eugene downtown public market feasibility - final report

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

NetRevenueLowExpense $36,409 $224,600 $576,759HighExpense -$128,741 $62,450 $414,609

NetRevenueLowExpense -$48,241 $142,950 $494,639HighExpense -$254,091 -$62,900 $288,789

Concept1-Small

Concept2-Medium

Concept3-Large

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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.

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3. DevelopBusinessPlan:Themarketwouldneedtodevelopafinalbusinessplanonceagovernancestructurehasbeenselected.

4. DesignProcess:Expertisefromarchitects,inputfrompotentialvendors,andinputfromthepublicwouldinformthedesignprocess.

5. SeekAdditionalFunding,ifnecessary:UrbanRenewalfundswillbeusedtoprovidefundingforanycapitalimprovementsthatwillbeneeded.Nevertheless,ifadditionalfundsareneeded,thesemoniesshouldbesoughtafter,potentiallythroughfundraisingcampaigns,duringorsoonafterthedesignphase.

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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

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.

Figure1-1.PublicMarketAssessmentProcess

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.

Chapter6–ConclusionsandActionPlanpresentsCPW’sconclusionsandrecommendationsrelatedtothefeasibilityassessment.Thereportconcludeswithalistofpotentialnextsteps.

Thisreportalsoincludesseveralappendices:

AppendixA–FacilityConceptandDetailedFinancialModeling

AppendixB–CaseStudies

AppendixC–FacilityAmenitiesandCharacteristics

AppendixD–ExistingLocalSimilar-ProgramsandFacilities

AppendixE–SurveyResults

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.

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

ButterflyLot

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.

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).

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

AlloftheseproductsandservicescurrentlyexistattheeventsonSaturdays,butapermanentfacilitywouldallowformarketexpansionandwouldoffertheseservicesinamoreaccessibleandwelcomingway.

Facility Design and Amenities

Bothconsumerandvendorsurveyrespondentsidentifiedthedesireforapublicmarketfacilitytohaveaflexibledesign.Alargemajorityofconsumerandvendorrespondentswantafacilitythatcanconvertfromindoortooutdoorspace—70%ofconsumersand60%ofvendorspreferredaconvertiblebuildingwhereoneormorewallscouldopenormove.Manyconsumerrespondents(52%)wantoutdoorspaceforanopenairmarketwhilesome(30%)liketheconceptofacompletelyenclosedfacility.Withinthefacilityitself,29%ofvendorrespondentssaidthattheypreferredpermanentstallsand23%preferredtemporarystalls.

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

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.

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.

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.

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.

• 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.

• 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.

ofthespaceprogram,includingadiscussionofthekeyvariablesaddressedandtablesoutliningfurtherdetailsareincludedinAppendixA.

Figure3-1.ConceptualSpacePrograms

Concept1:Small

Concept2:Medium

Concept3:Large

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

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

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.

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.

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

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

• 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.

SaturdayMarketandtheLaneCountyFarmersMarket,theCityofEugene,andLaneCounty)toexplorethisconcept.

Other Considerations

Whatevergovernanceoptionisultimatelyselected,theorganization(s)mustbequalifiedtomanagethemarket.TobequalifiedtomanageandgovernthepublicmarketindowntownEugene,thegoverningorganization(s)should:

• haveexperienceworkingwithinthelocalcommunity;

• possessaworkingknowledgeofthelocaleconomiccontextinwhichthepublicmarketwilloperate;

• maintainapositive,mission-orientedimage;

• retaintheprovenfinancialcapacitytomaintainviablemarketoperations;

• beableandwillingtoincludemembershipandvendorinputindecision-makingprocesses;and

• becommittedtothecontinuedenhancementanddevelopmentofthemarket.

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.

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.

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.

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

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

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

NetRevenueLowExpense $144,748 $335,000 $687,159HighExpense $27,448 $217,700 $569,859

NetRevenueLowExpense $36,409 $224,600 $576,759HighExpense -$128,741 $62,450 $414,609

NetRevenueLowExpense -$48,241 $142,950 $494,639HighExpense -$254,091 -$62,900 $288,789

Concept1-Small

Concept2-Medium

Concept3-Large

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.

