Com Market Pres

Fort Collins Community Marketplace
4/29/2011

Financial Feasibility Study
Public Presentation
April 27, 2011
Presentation Topics
1. Goals
2. Key research findings
3. Development program
4. Site analysis and design concepts
5. Organization and management
6. Financial analysis
7. Feasibility assessment
8. Next steps
Copyright Market Ventures, Inc.
4/29/2011
Fort Collins Community Marketplace Goals

1. Create a dynamic and inclusive place in the downtown
2. Support the regions farmers and food producers and provide
opportunities to independent entrepreneurs
3. Promote and model environmentally sustainable and socially
fair practices
4. Provide educational opportunities, particularly about the local
food system and conscious consumerism
Principal research findings

Key informant interviews
Conducted 65 interviews with farmers, food producers, market managers, public officials,
restaurateurs, developers, retailers, leaders from nonprofit, education, and ag sectors
General enthusiasm for having a market in Fort Collins, a good idea
Interest in eating locally, supporting local businesses, healthy lifestyle
Question whether adequate population and interest to support a year round market
Concern about making Community Market economically successful; competition (King
Soopers and Whole Foods Market very supportive of local farmers)
Success of Boulder Farmers Market
Farmers markets in Fort Collins not meeting their potential
Restaurateurs: interested in local foods but hard to access
Strong interest in education space, perhaps
a cooking school
Interest in food production focus within
market cheesemaking, baking, sausage
making/ butchering, coffee roasting, candy,
etc.
Interest in shared commercial kitchen
4/29/2011
Principal research findings

Demand analysis
Expect customers from 20 mile radius, plus tourists
Estimated demand for fresh food at a downtown public
market = $11.5 million
Greatest demand (37%) within 2.5 miles of downtown
Challenge of getting suburban residents to shop downtown
on regular basis; easier with events
Supply analysis
Very few potential permanent specialty food vendors in
region
Direct Mkting Sales ($000s)

Region
Strength of local brewery industry

Fort Collins Food Coop looking to expand, sells local foods
$6,000
Diversity and scale of agriculture in Northern Colorado
$5,000
Growing number of farmers looking for direct marketing

and value added sales, particularly in Larimer and Weld
counties
$4,000
y = 801.6x + 683.5
R = 0.9619
$3,000
$2,000
$1,000
Farmers from Larimer selling at Boulder Farmers Markets
$1992 1997 2002 2007 2012 2017
Farmers Markets
Name
Location
Downtown FC
Larimer County FM parking lot
Sponsor
Site amenities
Days of
#
operation vendors
Paved parking
Cooperative Extension spaces
17
60
Drake Road FM
Drake Centre Mall

parking lot
Nan Zimmerman
Paved parking
spaces
24
FC Winter Market
Opera Galleria
Be Local Northern CO
Indoor
12
38
Boulder FM
Downtown park
Boulder County
Farmers' Markets
Park, seating
55
110
Longmont FM
Fair grounds
Boulder County
Farmers' Markets
Electricity, trees
27
80
Harmony Road FM
Colorado Agricultural
Marketing Cooperative
Annual
fee
Rent
$35
6.0%
$100
6.0%
$35
$25 plus 6.0%
5%, site fees;

$50 15% prep food
$50
6%; 10% prep

food
45
4/29/2011
Development Program Principles
Build on current downtown local food assets (farmers market, Winter Market,
Food Co-op)
Maximize return to farmers and food producers
Substantially differ from existing and emerging competition by focusing on direct

marketing and food production
Address opportunities in produce distribution, education, arts
Able to be phased and flexible
Minimize operating costs and development risk
Development Program
1.
Expanded farmers market

1. Relocate Larimer County Farmers Market
2. Outdoor shed
3. Expandable open-air
2.
Flex building (4-8,000 sf)

1. Indoor farmers market/Winter Market
2. Special events
3. Restaurant seating overflow
4. Upper level demonstration kitchen, offices,
meeting rooms
3.
Year-round daily indoor food retail (10-15,000 sf)

1. Expanded Food Co-op (double size)
2. Subleased butcher, bakery, florist, caf
4/29/2011
Development Program
4.
Restaurants/Biergarten (1,500-3,000 sf)
5.
Food and artist production space (up to 10,000 sf)

1. Retail sections for farmers market days
2. Shared commercial kitchen/kitchen incubator program
6.
Produce distribution (cold and dry storage, docks;

