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HomeMy WebLinkAboutCSD-06-065 - Market Update ) R Community Services Report To: Date of Meeting: Submitted By: Community Services Committee May 15, 2006 Keith Baulk, Director, Enterprise Division, 2393 Prepared By: Keith Baulk, Director Enterprise Division Don Chapman, Interim Market Manager, 2388 all Ward(s) Involved: Date of Report: Report No.: Subject: May 1 0, 2006 CSD-06-065 MARKET UPDATE RECOMMENDATION: For information and discussion. BACKGROUND: Construction of the new Kitchener Market commenced in 2003 as a private-public partnership with the Barrel Works group. The part-time Market operating on Saturdays opened in the new location two years ago in May of 2004. The full-time Market opened six months later in October of 2006. There have been many positive aspects of the new Market development in its initial stages. However, there have been a number of challenges. The purpose of this report is to update Committee on the progress and positioning of key elements in moving the Market project forward on the immediate term. REPORT: Updates on 6 key elements of the Market and Market Block are provided in this information report. The 6 key elements are as follows: 1. Permanent Market staffing 2. Barrel Works Condominium development 3. Barrel Works Commercial development 4. Market produce vendor winter solution 5. Wednesday Market program 6. Permanent full-time vendor/tenant recruitment A brief overview on the progress of each is as follows: 2 1. Permanent Market Staffina The new full-time Market Management team was announced in early May. Karen Killeen, the Market Manager, and Ingrid Schiller, the Market Business Development Supervisor, will begin their new duties in early June. They are extremely skilled and energetic individuals who will undertake the strategic program development and administrative functions necessary to move the Market forward. Karen is currently the General Manager of the Grand Theatre in Kingston, ON. She has held a number of cultural facility management positions along with experience in event programming and development. Ingrid has a strong marketing, communications, sales and program development background. She has spent the past decade working in media relations and promotions. She is currently working with CTV South Western Ontario, Inc. in Kitchener. She was immersed in the Market culture as a teenager working with her grandparents who operated a delicatessen in the old Kitchener Farmers Market. Staff is currently developing a transition plan for the new management team. 2. Barrel Works Residential Condominiums One of the key features of the original private-public partnership was the commitment by the developer, the Barrel Works Group, to develop a 68 unit condominium on the Market block. The condominium development is well underway. The basic structure is complete and exterior walls and interior work has commenced. Barrel Works has advised that a total of 30 units has been pre-sold and sales continue during the construction phase. It is expected that purchasers will begin to take residence commencing this fall. 3. Barrel Works Commercial DeveloDment The Barrel Works Group has advised that the list of tenants is as follows: · DAVE FM Radio Station · Barrel Works Market Residences Inc. · Moussa Salon · D'vontay Hair and Beauty Supply · Downtown East and WRPA Division 1 Community office · Sure Hair International · MMMC Architects 4. Winter Solution Based on discussions with vendors during the past month, the majority favour the continued use of the P1 parking area as the permanent solution for the winter months. The vendors were polled individually with the following results: · 9 in favour of remaining in P1 area for the Winter · 2 in favour of a winter enclosure for the covered area · 2 are uncommitted and/or would remain in P1 with some policy adjustments 3 While there is not unanimous consent, the vast majority support the continued use of P1 and staff feel this solution is positive and is also the most financially responsible one. The vendors have identified a list of issues for consideration below. In order to ensure that we meet the needs of vendors and the shoppers, staff will undertake a process, which will see a vendor committee formed to review the following areas in order to assist staff in developing the most efficient method of operating from this space. The proposal will also be vetted through a selection of market customers in order to ensure that their needs are being addressed. Areas of consideration: A. Operational process: 1. Dates for transition to and from covered area to P1 2. Review of load-in/out process 3. Permanent installation of power and heaters 4. Lighting for P1 5. Painting recommendations 6. Garbage disposal 7. Signage 8. P1 stall layout, booth sizes and locations 9. Customer pickup and drop off area B. Marketina: 1. Advisory group to work with staff to identify additional marketing initiatives and opportunities 2. Development of a vendor recognition program 3. Entertainment/music in P1 4. Produce vendor specific frequent shopper program 5. Vendor specific advertising C. Policv review: 1. Policy for space allocation in P1 in order to ensure equity and consistency with space vendors have in the covered area. In summary, at this time, the current winter solution is favoured by the majority of the vendors. Further, the process to provide input as indicated above will result in the best long term winter solution for both the vendors and the shoppers. 5. Wednesday Market Proaram The Wednesday Markets will commence on Wednesday, June 7, 2006 and will operate on a weekly basis until October. The program will be revised in 2006 in two ways: it will be held on King Street and the square in front of the Market. It will operate in place of the lower level and covered area. The covered area will now serve as the rain location. The second revision is the Market will operate between the hours of 11 :00 am - 7:00 pm to better serve both downtown employees and local residents. These times were most favoured in a recently completed survey of Downtown employees. 4 This concept will replace the lower level operation, creating a "street market" feel on Wednesdays. It also creates a much more visible Market and has a better linkage with the upper full-time Market vendors. This will also create a much better environment because it is further removed from the condominium construction area. Two (2) of the downstairs vendors have been recruited to fill the space on the upper level (Bast Cheese and Sprolls Bakery). Overall, the goal is to take advantage of the nice summer weather and create a contiguous highly visible market that better suits the shoppers and vendors. 6. Vendor/Tenant Recruitment The City has engaged the services of Cam Hawkins and Associates Inc. to provide consulting services leading to securing a full-time permanent tenant(s) for the vacant upper level space at the Market. The company has 25 years experience in developing solutions to improve economic return and improve user satisfaction in hospitality, tourism and recreation facilities. They have recently completed work for the City of Kitchener in helping develop a successful operating outcome for the KMAC upgrade program. In addition, they have aided in the successful recruitment of full-time tenants for the Oshawa Jubilee Pavilion Project, Burlington Waterfront Park and LaSalle Pavilion. Cam Hawkins and Associates will be responsible for the development of a leasing strategy, identification of potential tenants aligned with the strategy, investigating potential interest, completing RFP documents and processes and assist in securing tenant(s). They will work closely with the new management team in undertaking the process. Each of these elements is considered a short term priority. New Market staff will develop a 5 year plan for presentation in early 2007 that will outline a program to evolve the Market and Market District over the longer term. FINANCIAL IMPLICATIONS: None related to this report. All programs, projects and activities are funded within approved budget envelopes. CONCLUSION: We are pleased to see progress in these areas. This kind of incremental progress will help evolve the Market and Market block. It will still take time but these initiatives are helping move the Market block project in the right direction. Keith Baulk Director, Enterprise Division AP