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

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

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

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

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-

evenanalysisprovidesapreliminaryindicationofwherefeeswouldneedtobesettocoverexpenses.WenotethatthesefeeswouldbeinadditiontoanyfeesthatvendorsalreadypaytotheLaneCountyFarmersMarketortheSaturdayMarket.

Therelationshipbetweenthesethreevariablesissimpleandpredictable.Loweroccupancyratesmeanlessrevenuewhichimplieshigherfees.Higheroperatingandmaintenanceexpensesalsosuggesthigherfees.Inmanyrespects,feesarethedependentvariableinthisanalysis.Ourassumptionisthatfeeswillbesetatalevelthatcoversannualoperatingexpensesandprovidessufficientcapacityforbothregularandlong-termmaintenanceactivities.SensitivitytestinginAppendixAhelpstoillustratethispoint.

Otherareasofriskinvolvemorefundamentalissuesthatcannotbeincorporatedintoafinancialmodel.Itisclearthatvendorswillhavetoprovidefundsforoperatingandmaintenanceexpensesforthepermanentfacilities(bothindoorandoutdoor).Currently,feesassessedtoLaneCountyFarmersMarketandSaturdayMarketvendorsgodirectlytosupportthetworespectiveorganizations.Whilewedidnotobtainprecisefigures,itappearsthatlittlerevenuecollectedbythetwononprofitsgoestopayformaintainingtheParkBlocksorfacilities.Assuch,vendorswillhavetobewillingtopayfeesthatgotowardrunningthepermanentpublicmarketasawhole.Ifvendorsareunwillingtopayfees,thentherewillbeobviousimplicationsforthefeasibilityofapermanentmarketspace.

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

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.

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

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:

• 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

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

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.

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.

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.

• SeekAdditionalFunding,ifapplicable:UrbanRenewalfundswillbeusedtoprovideamblefundingforanycapitalimprovementsthatwillbeneeded.Nevertheless,ifadditionalfundsareneeded,thesemoniesshouldbesoughtafter,potentiallythroughfundraisingcampaigns,duringorsoonafterthedesignphase.

Figure6.1:SequencingofNextSteps

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.

• 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.

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

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

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

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

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

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

FeeStructure3

TotalLeasableSpace

Fee/SFperMonth

Fee/SFperYear

MonthlyRent

perUnit

AnnualGrossRent

Daily%ofSales

perVendor

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

FeeStructure3

TotalLeasableSpace

Fee/SFperMonth

Fee/SFperYear

MonthlyRent

perUnit

AnnualGrossRent

Daily%ofSales

perVendor

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

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.

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

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.

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

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$

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$

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.

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$

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

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

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

%ofBaseExpense

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

willnotbewillingtoforfeitmorethan10%oftheirsalestothepublicmarketevent.

TableA-18:PercentofReceiptFeesRequiredBasedonAverageDailyRevenuePerVendor

Willamette McKenzie Columbia Willamette McKenzie ColumbiaMinimum%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

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.

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.

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.

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

Financial and Governance Structure

TheWesternNorthCarolinaFarmersMarketwasfirstopenedin1977andisapublicly-ownedmarket,operatedbytheNorthCarolinaStateDepartmentofAgricultureandConsumerServices.

Themarketisopensevendaysaweekduringnormalbusinesshours(8amto6pmfromAprilthroughOctoberand8amto5pmfromNovemberthroughMarch)andismaintainedyear-round.Itisfinancedthroughrentalfeesfordailysalespacesandlong-termleasesforretailandwholesalebusinesses.Theoperationsarefinanced75%throughthemarket,and25%throughappropriatedfundsfromtaxdollars.

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

nurseryforgardening.Thelocalcommunitycollegeparticipatesina“ChefSchool”onsite.

