in the public-right-of-way. With these rangers, the

sanitation department issues thousands of warnings, but no action beyond these warnings can be

taken by the rangers. New state legislation could allow for these rangers to take actions beyond

issuing warnings.

Department of Code Enforcement

The Department of Code Enforcement works on property based violations with a mission to

decrease blight and properties that pose a public nuisance. The general upkeep of properties is

included within Code Enforcement’s responsibilities. The Department works with Sanitation as

some property violations overlap. Unkempt properties with violations ranging from tall weeds

and grass, unscreened dumpsters, and the harboring of rodents are grounds for citations. Code

Enforcement has thirteen inspectors who focus mainly on blighted properties, but also on rodent

harboring, unkempt properties or vacant lots, and unscreened dumpsters. Code Enforcement can

only cite the property owner. If a tenant such as a retailer is not in compliance with the upkeep of

a property, the owner ultimately is the one in violation of the City Code.

Adjudication Hearings

After notification to the property owners, the department will hold an adjudication hearing.

These adjudication hearings bring the property owners into a hearing to remedy non-compliance

issues. Fees and eventually liens can result from these hearings. Similar to the adjudication

hearing held by the Department of Safety and Permits, property owners can submit proof of

compliance up to the day of the hearing. Proof of compliance can include recently executed

contracts for repairs, permits covering the scope of work intended, Certificate of Completion

showing work was performed under a permit, as well as additional applications filed with

HDLC, another City department, or any federal, state, or local renovation rebuilding program.

CleanUpNOLA

CleanUpNOLA is a multi-agency initiative from the Mayor’s Office which aims to create a

cleaner and healthier New Orleans. To do so, it has identified 12 major corridors throughout the

city and is deploying resources from the Departments of Sanitation, Public Works, Health, Safety

and Permits, Code Enforcement, the Office of Neighborhood Engagement, Parks & Parkways,

and Mosquito, Termite & Rodent Control. The “Tiger Team” is walking each corridor to both

identify violations as well as to educate residents and businesses on how to respond to violations.

Table 8: CleanUpNOLA Corridors

MAJOR CORRIDOR

SEGMENT START

SEGMENT END

S. Claiborne Avenue

Martin Luther King

Napoleon Ave.

S./N. Broad Street

Poydras Street

Gentilly Boulevard

Crowder Boulevard

Hayne Blvd.

Chef Menteur Highway

St. Claude Avenue

St. Bernard Avenue

Delery Street

Wall Boulevard

General DeGaulle

Holiday Drive

S. Carrollton Avenue

Canal Street

Earhart Boulevard

Chef Menteur Highway

Press Drive

France Road

N. Claiborne Avenue

Jourdan Ave.

Delery Street

N. Robertson Street

Elysian Fields Avenue

Poland Avenue

St. Bernard Avenue

St. Claude Avenue

Gentilly Boulevard

Elysian Fields Avenue

N. Peters Street

Leon C. Simon Boulevard

S. Claiborne/N. Claiborne Avenue

Poydras Street

Poland Avenue

CleanUpNOLA consists of two components. The first component will provide, among other

things, street cleanings, maintaining the City’s public litter cans, a public awareness campaign,

the placement of 100 additional litter cans in areas with high volumes of litter, installation of

cameras to deter illegal dumping, and the City’s Transfer Station will open to the public to help

reduce illegal dumping. As part of this component, the Department of Sanitation is hiring two

additional sanitation rangers that will be dedicated to enforcement.

The second component focuses more on enforcement action, such as fines and adjudication. It

also includes work in the public right-of-way, such as enforcing blighted properties, repairing pot

holes, removing abandoned vehicles, and removing graffiti on public litter cans.

Small box discount stores are located along many of these corridors, including St. Claude

Avenue, Crowder Boulevard, and South and North Claiborne Avenues. Due to this,

CleanUpNOLA will check these properties for violations.

Louisiana Department of Health

The Louisiana Department of Health (LDH) works to protect and promote health and to ensure

access to medical, preventive, and rehabilitation services for Louisiana citizens. Sanitarian

Services, within the LDH’s Office of Public Health, enforces laws, rules, and regulations

designed to maintain and promote community hygiene, in accordance with the Louisiana

Sanitary Code.

Retail Food Program

Sanitarian Services manages the Retail Food Program, designed to prevent and minimize food-

borne disease outbreaks. As part of the program, licensed State Sanitarians consult, monitor,

issue permits, and regulate all retail food establishments in the state as governed by the Louisiana

Administrative Code Title 51 Part XXIII Retail Food Code. Per the Retail Food Code, Retail

Food Stores are defined as the following:

All types of food markets including convenience, fixed, mobile and temporary food

stores. These may also be referred to as groceries. Larger retail food stores may also

include bakeries and delicatessens.

Because they sell food at retail, small box discount stores are considered retail food

establishments/stores and must meet Retail Food Program requirements in order to legally

operate in the state. Small box discount stores that sell food items at retail are classified as

“grocery – packaged only,” in contrast to “grocery – deli (kitchen).” Stores that also sell intact

produce (e.g. not peeled, cut, etc. on-site) in addition to packaged food would also be classified

as “grocery – packaged only. Packaged food includes items such as milk, eggs, frozen fruit and

vegetables, frozen pizza, and prepared foods.

Any proposed retail food establishment must submit an application to Sanitarian Services prior

to the construction, renovation, or use of a structure.

The application includes details on the

proposed type of operation, anticipated volume and types of food products to be stored, prepared,

packaged and/or served along with the proposed layout of the facility, mechanical plans,

construction materials, and the types, location and specifications of equipment. A licensed State

Sanitarian may also conduct preoperational inspections to ensure compliance with approved

plans. Upon determining compliance, a permit for operations is issued. Should any change in

operations occur, the applicant is required to notify the Louisiana Department of Health

Environmental Office, which may require submission of modified plans, subject to review.

All retail food establishments are assigned a risk category ranging from 1 to 4. Risk categories

are determined based on a number of factors including, but not limited to, the type of food

service, activity, past violations, and the population served. Small box discount stores that fall

into “grocery – packaged only” are the lowest risk level – 1. Sites with a risk category of 1

typically receive one inspection per year. However, inspections that yield one or more critical

violations or five or more non-critical violations require re-inspections until such time that the

business corrects the violations. In addition to routine inspections, complaints can also generate

further inspections for these types of stores beyond the one per year.

The Louisiana Sanitary Code is located in the Louisiana Administrative Code under Title 51, Public Health –

Sanitary Code, which was last amended in July of 2018.

At the municipal level, the Department of Safety & Permits advises proposed retail food establishments that they

must receive Louisiana Department of Health approval prior to final approval for the occupational license. The

applicant must submit LDH approval to the Department of Safety & Permits.

Small box discount stores classified as “grocery – packaged only” may introduce “intact”

produce for sale without the risk level increasing. An existing store’s risk levels would change if

processing is introduced and would be based on the equipment necessary to do so.

Areas for Potential Non-Compliance

Food Storage

Chapter 15 of Title 51 outlines requirements for food storage in retail food stores. In short, food

must be stored in such a way as to prevent contamination, including being at least six (6) inches

above the floor. Due to the reported congestion and limited space that already exists within some

small box discount stores, it is foreseeable that a requirement to provide fresh food, such as

produce, in existing stores could increase the risk of improper food storage and/or congestion in

aisles.

However, this is intrinsically a store management issue and could be mitigated through

proper management.

As noted previously, some small box discount store chains are moving towards providing

healthier options in select stores. Presumably as a result of this, either the store would be

modified or any new stores would be built in such a way as to meet these requirements.

Garbage, Rubbish, and Refuse

Chapter 33. cites specific regulations pertaining to garbage, rubbish, and refuse management. In

general, this material must be contained in order to prevent spilling, insects, rodents, and health

hazards in general. Outside receptacles, such as dumpsters, must have tight-fitting lids and be

kept closed. There must also be sufficient receptacle space on the premises to hold all garbage

and refuse that accumulates at the business.

The accumulation of litter and trash on the property and in the right-of-way in front of the

property is a primary complaint directed toward small box discount stores. Many of these stores

have been cited at the municipal level for violations that include open dumpsters and trash.

Requirements for fresh food could exacerbate this situation for those stores that are unable to

properly manage their sites. The addition of fresh food sales, specifically the improper disposal

of spoiled food, could attract insects and rodents.

U.S. Department of Labor, Occupational Safety and Health Administration, OSHA cites Dollar Tree Stores for

exposing workers to serious hazards for second time in Delaware: Inspectors witness New Castle, Delaware,

worker struck by falling boxes, issue $103K fine, 2014, https://www.osha.gov/news/newsreleases/region3/12172014

(accessed Oct. 10, 2018).

Figure 9: Family Dollar dumpster enclosure (7300 Read Blvd.)

Insects and Rodent Control

Chapter 35 outlines

measures that retail food

stores should take to secure

the physical store as well as

products from insect and

rodent infestation. Most

relevant is the requirement

that the premises be kept

free from litter. As noted

above, certain small box

discount stores in New

Orleans are known bad

actors or otherwise unable to

maintain the premises free

from litter. The addition of

fresh food sales could add to

the responsibilities of store employees, further reducing their ability to remove litter from the

premises. Improved management is needed.

Summary

A change in policy requiring small box discount stores to sell fresh, intact produce would change

neither the type of business nor the number of inspections associated with the state’s Retail Food

Program.

However, stores would need to notify the Louisiana Department of Health and likely

provide additional information such as revised floor plans for review. City-mandated fresh food

requirements have the potential for improper food storage, particularly if applied to existing

stores which could be less able to accommodate the change in policy due to existing store sizes

or other limitations. In other words, it may be unwise to impose fresh food requirements on

existing stores due to the difficulty in retrofitting appropriately. However, uncontrolled garbage

and refuse areas and insect and rodent harboring are mostly the result of poor management and

are not fundamentally linked to fresh food sales.

As noted, inspections that yield violations or complaints can trigger additional inspections beyond the one per

year.

Source: Department of Safety & Permits photo

G. Food Retail & Public Health

Land use regulation has enormous potential where it intersects with public health—specifically

access to nutritious food. Though many zoning policies aimed at restricting certain types of uses

(e.g. fast food) have been challenged in court, these laws have been upheld when there is a clear

linkage between the policy and the public’s health, safety, morals, or general welfare.

Health Landscape

The World Health Organization (WHO) identifies overweight and obesity as major risk factors

for a number of chronic diseases, including diabetes, cardiovascular diseases, and cancer.

Despite these legitimate risks, obesity is preventable. “Energy imbalance between calories

consumed and calories expended” is the leading cause of obesity and overweight.

In other

words, the consumption of energy-dense foods that are high in fat or sugar, paired with physical

inactivity, is the primary cause of obesity and overweight.

Since the mid-1970s, obesity in the United States (and worldwide) has dramatically increased—

almost two out of every three adults are either overweight or obese. Southern states typically

have higher rates of obesity. Louisiana is among the top states in the nation for adult obesity at

36.2% for 2017, an increase from 12.3% in 1990.

African Americans in Louisiana are

disproportionately obese (42.6%) than their white (33.4%) and Latino (32.3%) counterparts.

The rates of obesity-associated diseases are also among the highest in the country. Louisiana is

the 4

highest for adult diabetes (13.6%), an increase from 5.3% since 1990, and 6

for high

blood pressure (39.0%), an increase from 16.5% since 1990.

Orleans Parish-level data, indicates consistent outcomes for obesity and related diseases.

According to 2017 data from the Behavioral Risk Factor Surveillance System (BRFSS), 32.7%

of Orleans Parish adults reported being overweight, and 31.7% reported being obese. 13.5%

reported having diabetes, and 38% reported high blood pressure.

The WHO pinpoints several ways to reduce overweight and obesity, thereby ameliorating the

risk for related chronic diseases. Though individuals must take fundamental steps to improve

their own diets, including the reduction of fats and sugars, increase in fruit and vegetable,

legume, whole grain, and nut consumption, and regular exercise or physical activity, the food

industry and policymakers must also play a role.

Lauren M. Rossen and Keshia M. Pollack, “Making the Connection Between Zoning and Health Disparities,”

Environmental Justice, Vol. 5, No. 3 (2012): 120.

World Health Organization, http://www.who.int/en/news-room/fact-sheets/detail/obesity-and-overweight.

(accessed Oct. 12, 2018)

State of Obesity, https://stateofobesity.org/states/la/ (accessed Oct. 12, 2018).

Ibid.

The Behavioral Risk Factor Surveillance System (BRFSS) is the nation's premier system of health-related

telephone surveys that collect state data about U.S. residents regarding their health-related risk behaviors, chronic

health conditions, and use of preventive services.

BRFSS

Health Department Goals

At the municipal level, the New Orleans Health Department identified in their New Orleans

Community Health Improvement Plan a goal to improve physical activity, nutrition, and quality

of life for all residents with several relevant sub-goals:

▪ Increase access to physical activity and healthy eating opportunities for youth in New

Orleans;

▪ Increase awareness and opportunities for physical and nutritional activities and resources

in Orleans Parish;

▪ Implement early childhood obesity prevention strategies by developing new and

supporting existing initiatives design to: increase physical activity, promote healthy

eating, and encourage and support breastfeeding for children in New Orleans;

▪ Facilitate access to nutritional and physical activity by way of community design and

environment

These sub-goals are linked to the Small Box Retail Diversity study as it has the capacity to

influence policy decisions to improve nutrition for Orleans Parish residents.

Food Access

Food access is a major factor that determines a person’s ability to consume affordable and

nutritious food, which is key to overall health. The U.S. Department of Agriculture, while noting

there are many ways to measure food access, outlines three primary lenses through which to

view food access:

▪ Accessibility to sources of healthy food, as measured by distance to a store or by the

number of stores in an area.

▪ Individual-level resources that may affect accessibility, such as family income or vehicle

availability.

▪ Neighborhood-level indicators of resources, such as the average income of the

neighborhood and the availability of public transportation.

Proximity to sources of food is the most apparent indicator for food access. Populations that are

more physically removed from healthy sources of food may experience additional barriers

including the availability of a vehicle or public transportation. Alternatively, close proximity to

fresh food does not necessarily result in access. Other factors can come into play such as income

level (e.g. a high-priced grocery store may not be financially accessible by lower income

residents), disability, language barriers, and crime/crime perception, all of which may hinder or

prevent access.

As of 2016, New Orleans had one supermarket for every 11,800 residents; at a national level,

this ratio is one supermarket for every 8,440 residents.

Almost half (49.5%) of Orleans Parish

United States Department of Agriculture Economic Research Service, https://www.ers.usda.gov/data-

products/food-access-research-atlas/documentation/ (accessed Oct. 12, 2018).

Jodi Dyer, “New Orleans Community Health Improvement Plan: Second Revision November 2016,” 2016.

residents have limited access to healthy food, which City Health Dashboard defines as the

percentage of the population living more than half a mile from the nearest supermarket,

supercenter, or large grocery store.

Food access, like health outcomes, is not equally distributed

across all racial and ethnic groups. White residents in Orleans Parish had the highest access to

healthy food (40.4% had limited food access) while Black residents had the lowest access to

healthy food (55% had limited food access).

Figure 10: Limited Access to Healthy Foods by Race/Ethnicity in New Orleans

Source: City Health Dashboard

United States Department of Agriculture Economic Research Service, https://www.ers.usda.gov/data-

products/food-access-research-atlas/documentation/ (accessed Oct. 12, 2018).

Likewise, food access is worse for low-income communities than for others. One reason for this

is that full-service grocery stores tend to locate in higher income areas, leaving low-income areas

more likely to be food deserts and/or food swamps. The term food desert, which has commonly

appeared in public health and food access literature, refers to a residential area with limited

access to affordable and nutritious food such as fruits, vegetables, and whole grains. Conversely,

the term food swamp refers to an area with an abundance of less healthy, energy-dense foods,

such as fast food and convenience stores, without similar or greater access to healthy foods.

Notably, these options are typically less expensive and quicker to obtain than healthier meals,

which often must be prepared.

According to the USDA, “This twist on the metaphor of a food

desert is particularly important for understanding high rates of obesity. The problem may not be

that healthy food is not accessible or that families do not have strategies to get to stores that offer

healthy options. Rather, the problem may be that, in some areas, less healthy food is much easier

to access.”

Food Access in New Orleans East, the Lower Ninth Ward, & Algiers/English Turn

Figure 11: Overlap of Low Income and Low Food Access in New Orleans

As noted, parts of New Orleans are underserved when it comes to full-line grocery stores. In

Figure 11, the orange area indicates where low-income census tracts are more than half a mile

from the nearest supermarket; the green indicates where they are more than one mile from the

United States Department of Agriculture Economic Research Service, https://www.ers.usda.gov/amber-

waves/2010/march/access-to-affordable-nutritious-food-is-limited-in-food-deserts/ (accessed Oct. 22, 2018).

Ibid.

nearest supermarket. As the map indicates, the intersection between low-income census tracts

and low access to healthy, nutritious food is most concentrated in parts of New Orleans East,

Algiers, and the Lower Ninth Ward.

New Orleans has an estimated population of 393,292.

New Orleans East, for example, consists

of 21% of the city’s total population and approximately 65% of the city’s total land area; yet,

only three full-line grocery stores operate there.

Table 9: New Orleans East Full-Service Grocery Stores

GROCERY STORE

ADDRESS

Wal-Mart #912

6000 Bullard Ave.

Winn Dixie #1439

9701 Chef Menteur Hwy.

Save-A-Lot

9999 Lake Forest Blvd.

Algiers and English Turn on the West Bank of the Mississippi River have just four (4) full-line

grocery stores.

