|
Zest chef Bill Erlenbach is hard at work in Zest’s display
kitchen. Photo: Celeste McCall
|
Holiday Business
The new year roared in on the heels of a winter storm with the Eastern Market’s South Hall merchants flush with a six month honeymoon of strong sales. December, however, was not kind to the outside arts and crafts vendors with two of the three pre-holiday weekends wiped out by severe weather. According to Jennifer Eubank, Assistant Market Manager, “We had a horrible December with only three weekends before Christmas. “On Saturday, December 19, only one vendor, Sonda Allen, longtime Market silversmith and jeweler (www.turtleswebb.com), braved the 17 inches of snow and set up at the Market. On Sunday a dozen vendors (normally 100-120) braved the cold and snow and surprisingly reported having had brisk sales.
EMCAC Change
Larry Gallo, owner of Stio Design and a 17-year outdoor vendor who has served on EMCAC since its inception in 1999, has stepped down from his position as arts and crafts vendor representative. Gallo also served as Treasurer of EMCAC and in that role brought a laser-like focus to the fiscal side of managing the Market, constantly pressing its former management and current interim group for up-to-date financial information. In addition Gallo was fully engaged in protecting the Market’s historic character during the pre-fire years and in the rebuilding process. Donna Scheeder, Chair of EMCAC, praised this service saying that Gallo was ”diligent in raising issues” and that he bought “insight to issues that others would not have thought about and his perspective representing the vendors was invaluable.” Gallo will now focus on his business at the Market on weekends.
Lingering Repairs
Six months after the Market’s re-opening there are lingering construction issues. The west wall above Southern Maryland Seafood, which deteriorated even as the Market’s reopened, is partially rebuilt with plans for its completion after the holidays. The refrigerated display cases which stand six inches off the floor are too high for both customers and merchants staff to use reasonably and safely. A proposed compromise by the Department of Real Estate Services (DRES) is to lower the cases three inches from the floor which, while allowing easier access for customers, reduces the ability of merchants to meet health requirements for cleaning. Barry Margeson, the Interim Market Manager, reported that ”We are waiting a response from the Department of Health that will confirm that we can lower the cases.”
Strong light from the windows and skylight in the South Hall is causing deterioration or ”skunking” of displayed meats, seafood and produce. Bill Glasgow of Union Meats and a member of EMCAC warned of this repeatedly throughout the pre-opening and renovation period.
A plan is in motion for fitted window blinds and according to Margeson, ”The order is in to the contractor” albeit there is wait time for measurements. However, Monte Edwards of the Capitol Improvements Committee of the Eastern Market Community Advisory Committee (EMCAC) insisted at its November meeting that any new shading meet historic standards and he is insisting that EMCAC be consulted.
Show Me the Money
Margeson presented a tentative budget at a publicly held November EMCAC meeting. Revenues for the year 2009 are projected to be $523,661 with an expected loss of $171,195. However, with the growing use and revenues of the North Hall, which until 2009 were not a part of the Market’s revenue stream, the Market is expecting revenues of $819,263 (a 65% increase) for 2010 and is likely to produce a profit of $84,917 giving the Market its first profitable year in memory. One issue that has not been resolved as an operational expense is a clear determination of utility costs. Last year they soared out of control ($229,000 for 10 months) during the period when the Market was under reconstruction and located in the now closed East Hall.
The rental of the North Hall for community events and other more lucrative public rentals continues to grow. According to Margeson there were 10 events scheduled in November with 15 events booked during the holiday season. Margeson reports that all signs are positive for revenue growth in the near future with multiple inquiries on North Hall usage and that the Market’s marketing plan includes a monthly newsletter, a Facebook page (with over 3000 friends already) as well as ads in various community news venues and a website ( www.easternmarketdc.com.org ) which launched in mid January.
Governance Structure To Be Addressed
Currently the Market is owned and temporarily managed by the DRES which is by law required to issue a Request For Proposal for a Market Manager. DRES placed the bidding process on hold in 2009, reserving the right to manage the Market during the vitally important period of its re-opening both to strengthen its sense of how the Market is managed as well as to gain valuable insight as to the potential strength of its revenue base.
Ward Six Councilmember Tommy Wells has plans to create a task force to study and make legislative recommendations of such issues as how the Market governance might be structured in the future including the geographic scope of the Market and how it will conform to the soon-to-be-developed Hine site adjacent to the Market and the site of the current Saturday and Sunday privately run flea markets. Wells wants to review the role of EMCAC, which currently operates only as an advisory body, and to look at other governance models such as a board of directors. Wells would like to see more accountability as far as Market goals and budgeting including the hiring of any new market management, saying, “I am looking at the legislation to make the governance more efficient and accountable than it was under EMV (the previous management). Currently the government (DRES) is doing a great job. They would like to see a change as well. I think that we need to revisit our governance. That needs to be on the table. If DRES is not operating the Eastern Market whomever is there needs to have direct lines of accountability to some other structure or board. We have to determine the scope of management to make it clear that a new government entity or board must make clear what the new geographic boundaries are.” |