1,500-4,000 sf)
7.
Dedicated parking
Program will vary depending on site
Sante Fe Farmers Market
4/29/2011
Sante Fe Farmers
Market
Sante Fe Farmers Market
4/29/2011
Site Analysis
Site criteria
Within downtown
Visibility from major thoroughfare
Accessibility by car, bicycle, bus and foot
Availability of parking, including adjacent

surface parking
Supportive context and adjacent uses
Adequate size (at least 2 acres for program,
parking); adjacent property for farmers mkt
Availability and cost
Potential to reuse historic buildings and
sustainable design opportunities
Potential to influence downtown revitalization
Site identification
11 sites identified and examined within DDA boundaries
Two sites on Linden Street best meet criteria
Site Overview and Linkages
4/29/2011
Linden Streetscape Improvements
Mawson Lumber and C&S Freight Depot
4/29/2011
Mawson Lumber and Freight Depot
4/29/2011
Feeders Supply Site

Visibility from major thoroughfare
Corner location offers excellent visibility
Accessibility by car, bicycle, bus and foot

Walking distance to downtown core, on
bus route, link to Poudre River trail
Close proximity to College Avenue and Jefferson Street
Adequate size (at least 2 acres for entire program and parking)
Smaller than ideal but most of design program can fit within footprint
Undeveloped property to the west potential opportunity for expansion
Availability of parking, including adjacent surface parking

Site plan accommodates 56 spaces
Additional street parking being created on Linden; mid-block parking could be
added to Willow
Supportive context and adjacent uses

Mixed use corridor includes retail, restaurant, office and recreation functions
District likely to respond to development opportunities
10
4/29/2011
Feeders Supply Site

Availability and cost
Interested seller
Reasonable land cost (estimated at $1 million)
Potential to reuse historic buildings and sustainable design opportunities

River District targeted for redevelopment;
underutilized asset
Community Marketplace investment likely to spark
redevelopment and create more density
Farmers Market opportunity on Linden Street and

Railroad Park
Streetscape improvements will serve farmers market
and Marketplace well
About 100 vendor stalls in street and park (Phase 1)
Santa Monica
Farmers Market
Linden Street
Willow Street
11
4/29/2011
Linden Street
Willow Street
12
4/29/2011
Organizational Characteristics
Develop and operate Community
Marketplace with dual focus on
profitability and accomplishing Markets
mission
Adequate capitalization
Strong, entrepreneurial leadership

Representative and accountable
Revenues derived from operations used to support
operations and education, not other organizational purposes
Create partnerships with existing institutions and programs
13
4/29/2011
Organization
Owner
Determined by funding and negotiation with property owner
Could be private (if land leased), DDA, or nonprofit
Sponsor
New nonprofit organization devoted to Markets goals
Adequate organizational and financial capacity
Board skills
Education
Financial management
Law
Local food systems/regional ag
Marketing
Nonprofit management
Property management
Small business
Diversity
No vendors on board
Management
Market management
Run farmers market and event space
Manage leases to Food Coop, restaurants,
other tenants
Oversee educational programs/partnerships
Staff
Executive Director
Marketing/Education Coordinator
Site Manager(s)
Bookkeeper
Interns and volunteers (Master Gardeners)
Market hall managed by Fort Collins Food Co-op

Sublease space to market vendors
Incorporate several independent food vendors
Oversee food distribution
14
4/29/2011
Farmers
Prepared Food
Year 1
1
Operating days/week
Financial
Analysis:
Open-air
farmers
market
Sales - high #
Sales - med #
Sales - low #
Total farmers
4
12
16
32
Sales - high $
Sales - med $
Sales - low $
Total daily sales
$2,000
$800
$400
$24,000
Rent as % sales
Total daily rent
6.0%
$1,440
Vacancy
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Vacancy
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
100%
50%
15%
60%
Rent
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Total
$
$
$
$
$
9,360
15,912
7,488
32,760
Sales
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Total
$
$
$
$
$
156,000
265,200
124,800
546,000
Total
Vendors
Year 1
1
8
$1,000
10.0%
$100
Operating days/week
Participants
Average daily sales
Rent as % sales
Average rent/stall
100%
25%
15%
30%
Rent
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Total
$
$
$
$
$
7,800
8,840
7,280
23,920
Sales
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Total
$
$
$
$
$
78,000
88,400
72,800
239,200
Year 1
Year 2
Year 3
Year 4
50
59
65
74
Rent
63,232
Sales
894,400
121,965
$ 1,702,464
160,010
$ 2,271,475
224,292
$ 3,181,350
Year 5
80
$
286,921
$ 4,079,705
Indoor Market (Flex Space)
Financial
Analysis:
Flex Building
Year 1
34
1
1
$400
6.0%
$25.00
$49
Stalls
Days/week (Jan-March)
Days/week (April-Dec)
Average daily sales
Rent as % sales
Rent fee
Average rate/stall
Vacancy
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
10%
15%
15%
10%
Rent
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Total
$
$
$
$
$
19,492
18,409
18,409
19,492
75,803
Sales
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Total
$
$
$
$
$
159,120
150,280
150,280
159,120
618,800
Site rental for catered events
Year 1
Year 2
Year 3
Year 4
Year 5
Events/year
50
55
55
60
People/event (average)
50
55
60
65
Site fee/person
Income
60
70
$3.50
$3.50
$4.00
$4.00
$4.50
$8,750
$10,588
$13,200
$15,600
$18,900
15
4/29/2011
Financial Analysis:
Market Hall and Restaurant
Fort Collins Food Co-op
Rent estimated at $12 per sf

