Dallas Farmers Market

Dallas Farmers MarketDesign & Economic DevelopmentStrategic Plan UpdateEconomic Development & HousingCommittee BriefingFebruary 5, 20071

PURPOSE Provide update on efforts to position DallasFarmers Market as a destination experience forDallas, North Texas & beyond Alert City Council of upcoming Council actionsBriefing Contents:1.2.3.4.5.6.7.8.9.10.Renovation of Shed 2 -- 3.2M – 2003 Bond FundsNew Product Mix for Produce Sheds & Shed 2New Vendor Policies/ ProceduresModifications to Dallas City Code - Chapter 29Transfer Management of DFM to Non-profit or For-ProfitIncrease Parking ResourcesImprove Perception Of Safety – Down RoomMarketing & Special Events StrategyIncrease Retail Density & Reasons to Visit DFM2006 Bond Program Improvement Plan2

BACKGROUND1994Major improvements undertaken at the DallasFarmers Market (DFM) included construction of: Shed 2 Administration/multi-purpose facility Traffic & Parking modifications2004Reports from DFM Summit & USDArecommended a comprehensive market analysisas first step in determining future of DFMApril 17, 2006 Presented Boka Powell, Inc. Design andEconomic Development Strategic Plan for DFMApril 26, 2006 City Council accepted strategic plan and approvedSupplemental Agreement for design of Shed 2improvements to Boka Powell, Inc.3

Status Shed 2 RenovationScope of Work:- Add heat & air conditioning- Upgrade water, sanitary sewer, electrical & gas serviceneeded to support 10,000 sq. ft. dining / specialty foodspace- Tenant finish out provided by tenantInclusive Design Process:Current Shed 2 Vendors– Vendor interviews & survey– Sought vendor ideas– Four (4) Shed 2 Vendor MeetingsOther Stakeholders–––––4Dallas Farmers Market FriendsArea land ownersCustomer survey resultsDowntown DallasOther City Departments

Status Shed 2 Renovation (Con’t )Improved Floor Plan includes: 61 vendor stalls Stalls have access to utilities, communications & sewer drainsImproved stall configurations & patio seatingRelocate restrooms & mechanical closetDesign standards for vendor finish-out & signage5

Status Shed 2 Renovation (Con’t )Architects also challenged to improve building efficiency Replace existing lighting w/ brighter more efficient lighting Three 16’ diameter fans to circulate air Rain collection system for flushing in new restrooms & recycledplastic restroom partitions Energy efficient insulated sandwich exterior wall panelsreplace roll down doors Provide infrastructure to allow Wi-Fi6

Status Shed 2 Renovation (Con’t )PhaseDue DateDesign – CompletedJanuary 31, 2007Construction Contract AwardApril 11, 2007Construction BeginsJune 1, 2007Construction CompleteDecember 1, 2007Tenant Finish Out CompleteFebruary 1, 2008Grand OpeningMarch 16, 20087

Define New Product MixGoal: Define product mix based on customer desiresfor local, healthy, quality & unique food products &seek local vendors to provide those products Produce Sheds 1, 3 & 4Increase number of Farmers– Expand permitted products toallow bedding plants, Christmastrees, honey etc.– Seek policies that encouragefarmers– Farmers Roundtable (Friends)Feb 11-12, 2007 Seek specialized produce items(peppers, mushrooms, tomatoes,etc.) Adjust Shed assignments,balance vendor classifications,institute waiting lists8Dallas Farmers Market

New Product Mix – Produce (Con’t )Adjust Produce ShedAssignments Shed 1 - Farmers– Existing Produce Dealers inShed 1 have 1st right ofrefusal to move to Shed 3 asopenings occur Shed 3 - Produce Dealers Shed 4 – Wholesale /Parking– South side WholesaleVendors– North side Parking, SpecialEvents & Temporary spacefor produce vendorsimpacted by futureconstruction activity9

