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Eugene Downtown Public Market: Preliminary Feasibility Assessment
FINALREPORTOctober2016
Preparedfor:
LaneCountyEconomicDevelopmentCityofEugeneCommunityDevelopment
EugeneWaterandElectricBoard
Preparedby:CommunityPlanningWorkshop
AProgramoftheCommunityServiceCenter
Special Thanks & Acknowledgements
CommunityPlanningWorkshopwishestothankthefollowingindividualsfortheirassistancewiththisproject.First,wethankSarahMeans(LaneCountyEconomicDevelopment),AnneFifield(CityofEugeneCommunityDevelopment),andNancyToth(EWEB)forprovidingtechnicalguidancethroughouttheproject.WethankTimHicksforexpertlyfacilitatingthemanymeetingswehad.WethanktheLaneCountyFarmersMarketandSaturdayMarketforassistingwithoursurveys.Wethankalloftheindividualswhotookthetimetoprovideinputthroughoursurveysandphoneinterviews.WealsothankthemembersofourResourceGroupfortheirdedicationtotheideaandpromiseofapublicmarketindowntownEugene,andforthetimetheyinvestedtoprovideinsightfulcommentarythroughouttheproject.
ThisprojectwasfundedinpartbyLaneCountyEconomicDevelopment,theCityofEugeneCommunityDevelopmentDepartment,theEugeneWaterandElectricBoard,andtheEconomicDevelopmentAdministration(throughtheUniversityCentergranttotheUniversityofOregonCommunityServiceCenter).
Downtown Public Market Resource Group Brian Kelly, Lane Community College Casey Barrett, Obie Inc. Connie Sullivan, Lane County Public Health Greg Rikhoff, Lane County Jack Gray, Lane County Farmers Market Kimberly Cullen, Saturday Market Lynne Fessenden, Willamette Food and Farm Coalition Mike Sullivan, Lane County Farmers Market Sarah Medary, City of Eugene Stephanie Pearl Kimmel, Marche Steve Mokrohisky, Lane County Nancy Toth, Eugene Water and Electric Board
Community Service Center Research Team Robert Parker, AICP, Director Emily Brown, Project Manager Warren Clauss Sadie DiNatale Aniko Drlik-Muehleck Kevin Gilbride Corum Ketchum Andrew Martin
Facilitation Tim Hicks
About the Community Service Center TheCommunityServiceCenter(CSC)isaresearchcenteraffiliatedwiththeDepartmentofPlanning,PublicPolicy,andManagementattheUniversityofOregon.ItisaninterdisciplinaryorganizationthatassistsOregoncommunitiesbyprovidingplanningandtechnicalassistancetohelpsolvelocalissuesandimprovethequalityoflifeforOregonresidents.TheroleoftheCSCistolinktheskills,expertise,andinnovationofhighereducationwiththetransportation,economicdevelopment,andenvironmentalneedsofcommunitiesandregionsintheStateofOregon,therebyprovidingservicetoOregonandlearningopportunitiestothestudentsinvolved.
About the Community Planning Workshop CommunityPlanningWorkshop(CPW)isoneofthecoreprogramsoftheUniversityofOregon’sCommunityServiceCenter(CSC)(csc.uoregon.edu).Establishedin1977,CPWprovidesstudentstheopportunitytoaddressplanningandpublicpolicyproblemsforclientsthroughoutOregon.StudentsworkinteamsunderthedirectionoffacultyandGraduateTeachingFellowstodevelopproposals,conductresearch,analyzeandevaluatealternatives,andmakerecommendationsforpossiblesolutionstoplanningproblemsinOregoncommunities.
Table of
Contents
Chapter1:Introduction.................................................................................................1Background...........................................................................................................................1PurposeandMethods............................................................................................................3OrganizationofthisReport....................................................................................................5
Chapter2:APublicMarketinDowntownEugene.........................................................7BenefitsofaPublicMarket....................................................................................................9PreferredFacilitiesandAmenitiesforaPublicMarketinEugene.........................................10AmenitiesandFacilityFeatures...........................................................................................12Summary.............................................................................................................................15
Chapter3:TheDowntownPublicMarketConcept......................................................16GuidingAssumptionsandMarketPrinciples........................................................................16SpaceProgramandFacilityConcepts...................................................................................18Summary.............................................................................................................................20
Chapter4:OperationandGovernanceOptions...........................................................21Operation............................................................................................................................21CommercialSpace...............................................................................................................22VendorFeeStructure...........................................................................................................23GovernanceStructureConsiderations..................................................................................25
Chapter5:PreliminaryFinancialFeasibilityAssessment..............................................28KeyAssumptions.................................................................................................................29Revenue..............................................................................................................................30OperatingandMaintenanceExpenses.................................................................................31ResultsofthePreliminaryFinancialModels.........................................................................32PermanentLaneCountyFarmersMarketFacility.................................................................34ImplicationsfortheFeasibilityofaPermanentDowntownPublicMarket...........................36
Chapter6:ConclusionsandActionPlan.......................................................................38SummaryofRecentActions.................................................................................................38Conclusions.........................................................................................................................40ActionPlan..........................................................................................................................42Sequencing..........................................................................................................................46
AppendixA:FacilityConceptandDetailedFinancialModeling....................................48MethodsandAssumptions..................................................................................................48SpaceProgramandFacilityConceptsOverview...................................................................49Revenue..............................................................................................................................51Expenses..............................................................................................................................53SummaryofFinancialModels..............................................................................................57SensitivityAnalysis..............................................................................................................59
AppendixB:CaseStudies............................................................................................63SummaryofCaseStudyFindings.........................................................................................63
Conclusions.........................................................................................................................65Asheville,NC-WesternNorthCarolinaFarmersMarket......................................................66Bellingham,WA-BellinghamFarmersMarket.....................................................................69Boulder,CO-BoulderCountyFarmers’Market...................................................................72Burlington,VT-BurlingtonFarmers’Market........................................................................75Madison,WI-CityofMadisonFarmer’sMarket..................................................................79Olympia,WA–OlympiaFarmersMarket.............................................................................83
AppendixC:FacilityAmenitiesandCharacteristics......................................................88
AppendixD:ExistingLocalSimilar-sectorProgramsandFacilities................................90
AppendixE:SurveyResults..........................................................................................92SaturdayMarketSurveySummary.......................................................................................92SaturdayMarketSurveyResults..........................................................................................95LaneCountyFarmersMarketSurvey.................................................................................107LaneCountyFarmersMarketSurveyResults.....................................................................110
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene October2016 Page|i
EXECUTIVE SUMMARY
Thisreportpresentsapreliminaryfeasibilityanalysisforayear-roundpublicmarketconceptindowntownEugeneinvolvingboththeLaneCountyFarmersMarketandtheSaturdayMarket.Thepurposeofthepreliminaryfeasibilityassessmentistodeterminewhetheradowntownpublicmarketcouldgeneratesufficientrevenuetocoveroperatingandmaintenancecosts.Thefeasibilityassessmentanalyzedoneofmanypotentialconfigurationsforadowntownpublicmarket—ifthepublicmarketistomoveforward,additionalworkwillneedtobedonetorefinetheconcept.Theconclusionoftheassessmentisthatayear-rounddowntownpublicmarketcanbefinanciallysustainable,butthatmanyquestionswillneedtobeansweredregardingitslocation,design,governance,feestructure,andoperation.
Atthetimethisstudywascompleted,nodecisionhadbeenmadetocreateayear-roundpublicmarket.Thisstudyintendsto(1)determineiftheconceptcouldfinanciallysustainitselfshouldadecisionbemadetopursuethecreationofsuchamarket,and(2)provideusefulinformationfortheworkthatwouldfollowfromsuchadecision.Thepublicmarketconceptdevelopedandanalyzedinthisreportrepresentsonefeasiblemodelforconsideration,butdoesnotnecessarilyreflectthedesiresoftheSaturdayMarketorFarmersMarket.
Background
DowntownEugenecurrentlyhoststheLaneCountyFarmersMarket(LCFM)andtheEugeneSaturdayMarket.TheSaturdayMarketoperateseverySaturday,Aprilthroughmid-NovemberontheParkBlocksinEugene’sdowntown,andonweekendsatthecountyfairgroundsforthemid-NovembertolateDecemberHolidayMarket.LCFMoperatesnearlyyear-roundonorneartheParkBlocksandattheHolidayMarket.
Thetwomarketsco-exist,asindependentorganizationswithseparateorganizationalandmanagementstructuresanddistinctidentities,inamutuallybeneficialrelationship,allowingforsharedsuccessandgrowth.Bothmarketshaveexperiencedacontinuallygrowingnumberofvendorsandvisitorseveryyear,causingthemarketstooutgrowthespacetheycurrentlyoccupy.TheSaturdayMarkethasgrownfromanoriginalgroupof29vendorstonearly300vendors,andLCFMfeaturesover85farmoperationsfromaroundLaneCounty.Bothmarketshaveexpressedtheneedtoexpand:thecurrentconfigurationsandassociatedlimitationsmakeitdifficulttointegratenewvendorswhileallowingfortheefficientcirculationofvisitors.
TheEugeneCityCouncilvotedinJune,2016toextendtheUrbanRenewalDistrict(URD)indowntownEugene.CouncilamendedtheDowntownUrbanRenewalPlantofundfourprojects.Theamendmentallocatesupto$4.5millionofUrbanRenewalfundsforapermanent,year-roundFarmers’Market.Theamendmentalsoallocatesupto$5.2millionofUrbanRenewalfundingforimprovementstotheParkBlocksanddowntownopenspace.Thesetwoprojectsaddresstheissueof
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capitalfundingforadowntownpublicmarket,andwouldprovidefundingtoimplementtheconcept.
LaneCountyandtheCityofEugenecontractedwithCommunityPlanningWorkshop(CPW)toconductananalysisofthefeasibilityofayear-roundindoorpublicmarket.Thetwoagenciesinvitedrepresentativesfromthetwomarkets,keystakeholdersfromtheprivatesector,EWEB,andLaneCountyPublicHealthtobea“ResourceGroup”andtoprovideinputduringthecourseofthestudy.TheResourceGrouphelpedrefinetheconceptsasCPWconductedthestudy.
Thisanalysissoughttoanswerthequestion:Couldapermanent,year-roundpublicmarketfacilityindowntownEugenegenerateenoughrevenuetocoveroperationsandmaintenancecosts?TheconceptsanalyzedforthisstudyweredevelopedbyCPWbasedonourcasestudyresearchandvendorsurveys.TheconceptexploredinthisstudyisacombinedmarketthatwouldprovidespaceforvendorsfromboththeLaneCountyFarmersMarketandtheSaturdayMarket.Thisisoneofmanypotentialoptionsforadowntownpublicmarketandisusedasabenchmark.
Thisstudydoesnotadvocateforaspecificfacilityconcept.Whileitprovidesalotofinformationthatshouldinformafuturedesignprocess,developingafinalconceptwillbeaninvolvedprocessthatwillrequireinputfromthemarkets,localgovernmentagencies,otherdowntownstakeholders,andthecommunity.
The Public Market Concept
ThevisionofapublicmarketanalyzedinthisstudyfeaturesapermanentfacilitythatwouldhousevendorsofboththeSaturdayMarketandtheLaneCountyFarmersMarket.Inputfrompotentialvendors,marketrepresentatives,andcasestudyresearchindicatesthat,inadditiontoprovidingaphysicalstructure,themarketshouldprovidecertainamenitiesforvendorsandcustomers.Thisinputalsoraisesquestionsaboutoperation,governancestructure,whatthemarketfacilitymightlooklike,andwhereitmightbelocated.Thisphaseoftheprojectanswerssomeofthesequestions,andothersarereservedforthenextphase.
Acoreassumptionisthatthedowntownmarketwouldbeanattractivedestinationthatservesasameetingspacetospurinteractionbetweenresidents,visitors,businessowners,crafters,artisans,andfarmers.Withthisinmind,CPWandtheResourceGroupdevelopedthefollowingprinciplestoguidediscussionsaboutthefeasibilityassessment.TheEugenedowntownpublicmarketwill:
• BelocatedindowntownEugeneandwillservetheexistingmarkets–LaneCountyFarmersMarketandSaturdayMarket;
• Operateyear-round,withdaysandhoursofoperationspotentiallyvaryingbyseason;
• Bedesignedtooperateininclementweather,withflexiblespaceuse,andtoallowforfutureexpansion;and
• Retainthecharacterofthecurrentlyoperatingmarkets,withaprimaryfocusofsellingandshowcasinglocallygrownandproducedproducts.
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Key Findings
Publicmarketsprovideavarietyofpositivebenefitsincludingcreatingopportunitiesforjobsandbusinesses,increasingthepurchaseoflocallyproducedgoods,promotingaccesstohealthyfood,andservingasagatheringplacethatcreatesavibrantcommunityspace.ApublicmarketindowntownEugeneshouldprovidethesesamebenefits,andshouldmeettheneedsanddesiresofvendorsandcustomers,bothcurrentandfuture.Inthissense,apublicmarketshouldbeasuniqueasthecommunityitisdesignedtoserve.
Withthisinmind,itwasclearthattherewerenumerouspossibilitiesforhowapublicmarketindowntownEugenecouldlook,feel,andoperate.Whiledevelopingthepublicmarketconcept,inputfrompotentialvendors,casestudyresearch,andstakeholderinputhelpedidentifyarangeoffacilityoptions.Todevelopfinancialmodels,theseoptionsneededtobenarroweddowntoidentifythecharacteristicsthatwouldbethemostappropriateforthelocalcontextandallowthemarkettobefinanciallyfeasible.
Facility
Casestudyresearchshowedthatthesizeofpublicmarketsvariesgreatly,oftendependingoncommunitysizeandhowlongthemarkethasbeeninoperation.IndeterminingtheidealsizeofapublicmarketindowntownEugene,CPWandtheResourceGroupknewthatthemarketshouldprovidespacetoaccommodateallinterestedvendorswhilestillmaximizingindooroccupancy.BasedonthecurrentsizeofthesummermarketeventsontheParkBlocks,CPWidentifiedaneedtoaccommodateapproximately400vendors.Thetotalsitespacerequirementtohostthiseventisestimatedtobeapproximately85,000squarefeet(abouttwoacres).
Totestdifferentfacilityconfigurations,CPWmodeledthreepotentialfacilitysizesandspaceprograms,eachdesignedtoaccommodateadifferentnumberofvendorsinside(TableS-1).
TableS-1.ComparisonofSpaceConcepts
Governance and Management
Thegovernanceandmanagementstructureforadowntownpublicmarketwillimpactthewaythemarketfunctions.Governancestructurereferstowhowouldberesponsiblefortheoversightandmanagementofthemarketoperations.Thisincludesvendorrecruitment,leasing,staffing,collectingfees,accounting,andotherbusinessfunctions.Examinationofcasestudymarketssuggestedavarietyofpossiblegovernanceoptions.Halfofthecasestudymarketsaremanaged
Concept Area Percent Area Percent Area Percent Area PercentSmall(15,000sfstructure)
39,000 46% 31,000 36% 15,000 18% 85,000 100%
Medium(22,000sfstructure)
32,000 38% 31,000 36% 22,000 26% 85,000 100%
Large(29,000sfstructure) 25,000 29% 31,000 36% 29,000 34% 85,000 100%
OutdoorVending OutdoorOpen Facility Total
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collaborativelybyalocalnonprofitorganizationandalocalgovernmententity.Oneisrunsolelybyapublicentity.InOlympia,anonprofitorganizationmanagesthemarketwhilepublicentitiesownthemarket’sphysicalstructureandtheland.
CPW’sresearchconcludedthatsometypeofpublic/nonprofitpartnershipwilllikelyberequired.ThispartnershipcouldincludeSaturdayMarket,LaneCountyFarmersMarket,LaneCounty,andtheCityofEugene.Theleadgoverningorganizationwillneedtohaveexperienceworkingwithinthelocalcommunity,andacommitmenttothecontinuedenhancementanddevelopmentofthemarket,amongotherrequirements.ShouldadecisionbemadetodevelopapublicmarketinEugene,CPWrecommendsafacilitateddiscussionamongthenonprofitandpublicentitiesinvolvedintheParkBlockmarkets(theSaturdayMarketandtheLaneCountyFarmersMarket,theCityofEugene,andLaneCounty)toexploreandmakedecisionsabouttheissuesinvolved.
Market Operations
Marketoperationsincludethedaysandhoursperweekthatthemarketisopentothepublic,howspacewillbeused,andhowthevendorswillpayfeesforvendingattheevent.Itisimportanttonotethatmarketoperationswillrequireyear-roundattention—notjusteffortoneventdays.Allofthesefactorshavesignificantimpactonthecostsandrevenueofapublicmarket.CPW’sdeterminationofwhichoperationalmodelstouseforfinancialmodellingwasguidedbyinputfromtheResourceGroup,expressedpreferencesinsurveyresultsfrompotentialvendors,andcasestudyresearch.
Days of Operation
CPWanalyzedoptionsforthenumberofdaysperweekthatthemarketwouldoperate.Ourresearchstronglysuggeststhatoperatingbetweenoneandthreedaysperweekisoptimal.Thismostcloselyrepresentsthecurrentoperationsofthetwomarketswiththeexceptionthatthetwomarketsdonotcurrentlyoperateyear-round.Wenotethatmarketoperationscouldeasilybeincreasedinthefuturetoreflectvendorandpublicdemand.
Fee Structure
Identifyingpotentialfeestructureswasvitalbecausemarketoperationswillbeprimarilysupportedbyfeesthatvendorspaytosellatthemarket.Vendorfeesmustgeneraterevenuesufficienttomaintainmarketoperationswhilealsobeingagreeableandsustainableforpotentialvendors.Thefollowingconsiderationswerealsofactoredintothedeterminationoffeestructureoptions.
• Potentialvendorsindicatedsensitivitytoincreaseinfeescurrentlypaid.• LCFMandSaturdayMarketoperatewithtwodifferentfeestructures.• Amenitiesandahigherquality,largerspacewillrequirehigherfees.• Vendingfeescouldpotentiallyvarybylocationthroughoutthemarket.• Feescouldbecollectedonadailyormonthlybasis.• Vendorsshouldfeelthattheyarebeingchargedfairly.
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene October2016 Page|v
• Mechanismsforassessingfeesforutilityusealsopresentachallenge.• Alargemajorityofvendorsindicatedunwillingnesstopaymonthlyfeesin
excessof$150,andmanypreferredfeestobelessthan$80permonth.
CPWexploredmultiplefeestructuresforthemarketandidentifiedthreetomodel:aboothfeethatvariesbyboothsize,apercentageofgrossreceipts,andboothfeecombinedwithapercentageofgrossreceipts.Thebaselineassumptionswere$1.25persq.ft.permonthforboothfeesand5%ofrevenue.Eachfeestructureoffersadifferentlevelofrevenuepotential,whichwouldvaryinpracticebasedontheactualnumberofvendors,theirsales,andthesizeofbooththeyuse.Thefinaldeterminationofafeestructureshouldbethetopicoffutureconversationsbetweenthevendorsandthepublicmarket’sgoverningorganizations.
FeesforoperationandmaintenanceofthepublicmarketfacilitieswouldbeinadditiontofeesthatLCFMandSaturdayMarketvendorsalreadypaytosupporttheirrespectiveorganizations.
Amenities
Thelistofpotentialamenitiesthatapublicmarketcanoffervendors,customers,andcommunitymembersislarge.SurveyresponsesfrompotentialvendorsandcasestudyresearchallowedCPWtodevelopadetailedlistofpotentialamenitiesrangingfromthosethatwerevitaltomarketoperations,suchasrestrooms,tothosethatwerelessvital,including,forexample,afirepit.CPWalsoconsultedtheresultsofa2014consumersurveythatallowedpotentialcustomerstoindicatewhatamenitiestheywouldliketoseeincludedatapublicmarket.
Mostimportanttopotentialvendorswascoveredspaceforvending,aconvertiblefacilitydesign,accesstoutilities,andstoragespace.Customerswantedtobeabletoaccessavarietyofgoodsandservicesatthemarket.CasestudyresearchofmarketsfromBellingham,WA,Asheville,NC,Boulder,CO,Burlington,VT,andMadison,WIcontributedideaslikecommunalgatheringareas,loadingdocks,bikeandcarparking,eventstages,conferencerooms,andofficespace.AvisittotheOlympiaFarmersMarketmadeclearhowlandscaping,restaurants,andimprovedpublicspacecanpromotesocialactivityandincreasepatronage.
Becausetheprovisionofsomeamenitieswouldinfluenceoperatingexpenses,CPWincludedsomeoftheseamenitiesinthepreliminarycalculations.Thepreliminarymarketconceptsincludeapublicrestroom,commercialspace,openspace,utilityhookups,seatingarea,colocationofbothmarketstoprovideavarietyofgoodsandservices,andbothcoveredandoutdoorvendingspace.Shouldadecisionbemadetocreateapublicmarket,decisionsregardingwhatamenitiesthepublicmarketwillprovidewillbemadeduringthedesignphaseandafteralocationisidentified.
Financial Feasibility Summary
Thepublicmarketconceptcanbefinanciallyfeasibleifrevenuescoveroperatingandmaintenanceexpenses.Todeterminewhichconceptswouldbefinanciallyfeasible,CPWmodeledrevenuepotentialunderanumberofdifferentscenariostoincorporateavarietyoffeestructures,levelsofoccupancy,andsizesofoperation.
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Revenuepotentialforapublicmarketwillalsodependonanumberoffactors,includingthenumberofvendors(demand),thetotalamountoffeescharged,andgrossvendorsales.Financialmodelingshowsthatrevenuepotentialforthepublicmarketvariesgreatlyforeachofthefeestructures.Someofthefeeoption/conceptalternativesshowconsiderablesurplusrevenue.CPWassumesthatthepublicmarketwouldoperateatabreak-evenlevelandthatfeeswouldbesettocoveroperationalandmaintenanceexpenses.
TableS-2presentsasummaryofrevenueandoperatingexpensesforthethreespaceconceptsconsidered.Revenuesuseabaselineassumptionof5%ofsalesforfeestructures2and3.Allscenariosreflecta60%occupancyrateanda2%reservefund.Theresultsshowthatnotallofthefeestructuresresultinpositivenetrevenue.However,thesubsequentsection(Break-EvenAnalysis)showshowmodificationstofeeratesallowallfeestructurestogenerateabreak-evennetrevenue.
TableS-2:FinancialPerformanceSummary,CombinedMarketBaselineAssumptions
Note:Feestructure1assumes$1.25/sq.ft./mo.;feestructure2assumes5%ofgrossreceipts;andfeestructure3both.
CPWalsoexploredthequestionofwhatwouldhappenifayear-roundmarketstructureonlyservedtheLaneCountyFarmersMarket.TableS-3showstheresultsofCPW’sfinancialmodelingforLCFMwhichassumesanindoorfacilityof
Concept FeeStructure1BoothFee
FeeStructure2%ofGrossSales
FeeStructure3BoothFeeand%ofGrossSales
Revenue $383,948 $574,200 $926,359ExpensesLowExpense $239,200 $239,200 $239,200HighExpense $356,500 $356,500 $356,500
NetRevenueLowExpense $144,748 $335,000 $687,159HighExpense $27,448 $217,700 $569,859
Revenue $383,009 $574,200 $926,359ExpensesLowExpense $346,600 $349,600 $349,600HighExpense $511,750 $511,750 $511,750
NetRevenueLowExpense $36,409 $224,600 $576,759HighExpense -$128,741 $62,450 $414,609
Revenue $383,009 $574,200 $925,889ExpensesLowExpense $431,250 $431,250 $431,250HighExpense $637,100 $637,100 $637,100
NetRevenueLowExpense -$48,241 $142,950 $494,639HighExpense -$254,091 -$62,900 $288,789
Concept1-Small
Concept2-Medium
Concept3-Large
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene October2016 Page|vii
approximately11,000GSF.Thefacilityincludesspacefor80vendorbooths(10x10),circulationspace(1,600sf),twobathrooms(each200sf),andanoffice(920sf).Themodelportraysnetrevenueusingtwoexpenseestimates.Themodelassumesanaverageannual60%occupancyrate(incorporatinglowoccupancyinlow-demandseasonsandhighoccupancyinhigh-demandseason).Theresultssuggestthatatcurrentcapacity(80vendors),LCFMwouldnotgeneratesufficientrevenuesonitsownforayear-roundpublicmarkettobreakevenunderthefeeassumptions.AkeyquestioniswhetherLCFMvendorswouldbewillingtopayhigherfeesforayear-roundfacilitygivenascenarioinwhichtheywerenotco-locatedwiththeSaturdayMarketvendors.
TableS-3:SummaryofLCFMFinancialModel
Notes:Assumesanaverageannual60%occupancyrate.LCFM’sexistingfeestructureis$40per10x10boothperday.Feestructures1-3weredevelopedbyCPW.
Conclusions
CPWarrivedatthefollowingconclusionsbasedonourresearch.
• Adowntownpublicmarketcanbefinanciallyfeasible.BasedonCPW’spreliminaryfinancialmodeling,therevenuesfromapublicmarketindowntownEugenecouldbesufficienttocoveroperatingexpenses.Becausethepublicmarketconceptsusedasthebasisforfinancialmodelingarepreliminaryconcepts,theyareaccompaniedbyasetofuncertaintiesthatneedtoberecognizedwheninterpretingtheresults.
• Anappropriateindoorfacilitysizewouldbe15,000squarefeetwithpotentialtoexpand.Basedonexpressedinterestfrompotentialvendors,afacilityof15,000squarefeetonacombinedeventspaceofapproximately85,000squarefeetwouldbesufficienttomaintainafullandvibrantmarket.CPWrecommendsstartingwiththesmallestofthethreeoptionsthatcouldgrowasvendorandpublicdemandincrease.Thefacilitycouldalsoincludeconvertibleindoor-outdoorspace,beaestheticallyappealing,replicatethelivelyfeelofanoutdoormarket,andbeaccessibletoallmembersofthepublic.
• Co-locatingtheSaturdayMarketandLaneCountyFarmersMarketwithacombinedspacefootprintof80,000-90,000squarefeetisdesirableforfinancialsuccessofapublicmarket.Acombinedandco-locatedevent
LCFMExistingFeeStructure
FeeStructure1 FeeStructure2 FeeStructure3
RevenueBoothFee $332,800 $120,000 $120,000PercentofGrossReceipts $187,200 $187,200
TotalRevenue $193,024 $69,600 $108,576 $178,176Expense
TotalExpenseLow $208,000 $208,000 $208,000 $208,000TotalExpenseHigh $310,000 $310,000 $310,000 $310,000
NetRevenuewithLowExpense -$14,976 -$138,400 -$99,424 -$29,824NetRevenuewithHighExpense -$116,976 -$240,400 -$201,424 -$131,824
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withbothLCFMandSaturdayMarketoffersthegreatestopportunityforsustainablemarketoperations.Ouranalysisshowstotaleventspaceof85,000squarefeetwouldaccommodate400ormorevendorswhileprovidingamplespaceforcirculation,commercialactivity,openareas,andrestrooms.ThisiseffectivelythesizeoftheParkBlocksandhalfoftheparkingfacilitynorthoftheParkblocks(theButterflyLot),butwouldincludeacoveredstructure.
• Severalfeestructuresappeartobeviable;additionalworkisneededtodeterminewhichwouldbepreferable.Ourfinancialmodelsshowthatseveralfeestructureswouldgeneraterevenuesufficienttosupportoperationsofapublicmarket.Variablesincludeboothfeesand/orapercentageofgrosssales.Additionalworkwouldberequiredtodeterminewhichstructureispreferableandwhatratestoestablish.Thiswouldrequireworkingcloselywithpotentialvendorstoexploretheoptions.
• Optimalmarketoperationistwoorthreedaysperweekyear-round.Responsesfromsurveyssenttomembersofbothmarkets,aswellasdiscussionswiththeResourceGroup,indicatethatvendorswouldbeunableorunwillingtovendatapublicmarketmorefrequentlythancurrentoperations.Ouranalysisshowsthatoperatingtwiceaweekwouldbefinanciallysustainable.Expansiontomoredaysispossibleinthefutureifdesiredbyvendorsandconsumers.Itwouldbeimportanttomanagethespaceonnon-marketdays.
• Thecurrentmarketsandpublicentitiesinvolvedshoulddiscussgovernanceoptionsandotherissues.IfthePublicMarketoptionistobepursued,nextstepswouldrequirethatthecurrentmarketsandpublicentitiesinvolvedbegindiscussionsofgovernanceoptionsandotherissues.
• Feasibilityisaboutmorethanfinance.CPWbelievesthatfinancialfeasibilityisachievableforthismarketconcept,butthisisonlyonepieceofwhatisnecessarytomovetheconceptforward.Beforethemarketcanmoveforward,thelocationalissuemustbesolved.Otherquestionsaboutdesign,managementandgovernancearecriticallyimportanttomovingtheconceptforward.
Action Plan
CPWidentifiedseveralnextstepsthatwouldneedtobeaddressedifplanningforapublicmarketismovedforward.Oursuggestedactionstepsareintendedtohelpguidesuchadiscussionontheseissues,butarenotintendedtobecomprehensiveortoidentifyeveryissuethatmightemergeifthenextstepsaretakenonthepublicmarketconcept.IfthetwoMarketsdecidetopursuethepublicmarketconcept,CPWrecommendsthefollowingstepsbetaken:
1. SiteSelection:Thedesignphaseoftheprojectcannotmoveforwardwithoutasiteonwhichtobasedesigns.
2. DeterminationofGovernanceStructure:Thegovernancestructurewouldguideotherstepsinthisprocess,includingthebusinessplan.
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene October2016 Page|ix
3. DevelopBusinessPlan:Themarketwouldneedtodevelopafinalbusinessplanonceagovernancestructurehasbeenselected.
4. DesignProcess:Expertisefromarchitects,inputfrompotentialvendors,andinputfromthepublicwouldinformthedesignprocess.
5. SeekAdditionalFunding,ifnecessary:UrbanRenewalfundswillbeusedtoprovidefundingforanycapitalimprovementsthatwillbeneeded.Nevertheless,ifadditionalfundsareneeded,thesemoniesshouldbesoughtafter,potentiallythroughfundraisingcampaigns,duringorsoonafterthedesignphase.
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene September2016 Page|1
CHAPTER 1: INTRODUCTION
Thisreportpresentsapreliminaryfeasibilityanalysisforayear-roundpublicmarketconceptindowntownEugeneinvolvingboththeLaneCountyFarmersMarketandtheSaturdayMarket.Theconceptwouldprovidepermanent,coveredyear-roundvendingspacefortheLaneCountyFarmer’sMarketandtheSaturdayMarket.Thepurposeofthepreliminaryfeasibilityassessmentistodeterminewhetheradowntownpublicmarketcouldgeneratesufficientrevenuetocoveroperatingandmaintenancecosts.Thefeasibilityassessmentassessesoneofmanypotentialconfigurationsforadowntownpublicmarket—ifplanningforapublicmarketmovesforward,additionalworkwillneedtobedonetorefinetheconcept.Theconclusionoftheassessmentisthatadowntownpublicmarketcouldbefinanciallysustainable,butthatmanyquestionswillneedtobeansweredtorefinedesign,governance,andoperationalissues.
Background PublicMarket:Apermanentdestinationwherelocalandregionalfoodproducers,artisans,andbusinessesinteractdirectlywithconsumers.1
Publicmarketsenhancethelivabilityandeconomicvitalityoflocalcommunitiesandtheirregions.Theypromotepublichealth,improveaccesstohealthyfood,increaselocalfoodpurchases,createlocaljobs,improvethelocaleconomy,provideaspacetoshowcaseandpublicizelocalproducts,andprovidecommunitygatheringspaces.
DiscussionssurroundingthedevelopmentofapublicmarketandfoodhubinLaneCountystartedin2009.The2010LaneCountyLocalFoodMarketAnalysisfoundthatofthe$1.2billionworthoffoodproductsconsumedyearlyinLaneCounty,onlyaboutfivepercentissourcedfromLaneCounty.Asaresultofthe2010study,LaneCountyhiredaneconomicdevelopmentspecialisttofocusonthefoodandbeveragesector.WorkinginconjunctionwithBusinessOregon’s“TeamOregon”FoodProcessinggroupandotherlocalfoodproductionpartners,LaneCountyhelpedthelocalfoodproductionsectorgrowtoover135processors.
In2012theCityofEugeneandLaneWorkforcePartnershipacquiredfundingfromtheU.S.EconomicDevelopmentAdministration(EDA)toconductananalysisofthefoodandbeveragesectorinLaneCounty.Theanalysisconcludedthatthefoodandbeveragesectorisaneconomicengineforthelocaleconomythroughbrandingandeconomicidentity,jobcreation,andinfrastructuredevelopment.TheanalysislistedanumberofwaysthattheCountycouldpromotefurthergrowthinthesectorthroughnumerousavenuessuchasinfrastructureimprovementandthecreationofaregionalbrandingandmarketingstrategy.
1CommunityPlanningWorkshop.(2014).LaneCountyPublicMarket&FoodHubMarketAnalysis(Rep.).
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In2014,CPWconductedamarketanalysisforaconceptualpublicmarket/foodhubatanunspecifiedlocationinLaneCounty.Acoreelementoftheprojectwasahouseholdsurveyintendedtogaugelocalconsumerdemandforthefacility.Theconclusionswereencouraging:
• Anestimated6,000householdswouldshopatthefacilityatleastonceayear;67%ofthesehouseholdswouldvisitweekly;
• Somehouseholdswouldspenduptoone-quarteroftheirweeklygrocerybudgetatthefacility;
• Thefacilitycouldgenerateannualrevenuesofbetween$6millionand$9million;and
• Thefacilitywouldbeadestinationretaillocationthatcouldhaveimportantbenefitstothecommunityandsurroundingbusinesses.
The2014study,however,didnotevaluatethefinancialfeasibilityofapublicmarket—thefocuswastodetermineifmarketpotentialexistedbeforemovingontothenextstep.Duetocontinuedinterestfromthecommunityinthepublicmarketconcept,LaneCountysponsoredasetofscopingsessionsin2015toidentifypotentialnextstepsanddeterminewhethersupportexistedtocontinueanalyzingthefeasibilityofapublicmarket.Thecommitteeidentifiedarangeofareasthatneededtobeaddressedtomovetheconcepttothenextphase:
• Facilityconcept–whatusesareincludedinthepublicmarket?
• Facilityspaceprogram–howmuchandwhattypeofspaceisrequiredgiventhefacilityconcept?
• Facilitylocation–whereshouldthefacilitybelocated?
• Financialfeasibilityanalysis–istheconceptfinanciallyviable?
• Operationalmodelsandbusinessplan–whatoperationalandbusinessmodelsareappropriate?
• Capitalfundingstrategy–howmuchwillthefacilitycostandwhatsourcesexistforthesefunds?
ThatsetofmeetingsledtodevelopmentofaworkprogramforafeasibilityassessmentandanagreementthatthemarketsitewouldbelocatedindowntownEugene.Thisstudydoesnotaddressallthequestionsabove–itfocusesonanassessmentoffinancialfeasibility.Specifically,thisprojectsoughttoanswerthequestion:Couldapermanent,year-roundpublicmarketfacilityindowntownEugenegenerateenoughrevenuetocoveroperationsandmaintenancecosts?TheconceptexploredinthisstudyisacombinedmarketthatwouldprovidespaceforvendorsfromboththeLaneCountyFarmersMarketandtheSaturdayMarket.Themarketswouldcontinuetobeco-locatedandwouldretainthespiritofthecurrentmarkets.Thisisoneofmanypotentialoptionsforadowntownpublicmarketandisusedasabenchmark.TheconceptsanalyzedforthisstudyweredevelopedbyCPWbasedonourcasestudyresearchandvendorsurveys.Theconceptswererefinedthroughconsiderableinputfromthe“ResourceGroup”(agroupoflocal
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene September2016 Page|3
stakeholdersthatincludedrepresentativesfromthetwomarkets,theprivatesector,andlocalgovernments).
Thisstudydoesnotadvocateforaspecificfacilityconcept.Whileitprovidesalotofinformationthatshouldinformafuturedesignprocess,developingafinalconceptwillbeaninvolvedprocessthatwillrequireinputfromthemarkets,localgovernmentagencies,otherdowntownstakeholders,andthecommunity.
LaneCounty,theCityofEugene,EugeneWaterElectricBoardandtheUniversityofOregonCommunityServiceCenter(CSC)partneredtofundthisstudy.
Purpose and Methods ThepurposeoftheprojectwastodetermineiftheoperationofapublicmarketcouldbefinanciallyfeasibleindowntownEugene,andunderwhatconditionsthemarketwouldbefeasible.Whilethefinancialmodelingrequiredassumptionsaboutthemarketconceptandmanagementstructure,theintentoftheprojectwasnottoarriveatdecisionsaboutfacilitydesign,location,orfundingsources.
Tocompletethefeasibilityassessment,thisstudy:
• Solicitedinputandcommentaryfromagroupofstakeholders(calledthe“ResourceGroup”)overaseriesofmeetings;
• GatheredinformationfromcomparablepublicmarketselsewhereintheU.S.;
• SurveyedmembersoftheLaneCountyFarmersMarketandSaturdayMarkettoexploreinterestintheconceptamongvendors;
• Developedaspaceconcepttounderstandspaceandsiteneeds;
• Identifiedpotentialoperationalandorganizationaloptions;and
• Developedpreliminaryfinancialanalysisincludinguse,revenue,andcostestimates.
Figure1-1showstheprocessfortheprojectindescendingchronologicalorder,beginningwiththe2014CPWPublicMarket&FoodHubMarketAnalysis.Thehighlightedareasingreenarecomponentsaddressedinthisstudy.Futurephaseswilladdressissuesoflocation,siteandfacilitydesign,businessplans,andotherelements.
CPWusedseveralmethodstogatherinformationforthefinancialfeasibilityassessmentincluding:
1. CaseStudiesandInterviews:Thisinvolvedgeneralresearchthroughwebsites,newsarticles,anddocumentsavailableontheInternet.WesupplementedtheInternetresearchwithpersonalinterviews.TheCPWteamalsovisitedtheOlympiaFarmersmarkettosupplementtheOlympiacasestudy.
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Figure1-1.PublicMarketAssessmentProcess
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2. SurveyAnalysis:CPWadministeredsurveystoLaneCountyFarmersMarketandSaturdayMarketvendors.Thesurveysfocusedondatatounderstandvendorinterestinapublicmarket.Keydimensionsincludedseasonalityofoperations,numberofdaysperweek,revenuepotential,feestructureoptions,andfacilities.
3. StakeholderInput:CPWandtheprojectpartnersmetfivetimeswithagroupofkeystakeholders(calledthe“ResourceGroup”).ThechargeoftheResourceGroupwastoprovidedirectiontotheresearchteamandshareexpertknowledgeontechnicalaspectsofthestudy.AlistoftheResourceGroupmembersisincludedintheAcknowledgementssectionofthisreport.
CPWuseditsresearchtodevelopestimatesoffacilityandspacedemand,revenue,andcosts.Thedatainformedasetoffinancialmodelsthathelpdeterminethefinancialfeasibilityofadowntownpublicmarket.Thefinancialmodelingiswhatistypicallycalledanoperationalfeasibilityassessment.Inshort,themodelingevaluatesfacilityoperationalperformanceassumingnocapitalcostsordebtservice.ThisisreasonablegiventheEugeneCityCouncil’srecentextensionoftheDowntownUrbanRenewalDistrict(URD)andthepotentialfundingforafarmer’smarket2outlinedintheUrbanRenewalPlan.
Organization of this Report Thisreportisseparatedintosixchaptersandseveralappendices.Theremainderofthisreportisorganizedasfollows:
Chapter2–APublicMarketinDowntownEugeneprovidesbackgroundinformationonthecurrentstateofthetwomarketsoperatingindowntownEugene(SaturdayMarketandLaneCountyFarmersMarket)andexploresthebenefitsthatapermanentpublicmarketcouldprovidetothecommunity.Thischapteralsooutlinesconsumerandvendorpreferencesforfacilitiesandamenitiesatadowntownpublicmarket.
Chapter3–TheDowntownPublicMarketConceptbroadlydescribestheconceptsforadowntownpublicmarket.TheconceptsarebasedonassumptionsandprinciplesdevelopedbyCPWwithinputfromtheResourceGroup.
Chapter4–OperationandGovernanceOptionsassessesoperationalmodelsincludingdaysofoperation,commercialspace,andfeestructures.Thischapteralsoanalyzesgovernancestructureoptionsandothermanagementconsiderationsforthepublicmarketfacility.
Chapter5–PreliminaryFinancialFeasibilityAssessmentsummarizesCPW’sfinancialmodelingandpresentsourpreliminaryassessmentofthefinancialfeasibilityofthepublicmarketconcepts.
2Theurbanrenewalplanspecificallycallsoutpermanentfacilitiesfora“farmers”market.Theconceptofapublicmarketisbroaderandcanincludecraft,preparedfood,andothervendors.
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Chapter6–ConclusionsandActionPlanpresentsCPW’sconclusionsandrecommendationsrelatedtothefeasibilityassessment.Thereportconcludeswithalistofpotentialnextsteps.
Thisreportalsoincludesseveralappendices:
AppendixA–FacilityConceptandDetailedFinancialModeling
AppendixB–CaseStudies
AppendixC–FacilityAmenitiesandCharacteristics
AppendixD–ExistingLocalSimilar-ProgramsandFacilities
AppendixE–SurveyResults
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CHAPTER 2: A PUBLIC MARKET IN DOWNTOWN EUGENE
DowntownEugenecurrentlyhoststheLaneCountyFarmersMarketonthecounty-owned“butterflylot”andtheSaturdayMarketonthe“ParkBlocks”along8thAvenue.In2015,theLaneCountyFarmersMarketcelebratedits100thanniversaryandSaturdayMarketcelebratedits45th.BothmarketscantracetheirrootsattheParkBlockslocationtotheEugeneProducer’sMarket,foundedin1915.
Establishedin1970,theEugeneSaturdayMarketbeganasacooperativeactionbetweenlocalartisansandtheCityofEugene.Citizensexpressedoppositiontothemarket’soriginallocation.Inresponse,SaturdayMarketworkedwithLaneCountytofindapermanentlocationsuitabletoamarketatmosphere,finallyreturningtotheoriginallocationoftheEugeneProducer’sMarket(currentlytheLaneCountyFarmersMarket)ontheParkBlocks.TheSaturdayMarketisastapleofEugene,operatingeverySaturday,Aprilthroughmid-Novemberdowntown,andonweekendsatthecountyfairgroundsforthemid-Novembertolate-DecemberHolidayMarket.TheSaturdayMarketgrewfromanoriginalgroupof29vendorstowhatisnowanorganizationofnearly300vendors.
Re-establishedin1979,theLaneCountyFarmersMarket(LCFM)beganasanadditiontotheSaturdayMarkettodisplaythefarmbountyoftheWillametteValleyandtoattractabroaderclientele.Afterre-establishment,LCFMestablisheditselfasastandaloneorganization.Today,LCFMoperatesnearlyyear-roundonthe“ParkBlocks”andattheHolidayMarket,withTuesday,Thursday,andSaturdaymarketdays.LCFMgrewfrommodestbeginningstobeacriticalretailinginfrastructurethatsupportsover85farmsandfarmoperationsinLaneCounty.
Thetwomarketscoexistinamutuallybeneficialrelationship,allowingforsharedsuccessandgrowth.Combinedsuccesshasbroughtacontinuallygrowingnumberofvendorsandvisitorseveryyear,causingthemarketstooutgrowthespacetheycurrentlyoccupy.SaturdayMarketandLCFMvendorsurveyresponsesshowthatmanyvendorsperceivethemarketeventswillcontinuetogrow.Thecurrentconfigurationsandlimitationsmakeitdifficultforthemarkettointegratenewvendorswhilealsomaintainingtheefficientcirculationofvisitors.
TheareasoftheParkBlocksusedfortheSaturdayMarketcompriseabout47,650squarefeet.TheareausedbytheLaneCountyFarmersMarketisabout26,750squarefeet.TheCityofEugeneandLaneCountybothcurrentlyprovidesomeelementofsupporttothemarkets,chargingthemadiscountedrateforoperatinginthesepublicspaces.SaturdayMarketpays$5,000annuallytotheCityforuseoftheParkBlockspace.LCFMpaystheCounty$25pereventdayforuseofthespaceadjacenttotheButterflylot.Figure2-1showsthecurrentspaceuseofthetwomarketsduringSaturdayevents.
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Figure2-1.LocationoftheEugeneSaturdayMarketandLaneCountyFarmersMarket
Source:CommunityPlanningWorkshop,2016
TheLaneCountyFarmersMarket,witharound100vendors,isconstrainedfromexpansiononallsides,andtheSaturdayMarket,witharound300vendors,hasreachedexpansioncapacityaswell.
LCFMhasexpressedtheneedtoexpandtoaccommodatethegrowingmarket,specificallysuggestingamoreattractiveandfunctionalvenueforapermanent,year-roundfarmersmarket.Inresponse,theEugeneCityCouncilvotedinJune,2016toextendtheUrbanRenewalDistrict(URD)indowntownEugene.CouncilamendedtheDowntownUrbanRenewalPlan,andallocatedupto$4.5millionofUrbanRenewalfundsforapermanent,year-roundFarmers’Market.
ThetwomarketsindowntownalreadyprovidevaluablebenefitstotheEugenecommunity,allowingforthedisplayoflocalart,crafts,food,andculture.Apermanentpublicmarketwouldprovideampleandattractivespaceforthemarketeventswherelocalandregionalvendorscancontinuetointeractdirectlywith
SaturdayMarketLaneCountyFarmersMarket N
8th Ave.8th Ave.
ParkBlock
ParkBlock
ButterflyLot
50ft.
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customers.Apermanentlocationwouldalsoprovideamenitiesthatarenotavailableorpossibleinthecurrentmarketformat.
Benefits of a Public Market Publicmarketsprovideanarrayofculturalandeconomicbenefitstothelocalcommunity.Throughresearchofhistoricalexamplesandcasestudies,CPWfoundthatpublicmarkets:
• Actasaretailoutletandeconomicincubationtoolforlocalbusinesses;
• Contributetoeconomicgrowthforthewholecommunity;
• Increaselocalfoodpurchasesandpublicizelocalproducts;
• Promotepublichealthandwellbeingbyimprovingaccesstohealthyfood;
• Serveasasourceofequitableandaffordablefooddistribution;and
• Provideacommunitygatheringplaceandcontributetoathrivingcommunity.
IncubationforsmallbusinessesisakeypieceofeconomicdevelopmentinthemoderneconomyandhashistoricallybeenoneoftheachievementsofthecurrentmarketsindowntownEugene.Inhisarticle“PublicMarketsasCommunityDevelopmentTools,”AlfonsoMoralesdescribeshowpublicmarketshavefunctionedaseconomicincubatorssincetheearly1900s.Thelocalexchangeofgoodsisenhancedbotheconomicallyandsociallybecausepublicmarketsallowforface-to-faceinteractionbetweenvendors(thosewhogrowormaketheproducts)andconsumers(thosewhobuytheproducts).3
Atthecommunityscale,publicmarketsserveasananchorlocation,andsomebusinessesbenefitfromlocatingincloseproximitytothemduetotheincreasedactivity.Forexample,theconstructionoftheOlympiaFarmersMarket(WA)generatedenoughcommercialactivitytoattractadditionalbusinessestothearea,whichisnowknownastheMarketDistrict.
Marketscanalsofunctionasasourceofequitablefooddistribution,bringingaccesstofoodtoisolatedurbanandruralareasneighborhoodsthathavepreviouslybeenunderservedbyfreshfoodoutlets.4Byprovidingfoodaccess,apublicmarketcanpromoteeconomicactivityaswellasimproveacommunity’shealthandwellbeingwhichhelpsrevitalizebothpersonandplace.Inadditiontoensuringaccesstofreshfoodandprovidingadistributionlocationforfarmers,contemporarypublicmarketsalsoimprovesocialcapitalbygeneratingandreinforcing“thepresenceofathrivinganddynamiccivilsociety.”5
3Morales,A.(2009).PublicMarketsasCommunityDevelopmentTools.JournalofPlanningEducationandResearch,28(4),426-440.RetrievedMay9,2016,fromhttp://jpe.sagepub.com/content/28/4/426.refs.4McMillan,T.(2016).“InFlintMich.,MovingTheFarmersMarketsDrewMorePoorShoppers.”OregonPublicBroadcasting,RetrievedMay10,2016,fromhttp://www.opb.org/news/article/npr-in-flint-mich-moving-the-farmers-market-drew-more-poor-shoppers.5Kurland,N.B.,&Aleci,L.S.(2015).Fromcivicinstitutiontocommunityplace:ThemeaningofthepublicmarketinmodernAmerica.Springer,505-521.
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InanOregonPublicBroadcastingarticlefromFebruary2016,TracieMcMillandescribesthecommunitybenefitscreatedwhenFlintMichigantransformeditscar-onlyfarmer’smarketintoawalkablefarmer’smarketbyrelocatingittoitsdowntown.Withthemarketdowntown,theSNAPspendingatthemarketincreasedfrom$65,000to$140,000peryear,busridershiptothemarketincreasedfromonepercenttosixpercent,andthemarketsawmajorincreasesinpatronsfromthecity’spoorestneighborhoods.6Bymakingthemarketmoreaccessibletoavarietyofpatrons,Flintincreasedpublictransitridership,providedfreshandhealthyfoodtomorepeople,andincreasedthesalesoflocalproducts.
TheLaneCountyFarmersMarkethasbeeninEugeneforover100yearsandtheSaturdayMarketfornearly50years.Thesemarketsprovideanatmospheredowntownthatdeliversmanyofthebenefitsofpublicmarketsdescribedintheliterature.Bycommittingtoapermanentpublicmarket,Eugenecouldexpanduponthesuccessofthemarketstodateandexperiencemoreofthebenefitsprovidedbypublicmarkets.
Preferred Facilities and Amenities for a Public Market in Eugene
The2014LaneCountyPublicMarket&FoodHubMarketAnalysisidentifiedconsumerpreferencesforalocalpublicmarketspacethroughasurveyofhouseholdsintheEugene-Springfieldarea,anddemonstratedthedesireoftheEugenecommunityforapermanentpublicmarketfacility.Theresponsestothe2016surveysofSaturdayMarketandLaneCountyFarmersMarketvendorsvalidatethepreferencesofconsumers.Inshort,thesurveydataprovideanunderstandingofkeyelementsofapublicmarketincludingpreferredproducts,amenities,hoursofoperation,andthecommunity’sdesiretoshopatapermanentlocation.Thefollowingsectionssummarizewhatsurveyrespondents(toboththeconsumerandvendorsurveys)indicatedtheywantinapublicmarketandhowthesepreferencessupporttheideaofapublicmarket.AppendixEpresentsdetailedresultsoftheLCFMandSaturdayMarketsurveys.
Whilethisprojectdoesnotincludeadetailedfacilitydesign,CPW’sresearchidentifiedanumberoffacilitydesigncharacteristicsthatshouldbeconsideredduringthedesignphase.Thissectiondescribesconsumerandvendorpreferencesforfacilitiesandamenitiesinapermanentdowntownmarket.Ourresearchsuggeststhatabroaderrangeoffacilitiesandamenitieswillattractmoreconsumersandvendors.
Customer Experience
Respondentstothe2014consumersurveyindicatedthedesirethatapublicmarketofferafullandholisticexperience;theydonotsolelywantaplacetopurchaselocalproductsandservices.Forinstance,respondentswantthepublicmarkettobeaplacetospendtimewithfriendsandfamilyandforface-to-faceinteractionbetweenvendorsandconsumers.Potentialvendorsalsoexpressedthedesiretovisitandvendatamarketwithafunatmosphereandliveentertainment,
6McMillan(2016).
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includingmusic,programming,anddestinationslikerestaurantsorshops.ThesepreferencesarecurrentlyprovidedforbythemarketsindowntownEugene,butapublicmarketwouldprovidetheseamenitiesyear-round.
Products and Services
Resultsfromthe2014consumersurveysuggestconsumerpreferenceforlocalandorganically-producedgoods.Fortypercentofhouseholdsurveyrespondentsindicatedawillingnesstospendtheirmoneyonlocalgoods,and25%reportedthattheywouldspendmoremoneyonlocally-producedandorganicfoodsiftheyweremoreavailable.Apermanentpublicmarketwouldincreasetheavailabilityoflocalproductsbyprovidingaspacetovendgoodsmorethanonceortwiceperweek.
Figure2-2showsconsumerpreferencesforavarietyofproductsthatthemarketcouldoffer,includingfreshproduce,preparedfoods,arts/crafts,andcommunityinteraction.Akeyimplicationofthesurveydataisthatconsumerswantabroadrangeofgoodsandactivities.
Figure2-2.ConsumerPreferencesforaPermanentPublicMarket
Source:CommunityPlanningWorkshop,2014
AlloftheseproductsandservicescurrentlyexistattheeventsonSaturdays,butapermanentfacilitywouldallowformarketexpansionandwouldoffertheseservicesinamoreaccessibleandwelcomingway.
Facility Design and Amenities
Bothconsumerandvendorsurveyrespondentsidentifiedthedesireforapublicmarketfacilitytohaveaflexibledesign.Alargemajorityofconsumerandvendorrespondentswantafacilitythatcanconvertfromindoortooutdoorspace—70%ofconsumersand60%ofvendorspreferredaconvertiblebuildingwhereoneormorewallscouldopenormove.Manyconsumerrespondents(52%)wantoutdoorspaceforanopenairmarketwhilesome(30%)liketheconceptofacompletelyenclosedfacility.Withinthefacilityitself,29%ofvendorrespondentssaidthattheypreferredpermanentstallsand23%preferredtemporarystalls.
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Insummary,potentialpatronsandvendorsappeartopreferapublicmarketinafacilitythatservesmanyfunctions.Themostimportantaspectsweretheprovisionofavarietyofamenities,suchasvendorbooths,restaurants,breweries,bakeries,andclasses,aconvertibleconstruction,andthatthepublicmarketshowcasethequalityofLaneCountylocalgoods.
Amenities and Facility Features Apermanentdowntownpublicmarkethasthepotentialtooffermanyoftheamenitiesandfacilityfeaturesinwhichconsumersandvendorsexpressedinterest.Theseincludeaccesstoutilities,storageforvendors,landscapedopenareas,eventspace,aconvertiblebuildingdesignandrestaurants.Manyofthesewouldnotbeavailableinanopenairmarket.
Amenities
Amenitiescandrawcustomers,stimulatevendorinterest,andpromotesocialinteractionatthemarketduringeventhours.Theyprovideadditionalservicesthatenhancetheexperienceofbothvendorsandvisitors.Forthesereasons,apublicmarketinEugeneshouldincludeamenitiesinadditiontothoserequiredformarketoperation.Forexample,afirepitwithintheopenareaofthemarketcouldserveasacentralareatoinspiresocialinteractionorattractpatronstothemarketduringeveninghours.
CPW’svisittotheOlympiaFarmersMarketdemonstratedhowdesignatedandimprovedpublicspacecancreatea“happening,”oraplacethatpeoplevisitsolelyforthesakeofbeingthere.Figure2-3showstheOlympiafoodcourtwherepermanentimprovementsandlandscapingcoalescetoprovideadesirablespace.
Figure2-3.Olympia,WAFarmersMarketAnchorBusinessArea
Source:CommunityPlanningWorkshop,2016.
InterviewswiththemembershipofOlympiaFarmersMarkethelpedCPWunderstandtherangeofamenitiesthatapermanentpublicmarketinEugenecouldprovideforbothvendorsandconsumers.Theseincludedsecurestorage,vendorparking,collocationoffoodandcraftvendors,permanentrestrooms,andsite
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security.AmoreextensivelistofpreferredmarketamenitiesisincludedinAppendixC.
Facility Features
Apermanent,partially-enclosedmarketspacewouldreducesomeofthelimitationsthatthecurrentopen-airmarketsimpose,openingarangeofopportunitiesforsiteandfacilitydesign.Whilelocationandsitecharacteristicswillbekeyconsiderations,CPW’sresearchidentifiedpotentialstructuraloptionsthatworkinothercommunities.Oneoptionforfacilitydesignisapavilion-stylestructurewithapermanentroof.Thistypeofcovered,outdoorfacilitycanprovideshelterfromtheelementsbuthaslesscapacityforprovidingamenities.Figure2-4,fromtheCovington,VAFarmersMarket,showsapavilionstyledesign.
Figure2-4.Covington,VAFarmersMarket
Source:Covington,VAFarmersMarket
Anotherpotentialfacilityconfigurationisapermanentstructurewitharoofandwalls.Dependingonthenatureofthefacility,itcouldoperateasaconvertiblestructurewherewallscanbeopenedorremovedwhendesirabletocreatecombinedindoor/outdoorspaces.Figure2-5,fromtheAsheville,NCFarmersMarket,showsaconvertiblestructuredesign.Themoveablesidedoorsallowamoreopen-airconfigurationifdesired.
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Figure2-5.Asheville,NCFarmersMarket
Source:Asheville,NCFarmersMarket
Afacilitycanincludealargewarehousestructureortaketheformofatwo-orthree-story,full-bodiedbuilding.FacilityspacecanexistinconjunctionwithalargeoutdoorvendorspaceasseeninFigure2-6oftheBellinghamDepotSquareMarket.Theampleglassprovidesanopen-airfeeltothemarket.
Figure2-6.Bellingham,WADepotSquareMarket
Source:Bellingham,WAFarmersMarket
Figure2-7showsthedistributionofindoorandoutdoorspaceattheBellinghamFarmersMarket.OneuniquefeatureoftheBellinghamMarketisthattheoutdoorspaceisusedaspaidsurfaceparkingduringnon-eventdays.
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Figure2-7.Bellingham,WADepotMarketSquareSiteDiagram
Source:Stewart+KingArchitects,modifiedbyCPW.
Dependingontheconfigurationandfeaturesofthefacility,amenitiessuchasloadingdocks,aserviceelevator,orstoragespacecanalsobeincluded.TheseareallunavailableatthecurrentmarketspaceindowntownEugene.
Summary ApublicmarketindowntownEugenecanprovidesignificantbenefitstomarketvendorsandconsumers.Publicmarketsbenefitvendorsandotherretailersbyincreasingthedrawofconsumers,providingcoveredspaceduringinclementweather,moredaysofoperation,expandedaccesstoamenitiesandprovidingoutletsforproducts.Forconsumers,agreatervarietyoflocallyproducedproducts,year-roundaccess,coveredspaceduringinclementweather,andcommunitygatheringspacesimprovethequalityoflife.
CPW’sreviewofothermarketsshowsthatsuccessfulmarketscatertothedesiresoflocalconsumersandvendors.SurveysofpotentialconsumersintheEugene-SpringfieldareashowdemandexiststoimproveuponthecurrentSaturdayMarketandLCFMconfigurations.Respondentsindicatedadesireforamorepermanent,thoughflexible,facilitythatwillprovidetheopportunitytointeractwithvendorsandpurchaseawidevarietyofproducts.Casestudiesofmarketsinsimilar-sizedcommunitiesshowedthatthesedesirescanbemetinavarietyofformats,butconsiderationmustbegiventotheconsumerandvendorexperienceatapublicmarketfacility.
Awell-designedmarketwillprovidemanybenefitstothecommunity,vendors,andconsumers.Thefollowinganalysiswillhelptodemonstratefeasibleconfigurationsofapublicmarketandprovideinsightintopossibleamenitiesandoperationalcharacteristics.
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CHAPTER 3: THE DOWNTOWN PUBLIC MARKET CONCEPT
Ayear-roundpublicmarketlocatedinEugene’shighlyaccessibledowntowncandirectlybenefitthecommunity’shealthandthepersonalhealthandeconomicprosperityofEugene’scitizens.Moreover,thefacilitywouldbenefitboththeLaneCountyFarmersMarketandSaturdayMarketastheyarebothoutgrowingtheircurrentlocations.
TheconceptofadowntownpublicmarketinEugeneisadmittedlyvagueatthispoint.Tobetterdefinetheconcept,CPWconductedcasestudies,interviews,andvendorsurveys.CPW’sresearchanddiscussionswiththeResourceGroupexploredkeydimensionsoftheconcept:marketgovernancemodels,staffingneeds,rentandfeestructuresforvendors,maintenanceandamenitycosts,andotherelementsofexpenditureandrevenuemodels.
Wenotethattheconcepthasnotyetproceededtoafacilitydesign.ThelackofalocationandclearfacilitydesignraisedanumberofquestionsamongtheResourceGroupandvendororganizations.Thisstudy,however,aimsatafundamentalquestion:isapublicmarketfinanciallyfeasible?Whileadesignconceptwouldbeusefulatthisjuncture,itisnotabsolutelynecessarytoanswerthisquestion.
Whatisnecessaryissomesemblanceofafacilityandeventconcept–includingbasicspacerequirements(bothsizeofsiteandsizeofbuildings).AsafoundationforCPW’sfinancialmodelingofadowntownpublicmarket,CPWdevelopedthreemarketfacilityconceptsbasedonconsumerpreferences,vendordesires,andinputfromtheResourceGroup.Thischapteroutlinestheassumptionsandprinciplesthatguidedtheprocessofdevelopingthepublicmarketconcepts,andthenpresentspreliminaryspaceprogramsandfacilityconceptsforapotentialpublicmarket.
Guiding Assumptions and Market Principles UsinginformationfromourresearchandinputfromtheResourceGroup,CPWdraftedasetofguidingprinciplesforthefacilityandspaceforreviewandcommentbytheResourceGroup.Theassumptionsandprinciplesintendtonarrowtherangeofoptionsofthefacility.TheassumptionswerebuiltuponanumberofquestionsthatwereraisedbytheResourceGrouprelatedtothepurposeandscopeofthemarket,marketoperationsandmanagement,andotherissues.
CPWworkedwiththeResourceGrouptodevelopthefollowingassumptionstoguidethefeasibilityanalysis.
• Theprimaryfunctionofthedowntownpublicmarketistoserveasasocialmeetingspacetosupportthesaleoflocallyproducedgoodsandproducts.
• Publicsubsidyofmarketoperationsisneitherdesirablenorfeasible.
• Thepublicmarketwillbedesignatedasapublicfacility(e.g.,openspace)toprovideasalesvenueforavarietyofvendors.
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• Thepublicmarketfacilitywillnotberestrictedtoanyparticulargroup,market,businesses,orindividuals.
• Thepublicmarketfacilitiesandactivitieswillbeaccessibletoallresidentsandvendors.
• ThepublicmarketwillbelocatedindowntownEugene,buttheassessmentoffinancialperformanceisnotcontingentonaparticularlocationorsite.
• Thepublicmarketsitewillconsistofindoorandoutdoorfacilitiesandbothareessentialtothesuccessfuloperationofthepublicmarket.
• Thepublicmarketwillbelocatedonasiteownedbyalocalgovernmententity,butmarketoperationswillbemanagedbyaseparateentity.
• Access(includingparkingandtransportation)willbeadequatelyaddressedatwhateverdowntownsiteisultimatelyselected.
Acentralquestionposedbyseveralstakeholdersrevolvedaround“whatisthepublicmarket?”Thisquestionhasmanydimensions:Whereisthemarketlocated?Howbigisit?Doesithaveindoorspace?Whatisthenatureofthatspace?Whocanvendatthemarket?Whowillmanagethemarket?Whowillpayforthecapitalimprovements?
Whiletheseareimportantquestionsthatwilleventuallyneedtobeaddressed,thisstudysoughttoanswerabroaderthresholdquestion:isapublicmarketindowntownEugenefinanciallyfeasible?Iftheconclusionofthisstudyis“no,”thennoneedexiststopursuethemoredetailedquestions.
Nonetheless,itwasnecessarytocreatesomestructurefortheconcept.CPWcouldnotdevelopfinancialmodelswithoutthisstructure.Thisstructurewasnotintendedtoadvocateforspecificattributesofthemarket–thosedetailswillbeworkedoutatafuturedateiftheconceptmovesforward.Moreover,itiscriticalthatvendors(LCFMandSaturdayMarket)andthecommunityareengagedindeterminingthesedetailsinordertodevelopasharedvisionforthepublicmarket.Toprovidetheneededstructure,CPWworkedwiththeResourceGrouptodevelopasetof“guidingprinciples.”
Acoreprincipleisthatthedowntownmarketwillbeanattractivedestinationthatservesasameetingspacetospurinteractionbetweenresidents,visitors,businessowners,crafters,artisans,andfarmers.Withthisinmind,CPWandtheResourceGroupdevelopedthefollowingprinciplestoguidediscussionsaboutthefeasibilityassessment.TheEugenedowntownpublicmarketwill:
• belocatedindowntownEugeneandwillservetheexistingmarkets–LaneCountyFarmersMarketandSaturdayMarket.
• operateyear-round,withdaysandhoursofoperationspotentiallyvaryingbyseason.
• bedesignedtooperateininclementweather,forflexiblespaceuse,andtoallowforfutureexpansion.
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• retainthecharacterofthecurrentlyoperatingmarkets,withaprimaryfocusofsellingandshowcasinglocally-grownandproducedproducts.
Space Program and Facility Concepts
Todeterminetheoptimalsizeofapublicmarket,CPWevaluatedsiteandspaceneeds.Thisevaluationincludedbothtotalspacetohostthepublicmarket(e.g.,thesizeofthesite)aswellascoveredspace(e.g.,thefacilityorindoorspace)neededtohostthemarketyear-round.Thespaceprogramprovidesanestimateofspaceneedsforthreecomponentsofthemarket:(1)outdoorvendingspace;(2)indoororcoveredspace;and(3)outdooropenspace.
CPWdevelopedthreespaceconceptsfortheanalysis.Spaceneedsforapublicmarketfacilitywerebasedontotaleventsite(includingSaturdayMarketandLaneCountyFarmersMarkettogetheratasinglelocation).Theidealmarketsizewouldprovidespacetoaccommodateallinterestedvendorswhilemaximizingoccupancy—particularlyoftheindoorspace.Thespaceprogramsdonotassumeaspecificsite;rather,wepresentthemas“block”diagramsthatshowtherelativeallocationofspaceforeachofthethreeconcepts.
Toassessdemandforvendingspace,CPWusedsurveyresponsesfromcurrentLCFMandSaturdayMarketvendorstoidentifypreferenceforvarioustypesofspace.BasedonthecurrentsizeofSaturdayeventsontheParkBlocksduringthesummer,CPWidentifiedaneedtoaccommodateapproximately400vendors.Thetotalsitespacerequirementtohostthiseventisapproximately85,000squarefeet(abouttwoacres).
Forallfacilityconcepts,CPWassumedthatthetotalsizeofthemarketeventwouldtakeplaceonaround85,000grosssquarefeet(GSF)ofspaceregardlessofthesizeofthefacility.Thisensuresthat,regardlessofindoorspace,thesitewouldaccommodateallvendorscurrentlysellingattheSaturdayMarketandLCFMindowntownEugeneonSaturdays.Inshort,thetotalamountof“eventspace”doesnotchange;onlythesizeofthepermanent(i.e.covered)facilityvaries.Bycomparison,thecurrentSaturdayMarketoccupiesabout47,000squarefeetandtheLCFMabout25,000squarefeet.
Respondentstothevendorsurveysexpressedvaryinglevelsofinterestinvendinginapermanentfacilityandindicatedthattheirinterestwascontingentuponspecificdetailssuchaslocationandcosttovend.Becausethesurveymeasured“expressedinterest”7thatwasnotbasedonanyspecificpublicmarketconcept,CPWdevelopedseveralfacilityconcepts.Theseincludeasmall,amedium,andalarge-scaleindoor/coveredspaceoption.
Figure3-1presentsamassing(block)diagramofeachconceptshowingthesquarefootageoffacilityspace,outdoorvendingspace,andoutdooropenspace.Details
7Expressedinterestmeansthatpotentialvendorsindicatedtheirlevelofinterestinvendingbasedononlyapreliminaryoutlineofthepermanentpublicmarket.Levelsofinterestexpressedinthesurveyisapreliminaryindicatorandmaybedifferentthanactualdemandforvendingspace.Actualdemandwillbeafunctionofthespace,vendorfees,andotherfactors.
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ofthespaceprogram,includingadiscussionofthekeyvariablesaddressedandtablesoutliningfurtherdetailsareincludedinAppendixA.
Figure3-1.ConceptualSpacePrograms
Concept1:Small
Concept2:Medium
Concept3:Large
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Concept1isthesmallestfacilityestimatedat15,000grosssquarefeet(GSF)—providingspaceforapproximately70indoorvendors.Theconceptreflectsspacedemandforsurveyrespondentswhoindicateda“veryhighinterest”invendingatapublicmarket.Concept2isamid-sizedfacilityestimatedat22,000GSF—providingspaceforapproximately130indoorvendors.Thisreflectsspacedemandasanaverageofconcepts1and3.Concept3isthelargestfacilityestimatedat29,000GSF—providingspacefor190indoorvendors.Thefacilityreflectsspacedemandfromsurveyrespondentswhoindicated“moderate”to“veryhigh”interestinvendinginsideapublicmarket.Inadditiontotheindoorvendors,eachoftheindoorfacilitiesincludesspaceforbathrooms,anchorbusinesses,andofficespace.
Inconsiderationofoutdoorvendingspace,Concept1providesspaceforapproximately330outdoorvendors,Concept2providesspaceforapproximately270outdoorvendors,andConcept3providesspaceforapproximately210outdoorvendors.Further,eachconceptincludes31,000sfforoutdooropenspace.Thisspacecanserveasrecreationalspaceoradditionaloutdoorvendingspace(contingentondemand).Thisspacealsoprovidestheopportunityforfutureexpansionoftheindoorfacilitywhenneededordesired.Table3-1presentsacomparisonofthespaceconcepts.
