Loading...
HomeMy WebLinkAboutCSD-07-063 - Market Update - Transitional Strategy Shift ) R Community Services Report To: Date of Meeting: Submitted By: Prepared By: Community Services Committee June 18, 2007 Ward(s) Involved: Date of Report: Report No.: Subject: Keith Baulk, Director, Enterprise Division, 2393 Cam Hawkins, Consultant, Karen Killeen, Manager Market, 2297, Keith Baulk, Director, 2393 all June 11 , 2007 CSD-07-063 MARKET UPDATE - TRANSITIONAL STRATEGY SHIFT RECOMMENDATION: That staff continue to investigate the concept of an Arts and Culture Incubator Centre to maximize the use of the upper level Market space on a transitional basis, as outlined in report CSD-07-063. EXECUTIVE SUMMARY The Kitchener Market is serving the City extremely well. The Saturday Market serves thousands of people across the Region with nearly 1 00 vendors selling produce, meats, prepared foods and crafts. The Saturday Market has been a staple for nearly 160 years and summer Wednesday markets continue to evolve. We honour the Market as it is an integral part of our community's cultural history and identity. It continues to provide a core service to our residents and guests. In 2003 when the new market facility was built, the City aspired to grow the business quickly into a 6 day/week enterprise. At the time, success was to be measured on the Market's capacity to have full vendor occupancy every day and to generate sufficient revenue, through the sales of market goods to regional and area residents. We have learned that growing any business this quickly although laudable, is very optimistic. As with the majority of our downtown retail businesses, the positive outcomes of the anticipated downtown residential intensification are only now beginning to show their benefits. With increased loft development providing housing for a growing, mixed population and their accompanying demand for services, we are very positive that the investment in the Kitchener Market facility will be actualized, over time. In response to achieving these measures of success, staff have explored a range of strategies from both traditional to more "out of the box" that may serve the community's interests. Over the last 8 months, staff have conducted investigations and conducted recruitment strategies to test the inclination of the retail and food vendors to occupy the upper Market. They have also examined several options that propose alternative uses for the upper level space and have consulted with key stakeholders to determine the feasibility of those options. CSD-07-063 - 2 - In this interim period while intensification continues, staff suggest that we focus our measuring of success on factors that if achieved, will serve as catalysts for building the Market's audience base throughout the week by: increased alternative use occupancy of space that produces increased public and community traffic for activities. As the downtown resident community continues to grow, the Market has a role to play in fostering exciting community interactions, public and cultural events, and building positive 'word of mouth' about the facility, all while assisting in the regeneration of this east end gateway to the downtown. Timing has proven to be of great assistance in this regard with several partnerships and alignments that will evoke community regeneration through creative collaborations and creative intersections. These include: · Arts and Culture Cluster's Development Framework; · Economic Development's strategic focus is on building Downtown Vitality and providing opportunities to support Creative Talent retention; · Centre Block's current proposal to include many creative live/work studio spaces; · Prosperity Forum's "Call to Action" as per their proposal to build a cluster corridor from Globe Studios to a 'hub' at the Kitchener Market and continuing on to Kitchener's Centre in the Square; Therefore, the purpose of this report is to ascertain Council's support for staff's further investigation of utilizing the open upper level Market space on an interim, transitional basis to serve as an Arts and Culture Incubator Centre - a space that continues to honour the tradition of community connectiveness, creativity and industry that is in keeping with the spirit of our urban market tradition. BACKGROUND: The new Market was built in 2003 with a view to serve as a full time urban market and to serve as an anchor or east end gateway facility in response to the anticipated and forthcoming projected success of Kitchener's downtown. Initially, a number of full time food related retailers and prepared food vendors came on board. The prepared food vendors continue to operate but the food retailers were not able to sustain their business and finally left. Market Research The City engaged a consultant to test if food or Market related retail would be viable on a full time basis, in the underutilized space on the upper level. The City's consultant, Cameron Hawkins & Associates also tested the market to determine if there was current interest from small, full time retail tenants. While this approach was similar to the initial retail strategy for the Market that proved unsuccessful, the key difference was that the food only limitation was removed and prospective retailers were sought across a broader spectrum of categories. Through a Request for Proposal process, a number of potential full time retailers expressed interest but they were not of sufficient numbers, fit and/or quality to support further effort in this direction. As a result, the approach was deemed not to be viable in the short to intermediate term. CSD-07-063 - 3 - The consultant and staff are still confident the goal of a successful full time urban food market is achievable but it appears its' time has not come as yet. The Downtown is rapidly evolving but it does not appear that there is a critical mass sufficient to support this type of venue at this time. As a result the consultant and senior city staff agreed a transitional strategy shift was necessary to create an interim successful operating structure. After some dialogue, all agreed a move away from retail to a concept of an Arts and Culture Incubator Centre may be very viable on a number of levels especially as a longer term interim strategy for space utilization. An update on progress and activity necessary to pursue this concept is provided in the report. REPORT: The purpose of this report is to determine Council's support for further investigation of utilizing the open Market space on an interim basis as an Arts and Culture Incubator Centre. One of the key issues that must be understood is that this strategy temporarily defers the Market goal of moving more toward a profit centre but instead results in a tremendous transitional Arts and Culture cluster support facility. The development of the Arts and Culture Cluster is one of