Successes and Challenges

WesternNorthCarolinaFarmer’sMarketfaceschallengessuchascompetitionwithgrocerystores,andthefarmers’limitedknowledgeaboutgovernmentregulations.Ontheotherhand,promotionoflocalNorthCarolinaproductsisamainsuccess.

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

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.

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.

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.

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

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

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.

incomeindividualsandhouseholdsadditionallytakesplacetohelpeducateandbreakthestigmathatlocalfoodismoreexpensive.

FigureB-4:OutdoorvendingatBoulderCountyFarmersMarket

Source:BoulderCountyFarmersMarket

FigureB-5:IndoorvendingatLongmontBoulderCountyFarmersMarket

Source:BoulderCountyFarmersMarket

BoulderCountyhasabustlingpublicmarketprogramrunbya501(C)3nonprofitcorporation.Theorganizationisgovernedbyaboardofnine,volunteerdirectorsservingthree-yearterms.Themarketemploysanexecutivedirector,amarketsmanager,twomarketcoordinators,afinancemanager,amarketingmanager,andapositionincommunityoutreach.Incomeisgeneratedfromvendorfees(includingbothapplicationfeesforcertainindividuals/organizationsandspacefees),which

coversthecostofmarketoperations.Themarketdoesnothaveotherfinancialsourcessuchasgrantsorsubsidies.

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.

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.

ThemarketisanotapermanentadditiontothedowntownofBurlingtonandthereforedoesnothaveaspecificallydesignedstructure,howeveritresemblesthecurrentEugenefarmer’sandholidaymarketswithmanyfolduptablesandpeakedtentsvisible.InthepasteightyearstheBurlingtonmarkethasgrownfrom35vendorstoover100vendorsandreceivesover10,000visitorspermarketday.Thesuccessofthismarketcouldwarrantapermanentlocation,however,fundingforaconstructionproject,publicsupport,andsupportfromthelocalgovernmentisunavailableatthistime.29

Amarketanalysisoftheclientelethreeyearsagofoundthatlessthanfivepercentcamefrommorethan10milesaway(excepttourists),andmostcustomerswalktothemarketbecausethereislimitedparkinganditisencouragedbythemarketleadership.Moreover,themarketreceivesmoretouristbusinessfromvisitorstoBurlingtoninthesummerthanitdoesinthewinter.

TheBurlingtonFarmer’sMarketisanonprofitfarmer’smarketstartedbyvolunteers.Themarketchargesannualmembershipfeesandchargesperspace,28NationalGardeningAssociation,http://www.garden.org/regional/report/description/full/1429http://www.burlingtonfarmersmarket.org/

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.

Themarketoffersthreemaintypesofproducts:agriculturalproduce,crafts,andpreparedfoods.Themarket’scharterregisteredwiththecityregulatestheproportionofvendorsto55percentagricultural,notmorethan30percentcraftsandnotmorethan30percentpreparedfoods.Noconsignmentisallowedatthemarket.

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

handmadebyvendors.Ifaviolationisdetermined,themarketwillbantheviolatorsfromsellingatthemarketinthefuture.ThemarkethasneverhadtoaddressthatwhethereverythingavendormakescomesfromVermont,mostvendorsalreadydothat.

FigureB-7:OutdoorvendingatBurlingtonFarmersMarket

Source:BurlingtonFarmersMarket

Negativesarebasedinpublicperceptionthatthefarmer’smarketisturningintoastreetfairthatwantstocapitalizeontouristdollarsbysellingmorepreparedfoodsinsteadofproduceproducts.However,thisseemsunlikelyastheproportionoftouristvisitorstolocalbusinessisminisculeascitedonthemarket’smainwebsite.

IfBurlingtonweretobuildapermanentfacility,thetwobiggestneedsordesireswouldbeforstoragespaceforvendors(includingdrystorageandrefrigeration),andofficespaceforthemarketstaffandforboardmeetings(themarketiscurrentlyrunoutofthemarketmanager’sapartmentandaparkinggarage).