Table3-1.ComparisonofSpaceConcepts
Summary Eachmarketconceptrequiresatotalsiteof85,000GSF.Thisspatialneedthereforerequiresaparcelofapproximatelytwoacresinarea.Theconceptsshowthatdowntownpublicmarketeventspacecanbeallocatedinavarietyofways,aseachofthethreeconceptsportray.Whileeachconceptallocatesspaceforapproximately400vendors(moreiftheoutdooropenspaceisusedforvending),theseconceptsdifferinthenumberofvendorswhocanvendinanindoororoutdoorbooth.Alargerfacilitysizewouldallowformoreindoorvendorsinitiallywhileasmallerfacilitysizewouldoffermorespaceforoutdoorvendorswiththeopportunitytoexpandindoorvendinginthefuture.
Concept Area Percent Area Percent Area Percent Area PercentSmall(15,000sfstructure)
39,000 46% 31,000 36% 15,000 18% 85,000 100%
Medium(22,000sfstructure)
32,000 38% 31,000 36% 22,000 26% 85,000 100%
Large(29,000sfstructure) 25,000 29% 31,000 36% 29,000 34% 85,000 100%
OutdoorVending OutdoorOpen Facility Total
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CHAPTER 4: OPERATION AND GOVERNANCE OPTIONS
Operationandgovernancearekeyconsiderationstothesuccessofapublicmarket.Whilethesewerenotthecorefocusofthefinancialmodeling,theywillbecentraltothesuccessofadowntownpublicmarket.Governanceisaparticularlyimportantandcomplicatedissuegiventhemultipleorganizationsthatwillneedtobeinvolvedinthedevelopment,management,andoperationofadowntownpublicmarket.Settingvendorfeesatappropriatelevelswillalsobecriticaltogainingvendorcommitment.
Casestudyresearchsuggeststhatmarketssuccessfullyusearangeofoperationalandgovernancemodels.Inthecontextofthisstudy,operationreferstothedaysandhoursperweekthatthemarketisopentothepublic.Governancereferstohowthemarketismanaged–whoisresponsibleforkeymanagementdecisionsandoverseesthefinancialfunctionsofthemarket.CPWresearchedseveraloperationalmodels,governance/managementstructures,andvendorfeeoptions.
Operation Thebroadconceptisforapermanentyear-roundpublicmarketindowntownEugene.Akeyquestioniswhetherconsumerdemandwouldsupportyear-roundoperationssevendaysperweek.Resultsfrombothconsumerandvendorsurveyssuggestinterest/demandforyear-roundoperations.Consistentwiththeseresults,CPWassumedthatmarketoperationswouldnotvarysignificantlybyseason.Toassessthenumberofdaysperweekofoperations,CPWevaluatedthreevariations:
• Onetothreedaysperweek:Thisoptioncloselymirrorsexistingsummermarketoperations.
• Fourtosevendaysperweek:Thisoptionwouldbeanexpansionofcurrentsummeroperations.
• Dailyoperationwithadditionalhours:Thisoptionwouldrepresentasignificantincreaseinoperations,withdailyvendingandlongerhours.
AtthedowntownParkBlocksite,theSaturdayMarketvendsonlyonSaturdaysfromAprilthroughNovember,withexpanded“HolidayMarket”hoursfromThanksgivingthroughChristmas.TheLaneCountyFarmersMarketoperatestwodaysperweekwithhoursonSaturdaysandTuesdaysfromMaythroughOctober.LaneCountyFarmersMarketvendsonlyonSaturdaysinAprilandNovember.
Underanyoperationalmodel,thefacilitieswouldrequireattentionduringnon-eventperiods.Thiswouldincludefacilitymaintenance,securityandotheroperationalactivities.
Surveyresultsandcasestudyresearchsuggestthatoperatingbetweenoneandthreedaysperweekisoptimalintheinitialyearsofoperations.Oneapproachwouldbecontinuingthecurrentdaysandhoursthatmarketsvendeachweek,but
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expandingtoyear-roundoperations.Surveysofbothsetsofvendorsstronglyindicatedadesiretovendbetweenoneandthreedaysperweek.Manyrespondentsexpressedthatadditionaldaysofoperationwouldbeburdensometothem.
Casestudiesofcomparablepublicmarketsfoundthislevelofoperation(e.g.,onetothreedaysaweek)atmarketsinBurlington,Vermont;Bellingham,Washington;andBoulder,Colorado.CPWfoundhigherlevelsofoperationinsomecommunitiesparticularlyOlympia,Washington,whichoperatesfourdaysperweekandAsheville,NorthCarolina,whichoperatesdaily.Wenotethatitwouldberelativelyeasytodesignthemarketsoitcouldexpanddaysorhoursofoperationifdemandexists.Marketoperationscouldalsobescaledseasonally,withlongerhoursormorevendingdaysduringpeakperiods,similartowhathappenswiththecurrentHolidayMarketandexpandedLaneCountyFarmersMarketoperationsduringsummermonths.
Commercial Space CPW’sfinancialmodelsincludespaceforsmallanchorbusinessesoccupyingcommercialspaceinthemarket.Anchorbusinessesaresemi-permanentbusinessesthatoperateatthemarketsiteandcanbeenterprisessuchascoffeeshops,restaurants,orsmallretailstores.Anchorbusinessescanbeimportanttotheoperationofamarketbecausetheycandrawawiderrangeofpatronstothemarket,enhancethelivelinessofthemarketplace,provideadditionalfeerevenueforthemarketandofferadditionalcommerceoptions.SeveralanchorbusinesseshaveprovenviableattheOlympiaFarmersMarket—arepresentativefromthemarketexpressedthatwhileOlympiacouldfinanciallyoperatewithoutanchorbusinesses,thesebusinessesprovidevibrancyandconsumerdrawthatgreatlybenefitsthemarket.Ifdemandexists,commercialenterprisescouldoperateoutsidethetraditionalmarkethours.ItisforthesereasonsthatCPWincorporatedanchorbusinessesintothepublicmarketconcepts.
Potentialanchorbusinessesmightincludeacaféorcoffeeshop,smallretailshopsorboutiques,asmallrestaurantorbar,icecreamparlor,bookshop,consignmentspace,orotherboutiqueshops.Whicheveranchorbusinessesarepresentatthemarket,theyshouldenhancethemarket’slivelinessandemphasizelocalproducts.Whilemanycommercialoptionscouldprovidethedesiredvibrancy,therealquestionbecomeswhethercommercialenterprisescouldconformtothepublicmarket’soperationalhours.InputfromtheSaturdayMarketBoardwasclearthatanyanchorbusinesseswouldneedtoconformtothemissionandvaluesofSaturdayMarket.TheBoardexpressedastrongdesirethatthecommercialspacenotbeoccupiedbynationalchaincorporations.
CPWdidnotspecificallyassesstheoperationalfeasibilityofsmallcommercialenterprises.Thus,itisunknownwhethertheseenterpriseswouldbeinterestedinthefacility.Likeothervendors,interestandviabilitywillbecontingentonthedesignandconfigurationofthepublicmarket.Additionalanalysisoncommercialspaceshouldbeincludedduringthedesignphaseandstagesofbusinessplandevelopment.
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CPWalsoassessedconsignmentasanoptionforananchorbusiness.SupportforconsignmentamongrespondentstotheSaturdayMarketandLCFMsurveyswasmixed.Fifty-fivepercentoftheSaturdayMarketsurveyrespondentsindicated“low”or“nointerest”insellingitemsonconsignment.Seventy-twopercentofrespondentsfromtheLCFMsurveyindicatedinterestthatfellbetween“moderate”and“high.”Althoughlevelsofsupportweremixed,aconsignmentoperationwouldnotrequiretheparticipationofallvendors.Thislevelofinterestispotentiallyhighenoughtosupportaconsignmentoperationinsomeform.
Accordingly,consignmentmaybeanattractiveoptionforvendorsasawaytogeneratesupplementaryrevenueduringdayswhenthemarketisnotinfulloperation.Likecommercialshops,consignmentspacecouldalsodrawcustomerstothemarketwhenvendorsarenotpresent.Thescaleofconsignmentoperationcouldvaryfromafewdaysperweektodailyoperation.Liketheoptionofincludingcommercialspaceatthepublicmarket,additionalanalysiswillbeneededtoexploretheviabilityofconsignment.
Vendor Fee Structure Tobeself-sustaining,revenuesfromapublicmarketmustcoveroperationalcosts.CPWassumedthatrevenuestopayforoperationofthepublicmarketwillcomefromfeesthatvendorspaytosellatthemarket.Becausepublicsubsidyofmarketoperationsisneitherdesirablenorfeasible,vendorfeesmustgeneraterevenuesufficienttomaintainmarketoperations.Thefeestructuremustalsobeagreeabletopotentialvendors;iffeesaretoohigh,vendorswillnotagreetosellatthepublicmarket.
CPW’scasestudyresearchandvendorsurveyresultsdonotsuggestaspecificfeestructureoptionthatismostcommonorappropriate.TheLaneCountyFarmersMarketandtheSaturdayMarketcurrentlyoperatewithtwodifferentfeestructures,bothofwhicharerepresentedincasestudyresearch.
CPWexploredmultiplefeestructuresforthemarketandidentifiedthreethatwouldpotentiallybeagreeabletovendorsandprovidesufficientrevenuetosupportmarketoperations:
• Boothfeethatvariesbyboothsize:Feeswouldbebasedonthesizeofthespacethatvendorsoccupied.LCFMandSaturdayMarketcurrentlychargevendorsafeebasedonthesizeoftheirbooth.RespondentstotheLCFMvendorsurveyexpressedstrongestsupportforthisstructure.
• Percentageofgrossreceipts:Feeswouldbebasedonapercentofgrossreceipts(calleda“percentagelease”).ThisstructureiscurrentlyusedbySaturdayMarket.Avariationonthisapproachistovarypercentagesbytypeofproduct.ThisstructureisusedinBellinghamandOlympia.RespondentstotheSaturdayMarketsurveyindicatedapreferenceforthistypeoffeestructure.LCFMrespondentsdidnotindicatethisastheirpreferredoption;27%LCFMsurveyrespondentsindicatedsupportforthisstructure.
• Boothfeeandapercentageofgrossreceipts:Thisoptionwouldcollectrevenuebychargingbothaboothfeeandapercentageofgrossreceipts.
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CPWmodeledrevenuepotentialforeachofthesethreefeestructures.Chapter5summarizestheanalysis;thedetailsareinAppendixA.
Other Fee Considerations
Thefeeratesthatvendorspaywillbehighlydependentonthedesignofthepublicmarket.Amarketwithmoreamenitiesandhigherqualityspacewillpotentiallycostmoretooperateandmaintainbutcanalsocommandhigherfees.Asaconsiderationaboutvendorwillingnesstopay,vendorsurveysdidnotprovidedetailsaboutwhatthefacilitywouldlooklikeandwhatamenitiesitwouldprovide.Surveyresponsesrelatedtofeestructureareonlypreliminaryindicationsofvendors’willingnesstopay.Inshort,thesurveyresponsesprovideageneralideaofwhatfeestructuressomevendorswouldsupport,butcannotbeinterpretedasvendorsendorsingaspecificstructureorrate.Vendorpreferenceswillbeakeyfactorinthisprocess.
Respondentstobothvendorsurveysindicatedsensitivitytoanyperceivedincreasefromcurrentfeeslevels.Alargemajorityofvendorsindicatedunwillingnesstopaymonthlyfeesinexcessof$150.Manypreferredfeestobelessthan$80permonth.Theseresultssuggestthatthetotalamountchargedinfeeswillbeofmoresignificancethantheactualmethodofcollectingfees.Thefeestructure,however,shouldstillbeonethatisagreeabletovendors.ForthefacilitytobeattractivetoLCFMandSaturdayMarketvendors,thefeestructurewilllikelyneedtobecomparabletowhatvendorsarecurrentlypaying.
Additionally,surveyrespondentsexpressedthatthefeestructureshouldtreatvendorsfairly.Surveyresponsessuggestthatvendorlocation,sizeofoperation,andabilitytopaywillinfluencetheamountthatvendorsarewillingtopayinfees.Ensuringequityforvendorswhilemaintainingafeestructurethatallowsthemarkettooperatewillbeakeyconsiderationindeterminingthefeestructure.
Indeterminingwhichfeestructurestoanalyze,CPWconsideredthefollowingfactors:
• Somesurveyrespondentsindicatedthattheywouldliketoseepreferredlocationswithinthemarketrequirehigherfees.Theseareaswouldlikelyincludecornerboothsandthoseinareaswithespeciallyhighcustomertraffic.
• Dependingonoperationalstructure,marketmanagementcouldcollectrentsonadailyormonthlybasis.Thesetwooptionshavedifferentadministrativeimplications;itisnotclearwhetheronewouldrequiremoreeffortthantheother.
• Feestructuresshouldbeestablishedwithequityasacriterion.Vendorsshouldfeelthattheyarebeingchargedfairly,andarepayinganamountthatisproportionaltothefinancialbenefitthattheyreceivefromparticipatinginthemarket.
• Primarygoalsofthepublicmarketaretogivelocalproducersandcraftersaplacetoselltheirproducts,andtosupporttheoperationoflocal
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businesses.Feesshouldbesetatlevelsthatcoverongoingmarketoperationsandmaintenancecosts(includinglong-termmaintenance).
• Mechanismsforassessingfeesforutilityusealsopresentachallenge.Itmaybefunctionallydifficulttochargebasedonuse,butvendorswhouselesswillnaturallysubsidizeheavierusersifaflatfeeisassessed.Itmayalsobenecessarytochargedifferentlyforspaceswithnoutilities,thosewithelectricityonly,andthosewithbothelectricityandgas,ifprovided.
Governance Structure Considerations ThegovernanceandmanagementstructureforadowntownpublicmarketinEugenewillimpactthewaythemarketfunctionsinboththeshort-andlong-term.Governancestructurerefersspecificallytowhowillberesponsiblefortheoversightandmanagementofthemarketoperations.Thisincludesvendorrecruitment,leasing,staffing,collectingfees,accounting,andavarietyofotherbusinessfunctions.Examinationofcasestudymarketssuggeststhatthesebusinessfunctionscanbeaccomplishedinavarietyofways(Table4-1).
Table4-1.SummaryofCaseStudyMarketBusinessFunctions
*N/Aindicatesthatthisinformationwasnotavailable.
Potentialgovernanceoptionsforadowntownpublicmarketinclude:
• Singlenonprofit
• Partnership(twoormorenonprofits)
• Partnership(oneormorenonprofitand/orpublicentities)
• Localgovernment
• For-profitentity
CPWnarrowedtheseoptionstothreegovernancemodelsthatmightbeconsideredmostlikely.8Theseoptionsinclude:
8VendorsurveysandtheResourceGroupexpressedstrongoppositiontothelocalgovernmentandfor-profitentitygovernanceoptions.Theseoptionsweredroppedfromfurtherconsideration.
VendorRecruitment
Leasing StaffingCollecting
FeesAccounting
GroundsMaintenance
FacilityMaintenance
Asheville,NC Public Public Public Public N/A Public PublicBellingham,WA
Nonprofit PublicPublic&
NonprofitN/A N/A Nonprofit Nonprofit
Boulder,CO Nonprofit Nonprofit Nonprofit N/A N/A Nonprofit NonprofitBurlington,VT Nonprofit Nonprofit Nonprofit N/A Nonprofit N/A N/A
Madison,WI Nonprofit NonprofitPublic&
NonprofitN/A N/A Nonprofit Nonprofit
Olympia,WA NonprofitPublic&
NonprofitNonprofit N/A N/A Nonprofit Nonprofit
BusinessFunctions
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• Singlenonprofit:Thisoptionmayreduceorganizationalcomplexityandwasfoundtobesuccessfulincasestudyresearch.Notsurprisingly,boththeSaturdayMarketandLCFMsurveyresultsindicatedthisasthepreferredoption.
• Partnership:Thisoptionwouldincludetwoormoreentities.Mostcasestudymarketsweremanagedbysometypeofpartnershipbetweenalocalnonprofitandapublicentity.IftheEugenedowntownpublicmarketweregovernedbytwoormoreentitiesthroughapartnership,severalvariationsexistforsplittingorganizationalresponsibilities.
• ApartnershipbetweenLaneCountyFarmersMarketandSaturdayMarketandlocalgovernment:Thisoptionissimilartotheaboveoption,butwouldbeapartnershipbetweenthetwoexistingmarkets.Thisoptionisprobablythemostcomplicatedandwouldrequiredetaileddiscussionsamongthevariousparties.
Allthreeoptionsareviable,butpresentuniqueadvantagesandchallenges.Governancebyasinglenonprofitreducesthecomplexitythatwouldbepresentinapartnership.Twocasestudymarkets,BoulderandBurlington,usethisstructuresuccessfully.Resultsfromthevendorsurveysindicateapreferenceforgovernancebyasinglenonprofitentity.Morespecifically,SaturdayMarketvendorsprefergovernancebySaturdayMarketandLCFMvendorsprefergovernancebyLCFM.
Acollaborationbetweentwoormoreorganizationswasthemostcommongovernancestructurefoundinthecasestudyresearch.Halfofthecasestudymarketsaremanagedcollaborativelybyalocalnonprofitorganizationandalocalgovernmententity.InOlympia,anonprofitorganizationmanagesthemarketoperationswhiletheCityofOlympiaownsthephysicalstructureofthemarketandthePortofOlympiaownstheland.ThenonprofitpaysasubsidizedrenttothePortandtheCityforuseofthefacilities.FortheEugenedowntownpublicmarket,theincreasedmanagementcapacityresultingfromthistypeofpartnershipcouldimproveaccesstokeyresourcesandrelationships,enhancetheunderstandingofmarketfunctions,broadencommunityawarenessofthemarket,lessenfinancialrisk(byspreadingthisacrossmultipleorganizations),andimproveaccesstocapital.
OnepossiblevariationofthismodelcouldbecollaborativemanagementbytheLaneCountyFarmersMarketandtheSaturdayMarketwithparticipationbylocalgovernmentpartners.ThispartnershipwoulddrawontheexpertiseofbothorganizationsandcouldpotentiallyallowforsomeelementofcontinuedsupportfromtheCountyandCity.Bothentitieshavesuccessfullyoperatedmarketsindowntownforyears.Moreover,vendorresponsestothesurveyssuggeststhatexploringthisoptionmightbeagreeabletovendorsfrombothorganizations.9
Basedontheaboveconsiderations,CPWrecommendsafacilitateddiscussionamongthenonprofitandpublicentitiesinvolvedintheParkBlockmarkets(the
9CPWnotesthiswouldrequirecomplexanddetailednegotiationsbetweenthetwoorganizationsandthelocalgovernmentpartnerstodevelopanagreementacceptabletobothorganizations.
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SaturdayMarketandtheLaneCountyFarmersMarket,theCityofEugene,andLaneCounty)toexplorethisconcept.
Other Considerations
Whatevergovernanceoptionisultimatelyselected,theorganization(s)mustbequalifiedtomanagethemarket.TobequalifiedtomanageandgovernthepublicmarketindowntownEugene,thegoverningorganization(s)should:
• haveexperienceworkingwithinthelocalcommunity;
• possessaworkingknowledgeofthelocaleconomiccontextinwhichthepublicmarketwilloperate;
• maintainapositive,mission-orientedimage;
• retaintheprovenfinancialcapacitytomaintainviablemarketoperations;
• beableandwillingtoincludemembershipandvendorinputindecision-makingprocesses;and
• becommittedtothecontinuedenhancementanddevelopmentofthemarket.
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CHAPTER 5: PRELIMINARY FINANCIAL FEASIBILITY ASSESSMENT
ThischapterpresentsthepreliminaryfinancialfeasibilityassessmentforadowntownpublicmarketinEugene.Wecalltheassessmentpreliminarybecausetheanalysisisnotbasedonaspecificmarketmodelwithaspecificfacilitydesigninaspecificlocation.Thepreliminaryanalysisisintendedtoanswerthequestionofwhethertheconceptisworthfurtherconsideration.Iftheconceptmovesforward,CPWrecommendsadditionalfinancialanalysisduringthedesignphase.
Akeymethodologicalquestioninvolvesthescopeofthefinancialmodeling.CPWstructuredthefinancialmodelingbroadlytoincludeallaspectsofapublicmarket–bothindoorandoutdooroperations.Thisapproachassumesthatthemarketwouldbemanagedcomprehensively(e.g.,onesetofmanagementandfeepolicieswouldgoverntheentireevent).ThisapproachalsodrawsfromthecriticalmassthatthehundredsofvendorsfromSaturdayMarketandLCFMgenerateduringSaturdayoperations.
Thefeasibilityassessmentisforoperationsandmaintenanceofthepublicmarket.Implicitinthisapproachisthatdebtserviceoncapitalcostswillnotbepartoftheongoingfinancialobligationsofrunningthepublicmarket.ThisassumptionisreasonablegiventhattheEugeneCityCouncilincludedfundsforapermanentmarketintheupdateddowntownurbanrenewalplan.
Finally,thefinancialmodelingpresentedinthischapterhassomenotablelimitations.Thepublicmarketconceptusedasthebasisforfinancialmodelingdoesnottakeintoaccountaparticularsite,designconstraints,oragovernancestructure.Theconceptualnatureoftheconceptsisaccompaniedbyasetofuncertaintiesthatneedtoberecognizedwheninterpretingtheresults.Anotherkeylimitationisthattheanalysisassumesthatvendorswouldpayadditionalfeesfortheoperationandmaintenanceofapermanentpublicmarketfacility.Inshort,feesforoperationandmaintenanceofthepublicmarketfacilitiesassumedinCPW’sanalysiswouldbeinadditiontofeesthatLCFMandSaturdayMarketvendorsalreadypaytosupporttheirrespectiveorganizations.
Thischapterandassociatedappendicesdescribetherangeofassumptionsusedtodevelopthefinancialmodels.Wenotethatthisisnotuncommon–allforecastshavesomedegreeofuncertainty.Whiletheseuncertaintiesexist,CPWisconfidentinthebroadimplicationsoftheresultsofourmodeling.
Thischapterfirstpresentsrevenueestimatesusingthethreefeestructuresinthepreviouschapter.Following,wepresentestimatedoperatingandmaintenanceexpenses.Next,wepresentasummaryoffindingsregardingnonco-locationofthepublicmarketevent.Thechapterconcludeswithadiscussionoftheimplicationsofthefinancialanalysis.AppendixApresentsamoredetaileddiscussionofthemodelsandassumptions.
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Key Assumptions Acentralquestionposedbyseveralstakeholdersrevolvedaround“whatisthepublicmarket?”Thisquestionhasmanydimensions:Wherewouldthemarketbelocated?Howbigwoulditbe?Wouldithaveindoorspace?Whatwouldbethenatureofthatspace?Whocouldvendatthemarket?Whowouldmanagethemarket?Whowouldpayforthecapitalimprovements?
CPWworkedwiththeResourceGrouptodevelopthefollowingfoundationalassumptionstoguidethefeasibilityanalysis.
• Theprimaryfunctionofthedowntownpublicmarketwouldbetoserveasasocialmeetingspacetosupportthesaleoflocallyproducedgoods,products,andservices.Assuch,non-leasablespaceintheformofpublic,openspaceforconsumercongregationbecomesjustasnecessarytothesuccessofthemarketasleasablespace.
• Publicsubsidyofmarketoperationsisneitherdesirablenorfeasiblewhilesubsidizationofcapitalcostsisexpected.Acapitalimprovementsfundcouldhoweveraccrueeveryyearat2%ofrevenueearningstohelpoffsetsomeofthispublicaid.
• Designatedasapublicfacility,thepublicmarket’sprimaryfocuswouldbetohostavarietyofvendors.ExistingvendorsfromtheLaneCountyFarmersMarketandSaturdayMarket,alongwithnewvendorsfromthesurroundingarea,couldcreatethecombinedmarketeventexperiencethatwouldelatetheconsumerwiththeirdiversityofgoodsandproducts.
• Awelcomingatmospherewouldbeintrinsic.Thepublicmarketfacilitywouldnotberestrictedtoanycertaingroup,markets,businesses,orindividuals.Additionally,facilitiesandactivitieswouldbeaccessibletoallresidentsandvendors.
• LocatedindowntownEugene,thepublicmarketwouldbeonasiteownedbyalocalgovernmententity(withmarketoperationstobemanagedbyaseparateentity).However,itshouldbenotedthattheassessmentoffinancialperformanceisnotcontingentonaparticularlocationorsite.Access(includingparkingandtransportation)tothesitewouldalsobeadequatelyaddressedatwhateverdowntownsiteisultimatelyselected.
• Atapproximately85,000GSF,thepublicmarketwouldhaveindoorandoutdoorfacilities—bothessentialtotheoperationofthepublicmarket.Facilitieswouldallowspacefor400vendorsandsixanchorbusinesseswiththeabilitytoexpandwhennecessaryordesirable.Thenumberofindoorvendorboothswasbasedondemandforindoorspaceindicatedinthesurveyresults.
• Occupancyisexpectedtofluctuateseasonally.Inrecognitionofthis,anaverageannualoccupancyrateof60%hasbeendeterminedbasedontheseasonalvariabilitythatalreadyoccursforSaturdayMarketandLaneCountyFarmersMarket.
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Revenue Revenuepotentialforapublicmarketwilldependonanumberoffactors,includingeventandfacilitysize,numberofvendors(demand),feestructure,occupancylevels,andgrossreceipts.Thissectionpresentsaspectsofrevenuepotential,andprovidespreliminaryrevenueestimatesbasedonthevariousfeestructures.Itisimportanttonotethatthesearepreliminaryestimatesofthemarket’srevenuepotential.AppendixAprovidesdetailsofthedifferentaspectsofeachrevenuemodel,abreakdownofrevenuegenerationforeachfeestructure,andtheassumptionsCPWusedtodeveloppreliminaryrevenueestimates(alsoseeTable5-1).
• FeeStructureOption1:BoothFeeOnly.Underthisfeestructure,themarketwouldchargevendorsamonthlyratebasedonthesizeofspacetheyuse.Thisfeestructurewouldcharge$1.25persquarefootpermonthtobothvendorsandanchorbusinesses.10Usingthisfeestructure,annualrevenuewouldbeapproximately$662,000forthesmallconcept,approximately$661,000forthemediumconcept,andapproximately$660,000forthelargeconcept.
• FeeStructureOption2:PercentofSales.Themarketwouldchargevendorsapercentofvendorsales11.Commercialspacehoweverwouldnotbeassessedafeebasedonapercentageoftheirsales—a$1.25fee/sfpermonthwouldbeusedinstead.ThisfeestructurecouldusearangeofpercentagesforitsfeeratebutCPWuseda5%ofsalesbaselineassumptionfortheanalysis.A5%ratewouldgenerateapproximately$990,000annuallyforallpublicmarketconcepts.
• FeeStructureOption3:BoothFeeandPercentofSales.Themarketwouldchargevendorsamonthlyrateof$1.25/sfbasedonthesizeoftheirboothplusapercentofsalesforvendors.Commercialspacewouldonlybechargedafeebasedonthesizeoftheirspace($1.25/sfpermonth).Withthisfeestructure,arangeofpercentagescouldbeusedforthepercentageofsalefeerate.SimilartoFeeStructure2,CPWuseda5%ofsalebaselineassumptionwhichwouldallowallpublicmarketconceptstogenerateanannualrevenueofapproximately$1.6million.
Aseachpublicmarketconcepthasthesameamountofleasablespace(400vendorsandsixanchorbusinesses)eachconceptgeneratesthesameamountofyearlyrevenue.Accordingly,underthisapproachtomodeling,differentpublicmarketconcepts(atvarioussizes)becomeirrelevant.Ofcourse,onceexpensesgetfactoredin,variabilitywillbecomemoreapparentasalargerpublicmarketfacility
10Theboothfeeof$1.25/sfpermonthwasgeneratedtoreflectatraditionalcommercialrealestatelease.Whilevendorboothsarenotatypicalcommercialbusiness,thismeasurewascreatedforcomparabilityandtoinstillimpartialityacrossvarioustypesofvendors.
11Apercentageofsaleswouldbechargedtovendorsdaily(onmarketdays).Anassumptionofthefinancialmodelisthattherewillbe104marketdays(basedoncapacitytosellindicatedbysurveyrespondents).Surveyresultsalsoindicatethatvendors,onaverage,make$450/dayandaccordingly,$450/dayhasbeenusedtocalculategrossreceiptsforFeeStructure2and3.
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willcostmoretooperateandmaintain.Nevertheless,CPWdidconsidertheoptionofchargingvendorsapremiumtoleaseindoorspace.Chargingindoorvendorshigherfeeswouldalterannualrevenueearningsforeachfacilityconceptbutitwouldalsorisktheoverallsuccessofthemarket.Forelucidation,Bellingham,oneofCPW’scasestudies,haddifficultysustainingenoughindoorvendorsonmarketdaysasmostwantedtovendoutdoors.BecausethismaybetrueatthedowntownEugenePublicMarket,itbecomessafertochargevendorsthesamefeeforvendingindoorsasoutdoorsinordernottodisincentiveindoorvending.Further,differentialsinfeeratesforindoorandoutdoorvendingboothswerenotseeninanyofCPW’scasestudies.
Table5-1.SummaryofEstimatedRevenuePotentialforTotalEventBasedonFeeOptionsandDevelopmentConcept
*WhileTable5-1showsabaselinepercentageof5%,modelshavecalculatedpotentialrevenueusingarangeofpercentagesandfoundthatselectingapercentageofsalestooffsetexpensesisdependentuponoccupancylevels.
Insummary,theestimatesprovideanindicationofpotentialrevenuesfromleasablespace(vendorboothsandanchorbusinesses)withinvariouspublicmarketconcepts,assuminga60%averageannualoccupancyaswellasanumberofotherassumptions(e.g.demandforboothspace,rent/sf,etc.).Theapproachforeachfeestructureisbasedonhowothermarketschargefees,includingthemarketscurrentlyoperatingindowntownEugene.Modeledfeestructuresarealsobasedonwhatpotentialvendorsindicatedtheyprefer,butarenotnecessarilyconsistentwithexistingstructures.Currently,LaneCountyFarmersMarketvendorspayaflatfeebasedonsizeofspaceandSaturdayMarketvendorspayaflatfeebasedonboothsizeandapercentageofsales.
Operating and Maintenance Expenses CPWdevelopedoperatingandmaintenanceexpensesusingcasestudyresearchandfeedbackfromtheResourceGroup.Table5-2summarizesestimatedannualoperationandmaintenanceexpensesforthethreefacilityconcepts.CPWdevelopedhighandlowestimatestoreflecttherangeofexpensesthatmightbeassociatedwitheachconcept.
Personnelexpensesareasignificantshareoftotalexpenses.Increasesinthesizeofthefacilitygreatlyincreasethepersonnelneededtooperatethefacility,andcorrespondinglyincreaseoverallcosts.Acontingencywasaddedtoexpensestoreflectuncertaintyintheassumptionsunderlyingtheexpenseestimates.CPWestimatedexpensesbasedonsevencategories;amoredetaileddiscussionofcategoriesandestimatedexpensesforeachcanbefoundinAppendixA.
Concept1:Small
Concept2:Medium
Concept3:Large
BoothFee $662,000 $661,000 $660,000PercentageofSale(Using5%asBaseline)
$990,000 $990,000 $990,000
BoothFeeand%ofSale(Using5%asBaseline)
$1,598,000 $1,597,200 $1,596,400
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Table5-2.EstimatedAnnualOperationandMaintenanceExpenses
Note:CostsdonotincludeoperationalcostsassociatedwiththecurrenteventsortheLCFMandSaturdayMarketnonprofitorganizations.
Results of the Preliminary Financial Models Thefollowingsectionpresentsasummaryoffindingsofthepreliminaryfinancialmodels,abreak-evenanalysisoffeerates,andasummaryoffindingsregardingnon-co-locationofthePublicMarketEvent.
Summaries of Preliminary Financial Models
Table5-3presentsasummaryofrevenueandoperatingexpenses.Revenuesuseabaselineassumptionof5%ofsalesforfeestructure2and3.Allscenariosreflecta60%occupancyrateanda2%reservefund.Theresultsshowthatnotallofthefeestructuresresultinpositivenetrevenue.However,thesubsequentsection(Break-EvenAnalysis)willshowhowslightmodificationstofeerateswillallowallfeestructurestogenerateabreak-evennetrevenue.
Low High Low High Low High
Personnel $132,000 $162,000 $191,000 $233,000 $236,000 $288,000Operations $76,000 $148,000 $113,000 $212,000 $139,000 $266,000Contingency $31,200 $46,500 $45,600 $66,750 $56,250 $83,100TOTAL $239,200 $356,500 $349,600 $511,750 $431,250 $637,100
Concept3:LargeExpenses Concept1:Small Concept2:Medium
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Table5-3:FinancialPerformanceSummary,BaselineAssumptions
Break-Even Analysis
Thebaselineanalysissuggeststhatapublicmarketmaynotgeneratepositivenetrevenueunderallofthefeeandexpenseestimatescenarioswhilesomeyieldmorerevenuethanisnecessarytooperatethemarket.Yet,oneofthecoreassumptionsisthatthemarketwillnotbeoperatedbyafor-profitentity.Thisimpliesthatfeeswouldbesetatratessufficienttocoveroperatingandmaintenancecosts.
Todevelopamorepreciseestimateofwhererevenuesmatchexpenses,CPWconductedabreak-evenanalysis.Abreak-evenanalysisanswersthequestion:whatwouldboothfeesandpercentagesofsalechargedtovendorshavetobefornetrevenuetobreakeven?
Table5-4summarizestheminimumfeethatwouldneedtobechargedtovendorsandleaseholdersgivenallcurrentassumptionsaboutoperatingandmaintenanceexpenses,vacancy,monthlyvenderearnings,andthemanyotherlistedassumptionsinAppendixA(seeMethodsandAssumptions).Ifallassumptionsarecorrectforrevenueandexpenses,thentheratesbelowwillalloweachofthePublicMarketEventstobreakeven.
Concept FeeStructure1BoothFee
FeeStructure2%ofGrossSales
FeeStructure3BoothFeeand%ofGrossSales
Revenue $383,948 $574,200 $926,359ExpensesLowExpense $239,200 $239,200 $239,200HighExpense $356,500 $356,500 $356,500
NetRevenueLowExpense $144,748 $335,000 $687,159HighExpense $27,448 $217,700 $569,859
Revenue $383,009 $574,200 $926,359ExpensesLowExpense $346,600 $349,600 $349,600HighExpense $511,750 $511,750 $511,750
NetRevenueLowExpense $36,409 $224,600 $576,759HighExpense -$128,741 $62,450 $414,609
Revenue $383,009 $574,200 $925,889ExpensesLowExpense $431,250 $431,250 $431,250HighExpense $637,100 $637,100 $637,100
NetRevenueLowExpense -$48,241 $142,950 $494,639HighExpense -$254,091 -$62,900 $288,789
Concept1-Small
Concept2-Medium
Concept3-Large
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Table5-4:Break-EvenRatesBasedonFeeOptionsandDevelopmentConcepts
*Whileboothfeesarechargeasamonthlyratepersquarefoottoresembleatraditionalrealestatetransaction,apercentageofsalesischargeddailyfor104marketdaysperyear.
