business plan brantford farmers’ market business plan 2010 final.pdf · farmers' market...

BUSINESS PLAN

Brantford Farmers’ Market

January 2010

Business Plan 1Brantford Farmers' MarketJanuary 2010

EXECUTIVE SUMMARY

Purpose of Business Plan:

City of Brantford Council passed the following resolution;

WHEREAS at the meeting held on June 22, 2009, Council directed the City Manager to develop a process for the Brantford Airport Board, Golf Board and Farmers' Market Vendors Association to update existing or develop new business plans with the predominant goal to having the respective service areas move to financial independence from City taxpayers no later than the start of the 2013 fiscal year; and

WHEREAS the Brantford Airport Board, Golf Board, and Farmers' Market Vendors Association were directed to present updated or new business plans detailing their compliance with the goal of financial independence for consideration by the Finance Committee no later than its meeting scheduled for December 9, 2009; and

WHEREAS on August 28, 2009, the City of Brantford was advised that its applications for funding through the Community Adjustment Fund (CAF) for a new commercial aircraft hangar at the Brantford Airport in the amount of $700,000 and for renovations to the Brantford Farmers’ Market in the amount of $391,435 had been successful; and

WHEREAS under the CAF Program, the renovations are required to be completed by March 31, 2010 in order to receive the funding; and

WHEREAS the same staff from Engineering, Property Management and Finance are working on the Business Plans, as well as the two projects receiving funding under the CAF Program;

NOW THEREFORE BE IT RESOLVED THAT the date for submission of the Golf, Airport and Farmers’ Market Business Plans to the Finance Committee BE CHANGED to no later than the meeting scheduled for January 15, 2010 to ensure that there is sufficient time in order to get all financial information reviewed and included in the Business Plans for these facilities.

The Farmers Market Association was given the option develop their own business plan for presentation to Council utilizing available or to have the review done on their behalf. The Farmers Market Association opted to undertake the completion of a business plan showing financial independence.


Methodology Utilized

The overall business plan development consisted of the following process:o Review of current Governance, role and responsibilities of the Farmers

Market Associationo Assessment of all Options available to the Association to achieve cost

recovery including whether or not to remain in the business of providing a farmers market for the community of Brantford

o Assessment of current facilitieso Operational Assessment including management of operations, current layout

of operations, staffing levels, building maintenance, equipment, current policies/ procedures

o Current target market and user reviewo Industry Analysiso Current Situation Analysiso Marketing Analysis/Strategyo Five (5) year financial review and analysiso Recent Investments/Future investments required

Once the necessary assessments and analysis were completed a roadmap to financial independence was developed. This included the strategy going forward, recommendations in order to achieve success, identification of barriers/obstacles to be removed, financial targets and expectations and the clear identification of the role of the municipality and the Association in the way forward.

Options Considered and Final Recommendations

As the mandate of the motion was to have the Farmers’ Market move to financial independence from City taxpayers no later than the end of fiscal year 2012 the focus was on changes required to accomplish this task. Previous Service Review initiatives investigated various options (sustainability/closure) of the Farmers Market. The two options considered to reach financial independence were:

1. To Design and Build a New Farmers Market to meet increased vendor demand, alleviate current building, parking, design, health & safety, and accessibility issues.

2. To Modify Existing Farmers Market as much as possible given limitations of existing building to alleviate current building, design, health & safety and accessibility issues


DESIGN/BUILD NEW FARMERS MARKET - CHARTAdvantages Disadvantages Costs Benefits1. complete redesign of farmer’s market

including parking2. increase space to accommodate more

indoor vendors which leads to increase revenue stream

3. increase “on-street” visibility on Icomm Drive which would potentially increase number of customers

4. increase number of prepared food vendors (larger kitchen facilities) leading to increase customer base

5. ability to rent out kitchen facility during non-market days, increasing revenue stream

6. increase seating area indoors leading to customer convenience and therefore increase number of customers

7. ability to encompass area for events, workshops/seminars, leading to increase customer draw

8. space can be rented out leading to increase revenue stream

9. ability to increase parking for customers10.ability to increase number of seasonal

outdoor vendors11.ability to have outdoor food vendor year

round

1. unknown environmental factors on current site

2. timeline to construct is approximately 12-18 months

3. increased operational costs and space leading to potential increase in vendor stall rates

4. vendor stall rates would increase to reflect capital investments

1. Estimated costs at $1.4 million

2. Current Capital Fund at $565,000; need to generate $835,000 more or have City amortize costs over 20 years to vendors similar to past agreements

1. increased number/type of revenue streams and overall revenue

2. increase number of customers to market

3. Building design specific to meet needs/vision of farmers market


MODIFY EXISTING FARMERS MARKET - CHART Advantages Disadvantages Costs Benefits1. currently filled to capacity (all stalls rented)2. upgrade facilities to meet requirements is

less expensive than new building3. can make modifications now instead of

waiting until capital funds are in place for new building

4. remain in existing location5. can encompass seating area (indoors and

outdors) 6. ability to increase accessibility

(washrooms, parking)7. ability to increase parking for customers8. ability to increase number of seasonal

outdoor vendors9. ability to have outdoor food vendor year

round

1. operate within current building with upgrades only to structure, parking lot, washrooms

2. no additional space for more indoor vendors

3. space planning not as effective

4. some cases it is a band-aid approach to repairs (floor)

5. space is limited to current building parameters

6. limited options for accessibility requirements (services at stalls for disabilities/wheelchairs is limited)

1. $391,0000 federalgrant changes

2. $150,000 for additional changes beyond federal grant approvals

3. additional dollars should be spent on standardizing vendor stalls, accessibility and modifying existing safety concerns with stalls.

1. upgraded facility at a fraction of the costdue to grant

2. ability to complete all requirements with some dollars remaining for future upgrades in capital fund

FINAL RECOMMENDATION: It is recommended the City of Brantford retain its farmer’s market operations and modify the current facilities. This option was based on serious consideration of the funding available through the Community Adjustment Fund and the timelines associated with the funding. The market provides unique benefits and quality of life to its customers, community members and visitors to the City of Brantford.


HIGHLIGHTS OF FINDINGS:

Role of Public/Farmers’ Markets:

Public/farmers’ markets are unique economic and social institutions, which are increasingly being viewed as tools to achieve a wide variety of goals including:

o Improved access to quality foodo Farmers’ markets play a key role in the marketing of Canadian agricultural

products; they play a significant role in generating farm incomeso Provide better marketing opportunities for family farmerso Improving social interaction in urban neighborhoodso Increasing social cohesiono Providing employment opportunities to local communitieso Creating entrepreneurial environment to small business formationo Make positive contributions to the economy and to Canadian communities:

thereby enhancing community economic development.

For public markets to provide the benefits discussed above, they first must be economically sustainable, and this often requires some form of external financial support. A key issue in obtaining public and other funding for public/farmers’ markets is whether the markets can demonstrate that they deliver economic benefits to the community.

Policy makers should seize upon the opportunity and acknowledge that farmers’ markets are a bona fide part of the food system rather than just “special events” or tourist attractions. The steps that can be taken to alter this misconception are low cost and use existing administrative structures. It is essential to local economic development to treat farmers’ markets as more than recreation or entertainment. Farmers and value-added processors need to be assured that if they are willing to sell their products at farmers’ markets; they will have security of the venue.

Role of Farmers Market Vendors Association

The role of the Farmers Market Vendors will continue to be the liaison between City staff and market vendors. The following changes should be implemented in 2010 forward:

o Be directly involved in the budget process annually to provide assistance and feedback where possible

o Be directly involved in the review of bylaws governing the market vendors annually or as needed and provide assistance and feedback where possible

o Be involved in the development of a marketing plan annually to provide assistance and feedback where possible


ROADMAP TO FINANCIAL INDEPENDENCE

In order to achieve financial independence of the Brantford Farmers’ Market, it is imperative that a number of actions be taken simultaneously. They include changes as outlined above in the model for financial independence and include:

1. Recognition of the City to remain in the Farmers Market business and make public statements of support to decrease general public uncertainty and stabilize revenues at the market.

2. Greater involvement of the Farmers’ Market Vendor Association in the development and monitoring of budget and the inclusion of the association in any proposed changes to the budget. The Association would remain involved in the market management and administration, but would not become a separate third party board that would take full responsibility of the market.

