The Broad Street Market Alliance board meeting on Wednesday
Vendors at the Broad Street Market soon will pay more in rent, but significantly less of an increase than previously announced.
At a Broad Street Market Alliance Board meeting on Wednesday, members approved a 25% rent increase, changing a previous decision to nearly double the rate.
In early January, the market notified vendors that rent would go up by almost 100%, due to a need to offset a budget deficit brought on by the July fire in the brick building. However, vendors and community members pushed back, causing the board to suspend the plan and then ultimately amend it on Wednesday.
“I’m confident we can do this with just a 25% rent increase,” said board member Eric Hagarty. “I’m confident that if we take this step we can turn this ship around and years from now we will look back at this as a challenging moment, but a moment that we took necessary action.”
The rent increase, which will go into effect in March, is one way that the board hopes the market will raise money to make up for an estimated $160,000 deficit in 2024. According to the board, the market has lost 70% of its revenue since the fire-devastated brick building was closed.
Outside of the rent hike, the board has cut about $30,000 in discretionary expenditures, including marketing and special events funding. Board members shared that they expect that recent donations and additional fundraising, along with the city and utility providers deferring bills, will make up for the rest of the deficit.
Under the new financial plan, the market will need to raise around $6,500 each month to stay out of the red, according to Hagarty. If the city’s temporary tent to house displaced vendors is not open by the spring, that number would increase by an additional $5,000 or more a month, he said.
Additionally, new vendor representatives Tito Tep, owner of Tep’s Fresh Seafood, Richard Choi, owner of Yami Korean Food, and Theo Armstrong of Zeroday Brewing Co. were elected to the board at the meeting and voted in favor of the rent hike.
Choi shared that the increase still will be a challenge for the vendors, but a more manageable one.
“It’s better than a 100% raise,” he said. “They don’t want [the market] to close. Everybody understands.”
In addition, the board is considering entering into a contract with Harrisburg-based Midtown Property Management, which has offered to provide free services to the market for five years. Under the agreement, the management group would help with rent collection, financial consulting, day-to-day operations and 10 free hours of maintenance work each month.
“Giving back is important to us, and making sure the market is thriving is one way we can do that,” said Justin Heinly, owner of Midtown Property Management, at Wednesday’s meeting.
Currently, the market utilizes Harrisburg Property Management Group, which is paid 2.5% of rent revenue for its services.
The board will enter contract negotiations with the Midtown company and may formally approve a contract at a special meeting on Feb. 7.
On Wednesday, the board also established a search committee of directors to find a new executive director for the market. Last week, current director Tanis Monroy announced that he would resign at the end of February for health reasons.
The board also discussed with vendors the possibility that they could begin moving equipment into the temporary market building during the week of Feb. 12. The city has not yet set a completion date for the structure, as it has only recently received bids for plumbing and electrical work after months of delay.
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