La Marqueta: Examining the Retail Landscape of East … Marqueta: Examining the Retail Landscape of...

La Marqueta: Examining the Retail Landscape of East Harlem

Submitted in Partial Fullfillment of the Requirements for the Degree Master of Science in Urban Planning

Graduate School of Architecture, Planning, and Preservation

Columbia University

May 2013

Abby Scattergood

Abstract: Located in the East Harlem section of Manhattan, La Marqueta was established in the 1930s to house the abundance of pushcart vendors clogging the city’s streets, and is now one of only four remaining public markets in the five boroughs. At the peak of Spanish Harlem in the 1950’s and ‘60s, La Marqueta had more than 500 vendors. As the East Harlem neighborhood has changed, however, La Marqueta has dwindled in size to only eight vendors and continues to struggle to attract customers and support profitable businesses. This thesis will analyze the feasibility of La Marqueta’s future in East Harlem through a neighborhood demographic and retail analysis as well as a comparative analysis of other markets with similar characteristics to La Marqueta. Ultimately, this research will provide recommendations for La Marqueta to support profitable and sustainable businesses and increase foot traffic and sales at the market.

Table Of Contents

I.Introduction p.4 II.Background p.6

III.LiteratureReview p.8 Retail in the Inner City p.8 Latino Communities p.8 Physical Approaches p.10 Public Markets p.10

IV.ResearchMethodology p.12 V. Analysis Chapter 1 - Neighborhood Analysis p.14 Chapter 2 - Market Analysis p.20 Chapter 3 - Comparative Analysis p.25

VI.Recommendations p.30

VII.Conclusion p.36

Bibliography p.37

Appendix p.39

I. Introduction

Theretaillandscapeinurbanareashasdrasticallychangedduringthepast50years.WiththecreationofthefirstsuburbanmallinMinnesotain1956,theroleofthecentralcityasaretaildestinationdiminishedgreatlybytheendofthe20thCentury.Populationshiftstothesuburbsanddisinvestmentinsocalledinnercitiesexacerbatedthisproblemduringthelatterhalfofthe20thCentury,andcreatedhyper-segregatedunderservedareasofferingfew,oroverwhelminglyunhealthy,retailoptionstolocalresidents.Asresidentialpreferenceshaveshiftedbacktourbanareas,under-retailedneighborhoodshavecometothefore,particularlyrelatingtourbanhealthdisparitiesandtheincorporationof“fooddeserts”intotheurbanpolicydebate.Asaresult,under-retailedneighborhoodshavebeenthefocusofpolicyinterventionsduringthepastseveralyears.InNewYorkCity,severalinitiatives,suchasGrowNYC,aimtoaddressthisissuebyprovidingopportunitiesforresidentsoflow-incomeneighborhoodstopurchaselocalproduceatoutdoorFarmer’sMarkets.Infact,marketplacesandpop-upmarketsacrossNewYorkCityhavereceivedasurgeofattentionasuniqueculturalassetsthatcanofferbothartisanalandhealthy,localfoodatdifferentpricepoints.

EastHarlem’sLaMarqueta,oneofNewYorkCity’soriginalpublicmarkets,sitsattheintersectionofthefooddesertandthemarketplace.LocatedunderneaththeMetroNorthraillineviaduct,LaMarquetawasdevelopedinthe1930stohousethearea’smanypush-cartvendorswhowerecloggingthestreetscausinghealthandsafetyhazards.Duringitshey-dayinthe1950sand‘60s,LaMarquetawasacenterofeconomicandculturalactivityfortheburgeoningLatinocommunityandhadmorethan500vendors.OnSaturdays,“themarketteemedwithsomanypeoplethat…youdidnotmovealongofyourownaccord;thecrowdcarriedyou.”(Mindlin2008,p.1).Changingneighborhooddemographicsandconsumerbehavior,aswellastheincreasingavailabilityofLatin-Americanproductselsewherethroughoutthecity,causedthemarket’sdeclineinthe1980s.

TheemergenceofHotBreadKitchenin2011,akitchenincubatorprovidingcookingequipmentandspacetoimmigrantentrepreneurs,hasbroughtsomeattentionbacktoLaMarqueta.Recently,themarketowner,theNewYorkCityEconomicDevelopmentCorporation(NYCEDC),hasalsobegunreinvestinginthemarket,securingtwonewtenantsandissuingarequestforproposal(RFP)fordevelopingadditionalfoodproductionspaceadjacenttoLaMarqueta.Despitetheseefforts,LaMarquetastillhasalongwaytogobeforeitcaneffectivelyserveasashoppingdestinationforeithercommunityresidentsorvisitors.

ThisthesisaimstoanalyzethefeasibilityofLaMarqueta’sfutureinEastHarlembyexamininghowLaMarquetameets(orfailstomeet)theretailneedsofbothitscommunityandabroaderconsumerbase.Although“success”cantakemanyforms,“success”atLaMarquetawillbedefinedasthecreationorretentionofsustainableandprofitablebusinesseswithinthemarketandanincreaseinbothfoottrafficandsalesatthemarket.Thisresearchwillhelpinformideasforimprovingthemarketsothatitcanbemoresuccessfulinthelongterm,includingidentifyingwhatfactorsarenecessaryforthemerchantsatLaMarquetatobecomefinanciallysoundandself-sustaining,andmarketingandcommunitydevelopmentstrategiestodrawmoretraffictothemarket.

Toanswerthesequestions,thisstudywillincludeananalysisofthemarketbothasashoppingdestinationaswellasitsroleasaretailcenterforthesurroundingcommunity.Inmyresearch,Iwillconductananalysisofexistingretailstockwithinahalf-mileradiusofLaMarquetaaswellasademographicandeconomic

analysisoftheEastHarlempopulationtoanalyzeeconomicandshoppingtrendsofcommunityresidents.IwillalsolookatLaMarquetafromamanagerial,physical,andlocationperspectivetoanalyzethemarkets’keystrengthsandweaknesses.IhypothesizethatLaMarquetahasnotbeensuccessfulbecauseitisnotrespondingtotheevolvingdemandsforretailinEastHarlem,andlargerconsumershoppingbehavioraltrends,bothinitsphysicalstructureandappearanceandbythetypesofgoodsbeingsold.ThisthesiswillcontributetotheexistingresearchthroughexaminingtheneedsandconsumptionpatternsinEastHarlemandatLaMarqueta,andidentifyingstrategiesforthemarket’sfuturesuccessanddevelopment.

II. BackgroundIn1936,MayorFiorelloLaGuardiaopenedtheParkAvenueRetailMarket,partoftheMayor’sCitizens

CommitteeonOpenMarketstoenclosethecity’smanypushcartvendorsthatwerecloggingthestreetscausinghealthandsafetyhazards.WiththemigrationofLatinos,andpredominatelyPuertoRicans,toEastHarleminthe1940’sand‘50’s,theareabecameknownasSpanishHarlemandtheParkAvenueRetailMarketbecameknownas“LaMarqueta.”LaMarquetawasoriginallycomposedoffivebuildingsonParkAvenuefrom111thStreetto119thStreet.Atitspeak,themarketwasmadeupofapproximately30,000squarefeetofleasablespaceandmorethan500vendors.ThemarketpredominatelyservedtheLatinocommunityofEastHarlem,CentralHarlem,andSouthBronx,butwasalsoadestinationforthoselookingtopurchaseethnicfoodsthatwerenotavailableelsewhereintheCity.

LaMarquetahasnowdwindledinsizetoonemainbuilding-Building4-ofabout10,000squarefeet,whichhousesthecurrentmerchants,locatedon115thandPark;Lots1and2tothesouth,whichareusedforparking;avacantbuilding(Building3)justtothesouthofthemainbuilding,originallyusedformeatcoldstorageandwholesaledistribution;anopenPlaza(“LaPlacita”)between115thand116th streets,usedoccasionallyasaneventspaceforspecialprogramming;andUrbanGardenCenter,anurseryandgardensupplystoreon116th and Park. LaMarquetawasoriginallymanagedbytheCityofNewYork,butinthelate1960’stheParkAvenueMerchant’sAssociationnetleasedLaMarquetaandbecameresponsibleforthemanagementandmaintenanceofthemarket.Atthesametime,itwasbecomingincreasinglydifficulttoattractnewbusinessesandshopperstoLaMarqueta.Large-scalehousingabandonmentinthe1970sand1980s,particularlyintheSouthBronxandHarlem,severelycrippleddemandbybothvendorsandshoppersatLaMarqueta.Infact,thepopulationofEastHarlemcontractedby43%between1950and1980,fromapeak210,000peoplein1950toaround120,000in1980,illustratingtheextentoftheneighborhood’sdeclineandthedifficultyindrummingupdemand.(CityofNewYork,CommunityDistrictNeeds1993.)

Figure 1: La Marqueta Site Plan

TheCityre-assumedcontroloftheMarketin1985aftertheParkAvenueMerchantsAssociationsurrendereditslease.TheCityenteredintoaleasein1988withaprivatedeveloperformanagementandredevelopmentoftheMarket,buttheseplansalsofellthrough,andin1992theNYCEDCtookownershipandmanagementresponsibilitiesofLaMarqueta.SincetheEDChastakenownership,therehavebeenseveralattemptsatredevelopingandrevitalizingthemarket.Notably,in1996,theCityinvested$1.4MillionunderMayorGiulianitocreatethePlazaandanewfaçadeforBuilding4.Sincethattime,otherlarge-scalerevitalizationplansbyboththeEDCandcommunitygroupshavebeenproposed,althoughnothinghastakenholdduetolackoffundingandconvergingpoliticalinterests.

OneofthemostnotableplansforredevelopmentoftheLaMarquetasitewasproposedbyHarlemCommunityDevelopmentCorporation(HCDC)in2010.“LaMarquetaMile,”astheplaniscalled,seekstoincorporateaffordablevendingspacesforupto900vendorsonthelotsunderneaththeMetroNorthviaduct,stretchingfrom111thStreetto137thStreet.Thisplanwouldnotonlyprovideaffordablespaceforlocalvendorsandentrepreneurs,butwouldalsocreateanestimated4,000jobsandwouldturnLaMarquetaintoadestination.(Giles,2010.)AlthoughtheLaMarquetaMileplanwaswellreceived,itfailedtosecurefunding,acostestimatedatabout$2.1millionperblock.(Feiden,2012.)

InJanuary2011,HotBreadKitchen(HBK)receivedfundingfromtheUpperManhattanEmpowermentZoneandtheNYCEDCtoopenawholesalingandproductionspace,smallretailstall,andbusinessincubationservicesinLaMarqueta’sBuilding4.ThesecuringofHBKbroughtsignificantmediaattentionbacktothemarket,andhasbeenacatalystinthemarket’srebirth.TheEDChasrecentlysignedtwonew,non-LatintenantstotheMarket,NordicPreservesandBuerre&Sel(whowererequiredtoopeninLaMarquetainordertoalsoopenstallsintheEssexStreetMarket),inhopesthatthiswillhelpLaMarquetareachawideraudience.Moreover,inJune2011,MayorBloombergallotted$2MillionfromtheCityCouncilSmallManufacturingInvestmentFundtocreatefoodmanufacturingstep-upspaceatBuilding3.Thegoalofthisprogramistoprovideproductionspacetosmallfoodproducersthatarelookingtoexpandtheirbusinessbutlackthespacetodoso.ThefundingwillbeusedtorenovateBuilding3andtoinstalleightwalkincoolerspaces.TheRFPforBuilding3wasissuedinthesummerof2012andtheEDCiscurrentlyfieldingresponses.

