1. No category

2014 Report
to the Community
Commerce
Connection
Culture
Community
“Local and regional food systems are about opportunity.”
- Tom Vilsack
United States Secretary of Agriculture
Board of
Directors
Contents
p. 2
p. 3
p. 5
p. 6
p. 7
p. 8
p. 9
1
Letter from the Board
Location & Facility
Downtown Revitalization
Local Food System
Community Enterprise
Statement of Activity
Planning for Success
Executive Committee
Dave Anderson, Chair
Sally Davis, Secretary
Matt Gaebler, Treasurer
Mike Callicrate
Scott Harvey
Andrew Hershberger
Kady Hommel
John Lubitz
Joe Rexroad
Eryn Taylor
Staff
Amy Radding
Moving Forward:
Putting the Public in the Public Market
Creating the Colorado Springs Public Market is a labor of time, love, commitment, and
collaboration. From its genesis as a collective “big idea” through necessary, and often challenging
steps, the Public Market is well on its way to becoming a functioning, viable destination. The first
report to the community came in June of 2013, with publication of a feasibility study that
identified a great opportunity for downtown revitalization. The Public Market can:
• Create a focal point for additional residential, retail, entertainment and recreation.
• Engage the arts, health, and wellness communities as a gathering place, and a venue for
education and activity.
• Serve local entrepreneurs and artisans communities with market access, connections, space, and mentorships.
• Become an essential attraction for young professionals.
• Start a new food economy engine, substituting locally produced goods for imports.
• Establish a higher level of food security and quality.
The feasibility study put a stake in the ground. Beyond words and ideas, this due diligence
presented the Public Market’s potential to deliver needed economic benefits, both short- and
long-term. With the help of many collaborators, the Public Market has reached key milestones,
including: • Formation of a top-level 501(c)(3) and related social benefit corporation to operate the
market itself.
• Selection of a great site, with direct access to both bike trails and public transit.
• Engagement with a nationally recognized consultant, to begin the process of broadest
possible community dialogue.
• Planning for a “model home” operation in 2015, and full-fledged market operation in
a permanent facility in 2016.
While the project itself is about so much more than just a building, real progress begins with
the building. From this first crucial point of market access, where local producers have the
opportunity to meet with their consumers directly, many great outcomes move into focus.
Please read on to learn more about what has been accomplished and consider where you
might wish to be involved – as a producer, a consumer or perhaps in another part of the effort
to knit more resiliency into our community. We are grateful for contributions from many, and
we look forward eagerly as the real work has just begun. Our objective is to offer opportunity
for everyone to participate.
Sincerely,
The Colorado Springs Public Market Board of Directors
2
It Starts With A Home
From the start, the Public Market envisioned a downtown home for its first physical destination.
The 2013 feasibility study considered twelve central sites. Over the course of nearly a year
exploratory discussions eventually led to the opportunity to establish the Public Market in a
section of the former Gazette printing plant. For detailed rationale, see Section 4 of the
Feasibility Study (http://cspublicmarket.com/wp-content/uploads/2013/05/CSPMPFeasibilityStudyFinal9mb.pdf).
2015
As anticipated in the feasibility study, the Public Market is a
leading element in a larger development project. Startup plans
are in process to create a “model home” that hosts limited retail
and gathering space in a 5000-sq.-ft.building along Pikes Peak
Avenue. Events with a farmers’ market will introduce market
activity to the area, building community understanding for the
business model while attracting vendors and additional building
tenants. The mix of overall development enables property owner
Nor’wood Development Group to offer the Public Market space
at a cost that will make market operations viable and that
permits independent local producers to prosper. Covenants in
place assure that all tenants have local business characteristics.
Gazette - St. Francis Building #3 // 5,200 sq. ft. (approx.)
Located along the northern edge of the Old Gazette property on Pikes Peak Avenue,
this will be the “model home” of the Public Market. The building offers great access
and adjacency to the Legacy Loop and trail system. By summer of 2015, Ranch Foods
Direct, Public Market offerings and operations, and another anchor tenant will share
and establish a local food retail community access point here.
