HARRISBURG, Pa. — It’s another hit for vendors at the Broad Street Market in Harrisburg.
The Broad Street Market Alliance, which runs the market, sent notices to vendors on Monday, announcing that starting next month, the cost to rent a space at the market will nearly double from its current $2.67 to $5.25 per square foot. It would also include common area maintenance costs.
The proposed rent increase will take effect on February 1 and applies to businesses set up in the market's stone building, as well as those that will occupy its temporary structure once it’s finished.
“I think we can all agree no one can afford double rent on 30 days notice," said Theo Armstrong, founder of Zeroday Brewing Company, which has operated in the market's stone building since 2017.
According to the Broad Street Market Alliance's board of directors, the July fire that destroyed the market’s brick building has resulted in a 70% loss in revenue.
The market was already operating on a break-even model, before the fire.
Directors say the Broad Street Market is currently losing $8,000 to $10,000 a month in operational expenses. They explain rent needs to increase to make up for it, especially as the market plans for restoration of the brick building.
“I know it feels like a low blow in a lot of ways and it’s disheartening after the holidays and I understand the frustration but we were faced with a decision that if we didn’t do it, it would backfire for the vendors and they wouldn’t have a space," explained Tanis Monroy, executive director of the Broad Street Market Alliance (BSMA)
The market's board chose not to raise rent in 2023 immediately following the fire, saying it has been relying on community donations, which directors say is no longer sustainable.
Vendors met on Wednesday to discuss the notice.
The board says there is also a wait list for vendors, and raising rent may cause current vendors to want less space, and therefore could open space for more vendors to operate.
Even with the proposed increase, rent prices at Broad Street Market would still be lower than those of other farmer's markets across south central Pennsylvania, according to BSMA.
In the minutes for its December meeting, where the proposed rent increase was discussed, BSMA listed the following lease rates for other markets:
West Shore Farmer’s Market: $8.25 sq. ft. Each vendor pays for their own electricity, no common area maintenance.
Lancaster Central Market: $36.75 per sq. ft., vendors pay $25 for parking each month
York Central Market House: $15.30 per sq. ft.
Penn Market (York): $11.50 per sq. ft.
Hershey Fresh Market: $25.15 per sq. ft., $50 parking each month, vendors pay utilities individually
Carlisle County Farmers Market: $5.50 per sq. ft., use CAM system
Carlisle Farmers On The Square: Flat rate of $150 per day (only open Wednesdays)
Broad Street Market: $2.67 per sq. ft. (proposed increase to $5.25 per sq. foot plus common area maintenance)
Vendors believe these numbers are inaccurate.
“Many of us vend in other markets, we talk to each other, that’s part of what makes this special," explained Armstrong. "We work together and those numbers they’re basing this rent increase off were wildly exaggerated.”
“We understand the rates [at Broad Street Market] are low and an increase could be necessary but we’re asking for an incremental increase and also a fair increase," said Hannah Ison, director of brewing operations at Zeroday Brewing Company.
Monroy told FOX43 on Wednesday the numbers were pulled directly from market websites or from speaking to those who run them.
“Maybe we got inaccurate information but that’s something we’re keeping an eye on as well as rates in the area just to keep it comparable," he said.
Meanwhile, vendors are worried about what it all means for the future.
“In the next 30 days if nothing changes, you will see vendors leaving," said Armstrong.
They also want to see more transparency from the market's management.
“We want to democratically elect board members. We used to have representation," said Ison. "There were two vendor representatives that were elected to serve on the board and we would like to have those elections again. We’re also asking for a comprehensive review of the numbers that were presented at the December 13 board meeting as evidence to increase the rent rates. Those numbers were highly inflated and inaccurate.”
Monroy says there is currently a waitlist of approximately 20 to 25 vendors waiting to get into the market. He says the board believes raising rent could cause some current vendors to want less space, and therefore could open space for more vendors.
Monroy told FOX43 the board is open to vendor feedback on the rent hike. A public board meeting will be held on January 10 at 5:30 p.m. at the Harrisburg Historic Association on N. 3rd Street.
As for the timeline of the temporary structure, Matt Maisel, director of communications for the City of Harrisburg, told FOX43 on Wednesday that more will be known on Friday when the city can unseal any bids that may have been submitted for the work that still needs to be done to get the structure up and running.
Both vendors and Monroy remind the public that the market's stone building remains open its regular hours, Thursdays and Fridays 7:00 a.m. to 6:00 p.m. and Saturdays 7:00 a.m. to 4:00 p.m.
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