Figure 2: La Marqueta Mile

III. Literature Review

Retail in the Inner CityPost-warchanges,includingdecliningpopulationsanddisinvestment,createdanewretaillandscape

inAmericancities.Theroleofretailingindowntownareashasgreatlydiminishedsinceitszenithinthe1920s,butitwasnotuntilthe1950sthatlarge-scaledecentralizationofretailactivityoccurredwiththeproliferationoftheautomobileandthegrowthofthesuburbs(Robertson1997.)Aspurchasingpowermovedtothesuburbs,theretaillandscapeandconsumptionpatternsbegantoshift.Theadventofthe“big-box”retailer,offeringgoodsatlowerpricesthanmom-and-pops,isoft-citedasaprincipalimpedimenttoretailactivityincities(ChappleandJacobus2009.)

Scholarshavedebatedsolutionstoreinvestingintheinnercity.MichaelPorter’sseminalwork“TheCompetitiveAdvantageoftheInnerCity”(1995)callsforprivateinvestmentinbusinessandtheleveragingofaregion’scompetitiveadvantagetoreplacesocialinterventionsthatareassociatedwithtypicalgovernmentassistance.SupportersofPorter’stheorycallforabolsteringofprivatebusinesseswithmoreextensivegovernmentintervention(FainsteinandGray1997),andmoreminorityownershipandagency(Butler1997).Opponentscitethefailureoftheprivatesectoringeneraltoprovidegoodsandservicestotheinnercityandcallformorepolicyandcommunity-basedinterventionsasapathwaytoincreaseinvestment.(Dymski1997,SawickiandMoody1997.)

Butwhyiseconomicdevelopmentsodifficultintheinnercity?Evenaspopulationshiftshavedrawnpeopleandinvestmentbacktourbanareas,thehyper-segregated,socalled“inner-city,”hasreceivedlittlebenefit.AccordingtoPorter,innercitiesareunattractivetotheprivatesectorforanumberofreasons.Economicallyunusableland;higherbuildingcosts;higherutilityandothercosts;realandperceivedthreatstosecurity;insufficientordifficultcommercialinfrastructure;loweremployeeskills;lackofmanagementskillsinsmallbusinesses;lackofaccesstodebtandequity;andanti-businessattitudesbythecommunityaremajorchallengespresentedbytheinnercity.Otherscholarsrefertosimilarissuesfacingretaildevelopment,focusingonafewcentralobstaclestodevelopment:perceptionsofcrime;alackofsufficientbusinessdatatojustifyloanunderwriting;thehighcostofdevelopingandoperatingabusinessincities;andtheneedtodepicttheareaasimpoverishedtoreceivefederalsubsidiesandsocialserviceprogramming(Achugbue2006;StewartandMorris2002).

Latino CommunitiesAnotherobstaclefordevelopmentinunderservedandminorityneighborhoodscitedbyPorterand

othersisdiscrimination.TheliteraturesurroundingLatinocommunitiesisfocusedonbothracialdiscriminationandimmigrantdiscrimination,andasaresult,underservedLatinocommunitiesfaceuniquechallenges.AccordingtoValenzuela(2006),Latinosaredisproportionatelyaffectedbyeconomicandlabormarketrestructuring,becausetheyaremorelikelytoparticipateintheinformaleconomyascontingentworkers.Manyjobsavailabletomarginalizedlow-skilledworkersarelessstable,lower-wage,orindecliningindustriesthatrelyonethniclaborers.Becauseoftheirstatusas“contingentworkers”orthe“workingpoor,”theplightoftheLatinointheworkforcehaslargelybeenignoredbylargereconomicdevelopmentinitiatives.Inparticular,Latinoentrepreneurshipisnotrecognized,butratherisseenasaninformal,undergroundeconomy.

Inordertoaddresslargermacrodiscrimination,Valenzuelarealizestheneedtoincorporatemarginalworkersintothemainstream–butalsotocreateabetterspacefortheminthemarginbythinking“outsideofthebox.”Thistypeofthinkingwouldincludecreatingmoreprogramsspecificallyformarginalor“underthetable”workers,suchasdomesticstaffor“gypsy”cabdrivers.Secondly,Valenzuelasuggestsexpandingemploymentandtrainingopportunitiesformarginalworkers–includingplacing“difficult-to-serve”workers–youngmothers,formercriminaloffenders,etc.-inentrylevelpositionsingrowingindustries,aswellasplacingotherparticipantsinjobsrequiringspecializedskills,experience,andtraining.ThefinalsuggestionforeconomicdevelopmentinLatinocommunitiesistocreatemoretraditionaleconomicdevelopmentstrategies–suchasunionmembershipdrives,supportingstrikes,campaignsforlivingwageordinances,mobilizinglegislativeinitiativesbenefittingimmigrantworkers,exposingharshworkingconditions,andotherwisesupportinginitiativesthatbenefittheworkingpoorandimmigrants.IncorporatingLatinos,andthemarginaleconomyingeneral,intothelargerdiscussionabouteconomicdevelopmentwillbeanimportantcomponentinthelargerdiscussionofsustainabledevelopmentinEastHarlem.

Inadditiontotraditionaleconomicdevelopmentinitiatives,Portermakesseveralsuggestionsforprivatesectorinvolvement.First,bysimplycreatingabusinessintheinnercity,theprivatesectorishelpingmaketheinnercitycompeteonalargerscale.Secondly,establishingrelationshipswithexistinginnercitycompanieswillcreatemutuallybeneficialrelationshipsandagain,helpforcebusinessestobecomecompetitive.Porteralsocallsforinvestmentinbusiness-to-businessefforts,suchastrainingandmanagementassistance,andamorecreativeequityinvestmentplatformtoassistsmallviablebusinessesintheinnercity.SibleyButler(1997)alsocitestheimportanceforlocalresidents,particularlyminorities,todobusinessandownlandintheirownneighborhood–especiallygiventheinnercity’scompetitiveadvantageofbeingneartransportandcommunicationcenters.UsingtheexampleofHunter’sPointinSanFrancisco,apredominatelyAfricanAmericanneighborhood,Butlersays“theblackcommunityofHunter’sPointintheCityofSanFranciscooverlookstheentireBayarea.Thisland,withanestimatedvalueofover$3billion,canbeabonanzaforpeoplewholivethereifitisdeveloped.LandinCleveland,Ohio;NewYorkCity,Washington,D.C.,andPhiladelphiastandsinasimilarlight”(44.)Thesestrategiesallhelptocreatelocalpowerandagencywhereitiseitherlackingorignored,whichisakeytocreatinginvestmentanddevelopmentinunderservedareas.

CarrandServon(2009)suggestadifferenttypeofcompetitiveadvantage–aneighborhoods“vernacularculture.”Afteranalyzingseveraldifferentcasestudies,theauthorsconsiderpublicmarketstobecommunityanchorsinneighborhoodscharacterizedbyvernacularculture.Localpubicmarketsprovide“importantopportunitiesforsmallentrepreneurstomeetcustomers.Thesemarketsoftenattracttouristsaswellasneighborhoodresidentsandbringtogetherdiversepeople”(36.)Inordertosuccessfullybenefitfromthevernacularculture,theauthorssuggestseveralgrassrootsstrategies,includingresidentinvolvement,incorporatinguniquelocalassets,creatingopportunitiesforlocalownership,developingnewstrategies(asopposedtoreplicatingthem,)andstrikingabalancebetweencultureandcommerce.Itisacommunity’suniquenessthatprovidesitscompetitiveedgeanditsabilitytohouseindigenousbusinesses.Assuch,economicdevelopmentstrategiesmustbecateredtospecificallynurturethevernacularcultureofeacharea,lestcitiesbecomeashomogenousasthesuburbs.

Physical ApproachesInadditiontothemanyapproachesofeconomicdevelopment–attractinginvestmentandfostering

workforcedevelopmentinunderservedareas–therearealsomanytypesofphysicaldevelopmentthatcanmakeretailprojectssucceedorfail.Thedeclineofdowntownretailingisoftencontributedtopopulationshifts,crime,andconvenienceasmajordeterringfactorsfordowntownshopping.Newtypesofretailhavedevelopedinthefaceofthisdecline.Forexample,thesuburbanshoppingmall,firstcreatedin1956,hasbeenrecreatedwithvaryingdegreesofsuccessindowntownareas.Pedestrianmalls,characterizedbyapedestrian-friendlyenvironment–oftentimesexcludingautomobilesaltogether-alsofailedtorejuvenatedowntownretailingbecauseoflittlefoottrafficgenerationandadifficultyinattractinglargerretailersthatwereusedtooperatinginenclosedmalls.FestivalMarketplacesattempttotakeadvantageofhistoricalbuildings,waterfronts,orotherthemesthatareuniquetourbanareas.Thesemarketplacesarefocusedonsmaller,locallyownedshopsandgenerallycatertoayoung,affluentclientele.FestivalMarketsneedastrongregionalpopulationandtouristbase,anddobetterwhentheyareinwalkingdistanceofthedowntowncore.Mixed-usecenterscombineretailwithofficeorothercommercialuses.Thesehavegenerallybeensuccessful,withonecriticismthattheretailingmaytakeawaycredibilityfromotherusesoftheproject(Robertson1997.)

Intheiranalysisofretaildevelopmentasatoolforcommunityrevitalization,ChappleandJacobus(2009)gathereddataonthenumberofretailstoresaddedinseveralneighborhoodsintheSanFranciscoBayAreaandtheirimpactonneighborhoodrevitalization.Findingsfromtheirstudyindicatethatrevitalizationstemmingfromretaildevelopment–seenasanincreaseinsalesandemployment,andmoreretaildevelopment–ismorelikelytooccurinmiddletoupperincomeneighborhoodsthanotherneighborhoodtypes,includinglowerincomeareas.Asaresult,retaildevelopmentinandofitselfisnotasufficientpathwaytorevitalizingcommunities.Ifanything,retaildevelopmentaffectstheperceptionoftheneighborhood,whichcouldthenleadtoachangeintheneighborhoodvianewresidentialcomposition.Thechallenge,then,istocreateretaildevelopmentstrategiesthatwillserveandbenefitlow-incomecommunitieswithoutdisplacingresidents.

Public MarketsAlongwiththechallengeofdisplacementandnegativeperceptions,marketsthemselvespresenta

uniqueproblemforretailplanningscholarsbecauseoftheircomplexityandtheirmanyformsandfunctions.Morales(2011)definesmarketswithinthepolitical,economic,social,andhealthspheres.Politically,marketsbenefitpubliclifebyexpandingpeople’sexposuretooneanother.Theyaregovernedbyorganizationalorcitylaws,butalsothetacitknowledgeofmerchantsandcustomers.Economically,marketsaresignificantsourcesofretailtradeandactivity,andhaveonlyincreasedinpopularity.Forexample,Farmer’sMarketsalesreached$1.2Billionin2007from$500Millionin1997.Othereconomicconsiderationsaretheemployment,businessexpansion,andintegrationwithlargerbusinessenvironmentthatmarketsprovidetolocaleconomies.Sociologically,Moralesdefinesmarketsas“tools”tobringtogetherpeople,activities,andspaces.Inparticular,marketsofferopportunitytobridgeethnicgroups.Marketscanalsocreatehealthandfoodconnectionsbynotonlyofferinghealthyfood,butbyservingasacommunitysymbolforlocallygrown,environmentallyfriendlyfood.ThisisparticularlyseeninFarmer’sMarketsthatemphasizeurbanhealthandfoodaccessequity.

