Greater Harrisburg's Community Magazine

Broad Street Market vendors react to rent hike, consider future; management responds

Broad Street Market

“We’ve hung in there through a lot of what the market has gone through.”

Josh Longo, owner of The Cheesesteak Guy, a Broad Street Market vendor, got emotional as he talked about the market, where his business began over five years ago.

“Even after the fire, we hung in there,” he said.

But, on Tuesday night, he got an email from the market management saying that, in the coming month, his rent would almost double. The increase, he said, will be “detrimental” to his business, possibly even forcing him to close.

“It’s pretty disrespectful honestly,” Longo said. “I mean, we are a small business. Our margins aren’t built on things like that.”

All of the market’s 25 vendors currently operating in the stone building will be affected by the rent hike, which will raise the rate from $2.67 to $5.25 per square foot on Feb. 1.

The Broad Street Market Alliance board of directors voted to approve the increase at a December meeting.

According to market Executive Director Tanis Monroy, revenue has been down by 70% since the July fire in the market’s brick building, which heavily damaged and closed the building. Currently, the market is losing around $10,000 each month, caused by the displacement of over half of its vendors, Monroy said.

Even after the rent hike, the market will lose about $3,000 each month, he said.

And while the city is currently constructing a temporary market structure for displaced vendors, the process has continuously been delayed due to issues securing contractors.

“It wasn’t an easy decision,” Monroy said of the rent increase. “But they (board members) were faced with the decision of, ‘do we want to potentially not have a space for anybody?’ The only way this could potentially work and not be in the position of losing a building would be to raise the rent this much and this drastically.”

Many vendors said that they were shocked by the news, sharing that, beyond the email notification, there hasn’t been much more communication.

“We would’ve never signed the lease if we knew it was going to completely double,” said Kaci Shirey, who opened Piper Belles Wood Fired Flatbreads at the market with her husband Dave in November.

The couple is leaning toward remaining at the market, but said that they need to get some questions answered from market management first.

Monroy plans to hold a meeting with vendors on Wednesday.

“I think it would’ve been more appropriate to have that meeting before they sent the email out,” Dave Shirey said.

Many stone building vendors shared that the rent hike adds insult to injury, as they’ve lost a significant amount of business since the fire.

Marie Anne Hartlaub

Marie Anne Hartlaub, owner of Marie’s Kitchen, which serves Haitian food, estimated that her revenue has dropped by around 45%. That loss, she said, is due to less foot traffic and the fact that there is still public confusion about whether or not the market is open at all.

On Wednesday, Theo Armstrong, co-owner of Zeroday Brewing Co., which operates its Outpost in the market, held his own meeting for vendors. The goal, he said—to figure out what was happening and to come together with a unified voice as vendors.

“I don’t know how anyone can react well to a double rent increase,” Armstrong said. “We all have questions. There is a real problem with leadership. Transparency is outrageously important.”

Coming out of the meeting, Armstrong said that vendors have two requests. First they’d like market leadership to re-evaluate rent prices for comparable local markets.

Within the board’s December meeting minutes is a list of other area markets and the amount that they charge vendors, as justification for the rent hike in Harrisburg. The list shares that the West Shore Farmer’s Market charges $8.25 per square foot and that the Hershey Fresh Market charges $25.15 per square foot.

According to Monroy, the figures were gathered by calling markets and talking to vendors.

However, Armstrong disputes those numbers, saying that many Broad Street Market vendors have stands in other markets and know what they charge.

“We know exactly what those other markets charge, and it is nowhere close to what they’re claiming,” he said.

Armstrong said that the vendors’ second request is improved leadership and transparency from management. Several vendors shared that they have not received any recent face-to-face communication from management.

Additionally, seven former brick building vendors are operating in the stone building rent-free. However, once February comes, they too will need to pay the new rental amount.

For vendors like Hartlaub, who plans to remain in the market despite the rent increase, making up for the higher cost may mean raising food prices for customers, making portion sizes smaller or eliminating menu items. Those are all options that she would consider, she said.

The owners of Piper Belle’s are weighing the same options.

“It really boils down to the customers,” Dave Shirey said. “The prices might go over what they can spend, that’s the sad part.”

Harrisburg resident Gary Williams comes to the market twice a week for the food and the community, he shared. However, if prices do increase in the coming months, he would likely cut back on his visits, he said.

“That would definitely be a little bit of a hardship,” she said. “I wouldn’t come as much as I used to.”

Guadalupe Islas

Some vendors anticipate having to close up shop completely.

Yum, Yum! opened in the market just after the fire. Owner Guadalupe Islas opened the stand in hopes that it would do better than her Camp Hill location, which is set to close this month.

But business has been extremely slow and, with the new rental rate, she is “seriously thinking about leaving.” In that case, the business would likely close down all together, at least temporarily.

“It breaks our heart,” Monroy said, acknowledging that some vendors may leave. “So many have built roots here and built their community, but we know everybody needs to make the best decision for themselves and their livelihood.”

Monroy added that, right now, there are around 20 businesses on a waiting list to get into the market. Also, about 14 displaced brick building vendors are still signed up to enter the temporary market, once completed.

According to the city’s website, the bidding period for plumbing and electric work on the market temporary tent structure has been extended until Jan. 4.

“We will do what we can to continue to bring people, to advertise, to have events—whatever we can do to make the market a thriving place that people want to come to,” Monroy said.

The market board’s Jan. 10 meeting at 5:30 p.m. will be open to the public.

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