3. Implement Capital Investments as outlined above beyond those paid for through federal funding and allow remain funds to be utilized for future capital requirements (accessibility and standardization of vendor stalls/facilities)

4. Release TP8 reserve funds to be utilized for the development of a professional marketing plan and the implementation of such

5. Implement changes to bylaws to better manage the market and provide stronger guidelines of operation

6. Delete overhead charges and allow for the charges by other departments to compensate for support by Property Management department (See Appendix 1)

7. Implement POS system for the collection of revenues by vendors and an ATM machine for the convenience of customers

8. Recognize and approve the forecasted vendor stall rates from 2010 through to 2013

9. Redevelopment of website

10.Modifications/amendments to current bylaws to allow for:o Increase in Vendor Rental rates (rental fees based on total square

footage at a specified per square foot cost with prescribed increases between 2010 and 2013 as outlined in the proposed budget)

o Charges to be implemented for Electrical use base on flat fee per piece of equipment


o Vendors to include full-time Outdoor Vendor (such as french fry stand)o Vendors to include Outdoor Seasonalo Revise wordings where appropriate to reflect No Exclusions on Prepared

Food Vendors (more than one, delete monopoly)o Develop guidelines for site lines, height restrictions, safety factorso Delete one (1) month free incentive if vendors pay upfront for the yearo Develop standards for stalls (counters, space, etc)o Implement regulation that all equipment to be turned off on Saturday or

vendors can pay per day per piece of equipment it is ono Implement Adjudication process for new vendorso Increase enforcement of bylaws


BUSINESS OVERVIEW:

Background/History of Operations

The Brantford Farmers' Market is located at 79 Icomm Drive just south of the downtown district. The BMF has been in this location since 1965. Prior to 1965, the market was located on the lands where the current Market Square Mall is located.

Facilities

The building, fronting on Icomm Drive, is a 9,766 square feet (923 square meters) rectangular steel structure with metal roof. The building envelope requires a substantial amount of work to improve its performance (currently underway as a result of Federal Funding Initiatives and to be completed by March 31, 2010).

The Brantford Farmers’ Market is located on or within the area identified as abandoned landfill site No. 7 in the City's Abandoned Landfill Sites Report, dated March 1994. The site was used as a former canal channel, was abandoned and replaced with a piped storm sewer in 1950, with the balance of the canal trench filled with mixed municipal wastes. Areas of Site No. 7 were investigated in the 1994 study and showed typical mixed waste classes and somewhat elevated levels of methane gas east of the current Ring Road. No disposal activities have taken place within the last 25 years and therefore no MOE approvals would be required for change of use under the EPA for landfills. It is uncertain if the site were to be disturbed through the building or relocation of buildings below grade if there would be an environmental issues/contamination as a result.

1920 Statute

The City of Brantford is obligated, as a result of a 1920 Statute to always maintain a suitable site for public market purposes.

Governance

Since 1965 the Brantford Farmers’ Market Vendors’ Association has been the recognized user group who liaised with City staff on behalf of the market vendors. The Association has a formal structure and it elects its executive and board members annually. The current Chair of the Vendors’ Association is Mr. Gordon Swan.


The City of Brantford currently collects an annual Association from each vendor on behalf of the Association and pays the amount directly to the Association annually. The funds are then utilized as donations to community projects/events/causes as decided upon by the Association.

The Brantford Farmers’ Market has been administered by the Property Management Department since 2001. Prior to 2001, the administration of the market was the responsibility of the City Clerks Department/Real Estate Department

Although the Farmers’ Market Vendors’ Association is the official liaison with the City, it is an unincorporated entity that has by-laws governing the general conduct of the business and affairs of the Association.

Role of Public/Farmers’ Markets:

Public/Farmers’ markets are unique economic and social institutions, which are increasingly being viewed as tools to achieve a wide variety of goals:

o Improved access to quality foodo Farmers’ markets play a key role in the marketing of Canadian agricultural

products; they play a significant role in generating farm incomeso Provide better marketing opportunities for family farmerso Improving social interaction in urban neighborhoodso Increasing social cohesiono Providing employment opportunities to local communitieso Creating entrepreneurial environment to small business formationo Make positive contributions to the economy and to Canadian communities:

thereby enhancing community economic development.

For public/farmers’ markets to provide the benefits discussed above, they first must be economically sustainable, and this often requires some form of external financial support. A key issue in obtaining public and other funding for public markets is whether the markets can demonstrate that they deliver economic benefits to the community.

Farmers markets are a great success story for Ontario with strong consumer and vendor support as evidenced by the growth in attendance and number of markets. Success is built upon many factors including a desire to return to healthier, fresher, locally produced products and a strong belief in the integrity of shopping in the community. They are very popular with their customers: 96% of customers said their farmers’ market experience met or exceeded their expectations


Products/Services offered

The Brantford Farmers Market is one of 154 markets across Ontario that provides consumers with an alternative shopping experience and local products. Market vendors offer a vast array of food and non-food items, but clearly the largest demand is for meat,fresh fruits, vegetables, cheese and baked goods

Customers feel a strong sense of community and local pride in attending farmers markets and are highly motivated to purchase fresh, in-season produce in clean, simple surroundings.

Events/special functions

In the past six years, the staff, in cooperation with the vendors, initiated special community events such as Strawberry Fest and the Fall Festival. The events attracted additional shoppers, especially families with young children for the day. The same events are repeated every year with different themes to further encourage young families to attend the Brantford Farmers' Market.

Benefits to Community

National Farmers’ Markets Impact Study found that Farmers’ Markets remain strong contributors both to the economy and to the fabric of Canadian communities. Farmers’ markets continue to show growth on an annual basis.

The social role of the Market is to provide a venue where local producers, crafters and so on, can gather to offer their products in a clean and friendly environment. In doing this, a greater sense of community is created. The Farmers’ Market is a meeting place for the community, and this is clearly seen on a weekly basis. Beyond this, the Farmers’ Market vendors make substantial weekly contributions of food to local charities which is has been going on for over 30 years.

The personal interaction between vendors and customers is a dynamic that is critical in creating a strong social fabric for the community. For these reasons, the social role of the Market is very alive and has a great strength and depth. This strength and depth is scene by the continued support of the Market from its community through times like the Service Review and simply by the increase in attendance over the past several years. Our events continue to achieve the goal of attracting new customers, in particular, young families, which are 30% of the Farmers’ Market customer base as noted earlier in the business.


Support Of Local Farmers

“I think that we are losing too much of our farming in the province of Ontario, and we have to support the farmers. I am sick and tired of buying imported fruits and vegetables from the states when we can grow them here. That’s probably the main reason that I come down here is because I don’t want to buy imported fruits and vegetables when I can get locally grown”.

Eighty-three per cent of respondents agreed strongly about supporting local farmers. Similarly, 85% of these Farmers’ Market patrons agreed strongly with buying local. The following comment, though less common, links individual farm support to broader spatially oriented values:

“Because if you don’t support your own community then that portion, that sector of your economic community is going to whither. And that weakens the whole fabric of our society and of this community in particular. So that’s why those are so important to us.”


ECONOMIC IMPACT ANALYSIS/SPIN-OFF OF OPERATIONS FOR MUNICIPALITY

Community Economic Development

Farmers’ markets can be defined as social enterprises or as co-operatives. Co-operatives of the twenty-first century can be understood to be “an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise”. (Conn, 2005, p. 4).

All the customers surveyed (1998) believe that it is important to support “local” growers at the market, which explains the fact that the average spending in the Brantford market per customer per visit is $32.06. It is estimated that approximately 4600 people visit the market weekly during peak season and approximately 3000 during off-season, resulting in approximately 203,410 people annually. This translates into an estimated annual volume of sales of $6.52 million. By using the economic multiplier of two (2) the estimated annual economic impact of the market on the community at large is $13.4 million (in 2005). The Farmers’ Market also sustains between 50 and 70 jobs (depending on the season) and creates approximately 120 additional jobs within the community.

In addition, the market provides a venue from which the citizens of Brantford and area are able to purchase healthy fresh produce that is locally grown. This contributes positively to the health and wellness of the community. In the 2002 and 2005 updates of a 1998 study conducted by Dr. Harry Cummings of the University of Guelph School of Rural Planning and Development, The study investigated the economic impact of 19 Ontario Farmers Markets; Brantford’s being one of the markets. The following conclusions for Brantford Farmers’ Market were confirmed:

o 75% of shoppers are regular, of which 48% visit the market almost weekly and 27% visit 1-3 times per month

o Farmers Markets are the #2 source for grocers for 62% of shoppers, coming in behind traditional grocery stores

o 95% of those that visit the market are there to buy, resulting in direct economic spinoff

o Fresh, in-season and locally produced products top the list of what shoppers want. Low price is the least important factor in drawing customers to farmers’ markets.


According to a new national study released by Farmers Markets Canada in February 2009 the impact of farmers’ markets on the Canadian economy was reported to be up to $3.09 Billion and sales of $1.03 Billion.

In a 2002 survey of over 800 customers from a variety of indoor and open-air markets around the country indicates that 60% of market shoppers also visited nearby stores on the same day; of those 60% said they visited those additional stores only on days that they visit the market. In addition the study shows that an overwhelming majority of farmers market customers also patronize at least one other nearby store on their way to/from the market with many visiting two or more stores in the same trip.

