Broad Street Market
A proposal to raise the rent for Broad Street Market vendors has been changed, significantly lowering the rate hike.
The Broad Street Market Alliance board of directors shared on Wednesday that they are now weighing a plan to raise rates by 25%, as opposed to nearly doubling rent, as discussed previously.
The rent increase is part of a new proposed financial stability plan, aimed at keeping the market open through fundraising and cutting costs, according to a release from the board.
In early January, market management notified vendors that their rents would increase by nearly 100% to help make up for a large budget deficit. Vendors and community members pushed back on the plan, and, ultimately, the board voted to suspend the measure.
According to the board, the market has only $14,000 left in its operating account and was facing a deficit of over $160,000 for the upcoming year. Market management has shared that they have lost 70% of their revenue, due to the brick building closing after a July fire.
Since the last board meeting, members have identified $30,000 in cost savings from “reduced discretionary expenditures,” according to the release. Board Chair Bryan Davis previously shared with TheBurg that the board has temporarily cut funding from areas like marketing and special events.
The market also recently received a $30,000 donation from the William Penn Social Association and has agreements with the city and utility providers to defer bills until the city’s temporary market structure for displaced vendors is open and bringing in more revenue.
Between the cost-cutting and donations, the market would likely have an operating deficit of $100,000 for the year, but the rent raise and additional fundraising, such as branded corporate sponsorships, may help close the gap, the board shared.
“We are beyond grateful for the assistance offered by the City of Harrisburg, the Shapiro administration, our utility providers and generous donors such as the William Penn Social Association who are helping to make sure the market remains open for business,” Davis said.
The new proposed financial plan was agreed upon by board members, including three new vendor representatives. The board is slated to officially vote on the plan at a meeting on Wednesday evening at the Historic Harrisburg Association.
“As vendors, the outpouring of support from the community has meant the world to us,” said Tito Tep, owner of Tep’s Fresh Seafood, a vendor. “Although any rent increase is difficult to absorb during such challenging times, we believe the sacrifices everyone is making in this new plan will set the stage for long-term recovery at the market.”
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