Table 10: Algiers/English Turn Full-Service Grocery Stores

GROCERY STORE

ADDRESS

Rouses Market #36

4001 Gen. De Gaulle Dr.

Winn Dixie #1426

3008 Holiday Dr.

Walmart #1163

4001 Behrman Hwy.

Save-A-Lot

3640 Macarthur Blvd.

The Lower 9

Ward has no full-line grocery stores; however, neighboring St. Bernard Parish

does have several including Canseco’s (6723 St. Claude Avenue) and Walmart (8101 W. Judge

Perez Drive).

Entrance of Fresh Food in the Market & Purchasing Behaviors

Studies are generally mixed when it comes to the linkage between availability of fresh food and

overall health, including healthy weights and healthy diets among nearby residents. In addition,

the introduction of supermarkets into neighborhoods that were previously food deserts results in

inconsistent, and sometimes statistically insignificant findings. While presumably the entrance of

a grocery store into a new market would significantly elevate the purchasing of fresh fruits and

vegetables, and healthful foods in general, studies on this topic have generated mixed results.

Research has shown that consumers may prefer to shop at one grocery store over another, despite

having a longer trip, as shown in a 2014 Philadelphia study where only “one-quarter

(approximately 26%) of the residents adopted the new supermarket as their main store.” As

noted, lack of financial means may limit food access even for nearby residents. In summary,

2017 Population Estimate (as of July 1, 2017)

studies indicate that the availability of healthy food does not necessarily translate to the purchase

of healthy food.

 After a new neighborhood grocery store opened in Philadelphia, a study found that it

“moderately improved residents’ perceptions of food accessibility.” However, this

awareness did not translate to changes in reported fruit and vegetable intake or body

mass index (BMI).

 Researchers found that a new supermarket in a low-income, racially-isolated area of

Pittsburgh may improve residents’ health. Study results show fewer new diagnoses of

high cholesterol as well as a marginally less increase in diabetes prevalence after the

supermarket opened (compared to the control neighborhood).

 Another study in Pittsburgh shows the introduction of a new supermarket in a low-

income neighborhood can improve perceptions surrounding access to healthy food,

associated with regular shopping at the new supermarket.

Healthy Food Marketing Strategies

Similarly, other studies show that the provision of fresh foods in small neighborhood stores is not

proven effective enough to substantially change purchasing behaviors. In order to change

purchasing behaviors, stores must implement proven marketing strategies.

In “The Rationale behind Small Food Store Interventions in Low-Income Urban Neighborhoods:

Insights from New Orleans,” Tulane Prevention Research Center cites several studies that

provide evidence for a significant link between the in-store environment and purchasing

behavior.

“[I]n particular, changing shelf space has been shown to have significant effects…”

In an experimental study, researchers examined purchases following the doubling of shelf space

length of select fresh fruits and vegetable categories in four (4) supermarkets. The experiment

found that sales of hard fruits (e.g. apples, oranges, limes), soft fruits (e.g. pears, bananas,

pineapple, grapes), and cooking vegetables (e.g. eggplant, corn, potatoes, and squash) each

increased by 44, 49, and 59% respectively.” Other in-store marketing tactics that researchers

have highlighted include promotional advertising inside the store, “special” displays, and placing

particular items in prime locations. If done correctly, placement of items such as fresh produce in

these prime locations can significantly increase their purchase.

Cummins, Steven, Flint, Ellen, Matthews, Stephen A. “New Neighborhood Grocery Store Increased Awareness of

Food Access But Did Not Alter Dietary Habits or Obesity,” Health Affairs, Vol. 33, No. 2 (2014): 283-291.

Richardson, Andrea S. MPH, PHD., Ghosh-Dastidar, Madhumita PhD, Beckman, Robin MPH, Flórez, Karen R.

PhD, DeSantis, Amy PhD, Collins, Rebecca L. RhD, Dubowitz, Tamara ScD. “Can the introduction of a full-service

supermarket in a food desert improve residents’ economic status and health?” Annals of Epidemiology, 27 (2017):

771-776.

Bodor, J. Nicholas, Ulmer, Vanessa M., Dunaway, Lauren Futrell, Farley, Thomas A., Rose, Donald. Department

of Community Health Sciences, Tulane University School of Public Health and Tropical Medicine. “The Rationale

behind Small Food Store Interventions in Low-Income Urban Neighborhoods: Insights from New Orleans.” April

21, 2010.

Ibid.

Shelf Space

A 2009 study examined shelf space of fruits, vegetables, and snack foods across food stores of

varying sizes (small food stores, medium food stores, supermarkets, convenience stores, drug

stores, and liquor stores, though excluded general merchandise stores such as Walmart and small

box discount stores) in southern Louisiana and Los Angeles County. One finding that is

particularly relevant to the Small Box Retail Diversity study is that stores of all types, including

traditional, full-service grocery stores, devote more shelf space to unhealthy items than to

healthy items. In light of this finding, authors of the 2009 study encourage policymakers to

consider the following:

Policymakers seeking to improve health through dietary change or to reverse the obesity

epidemic have an interest in increasing access to fruits and vegetables. While this may be

translated into a desire to increase the number of food stores in low-income

neighborhoods, a policy to accomplish this could have unintended adverse effects if it

further increases the overabundance of unhealthy snack foods. Focusing only on

increasing the number of supermarkets could have this effect because supermarkets offer

more shelf space for unhealthy than healthy items. A better policy approach may be to

increase the number of food stores of any size that meet criteria for the healthfulness of

their mix of items.

Federal Nutrition Programs

Federal Nutrition Programs such as the Supplemental Assistance Program (SNAP) and Women,

Infant Children (WIC) play an important role in food access in food insecure neighborhoods,

especially low-income areas by providing additional funds for individuals and families to

purchase food. Research of cities that passed and implemented food policies to increase food

access, such as Minneapolis, utilized the guidelines and resources of WIC and SNAP require

vendors provide healthy food. To model a similar healthy foods policy in New Orleans and to

help define “healthful fresh foods,” the two programs and their presence in New Orleans are

detailed below.

SNAP

SNAP provides nutrition assistance to participants who qualify based on income. The program

provides funds commonly referred to as (EBT) Electronic Benefits Transfer funds. SNAP limits

the types of products that can be bought using EBT. These products are limited to foods that are

intended for at home consumption and not ready made meals bought ready to consume. The

foods that qualify for EBT purchases are broad and only exclude hot prepared meals, alcoholic

beverages, tobacco products, medicines, vitamins, and household products. Recipients can

purchase seeds intended to grow produce using SNAP benefits.

Thomas A. Farley, Janet Rice, J. Nicholas Bodor, Deborah A. Cohen, Ricky N. Bluthenthal, and Donald Rose,

“Measuring the Food Environment: Shelf Space of Fruits, Vegetables, and Snack Foods in Stores,” Journal of

Urban Health: Bulletin of the New York Academy of Medicine, Vol. 86, No. 5 (2009): 672-6821,

https://www.researchgate.net/publication/225416401_Measuring_the_Food_Environment_Shelf_Space_of_Fruits_

Vegetables_and_Snack_Foods_in_Stores (accessed Oct. 18, 2018).

SNAP is widely accepted throughout many New Orleans food retail stores and can be accepted

at qualifying food markets such as farmer’s markets. Approximately 351 retailers in New

Orleans accept SNAP benefits. These retailers include full-service grocery stores, convenience

stores, specialty grocery stores, retailers selling food items such as gas stations and pharmacies,

and area farmer’s markets. Small box discount retailers such as Family Dollar, Dollar General,

and Dollar Tree all accept SNAP locally.

Staple Foods

To qualify as a SNAP vendor, a vendor must meet one of two criteria: either stocking a

percentage of staple foods under Criterion A, or Criterion B which is a calculation of all sales for

the retailer minus the non-food sales, prepared foods, and accessory foods.

Staple food categories include fruits, or vegetables, meat, poultry or fish, dairy products, and

breads or cereals. These differing criteria allow for a wide variety of retailers to qualify for

SNAP benefits. Vendors qualifying under Criterion A are generally full-line grocery stores or

retailers who stock a wider variety of food. Three of the staple food categories are considered

“fresh foods” and require refrigeration. Vendors qualifying under Criterion B are generally

convenience stores, corner stores, and retail goods establishments, pharmacies, and gas stations

with accessory foods. Even restaurants selling some staple foods can qualify for SNAP based on

the Criterion B formula as long as the staple food sales equal the total gross retail sales after

taking the non-food sales, prepared/heated food sales, and accessory food sales out of the total

sales.

Figure 12: Chart, Criterion A

Source: USDA SNAP: https://fns-prod.azureedge.net/sites/default/files/snap/Retailer-Eligibility-Clarification-

Criterion-A-and-B.pdf

Figure 13: Chart, Criterion B

Source: USDA SNAP: https://fns-prod.azureedge.net/sites/default/files/snap/Retailer-Eligibility-Clarification-

Criterion-A-and-B.pdf

WIC

WIC is a federal nutrition program meant to supplement pregnant women, breastfeeding women,

non-breastfeeding postpartum women, infants (up to first birthday), and children (up to 5

birthday) who are nutritionally at risk. WIC provides additional nutritional assistance to

qualifying individuals based on income. If recipients already receive and qualify for SNAP,

Medicaid, or Temporary Assistance for Needy Families (TANF), then those individuals also

meet the eligibility requirements for WIC

Based on state data which shows all WIC retailers in Orleans Parish, no Family Dollar, Dollar

Tree, or Dollar General stores are certified WIC vendors. While SNAP benefits do have vendor

constraints to the types of foods that are available, WIC mandates more stringent types of food

that vendors must stock to qualify as WIC retailers, and which foods WIC recipients may

purchase. The foods approved by WIC were selected based on nutritional value and include

foods high in calcium, protein, iron, fiber, Vitamin A, Vitamin C, and Vitamin D.

WIC Vendor Requirements

The WIC program is managed by each state. Louisiana’s Department of Health reviews and

accepts vendor applications for WIC. To qualify as a WIC vendor, vendors must first meet the

requirements of the SNAP program and be a registered SNAP benefits vendor. WIC vendors

must have competitive prices that match up with similar retailers and must not have exorbitant

food costs in stores. Louisiana WIC allows both grocery retailers and convenience stores to

apply for WIC authorization, as long as those vendors meet the definition of “full-line grocery

store.” WIC Louisiana defines a “full-line” grocery store as: “a store that stocks, and has on hand

at all times at least: (1) 3 varieties of bread or tortillas with 5 or more units of each variety; (2) 4

https://www.fns.usda.gov/wic/about-wic-wic-glance

varieties of fresh fruits with 5 or more units of each variety; (3) 4 varieties of fresh vegetables

with 5 or more units of each variety; (4) 4 varieties of fresh or frozen meat, poultry or fish with 5

or more units of each variety; and (5) 2 varieties of rice with 6 or more units of each variety.

”

Vendors must apply to be an authorized WIC retailer, they are required to stock according to

requirements and must agree to have the stocked items in their stores at all times.

Figure 14: Infant Formula Minimum Stock Requirements by Peer Group

Source: Louisiana WIC Vendor Guide:

http://ldh.la.gov/assets/oph/nutrition/WIC/Jereld/2016VendorReauthorizationDocuments/LAWICVendorGuide.pdf

Figure 15: Non-Infant Formula Minimum Stock Requirements

Source: Louisiana WIC Vendor Guide:

http://ldh.la.gov/assets/oph/nutrition/WIC/Jereld/2016VendorReauthorizationDocuments/LAWICVendorGuide.pdf

Figure 16: Additional Minimum Stock Requirements for Vendors

Electing to Provide Homeless Food Package

Source: Louisiana WIC Vendor Guide:

http://ldh.la.gov/assets/oph/nutrition/WIC/Jereld/2016VendorReauthorizationDocuments/LAWICVendorGuide.pdf

The WIC stocking requirements eliminate many retailers in the New Orleans area as fresh foods,

produce, and infant formula are required stocking items. In talks with local grocers, infant

formula is an item retailers say is commonly shop-lifted from stores. New Orleans has

approximately 124 grocery stores throughout the city.

However, only 42 retailers in New

Orleans are qualified WIC vendors which accept WIC benefits. Of these retailers, only 14 are

large full-scale grocery stores with square footage over 5,000 square feet. Some of these WIC

vendors are smaller corner stores or convenience stores that are smaller in scale with some food

items. Though not on the same scale as a full grocery store, they still meet the requirements of

WIC’s definition of a “full-line grocery store.”

WIC Enforcement and Evaluation

The authorized state agencies for WIC do routine announced and unannounced visits to the

approved retailers to ensure vendors are complying with the regulations. In addition to checking

inventory, inspectors may also ask for records showing purchases made by WIC recipients and

additional data on WIC purchases. Any newly approved vendors must go through training to

receive WIC authorization. Vendors must then continue training every three years to comply.

WIC and SNAP Impacts in Louisiana

WIC stocking requirements in Louisiana could provide a guideline to encourage or enforce

retailers to stock healthier products. Minneapolis utilized the WIC guidelines in Minnesota

create their Staple Foods Ordinance. The infant formula requirement could be the deterrent that

keeps many grocers and food retailer in New Orleans from complying with WIC stocking

requirements. As stated earlier, meetings with local grocers stated that infant formula is an item

commonly shoplifted in stores and cuts into a grocer’s profits. Robert’s grocery stores do not

stock infant formula and are not WIC approved vendors. Additionally, not all Rouses grocery

stores are WIC vendors. Following the guidelines of WIC’s non-infant food stocking

requirements, similar to Minneapolis’ ordinance, could provide a guideline to encourage or

require healthier products. In addition to requiring a limited amount of fresh fruits and

vegetables, the guidelines could encourage healthier dried goods such as canned fish, whole

grain products (brown rice, bread, whole wheat pasta), and dried beans which can be easier to

stock and maintain floor area in a store.

Urban Agriculture

What is urban agriculture?

Urban agriculture can be defined as the growing, processing, and distribution of food through

The number of grocery store retailers in New Orleans comes from licensing data from the Department of

Revenue. Not all grocery retailers get licensed as grocery stores and retailers who sell food were added to this list.

Hennepin County in Minnesota, which includes Minneapolis, has its own WIC stocking requirements which are

the same as the rest of the state, but require slightly larger volumes of a produce be stocked based on large

populations. Retail food vendors with a population of 250,000 or more residents are required to follow these specific

stocking guidelines.

plant cultivation and raising livestock within cities for feeding local populations.

With the

increase of urban food deserts in many part of the USA and the world, urban agriculture is

providing a way to complement urban food needs, and to achieve food security and improved

nutrition.

Tulsa Healthy Neighborhood Overlay Regulations pertaining to urban agriculture

As part of the case studies provided below in Section G of this report, staff looked into the

regulations recently put in place in Tulsa, Oklahoma. These regulations are meant to restrict

“small box discount stores” in a section of the city where the proliferation of such stores is said

to “leave no room – or incentive – for traditional supermarkets to build in the area,” which,

according to Tulsa’s District 1 Councilor, “helps explain why north Tulsa has become a food

desert.”

A “Healthy Neighborhood Overlay District” was created to address these concerns, which are

specific to this section of the city. The purpose and intent statement of the Tulsa’s Healthy

Neighborhood Overlay not only includes that the overlay regulations are intended to avoid and

reduce overconcentration of the small box discount stores within the boundary of the overlay,

(this is discussed in Section G of this report), but also that they are intended to encourage and

streamline grassroots access to fresh meats, fruits and vegetables, allow and encourage a

community-based approach to distributing and purchasing these fresh foods, and encourage a

greater diversity of purchasing options within the area.

A subsection of the article regulating the Healthy Neighborhood Overlay District pertains

specifically to community gardens. While typically, on-site sale of community garden products is

prohibited unless permitted by the underlying zoning district, that prohibition is lifted for

community gardens located in all zoning districts within the boundary of the overlay district. A

detailed list of use standards apply to community gardens, which is applicable throughout the

city. It includes restrictions on hours of operations, use of motorized equipment, on-site trash

storage, garden waste drainage, signage, notice to abutting landowners, and other operational

standards.

Current regulations of agriculture uses in the City

The City of New Orleans has taken steps to remove barriers to agriculture when creating its

current Comprehensive Zoning Ordinance. The definition for agriculture in the CZO is as

follows:

Goldstein, M., “Urban agriculture: a sixteen city survey of urban agriculture practices across the country,” 2011

and Hendrickson M. K., & Porth M., “Urban Agriculture —Best Practices and Possibilities,” University Of Missouri

Division of Applied Social Sciences, 2012, retrieved from

https://sustainabledevelopment.un.org/content/documents/5764Urban%20Agriculture.pdf (accessed October 10,

2018)

Section 40.090 of Tulsa Zoning Code

“Agriculture. Land on which crops are grown and/or livestock are raised for sale,

commercial use, personal food production, donation, or educational purposes.”

Permitted and Conditional Uses (Article 7 to 17)

Below is a summary of the use tables found in Articles 7 through 17 of the CZO that show the

zoning districts where Agriculture is permitted (“P”), conditional (“C”), and a prohibited use

(blank space). The Agriculture use is divided into two sub-categories “Agriculture – No

Livestock” and “Agriculture – With Livestock”. Agriculture without livestock is more widely

permitted in the city than agriculture with livestock. Agriculture without livestock is permitted

by right in almost all zoning districts except Natural Areas Districts, General Planned

Development District (GDP), Lake Area General Commercial District (S-LC), General

Commercial Districts (C-1), Auto-Oriented Commercial District (C-2), Heavy Commercial

Districts (C-3), Medical Service Districts (MS), and all Centers for Industry Districts.

