Grand Rapids Urban Market Concept Plan &...
Transcript of Grand Rapids Urban Market Concept Plan &...
Grand Rapids Urban Market Feasibility
Study
Market Ventures, Inc. March 2010 1
Grand Rapids Urban Market Concept Plan & Feasibility Study
Public Presentation
March 24, 2010
Study Process
• Advisory Committee
• 125+ interviews – retailers, farmers, food distributors, restaurateurs,
wineries, farmers’ market managers, public officials, nonprofits,
developers, educators, artists, health care, ethnic representatives
• Consumer and farmer focus groups
• Demographic research
• Agricultural census research and farm visits
• Site analysis and selection
• Merchandising concept
• Partnership exploration
• Financial analysis
• Economic impact analysis
Grand Rapids Urban Market Feasibility
Study
Market Ventures, Inc. March 2010 2
What makes a public market successful?
1. Great site
2. Environment
3. Engaged professional
management
4. Culture of public market
shopping
5. Great vendors
Milwaukee Public Market
Granville Island Public
Market, Vancouver
Urban Market Goals
1. To create a dynamic place that attracts the region’s diverse
residents and visitors
2. To strengthen and celebrate Grand Rapids’ local food system
3. To catalyze redevelopment around the Urban Market
4. To provide opportunities to independent entrepreneurs
5. To promote healthy lifestyles and create a model of
sustainable development
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Study
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Demand Analysis Findings
• Overwhelming support and enthusiasm for Urban Market concept, and
belief it will succeed
• Support from Fulton Street Market leadership; secure in their base of
farmers and customers; do not perceive negative impacts
• Awareness of local foods movement and viability of farmers’ markets
• Perception that downtown Grand Rapids is ready for this type of project
and the Urban Market can have a profound impact on the region
• Expect to be big draw for tourists, most of whom arrive by car
1.0 mile
ring
6%
1.0-5 m
band
43%5-20 m
band
31%
Tourists
20%
Source of Demand• Restaurants, institutions interested in accessing
local foods
• Growing ethnic community expected to be
attracted to Urban Market
• Fresh food sales potential: $20+ million from
customers in 20 mile radius and tourists
Key Agricultural Data Findings
Source: USDA Census of Agriculture
y = -15.103x3 + 1344.7x2 - 17135x + 107810
R² = 0.9696
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
1964 1969 1974 1978 1982 1987 1992 1997 2002 2007 2012 2017
Number of Farms - Michigan
Year Farms - MI
1964 93,504
1969 77,946
1974 64,094
1978 60,426
1982 58,661
1987 51,172
1992 46,562
1997 46,027
2002 53,315
2007 56,014
2012 61,932
2017 69,729
Change 2007-2017 13,715
Change % 2007-2017 24.5%
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Study
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Direct Market in West Michigan
y = 3267.8e0.379x
R² = 0.9206
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
1992 1997 2002 2007 2012 2017
Direct Marketing Sales (000s) Region
y = 859.64e0.1227x
R² = 0.8322
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1992 1997 2002 2007 2012 2017
Direct Marketing - # of Farms
Source: USDA Census of Agriculture
Direct marketing in West Michigan
Year # Farms Sales (000s)
1992 1,026 4,681$
1997 1,053 7,914$
2002 1,149 8,385$
2007 1,500 16,239$
2012 1,588 21,739$
2017 1,795 31,757$
Change 2007-2017 295 15,518$
Vendor Research
• Large, diverse farming region with increasing focus on specialty crops and
direct marketing
• Expanding number of small farmers
• Increase in number of farmers’ markets throughout region
• Increasingly sophisticated restaurant community, great interest in local
foods
• High quality, locally owned supermarkets with strong loyalty – nimble
competitors
• Small number but high quality specialty food retailers
• Strong interest from retailers, wineries, artists, and food distributors in
participating in Urban Market
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Site Selection
• Site Criteria
– Visibility from highway
– Accessibility by car, truck, bus and foot
– Surface parking
– Potential to influence downtown revitalization
– Context/supportive adjacent uses
– Size/mixed use opportunity (4 acres)
– Availability and cost
– Reuse of historic buildings
• Over 20 sites identified
• Recommended site
– DDA-owned Sonneveldt
property on Ionia & Wealthy
Sonneveldt siteAdvantages
• Superb highway visibility
• On-site parking
• Easy access via car, bus, foot, and bicycle
• Architectural interest and adaptive reuse
• Extends downtown, helps revitalize “frontier”
• Developable adjacent properties
• Supports nearby investments by nonprofit developers and Catholic diocese
Challenges
• Perceived as outside downtown
• Perceived as unsafe (Heartside Park)
• Off-site parking needed long term
Sonneveldt
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Development Program Principles
• “Center of local food excitement”
• Complexity of uses, with multiple income streams
• Large enough to be regional and tourist magnet but not too