Madison, WI - City of Madison Farmer’s Market Local Context

Madison,thestatecapital,isthesecondlargestcityinWisconsinandlargestinDaneCounty.Madison’spopulationisestimatedat245,691,whichisslightlylargerthanEugene.MadisondifferssignificantlyfromEugeneinclimate.Madisonhasahumidcontinentalclimatewithvariableweatherpatternsandlargeseasonaltemperaturefluctuations.Summertemperaturesaverageinthehigh70sto80swhilewintertemperaturesaveragearound10degrees.

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

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.

InMadison,themixofmerchandiserecommendedinthebusinessplanislargelyfood-based,runningthegamutfromfarmersandwholesalerstovalue-addedproducersandacafé/restaurant.

TheWestHallwillconsistofpermanentstallsthataredesignedforfreshandpreparedfoodsellerswithfullutilityaccess.Thesestallswillsellfreshfoods,preparedfoods,andlimitedartsandcrafts.

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.

ThePPSstudyestimatedeconomicimpactsofthemarketwouldreachalmost$220millionovera10-yearperiod.Thesenumbersincludeonlyfreshfoodsales,soeconomicoutputcouldactuallybesignificantlyhigher.Basedonfinalconceptualestimatesfora64,850sq.ft.publicmarketstructure,thePublicMarketwouldincurcapitalcostsof$13.5millionandstart-upcostsof$0.7million,totalingto$14.2million.

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.

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

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

eventstoraisemoneyOFMcapitalimprovement.OFMalsosaves.5%ofitsrevenueforincidentalprojectsandimprovements.

FigureB-11:Ahighceilingprovidesroomforasecondstoryexpansion

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/

FigureB-12:Onsitemarketoffices

OlympiaFarmersMarkethasfourfulltimestaff:Anoperationmanager,ageneralmanger,anadministrator,andamaintenanceperson.OFMalsocontractswithaprivatefirmforsecurity,particularlyfortrespassing,inadditiontosomeservicesitcontractsfromthecity.

TheparticipantsoftheOFMcomefromthesurroundingcounties.Therearemanythatspecializeinlocalproduce,butsomesellplantsforpatronstostarttheirowngardens.Fruitisresoldatthemarketfromoutsidethetri-countyarea.Therearealsoavarietyoflocally-raisedandharvestedmeatsandseafoodespeciallyfish,clams,andoysters.Preparedfoodincludesbakeries,deserts,andseveralrestaurants.Therearealsoseveralvendorsthatcraftartisanalgoods,similartothoseoftheEugeneSaturdayMarket.Acoveredstagewithalivebandroundsouttheexperience.

FigureB-13:Highceilingsandwidewalkwaysprovideanopen,airyfeel

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

Intervieweesexpressedfrustrationsaboutdealingwiththelimitationsofthesite,includinglimitedstorage,lackofvendorparking,andsecurityconcernsaroundunhousedpersonsoccupyingthesiteoutsideofmarkethours

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

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

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.

MapD-1:GrocerystoresandmarketswithinonemileofDowntownEugene

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.

• Respondentsalsoindicatedinterestinawidevarietyofotheramenities.Notablewrite-insuggestionsforamenitiesinclude:fixedanchorsforoutdoorvendingspace,utilityaccess,entertainmentspacesandstages,familyspace,andagain,bathrooms.Whileutilityaccess,familyspace,andentertainmentspacewereincludedinCPW’sinitialamenitymenu,theinclusionofanchorsforoutdoorvendorsisanimportantadditiontoinitialsuggestions.Thereiterationofbathroomsshowshowstrongthedesireisforrespondentstomoveawayfromthecurrentsystemofimpermanentrestrooms.

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

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.

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

• 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?

FigureE-3.Areyouinterestedinexpandingyouroperationstosellproductsyear-roundinalocationindowntownEugene?

Ofthe180respondents,85(47%)saidyestheywouldbeinterestedinexpandingtheiroperationsyear-roundinadowntownEugenelocationand15(8%)saidtheywouldnotbeinterested.

