David Michael Miller
The planning for a public market in Madison is now well into its second decade. During that time there have been four proposed sites for the market: two downtown and two on the east side. Its focus has changed from providing “access to local healthy foods and produce” to an ethnic food emporium. Over the decade, the city has hired a virtual conga-line of consultants, authorized spending of $2,375,000 for planning efforts, and shelled out hundreds of thousands of tax dollars on staff salaries for project organization and public relations.
And while Satya Rhodes-Conway, as a candidate for mayor, expressed lukewarm support for the market, she has reauthorized $7.05 million for the project in her recently released capital budget. I’d urge my former colleagues on the Common Council to reject the funding and take it a step further. It’s time to pull the plug on this project. If we don’t, city taxpayers will subsidize this ill-conceived project for years to come.
For starters, the chosen location is not ideal. In 2014, a consultant recommended that the market be located on East Washington Avenue and First Street instead of on the less traveled and less affluent Park Street. This year, after two years of negotiations, the city moved the market two blocks to its Fleet Services building on First and Johnson streets.
The Johnson Street site has half the car traffic of the East Wash site. But the revenue projections, at $16.5 million per year, have not been recalculated.
Also problematic is the market’s construction budget of $13-$14 million. Over the last three years, the city’s share of the budget has increased from $4 million to $7 million, with the rest of the funds to come from the federal government ($3 million) and private donors ($3 million). Unfortunately, the city has not yet secured federal financial assistance, although that process is ongoing. While the goal of raising $3 million in private funds has been nearly as difficult. Despite a well-financed fundraising campaign over three years, less than $1 million in pledges has been raised.
Will the city “fill in the gap” if funds from other sources do not materialize? Will the city require to see the other “money on the table” before it commits its share?
Building a public market is only the beginning; the 2019 business plan acknowledges the emporium will run a deficit for the first two years.
It’s possible the market could make a small profit because, unlike every business, the market will be exempt from property taxes. Normally, a $10 million building would pay about $300,000 per year in taxes. This subsidy plus the city payment of the mortgage — valued at hundreds of thousands of dollars — makes “running in the black” possible. This was promised, too, for the Monona Terrace Convention Center. But the facility has run a deficit every year and in the last five years has required $25 million in city subsidies to operate. I’m skeptical that the market won’t also need ongoing city support.
Finally, the fundamental mission for the market has changed. Originally it was envisioned as a place to get fresh produce and local goods year-round. There were even concerns that it might compete with established businesses nearby — it’s within one mile of Festival Foods and the Willy Street Co-op, two miles from the immense Woodman’s and a half mile from Jenifer Street Market.
There are no longer concerns about competition. A review of 28 vendors featured on the Public Market website indicated 20 are focused on limited specialty foods, while others offer crafts, soap, etc. Thus, the “market” is not a retail food market, but more like a collection of food carts. It is a source of capital and discounted services for a small group of select individuals — rather than a meaningful effort to meet a need of Madison consumers or communities of color.
Fundamental questions about this venture should be answered before the city commits more resources to this project. What is the consumer demand not being filled by existing businesses? Should a business heavily subsidized by the city, and exempt from taxes and debt, compete with existing ones?
Political leaders must weigh the benefits of providing economic support to 30 “entrepreneurs” against the immediate and long-term costs of this new city enterprise. Will the city continue to provide subsidies, if necessary? Is this food emporium the most effective and cost-efficient means of “lifting-up” budding entrepreneurs? These fundamental questions have rarely been discussed but they should be, before critical decisions are made.
David Ahrens is a former Madison city alder.
[Editor's note: This column has been updated to reflect some corrections and clarifications. Mayor Satya Rhodes-Conway's inclusion of $7 million in the capital budget for the public market was a reauthorization of funds approved in previous budgets; without the reauthorization, the money would not be available. Although the city has not yet received federal financial assistance for the market, the process of applying for it continues. It originally stated that the city has authorized $2.5 million in spending for the market; the correct amount is $2,375,000. It claimed that revenue projections for the market have been increased from $16.5 million to $21 million, but they have not been changed since the site has been moved.]