New Product Mix – Shed 2Shed 2 – Product Mix Review Process & Findings Surveyed 17 of 21 existing vendors in Shed 2–––––Annual gross sales in excess of 2.8MEmploy 42 full & part time employees100% of Vendors own their inventories outright100% of Vendors believe their products add valueTop 3 Concerns Voiced Most Often Birds and cleanlinessSecurity / HomelessProduct Mix, Quality & Enforcement of Market RulesCurrent Product Mix in Shed 2 is Unbalanced11 Mexican Import; 1 African Import; 6 Specialty Food (2 coffee, 2meats, 1 seafood, 1 spices); 2 Artists; 1 Misc. Gifts & Beads Approx. 85% of total space dedicated to Mexican Imports50% of total space is Mexican Import rustic furniture10

New Product Mix - Shed 2 (Con’t ) October 17, 2006 – Expert PanelHosted meeting w/ retail experts to review feasibility & potential forsuccess of a proposed plan (See Appendix A for Attendees)Panel Recommendations: Product mix must be consistent w/what customers perceive as thecore purpose of DFM - Fresh,Local, Texas AND other uniquefood items Do not confuse food message w/non-related products Broaden the market - Local &Texas products are good but alsoseek vendors selling other uniquefood products (Regional, Nationaland International)11

Shed 2 - Product Mix (Con’t )Shed 2 Product Mix Includes (See Appendix B for details) :- Three (3) Eateries-Specialty FoodsKitchen Related ProductsLimited Artisan ProductsLimited Garden ProductsLimited Imports ProductsProducts that do not work:- Retail items- Art galleries- Newsstands- FurnitureShowcase - Reading Terminal MarketBalance is Critical:- 20% Artisan, garden & import vendors (Non-Food Related Retail)- 40% Ready to eat foods- 40% Grab & Go foods / kitchen & related / specialty foods12

Shed 2 - Product Mix (Con’t )Shed 2 Product Mix Action Plan Notify Vendors invited back toShed 2 in February 2007 For those not invited back, providelist of opportunities & small businessresources Final approval of all vendorsdependent on business plan,application & lease agreement Begin recruitment for eateries &other vendors in March 2007 Provide temporary space for vendorsinvited back Assist furniture vendors find newlocation - Provide small space inShed 2 for 1 year to help transition13Flying Monkey PatisserieReading Terminal Market

Status of New Vendor / MarketPolicy & ProceduresCurrent policies established in Dallas City Code Chapter 29May 2006 - Created ad hoc committee to refine policies &procedures (11 Vendors & 3 DFM Staff) (See Appendix C - Summary of Policies)Chapter 29 Modification may include:–––––Transfer certain policy & procedures from Chapter 29 to DirectorRefine vendor classifications / selection criteria to include product mixTransfer setting of fees to annual Budget processExpand daily rentals to also include short & long term leasesRefine enforcement of rules & appeals processPolicy & Procedural Changes Finalization Pending:–––Environmental & Health Services & other Departments reviewAdjustments to Chapter 29 (City Council Action Required)Final review and comment by all vendors14

Transfer Management toNon-Profit or For-Profit Entity Deferred to allow time to stabilize DFM operations– Review annually to assess readiness Recommend interim organizational changes– 2 Coordinator Positions - Shed 2 / Plaza & Produce Sheds Performance measured by occupancy rates for rentable space Responsible for vendor recruitment, vendor relations, compliancewith policy and procedures, quality control & product mix, stallassignments, leasing, promotion and special events– Health Inspector - Seek in FY2007-08 Budget process Responsible for Regulatory compliance, documentation & training Continue working closely with EHS in interim15

Seek Additional Parking Resources Boka Powell Study recommends an additional500 parking spaces needed to support DFM Efforts to increase parking resources include:– Conducted study to reconfigure parking lot between Sheds3 & 4 – Added 56 additional spaces– Seek partnerships with area land owners to help increaseparking in Market District Parking garage deferred until customer demandwarrants16