Permanent Lane County Farmers Market Facility ThepreviousmodelsallassumethatbothLCFMandSaturdayMarketvendorswoulduse,andpay,forapermanentpublicmarketspace.Themarketconcept,however,wasinitiatedasjustafacilityfortheLaneCountyFarmersMarket(LCFM).CPWdevelopedfinancialmodelsspecifictoLCFMtounderstandhowafacilitythatonlyhousedLCFMwouldperformfinancially.WeusedthesamefeestructureassumptionsfortheLCFMmodelincludingoneoftheirexistingfeestructures.
Table5-5showstheresultsofCPWsfinancialmodelingforLCFMwhichassumesanindoorfacilityofapproximately11,000GSF.Thefacilityincludesspacefor80vendorbooths(10x10),circulationspace(1,600sf),twobathrooms(each200sf),andanoffice(920sf).Themodelportraysnetrevenueusingtwoexpenseestimates.Themodelalsoassumesanaverageannual60%occupancyratetoaccountforseasonalvariability.Theresultssuggestthatatcurrentcapacity(80vendors),LCFMalonewouldprobablynotgeneratesufficientrevenuestobreakevenunderthebaselinefeeassumptions,meaningthathigherfeeswouldneedtobeassessedforthefacilitytobreakeven.
FeeStructure1 FeeStructure2 FeeStructure3
LowExpense $.78/sfpermonth 1.9%ofSalespermarketday $.07/sfpermonthwithHighExpense $1.16/sfpermonth 3.0%ofSalespermarketday $.45/sfpermonthwith
2%ofSalespermarketday
LowExpense $1.14/sfpermonth 2.9%ofSalespermarketday $.43/sfpermonthwith2%ofSalespermarketday
HighExpense $1.67/sfpermonth 4.4%ofSalespermarketday $.96/sfpermonthwith2%ofSalespermarketday
LowExpense $1.41/sfpermonth 3.7%ofSalespermarketday $.70/sfpermonth2%ofSalespermarketday
HighExpense $2.08/sfpermonth 5.6%ofSalespermarketday $1.37/sfpermonth2%ofSalespermarketday
Concept1:Small
Concept2:Medium
Concept3:Large
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Table5-5:SummaryofLCFMFinancialModel
*LCFM’sexistingfeestructureof$40per10x10boothperdaywasportrayedasLCFM’sexistingfeestructure.Feestructures1-3weredevelopedbyCPW.
BeyondthefinancialstabilityofferedbyalargereventthatincludesboththeLCFMandSaturdayMarket,benefitsofacombinedpublicmarketaresignificant.Keybenefitsinclude:providingconsumerswithalargervarietyofgoods,offeringvisitorsmoreamenitiesthenonemarketcouldofferalone,andcreatingmoreofafestivalatmosphere.Moreimportantlyhowever,acombinedeventwillhelpthepublicmarket’sfinanciallyviability.Alargerevent,withamorediverseselectionofgoodsandproducts,createsacriticalmassthatwillattractmoreactivity,whichwillattractmorepatronsandvendors.This,inturn,willresultinhigherrevenuesandlowerfees.
TocontinuewiththeLCFMfacilitystudy,abreak-evenanalysishasbeendevelopedtoseehowmuchvendorswouldhavetochargeinorderforthepermanentLCFMfacilitytogenerateanetzerorevenue.Table5-6presentstheseresults.
Table5-6:Break-EvenAnalysisforLCFMFacilityConcept
Theresultssuggestthatthatif,forwhateverreasons,LCFMisnotco-locatedwithSaturdayMarket,LCFMvendorswouldbepayingsignificantlyhigherfeerates.Thefollowingbulletsclarifythesedifferencesusingthesmallconceptasacomparison(theconceptwhichmostcloselyresemblestheLCFMConceptinsize).
• FeeStructure1:Usingalowexpenseestimate,LCFMFacilitywouldrequirevendorstopay$2.96/sfpermonthmorethantheywouldatthesmall
LCFMExistingFeeStructure
FeeStructure1 FeeStructure2 FeeStructure3
RevenueBoothFee $332,800 $120,000 $120,000PercentofGrossReceipts $187,200 $187,200
TotalRevenue $193,024 $69,600 $108,576 $178,176Expense
TotalExpenseLow $208,000 $208,000 $208,000 $208,000TotalExpenseHigh $310,000 $310,000 $310,000 $310,000
NetRevenuewithLowExpense -$14,976 -$138,400 -$99,424 -$29,824NetRevenuewithHighExpense -$116,976 -$240,400 -$201,424 -$131,824
LCFMExistingFeeStructure
FeeStructure1
FeeStructure2
FeeStructure3
LowExpense $43.10perboothperday
$3.74/sfpermonth
9.6%ofSalespermarketday
$2.96/sfperboothpermonthwith2%ofSalespermarketday
HighExpense$64.24perboothperday
$5.57/sfpermonth
14.3%ofSalespermarketday
$4.79/sfperboothpermonthwith2%ofSalespermarketday
LCFMFacilityConcept
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concept.Withahighexpenseestimate,LCFMconceptwouldrequirevendorstopay$4.41/sfpermonthmore.
• FeeStructure2:Usingalowexpenseestimate,LCFMFacilitywouldrequirevendorstopayapercentageofsalethatis7.7%higherthansmallconceptwouldrequire.Usingahighexpenseestimate,LCFMvendorswouldbepayingapercentageofsalethatis11.3%higher.
• FeeStructure3:Usingalowexpenseestimate,LCFMFacilitywouldrequirevendorstopay$2.89/sfpermonthmorethansmallconceptusingthesamepercentageofsale.Usingahighexpenseestimate,LCFMvendorswouldberequiredtopay$4.34/sfmorepermonthusingthesamepercentageofsale.
WhileitisstillpossibletogenerateenoughrevenuetocoveroperatingandmaintenanceexpensesunderanLCFMonlyscenario,feeswouldneedtobeconsiderablyhigheranditisnotclearwhetherLCFMvendorswouldbewillingtopaythehigherfees.
Implications for the Feasibility of a Permanent Downtown Public Market
CPW’sfinancialmodelingsuggeststhataPublicMarketincludingvendorsfromboththeLCFMandSaturdayMarketcangeneraterevenuessufficienttocoveroperatingandmaintenancecosts.Inshort,itwouldbefinanciallyfeasible.However,aPublicMarketincludingvendorssolelyfromtheLCFMwouldnotbefinanciallyfeasibleundercurrentfeestructures.
Thisconclusioncomeswithcaveats.Akeyconsiderationforanyproject–particularlythosethatinvolvepublicinvestments–isrisk.Aswithanyfeasibilitystudy,CPWmadeanumberofassumptionsthatinformthefinancialmodeling.Areasonablequestionis:whatifoneormoreofthoseassumptionsareinaccurate?
Theeffectofchangingkeyassumptionscanbetestedthroughsensitivityanalysis.Thekeyassumptionsthataffectthefinancialmodelingare:
• Occupancyrates–whileCPWmodeledanaverageannualoccupancyrateof60%toaccountforseasonalfluctuations,itisdifficulttoknowexactlywhatoccupancylevelsmaybe—especiallyinthefirstfewyearsofmarketoperation.ThesensitivitytestingsuggestsinAppendixAthatmodestchangesinfeeschargedtovendorscanhelpcovermarketoperationsifoccupancyislowerthanassumed.
• OperatingandMaintenanceExpenses–thisisthemosttenuouspartofourmodeling.Withoutaspecificfacilityconcept,itisverydifficulttodevelopaccurateexpensefigures.Weareconfidentthatourestimatesareareasonableestimateforthegeneralconcepts,butstronglyadvisethattheseberevisitedatthedesignstageiftheconceptmovesforward.
• Fees–thefeeoptionsCPWmodeledareconsistentwithorlowerthanthosethatvendorsatthecurrentdowntownmarketspay.Thereisariskthatvendorswillnotbewillingtopayfeesatthemodeledrate;ourbreak-
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evenanalysisprovidesapreliminaryindicationofwherefeeswouldneedtobesettocoverexpenses.WenotethatthesefeeswouldbeinadditiontoanyfeesthatvendorsalreadypaytotheLaneCountyFarmersMarketortheSaturdayMarket.
Therelationshipbetweenthesethreevariablesissimpleandpredictable.Loweroccupancyratesmeanlessrevenuewhichimplieshigherfees.Higheroperatingandmaintenanceexpensesalsosuggesthigherfees.Inmanyrespects,feesarethedependentvariableinthisanalysis.Ourassumptionisthatfeeswillbesetatalevelthatcoversannualoperatingexpensesandprovidessufficientcapacityforbothregularandlong-termmaintenanceactivities.SensitivitytestinginAppendixAhelpstoillustratethispoint.
Otherareasofriskinvolvemorefundamentalissuesthatcannotbeincorporatedintoafinancialmodel.Itisclearthatvendorswillhavetoprovidefundsforoperatingandmaintenanceexpensesforthepermanentfacilities(bothindoorandoutdoor).Currently,feesassessedtoLaneCountyFarmersMarketandSaturdayMarketvendorsgodirectlytosupportthetworespectiveorganizations.Whilewedidnotobtainprecisefigures,itappearsthatlittlerevenuecollectedbythetwononprofitsgoestopayformaintainingtheParkBlocksorfacilities.Assuch,vendorswillhavetobewillingtopayfeesthatgotowardrunningthepermanentpublicmarketasawhole.Ifvendorsareunwillingtopayfees,thentherewillbeobviousimplicationsforthefeasibilityofapermanentmarketspace.
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CHAPTER 6: CONCLUSIONS AND ACTION PLAN
ThischapterdiscussesCPW’skeyconclusionsfromthepreliminaryfinancialfeasibilityassessmentforapermanentpublicmarketfacilityindowntownEugene.Ourresearchalsorevealedanumberofquestionsthatwillneedtoberesolvediftheconceptmovesforward.Thischapterpresentsanactionplanthatlistspotentialnextstepsinthedevelopmentofadowntownpublicmarket;stepsthatwillhelpanswertheunansweredquestions.
Summary of Recent Actions ConsiderableactivityhasoccurredsinceCPWstartedthisprojectin2015.MuchoftheactivityisintendedtosupportdevelopmentofapermanentmarketspaceindowntownEugene.KeyamongtheseisreauthorizationoftheEugeneDowntownUrbanRenewalDistrict.OnJune13,2016CouncilamendedtheDowntownUrbanRenewalPlan,whichmodifiedtheUrbanRenewalDistrictboundaryandidentifiesfourprojectseligibleforurbanrenewalfunds.OfparticularrelevancetothisstudyaretheprojectsthataddressParkBlockandopenspaceimprovementsandFarmers’Marketspaceimprovements.
• Farmers’MarketImprovements.TheCityofEugeneprovidesthefollowingdescriptionofthisproject:“ThisprojectfocusesonpossibleimprovementstotheParkBlocks,oranotherdowntownlocation,inordertocreateamoreattractiveandfunctionalvenueforapermanent,year-roundFarmers’Market.Optionsrangefromasimplepaviliontoafullservicebuildingandfromnolandacquisitionorsiteimprovementstolandacquisitionandimprovementfortheproject.“12AccordingtotheCity,theamendmentmakestheimprovementseligibleforupto$4.5millionofurbanrenewalfunds,withanestimatedcostrangingfrom$1.5millionto$4.5million.
• ParkBlocksandOpenSpaceImprovements.TheCityofEugeneprovidesthefollowingdescriptionofthisproject:“Thefirststepofthisprojectwillbeaskingthecommunityabouttheirhopesandvisionforourtownsquare,andconductinganeedsassessmentinourgrowingdowntownneighborhood.Theresultsofthatworkwillhelpinformplanstoimplementthecommunityvision.TheimprovementareacouldbelimitedtotheParkBlocksorhaveabroaderapproach,andincludeotherkeydowntownopenspaces:HultPlaza,BroadwayPlaza,theplazaatthenewCityHall,thenewriverfrontpark,andthepedestrianpathsysteminbetweentheseplaces.”13AccordingtotheCity,theamendmentmakestheprojecteligibleforupto$5.2millionofurbanrenewalfunds,withanestimatedrangefrom$1millionto$5.2million.
12https://www.eugene-or.gov/3255/Project-Farmers-Market.
13https://www.eugene-or.gov/3257/Project-Park-Blocks-Open-Space
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ItisdifficulttounderstatethesignificanceoftheUrbanRenewalPlanamendmentstotheconceptofapublicmarket.Itaddressesthefoundationalissueofcapitalinvestmentrelatedtoadowntownpublicmarket.Thetwoprojectsidentifiedintheplaneffectivelyaddressthatquestionandprovideamplefundstoimplementtheconcept.Inshort,theEugeneCityCounciladdressedwhatmaybethebiggestimpedimenttoapublicmarketindowntownEugenethroughtheamendments.
Thenextissueislocation.TheLaneCountyFarmersMarkethasbeenconsistentinexpressingitsdesirethatanypermanentfacilitiesbelocatedontheso-called“butterfly”lot.Atthesametime,LaneCountyidentifiedaneedtoupgradetheCountyCourthouse.In2016,LaneCountysuccessfullysecuredupto$1.4millioninfundingassistanceforCourthouseplanninganddesign.TheCountywasinitiallyexploringdevelopmentoftheCourthouseonthebutterflylot.
InJune,LaneCountyapproachedtheCityofEugenewithasetofoptionsforthedowntownfacilities.TheCountyidentifiedthreepotentialoptionsforsitingoftheCountyCourthouse,CityHallandapermanentpublicmarket:
• CourthouseatButterflyLot–Untilthepotentiallandswapdiscussionstarted,theButterflyLotwastheassumedhomeforthenewcourthouse.Thisoptionincludesthebenefitsco-locationwiththeLaneCountyPublicServicesBuildingforthecourt.Amajorconcernwithsitingthecourthousehereistherelativelysmallsizeofthelotincomparisontotheneedsofthecourthouse.
• CityHallandFarmersMarketatButterflyLot–ThisscenariowouldhavetheCityandCountyenterintoalandswapdeal.ThenewCityHallwouldbeconstructedontheButterflyLot,withthepotentialtodedicateaportionofthespacefortheFarmersMarketfacility.ThecourthousefacilitywouldbenefitfrombeinglocatedonthelargerCityHallsite,allowinggreatersetbacksandalessintensiveuseofspace,presumablyloweringcosts.CityHallconstructionwouldbedelayedduetoredesigningthefacilityonanewsite,thoughinthelong-termtheCitycouldsavesignificantamountsofmoneythroughtakingoverspaceinthecurrentCourthouse,ratherthanbuildingasecondphaseofCityHall.ThiswouldoccuroncethecourtfunctionshavefullymovedtothenewCountyCourthouselocation.
• CityHallandCourthouseTogether,FarmersMarketatButterflyLot–Inthisoption,theButterflyLotwouldbeentirelydedicatedtothemarketfacility.CurrentplansforCityHallonthewesternportionoftheexistingsitewouldcontinue.TheCountyCourthousewouldbedesignedtosharetheeasternportionoftheCityHalllot.ChallengespresentedbythisoptionincludethedifficultyindesigningtheCountyCourthousearoundtheexistingdesignofCityHallandinefficienciescreatedbyplacingtheCountyCourthousemoredistantlycomparedtotheButterflyLot.
OnJuly14,theCityofEugeneandLaneCountyconductedajointworksessiononpublicprojectsdowntown.ThisincludedthenewEugeneCityHall,theCountyCourthouse,andapermanentspacefortheLaneCountyFarmersMarket.Atthetimethisreportwascompleted,discussionsonthelandswapandsitingareexpectedtocontinue.
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Insummary,thelocationissueiscomplicatedandinfluxbutwilleventuallyberesolved.
Conclusions ThisstudyrepresentsapreliminaryassessmentofthefinancialfeasibilityofoperatingandmaintainingapublicmarketindowntownEugene.Itincludesfinancialmodelingthatisintendedtoanswerthethresholdquestionofwhetherapublicmarketcouldgeneraterevenuessufficienttocoveroperatingandmaintenancecosts.CPWdrawsthefollowingconclusionsbasedonourresearch.
A downtown public market can be financially feasible
Thisstudyfocusedondeterminingwhetheradowntownpublicmarketcouldbefinanciallyfeasible.Ouranswertothatquestionisaqualified“yes.”WenotedthelimitationstoourfinancialmodelinginChapter5-thepublicmarketconceptsusedasthebasisforfinancialmodelingdonottakeintoaccountaparticularsite,designconstraints,oragovernancestructure.Theconceptualnatureoftheseconceptsisaccompaniedbyasetofuncertaintiesthatneedtoberecognizedwheninterpretingtheresults.Thisisnotuncommon–allforecastshavesomedegreeofuncertainty.Whiletheseuncertaintiesexist,CPWisconfidentinthebroadimplicationsoftheresultsofourmodeling.
Morebroadly,weassumethattheSaturdayMarketandLaneCountyFarmersMarketwillbothsupportapermanentspaceandthatthenexusofthetwomarketswillcreateamorerobust,viablepublicmarket.OurmodelssuggestthatfeeswouldhavetoincreasesubstantiallyifthepermanentindoorfacilitiesonlyhousedtheLaneCountyFarmersMarket.TheleveloffeesthatwouldberequiredtosupportafacilitysolelyfortheLaneCountyFarmersMarketcausesustoquestionthefinancialviabilityofthatapproach.
CPW’sfinancialmodelsshowthatmostvariationsofthecombinedmarketconceptsarefeasible.Basedonpotentialvendorinterest,revenuescancoverpotentialoperatingcostsindicatingthatthemarketoperationswouldbeself-sustaining.Whilethethreemarketconceptsvaryinsizeandrequiredifferentconsiderations,CPW’sresearchdemonstratesthataPublicMarketEventindowntowncanwork.Break-evenanalysesandsensitivitytestingshowthatwhileslightmodificationtofeestructuresmaybenecessarytomitigatevariableshiftsinCPW’sassumptions,theseadjustmentsarenotextreme.
An appropriate indoor facility size is 15,000 square feet with potential to expand
Basedonexpressedinterestfrompotentialvendors,afacilityof15,000squarefeetonacombinedeventspaceofapproximately85,000squarefeetwouldbesufficienttomaintainafullandvibrantmarketatmosphere.CPWrecommendsstartingwithasmallerfacilityandthatthedesignphaseexplorethepossibilityofanindoorfacilitydesignthatcouldgrowasvendordemandincreases.
Thepublicmarketfacilityshouldalsoincludeflexibleindoor-outdoorconvertiblespacetorespondtoseasonalanddailyweatherchanges.Forexample,thepublicmarketcouldhaveretractableroofsorawningsthatwouldprovideshelterfrom
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thesunandrain.ThisapproachistakeninBellinghamandtoalesserextentOlympia,wherethebuildingsweredesignedwithlargedoorsthatcanbeopenedtocreateamoreopenspace.
Thefacilityshouldbedesignedtobeanaestheticallyappealingrepresentationofthecommunity,shouldreplicatethevibrant,livelyfeelofanoutdoormarket;andshouldbeaccessibletoallmembersofthepublic.
Co-locating the Saturday Market and Lane County Farmers Market with a combined space footprint of 80,000-90,000 square feet is most desirable for success of a public market
Acombinedandco-locatedeventwithbothLCFMandSaturdayMarketoffersthegreatestopportunityforsustainablemarketoperations.Ouranalysisshowstotaleventspaceof85,000squarefeetwouldaccommodate400ormorevendorswhileallowingamplespaceforcirculation,futureexpansion,andotheractivities.Insummary,apublicmarketsiteofthissizewouldalsoprovideroomforcommercialandopenspacesaswellaspermanentrestroomsandanon-siteoffice.
Several fee structures appear to be viable; additional work will be needed to determine which is preferable
Ourfinancialmodelsshowthatseveralfeestructureswouldgeneraterevenuesufficienttosupportoperationsofapublicmarket.Thesevariationsincludeboothfees,apercentageofgrosssales,oracombinationofthetwo.Theexistingmarketsusedifferentfeemechanisms.SaturdayMarkethasaboothfeeandassessesapercentageofsales,whileLCFMusesjustaboothfee.Additionalworkwillberequiredtodeterminewhichstructureispreferableandwhatratestoestablish.Thiswillrequireworkingcloselywithpotentialvendorstoexploretheoptions.
Optimal market operation is two or three days per week year-round
Responsesfromsurveyssenttobothmarkets,aswellasdiscussionswiththeResourceGroup,indicatethatvendorswouldbeunableorunwillingtoparticipateinapotentialpublicmarketmuchmorefrequentlythancurrentoperations.Thefinancialmodelsshowthatatwiceaweekoperationwouldbefinanciallysustainable.Thisrepresentsaconservativeapproachtomanagingthemarket—feweroperationdayswillreduceexpenses.Expansiontomoredaysispossibleinthefutureifconsumerdemanddictatesandisdesiredbyvendors.
The current markets and public entities involved should discuss governance options and other issues
IfthePublicMarketoptionistobepursued,nextstepswillrequirethatthecurrentmarketsandpublicentitiesinvolvedbegindiscussionsofgovernanceoptionsandotherissues.Regardlessoftheoutcomeofthediscussions,thesestakeholdersshouldbeinvolvedinaprocesstoexplorethevariousgovernanceoptions.
Iftheseentitiescanagreethattheconceptmakessenseinprinciple,thenfurtherdiscussionswillberequiredtoworkthrougharangeofcomplicatedquestions.Keyquestionsinclude:
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• Whatgovernanceoption(s)dotheorganizationsprefer?
• Arevendorswillingtopayfeesinadditiontofeestheyalreadypaytotheirrespectiveorganizations?Thisquestionimpliesotherquestionsandwillonlybeansweredintheaffirmativeiftheimprovementsareperceivedasaddingvaluetovendors.Questionsrelatedtotheperceivedvalueinclude:
o Whatamenitiesandfacilitiesareincludedwiththemarket?
o Whatistheroleofthepublicpartners?
o Whatisthefeestructureandhowmucharethefees?
• WhatareLCFMvendorperspectivesifthemarketcannotbesitedontheButterflyLot?Ifnot,whatalternativesexist?
Oursenseisthatthesediscussionswillraiseotherquestions.Thesediscussionsareofcriticalimportanceandshouldbeinitiatedassoonaspossible.Duetothecomplexnatureofthequestionsandthelargenumberofpeopleaffectedbytheanswers,werecommendthatthediscussionsbefacilitatedbyaprofessionalfacilitator.
Feasibility is about more than finance
CPWbelievesthatfinancialfeasibilityisachievableforthismarketconcept,butthisisonlyonepieceofwhatisnecessarytomovetheconceptforward.Beforethemarketcanmoveforward,thelocationalissuemustbesolved.Withoutasuitablespaceforthemarket,particularlyonethatcanhostthewholeevent,theconceptasmodeledcannotmoveforward.Moreimportantly,themarketwillneedbuy-infromlocalelectedofficialsandfromtheexistingmarkets.
Beyondthat,thereistheissueofwillingnesstoworktogether.Thepreviousconclusionaddressedthecomplexquestionofgovernance.Iftheaffectedpartiescannotagreetoworktogetheritcreatesanothersetofcomplicatedissues.Thefeasibilitywillalsocreatelegalissues.Theseissuescenteraroundagreementsrelatedtouseandmanagementofthesiteandthefacilitiesthatareconstructedwithpublicmoneythatwillinevitablyberequired.
Action Plan CPWhasidentifiedseveralnextstepsthatwouldneedtobeaddressedastheplanningphaseofthemarketmovesforward.Oursuggestedactionstepsareintendedtohelptoguidediscussionontheseissues,butarenotintendedtobecomprehensiveortoidentifyeveryissuethatmightemergeifthenextstepsaretakenonthepublicmarketconcept.
Gain Commitment from Current Markets
Thisisacriticalfirststep.ContinueddevelopmentofthepublicmarketconceptthroughthenextphaseiscontingentuponcommitmentfromtheLaneCountyFarmersMarketandtheSaturdayMarket.CPWmodeledthepublicmarketwithbothcraftersandproducersduetotheadvantagesandincreasedfinancialviabilityofacombinedmarket.Participationfrombothorganizationsiscriticaltothe
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financialsuccessofthemarket.Themarketswillalsoneedtodeterminehowtheycanpartnertomoveforwardwithissuesofdesign,governance,andoperation.
Itispossiblethatcommitmentmaybecontingentontheresolvingthelocationalquestion.Asetofinitialfacilitateddiscussionsshouldbeabletoidentifythekeyissuesfromthevariousparties’perspectiveandtoidentifythesequenceofdecisions.
Oneplacetostartwouldbetodevelopamissionstatement.Amajorityofthecasestudymarkets,andbothLaneCountyFarmersMarketandtheSaturdayMarkethavemissionstatements.Thegoverningorganizationofthepublicmarketwouldbenefitfromhavingamissionstatementorsetofguidingprinciplesoutliningthepurposeofthemarket.Thiswillhelpinformotherdecisionsasthemarketprojectmovesforward.
Ifcommitmentfrombothmarketscannotbeestablished,thenthepartnerswillneedtodetermineiftheprojectcanmoveforwardasanLCFMonlyconceptandworkthroughtheimplicationsofthat,includingthefinancialimplications.
Determine Location of the Market
ThisanalysisassumesthatthemarketwillbelocatedindowntownEugene.AsetofdiscussionswithstakeholdersandpotentialpartnersinJune2015identifieddowntownEugeneastheoptimallocationforthemarket.
Atthetimeofwritingthisreport,therearepoliticaldiscussionstakingplacethatmaysignificantlyimpactthelocationofthemarket.Priortomovingforwardwithanydesignconsiderations,asuitablelocationthatcanhousetheentireeventspacewillneedtobelocatedinthedowntownarea.Asstatedabove,thesizeoftheeventwillbe60,000to90,000squarefeetandhavethepotentialtositeabuildingofatleast15,000squarefeet.
WerecommendthattheinitialdiscussionswiththeprojectpartnersaddressthepossibilitythattheButterflyLotwillnotbeavailable.Ifthatisthecase,thepartnersshouldhaveafrankdiscussionaboutwhetherthey(particularlyLCFM)arewillingtoevaluateotherpotentialsites.
Thechoiceoflocationshouldincludeadiscussionaboutwhethertheproposedsitesarememorable,accessible,visible,andinclusive.Thesiteshouldhaveeasilyaccessibleparkingandallowvisitorstoeasilyorientthemselveswithinthecommunity.The2014MarketAnalysisprovidedalistofsitingconsiderationsthatwerecommendusingforreference.
Establish Governance Structure and Develop a Business Plan
Determiningthegovernancestructurewillbecriticaltovendorcommitmentandthemarket’ssuccess.Surveysofbothproducersandcraftersindicatedapreferenceformanagementbyasinglenon-profitorpartnershipbetweenmultipleentities.
Casestudyresearchindicatesthatothermarketshavesuccessfullyemployedbothofthesemodels,butapartnershipbetweenlocalgovernmententitiesandoneormorenon-profitswasmostcommon.Asstatedpreviously,CPWrecommendsa
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partnershipbetweentwoormoreorganizations,preferablyincludingboththeLaneCountyFarmersMarketandtheEugeneSaturdayMarket.Ifthatapproachisused,itraisesquestionsabouthowtoorganizegovernance.Itwillrequireformal,legalagreementsbetweentheparties.Theseshouldclearlyspecifyrepresentationofthevariouspartiesandoutlineroles.
Itislikelythatgovernancewillneedtobeaddressedpriortootherconsiderationsasthepublicmarketmovesforwardsothatthegoverningbodycanmakerecommendationsanddecisionsonthebelowtopics.
Afterbroaddecisionsaremadeonthegovernancestructure,werecommendthatthepartiesdevelopadetailedbusinessplanforthepublicmarket.
Agree on Fee Structure
Thisreportmodeledseveralfeestructurestoillustratethepossibleconditionsunderwhichthepublicmarketcanremainfeasible.Presently,theLaneCountyFarmersMarketandtheEugeneSaturdayMarketemploydifferentfeestructures.Thegoverningentitieswillneedtodecideuponthefeestructureforvendorsofthepublicmarket.
CPWmodeledafeestructureinwhichallvendors,bothindoorsandout,arechargedthesamefee.FeedbackfromtheResourceGroupindicatedthatitmaybebettertochargeindoorvendorsahigherfee,reflectingthegreateramenitythatthesevendorsenjoy.SurveysofpotentialvendorsandfeedbackfromtheResourceGroupsuggestedthatvendorsdesiretobeoutsideinniceweather,butinsideduringperiodsofinclementweather.Aleasingandfeestructurethataccountsforthehigheramenity,butalsoforthedynamicnatureofdemandwillbenecessarytopromotehigheroccupancyrates.
Currently,boththeSaturdayMarketandLaneCountyFarmersMarketemployadailyfeetovendatthemarket.Casestudiesindicatethatlonger-termleasesarepossibleandensurelivelymarketparticipation,eveninoff-peakseasons.Thenumberofoperationaldaysperyearwillaffectrevenues,butsowilltheoccupancyrate.Monthlyoryearlycommitmentsbyvendorsmayhelptoreduceseasonalfluctuationsinrevenues.
Address Questions Related to Seasonal Operations
Acoreassumptionofthisanalysisisthatthemarketwouldbeyear-round.That,however,doesnotarticulatetherangeofvariationspossiblewithinayear-roundmarketaswellasseasonalfluctuationsinbothproductsanddemand.Manyvariationsinoperationscouldbeexplored.Akeyissueishowtoaddresstheseasonalspikeindemandduringtheholidayseason.
SurveysoftheSaturdayMarketindicatedthattheHolidayMarketperiod(ThanksgivingthroughChristmas)wasconsideredpeakseasonformanyvendors.TheHolidayMarketiscurrentlysitedattheLaneEventsCenter.TheHolidayMarkethasmorevendorsthanthetypicalSaturdayeventsattheParkBlocks.TheHolidayMarketusestheExhibitHallattheLaneEventsCenter.TheExhibitHallis37,000squarefeet,andtheEventsCenterhasampleparkingandeasyaccess.
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Theimplicationsarethatholidayoperationsareunlikelytofitintoaspacesmallerthanthelargestproposedconceptinthisreport.However,buildinganindoorfacilityforpeakdemanddowntownwouldalmostcertainlymeanaloweroccupancyrateformuchoftheyearandsignificantlyhigheroperatingcosts.TheHolidayMarketisalsounabletooperateoutdoorsduetoseasonallyinclementweatherinEugene.Thus,itwillbenecessarytodecidehowtooperatetheHolidayMarketinthecontextofthepublicmarketfacility.
Develop and Implement a Facility Design Process
Acriticalcomponentofthesuccessofthemarketwillbethefacilitydesignandamenitiesprovided.Themarketshouldretainthe‘festival’atmospherethatcurrentlyexistsonSaturdaysattheParkBlocks,andshouldbeinvitingtocustomersandvendors.DuetothesitingofthemarketindowntownEugene,itmustalsoaccountforthecurrenturbanfabric.Thismeansdesigningthesiteinsuchawaythatitdoesnotbecomeanunder-activatedpublicspace.
ThedesignprocessshouldconsiderinputfromvendorsfromtheSaturdayMarketandLaneCountyFarmersMarket,aswellasmembersofthepublic.Interviewswithcasestudymarketsindicatedthatproperdesignisacriticalelementofthesuccessoftheirmarkets.Thefinalfacilitydesignwillalsoneedtoconsiderrelevantzoninganddevelopmentcodeprovisions.The2014PublicMarket&FoodHubMarketAnalysishasadditionalinformationaboutvariouslegal,physical,andfinancialconsiderationsofsiteselectionanddesign.
ItisnotclearwhentheCityofEugenewillmoveforwardwiththeimprovementstotheParkBlocksasdescribedintheUrbanRenewalPlan.TheCityhasindicatedthatprocesswilllikelyincludeampleopportunityforpublicinput.Ifthatprocessisinitiatedbeforekeypublicmarketissuesareresolved,werecommendincludingsomeofthepublicmarketdesignissueswiththosediscussions.IfitbecomesclearthatthepublicmarketwillbelocatedontheButterflyLot,westronglyrecommendthattheCityrunacombineddesignprocess.
Inadditiontostructuraldesign,thedesignprocesswillneedtoaddressbothindoorandoutdooramenities.Surveysofpotentialvendorsindicatedawidevarietyofdesiredamenities.Someamenities,suchasutilityhookups,arenecessaryformarketoperations.Otherswillimprovetheexperienceofvendorsandpatrons,thougharenotcriticaltooperations.Thesenon-essentialamenitiesincludefeatureslikebicycleparkingracks,publicWi-Fi,andstoragespace.AppendixCcontainsalistofrequiredandsuggestedamenitiesgeneratedbyCPWandtheResourceGroup.
Someoftheseamenitieswillincreaseoperationalcosts,whileotherswillonlyincreasecapitalcosts.Balancingtheneedtoprovideagreaterlevelofamenitywiththedesiretonotsubstantiallyincreasefeeswillbecriticaltoattractvendorstothepublicmarket.Thedesignphaseandfullbusinessplanshouldweighthepotentialcostsandbenefitsoftherangeofamenitiessuggestedinthisreportandthesurveystofindthebestbalance.Untilafinaldesigniscompleted,itisimpossibletoaccountforallexpectedcostsandthusproducethefinalbusinessplan.
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Anchor Businesses
Casestudyresearchindicatedthatanchorbusinessesareacriticalcomponentofmanysuccessfulmarkets.Thesebusinessesaddtothefestivalatmosphereoftheevent,provideadrawforconsumers,andcontributetorevenues.Potentialanchorbusinessesincludeacoffeeshop,beergarden,foodcarts,orotheroperationsthathavemoretraditionalbusinessmodels.
Consignmentsalesbyathird-partyareanotherpossibleuseofcommercialspace.Consignmentoperationcouldbenefitsomevendorsandprovideanincreaseddrawforconsumersduetothelargernumberofavailableproducts.CPWdidnotmodelthespecificfinancialdetailsofaconsignmentoperation,butdidconsiderthisasapotentialuseofcommercialspacewithinthefacility.
Despitethesechallenges,consignmentoffersanopportunitytoprovideasignificantamenityforsomevendors.Thisspacemayalsoallowthemarkettobeopenatalowercapacityondayswhenvendorsarenotpresent.Dependingonthearrangementwithvendors,thiscouldalsoprovideanadditionalrevenuestreamforthepublicmarket.
Sequencing Manyoftheaboveconsiderationswillinformseveralstagesoftheprocess,however,inordertomoveforward,therearecertainstepsthatwillneedtobecompletedbeforeothers.Thefollowinglistisintendedtohelpguidetheprocess.Astheprocessmovesforward,additionalstepsmaybenecessarytocontinuedevelopmentoftheproject.Generally,thesenextstepswillneedtobetakeninsequence.IfthetwoMarketsdecidedtopursuethepublicmarketconcept,CPWrecommendsthefollowingstepsbetaken.
• SiteSelection:Thedesignphaseoftheprojectcannotmoveforwardwithoutasiteonwhichtobasedesigns.
• DeterminationofGovernanceStructure:Thegovernancestructurewillguideotherstepsinthisprocess,includingthebusinessplan.Thisstepshouldincludedevelopingamissionstatement.