Becauseoftheirvaryingphysicalandeconomicforms,marketscanhavemanyeffects.Ingeneral,

however,marketsareseenascommunityintegrators,bothethnicallyandeconomically.Morerecently,marketsareviewedassymbolsofwellness,capableofimprovingthehealthofmarginalizedpopulations(Morales2011.)Nevertheless,thereisnosinglesolutionforrevitalizingmarketsorusingthemastoolsforcommunityandeconomicdevelopment.Therearegapsintheresearchastotheeconomicimpactofmarkets–theireffectonpropertyvaluesandsmallbusinesscreationandincubation,forexample.Inordertounderstandtheeconomicimpactofamarketwithinabroadercommunity,moreresearchmustbedoneattheground level.

IV. Research Methodology

TheresearchdesignwillbefocusedbothonneighborhoodretailsupplyanddemandfundamentalsaswellasissuesspecifictothefeasibilityofLaMarquetaasasuccessfulmarket,previouslydefinedasfosteringprofitableandself-sustainingbusinessesandpromotinganincreaseinfoottrafficandoverallmarketsales.Thisstudywillfirstincludeademographicandneighborhoodanalysis,andthenacomparativeanalysisofmodelsofmarketstructureandownership,lookingatLaMarquetacomparedwithothermarketswithsimilarcharacteristics.TheseincludeElMercadoCentralinMinneapolis;ArthurAvenueMarketintheBronx,NewYork,knownasanItalianethnicmarketbasedinalowerincomearea;andtheEssexStreetMarketinLowerManhattan.SimilartoLaMarqueta,EssexStreetMarketisalsodirectlymanagedandoperatedbytheNYCEDC.

Neighborhood Analysis: InordertoassessthecurrentretailclimateinEastHarlem,Iconductasocio-demographicanalysisofEastHarlembetween2000and2010usingCensusdata.Specificvariablestobeanalyzedincluderaceandethnicity,countryoforigin,age,income,poverty,andemploymenttotrackboththecurrentneighborhooddynamicsandchangingtrendsduringthepasttenyears.ThesewillbeanalyzedattheCensusTractLevel–whichinclude12CensusTractswithinonehalfmileofLaMarqueta.TheselectedtractsareborderedbyMalcolmXBoulevardtotheWest,1stAvenuetotheEast,110thStreettotheSouth,and126thStreettotheNorth.LaMarqueta,on115thStreetandParkAvenue,islocatedontheborderofTract182and184,inthecenterofthisclusterofCensusTracts.ThesetractswerechosenfortheirdistancefromLaMarquetaandfortheirdesignationaspartofthe“EastHarlem”neighborhood(nothingwaschosenWestofMalcolmXBoulevardforthisreason.)PresentdaybusinessdatawillcomefromReferenceUSAwithin0.5milesofLaMarqueta.BusinesseswillbeanalyzedbasedonNAICScodeandsalesvolume.

Comparative Analysis: InordertoassesstheperformanceofLaMarquetaitself,Iwillcompareitsstructureandmanagementtoseveralothermarketsacrossthecountrywithsimilarcharacteristics.ThesemarketsareElMercadoCentralinMinneapolis,ArthurAvenueMarketintheBronx,andtheEssexStreetMarketontheLowerEastSideinManhattan.Thegoalofthisanalysiswillbetocompareleasing,tenanting,rents,andgeneralmarketstructureandincomeacrossmarkets.Thiswasgatheredthroughqualitativeinterviewswithmarketmanagers.Interviewquestionsincluded:

1. Describethemarket’sownershipstructure2. Describethemarket’srelationshipwiththesurroundingcommunity3. Dopeopleshopherefromoutsideoftheneighborhood?4. How many tenants/vendors are in your market5. Howaretenantsselected?6. Whatisthepricepersquarefoot/askingrentalrateformarketstalls?7. Whatarethepermitting/leasingterms?8. Howdoyoudefinesuccessforyourmarket?9. Isthereaprocessforstrategicplanning/eventsatthemarket?Ifyes,whoisinvolvedandwhatis

theprocess?10. Whathasbeenyourbiggestsuccessstory,andwhathasbeenyourbiggestchallengeduringthe

pastfiveyears?IalsointerviewedcurrentmerchantsatLaMarquetaandEDCmanagementstafftobetterunderstand

thehistoryandcurrentconditionsofLaMarqueta.ThegoalofthisistoanalyzethehistoricalfailuresandchallengesfacingLaMarquetaandcurrentprogramminginplacethatistryingtomeetthesechallenges.SampleInterviewquestionsincluded:

For Merchants1. HowoldisyourbusinessandhowlonghaveyoubeenamerchantinLaMarqueta?2. WhydidyoudecidetolocateinLaMarqueta?3. Whatchangeshaveyouseensinceyou’vebeeninLaMarqueta?4. WhatwouldyouliketoseechangeinLaMarquetamovingforward?5. Canyoudescribeanyeventsthatweremajorsuccessesormajorfailures?6. Whatisyourmainproduct/business?7. Whoisyourtargetcustomer?8. Howmanyemployeesdoyouhave?9. Isyourbusinessprofitable?Whatareyourmonthlysales?Overheadcosts?10. Whatchangestoyourbusinesswouldyouliketoaccomplishandwhatresourceswouldyouneed?11. WhatisyourrelationshipworkingwiththeCity?

For EDC Staff1. WhatarethechallengesofManagementatLaMarqueta?2. Whathavebeensomesuccesses/failuresfromanEDCperspectiveatLaMarqueta?3. WhatisthefutureoutlookforLaMarqueta?DoesEDChaveanylong-termplans?4. Describetherelationshipbetweennewversusoldtenants?5. WhatothercityagenciesareworkinginEastHarlem/LaMarqueta?Areyouworkingwiththemon

strategicplanning?

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V. Analysis

Chapter I – Neighborhood and Retail Analysis TwelveCensusTractswereanalyzedintheEastHarlemneighborhood,includingTract172,174.02,180,182,184,186,188,190,194,196,198,and200.TheneighborhoodrangesfromMalcolmXBoulevardtotheWest,1stAvenuetotheEast,110th StreettotheSouth,and126thStreettotheNorth.LaMarquetaison115thStreetandParkAvenue,ontheborderofTract182and184,andapproximatelyinthecenterofthisclusterofCensusTracts.TheradiusofthesetractsisapproximatelyonehalfmileoneithersideofLaMarqueta.ThesetractswerechosenfortheirdistancefromLaMarquetaandfortheirdesignationas“EastHarlem”(nothingwaschosenWestofMalcolmXBoulevardforthisreason.)

Population, Race, and AgeTheEastHarlemareaanalyzedislocatedin

CommunityBoard11,denotedbytheDepartmentofCityPlanningasPUMA03804.ThetotalpopulationofPUMA03804areawas122,920peopleasof2010.ThepopulationofthecombinedtwelveCensusTractswas59,452peoplein2010,representingabout3.7%ofNewYorkCounty’stotalpopulationand48.3%oftheCommunityBoardarea’spopulation.Thisrepresentsapopulationincreaseofabout6.5%from2000.Bycomparison,NewYorkCountygrewby3.2%andtheNewYorkMSAgrewbynearly33%duringthesameperiod. ThelargestgainsweremadeinTract190,184,and172.01,and198,whichallsawdouble-digitpercentagegains.ThesetractsareprimarilyconcentratedinthewesternsectionofEastHarlem.Conversely,thetractsthatshrunkareontheeasternedgeofthecluster.

Intermsofage,thepopulationintheEastHarlemclusterskewsslightlyyoungerthanboththeMSAandtheCityasawhole.Asof2010,nearly67%ofthepopulationintheEastHarlemclusterwasyoungerthan44years,comparedwithabout61%fortheNewYorkMSAand62.5%forNewYorkCounty.ForEastHarlem,thisrepresentsadropfrom2000,whenslightlymorethan71%ofthepopulationfellintothisagebracket.

-‐20.0%

-‐10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Census Tract 172.01

Census Tract 174.02

Census Tract 180

Census Tract 182

Census Tract 184

Census Tract 186

Census Tract 188

Census Tract 190

Census Tract 194

Census Tract 196

Census Tract 198

Census Tract 200

TOTAL

New York MSA

New York County

Popula'on Growth 2000-‐2010

Figure 3: Census Tract Locater Map

Figure 4:

8.4%

34.3%

0.2%3.9%

0.0%0.3%

1.5%2.5%

40.2%

0.1% 0.8% 0.0% 0.1%2.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Whitealone

Black orAfrican

Americanalone

AmericanIndian

andAlaskaNativealone

Asianalone

NativeHawaiianandOtherPacific

Islanderalone

SomeOtherRacealone

Two orMoreRaces

Non Hispanic Population

2010

2000

17.0%

6.2%

0.9% 0.2%0.1%

23.2%

3.7%

17.4%

5.3%0.9%

0.1% 0.0%

26.8%

3.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Whitealone

Black orAfrican

Americanalone

AmericanIndian

andAlaskaNativealone

Asianalone

NativeHawaiianandOtherPacific

Islanderalone

SomeOtherRacealone

Two orMoreRaces

Hispanic Population

2010

2000

Notably,thelargestpercentagegainsinEastHarlemweremadeintheyoungercohorts(lessthan25years),suggestingperhapsahigherbirthrateandnaturalaginginsteadofin-migration.Interestingly,theagebracketof25-44yearoldsincreasedslightlyfromabout41%to43%from2000to2010inEastHarlem.At43%,theproportionofpeopleinthisagebracketnearlymatchestheproportionseeninNewYorkMSA.

Asof2010,theEastHarlempopulationwas51.3%HispanicorLatinoand48.7%Non-Hispanic.ThismatchespercentagesintheCommunityBoardarea,whichwas49.8%HispanicorLatino.IntheCensusTractcluster,thenon-Hispanicpopulationwas8.4%white,34.3%Black,and3.9%Asian.Comparedto2000,thisrepresentssignificantgrowth–nearly259%-inthenon-Hispanicwhitepopulation,from1,397to5,014people.Duringthesametimeperiod,thenon-Hispanicblackpopulationcontractedbyalmost9%.ThismirrorsthetrendintheNewYorkMSA,whichsawincreasesinthewhitepopulation–fromabout40%to44%-anddeclinesintheblackpopulation–from22.6%to18.3%,duringthesameperiod.InNewYorkCounty,theHispanicorLatinopopulationmadeup25.4%ofthetotalpopulationin2010.Whitesaccountedfor48%,Blackswere12.9%,andAsianswere11.2%.Thesenumbersroughlymatchtheporportionsfrom2000-withslightgainsintheWhiteandAsianpopulations,andslightdeclinesinthepercentageofBlacksandHispanics.

TheHispanicandLatinopopulationmakesup51.3%,orslightlymorethan30,000people,oftheEastHarlempopulation,comparedwith53.9%,or29,970peoplein2000.TheracialbreakdownofHispanicsandLatinosalsoremainedrelativelyconsistentbetween2000and2010,withthemajorityofHispanicsandLatinosidentifyingas“Someotherracealone”or“White.”ComparedtotheNewYorkMSAandCounty,theEastHarlemCensusTractshaveahigherproportionofHispanicsandLatinos.In2010,HispanicsandLatinosmadeupapproximately24.6%,orslightlymorethan3millionpeople,oftheMSA’spopulation,comparedwith2.3millionpeoplein2000.FortheCounty,Hispanicsmadeup25.4%ofthepopulation,orapproximately404,000people,comparedwith418,000in2000.Therefore,growthoftheHispanicandLatinopopulationisoccurringatagreaterscaleintheNewYorkMSAasawholethaninEastHarlem,butgrowthinEastHarlemisoutpacinggrowthoftheCity’sHispanicpopulation.Theseresultsarenotaltogethersurprising.WithintheCity,growthisoccuringintheestablishedHispanicenclaveofEastHarlem,butthisgrowthisnotasstrongcomparedwiththeexpansionoftheHispanicandLatinopopulationtootherareasintheregion.