Agriculture with livestock is often a conditional use, except in Rural Residential Estate Districts

(R-RE), in which it is permitted by right, and in Historic Core Districts and some Commercial

Centers Districts, in which it is prohibited. While the New Orleans CZO does not include food

processing as part of the definition of the agriculture use, urban agriculture or urban farming

generally refers to the growing, processing and distributing of food in and around cities. For that

reason, staff included Food Processing in the table below for reference. Food processing is

classified as an industrial use in the CZO, while agriculture is classified as an open space use.

Table 11: Permitted and Conditional Uses Agriculture – No Livestock,

Agriculture – With Livestock, and Food Processing

ZONING DISTRICTS

AGRICULTURE –

NO LIVESTOCK

AGRICULTURE –

WITH LIVESTOCK

FOOD

PROCESSING

Open Space Districts

OS-N Neighborhood Open

Space

OS-G Greenway Open Space

OS-R Regional Open Space

NA Natural Areas

GDP General Planned

Development

C only in PD 9

and 10

Rural Development Districts

R-RE Rural Residential Estate

M-MU Maritime Mixed-Use

Historic Core Residential

Districts

Historic Core Non-Residential

Districts

P in HM-MU only

Historic Urban Residential

Districts

Historic Urban Non-

Residential Districts

C in HU-MU only

Suburban Residential Districts

Suburban Non-Residential

Districts

P (except in S-LC)

C (except in S-LC)

Commercial Centers &

Institutional Campus Districts

P (except in C-1,

C-2, C-3 and MS)

C (except in C-1,

C-2, C-3 and MS)

P (except in EC,

MC, MS and LS)

and C in MU-1

Centers for Industry Districts

Use Standards (Article 20)

The use standards for Agriculture are found in Article 20, Section 20.3.C and listed below:

20.3.C AGRICULTURE

20.3.C.1 ADDITIONAL BULK AND YARD REGULATIONS

All structures and other improvements are subject to the bulk and yard regulations of

the district, except as provided below:

a. There are no yard requirements for the planting of crops.

b. All structures used for the keeping of livestock shall be located a minimum of

twenty-five (25) feet from any lot line. This does not apply to apiaries,

chicken coops, pigeon coops, and aquaponic structures, which shall meet the

accessory structure requirements of Section 21.6.

20.3.C.2 SOIL TESTING

a. Prior to the establishment of an agricultural use, soil testing from an

accredited analytical laboratory is required to measure nutrients, heavy metals

and any other harmful contaminants that may be present. The laboratory shall

follow the testing protocol established by the Louisiana State University

Agricultural Center. The soil samples shall be representative samplings from

the entire portion of the site to be used for agricultural purposes. The

applicant shall provide a written report showing the results of such testing.

b. Soil testing is not required for sites already in agricultural use, as of the

effective date of this Ordinance.

c. Alternatively, the operator may use raised planter boxes for all plants, in which

case soil testing is not required. Raised planters shall have a minimum height

of one (1) foot, constructed of materials that will not contaminate the crops or

soil, and have an impermeable barrier between on-site and imported soil.

20.3.C.3 FOOD PREPARATION, PROCESSING, AND PACKAGING

a. No food or other products of any plants or livestock may be prepared,

processed, or packaged in any residential district, except in the R-RE District.

However, the canning of plants or plant products is permitted as part of any

agricultural use.

b. Food may be prepared, processed, or packaged at an agricultural use located in

any non-residential district in which food processing is a permitted use.

c. In any non-residential district in which food processing is classified as a

conditional use, a property owner may apply for a conditional use to permit

the preparation, processing, or packaging of food or other products of any

plants or livestock raised on the agricultural use.

20.3.C.4 OPERATIONAL STANDARDS

a. Dead plants, produce, and trash not used for composting or other gardening

functions shall be removed from the site within forty-eight (48) hours.

b. Except in the R-RE District and any Centers of Industry District, mechanical

equipment may only be used during daylight hours.

c. Regulated materials, such as chemicals, fertilizers, and toxins, shall not drain

onto adjacent properties, into waterways, or onto public rights-of-way.

Chemicals and other flammable materials shall be disposed of in accordance

with federal and state requirements. If stored on-site, such chemicals or

flammable materials shall be kept in waterproof containers in a locked

structure when unattended.

d. A sign containing the contact information for the agricultural use operator shall

be posted at or within five (5) feet of the front lot line consistent with required

setbacks. For any lots that constitute a portion of an agricultural use as a

whole, but are not contiguous with the lot on which on which the owner or

licensed operator of the farm resides, or where any lot in agricultural use does

not include a resident or licensed operator of the farm present daily, an

additional sign is required. Such signs shall not exceed a height of seven (7)

feet and shall not exceed one (1) square foot in area.

20.3.C.5 PRESENCE OF ON-SITE LICENSED OPERATOR

An agricultural use shall be located on a single lot of record where a resident or

licensed operator of the agricultural use is present daily, with the following exception.

In the Historic Urban Neighborhood Districts and MU-1 and MU-2 Districts, an

agricultural use, operated as a whole, may be multiple non-contiguous lots, provided

that all lots are located within three-hundred (300) feet of the nearest point of the lot

where the resident resides or licensed operator of the agricultural use is present daily.

All lots constituting the agricultural use shall be indicated on any permit or license for

the agricultural use.

20.3.C.6 RETAIL SALES

Retail sales for an agricultural use are permitted at farm stands within the Open Space

Districts, Rural Development Districts, and any non-residential district, subject to the

following standards:

a. Farm stands shall conform to the provisions of Section 21.6.

b. Retail sales are limited to the following:

i. Crops grown and/or livestock raised on the farm where the farm stand is

located.

ii. Other unprocessed food products, or home processed food products such as

jams, jellies, pickles, sauces, or baked goods created on the farm where the

farm stand is located.

20.3.C.7 STANDARDS FOR LIVESTOCK

20.3.C.7.a GENERAL REQUIREMENTS

i. A minimum site size of one (1) acre is required to keep livestock.

ii. The maximum number of the following types of livestock animals that

may be permitted on an agricultural use shall be in accordance with the

standards provided below in Table 20-1: Minimum Lot Area for

Livestock. As part of the conditional use approval, these standards will be

used as the basis for establishing a standard for any animal not included in

the table.

Figure 17: Minimum Lot Area for Livestock

Table 20-1: Minimum Lot Area for Livestock

TYPE OF LIVESTOCK

MINIMUM LOT AREA PER ANIMAL

Horse, mule, cow, or llama

43,560 square feet (1 acre)

Goat or sheep

14,520 square feet (1/3 acre)

Swine

4,356 square feet (1/10 acre)

Rabbit

50 square feet

Duck or other fowl (excluding

chickens)

50 square feet

More than 6 chickens

50 square feet per chicken after first 6

iii. All livestock shall be kept so as not to cause any adverse impact,

including but not limited to odor, noise, drainage, or pest infestation, on

any other property. The presence of any such impact constitutes a

violation of this Ordinance and a public nuisance that the Director of the

Department of Safety and Permits and/or the Director of the Department

of Health may require to be abated at the expense of the owner of the

livestock and/or the owner of the property on which the livestock is kept.

iv. All livestock shall be kept in accordance with the provisions of Chapter 18

of the City Code.

20.3.C.7.b ADDITIONAL INFORMATION FOR CONDITIONAL USE

APPLICATIONS

Any application for a conditional use to permit livestock shall indicate the

following information, in addition to all other information required as part of the

conditional use application:

i. The location, size, height, and materials of all structures, shelters,

enclosures, and any other improvements proposed to be provided for the

keeping, raising, care, maintenance, and/or other activities associated with

the livestock.

ii. The maximum number of each type of animal proposed to be kept at the

farm for any period of time.

iii. The storage and disposal of animal waste.

20.3.C.7.c ENCLOSURE AND SHELTER

i. All livestock shall be kept within fences, corrals, barns, enclosures, or

pens.

ii. All livestock shall be provided sanitary and sound shelter, in accordance

with Chapter 18 of the City Code.

iii. All agricultural uses with livestock shall provide an appropriate method of

protecting livestock in the event of flooding.

iv. Agriculture use operators may include office and meeting spaces within

structures on lots with an agriculture use, so long as such structures are

ancillary to the agriculture operation and not the primary function of the

land, and must be less than 20% of the entire land space occupied by the

agriculture operation.

Temporary Uses (Article 21)

While farm stands are not allowed in residential districts, farmers market are allowed in any

zoning districts at a maximum of one event per week per premise from 7 am to 8 pm. The sale of

food for consumption on or off the premises requires licensing by the City and approval by the

Department of Health.

Accessory Structures (Article 21)

According to Section 21.6.A, no detached accessory structure may be constructed prior to

construction of the principal building to which it is accessory. Therefore a lot that is being used

for agriculture use only, and does not contain any principal structure, could not contain any

structure accessory to that use such as sheds, chicken coops or other ancillary structure

associated with agriculture. The Department of Safety and Permits has interpreted the zoning

ordinance as such in the past.

Small Box Discount Stores & Public Health Impacts

Childhood Obesity

Small box discount stores are typically located in and serve low-income communities. These

communities statistically experience worse health outcomes than middle- or high-income

populations. As noted, obesity and its related diseases have risen dramatically over the last

several decades, which is caused in part by consumption of excessive amounts of calorie-dense

foods. Most small box discount stores sell largely calorie-dense foods without also providing

healthier options such as fresh produce. A hypothesis is that these stores may contribute to

increased rates of obesity.

A 2015 study examined whether “dollar stores” have an impact on childhood obesity. While

these stores do typically provide more unhealthy options and less healthy options than traditional

grocery stores, they do stock certain healthier staple foods on their shelves, such as dried beans

and oatmeal. As the study discusses, “… when residents have ready access to dollar stores, they

may be in a better position to procure supplies for at-home meals. These meals, even if not

perfectly balanced, are likely to be healthier and lower-calorie than the fare found on fast-food

value menus.”

Because areas with denser concentrations of small box discount stores also tend

to have higher childhood obesity rates, study authors considered several recommendations for

how using these stores could contribute in positive ways to the health of the community.

 Educational interventions about how to shop for healthy items at small box discount

stores;

 Community incentives for dollar stores that sell healthier foods; and

 Marketing/public relations campaigns for “health on a budget.”

In summary, the study found no causal link between childhood obesity and the existence of small

box retail stores in their communities. In addition, it should be restated that traditional grocery

stores also stock many unhealthy items.

Hazardous Chemical Regulation

As noted previously, small box discount stores traditionally serve low-income populations and

communities of color, targeting shoppers in households making $40,000 a year or less who live

in food deserts. Forty percent of small box discount store customers are on some sort of public

assistance.

Unfortunately, these same communities are most at-risk of exposure to unhealthy

and toxic environments. Particularly in light of the 2008 economic recession, small box discount

stores have begun attracting more middle-income customers, widening their market.

Health and environmental activists, including the group Campaign for Healthier Solutions based

in San Diego, have begun holding discount stores accountable for the products they sell. Despite

minimal federal and state requirements, a 2015 report identified toxic chemicals in the four

largest chains (Dollar Tree, Family Dollar, Dollar General, and 99 Cents Only) following a

testing of 164 products.

The most illuminating finding revealed that 71% of the products

tested from each chain contained one or more hazardous chemicals above concern levels.

number chronic diseases and health conditions are associated with chemical exposure, including

attention-deficit/hyperactivity disorder (ADHD), autism spectrum disorders, leukemia and

primary brain cancer in children, asthma in children, major birth defects, and breast cancer. The

report goes on to say that health issues such as asthma and learning disabilities have been linked

Andreas C. Drichoutis, Rodolfo M. Nayga, Jr., Heather L. Rouse, and Michael R. Thomsen, “Food environment

and childhood obesity: the effect of dollar stores,” Health Economics Review, Vol. 5, No. 37 (2015).

Ibid.

Campaign for Healthier Solutions, “A Day Late and a Dollar Short,” Coming Clean, February 2015.

At this time, 99 Cents Only has no locations in New Orleans.

Products were tested in California, Kentucky, Maine, New Mexico, Texas, and West Virginia.

Products were tested for antimony, arsenic, bromine, chlorine, lead, mercury, and tin. Products determined to

contain polyvinyl chloride plastic (PVC or vinyl) were further tested for phthalate and non-phthalate plasticizers.

Campaign for Healthier Solutions, “A Day Late and a Dollar Short.”

to lead poisoning, and heart disease to arsenic exposure. Further, the economic costs of treating

these diseases is both astronomical and largely preventable.

The issue of toxic chemical exposure extends beyond discount stores. Safeway, Costco, CVS,

Target, Walgreens, Walmart, Sony, Mattel, and Johnson & Johnson have all been subject to fines

for failure to properly manage known hazardous chemicals in their products. Unknown

hazardous chemicals are another matter altogether. Since U.S. Congress passed the Toxic

Substances Control Act (TSCA) in 1976, only about 200 out of 80,000 chemicals used in

consumer products have been fully screened; only five (5) chemicals have been restricted, and

20% of these 80,000 chemicals are confidential, allowable under TSCA.

In response to consumer demands, many competitors such as Target and Walmart have adopted

comprehensive chemical policies that disclose chemicals or use safer alternatives. Though the

major dollar store chains have taken actions to remove some harmful products from their

shelves, they have yet to adopt comprehensive chemical management policies. Dollar Tree, for

example, has made claims that its practices go beyond the minimum federal requirements.

According to its 2013 Sustainability Report, Dollar Tree advises vendors to “not use heavy

metals in any products supplied to Dollar Tree.” In addition, the chain tests for phthalates and

PVC plastic, and has advised its suppliers to cease using PVC in raingear as well as BPA in

infant drinking containers.

Family Dollar has declared that they have “established a higher set

of requirements than required by the 2008 Consumer Products Safety Improvement Act.

In June 2018, Dollar Tree’s CEO announced that the company had requested that its suppliers

reduce and ultimately eliminate 17 highly toxic chemicals by 2020. This action came in response

to concerns over several hazardous chemicals in Dollar Tree’s products. Bisphenol-A, commonly

known as BPA, has been found in the liners of canned food purchased from Dollar Tree. BPA is

an endocrine-disrupting chemical known to contribute to breast and prostate cancer, type-2

diabetes, obesity, and asthma, among other health problems. Per/polyfluoroalkyl substances

(PFAS), also known to be endocrine-disruptors linked to a number of health issues, have been

discovered in microwave popcorn bags at Dollar Tree stores. Arsenic, which has been associated

with numerous types of cancer, developmental issues, diabetes, pulmonary disease, and

cardiovascular disease, has been found in infant rice cereal sold by Dollar Tree.

Despite these companies moving in the right direction, the Campaign for Healthier Solutions is

demanding comprehensive policies to identify and ultimately phase out harmful chemicals.

In summary, while many major small box discount store companies have yet to implement

comprehensive chemical management policies, issues with hazardous chemicals in products is

not limited to these types of stores. As noted, many well-known retailers have experienced issues

with hazardous chemicals present in their products—and paid the price. In order to be more

effective, the federal government should strengthen existing laws that regulate hazardous and

potentially hazardous chemicals across all sectors, including retail.

Ibid.

H. Case Studies

Motion (As Corrected) No. M-18-256 directs the City Planning Commission to research

similarly situated cities, like Tulsa, Oklahoma, “to determine appropriate standards to govern this

use and any necessary restrictions to assist in curbing the proliferation of small box discount

stores in New Orleans that fail to offer fresh fruits and vegetables.”

The CPC staff examined several cities with policies designed to restrict and/or regulate small box

discount stores and other related policies put in place to improve health outcomes based on

healthy food access. In addition, staff examined existing policies in New Orleans that can

contribute to improved healthy food access in communities with concentrations of small box

discount stores.

Tulsa, Oklahoma

Tulsa, Oklahoma established regulations on discount retailers, by targeting these retailers

through a specific “discount retailer” definition. Demand for stricter regulations of small box

discount stores came out of the need to address the lack of full-service grocery stores in the

Northern Tulsa area, a USDA-identified food desert, which exhibited the largest concentration of

discount retailers. Concerned residents, as well as City Councilor Vanessa Hall-Harper, cited a

high concentration of discount stores. They argued these stores offer limited food options, take

away business from full-line grocery stores, and discourage other retailers from opening stores,

furthering the food insecurity of the affected communities.

Small Box Discount Moratorium

The first step in limiting these discount stores was a Tulsa City Council-approved moratorium to

halt applications for new discount stores in North Tulsa where high concentrations of existing

stores already existed. The moratorium blocked “Small Box Discount Stores” from receiving

permits to open less than 5,280 feet from any other small box discount store. The moratorium

was set at 180 days from September 25, 2017 and eventually was replaced with the Tulsa

Healthy Neighborhoods Overlay in April, 2018.

Tulsa Healthy Neighborhoods Overlay

The Tulsa Metropolitan Area Planning Commission heard the proposal for the Healthy

Neighborhoods Overlay first. Staff for the Indian Nations Council of Governments (INCOG),

Land Development Services Division wrote the proposed regulations for the Tulsa Metropolitan

Area Planning Commission. Staff recommended approval of the overlay to limit the

development of discount retailers, as well as to incentivize and promote fresh food

recommendations. At the public hearing, members of the community commented on the need for

more grocery stores within the overlay district and requested language to bring in more grocery

stores. The Planning Commission did not vote to approve the overlay, stating that theft and

safety keep stores from opening in the area and that over time the market will determine whether

grocery stores will open in a particular area. Commissioners also stated that limiting

development in North Tulsa would be too strict and would decrease sales tax revenue for the

City. Additional comments from commissioners included that convenience stores have just as

much of a negative impact on the neighborhoods and an ordinance aimed at limiting those

developments could play a similar role.