OPERATIONS

Current Infrastructure

Full municipal services are available to the site including hydro, natural gas, telephone and municipal water and sewage services. Storm drainage is provided along Icomm Drive in the form of enclosed sewers.

Recent Investments

Due to the controversary during the Service Review of the Brantford Farmers’ Market in 2006-2007, whether or not the City would continue to support a Farmers’ Market, and discussions of potentially relocating the market, no significant capital investments have been made to the market. However in the fall of 2009 the City applied for and was successful in receiving federal funding in the amount of $391,000 for proposed infrastructure changes to the current facility. These funds will cover a large portion of the modifications required; however additional funds from the estimated capital fund of $525,000 will be required.

Current Staffing and Personnel Costs

The Business Plan adopted by Council in 2003 authorized staff to hire a part-time Brantford Farmers' Market Coordinator, which contributed to improving Vendor recruitment and retention, leading to 100% occupancy rate today and increased revenues from rental fees.


Overhead Support and Costs

Based on historical financials provided the Brantford Farmers’ Market has been charged an annual fee of $17,000 in the form of charges from other departments. These fees were charged for the administration of the farmers’ market through the Property Management department. In 2005 a part-time Market Manager was hired to work at the market a maximum of twenty (20) hours per week to perform the administrative functions. In addition, the Property Management department provided support services. In 2009 the City imposed Overhead charges that were assigned to the Brantford Farmers Market based on internal calculations and methodologies.

Hours of Operation

The Brantford Farmers’ Market operates all year round on Fridays from 9:00 a.m. to 5:00 p.m. and Saturdays from 7:00 a.m. to 2:00 p.m. In the summer months, several out-door vendors are added to increase the sale of “Ontario” grown fresh produce and farm products in the Outdoor Market located in the parking lot adjacent to the market building. A number of vendors utilize Thursday’s to prepare for market and are in the facilities. All vendors have keys and access to the building at any time.

Vendors

There are currently forty-five (45) stalls that are rented by 30 different vendors that are broken into four (4) categories with the potential for two (2) additional revenue streams. Currently the four categories of vendors are:

o Refrigerated (butchers, caterers, vendors etc utilizing refrigeration equipment)o Non-Refrigerated (produce, flowers, bakery, craft, vendors etc not utilizing

refrigeration equipment)o Prepared Food Vendor (coffee bar, vendor utilizing kitchen facilities)o Outdoor (seasonal) Vendors

Five vendors operating 12 of the stalls have been located in the market since 1965. Layout 2A & Appendix 2B lists the vendors as of October 2009. There are additional outdoor vendors that participate on a seasonal basis with an average of 12 stalls outdoors. It is anticipated with modifications to the current site the number of seasonal outdoor vendors can be increased.

Additional vendors that could be added include the expansion of outdoor seasonal vendors (relocated to east end of building to be visible drawing card to general public) and a year-round outdoor vendor (french fry stand or other prepared food vendor).


It is recommended that the current bylaws limiting one prepared food vendor also be expanded to include others, as a number of inquiries have been denied due to current bylaws. In addition, a survey of other markets shows higher levels of prepared food vendors, which draw the public, encourage them to stay longer and to taste the products onsite as well as providing an aroma as stimulus within the market environment. Many current vendors are interested in selling their own products as prepared food items available for sale.

TARGET MARKET

In defiance of all the news about economic globalization covering the planet with big box stores, public markets are undergoing a sweeping renaissance as people around the world strive to rebuild local economies and keep human connections flourishing.

People love markets for so many reasons, yet the reason that is always the response is the experience: seeing other people, opportunities for impromptu conversations, and the unexpected sensory delights. This is what draws people back again and again to their favorite markets

Customer Profile

It is estimated that approximately 4600 people visit the market weekly during peak season and approximately 3000 during off-season, resulting in approximately 203,410 people annually

The majority of the Market shoppers, over 70%, are females with the majority of them between the ages of 23 and 74 and brings their children along for the experience. Although the most common mode of travel to the market is by car, the average travel time to the market is 10 minutes, indicating that most shoppers live within the city boundaries.

On average, each customer attends the market more than 3 times per month. Ninety seven percent of the shoppers are attracted to the market by the “fresh products” and over 75% of the shoppers shop from the same vendor(s) during each visit.

Almost all shoppers interviewed (during previous study in 2006) indicated their satisfaction with the quality of produce, variety of the products and quality of service in the market.

It appears that approximately 70% of the customers have been frequenting the Brantford Farmers’ Market for more than 3 years, the 30% of the customer base that are new customers (less than 3 years) is a relatively high proportion in comparison with the provincial average. This could signal the relative success of the Brantford Farmers’ Market in attracting and maintaining new shoppers.


Patron Motivations

Its fresh produce, it’s local, especially in the summertime. And, I like the ambience, I like the atmosphere. It’s very personal; it’s not a big corporation running the whole show. Its just individuals doing their job – and I like that. It’s about being healthy, and you’re supporting your community and you’re buying healthier food because it’s directly from the field – at least in the summer it’s local.(Brantford FM patron respondent 2004)

Similar to most Farmers’ Market surveys, freshness (commonly associated with healthinessand being locally produced) was a primary motivation voiced for coming to the market. More than 70% of respondents strongly believed that Farmers’ Market products were fresher than food products available elsewhere. Twenty-eight per cent of respondents also believed that Farmers’ Market food products were healthier than that available elsewhere.

238 Brantford Farmers’ Market patrons ithat participated in the study, dentified their shopping experience as strongly associated with the welcoming quality of the social and cultural interaction at the Farmers’ Market. Part of the social interaction motivation was clearly tied to sentiments around ‘tradition’: Markets go back to ancient times – and it’s good for the soul’, while a number of respondents voiced a mixed set of sentiments similar to the following:

. . . we love it because it is the fabric of the community. Price isn’t that much of a concern because again it’s the whole social aspect, and the culture of eating, . . . and the fact that we were a rural culture until 1949 – all of those things are important to me.

Data on price as motivating factor showed that only slightly more than 20% of respondents held price as important relative to social interaction and other factors in FM patron participation. Interestingly, there are no statistically significant differences in attitudes to price relative to any of our demographic variables.

Though less strongly held than freshness and local farm support, still close to 80% of respondents either agreed or strongly agreed with the social interaction motivation. For those buying <20% of their food at the FM, we also see a greater interest in ‘social and community activity’ than those who buy less of their food basket there – social and cultural values are closely correlated to the lack of importance of price as a motivating factor. More than 75% of the patrons found price a generally negligible factor in their decision to shop at the market.

Capacity Ratio’s (% of capacity used)

Occupancy rates for vendor stalls is currently at 100% capacity. Vendor rental fees are based on the four (4) categories previously outlined and include a marketing fee.


Types of Users (vendors)

There are currently 30 vendors renting a total of 45 stalls at the Brantford Farmers Market. The following is breakdown of the vendor mix:

Vendor Type Number of VendorsRefrigerated (butchers, vendors etc utilizing refrigeration equipment)

9 vendors14stalls

Non-Refrigerated (produce, flowers, bakery, craft, vendors etc not utilizing refrigeration equipment

11 vendors18 stalls

Prepared Food Vendor (Toffee bar, vendor utilizing kitchen facilities

10 vendors13 stalls

Outdoor (seasonal) Vendors Fluctuates yearlyMaximum number of

stalls currently utilized is 12

As new vendors are considered, great care should be taken in viewing, tasting and evaluating their products along with assessing their whole approach to product presentation and service. Soliciting vendors while at other markets gives great opportunity to assess vendor potential

INDUSTRY ANALYSIS

o Over 15 million shopper visits were made to Ontario farmers’ markets in 2008o Farmers market continues to show growth on an annual basis of approximately

7.3% in saleso 67% of those surveyed by Farmers Markets Ontario said it was extremely

important to buy produce from farmers that sold locally grown product where possible

o Current customers will increasingly look for more product selection and convenience in locations, payment options and lifestyle amenities to ensure their loyalty

o Farmers market vendors typically primarily produces (77%) who achieve a significant portion of their income from participation in the markets

o Shoppers want more vendors, more opportunities to shopo The development of the farmers’ market and growth of business will be

achieved through the attracting and promoting more primary producers and increasing the attractiveness and convenience of the market facilities.

o Focus should be on improving marketing efforts and making the physical market presence an attractive and more accessible venue


o Increasing pressure for Health and Safety requirements, parking needs for vendors and customers, customer demands for year round product selection, and the requirement to become accessible

o Recent heightened interest in local food, places an increasing demand on farmers’ markets especially in urban communities

o Majority of Ontario grocery shoppers are not using farmers markets. This is a target growth sector; they express a willingness to become patrons and are not visiting primarily due to convenience and lack of awareness. Future growth in the sector will require engaging these non-users through increased awareness of benefits, location, product selection, and hours of operation

o Future of farmers’ markets in Ontario is promising with consumer demand and interest closely aligned with support for local production and fresh, healthy food choices

o More aggressive marketing and promotion of markets, encouraging additional vendors and vendor capabilities, and the development of more improved facilities are all identified opportunities for growth of farmers’ markets

o Vendors are looking for more support in marketing of their locations through signage, advertising and website information and would like to attract new vendors in desired local product categories to increase customer traffic

Overall Size of Industry

Ontario farmers’ markets are an important contributor to the Ontario economy with impacts ranging from $641 million to $1.9 billion annually (2009 Farmers Market Ontario data). Farmers markets remain strong contributors both to the economy and to the fabric of communities in Ontario

Trends and Challenges (current and future).