ComparedtoNewYorkMSAasawhole,theEastHarlemCensusTractshaveahigherpercentageof

Figure 5: Figure 6:

foreign-bornpeople.InthecombinedCensusTracts,theforeign-bornpopulationtotaled15,269people,orapproximately25.6%ofthelocalpopulation.Thisrepresentsanincreaseof23.5%intheforeign-bornpopulationfrom2000.IntheNewYorkMSA,theforeign-bornpopulationincreased19.8%duringthesameperiod.Asof2010,theforeign-bornpopulationwasslightlymorethan3.7millionpeopleintheMSA,roughly30%oftheoverallpopulation,comparedtotheCounty,wheretheforeign-bornpopulationmadeup28.6%ofthepopulation.Themajorityoftheforeign-bornpopulationintheEastHarlemCensusTractswasbornintheAmericas-representingabout74%ofallforeign-bornmigrantsintheneighborhood.Ofthesemigrants,about29%areCaribbeanand38%areCentralAmerican.Eachofthesegroupsrepresentsabout5,000people.ThesecondlargestimmigrantgroupcomesfromAsia.Asiansmakeup13.5%oftheforeignbornpopulationinEastHarlem.Bycomparison,intheNewYorkMSA,Asiansmakeupabout26%oftheforeignbornpopulation,whileimmigrantsfromtheAmericasrepresentabout53%oftheforeignbornpopulation.

Income and EducationThemedianincomeintheEastHarlemCensusTractsissignificantlylowerwhencomparedwithboth

theMetroareaandtheCity.Asof2010,themedianincomeoftheEastHarlemCensusTractswas$25,909,comparedwith$60,169intheNewYorkMSAand$58,269inNewYorkCounty.Nevertheless,incomesincreased63.7%inEastHarlembetween2000and2010,comparedwithajumpof46.6%intheNewYorkMSAand23.9%inNewYorkCounty.Infact,onlyoneCensusTract,Tract174.02,sawthemedianincomecontract. Asaresultoftheincreaseinincome,rentsarealsoontherise.ThemediangrossrentintheEastHarlemCensusTractswas$597asof2010,a51.5%increasefrom2000,whenitwas$394.Nevertheless,thisissignificantlylessexpensivethanrentsintheNewYorkMSA.Asof2010,mediangrossrentsinNewYorkMSAwere$1,103andwere$1,234inNewYorkCounty.Asapercentageofincome,thisrentincreasehasonlyhadaslightimpact.Asof2010,mediangrossrentsmadeup28.6%ofincomes,comparedwith27.4%in2000.IntheNewYorkMSA,rentsmakeup31.0%ofincomesin2010,andinNewYorkCounty,27.7%.AlthoughincomesaremuchlowerinEastHarlem,thecostoflivingisalsosignificantlylowerwhencomparedwiththeMSAandCity. TheeducationalattainmentoftheEastHarlemCensusTractsisalsolowerthanthatoftheNewYorkMSA.Forthepopulation25yearsandolder,only13.5%ofthepopulationhasaBachelor’sdegree,comparedwith20.1%ofthepopulationintheNewYorkMSAand29.8%inNewYorkCounty.Similarly,36.2%ofthepopulationhaslessthanahighschoolleveleducation,comparedwithonly17.6%intheNewYorkMSAand15.3%inNewYorkCounty.LoweducationalattainmentlevelsarelikelyattributabletothehigherlevelofimmigrationaswellashigherpovertylevelsintheEastHarlemneighborhoodcomparedwithNewYorkmetroareaandCity.Alongwithloweducationalattainmentcomeshigherunemploymentlevels.Ofthepopulation16yearsandover,54.6%inEastHarlemareinthelaborforce,withabout7.2%ofthesebeingunemployed.Bycomparison,inNewYorkMSA64%areinthelaborforce,ofwhichonly5.0%areunemployed.InNewYorkCounty,67.3%areinthelaborforce,and7.9%areunemployed.ThereisalsoasignificantpopulationinEastHarlemthatisnotinthelaborforce–45.4%,comparedwithonly36%intheNewYorkMSA.

Shopping BehaviorAlthoughitisdifficulttogeneralizeshoppingbehavioramongpopulationssplitoutbyraceorethnicity,

thereareseveralstudiesthathaveattemptedtodoso.Accordingtoa2011reportbyPackagedFacts,HispanicsintheU.S.representabuyingpowerof$1trillion,andHispanicsareanincreasinglyimportantconsumerintherecoveringeconomy.Althoughoverallconsumerspendingdeclinedduringtherecession,spendingbyHispanicconsumersincreased.ThisgrowingoptimismintheAmericaneconomyfeltbyHispanicsislikelytoincreaseasmoreHispanicimmigrantsbecomeacculturatedintheU.S.(PackagedFacts,2011.)

AnotherstudybytheIntegerGroupandM/A/R/CResearchfoundthatHispanicsgenerallyshowahigherprioritytoward“familysatisfaction”and“one-stopshopping,”withlessemphasison“savingmoney”duringholidayorbacktoschoolseasons.However,duringregularshoppingtripsHispanicsaremorevalue-driventhanthegeneralmarket,althoughlesslikelytouseinstoremessagingandcouponingthannon-Hispanics.TypicalbrandingdoesnotnecessarilyreachtheHispanicshopperaswellastheoverallconsumer,makingthemlesssusceptibletoin-storemarketing.Similarly,Hispanicsperceivelessdifferenceinprivateandbrandnameproductscomparedwithgeneric,althoughtherehasbeenanincreaseinbrandloyaltyseenamongstHispanicshoppersasacculturationhasincreased.Accordingtothereport,“Brandsmustbedeep-rootedinthemoremeaningfulinsightsthatdistinguishHispaniccommunicationfromgeneralmarketcommunication,especiallyduringkeyshoppingevents.”(IntegerGroup,2010.)

ThesestudieswouldsuggestthatHispanicshoppersarebecominglessdependenton“value”shoppingandmoreinterestedinpurchasingbrandnamegoods.AlthoughtheirbrandloyaltystillexistswithLatinospecificproducts,therearesignsthatthispatternmaybeshiftingtowardnon-Latinoproductsaswell.ThegeneralacculturationoftheHispanicshopperwillmeanthattheywillbemoresusceptibletogeneralmarketingandtheiroverallbrandloyaltyandspendingwillincrease.

Existing Retail UsingdatafromReferenceUSA,retailestablishments,basedonthebasicNAICSCodes44-45forRetail

TradeandCode72forAccommodationandFoodServices,weretrackedwithinahalf-mileradiusofLaMarquetaasof2012.Withintheseumbrellacodes,thefollowingNAICSCodeswerechosenbasedontheircompetitivenesswithproductsthatareofferedoutofLaMarqueta.ThenumberofbusinessesbasedonNAICScodecanbeviewedatleft.

Type Number Percentage

311611– AnimalSlaughtering 2 0.47%

311811– Retail Bakeries 1 0.24%

424420– PackagedFrozenFoodMerchantWholesaler 1 0.24%

445110– Supermarkets/OtherGrocery 66 15.57%

445120– ConvenienceStores 4 0.94%

445210– Meat Markets 12 2.83%

445220– Fish&SeafoodMarkets 7 1.65%

445230– Fruit&VegetableMarkets 8 1.89%

445292– Confectionary&NutStores 4 0.94%

445299– GourmetStores 4 0.94%

446191– Food(Health)SupplementStores 3 0.71%

722310– FoodServiceContractors 10 2.36%

722320– Caterers 11 2.59%

722511– Full-ServiceRestaurants 247 58.25%

722513– LimitedServiceRestaurants 29 6.84%

722515– Snacks&Non-Alcoholic Beverage Bars 15 3.54%

TOTAL 424 100.00%

Figure 7: Retail by Type

WithinonehalfmileofLaMarqueta,thereareatotalnumberof424competingbusinesses.BusinesseswithinthetwooriginalNAICSsubheaders–RetailTradeandAccommodationandFoodServices–weredefinedascompetitiveiftheyhadafactorincommonwithLaMarqueta.Thisincludedanyspecialtyfoodstore,groceryorconveniencestore,orestablishmentservingfoodforon-siteconsumption.ThereareahighconcentrationofGroceryStores(66),Full-ServiceRestaurants(247),andLimitedServiceRestaurants(29).Outof424totalbusinesses,thesebusinessesrepresentaproportionofroughly15%,58%,and7%,respectively,foratotalsumofabout80%.TheremainingbusinesstypeswithasignificantconcentrationareSnacks&Non-AlcoholicBeverageBars,Caterers,FoodServiceContractors,Fruit&VegetableMarkets,Fish&SeafoodMarkets,andMeatMarkets.Interestingly,HotBreadKitchen,whichislocatedinsideofLaMarqueta,istheonlyretailbakery.TherealsoseemstobealowernumberofConvenienceStoresthanonewouldexpectcomparedwiththeSupermarkets/OtherGrocerycategories.BecausestoreownersdeterminetheirownNAICScategories,thisclassificationcanbesomewhatmisleading.Infact,atcloserinspection,manyoftheseGrocerystoresarequitesmallinsize–withthemajorityemployingonly1-4peopleandsmallerthan2,500squarefeetinsize.Thereareonlyafewconventionalsupermarketswithmorethantenemployees.AssociatedSupermarketat125East116thStreet,MetFoodSupermarket235East106thStreet,AssociatedSupermarketon2212 3rdAvenue#1,andtwoFineFareSupermarketsat1718MadisonAvenueandon37MalcolmXBoulevard.Therefore,itwouldseemthatmanyofthestoresintheGrocerystorecategorymayappeartobemorelikeConvenienceStores,withasmallfootprintandfewemployees. OtherbusinesstypesthatcompetedirectlywithLaMarquetaarethespecialtystores,includingMeat,Fish&Seafood,andFruit&VegetableMarkets.Combined,thesestoresmakeupslightlylessthan5%ofthetotalcompetitivebusinesses.Nevertheless,thecompetitionfromthesestoresisimportantbecausetheycompetemoredirectlywithLaMarqueta.Asopposedtoatypicalgrocerystore,shoppersgooutoftheirwaytogotoabutcheroraproducemarket.IftheyshoppedatLaMarqueta,theywouldalsobe,inasense,goingoutoftheirway,andmakingaconsciousdecisiontoseekoutspecialtyitemsnotavailableatatypicalgrocerystore.LaMarqueta,infact,hasvendorsspecializinginproduce,Meat,andcertaintypesoffish(bacalao.)Ifthereisdemandintheneighborhoodforthesespecialtyitems,thevendorsatLaMarquetaarenotgainingfromit.

AnotherinterestingbusinesssectorthatcompeteswithLaMarquetaisLimitedServiceRestaurants,comprisedofDelis,andSnacksandNon-AlcoholicBeverageBars,whichrepresenttypicallylowerendcoffeeandteashopsandothersmallspecialtyitemstore.Infact,manyoftheseareDunkinDonuts/Baskin-Robbinshybridstores.Althoughthesearelow-end,theyrepresentsomeofthefewpreparedfoodretailingthatexistsinEastHarlem,whichcompeteswiththingslikesandwiches,breakfastbreads,pastries,anddesertitemsthatyoucanfindatLaMarqueta.ThetotalcombinednumberofLimitedServiceRestaurantsandDelis,SnacksandNon-AlcoholicBeveragebarsis44stores,with15ofthesesbeingtheSnackandNon-AlcoholicBeverageBars.ComparedtoGroceryStoresandfull-servicerestaurants,thereisasignificantlylowerconcentrationofstoresservinggrabandgoandpreparedfoods.

