Pasadena, Ca (2017)

Vallarta Food Enterprises

Investment

  • NMTC Amount: $8,820,000
  • Total Project Cost: $9,167,500

IMPACT

  • 10 FTE jobs
  • 165 construction jobs
  • 49,870 sq. ft. of real estate

CDEs

Investor

Vallarta Supermarket, a Latino owned and controlled company acquired the lease of a 49,870 sq. ft. former Vons Grocery in a severely distressed low-income community in Pasadena, CA.

Project Description

Vallarta Supermarket “Vallarta”, a Latino-owned and controlled company, acquired the lease of a 49,870 sq. ft. former Vons Grocery in a severely distressed low-income community in Pasadena, CA. Vons closed this store a year earlier due to changing demographics and declining sales. Vallarta’s willingness to purchase the lease, completely renovate, and open the new store is emblematic of their commitment to serving blighted and minority communities to provide healthy food options in areas designated as USDA Food Deserts. Vallarta now offers a full range of healthy foods to this severely distressed, low-income, and predominately Hispanic community. The new store offers grocery staples that reflect the multicultural food traditions of the Hispanic and other minority communities living nearby.

By increasing access to nutritious, culturally appropriate foods, Vallarta is directly addressing the prevalence of diet-related diseases while also strengthening the community through increased networks and community involvement. Vallarta Pasadena also provides a new pharmacy, in-store bank branch (Wells Fargo), and other food businesses in a neighborhood that has witnessed the rapid outward migration of stores offering healthy foods and services, including both Walmart and Vons, within the 12 months immediately preceding the opening of this beautiful new store. This was a single-CDE transaction with NMCC/TELACU providing a $9 million QEI. Chase Bank is the NMTC Investor. NMTC was needed to support the full scope of Vallarta’s large-scale investment to reposition the former Vons store in this underserved, severely distressed low-income community.

The new Vallarta store has enhanced the community’s economy, creating 80 construction and 182 permanent jobs, many of which went to residents of this low-income community who now have living wage permanent jobs with educational training and advancement opportunities. Nearly 80% of the jobs created from this Project have been filled by low-income persons, minorities, and residents of the surrounding community who were previously either underemployed or unemployed.

Full-time employees receive employment benefits, including healthcare, dental, vision insurance, and other benefits such as retirement plans and sick time off. Now in full operation, Vallarta Pasadena has been very well received in the local community. The bustling and beautiful store has become a focal point for this predominately Hispanic community. Vallarta now provides a full range of healthy food choices and other important goods and services to this severely distressed low-income community. Although challenging and very costly, Vallarta brings a new approach to these communities by investing significant capital and becoming highly involved in the local community.

MAP

655 North Fair Oaks Avenue, Pasadena, Ca 91103

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