Ultimately, the Tulsa City Council, to whom the Tulsa Metropolitan Area Planning Commission

forwarded its recommendation for denial, voted to approve the Tulsa Healthy Neighborhoods

Overlay and accept staff recommendations. The overlay replaced the 180 day moratorium on

discount retail and went into effect in April, 2018. While no longer an outright ban on the

retailers, the overlay works to space them and provides more incentives for food stores with

healthier options.

Zoning Code Changes

The Healthy Neighborhoods Overlay District included several modifications to the zoning

ordinance, with, among things, a new definition for small box discount store. New use standards

for discount retailers also amended the zoning ordinance.

Tulsa CZO Language:

Section 20.060 HNO, Healthy Neighborhoods Overlay

1. Purpose and Intent

The regulations of this section are established for properties located within the boundaries of

the healthy neighborhoods overlay (HNO) district. The purpose of the healthy

neighborhoods overlay (HNO) is to modify and supplement regulations in a specified

area where there is a desire for greater diversity in retail options and convenient

access to fresh meats, fruit and vegetables. These regulations are intended to:

a. Avoid and reduce over-concentration of small box discount stores in the

area.

b. Encourage and streamline grassroots access to fresh meats, fruits and

vegetables

c. Encourage a greater diversity of retail activity and purchasing options

within the area.

d. Allow for a more community-based approach to distributing and

purchasing fresh meats, fruits and vegetables in specified area.

e. Promote investment and development in a community where change is

desired.

20.060-B Applicability

Except as otherwise expressly states, the regulations of this section apply within the

boundaries of the HNO district to all new uses and structures and all building alterations

and site modifications that require a building permits.

20.060-C Exemptions

a. Uses that contain a prescriptions pharmacy or offer for sale gasoline or diesel fuel are

exempt from the dispersal standards established in Section 20.060-D.

b. Uses that dedicate a minimum floor area of 500 square feet to the sale of fresh meat,

fruits or vegetables are exempt from the dispersal standards established in Section

20.060-D.

c. Grocery Stores are exempt from the dispersal standards established in Section 20.060-D.

20.060-D Dispersal Standards for Small Box Discount Stores

To avoid over-concentration, a small box discount store, as defined in Section 35.050-LF,

within the overlay area must be separated from another small box discount store within or

outside the overlay area by a minimum distance of 5,280 feet. The required separation

distance must be measured in a straight line from the nearest point on the lot line of the

other property occupied by a small box discount store. The separation distance

requirements of this section may be reduced if approved through the special exception

approval process.

20.060-E Community Gardens

Community gardens within the boundaries of the of the HNO district are governed by the

regulations of Section 40.090, unless expressly stated by this section. On-site sale of

community garden products is permitted by right in all zoning districts within the

boundaries of the HNO district.

20.060-F Grocery Store

The minimum parking ratios established in Section 55.020, Table 55-1 for a Grocery

Store use are reduced by 50% in the HNO district.

20.060-G Nonconformities

Nonconformities that exist within the HNO district are governed by the regulations of

Chapter 80.

In addition to restrictions put on small box discount stores, Tulsa’s HNO district provides

incentives to create a larger diversity of retailers that promote healthier food options. Incentives

meant to encourage the development of full-line grocery stores within the overlay include

parking requirement alleviations. Community gardens within the overlay are also allowed to sell

produce from gardens within all zoning districts in the overlay.

Tulsa CZO Definitions

Tulsa planners created a definition for small box discount store to differentiate this type of retail

from the retail sales of convenience goods, consumer shopping goods, building supplies and

equipment, and grocery stores. To be sure that small box discount store regulations would not

include grocery stores, Tulsa also created a definition for grocery store.

35.050-L Retail Sales

Uses involving the sale, lease or rental of new or used goods to the ultimate consumer. Specific

retail use types include the following:

Convenience Goods

Retail sales uses that sell or otherwise provide (1) sundry goods; (2) products for

personal grooming and for the day-to-day maintenance of personal health or (3) food

or beverages for off-premise consumption, retail bakeries and similar uses that

provide incidental and accessory foods and beverage service as part of their primary

retail sales business. Typical uses include convenience stores, drug stores, specialty

food stores, wine or liquor stores, gift shops, newsstands, florists and tobacco stores.

Does not include small box discount stores or grocery stores.

Consumer Shopping Goods

Retail sales uses that sell or otherwise provide wearing apparel, fashion accessories,

furniture, household appliances and similar consumer goods, large and small,

functional and decorative, for use, entertainment, comfort or aesthetics. Typical uses

include clothing stores, department stores, appliance stores, TV and electronic stores,

bike shops, book stores, costume rental stores, stationary stores, art galleries, hobby

shops, furniture stores, pet stores and pet supply stores, shoe stores, antique shops,

secondhand stores, record stores, toy stores, sporting goods stores, variety stores,

video stores, musical instrument stores, medical supplies, office supplies and office

furnishing stores and wig shops. Does not include small box discount stores or

grocery stores.

Building Supplies and Equipment

Retail sales uses that sell or otherwise provide goods to repair, maintain or visually

enhance a structure or premises. Typical uses include hardware stores, home

improvement stores, paint and wallpaper supply stores and garden supply stores.

Small Box Discount Store

Retail sales uses with floor area less than 12,000 square feet that offer for sale a

combination and variety of convenience shopping goods and consumer shopping

goods; and continuously offer a majority of the items in their inventory for sale at a

price less than $10.00 per item.

Grocery Store

Retail sales uses that sell or otherwise provide assorted goods; products for personal

grooming and for the day-to-day maintenance of personal health; and that sell food

and beverages for off-premise consumption; and that have a minimum floor area of

500 square feet dedicated to the sale of fresh meat, fruits and vegetables. A principal

use Grocery Store may include an accessory use restaurant or dining area for on-

premises consumption of food and beverage items.

The new definition of small box discount stores enables the zoning to regulate them separately.

This use varies from the other retail definitions in several ways, including the discount nature of

their pricing in which a majority of items are priced under $10.00. Building supplies, equipment

stores, and grocery stores are not captured by this definition as they supply specific items such as

hardware and building materials. Stores are not included if they provide 500 square feet of floor

area to the sale of fresh meat, fruits and vegetables. The definition does not include any specifics

of the “fresh” category beyond listing the meats, fruits and vegetable categories. In addition to

targeting the price of consumer goods, the small box discount store also targets the square

footage of these stores by capturing retailers with less than 12,000 square feet in area. The

consumer shopping goods definition provides a larger variety of items and includes some

specialty retailers which focus on a particular category of consumer goods. Land use patterns

within Tulsa generally do not include corner commercial stores, and convenience stores are

usually attached to a gas station, keeping them from being included in the square footage and

pricing distinction.

Issues

Since the initial moratorium went into effect, no small box discount stores have expanded their

retail offerings to include fresh foods to bring them into the “grocery” definition, which would

include 500 square feet of fresh foods. Small box discount retailers are continuing to open up in

Tulsa, including two just outside of the overlay’s boundary, indicating that these retailers are

continuing to expand and are working around the boundaries. Nothing in the zoning code

prevents these retailers from opening just outside of the overlay. Based on conversations with

city planners and Councilmember Vanessa Hall-Harper, there has been no legal pushback on

these measures to-date. In addition, no applications for small box discount stores within the

overlay have been submitted since the regulations went into effect. The permitting office would

enforce these definitions by asking questions of new retail uses within the overlay.

Tulsa’s Food Desert Task Force

Similar to the initiative taking place in New Orleans, a Tulsa-based non-profit, the Healthy

Community Store Initiative helps provide fresh foods to corner and convenience stores

throughout North Tulsa and expand fresh foods access in the city’s food deserts. Started in 2010,

the initiative works with local farmers and retailers to harvest excess food surplus to bring to the

local food bank. Hands to Harvest partners with local farmers, grocery stores, and food services

to harvest excess food and distribute to the local food bank. Part of the initiative includes the

R&G Family Grocer, a mobile grocery store on a 36-foot long horse trailer converted to grocery

store.

The truck travels throughout the Northern Tulsa area to different scheduled stops

providing better food access within food desert defined areas. The mobile truck participates in

the Double Up Oklahoma (DUO) program which doubles SNAP benefits when used at

participating food retailers to purchase up to $20 worth of fresh fruits and vegetables.

The

DUO program is also offered at participating farmer’s markets throughout Oklahoma.

Analysis

While still new, the Tulsa Healthy Neighborhoods Overlay District provides a zoning and land

use regulation to limit small box discount stores. The new regulations can discourage and

prevent discount retail stores from opening new locations unless they provide 500 square feet of

fresh foods sales area. However, several discount stores in North Tulsa have opened just outside

of the overlay, effectively bypassing the distance restriction. The distance restriction provided in

the use standards prevents any new discount store from opening within 5,280 feet from another

discount store. If a retailer does not propose a location within the overlay, a discount retailer

could potentially continue to open new stores just outside of the boundary which may still impact

the community within the overlay and create another high concentration area of discount retailers

just outside of the overlay. A city or county-wide distance requirement from each discount

retailer could prevent stores from skirting around this regulation.

At this point, Tulsa has not received applications for any new small box discount store within the

Overlay and has therefore not gone through a review process. One issue that may come to light is

the fact that fresh food is not specifically defined. Specifically, “fresh meat, fruits or vegetables”

does not specify whether this food can be frozen.

Kansas City, Kansas

In 2016, following public outcry concerning the maintenance and upkeep of existing discount

retail stores, Kansas City restricted small box discount stores by requiring a special use permit

for small, discount dollar stores. The Kansas City Urban Planning & Land Use department was

tasked with reviewing an ordinance to limit the concentration of these stores. As part of the

proposal, staff introduced a new definition to the zoning code to define “dollar retail store.”

Proposed Language

The ordinance directed Kansas City’s Urban Planning & Land Use department to study

limitations to dollar retail stores, including creating measures to define their use, similar to the

motion directing the New Orleans City Planning Commission staff to define and regulate

discount retailers.

Sec. 27-340. – Definitions

Dollar retail stores means a store with a wide variety of merchandise for sale of five dollars or

less, limited fresh produce, and buildings of less than 15,000 square feet. Examples include but

http://www.tulsarealgoodfood.org/rgfamilygrocers

https://csctulsa.org/double-up-oklahoma/

are not limited to Family Dollar, Dollar General, Dollar Tree, 99 Cent Deals, Five Below, dime

stores, or 5 & dime stores.

Sec. 27-593. – Allowable special uses.

b) The following uses are permitted only on approval of a special use permit regardless of

the zoning district of the proposed location:

(21) Dollar retail stores only in C-2 general business district, C-3 commercial district, M-

1 light industrial and industrial park district, M-2 general industrial district, and

M-3 heavy industrial district subject to the following criteria:

a. Separation Requirements

1. No dollar retail store shall be located within 10,000 feet of any

other dollar store or within 200 feet of any property used primarily

for a single-family residence, a two-family residence, a town

home, or any apartment building. The separation distances shall be

measured from property line of the dollar retail store to the

property line of the property containing the residential use. This

separation provision shall not apply to any dollar store that can

demonstrate to the Unified Government that they were in operation

at the location requested in the license application prior to the

effective date of this article, and that they have operated

continuously under the same name since that time.

b. Signage

1. Following all permanent sign requirements under section 27-

727.

c. Façade, Landscaping, and Screening

1. All commercial design guidelines must be met for all facades

including, but not limited to, the creation of quality development

with respect to site planning, architectural design and landscaping.

2. Commercial uses in industrial district shall be subject to

commercial design guidelines.

Zoning Code Amendments

Kansas City included a new definition that targets both the price of the merchandise at these

stores, items for $5 or less, the lack of fresh produce, and building sizes less than 15,000 square

feet. The definition also calls out dollar retailers by name. A spacing requirement of at least

10,000 feet between stores is included within the new regulations. Similar to a conditional use, a

special use permit goes before the City Planning Commission with a recommendation from a

Unified Government staff planner. At the time of the ordinance, Wyandotte County, the county

within Kansas City, Kansas, had approximately 20 discount dollar stores which included Family,

Dollar General, and Dollar Tree.

Analysis

The Kansas City policy change predates the Tulsa Healthy Neighborhoods Overlay. The City

Planning Commission voted to approve staff recommendations, and the new zoning language has

been in place since April 2016.

At the time that the ordinance passed, two dollar stores were in the process of opening within

close proximity to each other, which would not be allowed under the current regulations, and

have since opened. Dollar retail stores can still open, provided they meet the distance

requirement and go through the special use permit process.

Minneapolis, Minnesota

Staple Foods Ordinance

2008 Ordinance

Minneapolis’ Staple Foods Ordinance, originally implemented in 2008, is the first of its kind in

the United States. Created to address poor food access, particularly in low-income areas, the

Staple Foods Ordinance identified specific “staple” foods and required any store licensed as a

grocery store to stock these items. The ordinance applied not only to new but also existing stores.

The 2008 ordinance outlined four categories of staple foods—dairy, bread or cereal, meat,

poultry, fish, or vegetable proteins, and fresh fruits and vegetables.

In Minneapolis, licensed

grocery stores may include gas stations, corner stores, dollar stores, pharmacies, and any other

store that sells food for off-premises or home consumption.

This initial ordinance had a low compliance rate of 28%. Several issues limited its success. The

language of the ordinance was vague; it allowed for significant exemptions from the

requirements. The City of Minneapolis had little enforcement ability and stores needed

additional support to help them adapt to the policy changes.

To address these issues, the Minneapolis Health Department (MHD) implemented a Healthy

Corner Store Program, a voluntary initiative which provided assistance to store owners with the

goal of Staple Foods compliance.

2015 Amended Ordinance

Realizing that policy changes were necessary to adequately address the weaknesses of the

original ordinance, the City amended the Staple Foods Ordinance in 2014, and it went into effect

on April 1, 2015. Based on the Special Supplemental Nutrition Program for Women, Infants, and

Children (WIC), the amended Staple Foods Ordinance increases the number of staple foods

categories to ten, setting minimum variety and quantity amounts for food items.

These revised

These categories were based on the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program

(SNAP) requirements in place at the time.

Office of Disease Prevention and Health Promotion, Counting Carrots in Corner Stores: The Minneapolis Staple

Foods Ordinance: A Law and Health Policy Project Bright Spot, https://www.healthypeople.gov/2020/law-and-

health-policy/bright-spot/counting-carrots-in-corner-stores-the-minneapolis-staple (accessed Sept. 28, 2018).

The Women, Infants & Children (WIC) Program has specific requirements for the state of Minnesota, which the

Minneapolis Health Department modified to better address community needs.

categories emphasize healthy foods, a policy change from the original Staple Foods Ordinance,

which focused on food access in general. In particular, the Ordinance aims to improve the

availability of fresh fruits and vegetables, as well as whole grains.

All licensed grocery stores must stock and offer for sale specified foods across the following ten

categories: milk, cheese, eggs, meat and vegetable proteins, fruit and vegetables, 100% juice,

whole grain cereal, whole grains, canned beans, and dried peas, beans, and lentils. As noted, the

revised requirements set both quantity standards for required foods as well as identity specific

foods that may not count towards each particular category. The meat and vegetable proteins

category, for example, requires at least three varieties of meat, poultry, canned fish packed in

water, or vegetable proteins like nut butter and tofu. The stocking of canned fish or meat in oil

does not count toward fulfillment of this category. The canned beans category requires at least

three varieties of canned beans. Not counted toward this requirement are canned beans that have

added fats, oils, or meats, baked beans, pork, and beans, chili beans, or refried beans, soup

mixes, or green or wax beans.

Table 12: Staple Foods Ordinance Required Food Categories & Quantities

CATEGORIES

MET

SUPER-

MARKET

CORNER

STORE

DISCOUNT

STORE

FOOD-

GAS

MART

PHARMACY

GENERA

L RETAIL

10 of 10

97%

38%

11%

13%

80%

6-9 of 10

52%

89%

78%

100%

20%

0-5 of 10

10%

The Minneapolis Health Department’s data also identifies compliance by staple food category.

Across all ten categories, compliance was highest in the Meat, Poultry, Fish, and Vegetable

Proteins category (97%). On the other hand, Fruit and Vegetables was second lowest (74%).

Despite this statistic, compliance levels for Fruit and Vegetables have actually increased since

2015, from 68% to 74%. Two staple food categories experienced a decrease in compliance

between 2015 and 2018: milk (91% to 84%) and eggs (80% to 66%).

Minneapolis Health Department staff identified reasons for lower than desired compliance rates:

 Real/perceived consumer purchasing patterns

Stores were reluctant to stock items they did not think customers would buy.

 Dietary preferences

Diets in certain populations might not align with the categories.

 Inventory management

Data courtesy of Minneapolis Health Department

Perishable items are more difficult and more expensive to stock due to the need for

expensive refrigeration equipment and the staff time required for regular inventory

rotation/culling.

Some stores had difficulty stocking the correct sizes/quantities (e.g. the store may sell

medium eggs instead of the required large eggs).

 Supply chain issues

Some stores, particularly small-scale retailers, experienced challenges procuring fresh

produce.

In an effort to improve compliance moving forward, the Minneapolis Health Department

identified five strategies:

 Further monitoring and enforcement of non-compliant stores

No citations or fines have been issues for these stores thus far, and staff plans to

strengthen enforcement.

 Technical assistance

Staff will continue providing technical assistance in the form of inventory

management, including helping stores identify culturally-appropriate foods that

would satisfy requirements; financial support to install refrigeration equipment;

assistance in applying for WIC or SNAP/EBT authorization; etc.

 Education and training

Minneapolis Health Department staff will identify new stores applying for grocery

licenses or undergoing substantial renovations to help align the store environment and

businesses practices with Staple Foods requirements;

 Customers financial incentives

These incentives, currently a pilot project, encourage low-income customers to

purchase fruits and vegetables;

 Text changes to ordinance language

Possible changes will be based on findings from the STORE Study and citizen/store

owner feedback.

