(The Lion) — Kansas City’s government-funded grocery store is failing, in what may be a stark warning for New York.
Multiple problems, but mostly high crime, have impeded the grocery store’s success, according to Kansas City Councilman Nathan Willett and local residents.
Willett joined The Lion’s Chris Stigall to discuss the failure of a the KC Sun Fresh government-subsidized grocery store – which was intended to address “food desert” issues in urban areas, but by all accounts is failing both consumers and taxpayers.
The store’s woes have earned international attention as New York Democrat mayoral nominee Zohran Mamdani, an avowed socialist, has proposed city-owned grocery stores serviced by fare-free buses.
Willett, who was not on the city council when the KC store was established, said several factors have contributed to its nosedive.
He emphasized giving people free bus fare to the location was the biggest problem.
“The city is trying to solve a problem, and then the city subsidized people’s transit and created another problem,” Willett told Stigall. “And that’s exactly what the … mayor of New York is going to be trying to do, or the future mayor.”
Willett explained how the city and county invested millions of taxpayer dollars into the grocery store. The government even became its landlord, he said, entering into a contract for which the city is still on the hook.
The city invested $17 million in building the surrounding shopping mall, where the store is an anchor, and another $1 million building the supermarket, according to local KSHB 41 News.
The store has been struggling for years, but has been pilloried as recently as last month for “empty shelves and rotten smells” by national and international publications such as the Washington Post and the U.K.’s Daily Mail, reports the Heartlander.
The city last fall appropriated another $1.2 million in a bailout for the store, but negotiations with store operators held up payment.
Willett said the free bus fare program was introduced during the COVID-19 pandemic using one-time federal assistance.
A bus stop located directly in front of the store subsequently became a hub for criminal activity, with individuals using free transportation to loot the store.
Willett noted property crimes have risen across the city, including his district, where a Walmart now requires two off-duty police officers for security.
KC Fresh has hired three different security companies to address the crime problem, but none of them have worked out, City Manager Mario Vasquez told KSHB.
Willett said the city’s approach was to solve one problem by creating new problems – such as implementing free city bus fares in March 2020 that have since ended, but which reportedly added to crime at the complex.
“We’re just stacking problems on top of problems, and we’re back right back to where we were in that area,” Willett told Stigall. “It’s not safe anymore.”
Willett also wants greater oversight for the money the local government spent on the ill-fated grocery store scheme, suggesting the Kansas City Economic Development Council audit the store’s financial records to ensure accountability.
“What’s the private entity that owns the store saying about the experience?” asked Stigall.
Community Builders of Kansas City, the nonprofit owning the grocery store, declined to talk to KSHB about their plans for the store.
Tax records from Pro Publica pulled by the TV news station show the nonprofit had $8.9 million in revenue but expenses of $14.7 million in 2023, netting a loss of $5.9 million.
KSHB reporter Alyssa Jackson visited the store three times in the last month and said her latest visit showed her “the store’s decline appeared to have accelerated.”
The store featured nearly empty produce, dairy and meat departments, but plenty of processed food, according to the TV station.
“There is a smell, there is an odor, and it’s not a pleasant odor,” one local resident said.
Willett addressed the broader issue of food deserts, a term popularized during the Obama administration to describe areas lacking access to fresh produce and healthy food options.
He noted an Aldi grocery store, located a few minutes away from the struggling government-subsidized one, successfully provides fresh produce without city assistance.
Willett expressed concerns about the free bus fare program’s impact on public safety outside of issues with the store, citing instances of bus drivers being assaulted and individuals causing disturbances at bus stops.
Meanwhile, the public library across the street had virtually become a homeless shelter, he noted.
“And those same individuals are going in and ransacking this grocery store. And there’s videos that would not be appropriate for your viewers to see, that I’ve seen firsthand and over and over again, of just people totally nude running around that grocery store” openly stealing food, he added.
Willett advocated for screening bus passengers and implementing measures to hold criminals accountable.
Without addressing the crime and transportation issues, any grocery store would remain unsustainable regardless of additional funding, he concluded.
“It’s actually insane,” Willett said. “And until we get the bus situation [solved], it doesn’t matter how much money the city gives [the store], it’s not going to succeed. It will never succeed. And there’s a lot of private folks who are doing the right thing a few blocks away.”
Stigall, whose Philadelphia radio broadcasts reach nearby New York, said he hoped the message for his neighbors is clear.
“I hope the people of New York are listening this morning,” The Lion radio host said.