• DevelopBusinessPlan:Themarketwillneedtodevelopafinalbusinessplanonceagovernancestructurehasbeenselected.Developingabusinessplanwillincludecreatingamissionstatementandaccountingforalloperationalcostsandexpectedrevenues.Thisbusinessplanwillhelpguidemarketoperationsforthefirstseveralyearsandprovideamoresolidideaofrevenuesandexpenditures.
• DesignProcess:Workthroughadesignprocess,usingUrbanRenewalFunds,witharchitects,inputfrompotentialvendors,andinputfromthepublic.Havingadesignandsitetoshowtovendorswillallowthemanagementtosolicitcommitmentsfromvendors.Workonthisreportdemonstratedthatvendorsareinterestedinthemarketconcept,butarehesitanttofullycommittotheprojectwithoutamoresolidideaofthedesignofthesite.
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• SeekAdditionalFunding,ifapplicable:UrbanRenewalfundswillbeusedtoprovideamblefundingforanycapitalimprovementsthatwillbeneeded.Nevertheless,ifadditionalfundsareneeded,thesemoniesshouldbesoughtafter,potentiallythroughfundraisingcampaigns,duringorsoonafterthedesignphase.
Figure6.1:SequencingofNextSteps
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APPENDIX A: FACILITY CONCEPT AND DETAILED FINANCIAL MODELING
Methods and Assumptions CPWmadeanumberofassumptionstodevelopvariableswithinthepreliminaryfinancialfeasibilitymodels.Variablesareflexibleinthattheycanbeeasilyadjustedwhennewinformationisfoundorexistinginformationisclarified.Variablespresentinthemodelsweredeterminedbasedonsurveyresultsanddatacollectedfromcomparablemarkets.VariableswerethenrefinedthroughdiscussionswiththeResourceGroup.Thesekeyvariablesare:
• OperatingDaysperYear:CPW’scalculationsassumetwodaysofoperationperweekfor52weeksor104daysperyear.Thisnumberwasdeterminedassurveyrespondentsindicatedtheyeitherpreferredoronlyhadthecapacitytovendtwodaysperweek.
• VendorInterestandDemandforSpace:CalculationsforvendorinterestwerebasedoffofQuestion1intheLCFMandSaturdayMarketsurveywhichaskedaboutinterestinvendingatpublicmarket.CPW’scalculationsofdemandforspacewerebasedoffsurveydataaswell:percentofvendorswhocurrentlyoperateabooth(byboothsize)multipliedbythenumberofvendorsinterestedinvendingatapublicmarket(surveyquestion1)androundedtothenearestwholenumber.Inthesecalculations8x8boothsaregeneralizedto10x10boothswhile10x15and10x30boothsaregeneralizedto10x20booths.
• Open[event/recreation/informal]Area:Calculationsforopenspacewerecalculatedas70%ofleasablespacefortworeasons.Thefirstwastoensurethattherewasalargeenoughspaceforrecreationandroomforpeopletocongregate.Thesecondreasonwasformarketexpansionpurposes(somorevendorscouldbeaddedinthefuture).
• PermanentRestrooms:Calculationsforthetworestrooms(onemaleandonefemalerestroomat200SFeach)werebasedonstandarddimensionsforrestroomsforcommercialuse.
• CirculationSpace:CPWcalculatedneededindoorcirculationspaceas20%ofindoorvendingstallsandanchorbusinessesandoutdoorcirculationwasbasedon20%ofoutdoorvendingstalls.
• ManagementOfficeSpace:Thiscalculationwasbasedon300SFfora12-seatconferenceroom,200SFforamanagementoffice,fourworkstationsat80SF,and100SFforaprivaterestroom,foratotalofabout1,000squarefree.CPWmadetheassumptionthatofficespacewouldbenon-leasablebecausethisspaceisexpectedtobeusedbythegoverningorganizationofthePublicMarket.Assuch,itwillnotgeneraterevenueanditisnotconsideredaseparateoperatingexpense.
• Non-LeasableSpace:Thisspaceincludespermanentrestrooms,openspace,officespace,andcirculationspace.
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• LeasableSpace:Leasablespaceincludesindoorandoutdoorvendorstallsandanchorbusinesses.
• Anchorbusinesses:Presentinthefinancialmodelsaresixanchorbusinesses(at600SFeach)forthepurposeofofferingconsumersanothermarketattraction.It’sspaceestimateswerebasedoffofaveragesizesoffoodtrucksandfoodcourtstalls.
• NumberofBooths:Ineachconceptthereisspacefor400vendorboothstoaccountforallexistingvendorsofLCFMandSaturdayMarket.Thenumberofboothsforeachparticularsize(4x4,10x10,and10x20)wasbasedoffofwhatexistingvendorscurrentlyuse.(Alsosee“VendorInterestandDemandforSpace”—bullettwoabove).
• Occupancy:WithrefinementmadebytheResourceGroup,CPWbasedoccupancycalculationsonanannualaverageofassumedoccupancybyseasonasseasonalfluctuationisexpected.Accordingly,CPWassumedanaverageannualoccupancyrateof60%basedoffoftheseasonalvariabilitythatalreadyoccursforSaturdayMarketandLaneCountyFarmersMarket(January-Marchat40%occupancy,April-Octoberat85%occupancy,October-Novemberat85%occupancy,andThanksgiving-Decemberat30%occupancy).
• Rent/sf:Monthlyrentwasassumedat$1.25persquarefootpermonthwhichisbasedoffoftheapproximatemarketratevalueofcommercialrealestateinEugeneOregon.
• AverageDailyRevenueperVendor:Estimatesforaveragedailyvendorrevenueis$450whichwasbasedoffofSaturdayMarketandLaneCountyFarmersMarketsurveydataandroundedtothenearest$50.
• DailyPercentofSalesChargedtoVendors:Dailypercentofsaleschargedtovendorscanvary.SaturdayMarketcurrentlycharges10%ofgrosssales.Weuse5%inourbaselinemodels.
• Feestructures:Feestructuresandtheirratesarethesameforbothindoorandoutdoorvendorsastonotdisincentiveindoorvendingduringdaysofnicerweather.Thisstructurecouldbedifferentforeachtypeofvending,butthiswouldlikelyimpactdemandforeachtypeofvendorspace.
• ReserveFund:Twopercentwassubtractedfromannualrevenueinordertotransfersomefundsintoareserveorcapitalimprovementsfund.Thisapproachwasbasedoffofcasestudyresearch.
Space Program and Facility Concepts Overview
CPWdevelopedaspaceprogramtodeterminetheidealsizeofapublicmarketindowntownEugene.Thespaceprogramlooksathowmuchspacethepublicmarketwouldrequiretooperate,andwhattypeofspaceitshouldprovide(representingbothleasableandnon-leasablespace).Thespaceprogramisfoundationaltothefinancialmodeling.ItisimportanttonotethatCPWassessedspaceneedsoutsideofanyparticularsiteordesignconstraints.Toevaluatedifferentconfigurations,CPWdevelopedthreepublicmarketconceptsatvaryingfacilitysizes.Theconceptspertaintothesizeofthepublicmarketbuilding;weholdthetotaleventsizeconstantinallthreeconcepts.Thethreeconceptsincludealow,amedium,andahighscaleoption.
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ThesizeofthepublicmarketbuildingswasdevelopedbasedontheexpresseddemandforvendingspacebyvendorsthatrespondedtotheLCFMandSaturdayMarketvendorsurveys.Ifallcurrentvendors(includingLaneCountyFarmersMarketandSaturdayMarketvendors)continuetovendatthepublicmarketevent,themarketsitewouldrequirespaceforapproximately400vendors.Becauseoftheuncertaintyassociatedwithexpresseddemand(e.g.,somevendorsthatexpressedinterestinvendinginindoorspacemaynotactuallyleaseindoorspace),CPWdevelopedthreedifferentpublicmarketfacilityconcepts,eachdesignedtoprovideindoorspaceforadifferentnumberofvendors.CPWbasedthesecalculationsonvendorsurveyresponses,casestudyresearch,inputfromtheResourceGroup,andexistingconditionsofthecurrentlyoperatingmarkets.
Inadditiontospaceforvendorstalls,thefacilityconceptsincludespaceforcirculationaroundthevendingstalls,spaceforanchorbusinesses,anopenarea,publicrestrooms,andanoffice.
Facility Concepts
Thesmallfacilityconcept(15,000sq.ft.)willbereferredtoasConcept1,themedium(22,000sq.ft.)asConcept2,andthelarge(29,000sq.ft.)asConcept3.Allthreeconceptsassumethat36%,orabout31,000sq.ft.,ofthetotalmarketsitewillexistasoutdooropenspace(whichdoesnotincludeoutdoorvendingspace—althoughitcouldbeusedforadditionaloutdoorvendingspaceifdesired).FurtherdetailsareoutlinedindetailinthesectionsbelowandinTableA-4.
Concept 1: Small
Concept1isasmallfacilityestimatedat15,000grosssquarefeet(GSF).Theentireeventwouldbeapproximately85,000GSFmakingthefacility(indoorspace)approximately18%ofthetotalevent.Theindoorspaceincludedinthisconceptisbasedontheassumptionthatonlysurveyrespondentswhoindicated“veryhighinterest”invendingatapermanentpublicmarketwouldleasespace.Thisconceptaccountsfor329vendorsvendingoutdoorsin10x10stallstotalingabout33,000sq.ft.ofleasablespaceand71vendorsvendingindoorsin4x4,10x10,or10x20stalls,totalingabout7,600sq.ft.ofleasablespace.Includedwithinthefacilityisspaceforbathrooms(400sq.ft.),anchorbusinesses(3,600sq.ft.whichcouldbedividedintomultiplespacesorconglomeratedinasinglespace),officespace(300sffor12-seatconferenceroom,200sfformanagementoffice,fourworkstationsat80sf,and100sfforprivatebathroom,totaling920sq.ft.),andcirculationspaceforwalkwaysandsafety(2,246sq.ft.).
Concept 2: Medium
Concept2isamid-sizedfacilityestimatedat22,000GSF.Theentireeventwouldbeapproximately85,000GSFmakingthefacility(indoorspace)approximately26%ofthetotalevent.TheindoorspaceincludedinthisconceptisanaverageoftheindoorspaceofConcepts1and2,makingitanaverageofsurveyrespondentswhoindicatedanywherefrom“moderate”to“veryhighinterest”invendingatapermanentpublicmarket.Thisconceptaccountsfor269vendorsvendingoutdoorsin10x10stallstotalingabout27,000sq.ft.ofleasablespaceand132vendorsvendingindoorsin4x4,10x10,or10x20stalls,totalingabout13,600sq.ft.of
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leasablespace.Includedwithinthefacilityisspaceforbathrooms(400sq.ft.),anchorbusinesses(3,600sq.ft.whichcouldbedividedintomultiplespacesorconglomeratedinasinglespace),officespace(300sffor12-seatconferenceroom,200sfformanagementoffice,fourworkstationsat80sf,and100sfforprivatebathroom,totaling920sq.ft.),andcirculationspaceforwalkwaysandsafety(3,436sq.ft.).
Concept 3: Large
Concept3isalargefacilityestimatedat29,000GSF.Theentireeventwouldbeapproximately85,000GSFmakingthefacility(indoorspace)approximately34%ofthetotalevent.Theindoorspaceincludedinthisconceptisbasedontheassumptionthatsurveyrespondentswhoindicated“moderate”to“veryhighinterest”invendingatapermanentpublicmarketwouldleasespace.Thisconceptaccountsfor209vendorsvendingoutdoorsin10x10stallstotalingabout21,000sq.ft.ofleasablespaceand191vendorsvendingindoorsin4x4,10x10,or10x20stalls,totalingabout19,500sq.ft.ofleasablespace.Includedwithinthefacilityisspaceforbathrooms(400sq.ft.),anchorbusinesses(3,600sq.ft.whichcouldbedividedintomultiplespacesorconglomeratedinasinglespace),officespace(300sffor12-seatconferenceroom,200sfformanagementoffice,fourworkstationsat80sf,and100sfforprivatebathroom,totaling920sq.ft.)andcirculationspaceforwalkwaysandsafety(4,625sq.ft.).
TableA-4:SpaceProgramforAllPublicMarketConcepts
Revenue Thefollowingsectionprovidesdetailsaboutrevenue,specificallyfeestructureoptionsandannualrevenueestimates.
Fee Structure Options
CPWdevelopedthreefeestructureoptionstodeterminerevenue.Thefirstoption,FeeStructure1,chargesvendorsandanchorbusinessleaseholdersamonthlyrateof$1.25persquarefoot.Thesecondoption,FeeStructure2,chargesanchorbusinessleaseholdersamonthlyrateof$1.25persquarefootandvendorsadaily
SF/Element
#ofElements
TotalNetSF
SF/Element
#ofElements
TotalNetSF
SF/Element
#ofElements
TotalNetSF
TotalLeasableSpace 44,132 44,078 44,02410x10-outdoor 100 329 32,900 100 269 26,900 100 209 20,9004x4 16 2 32 16 8 128 16 14 22410x10 100 62 6,200 100 112 11,150 100 161 16,10010x20 200 7 1,400 200 12 2,300 200 16 3,200AnchorBusiness 600 6 3,600 600 6 3,600 600 6 3,600
TotalNon-LeasableSpace 41,038 41,036 40,925OfficeSpace 920 1 920 920 1 920 920 1 920Bathrooms 200 2 400 200 2 400 200 2 400OpenSpace-outdoor 30,892 1 30,892 30,855 1 30,900 30,817 1 30,800Circulation-outdoor 6,580 1 6,580 5,380 1 5,380 4,180 1 4,180Circulation 2,246 1 2,246 3,436 1 3,436 4,625 1 4,625
TotalFacilitySize 15,000 22,000 29,000TotalEventSize 85,000 85,000 85,000
WillametteConcept McKenzieConcept ColumbiaConcept
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percentageofsalewhichcouldvarybutabaselinepercentageof5%wasusedformodeling.Thethirdoption,FeeStructure3,chargesvendorsandanchorbusinessleaseholdersamonthlyrateof$1.25persquarefootandvendorswouldadditionallybechargedadailypercentageofsalewhichcouldvarybutabaselinepercentageof5%wasusedformodeling.
Eachfeestructureapproachwasdevelopedtomaintainequitabilityamongstvendorssellingcomparableanddissimilartypesofproducts.Whileeachapproachwouldbeviable,feeratesneednotstaythesame.Forinstance,adifferentmonthlyboothfeepersquarefootoradifferentpercentageofsalecouldreplacethe$1.25and5%baselinedependingonneedorvendor’swillingnesstopay.
Fee Estimates
ThefollowingtablessummarizethepotentialrevenuegeneratedbyeachPublicMarketconcept.Revenueisgeneratedforthreedifferentfeestructureswhichare1)aboothfeeonly,and(2)apercentageofsales(with$1.25/SFfeeforanchorbusinesses),and(3)aboothfeeplusapercentageofsales.Thesetablesportrayabaselinepercentage-basedfeeof5%ofvendor’saveragedailyrevenue($450)forfeestructure2and3.
TableA-5showspotentialrevenueearningsofleasablespaceforConcept1.Threefeestructuresareportrayed.
TableA-5:RevenuesforConcept1:Small
TableA-6showspotentialrevenueearningsofleasablespaceforConcept2.Allthreefeestructuresareportrayed.
FeeStructure3
TotalLeasableSpace
Fee/SFperMonth
Fee/SFperYear
MonthlyRent
perUnit
AnnualGrossRent
Daily%ofSales
perVendor
AnnualGrossRent
AnnualGrossRent
10x10-outdoor $1.25 $15 $125 $493,500 $493,5004x4 $1.25 $15 $20 $480 $48010x10 $1.25 $15 $125 $93,000 $93,00010x20 $1.25 $15 $250 $21,000 $21,000AnchorBusiness $1.25 $15 $750 $54,000 $54,000 $54,0005%ofSale $22.50 $936,000 $936,000TOTAL $662,000 $990,000 $1,598,000
FeeStructure1 FeeStructure2
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TableA-6:RevenuesforConcept2:Medium
TableA-7showspotentialrevenueearningsofleasablespaceforConcept3.Allthreefeestructuresareportrayed.
TableA-7:RevenuesforConcept3:Large
Foraddedcontext,TableA-8showspotentialrevenueearningsofthepublicmarketeventwithoutthedeterminationofanyoneparticularfacilitysize.Assuch,400vendorstalls,generalizedto10x10sq.ft.booths(enoughstallstomeettheneedsofexistingmarketvendors),isshown.Allthreefeestructuresareportrayed.
TableA-8:RevenuesforGeneralizedEventConcept
Expenses CPWusedcasestudyresearchandinputfromtheResourceGrouptoidentifyseveralcategoriesofoperationalexpensesthatthemarketwillneedtoconsider.Thesecategoriesarenotintendedtobeacomprehensivelist,butrathertoinform
FeeStructure3
TotalLeasableSpace
Fee/SFperMonth
Fee/SFperYear
MonthlyRent
perUnit
AnnualGrossRent
Daily%ofSales
perVendor
AnnualGrossRent
AnnualGrossRent
10x10-outdoor $1.25 $15 $125 $403,500 $403,500
4x4 $1.25 $15 $20 $1,920 $1,92010x10 $1.25 $15 $125 $167,250 $167,25010x20 $1.25 $15 $250 $34,500 $34,500AnchorBusiness $1.25 $15 $750 $54,000 $54,000 $54,0005%ofSale $22.50 $936,000 $936,000TOTAL $661,200 $990,000 $1,597,200
FeeStructure1 FeeStructure2
FeeStructure3
TotalLeasableSpace
Fee/SFperMonth
Fee/SFperYear
MonthlyRent
perUnit
AnnualGrossRent
Daily%ofSales
perVendor
AnnualGrossRent
AnnualGrossRent
10x10-outdoor $1.25 $15 $125 $313,500 $313,500
4x4 $1.25 $15 $20 $3,360 $3,36010x10 $1.25 $15 $125 $241,500 $241,50010x20 $1.25 $15 $250 $48,000 $48,000AnchorBusiness $1.25 $15 $750 $54,000 $54,000 $54,0005%ofSale $22.50 $936,000 $936,000TOTAL $660,400 $990,000 $1,596,400
FeeStructure1 FeeStructure2
FeeStructure3
TotalLeasableSpace
Fee/SFperMonth
Fee/SFperYear
MonthlyRent
perUnit
AnnualGrossRent
Daily%ofSales
perVendor
AnnualGrossRent
AnnualGrossRent
10x10 $1.25 $15 $125 $600,000 $600,000AnchorBusiness $1.25 $15 $750 $54,000 $54,000 $54,0005%ofSale $22.50 $936,000 $936,000TOTAL $654,000 $990,000 $1,590,000
FeeStructure1 FeeStructure2
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thediscussionofmarketoperationsmovingforward.Withoutexactdetailsregardingspaceandamenities,estimatesforsomeexpensecategoriesaremoretenuousthanforothercategories.Theestimatesarebasedontheoperationofcomparablemarketsandincludea15%contingencytoaccountfortheuncertaintyofexpenses.
Operatingexpensesforthemarketfallintothefollowingcategories:
• Personnelexpenses:Thiswillbethelargestexpense.Ataminimum,themarketwillrequireadirectorandmaintenancestaff.Fringebenefitsarealsoincludedinthecostofpersonnel.Thesecostsarestablethroughouttheyearandwillincreaseasmarketoperationsincrease.
• AdvertisingandMarketing:Themarketwillhavemarketingandpublicrelationsexpensesofsomesort.Theseexpensesmaybemodestandcanbeeasilyscaledtomarketoperations.Assuch,theseexpenseestimateshavealargerange.Thiscategorydoesnotincludepersonnelexpensesassociatedwithmarketing;thosearecombinedwithpersonnelexpenses.
• Professionalservices:Theseexpensesincludeinsuranceandlegalservices.Insurancewillberequiredfortheentitythatownsthephysicalmarketsite.
• Utilitycosts:Water,electric,andotherutilitieswillberequiredformarketoperations.Thiscategoryalsoincludeswasteremoval.Someutilityexpensesmaybepassedontotenantsthroughusagefees,however,themarketwillhaveenergyconsumptionbeyondwhatvendorsrequire.Thesecostswillvarygreatlythroughouttheyearandwilllikelyincreaseasthescaleofamenityincreases.
• Maintenanceandotherrepairs:Regardlessoftheownershipmodelofthephysicalstructureofthemarket,theoperatingentitywilllikelyberesponsibleforcoveringmaintenanceandrepaircoststosomeextent.Thisexpensecategorywillbehighlyvariablebasedonboththephysicalsizeofthefacilityandthegovernancemodelofthemarket.
• Supplies:Thiscategoryincludesgeneralsuppliesnecessarytooperatethemarket.Thiscategoryalsoincludestheexpectedofficeexpenses.
Personnel Expenses
Personnelrepresentsthelargestsinglecostcategoryforallconcepts.TableA-9showsabreakdownoftheFTEestimatedforeachposition.
CPWestimatedpersonnelexpensesbyreviewingexpensecategoriesforsimilarmarkets.Foreachposition,CPWdevelopedabasesalaryestimatedbasedonsimilarmarkets.Weassumedfringebenefitsat25%oftheFTEsalary.Toaccountforsomevariabilityinpersonnelexpenses,expenseestimatesinthefinalmodelareshownasplusorminus10%oftheestimatedexpense.
Thesepersonnelexpenseswillneedtobemoreaccuratelyestimatedonceafinaldesignofthefacilityandmanagementstructurehasbeenselected.Regardlessofthesizeofthemarket,CPWanticipatesthataminimumofafulltimemarketdirectorandpartialsupportingstaffwillberequired.Wenotethatsomeoftheeffortmayultimatelybecoveredbyotherpartners.
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TableA-9:FTEestimatesforpersonnel
Personnelcostsareestimatedforoperationsofthepublicmarketfacility,anddonotincludeanyFTEformanagementofexistingmarketsortheirrespectivenonprofitorganizations.Theestimatesdonotincludeeffortforpreparationandcleaningoftheoutdoorspace.Weassumethatwilloccurthroughacombinationofeffortfromcitystaffandvolunteersforthenonprofits.Theestimatedoperatingexpensesalsodonotincluderentpaidbythemarketstotheownersofthelandonwhichtheyoperate.Currently,SaturdayMarketpaystheCityofEugene$5,000annuallytooperateontheParkBlocksandLCFMpaysLaneCounty$25pereventdaytousethespacearoundtheButterflyLot.Becausethispreliminarystudydoesnotidentifyaspecificsiteforthepublicmarket,andduetotheassumptionthatpublicentitieswouldnotsubsidizetheoperationsofthepublicmarket,CPWdidnotdevelopanestimateforthisexpensecategory.
Advertising / Marketing Expenses
MarketingandadvertisingexpensesvariedconsiderablyamongthebudgetsreviewedbyCPW.Somemarketsappeartorelyheavilyonmarketingtoincreasetheircustomerbase.Somemarketsalsohadafulltimemarketingdirector.Basedonlocalconditions,especiallythattheLaneCountyFarmersMarketandSaturdayMarketarealreadywell-knownandwellattendedevents,theseexpensesareestimatedtobebetween$10,000and$50,000annually.Thesecostscouldbeincreasedatanytimebasedonthewillingnessofthemarkettoincreasefunding.
Position FTE BaseSalary AnnualBenefits TotalExpenseDirector/Manager 1 $65,000 $16,000 $81,000AssistantManager 0.5 $40,000 $10,000 $25,000Maintenance/Janitorial 0.5 $40,000 $10,000 $25,000Clerical 0.5 $25,000 $6,000 $16,000Total 2.5 $147,000
Concept1:Small
Position FTE BaseSalary AnnualBenefits TotalExpenseDirector/Manager 1 $65,000 $16,000 $81,000AssistantManager 1.0 $40,000 $10,000 $50,000Maintenance/Janitorial 1.0 $40,000 $10,000 $50,000Clerical 1.0 $25,000 $6,000 $31,000Total 4.0 $170,000 $42,000 $212,000
Concept2:Medium
Position FTE Basesalary AnnualBenefits TotalExpenseDirector/Manager 1 $65,000 $16,000 $81,000AssistantManager 1.0 $40,000 $10,000 $50,000Maintenance/Janitorial 2.0 $40,000 $10,000 $100,000Clerical 1.0 $25,000 $6,000 $31,000Total 5.0 $170,000 $42,000 $262,000
Concept3:Large
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Legal / Professional Expenses
Allmarketsrequiredlegalandprofessionalexpenses.Theseexpensestendedtobesimilaracrossdifferentmarketsizes,thoughlargermarketstypicallybudgetedagreateramount.Increasesinmarketsizedidnotappeartorequiresignificantincreasesinexpendituresfortheseservices.Weassumeannuallegal/professionalexpenseswillbebetweenabout$5,000and$17,000.
Insurance
Insurancecostsarebasedonsimilarmarkets.SomeofthebudgetsreviewedbyCPWhadgreaterinsurancecosts,butthesewereindissimilarareasandthehigherinsurancecostsarelikelytheresultofthisdissimilarity.Dependingontheeventualownershipandsitingofthefacility,insurancecostsmaybeabsorbedunderexistingmunicipalinsurancecontracts.Forourmodels,weassumedthatinsurancecostswouldbebetween$10,000and$20,000.Thiswasincludedasanexpensetomodelthefacilitywithoutoperatingsubsidy.
Utilities / Waste
Estimatesforutilitiesandwasteweregeneratedbyaveragingthepersquarefootcostoftheseitemsforsimilarmarkets.Thisaveragewasthenadjustedtoahigherandlowerestimatepersquarefoottoshowthevariabilityofthesecosts.Generally,marketshadverydifferentcostsforwasteandutilities.Thislikelyreflectslocalclimateandutilityrates,butalsodifferenttypesoffacilities.Thelowestimateis$2.00persquarefoot.Thehighestimateis$4.00persquarefoot.
Morepreciseestimatesforutilitiesandwastewillbepossibleonceafinalfacilitydesignisavailable.Highlyenergyefficientdesignsmaylowerthecostofutilities.
Maintenance/Repair
Maintenanceandrepaircostsarealsotakenfromaveragingcostsofsimilarmarkets.Theaveragewasadjustedtohigherandlowerestimatestoreflectthevariabilityoftheseexpenses.Thelowestimateformaintenanceandrepairis$0.75persquarefoot,whilethehighestimateis$1.50persquarefoot.Thisbudgetisfordailymaintenanceandrepaircosts.Thisdoesnotincludelong-termcapitalimprovementsthatwillbenecessaryoverthelifespanofthefacility.Thedesignofthefacilitywillhavealargeimpactonexpectedmaintenancecosts.
Supplies
Thisexpensecategoryreflectsthecostofofficesupplies,computers,andotherexpensesrelatedtomanagingthemarket.Thiscategoryisbasedonsimilarmarketsandfeedbackfromtheresourcegroup.Largermarketsrequiremoremanagementpersonnelandwillconsequentlyincurmoreexpensesrelatedtothismanagement.Weestimatesupplyexpensesat$16,000to$33,000annually.
Expense Summary
TableA-10summarizestheestimatedexpensesbycategory.Alowandhighestimateareprovided.Inordertomoreconservativelyestimatecosts,a15%contingencywasaddedtoeachoftheexpensecategories.Thenumbersinthetablereflecttheexpectedcostswiththecontingencyadded.
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TableA-10:Estimatedexpensesforallconcepts
Somecategoriesofexpenseshavealargeamountofvariationbetweenlowandhighestimates.Thisistheresultofthesecategoriespresentingopportunitiestoincreasetheintensityofoperationsforeachconcept.Incasestudies,somemarketsspentverylittleonmarketing,whileinothers,thiswasasignificantexpenditure.Othercategories,suchasmaintenanceandrepairwillvarybasedonthetypeoffacilityconstructedandtheamenitiesprovided.
Theseexpenseestimatesareprimarilyforoperationsoftheindoorfacility.ThismodelassumesthatoutdoorvendingwillcontinueinasimilarcapacityasitdoescurrentlyontheParkBlocks.Thisisespeciallyimportantwhenconsideringmaintenanceandjanitorialpersonnelexpenses.VolunteerscurrentlyhelpcleantheParkBlocksbeforeevents.Itisassumedthattheywillcontinuetodosointhefuture.However,itisnotassumedthattheywouldalsoberesponsibleformaintenanceandcleaningofanyindoorfacilities.Utilitiesandwastecollectionaretreatedinasimilarmanner.Shouldanychangesinoutdooroperationsoccur,theseadditionalexpenseswillneedtobeaddedtothecurrentexpenseestimates.
Theseoperatingexpensesdonotincludecapitalcostsordebtserviceoncapitalcosts.Shouldthemarketincurtheseexpenses,theyshouldbeconsideredinadditiontotheoperatingexpensesestimatedhere.
Summary of Financial Models Thefollowingtables(TableA-11,A-12,andA-13)showabreakdownofrevenuesandexpensesforeachpublicmarketconcept.Foreachmodel,FeeStructures2and3usea5%baselineforpercentofsales.
TableA-11showsthatConcept1cansustainitselffinancially,withanoperatingsurplus,giventhebaselineassumptions.
Low High Low High Low HighPersonnel $151,800 $186,300 $219,650 $267,950 $271,400 $331,200Advertising/Marketing $9,200 $26,450 $12,650 $37,950 $17,250 $50,600Legal/Professional $5,750 $11,500 $11,500 $17,250 $11,500 $17,250Insurance $9,200 $17,250 $11,500 $20,700 $11,500 $20,700Utilities/Waste $34,500 $69,000 $50,600 $101,200 $66,700 $133,400Maintenance/Repair $12,650 $26,450 $19,550 $37,950 $25,300 $50,600Supplies $16,100 $19,550 $24,150 $28,750 $27,600 $33,350TOTAL $239,200 $356,500 $349,600 $511,750 $431,250 $637,100
ExpensesConcept1:Small Concept2:Medium Concept3:Large
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TableA-11:PreliminaryProFormaforConcept1(Small)
TableA-12showsshowthatConcept2wouldgenerateanoperatingsurplusunderallscenariosbyone.Thefacilitywouldnotbreakevenusingjusttheboothfee(feestructure1).UsingFeeStructure1withahighexpenseestimate,themediumconceptwouldrequireahigherfeeratetomaintainfinancialviability.
TableA-12:PreliminaryProFormaforConcept2(Medium)
FeeStructure1 FeeStructure2 FeeStructure3Revenue
BoothFee 607,980$ -$ 607,170$Lease(AnchorBusiness) 54,000$ 54,000$ 54,000$%ofGrossReceipts -$ 936,000$ 936,000$
Vacancy 40% 40% 40%Reserve 2% 2% 2%
TotalRevenue 383,948$ 574,200$ 926,359$ExpenseLowExpense
Personnel 132,000$ 132,000$ 132,000$Operations 76,000$ 76,000$ 76,000$Contingency 31,200$ 31,200$ 31,200$
HighExpensePersonnel 162,000$ 162,000$ 162,000$Operations 148,000$ 148,000$ 148,000$Contingency 46,500$ 46,500$ 46,500$
TotalExpenseLow 239,200$ 239,200$ 239,200$TotalExpenseHigh 356,500$ 356,500$ 356,500$NetRevenuewithLowExpense 144,748$ 335,000$ 687,159$NetRevenuewithHighExpense 27,448$ 217,700$ 569,859$
FeeStructure1 FeeStructure2 FeeStructure3Revenue
BoothFee 606,360$ -$ 607,170$Lease(AnchorBusiness) 54,000$ 54,000$ 54,000$%ofGrossReceipts -$ 936,000$ 936,000$
Vacancy 40% 40% 40%Reserve 2% 2% 2%
TotalRevenue 383,009$ 574,200$ 926,359$ExpenseLowExpense
Personnel 191,000$ 191,000$ 191,000$Operations 113,000$ 113,000$ 113,000$Contingency 45,600$ 45,600$ 45,600$
HighExpensePersonnel 233,000$ 233,000$ 233,000$Operations 212,000$ 212,000$ 212,000$Contingency 66,750$ 66,750$ 66,750$
TotalExpenseLow 349,600$ 349,600$ 349,600$TotalExpenseHigh 511,750$ 511,750$ 511,750$NetRevenuewithLowExpense 33,409$ 224,600$ 576,759$NetRevenuewithHighExpense (128,741)$ 62,450$ 414,609$
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TableA-13showsthatConcept3hasmixedresults.Themodelsshowthatthefacilitywouldnotbreakevenusingjusttheboothfee(feestructure1)orunderthehighexpensescenarioinfeestructure2(%ofsales).InConcept3’sremainingthreescenarios(usingFeeStructure1withalowexpenseestimate,usingFeeStructure1withahighexpenseestimate,andusingFeeStructure2withahighexpenseestimate)ahigherfeeratewouldhavetobechargedfortheconcepttobreakeven.
TableA-13:PreliminaryProFormaforConcept3(Large)
Sensitivity Analysis Severalkeyvariableshavetheabilitytoconsiderablyimpactthefinancialfeasibilitymodels.Itwasnecessarytotestthesevariablestodeterminehowpotentialchangescouldimpactoutputs.Thesekeyvariablesandasummaryoftheirsensitivitytestingisasfollows:
Seasonality/Occupancy
Seasonalitymayaffectoccupancyandthereforerevenuepotentialand/oroperatingdays.Thebaselineanalysisassumedanaverageof60%occupancy.14TableA-14showswhatfeerateswouldneedtobeforoperationstobreakevengivenahighexpenseestimate.Forexample,at50%occupancy,thesmallconceptwouldneedtocollectatleast$1.40/sfpermonthunderFeeStructure1,a3.7%of
14Note:occupancywouldvarybyseason.Forexample,itislikelythatoccupancywouldbecloseto100%duringpeakseason,butwoulddroptoonlyindoorspace(20-40%occupancy)duringfirstquartermonths.
FeeStructure1 FeeStructure2 FeeStructure3Revenue
BoothFee 606,360$ -$ 606,360$Lease(AnchorBusiness) 54,000$ 54,000$ 54,000$%ofGrossReceipts -$ 936,000$ 936,000$
Vacancy 40% 40% 40%Reserve 2% 2% 2%
TotalRevenue 383,009$ 574,200$ 925,889$ExpenseLowExpense
Personnel 236,000$ 236,000$ 236,000$Operations 139,000$ 139,000$ 139,000$Contingency 56,250$ 56,250$ 56,250$
HighExpensePersonnel 288,000$ 288,000$ 288,000$Operations 266,000$ 266,000$ 266,000$Contingency 83,100$ 83,100$ 83,100$
TotalExpenseLow 431,250$ 431,250$ 431,250$TotalExpenseHigh 637,100$ 637,100$ 637,100$NetRevenuewithLowExpense (48,241)$ 142,950$ 494,639$NetRevenuewithHighExpense (254,091)$ (62,900)$ 288,789$
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salesunderFeeStructure2,and$.70/sfpermonthwith2%ofsalesunderFeeStructure3.
TableA-14:FeeLevelsRequiredtoBreakEvenatDifferentOccupancyLevels
*ThecurrenciesforFeeStructure1reflectthemonthlyfeerate/sfthatwouldhavetobechargedtovendorsandanchorbusinessleaseholder.ThepercentagesunderFeeStructure2reflectthepercentofdailysalesvendorswouldbecharged.ThecurrenciesforFeeStructure3reflectthemonthlyfeerate/sfthatwouldhavetobechargedtovendorsandanchorbusinesses(withvendorsadditionallybeingchargeda2%ofsalebaseline).