large that exceeds potential demand or supply
• Able to be phased
• Production focus – products made by the vendors
• Address opportunities in retail, wholesale, food production
and education
Proposed Development Program
Program Element Square feet
Permanent market retail and indoor day tables 26,766
Outdoor farmers’ market shed 9,700
Crafts/art studios 9,310
Complementary retail 10,930
Restaurants/wine bar 13,925
Food aggregation and distribution 2,770
Kitchen incubator/food processing 3,910
Education, meeting rooms, community space 6,000
Events, performance, public space 3,750
Rooftop greenhouse 23,915
Wine cave/root cellar 5,000
Housing 19,410
Office 11,680
Basement storage 10,000
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Development Concept – One Story Building
Market Hall
North Market, Columbus, OH
Development Concept – Two Story Building
Restaurant, shared commercial kitchen,
education
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Development Concept – Logan Street Buildings
Retail, produce distribution,
housing/office
Development Concept – Triangular Building
Artist Studios/Market hall expansion
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Study
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Design Concept – Site Plan
Design Concept – Ground Level
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Study
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Design Concept – Second Level
Sustainable Design Elements – Initial Ideas
• Reuse of historic buildings
• LEED or Energy Star rating
• Construction materials
– Reuse of materials
– High R factor insulation
– Green materials
• Energy
– Geothermal
– Greenhouses with heat capture;
green roofs
– Clustered refrigeration compressors
– High efficiency appliances
– Vegetable oil cogeneration
• Waste handling
– Composting and recycling
– Vegetable oil cogeneration
• Water
– Submetered water
– Low water fixtures
• Lighting
– Natural lighting
– High efficiency
• Transportation
– Access to public transportation
– Convenient for walking
– Bicycle racks and promotions
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Financial Analysis
• Reasonable rents
– Permanent vendors: rents = 5.4% of sales
– Farmers’ market: $22/day at peak season
• Market operations
– Multiple income sources
– $2.0 million rents and fees; $1.5 million
operating costs (3rd year)
– Positive cash flow can pay land rent and/or
bonds
• Development budget
– Initial projection: $27 million
– Based on design schematics only
– Land costs not included
Funding Opportunities
• Tax credits
– New Market
– Historic
– Brownfield
– Housing
• Foundations
– Grants
– Program Related Investments
• Individual/Corporate donors
– Naming opportunities
• Federal government
– Legislative appropriation and grants
– Department of Commerce, EDA
• $2.5 mill for Milwaukee Public Mkt
• $2 million for Eastern Market, DC
– Department of Agriculture
• Healthy Food Financing Initiative
– Department of Health & Human
Services
• Community Food & Nutrition
Program
– Department of Energy
• Bonds
• Private investment
Midtown Global Market, Minneapolis
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Study
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Partnership Opportunities
• Education
– Food and nutrition
– Cooking
– Entrepreneurship
– Kitchen incubator
– Gardening and food
production
• Local food system
– Greenhouse gardening
– Area farmers’ markets
– Hub for local initiatives
• Tourism/promotions
– Ag tourism
– Downtown promotions
– Events
• Health
– Wellness initiatives
– Food rescue
Important for achieving goals, creating community loyalty and enhancing sales
Benefit Analysis: Economic
• Economic benefits
– Direct benefits of increased sales
– Indirect benefits from increased purchases of other materials and services
– Induced benefits to household incomes and consumption
• US Bureau of Economic Analysis RIMS II Multipliers
– 11 county region
– Create 1,271 jobs (construction and sales)
– 10 year economic impact: $775 million
• Other economic benefits
– Business creation and support
– Increase neighboring land values
– Complement recent neighborhood investments
• Cathedral Square
• Dwelling Place
• Ionia Avenue entertainment corridor
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Benefit Analysis: Social
• Downtown revitalization
– Expand walkability of downtown
– Dynamic gathering place
• Food access/food security
– Culturally appropriate foods
– Subsidized fresh food (Project Fresh)
• Model of sustainability
– Greenhouse roof
– Construction
– Composting
• Tourism
– Major new downtown attraction
– Elevate national/international
profile of West Michigan foods
• Health
– Access to healthy fresh foods
– Community space for health
education programming
• Regional agriculture
– Engine to support development
and marketing of regional foods
– Place to connect food
professionals with producers
Next Steps
• Secure DDA endorsement of concept
• Predevelopment phase fundraising
• Architecture & Engineering team RFP and selection
• Tax credit planning and syndication
• Partnership development
• Development fundraising
• Concept refinement and leasing