8,400 sf at Feeders Supply site
Total annual rent = $100,800
Vendor subtenants
Market vendor rents typically up to twice area
retail rents
1,700 sf of vendors at $20/sf decreases Co-op
rent by $34,000
Restaurant in Feeders Supply Building

1,620 sf
Rent $14 per sf
Total annual rent = $22,680
Operations Pro Forma: Feeders Supply Site

Feeders Supply site
Year 1
Year 2
Year 3
Year 4
Year 5
Rental Income
Outdoor market
Registration fees
Flex building
Site rental
Market hall/Food Co-op
Caf
63,232
2,800
75,803
8,750
100,800
22,680
121,965
3,325
115,375
10,588
100,800
22,680
160,010
4,070
144,976
13,200
102,312
23,020
224,292
4,625
168,511
15,600
103,847
23,366
286,921
5,460
206,196
18,900
105,404
23,716
Gross Operating Income
274,065
374,733
447,589
540,240
646,598
8,222
11,242
13,428
16,207
19,398
265,843
363,491
434,161
524,033
627,200
Bad Debt Expense

Adjusted Gross Income
Operating Expenses
Market operations
Insurance
Property tax
Marketing/Education
Subtotal
$265,000
$18,000
$0
$75,000
$358,000
Net Operating Income
($92,157)
$25,000
($117,157)
($32,079)
Capital reserve
Profit (Loss)
$274,030
$18,540
$0
$78,000
$370,570
$283,369
$19,096
$0
$81,120
$383,585
$333,527
$19,669
$0
$84,365
$437,561
$344,932
$20,259
$0
$97,020
$462,211
($7,079)
$50,576
$86,472
$164,989
$25,000
$25,000
$30,000
$30,000
$25,576
$56,472
$134,989
16
4/29/2011
Operations Pro Forma: Mawson Lumber Site

Mawson Lumber site
Year 1
Year 2
Year 3
Year 4
Year 5
Rental Income
Outdoor market
Registration fees
Flex building
Site rental
Market hall/Food Co-op
Caf
Retail
Food production
63,232
2,800
75,803
8,750
114,000
18,200
14,400
22,500
121,965
3,325
115,375
10,588
114,000
18,200
14,400
22,500
160,010
4,070
144,976
13,200
115,710
18,473
14,616
22,838
224,292
4,625
168,511
15,600
117,446
18,750
14,835
23,180
286,921
5,460
206,196
18,900
119,207
19,031
15,058
23,528
Gross Operating Income
297,185
397,853
471,055
564,059
670,774
8,916
11,936
14,132
16,922
20,123
288,269
385,917
456,924
547,137
650,651
Bad Debt Expense

Adjusted Gross Income
Operating Expenses
Market operations
Insurance
Property tax
Marketing/Education
Subtotal
$270,900
$22,000
$0
$75,000
$367,900
Net Operating Income
($79,631)
Capital reserve
Profit (Loss)
$25,000
($104,631)
$280,107
$22,660
$0
$78,000
$380,767
$289,628
$23,340
$0
$81,120
$394,088
$339,974
$24,040
$0
$84,365
$448,379
$351,573
$24,761
$0
$97,020
$473,354
$177,297
$5,150
$62,836
$98,759
$25,000
$25,000
$30,000
$30,000
($19,850)
$37,836
$68,759
$147,297
Development Estimate: Feeders Supply Site

Feeders Supply Site
Land acquisition
Construction
Site work
Market hall - Food Co-op
Caf
Flex building (2 story)
Subtotal
construction management
general conditions
contingency
architecture & engineering
subtotal
Other
signage/graphic design
project management/leasing
legal/professional fees
insurance
capital/equipment
tenant allowances
negative cash flow/operating reserve
subtotal
Total
Square feet
50,530
36,510
8,400
1,620
8,000
54,530
$3,318,596
$3,418,154
$3,657,425
$3,840,296
10,020
Cost/sf
$20.00
Subtotal
$10.00
$175.00
$175.00
$150.00
$365,096
$1,470,000
$283,500
$1,200,000
$3,318,596
3.0%
7.0%
5.0%
6.0%
$99,558
$239,271
$182,871
$230,418
$752,118
$30.00
Total
$1,010,592
$4,070,714
$50,000
$100,000
$25,000
$50,000
$25,000
$300,600
$200,000
$750,600
$5,831,906
17
4/29/2011
Development Estimate: Mawson Lumber Site