Market GapsTherearemanyfactorsatplaywhenlookingatLaMarquetaandthesurroundingpopulationandretail.

First,withinahalfmilethereisahighproportionofgroceryandconveniencestores.Thereareevenseveral

specialtystoressellingmeatandfreshproduce.AllofthesedirectlycompetewiththevendorsatLaMarqueta.Inparticular,theycompetewiththeproduce,Meat,andFishstores,andlesswithpreparedfoods.Whiletherearemanystoresservingpreparedfoods,indelisandlikelyintheconveniencestoresaswell,thesearelimitedcasualdiningorgrabandgoestablishments.ThisgapinthemarketcouldbecapturedbyLaMarquetaasaneighborhoodlunchspotorfooddestination.

Somechallengesremaininthisscenario,however.First,Hispanicsareparticularlyvaluedriven,andincreasinglybranddriven,whichmaygearthemmoretowardeitherinexpensivepreparedfoodsorchainandfast-foodrestaurantretailing.Itisunlikelythathigh-endartisanalbreads,sandwiches,anddesertswillfindamarketintheEastHarlemcommunityasitistoday.Moreover,theconvenienceofonestopshoppingatgrocerystoresmeansthattomakeasecondstoptobuyspecialtyitemsislesslikely,especiallygiventhatmanyspecialtyshopsalreadyexistintheneighborhood.Therefore,itwouldseemthatpreparedfood,asopposedtospecialtygroceryitems,iswheretheremaybeamarketgapinEastHarlem.Vendorsneedtobeverysensitivetopricepoints,however,andattempttomarkettheirproductsasless“artisanal”andperhapsevenmoremainstreaminordertogaintheloyaltyofconsumersintheneighborhood.AlthoughtheemphasisonLatincultureisimportanttothemarket,vendorsneedtofindanauthenticwaytoincorporatethiswhilealsocapturingaHispanicmarketthatisincreasinglyacculturatingtogeneralconsumertrendsandbehavior.

Chapter II – Market Analysis

La Marqueta Layout AsLaMarquetaexiststoday,thereare8tenantsoccupyingstalls:HotBreadAlmacen,W.E.Meats,VivaProduce,MamaGrace’sAfro-CaribbeanFood,NordicPreserves,Buerre&Sel,VelezGrocery,andBreezyHillFarmandOrchards.There are currently 2 vacant stalls. Hot Bread Kitchenoccupiesaproductionspaceinthebackofthemarket,butisnotaccessibletomarketshoppers.Additionally,theUrbanGardenCenterispartofLaMarquetabutislocatedon116th and ParkAvenue,outsideofthemarketparameters.Itisthereforenotincludedinthisstudy.Stallsizesinthemarketaresmall,measuringabouttenbyfifteenfeet.Thetwovendorsinthefront,HotBreadAlmacenandBreezyHillFarm,providelimitedseatingaroundtheirstalls(picturesatright.)RentsatLaMarquetaare$30persquarefoot,witha$5CommonAreaMaintenance(CAM)chargethatincludescleaning,security,andotheradministrativecosts. La Marqueta is located underneath the MetroNorthrailroadonParkAvenue,withonlyonemainentranceon115thstreet.OnthesidesofLaMarquetaareseveralmurals,although

La Marqueta-Retail Market - Building #4

OFFICE

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25 26 27 28 29 30 31 MANAGER'SHANDYMAN'SOFFICE

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walk-in cooler

walk-in cooler24

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Storage 00ElectricalRoom Restroom

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Figure 10: La Marqueta Building 4 Interior Plan

Figures 8 & 9: Interior Seating Facing 115th Street

pedestriansarenotabletoseeinsidethemarket.

Vendor InterviewsVendorsatLaMarquetawereinterviewedonaSaturdaymorninginFebruaryaround11AM.The

goaloftheinterviewswastobetterunderstandthetypeofbusinessthatexistsatLaMarquetaandtobetterunderstandthevendors’pointofviewonhowthemarketcanimprove,bothfromamanagementandsalesperspective.Unfortunately,manyvendorswerenotinthemarkettobeinterviewedinperson,soseveralinterviewswereconductedthroughe-mailcorrespondence.Notallvendorswerereachedforcorrespondence.

Store AgeStoresrangeinagefromlessthanoneyearatLaMarquetatomorethanfortyyearsinthemarket.

Somestoresthathavebeenthereforlongerhavechangedtheirimageorownership,althoughthenameremainsthesame.Fromobservation,storeageisagoodindicatorofwillingnesstoadaptandchangetonewneighborhooddemographics.Forexample,VelezGroceryhasbeeninLaMarquetafor40years–and20yearsinthecurrentbuilding.Thebusinesscontinuestosellwhatitsold40yearsago–codfishorbacalao-andhasseenasignificantdropinsales.OwnerAureliaVelezisresistant,ifnotindifferenttochange.Whenaskedwhatshewouldliketochangeaboutthemarket,sherepliedthatshewantedittogobacktothewayitwas.

Thenewerstores,ontheotherhand,tendtoembraceandtrytocapitalizeonthechange.BreezyHillFarm,forexample,sellsmanyfarm-to-tableitems.Buerre&SelandHotBreadKitchensellartisanalbreadsandcookies,withsomeglutenfreeoptions.Thenewervendorsareattemptingtocapitalizeoffofperceivedgentrificationoftheareaaswellasshiftingtastesandshoppingtrendsingeneral.

Why La Marqueta?VendorschoosetolocateinLaMarquetaforavarietyofreasons.Forthe“legacy”vendors,many

havebeeninLaMarquetaformorethan20years,soitisamatterofhistoryandtradition.OtherschoseLaMarquetabecauseofitslowpricetag,ofabout$35persquarefootcomparedwithhigherretailpriceselsewhere.Some,likeBuerre&SelandNordicPreserves,followedanEDCrulesayingthattoopenintheEssexStreetmarkettheyalsoneededtohaveaspaceinLaMarqueta.HotBreadKitchenwonapublicRFPfromthecityafewyearsagoandonlyrecentlywasrequiredbytheEDCtoputaretailstallinthemarket.Themajority,therefore,didnotnecessarilymakeaconsciousdecisiontolocateinLaMarqueta,whichmayhaveanimpactonthevendors’dedicationtothemarket’ssuccess.

Recent ChangesChangesatLaMarquetaaredescribedbyJohnColonofBreezyHillasgoingata“snail’space.”Hecites

theadditionofHotBreadKitchenasamajorsignofprogressthathasbeguntobringsomefoottrafficbackintothemarket.Nevertheless,hisperceptionwasthatallthevendorswerestruggling.AureliaVelez,whohasbeeninthemarketfortwentyyears,seesonlynegativechanges:Lesspeople,lessvendors,andlessvarietyinthetypesofgoodsbeingoffered.Abouttwentyyearsago,therewasasit-downfullservicerestaurantineachofthebuildingsinLaMarqueta.Inheropinion,thisvarietywasamajordriverthatbroughtpeopleintothemarket.JoshGreenspanofBuerre&Selalsodiscussedthatthechangeshehasseeninhis7monthsatLa

Marquetaareminimal.“They’veaddedthesideaccessdoorandanalarmsystemfor24houraccess.Otherthanthat,therehavebeennoothernewvendors(exceptforNordicPreserveswhoarenotopenyet),nomarketing,andverylittletraffic”(personalcommunication,March26,2013.)

Desired ChangesVendorswouldliketoseemanydifferentchangeshappenatthemarket,someconflictingwith

others.Somevendorsaresimplynostalgicforthemarket’spast,whenitwasteemingwithpeopleandacentralLatinshoppingdestination.Otherswouldjustliketoseemorefoottrafficinthemarket,regardlessofwhereitcomesfrom.Somefindthattheirideashavefallenondeafears.Forexample,JohnColonwantedtoincorporateahistorical/museumsectioninthemarkettocapturesomeoftheolderresidentsintheneighborhood,buthisideawasnotwellreceived.JoshGreenspanlistedseveralchangesthathewouldliketosee,includingextendedmarkethours,abetterlookingmarket,tenantstofillthevacantstallsandmorediversity in what is being sold.

Target Customer & Price Point

SomeoftheestablishedbusinessesinLaMarquetahavealoyal,ifnotsmall,customerbasethathasbeencomingtothemarketforyears.AtVelezGrocery,theprimarypatronsareHaitiansbuyingbacalao.Similarly,GraceProspinasatMamaGrace’sAfro-CaribbeanCuisineservesmostlyCaribbeanclientele.Thenewervendorshavealessestablishedcustomerbase.HotBreadKitchenreceivesmostofthewalkinfoottrafficforcoffeeandbreakfastitems.BreezyHillOrchardisstilltryingtodeterminewhoitstargetcustomerandwhatitstargetpricepointis,sellingitemsonboththehighandlowend.Buerre&Sel,ontheotherhand,

Figure 11: Viva Produce, Legacy Vendorsellscookiesonthehigherend,and,asanestablishedbusinessonlineandintheEssexStreetMarket,servesmanyshopperswhocomefromoutsideoftheneighborhood.

Profit, Sales, and OverheadMany businesses in La Marqueta are not making

money,despitelowoverheadcostsandfew,ifany,employeesbesidestheowner.Infact,severalvendorshaveoutsidebusinessesthatfinanciallysupporttheirstallatLaMarqueta.WilliamEspinal,ownerofW.E.Meats,sellsmeatwholesaleontheside,andspendsthemajorityofhistimemakingdeliveriestorestaurantsandotherwholesalebuyers.JohnColonatBreezyHillreliesoncateringandasidebusiness,LaBodegaGourmet,tohelpsupporttheoperationsatLaMarqueta.ElizabethRyan,co-ownerofBreezyHillOrchard,alsorunsafarmupstatewhichhelpssupporttheoperationsatLa

Marqueta.JoshGreenspandoesabout$500insalespermonth,whichisnotenoughtocoverhisoverheadcosts,whichinclude$650inrent,employeesalaries,andotherexpenses.

Relationship with the CityTherelationshipwiththeCityisamicable,ifnotabitfrustratingforboththeCityandthevendors.VendorscomplainthattheEDC’sresponseistooslow,whiletheEDCcomplainsthatvendorsarenotcommittedenoughtotheirbusiness,forexamplenotopeningupontimeorleavingearly.Ingeneral,however,bothpartiesunderstandthatthemarketisinadifficultposition,andhavebeenworkingtogetherincreasinglywellto

helppushthemarketforward.OnesuchpushwasprogrammingthemarketduringtheFallandWinter,creatingHarvestandHolidayeventsthathelpedbringfoottraffictothemarketandhelpedvendorsbecome more invested in La Marqueta.

Market Appearance Thereareseveralphysicalfactorsaboutthemarketthatmakeitdifficulttonavigate.First,because the market is located underneath the MetroNorthrailroad,theentranceisdifficulttofind.Whenthetrainspassoverthemarket,itisextremelyloudandunpleasantforbothvendorsandcustomers.Thelong,windowlessstripdownParkAvenueaddsabitofmysterytothemarket.Despitethesignage,itisnotdiscernibleasamarketuntiltheentranceon115thisseen.Apasserbyinacaroronfootmightneverknowthatthemarketwaseventhere.Inadditiontothestrangepositionunderneaththerailroad,themarket’sinteriorlayoutisalsosomewhatodd.Althoughthefrontofthemarketcanaccommodateseating,themarketthensplitsoffintotwosmallcolumns,whichdonotallowthecostumeragoodviewofwhatisahead.Inadditiontothis,thevacantstalls,oroccupiedstallsthataresimplyclosed,givethemarketabarrenfeeling.Shopperslikeafeelingoflivelihood,andtobeabletoseeandunderstandtheirsurroundings.ItisdifficulttoenticeapotentialcustomerintoLaMarquetaifnotonlycantheynotseeanyshoppersandseeclosedstalls,butalsoiftheycannotevenseewhatisaheadofthemdownahallway.ThelayoutisanothermajorchallengeofLaMarqueta.