According to Farmers’ Market Canada study released in 2009o 72% of market shoppers are female and 28% are maleo 71% of shoppers are 40 and oldero 96% of shoppers are Canadian born (82%) or have lived in Canada 20 years or

more (great opportunity to reach new Canadian and ethnic target markets)o 71% takes less than 15 minutes to get to the market from homeo 51% visit the market regularly, almost once a weeko 63% of the shoppers visit the market aloneo 67% of shoppers state that buying directly from a local farmer is extremely

important


o 22% of shoppers are new or infrequent users, representing a growth opportunity

o 96% of shoppers find that their market experience meets or exceeds their expectations

o 16% express the need for more variety of products through more vendorso 83% believe that food safety practices are better or about the same as grocery

storeso 93% of consumers are motivated to visit a farmers’ market because they want

to buy directly from a farmero Surveys indicate that 33% of shoppers can not think of any changes neededo 80% of market managers report that the number of shoppers at their markets

has increasedo 81% of market managers report that the number of vendors at their markets

has increasedo Increase/decrease in users/clients:

Farmers’ Markets in Ontario are generally experiencing resurgence due to the healthier trends in food selection and other environmental factors such as consuming local produce (hence reducing the transportation of goods) or organic foods which are likely to be locally grown.

According to a study conducted in 2005 by Farmers’ Markets Ontario that the average spending by shoppers has increased to $30 per visit resulting in total Ontario farmers’ markets sales of $645 million. This result in a total combined Ontario economic impact of $1.9 billion. In general sales are growing at about 5% per year.

Other farmers’ markets are also promoted as social and cultural experiences rather than “just shopping”. Special events are a major component of such markets’ programming and a large contributor to their livelihood and attractiveness.

Challenges In Attracting Younger Shoppers:

It appears from the current analysis conducted by Farmers’ Markets Ontario that generally Ontario markets are reversing the past trend of lack of younger shoppers and they are, though slowly, are attracting more young families. It is assumed that the healthy food choices and the interest in organic products are 2 of the reasons that contribute to this reversal.

Attracting younger shoppers and their families will secure the shopper base for farmers markets in general.


Ontario Market Profiles

ONTARIO FARMERS MARKETo 65% open Saturdays, 19% Fridays 13% Sundayso 45% open more than 26 days per yearo 68% outdoor, 8% indoor, 24% both in and out dooro 71% of vendors are indooro 86% report number of shoppers has increasedo 85% have not had an economic impact assessmento Insurance premiums annual are $636, and 93% have no claim history

VENDOR PROFILEo 60% of vendors sell fresh fruit and/or vegetableso 77% are primary producerso 49% only sell at one marketo 47% report greater than 50% of total farm income comes from sales generated

at marketo 67% vendors travel less than 50km to reach the marketo 50% of vendors report up to 5 jobs as a result of market participationo 45% serve 100 or more customers on each market dayo 28% sell more than $1000 on a market dayo Community and social aspects are a major attraction for vendorso Physical facilities and parking are primary concern for vendorso 60% of vendors sell at more than one marketo 51% of vendors serve between 50 and 199 customers a day and 67% sell

between $100 and $999 worth of goods a dayo 95% of vendors sell at their market every week it is open


SITUATION ANALYSIS

Current Position of Farmers’ Market

Infrastructure/Facility Issues

o Site is built on former landfill site, making any major modifications that require digging or moving of land potentially vulnerable to environmental issues. Any changes to infrastructure must utilize current facilities (water, gas, hydro) to avoid digging or movement of soil.

o Current site does not maximize visibility of vendors or events to draw general public in, parking facilities are currently limited (can be expanded into parkade); design of site is limiting parking/vendor accessibility and general flow of traffic.

o 100% capacity in current building for year round vendors with no option for future growth. Outdoor seasonal vendors are only opportunity to expand revenue streams and will be vulnerable to weather.

Operational Issues

o Farmers Market Vendors Association is held accountable for operations informally, but not included in operational management or budgeting.

o Out of date bylaws make it difficult to progress as a Market and also makes it difficult to enforce issues not addressed. A clear, updated set of bylaws is need to meet current needs of the Market on the vendor recruitment/retention side and on the enforcement side.

o Uncertainty of market has impacted both vendor and customer confidence levels.

o Uncertainty has led to the upgrading of facilities/building/site being placed on hold for three (3) years while reviewed. Net result was a reactive response to repairs and maintenance, increased dilapidation of building/facilities/site; tight time frames for modifications (no solid plan approved prior to application for funding) therefore taking away option of building new up-to-date larger facility that would accommodate for future growth given completion date of March 31, 2010 in order to utilize funding.

o No standards established for vendor market stalls (height restrictions, display restrictions, hanging of overhead signage/items, site line restrictions, safety/ construction of stalls, accessibility issues)


Staffing Issues

Currently there is a part-time Market Manager at the Farmers’ Market. Any additional efforts in Marketing of the facility will be limited based on the time available within the maximum twenty (20) hours allowed weekly. Unfortunately, even with the increase in vendor rental fees, decrease in expenses and deletion of overhead fees, there is not enough operational dollars available to hire a full-time Market Manager.

Management/Governance Issues

Currently the Farmers’ Market Vendors Association is not including in the annual budgeting process and marketing plan development. The City imposes the structure on the association instead of inviting the Association to the table to work in partnership to develop a reasonable annual budget and marketing plan for the joint success of the operations.

STRENGTHS/WEAKNESS/OPPORTUNITIES/THREATS ANALYSIS

Strengthso One of the most important findings was the value consumers place on being

able to buy food directly from the local farmers. While 92% of shoppers rated it as important, a full 62% rated it as “extremely important”

o Markets reflect local character the way no collection of chain stores cano Farmers Markets are probably the most successful tool for strengthening or

regenerating of downtowns of any sizeo At markets, shopping is an event, not a choreo Multiple levels of activity are endless; a more egalitarian activity centre is hard

to findo Successful Market that connects people across the barriers of age, race and

income. This allows for accommodation for people in the local neighborhood, the surrounding city and others from around the region. What this translates into is a community interaction that cannot easily be accomplished in other ways.

Weaknesso Many North end residents do not know Farmers’ Market existso Marketing is minimalo Building is not well positioned on siteo Very little natural light in facilityo Facility lacks modern day amenities (seating, café, ATM Machine, small

meeting room, storage; street front visibility, vendors lounge)o Difficult to make building a multi-use facility since vendor tables, coolers,

storage and other equipment must remain on premises full time


Opportunitieso Big growth opportunity among non-Canadian born shoppers (now only 17% of

shoppers)o Increase market availability of fresh, in-season products and locally produced

productso More vendors, more selectiono Open additional days or longer hourso Improved parking accesso Place to sit down and relaxo Place to sit and have coffee and a snacko Better washroomso More advertising/marketing supporto Better attraction of new vendors with emphasis on food vendorso Vendor wish lists are improved informational signage, improved

advertising/promotions and road signs; building improvements; improved guidelines, more vendors, better parking, increased payment methods

o Create awareness of Farmers’ Market to North end residentso Do all shopping in one place (increased synergy for retail shopping in the area

due to close proximity of neighboring businesses)

Threatso Ongoing uncertainty of City of Brantford’s commitment continues to decrease

customer confidenceo Vendor rates increase significantly to cover overhead charges (if not deleted)

making it less attractive for vendorso No commitment to modifications in facility, continuing to present accessibility,

parking and other customer challenges


MARKETING

Promotion/User Satisfaction

In the previously noted study, it was concluded that over 91% of the shoppers interviewed indicated their satisfaction with the location of the Brantford Farmers' Market and that 85% of the shoppers interviewed indicated their satisfaction with the current condition of the building.

