One year ago, we all woke up to the gut-wrenching news that the Broad Street Market’s historic Brick Building had been devastated by an overnight fire.
Dozens of small businesses saw their livelihoods reduced to ash. Access to groceries and other essential products in our USDA-designated “food desert” became even more sparse than it already was. Bills continued to pile up while recurring monthly revenue for the 501(c)(3) nonprofit overseeing the Market’s operations fell by 70%. The vendors who remained open in the Stone Building endured a significant decline in sales at their own businesses due to reduced overall foot traffic following the fire. Despite the absolute best efforts by everyone involved, completion of a new temporary structure to help displaced vendors get back on their feet felt like an insurmountable task at times.
By January, the Market was down to the last $14,000 in its operating account, faced a growing annual operating deficit of over $160,000, and had more than $50,000 in accumulated delinquent and unpaid bills. There was significant staff and board turnover. At this particularly low point, doubling the rent for the remaining vendors seemed like the only feasible option left to keep the lights on.
Needless to say, it has been a really, really hard year for the Broad Street Market, its vendors, and the community that relies on what Lawrance Binda recently aptly described in TheBurg as “a wonderful, wacky, loud place where people of all races, classes and cultures mix, mingle, shop and dine.”
In many other towns, a devastating fire like the one that took place a year ago, and all the terrible second-order effects it caused, would have been too much to overcome. But although this anniversary is a somber one, it is also a heartening one, because Harrisburg is not like many other towns: the people of Harrisburg simply refused to allow the Market to fail.
A recent photo of the burned-out brick building of the Broad Street Market
The outpouring of support from so many members of the community has been truly extraordinary. Members of the public have donated thousands of dollars to help alleviate revenue losses, including a life-saving $30,000 gift from the William Penn Social Association earlier this year. Following the departure of the prior executive director, several members of the Board of Directors volunteered to collectively perform those duties for free until such a time as the Market could afford to hire a permanent manager.
Capital Region Water and PPL Electric Utilities provided deferred payment arrangements to allow the Market to manage its challenging cash flow situation over the previous several months. Midtown Property Management volunteered to provide property management services for free for five years. Vendors voluntarily agreed to a 25% rent increase, to $3.34 per square foot. TheBurg, greater Harrisburg’s community news organization, waived the Market’s accrued unpaid advertising balance of $2,525 and has donated ad space for free. Hornung’s LED Lighting installed new high-efficiency lighting in the Stone Building, brightening the space while reducing utility costs.
Our new banking partner, Members 1st Federal Credit Union, has helped us get appropriate financial controls in place such as dual signatory requirements for expenditures and the Market is now publicly posting every single transaction that hits its bank accounts so that the public can hold us accountable to our promised financial stewardship. With the support of Enders Insurance, the Market now has required and appropriate workers’ compensation, directors’ and officers’, and commercial umbrella insurance it did not previously have in place. We have resumed preventive maintenance activities and inspections which were previously suspended. The new structure across from the Stone Building is finally open, in large part due to the contributions of The McClure Company, Touch of Color Flooring, the Carpenters Union Local 431 and the Eastern Atlantic States Regional Council of Carpenters, and KCS Electric.
We are also extremely grateful to Mayor Williams, her dedicated staff, and City Council, who have all demonstrated a commitment to help the Market however possible and complete the restoration of the Brick Building as expeditiously as they responsibly can. We are also grateful for all the support we have received from state legislators and the Shapiro administration.
We are not out of the woods yet, of course. The phased paying down of accrued delinquent bills has left us with little margin for error, but we are fortunate to have secured a $50,000 line of credit with 0% interest over the next six months, which will help us stay current on our bills as our fund balance starts to (hopefully) slowly grow again throughout the remainder of the year. It will take time for us to figure out how to better control the temperature in the tent. It will take time for the restoration of the Brick Building to conclude. It will take time before any of us can really definitively say we have truly, completely recovered from the fire.
But one thing is for sure: because of YOU, Harrisburg, the Market’s brightest days are ahead.
Thank you, thank you, thank you. We love you Harrisburg!
P.S.: The Market still desperately needs financial assistance and we are shamelessly asking for more help. If you are able and willing, please consider making a tax-deductible donation using the link below!
Eric Hagarty is chair of the board of directors of the Broad Street Market Alliance.
For more information about the Broad Street Market, click here. To donate, click here.
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Harrisburg-area home sales were generally lower in June, but prices were up, according to the latest report on previously owned houses.