FigureE-4.Duringwhichseasonswouldyoubeinterestedinsellingproductsatthepublicmarketfacility?Selectallthatapply.

FigureE-5.Whichseasondoyouconsidertobeyourpeakseason(s)?Selectallthatapply.

FigureE-6.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?

• Operationalconcernswithdailyvendingandvendorsoffseasons• ConcernswithchangingastableSaturdayMarket• Concernswithfeespossibleincreasing• Facilityamenityconcerns

FigureE-8.Ifyouhadtopickoneofthefollowingstylesofvendingspace,whichwouldyouprefer?Pleaseselectonlyone.

FigureE-9.Whichofthefollowingvendingarrangementswouldyouprefer?Pleaseselectonlyone.

TableE-1.Pleaseindicateyourlevelofinterestinusingthefollowingfacilityamenities.

VendingAmenityNo

InterestLow

InterestModerateInterest

HighInterest

Indoor/outdoorvendingspacethathasbothindoorandoutdoorplacestodisplaygoodsandinteractwithcustomers

9% 4% 24% 61% 158

Movabledisplaytables 30% 13% 26% 30% 148Permanentdisplaytables 46% 19% 24% 11% 144Permanentrefrigerateddisplaycases 85% 4% 4% 7% 138

TableE-2.Pleaseindicateyourlevelofinterestinusingthefollowingfacilityamenitiesrelatedtostorage(inacentrallocationremovedfromyourvendingspace).

Isthereanythingelseyou’dliketotellusaboutyourpreferencesforthedesignofapermanentpublicmarketfacilityandtheamenitiesitmighthave?

Commonthemesthatemergedfromthisquestionwere:

• Interestinbathrooms• Desireforabright,vibrant,andairyspace• Naturallightandmanywindows• Securityprovisions:anti-theft,storage,unhousedpeoples• Locationconcerns:downtown,byLCFM,bytheriver,orotherplace

StorageTypeNo

InterestLow

HighInterest

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

HighInterest

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

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

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?

Ofthe158respondents,152(96%)saytheynormallyoccupya8’x8’boothattheSaturdayMarketand15(9%)saytheynormallyoccupya4’x4’boothattheSaturdayMarket.Oneperson(1%)indicated“strolling”.

FigureE-13.Pleaseestimateyourgrossannualsales.

FigureE-14.PleaseestimateyourgrossannualsalesfromtheParkBlocks.

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?

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

• 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

• 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.

Market.Severalotherrespondentssaidthattheyoccupya10’by20’space,andafewrespondentsoccupya10’by30’space.

• Supportforamenitieswasmixedamongrespondents.Bathroomswerestronglyfavoredwith95%ofrespondentsindicatingmoderatetohighinterest.Abouthalfofrespondentsexpressedmoderatetohighinterestinloadingdocks(47%),andfoodanddemoeducationalspace(50%).

• Otherdesiredamenitiesthatrespondentsidentifiedinthesurveyincludedisplaytables(bothpermanentandmoveable),displaycasesforproducts,andavarietyofstorageoptions.CPWandtheResourceGroupwillcontinuetoassesspotentialamenitiesanddesigncharacteristicstodeterminewhicharethemostdesired.

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

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.

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

FigureE-21.PleaseindicateyourlevelofinterestinhavingtheabilitytousethepublicmarketspacetodropoffCSAdeliveriesforcustomerstopickup.

Isthereanythingelseyou'dlikeustoknowaboutyourinterestinusingapermanentfarmers’marketfacility?

• Outsidefoodcourtwithcoveredseating• Onelocation/siteforoutdoormarkets• Coveredandheated• Interestdependsonboothcharges,location,andparking(accessibility)

FigureE-22.HowdoyouthinktheLaneCountyFarmersMarketindowntownEugenewillchangeoverthenext10years?