three cluster strategies that have been deemed to be a priority focus for the City in continuing the rebirth of the downtown. The Arts and Culture Incubator strategy also links very well with many of the initiatives the City and others are promoting to create a vibrant downtown. This strategy can support and is aligned closely with the following initiatives: · Culture Plan II - Focus Project #1 Arts and Culture Clustering o Artscape Report - Development Framework (April 2007) · Prosperity Council Creative Collaborations Forum (the announcement on June 11 th that there will be support for an art-making corridor in east Kitchener that would include the Market is exciting and timely. This creates opportunities to build on an accepted vision and perhaps allow for access to funds to support the artists or infrastructure). · Economic Development's Downtown Vitality strategy · Economic Development's Talent Retention strategy Transitional Strateov Shift The concept of a transitional use of the Market space is solid on many levels. It still allows for the City to move to the ultimate goal for the Market of implementing a full time urban food Market but at a time when there is sufficient support to sustain that approach. The City's consultant, senior staff and Market staff agreed the shift away from retail on an interim basis to an Arts and Culture Incubator Centre could produce the following outcomes: a) Excellent arts community use of the underutilized upper Market space filling an identified need b) Provide a level of animation to the building over a greater number of hours each day c) Support various Corporate and Community strategies and reports relative Arts and Culture as a key producer of vitality in the Downtown. d) Result in new arts infrastructure that increases access to the arts for residents and visitors. e) Provides a wide range of programming opportunities that can increase visitation to the Market. f) Is a proven strategy for the revitalization of urban areas. CSD-07-063 - 4 - Concept Model Overview For greater clarity, an Arts and Culture Centre/Incubator could include the following components: a) professional artist full time work spaces b) work space for non-profit arts groups c) public gallery d) cooperative arts retail space e) open special event, performance or reception space f) artist-in-residence program In total up to 9,000 sq.ft would be available for this concept. Further research and investigation would be required to determine which of these components are viable and hence supportable. Initial Staff Response Market staff have responded to the potential of moving in this direction. Staff have reviewed various reports, toured current Arts and Culture Centres and Incubators in other municipalities and held meetings and conversations with a number of Arts organizations, individual members of the Arts community, funding bodies and other City staff. An outline of the activity undertaken to date is attached as Appendix #1 . How would Success be Measured The program is very conceptual at this time and much work is required to fully define success measures. However at a high level, success would be defined based on the following: 1. Proven support for the concept in the arts community 2. Redesigned space supporting the ultimate concept 3. Visual presence of activity and space utilization (animation) for visitors to the Market 4. Full lease-out of the rentable space 5. Active programming occurring on a regular basis 6. Revenues produced 7. Engaged Arts community The business case will provide details with respect to these success measures. Next Steps If Council supports the proposed direction, staff will undertake the following steps in order to prepare a business case for Council's consideration in August: 1. engage a project team 2. define the vision and program components 3. develop stakeholder engagement opportunities 4. define the need and rationale 5. determine tenant and licensee requirements 6. develop conceptual development plan(s) 7. prepare capital forecast and operating budget scenarios 8. analyze and recommend any operating models and governance 9. scope funding sources 1 O. propose an implementation plan CSD-07-063 - 5 - The business case will provide a detailed overview of the demand analysis, facility requirements, budget requirements and overall implications of moving an Arts and Culture Incubator Centre strategy forward. FINANCIAL IMPLICATIONS: The financial implications of this strategy will be outlined in the business case to be presented in August. There are some funds available in the Market capital envelope to assist with implementing the strategy. However it is likely additional start-up funding may be required. COMMUNICATIONS: Initial stakeholder engagement has occurred with key Arts organizations and some leading Arts specialists. A more formalized stakeholder engagement will take place to assist significantly in the formation of the concept. CONCLUSION: This is an exciting opportunity to utilize the Market to further the downtown's rapidly emerging cluster strategies. While the proposed Arts and Culture Incubator concept would not produce the same revenue opportunities as a successful retail tenant approach, it does align better with the current realities of east downtown, and at the same time supports key City initiatives. At the very least, it would result in an excellent transitional use of the Market space recognizing that the time will come at some point in the future when the site will support a full time urban food Market. Keith Baulk Director Enterprise Division, Community Services AP CSD-07-063 - 6 - APPENDIX 1 STAFF RESPONSE - STRATEGY SHIFT Review reports and studies to date including: · Cameron Hawkins & Associates report · Artscape, City of Kitchener Arts & Culture Cluster Development Strategy Framework · Culture Plan II Review and tour of current Arts Cluster Facilities including: · Case Goods Warehouse & Cannery Buildings in Distillery District, Toronto · 401 Richmond Arts Centre, Toronto · Harbourfront Centre, Toronto · Globe Studios, Kitchener · Firehall Studios, Kitchener · 270 Sherman Creative Industries Complex, Hamilton · The Print Studio, Hamilton · James St. North Arts District, Hamilton Preliminary meetings and conversations to date with: · Arts & Culture Advisory Committee · Waterloo Regional Arts Council · Bruce Rosensweet & Reid Henry, Artscape · Bruce Hutchinson & Melanie Egan, Harbourfront Centre · Erin McKeen, Urban Space/401 Richmond · City of Kitchener Economic Development staff · City of Kitchener Culture and Special Event staff · City of Kitchener, Facilities Management, Building and Fire staff · Department of Canadian Heritage, Cultural Spaces Program · Ontario Arts Council Attendance at Creative Spacemaking Workshops · Artscape Creative Spacemaking - Hamilton · Prosperity/Creative Intersections - Kitchener