HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Agenda - 02/05/2002 4 IV
KEN
I.- WAS H1 NGTON COUNCIL WORKSHOP
CITY COUNCIL February 5, 2002
Tim Clark
Council President
220 Fourth Ave. S.
Kent,WA 98032-5895 The Council Workshop will be held in Chambers East in Kent City Hall at 5:00 PM
Phone: 253-856-5712 on Tuesday, February 5, 2002.
Fax:253-866-6712
Council Members: President Tim Clark, Connie Epperly, Leona Orr,
Julie Peterson, Bruce White, Judy Woods, Rico Yingling
Speaker Time
1. Traffic Congestion Solutions Steve Mullen 20 min.
2. Kent Public Market Mike Martin 25 min.
3. Legislative Update Dena Laurent 10 min.
The Council Workshop meets each month on the first and third Tuesdays at 5:OOPM in
Chambers East unless otherwise noted. For agenda information please call Jackie
Bicknell at (253) 856-5712.
ANY PERSON REQUIRING A DISABILITY ACCOMMODATION SHOULD
CONTACT THE CITY CLERK'S OFFICE AT (253) 856-5725 IN ADVANCE.
FOR TDD RELAY SERVICE, CALL THE WASHINGTON
TELECOMMUNICATIONS RELAY SERVICE AT 1-800-833-6388.
February 5, 2001
KENT
WAS H I N GTON
Chronology of Payments associated with the Public Market:
OFFICE OF THE MAYOR 1. City started to receive loan proceeds from the Construction Loan with
Jim white,Mayor US Bank in June 1999.
220 Fourth Ave.S.
Kent,WA 98032-5895 2. Received total proceeds of$700,000 from June 1999 through October
Phone: 253-856-5700 1999.
Fax:253-856-6700 "
3. First loan payment was made in November 1999. Loan payments are
$5,056.27 per month. $60,675 annually.
4. Rental payments from KDP began in November 1999. The lease
agreement was $6,500 per month.
5. KDP paid $6,500 per month through July 2000.
6. In August 2000 the rent was reduced to $5,850.
7. The rent was again reduced in September 2000 to $2,500 per month. At
this time, City Council authorized a $16,000 rent subsidy in 2000 and a
$48,000 rent subsidy for 2001. KDP's rent was to be fixed at $2,500 per
month through December 2001, and the plan was that in January 2002,
KDP would be able to start paying the full $6,500 rental payment.
8. KDP made its last $2,500 rent payment in July 2001. Since that time, the
PDA has used their fund balance to pay their monthly loan payment.
KDP's only revenue source other than rent, is a small amount of
investment interest.
9. At December 31, 2001, the PDA fund had working capital of$15,380
(current assets minus current liabilities). Liquid assets of the fund(cash
and investments) totaled $15,555. At the end of January, liquid assets
are approximately$10,225 not counting the following debt subsidy from
the City.
10. We processed the first installment of the 2002 Budgeted $60,000 loan
subsidy from the City to the PDA in January 2002. That will give the
PDA an additional $15,000.
E ONko T PU B L I C
MARKET
2002 BUSINESS PLAN
Kent Public Market Preliminary Business Plan Page 1
KENT PUBLIC MARKET
MISSION STATEMENT
To provide the community with a pleasant, entertaining and
attractive environment where local farmers and artisans can
display and sell their wares.
GOALS
To have a Market director solely devoted to promoting the Market and
implementing the business plan
To become financially independent
To become a major Farmer's Market with a "carnival" atmosphere on
the weekends. (Day of the week may vary depending on results of community survey.)
To attract citizens and visitors to downtown Kent
To promote the formation and growth of small businesses
To become a focal point for tourism
To provide entertainment and a center for community activities
Kent Public Market Preliminary Business Plan Page 2
KENT PUBLIC MARKET
PROPOSED TURN AROUND PLAN
Hire a Market director who will implement the business plan and manage the day to day
functions of the Market. The Market director will report directly to the KDP board. The
Market will function independently from the KDP and will work in partnership with the
KDP as one of the downtown merchants.
Launch a"Friends of the Market" Campaign. Recruit people from the community who have a
vision for the Market and who will help raise the funds needed by the Market to prosper.
Gain knowledge from consultants with experience in successful farmer's markets. We have
consulted with the following people in preparation of this business plan.
Market Advisory Resources
Jan Piercy, Gig Harbor Farmers Market
Accomplishments: changed the Gig Harbor Farmer's Market from a small, failing market
into a well-known and prosperous market in two years.
Steve Evans, King County Department of Natural Resources, Puget Sound Fresh Program,
Accomplishments: advocate for King County farmers, works with start-up farmers
markets.
`— Rick Castellano, Olympia Farmer's Market
Accomplishments: established market run by market membership grossing over $3M in
sales per year.