Operating and Maintenance Expenses
Operatingandmaintenanceexpensesarethemosttenuouspartofthisanalysis.Totesttheextentofwhichnetrevenuemaybeaffectedbuthigherthanexpectedexpenses,CPWconductedasensitivityanalysisbyraisingexpenses(highexpenseestimates)in10%increments.Forsimplicity,FeeStructures2and3usedabaselineof5%ofsalestocalculaterevenue.
ForConcept1,financialviabilityislostwhenoperatingandmaintenanceexpensesincreaseby10%whenusingFeeStructure1.WhenusingFeeStructure2and3,anetpositiverevenueismaintainedevenifoperatingandmaintenanceexpensesincreaseby50%.
TableA-15:FinancialPerformanceBasedonIncreasedOperatingandMaintenanceExpensesforConcept1(Small)
Occupancy: 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
FeeStructure1 $8.41 $3.74 $2.40 $1.77 $1.40 $1.16 $0.99 $0.86 $0.76 $0.69FeeStructure2 23.5% 10.3% 6.5% 4.7% 3.7% 3.0% 2.5% 2.2% 1.9% 1.7%FeeStructure3 $7.71 $3.03 $1.70 $1.06 $0.70 $0.45 $0.28 $0.16 $0.06 -$0.02
FeeStructure1 $12.09 $5.38 $3.46 $2.55 $2.02 $1.67 $1.42 $1.24 $1.10 $0.99FeeStructure2 33.9% 14.9% 9.5% 6.9% 5.4% 4.4% 3.7% 3.2% 2.8% 2.5%FeeStructure3 $11.39 $4.67 $2.75 $1.84 $1.31 $0.96 $0.71 $0.53 $0.39 $0.28
FeeStructure1 $15.07 $6.70 $4.31 $3.17 $2.51 $2.08 $1.77 $1.55 $1.37 $1.23FeeStructure2 42.3% 18.6% 11.9% 8.7% 6.8% 5.6% 4.7% 4.1% 3.6% 3.2%FeeStructure3 $14.37 $5.99 $3.60 $2.46 $1.80 $1.37 $1.06 $0.84 $0.66 $0.52
Concept3:Large
Concept2:Medium
Concept1:Small
%ofBaseExpense
(HighEstimate)Expense NetRev Expense NetRev Expense NetRev
100% $356,500 $27,500 $356,500 $217,700 $356,500 $570,300110% $392,150 -$8,150 $392,150 $182,050 $392,150 $534,650120% $427,800 -$43,800 $427,800 $146,400 $427,800 $499,000130% $463,450 -$79,450 $463,450 $110,750 $463,450 $463,350140% $499,100 -$115,100 $499,100 $75,100 $499,100 $427,700150% $534,750 -$150,750 $534,750 $39,450 $534,750 $392,050
FeeStructure1 FeeStructure2 FeeStructure3
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ForConcept2,financialfeasibilityisnotpossibleusingFeeStructure1—consideringthebuiltinassumptionsofthemodel.WhenusingFeeStructure2,Concept2maintainsanetpositiverevenueaslongasoperatingandmaintenanceexpensesstaywithin10%ofexpectations.ForFeeStructure3,Concept2willmaintainanetpositiverevenueevenifoperatingandmaintenanceexpensesincreaseby50%.
TableA-16:FinancialPerformanceBasedonIncreasedOperatingandMaintenanceExpensesforConcept2(Medium)
ForConcept3,financialfeasibilityisnotpossiblewithFeeStructure1and2giventhebuilt-inassumptionsofthemodel.WhenusingFeeStructure3,Concept3maintainsanetpositiverevenueevenifoperatingandmaintenanceexpensesincreaseby40%.
TableA-17:FinancialPerformanceBasedonIncreasedOperatingandMaintenanceExpensesforConcept3(Large)
Average Daily Revenue per Vendor
Theamountofincomevendersmakeinadaymayimpactthefinancialmodelifusingafeestructurethatchargesvendorsapercentageoftheirsales.Sincebothfeestructure2and3chargevendorsapercentageoftheirsalesasensitivityanalysisondailysalestesttheimpactofassumptionsonfinancialperformanceusingahighexpenseestimate.ForFeeStructure3,a$1.25/sfmonthlyfeewasusedasthebaseline.
ForFeeStructure2and3,atablehasbeenpreparedtoshowcasetheminimumpercentageofsalerequiredtosustainapositiveNOIforarangeofpotentialaveragerevenuespervendor.Itisimportanttonotethatitislikelythatvendors
%ofBaseExpense
(HighEstimate)Expense NetRev Expense NetRev Expense NetRev
100% $511,750 -$128,250 $511,750 $62,450 $511,750 $414,650110% $562,925 -$179,425 $562,925 $11,275 $562,925 $363,475120% $614,100 -$230,600 $614,100 -$39,900 $614,100 $312,300130% $665,275 -$281,775 $665,275 -$91,075 $665,275 $261,125140% $716,450 -$332,950 $716,450 -$142,250 $716,450 $209,950150% $767,625 -$384,125 $767,625 -$193,425 $767,625 $158,775
FeeStructure1 FeeStructure2 FeeStructure3
%ofBaseExpense
(HighEstimate)Expense NetRev Expense NetRev Expense NetRev
100% $637,100 -$254,100 $637,100 -$62,900 $637,100 $288,800110% $700,810 -$317,810 $700,810 -$126,610 $700,810 $225,090120% $764,520 -$381,520 $764,520 -$190,320 $764,520 $161,380130% $828,230 -$445,230 $828,230 -$254,030 $828,230 $97,670140% $891,940 -$508,940 $891,940 -$317,740 $891,940 $33,960150% $955,650 -$572,650 $955,650 -$381,450 $955,650 -$29,750
FeeStructure1 FeeStructure2 FeeStructure3
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willnotbewillingtoforfeitmorethan10%oftheirsalestothepublicmarketevent.
TableA-18:PercentofReceiptFeesRequiredBasedonAverageDailyRevenuePerVendor
Willamette McKenzie Columbia Willamette McKenzie ColumbiaMinimum%ofSale
Minimum%ofSale
Minimum%ofSale
Minimum%ofSale
Minimum%ofSale
Minimum%ofSale
$50 27.0% 39.8% 50.2% N/AwithBoothFee 10.6% 21.1%$100 13.5% 19.9% 25.1% N/AwithBoothFee 5.3% 10.5%$150 9.0% 13.3% 16.7% N/AwithBoothFee 3.5% 7.0%$200 6.7% 10.0% 12.6% N/AwithBoothFee 2.7% 2.3%$250 5.4% 8.0% 10.0% N/AwithBoothFee 2.1% 4.2%$300 4.5% 6.6% 8.4% N/AwithBoothFee 1.8% 3.5%$350 3.9% 5.7% 7.2% N/AwithBoothFee 1.5% 3.0%$400 3.4% 5.0% 6.3% N/AwithBoothFee 1.3% 2.6%$450 3.0% 4.4% 5.6% N/AwithBoothFee 1.2% 2.3%
AverageDailyRevenueper
Vendor
FeeStructure2 FeeStructure3
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APPENDIX B: CASE STUDIES
BetterunderstandingofthesuccessesandchallengesofotherpublicmarketsincommunitiessimilartoEugene-SpringfieldwasacornerstoneofCPW’sresearchprocess.ThisAppendixsummarizesfindingsofCPW’scasestudyresearch.CPWconducedonlineresearchandinterviewswithrepresentativesfromeachcasestudypublicmarket.Thepublicmarketsfeaturedincasestudyresearchinclude:
• Asheville,NC• Bellingham,WA• Boulder,CO• Burlington,VT• Madison,WI• Olympia,WA
Summary of Case Study Findings Thefollowingsectionssummarizekeyfindingsfromthecasestudyresearch.
Facility Details
CPW’scasestudyresearchsuggeststhatlocationanddesignofapublicmarketfacilityarekeytoacquiringandmaintainingavidpatronage.Mostofthepublicmarketsinthesecasestudiesarelocatedincitycentersandfunctionasanactivitycenteronmarketdays,withaccessfrommultiplemodesoftransportation,andastrongcommunityatmosphere.Thiscommunityatmosphereispromotedbyasitedesignfeaturinglargeopenspacesandcommunalareas.
Aconvertiblebuilding,asinthecaseofAsheville’struckbarns,functionsasaspacethatisviableforuseinalltypesofweatherandprovidestheairy,openfeelthatvisitorsmayassociatewithamarketsquare.Casestudyresearchsuggestedthatamenitiesforvendorsandvisitorsvarywidelybetweenmarkets.Commonamenitiesincludepublicrestrooms,communalgatheringareas,cold/drystorage,permanentstalls,loadingdocks,parking,easeofaccesstoalltransportationmodes(includingbikeparking,busstops,andotheralternatives),andaccesstoutilities(potablewaterandelectricity).Othermarketsincludecommercialkitchens,eventstages,conferencerooms,andofficespace.
Governing/Management Structure
Thegoverning/managementstructureofamarketisimportantfortheoverallorganizationofapublicmarketanditscontinuedhealthovertime.Otherpublicmarketstendtohaveoneoftwotypesofgoverningstructures:(1)governanceandmanagementbyapublicentity;and(2)governanceandmanagementbyanon-profitorganizationledbyanelectedboard.
SimilartotheLaneCountyFarmersMarketandSaturdayMarket,marketsinBoulder,Burlington,andOlympiaallfunctionundertheoversightofanonprofitorganizationwithaboardelectedbythemembership.ThepublicmarketinMadison,thathasyettoopen,willbegovernedbyanonprofitorganizationaswell.
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Inmostcases,thenonprofitemploysstafftohelpwiththemarketing,management,andmaintenanceofthepublicmarket.
Publicly-operatedmarketsfunctionundertheoversightoflocalorstategovernmentalorganizationsliketheDepartmentofParksandRecreation(Bellingham,WA)andtheStateDepartmentofAgricultureandConsumerServices(Asheville,NC).Thesemarketshaveemployeesformarketingandmanagement,althoughmaintenanceandotherdutiesmaybeundertheresponsibilityofunaffiliatedgovernmentemployees.
Operational Model
CPWdefinestheelementsofanoperationalmodeltoincludethedatesandtimesthatapublicmarketisopen,whenitisindoorsoroutdoors,whoisallowedtosellgoods,andwheregoodsaresourcedfrom.EverymarketCPWstudiedmaintainsdifferenthours,differentdays,anddifferentlengthsofseasons.Muchofthisvariationisbasedonthedifferentgrowingseasonsinthemarkets’respectiveareas.Thecasestudiessuggestthatitiscommonformarketstoeithercloseorhavegreatlyreducedvendinghoursduringtheoffseasonsandnormalworkdayhoursduringtheweek.Insomecases,themarketsstayopenlongeronweekends.
Financial Characteristics
Apublicmarket’sfinancialfeasibilityultimatelydependsonitsmethodofbalancingrevenueswithoperatingexpenditures.Somepublicmarketsfunctionunderagovernmentalsubsidywhileothersgeneratesufficientrevenuestocoveroperationandmaintenanceexpenses.
Mostpublicmarketsstudiedhaveafinancialmodelthatincludesannualmembershipfees.Rentforvendingspace,chargedthroughadailyfeeorpercentageofsales,isalsoasignificantsourceofrevenue.Thisfeestructureallowsmarketstochargevendorsequitably:vendorspayashareoftherentthatisproportionaltotheamountofspacetheyuseandtherevenuethattheyearnfromsellingtheirgoods.
Inadditiontorevenuefromrentingvendingspace,manypublicmarketsaresubsidizedbygovernmentfunds.Infouroutofsixcases,operationsarepartiallyfundedorsupportedinotherwaysbypublicagencies.Forsomemarkets,asmuchas25%oftheoperationalbudgetcomesfromgeneralfundrevenues.Fund-matchingprogramsarealsocommon,whereprivateandpublicinterestscometogethertocommitfundstomaintainthepublicmarket.
Other Considerations
Howapublicmarketdefines“local”andwhattypeofproductsvendorsareallowedtosellcanimpactpatronage.Everypublicmarketinthesecasestudies,asidefromAsheville,defines“localgoods”asgoodsthataregrownorcraftedwithintheirrespectivecountiesorstates.Ashevilleislocatednearseveralotherstatesandsothatmarket’sdefinitionoflocalisregionally-based.Whilethedefinitionoflocalmayvaryfrommarkettomarket,therangeofproductssoldtendstobesimilar.Mostmarketsfeaturesomecombinationofcraftedorhomemadegoods,produce,meats,preparedfoods,andpreparedbeverages.
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Additionally,almostallpublicmarketsincludedinthisstudyacceptawidevarietyofcurrencyforpurchaseofgoodsincludingcash,credit/debit,EBT(bothSNAPandWIC),SeniorChecks,andUSDAsubsidies.AllowingcustomerstopayforproductsusingEBTorotherbenefitscanmakethemarketmoreaccessibletopeoplefromavarietyofbackgrounds.
Conclusions CPW’scasestudyresearchsuggeststhatasuccessfulpublicmarketreliesonacombinationofthesekeyingredients:
• Stronggovernancewithinvolvedmembership;
• Chargesforvendingspacethatarefairandproportionaltothesizeofoperationand/orsales;
• Abroadrangeofpricingandpaymentmethodsforpatrons;
• Avarietyofgoods,services,andamenities;and
• Awelcomingandaccessiblespace/design.
Goodgovernanceallowsmarketstofunctionwellandcanprovideanoutletformembersorpatronstoexpresstheirneeds,concerns,anddesiresforthepublicmarket.Developinganappropriatesystemfordetermininghowtochargevendorsfortheiruseofspaceisalsoimportant.Vendorsmustbechargedenoughtoprovidesufficientrevenue—necessarytomaintainoperationsandthefacilitywithminimalsubsidy.However,feesmustbelowenoughtoallowvendorstocontinueprosperouslyvending,withouthinderingtheirownrevenues.Thiswillallowvisitorstheabilitytoaffordthegoodsondisplaysotheymaycontinuetoreturntothemarketfrequently.
ThenextsectionfeaturesadetailedoutlineofeachofthemarketsonwhichCPWconductedcasestudyresearch.
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Asheville, NC - Western North Carolina Farmers Market “Whenyouwantthebest,it’sgottobeNC!OurmissionistopromoteNorthCarolina’sagriculturalbountytoconsumersacrossthestate,country,andaroundtheworld.”
-WesternNorthCarolinaFarmersMarketMissionStatement
Local Context
CPWchoseWesternNorthCarolina(WNC)FarmersMarket,basedinAsheville,NC,asacasestudyforthisprojectbecauseitspopulationissimilarinsizetoEugene’s,itssummergrowingseasonissimilar(over100daysinlength),anditalsoholdsstatusasacollegetown(hostingseveraluniversitiesandcolleges).TheclimateinAshevilleiscomparabletothatinEugene,withsimilartemperaturesandprecipitationlevels.15
Market Characteristics
WNCFarmersMarketislocatedonathirty-six-acresitelocatedneartodowntownAsheville.16Themarketfacilityconsistsofapermanentsmalldealersbuilding,twolargepermanentwholesalebuildings(open24hoursaday),andfiveopen-airtrucksheds(mostlyforthesaleofproduce).Thesebuildingsofferproduceyear-roundtogrocerystores,restaurants,institutions,androadsidemarkets.Inshort,thismarketisacombinationregionalfoodhubandpublicmarket.
FigureB-1:Aviewfrominsidethefacilityshowingwidecentralwalkways
Source:AshevilleFarmersMarket
15http://climate.ncsu.edu/climate/ncclimate.html16http://www.ncagr.gov/markets/facilities/markets/asheville/index.htm
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Financial and Governance Structure
TheWesternNorthCarolinaFarmersMarketwasfirstopenedin1977andisapublicly-ownedmarket,operatedbytheNorthCarolinaStateDepartmentofAgricultureandConsumerServices.
Themarketisopensevendaysaweekduringnormalbusinesshours(8amto6pmfromAprilthroughOctoberand8amto5pmfromNovemberthroughMarch)andismaintainedyear-round.Itisfinancedthroughrentalfeesfordailysalespacesandlong-termleasesforretailandwholesalebusinesses.Theoperationsarefinanced75%throughthemarket,and25%throughappropriatedfundsfromtaxdollars.
Products and Services
Themarketoffersabroadrangeofproductsfromcheese,tocherries,toChristmastreesandmeats.ThemarketslowsdownfromJanuarytoMarch,buttheretailandwholesaleshopsremainopen.Duringwinter,theycontinuetoprovideproduceforbusinessesinthearea.
Farmersareonlyabletoselldirectlytopatronsiftheyoradirectmemberoftheirfamilysellsthegoods,otherwisetheymustselltheirproductstoawholesalerorretailerlocatedatthefacility.Unlikemanyothercasestudymarkets,thedefinitionof“local”productsismuchbroader,allowingforthesaleofproductsfromneighboringstatesandevensomeinternationalproducts.Onlyasingletruckshedisdesignatedsolelyforlocalfarmerstoselltheirgoods.
FigureB-2:OutdoorsatWesternNorthCarolinaFarmersMarket
Source:CityofAsheville
Produceisdistributedthroughouttheareatolocalbusinesses,chains,roadsidestands,andlargefoodservicesegments(industrialproduction).Inadditiontosellingfood,themarketprovidesspaceforapermanentrestaurantandaplant
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nurseryforgardening.Thelocalcommunitycollegeparticipatesina“ChefSchool”onsite.
Successes and Challenges
WesternNorthCarolinaFarmer’sMarketfaceschallengessuchascompetitionwithgrocerystores,andthefarmers’limitedknowledgeaboutgovernmentregulations.Ontheotherhand,promotionoflocalNorthCarolinaproductsisamainsuccess.
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Bellingham, WA - Bellingham Farmers Market “TheBellinghamFarmersMarketsupportslocalsustainableagriculturebyconnectingthepublicwithlocalfarmers,artisans,andotherproducersinaneconomicallyviablemarketplace.”
-BFMMissionStatement
Local Context
TheCityofBellinghamislocatedjustmilesfromtheCanadianborderonthewesternedgeofWashington.Withanestimated2014populationof83,365,Bellinghamisgrowingmodestlyeachyear.Approximately15%ofthepopulationin2010wasundertheageof18andmorethan12%wereover65.17DemographicallythisissimilartoEugene,withtheexceptionthatEugene’spopulationisnearlydoublethatofBellingham.
Bellinghamhasastudentpopulationofaround15,000duetothepresenceofWesternWashingtonUniversity.18TheuniversityislocatedashortdistancefromthemarketindowntownBellingham.Thelargestemployersinthecityareinthehealthcareandeducationfields,whichisagainsimilartoEugene.19
Climatologically,BellinghamissimilartoEugene.Bellinghamreceivesanaverageofmorethan36inchesofraineachyear,slightlylessthanEugene’saverageofover46inches.Bellinghamisalsoslightlycoolerwithaveragesummerhighsinthelow70’sandwinterhighsinthemid-40’s.20
Market Characteristics
TheBellinghamFarmersMarketbeganin1992.ThemarketoperatesonSaturdaysfrom10amuntil3pm,AprilthroughChristmas.DepotMarketSquarehoststheweeklyBellinghamFarmersMarket.Thefacilitiesareacombinationofa5,200squarefootglassandmetalstructureanda15,000squarefootcourtyard.DepotMarketSquarepayshomagetolocalhistory,havingbeenbuiltonthesiteoftheformertrainstationandusingarchitecturalmotifsthatrecalltheformerbuilding.21
Thefacilitywasconstructedfromsteelbeamsfromawell-knownlocalhighwaybridgethatwasremovedaroundthesametimethemarketwasdeveloped,furtherhighlightingthehistoryofBellingham.Thebuildingfeaturesmostlyretractablewallstocreateanopen-airenvironmentwhendesired.Thecourtyardisringedbythebuildingandsheltersthatprovideapermanentcoveringforsomemarketvendors.Othervendorscansetuptemporarytentsinthecenterofthecourtyard.
17U.S.CensusBureau.(2015,December2).State&countyQuickfacts:Bellingham(city),Washington.RetrievedFebruary1,2016fromhttp://http://quickfacts.census.gov/qfd/states/53/5305280.html.18WesternWashingtonUniversity.About.RetrievedFebruary1,2016fromhttp://www.wwu.edu/about/.19BellinghamBusinessNews.(2014,October14).50LargestEmployersinBellingham,WA.RetrievedFebruary1,2016fromhttp://bellinghambusinessnews.com/2014/10/14/50-largest-employers-bellingham-wa/.20U.S.ClimateData.ClimateBellingham–Washington.RetrievedFebruary1,2016fromhttp://www.usclimatedata.com/climate/bellingham/washington/united-states/uswa0028.21CityofBellinghamParksandRecreation.(2013).DepotMarketSquare[Brochure].Bellingham,WA:Author.
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Asmallprepkitchenislocatedonsite.DuringtimeswhentheBellinghamFarmersMarketisnotinoperation,thecourtyardservesaspermit-onlyparkingforlocalemployees.Thewholefacilitycanberentedoutonanhourlyordailybasis.22
Themarketstructurewasbuiltin2006aspartofapublic-privatepartnershipbetweentheCityofBellinghamandtheDepotMarketCommittee.ThecitycommittedfundsfrommultiplesourcesandtheremainderofthecapitalcostswereraisedbytheDepotMarketCommittee.Preliminaryestimatesfortheprojectwerearound$2.5million.23
FigureB-3:TheDepotStationofDepotStationSquare
Source:BellinghamFarmersMarket
Thefacilitiesfeaturepublicaccessandrestroomsonlyduringhoursthatpubliceventsareoccurring.SomeparkingexistsintheareaforFarmersMarketcustomers,thoughextensiveparkingisnotprovided.Spatially,DepotMarketSquareislocatedintheheartofdowntownBellingham,ashortdistancefromWesternWashingtonUniversityandmanylocalbusinesses.Thisaidsinuseofthepropertyviaparkingandenticinglocalpublicandprivateeventstousethespaceduringnon-FarmersMarketperiods.
22CityofBellingham.DepotMarketSquare.RetrievedFebruary3,2016fromhttp://www.cob.org/services/recreation/parks-trails/Pages/depot-market-square.aspx
23DepotMarketSquareCommittee.(2004).WalktheWalktoDepotMarketSquare[Brochure].Bellingham,WA:Author.
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Financial and Governance Structure
Vendorsareabletorent10’x10’stallsand5’x10’half-stalls.Seniorityforspaceandlocationisdecidedbyapointsystem.Feesforthemarketcurrentlyincludea$120yearlymembership,adailyfeeof$30orafixedpercentageofsales,whicheverisgreater,andanelectricalfeeifapplicable.Thepercentageofsalesvariesbasedonthetypesofproductsbeingsold:farmersandcrafterspay6.5%,preparedfood/concessionairespay7.5%,serviceprovidersarecharged9.5%,andcontractvendorspay10.5%.24Buskingisnotonlyallowed,butconsideredessentialtothecultureandfeelofthemarket.Entertainersmustpaya$10yearlyregistrationfeeandsignupfordesignatedlocationsandtimeslots.25Variousregulationsonthecontentofperformancesensurethemarketenvironmentremainsfamilyfriendly.Alocalchefpreparesexampledishesusinglocalproductsavailableatthemarketapproximatelyonceamonth.
Themarketisgovernedbyaboardofdirectorscomposedofvendors.Therearetwofulltimestaffmembers:asitemanagerandamarketdirector.TheCityofBellinghamhasadesignatedliaisonforthemarket.FacilitiesareoperatedbytheCityofBellinghamParksandRecreationDepartment.
Products and Services
Vendorsincludebothfarmersandcraftspeople.Themarketallowsavarietyofproductstobesoldincludingthosedirectlyproducedfarmersandcraftspeople,contractproducevendors,preparedfood,andservices.Themarketisrestrictedtolocalfoods,whicharedefinedascomingfromSkagitandWhatcomCounties.Exceptionsaremadeonacase-by-casebasisusingdefinedrulesthatgreatlyfavorproductsfromthetwocounties.
24BellinghamFarmer’sMarket.HowtoVend.RetrievedFebruary1,2016fromhttp://www.bellinghamfarmers.org/How-to-Vend/5.aspx.
25BellinghamFarmer’sMarket.Busking.RetrievedFebruary1,2016fromhttp://www.bellinghamfarmers.org/General-Content/Busking/11.aspx
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Boulder, CO - Boulder County Farmers’ Market “Tosupport,promote,andexpandlocalagriculture,makingfreshproducts
accessibletothecommunityandstrengtheningrelationshipsbetweenlocalfoodproducersandfoodconsumers.”
-BCFMMissionStatement
Local Context
TheCityofBoulder,Coloradoislocatedabout25milesnorthwestofDenver—Colorado’sstatecapital.Boulderhasapopulationof97,386andametropolitanpopulationof294,567(2010).AlthoughEugene,OregonhasahigherpopulationthanBoulder,theirmetroareasaresimilarinpopulation.Theyalsohavesimilaragedistributionsinwhichapproximately40%areunder24,approximately50%are25-64yearsold,andapproximately10%are65yearsofageorolder(2010).Boulderhasamedianhouseholdincomeof$56,312,whichis$14,145morethanEugene(2009-2013).26
BoulderislocatedinthefoothillsoftheRockyMountains.Boulderreceives26.5fewerinchesofrainthanEugeneandapproximately90moredaysofsun.Further,BoulderhasaslightlywarmeraveragesummerhighthanEugeneat88degreesFahrenheitandacoolerwinterinthelow20s.27
Market Characteristics
TheBoulderCountyFarmers’Market(BCFM),originallyheldatthecourthousebyagroupoflocalfarmers,firstopenedin1987.TheCourthouseislocatedintheheartofthePearlStreetpedestrianmall–aregionalattraction.TodaytheprogramfeaturestwoSaturdaymarkets,aWednesdaymarket,andaspecialtwo-daywintermarket.Marketsareheldatdifferentlocations.TheirWednesdaymarketandoneoftheirSaturdaymarketsarewithindowntownBoulderlimits—aboutacityblockinlength.Easeofaccesstothemarketsisexceptional—thereisampleparking,bikepathsnearby,andtheirdowntownmarketisonly0.2milesfromtheTransitStation.
TheBouldermarket,on13thStreet,isanoutsideeventwheretentsaresetupinrowsalongthestreet.TheLongmontmarket,ontheotherhand,isindoorsattheBoulderCountyFairgrounds.TheBoulderSaturdaymarketisopenfrom8amto2pmfromApriltoMid-November;theBoulderWednesdaymarketisopenfrom4pmto8pmfromMaytoOctober;theLongmontSaturdaymarketisopenfrom8am-1pmfromApriltoMid-November;andthewintermarketisopenfrom9amto3pmfortwodaysinDecember.Foreachoftheseevents,anembeddedzero-wasteinitiativeexists(peracounty-wideresolutionmadein2005).Further,byholdingtruetothemarket’soriginalvision,thelocalcommunityremainshighlysupportiveofthemarketandthecommunity’slocalfoodmovementasawhole.
Customersrepresentawidedemographicspectrum.Onatypicalmarketday,die-hardlocalfoodiesvisitearlyinthemorning—bymid-morningtherearemorefamiliesatthemarketfollowedbystudentsduringtheafternoon.Outreachtolow-26U.S.CensusBureau.(2015).Boulder(city),ColoradoandEugene(city),Oregon.27Sperling'sBestPlaces.(2016).Boulder,ColoradoClimateandEugene,OregonClimate.
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incomeindividualsandhouseholdsadditionallytakesplacetohelpeducateandbreakthestigmathatlocalfoodismoreexpensive.
FigureB-4:OutdoorvendingatBoulderCountyFarmersMarket
Source:BoulderCountyFarmersMarket
FigureB-5:IndoorvendingatLongmontBoulderCountyFarmersMarket
Source:BoulderCountyFarmersMarket
Financial and Governance Structure
BoulderCountyhasabustlingpublicmarketprogramrunbya501(C)3nonprofitcorporation.Theorganizationisgovernedbyaboardofnine,volunteerdirectorsservingthree-yearterms.Themarketemploysanexecutivedirector,amarketsmanager,twomarketcoordinators,afinancemanager,amarketingmanager,andapositionincommunityoutreach.Incomeisgeneratedfromvendorfees(includingbothapplicationfeesforcertainindividuals/organizationsandspacefees),which
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coversthecostofmarketoperations.Themarketdoesnothaveotherfinancialsourcessuchasgrantsorsubsidies.
Products and Services
TheBCFMhasover100localvendorsofferingavarietyoffreshfoodsandproduce,homemadegoods(suchassoaps,pot-pourri,wreaths,etc.),avarietyofcrafts,beverages,andpreparedfoods.Bothconventionallygrownandorganicfoodsareofferedbythefarmers.Themarketalsoshowcaseseventsincludinglivemusicandentertainment,chefdemonstrations,freekid’sactivities,andartshows.Inthefuture,BCFMhopestohostconferencesandfoodevents.
ThemarketdoesacceptWICandSNAPaswellastheUniversityofColorado’sstudentcard.ThosereceivingSNAPareabletodoubletheirassistancebybuyingcertainproducts(fruitandvegetables)atthemarketduetoalocally-supportedmatchingprogramcalled“HarvestBucks”.ThisserviceisofferedthroughapartnershipbetweenBoulderCountyPublicHealth,BoulderCountyParksandOpenSpaceDepartment,CityofBoulderHumanServicesDepartment,BoulderCountyHousingandHumanServicesDepartment,andtheBoulderCountyFarmers’Markets.Inaddition,ATM’sareconvenientlylocatedaroundthemarket.
Success and Challenges
BoulderCountyFarmers’Markethasbeensosuccessfulthattheyareabletorunfourareamarkets.AsthelocalfoodmovementisbecomingquitemainstreaminBoulder,thereareincreasinglymorenaturalfoodstoresandco-ops,farmstands,CSAs,andrestaurants,whichemphasizelocalagriculture.AssuchBCFMsareincreasinglyreceivingmorecompetition.Otherschallengesincludestaffturnoverandweatherandclimateconditionswhichoftenlowersaccesstofresh,localfood.
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Burlington, VT - Burlington Farmers’ Market “BringingthebestofVermonttotheheartoftheQueencity.TheBurlington
Farmers’MarketshallexistforthepurposeofprovidingadirectmarketingoutletforVermontfarmersandfoodandcraftartisans;thatbeingaprimarilyagriculturalmarketwithemphasisonconsumershavinganauthenticexperiencemeetingthe
producersfacetoface.”
-BurlingtonFarmer’sMarketMissionStatement
Local Context
Burlington(VT)issimilartoEugeneinpopulation:2012ACScensusestimatedametropopulationof213,701.Theareahasasimilarsummergrowingseason,ofover100daysinlengthandisalsoacollegetown,hostingtwocollegesandonepublicuniversity. 28
MuchlikeEugene,Burlingtonhasahistoryofprogressivepoliticsanddevelopment,includingtheirpublicmarket,whichwasfoundedin1980outofapublicdesireforlocalfood.Originallythemarketofferedchildcareandfreeparkingtodrawacustomerbase.BurlingtonwasalsothefirstcityintheUnitedStatestorunon100%renewableenergy.
TheclimateinBurlingtoniscoolerthanthatinEugene,withanaveragetemperaturehighinJulyof81degreesandalowof60degreesandinJanuaryanaveragehighof27degreesandlowof10degrees.PrecipitationlevelsinBurlingtonarehigherthaninEugenewithatotalaverageofabout120inches,80ofthosebeingsnow.
Market Characteristics
ThemarketisanotapermanentadditiontothedowntownofBurlingtonandthereforedoesnothaveaspecificallydesignedstructure,howeveritresemblesthecurrentEugenefarmer’sandholidaymarketswithmanyfolduptablesandpeakedtentsvisible.InthepasteightyearstheBurlingtonmarkethasgrownfrom35vendorstoover100vendorsandreceivesover10,000visitorspermarketday.Thesuccessofthismarketcouldwarrantapermanentlocation,however,fundingforaconstructionproject,publicsupport,andsupportfromthelocalgovernmentisunavailableatthistime.29
Amarketanalysisoftheclientelethreeyearsagofoundthatlessthanfivepercentcamefrommorethan10milesaway(excepttourists),andmostcustomerswalktothemarketbecausethereislimitedparkinganditisencouragedbythemarketleadership.Moreover,themarketreceivesmoretouristbusinessfromvisitorstoBurlingtoninthesummerthanitdoesinthewinter.
Financial and Governance Structure
TheBurlingtonFarmer’sMarketisanonprofitfarmer’smarketstartedbyvolunteers.Themarketchargesannualmembershipfeesandchargesperspace,28NationalGardeningAssociation,http://www.garden.org/regional/report/description/full/1429http://www.burlingtonfarmersmarket.org/
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howeverthesefeeschangeeveryyear.Seniorityisaccruedovertimetodeterminewhoreceiveswhichspacesandwhetherabusinessisadailymarketvendororanon-callvendor.Asanonprofit,theBurlingtonmarketreviewsitsfeestructureeverythreeyearswithabudgetad-hoccommitteethatincludesthePresident,Treasurer,andMarketManager.Ifthecommitteedeterminesanewfeestructure,itisbroughtbeforethemarketbodyforavote.Increasedfeeshaveneverbeenturneddown.Themarketrunsatcapacityduringeveryseason,andcompetitionforopenspotscanreach75applicantsforonlyfiveopenspaces.Duetoitspopularity,themarketcanactasasortofincubatorforlocalbusinesses,withmanyopeningtheirownpermanentlocationsaftersuccessatthemarket.
Themarketisgovernedbyanelectedboardofeightmembers,includingapresident,vicepresident,secretary,treasurer,onerepresentativefromeachofthecraft,agriculturalandpreparedfoodsectors,andonememberfromthegeneralcommunity.Thiselectedgroupmaintainsthedailyoperationsofthefarmer’smarketincludingmaintenance,marketing,andlong-termvision.Thesedutiesareperformedinconjunctionwithoneyear-roundpart-timemarketmanageranAssistantMarketManagerandonemarket-dayassistant.
Themarketmanagerispaid$31,000peryear($4,000ofwhichisastipendforhealthcare)forthedutiesthattheyperformforthemarket,including:marketing,organizationofevents,maintenanceofrevenueandexpenditure,mediaoutreach,hiringofotherpersonnel,etc.TheAssistantMarketManagerworksonlyonmarketdaysandattendssteeringcommitteemeetingsoncepermonth.Themarket-dayassistantworkstheinformationboothonmarketdaysforfivetosixhours.
Popularityandperceptionofthemarketasacommunalspacecontinuallygrows,causingtherevenuetoreachover$1.2millionannually.However,duetonotowningitsownsite,themarketrentsspaceinaparklocatednearabusyintersectioninthemiddleofdowntownBurlingtonfor$36,000annually,whichispaidinthreesegmentsof$12,000spacedthroughouttheyear.Themarketadditionallypaysthecity$1,500extraperseasonfortrashcollection.Rentedspaceforthemarketincludesapermanent,largeindoorauditoriumandparkingspacesforvendorstounloadtheirgoods.Thesummermarketishalfinsideandhalfoutside,whilethewintermarketisentirelyintheauditorium,whichisfilledwithfoldingtablesandstalls,akintoEugene’sholidaymarket.