The annual advertising and promotional cost budget is $8,000, of which the Vendors contribute $4,500 through vendor fees collected. Staff found that the most effective advertising is the outdoor portable sign (only available 6 months of the year), local print/radio media and it is specifically effective when advertising Special Events and printed coupons. Additional advertising includes Tourism publication, the City Web-site and the Regional tourism booklets.

In conclusion it is difficult to assess the effectiveness of advertising and its impact on the “shopper base”. The Brantford Farmers' Market location in the downtown has an impact on its accessibility to the north end residents. Most of the shoppers live within 10 minutes, concluding that the North end residents are beyond the average distance.

Strong growth opportunities in this sector focus on more aggressive marketing and promotion of markets; on encouraging additional vendors and vendor capabilities; on improved access to labour, and on the development of more and improved facilities

Current Marketing Efforts include:o Mail drops targeting specific areas of Brantfordo Radio advertisingo Annual Calendar of Eventso Newslettero Website Update

Minimal dollars were committed to marketing in 2009 as all stalls were at 100% capacity. Focus was placed on advertising of events and promotions to the general public to encourage them to visit the Brantford Farmers’ Market.

The Farmers’ Market website provides minimal information to the end user and does not capitalize on the electronic forum. When compared to other markets, Brantford needs to redesign and update the website to contain competitive information and details on types of vendors/products to entice website surfers to visit the market. See Appendix 3 for camparison..


FINANCIAL ANALYSIS

Asset Value

The Brantford Farmers' Market property was appraised in March of 2003 for $280,000. The property is 1.4 acres and is irregular in shape. The property is zoned as F-C1 -Core Commercial Zone, Flood designation. The highest and best use, which is Commercial. In brief consultation with the appraiser, Mr. Jacob Ellens, it was concluded that the value of the property has escalated between 10 and 20% since the date of the appraisal in 2003 (the current appraised value of the property would be between $308,000 and $336,000).

In conclusion, although the value of the land is based on best use, there are some environmental conditions that should be further reviewed and estimated prior to making a final conclusion on the land value. As previously mentioned, the market lands fall on a landfill. As no disposal activities have taken place within the last 25 years and therefore no MOE approvals would be required for change of use under the Environmental Protection Act for landfills. The site is currently designated as Commercial and would require an RSC clearance to be used for park or residential uses. Continued use for commercial activities would not trigger any such approval.

Current Budget

The budget for fiscal 2009 was $148,264 of which $89,850 (61%) in revenue was anticipated to be from vendor rental fees and the remaining $58,414 (39%) as a net expenditure to the City.

Notable expenses are:ITEM % of BudgetPart-time Market Manager 12.7%Utilities (Electricity/Gas/Water/Sewer) 15.0%Contracted Repair & Maintenance 13.5%Snow Removal 10.1%Imposed Overhead Charges 30.0%

81.3%

Current vendor rental fees are based on size of stall and whether or not the stall is refrigerated. There are inconsistencies in the rates charged due to the fluctuation in the size of stalls and the amenities provided (electricity for equipment, sinks, etc).


Forecasted Budget

The forecasted budget for 2009 by staff was a net expenditure to the City of $58,414. It is anticipated through the projection of budgets by the Farmers’ Market Vendors Association for years 2010-2013 that financial independence can be reached in 2010 if all recommendations are implemented and barriers are removed. A detailed forecast is presented in Appendix 4

Forecasted Reserve Funds

The current reserve fund is estimated at $193,000 (see Appendix 5) and has been accumulating through a Treasury Policy 8 (TP8). These funds should remain in the business unit and can offset any variables in snow removal, be utilized for marketing initiatives or repairs and maintenance less than the required $50,000 for capital funding.

The current capital reserve fund is estimated at $520,000 (to be confirmed). The Association is recommending that a portion of these funds be utilized to complete the modifications to the building/site recommended, but not covered through the federal funding provided. Any remaining monies should remain in the envelope for the market and serve as future capital funding. It is anticipated with the modifications to the building/site in 2010; minimal modifications will be required for a few years, allowing the capital fund to provide for future needs, thereby no longer requiring the City to put aside additional capital funds. Through the increase in vendor rental rates, existing cash reserve funds and capital funds; the Association does not foresee the need to approach the City for additional capital funds. .

Forecasted Return on Investment

The City is a direct beneficiary of the recent funding provided by the Federal Government in the amount of $391,000. With the additional capital investment of $150,000 from capital reserve funds by City of Brantford, the net increase in asset value is $541,000 or leveraging factor of 3:1 and an increase in revenue of $47,572 by 2013 resulting in a net return on investment annually of 31%.

Ability to Leverage Funding

As it is recommended that the City remain the owner/operator of the Brantford Farmers’ Market in conjunction with the Farmers’ Market Vendors Association, the City will continue to provide the opportunity to apply for the leveraging of funding through various federal, provincial and local programs.


Sources of Funding/Revenue (including users fees charged):

The 2009 annual gross operating budget for the Brantford Farmers’ Market is $148,264 and the net cost to the City (taxpayers) is $ 58,414. Historically the Brantford Farmers' Market maintained a zero net budget. In 2002, the costs of maintenance and operation increased and required municipal support. Please see Appendix 6 for proposed market vendor stall rates from 2009-2013.

Operating Budget:

The operating budget from 2005 to 2009 and the projected budget are based on continuing the current operation practices for 2010 to 2013 with changes as recommended. The following are budgetary issues to consider:

1. Without the Overhead charges that were implemented in 2009, the market would continue to generate a profit.

2. Until 2001 the “transfer to reserve” was resulting from operational profits. Since 2002, the transfer the reserve was only achieved as a result of the municipal financial support. Starting in 2002 budget, “charges from other departments” were added to cover Property Management services

3. The contracted repairs and maintenance budget, and actual expenditures, has been gradually increasing since 1998 due to the age and condition of the facility but expected to decrease due to capital improvements made in 2009/2010.

4. The cost of utilities and other services has been increasing annually since 1998.

Assumptions and projections were made for the 2010 to 2013 Proposed Budgets and are outlined in the Projected Budget attached in Appendix 4. As required, financial projections show financial independence by December 31, 2012 provided all things remain as projected.

Break Even Point for Financial Independence

In order for the Farmers Market to reach financial independence a net expenditure of approximately $58,414 must be deleted of which $44,864 is overhead charges allocated by the City. If these fees were deleted (essentially an accounting practice) the vendor stall rental rates and/or number/type of vendors would have to increase to offset the difference of $13,550.


Capital Budget:

In 2003 approximately $35,000 was spent on Health Code compliance issues related to the meat vendors. Since then, all required repairs and maintenance were expended from the operating budget. Currently, there is a funded capital project to repair and enhance the surrounding site, the parking areas and the entrances/exits to the site. The project was approved in 2004 but was delayed to 2006 due to issues related to the required land exchange with the adjacent landowner.

The Current Capital Projects Account has a balance of $562,885 (see Appendix 7 for details). Additional modifications/capital investments are required to upgrade the current facilities. The Federal Government approved $391,000 in funding in September of 2009 for completion of approved capital projects by March 31, 2010. There are additional capital investments required to complete the capital projects required for upgrading of the facility, the parking lot and to add additional outdoor vendor facilities. It is estimated that $150,000 will be required in 2010. Beyond 2010, it is anticipated that capital investments will be required to provide for accessibility and standardization of the stalls (for the safety and flow of consumters) thereby requiring the capital project funds to remain allocated to the Farmers Market.

CAPITAL PROJECT REQUIREMENTS:

Capital Improvements as a result of Federal Grants monies of $391,000

As part of the infrastructure application a number of capital initiatives were identified. A key component will be the cladding and insulating. If costs come in higher than expected other projects will have to be scaled back. The list below a suggested list and will be prioritized based on actual costs:

• Remove Cladding• Install new insulation and cladding - Energy conservation measure• Remove overhead door and construct new entrance foyer - Energy conservation

measure and Accessibility• Renovate kitchen - Health and safety and improve functionality• Interior retrofits - sinks, plumbing/electrical/ceiling - Heath and safety, code

compliance, site improvements• Washroom renovations - Accessibility• Demolish canopy - Site improvement• Improve interior/exterior seating area - Site improvement• Lighting improvements - Energy conservation and function• Mechanical upgrades - Energy conservation• Man door replacement - Site improvement• Signage - Site improvement• Isolated Floor repairs – Safety Issues


Additional Capital Priorities—to come from Capital Budget of Farmers’ Market (estimated cost of $150,000)

o Remove sidewalk at North side of building (increased drainage)o Wheelchair Accessibility Parking (have spots located to new entrance)o Redo area for Outdoor Market (East side of building) with adequate room to pull

in truck and parko Modify layout of parking lot (remove trees, islands, and other impediments),

remove back sidewalko Allow for three (3) lane in/out on west sideo Design parking lot for easy of access to parking garage (potentially free parking

on Saturdays—currently recommended in 2010 budget)o Recommend that one parcel of land be created from sub parcels