Gazette - St. Francis West End // 22,000 sq. ft.
The West End is the former sorting facility for the newspaper and offers
large clear span (column free) construction, high ceilings, truck access
and anchors the west end of the Gazette building. This space will
become the permanent home of the Public Market.
3
2016
The 22,000-sq.-ft. former newspaper sorting facility in the west
section of the building offers extensive column-free space and
high ceilings. Equally compelling benefits include exterior access
from three directions, great opportunities for natural light,
optimal flexibility for space configuration, and direct access
to the Legacy Loop and downtown transit. The Public Market
intends to have an operating market facility during the harvest
season in 2016.
Recognizing the many complex factors involved in bringing
together a viable, vibrant Public Market that meets the
community’s aspirations, a national firm specializing in public
market start-up will help guide the business planning and
public engagement process beginning in April 2015.
Colorado Springs Public Market
& Gazette - St. Francis
Located within the heart of the emerging east
edge of downtown, the site is directly east of
other planned and new urban experiences.
4
More Than A Building: An Essential
Link to Downtown Revitalization
A vibrant, vital downtown integrates … work,
commerce, residential living, recreation, arts
and culture, education, retail and services,
transit, green space, healthcare, civic
institutions, attractions … and more. For
downtown Colorado Springs, the Public Market
brings primary food access to make downtown
living feasible, and creates a must-see
attraction for visitors to showcase our
area’s best food offerings.
The Public Market presents a significant
economic development opportunity for
downtown Colorado Springs and the
community overall:
1.First, by providing fresh food in a
welcoming, accessible context, the Public
Market becomes a regular destination for
daily living. Every transaction contributes
income to, rather than extracts from, the
local business ecosystem.
2. Food production is a powerful economic
driver; creating market access for local
producers delivers a high multiplier. By localizing existing commerce, and seeding related businesses, the Public Market grows value-added jobs, wages and tax revenue.
Nationally recognized studies1 document how
public market operations add high value to
local economies. Based on startup size of
22,500 square feet and baseline study
assumptions, the Colorado Springs Public
Market operations would register an
immediate and direct effect of approximately
$4 million annually, circulating in our
local economy.
Our 10-year goal is to shift local food
consumption from less than 5% today to 25%
by 2025. This shift to meet local demand with
local supply can generate 4,000 value-added
jobs in El Paso County alone, with more than
$125 million in annual wages and $25 million
in annual tax revenue.2
I-25
WEBER ST
PIKES PEAK AVE
WAHSATCH AVE
NEVADA AVE
TEJON ST
CASCADE AVE
COLORADO AVE
Gazette + St. Francis Reuse
Located within the heart of the emerging east
edge of downtown, the site is directly east of
other planned and new urban experiences.
CIMARRON ST
United States Olympic Museum
Blue Dot Place / New South End
Tejon Street Retail Row
1
2
Cottonwood Art Center
The Machine Shop
The Catalyst Campus
http://www.pps.org/pdf/Ford_Report.pdf and http://www.pps.org/pdf/pps_public_markets_eis.pdf
http://localfoodshift.com/site/page?view=shuman-report
5
Shooks Run Trail / Emerald Loop
Building the Community and
Gaining a Resilient Local Food System
Expanding the
Market Opportunity:
A Community Hub
Small
business
incubation
Essential
market access
for regional
producers
Public
Market
Urban
renewal
Model for
sustainable
construction and
operating
standards
Sustainable food system, food &
nutrition, urban homesteading
Seasonal,
affinity,
vendors
Indoor,
outdoor,
multifunction
Gathering,
entertainment,
gallery
Demo
learning
Classes,
events,
services
Third Space
Health & Wellness
The Public Market represents only the first
part of the journey toward meaningful gains
through local consumption and production.
Ultimately, neighborhood markets represent
needed convenience to make locally grown
food accessible to the entire marketplace.