Eachyearthemarketoperateswithabudgetofaround$135,000.Thismoneyisgatheredsolelyfroma$75vendormembershipfeeandaseasonrentalfee(26weeksinsummer)basedonboothsize.A5’x10’boothcost$400,a10’x10’boothcosts$800,anda25’x10’boothcosts$2,000.Outofthe100vendors,themajorityuse10’x10’booths.Themarketalsomaintainsamoneymarketaccountinwhich$10,000iskeptintheeventofemergenciesthemarketmayface.
Products and Services
Themarketoffersthreemaintypesofproducts:agriculturalproduce,crafts,andpreparedfoods.Themarket’scharterregisteredwiththecityregulatestheproportionofvendorsto55percentagricultural,notmorethan30percentcraftsandnotmorethan30percentpreparedfoods.Noconsignmentisallowedatthemarket.
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AllvendorsandproductsmustbeVermontownedandVermontgrown,asdescribedbythemarketby-laws,whichallowforvendorstotravelfromalloverthestatetothemarket,withsometravelingovertwohoursinthemorningstoselltheirgoods.Sellingofgoodsislimitedtoonlywhatavendorproduces,noconsignmentorsaleofanothervendor’sgoodsisallowed,andinordertomaintaintheproducer/consumerrelationship,ownersofbusinessesorvendorsarerequiredtoattend50%ofeachseasonsmarketdays.
Successes, Challenges, Desires
Thesuccessesofthismarketareduetothe“buylocal”cultureofVermontthatmakesthemarketingandconsumereducationeasier,andthesupportfromtheCity.Itcouldalsobeconsideredthatsuccesshasbeenbasedintheiroperationalmodelofarepresentativegoverningbodyandverylittleoverheadrequiredtokeepthemarketrunning.However,asthemarkethasincreasedinsizeandsuccesstheyhavefounditmoredifficulttomaintainvendorinvolvementingovernanceandworktokeepthemarketsuccessful.Vendorshaveshownlittleinterestintheoverallsuccessofthemarket,andhavedemonstratedthedesiretosolelypayspace/rentalfeesandexpectmarkettohandleeverythingelse.
FigureB-6:IndoorvendingatBurlingtonFarmersMarket
Source:BurlingtonFarmersmarket
Withanincreaseinthenumberofvendors,themarketfacesnewchallengeslikevendorproductreviews.Inthesecases,onevendorconsidersanothervendor’sproducttobeviolatingthemarketby-laws,thiscouldbeanythingfromindustriallyproducedproductsorproductsnotproducedbythevendor.TheBurlingtonmarketaddressestheseconcernswithsteeringcommitteeandmarketmanagerreviewstomakesureby-lawsarefollowed.Avendormustsubmita“Productchallengeform”thatincludesa$100feetodeterminewhethersomeoneelse’sproductisactually
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handmadebyvendors.Ifaviolationisdetermined,themarketwillbantheviolatorsfromsellingatthemarketinthefuture.ThemarkethasneverhadtoaddressthatwhethereverythingavendormakescomesfromVermont,mostvendorsalreadydothat.
FigureB-7:OutdoorvendingatBurlingtonFarmersMarket
Source:BurlingtonFarmersMarket
Negativesarebasedinpublicperceptionthatthefarmer’smarketisturningintoastreetfairthatwantstocapitalizeontouristdollarsbysellingmorepreparedfoodsinsteadofproduceproducts.However,thisseemsunlikelyastheproportionoftouristvisitorstolocalbusinessisminisculeascitedonthemarket’smainwebsite.
IfBurlingtonweretobuildapermanentfacility,thetwobiggestneedsordesireswouldbeforstoragespaceforvendors(includingdrystorageandrefrigeration),andofficespaceforthemarketstaffandforboardmeetings(themarketiscurrentlyrunoutofthemarketmanager’sapartmentandaparkinggarage).
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Madison, WI - City of Madison Farmer’s Market Local Context
Madison,thestatecapital,isthesecondlargestcityinWisconsinandlargestinDaneCounty.Madison’spopulationisestimatedat245,691,whichisslightlylargerthanEugene.MadisondifferssignificantlyfromEugeneinclimate.Madisonhasahumidcontinentalclimatewithvariableweatherpatternsandlargeseasonaltemperaturefluctuations.Summertemperaturesaverageinthehigh70sto80swhilewintertemperaturesaveragearound10degrees.
Market Characteristics
TheMadisonPublicMarketispartofalargerPublicMarketDistrictplanforthecity.30Althoughthemarkethasnotbeenconstructed,thecity hasprocuredfunding,securedpublicsupport,andcompletedaneconomicfeasibilitystudy.ThevisionfortheMadisonPublicMarketistocreatetheregionalfoodsystemepicenterfortheregionandtheprojectaimistocreateamulti-usedestinationfeaturingamixofretail,wholesale,andprocessingoflocally-madeproducts,aswellashand-craftedlocalartandothergoods.Thelong-rangevisionisthataninitialinvestmentinthepublicmarketwillcreateacatalystforalargermarketdistrictandspurprivatedevelopment.
TheMarketHallwillconsistofindoorvendingonthefirstfloor,whichisorganizedintothreesections–theWestHall,theEastHallandtheMarketArcade.Thisfacilitywillhavedesignatedvendorareas(temporary/permanent),incorporateflexible,multi-useindoorpublicspace,andemphasizetheMarketArcadeasanoutdoorrecreationalplaza.31
TheOutdoorMarketAreawillserveasaplazaforoutdoorvendingandanattractivepublicspaceforotherusessuchasseatingandspecialevents.Itshouldbeutilizedasamultipurpose,flexiblespacethatphysicallyandpsychologicallyconnectstheMarkettothesurroundingarea/community.Itwillhavestores,restaurants,production,andwholesalealongtheperimeterofmarketbuilding.Whenamarketisnotinoperation,theplazawillbeanactivepublicspace.
Additionalsupportinfrastructurewillincludeloadingdocksanddeliveryspace,trashandrecyclingfacilities,storagefacilities,meetingspacesandoffices,andaflexibleutilitygridandconnections.
30CityofMadison,WI.(2015,July).PublicMarketBusinessPlan-Madison,WI.RetrievedJanuary20,2016,fromhttps://dbl.memberclicks.net/assets/PDFs/madisonpublicmarketfinalreportfinalbusinessplan.pdf31YellowWoodAssociates,Inc.(2004,July14).PreliminaryFeasibilityStudyforaPublicMarketforMadison,Wisconsin.RetrievedJanuary20,2016,fromhttps://www.cityofmadison.com/dpced/economicdevelopment/documents/2004preliminaryfeasibilitystudy.pdf
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Financial and Governance Structure
InOctober2013theCityretainedProjectforPublicSpaces(PPS)tocompleteathree-phasedprocesstocreateabusinessplanforanewpublicmarket.Inphaseone,theteamworkedtodeterminethefeasibilityofandconceptforapermanentpublicmarket.Phasetwoproducedareviewofthreepotentialneighborhood-basedpublicmarketsites.Inphasethree,theteamcombinedextensiveresearchintoafinalbusinessplan.Themarketisscheduletoopeninthenearfuture.
FigureB-8:Logooftheforthcomingpublicmarket
Source:CityofMadisonFarmersMarket
Toensurethemarketisestablishedandoperatedinaccordancewiththecommunity’sexpectations,thecityofMadisonintendstodraftandsignanoperatingagreementwithanot-for-profitcorporation.Theoperatingagreementshoulddefinetheongoingroleandresponsibilitiesofthecityinmanagementofthepublicmarket.ThiswouldincludeservingasamemberoftheBoardofDirectors.Additionally,despiteplansforthepublicmarkettobeoperationallyself-sustaining,thecityexpectstoretainsomeresponsibilityforfinancingmajorcapitalimprovementsinthefuture.Lastly,Madison’sPublicMarketBusinessPlanemphasizedthefollowingstaffconfiguration:(1)MarketManager/ExecutiveDirector,(2)Marketing/EventsCoordinator,(3)AdministrativeAssistant,and(4)MaintenanceManager.
Products and Services
InMadison,themixofmerchandiserecommendedinthebusinessplanislargelyfood-based,runningthegamutfromfarmersandwholesalerstovalue-addedproducersandacafé/restaurant.
TheWestHallwillconsistofpermanentstallsthataredesignedforfreshandpreparedfoodsellerswithfullutilityaccess.Thesestallswillsellfreshfoods,preparedfoods,andlimitedartsandcrafts.
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TheEastHallwillbeusedprimarilyforindoor,temporarystallsandwillfeatureavarietyofproducts.Theseinclude:localfarmproducts,preparedfoods,artsandcrafts,antiqueandvintageitems,books,andmusic(CDs,vinyl,cassettes).
TheEastHallandthird-floorroofwillbedesignedfortemporarymarketsthatcanservenicheproducersandinterests.Thesemarketscanoperateonceayearoronaregularbasisandcouldbeutilizedforflowermarkets,nightmarkets,craft/fleamarkets,antique/collectiblemarkets,holidaymarkets,culturalfestivals/markets,usedbooks,prints,maps,papermarkets,andauctions.
Preliminary Financial Analysis
PPSdevelopedafinancialproformaaspartofthefeasibilityassessment.TheproformafortheMadisonPublicMarketindicatesthepotentialforthemarkettobeoperationallysustainable,withoperatingrevenuesequaltoorlessthanoperatingcosts,byyearfourofoperations.
FigureB-9:Siteplanoftheforthcomingpublicmarket
Source:CityofMadisonFarmersMarket
VendorrentsareprojectedtocoverthecostsofoperatingtheMarketonaday-to-daybasis.However,anyprogramming,educationandoutreachwillmostlikelybefundedfromoutsidesources.
Thefinancialanalysisforecastssalesoffreshfoodinthe$12-$14millionrange(preparedfoodsvendorsmaymakethetotalsalesevenhigher).Rentfrommarkettenantsisprojectedtobringin$600,000,aroundfivepercentoftotalfreshfoodsales.WiththeadditionalchargeofCommonAreaMaintenance(CAM)of$7persquarefoot,combinedfeesarestilllessthansevenpercentoftotalsales.
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ThePPSstudyestimatedeconomicimpactsofthemarketwouldreachalmost$220millionovera10-yearperiod.Thesenumbersincludeonlyfreshfoodsales,soeconomicoutputcouldactuallybesignificantlyhigher.Basedonfinalconceptualestimatesfora64,850sq.ft.publicmarketstructure,thePublicMarketwouldincurcapitalcostsof$13.5millionandstart-upcostsof$0.7million,totalingto$14.2million.
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Olympia, WA – Olympia Farmers Market “Topromoteandencouragethedevelopmentoflocal,smallscaleagricultureandensureadynamicmarketbalanceforsmall,localgrowersandotherstomakeavailabletheirproductstoresidentsofthiscommunity.”
-OlympiaFarmersMarketMissionStatement
Local Context
ArevivalofOlympia’sturn-of-the-centuryfarmersmarket,thispublicmarkethasbeeninbusinesssincethe1970’s.Inthelate1990’s,theCityofOlympiapubliclyfundedtheconstructionofthecurrentsiteoftheOlympiaFarmersMarket(OFM).32Thebuildingitselfisalargeopenstructurewithwidecentralaisles(12feet)betweenvendorstalls,andplentyofoutdoorspaceavailablefordetachedstalls.
TheCityofOlympiaissimilartoEugene:TheclimateandrainfallaligncloselytothatofEugene33andthepopulationdemographicsareanalogous.Bothcitiesarecollegetowns,buttheEugenemetroareaisapproximately100,000personslargerwitharound350,00034comparedtoOlympia’s250,00035.
Market Characteristics
LocatedjustnorthofdowntownOlympia,thesiteofOFMcoversapproximatelyfiveacres,includingparking.Thevendingspaceiscomprisedofa“barn”,acoveredbreezewaywherethemajorityofvendorssetup.Thevendingsiteis14,000squarefeetandhasspacefor80vendors,withrefrigerationandsinksprovidedtocertainbooths.Aplazathatincludesspacefor250people,aswellasacoveredstage,andhasdetachedrestaurants.Thesitealsohasacommercialtestkitchenandasmallgardenthatshowcaseslocalflora.Surroundingthesiteareapproximately350parkingspaces,includingoverflowlots,awatertreatmentcenter,aboatlaunchtothebay,anda“marketdistrict”(namedforOFM)whichincludesboutiqueshopsandrestaurants.
Otheramenitiesatthemarketfacilityincludeofficesformarketmanagement,driveupparkingforvendors,permanentrestrooms,andheatinglampsforthemainstructure.Thebarnitselfisdesignedtobeexpandablewiththepotentialadditionofasecondstory,ifvendorparticipationincreasesandcapitalfundingislocated.
Themarketisopenyear-round,butitsmostproductiveseasonisAprilthroughOctober,whenthemarketisopenThursdaythroughSunday,10amto3pm.
32http://www.thurstontalk.com/2015/03/31/olympia-farmers-market-history/33ClimatedatageneratedfromNOAAdatabyathird-partyservice:https://outflux.net/weather/noaa34Censusdataorganizedbyathird-party:http://www.opendatanetwork.com/region/310M200US21660/Eugene_Metro_Area_%28OR%29/population/population/201335Censusdataorganizedbyathird-party:http://www.opendatanetwork.com/region/310M200US36500/Olympia_Metro_Area_%28WA%29/population/population/2013
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JanuarythroughMarch,themarketisopenonlyonSaturdays.OlympiaFarmersMarketalsohasspecialholidayhoursduringtheholidayseasonandhostseventssimilartotheHolidayMarketinEugene.
FigureB-10:TheOlympiaFarmersMarket
Source:MortonSaffordJamesIIIAIAArchitectsInc.
Financial and Governance Structure OFMchargesvendorsadailyfee,inadditiontotheyearlymembershipfee.Thedailyfeevariesbasedonthetypeofvendor.Vendorsarechargedapercentageoftotalsales(farmersareassessed7%,fruitresellers10%,processors8%,restaurants9%,foodcarts7%,andpremiumstalls9%),orasmallminimumfee,whicheverisgreater.Thereisalsoa$100applicationfeetoapplyformembership.
Themarketbringsinapproximatelyfivemilliondollarsinyearlyrevenuefromover250,000yearlyvisitors.Basedon2010data,approximatelythree-fifthsoftotalsalesinvolveproduce,withcrafts,processedgoods,andrestaurantsalesmakinguptherest.
OFMencouragesvendorstobeopenoutsideoftheweekendbyloweringtenantfeesontheotherdaysoftheweek.VendorsalsoneedtoparticipateontwoThursdaysandFridayspermonthtokeeptheirvendingspace.Intheeventavendorisunabletomakeit,OFMhasagroupofstandbyvendorstofillin.Theyalsoencouragesurroundingvendorstoexpandwhenspaceisavailable,keepingthemarketfeelingfullandvibrant.
Forlongtermprojects,theOlympiaFarmersMarketraisesmoneythroughitsnonprofitarm,FriendsofOlympiaFarmersMarket(FOFM).FOFMsolicitsdonations,organizeswithcommunitypartners,andhostsmembers-onlycharity
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene September2016 Page|85
eventstoraisemoneyOFMcapitalimprovement.OFMalsosaves.5%ofitsrevenueforincidentalprojectsandimprovements.
FigureB-11:Ahighceilingprovidesroomforasecondstoryexpansion
Source:CommunityPlanningWorkshop,2016
TheOlympiaFarmersMarketreceivessomepublicsubsidy.In1995,theconstructionofthesitewaspaidforbypubliccapital,butthemarketisobligatedtopaytheCityofOlympiabackfortheapproximately$850,000itboughtinmunicipalbonds36,backedwithcreditfromthecity’sgeneralfund,withafurther~$120,000fromthePortofOlympia,withmodestinterest.Thiswouldamounttoanapproximately$1,500,000projecttoday.Furthermore,themarketfacilityisonlandleasedfromthePortofOlympiaatbelowmarketrate,andisseenasaneconomicdevelopmentinvestmentindowntownOlympia,accordingtointerviewswithofficialsrelatedtothemarket.
Governance and Management
OFMisledbyavendor-electedboardwhoorganizesubcommitteeswithintoinfluencemarketpolicies.Inrecentyearstheboardhasalsobroughtinmembersofthecommunitytoserveinanadvisoryrole.IninterviewsthatCPWconductedwithmarketstaff,members,andrepresentatives,stronggovernmentcoupledwithvendorbuy-in,hasbeendescribedasakeytothesustainabilityofthemarket.Transparencyisalsoanimportantvaluetothemarket,withspecificrulesandbylawsbeingeasilyaccessibletoallvendors.
36http://www.thurstontalk.com/2015/03/31/olympia-farmers-market-history/
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FigureB-12:Onsitemarketoffices
Source:CommunityPlanningWorkshop,2016
OlympiaFarmersMarkethasfourfulltimestaff:Anoperationmanager,ageneralmanger,anadministrator,andamaintenanceperson.OFMalsocontractswithaprivatefirmforsecurity,particularlyfortrespassing,inadditiontosomeservicesitcontractsfromthecity.
Products and Services
TheparticipantsoftheOFMcomefromthesurroundingcounties.Therearemanythatspecializeinlocalproduce,butsomesellplantsforpatronstostarttheirowngardens.Fruitisresoldatthemarketfromoutsidethetri-countyarea.Therearealsoavarietyoflocally-raisedandharvestedmeatsandseafoodespeciallyfish,clams,andoysters.Preparedfoodincludesbakeries,deserts,andseveralrestaurants.Therearealsoseveralvendorsthatcraftartisanalgoods,similartothoseoftheEugeneSaturdayMarket.Acoveredstagewithalivebandroundsouttheexperience.
FigureB-13:Highceilingsandwidewalkwaysprovideanopen,airyfeel
Source:CommunityPlanningWorkshop,2016
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Successes and Challenges
OFMisaccessibletomanydifferentcustomers.ItiswithinbikingdistanceofdowntownOlympia.Ashuttlealsooperatesbetweenthemarketandthestatecapital(theWashingtonStateLegislaturesharesparkingwiththemarket)thatpatronscanrideupanddownthedowntowncorridor.Tofacilitatetransactions,themarketacceptsmanydifferentstateandfederalsubsidies,includingWIC,SNAP,andSeniorChecks,hasanonsiteATM,andmanyvendorsacceptcredit/debit.ThesiteisADAaccessible,andthecirculationspaceisextrawidetoaccommodatehighvolumesoffoottraffic,aswellastoprovideassisted-mobilityaccess.
CPWconductedinterviewswithofficialsconnectedwiththemarket,aswellasbriefquestionandanswersessionswithvendors.Indoingso,intervieweesexpressedsatisfactionwithOFM’stransparentgovernancestructure,withthemarketsiteanddesign,especiallylivemusicandcoveredspace.Intervieweesalsoindicatedthattheylikethebusinessbenefitsassociatedwithhavingavarietyofproductsbecausethatattractsadiversecrowdofconsumers.Themarketitselfhasbeenasuccessfulexampleofpublic-privatecollaboration,inthatit’sonlandownedbythePortofOlympia,builtandpartiallymaintainedbytheCityofOlympia,andisprivatelymanagedbyOlympiaFarmersMarket.Thisprojectbroughttogetheradiversegroupofpublicandprivatestakeholderstocreateanimportantcommunityasset.
FigureB-14:Aplazafeaturingcoveredseating,astage,andmultipledetachedrestaurants
Source:CommunityPlanningWorkshop,2016
Intervieweesexpressedfrustrationsaboutdealingwiththelimitationsofthesite,includinglimitedstorage,lackofvendorparking,andsecurityconcernsaroundunhousedpersonsoccupyingthesiteoutsideofmarkethours
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APPENDIX C: FACILITY AMENITIES AND CHARACTERISTICS
Earlyintheprocessofdeterminingfinancialfeasibilityofapublicmarket,CPWandtheResourceGroupengagedinadiscussionofpossibleamenitiesthatapermanentlocationcouldandshouldprovide.ThisAppendixprovidesthetableofamenitiesthatwerediscussedcategorizedfirstbytheimportanceoftheamenity(required,recommended,orsuggested)andsecondbywhatpurposetheamenitywouldbestserve(vendor,patron,generalsiteaesthetic).Thistableispreservedhereasautilityforthepurposesofuseinthenextstepsofthemarketprocess.
TableC-1.PotentialPublicMarketAmenitiesandCharacteristicsPotentialPublicMarketAmenitiesandCharacteristics
FacilityAmenityorCharacteristic Importance Purpose
Permanentbathrooms Required Vendor,PatronWastedisposal(dumpster/recycling/compost) Required Vendor
Vendorgreasedisposal/reclamation Required Vendor,Patron,Aesthetics
Picnictables/benches/coveredseating Required Vendor,Patron,Aesthetics
Drinkingfountains Required Vendor,PatronEBT/Credit/DebitprocessingEquipment Required VendorAllocatedspaceforfoodcarts Required Vendor,PatronOutdoorvendingspace Required Vendor,PatronFlexiblespace(Privatevendorspace,eventspace,consignment) Required Vendor,Patron
Differingboothsizeconfigurations Required Vendor,PatronBikeracks/bikeCorral Required PatronPublicgarbage/wastestations Required VendorConcrete/affixedanchorsfortemporarybooths/shelters Required Vendor
Handwashingstations Required RequiredPrivate,securedvendorspace,andorlockers Required Vendor,PatronGreenery Required Vendor,PatronWi-Fihotspot Required Vendor,PatronPerformancestage(s) Recommended Vendor,PatronAllocatedstructureforfoodcarts Recommended AestheticsStorage(freezing) Recommended VendorAnchorbusinessspace/coffeeshop/bakery/restaurant/etc. Recommended Vendor,Patron,
AestheticsTruckloadingzone/bay,truckaccesstovendingspace Recommended Vendor
Security(Officers,onsiteoffice) Recommended VendorCommercial/demoKitchen Recommended PatronPermanentstallsw/refrigeration,displaycases,otherfurniture Recommended Vendor
Storage(cold) Recommended Vendor,PatronSecurebikecage/othersecurebikestorage Recommended Vendor,PatronOffices/mixedusespace Recommended VendorAllocatedutilitiesforfoodcarts Recommended Vendor
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PotentialPublicMarketAmenitiesandCharacteristicsFacilityAmenityorCharacteristic Importance Purpose
Separatevendorparking/bikestorage Recommended VendorFirepit Recommended Vendor,PatronWidewalkways Recommended Vendor,PatronMarketprovidedstalls,tents,tablesforvendors Recommended VendorComposting/zerowasteprogram Recommended AestheticsPermanentwallhangingspace Recommended PatronPublicartspace Recommended PatronMarketbrandedart Recommended VendorBasketballcourt,playground,otheractivespace,familyspace Recommended Patron
Gashookup(interior) Recommended AestheticsGashookup(exterior) Recommended VendorATMMachine Recommended Patron
CSA(communitysupportedagriculture)pickup Recommended VendorWindturbineart Recommended Vendor
Waterfeature Recommended Vendor,Patron
Solarpanels Recommended Vendor,PatronConvertiblewalls/roof Suggested Vendor,AestheticsParking(on-site,public) Suggested Aesthetics
Parking(on-site,vendor) Suggested Vendor,Patron,Aesthetics
Decorativeconstructionmaterials(wood,tile,etc.) Suggested Vendor,Patron,
Aestheticse-Storeplatform(aspartofconsignment) Suggested PatronShoppingcarts/baskets/bags/canvasortarpbags Suggested Vendor,PatronGreenwall Suggested AestheticsBikerepairstation Suggested Vendor,PatronVendorgreywaterdisposal/reclamation Suggested VendorDedicatedconsignmentspace Suggested Vendor,PatronRetractablepylonstoclosesurroundingstreetsforfestivaldays Suggested Patron
Site-widePAsystem Suggested VendorBeergarden/21+space Suggested PatronSoundbaffling/separationfromentertainmentarea Suggested Aesthetics
Statuesorfixedart Suggested Vendor,Patron,Aesthetics
Publicsquare(withseating) Suggested PatronPublicgarden Suggested AestheticsBioswales/raingardens Suggested Aesthetics"Soapbox"+buskerspace Suggested Patron,AestheticsDemarcatedvendingspace Suggested AestheticsEmX/Busstop Suggested Patron
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APPENDIX D: EXISTING LOCAL SIMILAR-SECTOR PROGRAMS AND FACILITIES
Location,access,andmarketnichewillgreatlyinfluencethefeasibilityofapermanentpublicmarketspace.Asconceived,thefacilitywouldoverlapwithexistingretailandfoodoutletsimpactingbusinessesthatarealreadyhere,especiallythosethatservesimilarcustomersandsellcomparableproducts.Tobetterunderstandpotentialimpact,CPWinventoriedexistinglocalmarketsandgrocerystores.CPWidentifiedfivegroceriesormarketspacesthathaveasimilarconcepttothedowntownEugenepublicmarket.
• ProvisionsMarket,locatedwithin5thSt.Market,isaspecialtymarket.Provisionsspecializesinlocalmeatsandproduce,gifts,cookware,wine,andpreparedfood.
• SundanceNaturalFoodsisalocalinstitution,renownedfortheirmacaroniandhotfoodbar.Theyprovidelocal,organic(andsometimeswild)produce,avegetariandeli,bulkfoodandherbs,andawideselectionofvitaminsandhealthproducts.SundancealsofeatureslocalcraftbeerandawideselectionofPacificNorthwestandglobalwines.
• CapellaMarketislocatedinEugene’sSouthWillametteneighborhood.CapellaMarketfeaturesafullrangeoflocal,natural,andorganicfoods.Ithasaselectionofcookwareandotherhouseholditems,clothing,cheese,naturalremedies,andbulkfood.Visitorscanfindavarietyofwineandbeer,includingbothlocalproductsandpremiumimports.
• WholeFoodswilljointheEugenedowntowncommunityinFallof2016.Itisanationwidenaturalgrocerychainthatcaterstotheneedsoflocalfoodeaters.ThenewWholeFoodsonthecornerofHighSt.andBroadwaywilllikelyprovidecompetitioninthedowntownareaforallexistingandfuturegroceryormarketestablishments.
• TheKivaGroceryhasbeenlocally-ownedandoperatedforover45years.TheKivaprovidesavibrantspacethatincludesafullservicedeliwithpreparedfood,coffee,kombucha,andsaladbar.Theyselllocal,natural,andorganicgroceries,localspecialtymeats,wineandbeer,naturalhealthandhomeopathyproducts,andbulkfoods.Almost80%oftheirproductsaresourcedlocally.
MapD-1showsgrocerystoresandmarketswithintheEugene-Springfieldarea.Localmarketsandgrocerystoresthataremostlikelytocompetewiththepublicmarketareindicatedwithastarandarelabeled.
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MapD-1:GrocerystoresandmarketswithinonemileofDowntownEugene
Source:CommunityPlanningWorkshop,2016
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APPENDIX E: SURVEY RESULTS
CPWadministeredandanalyzedtwosetsofvendorsurveys.ThefirstsurveywentouttoproducersfromtheLaneCountyFarmersMarketandtheWillametteFarmandFoodCoalitionandthesecondsurveywentouttocraftersfromtheSaturdayMarket.
Saturday Market Survey Summary CPWdevelopedandadministeredasurveyofSaturdayMarketvendorswithassistancefromtheSaturdayMarketExecutiveDirector.TheintentofthesurveywastolearnifSaturdayMarketvendorssupporttheideaofapermanentpublicmarketfacilityindowntownEugene.Additionally,thesurveyaskedvendorswhatcharacteristicstheywouldliketoseeinafacility,whattypeofgovernancestructurevendorswouldprefer,whatpaymentstructurewouldbebest,whatamenitiestheywouldwanttoaccess,anddetailsabouttheirbusiness.
CPWsentthesurveyoutto450SaturdayMarketvendorsandreceived180completeresponses.Notethatthiswasnotintendedtobearandomsamplesurvey,soweurgereviewerstousecautioninextrapolatingtheresultstoallSaturdayMarketvendors.
Mostrespondentssoldcraftsorart,however,somesellprepared,pre-packagedorvalue-addedfoods.InadditiontovendingattheParkBlocksonSaturday,one-fifthofrespondentsalsosellatothermarketsthroughoutLaneCountyandone-fifthalsoselloutsideofOregon.Overtwo-thirdsofvendorsindicatedmoderatetoveryhighinterestinvendingatapermanentpublicmarketfacilityindowntownEugene.
Desired Facility Characteristics
• Surveyrespondentswantflexiblespace.Surveyrespondentsindicateastrongdesireforanindoor/outdoorflexiblespace,with61%expressingadesireforsuchastyle.Reinforcingthedesireforflexiblespace,86%ofvendorsrespondedthattheywouldlikeavendingspacethatwouldbeabletoservebothindoorandoutdoorcustomers.
• Interestinusingconsignmentspacewasmixed.Thirty-fourpercentofrespondentsindicatednodesiretoparticipateinconsignmentatall.Another45%expressedmoderatetoveryhighinterest,andtheremaining22%expressedlowinterestorhadsomereservationsabouthowitwouldworkforthem,citingpriceconcerns.Onecommenterexpressedinterestinanonlineplatformforconsignment.
• Bathrooms,drystorageandloadingdockswerethemosthighlypreferredsiteamenities.Respondentsindicatedastrongdesireforpermanentbathrooms:78%expressedhighinterest.Justoverhalfoftherespondentsindicatedthattheywouldwantonsitedrystorage,whilealmostnonedesiredanykindofcoldstorage.About32%ofrespondentssupporttheadditionofloadingdocks,andmultiplewriteincommentsindicatedadesireforsomesortoftruckaccesstothevendingspace.
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• Respondentsalsoindicatedinterestinawidevarietyofotheramenities.Notablewrite-insuggestionsforamenitiesinclude:fixedanchorsforoutdoorvendingspace,utilityaccess,entertainmentspacesandstages,familyspace,andagain,bathrooms.Whileutilityaccess,familyspace,andentertainmentspacewereincludedinCPW’sinitialamenitymenu,theinclusionofanchorsforoutdoorvendorsisanimportantadditiontoinitialsuggestions.Thereiterationofbathroomsshowshowstrongthedesireisforrespondentstomoveawayfromthecurrentsystemofimpermanentrestrooms.
Governing/Management Structure
Surveyrespondentswereaskedtoindicatetheirlevelofsupportforavarietyofdifferentgovernancestructures.PossiblegoverningorganizationslistedonthesurveyincludedLaneCountyFarmersMarket(LCFM),SaturdayMarket(SM),adifferentnon-profitorganization(besidesthetwoorganizationsaforementioned),afor-profitorganization,alocalgovernmententity,orsomecombinationoftheaboveoptions.Preferencesforgoverningbodieswererankedasfollows(notethatrespondentscouldcheckmorethanoneoption):
• Eighty-eightpercentofrespondentsindicatedthattheywouldbesupportiveorverysupportiveofSaturdayMarketmanagingthemarket;
• LCFMwasthesecondpreferredgoverningbody,with58%ofrespondentsindicatingthattheywouldbeeithersupportiveorverysupportiveofthemmanagingthemarket;
• Forty-twopercentofrespondentsindicatedthattheywereindifferenttogovernancebyadifferentnon-profitorganization(besidesSMandLCFM);and
• Respondentswereleastsupportiveofalocalgovernmententityorafor-profitorganizationtobeincontrolofoperations.
Oftherespondentswhoindicatedahybridmodelwouldbebest,overhalfspecifiedthatgovernanceshouldincludesomeformofapartnershipbetweenSaturdayMarketandtheLaneCountyFarmersMarket.Somerespondentsalsostatedthatgovernanceshouldincludeinputfromvendorsandmembership.
Operational Models
Surveyrespondentsindicatedthedesireandabilitytoproduceandsellproductsallyear-round.Whilerespondentsindicatepeakvendingseasonsofwinterandsummer,over70%ofrespondentsindicatedacapabilityanddesiretoprovideproductsforsaleyear-round.Additionally,86%ofrespondentsreportedhavingyear-rounddemandfortheirproducts.Respondentshadhighinterestinsellingproductsduringallseasonswithbetween75%and89%interestedinvendingduringeachseason.Notably,28%ofrespondentshavenointerestatallinsellingtheirproductsduringtheiroff-season.
Mostsurveyrespondentsindicatedtheywouldnotbeabletoselleverydayoftheweek,andabouthalfareinterestedinconsignment.Only27%ofrespondentsindicatedthattheywouldbeabletosellmorethanthreedaysperweek.Text
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responsesexplainedthatmanyvendorsneeddaysduringtheweektoworkontheirproductsandmanyrespondentsindicatedthatvendingthreedaysperweekorlesswouldbeideal.Fifty-onepercentofrespondentsexpressedlowornointerestinconsignment.Writtencommentsrevealedthattherehavebeenseverallocaleffortstosellcrafts/artonconsignmentinthepast.Severalrespondentsreportednegativeexperienceswiththesefailedattempts.
Fee Structures
Respondentspreferavariablefeestructureandwouldprefertopaylessthan$150permonth.Amajorityofrespondents(63%)wouldbewillingtopayeitherthecurrentSaturdayMarketfeestructure(withaflatfeeandpercentageofsales)orafeethatvariesdependingonthesizeofthemarketboothspace(81%).Commentsindicatethatthereisawillingnesstopayfeesbasedonthesuccessoftheindividualvendor,andorthelocationofthebooth.Additionally,respondentsstatedconcernthathighfeeswouldkeepvendorsfromparticipating:fewvendorswerewillingtopaymorethan$150permonth.
Self-reportedannualrevenuevariesgreatly.Somerespondentsreportedrevenuesoflessthan$20,whileotherreportrevenuegreaterthan$10,000oreven$25,000.Roughmathematicalanalysisofthesereportedvaluestellsthatofthosethatresponded,theaveragemade$6,300,whilethemedianvaluewas$4,000.ThemostanyvendorreportedmakingatSaturdayMarketontheParkBlockswas$40,000,whiletheleastwasunderfourdollars.
Implications
Surveyrespondentsindicatedinterestinthefollowingfacilitycharacteristics:
• Respondentsexpressedadesireforflexibleindoor/outdoorvendingspace,butnotanoverwhelmingdesireforsolelyindoorspace.
• Respondentsindicatedinterestinusingamenitiesincludingbathrooms,mixedoutdoor/indoorvendingbooths,utilityaccessandtruckaccesstovendingspace.
• Respondentsexpressedmoderatedesireforloadingdocksandconsignmentspace.Commentsindicatedthatvendorsmayhavetoseetheseinactiontounderstandthem.
• RespondentsindicatedahighpreferenceforSaturdayMarkettogovernthepublicmarketwhilemanywouldalsobesupportiveofLaneCountyFarmersMarketgoverningthemarket.Apartnershipbetweenthesetwoorganizationswasspecificallyidentifiedinatleast10writtenresponses.
• Respondentsareinterestedinsellingonetothreedaysperweekandduringallseasons(includingoff-seasons).Consignmentcouldprovideaviableopportunityforvendorswhoareinterestedandassuchshouldcontinuetobepartofthediscussion.