The Farmers’ Market is one of the business units that fall under Treasury Policy # 8. TP#8 allows the business unit to transfer the net amount in the operating budget to/from the reserve fund account to maintain a balanced budget. The current balance of the Reserve Fund is $193,876. In order to achieve a zero net operating budget for the Brantford Farmers’ Market by 2012 it requires a combination of increased revenues and decreased expenses with the deletion of overhead charges from the City of Brantford. The Farmers’ Market Vendors Association has completed their due diligence and an in-depth analysis of the financial viability of the operation. The roadmap to achieving financial independence considered budget vs. actual from 2006-2009 inclusive and a forecast of 2010-2013, with the result of financial independence in 2010 and each year thereafter

The implications of the above measures being implemented would mean:1. Average increase of 6% per year for next 4 years in vendor stall

fees using a rate per square foot for each stall2. Implementation of flat fee equipment charges of $10 per piece for

electricity costs3. Increased number of seasonal outdoor vendors4. One full-time outdoor food vendor (french fry stand?)5. Changes in Bylaws where required 6. Capital investment for building/property upgrades beyond those

included in the federal grant of $391,0007. Deletion of overhead fees from the City (unfair, inequitable and

applied inconsistently)8. Increased visibility of market from drive by traffic


CONCLUSION

In order for Farmers Markets to be success all aspects of the operation must work in tandem. Below are Ten Qualities that power successful markets are:

1. Right Vendors (quality products; appearance; cleanliness; merchandising; innovation; competitive; local; attractiveness; service)

2. Right Location (accessible; memorable; easy flow; ample accessible parking; adjacent to other facilities; located where people naturally come together; neutral and welcoming; size should be right for size of city; offer spin-off opportunities to surrounding business)

3. Right Mix (internal competition; owner operated; provide variety and choice; different prices and quality levels)

4. Right Mission (clear goals; create new opportunities; self sustaining; nurturing vendors; socialization; healthy food at reasonable prices; local culture; make people happy)

5. Right Public Spaces (sense of entry; seating; maintenance; comfortable in all seasons; things to look at; art; formal/informal qualities; welcoming; flexible)

6. Right Connections (reflect community; partnerships; access to public transportation; bring neighborhoods together; close to bike/trails; sense of ‘giveback’; cross-cultural)

7. Right Economics (sustainable foundation; fundraising; fair rent; community health; spin-off incubators; job creation; encourage surrounding investments; keeps $ local; hand to hand economy; transparent)

8. Right Promotion (stretch the dollar; events/demos; public relations; press releases; market image; partnerships; education; builds local value; community connections; sponsorships)

9. Right Value (quality products; quality experience; boots local economy; creates jobs; make you feel you are helping; psychic well-being; sense of local ownership)

10.Right Management (fair; flexible; open-minded; looking ahead; promotion minded; outreach; capitalize on opportunities’ good relations; effective behind the scenes; good hosts for vendors/consumer)


ROADMAP TO FINANCIAL INDEPENDENCE

In order to achieve financial independence of the Brantford Farmers’ Market, it is imperative that a number of actions be taken simultaneously. They include changes as outlined above in the model for financial independence and include:

1. Recognition of the City to remain in the Farmers Market business and make public statements of support to decrease general public uncertainty and stabilize revenues at the market.

2. Greater involvement of the Farmers’ Market Vendor Association in the development and monitoring of budget and the inclusion of the association in any proposed changes to the budget. The Association would remain involved in the market management and administration, but would not become a separate third party board that would take full responsibility of the market.

3. Implement Capital Investments as outlined above beyond those paid for through federal funding and allow remain funds to be utilized for future capital requirements (accessibility and standardization of vendor stalls/facilities)

4. Release TP8 reserve funds to be utilized for the development of a professional marketing plan and the implementation of such

5. Implement changes to bylaws to better manage the market and provide stronger guidelines of operation

6. Delete overhead charges and allow for the charges by other departments to compensate for support by Property Management department

7. Implement POS system for the collection of revenues by vendors and an ATM machine for the convenience of customers

8. Recognize and approve the forecasted vendor stall rates from 2010 through to 2013

9. Redevelopment of website

10.Modifications/amendments to current bylaws to allow for:o Increase in Vendor Rental rates (rental fees based on total square

footage at a specified per square foot cost with prescribed increases between 2010 and 2013 as outlined in the proposed budget)

o Charges to be implemented for Electrical use base on flat fee per piece of equipment


o Vendors to include full-time Outdoor Vendor (such as french fry stand)

o Vendors to include Outdoor Seasonalo Revise wordings where appropriate to reflect No Exclusions on

Prepared Food Vendors (more than one, delete monopoly)o Develop guidelines for site lines, height restrictions, safety factorso Delete one (1) month free incentive if vendors pay upfront for the

yearo Develop standards for stalls (counters, space, etc)o Implement regulation that all equipment to be turned off on

Saturday or vendors can pay per day per piece of equipment it is on

o Implement Adjudication process for new vendorso Increase enforcement of bylaws

BARRIERS TO BE REMOVED

General Public Uncertainty

Recognition of the City to remain in the Farmers’ Market business and make public statements of support to decrease general public uncertainty and stabilize revenues at the market.Overhead ChargesUpon review by the Farmer’s Market Vendors Association as part of the business planning process, it is felt that Overhead Charges should be deleted as they were found to be unfair, inequitable and inconsistently applied across the City. Other user fee supported areas are not charged overhead fees. However, it is noted that the market continues to receive support from Property Management (outside of part-time market manager) and therefore has estimated the charges from other departments to be $15,000 per year which allows for one (1) day per week support at an average hourly rate of $42 per hour (fluctuates based on person working for market).

Disclusion of Farmers Market Vendors Association

Greater involvement of the Farmers’ Market Vendor Association in the development and monitoring of budget and the inclusion of the association in any proposed changes to the budget. The Association would remain involved in the market management and administration, but would not become a separate third party board that would take full responsibility of the market


Appendix 1

Overhead Charges Currently Imposed2009 2010 2011 2012

Mayors Office 134 0 0 0Members of Council 166 0 0 0City Mgr. Admin. 243 0 0 0Human Resources 243 0 0 0Legal Support 2544 0 0 0City Clerk Admin. 391 0 0 0Records & Mailroom 0 0 0 0Insurance Risk Mgmt 169 0 0 0Insurance Risk Mgmt 1545 0 0 0Property Mgmt 23780 0 0 0Inform. Technology 3123 0 0 0Finance 12526 0 0 0Purchasing 0 0 0 0

TOTAL 44,864.00$ -$ -$ -$

NOTES: Overhead charges are applied inconsistently throughout the City. Explanationsgiven indicate that the Farmers Market is charged Overhead as it is either a User Feesupported business unit or funding can be leveraged through 3rd party contributions.

The Farmers Market is a User Fee supported business unit (operation). However,other User Fee operations such as Wayne Gretzky Sports Centre, Sanderson CentreCivic Centre, etc derive User Fees but are not charged Overhead charges nor property taxes by the City.

Therefore, the Farmers Market is proposing until fair, equitable and consistentmethodologies of calculating and allocating Overhead charges is arrive at, nooverhead charges be allocated.


Appendix 2A

CURRENT FLOOR PLANBRANTFORD FARMERS’ MARKET


Appendix: 2B

F A R M E R S M A R K E T B O O T H A U D I TE l e c t r i c a l S i n k E x h a u s t C u r r e n t

B o o t h V e n d o r N a m e S q F t T o t a l S q F t T y p e Y / N Y / N Y / N R e n t1 F ie d le r 's M e a t s a n d D e l i 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 32 F ie d le r 's M e a t s a n d D e l i 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 33 G i le s M e a t s 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 34 G i le s M e a t s 6 X 1 0 7 2 R Y e s Y e s N o 2 3 4 . 6 35 H u z u l M e a t s 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 36 O e g e m a T u r k e y F a r m s 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 37 A n th o n y 's P r im e M e a t s 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 38 J e n s e n C h e e s e 1 3 '1 0 " X 1 0 1 3 0 R Y e s Y e s N o 2 3 4 . 6 39 W i t t e v e e n M e a t s 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 3

1 0 W i t t e v e e n M e a t s 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 31 1 W i t t e v e e n M e a t s 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 31 2 C a r l 's C h o ic e M e a ts 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 31 3 C a r l 's C h o ic e M e a ts 1 2 X 1 0 1 2 0 R Y e s Y e s N o 2 3 4 . 6 3