As a high-profile, mixed-use destination,
the Public Market raises awareness and
participation for the local food economy,
and builds both demand and a supply
chain for neighborhood markets.
A mobile market, like a bookmobile, becomes
an early priority after startup of the downtown
site, and will help determine best locations
for the first neighborhood markets.
Beyond the Public Market downtown, the
intended system includes a food hub to
cost-effectively serve area producers, and to
extend access to low-income communities.
By shifting our food purchases from 5% to 25%
locally produced items, El Paso County and
southeastern Colorado can generate as many
as 10,000 jobs throughout the region.3
3
In the big picture, every community in
southeastern Colorado deserves its own
Public Market, or at least a neighborhood
market where independent local producers
from within southeastern Colorado can
serve their neighbors.
http://localfoodshift.com/site/page?view=shuman-report
6
Building A Viable Community Enterprise
The Public Market formed to serve everyone in the Pikes Peak region, improving overall quality
of life by bridging gaps in food and economic security. The founding organization has been
established as a 501(c)3 non-profit to pursue the Market’s broader mission, with subsidiary
organizations planned to meet very specific objectives.
501(c)3
Food Hub
Aggregation
& Distribution
Commercial
Kitchen
Public
Market
Transport from
farms to neighborhood
markets
Value-added
production, small food
business incubation
Mobile markets
Staging & storage
for CSA and local
buying clubs
Training
& education
Neighborhood
markets
•Retail operations for the Public Market
fall under a for-profit social benefit
subsidiary. To fund this enterprise, the
Public Market is working toward a direct
public equity offering to the community
under Colorado crowdfunding statutes.
This structure permits both accredited
and unaccredited investors – with intent
to encourage broad participation.
Investors have a direct incentive to be
Public Market patrons, and their loyal
patronage will support the success of our
independent and incubated businesses.
• Other possible for-profit social benefit
subsidiaries include the commercial kitchen, value-added processing and the food hub for aggregation and distribution.
• Additional subsidiaries could include
a community investment fund and a
Community Development Entity.4 As the
supply chain expands, these local
7
funding mechanisms would offer
innovative financing terms to support
small business and community
investment in Market-related businesses.
Such funding is crucial – lack of capital
is regularly identified as a number one
impediment to independent business
growth. Conventional bank financing
often does not fit seasonal (especially food) businesses, or requires collateral that exceeds startup capabilities. Public Market relationships can boost credibility and again, broad-based investor patronage
can support investment success.
There is no defined roadmap to create a
resilient community or to assure enduring
economic viability or community health.
What’s certain is that our community and our
region can benefit from a new form of market.
In a market place where we can enjoy great,
locally-produced food and share experiences,
we strengthen our relationships while we
strengthen our economy.
The Public Market project is a ten-year
initiative to knit new lines in our social
fabric. The plan requires little government
involvement, yet can deliver profound results
in personal health, economic strength and
community relationships. Faced with low job
growth, stagnant incomes and rising local
poverty and obesity, why wouldn’t we want to
make this effort? Doing so can change us all.
4
http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=10 a
Statement Of Activity (Unaudited)
CATEGORY
6-MO 2013
FY 2014
ACTUALACTUAL
INCOME
Grants
Contributions
Securities
Gifts-In-Kind
Program Income
TOTAL INCOME
4,000
27,010
--
131,412
0
6,000
16,038
--
131,820
1,757
162,522
155,615
1,431
1,298
141,412
1,621
6,291
142,104
1,682
7,146
137,570
3,443
1,518
152,291
EXPENDITURES
Contract Services
Legal, Accounting & IT
Fundraising
Professional Services
Operations
Travel, Other
TOTAL EXPENSE
NET INCOME
20,418
3,044
5,456
14,962
0
13,267
9,348
870
20,418
23,485
ASSETS
Current Assets
Cash
Accounts Receivable
Other Current Assets
TOTAL ASSETS
LIABILITIES & EQUITY
Current Liabilities
Sales Tax Payable
Total Liabilities
0
0
23
23
EQUITY
20,418
23,462
TOTAL LIABILITIES & EQUITY
20,418
23,485
8
Planning for Success
Over two years of activity, the Public Market
initiative has developed a strong community
presence, documented in survey results that
demonstrate striking levels of support. With a
Market home in place, the planning focus now
is to assure that the enterprise can become a
community institution. Key elements in the
plan include:
• A robust public engagement process to
assure that Market opportunities are
inclusive, exciting and aligned with
community priorities.