• Responsessuggestthatrespondentsarewillingtopaywhattheybelieveisfair.ManyrespondentswouldlikelyprefertostickwithSaturdayMarket’scurrentfeestructure,orpayafeethatvariesbythesizeoftheirvendingspaceordailysales.
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Finally,thesurveyresultssuggestthatmanyvendorsmaynotbeabletopayfeeshigherthanwhattheyalreadyarepaying,andthatothersmakeenoughmoneytobeabletosupporthigherfees.Itispossiblethatflexiblefeemodelscouldgivetheabilityformoreprofitablevendorstounderwritethelowermarketfeesoftheirpeers.
Saturday Market Survey Results FigureE-1.Pleaseindicateyourlevelofinterestinhavingvendingspaceinapermanentfacility,staffedbyYOU(e.g.,yourbusiness).
FigureE-2.PleaseindicateyourlevelofinterestinhavingyourproductssoldonconsignmentatthepermanentfacilitybyATHIRDPARTY.
Isthereanythingelseyou'dlikeustoknowaboutyourinterestinusingapermanentpublicmarketfacility?
From93responses,somecommonthemesthatemergedfromthisquestionwere:
• Concernswithmovingtheoutdooratmosphereinside• Onelocation/siteforoutdoormarkets
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• Affordabilityconcernsiffeesincrease• ExcitementfortheopportunitytogrowdowntownEugene• Excitedtohaveweatherresistantspace,forboththevendorsand
customers• Concernswithgovernancestructure
HowdoyouthinktheSaturdayMarketwillchangeoverthenext10years?
Ofthe180respondents,81(45%)saythatSaturdayMarketwillhavemorevendorsandrequiremorespace,17(9%)saySaturdayMarketwillhavemorevendorsandrequirethesameamountofspace,and82(46%)saySaturdayMarketwillhaveaboutthesamenumberofvendors.
PleaseExplainYourResponse:
Of120respondents,somecommonthemesthatemergedfromthisquestionwere:
• Morespacewouldequalroomformorevendors• Somebelievethenumberofvendorshasplateaued• Othersthinkthatthey’llkeepgettingnewvendors,andwillhavetoturn
someofthemawayduetolackofspaceAtyourcurrentlevelofoperations,wouldyoubeabletoprovideproductsforsaleyear-round?
Ofthe182respondents,127(70%)saidyes,theywouldbeabletoprovideproductsforsaleyear-round,24(13%)sonotheywouldnotbeableto,and31(17%)saidthattheydidn’tknow.
Istherecurrentlyyear-rounddemandforyourproduct?
Ofthe177respondents,153(86%)saidyestheycurrentlyhaveyear-rounddemandfortheirproductsand24(14%)saidthattheydidnot.
Wouldyoubeinterestedinexpandingyouroperationstocreateproductsyear-roundassumingtherewasdemandforthem?
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FigureE-3.Areyouinterestedinexpandingyouroperationstosellproductsyear-roundinalocationindowntownEugene?
Ofthe180respondents,85(47%)saidyestheywouldbeinterestedinexpandingtheiroperationsyear-roundinadowntownEugenelocationand15(8%)saidtheywouldnotbeinterested.
FigureE-4.Duringwhichseasonswouldyoubeinterestedinsellingproductsatthepublicmarketfacility?Selectallthatapply.
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FigureE-5.Whichseasondoyouconsidertobeyourpeakseason(s)?Selectallthatapply.
FigureE-6.Atyourcurrentlevelofoperation,howmanydaysperweekwouldyoubeinterestedinsellingproductsinyourownvendingspaceduringyourpeakseason?
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FigureE-7.Atyourcurrentlevelofoperation,howmanydaysperweekwouldyoubeinterestedinsellingproductsinyourownvendingspaceduringyourpeakseason?
Wouldyoubeinterestedinexpandingyouroperationssoyoucansellproductsmoredaysperweekinyourownvendingspace?
Ofthe173respondents,56(32%)saidyestheybeinterestedinexpandingtheiroperationstosellproductsmoredaysperweekintheirownvendingspace,56(32%)saidnotheywouldnotbeinterested,and61(35%)saidtheydidn’tknow.
Atyourcurrentlevelofoperation,wouldyoubeinterestedinhavingyourproductssoldonconsignmentatthepublicmarketspaceduringyourpeakseason?
Ofthe174respondents,59(34%)saidyestheywouldbeinterestedinhavingtheirproductssoldonconsignmentduringtheirpeakseason,75(43%)saidnotheywerenotinterested,and40(23%)saidthattheydidn’tknow.
Atyourcurrentlevelofoperation,wouldyoubeinterestedinhavingyourproductssoldonconsignmentatthepublicmarketspaceduringyouroff-season?
Ofthe174respondents,70(40%)saidyestheywouldbeinterestedinhavingtheirproductssoldonconsignmentduringtheiroff-season,64(37%)saidnotheywerenotinterested,and40(23%)saidthattheydidn’tknow.
Isthereanythingelseyou’dlikeustoknowaboutyourcapacitytouseapermanentfacility?
From64responses,somecommonthemesthatemergedfromthisquestionwere:
• Operationalconcernswithdailyvendingandvendorsoffseasons• ConcernswithchangingastableSaturdayMarket• Concernswithfeespossibleincreasing• Facilityamenityconcerns
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FigureE-8.Ifyouhadtopickoneofthefollowingstylesofvendingspace,whichwouldyouprefer?Pleaseselectonlyone.
FigureE-9.Whichofthefollowingvendingarrangementswouldyouprefer?Pleaseselectonlyone.
TableE-1.Pleaseindicateyourlevelofinterestinusingthefollowingfacilityamenities.
VendingAmenityNo
InterestLow
InterestModerateInterest
HighInterest
Total
Indoor/outdoorvendingspacethathasbothindoorandoutdoorplacestodisplaygoodsandinteractwithcustomers
9% 4% 24% 61% 158
Movabledisplaytables 30% 13% 26% 30% 148Permanentdisplaytables 46% 19% 24% 11% 144Permanentrefrigerateddisplaycases 85% 4% 4% 7% 138
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TableE-2.Pleaseindicateyourlevelofinterestinusingthefollowingfacilityamenitiesrelatedtostorage(inacentrallocationremovedfromyourvendingspace).
TableE-3.Pleaseindicateyourlevelofinterestinusingthefollowingfacilityamenities.
Isthereanythingelseyou’dliketotellusaboutyourpreferencesforthedesignofapermanentpublicmarketfacilityandtheamenitiesitmighthave?
Commonthemesthatemergedfromthisquestionwere:
• Interestinbathrooms• Desireforabright,vibrant,andairyspace• Naturallightandmanywindows• Securityprovisions:anti-theft,storage,unhousedpeoples• Locationconcerns:downtown,byLCFM,bytheriver,orotherplace
StorageTypeNo
InterestLow
InterestModerateInterest
HighInterest
Total
DryStorage 34% 13% 24% 29% 157ColdStorage(40-55degrees) 93% 2% 4% 1% 134ColdStorage(35-40degrees) 92% 2% 2% 3% 133ColdStorage(32degreesorcolder) 95% 2% 2% 2% 132
FacilityAmenityNo
InterestLow
InterestModerateInterest
HighInterest
Total
LoadingDock 51% 15% 19% 15% 148CommercialKitchen 77% 8% 8% 7% 139FoodDemoandEducationalSpace 76% 9% 5% 9% 140Bathrooms 8% 3% 11% 78% 158Other(Pleasespecify) 44% 0% 6% 50% 36
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FigureE-10.Ifthepublicmarketdoesnotoperateyear-round,howdoyouthinkthepermanentfacilitycouldbebestusedduringtimeswhenthereisnomarket?Pleasecheckallthatapply.
Respondents’suggestedusesinclude:
• Eventsspace• Localbusinessincubatororretailstorefront• Foodanddining
TableE-4.Thetypeoforganizationthatmanagesthebusinessoperationsofthepublicmarketspacemayimpactthesuccessoftheoperationandmayaffecttheoverheadcostrequiredtobeaddedtovendor’sproducts.Pleaseindicateyourlevelofsupportforhavingthefollowingorganizationsmanagetheoperationsofthepermanentmarketspace.
Respondentssuggested:
• Withstrongsupportwithmultiplesuggestions,acollaborativestructurethatinvolvesbothLaneCountyFarmersMarketandSaturdayMarket
• Aprofessional,full-timemarketmanager,operatingwithvendorinput
GoverningBody
VerySupportive
SupportiveNeitherSupportiveNorUnsupportive
UnsupportiveVery
UnsupportiveTotal
LaneCountyFarmersMarket 32% 26% 23% 6% 12% 145
DifferentNon-ProfitOrg. 12% 13% 40% 13% 21% 136
For-ProfitOrg. 3% 5% 24% 18% 49% 131LocalGovernmentEntity
3% 2% 26% 18% 52% 131
SaturdayMarket 68% 19% 5% 3% 5% 154Combinationoftheabove(Pleasespecify)
22% 10% 29% 6% 32% 78
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FigureE-11.Whatproductsdoyoucurrentlyonoffer?
FigureE-12.Doyousellproductsatotherretailoutlets?
Doyousellyourproductsonline?
Ofthe167respondents,102(61%)saidyestheydidsellproductsonlineand65(39%)saidthattheydidnot.
DoyousellontheParkBlocks?
Ofthe170respondents,162(95%)saidthatyestheydosellproductsattheSaturdayMarketontheParkBlocksand8(5%)saidnotheydidnot.
DoyousellattheHolidayMarket?
Ofthe172respondents,157(91%)saidyestheydidsellattheHolidayMarketand15(9%)saidnotheydidnot.
Whatsizeofboothdoyouoccupy?
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Ofthe158respondents,152(96%)saytheynormallyoccupya8’x8’boothattheSaturdayMarketand15(9%)saytheynormallyoccupya4’x4’boothattheSaturdayMarket.Oneperson(1%)indicated“strolling”.
FigureE-13.Pleaseestimateyourgrossannualsales.
FigureE-14.PleaseestimateyourgrossannualsalesfromtheParkBlocks.
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FigureE-15.PleaseestimateyourgrossannualsalesfromtheHolidayMarketattheLaneEventsCenter
HowmuchofyouryearlyrevenuecomesfromtheParkBlocks?
112respondentsreportedthatanaverageof35%oftheirrevenuecomesfromsalesattheParkBlocks.
HowmuchofyouryearlyrevenuecomesfromtheHolidayMarket?
112respondentsreportedthatanaverageof37%oftheirrevenuecomesfromsalesduringtheHolidayMarket.
TableE-5.CurrentlyvendorsatSaturdayMarketpayafeeof$10(whensellinginan8'by8'space)plus10%ofannualsales,inadditiontoa$50annualmembershipfee.Thereareseveralpaystructuresthroughwhichvendorscouplepayforspaceandassociatedamenities(electricity,water,etc.)atapermanentmarketfacility.Pleaseindicateyourlevelofsupportforthefollowingpaystructures.
Istheresomeotherfeestructurethatyouthinkwouldworkforvendorsatapermanentfacility?
From40responses,somecommonthemesthatemergedfromthisquestionwere:
FeeType SupportiveNeitherSupportiveNorUnsupportive
UnsupportiveN/A:Iamnotwilling
topaythisfeeTotal
OnlyaFlatFee 38% 27% 23% 12% 140
OnlyaPercentageofSales
38% 21% 21% 11% 137
ACombinationofaFlatFeeandPercentageofSales
62% 14% 11% 12% 148
FeethatVariesAccordingtotheSize
74% 14% 4% 8% 147
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• Concernswithfeesincreasing• Supportforflatfees• Naturallightandmanywindows• Feesthatvarywithlocation,utilityuse,numberofoperatingdaysperyear• Concernswithvendorsnotpayingtheirfairshare
FigureE-16.Ifapermanentfacilitywerebuilt,howmuchwouldyoubewillingtopaypermonthtorenta10'x10'vendingspace?
FigureE-17.Ifapermanentfacilitywerebuilt,howmuchwouldyoubewillingtopayasanannualfeetohaveyourproductssoldonconsignmentbyathirdparty?
FigureE-18.Isthereanythingelseyou’dliketotelluswehaven’talreadyasked?From75responses,somecommonthemesthatemergedfromthisquestionwere:
• Strongsupportforapermanentfacility,providedthatitdoesn’tnegativelyimpactcurrentmarketoperations
• Concernsaroundconsignment:Executionandcost
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene September2016 Page|107
• Concernsaroundonlinesalesandcompetitionfromonlinecraftplatforms,andhowthosewillimpactthefutureofSaturdayMarket
• ConcernsthatapermanentfacilitywouldnegativelyimpactoperationsattheParkBlocksorattheHolidayMarket
• Excitementaboutexpandingthemarketwithmorespaceandapermanentfacility
Lane County Farmers Market Survey CPWadministeredasurveytotheLCFMmembershipandotheragriculturalproducersinLaneCounty.CPWdevelopedandadministeredthesurveywithassistancefromLCFMboardmembersandtheWillametteFarmandFoodCoalition.TheintentofthesurveywastolearnifLaneCountyFarmersMarketvendorsandotherlocalfarmerssupporttheideaofapermanentpublicmarketfacilityindowntownEugene.Thesurveyalsoaskedwhatcharacteristicsrespondentswouldliketoseeinafacility,whattypeofgovernancestructurevendorswouldprefer,whatpaymentstructurewouldbebest,whatamenitiestheywouldwanttoaccess,anddetailsabouttheirbusiness.
CPWreceived49responsestothesurvey,withmostresponsescomingfromvendorsattheLaneCountyFarmersMarketandafewcomingfrommembersoftheWillametteFarmandFoodCoalition.37Mostrespondentssoldproduceoranimalproductswhilemanysoldprepareditemsornon-fooditems.InadditiontovendingattheLaneCountyFarmersMarket,manyoftherespondentsalsosellatothermarketsthroughoutLaneCounty.
TheresultssuggestthatvendorsfromtheLaneCountyFarmersMarketandotherlocalfarmerssupporttheideaofapermanentpublicmarketfacilityindowntownEugene.Overtwo-thirdsofvendorsandotherfarmerssurveyedindicatedmoderatetoveryhighinterestinthisconcept.Additionally,thesurveyindicatedthatthereisawidespreadperceptionthattheLaneCountyFarmersMarketwillgrow.Eighty-twopercentofsurveyrespondentsexpressedthebeliefthatthemarketwouldlikelyhavemorevendorsandrequiremorespaceoverthenexttenyears.
Desired Facility Characteristics
• RespondentsexpressedthattheywouldfavorapublicmarketindowntownEugenethatcansupportconvertibleoutdoor/indoorvendingspaceswithstorage.Sixty-sevenpercentofsurveyrespondentsexpressedapreferenceforconvertibleindoor/outdoorvendingspaces,and62%ofrespondentsstatedtheywereinterestedinstorageeitheryear-roundorpart-time.
• Surveyrespondentsindicatethat10’by10’vendingspacesshouldaccommodatemostvendors.At73%,amajorityofrespondentsindicatedthattheynormallyoccupya10’by10’vendingspaceattheLaneCountyFarmers
37ThesurveyrepresentsasignificantportionoftheLCFMmembership,buttheresultsshouldnotbeinterpretedtoberepresentativeofallLCFMmembersoragriculturalproducersinLaneCounty.Ourassessmentisthatthesearerelativelyminorlimitationsandthattheresultsprovideusefulinformationrelatedtothesurveyobjectivesofunderstandingsupportforapublicmarketandpreferencesforspaceandoperations.
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Market.Severalotherrespondentssaidthattheyoccupya10’by20’space,andafewrespondentsoccupya10’by30’space.
• Supportforamenitieswasmixedamongrespondents.Bathroomswerestronglyfavoredwith95%ofrespondentsindicatingmoderatetohighinterest.Abouthalfofrespondentsexpressedmoderatetohighinterestinloadingdocks(47%),andfoodanddemoeducationalspace(50%).
• Otherdesiredamenitiesthatrespondentsidentifiedinthesurveyincludedisplaytables(bothpermanentandmoveable),displaycasesforproducts,andavarietyofstorageoptions.CPWandtheResourceGroupwillcontinuetoassesspotentialamenitiesanddesigncharacteristicstodeterminewhicharethemostdesired.
Governing/Management Structure
Surveyrespondentsexpressedmixedpreferencesonwhoshouldmanagethepublicmarketfacility.Forty-twopercentofsurveyrespondentsindicatedthattheypreferredthatthemarketbeoperatedbytheLaneCountyFarmers’Marketasafirstchoice.Almost20%ofrespondentssaidmanagementbyalocalgovernmententitywouldbetheirtopchoice,andmorethan20%saidthatafor-profitorganizationwouldbetheirfirstpreference.
Whenaskedabouttheirsecondpreferenceformarketmanagement,56%ofrespondentsfavoredmanagementbyadifferentnon-profitorganization.Notably,31%ofrespondentsreportedthatLaneCountyFarmersMarketwouldbetheirlastchoicetomanagethemarketandmorethan35%answeredthatalocalgovernmententitywouldbetheirlastchoiceformarketmanagement.
Operational Models
Mostrespondents(77%)indicatedthattheywouldwanttoselltheirownproductsonetothreedaysperweekduringpeakseasons.Duringtheoffseason,themajorityofrespondentsindicatedthattheywouldwanttocontinuesellingtheirproduct;only33%ofvendorssaidtheywouldnotwishtosellproductsduringthistimeand55%saidtheywouldbeinterestedinsellingoneortwodaysperweek.Whileone-thirdofrespondentsindicatednodesiretovendintheoff-season,67%ofvendorsindicatedtheywouldbeabletosellproductsyear-roundattheircurrentlevelofoperation.
Respondentsalsoindicatedconsiderableinterestinconsignmentsales.Seventy-twopercentofvendorshavemoderate,high,orveryhighinterestinhavingtheirproductssoldonconsignment.Thirty-fivepercentofrespondentswouldwanttheirproductssoldonconsignmentsevendaysperweekduringbothpeakseasonandoff-season.Writtencommentsbyseveralvendorsindicatedthatstaffingaboothmorefrequentlywouldbeaburden.Consignmentmayprovetobeaviableoptionforsomeofthesmallerfarmsifthemarketisopenmultipledaysperweek.
Fee Structures
OneofthefoundationalassumptionsCPWismakingisthatvendorswillberequiredtopayfeesforuseofspaceatapermanentpublicmarket.Ourcasestudiessuggestitisrelativelycommontoassessfeesbasedonapercentageof
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene September2016 Page|109
sales.Tobetterunderstandopinions,thesurveyincludedquestionsaboutvariousfeestructures:
• Amajorityofrespondentswanttocontinuepayingafeebasedonthesizeoftheirbooths:51%ofvendorsexpressedthatthisstructure,basedonboothsize,wouldbebestforthem.
• Therewasnoclearconsensusonapercentage-basedstructure.About38%ofrespondentsweresupportiveorhighlysupportive,while33%wereunsupportiveorhighlyunsupportiveofapercentage-basedfeestructure.Twentypercentwereneithersupportivenorunsupportiveand10%weren’tsure.Severaltextresponsesindicatedthatotherconsiderations,suchasplacementwithinthemarketoractivitywithintheorganization,shouldalsohaveanimpactontheamountoffeesassessed.
• Respondentsgenerallywantedtokeepcostslow,butsomewerewillingtopaygreaterthan$150permonthforboothspace.About35%ofvendorswouldbewillingtopayupto$80permonthforvendingspace,and25%ofvendorsexpressedthattheywouldpayinexcessof$150permonth.
Implications
VendordemandfavorsapublicmarketindowntownEugenethatcansupportconvertibleoutdoor/indoorvendingspaceswithstorage.Normaloccupancyindicatesthat10’by10’vendingspacesshouldaccommodatemostvendors.Otherdesignamenitieswillneedtobefurtherassessedtodeterminewhethertheyarenecessary.
ThereismixedpreferenceonwhoshouldmanagethepublicmarketfacilitywithvendorsfavoringLCFMoradifferentnon-profitorganization.Basedonstrongpreferencebothforandagainstthesemanagementparties,itisimportanttocarefullyassessthemostappropriatemanagementparty.
Thedemandforvendorstoselltheirownproductsislimitedtoonetothreedaysperweekduringpeakseasons.Amajoritywouldstillwanttosellproductsduringtheiroffseason.Thereisalsoconsiderableinterestinconsignmentsales.Textcommentsbyseveralvendorsindicatedthatstaffingaboothmorefrequentlywouldbeaburden,soconsignmentmayprovetobeaviableoptionforsomeofthesmallerfarmsifthemarketisopenmultipledaysperweek.Surveyresultsalsoindicatethatdespitelowerdesiretovendmultipledaysperweekintheoffseason,respondentswouldbeabletoprovideproductsforsaleyear-round.
Amajorityofvendorswanttocontinuepayingaflatfeebasedonthesizeoftheirbooths.Thefairlylargeminorityofvendorsthatdesireorwouldbesupportiveofapercentage-basedfeestructureindicatesthatsuchamodelispossibleifnecessarytooperatethemarket.Vendorsgenerallywantedtokeepcostslow,butsomewerewillingtopaygreaterthan$150permonthforboothspace.Theunwillingnessofvendorstopayhighercostsmayconstraintheabilityofthemarkettosupportahigherlevelofamenities.Thisvariationalsomeansthatmultipletypesofvendingspacecouldbeoffered.
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Lane County Farmers Market Survey Results FigureE-19.Pleaseindicateyourlevelofinterestinhavingvendingspaceinapermanentfacility,staffedbyYOU(e.g.,yourbusiness).
FigureE-20.PleaseindicateyourlevelofinterestinhavingyourproductssoldonconsignmentatthepermanentfacilitybyaTHIRDPARTY.
0% 5% 10% 15% 20% 25% 30% 35%
NoInterest
LowInterest
ModerateInterest
HighInterest
VeryHighInterest
%ofRespondentsn=49
0% 5% 10% 15% 20% 25% 30% 35% 40%
NoInterest
LowInterest
ModerateInterest
HighInterest
VeryHighInterest
%ofRespondentsn=47
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene September2016 Page|111
FigureE-21.PleaseindicateyourlevelofinterestinhavingtheabilitytousethepublicmarketspacetodropoffCSAdeliveriesforcustomerstopickup.
Isthereanythingelseyou'dlikeustoknowaboutyourinterestinusingapermanentfarmers’marketfacility?
Commonthemesthatemergedfromthisquestionwere:
• Outsidefoodcourtwithcoveredseating• Onelocation/siteforoutdoormarkets• Coveredandheated• Interestdependsonboothcharges,location,andparking(accessibility)
FigureE-22.HowdoyouthinktheLaneCountyFarmersMarketindowntownEugenewillchangeoverthenext10years?
PleaseExplainYourResponse
Commonthemesthatemergedfromthisquestionwere:
0% 5% 10% 15% 20% 25% 30%
NoInterest
LowInterest
ModerateInterest
HighInterest
VeryHighInterest
%ofRespondentsn=46
0% 10% 20% 30% 40% 50% 60%
Verylikelytohavemorevendorsandrequiremorespace
Somewhatlikelytohavemorevendorsandrequiremorespace
Neitherlikelynorunlikelytohavemorevendorsandrequiremorespace
Somewhatunlikelytohavemorevendorsandrequiremorespace
Veryunlikelytohavemorevendorsandrequiremorespace
%ofRespondentsn=45
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• Supportforlocalfarming,sustainablefoodsystems,andlocalfoodindependence
• Lowfeestovendatthefacilityandfairfeestructure• Interestinthelocationofthemarket,sizeofthemarket'sfootprint,
customerparkingopportunities,increasedfoottrafficandvendorsalesAtyourcurrentlevelofoperations,wouldyoubeabletoprovideproductsforsaleyear-round?
Ofthe43respondents,29(67%)saidyestheywouldbeabletoprovideproductsyear-round,12(28%)saidnotheywouldnotbeableto,3(5%)saidtheydidnotknow.
FigureE-23.Duringwhichseasonswouldyoubeinterestedinsellingproductsatthefarmer’smarketfacility?
FigureE-24.Whichseasondoyouconsidertobeyourpeakseason(s)?Selectallthatapply.
0% 20% 40% 60% 80% 100%
Spring(March,April,May)
Summer(June,July,August)
Fall(September,October,November)
Winter(December,January,February)
%ofRespondentsn=42
0% 10% 20% 30% 40% 50% 60% 70%
Spring(March,April,May)
Summer(June,July,August)
Fall(September,October,November)
Winter(December,January,February)
%ofRespondentsn=42
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene September2016 Page|113
FigureE-25.Atyourcurrentlevelofoperation,howmanydaysperweekwouldyoubeinterestedinsellingproductsinyourownvendingspaceduringyourpeakseason?
FigureE-26.Atyourcurrentlevelofoperation,howmanydaysperweekwouldyoubeinterestedinsellingproductsinyourownvendingspaceduringyouroff-season?
Wouldyoubeinterestedinexpandingyouroperationssothatyoucouldsellproductsyear-round?
Ofthe13respondents,3(23%)saidyestheywouldbeinterestedinexpandingtheiroperationstosellproductsyear-round,5(46%)saidnotheywouldnotbeinterested,and4(31%)saidtheydidnotknow.
0% 5% 10% 15% 20% 25% 30% 35%
0
1
2
3
4
5
6
7
%ofRespondentsn=42
0% 5% 10% 15% 20% 25% 30% 35%
0
1
2
3
4
5
6
7
%ofRespondentsn=42
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FigureE-27.Atyourcurrentlevelofoperation,howmanydaysperweekwouldyoubeinterestedinhavingyourproductssoldonconsignmentatthepublicmarketspaceduringyourpeakseason?
FigureE-28.Atyourcurrentlevelofoperation,howmanydaysperweekwouldyoubeinterestedinhavingyourproductssoldonconsignmentatthepublicmarketspaceduringyouroff-season?
Wouldyoubeinterestedinexpandingyouroperationssoyoucansellproductsmoredaysperweekinyourownvendingspace?
Ofthe43respondents,20(47%)saidyestheywouldbeinterestedinexpandingtheiroperationstosellproductsmoredaysperweekintheirownvendingspace,13(30%)theywerenotinterested,and10(23%)saidtheydidnotknow.
Wouldyoubeinterestedinexpandingyouroperationstogrowproductsyear-roundifthereweredemandforthemandaplacetosellthem?
0% 5% 10% 15% 20% 25% 30% 35% 40%
0
1
2
3
4
5
6
7
%ofRespondentsn=43
0% 5% 10% 15% 20% 25% 30% 35% 40%
0
1
2
3
4
5
6
7
%ofRespondentsn=40
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Ofthe42respondents,20(45%)saidyestheywouldbeinterestedinexpandingtheiroperationstogrowproductsyear-roundiftherewasdemandforthemandaplacetosellthem,6(14%)saidtheywerenotinterested,and12(29%)saidtheydidnotknow.
Isthereanythingelseyou’dlikeustoknowaboutyourcapacitytouseapermanentfarmersmarketfacility?
Commonthemesthatemergedfromthisquestionwere:
• Themarketwouldhelpbusinessexpansionandlocalfarmers.• Interestinthelocationofthemarket,sizeofthemarket'sfootprint,
customer-parkingopportunities,increasedfoottrafficandvendorsales• Despitedemandforyear-roundproducts,itmaybedifficulttoproduce
everyyear,especiallydependingontheclimate/seasons.• Focusondetailsofthefacility(“thedevilisinthedetail”)• Costisabigfactorindeterminingthefacilitiesuse.
FigureE-29.Ifyouhadtopickoneofthefollowingstylesofvendingspace,whichwouldyouprefer?Pleaseselectonlyone.
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FigureE-30.Ifyouhadtopickoneofthefollowingstylesofvendingspace,whichwouldyouprefer?Pleaseselectonlyone.
FigureE-31.Whichofthefollowingvendingarrangementswouldyouprefer?Pleaseselectonlyone.
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TableE-6.Pleaseindicateyourlevelofinterestinusingthefollowingfacilityamenitiesrelatedtovendingspace
TableE-7.Pleaseindicateyourlevelofinterestinusingthefollowingfacilityamenitiesrelatedtostorage(inacentrallocationremovedfromyourvendingspace).
StorageType NoInterest
LowInterest
NeitherInterestedNorDisinterested
ModerateInterest
HighInterest Total
DryStorage 25% 3% 11% 39% 22% 36ColdStorage(40-55degrees) 23% 23% 23% 23% 23% 35ColdStorage(35-40degrees) 30% 30% 30% 30% 30% 33ColdStorage(32degreesorcolder) 46% 46% 17% 46% 46% 35
TableE-8.Pleaseindicateyourlevelofinterestinusingthefollowingfacilityamenities.
Isthereanythingelseyou'dliketotellusaboutyourpreferencesforthedesignofapermanentfarmer’smarketfacilityandtheamenitiesitmighthave?
Amenitiesthatwereimportantincluded:
• Propanestovesanddeepfryerswithinstands• Attractiveoutdoorspaceandatmosphere.• Customerseating• Electricaloutlets• Foodgrownon-site:communitygarden,rooftopgarden,etc.
VendingAmenityNo
InterestLow
InterestNeitherInterestedNorDisinterested
ModerateInterest
HighInterest
Total
Indoor/outdoorvendingspacethathasbothindoorandoutdoorplacestodisplaygoodsandinteractwithcustomers
3% 3% 8% 28% 60% 40
Movabledisplaytables 8% 5% 16% 47% 24% 38Permanentdisplaytables 11% 11% 29% 37% 11% 35Permanentrefrigerateddisplaycases 29% 9% 11% 31% 29% 38
FacilityAmenityNo
InterestLow
InterestNeitherInterestedNorDisinterested
ModerateInterest
HighInterest
Total
LoadingDock 42% 5% 5% 21% 26% 38CommercialKitchen 32% 14% 16% 24% 14% 37FoodDemoandEducationalSpace 22% 22% 5% 32% 19% 37Bathrooms 2% 2% 0% 29% 66% 41Other(Pleasespecify) 14% 0% 0% 0% 86% 7
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FigureE-32.Ifthefarmersmarketisnotyear-round,howdoyouthinkthepermanentfacilitycouldbebestusedduringtimeswhenthereisnofarmersmarket?Selectallthatapply.
TableE-9.Thetypeoforganizationthatmanagestheoperationsoftheindoormarketspacemayimpactthesuccessoftheoperationandmayaffecttheoverheadcostrequiredtobeaddedtovendors’products.Pleaserankyourpreferenceforthefollowingorganizationstomanagetheoperationsoftheindoormarketspace.
GoverningBody
NoInterest
LowInterest
IntermediateHigh
InterestTotal
LaneCountyFarmersMarket
42% 8% 19% 31% 36
DifferentNon-ProfitOrg.
11% 56% 26% 7% 27
For-ProfitOrg. 27% 12% 31% 31% 26LocalGovernmentEntity
22% 15% 19% 44% 27
Total 31 25 27 33
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FigureE-33.Pleaseindicatethetypesofproductsyoucurrentlyoffer.Checkallthatapply.
FigureE-34.Pleaseindicatethemarketswhereyoucurrentlysellproducts.Checkallthatapply.
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FigureE-35.Doyousellproductsatotherretailoutlets?Checkallthatapply.Aretailoutletisapermanentretailfacility(suchasagrocerystore)thatyoudonotstaffyourself.
DoyousellproductsattheLaneCountyFarmersMarketindowntownEugene?
Ofthe40respondents,26(65%)saidyestheydowellproductsattheLaneCountyFarmersMarketindowntownEugeneand14(35%)saidnotheydidnot.
FigureE-36.PleaseindicatethesizeofspaceyounormallyoccupyatthedowntownEugeneLaneCountyFarmersMarket.Checkmultipleoptionsifyouusedifferentspacesizesondifferentdays.
Whereisyourfarmorprimaryoperationlocated?
Ofthe41respondents,20(29%)indicatedthattheirfarmorprimaryoperationwaslocatedinEastLaneCounty(EastofI-5),14(34%)indicatedWestLaneCounty(WestofI-5),four(10%)indicatedBentonCounty,two(5%)indicatedLinnCounty,
0% 10% 20% 30% 40% 50% 60% 70% 80%
10x10
10x20
10x30
15x15
%ofRespondentsn=26
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andoneperson(2%)indicatedelsewhereinOregonwithnorespondentsindicatingLincoln,Marion,Polk,orDouglasCountyastheirprimarylocation.
FigureE-37.Pleaseestimateyourgrossannualsales.
FigureE-38.PleaseindicatethepercentageofyourannualgrosssalesthatisconductedattheLaneCountyFarmersMarketindowntownEugene.
0% 5% 10% 15% 20% 25% 30%
0-19%
20-39%
40-59%
60-79%
80-100%
%ofRespondentsn=20
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FigureE-39.CurrentlyvendorsattheLaneCountyFarmersMarketpayafeeof$40per10x10spaceperweekinadditiontotheannualmembershipfeeof$55/year.Ifyouweretopayfortheuseofspaceatthepermanentmarketfacilityandassociatedamenities(electricity,wateretc.?)whatpaystructurewouldbethebestforyou?
Istheresomeotherfeestructurethatyouthinkwouldworkforvendorsatapermanentmarketfacility?
Commonthemesthatemergedfromthisquestionwere:
• Feesvaryingaccordingtospecificlocation(i.e.cornerboothspacescostingmore)
• Feebasedonatypeofmeritsystemsuchasfactoringinvolunteerwork,etc.
• Combinationofpercentageofsalesandfeesbasedonsize,location,andamenities
• Flatfeebysizeandlocation
PreliminaryFeasibilityAssessmentforaPublicMarketinDowntownEugene September2016 Page|123
FigureE-40.Howsupportiveareyouoffeesystembasedonpercentageofsales(understandingthattheratewouldbeestablishedbasedonthenatureofthefacility)?
FigureE-41.Ifapermanentfacilitywerebuilt,howmuchwouldyoubewillingtopaypermonthtorenta10x10vendingspace?Thispaymentcouldbebasedonanyofthepaymentstructuresreferredtointhepreviousquestionandisonlyaskinghowmuch,overall,youwouldbewillingtopay.
0% 5% 10% 15% 20% 25% 30%
Verysupportive
Supportive
NeitherSupportiveNorUnsupportive
Unsupportive
VeryUnsupportive
Don'tknow
%ofRespondentsn=40
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FigureE-42.Ifapermanentfacilitywerebuilt,howmuchwouldyoubewillingtopayasanannualfeetohaveyourproductssoldonconsignmentbyathirdparty?
Isthereanythingelseyou'dliketotellusthatwehaven'talreadyaskedabout?
Commonthemesthatemergedfromthisquestionwere:
• Attractingcustomersshouldbethetoppriorityasthiswillincreaseprofitsandsupportvendors’abilitiestopaymarketfees.
• Smallerfarmsmayonlybeabletosell1-2daysperweek.• Surrounding/anchorbusinessesatthemarketwouldbebeneficialsuchas
foodcarts,restaurant,etc.• Itisimportanttokeeptheoutdoorandindoormarketononesitethatcan
accommodateboth.• Sometypeofaggregatorforwholesalerpurchasesoffarmproductsis
important.