Figures 12 & 13: Vacant Stalls

Challenges Thechallengesforthemarketaremany.First,thereisahugedisparitybetween“legacy”vendorsandnewvendors,inbothprice,marketing,andappearance.Whilelegacyvendorswanttorelyontheirexisting,specialtyclientele,newervendorsaresellingitemsathigherpricepointsandattemptingtocapitalizeoffofchangingconsumerpatternsaswellaschangingneighborhooddemographics.Similarly,becausefoottrafficinthemarketissolow,somevendorsareforcedtohaveoutsidebusinessesbesidestheirstallsinLaMarqueta.TheseoutsidebusinessesstealfocusawayfromLaMarquetaitself,whichsometimesmeansthattheirstallswillbeclosedduringtypicalshoppinghours,suchasweekends.Unfortunately,whenonebusinessisclosedduringbusinesshours,ithurtsthewholeappearanceofthemarket.Thechallengeofthemarket’sphysicalbarriersmeansthatthemarketingofLaMarquetaneedstobemuchstronger,inordertoreachanaudiencethatisnotfamiliarwiththeneighborhoodorthehistory.WhiletheEDChasattemptedtoreachoutonsocialmedia,thevendorsneedtoworktogethertohelpmarketLaMarquetatoboththeneighborhoodandthesurrounding community.

Chapter III - Comparative Analysis

InterviewswereconductedwiththemarketmanagersfortheArthurAvenueRetailMarketintheBronx,ElMercadoCentralinMinneapolis,EssexStreetMarketontheLowerEastSideinManhattan,andLaMarquetainEastHarlem.ComparativemarketswereselectedbasedoncommoncharacteristicswithLaMarqueta,suchaslocation,managementstructure,orneighborhoodtype.First,eachmarketwillbedescribedseparatelyandthensalientaspectsofcomparisonmarketswillbeanalyzedandcomparedtoLaMarqueta.

Figures 14 & 15: Mercado CentralEl Mercado CentralEl Mercado Central is located in

Minneapolis,MN,servingboththeimmediatecommunityandtouristsasadestinationmarketfocusedonLatinoproducts.Themarketismanagedbyacooperative,wheremembershavepurchasedshares.Ofthemarket’s40businesses,29aremembersoftheco-op.Accordingtoco-opmanagerRodrigoCardozo,ElMercadodirectlyemploysabout350peopleandeconomicallysupportsabout500families.ElMercadowascreated13yearsagobyagroupofLatinoimmigrantsinpartnershipwiththeCityofMinneapolisandseverallocalcommunitydevelopmentcorporationsassistingwithfundingandbusinesstraining.Backwhenthemarketbegan,theneighborhoodwasperceivedas“unsafe.”Themarkethasbeenakeyinrevitalizingthearea.Cardozostates,“InthefirstdaysofMercadoCentral,prostitution,drugsandcrimewererampantontheLakeStreetCorridor. Today the area has been renovated almostcompletelyandhasservedasmodelforbusinessestotryandcopyoursmallethnicmallmodel...TheLakeStreetCorridoristodayfullofbusinessesandmallsthathavehelpedrecoverthecommunityaround.”

InadditiontotheeconomicimpactontheLakeStreetCorridor,MercadoCentralhasbecomeaculturalcenterforMexicanandotherLatinosintheGreaterTwinCitiesarea.Infact,becauseittheonlyLatinomarketinseveral

states,itservesasadestinationforLatinosfromneighboringstatesforculturalcelebrationssuchasCincodeMayo,VirginofGuadalupeDay,MexicanIndependenceDay,andothers.TheseeventsareorganizedbyamarketcommitteewhichisappointedbytheBoardofDirectors.Theseeventsalsoattractthelocalnon-Latinopopulation.

Tenantsareselectedbyamanagementcompanythatscreensapplicantsforbasiccriteriasuchasfinancialsolvencyandcriminalbackground.Cardozoalsodescribes“gemstone”vendorsand“blacksheep”vendors.Manyblacksheepvendorswereselectedwhenthemarketwassimplytryingtofillupspaceandhadalessonerousselectionprocess.Now,“Whoeverwantstobeamemberneedstobeworthyandunderstandthecooperativeasaninstrumenttoachievecommunitygoalsnottosubsidizehisorherownrentatthecooperative’sexpense.”

ElMercadoCentral’sBoardofDirectorsselectsandapproveswhatcommercialactivitiesareallowedinsidetheMercado–forexample,policiesthatpreventbusinessesfromsellingthesameproduct.Therentalpricesrangefrom$670to$3,000perstall,dependingonthetypeofactivityandlocationinsidethebuilding.Forexample,restaurantspaymorerentbecausetheyareviewedasthemarket’smainattractionandhaveahighersalesvolumethansmallerenterprises.Thesmallerbusinessesaregenerallydependentonthefoottrafficgeneratedbytherestaurants.Businessownersleasetheirspace–typicallyatwoyearleasetoafiveyearlease(thebettertheapplicants’standing,thelongerthelease.)Themarketalsoofferstemporaryspacesfor$35aday.Inordertobecomeamemberoftheco-operative,vendorsarerequiredtoshowpositivecashflowfortwoyears.

SuccessatElMercadoCentralisdefinedbyCordozaas“continuityofattendancetothemarketandthelevelofotherethnicaudiencesvisitingthemarkettocreatesalesopportunities.”Cordozaseesthisastheseedofgrowthforthemarket-theopportunitiescreatedbysteadyfoottrafficandheightenedvisibilityofthemarketasadestination.Successofeachbusinesswillkeeprevenueflowsatthemarketandallowthecooperativetothrive.Oneexampleofsuchasuccesshasbeentheexpansionofseveralbusinesses.Forexample,TaquerialaHaciendastartedinthemarketandnowhasfourlocationsinthemetropolitanareaandemploysmorethan80people.(R.Cardozo,personalcommunication,February7,2013.)

SeveralaspectsofElMercadoCentralaretransferrabletoLaMarqueta.Thelongerleaseterms,andco-oprequirementsthatbusinessesbeprofitablefortwoyears,couldhelpincreasevendorinvestmentinLaMarquetaandensurethatbusinesseshaveasolidbusinessplanandsufficientcapitalbeforeenteringthemarket.Ifappliedretroactively,thisrequirementcouldalsoforcesomelegacytenantstochangetheirbusinessmodelandkeepmoreregularmarkethours.Theuseofthespaceforevents,particularlyLatinothemedevents,isanotherwaythatLaMarquetacouldleverageitscompetitiveadvantagetobringmorepeopletothemarket.

Arthur AvenueTheArthurAvenueRetailMarketisoneofNewYorkCity’spublicmarkets,alsoaremnantfromthedays

ofMayorLaGuardia.ThemarketsitsattheheartoftheArthurAvenueCorridor,otherwiseknownas“theRealLittleItalyofNewYork.”AlthoughthemarketbuildingisownedbytheNYCEDC,itismanagedbyacooperativeandhasbeensincethesixties.Thereareseveralindividualsthatareinchargeofdifferentaspectsofthemarket,suchasmaintenance,accounting/businessmanagement,andmarketing.IinterviewedDavidGreco,

whoisinchargeofallmarketing,advertising,andeventplanningatthemarket.Themarketcurrentlyhastenvendors,althoughthereusedtobeasmanyas90.Asaresultofthesmallsizeofthemarket,thereisnoformalmechanismforobtainingnewtenants.Theresimplyhastoberoominthemarketbeforeadecisionismade.

WhilethemarkethashistoricallycateredtothehistoricItalianneighborhoodintheimmediatevicinity,ithasalsobegunmarketingitselffurtherout.Forexample,therearenearly14,000studentsnearby–mostlyatFordhamUniversity–whofrequentthemarketandinparticularthenewbeerhallthatisthere.InadditiontoFordhamUniversity,otherbusinessesanddestinationssuchastheBronxZooandtheBotanicalGardenshelpArthurAvenuebecomeatouristdestination.Grecoalsodescribeshighdemandforcookingdemonstrationsinthemarket,andfrequentvisitsfromtheFoodNetworkorothercookingshowswhichhavehelpedboostthemarket’svisibility.

Markettenantssubleasestallspacefromthecooperativeforarangeofdifferentprices(rentsnotdisclosed.)Althoughthemarketisownedbythecity,thecooperativefunctionsforthemostpartindependentlyfromtheCity,andtakeschargeofthemaintenanceandgeneraloperationsofthemarket.Occasionally,theCitywillassistwithfundingforlargeimprovementssuchasAirConditioningorwindowanddoorreplacement.

GrecodefinessuccessatArthurAvenueascontinuingtoselltopqualityproductsandbeingabletoeducatepeopleonItalianproductsandheritage.Otherfuturegoalsforthemarketaretomakemorephysicalimprovementsandcontinuetoheightenthevisibilityofthemarket.AmainchallengetoGrecoistheperceptionoftheBronxasa“stepchild”comparedwithManhattanandBrooklyn.HeseestheBronxasmaintainingtraditionsinsteadof“sellingout,”thewaythatotherboroughshaveinthenameoftourism.Therelianceontourism,aslessandlessItaliansliveintheneighborhood,isamainchallenge.(D.Greco,personalcommunication,February16,2013.)

Essex Street MarketTheEssexStreetmarketislocatedintheLowerEastSideneighborhoodofManhattanandisownedby

theNYCDepartmentofSmallBusinessServices(SBS)andmanagedbytheNYCEDC.EssexStreetcurrentlyhas22tenants.Recently,theEDChiredaSeniorProjectManager,LisaThompson,inchargeexclusivelyoftheretailmarkets,whichincludethemanagementofEssexStreetandLaMarqueta.Thompson’smainresponsibilitiesincludeleasing,marketing,tenantrelations,strategicplanning,andgeneralpropertymanagementatthesetwo markets.

TheEssexStreetMarkethasbeenastapleoftheLowerEastSideformanyyears–atfirstcateringtotheprimarilyimmigrant–firstJewishandnowLatino–communities.Astheneighborhoodhasgentrified,sohavepartsofthemarket–offeringLatino-specificproductsaswellasmorehigh-end,“artisanal”products.Akeygoalofthemarketistomaintainabalancebetweenvendorswhoselltothe“community”andvendorswhoselltothe“foodies.”Anotherpointofcontentioninthemarketisitsmovement,inapproximatelyfiveyears,toanewbuildingaspartoftheEDC’sSewardParkredevelopment.Someinthecommunitywereopposedtothemove,andanewbuildingandbetterfacilitywilllikelyincreasethemarket’svisibilityasaLESdestination.

WhenthereisvacancyatEssexStreet,spacesgoforapproximately$50persquarefootplusacommonareamaintenance(CAM)chargethatiscalculatedbasedonthesizeofstallandutilitiesused.

Tenantsgothroughapublicapplicationprocessthatoccursonanongoingbasiswhenthereisavacancyinthemarket.AcommitteeattheEDCcomestogethertonarrowdownapplicantsbasedonbusinesstype,pricepoint,financials,andotherfactors.FinalistsarerequiredtointerviewandpresenttheirbusinesstotheEDCCommittee.Successfulcandidatesareoffered1yearpermitswithtwoyearrenewaloptions.