• An agreement term for the facility to
assure that market success includes
location stability – and no risk of a
required move in the future.
• Developing the supply chain to bring locally
produced food into the Market, with intent
to have an attractive product mix to assure
frequent patronage – beyond milk, cheese,
eggs and protein.
• Building in low-cost basis and operating
expenses for the Market and tenants, to
assure that independent, locally based
businesses have every opportunity
to prosper.
Initial efforts to launch the Public Market have
been funded largely by the board, as financial
and in-kind contributions. Successful startup
in 2016 calls for ambitious, community-wide
fund-raising. While Market operations will
be structured to generate a positive cash flow,
configuring the facilities for startup will
require approximately $2 million in capital.
2009
S.O.I.L. Initiative
Broad-based Community Task Force, Steering Committee
Formation of Working CSPMP Board
Location Research & Negotiations
Market Feasibility Study
Supply Chain Dialogue
Outreach Events & Communications
Local Food Week 2014
2013 Sustainability Conference Survey
Indy GIVE
PUMA/Downtown Survey: Public Market #1 Priority
Seeding Community Investment Dialogue
9
IGNITE
“Sustainability requires that every community meet the needs of all its members present and future, without
compromising the needs of other communities meeting the needs of their members, present and future.”
– Michael H. Shuman
The Small-Mart Revolution: How Local Businesses are Beating the Global Competition
Funding will be come from:
• Individual contributions donated to
the 501(c)35.
• Individual investments in equity of the
social benefit corporation to operate the
Public Market.
Demonstrated success of public markets over
the past 30 years is good news for fundraising.
With a broad community understanding about
the economic and social benefits of markets,
and strong vendor pool and supply chain
initiatives, the Colorado Springs Public Market
will be poised for success.
• Foundation and government grants.
Staff and board have been working to submit
numerous proposals to obtain required
funding. After completion of specific plans
for the Public Market space, as well as the
operating plan, the intrastate public offering
will provide a powerful opportunity for
community-building in the local economy.
This step, when completed, will set the stage
for fund-raising to support the entrepreneurial
developments essential to achieve the
25% food shift.
Projected 10-year Gains
$700 million
in annual revenue
4,000 jobs
$125 million
in annual wages
$25 million
in annual tax revenue
The Colorado Springs Public Market is a 501(c)(3) entity, operating within the El Paso County Enterprise Zone.
Cash donors receive a 25% credit on Colorado tax liabilities.
5
2015
Formation of Public Market Subsidiary Board
Model Home... Limited Retail, Food Service & Community Space
Formation of Co-op for Local Producer Market Access
Community Engagement led by Project for Public Spaces
Indy GIVE
Active Fundraising
Community Investment Portal Announcement
Friends of the Public Market
Special Events On-site Including Farmer’s Markets
10
A Public Market …
Creates commerce – by establishing vital market access for local producers and consumers, and
helps build a resilient economy by growing entrepreneurial opportunities for local producers.
Embodies culture – by facilitating how we express our unique Front Range identity and heritage
through food, art and artisanal products.
Creates connections – by inspiring collaboration, and co-locating those with common interests
to support a sound, smart and sustainable future for all.
Builds community – by creating a shared destination with daily relevance where we all come
together to shop, eat, learn, and mingle.
“We as a society and as an economy need to start optimizing for a large number
of small things, not just relying on a small number of large things.”
- Woody Tasch
Founder of the Slow Money Alliance
315 E. Costilla, Colorado Springs, CO 80903
719-460-5271
[email protected]
CSPublicMarket.com