Analysis

Minneapolis’ Staple Foods Ordinance is a significant policy in terms of potential long-term

impacts as well as resources the City has dedicated to its implementation. Staff spend significant

time providing education and technical training to businesses to help them reach compliance.

The issue of food access is real, particularly in low-income and minority communities. Due to

that, the provision of healthy “staple” foods citywide can help improve access for people who

may not have had it previously. However, there are likely still particular barriers in place

preventing the purchase of this food, including education and awareness. Behavioral changes,

such as a desired shift from purchasing healthy “staple” foods, in place of energy-dense foods

that are high in fat and sugar, will likely take longer to occur than the three year study period.

Based on that, the full impacts of the ordinance are yet to be seen.

Baltimore, Maryland

Like New Orleans, Baltimore has neighborhoods that face food insecurity and has high

concentrations of neighborhoods which exist within food deserts and food swamps. Baltimore’s

Department of Planning has implemented several incentives to create better food access

citywide.

Baltimore Food Policy Initiative

To address food insecurities in different communities, the planning department created the

Baltimore Food Policy Initiative to work on solving some of the City’s food issues through land

use and zoning. An intergovernmental collaboration between the Department of Planning, Office

of Sustainability, Baltimore City Health Department, the initiative works to tackle food

insecurity through multiple strategies.

Land Use Measures

The planning department cites conveniences stores and retailers that sell food, but not on the

same scale as a full supermarket, as part of the food insecurity issue. Decreasing restrictions on

urban gardening has allowed community gardens to sell produce on site. In 2017, the City

reduced zoning restrictions to allow these gardens to set up farm stands and sell produce. Hoop

houses that function similar to greenhouses no longer have to go through the building permit

process for new construction structures.

Personal Property Tax Credits

In addition to these zoning code changes, the City has created incentives for supermarkets to

locate in food insecure neighborhoods. A bill which passed through the Maryland State

Legislature in April 2015, SB 541 gives Baltimore City the authority to offer personal property

tax abatements and incentives to encourage grocery stores to open in food insecure areas.

The

measure allows for food deserts “to establish a tax credit against the personal property tax

imposed on qualified supermarkets in food desert incentive areas.”

Local Policies

Several local policies, based on national models, are in place in an effort to increase access to

healthy, nutritious food in food insecure areas.

Fresh Food Retailer Initiative

The City of New Orleans’ Fresh Food Retailers Initiative (FFRI) program is an effort to increase

access to fresh foods in traditionally underserved neighborhoods in the City in addition to

https://planning.baltimorecity.gov/baltimore-food-policy-initiative/food-policy

https://baltimore.legistar.com/LegislationDetail.aspx?ID=2467749&GUID=BB6C7558-1C21-410C-8FB8-

C6994EAAFB3A&Options=&Search

providing quality employment opportunities and serving as a catalyst for neighborhood

revitalization. The program provides direct financial assistance to retail businesses by awarding

forgivable and/or low-interest loans to supermarkets, grocery stores, and other fresh food

retailers. Eligible activities include: pre-development, site assembly and improvement,

construction and rehabilitation, equipment installation and updates, staff training, and start-up

inventory and working capital. The total amount of Disaster Community Development Block

Grant (D-CDBG) FFRI funding awarded, per store, may not exceed $1,000,000, of which the

total portion of forgivable loans may not exceed $500,000. The City of New Orleans has

provided $7 million in D-CDBG) funds toward the program, which has been matched 1:1 by

project partner Hope.

Forgivable and interest-bearing loans are available to supermarkets or other retail grocery outlets

committed to expanding the healthy food offerings in low- or moderate-income, underserved

neighborhoods. An underserved neighborhood is defined as an area of below average

supermarket density or grocery sales. Applicants must plan to either: (1) open a self-service

supermarket or other grocery retail outlet primarily selling fresh produce, seafood, meat, dairy,

and other groceries; (2) renovate or substantially improve a stores ability to stock and sell a

variety of fresh fruits and vegetables; or (3) develop a real estate project that will lease space to a

grocery store tenant.

The City has partnered with HOPE and The Food Trust to implement the program. HOPE is

dedicated to strengthening communities, building assets and improving lives in economically

distressed areas of the Mid-South by providing access to high-quality financial products and

related services. HOPE sponsors the Hope Credit Union, which is a low-income designated

credit union that converts federally-insured deposits into financial services for low-wealth

communities. Under the FFRI, Hope will provide a combination of forgivable and interest-

bearing loans to FFRI participants.

The Food Trust works to ensure that every child and family has equal access to affordable and

nutritious food. The Food Trust’s goals are to increase the availability of fresh foods, develop a

stable food supply in underserved communities, and improve the connection between urban and

agricultural communities. Under FFRI, the Food Trust will evaluate applications to determine

eligibility for the program. The FFRI has received 68 applications since the program’s inception

in 2011 and five grocery store projects have received funding support through the FFRI (see

Figure 18). Of the six stores funded through the FFRI, five are currently operating and one (Da

Fresh Market) closed due to poor sales and repaid the FFRI loan per program requirements.

Figure 18: FFRI Funding Recipients

RECIPIENT

YEAR

ADDRESS

FUNDS

RECEIVED

PEOPLE

SERVED

Da Fresh Market

2012

2139 Baronne

Street

$117,000

N/A

Broad ReFresh (Whole

Foods)

2013

300 N. Broad

Street

$1,000,000

11,015

Circle Foods Store

2013

1522 St. Bernard

Avenue

$1,000,000

16,100

Dryades Public Market

2015

1307 Oretha Castle

Haley Boulevard

$1,000,000

10,300

Robert Fresh Market

2016

2222 St. Claude

Avenue

$1,000,000

20,862

Total

58,277

The program has provided access to fresh foods for 58,277 New Orleanians who resided in

previously underserved areas and currently has approximately $300,000 remaining from its

initial budget of $7 million. It has yet to be determined if the program will be refunded under the

new mayoral administration.

New Orleans Healthy Corner Store Collaborative

The New Orleans Healthy Corner Store Collaborative assists local corner store operators in

increasing the amount of fresh, healthy food sold to consumers while also developing business

sustainability tools. The Collaborative is a joint venture by Propeller, the City of New Orleans,

Liberty’s Kitchen, and Top Box Foods. The Mayor’s Office of Community and Economic

Development funds the program, contributing $100,000 for year two of the program. Funding

goes toward staff time, business consultant time, marketing materials, infrastructure updates such

as coolers, and other fixtures.

The New Orleans Healthy Corner Store Collaborative is based on successful healthy corner store

projects across the United States, including the Urban Food Project in Birmingham, Alabama,

the Food Trust in Philadelphia, and DC Central Kitchen in Washington, DC.

The Collaborative trains participating stores in marketing techniques to increase produce sales,

including running promotions, placing produce displays front and center, and arranging

signage/displays using bright colors. In addition, all produce is priced to sell. While no stores

participating in the Healthy Corner Store Program had to eliminate other types of inventory in

order to sell fresh produce, some stores relocated soda and beer to the back of the store.

Table 14: Healthy Corner Store Collaborative

Year-to-Date Sales Numbers for 2018

Total Units of Produce Sold

57,775

Total Pounds of Produce Sold

22,015

Total Revenue Earned for Stores from Produce

$43,096.30

Total Profit Earned for Stores from Produce

$12,350.16

The New Orleans Healthy Corner Store Collaborative has assisted nine corner stores in

providing fresh food for sale:

Year One Corner Stores:

 Danny Food Store

1150 Simon Bolivar

 Supermercado Las Acacias

4929 Freret Street

 Burnell's Lower 9th Ward Market

2036 Caffin Avenue

 R & B Grocery (formerly Community 6)

1921 Orleans Avenue

Year Two Corner Stores:

 Algiers Supermarket

3141 General Meyer Boulevard

 Franklin Discount

6100 Franklin Avenue

 Habibi Grocery

9530 Hayne Boulevard

 Key's Food Store

2600 Louisiana Avenue

 Overflow Market

432 N. Galvez Street

While the Healthy Corner Store Collaborative focuses on small neighborhood stores,

representatives indicated a willingness to work with small box discount store retailers to get fresh

Provided by Top Box Foods. Current as of September 16, 2018.

food into neighborhoods without adequate access. When selecting stores to fund, the

Collaborative takes into account many criteria, including the following:

 Is store located in a low income census tract?

 How far is the store from the nearest grocery store?

 Is the store near other businesses, schools, community centers, or public buildings?

 Is the store authorized to accept SNAP/WIC benefits?

 Store owner presence 50% of the time

 Capacity to accommodate additional inventory

 Willingness to change store layout prioritizing fresh produce

 Does the store have employees? Are the active and working or seem to be just handing

out?

 Does the owner express an interest in providing healthier options for the community?

Best Practice Findings

 Land use regulations (e.g. zoning) to achieve improvements to public health have been

implemented in many cities and held up by the courts.

 Kansas City, Kansas and Tulsa, Oklahoma have each adopted regulations designed to

restrict the proliferation of small box discount stores. Both cities, Tulsa more so, have

linked the provision of fresh food to their regulations. In Tulsa, for example, any store

that provides at least 500 square feet of floor area to the sale of fresh meat, fruits, or

vegetables is exempt from the one mile dispersal standard.

 Though the occupational licensing framework is substantially different in Minneapolis,

Minnesota, the Staple Foods Ordinance applies to any store licensed as a grocery store—

including small box discount stores—with a few exceptions in an effort to expand access

to healthy, nutritious food.

 Financial incentives can assist in the entry of more food options, including healthy food

options, in areas where grocery stores or food choice in general are not currently

providing healthy foods.

 Loosening of zoning regulations, particularly pertaining to urban agriculture, may be able

to assist in providing greater access to healthy foods in areas where food access is

limited.

I. Small Box Discount Store Regulation

Issues, Analysis, and Recommendations

In order to address the proliferation of small box discount stores, staff examines possible land

use regulation tools to reduce the impacts of future stores, including new definitions, dispersal

requirements, alcohol regulations, and use standards. In addition, staff considers other ways in

which to provide access to healthier food in areas classified as food deserts by exploring possible

incentives that may be attractive to grocery stores as well as a possible loosening of agriculture

requirements.

Staff also examines challenges with the permitting and occupational license processes, and

enforcement limitations.

Land Use Regulation Issues

Proposed Definitions

Small Box Variety Store

During the course of evaluating “small box discount stores,” staff determined that, while certain

bad actors undoubtedly exist, as they can for any use, it is unnecessarily prejudicial to single out

stores for stricter regulation because they sell discounted items. At their core, small box discount

stores are retail stores that sell a variety of goods ranging from cleaning supplies, to birthday

cards, personal grooming products, milk and soft drinks, cigarettes, and clothing. Due to negative

consequences associated with the proliferation of these stores and to encourage the provision of

more healthful fresh foods, the staff recommends a new definition and land use regulations,

regardless of whether the stores are discount retailers.

In order to ensure that the small box variety store classification does not capture unintended

retail uses that may fall within the 5,000 to 15,000 square feet range, staff has singled out a

number of uses that should not be classified as small box retail. For example, the proposed

definition does not encompass prescription pharmacies, such as Walgreens, CVS, or locally- or

independently-owned pharmacies.

The staff proposes the following definition as part of its recommendation:

Small Box Variety Store: A retail store between 5,000 and 15,000 square feet that sells at

retail an assortment of physical goods, products, or merchandise directly to the consumer,

including food or beverages for off-premises consumption, household products, personal

grooming and health products, and other consumer goods. Small box variety stores do not

include small box stores that:

1. contain a prescription pharmacy;

2. sell gasoline or diesel fuel;

3. primarily sell specialty food items (e.g. meat, seafood, cheese, or oils and vinegars);

4. dedicate at least 15% of shelf space to fresh or fresh frozen foods; or

5. dedicate less than 5% of shelf space to food sales.

Fresh or Fresh Frozen Food

Small box variety stores that sell non-incidental food items (over 5% of floor area) may threaten

existing full-line grocery stores and may prevent the entrance of new full-line grocery stores into

the same market.

Because the proposed definition for small box variety store does not

encompass small box stores that dedicate at least 15% of shelf space to fresh foods, it is

necessary to define fresh foods to ensure that the Department of Safety & Permits is able to

easily classify relevant new uses should the City ultimately codify any recommendations from

this study.

In addition, due to the possible challenge of small stores to adequately manage fresh, non-frozen

produce, staff recommends the inclusion of fresh frozen food in the definition.

Fresh or Fresh Frozen Food: Food for human consumption that is unprocessed, or

otherwise in its raw state; food that was quickly frozen while still fresh.

This includes

unprocessed meat and seafood.

Full-Line Grocery Stores

A staff recommendation to allow additional floor area for full-line grocery stores and permit by

right requires the creation of a grocery store definition.

Grocery Store: A retail establishment primarily engaged in the sale of items in the

following categories: a general line of groceries, packaged frozen food, dairy products,

poultry and poultry products, confectioneries, fish and seafood, meats and meat products,

fresh fruits and vegetables, and other grocery and related products where foods including

fresh meat, poultry, seafood, and produce make up 25 percent or more of the shelf space

and display area. A grocery store with at least 20,000 square feet in gross floor area may

sell packaged alcoholic beverages.

High Concentration in Certain Neighborhoods/Capping Measures

In accounting for all existing small box discount retailers in the city, staff found that

geographically, there is a higher concentration of these stores in areas of the city where the

median household income is between $12,000 and $45,100. According to the Small Box Retail

Stores and Median Household Income map shown below, staff can identify four areas in

particular, where these stores are concentrated in census tracts where the median household

income falls in that lower category:

Impacts on full-service grocery stores is examined in detail previously in this report.

The proposed definition for fresh and fresh frozen food is based on the U.S. Food and Drug Administration’s

fresh, freshly frozen, fresh frozen, and frozen fresh definitions as described in Sec. 101.95 “Fresh,” “freshly frozen,”

“fresh frozen,” “frozen fresh,” Title 21, Volume 2 (Revised as of April 1, 2018), “Subchapter B: Food for Human

Consumption.”

 Gert Town/Tulane-Gravier/Central City, which counts six (6) stores, including three (3)

on Carrollton Avenue, one (1) on North Broad Street, and two (2) on Washington

Avenue. These stores are located approximately 0.5 to 1.5 miles from each other.

 Seventh Ward/St. Claude/Bywater/Lower Ninth Ward, which counts seven (7) stores,

including four (4) on St Claude Avenue, one (1) on North Claiborne Avenue, one (1) on

St. Bernard Avenue, and one (1) on Almonaster Avenue. These stores are located

approximately 0.5 to 1 mile from each other.

 New Orleans East/Gentilly, which counts fifteen (15) stores, including six (6) on Chef

Menteur Highway, two (2) on Elysian Fields Avenue, two (2) on Downman Road, one

(1) on Crowder Boulevard, three (3) on Morrison Road, and one (1) on the Interstate 10

Service Road. These stores are located approximately 0.25 to 2 miles from each other.

 Behrman/Tall Timbers-Brechtel, which counts four (4) stores, including three (3) stores

on General de Gaulle Drive and one (1) on Behrman Place. These stores are located

approximately 0.25 to 1 mile from each other.

Figure 19: Small Box Retail Stores & Median Household Income

In contrast, neighborhoods where the median household income is between $45,100 and $78,200

contain only three of these stores, and neighborhoods where the median household income is

above $78,200 contain only one (1). The three stores located within census tract characterized by

a median household income between $45,100 and $78,200 dollars are located in the Filmore,

Navarre, and old Aurora neighborhoods. The only store located in a census tract characterized

with a median household income higher than $78,200 dollars is on General de Gaulle Drive, at

the edge of the Tall Timbers neighborhood, near the Intracoastal Waterway.

While concentration of small box discount does not only occur in New Orleans East, staff

observed a lack of grocery stores in New Orleans East and the Lower Ninth Ward in comparison

to the rest of the city. Grocery stores are shown in blue dots in Figure 19 above. Because New

Orleans East residents do not benefit from a variety of food retail options, the concentration of

small box retailers in this area is more problematic.

Recommendations

When high concentration of a certain use in a specific area is demonstrated to create negative

impacts, staff has routinely recommended these uses be regulated in such a way to minimize

impacts on neighborhoods. There are different land use mechanisms that can potentially

minimize these negative impacts. They include dispersion measures, conditional use

requirements, spacing requirements, limiting the total number of such uses, and use standards.

To prevent oversaturation in any particular area, spacing requirements could be put in place to

limit the number of stores and their density. Limitations on concentration can typically be put in

place by limiting the number of such uses per blockface and/or square, or per a certain distance

measured in feet. This type of regulatory system could spread out small box variety stores and

avoid overconcentration. In addition, because these stores can negatively impact full-service

grocery stores, or otherwise deter them from locating nearby, a minimum spacing requirement

can be applied from full-line grocery stores as well.

This distance requirement could apply to the entire city or to areas which are identified to have

an unbalanced ratio of grocery stores and small box discount retailers to population. However,

based on a review of Tulsa, Oklahoma’s Healthy Neighborhoods Overlay, staff believes that a

citywide regulation is preferable. Considering the difference in development pattern and density

between the central areas of the city and the suburban areas of the city, staff believes that two

different distance requirements would be appropriate. A one (1) mile distance requirement would

be the most appropriate in historic areas of the city, which fall within the boundary of the

Neighborhood Conservation District (NCD), shown in blue in the map below. The NCD

generally includes the portion of the city located south of I-610, in historic core districts, historic

urban districts, and central business districts.

While Gentilly Terrace neighborhood is located

within the boundaries of the NCD, it is more suburban in development pattern and density.

Therefore, staff believes that only the areas of the NCD south of I-610 should be subject to a one

(1) mile distance requirement.