Mawson Lumber site
Land acquisition
Construction
Site work
Market hall - Food Co-op
Caf
Flex building (Freight Depot)
Retail (Freight Depot)
Food production
Subtotal
construction management
general conditions
contingency
architecture & engineering
subtotal
Square feet
124,146
101,621
10,100
1,300
4,300
1,200
5,625
124,146
$4,192,714
$4,318,495
$4,620,790
$4,851,830
Other
signage/graphic design
project management/leasing
legal/professional fees
insurance
capital/equipment
tenant allowances
negative cash flow/operating reserve
subtotal
12,600
Cost/sf
$18.00
Subtotal
$9.00
$175.00
$175.00
$100.00
$125.00
$125.00
$914,589
$1,767,500
$227,500
$430,000
$150,000
$703,125
$4,192,714
3.0%
7.0%
5.0%
6.0%
$125,781
$302,295
$231,040
$291,110
$950,225
$30.00
Total
$2,234,628
$5,142,939
$50,000
$100,000
$25,000
$50,000
$25,000
$378,000
$200,000
Total
$828,000
$8,205,567
Feasibility Considerations
Location
Good access by car and bus; will be good by bicycle and foot with
adjustments to Jefferson Street traffic light
Adequate parking additional parking on Willow, structure in future
Emerging mixed use area with lower land costs
Extends downtown core and support revitalization efforts
Either site on Linden Street viable
Environment
Reuse of historic buildings
Can create attractive and environmentally sustainable new buildings
Culture of market shopping

Strong interest in local foods
Students and suburban residents likely to support weekly events
18
4/29/2011
Feasibility Considerations
Management
Food Co-op management of Market Hall will lower operating costs
Sufficient experience in region to create strong farmers market
organization
Vendors
Food Co-op experienced local retailer with commitment to local foods
Concept requires only a few permanent specialty food vendors
Farmers market and flex building support growing number of farmers
and food producers looking for direct marketing opportunities
Financial analysis
Requires investment of ~$5.8-8.2 million
Profitability by Year 3
Next Steps
Presentations and community input
Predevelopment activities
Site retention
Food Co-op and Winter Market agreement
Agreement to move Larimer County Farmers
Market
Architecture and engineering
Outdoor farmers market

Can precede indoor market facilities
Should follow reconstruction of Linden Street
Finance
Organization
19
4/29/2011

Financial Feasibility Study
Ted Spitzer, President

(207) 321-2016 / www.marketventuresinc.com
20

Com Market Pres

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Com Market Pres

Uploaded by

Copyright:

Available Formats

Fort Collins Community Marketplace

Fort Collins Community Marketplace

April 27, 2011

Copyright Market Ventures, Inc.

Fort Collins Community Marketplace

Fort Collins Community Marketplace Goals

Principal research findings

Copyright Market Ventures, Inc.

Fort Collins Community Marketplace

Principal research findings

Direct Mkting Sales ($000s)

Strength of local brewery industry

Diversity and scale of agriculture in Northern Colorado

Growing number of farmers looking for direct marketing

Farmers from Larimer selling at Boulder Farmers Markets

$1992 1997 2002 2007 2012 2017

Drake Centre Mall

Copyright Market Ventures, Inc.

$25 plus 6.0%

5%, site fees;

6%; 10% prep

Fort Collins Community Marketplace

Development Program Principles

Maximize return to farmers and food producers

Substantially differ from existing and emerging competition by focusing on direct

Address opportunities in produce distribution, education, arts

Able to be phased and flexible

Minimize operating costs and development risk

Expanded farmers market

Flex building (4-8,000 sf)

Year-round daily indoor food retail (10-15,000 sf)

Copyright Market Ventures, Inc.

Fort Collins Community Marketplace

Restaurants/Biergarten (1,500-3,000 sf)

Food and artist production space (up to 10,000 sf)

2. Shared commercial kitchen/kitchen incubator program

Produce distribution (cold and dry storage, docks;

Program will vary depending on site

Sante Fe Farmers Market

Copyright Market Ventures, Inc.

Fort Collins Community Marketplace

Sante Fe Farmers Market

Copyright Market Ventures, Inc.

Fort Collins Community Marketplace

Availability of parking, including adjacent

Site Overview and Linkages

Copyright Market Ventures, Inc.

Fort Collins Community Marketplace

Linden Streetscape Improvements

Mawson Lumber and C&S Freight Depot

Copyright Market Ventures, Inc.

Fort Collins Community Marketplace

Mawson Lumber and Freight Depot

Copyright Market Ventures, Inc.

Fort Collins Community Marketplace

Feeders Supply Site

Accessibility by car, bicycle, bus and foot

Availability of parking, including adjacent surface parking

Supportive context and adjacent uses

Copyright Market Ventures, Inc.

Fort Collins Community Marketplace

Feeders Supply Site

Potential to reuse historic buildings and sustainable design opportunities