SuccessatEssexStreetMarketisdefinedbyThompsonasmaintainingavendormixthatisreflectiveoftheLowerEastSide–abalancebetweencommunityanddestinationmarket.Thompsonalsostressedtheimportanceofthemarkettocreateasenseofplacesoastocatertobothnativesandnewcomers.ThereiscurrentlydiscussionattheEDCofextendingthemarkets’hourssoastocapturemoreafterworktraffic(themarketcurrentlyclosesat6.)Additionally,withtheadditionofthenewSeniorProjectManagerdedicatedtotheretailmarkets,itishopedthatmorecoordinatedeventsandstrategicplanningwilloccuraroundthemarket.(L.Thompson,personalcommunication,February19,2013.)

La MarquetaMuchofLaMarqueta’smanagementstructureisthesameasthatoftheEssexStreetMarket.Rentsgo

forapproximately$30psfplusa$5CAMcharge.Vendorsareofferedoneyearpermitswithatwoyearrenewaloption.Tworecentlysignednewtenants,Beurre&SelandNordicPreserves,havesomewhatheightenedthevisibilityofthemarketanddrawafewcustomersfromoutsidetheneighborhood.Existingretailers,however,viewthesenewvendorsas“contradictorytothemarket’smission,”accordingtoThompson.Ingeneral,LaMarquetaisnotviewedasadestination,butratheracommunitymarket.TheEDChasrecentlyputmoreeffortintostrategicplanningatthemarket,holdingweeklymeetingstodiscussplanningandmarketingstrategiesforLaMarqueta.Additionally,SBSiscreatingaBIDfor116thStreetinEastHarlem,ofwhichLaMarquetawillbeapart,whichshouldhelpgiveLaMarquetamorecapacityformarketing,events,andstrategicplanning.(L.Thompson,personalcommunication,February19,2013.)

WhenlookingatothermoremarketsthathavebeenmoresuccessfulwithattractingcustomersandcomparingthemtoLaMarqueta,severalthemesemerge.

Market as DestinationAllthreecomparisonmarketsareperceived,insomeway,asadestination.Theydonotrelyontheir

surroundingcommunityalonetosupportthem.Theirabilitytodrawtourismisbasedoffoftheiruniquevalueadd.AtElMercadoCentral,itisthemarket’spositionasoneoftheonlyLatinMarketsaroundinseveralstates. ArthurAvenueofferstopqualityItalianproducts,andispartofatouristcorridorofferingthesameexperience.TheEssexStreetmarkethaslessofanobviousvalueaddfortourists.However,itslocationinManhattanisoneofitsbiggeststrengths–itisthelastpublicmarketinManhattan.Moreover,itstransitionfromcommunityorientedtoartisanalproductshashelpedboostitsvisibilityandallowedittobecomemoreofadestinationmarket.Thenecessityofamarketasadestinationshowsthat,forwhateverreason,marketscannotsurviveoncommunity dollars alone.

Cooperative OwnershipBothArthurAvenueandElMercadoCentralaremanagedbycooperatives.Thisallowsthesemarkets

morefreedomintermsofhowtospendrevenue.Thisisparticularlyrelevantintermsofmarketingand

strategicplanningforthemarket.BothEssexStreetandLaMarquetaarereliantonEDCmoneyfornearlyallexpenditureswhichcancausedelaysinplanningandmarketing.Moreover,cooperativeownershipallowsvendors,boardsofdirectors,orotherinterestedpartiestobecomemoreinvestedinthefutureofthemarketandtakemoreownership.WiththeEDCmanagementyouseemoretenantdisinterestanddisinvestment,particularlywitholdertenantswhoareaccustomedtothestatusquo. Old and New Tenants

AmajorthemethatemergedatElMercado,EssexStreet,andLaMarqueta,istherelationshipsbetweenthemarketvendors.ThisislessofanissueatArthurAvenue,wherethesingularhistoryandcultureseemtounifyallmarketbusinesses.Attheothermarkets,thereexistsatensionbetweenoldandnew,community-orientedandgentrifyingbusinesses.Attheheartofthistensionisthatthenew,“artisanal”tenantstendtobethebiggestattractorsandmoneymakersatthemarket.WhilebothElMercadoCentralandEssexStreetaregrapplingwiththisissue,ithasemergedmorestronglyatLaMarqueta,wherethethreatofgentrificationisveryreal,buthasnothitinfullforceyet.AsLaMarquetacontinuestofillvacanciesandplanforitsfuture,therewillbeadefiniteneedtobalancetheoldandnewtocreateanoptimaltenantmixforbothcommunityanddestination.

VI. Recommendations

ThereareseverallessonslearnedfromlookingatbothothermarketsandfromthecurrentconditionsatLaMarquetaitself.RecommendationshavebeenmadeinordertohelpmakeLaMarquetamoresuccesful,whichhavebeenseparatedintopotentialactionitemsforvendors,theEDCmanagement,anddesignandphysicalrecommendations.Successhasbeendefinedasthecreationorretentionofsustainableandprofitablebusinesseswithinthemarketandanincreaseinbothfoottrafficandsalesatthemarket.

Vendor Recommendations Thereareseveralkeyareaswhereexistingvendorscouldmakeadjustmentstoenhancethemarket.First,vendorsmustbeopenduringthemarkethours,whichshouldbearealtivelyeasyadjustmentformanyvendorstomake.Secondly,vendorsneedtofullystocktheirstallssothatthestallsappear“inbusiness.”Atpresent,manyvendorsonlystockwhattheysell,whichdoesnotfillupthestall.Thisgivesanappearanceofastrugglingbusiness.Ifthevendordoesnothavethecapitaltostocktheirstallcompletely,theymustseekotherways,orlessexpensiveproducts,togiveofftheappearanceofasuccesfulbusiness. AkeyareawhereLaMarqueta’svendorscouldimprovewouldbethroughthecreationofaMerchant’sAssociation,orevenaco-op.AMerchant’sAssociationwouldallowthevendorstoworktogethertocomeupwithideasformarketingandotherstrategicimprovementsforthemarket.Asseenwithothermarkets,thiscollectivestrategizinggivesmarketvendorsmoreagencyovermarketactivitiesandimagingandwouldalsofosterasenseofownershipofthemarket’ssuccess.InordertocreateaCo-Op,LaMarquetavendorswouldneedtoshowtheEDCthattheycouldsuccesfullyrunthemarketontheirown.Severalmilestonesinsalesandfoottrafficwouldneedtobereached.Moreover,theEDCmaybeapprehensivetorelinquishcontrolgiventhemanyotherdevelopmentsoccurringinEastHarlemandtheHDCplanforLaMarquetaspecifically.Ifaco-opstructurewereproposed,therewouldlikelybeanegotiationperiodwiththeEDCoverthestipulationsoftheco-op.Ultimately,acooperativestructurecouldbeawin-winfortheEDC-andasuccessstoryfortheirabilitytorevitilizemarketsandcommunities.

For the EDC BarringthemobilizationofmarketvendorstoformaMerchant’sAssociationorco-op,thereareseveralstepsthattheEDCcantakeinordertoimprovethemarketfromamanagementperspective.Theareasforimprovementaremany,includingbothphysicalandnon-physicalimprovements.TheEDC’sareasofimprovementhavebeensplitintotwocategories:PoliticalandInstitutionalRelationshipandEconomicsandAsset Management. Political and Institutional Relationship BecauseLaMarquetaisnotaprofitable“asset”fortheEDC,itreceiveslessattentionthanotherbuildings.However,withthenewhiringofaSeniorProjectManagerfortheretailmarkets,thisshouldbechanging.ThemaincomplaintabouttheEDCfromLaMarquetatenantsistheamountoftimeittakesthingstogetdone.AccordingtoJoshGreenspan,therelationshipworkingwiththecityis“frustrating.[Thereis]verylittleaction,[and]everythingisamassiveprocessthattakeswaytoolong.Nooneinthe

EDCreallyunderstandsthemarketsortenantsandhowtosuccessfullypromoteorchangewhatisn’tworking.”(PersonalcommunicationMarch262013.)Thissentimentwasechoedbyothertenants.ThebureaucraticprocessthattheEDCmustfollowistimeconsumingbecauseofthemanydifferentagencies,aswellaspoliticalconcerns,thattheEDCmustfollow.Shortofcreatingaco-opoftenantstomanagethemarket,apossiblesolutionwouldbetotransferthemanagementofLaMarquetaintoadifferentdepartmentintheEDC,suchasstrategicplanning. AnotheroptiontoimprovethepoliticalrelationshipbetweentheEDCandmarketvendorswouldbefortheEDCtomakeakeyinvestmentintheexistingmarket,asanactofgoodfaith,tohelppromoteincreasedsalesandfoottrafficatthemarket.Thiscouldincludeputtingmoneyintophysicalimprovementsinthemarket,oreventplanningandprogramminginthemarketoroutdoorplazainthesummer.TheEDChasbeguntohintatsomeofthesethings,fundingHolidaydecorationsandpermittingforspecialevents,suchastheEastHarlemHarvestFestival.Nevertheless,theEDChasplayedareactionaryrole,likelybecauseoftheviewofLaMarquetaasasecondary,andnotmoney-making,asset.Inordertohelppushthemarketforward,aswellasgainthetrustandconfidenceofthevendors,theEDCneedstotakeamoreproactiverole.

Economic & Asset Management There are changes that could be made to the economicstructureofLaMarquetathatwouldhelpensurefuturesuccess.Forexample,havingstrictereconomicrequirementsforbothnewandexistingtenants,suchastwoyearsofpositivecashflowsasseeninElMercado

Problems-Tenantsnotmeetingmarketrules-CostofExtendingMarketHoursSolutions-EnforceMarketRules-Strictereconomicregulationsonpotentialtenants,retroactivelyenforceon“legacytenants”-SmallBusinessTraining-Extendmarkethoursonatrialbasis

Central,wouldhelpensurethatvendorshaveasolidbusiness model. Another issue that needs to be addressed istheflailing“legacy”vendors.Notonlydomanyoftheirproductsoverlap,buttheybringlittletonofoottraffictothemarketandarebarelysurviving.TheEDCneedstotakeadifferentapproachtothesetenantsbyimposingstricterrequirementsontheirstalls,products,andhours.Conversely,theEDCcanencouragerelationshipswiththeDepartmentofSmallBusinessServices,orprovideotherbusinessassistance,tohelpthelegacytenantsaltertheirbusinessmodel.Itisoftentimesviewedasmoredifficulttomanagelegacytenantsbecauseoftheperceptionofseniorityandtheirconnectiontotheneighborhood.Nevertheless,LaMarquetacanonlybeasgoodasitsweakestlinks. Anotherchangethatcouldbemadeisincreasingthemarkethours.AccordingtoJoshGreenspan,thecurrentmarkethoursdonotmeettheneedsofthecommunity.Greenspanwouldliketosee“hoursofoperationthatareconducivetopeopleintheneighborhoodandtheirshoppinghabits–9AMto5PMandclosedonSundaydoesn’tworkforanyone.”Inordertoincreasethemarket’shours,theEDCwouldneedto

Problems-BureaucraticDelays-LaMarquetanotamoneymakingassetSolutions-NewSeniorProjectManager-PossibilityofCooperativeManagementStructure-PossibilityoftransfertonewEDCdepartment

invest more in security and other building costs. This isseenassomewhatriskybecausenotalltenants,especiallythelegacytenants,keepthemarkethoursastheyarenow.IftheEDCmakesthisinvestment,they would need to be assured that vendors would be presentfortheadditionalhours.