1 6 H a r m o n y P a s t r y S h o p 1 2 X 1 0 1 2 0 N - P F Y e s N o N o 1 5 1 . 1 41 7 H a r m o n y P a s t r y S h o p 1 2 X 6 7 2 R - P F Y e s N o N o 1 2 7 . 2 91 8 D a n M c C u t c h e o n 1 2 X 6 c o r n e r 7 2 N Y e s N o N o 1 2 7 . 2 91 9 D a n M c C u t c h e o n 1 2 X 1 0 1 2 0 N Y e s N o N o 1 2 7 . 2 92 0 S w a n 's P r o d u c e 1 2 X 1 0 1 2 0 N Y e s N o N o 1 2 7 . 2 92 1 S w a n 's P r o d u c e 1 2 X 1 0 1 2 0 N Y e s N o N o 1 2 7 . 2 92 2 S w a n 's P r o d u c e 1 4 X 1 0 c o r n e r 1 4 0 N Y e s N o N o 1 5 1 . 1 42 3 P e ta ls a n d L e a v e s 1 4 X 1 0 c o r n e r 1 4 0 N Y e s N o N o 1 5 1 . 1 42 4 N a n c y G ib s o n 1 2 X 1 0 1 2 0 N Y e s N o N o 1 2 7 . 2 92 5 T o f f e e V e n d o r 1 2 X 1 0 1 2 0 N - P F Y e s N o N o 1 2 7 . 2 92 6 P o p c o r n V e n d o r 1 2 X 1 0 1 2 0 N - P F Y e s N o N o 1 2 7 . 2 92 7 J e a n H a n e s 1 2 X 1 0 c o r n e r 1 2 0 N Y e s N o N o 1 5 1 . 1 4

3 0 D a i ly V e n d o r s 1 2 X 6 7 2 N Y e s N o N o 1 2 7 . 2 93 1 d a i ly 1 2 X 6 7 2 N Y e s N o N o 1 2 7 . 2 93 2 B e v N ic h o l ( 1 /2 s t a l l ) 1 2 X 1 0 c o r n e r 1 2 0 N Y e s N o N o 1 2 7 . 2 93 3 D a n V a n H o - p r e p f o o d 1 2 X 1 0 1 2 0 N - P F Y e s N o N o 1 2 7 . 2 93 4 M e d i t e r r a n e a n D e l ig h t 1 2 X 1 0 1 2 0 N - P F Y e s N o N o 1 2 7 . 2 93 5 W h i t e R a b b i t C a t e r in g 1 2 X 1 0 1 2 0 R - P F Y e s N o N o 1 2 7 . 2 93 6 L a C u p c a k e r y - p r e p f o o d 1 4 X 1 0 c o r n e r 1 4 0 N - P F Y e s N o N o 1 5 1 . 1 43 7 B o w m a n 's P r o d u c e 1 4 X 1 0 c o r n e r 1 4 0 N Y e s N o N o 1 5 1 . 1 43 8 B o w m a n 's P r o d u c e 1 2 X 1 0 1 2 0 N Y e s N o N o 1 2 7 . 2 93 9 E lb e r ta F a r m s 1 2 X 1 0 1 2 0 N Y e s N o N o 1 2 7 . 2 94 0 E lb e r ta F a r m s 1 2 X 1 0 c o r n e r 1 2 0 N Y e s N o N o 1 2 7 . 2 94 1 E lb e r ta F a r m s 1 2 X 1 0 1 2 0 N Y e s N o N o 1 2 7 . 2 94 2 K a r l 's S c h n i t z e l H o u s e 2 1 X 1 0 2 1 0 P F Y e s Y e s Y e s 4 5 5 .34 3 H e r b s n ' T h in g s 1 2 X 1 0 1 2 0 R Y e s N o N o 1 2 7 . 2 94 4 H e r b s n ' T h in g s 1 2 X 1 0 1 2 0 R Y e s N o N o 1 2 7 . 2 94 5 H e r b s n ' T h in g s 1 2 X 1 0 1 2 0 N Y e s N o N o 1 2 7 . 2 94 6 R ic k 's N u t H u t 1 2 X 1 0 1 2 0 N - P F Y e s N o N o 1 2 7 . 2 94 7 P e te 's B a k e S h o p 1 2 X 1 0 1 2 0 N - P F Y e s N o N o 1 2 7 . 2 94 8 P e te 's B a k e S h o p 1 2 X 1 0 1 2 0 N - P F Y e s N o N o 1 2 7 . 2 94 9 E r n ie C o o m b s - C R A F T E R 9 X 1 0 9 0 N Y e s N o N o 1 2 7 . 2 9


Appendix 3Website Information Comparison of Various Markets

FARMERS MARKET-LOCATION-HOURS OF OPERATION-FACILITIES

INFORMATION FOUND ON WEBSITE

TYPE OF VENDORS/# OF VENDORS

Kitchener3 levels

Farmers Market is open Saturdays only 7-2 pm

Indoor/Outdoor Vendors

o Hours of Operationo Vendor Listing (photo, brief

description, products and website contact)

o Event Listingo Schedule of Product Availability

according to seasono History

o Produceo Non-Produceo Floralo Prepared Foodso Retailo Entertainmento Events

St. Jacobs

Thursday & Saturday 7-3:30pm and Tuesday 8-3:00 pm

Indoor/Outdoor Vendors

o Indoor/Outdooro Produceo Non-Produceo Floralo Prepared Foodso Retailo Eventso Destination Based

Baden Farmers Market

Saturday 8-3:30Sunday 11-3pm

o Hours Of Operationo Vendor Listing and Info

Woodstock Market

Fridays 8-2 pm

o Hours of Operationo Vendor Listing & product list

20-30 vendors

Stratford

Saturday 7-12 and Wed. in Summer 3-7pm

o Hours of Operation





Cambridge .Saturdays 6-1pm & Wed 8-2pm in summer (have winter hours as well)

(generates $71,900 in revenue & costs the City of Cambridge $235,000 to run it leaving net contribution of $163,300

o Hours of Operationo In the News

35-40 vendors

HamiltonTuesday 7-6 pm; Thursday 7-6pm; Friday 8-6; Saturdays 6-6 pm

o Hours of Operationo Eventso Parkingo Events/Workshopso News

85 vendors

WaterlooSaturday 7-2 pmSimcoe MarketThursday 9-4pm

30-50 vendors

Ottawa Farmers Market

Thurs. (Summer only) 1-6pmSun. (Summer only) 8-3 pmSat. -only 3 days in Nov 8-3 pm

o Hours of Operationo Eventso Vendors Listing, Info and

Contact along with product listingo Have Face book Page

120 vendors





Guelph

Saturdays 7-12

o Historyo Vendor List & Contact Infoo Products

AncasterWednesdays 3-7 Summer only to ThanksgivingSt. CatharinesTuesday, Thursday and Saturday Year round5:30-4 pm


FarmersMarket Budget Appendix 4

FARMERS MARKET BUDGET2013 2012 2011 2010 2,009 2,009 2,008 2,008 2007 2007 2006

PROPOSED PROPOSED PROPOSED PROPOSED ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUALFARMERS' MARKET

1602 RENTALS -107941 -101831 -96067 -90629 (75,069) (84,000) (78,623) (84,000) (82,273) (84,000) (81,135)Outside Seasonal -5050 -4764 -4494 -4240Outside Year Round -12120 -11434 -10787 -10176Equipment Flat Fees -2430 -2292 -2162 -2040

1644 MRKT VNDRS ASSOC FEES COLLCTED -1350 -1350 -1350 -1350 (1,371) (1,350) (1,335) (1,350) (1,406) (1,350) (1,431)1751 SALE OF ADVERTISING (4,878) (4,500) (4,152) (4,500) (4,347) (4,500) (4,364)

TOTAL REVENUE -128890 -121671 -114860 -108435 (81,318) (89,850) (84,110) (89,850) (88,026) (89,850) (86,930)FARMERS' MARKET