More specifically, the NCD is established by ordinance as the area generally bounded, on the east bank of the

Mississippi River, by the Orleans/Jefferson Parish line, Metairie Road, Interstate 10, Norfolk-Southern Railroad

track, Orleans Avenue, City Park Avenue, Wisner Boulevard, Interstate 610, Florida Boulevard, the Orleans/St.

Bernard Parish line, and the Mississippi River; on the west bank, the NCD encompasses the area generally bounded

by Atlantic Boulevard, Bodenger Boulevard, the Orleans/Jefferson Parish line, and the Mississippi River, as well as

all National Register Historic Districts that are on the National Register of Historic Places, pursuant to 16 U.S.C.

470 et seq., section 26-11, and other applicable laws. In addition to the Gentilly Terrace National Register District,

the area bounded by the following streets, and those properties fronting on the bounding streets, shall be deemed to

be part of the NCD: beginning at Elysian Fields Avenue at Gentilly Boulevard, north along Elysian Fields Avenue to

Filmore Avenue, east along Filmore Avenue to Peoples Avenue, south along Peoples Avenues to Gentilly

Boulevard, and along Gentilly Boulevard back to Elysian Fields.

In areas of the city characterized by a suburban type of development with lesser development

density, staff believes that a two (2) mile distance requirement would be the most appropriate

spacing requirement. In order to capture general commercial districts located within suburban

areas, the area subject to the 2 mile distance requirement would not only include suburban

zoning districts but all zoning districts located outside of the NCD boundaries. As seen on the

map below, buffers of one (1) mile and two (2) miles from any existing small box variety stores

would prevent the location of new dollar stores in all areas shown in orange and brown. New

stores could still locate outside of the orange and brown areas as long as it also is located within

a zoning district that allows such uses. These distance requirements would prevent further

concentration in areas of the city that already have a number of this type of stores.

 Prohibit small box variety stores within less than one (1) mile, or 5,280 feet, of any

existing small box variety store in areas of the city located within the boundaries of the

NCD (except Gentilly Terrace).

 Prohibit small box variety stores within less than two (2) miles, or 10,560 feet, of any

existing small box variety store in areas of the city located outside of the boundaries of

the NCD (including Gentilly Terrace).

Figure 20: Small Box Discount Stores—1 Mile Buffer in Neighborhood Conservation

Districts and 2 Mile Buffer in Non-Neighborhood Conservation Districts

Urban Agriculture

Due to the limited access that parts of the city have to fresh, healthy food, staff has examined

methods to limit the barriers involved in selling fresh food at agriculture uses on residentially

zoned lots. Agriculture without livestock is permitted by right in most zoning districts (including

residential zoning districts), and agriculture with livestock is permitted by right in rural districts

and allowed with a conditional use in some commercial and open space districts. The CZO states

that while products may not be prepared, processed or packaged in a residential district, the

canning of plants or plant products is permitted for any agricultural use even in residential

districts. Further, retail sales for an agricultural use are permitted at farm stands only within

Open Space Districts, Rural Development Districts, and non-residential districts. In these

instances, retail sales are limited to crops grown and livestock raised on the farm where the farm

stand is located and to unprocessed food products, or home processed food products such as

jams, jellies, pickles, sauces, or baked goods created on the farm where the farm stand is

located.While farm stands are not allowed in residential districts, farmers markets are allowed in

any zoning districts at a maximum of one event per week. Finally, Article 21, Section 21.6.A.9

of the CZO states that “no detached accessory structure may be constructed prior to construction

of the principal building to which it is accessory.”

Recommendations

If a shed or other similar type of structure associated with urban agriculture cannot be authorized

on a lot that is entirely used for the growing of crops, the ability to store tools, store food, or can

products on site is effectively limited. Based on this, staff recommends the following:

 Allow accessory structures without a principal structure on lots used for agriculture.

Additionally, the agriculture use standards states that farm stands, where food products created

on the farm are sold, are only allowed in open space, rural development and non-residential

districts. Farmers market are allowed in all zoning districts but require licensing by the City and

the Department of Health and are limited to one event per week. To promote agriculture in areas

of the city with limited access to grocery stores, staff recommends the following:

 Allow farm stand sales for community gardens and all agriculture uses in all residential

zoning districts in which agriculture is a permitted use, or, where it is a conditional use,

upon approval. Farm stand sales should be allowed seven days a week to sell produce

exclusively grown on site.

Finally, while processed food is an industrial use that is not allowed in most districts where

agriculture use is allowed, the agriculture use standards refer to “home processed food products”

such as jams, pickles, sauces, or baked goods created on the farm as products that are allowed to

be sold at farm stands. There is no distinction in the Comprehensive Zoning Ordinance between

food processing and home processed food products. While allowing for canning of goods on

residential lots, the CZO states that food may not be prepared, processed, or packaged in a

residential district (except R-RE).

 Allow “home food processing” of agricultural products grown on site in any district

where agriculture is a permitted use.

Full-Line Grocery Stores

A grocery store is a retail establishment that primarily sells food. Grocery stores generally offer a

mix of perishable and non-perishable food items and may feature bakeries, butchers, and

delicatessens, in addition to significant amounts of non-food products such as household items.

Grocery stores generally range between 25,000 and 60,000 square feet in size, but can also be

much smaller. Examples of grocery stores in the New Orleans area include large stores such as

Rouses, Winn Dixie, Whole Foods Market, and Robert Fresh Market and smaller, more intimate

operations such as Canseco’s and Zara’s.

Figure 21: Rouses (Baronne) and Canseco’s (Esplanade)

Post-Katrina, several new grocery stores have located in Orleans Parish, including the Whole

Foods on Broad Street, the Rouses in the CBD, and the Winn Dixie on N. Carrollton Avenue in

Mid City. Some of the new stores have been retrofits of existing structures (Whole Foods on

Broad St. and Rouses in Warehouse District), while others have been new construction (Winn

Dixie on Carrollton Ave.). At the same time other stores have closed post-Katrina and remain

vacant to this day, which places a burden on local residents as access to fresh food options

becomes more limited.

Figure 22: Vacant Grocery Stores

Figure 23 depicts low-income census tracts within Orleans Parish where a significant number of

residents have limited access to full-line grocery stores providing fresh food options and existing

grocery stores. Areas such as New Orleans East, Hollygrove, and the Lower Ninth Ward stand

out as having both limited access and few existing grocery stores. There are many factors that go

into why a grocery store may locate or not locate in an existing location. This section discusses

how these decisions are made and offers potential solutions for areas with limited access to

grocery stores.

Figure 23: Low Income/Low Access ½ or 10 Mile, and Grocery Stores

Location Selection Criteria

Grocery retailers are formulaic when it comes to the location selection for a new store due to the

fact that they operate on slim profit margins (under 2 percent net profit after taxes).

Operators

need to be convinced that the area can support a store if one were to be opened. Potential grocers

generally obtain a detailed data profile of an area and collect the following data before deciding

where to locate a new store:

 Demographics

o Population

o Age

o Race or Ethnicity

o Educational attainment

o Housing tenure (rental versus ownership)

 Real Estate Investment Activity

o Existing residential and commercial development

See Food Marketing Institute, Food retailing in the 21

Century: Riding a Consumer Revolution, retrieved from

http://www.fmi.org.

o Planned residential and commercial development

o Median home sales price, positive/negative change

 Income Profile

o Median Income

o Household net worth

o Concentrated buying power

 Grocery Retail Demand

o Estimated Expenditures

o Leakage Dollars, by store type

o Location and size of competitors

 Access Information

o Major roads and traffic counts

o Public transit service

o Cars per household

 Crime

o Violent crime

o Property crime

o Police presence

Potential grocers analyze the data gathered by professional surveyors and/or in-house analysts

that attempt to predict whether a store will have a favorable probability of success. Since the cost

of opening a new grocery store could potentially reach a price tag in the millions of dollars, a

thorough analysis of the target area is critical.

The New Orleans area has experienced a rapid and significant increase of small box discount

stores, mirroring national trends. According to research published by Forbes.com, from 2010

through 2015, the top four dollar store chains (Dollar General, Dollar Tree, Family Dollar, 99

Cents Only) grew their combined total annual sales from $28 billion to an estimated $42 billion,

representing a compound annual growth rate (CAGR) of 8.5%. Within this same timeframe, the

top four discount stores grew their combined annual sales in groceries, or “consumables”

(typically defined as food, tobacco, health and beauty, and household cleaning products) by over

$10 billion, from $18.3 billion to $28.6 billion. Based on this research, the top four discount

stores now represent 2.9% of the entire United States grocery market (approximately $1 trillion),

up from 2% in 2010.

Discount Stores are certainly increasing their market share of grocery

sales and shopping dollars that may have potentially been spent at a traditional grocery stores are

now being spent at dollar stores, a phenomenon that is certainly magnified in areas with a high

concentration of discount stores.

In addition to hard data and market forces affecting a grocery operator’s decision to locate in a

specific area, the perception and image of a location can have a significant impact on the

evaluation of a potential store site. Negative perceptions of an area from issues such as crime

(real or perceived) and aesthetic aspects including litter, lack of beautification, and vacant

structures can have an impact on the decision to invest in a certain area. During the course of this

Deborah Weinswig, “How the dollar store boom may shake up big grocers,” Forbes, May 2016,

https://www.forbes.com/sites/deborahweinswig/2016/05/09/how-the-dollar-store-boom-may-shake-up-big-

grocers/#3f40539260db (accessed October 18, 2018)

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study, the City Planning Commission staff met with several local grocers who spoke to the fact

that the issue of crime (real or perceived) had deterred efforts to locate in certain areas of New

Orleans, such as New Orleans East.

Violent crime and property crime data retrieved by the staff from the New Orleans Police

Department indicates that perceptions of crime in New Orleans East may be just that, a matter of

perception and related to the image of this area of the city. The crime data reflects that the

violent and property crime rates per 100,000 residents is actually lower in New Orleans East than

in Orleans Parish as a whole.

These data implies that neighborhoods such as New Orleans East

may have a problem related to perception. However, there are many actions that municipalities

and communities can take to entice a store to locate in a certain area.

Possible Incentives

Developing grocery stores are often risky and costly endeavors. Offering incentives can be an

effective tool for attracting a grocery store to an underserved area. Offering incentives can

minimize risks of potential operators and projects can become more feasible.

Below are a number of possible incentives that could help attract grocery stores to an area:

 Streamlined planning process – Municipalities can offer help to get projects off of the

ground and avoid stalling in the review and permitting phase. Some municipalities

appoint a designated staff member to assist the applicant through the planning phase to

avoid unforeseen hurdles from delaying progress.

 Zoning considerations

o Maximum Total Floor Area – Commercial Use – Many zoning districts in

Orleans Parish require conditional uses for commercial uses that exceed a certain

threshold of gross floor area and outright prohibit others that exceed a certain

gross floor area. For example, the HU-MU Historic Urban Mixed Use District

(which includes the St. Claude Ave. portion of the Lower Ninth Ward) requires a

conditional use for commercial uses over 5,000 square feet of gross floor area and

prohibits those with over 10,000 square feet of gross floor area. The conditional

use process requires an application to heard and be voted on by the City Planning

Commission and the City Council, in a process that can range between four and

six months. Eliminating the maximum total floor area requirements for potential

grocers could be a valuable incentive that would save time and money.

Additionally, increasing the allowed maximum total floor area allowed for

grocery stores in some areas would allow a store to open and operate where they

would otherwise be essentially prohibited.

o Parking Requirements – The current off-street parking requirement for grocery

stores (retail goods establishment) in Orleans Parish is one space per 500 square

feet of gross floor area. Parking requirements have the potential to add significant

cost to new developments and retrofits of existing structures. While some store

operators may want as much parking as possible to accommodate potential

customers, locations in more dense urban areas and where there is low car

Statistics reported by the New Orleans Police Department, 2018.

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ownership may not need as many spaces as is required by zoning. Allowing

approved grocers to reduce parking provided on-site could be a valuable incentive

to certain store operators.

o Height restrictions – Height restrictions in Orleans Parish vary by zoning district

and have a wide range of allowances. Grocery store projects are often parts of

mixed-use developments that can include housing, office, and commercial space.

Mixed-use projects that include grocers in underserved areas could be allowed

increased height in order to facilitate project plans.

o Alcoholic beverage sales – The retail sales of packaged alcoholic beverages is a

conditional use in many districts that allow grocery stores. As previously

mentioned, the conditional use process can last for several months and approval is

not guaranteed. Removing the conditional use for the retail sale of alcoholic

beverages within a grocery store could be a valuable incentive.

 Tax Increment Finance Zone – A tax increment finance zone (TIF) is a public financing

method that is used as a subsidy for redevelopment, infrastructure, and other community-

improvement projects. A TIF can be created for a potential grocery site and the

surrounding area to ensure that sales tax revenue generated by the site will be invested on

infrastructure improvements and amenities within the TIF boundaries for a certain time

period. This financing method could incentivize a potential grocer to locate a store and

guarantee future investment and improvements in the area.

 Waiving fees – Permitting fees for projects in Orleans Parish can be thousands of

dollars

and the municipality could waive those fees for certain desirable developments,

such as a grocery store in an underserved area.

 Financing – Local governments can compile and make available data, and offer technical

guidance related to financing resources that support potential grocery store development.

In addition, the municipality can fund programs to encourage small scale grocers (see

Fresh Food Retailer Initiative section).

o Community Development Block Grants (CDBG) – Federal program administered

by Department of Housing and Urban Development (HUD) that provides funding

to local agencies who then identify local priorities and allocate funds accordingly.

o Section 108 Loan Guarantee Program - Section 108 offers state and local

governments the ability to transform a small portion of their Community

Development Block Grant (CDBG) funds into federally guaranteed loans large

enough to pursue physical and economic revitalization projects capable of

revitalizing entire neighborhoods.

 Local/state tax credits

o Property tax abatement – The municipality has the ability to reduce or eliminate

the amount of property tax owners pay on new construction, rehabilitation and/or

major improvements.

o The State of Louisiana provides a sales tax exemption for food sold for

preparation and consumption in the home, including bakery products, fresh fruits

See Fee Schedule in Appendix

U.S. Department of Housing and Urban Development. Section 108 Loan Guarantee Program. Oct. 2018.

https://www.hudexchange.info/programs/section-108/

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and vegetables, and packaged foods requiring further preparation by purchasers.

This sort of tax exemption could be offered at the municipal level as well.

 Federal tax credits

o New market tax credits – A federal tax benefit to investors who invest in ventures

in qualified low-income areas.

o Work opportunity tax credit – Federal tax credit available to employers who hire

employees who were previously welfare recipients.

 Reduced public utilities or service fees – Providing discounted rates for energy, trash,

recycling, and/or water/sewerage charges can serve as an added incentive for grocery

operators.

 Investment to improve public transit to store location – In areas with low car

ownership the local transit authority can provide increased transit service to a new

grocery store location. This added service will benefit both the grocery operator and the

community members that may have difficulty accessing fresh food due to mobility issues.

 Public Safety – The prevalence of crime or the perception of an area being dangerous

can affect a potential grocer’s decision to enter a certain area and hiring private security

can be a significant cost burden. In the New Orleans area, the hourly rate for an on-site

security guard is approximately $20 per hour. Grocers generally contract security guards

for 14 hours per day, therefore, annual costs amount to around $102,000 per year.

The

presence of a City police officer has the ability to deter crime and improve the perception

of safety. Providing additional police presence at the site of a grocery store could be

substantial incentive for potential grocers in an area where there are higher crime threats.

 Public Image Campaign – Certain neighborhoods suffer from a poor public image that

may keep potential investors out. This image likely derives from a measure of reality but

can also be a vestige of the past and of misconceptions and stereotypes. A public re-

imaging and re-branding campaign can begin to chip away at negative perceptions. Such

a campaign may involve the beautification of public spaces, infrastructure and amenity

improvements, positive messaging, public gatherings, and improved transit to reduce

sense of isolation.

Recommendations

Grocery Stores & Overlay Districts

Full-line grocery stores are a popular amenity that most every neighborhood wants close by. In

food deserts, the overlap with residents who don’t have a vehicle makes fulfilling this need a

public policy goal. A full-line grocery store needs adequate floor area for display, shelving,

storage, and offices. With this use being so desirable and necessary for access to healthful foods,

zoning regulations should make adequate provisions to encourage a large grocery store in

commercial areas where it can still be compatible with nearby residential uses. In food desert

areas, the CPC staff recommends allowing an additional 5,000 square feet of floor area by right

in grocery stores on major streets, where the commercial zoning district may restrict it to 5,000,

10,000, or 25,000 square feet. This could be done generally through existing overlay districts,

See Food Exemption Flyer in Appendix

Interview with owners/operators of Robert’s Fresh Market. 9/13/2018

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such as the ENORC Eastern New Orleans Renaissance Corridor Use Restriction Overlay, SC

Suburban Corridor Use Restriction Overlay, and Historic Urban Corridor Use Restriction

Overlay. While these overlay districts were designed to restrict certain uses, they could also

modify the base district regulations to be more permissive for grocery stores. The CPC staff

recommends that a grocery store wishing to take advantage of this additional floor area

allowance should also provide an additional 5% shelf space to fresh and freshly frozen foods

beyond the grocery store definition. The corridors where this modification should apply include,

but are not limited to the major streets below.