Wade Bennett, Rockridge Nashi Orchards, Enumclaw Farmer's Market
Accomplishments: has successfully built up the Enumclaw market from a fledgling,
Chris Curtis, University District Farmer's Market, West Seattle Farmer's Market,
Columbia Farmer's Market
Accomplishments: Started three very successful local farmer's markets.
Create an advisory committee consisting of farmers, crafters, permanent tenants, other local
market managers and community businessmen. This committee will advise the market
manager in the areas of marketing strategies, business development and fundraising.
Kent Public Market Preliminary Business Plan Page 3
Marketing Plan
Survey the citizens of Kent to determine what produce they want in their Public Market and
how often they would come to buy it. (In the last year, many customers have asked about
our lack of farmers and variety of produce.)
Use the results of the community survey to recruit a core of 14-14 farmer partners with the help
of Steve Evans, King County Dept. of Natural Resources, and other experienced farmers
market organizations.
Partner with the city of Kent. For example, partner with the Parks Department for utilization of
Sister Cities Park for the farmers market, events and entertainment.
Partner with people experienced in effective marketing to help develop the signs and
advertising needed to "kick off' the summer season. Current ideas include use of
billboards, banner signs, newspaper ads, ads in farmer and grange newsletters, ads in PTA
newsletters, public service announcements, posters, flyers, a-frame signs, banner signs and
radio spots. Suggested kick-off slogans include "The farmers are back!" and "Fresh from
the fields!"
Fill the remaining permanent tenant spaces by summer.
Develop and use customer feedback cards for continual improvement of our service to the
community.
Host community meetings and events.
Partner with the media in food, clothing and toy drives such as KMPS "Coats for Kids".
Provide monthly classes in areas such as gardening, cooking, organic foods and composting.
This may include master gardeners, chefs, visiting experts, organic farmers, soap and
candle making, woodcarving etc.
Partner with Kent School District for education, performance and service opportunities.
Partner with service clubs in service and fundraising activities.
Partner with the Kent Lions Club to have Railroad Ave. be the center for handcrafted items
during Cornucopia with the Market as its focal point.
Partner with artists and musicians to provide entertainment throughout the year.
Recruit new vendors through personal contact, mailings, advertisements, visiting other one-day
markets, and though current vendor participation in bazaars, festivals and fairs.
Kent Public Market Preliminary Business Plan Page 4
Budget Notes
Reopen request for Hotel Motel Money of$28,000.
Grant received from the Arts Commission for $750.
Continue to partner with the City of Kent to facilitate obtaining funds from other grant sources
which often look for local city support when granting funds.
Explore grants through the Farm Bureau, Boeing, King County and the State of Washington.
Explore becoming a small incubator through the Small Business Administration.
Fundraisers
Spring Fling Fundraiser, April
Harvest Festival Fundraiser, September
Business plan model 4.xls
Kent Public Market-Proposed Budget 2002 2002 2002 2002 Total
Description 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2002 2003 2004 2005 2006
MonthlyNVeekly/Consignment%Occupancy
(60%of available spaces) 53.3% 83.3% 91.7% 88.3% 79.2% 82.9% 90.0% 94.0% 97.0%
Inside Day%Occupancy
�- (40%of available spaces
excluding Special Events Area) 43.3% 78.3% 95.0% 90.0% 76.7% 80.0% 85.0% 87.0% 90.0%
Special Events Area 23.3% 73.3% 85.0% 80.0% 65.4% 70.0% 75.0% 78.0% 80.0%
Outside Day%Occupancy 0.0% 48.3% 86.0% 3.3% 68.3% 75.0% 80.0% 1 85.0% 90.0%
Income
Income Rents,Registrations&Fees 18,609 39,366 62073 36,066 >145,003 178,675 195,943 214,837 235,521
Building Lease 19,500 19,500 19,500 19,500 78,000 78,000 78,000 78,000 78,000
Total Operational Expenses 36,168 42,654 39,366 36,366 154,555 151,698 160,462 168,088 172,152
Operating Income/(Loss) 37,159 (22,799 (6,794) 87,561 (57,023 (42,619) 1) `(14,632
Other Income
Friends of the Market 30,000 30,000 4,000 8,000 72,000 23,000 26,000 29,000 31,000
City of Kent 19,500 19,500 19,500 19,500 78,O00 25,O00 25,000 25,000 25,O00
Fundraiser 0 3,000 5,000 0 8,W0 1,000 12,000 13,000 14,000
Grants 0 0 9,OW 0 9,OW 9,W0 9,OW 9,000 9,0W
Netkworrm Loss) 12,341 29,701 30,706 7,700 79,449 6,977 29,481 44,749 1 64,388
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