2105 FULL-TIME REG EARNINGS 0 293 0 0 02110 PART-TIME REG EARNINGS 20653 20051 19467 18900 21,672 18,900 22,274 11,650 17,132 11,650 13,9642210 EMPLOYEE BENEFITS 3500 3500 3500 3500 3,262 3,500 4,019 3,500 3,339 5,000 1,3972220 PAYROLL BURDEN 0 0 0 -5100 (1,506) (5,100) (2,981) 0 (2,733) 0 03002 SUPPLIES 500 500 500 500 154 500 381 0 0 0 6533006 CLEANING SUPPLIES 750 750 750 750 118 750 409 3,000 222 3,000 4923032 CLOTHING 200 200 200 200 130 200 130 200 76 200 03210 ELCTRCL MATERL & SUPPLY 500 500 500 500 0 500 0 1,000 170 1,000 2313320 COMPUTER HARDW ARE 0 0 0 0 50 0 0 2,000 130 2,000 03380 OFFICE FURNITURE 0 0 0 0 0 1,000 03705 ELECTRICITY 15000 15000 15000 15000 8,899 15,000 13,208 16,535 13,538 16,535 12,9053710 WATER 800 800 800 800 568 800 770 691 721 691 5143715 SEW ER 500 500 500 500 440 500 567 462 426 462 3083720 NATURAL GAS 6000 6000 6000 6000 3,182 6,000 4,179 8,000 4,973 8,000 3,9723775 REGISTRATION - LIEN & DEEDS4010 SEMINARS 500 500 500 500 84 500 241 0 626 0 04015 EDUCATION 0 0 0 0 340 0 0 500 95 500 2524055 POSTAGE 0 0 0 0 0 0 04070 TELEPHONE 1500 1500 1500 1500 938 1,500 837 1,000 714 1,000 7534085 ADVERTISING - PRINT 8000 8000 8000 8000 3,703 8,000 8,360 8,000 8,098 10,000 13,5384102 PROFESSIONAL SERVICES4106 CONTRACTED SERVICES 3500 3500 3500 2500 0 5,000 438 8,400 5,252 8,400 04108 JANITORIAL SERVICES 5650 5650 5650 5650 4,315 5,650 5,178 5,650 5,181 5,650 5,1814114 CONTRCTD R&M BUILDINGS 15000 15000 15000 15000 7,510 20,000 15,219 16,000 20,157 16,000 17,2294124 SNOW REMOVAL 15000 15000 15000 15000 7,819 15,000 13,268 26,250 9,306 26,250 4,4344126 WASTE REMOVAL 700 700 700 700 1,570 700 2,245 0 4,548 0 04138 MEMBRSHPS & SUBSCRPTNS 200 200 200 200 200 200 200 0 04140 SECURITY SERVICES 0 0 0 0 0 0 0 2,000 0 2,000 04535 RENTAL OF EQUIPMENT 0 0 0 0 62 0 2416010 BANK SERVICE CHARGES 0 0 0 06150 ALLOW FOR UNCOLLEC - AR -200 -200 -200 -200 95 (200) (397) (200) (165) (200) 1237005 OVERHEAD CHARGES 44,864 44,864 0 07010 RENT-VEH/EQUIP CITY OW N 0 0 0 0 120 0 0 07030 CHRGS FRM OTH DEPARTMNTS 15000 15000 15000 15000 912 4,000 18,200 17,000 19,485 17,000 21,0607115 TRANSFER TO RESERVE FUND 0 0 0 0 0 0 19,168 0 22,906 0 54,8147302 GRANTS TO ORGANIZATIONS 1500 1500 1500 1500 1,311 1,500 1,335 1,350 1,406 1,350 1,431

304130 TOTAL EXPENSE 114753 114151 113567 106900 111,043 148,264 127,248 132,988 135,665 137,488 153,492

NET EXPENDITURES -14137 -7520 -1293 -1535 29,725 58,414 43,138 43,138 47,639 47,638 66,562


Appendix 4 Projected Budget Assumptions

PROJECTED BUDGET ASSUMPTIONS2010 Revenue to increase to vendors based on square feet, equipment used; additional rent antcipated through outside market vendors and year round outdoor tenant year round

Part-time earnings increased 3% year over year

Contracted Services reduced by 1/2 of 2009 due to capital improvementsContracted R & M reduced due to capital improvementsOverhead charges deleted, charges from other departments increased to $15000 per yearSome items are variable (even though cost is up on utilities, we anticipate overall expense to stay the same as a result of insulation, lighting and other improvements

Snow Removal is estimated, varies according to snow fall.2011 Benefits would be given to full-time Market Manager--estimated based on current costs for single full time person--to be confirmed

Do not anticipate expense reduction of payroll burden as we are no longer sharing staff memberAnticipate slight increase in contracted services after improvementsSome items variable (even though cost is up on utilities, we anticipate overall expense to stay the same as a result of insulation, lighting and other improvementsSnow Removal is estimated, varies according to snow fall.

2012 Rental Fees to increase based on vendor rates projected


Farmers’ Market Cash Reserve Appendix 5

Department: Property Management Reserve #192

Name: Farmers Market Building Type:

B.U 2004 2005 2006 2007 2008 2009Opening Balance: 190,598 59,446 92,496 152,274 182,532 208,876

3,525 2,254 4,964 7,352 7,176 55,921 30,796 54,814 22,906 19,168

59,446 33,050 59,778 30,258 26,344 -

- - - - - -

PM0305 165,000 PM0409 22,730 PM0903 15,000

FN0202 2,868

190,598 - - - - 15,000

Closing Balance prior to Interest Allocation 59,446$ 92,496$ 152,274$ 182,532$ 208,876$ 193,876$

This reserve fund was established to finance the renovation or replacement of Market Building.

User-rate Supported

Anticipated Receipts:

Total Anticipated Receipts

Investment IncomeTP8

Market Expansion and ImprovementRedevelopment of Brantford's Farmers' MarketBarrier Free Washroom Modifications

Operating Expenditures:

Capital Expenditures:

Total Operating Expenditures

Discounted interest

Total Capital Expenditures


Proposed Vendor Stall Rates 2009-2013 Appendix 6

Rental Reviews 2009 Rental Review 2010

This Chart rent rates are by the Square Ft. plus 6%

Rental Reviews 2010

All amounts of stall rentals are less the 5% GST charge

All Stall Rental Fees include the Advertising charge

feet per stall price per sq. ftTotal per wk Total yearlyButchersFeet of Stall 1954 $0.45 $869.92 $45,235.88

Produce/flowers/baking/etc.

Feet of stall 2154 $0.24 $525.15 $27,307.55

Corner Stalls Aisle Side 8 @ 10'

Feet of Stall 992 $0.28 $273.40 $14,216.55

Coffee Bar

Feet of Stall 210 $0.50 $104.62 $5,440.34Total $92,200.33

Chip Wagon $10,176.00Outside Seasonal $4,240.00Flat Fee Equipment Charges $2,040.00What about if we add Christmas Tree Vendors for a monthor two to sell trees at $300.00 a month or more?

Vendors Fees Collected $1,350.00

Total Amount for year income $110,006.33

This Chart is todays rates by the Square Ft.

Rental Reviews 2009



feet per stall price per sq. ftTotal per wk Total yearlyRefrigeratedSq. Feet of Stall 1500 $0.42 $630.00 $32,760.00

Non-Refrigerated

Sq. Feet of stall 2538 $0.23 $583.74 $30,354.48


Sq. Feet of Stall 1040 $0.26 $270.40 $14,060.80

Coffee Bar

Sq. Feet of Stall 210 $0.47 $98.70 $5,132.40Total $82,307.68

Outside Seasonal $4,000.00





Rental Reviews 2011 Rental Reviews 2012

This Chart rent rates are by the sq. ft. plus 6%

Rental Reviews 2011





Feet of stall 2016 $0.26 $520.99 $27,091.52


Feet of Stall 1040 $0.29 $303.82 $15,798.71

Coffee Bar


Chip Wagon $10,786.56Outside Seasonal $4,494.40Flat Fee Equipment Charges $2,162.40What about if we add Christmas Tree Vendors for a monthor two to sell trees at $300.00 a month or more?




Rental Reviews 2012





Feet of stall 2016 $0.27 $552.25 $28,717.02


Feet of Stall 1040 $0.31 $322.05 $16,746.64

Coffee Bar


Chip Wagon $11,433.75Outside Seasonal $4,764.06Equipment flat fee $2,292.14What about if we add Christmas Tree Vendors for a monthor two to sell trees at $300.00 a month or more?

Vendors Fees Collected $1,350.00Total Amount for year income $121,671.16



Rental Review 2013


Rental Reviews 2013



feet per stall price per sq. ftTotal per wk Total yearlyButchersFeet of Stall 1932 $0.53 $1,024.42 $53,270.06


Feet of stall 2016 $0.29 $585.39 $30,440.04


Feet of Stall 1040 $0.33 $341.37 $17,751.44

Coffee Bar


Chip Wagon $12,119.78Outside Seasonal $5,049.91Equipment flat fees $2,429.67What about if we add Christmas Tree Vendors for a monthor two to sell trees at $300.00 a month or more?

Vendors Fees Collected $1,350.00Total Amount for year income $128,890.43


Farmers Market Capital Reserve Fund Appendix 7

Farmers' Market Capital Projects

Project # Project Name Actual Budget Funding Source Status

PM0409 Redevelopment of Brantford's Farmers' Market 54,707 602,592 Various RF and capital projects On hold PM0903 Farmers' Market - Washroom Modification - 15,000 RF0192 Open

$ 562,885

business plan brantford farmers’ market business plan 2010 final.pdf · farmers' market...

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