 New Orleans East

o Hayne Boulevard

o Downman Road

o Morrison Road

 Algiers

o Newton Street

o General Meyer Avenue

 Lower Ninth Ward

o N. Claiborne Avenue

o St. Claude Avenue

Figure 24: Zoning Overlay & Low Income/Low Access

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Alcoholic Beverage Sales

Per Article 26 of the Comprehensive Zoning Ordinance, “a retail goods establishment may not

sell alcoholic beverages unless retail sales of packaged alcoholic beverages is allowed within the

district and a separate approval is obtained for such use.” This means that if retail sales of

packaged alcoholic beverages are permitted in the base zoning district, a small box discount store

or grocery store may sell those items outright. If retail sales of packaged alcoholic beverages is

conditional within the base zoning district, the use must receive approval from City Council in

order to sell packaged alcoholic beverages.

In New Orleans, retail sales of alcoholic beverages in full-line grocery stores is common and

expected. In order to alleviate some of the burden that a full-line grocery store may need to go

through in order to operate, staff proposes that full-line grocery stores with at least 20,000 square

be permitted by right to sell alcoholic beverages at retail. Larger grocery stores are better able to

manage problems such as loitering and littering, which can accompany retail sales of alcoholic

beverages, by providing security that small stores simply may be unable to afford.

In order to incentivize grocery stores to locate, staff proposes the following:

 Revise the grocery store definition to permit retail sales of packaged alcoholic

beverages by right in full-line grocery stores with at least 20,000 square feet of gross

floor area.

Fresh Food Retailer Initiative

Earlier in the report, staff overviewed the Fresh Food Retailer Initiative. As noted, it has yet to be

determined whether the program will continue under the current administration. Staff believes

that funds such as these can be instrumental in incentivizing the provision of groceries in

communities that most need them. Following conversations with Hope Credit Union, several

recommendations came to light specific to this program:

 Have some structure of funds for technical assistance prior to and after the project.

o Hope Credit Union has found that this would have been valuable for the

independent operators that operate one location. The current program has a

technical assistance piece but it was limited.

 Budget Fresh Food Retail Initiative (FFRI) from a general fund source.

o The Community Development Block Grant (CDBG) funds administrative process

is cumbersome. If the City directly funded the program, project managers may

have more time to work with applicants.

 Extend length of Cooperative Endeavor Agreement beyond one year.

o Grocery retail projects can entail a lengthy process. Hope has been working with

one developer and operator in the pipeline for 4 years and plans to close by the

end of this year.

 Study or evaluate the expansion of a healthy food program to other food system

work (non-retail).

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Neighborhood Character & Quality of Life Issues

Small box discount store appearance is sometimes associated with degrading quality of the built

environment and negative impacts on surrounding property values. They are typically located in

metal buildings, as opposed to masonry buildings, and are subject to little investment in terms of

exterior and interior design. Representatives of the Eastern New Orleans Advisory Commission

(ENONAC) commented that the multitude of these stores “brand their community as a discount

community.” Features such as signage, trees, landscaping, facade transparency, buried power

lines, and other design elements of the urban environment can generally indicate locations of

investment in cities. Likewise, the design elements that characterize small box discount stores

contribute to the negative image some people associate with them.

ENONAC representatives specifically brought up litter, loitering, lack of landscaping, or non-

maintained landscaping as issues that contribute to the negative branding of the communities in

which these stores are located. Public comments heard during the City Planning Commission

public meeting on September 11

, 2018 align with these concerns. Speakers commented that the

prevalence of these discount stores does not favor attraction of other, higher-end types of

businesses. According to ENONAC, the concentration of these stores makes it difficult to attract

diversified retailers, and it hurts economic development in New Orleans East because other

businesses do not want to associate their brands with discount stores.

In order to address the complaints about the appearance of these stores, the City could consider

stronger design standards to apply to new commercial development either in zoning districts or

certain design overlay districts. Existing design standards of the Comprehensive Zoning

Ordinance already address these concerns. Base zoning districts include building design

standards that apply to the Commercial Center Districts, Suburban Neighborhoods Non-

Residential Districts or Historic Urban Neighborhoods Non-Residential Districts, in which most

dollar stores are located throughout the City, including:

 Primary entrances oriented towards the street;

 Ground floor of newly constructed commercial buildings with at least 50%

transparency and windows constructed of transparent glass; and

 EIFS, Stuccato Board and Vinyl materials prohibited as predominant surface finish

material on exterior walls visible from right-of-way.

Historic Core Neighborhoods Non-Residential Districts, which covers most properties along St.

Claude Avenue west of the Industrial Canal, include even more stringent design regulations as

these properties are also located within HDLC full jurisdiction local historic districts. HDLC

design guidelines for new construction include:

 Preservation of the cohesive ambiance of historic resources with compatible,

sympathetic construction;

 Compatible siting, proportion, scale, form, materials, fenestration, roof configuration,

details and finishes.

According to occupational license data, there are 13 stores in New Orleans East

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The additional design regulations of the CT Corridor Transformation Design Overlay District

generally apply to all properties along Chef Menteur Highway, Morrison Road, Crowder

Boulevard, Downman Road, Bundy Road, Read Boulevard, and other commercial corridors in

New Orleans East. They include:

 Pedestrian-friendly and bicycle-friendly environments;

 Parking located in rear of buildings so as to not be a dominant visual element of the

site; and

 Neon signage prohibited.

New development in these overlay districts would also be required to meet the landscaping,

lighting, and refuse screening requirements of the Comprehensive Zoning Ordinance. These

landscaping requirements include:

 Building foundation landscape for buildings that maintain a front or corner side yard

of ten (10) or more and no parking is located within that front yard;

 Front landscape yard of 10 feet in width where a commercial use maintains parking

in front of the principal building;

 Parking lot landscaping for parking lots of ten(10) or more spaces;

 Buffer yards of ten (10) feet when the parking lot of a non-residential use abuts a

residential district; and

 Parkway trees within the public right-of-way in Commercial Center Districts and

Central Business Districts.

Additionally, screening requirements mandate that all refuse and recycling containers be fully

enclosed on three sides by a solid fence, masonry wall, or principal structure wall seven (7) feet

in height and gated.

While existing commercial development may not always meet these design standards because

the structures were built prior to the adoption of the current Comprehensive Zoning Ordinance,

there are already appropriate regulations in place that would result in a higher quality of the built

environment.

Possible Recommendations:

 New use standards specific to small box variety stores should be incorporated into Article

20 of the Comprehensive Zoning Ordinance. These should include the following

requirements:

o One trash can per thirty (30) feet of street frontage, placed at the most remote

locations from one another;

o All small box variety stores shall comply with the building design standards of the

applicable zoning district.

o Outside storage is prohibited with the exception of propane tanks. All other

business, servicing, processing, and storage operations shall be located within the

structure.

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Permitting & Licensing Issues

Occupational Licenses

Based on discussions with the Department of Safety and Permits and the Bureau of Revenue, as

well as occupational license research, City Planning Commission staff has identified a number of

issues with the occupational license review process and issuance, as well as possible weaknesses

should the City implement a policy similar to Minneapolis’ Staple Foods Ordinance in which a

particular occupational license category is linked to a staple foods requirement. The purpose of

this section is to identify the issues and make recommendations to address those issues.

Inconsistency of Occupational License Types

During the course of the study, City Planning Commission staff reviewed occupational licenses

for all licensed small box discount stores. Despite the consistency of operations and operators,

these businesses are operating under four different license categories. Below are the North

American Industry Classification System (NAICS) categories and definitions under which small

box discount stores in Orleans Parish are currently classified:

▪ General Merchandise Stores: Industries in the General Merchandise Stores subsector

retail new general merchandise from fixed point-of-sale locations. Establishments in this

subsector are unique in that they have the equipment and staff capable of retailing a large

variety of goods from a single location. This includes a variety of display equipment and

staff trained to provide information on many lines of products.

▪ Miscellaneous Store Retailers: Industries in the Miscellaneous Store Retailers subsector

retail merchandise from fixed point-of-sale locations (except new or used motor vehicles

and parts; new furniture and home furnishings; new appliances and electronic products;

new building materials and garden equipment and supplies; food and beverages; health

and personal care goods; gasoline; new clothing and accessories; and new sporting goods,

hobby goods, books, and music). Establishments in this subsector include stores with

unique characteristics, such as florists, used merchandise stores, and pet and pet supply

stores.

▪ Department Stores: This industry comprises establishments known as department stores

that have separate departments for general lines of new merchandise, such as apparel,

jewelry, home furnishings, and toys, with no one merchandise line predominating.

Department stores may sell perishable groceries, such as fresh fruits, vegetables, and

dairy products, but such sales are insignificant. Department stores may have separate

customer checkout areas in each department, central customer checkout areas, or both.

▪ Merchant Wholesalers, Durable Goods: Industries in the Merchant Wholesalers,

Durable Goods subsector sell capital or durable goods to other businesses. Merchant

wholesalers generally take title to the goods that they sell; in other words, they buy and

sell goods on their own account. Durable goods are new or used items generally with a

normal life expectancy of three years or more. Durable goods merchant wholesale trade

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establishments are engaged in wholesaling products, such as motor vehicles, furniture,

construction materials, machinery and equipment (including household-type appliances),

metals and minerals (except petroleum), sporting goods, toys and hobby goods,

recyclable materials, and parts.

Of the thirty-four (34) currently licensed small box discount stores, twenty-nine (29) operate

under the “All Other General Merchandise Stores” category. Three (3) operate under

“Miscellaneous Store Retailers (Except Tobacco),” one (1) operates under the “Department

Store” sub-type, and one (1) under “Durable Goods Wholesalers.” This indicates a discrepancy

in how license categories are applied, which can result in inconsistent enforcement across the

same types of uses.

As noted previously, the occupational license process initiates through the Department of Safety

& Permits. This stems from the need for Safety & Permits’ Zoning Administration Division to

evaluate the proposed use and ensure it is allowable under applicable zoning regulations.

Following receipt of an occupational license application, the Department of Safety & Permits is

tasked with selecting the appropriate occupational license code.

The Bureau of Revenue

ultimately issues the occupational license following clearance from the Department of Safety &

Permits.

Figure 25 (a & b): Screenshots from the occupational/general business

license application requesting only basic information about the type of business

In selecting the appropriate occupational license code, permit analysts choose from a list of 671

occupational codes, basing the selection on information from the occupational/general business

license application form, their own experience with the license categories, and their best

judgment. They do not refer to NAICS definitions to help narrow down or identify the selection.

That said, many categories (e.g. baked goods stores, caterers, furniture stores, hardware stores,

nail salons, and offices of optometrists) are easily discernible. However, some categories, such as

miscellaneous store retailers, are not as clear-cut without looking up the NAICS definition. Due

to this, small box variety stores may not all have consistent occupational license codes.

Lastly, according to a study in the Journal of Urban Health, “… NAICS codes are widely

Per conversations with the Department of Safety & Permits, typically the applicant does not self-select the

occupational license category unless done through the online application process.

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available but do not differentiate between supermarkets, medium-sized food stores, and small

food stores, which differ markedly in their mix of foods sold.”

Providing a definition that

includes size may assist with more consistent classification.

Enforcement Powers

While the Bureau of Revenue is responsible for issuing warnings and penalties to expired

occupational license holders, it depends upon the New Orleans Police Department for the

issuance of citations and summonses to municipal court for cases of delinquency or other

violations of occupational licenses.

Issues Related to Policy Changes

In talks with the Bureau of Revenue on how to regulate small box discount stores, Revenue staff

suggested the possibility of a new license category for this use. Additionally, they noted that

should the City wish to implement a policy, resources and/or structures must be in place to

adequately inspect and ensure applicable businesses are compliant. In New Orleans’

occupational license system, not every store that sells food meant for home consumption is

licensed as a grocery store. Businesses are licensed based on the majority of their business (e.g.

if 51% of a store’s business/sales is food, the business would be licensed as a grocery store).

The Bureau of Revenue also assigns all businesses a commodity code, which attaches to the

occupational license. In order to create a policy similar to Minneapolis’, the City would need to

make modifications to the license categories, possibly adding a commodity code for all

businesses that sell food meant for home consumption. Businesses typically have just one

commodity code assigned. A grocery store such as Rouses may have “Grocery Store & Package

Liquor” as its commodity code, attached to its occupational license (Supermarket & Other

Grocery (except Convenience) Stores). A small box discount store such as Family Dollar may

have “General Merchandise not Otherwise Indexed” as its commodity code.

The Bureau of Revenue manages commodity codes and may create new ones at its discretion. If

the City desires a change in policy, creating a new commodity code may be an option. However,

because multiple commodity codes exist for retail food sales meant for home consumption, the

Bureau of Revenue would either need to use only one commodity code for a range of uses or use

multiple codes with the awareness that certain commodity codes trigger the need for a staple

foods requirement. This would also require reclassification for existing food retailers.

Per the CPC staff recommended definition for small box variety stores, specialty food stores (e.g.

candy stores, cheese stores, or butchers) would not be classified as small box variety stores. In

addition, uses that dedicate a certain percentage of shelf space to fresh or fresh frozen food are

Thomas A. Farley, Janet Rice, J. Nicholas Bodor, Deborah A. Cohen, Ricky N. Blumenthal, and Donald Rose,

“Measuring the Food Environment: Shelf Space of Fruits, Vegetables, and Snack Foods in Stores,” Journal of

Urban Health: Bulletin of the New York Academy of Medicine, Vol. 86, No. 5 (2009): 672-682.

There are three occupational license categories for grocery stores (Supermarket & Other Grocery (except

Convenience) Stores, General Line Grocery Wholesalers, and Grocery & Related Products Wholesalers, Other).

Traditional full-service grocery stores should be classified under Supermarket & Other Grocery (except

Convenience) Stores, though discrepancies currently exist.

This commodity code is assigned to retail business uses to which no other commodity code applies.

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not included in the proposed definition. Due to this, staff has not included commodity codes

related to these types of businesses in the below table, which shows the commodity codes for

retail food for home consumption.

Table 15: Retail Food for

Home Consumption Commodity Codes

Grocery stores

Grocery stores with package beer

Foods not otherwise indexed by name

Grocery stores & beer c.o.p.

Grocery store & package liquor

Grocery store & liquor c.o.p.

If the City proposes any fresh, fresh and fresh frozen, or staple foods regulations meant to apply

to both existing and future stores, enforcement of these requirements would have an obvious

linkage to the occupational license commodity codes. However, based on issues that Minneapolis

has experienced with its Staple Foods Ordinance, the Bureau of Revenue would need to play a

primary role in issuing licenses only to businesses when they meet the requirements of any new

healthy food policy and withholding and issuing penalties to those that do not meet the

requirements.

Recommendations

The Department of Safety & Permits assists the Bureau of Revenue in assigning consistent and

accurate occupational license codes. If the City desires a change in policy, training should be

provided in both agencies to ensure continuing consistency and business accountability. If

additional time is required to determine or review the correct occupational license code, it is

important that personnel in both the Department of Safety & Permits and the Bureau of Revenue

are working together. If further training is necessary, both agencies should have access to these

resources. Otherwise, license categories will remain inconsistent and have disparities in

enforcement, and New Orleans will experience the same shortcomings that Minneapolis is

facing. Therefore, CPC staff recommends the following related to the issuance of occupational

licenses:

 The Department of Safety & Permits and the Bureau of Revenue shall standardize the

small box variety store occupational license category to maintain consistency across

all existing and future small box variety stores;

 The City Council shall budget adequate resources for personnel and training to the

Department of Safety & Permits and the Bureau of Revenue for occupational license

reviews and renewals; and

 Additionally, should the City implement any type of healthy foods policy:

Commodity codes for specialty food sales include Meat & Seafood Markets, Candy & Nut Stores & Sweet Shops,

and Fruit Stores & Vegetable Markets.

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o The City shall assign an appropriate agency to conduct inspections to ensure

compliance; and

o The Bureau of Revenue shall work with inspectors training in the specific

requirements of the ordinance when issuing occupational licenses, ensuring that

only compliant businesses are issued licenses.

Use Determinations

Based on discussions with the Department of Safety and Permits, City Planning Commission

staff has identified a number of issues with singling out and regulating “discount” stores as well

as possible challenges for proposed regulations of small box variety stores. The purpose of this

section is to identify the issues and make recommendations to address those issues.

Small Box Discount Store

The Department of Safety & Permits is tasked with determining the zoning classification of all

proposed uses. Typically this will occur during the occupational license application process.

cases specific to proposed retail, they do not request further information from the on the products

sold because the Comprehensive Zoning Ordinance makes no distinction between different retail

uses. As noted, retail uses such as small box discount stores are permitted anywhere that retail in

general is permitted, as long as they meet related regulations such as maximum floor area and

parking.

The Department of Safety & Permits could experience challenges in determining whether a

proposed small box store is discount in nature. Further, requesting prices and price comparisons

from potential small box discount stores is outside the scope of the Department’s review process.

Overall, they are concerned with whether a particular use is permitted and whether the building

is up to code. Singling out stores that are discount in nature could result in unfair treatment of

chain small box discount stores such as Family Dollar, Dollar General, and Dollar Tree, or other

stores whose names indicate discounted merchandise. Other stores may be able to receive

approval to operate before the discount nature of their business becomes apparent. In

conversations with the Department of Safety & Permits, staff described the difficulty with

enforcement once a use has already been permitted.

Small Box Variety Store

CPC staff proposes a new retail use category, small box variety store rather than the small box

discount store definition provided in the motion. In conversations with the Department of Safety

& Permits, CPC staff has tailored this definition to include food retailers that do not provide a

significant amount fresh food. In order to classify this use, the Department of Safety & Permits

would need a description of the retail use, floor plans with the proposed layout and total square

footage, and shelf space calculations for fresh or fresh frozen foods. They would not request any

Typically, building plans for new construction or renovation often do not explicitly state the specific use. An

architect may label floor plans as “white box,” “or commercial,” and if that is generally permitted, the Department

of Safety & Permits may issue a building permit. It normally is not until the occupational license process that the

Department will do a full zoning review.

