HARRISBURG, Pa. — A new financial plan has been agreed upon between the Broad Street Market board of directors and its vendors following a meeting held Wednesday evening.
Rent for Broad Street Market vendors will increase by 25% following a unanimous vote by a board of directors, that now includes three vendor representatives, to keep the market afloat during financial challenges.
The rent hike will take effect for vendors once their existing lease agreement expires. Vendors under a month-to-month contract will take on a one-year lease agreement starting on March 1 with the rent increase included.
The approval follows a decision in early January to suspend a nearly doubled rent hike after it was met with backlash from vendors and the Harrisburg community.
“Twenty-five percent is still a lot, it’s a big increase but it's survivable for most businesses," said Theo Armstrong, founder of Zeroday Brewing Company.
Armstrong was one of three vendors voted in as vendor representatives on the board at Wednesday's meeting which allowed both parties to come to a fair conclusion that all parties agreed upon. It was a representation that did not exist during the first rent hike proposal.
"These are the first times a lot of us have seen these numbers, been a part of that process and been invited to the table to come up with a solution," said Armstrong. "I think that’s how the best deals are made."
It's a fair agreement board members are thrilled to have finally reached after weeks of discussions and negotiations.
"I’m beyond thrilled that we’re continuing to make progress, no doubt it’s going to continue to be a challenging time, but I want to reassure everyone the market remains open," said Eric Hagarty, a member of the Broad Street Board of Directors. "It will remain open."
They add that bringing vendors into the discussion was a vital piece to coming to a fair solution.
"The vendors are the ones that really know their businesses and having their input is essential," said Hagarty. "They know best oftentimes of what they need, and I think working together as opposed to appositionally will make things run much more smoothly moving forward."
The need for a new financial plan was expedited after a 70% loss in revenue from a fire last July put the Broad Street Market in a $160,000 deficit for the upcoming year.
However, the 25% increase in rent along with savings through changes in expenditure, a tentative payment agreement with utility providers and a $30,000 donation from the William Penn Social Association has bought the market time to come up with a longer-term solution.
Assuming the temporary tent for the Broad Street Market is up and running in early spring, the board estimates the new financial plan will give them until July before their cash flow runs out. They have until then to come up with roughly $71,000 to cover the operation costs for the rest of the year. It's a solution both the board and its vendors are confident they can come up with.
"I don’t think any of us as small business owners, especially through the last couple years aren’t used to looking at numbers like that and figuring out how to survive," said Armstrong.
The board is weighing different options including sponsorships along with changing to a new property management company. Midtown Property Management Services attended the meeting and offered some of its services free of charge which the board is considering. A special meeting to approve a contract that is agreed upon has been set for next Wednesday.
It's ultimately become a community effort to keep an iconic community space in Harrisburg alive.
"The community is why I think most of us set up business in Harrisburg and it’s why small businesses thrive in this city," said Armstrong. "It’s what Harrisburg does best they show up and fight for what matters."