Design Recommendations Designrecommendationscan,andwouldlikelyneedtobe,executedbymanydifferentparties,includingtheEDC,DOT,CommunityBoard,MTA,individualbusinessowners,andothers.Design

Figure 16: Park Avenue Exterior

recommendationsweresplitintothreecategories:SignageandWayfinding,Placemaking,andMarketing,StrategicPlanning,andOutreach.

Signage and WayfindingAmainchallengeofLaMarquetaisthephysicalrestraintsofthemarket.Whilethelongstripof

buildingunderneaththeMetroNorthraillineisviewablefromthestreet,thesignageofLaMarquetaisnotparticularlyclearoreasilyvisible.Also,whilewalkingonParkAvenueonemayseeasignforLaMarqueta,itisunclearhowtogetinthemarket.Therefore,bettersignageisneededingeneral,andinparticularinregardstowherethemarketentranceis.Additionally,ParkAvenueisbifurcatedinthissectionofthecity,making street crossings more dangerous and less clear. ThesidewalksonthesidesofParkAvenuethatborderLaMarquetaarealsosmallerandusedinfrequently.AllofthesestreetelementsservetoisolateLaMarquetaandmakeitinhospitabletopedestrians.TheEDC,orCommunityBoard11,couldworkwiththeDOTandothercommunitystakeholdersinordertoimprovepedestrianaccess,lighting,andsignagearoundLaMarqueta.Inadditiontocateringtopedestrians,there also need to be ways to connect La Marqueta to existingpublictransportation,includingthesubwaystopat116thStreetandtheMetroNorthstationat125th. Signageandwayfindingwillhelporientpeople,butanadditionallong-termgoalcouldbecreatingashuttleserviceorademarcatedpathwayfromthe125thstationtoLaMarqueta. InsideLaMarquetatherearealsoseveraldesignchallenges.Thelong,narrowhallwaysgoingbackfromthefrontmakethevendorsinthebacklessvisible.Also,becauseofthedesignofthemarket,onlythetwovendorsinthefrontareabletohaveseating.Apartfromacompletearchitecturalredesignofthemarket,thereareseveralrecommendationsforthemarket’sinteriorthatmaymakeiteasiertonavigateandensure

Problems-LackofExteriorSignage-Unsafe/UnclearcrossingsandsidewalksonPark Avenue-LackofConnectiontoPublicTransportation-LackofInteriorSignageandWayfinding-MarketSeatingonlydesignatedfortwovendorsSolutions-MoresignageatthePlaza,115thStreetentrance,andnearpublictransportation-Createinteriordirectoryofvendors-Pedestrian/CrossingImprovements-Improveandunifymarketseating

thateachvendorcanbesuccessfuldespitetheirlocation.First,alargemapofthemarket’slayoutwouldbehelpfulatthefrontofthemarkettogiveeachvendorvisibility.Secondly,communalmarketseatingatthefront,asopposedtoseatingthatisdesignatedforjustonevendor,wouldpossiblyencourageothervendorstosellpreparedfoodsforon-siteconsumption.Asitexistsnow,theseatingfeelsdesignatedforeitherHotBreadAlmacenorBreezyHill,althoughthereisnosignageexplicitlystatingthis.

Placemaking TheimageandbrandofLaMarquetais a hodgepodgeofattempteddesignsandretrofitsthatdonotgotogetherinanaestheticorfunctionalmanner.Forexample,theillustrationsonthesideofLaMarquetashowpigsandcowswithsignsthatsayPork,Tops,andBeefatLaMarqueta.Thesegivetheimpressionofmeatwholesaling,andharkenbacktotheolderdaysofthemarketasopposedtoitscurrentsituation.Inaddition,thesignageoutsideLaMaquetaisinorange,withcolumnspaintedingreen.ThePlazaispaintedorangeaswell,inalmostaprisonlikefashion.Whilenoneofthesedesignelementsareinthemselvesnegative,theydonotgotogethertocreateasenseofplaceandidentityforLaMarqueta.Inordertogeteitherlocalsortouriststoshopthere,LaMarquetaneedstoformanidentitysothatitsbrandisrecognizable.Suggestionsforthisincludepickingaclearcolorscheme,font,andbrand.Thismotifshouldappearinthemarket’sinteriorandexterior,inthePlaza,andonanyprintedmarketingmaterialsandwenupdates.Otherelementstocreateasenseofplaceandbrandcouldbeputtingplantersoutside,paintingthesidewalks,andencouragingvendorstoparticipateinlaMarquetabranding.Thisbrandingcouldalsobetransferrabletohelpconnectthemarkettopublictransportation,includingthe6stopat116thStreetandtheMetroNorthstationat125thStreet.IfLaMarquetaistobecomeadestinationatall,theEDCwillalsoneedtosortouttheissueofthemarket’sconfusingnomenclature.DoesLaMarquetameanonlythemarketinBuilding4,ordoesitmeanalltheBuildingsandlotsunderneaththeviaduct?TheEDCneedstorebrandtheentireviaduct,inadditionthemarketbuilding,sothatthenomenclatureofLaMarquetabecomesclear.

Marketing, Strategic Planning, and Outreach Inordertoincreasefoottraffictothemarket,acomprehensivemarketingandstrategicplanisneeded.Inadditiontoimprovementsinsignageandwayfinding,betterlighting,streetscape,andpedestrianimprovements,theinternalmarketingneedstobeampedupbytheEDC.Atpresent,theEDCmaintainsaninternalFacebookwebsiteforalloftheNewYorkCityMarkets,butdoesnothaveanindividualaccountforLaMarqueta.TheEDCandLaMarquetahavealsohadminorsuccessesineventplanningatLaMarquetaandinthePlaza,butneedtobuildonthisinordertomakeLaMarquetaadestination.Eventplanningcanalsobehelpedbyformingkeypartnershipswithstakeholders,includingcommunitygroups,Latinandminoritybasedgroups,orevenManhattantouristandvisitorgroups.ThePlazacanhosteventsinthewarmermonths,and

Problems-HodgePodgeimageandlackofbrand-Uncleardefinitionof“LaMarqueta”-LocationunclearSolution-CreateabrandforLaMarquetatogoonallmarketingmaterialsandwebcontent-ReinforcebrandinthePlaza,marketfaçadeandsidewalk-CreatemapsandlocationdefiningtheMarket(Building4)vs.therestofLaMarqueta

willneedtobeprogrammedforeventsonweeknightsandtheweekends.Othermajorthemesthatcouldbetiedintomarketing,inphysicalanddigitalform,isthehistoryofSpanishHarlemandLaMarquetaitself,farmer’smarkets,andthelocallygrownandorganicfoodmovement.Alongwithcraftingadistinctmarketingmessageandbrand,theEDCshouldprovidetripplanningassistanceonitswebsiteorsocialmediapagetogivepeopledirectionsonhowtogettoLaMarqueta,andtotellthemwhatisthere.Particularlyasmanyoutoftowners,andevenpeopleinNewYork,arenotfamiliarwiththeEastHarlemneighborhood.Inadditiontopotentialcustomers,theEDCcouldalsoreachoutandmarkettheBuilding4orPlazaspacetopotentialeventcoordinators,operators,orothergroupsthatcouldusethespacetoplanevents.Thisway,theEDCcansharetheburdenofeventplanninganddetermininglogisticalissues.

Problems-Lackofinternalmarketingstrategy-Lackofcommunitypartnerships-NeedtocreatedestinationSolutions-IncreaseSocialMediapresencewithindividualFacebookandTwitterpage-Reachouttostakeholders:communitygroups,BIDs,LatinandMinoritybasedgroups,andNYCtouristandvisitorgroups-Exploreotherrelatedthemesforpotentialprogramming:HistoryofSpanishHarlem,farmer’smarkets,local/organicfood-MarketPlazaspaceforrentals/events

New Senior Project Manager

Management Improvements

Design, Branding, and Community Outreach

-Enforce Market Rules -EDC to be

proactive instead of reactive - Increased EDC investment (event planning, physical improvements, etc.)

-Extend market hours on a trial basis

-Stricter economic regulations on potential tenants, retroactively enforce on “legacy tenants”

-Possibility of Cooperative Management Structure

-Possibility of transfer to new EDC department

More signage at the Plaza, 115th Street entrance, and near public transportation

Create a brand for La Marqueta to for marketing materials and web content Branded

Signage in interior and exterior of market

Increase Social Media presence with individual Facebook and Twitter page Create and

define new nomenclature

Create interior directory of vendors Pedestrian/Crossing Improvements

Improve and unify market seating

Reinforce brand in the Plaza, market façade and sidewalk Create maps and location defining the Market vs. the rest of La Marqueta

Market as a community and destination market, event space, and cultural asset

Reach out to stakeholders: community groups, BIDs, Latin and Minority based groups, and NYC tourist and visitor groups

Market Plaza space for rentals/events

Explore other related themes for potential programming: History of Spanish Harlem, farmer’s markets, local/organic food

Figure 17: Recommendations Diagram

VII. Conclusion

AlthoughtheimprovementsatLaMarquetamayseemdaunting,thecurrenteconomicandsocialclimateprovideagreatopportunityformarketsuccess.Changingneighborhooddemographicscanactuallyworkinthefavorofthemarket.Gentrification,howeverscary,presentsopportunitiesforvendorstofindanichemarketforlocal,artisanal,orotherwiseuniqueproducts.Atthesametime,theEastHarlemLatinopopulationremainsstrong.Thesuccessfulvendorwillbeabletostrikeabalancebetweencommunityconcernsandgentrifyingtastes.Keychangesinthemarket’smanagementstructurewillalsohelpitsvendorscompete.Becauseonestall’sappearanceaffectsthewholemarket,stricterrulesmustbeputinplacetomakesureallvendorsaremeetingbasicstandards.Improvingaccessandvisibilityofthemarketwithintheneighborhood,aswellasbettersignageintheimmediateproximity,willhelpmaketheshoppingexperienceamorepleasantone.Reachingawideraudiencebyampingupmarketingeffortsshouldhelpthemarketbecomemoreofadestination.

Ultimately,however,itisuptotheindividualvendorsandbusinessesinLaMarqueta,nottheEDC,tocreateaviablebusinessplanandtargetaspecificcustomer.Marketingandbrandingeffortswillbefornaughtifpeoplecometoanempty,orhalfopen,market.WhilethehistoryofLaMarquetaandSpanishHarlemiscompelling,achangingEastHarlemaswellasshiftingconsumptionpatternsmeanthatthereisnoroomtomaintainthestatusquo.Themarketshouldrecognizeandappreciateitspast,butalsolearnlessonsfromitsdecline,inordertobuildanattractive,accessiblemarketthatiscapableofbringinginnewcustomersfromboththeneighborhood,NewYorkCity,andbeyond.

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Appendix

Figure1:LaMarquetaSitePlan(Source:NYCEDC) p.6

Figure2:LaMarquetaMile(Source:HCDC) p.7

Figure3:CensusTractLocaterMap(Census) p.14

Figure4:PopulationGrowth2000-2010(Census) p.14

Figure5:Non-HispanicPopulation2000-2010(Census) p.15

Figure6:HispanicPopulation2000-2010(Census) p.15

Figure7:RetailbyType(ReferenceUSA) p.17

Figures8&9:InteriorSeatingFacing115thStreet(A.Scattergood) p.20

Figure10:LaMarquetaBuilding4InteriorPlan(NYCEDC) p.20

Figure11:VivaProduce,LegacyVendor(A.Scattergood) p.22

Figures12&13:VacantStalls(A.Scattergood) p.23

Figures14&15:MercadoCentral(MercadoCentral) p.25

Figure16:ParkAvenueExterior(A.Scattergood) p.32

Figure17:RecommendationsDiagram(A.Scattergood) p.35

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