PleaseExplainYourResponse

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

• 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

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%

%ofRespondentsn=42

0% 5% 10% 15% 20% 25% 30% 35%

%ofRespondentsn=42

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%

%ofRespondentsn=43

0% 5% 10% 15% 20% 25% 30% 35% 40%

%ofRespondentsn=40

Ofthe42respondents,20(45%)saidyestheywouldbeinterestedinexpandingtheiroperationstogrowproductsyear-roundiftherewasdemandforthemandaplacetosellthem,6(14%)saidtheywerenotinterested,and12(29%)saidtheydidnotknow.

Isthereanythingelseyou’dlikeustoknowaboutyourcapacitytouseapermanentfarmersmarketfacility?

• Themarketwouldhelpbusinessexpansionandlocalfarmers.• Interestinthelocationofthemarket,sizeofthemarket'sfootprint,

customer-parkingopportunities,increasedfoottrafficandvendorsales• Despitedemandforyear-roundproducts,itmaybedifficulttoproduce

everyyear,especiallydependingontheclimate/seasons.• Focusondetailsofthefacility(“thedevilisinthedetail”)• Costisabigfactorindeterminingthefacilitiesuse.

FigureE-31.Whichofthefollowingvendingarrangementswouldyouprefer?Pleaseselectonlyone.

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

Isthereanythingelseyou'dliketotellusaboutyourpreferencesforthedesignofapermanentfarmer’smarketfacilityandtheamenitiesitmighthave?

Amenitiesthatwereimportantincluded:

• Propanestovesanddeepfryerswithinstands• Attractiveoutdoorspaceandatmosphere.• Customerseating• Electricaloutlets• Foodgrownon-site:communitygarden,rooftopgarden,etc.

VendingAmenityNo

InterestLow

InterestNeitherInterestedNorDisinterested

ModerateInterest

HighInterest

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

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

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

FigureE-33.Pleaseindicatethetypesofproductsyoucurrentlyoffer.Checkallthatapply.

FigureE-34.Pleaseindicatethemarketswhereyoucurrentlysellproducts.Checkallthatapply.

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%

%ofRespondentsn=26

andoneperson(2%)indicatedelsewhereinOregonwithnorespondentsindicatingLincoln,Marion,Polk,orDouglasCountyastheirprimarylocation.

FigureE-37.Pleaseestimateyourgrossannualsales.

FigureE-38.PleaseindicatethepercentageofyourannualgrosssalesthatisconductedattheLaneCountyFarmersMarketindowntownEugene.

0% 5% 10% 15% 20% 25% 30%

20-39%

40-59%

60-79%

80-100%

%ofRespondentsn=20

FigureE-39.CurrentlyvendorsattheLaneCountyFarmersMarketpayafeeof$40per10x10spaceperweekinadditiontotheannualmembershipfeeof$55/year.Ifyouweretopayfortheuseofspaceatthepermanentmarketfacilityandassociatedamenities(electricity,wateretc.?)whatpaystructurewouldbethebestforyou?

Istheresomeotherfeestructurethatyouthinkwouldworkforvendorsatapermanentmarketfacility?

• Feesvaryingaccordingtospecificlocation(i.e.cornerboothspacescostingmore)

• Feebasedonatypeofmeritsystemsuchasfactoringinvolunteerwork,etc.

• Combinationofpercentageofsalesandfeesbasedonsize,location,andamenities

• Flatfeebysizeandlocation

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

FigureE-42.Ifapermanentfacilitywerebuilt,howmuchwouldyoubewillingtopayasanannualfeetohaveyourproductssoldonconsignmentbyathirdparty?

Isthereanythingelseyou'dliketotellusthatwehaven'talreadyaskedabout?

• Attractingcustomersshouldbethetoppriorityasthiswillincreaseprofitsandsupportvendors’abilitiestopaymarketfees.

• Smallerfarmsmayonlybeabletosell1-2daysperweek.• Surrounding/anchorbusinessesatthemarketwouldbebeneficialsuchas

foodcarts,restaurant,etc.• Itisimportanttokeeptheoutdoorandindoormarketononesitethatcan

accommodateboth.• Sometypeofaggregatorforwholesalerpurchasesoffarmproductsis

important.

eugene downtown public market feasibility - final report

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