The matter at hand is the unavailability of full service grocery stores in a community area in East Oakland that is in effect currently a "Food Desert". Our objective is to open the first of planned four or more full service grocery stores in a targeted community area in East Oakland under the name CityEast Markets Inc. This first store will be a 20,000 sq. ft. grocery store.

The CityEast Markets Inc. concept was perceived and developed by The Kinte Center for the Study of Urban Commerce Inc., an Oakland based, California incorporated 501 (C) (3) charitable nonprofit organization that has a Youth Centered Job Creation mission in a targeted low income, majority Black urban community area in East Oakland bordered by 55th Avenue east to the Oakland-San Leandro border (The targeted community area).

The proposed grocery store is predicated on capturing portions of the existing estimated $127,471,835.03 (Over 127 million dollars) that the residents of our targeted community area on grocery each year; most of which is unfortunately spent in other communities. Research shows that our targeted community area with a population approaching 106,000 can support up to eleven (11.2) full service grocery stores. There are at best only two in the community area at this time.

The targeted community area is in effect a "Food Desert". Currently the residents of our targeted community area have to travel on average over 4 miles to purchase healthy grocery at a full service grocery store. The Kinte Center's objective is to start-up a single grocery store first with three more to follow for a total of four or more new grocery stores because the targeted community area is quite large with a population of over 106,000 and can easily support a group of new grocery stores.

Beyond bringing healthy food to the targeted community area, the proposed new store(s) will provide an opportunity for more of the targeted community area's grocery expenditures to be captured in the community to create jobs and economic opportunity. The proposed store(s) will reduce the distance residents of the targeted area travel on average to purchase healthy grocery .

The proposed new grocery store(s) will offer the residents of our targeted community area an alternative to fast food as the community area is oversaturated with fast food shops. There is one fast food shop for every 7,499 residents in our targeted community area VS one for every 25,964 residents in Oakland's more affluent combined areas of Piedmont Avenue, Montclair and Rockridge. Our targeted community area consists of three contiguous zip codes. Of the three zip codes two of them zip codes 94603 and 94621 are considered low income. According to Alameda County health Statistics the hospitalization rate for diabetes for ages 35 to 54 for zip code 94603 (low income area) is 355 per 1000 and the rate for 94621 (low income area) is 347 per 1000 VS a county rate of 113 per 1000. Further, available healthy foods in our targeted community area will help reduce levels of obesity and diabetes and other unhealthy food consumption problems in the area. CityEast Markets Inc. will enlist the services of nutritionist that will develop healthy and nutritional diet ideas and these will be sent to the over 30,000 households in the area that that the new store(s) will serve. Further, the plan calls for a nutritionist to be available for pre- arranged consultation. Lastly, CityEast Markets Inc. will issue customer discount cards and realizing that many in our targeted community area are on a monthly income cycle, customers will be able to use this same card to purchase groceries on credit during the last seven (7) days of each month as long as there is no existing balance.