Potential Partnerships withArea Land OwnersUrban Innovations, Inc. 100 temporary spacesRent for 1st 12 months equalscost to construct lot ( 112,185)Beyond 12 months - 2,000 permonthProposal pending cost / benefitanalysisCity Council action required toauthorize leaseRuibal’s / Scottish Rite Potential private lease agreement toallow public parking on weekendsApproximately 100 spacesUrban Innovations, IncPotential Temporary Parking17

Create Down Room for DPD OfficersImprove perception of safety at DFMby Increasing presence of lawenforcement personnel at marketStatus Designated space for Security & Down Room Additional improvements include:– Monitors for security cameras– “Security” signage to identify space forvisitors– Call box for access to Security whenpatrolling site– Hold Open House for DPD Officers,Downtown Improvement District Patrols Complete: April 200718

Increase Marketing EffortsSeek contract to develop marketing strategy Review existing market research on DFM Conduct customer intercept surveys at DFM & on-line survey Conduct consumer focus groupsMarket Strategy will identify: Market segments to target in order of priority Single most important message for all audiences Secondary messages by audience segment Identify weaknesses in perceptions of DFM by market segment How best to differentiate the DFM from competition What personality & tone should DFM portray in our communications Estimated Cost: 13,00019

Increase Marketing Efforts (Con’t)Develop Predictable & ConsistentSpecial Events entEducationIncreaseAwarenessPromote ValuesLargeraudienceCommunityBasedOrganizations &SchoolsFrequentShoppersCommunityBased MediaWebsite, FriendsGroup, FlyersPromote State / RegionBased Media20ImproveShoppingExperience

Incubator Kitchen Feasibility StudySeek contract to assess demand for a certifiedcommercial kitchen incubator facility at the DFM– Additional activity at DFM increases reasons for people to visit& increases Market vitality– Incubator kitchen provides start up companies kitchen spaceto produce food products for sale at DFM– Consider under utilized kitchen & multi-purpose space aspotential location– Concept provides start up companies kitchen space toproduce food products for sale at DFM– Potential revenue source to offset cost of DFM operationsFeasibility Study Estimated Cost: 21,00021

2006 Bond FundsDallas Farmers Market 6,636,760Canton St.Boka Powell StudyRecommendations Improve produce sheds 1, 3 & 4 stormwater & wash sink infrastructure Modify Lot C to increase surface parking Construct esplanade along Pearl Streetfrom Farmers Road to Canton, buryutilities, add portals, signage &landscaping Seek partnership to redevelop Taylor St.property & add seasonal vendor space Renovate & add customer restrooms &children’s play areaNote: Improvements listed in priority orderestimated cost: 10.5M22

Next Steps Continue efforts to improve DFM operations &complete renovation of Shed 2 Future City Council Actions:– March 28, 2007– April 11, 2007– TBDTemporary Parking Lot Lease AgreementContract Award for Shed 2 RenovationModifications to Chapter 29, Dallas City Code23

Appendix – AShed 2 Product Mix Review October 17, 2006 – Expert Panel Hosted meeting with marketing & retail experts to review thefeasibility & potential for success of a proposed plan Attendees Included:–––––––––––Chris Brewer, Principal, Economics Research Associates (ERA),Tom Moriarity, Vice President, ERA,Paul Chapel, Principal, Boka Powell Architects,Jerrod Steltzien, Designer, Boka Powell ArchitectsStacy Caldwell, President, Dallas Farmers Market FriendsKourtny Garrett, Director of Marketing, Downtown DallasPaul Lindenberger, Assistant Manger, Downtown DallasRobert Durham, Architect, Public Works & TransportationTroy Thorn, Assistant Director, Convention & Event ServicesFrank Poe, Director, Convention & Event ServicesDe McCombs, Economic Development Coordinator, DFM24