Far East Dallas will get a new grocer

[75214Dad]

Originally Posted by TurtleCreek80

5 minutes away by car. The DMN article mentions the criteria for “food desert” including a certain percentage or raw number (can’t remember which) of households without cars being more than a mile from the closest grocery store in an urban area. So to live in that neighborhood without a car and need to walk 1.6 miles across I-30 to get to Wal Mart is a hardship.

I thought the structure of the deal with the city was great. They have to hire a quota of employees from the neighborhood / nearby zips and the developer is required to put in a sit down restaurant that isn’t fast food. I’ve never been to an El Rio Grande but it kind of sounded like a HEB/Central Market catering to Hispanic customers with a tacqueria, juice bar, on-side bakery, large meat counter, etc.

I stopped in the Pleasant Grove one a couple of times when I had reason to be down there, I'm a fan of the store.

I do wonder though, as a thought experiment, if it would be cheaper to just give Prime memberships to the carless households (food desert is defined as a certain number of carless households over a half mile from a grocery store). My parents haven't stepped foot inside a grocery store in a year and I'm not sure they ever will again- but they've been well fed from grocery delivery.

[TurtleCreek80]

Originally Posted by 75214Dad

I stopped in the Pleasant Grove one a couple of times when I had reason to be down there, I'm a fan of the store.

I do wonder though, as a thought experiment, if it would be cheaper to just give Prime memberships to the carless households (food desert is defined as a certain number of carless households over a half mile from a grocery store). My parents haven't stepped foot inside a grocery store in a year and I'm not sure they ever will again- but they've been well fed from grocery delivery.

That is a really great idea. I don’t know who you should send that to (city, Amazon?), but TBTB need to hear that one.

[Dallaz]

It’s funny that this news video talks about the very thing I was talking about in my first few posts


https://m.youtube.com/watch?v=a8Jn0E...ature=youtu.be

[Dallaz]

Originally Posted by ChristieP

Not exactly.

There used to be a large Tom Thumb at the same intersection, but it closed about 10 years ago due to being unprofitable. Evidently people in the area didn't shop there due to high prices, and there was also a lot of shoplifting going on.

And the crime (shoplifting) can be attributed to poverty (lack of jobs and opportunities). Which happens due to lack of investment and the continued degradation of the surrounding neighborhood. Grocery stores are in business to make a profit. If they can’t, they close or won’t open at all. Some retailers in Southern Dallas lock up some of their merchandise behind glass cases to curb theft. That’s when the city is suppose to step up and help revitalize the neighborhood and make it attractive to businesses. Building a store in a high crime/high poverty neighborhood isn’t going to fix that.

[compSciGuy]

I remember being an undergraduate and taking my bicycle to Randall's/Tom Thumb in the middle of the night to get food. The inconvenience of not having a car, and knowing that it was attainable and the ensuing benefit of needing a car in American society was definitely a motivational factor. Relying on public transportation (especially at inopportune times, could have possibly translated a 3-hour trip using public transit into only a 15 minute trip with a car).

[dallasboi]

Quote from the article in the OP.

This is what we saw during a recent visit to El Rio Grande Latin Market in Pleasant Grove: an abundant produce section surrounded by a taquería, a tortillería and a juice bar; a bakery with mounds of packaged conchas, croissants and dinner rolls, along with a case of cakes piled with frosting and strawberries; and a meat department so extensive that it curved around the back of the store. Fridges were stocked with regular dairy and vegan options; freezers carried five different kinds of Eggo waffles; and shelves were loaded with Corn Flakes, Froot Loops and Cheerios.

This is an old clip (and in Spanish)......but it gives an idea of what to expect.
https://youtu.be/FSHwoZlG8Qo

[DtX4415]

Originally Posted by Dallaz

I’m familiar with the area, but this is considered a Food Desert? Sam’s and Walmart are down the street on Buckner and Samuell. Probably less than 5 mins away.

The number of people that would attempt to cross the freeway on foot to get to that Walmart use to be insane. Worked in that area and you would see that occasionally, always surprised me the number that would actually make across.

[widespreadfan]

Originally Posted by TurtleCreek80

Cities give economic incentives to businesses all the time. Plano gave millions to Toyota. That’s how The Colony got Grandscape and Nebraska Furniture Mart and why the Cowboys now play in Arlington instead of Irving. I don’t see any difference in those deals and this grocery store one. Each time the city took on responsibility to get businesses into their city limits that the businesses wouldn’t have picked without the incentives. Rising tides lift all boats.

Furthermore, there are a lot more reasons why there is so little economic activity in lower income neighborhoods than crime. WFAA has been doing an outstanding series on redlining and banking below I-30. Most major banks refuse to lend in low income zips, much less open a branch there. So neighborhoods are stuck in a permanent state of blight without the development opportunities that wealthier zip codes have unless non-profits or government steps in to close the gaps.

Banks can buy or invest in low income housing (complete with tax breaks for the banks) to fulfill their federal obligations of “reinvesting in low income neighborhoods” per some of the 1970’s legislation to address redlining. WFAA’s investigators showed that Bank of America owned $50M of basically slum apartments in Pleasant Grove yet only underwrote TWO mortgages there in 2019. I know that’s housing and this thread’s topic is commercial, but if it’s that hard to get a mortgage in a low income neighborhood, can you imagine what it would be like to get a traditional commercial business loan or line of credit?!

It is called CRA credit. Banks can get CRA credit many different ways. The reason B of A only did two mortgages in that area is probably because B of A is terrible and people in that area realize that. They are probably smarter than to borrow from B of A to begin with. Banks can't discriminate as to certain areas in terms of making a lending decision. Banks look at credit history, cashflow (debt to income) and loan to value of the collateral. I loan money all over the place. I could care less what the zip code is where a borrower wants to buy a house. As long as it appraises and the loan to value ratio is where we need it to be that is what matters regarding the collateral.

[Blackspider]

Originally Posted by Dallaz

It’s funny that this news video talks about the very thing I was talking about in my first few posts

I have been getting sno cones in that area since I was in grade school (I am 36 now). Dated a woman who stayed in apartments right off Peavy. Went to Eastfield a little ways down the way. I am very familiar with the area. The shopping center where that barbershop is depressing. The parking lot is tore up to pieces. Every business is gone except that barber shop and the sno cone stand in the middle. There is a huge homeless camp in that empty building that used to be a Bingo Hall. I keep my head on a swivel when I'm there no matter what time of day it is. There was an auto place that opened up there and then moved soon after. That area is really rough.

[move4ward]

Originally Posted by ChristieP

Not exactly.

There used to be a large Tom Thumb at the same intersection, but it closed about 10 years ago due to being unprofitable. Evidently people in the area didn't shop there due to high prices, and there was also a lot of shoplifting going on.

I wonder if Aldi's or Walmart would succeed. They are ignoring the area.