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information about item prices. This may require minor alterations to existing application forms

such as the occupational/general business license application in order to capture floor plan and

fresh food shelf and display area square footage.

Recommendations

In order to ensure a change in policy is correctly implemented, the Department of Safety &

Permits must receive adequate resources in the form of training to properly identify small box

variety stores. In addition, new definitions must be clear and structures must be in place to ensure

proper enforcement. Therefore, CPC staff recommends the following changes to the

occupational license process:

 The One Stop Shop shall modify the occupational/general business license

application to include requests for floor area, percentage of shelf space dedicated to

fresh or fresh frozen foods, and whether the store will offer gasoline or diesel fuel or

contain a prescription pharmacy;

 Department of Safety & Permits staff tasked with assigning occupational licenses

shall receive additional training.

Enforcement Limitations

Inspections

Currently, Safety and Permits perform sweeps of properties for code violations. Inspections are

also carried out by the department based on complaints. During the sweeps, inspectors generally

perform inspections on the outside of a property and do not enter businesses. If the City were to

enforce stricter measures for discount retailers, such as a percentage of shelf space dedicated to

fresh foods, the City would likely need to perform such inspections separately from sweeps.

Inspectors performing sweeps and responding to complaints on properties also do not go through

entire plans approved during the permitting process and lack the resources to enforce plan

compliance after permitting inspection periods have passed. Landscaping plans and site plans are

not reviewed in the field after initial inspections.

Meetings with the Department of Sanitation, Department of Code Enforcement, and the

Department of Safety and Permits all brought up limitations and possible issues with enforcing

regulations within the City Code. New regulations for discount retailers could be properly

enforced with a strict adjudication process and high fines. The City has started performing more

sweeps of businesses and the creation of the CleanUpNOLA initiative has given departments

more personnel to inspect and enforce violations. The initiative will aid the City in enforcing

zoning, sanitation, and quality of life laws and citing violations.

Fines and Adjudication

The Department of Safety and Permits can impose fines on property owners in violation of the

City Code. These fines can only be imposed on property owners after an adjudication hearing

and when no measures have been taken to remedy the violation. Fines can result in $500 per

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violation. In order for Safety and Permits to impose more fines, a new adjudication process

would be followed for each additional fine. The adjudication process can be lengthy and each

new violation would have to go through the process.

Code Enforcement and the Department of Sanitation can also only enforce the City Code on

property owners and cannot write violations to the tenants of a property. The New Orleans Police

Department can issue fines and a citation that would eventually be heard in municipal court.

These NOPD citations could only be enforced on a particular person. For a violation to be heard

in criminal court, it would need to be for an individual in violation of a quality of life law. The

NOPD cannot bring a business or vendor into municipal court for violations. Even if NOPD had

the ability to take businesses to municipal court, it would still be up to the judge to prosecute and

eventually fine the individual or business. Quality of life issues brought to municipal court are

often not taken as a serious offense by judges. Violations on the property are heard in Civil

District Court.

Fines imposed by all departments after adjudication hearings can eventually result in a lien on a

property. If the property owner fails to pay a fine, and does not remedy a violation, a lien can be

placed on the property which is added to a property’s tax bill. Based on talks with Safety and

Permits, property owners and their tenants will take liens on a property seriously. Large

corporate tenants such as Family Dollar and Dollar General usually do not want to operate with a

building owner with multiple violations and liens.

Changes to the State Legislation for Enforcement Agencies

Currently, the Department of Sanitation, the Department of Public Works, and other enforcement

agencies lack the authority to issues citations to property owners; only the New Orleans Police

Department has the authority to issue citations. Sanitation rangers, and other City agencies, only

have the ability to issue verbal and written warnings to the property owners. They cannot write

warnings for tenants. This is an issue, specifically as it relates to small box discount stores,

because small box discount stores are typically not the property owners of the buildings where

they operate in New Orleans.

New state legislation proposed for the 2019 spring legislation session could give these

departments more enforcement power when property owners fail to abate vegetation, litter, and

other debris in the public right-of-way adjacent to a property, etc.

Recommendations

 Provide staffing resources to the Department of Safety and Permits for inspectors to

inspect and enforce floor plans, site plans to ensure “small box variety stores” are in

compliance with submitted plans.

 Allow the Department of Safety and Permits and the Department of Code

Enforcement the ability to fine multiple times for multiple violations. A $500 fine for

each violation should be heard at the same adjudication hearing.

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 Define clear roles for the Department of Sanitation and the Department of Code

Enforcement to ensure proper minimum property maintenance upkeep for property

owners.

 Promote the passage of the state law pertaining to right-of-way maintenance in order

to grant the Department of Sanitation, the Department of Public Works, and other

enforcement agencies the authority to issue citations for violations such as littering or

driving in a bicycle lane.

J. Summary of Recommendations & Text Changes

Proposed Comprehensive Zoning Ordinance Text

Definitions (Article 26)

Small Box Variety Store: A retail store between 5,000 and 15,000 square feet that sells at

retail an assortment of physical goods, products, or merchandise directly to the consumer,

including food or beverages for off-premises consumption, household products, personal

grooming and health products, and other consumer goods. Small box variety stores do not

include small box stores that:

1. contain a prescription pharmacy;

2. sell gasoline or diesel fuel;

3. primarily sell specialty food items (e.g. meat, seafood, cheese, or oils and vinegars);

4. dedicate at least 15% of shelf space to fresh or fresh frozen foods; or

5. dedicate less than 5% of shelf space to food sales.

Other Definitions

Fresh or Fresh Frozen Food: Food for human consumption that is unprocessed, or

otherwise in its raw state; food that was quickly frozen while still fresh.

This includes

unprocessed meat and seafood.

Grocery Store: A retail establishment primarily engaged in the sale of items in multiple of

the following categories: a general line of groceries, packaged frozen food, dairy products,

poultry and poultry products, confectioneries, fish and seafood, meats and meat products,

fresh fruits and vegetables, and other grocery and related products where fresh or fresh foods

including fresh meat, poultry, seafood, and produce make up 25 percent or more of the shelf

space and display area. A grocery store with at least 20,000 square feet of gross floor area

may sell packaged alcoholic beverages.

The proposed definition for fresh and fresh frozen food is based on the U.S. Food and Drug Administration’s

fresh, freshly frozen, fresh frozen, and frozen fresh definitions as described in Sec. 101.95 “Fresh,” “freshly frozen,”

“fresh frozen,” “frozen fresh,” Title 21, Volume 2 (Revised as of April 1, 2018), “Subchapter B: Food for Human

Consumption.”

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Home Processed Food Products: “Low-risk foods” in accordance with LA Rev Stat §

40:4.9. Home processed food products do not include animal products.

Agriculture. Land on which crops are grown and/or livestock are raised for sale, commercial

use, personal food production, donation, or educational purposes. Retail sales and home

food processing are permitted for all agriculture uses, subject to Section 20.3.C.

Use Standards (Article 20)

Article 20.3.MMM – Small Box Variety Store

5. In the Neighborhood Conservation District, a small box variety store is prohibited within

one (1) mile, or 5,280 feet, of any other small box variety store. Outside of the

Neighborhood Conservation District, a small box variety store is prohibited within two

(2) miles or 10,560 feet, of any other small box variety store. The required separation

distance must be measured in a straight line from the nearest point on the lot line of the

other property occupied by a small box variety store.

6. One litter can shall be placed for every thirty (30) linear feet of street frontage. The litter

can shall be placed directly outside the primary entrance. Where more than one (1) litter

can is required, the operator may place additional cans according to their discretion.

7. The operator of the small box variety store shall provide daily litter clean-up of the site

and along the public rights-of-way abutting the property.

8. Outside storage is prohibited except for propane tanks. All business, servicing,

processing, and storage operations shall be located within the structure.

Article 20.3.C – Agriculture

[…]

20.3.C.1 – Additional Bulk & Yard Regulations

All structures and other improvements are subject to the bulk and yard regulations of the district,

except as provided below:

d. There are no yard requirements for the planting of crops.

e. All structures used for the keeping of livestock shall be located a minimum of twenty-

five (25) feet from any lot line. This does not apply to apiaries, chicken coops, pigeon

coops, and aquaponic structures, which shall meet the accessory structure

requirements of Section 21.6.

f. Accessory structures associated with agricultural uses are permitted on lots

without a principal structure.

[...]

Proposed text to the Comprehensive Zoning ordinance is noted in bold, underlined font. Proposed deletions from

existing language of the Ordinance is noted with a strikethrough.

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Article 20.3.C.3 – Food Preparation, Processing, and Packaging

d. No food or other products of any plants or livestock may be prepared, processed,

or packaged in any residential district, except in the R-RE District. However, the

canning of plants or plant products Home food processing is permitted as part of

any agricultural use.

e. Food may be prepared, processed, or packaged at an agricultural use located in

any non-residential zoning district in which food processing is a permitted use, or

in any zoning district where food processing is a conditional use, upon

approval.

f. In any zoning district in which food processing is classified as a conditional use, a

property owner may apply for a conditional use to permit the preparation,

processing, or packaging of food or other products of any plants or livestock

raised on the agricultural use.

[…]

Article 20.3.C.6 – Retail Sales

Retail sales for an agricultural use are permitted at farm stands within the Open Space Districts,

Rural Development Districts, and any non-residential district, in all zoning districts in which

agriculture is a permitted use, or, where it is a conditional use, upon approval, subject to the

following standards:

c. Farm stands shall conform to the provisions of Section 21.6.

d. Retail sales are limited to the following:

i. Crops grown and/or livestock raised on the farm where the farm stand is

located.

ii. Other unprocessed food products, or home processed food products such

as jams, jellies, pickles, sauces, or baked goods created on the farm where

the farm stand is located.

Permitted & Conditional Uses (Articles 7 to 17)

Small Box Variety Stores and Grocery Stores

Below are the use tables that show the zoning districts where the small box variety store and

grocery store uses are proposed as permitted (“P”), conditional (“C”), and prohibited uses (blank

space). The table also lists the retail goods establishment use. The retail goods establishment use

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is not currently permitted in Open Space Districts (Article 7), Rural Development Districts

(Article 8), Historic Core Neighborhoods Residential Districts (Article 9), Historic Urban

Neighborhoods Residential Districts (Article 11), and Suburban Neighborhoods Residential

Districts (Article 13), and thus the use tables for these districts are not shown below.

In addition, the below use tables show the zoning districts where agricultural uses (with and

without livestock) are proposed as permitted (“P”), conditional (“C”), and prohibited uses (blank

space).

Table 16: Permitted & Conditional Uses – Small Box Variety Stores, Grocery Stores, and

Retail Goods Establishments District Permissions

Use Table: Historic Core Neighborhoods Non-Residential Districts (Article 10)

Uses

District

VCC-

E-1

VCS

-1

HMC

-1

C-2

Use

Standa

rds

[…]

Retail Goods

Establishment

Grocery Store

Small Box

Variety Store

Section

20.3.M

[…]

Use Table: Historic Urban Neighborhoods Non-Residential Districts (Article 12)

Uses

District

HU-B1A

HU-B1

HU-MU

Use

Standards

[…]

Retail Goods Establishment

Grocery Store

Small Box Variety Store

Section

20.3.MMM

[…]

Use Table: Suburban Neighborhoods Non-Residential Districts (Article 14)

Uses

District

S-B1

S-B2

S-LB1

S-LB2

S-LC

S-LP

S-LM

S-

Use

Standar

118

[…]

Retail Goods

Establishment

Grocery Store

Small Box

Variety Store

Section

20.3.M

[…]

Use Table: Commercial Center & Institutional Campus Districts (Article 15)

Uses

District

C-1

C-2

C-3

MU-

Use

Standards

[…]

Retail Goods

Establishment

Grocery Store

Small Box

Variety Store

Section

20.3.MM

[…]

Use Table: Centers for Industry (Article 16)

Uses

District

BIP

Use

Standards

[…]

Retail Goods Establishment

Grocery Store

Small Box Variety Store

Section

20.3.MM

[…]

Use Table: Central Business Districts (Article 17)

Uses

District

CBD-

CBD

-6

CBD-

Use

Standards

[…]

Retail Goods

Establishment

Grocery Store

Small Box Variety

Store

Section

20.3.MM

119

[…]

Maximum Total Floor Area for Commercial Uses

 In food desert areas, the CPC staff recommends allowing an additional 5,000 square feet

of floor area by right in grocery stores on major streets, where the commercial zoning

district may restrict it to 5,000, 10,000, or 25,000 square feet. The CPC staff recommends

that a grocery store wishing to take advantage of this additional floor area allowance

should also provide an additional 5% shelf space to fresh and freshly frozen foods beyond

the grocery store definition.

Permitting & Licensing

Occupational Licenses

 The Department of Safety & Permits and the Bureau of Revenue shall standardize the

small box variety store occupational license category to maintain consistency across

all existing and future small box variety stores including converting all renewals to

the appropriate new code.

 The City Council shall budget adequate resources for personnel and training to the

Department of Safety & Permits and the Bureau of Revenue for occupational license

reviews and renewals.

 The One Stop Shop shall modify the occupational/general business license

application to include requests for floor area, percentage of shelf space dedicated to

fresh or frozen foods, and whether the store will offer gasoline or diesel fuel or

contain a prescription pharmacy.

 The Department of Safety & Permits staff tasked with determining occupational

licenses categories prior to issuance of the licenses by the Department of Revenue

shall receive additional training about small box variety stores.

Enforcement

 Provide more staffing power to the Department of Safety and Permits to hire and train

inspectors to enforce floor plans and site plans to ensure “small box discount stores”

are in compliance with submitted plans.

 Allow the Department of Safety and Permits and the Department of Code

Enforcement the ability to enact multiple fines for multiple violations. A $500 fine for

each violation should be heard at the same adjudication hearing.

 Define clear roles for the Department of Sanitation and the Department of Code

Enforcement to ensure proper minimum property maintenance upkeep for property

owners.

 Promote the passage of the state law pertaining to right-of-way maintenance in order

to grant the Department of Sanitation, the Department of Public Works, and other

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enforcement agencies the authority to issue citations for violations such as littering or

driving in the bike lane.

Other Recommendations

Fresh Food Retailer Initiative

In order to encourage grocery stores, and healthy food in general, to locate in the communities

that most need them, the staff recommends:

 Continue the Fresh Food Retailer Initiative and examine the possibility of providing

additional incentives to areas with low food access, such as New Orleans East and the

Lower Ninth Ward.

Healthy Corner Store Program

In order to encourage sales of fresh produce within communities, the staff recommends:

 Continue to fund the Healthy Corner Store Program, contributing $100,000 for years

three through five of the program, with the possibility of extension beyond five years.

Plastic Bags Ordinance

Litter is a major problem in New Orleans and around retail locations. Plastic bags are often seen

clogging gutters and trapped in tree branches, though this is certainly not the only type of litter.

To combat litter and for environmental benefits, many cities and some states have enacted

ordinances prohibiting the use of disposable plastic bags. Members of a previous City Council

including the current Mayor considered sponsoring a motion that would require retailers to

charge customers for both plastic and paper bags, thereby encouraging shoppers to bring their

own reusable bags. If such a law were enacted, it would best be implemented on a state level to

ensure a level playing field; however, a citywide ordinance may still be effective. If a new

ordinance is adopted, continued allowance of paper bags should be strongly considered as these

bags break down more easily. Reusable bag give-away promotions should be part of any rollout.

Further Study

There are other ways to increase healthful food access, in addition to promoting the sale of

healthful foods in underserved areas. Mobile vending, food delivery, and increasing people’s

mobility are three such ways that can be especially helpful to people with limited mobility. Even

a grocery store in close proximity does not guarantee food access, as some people have no

vehicle, limited income, and/or physical impairments.

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Mobile Vending

Mobile vending is a moving vehicle that can come to certain locations and neighborhoods to sell

food such as fruits and vegetables. An example is Mr. and Ms. Okra, who have been well known

mobile vendors in New Orleans. Such businesses may not be able to offer the most affordable

prices and may have difficulty making a sufficient profit. However, this concept may warrant

further study of whether a program could be established to support mobile vending in food

deserts.

Food Delivery

Food delivery is a service that delivers selected food items to your home. Some grocery stores

offer this service. Prices may be different than those offered in the store and may require a

service fee. The service may also require internet access to place the order. Added expenses for

food delivery may make the service out of reach for those with limited incomes. However, if it

could be made to be of comparable expense to shopping in-store, this could be of great assistance

to those with limited mobility.

Increasing Mobility

Groceries can be difficult to transport without a vehicle. Many items are heavy and some people

are not physically able to carry them, which requires frequent trips to break up the purchasing

into manageable amounts. Many people without vehicles depend upon relatives, friends, and

volunteers to help them. Providing or strengthening systems to provide rides to the grocery can

be of great help even for those who are not particularly far from a grocery store.

Shelf Space Percentages

In light of a pending Memorandum of Understanding between the City and Tulane University for

their shelf space data research, staff recommends further study to determine appropriate and

feasible shelf space percentages dedicated to fresh or fresh frozen foods in both small box variety

stores and grocery stores.

Staple Foods Ordinance

Should the City desire a policy similar to Minneapolis’ Staple Foods Ordinance, staff

recommends further study by the Department of Health or other appropriate agency to determine

appropriate staple foods.

Next Steps

The Small Box Retail Diversity Study, directed by City Council Motion (As Corrected) M-18-

256, will be presented to the City Planning Commission on December 11, 2018. Before it

considers the Study, the CPC must first hold a public hearing. Taking public input into mind, the

CPC can choose to forward the Study to the City Council with or without changes to the staff

recommendations. If the CPC chooses to modify the recommendations, the staff will incorporate

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