Program Helps Iconic Grocery Rebuild in Historic Community

New Orleans, LA – HOPE (Hope Enterprise Corporation/Hope Credit Union) joined Mayor Mitch Landrieu, owner Dwayne Boudreaux, key partners and supporters at a groundbreaking ceremony to mark the start of an $8 million restoration of the iconic Circle Food Store.  The project will create an estimated 75 new jobs, many directed to residents of the Seventh Ward and the bordering Treme neighborhood.

The Circle Food Store, located at the corner of St. Bernard and North Claiborne Avenues, was incorporated in 1938 and for years provided groceries, prepared food, and services such as a pharmacy, a doctor, a dentist, a chiropractor, check cashing and banking, and a place to buy school uniforms.  The store was a pillar of the community before it closed after being badly damaged by flooding following Hurricane Katrina.

“The Circle Food Store was not only a full service grocery, it was a warm and welcoming community hub for generations of New Orleans residents and the first African-American owned and operated grocery store in our city,” said Mayor Landrieu.  “Bringing it back is a major accomplishment, and we’ve reached this milestone because of the perseverance of Dwayne Boudreaux, who was determined to see The Circle Food Store return better than it was before.  I commend him for never giving up on this iconic store.”

The total estimated cost for the Circle Food Store restoration is $8 million, with funding from a variety of sources.  The project received a $1 million loan from the Fresh Food Retailer Initiative (FFRI), managed by HOPE, with a forgivable amount of $500,000.

“HOPE is proud to manage the Fresh Food Retailer Initiative and provide the financing that will help the Circle Foods Store return to serve local families and create jobs in the Seventh Ward,” said HOPE CEO Bill Bynum.  “The fresh foods this neighborhood merchant provides will be one more part of what we’re doing to build healthy communities, create jobs, and stimulate economic development across New Orleans.”

In addition to the FFRI loan, the City provided a $100,000 Economic Development Fund grant to the project.  The project also includes a $1.7 million loan from First NBC Bank, a $1 million “PROP” loan from the Louisiana Office of Community Development, $2.2 million in Historic Tax Credit Equity, and $2.2 million in New Market Tax Credit Equity.

Boudreaux, who took over the store in 1991, said, “After so many years of working to rebuild The Circle Food Store, it is wonderful to know that we’re we are beginning construction.  The City’s support through the Fresh Food Retailer Initiative and the Economic Development Fund was instrumental in helping us get to this point, and the Berger Co. provided invaluable guidance through the funding process.  Now, I look forward to the day when our doors open again for customers.”

Interior renovations will bring an open, modern feel to the building.  The drop ceilings have been removed to reveal wooden trusses and to allow in natural light from skylights.  The building’s exterior will also receive a facelift, but the store’s distinctive curved facade and white and green color scheme will remain.  The project was designed by John C. Williams Architects and the general contractor is the McDonnel Group.

“The return of Circle Foods to New Orleans is like planting a flag that says ‘fresh, healthy food is back!’  The ripple effects include a healthier community and much-needed economic development for 7th Ward,” said The Food Trust Deputy Executive Director John Weidman.  “The Food Trust applauds Mayor Landrieu, Dwayne Boudreaux of Circle Food Store, HOPE, Tulane’s Prevention Research Center and all of our other partners for making this day a reality.”

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HOPE is a regional financial institution, community development intermediary and policy center that provides affordable financial services; leverages private, public and philanthropic resources; and engages in policy analysis in order to fulfill its mission of strengthening communities, building assets, and improving lives in economically distressed parts of the Mid South.  Since 1994, HOPE’s efforts have generated over $1.6 billion in financing and benefited more than 120,000 individuals in the Delta, Katrina-affected areas and other distressed communities throughout Arkansas, Louisiana, Mississippi and Tennessee.